Spain’s Sabadell (SABE.MC), opens new tab raised its lending income outlook for 2024 and lifted its shareholder distribution target on Tuesday, as it tries to fend off a hostile takeover by BBVA (BBVA.MC), opens new tab.
Higher-than-expected interest rates have boosted lending income at Spanish banks, which have benefited from charging customers higher costs for floating rate loans, while keeping a lid on what they pay savers.
Sabadell said it now expects mid-single digit growth for 2024 in net interest income, the difference between earnings on loans minus deposit costs, from a previous estimate of around 3% and for NII to keep growing in 2025 compared to this year.
Source: REUTER
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