Sabadell's CEO, Cesar Gonzalez-Bueno, announced that the bank could potentially earn over 1.6 billion euros in net profit for 2024 if it continues its strong performance from the first half of the year. In July, the bank had initially forecasted a net profit exceeding 1.4 billion euros, with a target return on tangible equity ratio of over 13%. His recent comments indicate optimism, as the bank reported 791 million euros in profit for the first half of 2024 and aims to maintain this momentum.
Meanwhile, Sabadell is facing a hostile takeover bid from its rival, BBVA, which is offering approximately 12 billion euros for the bank. Initially, BBVA proposed to exchange one newly-issued BBVA share for every 4.83 Sabadell shares, offering a 30% premium on Sabadell's share price as of April 29. However, with Sabadell recently paying an interim dividend, BBVA adjusted its offer, now proposing one BBVA share for every 5.0196 Sabadell shares to account for the dividend payment.
BBVA's offer has been further adjusted due to its upcoming interim dividend payment and changes in its stock price. With BBVA shares declining from 10.90 euros to 9.334 euros since the offer was first made, the current premium is down to 3.3%, valuing Sabadell at around 10 billion euros. The adjusted bid includes one BBVA share and 0.29 euros in cash for every 5.0196 Sabadell shares, reflecting fluctuations in the market and dividend adjustments.
