Professional Documents
Culture Documents
2011
Banco Popular
Dominicano, S. A.
Banco Mltiple
CONTENTS
Financial Indicators 3
Letter from the Chairman 4
Report of the Board of Administration 6
Success Stories: our clients 19
Products and services 48
Success Stories: our allies 67
Corporate Social Responsibility 68
Financial Statements 99
Members of the Board of Administration 186
Committees of the Board of Administration 188
Chief Executives 190
Office Directory 194
2011
2010
Total Income*
28,805
24,295
14,360
11,936
3,935
3,741
Net Profit
Cash Assets
Common Shares
Total
3,908
2,888
291
36
4,199
2,924
Financial Indicators
Return on Assets
2.05%
2.24%
Return on Equity
22.40%
24.03%
8.84%
9.49%
Solvency Ratio
12.53%
13.67%
Equity to Deposits
10.40%
11.05%
25.02%
23.88%
193.95%
182.99%
Equity Ratio
F i n a n c i a l I n d i c at o r s
Year-End Balance
(In RD$ Million)
Total Assets
205,574
178,523
Total Deposits
174,760
153,371
126,538
109,217
Funds Available
43,730
36,618
Paid-in Capital
10,383
9,317
Shareholders' Equity
18,180
16,950
Demand Deposits
38,452
36,318
29,509
27,491
60,109
52,884
Deposits FC*
46,689
36,678
207,657,619
186,347,862
197
194
Number of ATM
682
649
5,852
5,283
Manuel A. Grulln
chairman
nations economy.
Distinguished fellow shareholders, allow me to express our deepest appreciation to you
and to the Dominican population at large, for the support and confidence entrusted to us
during the year 2011.
Sincerely,
Manuel A. Grulln
chairman
R E P O R T O F T H E B O A R D O F A D M I N I S T R AT I O N
Marino D. Espinal
vice -president
Prxedes Castillo P.
secretary
Alejandro E. Grulln E.
member
It is pertinent to emphasize that we were successful in achieving the referred growth, not-
withstanding the new tax burdens applied to the banking segment which as of the first
with the aim to submit to your consideration, in accordance with Article 23 (a) of our
semester of 2011- impacted overall business activity levels and affected competitiveness
Statutes, the Annual Report on the performance of Banco Popular Dominicano, S. A. - Banco
within the sector. Likewise, the rise of fuel prices registered during the first part of 2011
Mltiple during the period comprised between January 1 to December 31, 2011, in line
produced inflationary pressure on the economy that determined the implementation -by
with the provisions contained in Article 61 of the Statues of this institution, in accordance
the Central Bank of the Dominican Republic - of a restrictive monetary policy that gener-
with the stipulations outlined in the New Commercial Societies and Individual Enterprises
ated higher interest rates and provoked a decrease on the markets demands for credit.
of Limited Responsabilities General Law No. 479-08, further modified by Law No. 31-11.
During the January - July period, the level of accumulated inflation was at 6.75%, surpass-
I am pleased to inform that this financial institution has concluded its 2011 fiscal year per-
ing in a period of only seven months- the overall 2010 inflation level, registered at 6.24%.
formance with a sound growth of its main financial indicators thus increasing its produc-
The restrictive monetary policy implemented by the Central Bank during the first semester
tive assets and shareholder's equity, as well as enhancing asset quality indicators and
of 2011 culminated in the deceleration of economic activity, and consequently the rate of
2011 Gross Domestic Product as well, which situated at 4.5% representing a significant
decrease from the 7.8% growth level registered in 2010.
Notwithstanding the characteristics of the economic environment during 2011, this financial institution was able to develop innovative initiatives, in line with its 2011-2014
Strategic Plan, that helped dynamize new business lines in addition to optimizing operational efficiency and risk management. The latter helped mitigate the negative impact of
the new tax burdens, which are estimated at an approximate amount of RD 800 million, over
the results registered by our bank.
It is also pertinent to point out that Popular played an important role in dynamizing the
market of foreign currency exchange, through the sale of currencies and the channeling of
US financing for the development of infrastructure projects and foreign commerce activities, among other dynamic sectors of the national economy.
by Mercado Magazine ratifies that Popular continues to be the Most Admired financial
institution among the Dominican public.
