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Sabadell Bank, a major Spanish bank, is giving €3.3 billion to its shareholders. This includes €1 billion in share buybacks and cash dividends. The bank reported a strong profit for 2024, driving the big payout.

Big Profit and Shareholder Payments

Sabadell made €1.83 billion in profit for 2024, up 37% from the year before. In the fourth quarter, profit grew 19% to €532 million. The bank plans to give €3.3 billion to shareholders from 2024 and 2025 profits. This includes a cash dividend of 20.44 cents per share for 2024, with more to come in 2025. Shareholders will also get about 61 cents per share through buybacks.

“We are giving record payouts. No other Spanish bank plans to give such a big share of income,” said Josep Oliu, the bank’s chairman. CEO César González-Bueno added that the bank’s growth is strong and sustainable.

Growth in Retail and Business Banking

The bank did well in Spain’s retail and business banking. Its British unit, TSB, earned £208 million in profit for 2024, an 18.9% increase from last year. TSB’s profit added €253 million to the group’s total, the highest since Sabadell bought the bank in 2015.

Sabadell also saw growth in net interest income, which hit €5.02 billion by the end of 2024. That was a 6.3% increase from the year before, thanks to higher lending rates.

BBVA’s Takeover Bid

Even with strong profits, Sabadell is fighting a takeover bid from BBVA. This is BBVA’s second attempt in four years. Sabadell says BBVA’s offer is too low and doesn’t reflect the bank’s value.

Some say the merger would improve Spain’s banking. They think it would boost lending. But others worry it could create a banking monopoly, which would hurt consumers.

Spain’s antitrust authority is still reviewing the deal. The review could delay the merger until 2025. It might also bring stricter conditions for BBVA.

Sabadell’s Plan to Stay Independent

The Spanish government could block the deal if needed. Catalan politicians also worry that the merger would hurt Sabadell’s role in Catalonia’s economy. Sabadell recently moved its headquarters back to Catalonia to push back against the takeover.

By showing strong profits and offering big payouts, Sabadell hopes to stay independent. The bank wants to show that it is a strong and successful company on its own.