Latest news with #ROTE
Reuters
7 days ago
- Business
- Reuters
Sabadell sets 2027 net profit goal above 1.6 bln euros, not counting TSB
MADRID, July 24 (Reuters) - Spain's Sabadell ( opens new tab aims to post net profit above 1.6 billion euros ($1.88 billion) in 2027, excluding results from its British unit TSB, which it has agreed to sell to Santander ( opens new tab pending shareholders' nod, the bank said on Thursday. Sabadell, which ended 2024 with a net profit of 1.57 billion euros without TSB, is seeking to fend off a 13 billion-euro takeover bid by larger rival BBVA ( opens new tab. The country's fourth-largest lender in terms of market value said it expects to lift its return on tangible equity (ROTE) ratio, a measure of profitability, to 16% in 2027 from 14.6% in 2024 as part of a three-year strategy. Without its UK arm, Sabadell aims to boost earnings growth in Spain, where the economy is projected to grow 2.4% in 2025, outpacing the euro zone average. As part of efforts to strengthen its case for remaining independent, Sabadell announced a 6.3 billion-euro shareholder payout for the 2025-2027 period. Investors will be asked to approve an extraordinary 2.5 billion-euro cash dividend, funded by proceeds from the divestment, which analysts see as a defensive move aimed at warding off BBVA. For 2025, shareholder remuneration is expected to rise to 3.8 billion euros, including a 1.3 billion-euro ordinary dividend. The bank is planning to increase payouts by at least an additional 2.5 billion euros in 2026 and 2027. In the second quarter, the lender's net profit rose 0.6% to 486 million euros, including TSB, as the sale is not expected to be closed until the first quarter of 2026. The results topped analysts' forecast of 444 million euros, helped by lower provisions. ($1 = 0.8812 euros)
Reuters
7 days ago
- Business
- Reuters
Sabadell targets profitability ratio of 16% in 2027 without TSB
MADRID, July 24 (Reuters) - Spain's Sabadell ( opens new tab said on Thursday it expected to lift its return on tangible equity (ROTE) ratio, a measure of profitability, to 16% in 2027 from a 14.6% in 2024 as part of its new three-year strategy. Sabadell, which is trying to fend off a 13 billion euros ($15.31 billion) takeover bid by larger rival BBVA ( opens new tab, said it aimed to boost profits thanks to cost controls in Spain and a 5% accumulated annual rise in overall loans over the period. This would allow it to book a net profit higher than 1.6 billion euros in 2027. Its 2025-2027 strategy comes after agreeing to sell its British unit TSB to Santander ( opens new tab for 2.65 billion pounds, which still requires the approval by Sabadell shareholders. The bank will also ask its shareholders to vote on a proposed extraordinary 2.5 billion euro cash dividend financed with the proceeds of the divestment. Analysts see Sabadell's decision to dispose of TSB as defensive move to ward off BBVA. In the second quarter, Sabadell said its net profit rose 0.6% to 486 million euros thanks to lower provisions, above analysts' forecasts of 444 million euros. ($1 = 0.8812 euros) ($1 = 0.7365 pounds)
Yahoo
23-07-2025
- Business
- Yahoo
‘Best year ever': UniCredit delivers record earnings, raises 2025 outlook
UniCredit S.p.A. has kicked off the European banking earnings season with a stellar performance, surpassing analyst expectations and raising its full-year guidance, buoyed by robust core revenues and pristine asset quality. The Milan-based lender posted a record net profit of €3.3 billion in the second quarter of 2025, lifting its first-half earnings to €6.1 billion. Earnings per share surged to €2.16, up 34% year-on-year and well ahead of the €1.55 forecast. Core revenue rose 1.3% annually to €5.9 billion in the quarter. According to the bank, these results are transforming what was meant to be a "transitional year into the best year ever." 'UniCredit has achieved outstanding financial results, with a record-breaking Q2 contributing to the best H1 in the bank's history,' said Chief Executive Officer Andrea Orcel. 'We are protected for the future as our low cost of risk, strong asset quality and unmatched overlays safeguard against potential macroeconomic downturns,' he added. Upgraded outlook and investor payouts In a further sign of confidence, UniCredit raised its full-year 2025 net profit guidance to approximately €10.5 billion, up from a prior target of more than €9.3 billion. The bank also lifted its net revenue outlook to above €23.5 billion and upgraded its return on tangible equity (ROTE) forecast to around 20%, from previously over 17%. Longer-term projections were also improved, with 2027 earnings now expected to reach at least €11 billion, up from circa €10 billion. The bank raised its distribution guidance to equal to or above €9.5 billion for 2025, including a cash dividend of at least €4.75 billion. An interim cash dividend of about €2.1 billion is envisaged, representing a 46% increase year-on-year, with the ex-dividend date set for 24 November. In addition, a €3.6 billion share buy-back programme is slated to commence following the second-quarter results. Goldman Sachs analyst Chris Hallam praised UniCredit's 'beat and raise' performance, highlighting the bank's continued earnings momentum and shareholder-friendly capital distribution. Related Asian markets rise, Toyota up by 14% after US tariff deal Billion euro deal: Sanofi buys UK biotech company to expand respiratory vaccine portfolio Balance sheet resilience and strategic clarity UniCredit's gross non-performing exposure (NPE) ratio remained stable at 2.6%, while the cost of risk stayed at a low nine basis points in the first half—underscoring the group's asset quality and prudent provisioning. Separately, UniCredit withdrew its offer for Banco BPM, citing unresolved conditions linked to Italy's golden power regulations. Orcel noted that the ongoing uncertainty surrounding the authorisation process did not benefit shareholders or the bank, prompting the decision to pull the deal. While progress had been made with the Italian Administrative Tribunal (TAR), the European Commission's Directorate-General for Competition and the Italian government, the bank concluded that the timeline for resolving the regulatory hurdle exceeded the offer window. Market reaction and sector momentum Investors responded positively to the results and upgraded guidance. UniCredit shares rallied 2.6% in early Wednesday trading to €59.60, bringing year-to-date gains to 54%. The stock surged 56% in 2024 and 85% in 2023, making it one of Europe's best-performing financials. The Euro STOXX Banks index advanced 1.4%, outperforming the broader Euro STOXX 600, which rose 0.9%. Peers including Deutsche Bank, Banco Bilbao Vizcaya and Nordea Bank each gained 1.5%, while BNP Paribas rose 1.1% ahead of its second-quarter earnings release on Thursday.
