Sovereign Bancorp Suffers: Fool by Numbers (SOV)

Sovereign Bancorp Suffers: Fool by Numbers

By Motley Fool Contributors | More Articles
October 19, 2007 | Comments (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.

Related Foolishness:

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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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