Banc Sabadell gets net profit of 340.3 million euros during first 9 months of 2010
Banc Sabadell received 27.4% less profit compared with the same period in 2009. The net profit has been calculated after deducting a provision to cover a potential increase of debtors. The financial entity saw credit loss provision increases of 38% until its third trimester.
Barcelona (ACN).- The Banc Sabadell Group took in a net profit of 340.3 million euros during the first 9 months of the year after having made credit loss provisions to cover debtors for 813.9 million euros, 37.9% more than the same period in 2009. At the end of the third trimester, Banc Sabadell calculated 27.4% less profit than last period. During this period, the group saw a 50% rise in new clients and a 15.9% rise in fixed term deposits. Meanwhile, gross credit investment to clients were recorded at an annual rate of 0.2%.
The profit margin before the credit loss provisions was at 937 million euros, 12% less than last year. Specific provisions related to insolvencies rose to 494.8 million euros. The Banc Sabadell Group also freed 162.7 million euros in generic provisions and established real estate provisions and financial assets worth a total of 470.3 million euros.
In total, the provisions increased 38% compared with the same period last year. The default rate also increased, going from 3.47% at the close of the third trimester of 2009 to 4.72% this year.
Banc Sabadell\u2019s consolidated balance closed the third trimester of the year with 85,682.1 million euros, representing a 4.8% increase from the same period of 2009. Client resources rose to an annual 11.2%, with 42,607.6 million euros. Fixed term deposits also rose by 15.9%, amounting to 25,824.1 million euros.
The bank\u2019s strong commercial activity during the first nine months of the year spurred a 47% increase in new clients, resulting in a total of 142,526 clients. SMEs and commercial clients rose to 61%, with 30,227 accounts. The weekly rate of new clients grew by 52% in the third trimester.