Sabadell Bank has posted record profits for 2024 and plans to reward shareholders with €3.3 billion, including over €1 billion in share buybacks.

On Friday, the bank announced a full-year profit of €1.83 billion, up 37% from 2023. In the fourth quarter, earnings rose 19% to €532 million.

Sabadell increased its payout plan from €2.9 billion to €3.3 billion for 2024 and 2025. Shareholders will receive cash dividends of 20.44 cents per share in 2024, with similar amounts expected in 2025. Over two years, payouts will total about 61 cents per share.

A Strong Year for Sabadell

Chairman Josep Oliu called the payout “unprecedented”, saying no other Spanish bank has offered a similar return. CEO César González-Bueno praised the bank’s “extraordinary growth path” and focus on long-term stability.

Sabadell credited its growth to strong lending in Spain and rising profits from its UK subsidiary, TSB Bank. TSB’s net profit jumped 18.9% to £208 million, contributing €253 million to Sabadell Group’s earnings—its highest since 2015.

The bank’s net interest income rose 6.3%, reaching €5.02 billion in 2024, driven by higher loan rates and strong demand.

BBVA Takeover Battle

Sabadell’s success comes amid a hostile takeover attempt by BBVA, its larger rival. This is BBVA’s second bid in four years.

Sabadell has rejected the offer, arguing it undervalues the bank. Supporters of a merger say it could boost Spain’s economy, but critics fear it may harm competition.

Spain’s antitrust regulator, CNMC, is still reviewing the deal, delaying a decision until late 2025. Analysts say the delay is bad for BBVA, as regulators may demand more concessions.

Spain’s government initially opposed the merger, but Prime Minister Pedro Sánchez later said the CNMC will make the final call. However, the government can still block the deal.

To strengthen its independence, Sabadell recently moved its headquarters back to Catalonia. The higher shareholder payouts are also seen as a defensive move, proving Sabadell can thrive alone.