Slides
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July 24th, 2025 Capital Markets Day A domestic Spanish bank, where focused execution drives growth, capital generation and attractive shareholder remuneration
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2 Strategy 2025-2027 César González-Bueno, CEO Financials Sergio Palavecino, CFO Q&A Capital Markets Day Agenda
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3 César González-Bueno CEO Strategy 2025-2027
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4 Over the last 4 years, Sabadell has improved its profitability and accelerated capital generation 1. Excluding €109M in one-offs in 2024 (14.9% reported); 2. Reported RoTE: 15.3%; 3. Organic capital generation pre dividend accrual. Calculated as average capital available for distribution to shareholders divided by RWAs at the end of the period Financial performance will keep improving. 2025 is progressing in the right direction Organic capital generation(3) (Group)Net Profit & RoTE Capital generationProfitability RoTE keeps growing above cost of capital Strong capacity to generate capital to remunerate our shareholders 2021 2022 2023 2024 37bps 90bps 152bps 210bps c.175bps Recurrent annual average 2025-27e +additional one-off 400bps in 2026 after the sale of TSB €1.6bn€0.2bn >€1.6bn 14.0%(1)0.0% 16% 14.4%(2) 1H25 Net Profit (ex-TSB) RoTE (Group) 2020 2024 2027e
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5 Execution Shareholder remuneration Four key elements underpin Sabadell’s investment case Growth Spain • Domestic bank in Spain, one of the fastest growing economies in Europe • Solid track record of beating targets since 2021 • Orientation to growth while preserving asset quality. Current size leaves headroom for prudent market-share gains • Transformation well underway, with the full impact gradually flowing through to P&L and balance sheet • Strong capacity to generate capital (while growing), enabling attractive shareholder remuneration
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6 Spain Growth Execution Shareholder remuneration 1 2 3 4 Strategy 2025-2027
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7 Strong tailwinds in the Spanish banking sector support the 2025-2027 strategy GDP outperforming Eurozone, while inflation broadly in line Spain: positive outlook Eurozone 2.0% 1.1% GDP(1) (annual avg. 2025-27e) Improving labour dynamics 2005 2008 2012 26.1% 2016 2020 Unemployment rate (period avg., % of active population)(1) Private debt at healthy levels Private debt / GDP (%) (2) >4% Lending to Households CAGR 2024-27e (stock) c.4% Lending to Corporates CAGR 2024-27e (stock) c.4% Customer Deposits CAGR 2024-27e Lowest unemployment rate since 2008 Dec’05 Dec’08 Dec’12 Dec’16 177% Dec’20 Lowest level of the last 20 years HICP(1) (annual avg. 2025-27e) 2.1% 2.0% Eurozone 1. Forecast source: IMF; 2. Forecast source: Sabadell Research Department forecasts Spanish GDP above Eurozone’s 127% Dec’25-27eDec’24 11.3% 2025-27e2024 15.5% 224% Market volumes outlook for Spain(2) ECB interest rates at 2% by 2027e (EUR deposit facility rate)
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8 Spain Growth Preparation for growth Outlook Enablers Execution Shareholder remuneration 1 2 3 4 2.1 2.2 2.3 Strategy 2025-2027
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9 Three areas drive the transformation Pricing Risk Processes & journeys Unrelenting focus on execution in three areas, impacting customers and profitability Internal enablers Metrics & incentives Technology Team + • Analytical price segmentation based on customer risk profile and price sensitivity (e.g. mortgages, consumer loans) • In-depth transformation of risk models and processes across all credit portfolios (e.g. granting models, pre-approved loans, PD threshold management) • Increased specialisation by sector (e.g. risk analysts) • In-depth re-engineering of customer journeys (customer experience + conversion rates) • Relationship model: specialised Relationship Managers for mortgages, insurance, savings & investments; reduced thresholds and improved value proposition for Private Banking and SMEs • Leapfrogging in digital capabilities Case studies shown in next slides More detail in “Enablers” chapter PD = Probability of Default
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10 Risk (1/2) ProcessesPricing Micro-enterprises (unsecured): management of PDs improves quality of new lending and, over time, of the stock PD = Probability of Default; Note: micro-enterprises <2M€ turnover 3% Disproportionate contribution of micro-enterprises (unsecured) to Sabadell ex-TSB CoR 2027e 3.6% 1.5% 1.4% Jan’23 PD new unsecured loans (monthly average) Ongoing management actions in origination gradually improving CoR of the whole portfolio Objective: average PD: 1.5% Dec’24% of new lending with PD<1% 46% 51% 59% • Clean-up of the lending portfolio (legacy) • Revamp of credit-granting models • Management of new lending PDs % Loan book (ex-TSB) CoR & contribution (ex-TSB) 2023 3% 283bps (22%) 144bps (14%) Management actions started in 2023 Asset quality improvements Jun’25 Case study | Risk transformation
