BSPress

Banco Sabadell obtained Euros 231.9 million in net profit and improved all business margins in 2011

After Euros 1,048.9 million in provisions, earnings were 39.0% lower than in 2010.

• Active capital management led to a core capital ratio of 10.30% (compared with 8.20% at 2010 year-end).

• Net interest income rose 5.4% and the margin before provisions by 8.3%, exceeding market consensus expectations.
  
  
• Strong organic growth improved the market share in all areas, and the bank added 342,000 new customers in 2011 to reach a total of over 2.7 million.

Despite the adverse economic situation resulting from prolonged economic weakness and persistent instability in the financial markets, Banco Sabadell met its objectives in 2011 and obtained consolidated results in line with expectations, evidencing the stability of the ordinary business and the measures undertaken to continue strengthening the balance sheet.

In 2011, the Bank's 130th anniversary, it obtained net attributable profit of Euros 231.9 million (39.0% less year-on-year) after booking NPL and other provisions amounting to Euros 1,048.9 million (up 8.4% with respect to 2010).

First Spanish bank to launch a mobile application for Android and Kindle Fire tablets

 

Banco Sabadell is the first bank in Spain to adapt its mobile bank application to the new version of the Android operating system exclusively designed for tablets, as well as for the Amazon Kindle FIRE device, recently launched in the market.
 
This new version of BS Móvil includes all the operations currently available from this service (check accounts and cards, make transfers, buy securities, sign files, etc.), as well as the possibility of contacting the bank, 24 hours a day all year round; an option for locating branches and ATMs, as well as access to the Sabadell activity on the social networks (Twitter, Facebook, Youtube, etc.).

Banco Sabadell strengthens its core capital through the redemption of preference shares

Upon conclusion of the offer to redeem four issues of preference shares issued by Banco Sabadell group between 1999 and 2009, the acceptance rate was 93.80% of the maximum nominal amount.

The redemption offer, which commenced on 2 December and is part of Banco Sabadell's active capital management strategy, gave holders of the preference shares the opportunity to replace their positions in those instruments with Banco Sabadell shares.

This redemption also enables Banco Sabadell to further strengthen its capital, since the preference shares are computed as equity but are not included in the core capital ratio nor do they count as core capital or equity for the purposes of the European Banking Authority. In contrast, the ordinary shares count as core capital and are included in all of the aforementioned ratios and types of capital.

Following this transaction, Banco Sabadell's core capital would have increased by 145 basis points, to 10.55% (proforma) as of September 2011.

FROB allocates CAM to Banco Sabadell

Banco CAM has been allocated to Banco Sabadell following a competitive tender organised by the FROB, Spain's Fund for Orderly Bank Restructuring. This outcome throws light into the future of Banco CAM since it is to be incorporated into the Banco Sabadell group.

Banco Sabadell's interest is strategic since Banco CAM is a significant complement to its existing franchise in Alicante, Murcia, Valencia and the Balearic Islands.

Banco CAM's balance sheet was cleaned-up and strengthened prior to the acquisition, which ensures it can be integrated without impairment for Banco Sabadell's balance sheet. Banco CAM also has additional liquidity guarantees to ensure normal operation over the coming years.

Banco Sabadell creates a new private banking division which will include Banco Urquijo and Sabadell Private Banking under a single business model

Banco Sabadell has decided to reorient its private banking business and concentrate on customised services for customers by integrating Banco Urquijo's network with Sabadell's own private banking business to create a single division under the Sabadell Urquijo Banca Privada brand. With 20,000 customers and over 24 billion euro in total business volume, the new private banking division will be a leader in the segment in Spain. Ismael Picón, currently General Director of Banco Urquijo, will head this new division.

This strategic initiative seeks to enhance the group's commercial performance, reinforcing Banco Sabadell's position as a leader in advisory and management services for high net worth individuals in Spain, and leveraging the synergies generated by reducing structural complexity.

Ramón de la Riva, Deputy General Director of Banco Sabadell and Director of Markets and Private Banking: "The integration of Banco Urquijo and Sabadell's Private Banking business will enable us to unify and capitalise on our ability to sell services, develop new products and serve customers by improving our value proposition and increasing overall operating efficiency."

In the photograph, Ismael Picón.