Banco Sabadell is the third most important bank in Spain, and has a market share of about 5.3%
The “sabadell cfo” is a bank that has maintained its strategic objectives despite the impact of the war. The bank’s CEO, Josep Sardans, said that they will continue to serve their clients and maintain their operations during these difficult times.
Despite the consequences of the conflict, Banco Sabadell maintains its strategic goals.
Sabadell Bank has refused to revise its 2023 strategy plan. It is premature, according to the company, to conduct a downward analysis of macroeconomic situations. “As far as I know, César (González Bueno, the CEO) has not told me that the plan is going to change,” said Josep Oliu, the Catalan bank’s non-executive president, at a press conference held in Alicante, the entity’s headquarters, on the occasion of the ordinary annual meeting of shareholders, which will be held on Thursday, March 24.
Oliu is certain that it will achieve the 6% profitability (ROTE) target set in its strategic plan, which previously factored in external shocks in its calculations. The board of directors has adopted this stance because it believes that, although the Russian conflict in Ukraine may hinder development, it will not impede recovery. They also rule out stagflation, a topic that has been raised by a number of international organizations, including the European Central Bank (ECB). “The recovery will continue, even if it is slower than projected due to the effects of the conflict,” said Oliu, whose remarks were echoed by the CEO, César González-Bueno.
Although they do not anticipate any concern in the long run, they do see instabilities in the business fabric in the near term owing to continued inflation. “There are good tailwinds, and inflation will lead to a rate rise (…), but there are also clouds,” says Oliu, who sees the prospect of a small but considerable increase in delinquency rates. In any event, he believes the bank will be able to keep any risk under control.
The company announced its new Strategic plan for the year 2021-2023 to the market in May of last year, a new single roadmap whose key lines revealed a reversal in its business model and which it thinks will lead to an ROTE of over 6% in 2023. At the conclusion of the three-year term, this would result in a profit of almost 670 million euros. The company started with a profit of 2 million euros and an ROTE of 0.02 percent by the end of 2020.
“TSB has awoken, and there is now even demand in the market.”
In response to rumors of a prospective merger, both bankers have said that their goal is to continue operating independently and consolidate a strong position in the home market. They’ve positioned themselves in a similar manner on TSB. They acknowledge that, after the crisis created by migration issues, they had doubts about Banco Sabadell’s ability to restore the British subsidiary. Finally awoke, and is now causing desires. “The issues are resolved,” Oliu said.
“Why would the organization lose one of its most successful businesses?” Oliu wondered. As he said, the grounds for the bank’s investment are still valid, and there is no reason to believe it should not be included in the group. “TSB seemed to be a highly risky enterprise; the market questioned Sabadell’s ability to boost migration. We, on the other hand, bow our knees like the Ukrainians. “The English are on their way to award us a medal,” Oliu said.
