Gains on preference share buy-backs and sale and leaseback transactions boost profit
Spanish bank Banco de Sabadell buys back part of its preference shares issued in 2006 and enters into sale and leaseback transactions, with €164 million gains arising that represent some 29% of pre-tax profit.
Issue of mandatorily convertible bonds increases equity by more than 10%
Spanish bank Banco de Sabadell classifies €500 million mandatorily convertible bonds as equity which increases by more than 10% but its disclosures to support this classification lack clarity.
