42
BUSINESS AREAS 2Q09
The United States
The United States highlights in the
second quarter
• Recurrent revenues.
• Excellent performance of operating costs.
• The SBA named BBVA Compass the best bank for lending
to small businesses in the country.
• The Banker award for banking technology innovation at
BBVA Compass.
Short term indicators in the second quarter of 2009
indicate that the US economy declined for the third
quarter in a row. However, the turndown is slower than it
was in the first quarter of the year. Job destruction has
eased to 1.3 million jobs from 2 million in the previous
quarter according to the non-farm payroll data. Although
personal consumption expenditures remained weak, they
have increased compared to the first quarter.
While non-residential investment continues to deteriorate,
residential investment may have stabilized further in the
second quarter. Average existing home sales rose, primarily
driven by increasing affordability as ongoing foreclosures
push down prices. Meanwhile, the declining trend in new
home sales slowed down, but sales remain more than 30%
below those of last year. In contrast, both imports and
exports continue to be pulled down by faltering demand
both at home and abroad.
Even though there are signs that economic contraction is
beginning to ease, the economy remains extremely weak. In
order to provide monetary stimulus, the Federal Reserve has
continued to purchase assets as announced in the first
quarter. This expansionary monetary policy, along with
government and Treasury’s stimulus plans, will counteract
the downward pressures on inflation due to ongoing
economic slack. Nevertheless, inflation is expected to remain
low in the near future, prompting the Federal Reserve to
The United States. Operating income
(Million euros at constant exchange rate)
205 210
1Q 2Q 3Q 4Q
1Q
2Q
2008
2009
(1) At current exchange rate: +17.4%.
177
+2.3% (1)
415 425
169
199
226
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.
keep interest rates unchanged for a prolonged period of
time. With respect to BBVA Compass’ operating arena, 2009
and 2010 forecasts indicate that growth in the area will be
higher than the USA average, Texas being the only State in
the region with positive actual GDP growth in 2009.
The dollar has strengthened by 11.5% against the euro over
the last twelve months, ending June with an exchange rate
of 1.41 dollars per euro. The average exchange rate recorded
an appreciation of 14.8% year on year, to 1.33 dollars per
euro. This performance has a positive impact on the figures
booked to the consolidated balance sheet and income
statement. The following comments all refer to year-on-year
change at constant rates unless specifically stated otherwise.
In respect to activity, BBVA USA has shown a 2.9%
year-on-year growth in its customer lending, which reached
€30,223m, and customer deposits remained stable, at
€25,377m. Asset quality compares favourably with the
latest data published for the system; the NPA ratio for
BBVA Compass stood at 4.3% at the end of June 2009,
with a coverage ratio of 50%.
The higher business volumes have underpinned the excellent
performance of the net interest income, which rose to
The United States. Net attributable profit
(Million euros at constant exchange rate)
188
94 93
1Q 2Q 3Q 4Q
1Q
2Q
2008
2009
(1) At current exchange rate: –48.1%.
23
30-06-09
–54.8% (1)
30,223 14.7 2.9 26,339
25,377 11.6 0.0 22,748
6.9 18.9
60.4 63.7
4.5 2.4
49 75
22
The United States
Δ%
41
Δ% (1)
85
30-06-08
43
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