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11 Case study | Risk transformation PDs of new lending are consistently decreasing across all portfolios Evolution of new lending PDs Consumer loans C&IB(1) Self-employed unsecured SMEs (>2M€) Micro-enterprises (<2M€) unsecured PD = Probability of Default; 1. Spain Better origination progressively improves stock quality (CoR), according to the duration of each portfolio Mortgages retail & self-employed 1H23 2H23 1H24 2H24 1H25 -60% 1H23 2H23 1H24 2H24 1H25 -57% 1H23 2H23 1H24 2H24 1H25 -48% 1H23 2H23 1H24 2H24 1H25 -36% Risk (2/2) ProcessesPricing 1H23 2H23 1H24 2H24 1H25 -68% 1H23 2H23 1H24 2H24 1H25 -43%
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12 2021 2024 New lending per risk profile (best) (worst) CoR stock Note: case study based on consumer loans granted to bank customers; 1. Includes consumer loans granted to bank customers, PoS financing and cards Better price segmentation = more volume and better risk profile Jump in profitability (lower new lending spread more than offset by lower CoR stock) New lending spread Risk Processes Pricing Consumer loans: better price segmentation (risk and price sensitivity) improves the business Case study | Pricing transformation New lending volume(1) €2.5bn c.5.0% c.240bps €1.5bn c.6.5% c.640bps -400bpsx1.6 -150bps Customer risk profile
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13 Case study | Processes and journeys transformation SMEs: opportunity to grow an excellent franchise, reinforced by its recent transformation c. 50% SMEs Market penetration (1 in 2 SMEs in Spain are Sabadell customers) Incentives fully aligned with the strategy: growth + capital generation ~15 years Avg. length of customer relationship >140 years excelling at serving SMEs(1) PD = Probability of Default; 1. Companies with turnover €2M-€200M; 2. CIRBE market share (Central de Información de Riesgos del Banco de España). Latest data available: May 2025 Opportunity to continue growing within a well-known customer base Risks: strengthened risk management framework • New origination at lower PDs • More proactivity to grow with target customers (“pre-approved” risk appetite per customer) • Specialisation of risk analysts by sector Processes & journeys: improved proposition for customers • Lowered threshold to access premium relationship model (€10M → €2M) • Specialisation of Relationship Managers by sector • Digital catch-up (daily banking) Key levers Risk ProcessesPricing Transformation started in 2023 Detailed in “enablers” chapter c. 16% Share of Wallet(2) (x1.08 since Dec’23)
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14 The ongoing transformation journey is addressing all products and segments 4. Self-employed & businesses Transformation roadmap (Main products / segments) 1. Retail customers: Digital acquisition 2. Consumer loans Volumes: loan book 2021 20242022 2023 2026 Today 3. Mortgages 2. SMEs C&IB (phase 1) Fees & commissionsCustomers • Sequential & focused transformation • 3 drivers: risk, pricing and processes • Impacts gradually flowing through to the balance sheet and P&L 2025 2027 1. Private Banking C&IB (phase 2) 5. Payments: PoS Major transformation 4. Insurance Strategic agreement on hold due to BBVA’s takeover bid Retail Banking Business Banking C&IB Maturity 5. Payments: Cards 3. Self-employed: Digital acquisition Results driven by metrics / incentives + continuous evolution
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15 Spain Growth Preparation for growth Outlook Enablers Execution Shareholder remuneration 1 2 3 4 2.1 2.2 2.3 Strategy 2025-2027
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16 2021 2022 2023 2024 2027e Today, Sabadell is ready to accelerate growth… Volumes: loan book 2021 2024 2027e €1,347M €1,249M 97bps 2021 53bps 2024 c.40bps 2027e €110.9bn €113.5bn Note: Data ex-TSB +0.8% CAGR 21-24 # Retail customer acquisition Total CoR Fees & commissions Customers Mid-Single Digit CAGR 24-27e -2.5% CAGR 21-24 +4.6% YoY 1H25 A B C +5.7% YoY 1H25 Mid-Single Digit CAGR 24-27e …increasing the size of the franchise 1.7x +30% Digital Branch 37bps 1H25
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17 % of loan book (Jun.’25, ex-TSB) 1. Includes consumer loans granted to bank customers, PoS financing and cards; 2. Includes micro-enterprises with turnover <€2M. Excludes self-employed mortgages; 3 Includes the international business; 4. Excludes foreign branches & Mexico; 5. Performing loans market share 2024 in Spain 2025-27e Loan book growth pre transformation With most of the transformation journey at a mature stage, current volume growth will accelerate in 2025-2027e Volumes: loan book Fees & commissionsCustomers 2021-2024 A x% Consumer loans(1) Mortgages SMEs Self-employed & micro-enterprises(2) C&IB 4% Above market In line with market Well above market +3.2% YoY 1H25 +5.7% YoY 1H25 +20.1% YoY 1H25 0% CAGR 2020-23 +c.6% CAGR 2020-22 +c.1%(4) YoY 2020-21 +3% YoY 2023-24 +c.17% CAGR 2022-24 +3% YoY 2023-24 +c.12% (4) CAGR 2021-24 33% 23% 7% 21%(3) -c.3% CAGR 2020-23 Credit market share in Spain expected to grow 25-30bps, from current 8.0%(5) 2022 2023 2023 2021 2025 Maturity of transformation Loan book growth Loan book growth post transformation Ready to grow
