During the first half of the year, Banco Sabadell managed to boost its profit to 564 million euros, setting a new record for the entity, with income that was close to 3,000 million euros and with TSB, its subsidiary in the United Kingdom, providing twice the profit than a year ago thanks to the dynamics of the British market. The rise in interest rates in the euro zone is once behind the substantial improvement in the bank's earnings, which could see how they increased by 43.6% from January to June.

Behind the improvement is the 19.4% growth in revenue from the banking business, which reached 2,967 million euros. The interest margin grew by 29.2%, up to 2,270 million compared to the fall in net commissions that was 4.4%.

TSB closed the first semester with an individual profit of 105 million pounds (122 million euros), 71.5% more year-on-year, and a contribution to the group accounts of 106 million euros. The British entity increased its recurring margin by 36% and the interest margin totaled 528 million pounds (613 million euros) at the end of June, 13.9% year-on-year more. Net commissions were 51 million pounds (59.3 million euros), and costs 386 million pounds (448.8 million euros).

In line with the sector, the outstanding credit portfolio contracted 2.7% during the first half, to 153,834 million euros, which the entity justifies given “lower volumes in mortgages, both in Spain and in the United Kingdom , due to lower balances of SMEs and companies and due to maturities of Treasury loans in Public Administrations”, according to the financial report presented to the National Securities Market Commission (CNMV) this Thursday. However, Sabadell continued to grow in new credit production in Spain, specifically 7% compared to June 2022 and 44% over the first quarter, up to 3,801 million euros.

Specifically, new mortgages plummeted 27% during the first half, to 1,095 million euros, and, on the contrary, new consumer loans stood at 532 million, 23% more than a year ago.. Card billing reached 5,803 million, up 5% year-on-year, and POS billing [taking into account the entity's high penetration of SMEs] was 13,247 million, an increase of 9% compared to the same quarter from the previous year.

For its part, delinquency remains controlled and fell in its balance for the year compared to the data for March, since it fell to 3.5% compared to 3.52% in the first three months of the year.

In this context, the Catalan entity manages to increase its profitability ratio to the highest in recent years. It should be remembered that Banco Sabadell was listed for months with the highest discount on the Stock Market on the value of its own funds precisely because it was unable to increase the return on capital until the new financial team arrived, led by Leopoldo Alvear (former director of Bankia). , and the British subsidiary became profitable again. In this way, its ROTE (Return on tangible capital, according to its acronym in English) stood at 10.8%, compared to 7% that it was just a year ago; while the ROE scales up to 8.86%. The last target set by the objective, which it has been reviewing quite quickly in recent times, establishes a ROTE target of 9% in 2023 and 2024, so it is already above its forecasts.

The ratio that measures the strength of the entity's capital, CET 1 fully-loaded, stood at 12.87% at the end of June, which means an increase of nine basis points in the quarter, while the capital ratio total was 18.10%, above the Brussels requirements.