Sabadell Sees Bright Future as ECB Interest Rate Hikes Loom

The CEO of Banco Sabadell, Marc Armengol, believes that the bank's improved income and profitability are due to Spain's strong economy and future interest rate hikes from the European Central Bank (ECB).

Armengol stated that the rise in interest rates will increase the bank's interest margins, which were reduced by 2% in the first half of 2026. The executive also emphasized that the bank is seeing a 'very strong' advance in volumes due to Spain's good economic performance and its attractive value proposition.

In terms of mortgage business, Armengol acknowledged that competitive pressure remains aggressive, but the bank has found success by cross-selling products to clients, which increases profitability. The CEO also confirmed a 'very solid, double-digit advance' in consumer credit and stated that the bank is increasing its activity with pre-approved loans.