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18 90bps CoR reduction 88bps <0bps 97bps 53bps c.40bps 2021 2027e 99bps c.55bps c.20bps18bps Alongside volume growth, asset quality has improved significantly and is expected to continue doing so 1. Excludes PoS financing business and cards; 2. Excludes foreign branches & Mexico; 3. Includes the businesses in the lines above plus Mexico, foreign branches, Public Sector and Institutional customers RaRoC New lending 2024 RaRoC Stock in 2024 30.8%(1) 19.1% 14.4% 19.6% 18.3% Consumer loans Mortgages Self-employed & micro-enterprises SMEs Corporates Spain(2) Main portfolios (Spain) Sabadell (ex-TSB)(3) > > > > > Volumes: loan book Fees & commissionsCustomers New lending profitability in 2024 is higher than stock’s A 23.1%(1) 16.0% 13.4% 18.9% 13.7% 67bps 1H25 <0bps 1H25 37bps 1H25 c.45bps74bps 25bps 1H25 2024
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19 Fees & commissions Fees & commissions growth is mainly supported by the transformation of the three key fee-generating businesses Fees & commissions (ex-TSB) AuMs = Assets under Management; GWP = Gross Written Premium; 1. Includes lending fees, guarantees commissions, sight deposits, foreign currency and exchange, payment orders and other fees & commissions; 2. Includes life and Property&Casualty (BSSG, ZDA and 3rd companies); 3. Customers with active PoS These businesses contribute c. 70 % of the 2024-27e increase Mid-Single Digit CAGR 2024-27e Mid-Single Digit CAGR 24-27e Private Banking AuMs High teens CAGR 24-27e GWP(2) c. 25% PoS customer penetration(3) 2027e vs. c.20% 2024 2021 2024 2027e €1,347M €1,249M Growth following higher levels of business activity Transformation programmes to boost growth Three key fee-generating businesses: savings & investments, insurance, payments “Linked” to transactionality and volumes(1) Volumes: loan bookCustomers B +4.8% YtD (June 2025) +13% YoY (1H25) 21.8% (June 2025) Agreement with Nexi (on hold due to BBVA’s takeover bid) Savings & investments Insurance Payments Partnership with Zurich + enhancement of value proposition AuMs growth leveraging on the new Private Banking model
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20 2021 2022 2023 2024 2025e 2026e 2027e Customers Digital acquisition will drive growth of customer acquisition in 2025-2027e Retail customer acquisition 58% 2024 34% 2023 Debit card usage Digital customers acquired have a positive trend in engagement Customers acquired during 2022-2024 already generate >12% of the 2024 gross margin New direct banking capabilities deployed Boost customer acquisition 2021-2024 2025-2027e • Adapted value proposition to “new customer habits” • Enhances scalability and efficiency • Customer base renewal • Accelerate digital customer- acquisition in line with market trend… • …while marginally increasing branch- based acquisition Fees & commissions Volumes: loan book Launch of Sabadell Online Account C Cumulative 2025-27e > +15% Digital: + c.20% Digital Branch 1.7x Cumulative 2022-24
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21 Spain Growth Preparation for growth Outlook Enablers Execution Shareholder remuneration 1 2 3 4 2.1 2.2 2.3 Strategy 2025-2027
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22 Performance metrics and incentives continuously updated to better align with strategic priorities Metrics & incentives Evolution of performance metrics & incentives Strategic priority 2021-2024 >2025 “Value” (€) Rankings among Sales Teams Today <2021 Profitability (efficient use of capital) Growth + capital generation Income Revenue Incentives based on achievement of individual targets Performance metrics (impacting incentives) RoTE (%) RaRoC (%) Revenue Costs Expected loss Cost of capital “Value” Ignores asset quality, costs and capital consumption + Adding RoTE incorporates asset quality, costs and capital consumption → challenge: what’s the right mix between income & profitability? + - - - = Incentives linked to “Value” are a key enabler to grow while maximising returns on capital
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23 Sabadell’s technology is ready to support business growth, following the transformation undertaken Business model that benefits from simplicity and partners Simple business model: avoiding multi-country complexity • Operating on a single IT platform after the sale of TSB Tier 1 partnerships for IT-intensive businesses e.g. IT cash-out increasingly oriented to growth projects Major transformation of IT infrastructure and backend concluded • Heavy investments in IT platform completed • Increased capacity to allocate investment to growth initiatives • Cost-effective infrastructure Efficient and scalable software delivery model • Cost-effective and growth-oriented to “change the bank” Key facts Sabadell’s evolution Technology
