Banc Sabadell profit drops by 99.7% in 2020 due to Covid-19 provisions
2 million euros in earnings also tied to sale of troubled assets and restructuring plan
Net profit for Banc Sabadell in 2020 amounted to 2 million euros, a staggering 99.7% less than the 768 million euros earned in 2019.
The banking institution has attributed these losses to the 2.275 billion euros set aside to face the Covid-19 crisis, the sale of troubled Caja Mediterráneo assets, and its restructuring plan in Spain and the United Kingdom.
Although the bank suffered a 6.2% year-on-year revenue drop, CEO Jaume Guardiola described 2020 as an "excellent" year for business and said his company had already "laid the foundations" for a new strategic plan that will be presented in May.
Failed merger with BBVA
The bank was in talks with BBVA, a Spanish financial services multinational that is one of the largest in the world, late last year over a merger that were ultimately unsuccessful. Had an agreement been reached, the financial institutions would have created Spain's second-largest lender.
Banc Sabadell was founded in the namesake city in 1881 but moved its headquarters outside Catalonia during the 2017 independence push, reportedly under pressure from Spain's conservative government of the time.