BBVA Compass Releases Third Quarter U.S. Economic Outlook

HOUSTON, Aug. 25, 2011 /PRNewswire/ -- Economic activity is likely to accelerate in the coming quarters, according to a report released by Nathaniel Karp, chief U.S. economist for BBVA Compass, though growth rates will be below average, with low business expectations and household deleveraging limiting job creation and personal consumption.

Karp also warned that the economy may be undergoing a structural transformation that could result in low growth for several years. "Neither a quick fiscal fix nor a long period of decreased borrowing costs will be enough to catalyze fast growth," he said. "We need to overcome important challenges in order to increase potential GDP growth."

The findings are part of the recently released BBVA Compass third quarter U.S. Economic Outlook, which contains global, national and regional economic outlooks and forecasts, in addition to features on the auto industry and Alabama's recovery from the April 27 tornadoes.

According to the bank's economic research group:

U.S. economic expansion will gradually pick up in the second half of the year, yet downside risks have increased.
Global growth remains strong in emerging markets, while Europe must resolve concerns about sovereign debt.
The BBVA Compass Sunbelt Region continues to expand faster than the U.S. average.
U.S. auto sales are rebounding as Japanese production is restored.
Prices of residential real estate indicate greater stability for non-distressed properties.

"Although the BBVA Compass Sunbelt Region had a weak recovery relative to the rest of the U.S. in 2010, it continues to expand faster than the national average and employment is growing in most states," said Karp. "We expect the region to outperform the U.S. in 2011 and 2012."

ABOUT BBVA COMPASS

BBVA Compass is a Sunbelt-based financial institution that operates more than 712 branches including 374 in Texas, 93 in Alabama, 78 in Arizona, 65 in California, 45 in Florida, 36 in Colorado and 21 in New Mexico. BBVA Compass ranks among the top 20 largest U.S. commercial banks based on deposit market share and ranks among the largest banks in Alabama (3rd), Texas (4th) and Arizona (5th). BBVA Compass has been recognized as one of the nation's leading Small Business Administration (SBA) lenders, earning 'Lender of the Year' honors in 2009 and 2010. Additional information concerning BBVA Compass can be found on our website www.bbvacompass.com.

BBVA Compass is a subsidiary of BBVA Compass Bancshares, Inc., a wholly owned subsidiary of BBVA (NYSE: BBVA) (MAD: BBVA). BBVA is a financial services group with approximately $800 billion in total assets, 48 million clients, 7,400 branches and approximately 110,000 employees in more than 30 countries. BBVA ranks among the top 20 largest financial institutions in the world based on market capitalization and 21st in Global Finance magazine's list of the "World's 50 Safest Banks" for 2010. BBVA provides its customers around the world with a full range of financial services, including commercial and wholesale banking, retail banking services, consumer loans, mortgages, credit cards, securities brokerage, wealth management, pension plan management and insurance. The BBVA Group maintains a leadership position in Spain, Mexico, Latin America and the Sunbelt Region of the United States, as well as operations in China, France, Germany, Hong Kong, Italy, Japan, Singapore, Switzerland, Turkey, and the United Kingdom. More information about the BBVA Group can be found at www.bbva.com.