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24 Sabadell corporate culture enhances growth Commitment at highest-ever levels A focused & committed team that has continuously proved its outstanding capacity to execute 1. Overall result of the favourable ratings for the 6 questions that make up the Commitment indicator (on a scale of 1 to 5, assign a score of 4 or higher) Source: recurrent internal employee survey on workplace environment Engagement ratio(1) 69% Dec’23 78% Apr’25 Think Deliver Engage “Ser Sabadell” values Attracted and retained the best talent aligned with our challenges c.60% of recruitments in Data/IT related profiles during 2023-1Q25 period Our Team is our engine Team
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25 Spain Growth Execution Shareholder remuneration 1 2 3 4 Strategy 2025-2027
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26 Cost of Risk NII Jan Apr Jul Year end >11.5% >12% >13% 14.0%(1) We have gone above and beyond all our commitments since 2021 Jan Jul Year end >6% >7% 7.8% Jan Jul Oct Year end >9% >10.5% c.11.5% 11.5% RoTE: guidance vs result Guidance consistently revised upwards… and always beaten (real) (real) (real) Guidance 2022 Guidance 2024 1. Excluding €109M in one-offs in 2024 (14.9% reported) Feb Jul c.14% c.14.5% 2022 2023 2024 2025 Guidance 2025 Guidance 2023 2021 Year end 5% (real)
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27 Strategy 2025-2027 Spain Growth Execution Shareholder remuneration 1 2 3 4
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28 Shareholder remuneration 2025-27e(1) €M €6.3 bn(2) 2025 -27e Total cumulative shareholder remuneration 1. Shareholder remuneration via dividends and share buybacks in respect of relevant fiscal year; 2. Subject to delivering on the business plan. A portion of that amount may also be subject to shareholder and supervisory approval; 3. Subject to shareholders’ approval; 4. Closing price as of July 22nd of €2.913; 5. Fully-loaded, applying the regulatory output floor calendar Dividend payout 60% 2 interim Excess capital distribution >13% CET1(5) Through cash dividends or share buybacks Dividend policy 2025-2027e August December March/April (after AGM) 1 final dividend+ >40% Market cap (4) 2,500 Sabadell’s strong capacity to generate capital and our commitment to distribute excess capital above 13% CET1 enables attractive recurrent shareholder remuneration 1,300 2025e 2,500 Extraordinary dividend after TSB sale (3) 2026e 2027e Total shareholder distributions 2025-27e 6,300 3,800 Non-recurrent Recurrent (2) (2) (2) Cash dividend per share in 2025, 2026 and 2027 expected to be higher than 2024
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29 Sergio Palavecino CFO Financials
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30 Business and P&L Funding, capital and shareholder value creation 2027 guidance 1 2 3 Financials
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31 Conservative macroeconomic assumptions 1 Source: Sabadell Research Department forecasts. 2 Source: Bloomberg. Data as of 18th July 2025. Spain 2024 2027e1 IMF 2027e GDP In % 3.2 1.9 (Avg. 2025-27e) 2.0 (Avg. 2025-27e) HICP In % 2.9 2.3 (Avg. 2025-27e) 2.1 (Avg. 2025-27e) Unemployment rate In % 11.3 10.3 11.0 Private sector credit In % 1.1 ~4 (CAGR 2024-27e) n.a. Private sector deposits In % 4.9 ~4 (CAGR 2024-27e) n.a. Spanish GDP expected to continue growing above Eurozone average Unemployment rate at its lowest level since 2008 and expected to decline further Credit growth aligned with nominal GDP, avoiding private sector leverage Interest rates to normalise after a significant rise in 2022-2023 2024 2027e1 Forwards 2027e2 ECB Deposit Facility Avg. 3.7 1.9 2.0 12M Euribor Avg. 3.2 2.3 2.3 10 Yr EUR swap rate Avg 2.6 2.7 2.9 Interest rates expectations below implied forward rates
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32 Jun-25 YoY Spanish Banking system1 CAGR 2024-27e Targets vs market CAGR 2024-27e Mortgages €39bn +5.7% ~4% In line Consumer €5bn +20.1% ~6% Well above Corporates & SMEs €46bn +3.2% ~4% Above International (Ex-TSB) Constant FX €15bn +3.5% +11.4% n.a. Sustained growth Maintaining the loan growth trend with continued prudent risk selection Group total loan book (ex-TSB) Mid-Single Digit growth €119bn +5.7% Sabadell CAGR 2024-27e 1 Source: Sabadell Research Department forecasts. Performing loans evolution, ex-TSB Main segments Constant FX +6.7% On-track to deliver our plan
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33 Jun-25 YoY Spanish Banking system1 CAGR 2024-27e Targets CAGR 2024-27e On-Balance sheet €127bn +4.4% ~4% Mid-Single Digit Off-Balance sheet €49bn +13.2% n.a. High-Single Digit Customer funds to grow in line with loan volumes Customer funds evolution, ex-TSB 1 Source: Sabadell Research Department forecasts. Mid-Single Digit growth Group total Customer funds €177bn +6.7% Effectively managing costs of deposits through: o An on-balance sheet funding structure with nearly 80% in sight deposits o 1/3 of on-balance sheet funds remunerated o Expected pass-through at around 30% throughout the plan Higher growth in off-balance sheet products will boost fee income On-track to deliver our plan Sabadell CAGR 2024-27e