Regarding the main activities of the banks Senior Executive Vice-Presidencies, it is relevant
to bring to your attention that a savings and cost reduction program was implemented in
mobiles or smartphones, as well as the introduction of new payment functions which are
now available through the tPago tool. Likewise a new alternate computer center has been
installed, comprised of new and modern facilities in line with international standards that
serves as back-up support service for the main computer center in the event of unforeseen
contingencies. On another note, a new alternate high-availability communication network
has been contracted with an aim to ensure uninterrupted communication between our
offices and the data center.
Regarding the Senior Executive Vice-Presidency of Business, it must be noted that during
2011 the Area of Treasury registered a very positive performance, actively participating in
the investment of debt instruments emitted by both the Ministry of Finance as well as the
the area of Finance, Technology and Operations that entailed the creation of working-
Central Bank of the Dominican Republic. In the Area of Personal Business and Branch
groups that worked towards enhancing the efficiency of the expense accounts contained
Offices, our main efforts were focused on improving financial margins, without neglecting
in the 2011 Operational Budget, through the introduction of efficiency measures aimed at
saving electric energy, transportation and cash collection. In addition, Banco Popular made
Furthermore, it is important to highlight the success achieved through the initiatives car-
ried out by the Credit Card Area that introduced advantageous modifications to the
improve its products and services, and to incorporate a series of new financial services
Programa de Millas Popular (Popular Miles Award loyalty program). Consequently, clients
are now using their miles awards to obtain concert tickets and gift certificates from a wide
range of commercial establishments, in addition to using their miles award to cover the
such as the implementation of Mvil Banking Popular, an adapted internet platform for
above
Pedro A. Rodrguez
Manuel E. Tavares S.
member
member
below
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11
Furthermore, the Credit Card Area has also launched the Benefits Plan, which allows cardholders to benefit from special bargains and discounts offered in more than 260 commer-
cial establishments, among many other new advantages now available to Popular card
holders under this loyalty program.
Similarly, the Senior Executive Vice-Presidency for Risk Management, Security and Human
Resources continued to develop and implement important initiatives on risk management
effectiveness, in addition to investing resources in the professional training of the institutions human capital.
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and over 900 institutions and families were able to benefit from the Corporate Social
Responsibility Program (CSRP) implemented by Banco Popular Dominicano which, in
November last year, merited an acknowledgment from United Nations Global Compact.
able decrease of 0.44% and Provisions for Loans / Non Performing Loans (NPL) Ratio that
It is important to emphasize that this growth was oriented primarily toward commercial
Additionally, during 2011 Total Deposits increased to the amount of RD$174,760 million,
loans granted to productive sectors and to small and medium enterprises (SMEs), repre-
exceeding by RD$21,389 million the amount reached at year-end 2010, which is equivalent
senting an increment of RD$12,608 million. On the other hand, consumer loans grew by
Likewise, the Regulatory Capital that backs up the operations of our banking institution
The increment of the Loans Portfolio was achieved with significant improvements on
closed the 2011 fiscal year with a balance of RD$18,375 million, which reflects a growth of
quality indicators, noting that the Past due and Under Legal Procedures Loans repre-
RD$1,584 million. This growth allowed the bank to achieve a solvency index of 12.53%.
sented a 1.36% of the Gross Portfolio which, in comparison to year 2010, reflects a favor-
Fellow shareholders, this Board of Administration is pleased to inform that at the closure of
above
Jos A. Brache
member
member
below
Adriano Bordas
member
Salustiano Acebal
14
member
15
148,111
2008
RD$ Million
155,042
2009
which, after deducting RD$ 1,320 million corresponding to payment of income tax, result
178,523
2010
205,574
2011
Distinguished assembly members, it is our hope that the performance achieved by this
Board of Administration during the year 2011 warrants the approval of this Annual
Ordinary-Extraordinary General Shareholders Assembly and we further request that, in
accordance with the data contained in the enclosed financial statements, the 2011
2008
81,626
RD$ Million
2009
2010
89,356
109,217
126,538
2011
Manuel A. Grulln
chairman
2008
125,433
RD$ Million
2009
2010
133,951
153,371
174,760
2011
2008
13,628
RD$ Million
2009
2010
2011
16
14,196
16,950
18,180
17
Success Stories:
Our clients
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19
20
m r . s c a r B at i s ta M a r t n e z
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the morning to have breakfast. Many of these people are just passing
by and others are residents of the region who decide to go out for
breakfast. It is a diverse crowd which we must learn to interpret and
get to know. That is why the training of staff and their commitment
to the company is so very important. I perceive that sense of
proficiency, empowerment and loyalty at the bank. The commitment
of employees is instrumental for the success of all business endeavors.
