1. Homepage
  2. Equities
  3. Spain
  4. Bolsas y Mercados Espanoles
  5. Banco de Sabadell, S.A.
  6. News
  7. Summary
    SAB   ES0113860A34

BANCO DE SABADELL, S.A.

(SAB)
  Report
Delayed Quote. Delayed Bolsas y Mercados Espanoles - 05/27 11:38:00 am
0.8264 EUR   -2.94%
05/05Notice of Optional Full Redemption
AQ
04/30Banco de Sabadell, S.A. Reports Earnings Results for the First Quarter Ended March 31, 2022
CI
04/28Sabadell's Q1 hits profitability target after lower costs, provisions
RE
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Sabadell bid for TSB could be blocked by UK regulator - analysts

03/13/2015 | 01:13pm EDT
A sign is displayed outside a branch of the TSB bank in central London

LONDON (Reuters) - Banco Sabadell's (>> Banco de Sabadell SA) plans to buy TSB (>> TSB Banking Group PLC) could be scuppered by Britain's financial services regulator, analysts said on Friday.

LONDON (Reuters) - Banco Sabadell's (>> Banco de Sabadell SA) plans to buy TSB (>> TSB Banking Group PLC) could be scuppered by Britain's financial services regulator, analysts said on Friday.

TSB, Britain's seventh-biggest lender, said on Thursday it had received a takeover approach from Sabadell valuing the business at 1.7 billion pounds ($2.5 billion), which it would be willing to recommend to shareholders.

But the deal could be derailed if the regulator - the Bank of England's Prudential Regulation Authority (PRA) - and lawmakers intervene, banking analysts said.

Berenberg analysts said the regulator may require Sabadell, Spain's fifth-biggest bank, to maintain high levels of capital in its British business and to ring-fence the capital and assets of the business, including its computer systems, limiting potential cost savings.

They also identified political concerns, with an April 9 deadline for Sabadell to make a formal offer coming only about a month before Britain's general election.

"We think that the government may come under political pressure about the sale of a newly created UK challenger bank," said Berenberg analyst Andrew Lowe.

The PRA, Sabadell and TSB all declined to comment.

TSB was created because state-backed Lloyds Banking Group (>> Lloyds Banking Group PLC) was ordered to sell 631 branches by European regulators as a condition of its 20-billion-pound government bailout during the financial crisis of 2007-9.

Lawmakers are keen for challengers to break the dominance of the country's "big four" banks - Lloyds, Royal Bank of Scotland (>> Royal Bank of Scotland Group plc), Barclays (>> Barclays PLC) and HSBC (>> HSBC Holdings plc) - which account for over three-quarters of personal current accounts and nine out of 10 business loans.

The opposition Labour party has committed to creating two new banks with the scale to effectively challenge the big four if it wins the election.

Macquarie analysts said the regulator could oppose the deal if it has concerns over Sabadell's capital strength. The Spanish bank is considering a 1.5-billion-euro ($1.6 billion) capital hike via a share issue to help finance the deal.

Analysts at Macquarie said although Sabadell's core tier one ratio, a key measure of a bank's financial strength, looked solid at 11.5 percent at the end of 2014, it included a 500-basis-point benefit from relief on deferred tax assets which would not be recognised by British regulators.

"Given the UK regulator doesn't afford UK banks such relief and given the ECB has been sounding a tougher line on such derogations from the original Basel III rules we think it is far from clear the deal automatically receives a green light," Macquarie analysts said.

(Editing by Pravin Char)

By Matt Scuffham


© Reuters 2015
Stocks mentioned in the article
ChangeLast1st jan.
BANCO DE SABADELL, S.A. -2.94% 0.8264 Delayed Quote.39.64%
BARCLAYS PLC 1.61% 170.38 Delayed Quote.-8.89%
HSBC HOLDINGS PLC 1.35% 532.4 Delayed Quote.18.67%
LLOYDS BANKING GROUP PLC 0.23% 45.44 Delayed Quote.-5.37%
NATWEST GROUP PLC 2.24% 228.5 Delayed Quote.0.66%
All news about BANCO DE SABADELL, S.A.
05/05Notice of Optional Full Redemption
AQ
04/30Banco de Sabadell, S.A. Reports Earnings Results for the First Quarter Ended March 31, ..
CI
04/28Sabadell's Q1 hits profitability target after lower costs, provisions
RE
04/28TRANSCRIPT : Banco de Sabadell, S.A., Q1 2022 Earnings Call, Apr 28, 2022
CI
04/28BANCO DE SABADELL S A : Sabadell earns 213 million euros due to lower costs and improvemen..
PU
04/28Sabadell's Q1 hits profitability target after lower costs, provisions
RE
04/28BANCO DE SABADELL S A : Sabadell remite presentación sobre los resultados del primer trime..
PU
04/28BANCO DE SABADELL S A : 1Q22 Financial Report
PU
04/28BANCO DE SABADELL S A : 1Q22 Results Presentation
PU
04/28Sabadell's Q1 net profit trebles versus a year ago on lower provisions
RE
More news
Analyst Recommendations on BANCO DE SABADELL, S.A.
More recommendations
Financials
Sales 2022 4 787 M 5 129 M 5 129 M
Net income 2022 559 M 599 M 599 M
Net Debt 2022 - - -
P/E ratio 2022 8,48x
Yield 2022 4,05%
Capitalization 4 617 M 4 946 M 4 946 M
Capi. / Sales 2022 0,96x
Capi. / Sales 2023 0,93x
Nbr of Employees 18 985
Free-Float 98,8%
Chart BANCO DE SABADELL, S.A.
Duration : Period :
Banco de Sabadell, S.A. Technical Analysis Chart | SAB | ES0113860A34 | MarketScreener
Technical analysis trends BANCO DE SABADELL, S.A.
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 18
Last Close Price 0,83 €
Average target price 1,04 €
Spread / Average Target 25,9%
EPS Revisions
Managers and Directors
César González-Bueno Chief Executive Officer
Leopoldo Alvear Trenor Chief Financial Officer
Josep Oliu Creus Executive Chairman
Rüdiger Schmidt Head-Global Information Technology & Operations
Federico Rodríguez Castillo Head-Compliance & Corporate Governance
Sector and Competitors