The Board of Directors has approved the distribution of the final remuneration for the 2025 financial year in the amount of 365 million euros, as well as the distribution of excess capital amounting to 435 million euros. Both will be carried out through a share buyback programme. This amount is in addition to the 700 million euros already delivered as interim dividends, paid in cash, in August and December 2025.

In this way, Banco Sabadell has allocated a total of 1.5 billion euros to shareholder remuneration charged to the 2025 financial year. In addition to this, there will be an extraordinary dividend of 50 euro cents per share arising from the sale of TSB, which is expected to be paid in the second quarter of the year. Altogether, shareholder remuneration over a 12 month period will amount to approximately 4 billion euros.

As usual, this shareholder remuneration charged to 2025 profits must be ratified by shareholders at the Annual General Meeting.

Share buyback

A share buyback is a beneficial tool for shareholders for several reasons. For instance, by reducing the number of shares in circulation, future profits are distributed among fewer shares, meaning that each shareholder receives a larger portion of those profits.

In addition, companies that carry out this type of operation tend to have a better share price performance than those that do not.

Likewise, buybacks allow shareholders to benefit from the Bank’s strong results without incurring an immediate tax burden, unlike cash dividends, which are subject to taxation at the time they are received.