44
BUSINESS AREAS 3Q09
The United States
The United States highlights in the
third quarter
• Making the most of opportunities: the Guaranty
acquisition has given BBVA Compass a higher profile
in the Sunbelt area.
• Excellent operating-cost performance based on the
integration process.
• Improvement of the area’s operating income, with a
year-on-year increase of 13.8%.
• Business volumes remained flat over the previous
year, despite the significant economic slowdown
during the period.
Economic activity contraction has eased since the first
half of 2009. With improvements in the latest data,
third-quarter GDP is expected to rise for the first time
since the fourth quarter of 2007, although future
economic growth is expected to be slow and wrought
with uncertainty.
The government launched the popular Cash for
Clunkers program in July as part of the American
Recovery and Reinvestment Act, which resulted in
700,000 new car deals. This program has had a visible
impact on personal outlays, which could activate
consumption. However, the labour market is expected
to remain weak and consumers’ debt overhang will
continue to dampen household spending.
The residential real estate market has also received a
boost from deep price discounts, tax credit for first-time
buyers and favourable mortgage rates. This is causing
new and existing home sales to rise, although residential
investment will remain subdued due to excess
The United States. Operating income
(Million euros at constant exchange rate)
200 205
(1) At current exchange rate: +26.7%.
173
165
1Q 2Q 3Q 4Q
1Q
2Q
3Q
2008
2009
+13.8% (1)
578 657
194
220
243
Relevant business indicators
(Million euros and percentages)
Customer lending (gross)
Customer deposits (2)
ROE (%)
Efficiency ratio (%)
NPA ratio (%)
Coverage ratio (%)
(1) At constant exchange rate.
(2) Excluding deposits and Market unit repos.
inventories of existing homes. Non-residential
investment (NRI) is expected to contract at a slower
rate. Corporate profits are improving on a quarterly
basis. Furthermore, economic indicators are pointing to
growth in the manufacturing sector. Nevertheless, the
deterioration of commercial real estate due to falling
rents could put downward pressure on the structures
component of NRI.
Exports are one component that may be outperforming
expectations, which could help strengthen the US
recovery process. In particular, exports to China have
increased significantly since they hit a low in January
2009.
Lastly, the Federal Reserve’s expansionary monetary
policy and asset purchase program have aided in
slowing economic contraction and stabilizing the
financial markets. Although the Fed forecasts economic
growth to take hold in the second half of 2009, its
expectation of a slow recovery due to abundant
The United States. Net attributable profit
(Million euros at constant exchange rate)
92 91
(1) At current exchange rate: —44.1%.
40
22 22
20
1Q 2Q 3Q 4Q
1Q
2Q
3Q
2008
2009
30-09-09
—49.8% (1)
205 103
34,598 14.4 17.2 30,231
32,607 29.5 32.5 25,188
5.5 14.2
59.4 65.0
3.9 2.7
43 73
The United States
Δ%
Δ% (1)
42
30-09-08
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