BNDSY - Banco Sabadell: Dividend Expectations For The Next Few Years Have Been Cut

Introduction

About a year ago, I wrote an article on Banco Sabadell (OTCPK:BNDSF) (OTCPK:BNDSY) wherein I discussed the bank’s dividend plans and the impact on its capital ratios. I mentioned that although I understood why Sabadell wanted to resume dividend payments, I also emphasized that the bank’s attempts to rebuild the balance sheet were still necessary, and if a materially adverse scenario (as defined by the European Banking Association) were to occur, the bank would see its capital ratios drop below the required minimum. I dare to say the COVID-19 pandemic