Spain's Sabadell (SABE.MC) said on Friday its second-quarter net profit rose 28% from the same period in 2025 due to capital gains of €322 million from the sale of its British unit TSB that offset some pressure from lower lending income.
The country's fourth-largest bank in terms of market value reported a net profit of €624 million ($709.80 million) in the April to June period. Analysts polled by Reuters expected a net profit of €653 million.
Though the sale of TSB was not closed until May 1, the bank provided a pro forma comparison excluding TSB, showing net profit for the second quarter of 2025 and 2026 on a like-for-like basis. In that case, recurrent net profit rose 48% to €608 million.
The bank also said it would launch a new share buyback programme of €331 million next week.
Spanish banks have benefited from variable-rate lending, but lower interest rates have squeezed margins. Recent geopolitical tensions have pushed market rates higher, with further increases expected.
Sabadell's net interest income, or earnings on loans minus deposit costs, fell 0.4% year-on-year proforma in the quarter to €902 million, however above analysts' forecasts of 895 million euros. Against the previous quarter, NII already rose 3.4%.
($1 = 0.8482 euros)
