The PNC Financial Services Group, Inc. ( PNC Quick Quote PNC - Free Report) has completed the previously announced merger with BBVA, S.A.’s ( BBVA Quick Quote BBVA - Free Report) subsidiary BBVA USA Bancshares, Inc. including its U.S. banking unit BBVA USA. The transaction is already effective Jun 1, 2021.
The deal with BBVA USA, which is part of PNC’s efforts to expand its presence in the international markets, was announced in November 2020.
Notably, the acquisition positions PNC as the fifth largest commercial bank in the United States (in terms of assets and presence) with assets worth above $560 billion and a national franchise accommodating a full spectrum of products and services to retail customers and business clients in 29 of the top 30 largest markets in the country.
CEO and president William S. Demchak stated, “Our acquisition of BBVA USA accelerates our national expansion and positions us to increase shareholder value over time by bringing our industry-leading technology and innovative products and services to new markets and clients."
PNC will update its BBVA USA customers with relevant information on the expected conversion of their accounts in October 2021. Until then, customers will continue to be assisted through their respective BBVA USA and PNC branches, websites, mobile applications, financial advisors and relationship managers.
The acquisition and merger between BBVA USA and PNC will likely open up a pool of opportunities and boost shareholder value. Aided by its solid liquidity position, PNC is consistently making strategic investments. With these acquisitions, the company can expedite the expansion of its customer base and geographical presence.
Markedly, it plans to extend the reach of its middle-market corporate banking franchise to uncharted territories and broaden its retail banking brand, nationally. Thus, the company’s bottom line is likely to get further support if it continues to make strategic investments.
Moreover, the combined entity will likely give tough competition to some of the nation’s biggest banks, namely
Truist Financial Corporation ( TFC Quick Quote TFC - Free Report) and U.S. Bancorp ( USB Quick Quote USB - Free Report) in terms of assets per branch.
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