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BBVA Compass, working towardsa better future for people2008 Annual ReportCorporate Responsibility
2008 Annual ReportCorporate ResponsibilityCONTENTSThis is BBVA Compass’ first annual Corporate Responsibility Report. It outlines our performance for 2008and focuses on issues deemed significant by our stakeholders in light of the current global economic situation.Our approach transparently displays the nature of BBVA Compass’ main commitments and operations, bothas a financial services institution in the United Sates and as a member of the BBVA Group (BBVA), a premierglobal financial services institution.Reflecting the Global Reporting Initiative (GRI), the report contains both BBVA Group information anddata specifically related to BBVA Compass. It excludes Puerto Rico, unless stated otherwise. To reduce paperconsumption, this year’s report is available primarily as a single electronic document. Printed copies will beprovided upon request, however, via an email to corporateresponsibility@bbvacompass.com. Please put “AnnualReport” in the subject line and include your name and complete mailing address in the body of the email.pageMATTERS OF INTERESTfinancial inclusionresponsible financeIdentification and dialogue with BBVA stakeholders Management integration of stakeholderexpectations Reporting to stakeholders Relevant issues within today’s crisis scenario Sensitive Issues in 200816Quality, satisfaction and customer service Access to credit Security, customer protection andbusiness continuity Compliance statement of policy Privacy Transparency, advertising andlabeling Multi-channel banking2225BBVA Microfinance Foundation Matricula Card Acceptance CRA Lending and Investments3034responsible managementof human resourcesenvironmental managementand climate changecommunity involvementcorporate volunteerismbbva profile11responsible productsand servicesresponsible procurementbbva compass profileVision, corporate principles and positioning Business strategy Corporate responsibility atBBVA Compass Compliance system and procedures Precautionary principle:risk management Standards of conduct and international agreements Value creationfor stakeholderscustomer focusletter from the u.s. country manager and chairman06corporateresponsibilityprinciples and policystakeholder engagementcontentsResponsible risk management Bank Secrecy Act Compliance Customer IdentificationProcess Anti-Money Laundering Large companies and project finance BBVA Compasspresence in offshore financial centersSocially responsible investment Second Chance Basic Checking Account Small BusinessLending Environmental products and servicesEmployees’ profile Employment and recruitment Appraisal and professional development Training and knowledge management Personal benefits Non-discrimination and equalopportunities Internal communications Work climate41BBVA Group procurement model and policy BBVA Compass procurement model and policy Principles applicable to those parties involved in the BBVA procurement process Supplierapproval system Procurement and management tools43The BBVA Global Eco-efficiency Plan 2008-2012 Climate change: risk and opportunity4958Key features and data United States BBVA Group foundations Latin America Spain Ruta Quetzal ResearchVolunteerism BBVA Compass Charity Hurricane Ike disaster relief Spain Mexico Latin America64666869global compact & millennium development goalsreport criteriaCONTENTSCorporate Responsibility Annual Report 200801020304sustainability ratings, prizes, awardsachievements in 2008 and goals for 20091
Letterfrom thechairmanOctober 20, 2009José María García Meyer-DöhnerBBVA CompassAt BBVA Compass we work towards a better futurefor people by actively building solutions aroundthe communities in which we operate. This focusdrives our work not only in the area of corporateresponsibility, but also in everything else we do asa company.LETTER FROM THE CHAIRMANBBVA Compass Corporate Responsibility Annual Report 2008This year marks the first time that BBVA Compasshas produced a Corporate Responsibility Report.The purpose of the report is to provide an overviewof our 2008 efforts, demonstrate our commitmentto progress in this area and define a foundationfor an even brighter future for our bank and forthe communities we serve. We seek to provide thebest possible response to the social, environmentaland ethical challenges posed to our business in thecurrent economic environment.2Although 2008 and the first quarter of 2009reflected an unprecedented global financial crisis,in relative terms, the BBVA Group is one of theclear winners in this situation. We now have thethird-highest profits of any bank in the world, andwe’re seventh in terms of capitalization (based onDecember 30, 2008 data). In relative terms we'vetaken a giant step forward.During these challenging times, we must bolsterthe concepts underpinning corporate responsibility.Clearly, BBVA Compass has both a plan and thestrength and stability not only to do things theway we planned, but also to do them better. Weare ready to meet the increased societal demandsfor more collaboration, more proximity, betterprinciples, better practices, long-term relationshipsand greater corporate responsibility.As for our corporate responsibility plan, asevidenced in this report, we clearly are makingprogress. There is a team working in this areaat BBVA Compass, and we have a much greaterunderstanding and focus. Accordingly, the crisiswill not work to the detriment of our corporateresponsibility plans, but, in fact, will have quite theopposite effect.Corporate responsibility and profitability are notincongruent. At BBVA Compass we believe thatthey can not only co-exist, but also that it’s vitalthat they do. Making money is not incompatiblewith being socially responsible. On the contrary,you make money responsibly by improving society,not by turning your back on it. In this respect,we at BBVA Compass are absolutely convincedthat the more you invest in society, the greater thereturns. You can say the same thing about corporateresponsibility as about ethics: It is not onlydesirable, but also very profitable.In 2009 we will continue our progress in makingcorporate responsibility one of our differentiatingfactors. Toward that end we will implement aStrategic Corporate Responsibility and Reputationplan that will involve all of our lines of business andsupport areas.Our success and outlook reflect our outstandingBBVA Compass team. Their commitment,motivation, expertise and responsibility to thebusiness and its stakeholders allow us to takethe actions reflected in this 2008 CorporateResponsibility report.
BBVA COMPASSprofileIn 2007 Compass Bank became a member of the BBVA Group, one of the premier global financial servicesorganizations in the world. In 2008 the integration of BBVA's three Texas banks–Texas State Bank, LaredoNational Bank and State National Bank–was completed, unifying BBVA's franchise under theBBVA Compass name.BBVA Compass' Sunbelt-based bank holding company, Compass Bancshares, Inc., is headquartered inBirmingham, Alabama. With the recent acquisition on August 21, 2009, of Guaranty's banking operations,BBVA Compass now operates more than 750 branches in seven states, including Alabama, Arizona, California,Colorado, Florida, New Mexico and Texas. Based on deposit market share, BBVA Compass represents the15th largest commerical bank in the U.S. and ranks among the largest banks in Texas (4th), Alabama (3rd)and Arizona (5th).S acramentacramentooSan FranciscoDenvnvererLos minghahammLubbbbocockkLas CrucerucessFt. WorthDallllaasMontgomeromeryyEl PasoBeaumumontumAustinS an AntonioAntonioLararedoedoMcAAllenABBVA Compass Branches by daNew leGaiainesvilleaininBBVA COMPASS PROFILEBBVA Compass Corporate Responsibility Annual Report 2008S an Diego3
United nchesBBVAprofileNew YorkPuerto nchesThe BBVA Group, a global financial entity, has an outstandingposition in Spain and Latin America and a growing presence in theUnited States and Asia. The Group employs 108,972 peoplethroughout the world and has 48.2 million customers and morethan 900,000 shareholders.Earnings (million euros)Gross incomeNet operating incomePre-tax profitsNet attributable profit32903.897Number of shareholders48.2Number of customers (millions)Number of employees108.972Number of cards44.69(debit and credit) millionsNumber of branches7.7873.493Number of major suppliersBBVA, A GLOBAL LEADER PROFILEBBVA Compass Corporate Responsibility Annual Report 2008Number of operating countries4Scope: BBVA Group216126,093415São PauloChileEmployeesBranches5,325252The Group's major milestones in 2.81664.788OperationsOther dataMarket capitalization(million euros)Earnings per shareP/BV(Price/ book value)ROE-Return on EquityCost-to-income ratioNPABusiness volume peremployee (million euros)DividendsPersonnel costsCorporate income tax31218PeruEmployees 5,553Branches264In this report, references to "BBVA" and to "the Group" are to theBBVA Group, which includes BBVA Compass.Basic Group lining ofthe retailnetwork inSpain andPortugal91040Q2Q3Q4Approval of the Full integration ReinforcementCRR Strategicof the 4 U.S.of alliance withPlan by thebanks underChina's CITICboard oftheGroupdirectorsBBVA CompassbrandGovernance StructureChairman & CEOPresident & COOBusiness Areas Spain & Portugal Wholesale Banking &Asset Management Mexico United States South America Financial Management RiskChairman’s General Secretary Legal Service, Taxation,Areas Audit & ComplianceCommunication & ImageChairman’s OfficeAccounting & ComplianceInstitutional relationsCorporate Strategy &DevelopmentHR, IT & OperationsInnovation &Development
MoskowLondonBrusselsSpainEmployees witzerlandEmployees 1181BranchesSeoulPortugalEmployees 936Branches 110TokyoBeijingShanghaiMumbaiHong sBranchesLegendCountries with BBVA Group banking operationsBranchesCorrespondent banking officesFoundationsSidneyPension management1719ArgentinaEmployees 5,648Branches266Group banking companies t3rd-Scope: Spain and Latin AmericaNet attributable profit by business areaSpain and PortugalWholesale Banking &Asset ManagementMexicoUnited StatesSouth AmericaCorporate ActivitiesTotalScope: BBVA 6SpainBBVABanco de Crédito LocalFinanziaUno-eLatin AmericaBBVA Banco Continental (Peru)BBVA Banco Francés (Argentina)BBVA Banco Provincial (Venezuela)BBVA Bancomer (Mexico)BBVA ChileBBVA ColombiaBBVA PanamáBBVA ParaguayBBVA Puerto RicoBBVA UruguayRest of the groupBBVA Compass (United States)BBVA PortugalBBVA orf HavanaMoscowFrankfurtHong-Kong MumbaiBeijingLondonSão PauloMilanSeoulNew YorkShanghaiParisSidneySingaporeTaipeiTokyoBBVA Foundation (Spain)BBVA Microfinance FoundationBBVA Bancomer FoundationBanco Continental FoundationBanco Provincial FoundationBanco Francés FoundationPension managersAfore Bancomer (Mexico)AFP Génesis (Ecuador)AFP Provida (Chile)AFP Horizonte (Peru)AFP Horizonte (Colombia)Previsión AFP (Bolivia)Annual corporateresponsibility reportsissued by otherGroup banksBBVA Group2002-2007BBVA Bancomer2007BBVA BancoContinental2005-2007BBVA Banco Francés2007BBVA BancoProvincial2006-2007BBVA Colombia2007BBVA Chile2007BBVA, A GLOBAL LEADER PROFILEBBVA Compass Corporate Responsibility Annual Report 2008Ranking by business sharein the main countries in 20085
CORPORATERESPONSIBILITYPRINCIPLESAND POLICYIn today’s financial and economic environment, the BBVA Compassbusiness model based on return adjusted to principles is moreappropriate than ever. This business model is one of BBVA Compass’clearly distinctive competencies and ENABLES US to generatelong-term value for all OUR stakeholders.Vision. Within the contextof the current globaleconomic environment, BBVACompass’ premise of Workingtowards a better future forpeople becomes even more meaningful. This premiseestablishes connections that generate trust andsupport in our dealings with target audiences, withthe ultimate goal of creating a better future for allour stakeholders.CORPORATE RESPONSIBILITY PRINCIPLES AND POLICYBBVA Compass Corporate Responsibility Annual Report 2008VISION,CORPORATEPRINCIPLES ANDPOSITIONING6Within this reference framework, BBVA understandscorporate responsibility to be a true commitmentbased on delivering the utmost possible value toour direct stakeholders–customers, employees,shareholders and suppliers–and to the communitiesin which the company operates.Corporate Principles. The BBVA Groupstrives to be a company that listens to its stakeholders and integrates all their expectations, to thebest of its ability, in all facets of its operations. Thisbegins with the very definition of its vision andprinciples, which are the outcome of a “listening”process and the integration of the expectations,values and aspirations of the Group’s mainstakeholders. It is the result that defines what itwishes to be (management and staff), what it shouldbe (other stakeholders) and what it is (the Group’strack record, strengths and weaknesses).The BBVA Group’s corporate principles epitomizethe company’s vision with regard to each stakeholder.These principles lie at the heart of BBVA’s corporateculture. Although this report focuses on the seventhprinciple, namely, corporate responsibilty, itencompasses our continual adherence to the other six.BBVA Compass’ SevenCorporate Principles1. ClientThe client as the centerof our business.2. Creationof value3. TeamThe creation of shareholdervalue through businessactivity.Teamwork as the keyto generating value.4. Managementstyle5. EthicalA management stylethat generates enthusiasm.Ethical conduct and personaland professional integrity as away of understanding andconducting our business.6. InnovationInnovation as the engineof progress.7. Corporate responsibilityCorporate responsibilty as an intrinsic part of development.
