Thursday, October 22

Banco Sabadell will delay corporate operations until well into 2021

Sabadell Bank It will be expected to be the next Spanish entity to take part in a possible corporate operation, but will not do so until well into 2021, once the market has sufficient information about the impact of the crisis on its income statement, they informed Europa Press financial sources.

In this way, after the speed with which the negotiations for the integration of CaixaBank and Bankia -operation that is expected to crystallize in the first quarter of 2021- and the speed with which Unicaja and Liberbank have dusted off their merger projectWe will have to wait until the middle of next year to find out who will be the next to make a move.

The entity chaired by Josep Oliu thus has several months to showcase its ability to manage the current complex situation, characterized for the entire sector by minimum interest rates, low profitability and high risk of credit deterioration.

The pymes

The Vallesan bank can positively surprise the market with its third quarter results, but it will not be until the figures for the full year are known and, predictably, those for the first and second quarters of 2021, when it is in a position to consider whether to tackle a transforming operation of this nature.

And this will be so because will allow to know the real impact of the crisis derived from the pandemic in its balance, which will offer a more faithful picture of your performance and your strengths.

The market is waiting with interest to know what impact the crisis derived from Covid-19 is having on the portfolio of SMEs in Sabadell. However, sources close to the entity have indicated to Europa Press that, although companies in this segment linked to the services sector have been severely hit by the pandemic, as a whole “they are holding up well.”

In the same way, the bank that is interested in forging an integration with Sabadell will wait until you have this vital information to decide whether or not to take a step forward and in what terms the operation can be considered.


In the event that you finally choose to embark on a merger process, Sabadell has basically with two options: ally with a larger entity (case of Santander or BBVA) or opt for multi-band integration with smaller banks that have been left off the hook (Kutxabank, Abanca, Ibercaja) to create a regionally diversified financial group with sufficient critical mass to compete with the larger ones.

In the first case, Santander has already ruled out taking part in new corporate operations in Spain after joining Popular, while BBVA has said through the mouth of its CEO, Onur Genç, that it will study the operations that arise, that generate value and are not dilutive for its shareholders.

CaixaBank’s little-expected approach to Bankia has disrupted the pools of some analysts and investment banks who were betting on matching the nationalized bank with Sabadell or BBVA.

In fact, some pointed out a year and a half ago that the “ideal” operation before the pandemic was a merger “between equals” between Sabadell and Bankia. However, this alternative was diluted as the crisis worsened and both entities decreased their market value.


On the other hand, this Friday the lehendakari Iñigo Urkullu affirmed that Kutxabank “is today the leading financial institution in solvency and has accredited the highest social dividend in the entire State“In this sense, he ruled out the need for a merger with other entities.

However, it recognized that this is a decision that must be taken by its management bodies. “An increasingly large bank is not synonymous with more solvency”, has stated.

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