The United States
2015
Constant €
Net attributable profit
€ 537 M
+5.2% vs. 2014
Positive performance in activity, focused on profitable growth
Cost control
Risk indicators continue at very low levels
A detailed explanation of the aforementioned business area can be found in the Management Report.
Definition of the area
This area encompasses the business conducted by the Group in the United States through BBVA Compass and Propel Venture Partners (Propel), as well as the assets and liabilities of the branch in New York.
BBVA Compass is a bank with 666 branches. It is the 22nd largest bank in the United States in terms of deposit market share.
BBVA Compass footprint
Propel Venture Partners (Propel) invests in disruptive startups in the financial industry with the aim of transforming the financial services sector. This is done by being in contact with companies that are developing business models and technologies to build the best customer experience in the digital era, one of the key elements in BBVA's comprehensive transformation process. In 2015, BBVA Compass invested in Spring Studio, a company specializing in user experience. This investment, together with others in 2014, such as the purchase of Simple, aims to boost BBVA's efforts to become the leading digital bank across its global footprint.
Management priorities
In 2015, BBVA Compass has continued making progress on the creation of a differential value proposition, basically through ongoing launches of new and innovative products and services and the establishment of a number of strategic alliances.
In line with the six strategic priorities defined by the Group in 2015, BBVA Compass has established its management priorities for 2016:
1. Strategic priority 1: To provide a new standard in customer experience
Continue creating a differential digital value proposition has been and will be the management priority for the area
Through the Net Promoter Score (NPS) tool, BBVA Compass has analyzed its customers' satisfaction and drawn the following conclusions:
- Customer satisfaction has gained momentum throughout 2015.
- The number of incidents has declined, as have their resolution times.
- The customer base is growing, as is its profitability.
BBVA Compass has defined a series of initiatives to continue to improve the level of customer satisfaction and increase the customer base and its profitability:
- To promote straight-through processing, while reducing problem incidence, via end-to-end reengineering.
- To provide service excellence, supported and promoted by a cultural shift in the organization.
- To ramp up number of profitable customers, while maximizing customers’ relationships.
2. Strategic priority 2: To drive digital sales
The data on digital sales in BBVA Compass suggest the following conclusions:
- Digital sales performed better than expected throughout 2015.
- Work continues on developing capabilities so that BBVA Compass can become a digital challenger, and on improving fraud prevention in the new digital channels.
- The data on online and mobile penetration (percentage of all the Bank's customers who use online and mobile banking) are at a comparable level to those of leading banks in the area.
BBVA Compass is working on three initiatives with respect to this priority:
- To continue boosting profitable digital sales through the development of digital marketing and leveraging big data.
- To continue improving the usability and user experience of the digital channels.
- To minimize fraud and improve the security and protection of customer data.
3. Strategic priority 3: To create / associate with / acquire new business models
The following conclusions have been drawn from an analysis of the current situation:
- The bases for an open platform with Simple and Dwola are being layed. This platform will provide a competitive advantage to achieve differential results and positioning.
- Simple customers migration to BBVA Compass platform is on track.
- The service infrastructure is ready to work with new partners.
In this case, an initiative has been established: to maximize synergies and revenue with existing and new partners through the implementation of the open platform model.
4. Priority 4: To optimize capital allocation
In the current environment of low interest rates and narrowing spreads, BBVA Compass has defined the following initiatives to maintain its capacity to generate capital:
- To generate growth by diversifying the loan portfolio, with the focus on the most profitable segments.
- To increase the sources of income from fees and commissions.
- To continue monitoring capital, liquidity and asset quality.
5. Strategic priority 5: To adapt the model, the processes and the structures to achieve an unrivaled efficiency
Following an analysis of the current situation, BBVA Compass has reached the following conclusions:
- The efficiency gap has been narrowing.
- The Bank's efficiency track has been affected by regulatory changes, which have impacted both the fees and expenses, and also by the more austere risk profile of the area and the costs of building the platform.
The initiatives implemented are focused on:
- To continue with strict expenses control.
- Continue improving network productivity.
6. Strategic priority 6: To develop, retain and motivate a first class workforce
The conclusions that the area has drawn from the analysis of the current situation in terms of the team have been as follows:
- The workforce has been reduced over recent years.
- Employee turnover in the network has stabilized.
- The employee base is very diverse.
- The agile methodology is being embraced across the whole organization.
The initiatives that are being implemented are:
- Specific measures to promote the growth and development of the team, as well as its commitment.
- Promote the implementation of the agile methodology.
