The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

BBVA fills a hole – now it’s Santander’s turn

Selling its US bank to PNC fixes BBVA’s capital problem and allows it to consolidate in Spain. Arch-rival Santander’s similar troubles may be harder to solve.

Dominic O'Neill on Europe 1920px.jpg

The €9.7 billion sale to PNC Financial Services of BBVA USA Bancshares has come not a minute too soon for BBVA, with it being one of the European banks hardest hit by Covid-19.

Although BBVA would never admit its financial position was weak, and indeed the buffer on top of its minimum requirement was already relatively high, investors simply didn’t believe that this was enough.

Before the uplift on Monday’s PNC news, its share price had fallen about 50% this year – even further than other European banks.

BBVA’s capital ratio, like that of fellow Spanish bank Santander, has long been relatively low.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree