BBVA capital buffer will swell to 600bp on sale of US unit
Spanish lender targets 11.5-12% CET1 ratio
By offloading its US lending business, Spanish bank BBVA will see its core capital ratio improve by around 285 basis points, providing it with a 600bp buffer above its minimum requirement.
As of end-2020, the bank’s Common Equity Tier 1 (CET1) capital ratio was 11.73%. Had the sale of BBVA USA to US lender PNC completed, though, it would have been 14.58%, almost one-quarter higher. Its regulator-set minimum requirement is 8.59%, meaning once the sale is finalised its buffer will be around 600bp
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