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.

“For the first nine months of 2020, the company reported a net loss of $2.2 billion,” BBVA reported in its third quarter results media statement. “Included 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.”

“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 Rodríguez Soler, president and CEO of BBVA USA.

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Full financial information is available here.

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