The people that work with you should be a living part of the business.
They should feel for it, work for it and abide by it. They should feel like
a true part of the enterprise and true holders of quality service.
We feel a deep sense of responsibility when people refer to us as
an unavoidable gastronomic reference. It is not my place to speak
about what our clients think, but it is certainly my place to express
appreciation for that privilege. I believe the public is able to quickly
perceive the signals we send out. The important thing is to send the
right signals.
Learn more about Mr. Batistas success story at www.popularenlinea.com
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Quality of Service:
a Popular Service
Several actions are required for a business
and their families; with an aim to provide the support they require to fully
exercise their talents and capabilities, accomplish their professional growth
and display their passion for service. We reward creativity, productivity and
provide opportunities for the professional growth of every individual.
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25
D R . D U L CE M U O Z D E CEARA , M . D .
A u d i o l o g y a n d S peech D i so r d e r s S pec i a l i st
S a nt i a g o d e l os C a b a l l e r os , Dom i n i c a n Rep u b l i c
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27
And that continues to be the case even today.I feel like a princess
Docto r M u o z i s a n A u d i o l o g i st a n d
P hon i at r i st w ho h a s f i n a l ly seen he r
pe r son a l a n d p r ofess i on a l d r e a m
come t r u e w i th the est a b l i shment of
he r o w n me d i c a l f a c i l i t y. F o r the pa st
th i r teen y e a r s she h a s been a ss i st i n g
h u n d r e d s of pat i ents i n the r e g i on of
C i b a o, w i th a h i g h sense of d e d i c at i on
a n d comm i tment, to he l p them
o v e r come the i r he a r i n g p r ob l ems
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29
are to generate in our clients so that our motto Always at your side
requirements.
Through this means, the Service Quality Area is committed to the overall
measures and initiatives that are introduced at each area, to facilitate the
duly assessed.
In addition, The Leadership Academy was also established, a unique
initiative nationwide, aimed to ensuring the training of leaders that are to
portray the Popular brand in their daily performance. All 700 managers
at the bank attended the first Academy module which addressed the
topic of Populars Ethical Management Model.
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32
MR . F RAN K RAINIERI
P r es i d ent of G r u po P u nt a C a n a
B v a r o, Dom i n i c a n Rep u b l i c
33
I proposed to my wife Hayde, this was one of the matters I laid on the
table: I ask that you accept to share my devotion, I said to her that day.
I have devoted myself to tourism with humility and dedication.
Respecting it, protecting it and caring for it. Tourism is the foundation
pleased to come across people who have been part of the staff
comprise a team that evolves and becomes better each day: most
that through earnest effort and genuine enthusiasm. They truly excel
Crises are opportunities. One can and must grow with each crisis. The
must keep our eyes wide open, we must keep abreast of market trends,
identifying what people want and what you must and should provide.
where they grow and develop. It is a challenge. Its all about growing
while remaining true to who you really are. Being a part of peoples daily
period of time.
hustle and bustle; living with them and really getting to know them.
Learn more about Mr. Rainieris success story at www.popularenlinea.com
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satisfaction.
Amongst these mechanisms we can mention la vozdelcliente@bpd.
com which is far more than just an on-line listening address. As of
today, it is considered a consolidated interactive channel where
we can register in a consistent manner- a significant amount of
information that is sent by our users, which serves to bring us closer
to learning about our customers realities.
