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 - Uncovered Gems - Speed Dating Lunch - A Famous Five for the future?
12 Apr 17
On Friday we hosted our third “speed dating” lunch with the management of five very interesting and contrasting companies not under our formal coverage: Be Heard, Byotrol, Gfinity, Oxehealth and Plant Impact. Each company gave a concise and punchy overview of its business and investment case to a group of fund managers, before rapid fire Q&A. Below we summarise our thoughts on each company with more details inside the note, plus some relevant slides. We believe that all five companies are well-managed and well worth a closer look - we intend to repeat this efficient and popular format for engaging with management teams.
N+1 Singer - Small-cap quantitative research - Growth style screen revamp and 10 focus stocks
06 Apr 17
We have reviewed the performance of our consistent growth screen since the previous refresh on 27 September 2016 and revamped the selection parameters to focus more on forecast sales and EPS growth going forward. In the period under review the consistent growth style screen outperformed the small-cap benchmark by c. 6% and underperformed the microcap index by a similar amount. Interestingly, although growth doesn’t always seem to be defensive as might be expected, however it appears right to buy growth on dips caused by or coincident with wider market volatility. In the new forecast growth screen we take a close look at 10 focus stocks. We will monitor performance and refresh it in three to four months time.
Non Life Insurance - Growing impact of hacks on share prices
18 Apr 17
Our November 2016 Cyber report flagged the growing impact of cyber attacks on quoted companies, noting that Yahoo’s breach would inevitably negatively impact Verizon’s offer price, which it did. A report by CGI and Oxford Economics has found that, to date,severe hacks on UK companies permanently reduced their share price by 1.8% - or approximately a £120m hit to MCap for a FTSE 100 firm. With GDPR coming into effect next year, we expect more headlines. That has got to be good for cyber insurers and cyber security firms.
UK Housebuilding Sector: Q1 2017
10 Apr 17
Baron King of Lothbury, also known as Mervyn King former Governor of the Bank of England, is married to Barbara, a Finnish lady. She was his girlfriend in 1970 but distance and steam-driven telecoms conspired to keep them apart. Barbara went on to marry someone else and divorce - before being reunited with King in the late 1990s. They married in 2007 and King, who had never had children, was presented with two step-children and four grandchildren; and, in a Sunday Times interview, he quoted the Finnish apothegm “Grandchildren are the dessert of life”.
Northland Capital Morning Report
02 Dec 15
Divergence looks set to dominate the final month of 2015 and set the tone for 2016. The European Central Bank is widely expected to extend its QE economic stimulus programme and could reduce its overnight deposit rate further in an attempt to boost inflation, and more stimulus could come from Japan and China. Meanwhile the Federal Reserve is now expected to lift rates from historic lows. Higher US rates will impact not only the cost of capital in the US but also emerging markets where growth remains much weaker and leverage high. The move by the ECB is unlikely to have a major impact, however, as it is an extension rather than a new tool and the headlines continue to be dominated by politics rather than financial markets (Isis, the refugee/migrant crisis, tensions between Russia and Turkey etc). The respective moves are likely to further weaken the euro in 2016. The UK sits somewhere in the middle. November’s Autumn Statement saw the Chancellor drop his tax credit reduction plans and benefit from a surprise £27bn improvement in the Office for Budget Responsibility’s five year public finances forecast, based on higher tax revenue and lower debt interest. The general shift away from austerity, the protection of tax credits and increased minimum wage should ensure further economic growth.