book. However, higher provisions helped coverage
improve to 57%.
BBVA Compass banking group
BBVA Compass represents approximately 91% of total
BBVA USA assets. The comments on the area are
therefore totally applicable to this entity.
On 31st December 2009, loans were €31,194m (up
14.5% year on year). Customer funds rose 32.2% to
€31,064m. This reflected the incorporation of
US$7.5bn into the its loan book and US$11.4 bn into
its customer funds from Guaranty in August 2009.
Net interest income for 2009 was €1,389m. This was
9.0% higher than in 2008. After a 7.6% reduction in
other revenues year on year due to the higher FDIC
insurance charge (higher rates and special assessment),
gross income stood at €2,006m, up 3.3% year on year.
Guaranty contributed approximately 6% of Compass’
revenues.
Operating expenses went down 6.9% year on year to
€1,218m, for the same reasons as explained above for
BBVA USA. Consequently, operating profit reached
€789m. This was up 24.2% on the previous year.
The cost-income ratio improved by over 6.6 percentage
points in 2009, down to 60.7%. This was the result of
revenue and cost synergies coming from the integration.
Finally, the aforementioned higher provisions and the
amortization of goodwill produced a year-to-end
attributable loss of €1,010m. However, without the
impact from the €1,050m one-off charges, the BBVA
Compass Banking Group would be reporting an
attributable profit of €40m.
At 31st December 2009, Corporate and Commercial
Group (CCG) managed a loan portfolio of €14,940m, a
6.9% decrease from a year ago. Customer funds
reached €8,513m, up 16.6% since December 2008. The
customer funds growth has been driven by non-interest
bearing deposits that have experienced exceptional
growth, primarily the result of strong correspondent
banking efforts and increases in several large
relationships within the unit.
Retail Banking ended the year with a loan portfolio of
€8,433m, down 8.8%, primarily due to planned run-off
in the Indirect Auto Dealer and Student Lending
portfolios. However, the residential real estate category
increased quarter by quarter last year, generating
US$1,152m in new mortgages in 2009, a significant
increase over 2008 levels. Customer funds totalled
€12,469m (down 7.8%), primarily due to lower
demand for savings products.
Wealth Management was managing a €1,977m loan
portfolio. This was up 2.3% on year end 2008.
Deposits were €3,200m, rising 40.0% from the
previous year. The market-linked Power CD product,
launched in March, has generated in excess of US$120m
in new deposits. At 31st December 2009, assets under
management were €11,973m, up 6.1% year on year.
Other units
At 31st December 2009, BBVA Puerto Rico managed a
loan portfolio of €2,913m, down 9.0% from December
2008. Customer deposits were €1,473m, growing 5.4%
from last year. Overall contraction in business volumes,
especially lending, produced a 7.5% year-on-year
shrinkage in revenues. However, successful cost
management offset this dip at the operating profit line.
Operating profit reached €74m (down 2.6%), although
high loan-loss provisioning resulted in a final loss of
€67m.
BTS reported net income of €12m, representing annual
growth of 12.3%.
4Q09 BUSINESS AREAS
The United States
47
To view a Ceros magazine you need to have JavaScript enabled in your browser and have the flash player 8 or higher installed. To install the latest flash player, click the icon above, install the flash plugin and then click here to refresh this page.