1Q24

Quarterly Financial Report

Contents

1

Summary

3

2

Key figures

5

3

Performance review

6

Macroeconomic environment

6

Income statement

8

Balance sheet

15

Risk management

19

Liquidity management

22

Capital management and credit ratings

23

Results, by business unit

25

4

Share price performance

30

5

Key developments in the quarter

31

6

Glossary of terms on performance measures

33

Legal disclaimer

This document is strictly for information purposes only and is not an offer of any product. No agreement or commitment should be based or dependent on this document or any part thereof. Any decisions concerning financial transactions should take into account the client's needs and their appropriateness from a legal, fiscal, accounting and/or financial point of view, in accordance with the information documents envisaged by the law in force. Investments mentioned or recommended herein may not be suitable for all investors. The opinions, forecasts and estimates contained in this document are based on available public information and are an evaluation by Banco de Sabadell, S.A. as at the date of preparing this document. No assurance is given that future results or events will conform to these opinions, forecasts and estimates. The information is subject to change without prior notice, its accuracy is not guaranteed and it may be incomplete or summarised. Banco de Sabadell, S.A. accepts no liability whatsoever for any losses arising from the use of this document or its content, or otherwise in connection herewith.

Basis of presentation

The consolidated income statement and balance sheet as at the end of March 2024 and 2023, together with the disclosures shown in this Financial Report, are presented in accordance with the accounting standards, principles and criteria defined in Note 1 to the Group's consolidated annual financial statements as at 31 December 2023.

Pursuant to the Guidelines on alternative performance measures published by the European Securities and Markets Authority on 5 October 2015 (ESMA/2015/1415), a glossary has been included with the definitions and the reconciliation with the items presented in the financial statements of certain alternative financial measures used in this document. See Glossary of terms on performance measures.

First quarter of 2024

2

1. Summary

Net interest income

Net interest income followed a positive trend, reaching 1,231 million euros as at the end of March 2024, representing year- on-year growth of 11.9%, mainly due to a higher credit yield and improved revenue from the fixed-income portfolio, underpinned by higher interest rates, all of which served to offset higher costs of both deposits and wholesale funding as well as lower volumes.

In the quarter, net interest income increased by 1.7%, driven by a higher customer margin, where credit yield growth was underpinned by portfolio repricing, while the cost of deposits grew at a slower pace.

Net fees and commissions

Net fees and commissions amounted to 340 million euros as at the end of March 2024, representing a year-on-year reduction of -3.1%, mainly due to reduced service fees, particularly sight account fees, as well as reduced asset management fees.

In the quarter, they showed slight growth of 0.2%, mainly due to greater asset management fees in spite of positive seasonality in the previous quarter.

Net interest income

Total group

Constant FX

Excl. TSB

Change YoY:

+11.9%

+10.6%

+19.6%

Change QoQ:

+1.7%

+1.1%

+1.6%

1,100

1,211

1,231

273

278

303

797

938

953

1Q23

4Q23

1Q24

TSB

Excl. TSB

Net fees and commissions

Total group

Constant FX

Excl. TSB

Change YoY:

-3.1%

-3.4%

-3.9%

Change QoQ:

+0.2%

-0.2%

+1.3%

350

339

340

28

33

30

322

306

310

1Q23

4Q23

1Q24

TSB

Excl. TSB

Total costs

Total costs came to 751 million euros as at the end of March 2024, reflecting a year-on-year increase of 2.9%, due to both higher staff expenses and higher general expenses, where particular note should be taken of marketing and IT expenses, which offset the reduction of amortisations/depreciations.

Quarter-on-quarter, total costs showed a reduction of -4.2%, as the previous quarter was impacted by non-recurrent restructuring costs at TSB. Excluding this impact, recurrent costs remained in line with the previous quarter.

Net profit of the Group

As at the end of March 2024, the Group's net profit amounted to 308 million euros, representing year-on-year growth of 50.4%, with profit ex-TSB amounting to 263 million euros, impacted by the -192 million euro payment corresponding to the banking tax in Spain, while 46 million euros correspond to TSB. This level of profit pushed the Group's ROTE up to 12.2%.

Core results (net interest income + fees and commissions - recurrent costs) grew by 13.8% year-on-year and by 2.6% in the quarter, driven by the increase of net interest income.

