The bank’s bottom line benefited significantly from the TSB divestment, which concluded on May 1. While the headline figure reflects this one-time boost, Sabadell provided a pro forma comparison to clarify its core performance. On a like-for-like basis, the bank’s recurrent net profit surged 48% to €608 million. Alongside the earnings report, management announced a €331 million share buyback program scheduled to commence next week.

Despite the profit growth, the bank faces a tightening environment as lower interest rates compress lending margins. Net interest income, a critical measure of earnings from loans minus deposit costs, slipped 0.4% year-on-year to €902 million. However, this result outperformed analyst expectations of €895 million and showed a 3.4% recovery compared to the previous quarter. With geopolitical tensions keeping market rates volatile, the bank remains focused on navigating this shifting interest rate landscape.