Pandemic Hits BBVA Numbers but Recovery in Progress

BBVA USA Bancshares Inc. today reported third quarter net income of $166 million, a huge improvement on its second quarter $124 million net loss, but still short of third quarter 2019 net income of $183 million.

BBVA USA, which maintains its headquarters in Birmingham, is Alabama’s second-largest bank by total assets.

ā€œFor the first nine months of 2020, the company reported a net loss of $2.2 billion,ā€ BBVA reported in its third quarter results media statement. ā€œIncluded in the first quarter of 2020 was a non-cash, goodwill impairment charge of $2.2 billion that reflected the drastic change in macroeconomic conditions and forecasts brought about by the COVID-19 pandemic and subsequent decline in interest rates and oil prices. Excluding the impact of this non-cash charge, the adjusted net loss for the first nine months of 2020 was $10 million, further reflecting the decline in interest rates and higher provision expense necessary to reflect the economic and business disruption caused by the pandemic.ā€

“During the third quarter we delivered solid results while continuing to successfully navigate the challenges to our customers, communities and our employees brought about by the COVID-19 pandemic,” said Javier RodrĆ­guez Soler, president and CEO of BBVA USA.

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Full financial information is available here.

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