Total costs

Total group (1)

Constant FX (1)

Excl. TSB (

Change YoY:

+2.9%

+1.6%

+4.6%

Change QoQ:

0.0%

-0.7%

-1.4%

0

784

751

0

730

33

226

216

224

504

535

528

1Q23

4Q23

1Q24

Excl. TSB

TSB

Non-recurrent costs

(1) Change over total recurrent costs.

Group net profit

Total group

Constant FX

Excl. TSB

Change YoY:

+50.4%

+48.3%

+73.3%

Change QoQ:

+1.3%

+0.8%

-2.8%

304

308

205

34

46

53

270

263

151

1Q23

4Q23

1Q24

TSB

Excl. TSB

First quarter of 2024

3

Performing loans

Performing loans decline by -1.2%year-on-year, where it is particularly worth mentioning the reduction of mortgage lending and reduced volumes of SMEs and corporates, affected by the higher interest rate environment.

In quarter-on-quarter terms, lending grew by 0.7%, driven by currencies appreciation, as considering a constant exchange rate it remained at similar levels to the previous quarter, with a slight increase in loans granted to corporates.

Customer funds

Customer funds increased by 0.9% year-on-year, positively impacted by the currency exchange rate. Assuming a constant exchange rate, they increased slightly, flowing through from sight accounts to off-balance sheet funds, mainly mutual funds, and towards term deposits.

In the quarter, they followed a positive trend, recording growth of both on-balance sheet and off-balance sheet customer funds, notably mutual funds, due both to greater returns and to a positive level of net inflows.

Non-performing assets (NPAs)

The balance of NPAs has been reduced by 351 million euros over the past twelve months, the reduction in the first quarter of 2024 being 92 million euros, while the coverage ratio considering total provisions rose to 55.8%.

The Group's stage 3 ratio improved to 3.5%, while the stage 3 coverage ratio considering total provisions and the stage 3 coverage ratio increased to 58.5% and 42.5%, respectively.

The gross NPA ratio was 4.0%, while the net NPA ratio stood at 1.8% considering total provisions.

The Group's credit cost of risk improved by 2bps in the quarter, standing at 41bps, while the total cost of risk fell by 5bps to stand at 50bps as at the end of March 2024.

Performing loans

Total group

Constant FX

Excl. TSB

Change YoY:

-1.2%

-2.1%

-2.0%

Change QoQ:

+0.7%

0.0%

+0.0%

152,637

149,798

150,796

41,993

41,381

42,330

110,643

108,417

108,466

Mar 23

Dec 23

Mar 24

TSB

Excl. TSB

Total customer funds

Total group

Constant FX

Excl. TSB

Change YoY:

+0.9%

+0.1%

+1.1%

Change QoQ:

+1.1%

+0.6%

+0.9%

201,820

201,449

203,569

40,617

39,864

40,558

39,513

40,561

42,150

121,690

121,025

120,861

Mar 23

Dec 23

Mar 24

TSB Off-balance sheet customer funds On-balance sheet customer funds Excl. TSB

Stage 3 exposures (%)

56.1

60.3

60.8

58.3

58.5

54.6

42.3

45.5

45.9

39.5

42.3

42.5

4.27

4.22

4.15

3.52

3.52

3.46

Mar 23

Dec 23

Mar 24

Mar 23

Dec 23

Mar 24

Excl. TSB

Total group

Stage 3 ratio

Stage 3 coverage ratio with total provisions

Stage 3 coverage ratio

Problematic assets

7,008

6,748

6,657

1,117

971

939

5,891

5,777

5,718

Mar 23

Dec 23

Mar 24

Stage 3 assets

Problematic RE Assets

Capital ratio

The fully-loaded CET1 ratio increased by 9bps in the quarter, standing at 13.30%, while the total capital ratio reached 18.42%, thus standing above requirements, with an MDA buffer of 437bps.

