In 2020, when BBVA and Sabadell deserted merger discussions, it was troublesome to search out buyers with something optimistic to say about European banks. A decade of near-zero rates of interest, stiff regulation and anaemic financial progress had made them unprofitable and unattractive. The 2 Spanish lenders had been no exception. BBVA had a market worth of €26bn ($32bn), lower than 40% of its 2007 peak. At €2bn, Sabadell was price solely a fifth of the accounting (“guide”) worth of its fairness.
