World News – US – BBVA USA back in the dark

Houston-based parent company BBVA USA reported net income after three quarters in the red as interest charges fell and the bank pulled more money from fees

BBVA USA Bancshares reported third quarter net profit of $ 166 million, up from $ 183 million in the same quarter a year earlier

« During the third quarter, we achieved strong results while continuing to successfully address the challenges our customers, communities and employees face as a result of the COVID-19 pandemic, » said Javier Rodríguez Soler, CEO of the bank a statement

With the fall in interest rates, the cost of borrowing for the bank has also fallen; BBVA’s total interest expense fell to $ 80 million, from $ 132 million in the previous quarter and $ 252 million the year before

The bank’s non-interest income – money from fees on deposit accounts and fees for services such as credit card processing, investment banking and advice – rose to 285 million dollars, up from $ 272 million the previous quarter Part of the reason for this is a partial recovery in consumer spending, which fell in the second quarter as the pandemic rocked the economy When consumer spending declines, banks charge lower service charges on deposit accounts and lower credit card processing fees

However, mortgage conditions in the bank’s portfolio are deteriorating as the recession has made it difficult to repay debt for both commercial and residential homeowners The bank said more than $ 25 million in commercial real estate loans were at least 30 days past due in the third quarter, up from $ 11 million in the second quarter More than $ 177 million in residential mortgages were at least 30 days past due in the quarter, up from $ 106 million in the second quarter

RUNE Schuetz covers real estate for the Houston Chronicle Before joining The Chronicle, she wrote articles for the Hearst Connecticut Media Group

BBVA USA, Finance, Financial Services, Banco Bilbao Vizcaya Argentaria, Houston