CET1 fully-loaded (%)

12.78

13.21

13.30

Mar 23

Dec 23

Mar 24

First quarter of 2024

4

2. Key figures

Excl. T SB

T o tal gro up

(7)

(6)

(7)

3 1.0 3 .2 3

3 1.0 3 .2 4

Yo Y (%)

31.03 .23

31.03 .24

Yo Y (%)

Profit and loss account (€ millions)

Net interest income

797

953

19.6

1,100

1,231

11.9

Core revenues

1,119

1,263

12.8

1,450

1,571

8.3

Gross operating income

983

1,136

15.5

1,311

1,444

10.2

Pre-provisions income

479

608

26.9

581

693

19.3

Attributable net profit

151

263

73.3

205

308

50.4

Balance sheet (€ millions)

Total assets

196,699

185,234

-5.8

248,480

236,135

-5.0

Performing gross loans

110,643

108,466

-2.0

152,637

150,796

-1.2

Gross loans to customers

115,818

113,414

-2.1

158,454

156,445

-1.3

On-balance sheet customer funds

121,690

120,861

-0.7

162,307

161,419

-0.5

Off-balance sheet customer funds

39,513

42,150

6.7

39,513

42,150

6.7

Total customer funds

161,203

163,012

1.1

201,820

203,569

0.9

Net equity

--

--

13,145

14,240

8.3

Shareholders' equity

--

--

13,657

14,633

7.1

Profitability and efficiency ratios (%)

ROA

--

--

0.3

0.6

RORWA

--

--

1.1

1.8

ROE

--

--

6.2

10.1

ROTE

--

--

7.6

12.2

Efficiency

39.1

34.1

43.5

39.7

Efficiency with amortisation & depreciation

48.7

41.5

53.6

47.6

Risk management

(1)

Stage 3 exposures (€ millio ns)

5,314

5,077

-4.5

5,891

5,718

-2.9

Total problematic assets (€ millio ns)

6,431

6,015

-6.5

7,008

6,657

-5.0

Stage 3 ratio (%)

4.27

4.15

3.52

3.46

Stage 3 coverage ratio (%)

42.3

45.9

39.5

42.5

Stage 3 coverage ratio with total provisions (%)

56.1

60.8

54.6

58.5

Problematic assets coverage (%)

53.0

57.5

52.0

55.8

Liquidity management (%)

Loan-to-deposit ratio

91.9

90.7

95.0

94.3

LCR

250

238

220

205

NSFR

(2)

--

--

141

144

Capital management

Risk weighted assets (RWA) (€ millio ns)

--

--

77,659

79,285

2.1

Common Equity Tier 1 (%)

--

--

12.78

13.30

Common Equity Tier 1 fully-loaded (%)

--

--

12.78

13.30

Tier 1 (%)

--

--

15.04

15.51

Total capital ratio (%)

--

--

18.09

18.42

M REL (% RWA)

--

--

27.57

29.34

M REL (% LRE)

--

--

8.65

9.93

Leverage ratio (%)

--

--

4.72

5.25

Share data (period end)

Number of shareholders

--

--

222,228

205,510

Number of outstanding shares (millio ns)

(3)

--

--

5,582

5,414

Share price (€)

(4)

--

--

0.989

1.455

M arket capitalisation (€ millio ns)

--

--

5,520

7,877

Earnings per share (EP S) (€)

(5)

--

--

0.13

0.24

Book value per share (€)

--

--

2.46

2.73

TBV per share (€)

--

--

2.02

2.27

Price / Tangible book value (times)

--

--

0.49

0.64

Price / Earnings ratio (P/E) (times)

--

--

7.44

5.95

Other data

Branches

1,237

1,203

1,457

1,414

Employees

13,495

13,899

19,151

19,213

  1. The NPA coverage ratio is based on total provisions.
  2. Taking into account the best estimate as at the date of publication of this report.
  3. Total number of shares minus final treasury stock position (including shares in the buyback programme, where applicable).
  4. Historical values not adjusted.
  5. Net profit adjusted by the Additional Tier 1 coupons recorded under shareholders' equity. Calculated based on the average number of shares (average number of total shares minus average treasury stock and average number of shares subject to a buyback programme, where applicable).
  6. The cumulative EUR/GBP exchange rate as at 31.03.2024 applied throughout the report is 0.8562 in the case of the income statement and 0.8551 in the case of the balance sheet.
  7. Throughout this document, YoY changes in relation to the income statement refer to the cumulative three-month period up to the end of March 2024 versus the same cumulative three- month period of 2023.

First quarter of 2024

5

3. Performance review

Macroeconomic environment

Global economic, political and financial context

In Q1 2024, the economy continued to show resilience in the United States and fragility in the Eurozone, although there were some signs of improvement. In the United States, some indicators pointed towards a slight slowdown following the rapid growth recorded in Q4 2023 (3.2% QoQ, annualised). In any event, the Conference Board's leading indicator stopped pointing towards an upcoming economic recession for the first time since July 2022. On the other hand, the Houses reached an agreement to avoid a government shutdown in March.

