The American fund BlackRock redoubles its investment bet for the Sabadell Bank in the midst of stock market fever by the financial sector given the uncertainty regarding a possible increase in rates. According to the records of the National Securities Market Commission (CNMV), the largest fund manager globally has declared a increase of its stake in the bank’s capital to 5.141%, valued at more than 270 million euros taking as a reference the price with which Sabadell has closed the trading day on Tuesday (0.93 euros per title), as published by El Periódico de España.
Before this move, BlackRock had 3.643%, being the third shareholder of the bank behind Mexican magnate David Martínez Guzmán (3.495%) and American businessman Lewis Sanders (3.473%). With this transaction, the fund becomes Sabadell’s largest shareholder, trading at January 2020 levels. What’s more, the bank is in one of your sweetest moments in the bag, following a considerable revaluation since the end of January of this year. In just two weeks, their securities have doubled in value from the 0.61 euros per share recorded on January 24, 2022.
Thus, little by little, it is approaching prepandemia levels, when Sabadell securities traded at 1.06 euros per share in 2019, but further away from the highs of 1.23 euros of the day of November 7, 2018. In any case, the bank’s securities carry in a significant way since the presentation of the financial results corresponding to the end of the year 2021, beating the forecasts of analysts.
Good results
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In this regard, the entity recorded a net profit of 530 million euros, compared to the two million profit of the financial year 2020 when the coronavirus pandemic broke out and the bank suffered millions in losses in its British subsidiary TSB. In fact, in recent months the possibility of selling his business in the United Kingdom has been raised, but its CEO, César González-Bueno, ruled out this option in the presentation of results, as well as the divestment of his private bank or a merger, while stating that he wanted to raise the bank’s dividend.
While last year the British subsidiary of the financial institution subtracted 220 million euros from the profit, during 2021 the business of TSB contributed 118 million euros. However, the benefit data is still far from the 730 million it recorded before the coronavirus pandemic. However, the entity achieved a return (measured in ROTE) of 5% and expects to ROTE above 6% in 2022, thus “reaching the profitability objectives of the strategic plan a year earlier”.
