BBVA in 2012

Management priorities

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In 2012, the United States has focused on completing the transformation process toward a customer-centric organization and thus on laying the foundations for future growth.

The main highlight in the year has been the successful implementation of the new banking platform in all BBVA Compass branches in the 7 states where it operates. This complex conversion process was executed seamlessly and according to the originally planned timeline. It has received very positive feedback from users and customers. Benefits include an enhanced customer experience through differentiated, efficient, faster and customer-centric processes.

From the point of view of risks, and in order to strengthen their monitoring and control, a corporate risk management (ERM) program has been implemented which includes the upgrade and enhancement of several tools, processes and controls. A new commercial lending origination platform for SMEs, a new loan grading system and several enhanced processes and methodologies designed to better estimate and forecast of loan-loss provisions and economic capital needs under different scenarios are just some examples of the key accomplishments achieved in 2012.

In 2012 BBVA Compass began the migration to the new Alnova IT platform in order to build and strengthen the franchise in the country. The migration of the deposit module was completed before the end of the year. In addition to increased levels of internal control and providing more productive and efficient processes, the platform allows BBVA Compass to evolve from a product-oriented organization toward a customer-centric institution. It also enables the bank to be the first in its area of influence to process information in real time. BBVA Compass has also continued to use sponsorships to reinforce the brand awareness and generate business opportunities in all the segments. The inauguration of the BBVA Compass Stadium in Houston is an example of this. Brand recognition has increased considerably in Southeast Texas following the inauguration of this stadium and the partnership with the Houston Dynamo, a Major League Soccer team. BBVA Compass has also continued to make the most of its relationship with the NBA to promote the franchise in all the markets. In addition, it has created local business opportunities in key markets through sponsorships of specific teams. Staff commitment to the bank has been boosted, paying special attention to talent retention.

The organic expansion of BBVA Compass continued in 2012. It opened its first branch in Miami in order to expand its activities in the business and wealth management segments in South Florida. New loan production offices were also opened in the third and fourth quarters in California, Illinois and Florida. The Bank has trained new teams specializing in loan origination in strategic sectors such as healthcare and public finance.

As regards the distribution model, the bank continues to improve its remote distribution capabilities, as shown by the increase in the percentage of active Internet users over the year, which now amounts to 44% of the total number of customers. In less than one year, there have been more than 200,000 downloads of BBVA mobile banking applications for the most popular cell phones and devices. Lastly, the number of active mobile banking users has practically doubled over the last twelve months, and now accounts for nearly one third of the customer base. Part of the increase is related to the release of the new remote banking application for IPhone.

In 2013, the focus will clearly be on customers, once the franchise transformation process has been completed. The actions planned in the above strategic areas cover the following:

  • Risks:
    • Continue reducing the problem portfolios, particularly those from the construction real-estate sector.
    • Expedite the origination procedures, while maintaining the same quality standards in control and monitoring.
  • BBVA Compass will complete the final phase of the transformation process of the franchise in the country with:
    • The migration of debit cards, consumer loans and mortgages to the Alnova platform.
    • The development and implementation of new technological enhancements to boost aspects such as multi-channel banking and efficiency.
  • Differentiation, the most relevant information is summed up bellow:
    • Focus on a differentiated range of products and services adapted to each segment needs, and continue aiming added-value customers.
    • Improve customer satisfaction levels and staff productivity.
    • Increase revenue through synergies with other areas and units in the Group.
  • Lastly, growth:
    • Increase the diversification of activity and speed up the franchise’s organic expansion.
    • Explore and execute innovative alternatives to access new markets.