Banco Sabadell plans to distribute €1.3 billion from year’s results between cash dividends and share buybacks

banco sabadell

Link Securities | Banco Sabadell (SAB) reported yesterday that, given that capital was generated at a faster rate than announced in Q1 2025, the entity will be able to allocate €100 million more than estimated this year to remunerate its shareholders. In total, the planned distribution charged to 2025 results will be €1.3 billion between cash dividends and share buybacks, which, added to the €2.1 billion charged to 2024, amounts to €3.4 billion over the two years. The cash payment per share this year will be at least the same as last year.

SAB reported that, following the latest acquisitions, it has completed the Share Buyback Programme, having reached the maximum monetary amount of €247 million provided for in the Programme, representing the acquisition of a total of 99,460,820 treasury shares representing approximately 1.846% of SAB’s share capital as of this date. The purpose of the Buyback Programme is to reduce SAB’s share capital by redeeming the treasury shares acquired under the Buyback Programme.

Furthermore, SAB announces that today, 9 May 2025, the buyback programme will commence under the terms described below and in accordance with the proposed agreement approved by the Bank’s Ordinary General Shareholders’ Meeting:

a) Purpose: to reduce SAB’s share capital by redeeming the treasury shares acquired in execution of the capital reduction approved by the SAB Ordinary General Shareholders’ Meeting held on 20 March 2025, contributing to the remuneration of SAB shareholders by increasing earnings per share, which is inherent to the reduction in the number of shares.

b) Maximum monetary amount: €755 million.

c) Maximum number of shares: the maximum number of shares to be acquired will depend on the average price at which the purchases are made, but will not exceed 413,159,663 shares, or such lower number of shares which, added to the other treasury shares of SAB at any given time, represent 10% of the share capital.

d) Maximum price per share: no shares will be acquired at a price higher than the higher of the following: (a) the price of the last independent trade, or (b) the highest independent bid at that time on the trading venue where the purchase is made.

e) Volume: no more than 25% of the average daily volume of the shares on the trading venue where the purchase is made shall be purchased on any trading day. The daily volume shall be based on the average daily volume traded in the twenty (20) business days prior to the date of each purchase.

f) Start of the Buyback Programme: the Buyback Programme shall commence on 9 May 2025.

g) End of the Buyback Programme: the Buyback Programme shall end no later than 31 December 2025 and, in any event, when the maximum monetary amount is reached or the maximum number of shares constituting its object is acquired.

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