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:

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.


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