BBVA's Sabadell Offer Adjustment Has Negative CET1 Ratio Implications -- Market Talk

Dow Jones10-02

0938 GMT - The introduction of a cash component in BBVA's takeover offer for Sabadell has an additional negative impact for its CET1 ratio, which measures its capital against its risk-weighed assets, CaixaBank says in a research note after the Spanish lender adjusted the terms to include dividend payments. The adjustment was foreseen in the preliminary offer announcement but does imply that BBVA's CET1 ratio will have an extra 7bps negative impact on top of the 30bps negative impact initially mentioned, analyst Carlos Peixoto writes. "As consequence, it also erodes the bid's return on invested capital from the 20% announced by the bank to circa 16%, according to our maths," he notes. Yet, it also improves the bid's EPS accretion by around 0.5 percentage points against the 3.5% announced by BBVA, he adds. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

October 02, 2024 05:39 ET (09:39 GMT)

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The adjustment was foreseen in the preliminary offer announcement but does imply that BBVA's CET1 ratio will have an extra 7bps negative impact on top of the 30bps negative impact initially mentioned, analyst Carlos Peixoto writes. \"As consequence, it also erodes the bid's return on invested capital from the 20% announced by the bank to circa 16%, according to our maths,\" he notes. Yet, it also improves the bid's EPS accretion by around 0.5 percentage points against the 3.5% announced by BBVA, he adds. (elena.vardon@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  October 02, 2024 05:39 ET (09:39 GMT)\n</p>\n<p>\n  Copyright (c) 2024 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>BBVA's Sabadell Offer Adjustment Has Negative CET1 Ratio Implications -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBBVA's Sabadell Offer Adjustment Has Negative CET1 Ratio Implications -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-02 17:39 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://dowjonesnews.com/newdjn/logon.aspx?AL=N><strong>Dow Jones</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>0938 GMT - The introduction of a cash component in BBVA's takeover offer for Sabadell has an additional negative impact for its CET1 ratio, which measures its capital against its risk-weighed assets, ...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BBVA","symbol_name":"西班牙外换银行","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2472512778","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2472512778","pubTimestamp":1727861940,"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0938 GMT - The introduction of a cash component in BBVA's takeover offer for Sabadell has an additional negative impact for its CET1 ratio, which measures its capital against its risk-weighed assets, CaixaBank says in a research note after the Spanish lender adjusted the terms to include dividend payments. 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