Banco Sabadell's asset quality improved despite NII decrease

Banco de Sabadell reported a strong first quarter in 2025, with performing loans up 5% and customer funds increasing by over 6%. The bank's asset quality improved significantly, with the non-performing loan (NPL) ratio dropping to a new low of 2.67%, leading to a reduced cost of risk at 35 basis points. Despite the positive trends, the bank's net interest income (NII) decreased by 1.3% year-on-year, according to the Q1 2025 earnings call.