Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on BANCO DE SABADELL SA. We currently have 6 research reports from 1 professional analysts.
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BANCO DE SABADELL SA
BANCO DE SABADELL SA
02 Mar 17
The group announced the sale of its Florida retail banking subsidiary United Bank for a total consideration of $1,025m. The transaction is expected to close in the second half of this year. Following the operation, the group will continue developing its core activities of Corporate Banking and International Private Banking through its branch in Miami.
UK for free
08 Feb 17
We are upgrading our recommendation from ADD to BUY. The removal of mortgage floors will not prevent strong revenue momentum in Spain The group disclosed its new business plan running from 2017 to 2020 and provided a detailed and upbeat guidance for this year with a €800m net profit projection. The year will enjoy buoyant fee income generation but net interest income will also increase, albeit modestly, confirming that the removal of mortgage floors will not derail the top-line trajectory. UK is for free The group’s UK exposure has weighed on the stock’s performance and we continue to expect a deterioration in the economic conditions following the push of the Article 50 button. However, we consider that at current prices, the UK business is valued at zero or below, meaning that the stock is undervalued from a fundamental perspective. DTAs: no reason to be more papist than the pope Like many analysts we were concerned by the overreliance of the equity position to deferred tax assets. Indeed, DTAs account for almost 50% of the equity but they only marginally depress regulatory ratios as they are not deducted from CET1 but instead risk weighted. However, what matters is the regulator’s position and the latter considers DTAs as real equity.
Encouraging underlying operating performance
30 Jan 17
The group managed to post a modest profit in Q4 in spite of several seasonal or non-recurring charges thanks to a benign underlying cost of risk. The top line proved resilient, activity volumes were encouraging and the quarter enjoyed further cost reductions. TSB’s migration due by the end of the year is proceeding according to plan while the platform is already almost fully operational. The equity position remained stable at a comfortable level, while the residual exposure to the mortgage floor removal is pretty limited. The group will hold an investors day on 7 February when it will update mid-term financial objectives. The €1bn profit objective has been delayed to 2018. 2017 will enjoy a low double-digit earnings growth in spite of LBG’s IT servicing cost.
Unconfessed mortgage floors removal
19 May 16
First quarter results were impacted by the market’s turmoil and the unconfessed decision to progressively remove mortgage floors through an unfavourable switch for the bank to fixed mortgage rates. Cost savings and TSB’s IT migration are on track. Impairments guidance has remained unchanged despite the confirmed recovery of the Spanish real estate market. The already confortable capital position has improved further.
Impressive NII resilience, still elevated cost of risk
03 Feb 16
Quarterly results were characterised by impressive NII resilience and rapid asset quality normalisation. TSB integration is well on track. Management confirmed its 10% ROTE objective for 2016. It is working on its new three-year business plan but no surprise should be expected. Pending regulatory reforms or potential retroactive mortgage removal are not expected to have any material impact on the equity position.
N+1 Singer - Morning Song 22-03-2017
22 Mar 17
Carador Income Fund (CIFU LN) Premium rating restored, high levels of refinancing activity | Cello Group (CLL LN) Outlook getting brighter – watch Pulsar | Eckoh (ECK LN) Largest ever US secure payments win | eg solutions (EGS LN) Full year results in line | Futura Medical (FUM LN) Licensing deal for CSD500 in Portugal | Verona Pharma (VRP LN) Global agreement with QuintilesIMS to support development of RPL554 | Xaar (XAR LN) 2016 results slightly ahead, reduced visibility in 2017
28 Mar 17
ClearStar* (CLSU): Building a background for growth (CORP) | Sound Energy (SOU): TE-8 results (HOLD) | LiDCO* (LID): 2017 should be a transformative year (CORP) | Proteome Sciences* (PRM): FY 2016 in line. Moving towards breakeven (CORP) | Fulcrum (FCRM): Significant market potential, rising margins and a strong balance sheet (BUY) | Mortgage Advice Bureau (MAB1): Strong and growing intellectual property (BUY) | 7digital* (7DIG): Open offer result (CORP)
Another positive verdict
20 Mar 17
Burford’s results for 2016 produced another outstanding set of figures. Revenue grew by 60% to $163.4m with strong growth in the litigation finance business and an additional boost from a secondary sale in the Petersen case. On an underlying basis net income grew to $114m, a 75% increase despite the investment in growing capacity which increased costs. A combination of ongoing investment and gains and increases on valuation saw the fair value of the litigation assets increase 67% to $559m, underpinned by a growth in invested capital to $394m. With the results statement there was an announcement of a further sale of 9% of the Petersen case at a valuation of 20 times the cost of investment.
Small Cap Breakfast
28 Mar 17
Path Investments—Publication of prospectus from the Energy Investment Company. Raising £1.4m. Admission due on or around 30 March | Franchise Brands—Schedule 1 detailing £28m reverse takeover of Metro Rod. Admission expected 11 April | Alpha FX Group— Schedule 1 from the foreign exchange provider focused on managing exchange rate risk for UK corporates that trade internationally. Fundraise TBC. Admission expected 7 April. | K3 | Capital Group—Schedule 1 from the Group of business and company sales specialists across business transfer, business brokerage and corporate finance. Admission date and fundraise details TBC. | Integumen— Schedule 1 from the personal health company developing and commercialising technology and products for the human integumentary system. Raising £2.16m at 5p. Expected market cap £8.16m. Admission expected 5 April. Tufton | Oceanic Assets– Offer extended to 9 May to enable investors to complete further due diligence.