Sabadell's Q3 Net Profit Falls 77% as Provisions Rise, Beats Forecast

Banco Sabadell’s third-quarter net profit fell 77% from a year ago due to higher provisions, and the Spanish lender on Friday announced an efficiency plan, entailing yet unspecified job cuts in Spain, to counter the impact of the coronavirus pandemic, Reuters reported. Overall loan loss provisions in the July-September period rose to 302 million euros ($357 million) from 194 million euros a year ago. Still, Spain’s fifth-largest lender beat market expectations thanks to a recovery in its banking activity, both in new mortgage and consumer lending. Analysts surveyed by Reuters had expected a net profit of 13 million euros. In an attempt to offset the impact from the COVID-19 pandemic, banks are focused on cutting costs, either on a standalone basis or through tie-ups. Read more