Our seven principles arethe mainstays of the BBVAproject. Our managementmodel not only relies upon Risk-adjusted Return(RaR) as the tool for measuring the value the Groupcreates, but also goes farther by applying strictethical criteria: integrity, transparency, prudent riskmanagement and best practices. Our strategy andbusiness model therefore also are based on returnadjusted to principles.BusinessstrategyIn the prevailing environment of financial andeconomic downturn and crisis in values, this modelis more pertinent than ever and constitutes one ofBBVA’s clearly defining traits for building credibilityand trust. As BBVA Compass adopts the BBVAGroup’s model, this will be the key that ensures thesustained creation of value over time for all ourstakeholders.A strategy based on principlesFinancialcrisisReal economiccrisisCrisis ofvalues«Return adjusted to Principles»ITransparencyIIPrudenceTrust CredibilitySustained value creation over timeIIIIntegritySince 2008 BBVA Compass has been developing itsInnovation and Transformation plan, the overridinggoals of which are the following: To generate offers designed to meet the needs ofindividuals or communities To pave the way for new segments of thepopulation to access financial services To extend the business offer to include nonfinancial products and services.Accordingly, the challenge for our corporateresponsibility policy is to act as a lever ofinnovation and transformation for the company,aligning our operations to help achieve the strategicgoals defined in this plan and constructing a uniqueand differentiated discourse.Objectives. CorporateResponsibility (CR) atBBVA Compass has beenreinforced in light of recentevents. In a crisis setting corporate responsibilityshould be a differentiating factor. The objective ofBBVA Compass’ policy, therefore, continues to be todefine commitments and foster behaviors that createvalue for all our stakeholders (social value), as wellas for BBVA Compass itself (reputational value anddirect economic value).CORPORATERESPONSIBILITYAT BBVA CompassAccordingly, it is essential for our commitmentsand behaviors to be based on the BBVA Group’svision and principles so that we may respond in thebest possible way to stakeholder expectations andreinforce the company’s business strategy.The main commitments of the BBVA CompassCorporate Responsibility Policy are as follows: Uphold excellence at all times in our corebusiness operations Minimize the negative impacts caused by ourbusiness activity Develop “social business opportunities” togenerate both social and economic value forBBVA Invest in communities in which we operate bysupporting social and civic projects, especiallythose involving education.CORPORATE RESPONSIBILITY PRINCIPLES AND POLICYBBVA Compass Corporate Responsibility Annual Report 2008Positioning. The identity and positioning of theBBVA corporate brand are defined by combiningthree main focal points that summarize the Group’svision and the pillars upon which our businessstrategy, brand and reputation rest, namely, beingtrue to our corporate principles, prioritizinginnovation and working through people for people.7
Managing and governing CorporateResponsibility Policy. Within the BBVAGroup, major progress in integrating corporateresponsibility within the company’s businessstrategy was continued in 2008.CORPORATE RESPONSIBILITY PRINCIPLES AND POLICYBBVA Compass Corporate Responsibility Annual Report 2008A Corporate Responsibility & Reputation (CRR)committee will be established at BBVA Compass in2009. This committee will be charged with drivingthe integration of CR criteria, activities and policiesthroughout the company’s business and supportareas. Its members will be senior executivesfrom the following areas: Risk, Chairman’sTechnical Office, Compliance, Human Resources,IT & Operations, Procurement, Innovation &Development and Finance. The committee will bechaired by the U.S. country manager.8The principal body responsible for managingcorporate responsibility and reputation is the CRRdepartment, which has two roles that, althoughseparate, are connected and complement each other:the coordination of corporate responsibility policyand the management of reputation. These two rolesare pursued through the following three linesof action: Monitoring and assessing stakeholder opinion(listening) Proposing criteria, policies and responsibleconduct across the board in all businessareas (doing) Reporting and discussing the actions undertaken(communicating).The BBVA Compass CRR department is chargedwith developing a strategic plan for CRR in 2009.This plan will include reassessing and restructuringits foundation, volunteer program and other policiesand programs impacted by CRR.Together with the CorporateGovernance System, theGroup’s Compliance Systemconstitutes the cornerstoneupon which we consolidate our institutionalpledge to conduct all operations and businesses inaccordance with strict codes of ethical conduct.COMPLIANCESYSTEM ANDPROCED
organizations in the world. In 2008 the integration of BBVA's three Texas banks–Texas State Bank, Laredo National Bank and State National Bank–was completed, unifying BBVA's franchise under the BBVA Compass name. BBVA Compass' Sunbelt-based bank holding company, Compass Bancshares, Inc., is headquartered in Birmingham, Alabama.