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H o u se w i fe a n d G r oce r y - S to r e o w ne r
N a v a r r ete , p r o v i nce of S a nt i a g o
Dom i n i c a n Rep u b l i c
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39
ourselves of people who really care, who really worry about your
L i k e tho u s a n d s of othe r Dom i n i c a n
c i t i z ens , Is a be l T a v e r a s so u g ht a
bette r l i fe fo r he r se l f a b r o a d b y
m i g r at i n g to N e w Yo r k . A ch a r i sm at i c
st r u g g l e r , th i s w om a n pe r ce i v es
s u ccess a s a n at u r a l r es u lt of h a r d
work
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Valuing Service
The measuring and monitoring of service pledges is fundamental and a
way of doing this is through the Service Measuring Module available at
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44
MR . J O R G E F RANCISC O
T U T O H ERRERA
P r es i d ent of H y l s a S . A ,
Impo r te r a n d D i st r i b u to r of T i r es ,
B atte r i es a n d L u b r i c a nts
S a nto Dom i n g o, Dom i n i c a n Rep u b l i c
45
our main office. The acquisition of those premises, and all our other
T he H y l s a G r o u p i s a f a m i ly
a ch i e v ement w h i ch w a s i n i t i ate d 3 0
y e a r s a g o. A ltho u g h i t i s p r esent ly
pos i t i one d a s the l e a d e r w i th i n i ts
m a r k et, i t cont i n u es - a s a f athe r
w o u l d w i th h i s o w n ch i l d r en - i n h i s
effo r t to i nst i l l a co r po r ate mo d e l
b a se d on p u r posef u l comm i tment to
q u a l i t y a n d se r v i ce
business sites, was made possible with the support of Banco Popular.
At all timesas of the moment Hylsa became a reality, my family
and I have always felt the presence of Popular among us. As I have
said before, they have trusted me through each and every step that
I have taken; they have relied on by background, my credit records
and my sense of commitment: I have taken five-year loans that I
have paid back in two years.and that is very gratifying for me
it also pleases the bank. It is a relationship of mutual trust. When
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Although different, we all share something in common: a bank we can always rely on
each and every moment of our lives. This slogan is reflected in the level of confidence
entrusted to us throughout 2011 by 2 million 700 thousand clients who sought solutions
to a wide range of financial needs at Banco Popular Dominicano.
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49
50
51
61,695
2009
51,258
62,000
2010
Remittances
74,810
2011
64,522
Commercial Loans
2009
2010
In RD$ millions
In RD$ millions
77,130
During the fifth venture of Autoferia Popular (Auto Fair) held in December 2011, loans were
Commercial Loans
approved for an amount exceeding RD$1,476 million, thereby providing support primar-
ily- to corporations offering special deals for young adults and families.
The advertisement campaign entitled Your ideal car; only found at Autoferia Popular,
Small and Medium Businesses through our financing sources, which include:
proved to be -once again- the auto event with greatest impact on the market. Information
on this event was disseminated through social networks, radio, television and the written
RD$ pesos and US dollars, with an added benefit that allows our clients to con-
Approximately 107,000 clients were able to make their dreams come true last year by
veniently pay the insurance premium of the property purchased with the loan,
obtaining a consumers Loan from Popular. On another note, we continued to provide the
best financing options for our clients who wished to purchase their own homes, apart-
point out that the level of growth achieved surpassed the 2010 closing figures
We offered the lowest real estate mortgage rates for properties with a value of up to RD$5
million, in accordance with the measure taken by Banco Central (national Central Bank) to
the growth of the Credit Placement Portfolio in US Dollars exceeded the prior
release 1.4% of the statutory reserve rations for financial institutions, with a view to stimu-
2011
loyalty program, which rewards and acknowledges the real estate advisers and sales repre-
Banco Popular is the main issuer of MasterCard and Visa Credit Cards, as well as
All the strategic and business actions developed throughout 2011 have contributed toward
the scope of benefits currently available to our clients through the use of
enabled 2,443 families to acquire a home of their own. Consequently, the Mortgage Loans
Popular Credit and Debit Cards. Among these initiatives we can highlight the
Portfolio reached a 25.4% participation in 2011 thus reinforcing Populars market leader-
creation of the Benefits Plan, a bargain and discount Club that operates at over
ship position.
260 affiliated shops and commercial localities, for the benefit of customers who
Regarding vehicle loans, a total of 1,880 clients purchased the vehicle of their dreams last
year, through the new financing options that have been made available.
