Banco de Sabadell, S.A. (BNDSF) Q1 2025 Earnings Call Transcript

Banco de Sabadell, S.A. (OTCPK:BNDSF) Q1 2025 Earnings Conference Call May 8, 2025 3:00 AM ET

Company Participants

Lluc Sas – Investor Relations
César González-Bueno – Chief Executive Officer
Sergio Palavecino – Chief Financial Officer

Conference Call Participants

Francisco Riquel – Alantra
Cecilia Romero – Barclays
Ignacio Ulargui Lopez – BNP Paribas
Maksym Mishyn – JB Capital
Carlos Peixoto – CaixaBank BPI
Britta Schmidt – Autonomous Research
Pablo de la Torre – RBC Capital Markets
Ignacio Cerezo – UBS
Fernando Gil de Santivañes – Intesa Sanpaolo

Lluc Sas

Good morning all, and welcome to the Sabadell Results Presentation for the First Quarter 2025. Today, we are joined by our CEO, César González-Bueno; and our CFO, Sergio Palavecino. The presentation will take the same structure as previous quarters. Our CEO will begin by outlining the key developments of the quarter, followed by a discussion on the most significant topics. Next, our CFO will cover financial results and balance sheet developments before our CEO concludes with some closing remarks.

Finally, we will open the floor for a live Q&A session. I will now hand over to César González-Bueno to kick off our presentation.

César González-Bueno

Thank you, Lluc. Good morning, everyone. I will start going through the key elements of this quarter in Slide 4. Firstly, the strong momentum in commercial activity continues. Performing loans grew by 5% and customer funds increased by more than 6% on the year.

Secondly, asset quality remains strong. The NPL ratio fell to a new low of 2.67%, which is 79 basis points less than in the previous year. This translates into a substantial reduction of the cost of risk. At the end of the first quarter, the group's total cost of risk stands at 35 basis points.

Thirdly, NII declined by 1.3% year-on-year due to lower interest