3Q23
results
October 26, 2023
index
1
2
3
4
3Q23 highlights
Financial results
Balance sheet
Closing remarks
3Q23 highlights
3Q23 key messages
NII keeps improving +6% QoQ
NIM +14bps QoQ
Group net profit of €1,028M in 9M23
£152M at TSB
Asset quality remains | |
stable | |
RoTE | Total cost of risk |
55bps |
11.6%
CET1 FL
13.13% Interim cash dividend
of €3cts/share
+50% YoY to be paid in December
4
Higher interest rate environment impacts loan demand while customer funds remain stable in the year
Performing loans across geographies
€M
Sep-23 | QoQ | YoY | |
Spain | |||
95,831 | -2.0% | -4.1% | |
UK (TSB) | 41,793 | -1.7% | -2.5% |
Constant FX | -1.0% | -4.5% | |
Other | 14,003 | +3.6% | +0.0% |
international | |||
+2.2% | +3.8% | ||
Constant FX | |||
Total | 151,627 | -1.4% | -3.3% |
Constant FX | -1.4% | -3.5% | |
Total customer funds
€M
Sep-23 | QoQ | YoY | |
On-balance sheet | |||
161,973 | -0.5% | -0.8% | |
Constant FX | -0.4% | -1.2% | |
Off-balance sheet | 39,342 | -0.9% | +3.4% |
Total | 201,315 | -0.6% | 0.0% |
Constant FX | -0.5% | -0.3% | |
Commercial gap over gross loans increased by €1bn in the quarter driving loan to deposit ratio to 94.6%
Note: Excludes accrual adjustments. | 5 |
The radical transformation undertaken in Retail Banking has advanced at a fast pace
May 2021
Strategic priorities set
for Retail Banking
Today
Results of the transformation
are already visible
Workforce reduction Branch reduction
Cost reduction
Personal and expert support
- Mortgages
- Insurance
- Savings & investments
Full digitisation
- Current accounts
- Unsecured lending
- Cards
c.-20%
Sep-20 vs Sep-23
Mortgage origination through specialised relationship managers
Digital
customer acquisition
Consumer loan sales via digital & remote channels
-30%
Sep-20 vs Sep-23
0% 48%
9M21 9M23
0% 55%
9M21 9M23
42% 75%
9M21 9M23
- We have significantly reduced our cost base…
- …while improving our capabilities as a traditional bank…
- …and building up direct banking capabilities
Our next step is to become the main bank for more customers
6
We are ready to boost our growth in Retail Banking in a profitable way
We launched our digital account in the second quarter | We have revamped our digital account to continue |
of 2022 with successful results so far | attracting new customers and become their main bank |
- The digital account has been a remarkable lever to increase customer acquisition while reaching new segments and territories
Customers acquisition by age | Customers acquisition by geography |
• Current account only for new customers
• 2% AER
• Interest earned on balances
72% | 53% |
28% | 47% |
Acquisition via | Acquisition via |
branch | digital |
18-35 years old | >35 years old |
Territories where digital acquisition has overtaken branch acquisition
of up to €20k
• 3% cash back on utility bills
• No limited period
Value proposition enhanced to increase the
- We have attracted deposits from digital customers without impacting deposit beta
Cost of customer funds in Spain (%)
August 2023 YTD
0.38 Sabadell
0.39 Sector
engaged customers we attract
With a limited impact on our deposit beta
7
Different market trends in mortgages and consumer loans. New lending in Business Banking increasing in the year
Mortgages | Consumer loans | ||||||
Quarterly new lending in Spain (in €M) | Quarterly new lending in Spain (in €M) | ||||||
1,472 | |||||||
1,095 | 890 | -40% | 532 | 559 | |||
Var. YoY -29% | 439 | ||||||
-19% | 9M23/9M22 | ||||||
Var. QoQ | |||||||
3Q22 | 2Q23 | 3Q23 | 3Q22 | 2Q23 | 3Q23 |
+27%
Var. YoY | +27% |
+5% 9M23/9M22 Var. QoQ
Loans and credit facilities - Business Banking
Quarterly new lending in Spain (in €M)
3,801 | +26% | |||
2,056 | 2,585 | +8% | ||
Var. YoY | ||||
-32% | 9M23/9M22 | |||
Var. QoQ | ||||
3Q22 | 2Q23 | 3Q23 |
1 Working capital includes trade discounting, factoring, reverse factoring, forfaiting and import/export finance.
Working capital1 - Business Banking
Quarterly new lending in Spain (in €M)
7,925 8,176 7,566
-5%
Var. YoY +3%
-7% 9M23/9M22 Var. QoQ
3Q22 | 2Q23 | 3Q23 |
8
Good momentum in payment services continues. Increase of savings & investment products
Cards
Quarterly turnover in Spain (in €M)
5,826 5,803
3Q222Q23
# transactions 165M | 171M |
6,148
3Q23
179M
Retailer payment services (PoS)
Quarterly turnover in Spain (in €M)
13,604 | 13,247 | 14,799 | ||
+6% | ||||
Var. YoY | +7% | |||
+6% | ||||
9M23/9M22 | ||||
Var. QoQ | ||||
3Q22 | 2Q23 | 3Q23 | ||
+8% Var. YoY | # transactions 394M | 406M | 439M |
+9%
Var. YoY | +12% |
+12% 9M23/9M22 Var. QoQ
+11% Var. YoY
Savings & investment products | ||||||
Customer funds in Spain (in €bn) | ||||||
47.4 | +€3.6bn | |||||
Sep22 | +€2.1bn | |||||
+€7.1bn | +€1.4bn | |||||
Jun23 | 52.9 | |||||
Var. YoY | ||||||
Sep23 | 54.5 | Term | Structured | |||
Off-balance1 | ||||||
deposits and retail | ||||||
deposits | ||||||
On-balance(term-deposits, structured deposits and commercial paper) | issuances |
Off-balance (mutual funds, pension funds, savings insurance and managed accounts) | 9 |
1 Off-balance includes mutual funds, pension funds, savings insurance and managed accounts |
Volumes declined in the quarter in Spain and grew in other international geographies
Performing loans by segment, ex-TSB
€bn
Sep-23 | QoQ | YoY | |
Mortgages | |||
38.3 | -0.8% | -1.9% | |
Consumer loans | 3.8 | +4.1% | +14.3% |
SMEs & Corporates | 41.5 | -2.1% | -3.8% |
Public sector | 8.7 | -3.3% | -15.0% |
Other lending | 3.6 | -14.9% | -14.8% |
Sep-23 | QoQ | YoY | |
Mexico | 4.7 | +7.7% | +9.8% |
Constant FX | X.X% | +6.4% | +11.7% |
Miami | 5.7 | +3.2% | -6.8% |
Constant FX | X.X% | +0.6% | +1.3% |
Foreign branches | 3.6 | -0.7% | -0.3% |
Constant FX | |||
X.X% | -0.4% | -1.3% | |
Total international | 14.0 | +3.6% | -0.0% |
Constant FX | X.X% | +2.2% | +3.8% |
Total Spain | 95.8 | -2.0% | -4.1% |
Note: Excludes accrual adjustments.
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Banco de Sabadell SA published this content on 26 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2023 05:44:43 UTC.