In the Eurozone, meanwhile, GDP became stagnant in Q4 2023 and growth in the region as a whole in 2023 was subdued (0.4%). In Q1 2024, economic sentiment indicators pointed towards a slight improvement in economic activity, although it remained fragile. In terms of countries, those in the periphery stood out in a positive light, supported by the surge of tourism, the reduced exposure to Russian gas and the disbursement of NGEU funds. Germany stood out in a negative light. The job market in the Eurozone continued to show considerable resilience, despite fragile economic activity. The unemployment rate remained at record-low levels (6.5%).

As for prices, there were surprises to the upside in some of the figures recorded during the first quarter, particularly in the United States, and there was heightened concern surrounding the high level of inertia shown by services inflation. In any event, in the Eurozone, inflation eased off, standing at 2.4% in March, close to the ECB's target (2.0%). Services inflation remained at 4.0%. In the United States, headline inflation rose to 3.5% in March, while core inflation stood at 3.8%.

Lastly, geopolitics continued to attract attention. The conflict in the Middle East continued to disrupt shipping in the Red Sea, diverting vessels around Africa, with the ensuing rise in costs. In addition, Europe remained focused on building up its defence strategy to be ready for any negative developments in relation to Russia. As for trade tensions, strategies for de-risking from China continued to gain traction, which is a noteworthy development, particularly given that this is an electoral year in the United States. On that topic, Biden and Trump were confirmed as candidates for the US presidential elections, which will be held in November. Trump threatened to introduce a tariff of 60% on all products from China and of 10% on imports from all other countries.

Economic situation in Spain

Economic activity remained positive and Q1 2024 data pointed towards potentially stronger economic momentum than in Q4 2023, when GDP recorded quarterly growth of 0.6%. Business confidence indicators improved, and here it is particularly worth mentioning the recovery of the manufacturing industry, which returned to expansionary territory for the first time since March 2023, in a context in which industrial output also improved during the quarter. There was also an upswing in job creation, while indicators

such as international tourist arrivals continued to be positive. In terms of prices, inflation barely slowed in the quarter and reached 3.3% in March (Feb: 2.9%), largely influenced by the recovery of VAT on electricity and the increased contribution of tourist services.

In terms of economic policy, the government announced that it would be mobilising 40,000 million euros in connection with the Recovery Plan addendum. These funds will be channelled by the ICO through a number of financial instruments, including brokered loans with financial institutions, direct loans, and equity investments in certain companies.

Economic situation in the United Kingdom

The UK economy showed signs of recovery in Q1 2024. After declining in Q4 2023, preliminary data pointed towards recovery in Q1 2024, reversing the trend followed in the second half of 2023. Confidence indicators improved, both in the services sector and in the manufacturing industry, while household consumption started the year strong. In the political arena, elections are expected to be called towards the end of the year, while the government announced a mildly expansionary budget for the tax year.

As for inflation, prices corrected considerably but are still above the 2% target. Core inflation slowed to 4.5% in February, while headline inflation was 3.4%. The moderation of energy and food prices drove this momentum.

In the job market, the unemployment rate stood at 3.9% in January and job vacancies continued to return to normal levels. In terms of salaries, the most recent data suggest that the pressure is easing.

In the real estate market, prices continued to rise in the first quarter of 2024. There was also an improvement in the volume of approved mortgages for house purchase, in keeping with the reduction of market interest rates. Even so, transaction levels remained below the historical average.

Economic situation in Mexico

Growth momentum eased off after performing well throughout 2023. In any event, investment continued to grow at a high pace, driven by expenditure on public works towards the end of López Obrador's term in office and by the positive effects of nearshoring. As for inflation, core inflation continued to drop, although the services component showed considerable inertia and remained at particularly high levels. Against this backdrop, Banxico began its cycle of interest rate cuts, announcing a first cut of 25bps to 11.00%. In any event, it remained firm in its data-dependent stance, implying that it will not necessarily introduce further rate cuts in each of its meetings. In the currency market, the peso rallied against the US dollar, reaching its strongest level since 2015.