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34 A sustainable and more predictable RoTE of 16% in 2027 1 Excluding €109M in one-offs in 2024 (14.9% reported). Net Interest Income Fees & Commissions Total Cost of Risk Total costs 2027e Ex-TSB 16% ~40bps RoTE P&L targets ~€3.9bn ~3% CAGR 24-27e 2025e Group 14.5% ~35bps ~€4.9bn Flattish YoY 2024 Group 14.0%1 42bps €5.0bn 2024 Ex-TSB 54bps €1.2bn €3.9bn €2.2bn €1.4bn €3.1bn 2025e Ex-TSB ~40bps Mid-Single Digit YoY ~€3.6bn Low-Single Digit YoY Low-Single Digit YoY Mid-Single Digit CAGR 24-27e Improved
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35 2.6% 2.2% 3.3% c.3% 2019 2020 2021 2022 2023 2024 2027e 3.9 ~3.9-0.04 +0.1 -0.2 +0.2 2024 ex-TSB One-off 2024 Customer NII ALCO, liquidity and others Wholesale funding 2027e €1.8bn 1H2025 NII to reach 2024 levels, supported by higher volumes Guidance ~€3.9bn (2024 level) ~€4.9bn Mid-single digit growth in volumes offsets lower interest rates Lower wholesale funding costs to offset lower contribution from excess liquidity and ALCO Customer spread stabilising at around 3% Customer spread, ex-TSB In % ~€3.6bn (Ex-TSB) 2027e (Group) NII bridge 2024-27e €bn2025e (Ex-TSB) Customer margin -0.4 Volumes +0.5 On-track to deliver our plan ~3%
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36 -12% -8% -4% 0% 4% 8% 12% jun-21 jun-22 jun-23 jun-24 jun-25 NII +100pb NII-100pb A balance sheet structure with low sensitivity to interest rates supports a predictable NII outlook Balance sheet structure, ex-TSB ALCO (non-hedged) Floating rate loans Hedged ALCO Cash and others Fixed rate loans Equity and others Wholesale funding (non-hedged) Remunerated deposits Hedged wholesale funding Non-sensitive deposits 56% fixed rate 60% insensitive Others non-sensitive Financial institutions NII sensitivity to parallel shift of 100bps Ex-TSB. Annual variation in % in the next 12 months 60% of loans at fixed rates 1/3 of remunerated deposits exhibiting high betas pending repricing at lower levels Hedging strategies to keep NII sensitivity low Assets Liabilities Jun-21 Jun-22 Jun-23 Jun-24 Jun-25
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37 +4.6% 1H25 YoY 2024 2027e Fees underpinned by higher activity and more business Risk: higher number of transactions Service: higher activity, more business and more transactions AuM: net inflows in mutual funds and positive evolution in savings insurance will continue Services Asset Management Credit and contingent risk Breakdown by type of fees Ex-TSB Asset management fees are expected to play a more significant role Guidance Mid Single Digit CAGR Low Single Digit YoY Mid Single Digit YoY (Ex-TSB) 2027e (Group) 2025e (Ex-TSB) 53% 24% 23% 52% 28% 20% Fees metrics vs. core banking revenues. Ex-TSB 24% 27% 2024 2027e On-track to deliver our plan 1 1 CAGR 2024-27e.
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38 +1.8% 1H25 YoY Cost evolution reflects the bank’s cost discipline Cost discipline has played a key role in helping the bank contain expenses The 1H25 performance reinforces confidence in achieving the improved year-end target ~3% CAGR allows continued investment in IT ~3%CAGRFlattish YoY Low Single Digit YoY (Ex -TSB) 2027e (Group) 2025e (Ex-TSB) Guidance On-track to deliver our plan 1 1 CAGR 2024-27e.
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39 A healthy, granular and diversified loan book composition with low risk profile Mortgages to individuals • Avg. loan size: €87K • Fixed rate >67% • Weighted avg. LTV <60% • Affordability rate: c.27% 33% 21% 4% Corporates1 • 80% with investment grade rating2 Consumer loans • Avg. loan size: c.€8K • >80% 2024-YTD new lending with preapproved loans with existing Sabadell customers Performing loans ex-TSB Data as at Jun-25. 1 CIB Spain and international business 2 Business Banking with turnover >€2M. 3 Probability of Default of new lending in 1H25 (average) vs 1H23 (average). 4 Includes Micro-enterprises with turnover <€2M. Public sector and others 12% €119bn 23% SMEs2 • Avg. length of customer relationship: ~15 years • Improvement of PDs: -36%3 7% Self-employed & Micro-enterprises4 • Avg. length of customer relationship: >10 years • Improvement of PDs: -51%3
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40 4.1% 4.2% 3.3% 2.8% ~2% 56.4% 60.3% 66.1% 68.8% >70% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 2022 2023 2024 1H25 2025 2027e NPL ratio Coverage ratio Sustainable CoR at around 40bps >2024 levels <2.5% The results of our risk management initiatives, underpinned by a benign macro environment, will allow total CoR to stabilise at c.40bps Guidance ~40 bps~35 bps ~40 bps (Ex-TSB) 2027e (Group) 2025e (Ex-TSB) CoR, coverage and NPL ratio evolution, ex-TSB In bps 37bps 1H25On-track to deliver our plan On-track to deliver our plan 72 68 53 37 53 51 33 19 2022 2023 2024 1H25 Total CoR Credit CoR ~40 bps in 2025e ~40 bps in 2027e On-track to deliver our plan 1 1 Coverage ratio including total provisions over stage 3 loans.