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2009
2010
23,236
25,474
Consumer LOANS
27,930
2011
In RD$ millions
a wide variety of new exchange features has been specifically designed and
implemented for our cardholders, with the purpose of expanding the range of
clients who use this program. These new exchange modalities include tickets
for performances, concerts and sports events; as well as gift certificates and
preventive health plans. The initiative also introduced a reduction on the mini-
natives will be proposed during 2012, to continue this trend that aims to provide each cli-
mum amount of miles required to apply for benefits, thus positioning Programa
These initiatives are supported by important investments that were initiated during the
prior fiscal year, including important changes in the technological systems used for the
periods during the past year to triplicate the amount of miles awarded for each
processing of credit and debit cards. Amongst the improvements made available through
these investments we can highlight the first emission on the market of cards with EMV chip
who exchanged their miles for a wide variety of benefits, resulting in a 52%
technology, to be carried out during 2012, along with other features and functionalities
Both the creation of the Benefits Plan, as well as the expansion of the Programa
56
Savings
which was far superior to the average market level, as per reports disclosed by
During 2011 the savings portfolio experienced a growth of RD$2,018 million with respect
to year 2010, while the savings portfolio in US dollars registered a significant increase, with
During 2011, the market leadership of Banco Popular within the local Card
markets was made evident by the nature of its products given that, in addition
The amount of Popular Savings Accounts rose by 171,650, when compared to year 2010,
representing 34.7% of the overall savings market within the Dominican financial system.
includes other exclusive products such as MasterCard Black. Within the prod-
During the prior fiscal year a total of 1.16 million clients entrusted their savings to our insti-
ucts portfolio we can also find affiliated brand cards which meet our every
tution. The amounts of savings accumulated by our clients through the various saving
need. Among the most outstanding ones we could mention Visa IKEA,
products and financial certificates available at our institution resulted in a total of RD$4,813
interest payment.
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59
2009
2010
14,862
51,500
19,221
Mortgage Loans
21,478
2011
In RD$ millions
59,557
Savings Deposits
2009
2010
In RD$ millions
67,093
Since its inception, Popular has been known for helping its clients achieve their personal
tronic account, without check books or debit cards, operates through any of
goals through the application of best practices in savings. In this regard, a promotional
our channels: namely, Red Mvil Popular: Internet Banking, Mvil Banking,
campaign under the slogan Cul es la ilusin de tu vida? (What is your lifelong dream?),
2011
was launched as a 2011 initiative, to reward our clients saving efforts. The campaign was
primarily addressed to all our depositors.
The campaign was designed on the basis of a previous research specifically conducted to
The year 2011 was filled with visits to educational centers and attendance to the
learn about the dreams that motivate the practice of saving among the Dominican public.
activities carried out by the Club del Ahorro Infantil (Childrens Savings Club).
This market research rendered a list of twenty major dreams that later became the twenty
Once again, we visited school premises and summer camps throughout the
prizes that were awarded (on a weekly basis) to those partaking in the promotion. The par-
ticipation of clients comprised the receipt of an electronic ticket for each increment reflect-
paign Ahorrar nos hace bien (Saving is Good for All); educational lectures were
ed in their savings account of RD$300 (or US$10). Awards given as Weekly Prizes and at the
offered to help children learn about the planning, consistency and responsibil-
Big Draw, included trips, ocean cruises, school tuition, one-year fuel supply and/or super-
ity qualities that they will need in order to attain their goals. Furthermore, these
market purchases and home repairs, among other prizes, in addition to three big final
This promotional campaign was backed by wide media coverage that included live presen-
tations in television programs as well as the online support of the social network of our
family of Ilusionados (Dreamers), which was a valuable advertising source that facilitated
60
Likewise, Popular Savings Accounts continued to advocate the message Ahorrar nos hace
bien" (Saving is Good for All) that seeks to raise awareness amongst the public on a matter
Products and Services, which provides added convenience for our clients. Under
as crucial as environmental preservation, which is vital, not only for present and future gen-
the terms of this agreement, our clients will be able to access a wide variety of
products and services with a single signature and without the need to visit our
Lastly, in trying to provide our clients with timely solutions, we have developed Ahorro
offices or subscribe new agreements each time they wish to acquire one of our
Especial (Special Savings), which is a new product that offers an interest rate that rises in
proportion to each increment reflected in the balance of the savings account. This elec-
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On another note, the network of Automatic Tellers continued expanding, reaching a total
of 682 units, thus providing the most ample coverage available within the financial nations
system. This achievement allowed the conduct of 30.2 million cash withdrawals during the
prior year, more than 10.9 million consultations and the purchase of telephone calling cards
for an amount that surpassed 1.4 million.