Fixed-income markets

During the last quarter, the ECB kept its deposit facility rate at 4.00% (an all-time high). The majority of the central bank's members suggested that the first interest rate cut

First quarter of 2024

6

could take place in June. The ECB also unveiled its operational framework review. The minimum reserve requirement will remain at 1% and the interest rate corridor will be narrowed to reduce the stigma around financing operations and to attempt to revitalise the interbank market. The ECB will also provide liquidity to credit institutions through short- and long-term credit operations and through the purchase of bonds.

The Federal Reserve kept US rates unchanged in the range of 5.25-5.50% during the quarter. In its March meeting, it was considered that interest rates could be cut even though inflation was somewhat higher than anticipated. Members of the Fed continued to forecast cuts of 75bps throughout 2024, which would leave rates at 4.50%-4.75% at the end of the year. However, the long-term rate was revised upwards to 2.6% (from 2.5% previously). Similarly, in subsequent statements, members of the Fed reiterated that a restrictive monetary policy is necessary to reach the inflation target and the majority believe that a cautious approach is needed.

The BoE kept its base rate at 5.25% in its March meeting, citing the improvement of prices as well as the deterioration of activity, although it still showed concern over wage growth. The central bank judged that monetary policy will need to remain restrictive for sufficiently long to return inflation to the 2% target sustainably, although it emphasised that monetary policy will remain tight, even if the base rate is reduced, this being the first time the possibility of rate cuts had been mentioned.

Long-term government bond yields rebounded on both sides of the Atlantic after the decline observed in the previous quarter. This increase was influenced by the rebound of oil prices and by the fact that financial markets adjusted their expectations, delaying the interest rate cuts by the Fed and the ECB, in a context in which inflation data surprised to the upside and in which the US continued to show a resilient economy.

Risk premiums in the periphery performed well and spreads in Italy and Spain fell to their lowest since 2022, against a backdrop of high demand for government bonds in the primary market given the scenario of interest rate cuts. This good performance took place despite public deficit surprising to the downside in Italy, reaching 7.2% of GDP in 2023, due to intensive use of tax incentives for green home renovations (superbonus).

Concerns around US regional banks and other banks with commercial real estate exposures resurfaced but the markets remained unscathed.

Equity markets

Equity indices in the main developed economies performed well throughout the quarter, underpinned by a scenario of official interest rate cuts introduced by central banks and in the face of a resilient economy in the US. The S&P 500, for instance, gained 12.9% in euros (10.2% in dollars). Good performance was also seen in Europe, with the Euro Stoxx 50 increasing by 12.4% in euros. Italy did particularly well, as its main stock market index rebounded by 14.5%. In the United Kingdom, equity indices also rebounded, although less sharply than in the Eurozone and the United States.

GDP - US vs. Euro area (year-on-year change, %)

Official interest rate - US vs. Euro area (%)

US GDP

Euro area GDP

US official interest rate

Euro area official interest rate

15.0

5.5

10.0

4.5

5.0

3.5

0.0

2.5

-5.0

1.5

-10.0

0.5

-15.0

3/19

3/21

-0.5

3/15

3/16

3/17

3/18

3/20

3/22

3/23

3/24

3/15

3/16

3/17

3/18

3/19

3/20

3/21

3/22

3/23

3/24

Source: Bloomberg

Exchange rates: Parity vs. euro

Fx

31.03.23

30.06.23

30.09.23

31.12.23

31.03.24

USD

1.0875

1.0866

1.0594

1.1050

1.0811

GBP

0.8792

0.8583

0.8646

0.8691

0.8551

MXN

19.6392

18.5614

18.5030

18.7231

17.9179

Source: Bank of Spain

First quarter of 2024

7

Income statement

Summary of results:

Banco Sabadell Group earned profit of 308 million euros as at the end of March 2024, representing year-on-year growth of 50.4%, of which 263 million euros were recorded ex-TSB and 46 million euros correspond to TSB. The Group's ROTE increased by 462bps compared to the end of the first quarter of the previous year, reaching 12.2%.

It is worth noting that the first quarter of the year was negatively impacted by the recognition of the banking tax, which amounted to -192 million euros.

