BBVA USA operates chiefly in Alabama, Arizona, California, Colorado, Florida, New Mexico, and Texas.
BBVA has agreed to sell to PNC it’s subsidiary in the U.S. for $11.6 billion (€9.7 billion) in cash, an amount that represents 19.7 times the unit’s 2019 earnings, and that is almost 50% of BBVA’s current market capitalization, creating significant value for shareholders.
“This is a very positive transaction for all sides. PNC has recognized the great value of our unique client franchise and of our great team in the US, who will be part of a leading financial services group in the country,” said BBVA Group executive chairman Carlos Torres Vila. “The deal enhances our already strong financial position. We will have ample flexibility to profitably deploy capital in our markets strengthening our long-term growth profile and supporting economies in the recovery phase, and to increase distributions to shareholders.”
In the U.S., BBVA is a Sunbelt-based bank with more than €84,6 billion ($100 billion) in assets and 637 branches, with leading market shares in Texas, Alabama and Arizona. After the closing of the transaction, PNC, based in Pittsburgh, Pennsylvania, will become the country’s fifth-largest bank by assets. The transaction excludes the broker-dealer (BBVA Securities) and the branch in New York, through which BBVA will continue to provide corporate & investment banking services to its large corporate and institutional clients. It also excludes the representative office in San Francisco and the fintech investment fund Propel Venture Partners.