Spanish bank Banco de Sabadell SA has registered a 59% drop in its net profit for the third quarter of 2009. The company has also issued warnings that the bad run is expected to continue in 2010 also.

Mr. Jaime Guardiola, Chief Executive Banco Sabadell made a statement that 2010 would going to be a difficult year and there would be considerable stress on banking sector. He also said that the lending margins would suffer and the banking activity would be weak.

Moreover, the banks still need to check out the faulty loans.