BBVA capital buffer will swell to 600bp on sale of US unit

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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