![]() Both of those are taken as one-time writedowns and significantly hurt earnings. The bank took a $470 million goodwill impairment charge at the end of 2019 and a $2.2 billion goodwill impairment in the first quarter of 2020. PNC is taking a credit mark of nearly 4%, meaning it is setting aside enough cash to cover potential future losses equivalent to 4% of BBVA's total loan book.īBVA USA has also been forced to write down the value of its goodwill, an intangible asset that essentially puts a price on aspects of the bank that are hard to value but nonetheless make the franchise more valuable. ![]() Those numbers are certainly nothing to rave about for a bank with over $100 billion in assets.Īdditionally, non-performing loans at BBVA USA made up 1.06% of total loans at the end of 2019 and 2% of total loans at the end of the third quarter of this year, both numbers that are high for the industry. Its adjusted return on tangible equity, a measure of the potential returns shareholders can expect on their equity investment, was 7.03% in 2019. Even before the coronavirus pandemic sent the banking sector into tailspin, BBVA USA reported an adjusted return on assets - a measure of how well a company uses its assets to generate profits - of 0.66% in 2019. BBVA USA has more than $100 billion in assets and a large presence in a number of states, but the division has not performed well when you look at metrics that bank investors value. ![]()
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