Net Interest Income: The net interest income is projected to decrease from 3,773 mln EUR in the actual year to 3,149 mln EUR in the baseline scenario and further to 2,822 mln EUR in the adverse scenario.
Gains/Losses: There is a decline in gains on financial assets from 216 mln EUR to 114 mln EUR in the baseline scenario and a slight increase to 86 mln EUR in the adverse scenario.
Impairment Reversals: The impairment on financial assets is expected to increase from -1,221 mln EUR to -2,597 mln EUR in the adverse scenario.
Profit/Loss: The bank is projected to show a profit in the baseline scenario but experience a significant loss in the adverse scenario, dropping from 805 mln EUR to -1,285 mln EUR.
Capital Ratios:
The Common Equity Tier 1 ratio decreases from 13.44% to 8.40% in the adverse scenario.
The fully loaded Common Equity Tier 1 ratio also declines from 12.79% to 7.58%.
The leverage ratio is projected to fall from 4.97% to 3.25% in the adverse scenario.
The fully loaded leverage ratio drops from 4.95% to 3.25%.
Coverage Ratio and Non-performing Exposures
The coverage ratio for non-performing exposures is expected to increase in the adverse scenario, from 38.98% to 49.41%.
This indicates a higher proportion of capital is allocated to cover non-performing exposures under stress conditions.
Country-Wide Summary (Spain)
Metric
Baseline Scenario
Adverse Scenario
IRB Total (mn EUR)
107,323
107,323
Performing Exposure (mn EUR)
107,323
107,323
Non-performing Exposure (mn EUR)
7,973
7,973
Stock of Provisions (mn EUR)
4,718
4,718
Of which: from non-performing exposures (mn EUR)
4,718
4,718
Coverage Ratio - Non-performing exposures (%)
49.7%
49.7%
Country-Wide Summary (United Kingdom)
Metric
Baseline Scenario
Adverse Scenario
IRB Total (mn EUR)
39,086
39,086
Performing Exposure (mn EUR)
39,086
39,086
Non-performing Exposure (mn EUR)
472
472
Stock of Provisions (mn EUR)
198
198
Of which: from non-performing exposures (mn EUR)
198
198
Coverage Ratio - Non-performing exposures (%)
52.1%
52.1%
Country-Wide Summary (United States)
Metric
Baseline Scenario
Adverse Scenario
IRB Total (mn EUR)
1,949
1,949
Performing Exposure (mn EUR)
1,949
1,949
Non-performing Exposure (mn EUR)
1
1
Stock of Provisions (mn EUR)
38
38
Of which: from non-performing exposures (mn EUR)
38
38
Coverage Ratio - Non-performing exposures (%)
52.1%
52.1%
Country-Wide Summary (N.A.)
Metric
Baseline Scenario
Adverse Scenario
IRB Total (mn EUR)
34
34
Performing Exposure (mn EUR)
34
34
Non-performing Exposure (mn EUR)
0
0
Stock of Provisions (mn EUR)
0
0
Of which: from non-performing exposures (mn EUR)
0
0
Coverage Ratio - Non-performing exposures (%)
52.1%
52.1%
Summary of Key Points
The 2018 EU-wide Stress Test evaluates the resilience of Banco de Sabadell S.A. and other banks in the EU under both baseline and adverse scenarios.
Banco de Sabadell S.A. shows a significant decline in profit under the adverse scenario, with a loss of -1,285 mln EUR.
The Common Equity Tier 1 ratio drops from 13.44% to 8.40%, and the leverage ratio falls from 4.97% to 3.25% under adverse conditions.
The coverage ratio for non-performing exposures increases in the adverse scenario, indicating the bank's ability to absorb losses improves.
Spain has the highest IRB total at 107,323 mln EUR, while the United Kingdom and United States have significantly lower totals, with the U.S. being the smallest at 1,949 mln EUR.
The non-performing exposure is relatively low in all countries, but the coverage ratio varies across the EU, with Spain having the highest at 49.7%.
