Banco de Sabadell S A : 1Q24 Results Presentation

1Q24

results

April 25, 2024

index

1

2

3

4

1Q24 highlights

Financial results

Balance sheet

Closing remarks

1Q24 highlights

1Q24 key messages

Net Interest Income increases +1.7% QoQ

Customer margin at 3.09% (+10bps QoQ)

Group net profit of €308M

After €192M banking tax payment

(non tax-deductible)

RoTE1

12.2%

CET1 FL

13.30%

Asset quality keeps improving

Total cost of risk at 50bps (-5bps QoQ)

Share buyback programme

€340M starting today

1 Last 12 months Return on Tangible Equity.

4

Positive performance despite quarterly seasonality…

Performing loans across geographies

€M

	Mar-24	QoQ	YoY
Spain
94,619	+0.0%	-3.0%
UK (TSB)	42,330	+2.3%	+0.8%
Constant FX	+0.7%	-2.0%
Other	13,847	+0.4%	+5.6%
international
-1.8%	+3.4%
Constant FX
Total	150,796	+0.7%	-1.2%
Constant FX	+0.0%	-2.1%

Total customer funds

€M

	Mar-24	QoQ	YoY
On-balance sheet
161,419	+0.3%	-0.5%
Constant FX		-0.2%	-1.4%
Off-balance sheet	42,150	+3.9%	+6.7%
Total	203,569	+1.1%	+0.9%
Constant FX	+0.6%	+0.1%

…contributing to an expected turnaround in annual trend

5

Management initiatives in place to foster new lending growth while reducing cost of risk

	Improved distribution model
	Enhanced capabilities to attract
Mortgage	and convert digital demand
	More segmented pricing

250 remote specialized RMs deployed, supporting 100% of our branch network

Revamped digital journeys

Leveraging on improved risk models

	Origination through
55%	remote specialized
RMs, offering
1Q24
customers extended
	service hours

	More pre-approved loans	Increased number of customers with pre-
	approved loans
Consumer	More segmented pricing	Leveraging on improved risk models
lending

	New lending granted
86%	through digital & remote
1Q24	pre-approved loans
	(67% in 2022)

Business

New customers segmentation

More pre-approved loans

Premium relationship model offered to large companies has been extended to SMEs

Specific risk models and specific go-to-market strategies for each segment

~€20bn

1Q24

~€13bn

Pre-approved loans available for self-employed and businesses

Pre-approved loans available for SMEs and

Banking

Greater specialization

More data-analytics to support

RMs and risk analysts

Specialization of risk analysts and RMs by sector (for larger companies)

Better identification of target good-risk customers and growth opportunities

1Q24

83%

1Q24

large companies

New lending granted to target customers

(79% in 2022)

6

New lending is gaining momentum in households…

Mortgages

€M, quarterly and monthly new lending in Spain

1,025

908

754

-11%

Var. YoY

+20%

Var. QoQ

1Q23

4Q23

1Q24

Consumer loans

		390
251	266
Jan-24	Feb-24	Mar-24

New mortgages trend

QoQ evolution	2Q23	3Q23	4Q23	1Q24
of early-stage-10%	-22%	+13%	+59%
applications
2.100
1.900
1.700	-19%-15% +20%
1.500
1.300
1.100
900	1,095
			908
		890

41.000 36.000 31.000 26.000 21.000 16.000 11.000

€M, quarterly and monthly new lending in Spain

	552
490	521
+13%
	Var. YoY

+6%

172

88%

Preapproved

loans1

200

180

700		754
500
300
2Q23	3Q23	4Q23	1Q24	2Q24
New mortgage lending (€M)

The quarterly evolution of early-stage applications anticipates growth of new

6.000 1.000 -4.000

		Var. QoQ
1Q23	4Q23	1Q24

Jan-24Feb-24Mar-24

mortgage lending in the next quarter

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…and also in business banking…

Loans and credit facilities - Business Banking

€M, quarterly new lending in Spain

		3,894
2,638	2,692	+48%
		Var. YoY
		+45%
		Var. QoQ
1Q23	4Q23	1Q24

Working capital1 - Business Banking

€M, quarterly new lending in Spain

7,6517,5477,255

-5%

Var. YoY

-4%

Var. QoQ

1Q234Q231Q24

Impacted by seasonality

…as demand for mid- and long-term borrowing increases

1 Working capital includes trade discounting, factoring, reverse factoring, forfaiting and import/export finance.

8

Strong growth in payment services continues. Savings & investment products increase

Cards	Retailer payment services (PoS)
Quarterly turnover in Spain (in €M)	Quarterly turnover in Spain (in €M)

Merchant acquiring business deal

expected to close

in 2Q24

5,330	6,212	5,727

+7%

Var. YoY

-8%	Impacted by
Var. QoQ
seasonality

11,261	13,513	12,445

+11%

Var. YoY

-8%	Impacted by
Var. QoQ
seasonality

1Q23	4Q23	1Q24
# transactions 158M	186M	174M	+10% Var. YoY	# transactions

Savings & investment products

Customer funds in Spain (in €bn)

Mar23

50.5

Dec23	56.6	+€2.1bn
		Var. QoQ
Mar24	58.7

On-balance (term deposits, structured deposits and commercial paper)

Off-balance (mutual funds, pension funds, savings insurance and managed accounts)

1Q23	4Q23	1Q24
356M	423M	403M	+13% Var. YoY

+€1.6bn

+€0.5bn

Term	Off-balance1
deposits

9

1 Off-balance includes mutual funds, pension funds, savings insurance and managed accounts.

Stable volumes in Spain with positive momentum…

Performing loans by segment, ex-TSB

€bn

	Mar-24	QoQ	YoY
Mortgages
37.5	-0.8%	-3.7%
Consumer loans	4.0	+2.9%	+13.8%
SMEs & Corporates	41.2	+0.9%	-3.3%
Public sector	8.7	+1.9%	-3.0%
Other lending	3.2	-10.1%	-8.6%

	Mar-24	QoQ	YoY
Mexico	4.8	+4.2%	+16.1%
Constant FX	X.X%	+1.0%	+10.7%
Miami	5.6	-1.3%	+2.0%
Constant FX	X.X%	-3.4%	+1.4%
Foreign branches	3.4	-2.1%	-1.2%
Constant FX
X.X%	-2.8%	-2.5%
Total international	13.8	+0.4%	+5.6%
Constant FX	X.X%	-1.8%	+3.4%

Total Spain	94.6	+0.0%	-3.0%

…should foster growth through 2024

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