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41 RoTE of 16% in 2027e RoTE evolution Volume growth Revenues Costs Cost of Risk A B C Positive fees income dynamics Risk management initiatives Solid asset quality performance Cost discipline A B C 2 ~€10.5bn 2027e Tangible Book Value 1 Assuming proforma TBV post TSB sale of €9,966M, calculated as: TBV 2024 (€12,235M) + Intangibles TSB (£115M at exchange rate as of 30 June 2025 of 0.8555) + Expected write-off of the IT Platform (€97M) - Extraordinary dividend (€2,500M). 2 Includes banking tax (~€60M lower banking tax in 2027e vs 2024) and equity variation. 14.9% 14.0% 14.6% 16% -0.9% +0.6% +1.6% -1.4% +1.3% -0.1% 2024 Extraordinary impacts 2024 recurrent Impact from TSB disposal 2024 ExTSB recurrent Total revenues Total costs Total CoR Others 2027e 1
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42 Business and P&L Funding, capital and shareholder value creation 2027 guidance 1 2 3 Financials
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43 Funding plan will deliver material savings to wholesale funding costs underpinned by lower MREL issuances Funding Plan 2025-27e Lower funding needs will contribute to reducing wholesale funding costs Negative net issuances to bring MREL buffer back to ~250bps. ESG framework considered in future issuances • AT1/Tier 2: buckets completed • Senior preferred/ non-preferred: MREL buffer back to ~250bps • Covered bonds: opportunistic issuer in EUR • Significant Risk Transfer (SRT) transactions to optimise capital management Rating evolution MREL buffers Jun-25 ~90 % Loan-to- deposit >130 % NSFR >150 % LCR Liquidity metrics 2027e3.7% Buffer 7.2% Buffer 01.01.2024 23.07.2025 Notches upgrade S&P BBB A- 2 Moody's Baa2 Baa2 0 Fitch BBB- BBB+ 2 DBRS A ( low) A ( low) 0 1 Excludes €13,382M of TSB RWAs as of June 2025, TSB intangible assets and -€2,500M extraordinary dividend payment. 1 4 Notches Upgrade 29.0% 32.5% 25.3% 25.3% Sabadell Sabadell ex TSB MREL %/RWA Requirement
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44 13.0% 24.2% 13.0% 9.4% +4.0% +7.2% -2.0% +0.1% -0.7% -5.2% -3.5% 2024 CET1 ratio Impact of sale of TSB Recurrent capital accretion 2027e CET1 ratio pre distributions and uses Business growth (RWA increase) Significant risk transfers (SRTs) AT1 coupons Shareholder distributions 2027e CET1 ratio target CET1 ratio requirement (SREP +CCyB) Capital accretion finances RWA growth and €6.3bn shareholder remuneration Capital accretion and distributions ~360 bps MDA buffer 1 CET1 fully-loaded, applying the regulatory output floor calendar. 2 9.37% (Pillar 1: 4.50%, P2R: 1.27%, CCB: 2.50%, CCyB: 0.85% Other Systemically Important Institutions: 0.25%), assuming current requirements and CCyB of 1% in Spain from October 2026 onwards. Equivalent to €6.3bn -8.7% Distribution of TSB sale proceeds Recurrent shareholder distributions 2 1
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45 2.39 2024 2027e Plan to generate double-digit shareholder value creation and growing dividend per share Shareholder value creation 1 In the next 3 years, subject to delivering on the business plan. A portion of that amount may also be subject to shareholder and supervisory approval. 2 Closing price as of July 22nd of €2.913. 3 CET1 fully- loaded, applying the regulatory output floor calendar. 4 Deducting the €2.5bn distribution extraordinary cash dividend related to TSB’s sale to the 2024 TBV. Cash dividend per share in 2025, 2026 and 2027 expected to be higher than 2024 (20.44 euro cents/share) €6.3bn cumulative shareholder distribution1 (>40% market cap2), of which €2.5bn in 2026-27e recurrent Commitment to distribute excess capital over 13% CET1 ratio3 15% Jun-25 YoY ~15% 2024-27e CAGR4 On-track to deliver our plan Cumulative dividends paid TBVPS evolution
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46 Business and P&L Funding, capital and shareholder value creation 2027 guidance 1 2 3 Financials
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47 A plan focused on growth, profitability and shareholder remuneration Cumulative shareholder remuneration of €6.3bn in 2025-27e Net interest income ~€3.9bn 2027e Fees & Commissions Mid-Single Digit 2024-27e CAGR Total costs ~3% 2024-27e CAGR Total Cost of Risk ~40bps 2027e 16% RoTE 13% CET1 FL
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48 Closing remarks
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49 A domestic Spanish bank, where focused execution drives growth, capital generation and attractive shareholder remuneration 16% RoTE in 2027e 49 €6.3bn Shareholder remuneration in the next 3 years(1) >40% Market Cap(2) Shareholder remuneration Execution Growth Spain • Domestic bank in Spain, one of the fastest growing economies in Europe • Solid track record of beating targets since 2021 • Orientation to growth while preserving asset quality. Current size leaves headroom for prudent market-share gains • Transformation well underway, with the full impact gradually flowing through to P&L and balance sheet • Strong capacity to generate capital (while growing), enabling attractive shareholder remuneration 1. Subject to delivering on the business plan. A portion of that amount may also be subject to shareholder and supervisory approval; 2. Closing price as of July 22nd of €2.913
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50 Q&A
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51 Appendix
