Sabadell Pledges Higher Returns, Payouts to Keep BBVA at Bay (1)

Banco Sabadell SA raised a key profitability goal and vowed to return billions to shareholders, as it seeks to persuade them to reject an unsolicited takeover by bigger rival BBVA SA.

Sabadell pledged to pay out €6.3 billion ($7.4 billion) via dividends and buybacks in the three years through 2027, when Spain’s fourth-largest bank expects to achieve a return on tangible equity of 16%, compared with a previous target of around 14% for this year.

Led by Chairman Josep Oliu and Chief Executive Officer Cesar Gonzalez-Bueno, Sabadell has been defending itself from a takeover for more than a ...