Banco Sabadell has proposed a redundancy plan for 1,900 employees to the trade unions, which could mean the closure of between 230 and 300 branches. It should help the bank to improve its low profitability, ROE, of 3.1% on equity, far from the cost of capital (which can be up to three times higher). It is also way off the profitability obtained by its Spanish competitors (Santander and BBVA have…
Banco Sabadell has been left hanging after the announcement of the merger between Bankia and CaixaBank. For months there had been talk of a combination of Sabadell and Bankia as the most promising concentration operation in the sector. Now, however, this possibility has vanished and the Catalan bank would be assessing different options to protect its interests.
This long term and strategic partnership includes the acquisition by Amundi of 100% of Sabadell Asset Management, which has €21.8bn of assets under management, of which €16.1bn is in Spanish-domiciled funds. The transaction value, financed via Amundi’s existing cash resources, is €430m.
In its strategic plan for 2018/2020, presented last February, Sabadell set the objective of reducing its exposure to problematic assets to below 9 billion euros. In the end the bank will exceed this target.
Bankinter analysts believe the markets are undervaluing the European Financial Sector. Expect average BPA for the sector as a whole to exceed 10% in 2018.
In a note on regional commercial banks, AlphaValue analysts flag that lenders in southern European countries have been amongst the better performers in terms of share price and P/BV. Spanish bank Sabadell is amongst their top picks.
Until the tense situation in the country is resolved, we believe the Spanish stock market will continue to suffer more than its European peers. As an example of this, in the week up until October 4, Spanish equity funds lost $229 million, according to market data firm EPFR.
Link Securities | Despite the ongoing uncertainty in the wake of last Sunday’s referendum in Catalonia, investors returned to the Spanish markets yesterday, buying up both equities and bonds. The main driver behind this renewed interest is the decision by top Catalan banks, Sabadell and Caixabank, to move their headquarters away from their home base.
Catalan lender Sabadell has sold its subsidiary Sabadell United Bank (Sabadell United) to US lender Iberiabank Corporation (IBKC) for a total price of 1.025 billion dollars (967 million euros).
Moving away from traditional web pages. “Companies can resolve their queries easily and in real time,” Banco Sabadell affirms, “and for the bank it represents an excellent tool for communication.”