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52 Banco Sabadell is setting new sustainability targets 2025-27 new ambition of finance to transition €bn. Green loans and Sustainability Linked Loans Women in management roles Annual evolution of women in management positions 5.2 7.9 12.1 25.2 2022 2023 2024 2022-2024 cumulative 30.3% 32.3% 33.9% 34.7% 2022 2023 2024 2Q25 >€33bn 2025 – 2027 target 38% 2027 target Banco Sabadell reaffirms its strong commitment to sustainability as a key element of its long-term strategy + >30% + >3pp
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53 Significant Risk Transfer (SRT) transactions Outstanding SRTs, Sabadell Group Programme Underlying assets portfolio Outstanding transactions (#) Hermes Project Finance & Corporate loans in US, USD denominated 1 Consumo Consumer loans originated in Spain 2 Boreas Project Finance in Spain, mostly related to renewable energies 2 Galera SME & Corporate loans mainly in Spain 2 Autos Vehicle loans granted by Sabadell Consumer Finance in Spain 1 Optimisation of capital consumption Active transfer of risk Cost of capital well below RoTE Allowing growth in profitable business
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54 >11% Reduction since Jul’23 Share buyback programmes Share buyback programmes overview, Sabadell Programme Amount (in €M) % market cap Shares repurchased (in M) Average Price (in €) Start date End date Capital reduction date Shares after reduction (in M) 2022 Buyback €204M 3.3% 187 1.09 03 Jul’23 13 Nov’23 11 Dec’23 5,440 2023 Buyback (€340M in total) €93M (before temporary suspension) 1.0% 53 1.77 25 Apr’24 13 May’24 27 Feb’25 5,388 €247M (reactivation) 1.8% 99 2.48 31 Mar’25 08 May’25 23 Jun’25 5,288 2024 Buyback €755M in progress 09 May’25 in progress ~5bn Expected number of shares at Dec’25e €1.3 bn Launched in share buybacks ~600 M Shares repurchased
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55 Glossary ALCO Asset/Liability Committee CET1 FL Common Equity Tier 1 Fully Loaded CoR Cost of Risk CAGR Compound annual growth rate CCyB Countercyclical capital buffer DPS Dividend per share ESG Environmental, Social, and Governance GDP Gross domestic product HICP Harmonised index of consumer prices IMF International Monetary Fund LCR Liquidity Coverage Ratio: short-term liquidity ratio LTV Loan to Value MDA Maximum Distributable Amount MREL Minimum Requirement of Eligible Liabilities NII Net Interest Income NPL Non-Performing Loan NSFR Net Stable Funding Ratio: medium-term liquidity ratio RoTE Return on Tangible Equity RWA Risk-Weighted Asset SBB Share Buyback SME Small and Medium-sized Enterprise SREP Supervisory Review and Evaluation Process SRT Significant risk transfer
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56 This presentation (the "Presentation") has been prepared and is issued by, and is the sole responsibility of, Banco de Sabadell, S.A. ("Banco Sabadell" or "the Company"). For the purposes hereof, the Presentation shall mean and include the slides comprised in this document, any prospective oral presentations of such slides by the Company or its Representatives (as defined below), as well as any question-and-answer session that may follow such oral presentation and any document or informative materials distributed at, or in connection with, any of the above. The information contained in the Presentation does not purport to be comprehensive and has not been independently verified and some of the information is in summary form. No representation or warranty, express or implied, is made by Banco Sabadell or any of its affiliates (Banco Sabadell Group), nor by their directors, officers, employees, representatives or agents (the “Representatives”) as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions expressed herein. None of Banco Sabadell nor any of its affiliates, nor their respective Representatives shall have any liability whatsoever (in negligence or otherwise) for any direct or indirect loss, damages, costs or prejudices whatsoever (including, but not limited to, consequential, reputational, loss of profits, punitive or moral) arising from the use of the Presentation or its contents or otherwise arising in connection with the Presentation, save with respect to any liability for fraud, and expressly disclaim any and all liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in connection with the accuracy or completeness of the information or for any of the opinions contained herein or for any errors, omissions or inaccuracies that may be contained in the Presentation. Banco Sabadell cautions that this Presentation may contain forward-looking statements and estimates, forecasts, targets or projections with respect to the business, financial condition, results of operations, strategy, plans and objectives of Banco Sabadell Group. While these forward-looking statements and estimates, forecasts, targets or projections represent Banco Sabadell Group’s current judgment on future expectations concerning the development of its business, a certain number of risks, uncertainties and other important factors could cause actual results to differ materially from Banco Sabadell Group expectations. These factors include, but are not limited to, (1) market situation, macroeconomic factors, governmental, political and regulatory trends; (2) movements in local and international securities markets, currency exchange rates and interest rates; (3) competitive pressures; (4) technical developments; (5) changes in the financial position or credit worthiness of Banco Sabadell Group’s customers, obligors and counterparts; (6) developments related to the military conflict between Russia and Ukraine and (7) the voluntary tender offer over Banco de Sabadell shares launched by Banco Bilbao Vizcaya Argentaria, S.A. These and other risk factors published in Banco Sabadell Group’s past and future reports and documents, including those filed with