This Group profit was mainly driven by the good performance of core results (net interest income + fees and

Cumulative income statement

(€ millions)

1Q23

Net interest income

797

Net fees and commissions

322

Core revenues

1,119

Net trading income and exchange differences

-6

Income from equity method and dividends

31

Other operating income/expense

-161

Gross operating income

983

Operating expenses

-405

Personnel expenses

-264

Other general expenses

-141

Amortisation & depreciation

-100

Total costs

-504

Pre-provisions income

479

Provisions for NPLs

-200

Provisions for other financial assets

-11

Other impairments

-6

Gains on sale of assets and other results

-3

Profit before tax

259

Income tax

-108

Minority interest

0

Attributable net profit

151

Memorandum item:

Core results (NII + net fees and commissions - costs)

615

commissions - recurrent costs), which increased by 13.8% year-on-year due to the improvement of net interest income, mainly supported by higher interest rates. In the quarter, it grew by 2.6%.

This growth of net interest income allowed gross operating income to increase, with the improvement of the Group's cost-to-income ratio including amortisation, which reached 47.6% compared to 53.6% as at the end of the previous March and compared to 51.4% in the previous quarter, which included TSB's non-recurrent costs.

Excl. TSB

Total group

YoY (%)

1Q24

YoY (%)

1Q23

1Q24

YoY (%) at constant

FX

953

19.6

1,100

1,231

11.9

10.6

310

-3.9

350

340

-3.1

-3.4

1,263

12.8

1,450

1,571

8.3

7.2

24

--

1

35

--

--

48

52.0

31

48

52.0

52.0

-199

23.3

-172

-209

21.8

21.1

1,136

15.5

1,311

1,444

10.2

9.0

-433

7.0

-593

-627

5.8

4.5

-282

6.6

-350

-373

6.6

5.6

-152

7.6

-243

-254

4.5

2.9

-95

-4.9

-138

-124

-9.5

-10.5

-528

4.6

-730

-751

2.9

1.6

608

26.9

581

693

19.3

18.3

-176

-11.9

-217

-194

-10.4

-10.8

-3

-72.5

-14

-5

-60.3

-60.5

-9

61.5

-6

-9

61.5

61.5

0

-100.0

-3

0

-100.0

-100.0

420

61.8

342

484

41.6

39.9

-157

45.6

-137

-176

28.4

27.4

0

--

0

0

--

--

263

73.3

205

308

50.4

48.3

735

19.6

720

820

13.8

13.0

First quarter of 2024

8

Quarterly income statement

Excl. T SB

T o t al g ro up

Qo Q ( %)

(€ millions)

1Q2 3

2 Q2 3

3 Q2 3

4 Q2 3

1Q2 4

Qo Q ( %)

1Q2 3

2 Q2 3

3 Q2 3

4 Q2 3

1Q2 4

Qo Q ( %)

at co nst ant

F X

Net interest income

797

870

944

938

953

1.6

1,100

1,170

1,242

1,211

1,231

1.7

1.1

Net fees and commissions

322

317

317

306

310

1.3

350

347

350

339

340

0.2

-0.2

Core revenues

1,119

1,187

1,261

1,244

1,263

1.5

1,450

1,517

1,592

1,550

1,571

1.3

0.8

Net trading income and exchange differences

-6

32

24

2

24

--

1

30

32

5

35

--

--

Income from equity method and dividends

31

40

23

36

48

32.8

31

40

23

36

48

32.8

32.8

Other operating income/expense

-161

-80

0

-183

-199

8.6

-172

-89

-9

-177

-209

18.4

17.8

Gross operating income

983

1,180

1,309

1,099

1,136

3.3

1,311

1,498

1,638

1,414

1,444

2.1

1.5

Operating expenses

-405

-412

-435

-442

-433

-2.1

-593

-611

-634

-658

-627

-4.7

-5.4

Personnel expenses

-264

-274

-282

-283

-282

-0.4

-350

-367

-376

-401

-373

-7.0

-7.6

Other general expenses

-141

-138

-153

-160

-152

-5.2

-243

-244

-258

-257

-254

-1.2

-2.0

Amortisation & depreciation

-100

-98

-89

-93

-95

1.9

-138

-136

-119

-126

-124

-1.5

-2.0

Total costs

-504

-510

-524

-535

-528

-1.4

-730

-748

-753

-784

-751

-4.2

-4.9

M emorandum item:

Recurrent costs

-504

-510

-524

-535

-528

-1.4

-730

-748

-753

-751

-751

0.0

-0.7

Non-recurrent costs

0

0

0

0

0

--

0

0

0

-33

0

-100.0

-100.0

Pre-provisions income

479

670

785

564

608

7.8

581

750

885

630

693

10.0

9.5

Provisions for NPLs

-200

-201

-168

-165

-176

6.3

-217

-216

-189

-191

-194

1.5

1.2

Provisions for other financial assets

-11

-4

-5

0

-3

--

-14

7

-6

-5

-5

13.2

11.4

Other impairments

-6

-23

-19

-32

-9

-71.5

-6

-23

-19

-32

-9

-71.5

-71.5

Gains on sale of assets and other results

-3

-11

-17

-15

0

-100.0

-3

-11

-17

-15

0

-100.0

-100.0

Profit before tax

259

430

576

351

420

19.5

342

507

654

387

484

25.1

24.5

Income tax

-108

-122

-167

-80

-157

95.8

-137

-148

-190

-82

-176

114.2

113.0

M inority interest

0

1

0

1

0

-100.0

0

1

0

1

0

-100.0

-100.0

Attributable net profit

151

307

409

270

263

-2.8

205

359

464

304

308

1.3

0.8

M emorandum item:

0

0

0

0

0

Core results (NII +net fees and commissions - costs)

(1)

615

677

737

708

735

3.8

720

769

839

799

820

2.6

2.2

  1. Calculation taking into account recurrent costs.

Net interest income:

Net interest income amounted to 1,231 million euros as at the end of March 2024, growing by 11.9% year-on-year and by 1.7% in the quarter.

The year-on-year growth was mainly driven by higher loan yields and higher earnings on the fixed-income portfolio, underpinned by higher interest rates, all of which offset the higher costs of both deposits and wholesale funding, as well as reduced volumes. In the quarter, net interest income was driven by a higher customer margin, where credit yield growth was underpinned by portfolio repricing, while the cost of funds grew at a slower pace.

Evolution of net interest income

Total group (€ millions)

Customer margin and net interest margin:

The customer margin improved by 36bps compared to the end of the first quarter of 2023 and by 10bps compared to the previous quarter, standing at 3.09%, driven by the increase in loan yields, which offset the higher cost of deposits.

Similarly, the net interest margin as a percentage of average total assets rose by 29bps in the year and by 7bps in the quarter, reaching 2.08%.

Sabadell ex - TSB (€ millions)

Change YoY:

+19.6%

Change QoQ:

+1.6%

1,100

1,170

1,242

1,211

1,231

938

953

1Q 23

2Q 23

3Q 23

4Q 23

1Q 24

4Q 23

1Q 24

TSB (€ millions)

Change YoY:

Total group

Constant FX

-8.1%

Change YoY:

+11.9%

+10.6%

-10.9% Constant FX

Change QoQ:

+1.7%

+1.1%

Change QoQ:

273

278

+1.8%

+0.3%

Constant FX

4Q 23

1Q 24

First quarter of 2024

9

Quarterly evolution of net interest income (€ million)

20

3

-6

3

1,211

1,231

4Q23

Customer NII

ALCO, wholesale funding and

Calendar days

Others

1Q24

liquidity

Net interest income, Group (%)

Net interest income, ex-TSB(%)

4.01%

4.20%

4.33%

4.20%

4.38%

4.49%

3.67%

3.81%

3.29%

3.33%

2.99%

2.99%

3.09%

3.05%

3.20%

3.23%

3.32%

2.89%

2.73%

2.80%

1.79%

1.88%

2.02%

2.01%

2.08%

1.96%

2.00%

2.05%

1.65%

1.77%

1.02%

1.21%

1.24%

1.00%

1.15%

1.17%

0.78%

0.53%

0.76%

0.56%

1Q23

2Q23

3Q23

4Q23

1Q24

1Q23

2Q23

3Q23

4Q23

1Q24

Net interest income, TSB (%)

3.52%

3.73%

3.91%

3.33%

3.18%

Customer spread

Net interest margin as % of ATA

Customer loan yield

Cost of customer funds

2.55%

2.50%

2.43%

2.35%

2.44%

2.20%

2.15%

2.10%

1.96%

2.03%

1.38%

1.47%

1.09%

0.83%

0.63%

1Q23

2Q23

3Q23

4Q23

1Q24

First quarter of 2024

10

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Banco de Sabadell SA published this content on 25 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 April 2024 06:58:14 UTC.