Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Bolsa de Madrid  >  Banco de Sabadell, S.A.    SAB   ES0113860A34

BANCO DE SABADELL, S.A.

(SAB)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsAnalyst Recommendations

Banco de Sabadell : Sabadell could consider sale of a revamped TSB - chairman

share with twitter share with LinkedIn share with facebook
share via e-mail
03/27/2019 | 01:03pm EDT
FILE PHOTO: Sabadell bank's logo is seen at an ATM machine outside one of the bank's branches in Madrid

ALICANTE, Spain (Reuters) - Retail bank TSB needs to turnaround its business and cut costs before becoming a candidate for a sale or to take part in any consolidation in Britain, the chairman of parent Banco Sabadell said on Wednesday.

By Jesús Aguado

Sabadell bought TSB for £1.7 billion in 2015 to expand into Britain and challenge incumbent retail banks. But economic uncertainty linked to Brexit and low interest rates have made life tough for the bank.

TSB has also been hit by an IT glitch forcing the bank to hire 2,100 staff to help fix the problems which left customers locked out of their online accounts for weeks. This contributed to an increase in costs and last year the bank reported losses of 240 million euros (£204 million).

"TSB is a retail bank with a costly structure, it has to be turned around, for that it needs 3 years, an adequate return (on equity), then it can be a candidate to enter into a consolidation process," Chairman Josep Oliu said a day before Sabadell's annual shareholder meeting. "A merger or a sale are options," he said.

Oliu said TSB was not expected to contribute positively to group's earnings until 2020. Sabadell's CEO Jaime Guardiola said TSB's woes had obliged Sabadell to postpone its profitability target by one year to 2021. Sabadell had originally set itself a return of tangible equity target -- a measure of profitability -- of 13 percent by 2020.

Oliu also said TSB's new chief executive Debbie Crosbie would work on a plan to cut costs at British bank, including a potential cut in branch numbers.

A source told Reuters that a small reduction in TSB's branches in Britain would be part of Crosbie's plans.

MERGER WITH BANKIA AN OPTION?

Oliu also tried to put to rest doubts about the Spanish bank's capital saying the lender would finish 2019 with a core tier 1-fully loaded ratio of 11.7 percent by its own means before eventually moving towards a 12 percent threshold.

"We won't undertake a capital increase because there is no need for that," Oliu said.

Sabadell's shares fell 40 percent last year, in part because of the TSB crisis, while its fully-loaded core tier-1 capital ratio, the strictest measure of solvency, dropped to 11.1 percent from 12.8 percent at end-2017.

Investment bankers say even if Sabadell sells parts of its non-core banking businesses, such as car leasing, asset management or real estate assets, this might not be enough to address capital concerns. They say the real game changer would be a merger in Spain.

Oliu said a merger with state-owned Bankia was not on the table but did not rule such a scenario in the future.

"It is not on the table right now, but what is off the table now could be again on the table" in the future, Oliu said.

Any potential deal involving Bankia would need the backing of Spain's government, which holds 61.4 percent of Bankia.

(Editing by Jane Merriman and Andres Gonzalez)

By Jesús Aguado

Stocks mentioned in the article
ChangeLast1st jan.
BANCO DE SABADELL, S.A. -8.98% 0.2706 End-of-day quote.-73.98%
BANKIA, S.A. -4.96% 0.7938 End-of-day quote.-58.28%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on BANCO DE SABADELL, S.A.
05/19Spain ready to approve new credit lines to help companies cope with COVID-19
RE
05/19EUROPE : Banks, telecoms drag European stocks lower after recent rally
RE
05/19EUROPE : Banks, telecoms drag European stocks lower after recent rally
RE
05/04UK banks say coronavirus relief slowed by lack of full state loan guarantees
RE
04/30Spain's BBVA swings to net loss on U.S. writedown and COVID-19 provisions
RE
04/30Sabadell's net profit shrinks on coronavirus-related provisions
RE
04/08British bank bosses take pay cuts amid coronavirus fallout
RE
04/08BANCO DE SABADELL S A : Sabadell agrees not to pay dividend in 2020
PU
04/07Barclays, Sabadell bosses give up some pay to aid coronavirus relief efforts
RE
04/07BANCO DE SABADELL S A : TSB says CEO to forego 2020 bonus
RE
More news
Financials
Sales 2020 4 823 M 5 357 M 5 357 M
Net income 2020 103 M 115 M 115 M
Net Debt 2020 - - -
P/E ratio 2020 16,9x
Yield 2020 0,16%
Capitalization 1 521 M 1 691 M 1 689 M
EV / Sales 2019
Capi. / Sales 2020 0,32x
Nbr of Employees 24 415
Free-Float 98,6%
Chart BANCO DE SABADELL, S.A.
Duration : Period :
Banco de Sabadell, S.A. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends BANCO DE SABADELL, S.A.
Short TermMid-TermLong Term
TrendsNeutralBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 20
Average target price 0,48 €
Last Close Price 0,27 €
Spread / Highest target 273%
Spread / Average Target 76,4%
Spread / Lowest Target -26,1%
EPS Revisions
Managers
NameTitle
Jaime Guardiola Romojaro Managing Director & Executive Director
Josep Oliu Creus Executive Chairman
Rüdiger Schmidt Head-Global Information Technology & Operations
Tomás Varela i Muiña General Manager & Head-Finance
María Teresa García-Milà Lloveras Independent Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
BANCO DE SABADELL, S.A.-73.98%1 691
JPMORGAN CHASE & CO.-30.19%296 460
INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED-16.67%249 409
BANK OF AMERICA CORPORATION-29.42%209 342
CHINA CONSTRUCTION BANK CORPORATION-9.51%197 434
BANK OF CHINA LIMITED-15.02%132 416