Sovereign Bancorp Suffers: Fool by Numbers
By Motley Fool Contributors
October 19, 2007
Recommended (0)
On Oct. 17, Sovereign Bancorp (NYSE: SOV) released earnings for the third quarter ended Sept. 30.
- Profit dropped 68% thanks to credit losses in the auto lending and home equity portfolios.
- Sovereign Bancorp and competitors KeyCorp (NYSE: KEY) and PNC Financial Services (NYSE: PNC) are not rated highly by the Motley Fool CAPS community, which includes more than 70,000 investors rating more than 5,000 companies. Sovereign earns one star out of five, as does KeyCorp, while PNC earns two stars.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q3 2007
|
Q3 2006
|
Change
|
|
Net Interest Income
|
$456.8
|
$491.8
|
(7.1%)
|
|
Net Profit
|
$58.2
|
$184.0
|
(68.4%)
|
|
EPS
|
$0.11
|
$0.37
|
(70.3%)
|
*
Non-GAAP EPS as reported by the company.
Get back to basics with a look at the income statement.
Ratio Checkup
|
Q3 2007
|
Q3 2006
|
Change*
|
|---|
Net Interest Margin
|
2.74%
|
2.64%
|
0.10%
|
Efficiency Ratio
|
57.12%
|
53.01%
|
4.11%
|
Nonperforming Assets / Assets
|
0.39%
|
0.30%
|
0.09%
|
Return on Average Assets
|
0.28%
|
0.81%
|
(0.53%)
|
Return on Average Equity
|
2.63%
|
8.47%
|
(5.84%)
|
*Expressed in percentage points.
Find out more about bank performance ratios.
Balance Sheet Highlights
Assets
|
Q3 2007
|
Q3 2006
|
Change
|
|---|
Investments
|
$15,290
|
$13,842
|
10.5%
|
Loans
|
$57,148
|
$63,178
|
(9.5%)
|
Liabilities
|
Q3 2007
|
Q3 2006
|
Change
|
|---|
Deposits
|
$50,098
|
$52,784
|
(5.1%)
|
Total Liabilities
|
$77,735
|
$81,466
|
(4.6%)
|
Learn about bank assets and bank liabilities.
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