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• Performing Loans Growth: 4.7% year-on-year increase.

• Customer Funds Growth: 7.1% year-on-year increase.

• Net Interest Income (NII) Growth: 5.5% year-on-year increase, excluding EUR36 million of extraordinary interests.

• Customer Margin Increase: 8 basis points.

• Non-Performing Assets (NPAs) Decrease: 16% reduction in the year.

• Coverage Ratio: Increased by 3 percentage points to 59%.

• Cost of Risk: 42 basis points, an improvement of 13 basis points over the year.

• Annual Net Profit: EUR1.8 billion.

• Return on Tangible Equity: 14.9%.

• Core Tier 1 Ratio: 13% after deducting 100 basis points for excess capital distribution.

• New Mortgage Production Increase: 53% compared to 2023.

• New Consumer Loans Growth: 21% increase in 2024.

• TSB Contribution to Group: EUR253 million, highest since acquisition.

• TSB Net Profit: 208 million pounds, a 19% increase versus 2023.

• Group NII Growth: 6.3% year-on-year.

• Fees Decline: 2% decrease year-on-year.

• Recurrent Costs Growth: 2.7% year-on-year.

• Cost-to-Income Ratio: 48.7% for the group, 43.5% ex-TSB.

• Credit Cost of Risk: 26 basis points for the year.

• NPL Ratio: Below 3%, lowest since 2009.

• Liquidity Coverage Ratio (LCR): 210% for the group.

• Net Stable Funding Ratio (NSFR): 142%.

• Shareholder Remuneration for 2024: EUR3.3 billion, equivalent to EUR0.61 per share.

• Warning! GuruFocus has detected 5 Warning Sign with BNDSF.

Release Date: February 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Banco de Sabadell SA (BNDSF) reported a record annual net profit of EUR1.8 billion, reflecting a return on tangible equity of 14.9%.

• The bank's commercial activity showed strong momentum, with performing loans growing by 4.7% and customer funds by 7.1% year-on-year.

• Asset quality improved significantly, with total non-performing assets (NPAs) decreasing by 16% and the coverage ratio increasing to 59%.

• The bank's core tier 1 ratio stands at 13%, indicating a strong capital position after accounting for excess capital distribution.

• Banco de Sabadell SA (BNDSF) has been included in the Dow Jones Sustainability World Index, highlighting its commitment to sustainability.

Negative Points

• Net interest income (NII) showed a decline of 1.2% in the quarter when excluding one-off items, due to downward repricing.

• Group fees declined by 2.1% year-on-year, impacted by lower current account maintenance fees.

• Recurrent costs grew by 2.7% year-on-year, slightly above the initial guidance.

• The bank's cost of risk, although improved, still stands at 42 basis points, indicating room for further reduction.

• The bank faces challenges in maintaining NII resilience in a lower interest rate environment, with expectations of a low single-digit decline in 2025.