Following the relevant event released on November 16, 2020, BBVA announces on another relevant event filed with Spanish regulator CNMV that the conversations in relation to a potential merger transaction with Banco de Sabadell have come to an end without any agreement.
BBVA has agreed to sell to PNC its subsidiary in the U.S. for $11.6 billion (EUR9.7 billion-1) in cash, an amount that represents 19.7 times the unit's 2019 earnings-2, and that is almost 50% of BBVA's current market capitalization, creating significant value for shareholders. The transaction will have a positive impact on BBVA's fully loaded CET1 ratio of c.300 basis points, or EUR8.5 billion of CET1 generation.
BBVA earns EUR1.14 billion in 3Q20, 79 percent more than the previous quarter
BBVA earned EUR1.14 billion in the third quarter of 2020. It is the best quarterly result of the year and far exceeds the figure for 2Q20 (+79.5 percent in current euros, +83.4 percent at constant rates). Compared to the same period a year earlier, the 3Q20 result is 6.8 percent lower (+4.1 percent at constant rates). The strength of recurring revenues and cost containment efforts drove quarterly operating income to grow 13.5 percent yoy at constant exchange rates. In a challenging context marked by the pandemic, BBVA has shown a solid capacity to generate capital, with risk indicators having a positive performance. BBVA's quarterly results also beat market expectations by 48 percent, as analysts' consensus expected a result of EUR773 million.
(C) 2020 Electronic News Publishing, source ENP Newswire