the Spanish Securities and Exchange Commission (“CNMV”) and available to the public both in Banco Sabadell´s website (www.grupbancsabadell.com) and in the CNMV’s website (www.cnmv.es), as well as other risk factors currently unknown or not foreseeable, which may be beyond Banco Sabadell's control, could adversely affect our business and financial performance and cause actual results to differ materially from those underlying the forward-looking statements and estimates, forecasts, targets or projections. Accordingly, undue reliance should not be placed on any forward-looking statement contained in this Presentation. The information contained in the Presentation, including but not limited to forward-looking statements and estimates or projections, is provided as of the date hereof (unless they are referred to a specific date) and does not claim to give any assurance as to future results. No person is under any obligation to update, complete, revise or keep current the information contained in the Presentation, whether as a result of new information, future events or results or otherwise. The information contained in the Presentation may be subject to change without notice and must not be relied upon for any purpose. This Presentation contains financial information derived from Banco Sabadell Group’s unaudited financial statements for the first quarter of 2025. Financial information by business areas is presented according to International Financial Reporting Standards (IFRS) as well as internal Banco Sabadell Group’s criteria as a result of which each division reflects the true nature of its business. These criteria do not follow any particular regulation and could include estimates and subjective valuations which could represent substantial differences in the information presented, should a different methodology be applied. In addition to the financial information prepared in accordance with the IFRS, this Presentation includes certain Alternative Performance Measures (“APMs”) as defined in the Commission Delegated Regulation (EU) 2019/979 of 14 March 2019 and in the Guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority on 5 October 2015 (ESMA/2015/1415es). The APMs are performance measures that have been calculated using the financial information from Banco Sabadell Group but that are not defined or detailed in the applicable financial information framework and therefore have neither been audited nor are capable of being completely audited. These APMs are been used to allow for a better understanding of the financial performance of the Banco Sabadell Group but should be considered only as additional information and in no case as a replacement of the financial information prepared under IFRS. Moreover, the way the Banco Sabadell Group defines and calculates these APMs may differ to the way these are calculated by other companies that use similar measures, and therefore they may not be comparable. Please refer to the quarterly financial report (https://www.grupbancsabadell.com/corp/en/shareholders-and- investors/economic-and-financial-information.html) for further details of the APMs used, including its definition and a reconciliation between any applicable management indicators and the financial data presented in the consolidated financial statements prepared under IFRS. Market and competitive position data in the Presentation have generally been obtained from industry publications and surveys or studies conducted by third-party sources. Peer firm information presented herein has been taken from peer firm public reports. There are limitations with respect to the availability, accuracy, completeness and comparability of such data. Banco Sabadell has not independently verified such data and can provide no assurance of its accuracy or completeness. Certain statements in the Presentation regarding the market and competitive position data of Banco Sabadell are based on the internal analyses of Banco Sabadell, which involve certain assumptions and estimates. These internal analyses have not been verified by any independent source and there can be no assurance that the assumptions or estimates are accurate. Accordingly, no undue reliance should be placed on any of the industry, market or Banco Sabadell’s competitive position data contained in the Presentation. The distribution of this Presentation in certain jurisdictions may be restricted by law. Recipients of this Presentation should inform themselves about and observe such restrictions. Banco Sabadell Group and their Representatives disclaim any liability for the distribution of this Presentation by any of its recipients. Banco Sabadell Group and their Representatives are not nor can they be held responsible for the use, valuations, opinions, expectations or decisions which might be adopted by third parties pursuant to the publication of this Presentation. No one should acquire or subscribe for any securities or financial instruments in the Company on the basis of this Presentation. This Presentation does not constitute or form part of, and should not be construed as, (i) an offer, solicitation or invitation to subscribe for, acquire, sell, issue, underwrite or otherwise acquire any securities or financial instruments, nor shall it, or the fact of its communication, form the basis of, or be relied upon in connection with, or act as any inducement to enter into any contract or commitment whatsoever with respect to any securities; or financial instruments or (ii) any form of financial opinion or investment or financial recommendation or advice with respect to any securities or financial instruments. 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