By Jesús Aguado
MADRID (Reuters) -Spain's Sabadell aims to post net profit above 1.6 billion euros ($1.88 billion) in 2027, excluding results from its British unit TSB, which it has agreed to sell to Santander pending shareholders' nod, the bank said on Thursday.
Sabadell, which ended 2024 with a net profit of 1.57 billion euros without TSB, is seeking to fend off a 13 billion-euro takeover bid by larger rival BBVA.
The country's fourth-largest lender in terms of market value said it expects to lift
its return on tangible equity (ROTE) ratio, a measure of profitability, to 16% in 2027 from 14.6% in 2024 as part of a three-year strategy.
Without its UK arm, Sabadell aims to boost earnings growth in Spain, where the economy is projected to grow 2.4% in 2025, outpacing the euro zone average.
As part of efforts to strengthen its case for remaining independent, Sabadell announced a 6.3 billion-euro shareholder payout for the 2025-2027 period.
Investors will be asked to approve an extraordinary 2.5 billion-euro cash dividend, funded by proceeds from the divestment, which analysts see as a defensive move aimed at warding off BBVA.
For 2025, shareholder remuneration is expected to rise to 3.8 billion euros, including a 1.3 billion-euro ordinary dividend.
The bank is planning to increase payouts by at least an additional 2.5 billion euros in 2026 and 2027.
In the second quarter, the lender's net profit rose 0.6% to 486 million euros, including TSB, as the sale is not expected to be closed until the first quarter of 2026.
The results topped analysts' forecast of 444 million euros, helped by lower provisions.
($1 = 0.8812 euros)
(Reporting by Jesús Aguado, editing by Inti Landauro; Editing by Sumana Nandy)
