• The distribution of a dividend of 0.01 euro gross per share in cash and a supplementary dividend of 0.02 euro per share in the form of own shares were approved and will be paid as from 3 April
  • The Meeting also approved the appointment of David Martínez as proprietary director and the re-appointment of Sol Daurella as independent director
  • Josep Oliu: "Banco Sabadell is well-positioned to benefit from the gradual improvement in the economy, as it gains strength. Our focus is to obtain returns on the strategic and commercial initiatives being implemented."

The Ordinary Shareholders' Meeting of Banco Sabadell, held today in Sabadell with 68,23% of capital in attendance (present and represented), approved business performance and earnings for 2013, the bank's 132nd year in operation, and the proposed distribution of income, which amounted to 247.8 million euro in 2013.

The shareholders also resolved to allocate 40.1 million euro to dividends by distributing a dividend of 0.01 euro gross per share, and a supplementary scrip dividend of 0.02 euro gross per share (80.2 million euro in total charged to the issue premium reserve). As a result, total gross shareholder remuneration is 0.03 euro per share, to be paid after 3 April.

The Meeting also approved the appointment of David Martínez Guzmán, director of Fintech Investments Ltd., as a proprietary director, and the re-appointment of Sol Daurella Comadrán, chairman of Coca Cola Iberian Partners, S.A., as independent director for a five-year term.

Chairman's remarks

In his presentation, bank chairman Josep Oliu spoke about economic performance during the year, highlighting that the sovereign crisis of 2012 was now in the past and noting the considerable progress being made in European bank integration, Spain's incipient economic recovery, and the conclusion of the international aid programme to restructure Spain's financial sector.

Mr Oliu also underlined that the bank grew despite the financial crisis: "We have doubled in size and created a franchise throughout Spain, in particular along the Mediterranean and Cantabrian coasts, while also notably expanding the business in the US as part of our first effort to diversify the business."Mr Oliu noted that the bank has more than 8 billion dollars under management in the USand a loan book amounting to over 4.3 billion dollars. He also reported on the development of a project in Mexico, "a market with scope for growth".

As for 2013, he highlighted the integration of the branch networks of BMN in Catalonia and Aragón (Caixa Penedès), Lloyds Bank Spain and Banco Gallego, and the 1.383 billion euro capital increase, which enabled the bank to strengthen its core capital ratio to 12% and allow international investors to enter the shareholder structure. Mr Oliu noted that the capital increase "has aligned Banco Sabadell with the best-capitalised banks in Spain and Europe, complying with themost demanding capital requirements".

With regard to 2014, he said that the economic recovery is gaining strength and called on the government to maintain its commitment to continuing with the structural reforms that arestill pending, with emphasis on the tax system. "The structural reforms that have been and will be implemented, fiscal consolidation, the process to adjust accumulated imbalances and normalisation of lending will help lay the foundations for greater and more sustainable growth over time".

With regard to lending to individuals and businesses, he said that "the acute correction phase is behind us", and that it is no longer possible to speak of lending being restricted due to capital shortfalls at the banks. Mr Oliu added that lending will be supported by lower funding costs for banks and by the economic recovery, although he underlined that "we are still in a situation of risk aversion, and part of the population and a segment of business continue to focus on deleveraging and strengthening their balance sheets."

The chairman concluded by highlighting the Triple Plan, the new three-year strategic plan (2014-2016), which focuses on strengthening the domestic business and laying the foundation for international growth. "The challenge we face is to continue to advance our project throughout Spain in a way that is efficient, profitable and balanced, taking advantage of the bank's new position in the market, its new locations and the enthusiasm of the new personnel who have joined our team. Banco Sabadell is well-positioned to benefit from the gradual improvement in the economy, as it gains strength. Our focus going forward is to maximize returns from our strategic and commercial initiatives."

CEO's remarks

In his address, CEO Jaime Guardiola focused on business performance and the key figures for the year. He said that, in 2013, the bank attained the position "that we considered to be necessary in order to become a leading independent bank, once the restructuring process in the industry is completed".

Jaime Guardiola also noted thatBanco Sabadell had ended the year with high levels of liquidity and capital as a result of active management in both areas, coupled with a considerable increase in customer numbers and deposits.

The CEO noted that 2013 marked the end of the CREA strategic plan (2011-2013), which enabled the bank to expand customer numbers (from 2.1 million in 2011 to 6.5 million at present), increase productivity (from 1,800 customers per branch to 2,909 at present) and consolidate recognition of the Sabadell brand nationwide. He added: "For the third consecutive year, the bank broke its own record in customer acquisition, having added 372,400 new customers, 9.9% more than in 2012. He also commented on the transformation of the bank's balance sheet between 2011 and 2013, "due to the decision to create our own asset management unit, which has sold over 39,000 properties in the last three years".

Jaime Guardiola discussed the main achievements in all the bank's lines of business. He mentioned that, last year, Banco Sabadell gave priority to lending to companies and self-employed workers. New medium- and long-term lending to companies amounted to 5,292 billion euro, and over 91,600 companies became customers of the bank, 24% more than in the previous year. He also emphasized that "business with large companies increased by 15.6% year-on-year and we now have a 67% market share in this segment".

Jaime Guardiola told shareholders that the bank is now implementing the Triple Plan which, he believes, will enable it to regain cruising speed in earnings. "I would like to highlight," he concluded, "this plan's ambitious objectives, which include regaining cruising speed in terms of earnings; our target is 1.000 billion euro in profit in 2016, with a 12% return on equity".

distributed by