BBVA Compass’ 3Q profit increases 29 percent
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- Antrenise Cole
- Reporter- Birmingham Business Journal
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BBVA Compass Bancshares Inc. reported a 29 percent increase in its earnings for the third quarter, as it set aside less money to cover bad loans.
The Houston-based bank holding company for Birmingham's BBVA Compass reported $142.8 million in net income attributable to shareholder for the quarter ended Sept. 30, compared to the $110.6 million during the same period in the prior year.
Return on average assets and return on average tangible equity for the third quarter of 2014 were 0.73 percent and 8.48 percent, respectively.
The company's provisions for loan losses, an expense that is reserved for defaulted loans or credits, dropped 90 percent to $3.9 million for the quarter, compared to $37.5 million a year earlier.
Total revenue was $698.5 million for the third quarter, down 2 percent over the prior year as net interest income dipped 4 percent to $482 million and noninterest income, or fee income, rose 3 percent to $216.6 million.
The company reported a $9.7 million investment securities gain in its noninterest income for the third quarter.
Noninterest expense, which includes salaries and benefits, increased by 2 percent to $533.1 million.
Its ending balance for total loans was $55.2 billion as of the end of the third quarter, up from $49.5 billion reported in the previous year.
Total deposits climbed to $60.3 billion as of Sept. 30, compared $52.2 billion a year earlier.
"BBVA Compass' strong financial performance this quarter is tied to our focus on our customers and our ability to quickly adapt to meet their rapidly changing needs," said Manolo Sanchez, chairman and CEO of BBVA Compass. "Loan and deposit growth was diversified across both commercial and consumer portfolios, with total loans increasing 12 percent and total deposits increasing 15 percent. Low interest rates are still impeding revenue growth throughout our industry, but we're well-positioned to benefit when they increase. Our efforts to diversify and expand our fee-based businesses are evident as well, with noninterest income rising 4 percent."
Antrenise Cole covers banking, finance, small business lending, venture capital, accounting and law for the Birmingham Business Journal. Click here to follow her on Twitter.
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