Banc Sabadell posts €81.9 million profit in 2012, 64.7% less than last year
The Catalan Banc Sabadell finished 2012 with positive results and net benefits of €81.9 million. Banc Sabadell has now reached 5th position among the Spanish financial entities in the last economic exercise due to its assets valued at €175 billion. However, this figure shows a 64.7% drop in benefits in comparison to 2011. The main reason for the decrease is the €2.54 billion for provisions, 142.2% more than 2011. The President of Banc Sabadell, Josep Oliu, emphasised the company’s solvency and spoke of its capacity to buy additional entities in the international market.
Barcelona (ACN).- Banc Sabadell has presented its results for 2012. Last year, the Catalan bank registered €81.9 million in net benefits and earmarked €2.54 billion for provisions, 142.2% more than 2011. In general terms, Banc Sabadell shows a 64.7% decrease in net profit in comparison to 2011, mostly due to the provision allocation. Even so, this Catalan financial entity has become the 5th largest bank in the Spanish ranking due to its improvement from 2009 to 2012, when it practically doubled its asset value from €83 to €175 billion. Taking advantage of the poor economic and financial situation of other entities, Banc Sabadell absorbed the Caja de Ahorros del Mediterráneo (CAM), a savings bank in the Valencian Autonomous Community, which was nationalised in 2011 by the Spanish Government. The President of Banc Sabadell, Josep Oliu, emphasised the company’s solvency. He also spoke of its capacity, as well as that of the Spanish banking system’s, to buy additional entities in the international market.
Banc Sabadell passed all the stress tests imposed by the European Central Bank and the European Bank Authority and, according to its President Josep Oliu, the internationalisation project will be incorporated in its programme with the approval of their new strategic plan in May. Additionally, Oliu commented that the Spanish bank reform system is offering the chance for Banc Sabadell to grow in geographical areas where it had no presence.
Future predictions
The President of Banc Sabadell also said that the economic crisis has reached a crucial point in 2012, but “this does not mean the beginning of a recovery”. Josep Oliu emphasised he trusts in the bases of the economic reform and considered that “it is only a matter of time before the Euro consolidates itself and the economy begins to show a positive tendency”. According to Oliu, “at the moment, liquidity is not a problem for financial entities", reason for which Banc Sabadell was able to make some emissions to attract enough sources to face the 2013 financial exercise. “If the bank makes another emission, it will be able to assume further credit”, he added.