higher (€35m without the effect of the exchange rate) than
in the first quarter of 2009, and is clearly lower than the
amounts recorded in the third and fourth quarters of 2009.
The above established a positive attributable profit of
€54m.
BBVA COMPASS BANKING GROUP
BBVA Compass represents approximately 53% of total
BBVA USA assets with the new area structure and garners
the retail and SME banking business in the United States
(excluding Puerto Rico).
The strength of the entity’s operating result is also worth
mentioning. In this regard, the 11.3% year-on-year
increase in lending to customers to €32,195m as of
31-Mar-2010, together with an excellent growth of
deposits, rising 31.9% to €33,194m, allow the gross
income to reach €517m: 10.7% more than at the same
time in 2009. Operating income totaled €197m, for a
16.0% growth. Deducting the impairment losses on
financial assets and provisions (net) and other gains
(losses), BBVA Compass closed the first quarter with a net
attributable profit of €26m.
As of 31-Mar-2010, Corporate and Commercial Group
(CCG) managed a loan portfolio of €19,906m, after a
22.4% increase from the previous year. Likewise, deposits
rose 18.0% to €9,578m. This deposit growth has been
driven by non-interest bearing deposits that have
experienced exceptional growth of 51.1% over March
2009. This has been primarily the result of strong
correspondent banking efforts and increases in several
large relationships within CCG.
Retail Banking had a loan portfolio of €9,461m, down
3.6% from a year ago. Planned run-off in the Indirect Auto
Dealer and Student Lending portfolios was mostly offset by
an increase in residential real estate. During the first
quarter, $338m in new mortgages were generated, for a
significant increase over 31-Mar-2009. Customer funds
totaled €19,913m which also experienced considerable
year-on-year growth of 43.8%.
Wealth Management managed a €2,214m loan portfolio.
This was up 9.7% over March 31, 2009. Deposits were
€3,490m, rising 25.3% from the previous year. The
market-linked Standard & Poors Power CD product has
generated in excess of US$138m in new deposits since its
launch in March 2009. As of 31-Mar-2010, assets under
management were €12,610m, up 11.1% over last year.
WHOLESALE BANKING
The Wholesale Banking (WB) business in the United States
is currently centered in the Spanish Parent Company’s
branch in New York and represents approximately 17.0%
of lending and 47.1% of Group customer funds in the
country. It includes business with corporations and their
subsidiaries, as well as Treasury Offices and the Trade
Finance and Investment Banking units.
In general, activity in New York adheres to the same
parameters as the rest of the Group’s WB units, with a
focus on customers with greater added value and loyalty,
price management and cross-selling, with special attention
to risk-adjusted return on capital over any volume or
market share objectives. Thus, despite the positive effect of
the exchange rate, lending contracted 27.4% as compared
to the first quarter of 2009, while gross income went down
by 18.5%. NPA ratio in this unit is practically
non-existent, at 0.4%, and loan-loss provisions, at €4m, is
lower than in 2009. Consequently, net attributable profit
dropped €5m as compared to the same time in 2009.
OTHER UNITS
As of March 31, 2010, BBVA Puerto Rico managed a loan
portfolio of €3,018m, down 9.8% from a year ago.
Customer deposits were €1,638m, growing 9.4% from last
year. Operating income slightly exceeded that of the same
time in 2009 and stands at €18m due primarily to efforts
to reduce costs. Lower impairment losses on financial
assets (down 5.3% year-on-year) allowed for growth in the
net attributable profit, which rose to €5m despite the
increase of the tax rate (growth of profit before tax stands
at 4.2%).
Finally, BTS reported a net attributable profit of €3m,
down €0.9m from the previous year. Revenues dropped in
the quarter as the number of transactions declined 6%.
| 1Q10 |
47
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