Sovereign Bancorp Cashes In: Fool by Numbers

On July 18, Sovereign Bancorp (NYSE: SOV) released second-quarter earnings for the period ended June 30.

• Total revenue increased 10.5% from the same quarter last year to $592.4 million. Non-interest income increased 3.3%, primarily because of a 16% rise in consumer and commercial banking fees.
• Net interest income rose 3.3% for the quarter, but net interest margin was reduced by 15 basis points because of a $1.2 billion financing transaction of an international bank.
• Sovereign Bancorp carries a Motley Fool CAPS rating of one star (out of a potential five). Its competitors -- KeyCorp (NYSE: KEY) and PNC Financial Services Group (NYSE: PNC) -- carry one- and two-star ratings, respectively, while Motley Fool Income Investor pick JPMorgan (NYSE: JPM) is currently rated three stars.

(Figures in millions, except per-share data)

Income Statement Highlights

	Q2 2007	Q2 2006	Change
Total Revenue	$592.4	$536.3	10.5%
Net Interest Income	$453.4	$438.8	3.3%
Net Profit	$150.2	($61.5)	N/A
EPS	$0.29	($0.15)	N/A

*Non-GAAP EPS as reported by the company.

Get back to basics with a look at the income statement.

Ratio Checkup

	Q2 2007	Q2 2006	Change*
Net Interest Margin	2.71%	2.86%	(0.15%)
Efficiency Ratio	52.29%	52.22%	0.07%
Nonperforming Assets / Assets	0.34%	0.29%	0.05%
Return on Average Assets	0.72%	(0.32%)	1.04%
Return on Average Equity	6.71%	(3.54%)	10.25%

*Expressed in percentage points.

Find out more about bank performance ratios.

Balance Sheet Highlights

Assets	Q2 2007	Q2 2006	Change
Investments	$14,102	$13,152	7.2%
Loans	$56,527	$61,610	(8.3%)

Liabilities	Q2 2007	Q2 2006	Change
Deposits	$49,845	$52,592	(5.2%)
Total Liabilities	$73,811	$80,092	(7.8%)

Learn about bank assets and bank liabilities.

Related Foolishness:

• Thank the Bank, Bankrate
• Foolish Forecast: Bank on Wells Fargo
• Small Bank, Big Potential
• Time to Turn the KeyCorp?
• JPMorgan's Credit Question Mark

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.