BNDSY - Banco de Sabadell S.A. (BNDSF) Q1 2024 Earnings Call Transcript
2024-04-26 12:26:01 ET
Banco de Sabadell, S.A. (BNDSF)
Q1 2024 Results Conference Call
April 25, 2024 3:00 AM ET
Company Participants
Gerardo Artiach - IR
Cesar Gonzalez-Bueno - CEO
Leopoldo Alvear - CFO
Conference Call Participants
Maksym Mishyn - JB Capital
Antonio Reale - Bank of America
Francisco Riquel - Alantra
Ignacio Ulargui - BNP Paribas
Andrea Filtri - Mediobanca
Borja Ramirez - Citi
Hugo Cruz - KBW
Pablo de la Torre - RBC Capital Markets
Sofie Peterzens - JP Morgan
Presentation
Gerardo Artiach
Good morning. Thank you for joining us on Banco Sabadell's First Quarter 2024 Results Audio Webcast. Please be welcome. In the next minutes, our CEO, Cesar Gonzalez-Bueno; and our CFO, Leopoldo Alvear, will present the main highlights and details of the commercial and financial performance in the first quarter of the year. The presentation will be followed by a Q&A session.
We have a schedule around 1 hour -- 1 hour and 15 minutes for the whole session. Let me now hand it over to our CEO, Cesar Gonzalez-Bueno.
Cesar Gonzalez-Bueno
Thank you, Gerardo. Good morning, everyone, and welcome to Sabadell's First Quarter 2024 results presentation. I will start by going through the key elements of this quarter. Firstly, NII of the group grew by 1.7% quarter-on-quarter. More remarkable, customer margin increased by 10 basis points in the quarter and stands at 3.09%.
Secondly, asset quality continues improving. The management actions we have taken to improve our risk models and processes are delivering results in the form of lower cost of risk. At the end of the first quarter, group's total cost of risk stand at 50 basis points, having improved by 5 basis points in the quarter. Thirdly, group's net profit reached €308 million in the quarter. This result includes the impact of €192 million of the Spanish banking tax recognized in full in this quarter.
Fourthly, following approval by our annual shareholders' meeting, the share repurchase program for up to €340 million is being launched today. This completes our shareholder remuneration on the back of 2023 results. At current share prices, this buyback represents around 4% of the bank's market cap. Finally, our common equity Tier 1 fully loaded ratio reached 13.3%. Moreover, the return on tangible equity stood at 12.2% considering the last 12 months.
Moving on to Slide 5, quarterly evolution of performing loans. Volumes performed well despite quarterly seasonality. Performing loans in Spain remained stable in the quarter and increased by 2.3% quarter-on-quarter in TSB, which is 0.8% at constant FX. This behavior is a shift of the trend we observed in previous quarters. We believe that this performance should continue improving throughout the year.
Moving now to customer funds on the right-hand side of the slide. On-balance sheet funds remained stable in the quarter. We can observe a year-on-year reduction as customers transferred funds from their current accounts to other higher-yielding off-balance sheet products such as mutual funds, pension plans and savings insurance. This trend, along with the good performance of financial markets explains the increase in off-balance sheet funds by 3.9% in the quarter and by 6.7% in the year. In Slide 6, I would like now to comment on the main initiatives we have implemented to support lending growth and, at the same time, reduce cost of risk....
Banco de Sabadell, S.A. (BNDSF) Q1 2024 Earnings Call Transcript