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PNC - PNC Financial Services Inc News Story

$198.56 -0.4  -0.2%

Last Trade - 10/05/21

Sector
Financials
Size
Large Cap
Market Cap £60.48bn
Enterprise Value £79.60bn
Revenue £12.10bn
Position in Universe 148th / 6854

UPDATE 1-BBVA says will invest additional cash from U.S. sale to cut costs

Tue 20th April, 2021 1:12pm
(Adds details from unions)
    By Jesús Aguado and Emma Pinedo
    MADRID, April 20 (Reuters) - The chairman of Spain's BBVA
 BBVA.MC  Carlos Torres on Tuesday said any extra capital the
bank would earn from the sale of its U.S. business in 2020 would
be deployed to cut costs and invest in profitable growth.
    In November last year, BBVA sold its U.S. unit to PNC
 PNC.N  generating around 8.5 billion euros and the market has
been expecting the lender to partly use the cash to finance cost
cutting in Spain and to buy back as much as 10% of its
outstanding shares.  urn:newsml:reuters.com:*:nL4N2I204Z
    "This additional capital opens the door to profitable
growth, and allows us to invest in further cost reduction, and
to become more efficient in the markets in which we operate,
strengthening our leadership position," Torres told a remotely
held shareholders' meeting.  urn:newsml:reuters.com:*:nL8N2M642V
    BBVA has started talks to cut staff in Spain to better cope
with stubbornly low interest rates and a shift towards online
banking.  urn:newsml:reuters.com:*:nL8N2M642V
    Other lenders, such as competitors Santander  SAN.MC  and
Caixabank  CABK.MC , are following the same path.  urn:newsml:reuters.com:*:nL1N2IW0DH 
    On Tuesday, union Comisiones Obreras (CCOO) said that
Caixabank was planning to cut around 19% of its workforce in
Spain and more than a quarter of its branches.  urn:newsml:reuters.com:*:nL8N2MD32L
    BBVA, which has so far declined to disclose the number of
jobs likely to be affected, has said that layoffs would take
place both at its corporate centre in Madrid and across its
retail network in Spain, where 23,300 employees are working.
    Unions took to the centre stage on Tuesday at the
shareholders' meeting fearing thousands of job cuts.
    "It is hard to accept that, after a particularly difficult
year for BBVA staff, who have excelled as essential personnel
during the pandemic, their efforts are being paid back with
massive lay-offs," Isabel Gil Delgado, representative of CCOO
said in statement that was read out loud by BBVA staff during
the meeting.
    Beside from the approval of the share-buy back programme,
shareholders are also expected to sign off on the announced
dividend policy for 2020 and 2021.  urn:newsml:reuters.com:*:nL1N2LD246 urn:newsml:reuters.com:*:nS0N2HG02F

 (Reporting by Jesús Aguado and Emma Pinedo; editing by Inti
Landauro and Louise Heavens)
 ((emma.pinedo@thomsonreuters.com; +918 35 68 34;))
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