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Stock exchange 17 Nov 2020

Historic rise in BBVA stock following announcement of sale of US subsidiary

Vela-Ciudad-BBVA

News of the sale of the US subsidiary to PNC strongly boosted BBVA's stock market performance. The market warmly received the deal with a rise in the stock price of 15.3% at close on November 16, the third highest in the bank's stock market history and a new record in outperformance by the European banking sector: the Dow Jones index for US banks scored just 3.3% in the session, 12 percentage points behind.

The deal involves the sale of the US subsidiary for US$ 11.6 billion (€9.7 billion, at an exchange rate of 1.2 dollars per euro) in cash. The transaction will have a positive impact on BBVA's fully loaded CET1 capital ratio of nearly 300 bp, or €8.5 billion of CET1 generation.

BBVA's stock market momentum continued throughout the day. The stock closed at €3.66, making for an historic revaluation of 15.3%. Since October 30, BBVA's shares rose 48.6% (compared to a 27% rise in the DJ Stoxx bank index). Hence the stock halved its decline since the beginning of the year, to -26.50%, in line with the fall in the DJ Stoxx for US banks over the same period (-26.2%).

At the close of yesterday's market, November 16, BBVA confirmed in a significant event (price-sensitive disclosure) that it had talked with negotiators acting for Banco de Sabadell.

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