Sabadell lending income falls as new CEO prepares to take the helm

Sabadell reported a drop in quarterly lending income as margins face pressure. Incoming CEO Marc Armengol must now protect profits after the sale of TSB.

Insights:
Banco de Sabadell, S.A. reported on Friday that its net interest income fell by 5.2 percent year-on-year during the fourth quarter of 2025, as lending income remained under pressure from low interest rates. The results for the October-December period led to a reduction in both quarterly and full-year profits, prompting a negative reaction from investors. Shares in Banco de Sabadell, S.A. fell 4.4 percent following the announcement, reflecting market sensitivity to the bank's near-term profitability metrics.
FILE PHOTO: The logo of Sabadell bank is seen on the top of its main central service office building in Sant Cugat del Valles, near Barcelona, Spain, January 22, 2025. REUTERS/Albert Gea/File Photo
FILE PHOTO: The logo of Sabadell bank is seen on the top of its main central service office building in Sant Cugat del Valles, near Barcelona, Spain, January 22, 2025. REUTERS/Albert Gea/File Photo
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