Bancaseguros
The services provided by Banseguros include Prevision Popular (Popular Safeguard), a personal accident insurance; Seguro de Vida Popular (Popular Life Insurance), allowing payment installments that are more convenient than those offered by traditional insurance
schemes; Complemento Hospitalario (Complementary Hospital Expenses) which covers
hospitalization costs; Hogar Seguro (Safe Home), aimed at addressing consequential damage of other typical household risks; Ultimos Gastos Plus (Final Expenditures Plus), offering
the most complete funeral service; Renta Educativa (Educational Endowment), a life insurance where the amount insured comprises monthly installments toward the educational
expenses of the beneficiaries; and Seguro Goldlife (Goldlife Insurance), a life insurance
policy with savings in US currency, by which the client selects the amount of coverage, the
premium and the number of years in which the payment is to be made. In addition to the
above options, there is a wide array of products that cover the various portfolios managed
by our bank, thus protecting our clients as well as the Institution.
During the prior fiscal period we achieved a 22% growth on the sale of new policies,
in comparison to year 2010. In addition to the above, we also launched Garanta Alimenticia
(Nutritional Guarantee) an insurance policy where the amount insured is comprised of
monthly installments intended toward the beneficiarys family basket; the insurance Gold
Assist, designed to provide basic home services for both emergencies and coordination of
services. For added convenience, we have also provided a link to Universal Xpress at our
Internet Site (www.popularenlia.com), which will allow our clients direct and immediate
access to Bancaseguros products.
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Success Stories:
Our allies
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C O R P O RAT E R E S P O N S I B ILI T Y
edgment for its contributions as a socially responsible corporation. We are competitive and
efficient both in terms of business profitability as well as in terms of social responsibility.
Through these Corporate Social Responsibility programs (CSR), our entity is duly aligned
with the Millennium Development Goals, primarily as it pertains to education, environmental sustainability, reduction of infant mortality and the improvement of maternal health.
Our social investment strategy is aimed toward contributing to enhance the well-being of
society, to improve the living conditions of our communities and to preserve the environment.
Populars CSR philosophy transcends philanthropy, given that it is based on the execution
of long-term sustainable programs that contribute to improve the quality of living of the
recipient communities. These programs rest on five main pillars: Environment, Education,
Health, Social Community Work and Arts & Culture.
More than 900 families and institutions received support from our bank last year, within the
scope of activities carried out by Popular under its corporate social responsibility program.
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MR . SIME N A B RE U
D i r ecto r of P l a n S i e r r a ,
S a n Jos d e L a s M at a s ,
Dom i n i c a n Rep u b l i c
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P l a n S i e r r a ( M o u nt a i n R a n g e P l a n ) i s
the s i n g l e most i mpo r t a nt n at i on a l
i n i t i at i v e i n the f i e l d of
en v i r onment a l s u st a i n a b i l i t y. S i nce
i ts commencement, B a nco P op u l a r
Dom i n i c a no h a s been comm i tte d to
p r o v i d e i ts f u l l s u ppo r t to th i s
en d e a v o r
We produce 2.3 million plants per year here, divided into three timber
species; others for bird habitat purposes; and the guava to provide
the shadow conditions required by coffee plantations. Today, thanks
to the forest coverage achieved through this reforestation program,
water resources are available and the cycle continues: water falls on
the trees, reaches down into the deep roots and arrives at the underground lakes. If it leaves San Jos de las Matas in the morning, it can
literally reach Montecristy on the same day! Its magic!
The mountain range represents life for our nation. Its mission is to produce and our people must learn to make use of the soil without conflict: to plant coffee in the appropriate area, to plant plantains in the
appropriate area, etcetera. This is part of what we teach at the training
centers; centers that owe much of their existence to the bank
The implementation of this reforestation project further serves to
protect the watersheds of the rivers Bao and Yaque del Norte.
