1Q24
results
April 25, 2024
index
1
2
3
4
1Q24 highlights
Financial results
Balance sheet
Closing remarks
1Q24 highlights
1Q24 key messages
Net Interest Income increases +1.7% QoQ
Customer margin at 3.09% (+10bps QoQ)
Group net profit of €308M
After €192M banking tax payment
(non tax-deductible)
RoTE1
12.2%
CET1 FL
13.30%
Asset quality keeps improving
Total cost of risk at 50bps (-5bps QoQ)
Share buyback programme
€340M starting today
1 Last 12 months Return on Tangible Equity.
4
Positive performance despite quarterly seasonality…
Performing loans across geographies
€M
Mar-24 | QoQ | YoY | |
Spain | |||
94,619 | +0.0% | -3.0% | |
UK (TSB) | 42,330 | +2.3% | +0.8% |
Constant FX | +0.7% | -2.0% | |
Other | 13,847 | +0.4% | +5.6% |
international | |||
-1.8% | +3.4% | ||
Constant FX | |||
Total | 150,796 | +0.7% | -1.2% |
Constant FX | +0.0% | -2.1% | |
Total customer funds
€M
Mar-24 | QoQ | YoY | |
On-balance sheet | |||
161,419 | +0.3% | -0.5% | |
Constant FX | -0.2% | -1.4% | |
Off-balance sheet | 42,150 | +3.9% | +6.7% |
Total | 203,569 | +1.1% | +0.9% |
Constant FX | +0.6% | +0.1% | |
…contributing to an expected turnaround in annual trend
5
Management initiatives in place to foster new lending growth while reducing cost of risk
Improved distribution model | |
Enhanced capabilities to attract | |
Mortgage | and convert digital demand |
More segmented pricing |
250 remote specialized RMs deployed, supporting 100% of our branch network
Revamped digital journeys
Leveraging on improved risk models
Origination through | |
55% | remote specialized |
RMs, offering | |
1Q24 | |
customers extended | |
service hours |
More pre-approved loans | Increased number of customers with pre- | |
approved loans | ||
Consumer | More segmented pricing | Leveraging on improved risk models |
lending |
New lending granted | |
86% | through digital & remote |
1Q24 | pre-approved loans |
(67% in 2022) |
Business
New customers segmentation
More pre-approved loans
Premium relationship model offered to large companies has been extended to SMEs
Specific risk models and specific go-to-market strategies for each segment
~€20bn
1Q24
~€13bn
Pre-approved loans available for self-employed and businesses
Pre-approved loans available for SMEs and
Banking
Greater specialization
More data-analytics to support
RMs and risk analysts
Specialization of risk analysts and RMs by sector (for larger companies)
Better identification of target good-risk customers and growth opportunities
1Q24
83%
1Q24
large companies
New lending granted to target customers
(79% in 2022)
6
New lending is gaining momentum in households…
Mortgages
€M, quarterly and monthly new lending in Spain
1,025
908
754
-11%
Var. YoY
+20%
Var. QoQ
1Q23 | 4Q23 | 1Q24 |
Consumer loans
390 | ||
251 | 266 | |
Jan-24 | Feb-24 | Mar-24 |
New mortgages trend
QoQ evolution | 2Q23 | 3Q23 | 4Q23 | 1Q24 |
of early-stage-10% | -22% | +13% | +59% | |
applications | ||||
2.100 | ||||
1.900 | ||||
1.700 | -19%-15% +20% | |||
1.500 | ||||
1.300 | ||||
1.100 | ||||
900 | 1,095 | |||
908 | ||||
890 |
41.000 36.000 31.000 26.000 21.000 16.000 11.000
€M, quarterly and monthly new lending in Spain
552 | |
490 | 521 |
+13% | |
Var. YoY |
+6% |
172
88%
Preapproved
loans1
200
180
700 | 754 | |||
500 | ||||
300 | ||||
2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 |
New mortgage lending (€M) |
The quarterly evolution of early-stage applications anticipates growth of new
6.000 1.000 -4.000
Var. QoQ | ||
1Q23 | 4Q23 | 1Q24 |
Jan-24Feb-24Mar-24
mortgage lending in the next quarter
7
…and also in business banking…
Loans and credit facilities - Business Banking
€M, quarterly new lending in Spain
3,894 | ||
2,638 | 2,692 | +48% |
Var. YoY | ||
+45% | ||
Var. QoQ | ||
1Q23 | 4Q23 | 1Q24 |
Working capital1 - Business Banking
€M, quarterly new lending in Spain
7,6517,5477,255
-5%
Var. YoY
-4%
Var. QoQ
1Q234Q231Q24
Impacted by seasonality
…as demand for mid- and long-term borrowing increases
1 Working capital includes trade discounting, factoring, reverse factoring, forfaiting and import/export finance. | 8 |
Strong growth in payment services continues. Savings & investment products increase
Cards | Retailer payment services (PoS) |
Quarterly turnover in Spain (in €M) | Quarterly turnover in Spain (in €M) |
Merchant acquiring business deal
expected to close
in 2Q24
5,330 | 6,212 | 5,727 |
+7%
Var. YoY
-8% | Impacted by |
Var. QoQ | |
seasonality | |
11,261 | 13,513 | 12,445 |
+11%
Var. YoY
-8% | Impacted by |
Var. QoQ | |
seasonality | |
1Q23 | 4Q23 | 1Q24 | ||
# transactions 158M | 186M | 174M | +10% Var. YoY | # transactions |
Savings & investment products
Customer funds in Spain (in €bn)
Mar23 | 50.5 |
Dec23 | 56.6 | +€2.1bn |
Var. QoQ | ||
Mar24 | 58.7 |
On-balance (term deposits, structured deposits and commercial paper)
Off-balance (mutual funds, pension funds, savings insurance and managed accounts)
1Q23 | 4Q23 | 1Q24 | |
356M | 423M | 403M | +13% Var. YoY |
+€1.6bn
+€0.5bn
Term | Off-balance1 |
deposits | |
9
1 Off-balance includes mutual funds, pension funds, savings insurance and managed accounts.
Stable volumes in Spain with positive momentum…
Performing loans by segment, ex-TSB
€bn
Mar-24 | QoQ | YoY | |
Mortgages | |||
37.5 | -0.8% | -3.7% | |
Consumer loans | 4.0 | +2.9% | +13.8% |
SMEs & Corporates | 41.2 | +0.9% | -3.3% |
Public sector | 8.7 | +1.9% | -3.0% |
Other lending | 3.2 | -10.1% | -8.6% |
Mar-24 | QoQ | YoY | |
Mexico | 4.8 | +4.2% | +16.1% |
Constant FX | X.X% | +1.0% | +10.7% |
Miami | 5.6 | -1.3% | +2.0% |
Constant FX | X.X% | -3.4% | +1.4% |
Foreign branches | 3.4 | -2.1% | -1.2% |
Constant FX | |||
X.X% | -2.8% | -2.5% | |
Total international | 13.8 | +0.4% | +5.6% |
Constant FX | X.X% | -1.8% | +3.4% |
Total Spain | 94.6 | +0.0% | -3.0% |
…should foster growth through 2024
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Banco de Sabadell SA published this content on 25 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 April 2024 06:58:15 UTC.