Sabadell’s Profit Outlook for 2024

MADRID (Reuters) – The CEO of Spain’s Sabadell, Cesar Gonzalez-Bueno, stated on Thursday that the bank could earn over €1.6 billion ($1.76 billion) in net profit in 2024, provided it maintains the performance seen in the first half of the year.

Sabadell is currently navigating a hostile takeover attempt by competitor BBVA, valued at approximately €12 billion.

In July, Sabadell projected a net profit exceeding €1.4 billion for 2024, with an aim for a tangible equity ratio return above 13%, a key profitability measure.

Without issuing a new forecast, Gonzalez-Bueno informed shareholders in Barcelona that the first-half results amounted to €791 million, suggesting that the overall profit this year could exceed €1.6 billion if similar performance continues.

These remarks followed BBVA’s adjusted takeover bid on Tuesday, which included interim dividend payments from both banks to retain the offer’s integrity. BBVA previously proposed an exchange of one newly issued share for 4.83 Sabadell shares, offering a 30% premium against Sabadell’s share price as of April 29.

Following Sabadell’s recent interim dividend payment of €0.08 per share, BBVA adjusted its proposal to one newly issued BBVA share for 5.0196 ordinary Sabadell shares.

BBVA’s share price has declined to €9.334 from €10.90 since the initial offer, resulting in a current premium of about 3.3%. This values Sabadell at approximately €10 billion, according to Reuters calculations based on the new exchange ratio.

($1 = 0.9070 euros)