The United States highlights in
the first quarter
• Successful completion of the integration of Guaranty in
BBVA Compass, in record time.
• The incorporation of the Wholesale Banking business
carried out in the country is yet another step in the
construction of the US franchise.
• Positive behavior of operating results.
This area encompasses the Group’s business in the United
States and in the Commonwealth of Puerto Rico.
Moreover, it incorporates the assets and liabilities of
BBVA’s office in New York, previously recorded under
WB&AM, and which garners the activity carried out with
large corporations and businesses in New York and the
business of markets and distribution in the same area.
Moving into 2010, the U.S. economy is slowly pulling
itself out of the severe recession that began in December
2007. The economy started to recover in the second half
of 2009 with GDP growing at an average annual rate of
3.9%. Consumer demand began to pick-up, as did
business investment in equipment and software.
Furthermore, residential investment grew in 3Q09 for the
first time since 1Q06, and is expected to continue rising,
but at a slower rate. Real estate demand remains weak,
but the fall in prices and mortgage rates are positive
factors that stimulate real estate business and, thus, new
construction. Moreover, economic growth in emerging
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 Bancomer’s Market unit repos.
markets, especially in Asia, has positively impacted
exports.
The economy has shown signs of widespread improvement,
but concern lies in the pace of recovery as there are many
challenges that still need to be overcome. Consumer
spending will be essential in determining the speed of the
economic recovery. Consumption grew for three of the four
quarters in 2009 and recent retail sales and GDP
consumption data indicate that it will rise in 1Q10 as well.
Nevertheless, consumer spending will face two main
challenges: household deleveraging and unemployment.
Consumer credit has dropped for the eleventh straight
month, limiting consumers’ purchasing power.
(1)
31-03-10 Δ% Δ% 31-03-09
Furthermore, even amid some positive signals in the labor
market, such as job creation in the temporary help services
sector, the unemployment rate is expected to remain high.
This could be because businesses are addressing the recent
increase in demand by raising productivity of current
workers. If the rising trend in productivity persists, it could
The United States
42,406 (0.7) 0.5 42,721
65,866 17.4 18.9 56,091
7.5 9.2
58.7 58.8
4.4 2.9
56 55
| 1Q10 |
45
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