Families who had migrated have now returned to what has become
a reliable way to make a living. Thousands of them plant coffee and
that helps them improve their income. At the end of the day there are
benefits for both the hill and the valley is a win-win scenario
Popular is more than just a socially responsible corporation. It is an
institution with true social awareness. It is an attitude that goes far
beyond commitment or observance of environmental coexistence. As I
see it, this environmental awareness should be embraced by the entire
nation. It should reach the valley. The residents of the mountain range
have become increasingly aware of that realityit is not a fashion
trend. The mountain range represents the blood of the Cibao Region.
Learn more about Mr. Abreus success story at www.popularenlinea.com
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This vocation to service society is transmitted to all levels within the organization, com-
To this regard the bank subscribed an agreement with Moldosa, for developing a culture
prising the participation of executives as well as employees in the CSR programs imple-
within the organization that is both environmentally friendly and eco-efficient in the use of
mented throughout the year, with the aim to foster their interest in corporate volunteer-
paper resources. All the paper resources utilized by Popular for its operational activities are
ing endeavors.
recycled by Moldosa and are subsequently made into products of commercial value (egg
As a result, during 2001 nearly 1,900 Popular participants devoted more than 15,800 hours
carton trays, containers and coasters,) among other items. This initiative is encompassed
of their personal time to corporate social responsibility activities, restoring school, partici-
within the Blue Citizen Eco-efficient Program, which aims to accomplish significant and
pating in beach clean-ups and planting of trees; or partaking in educational lectures and
measurable changes in the behavior or our human resources, for the benefit of our institu-
cultural venues. To this regard, the organization has approached the year 2012 with the
motto We are more than a financial business. We touch peoples lives, with the strong con-
By the same token, Popular has continued to implement its environmental programs in
viction that to a great extent we stamp our mark in the economic and social develop-
close collaboration with its employees, who have participated in various reforestation proj-
ects. The institution has also maintained its financial and human contribution to Plan Sierra,
which is the most comprehensible effort that is being carried out in the country toward the
74
preservation of trees and the protection of watersheds at main rivers and streams in the
The environmental programs carried out by our organization are the emblem of its CSR
nation. Two reforestation activities were held with the attendance of hundreds of employees
policy and further promote the sustainable use and preservation of natural resources. Their
from the entire Grupo Popular. Since our institution began its support to Plan Sierra over two
objective is to generate a high level of awareness within the Dominican society, and to
decades ago, we have helped to plant more than 238,000 indigenous trees. Furthermore,
during 2011 Popular expanded its reforestation efforts to the Eastern region of the country
For the second year, Banco Popular Dominicano engaged thousands of students from the
with a planting activity held in May last year at Laguna de Malln (Mallen Lake), one of the
cities of Santo Domingo and Santiago in its Educational Program I Recycle! which focuses
75
D i r ecto r a n d P r ofesso r
Pa so C i b a o E l ement a r y S choo l
H ato M ay o r d e l Re y,
Dom i n i c a n Rep u b l i c
76
77
thirty years and thus far, teaching someone to read still fills my heart
T he R u r a l S choo l Resto r at i on P r o g r a m
( R S R P ) w a s i n i t i ate d i n the y e a r 2 0 0 5 .
At p r esent, o v e r t w ent y r u r a l schoo l s
a n d 4 , 3 0 0 st u d ents th r o u g ho u t the
n at i on benef i t f r om th i s p r o g r a m
78
79
During the International Coastal Clean-up Day held on 17 September last year, hundreds of
Popular employees participated in the beach clean-up tasks carried out in Playa Linda,
Haina, which is located within the premises of the Itabo Industrial Park. Over 3.5 tons of litter was collected during this clean-up campaign.
On the other hand, Popular sponsored the Blue Economy venture, which is an economic
sustainability project brought to the country by Fundacin Universitaria Dominicana
Pedro Henrquez Urea -PRO-UNPHU (Dominican University Foundation Pedro Henrquez
Urea PRO-UNPHU). The Blue Economy concept was created by Mr. Gnter Pauli who
delivered a lecture at the Magna Hall Conference Room at UNPHU. Mr. Pauli advocates for
the creation of business endeavors based on development strategies that are environmentally friendly.
In addition, and within the scope of its program Educando con Valores (Values-based
Education), Popular held various lectures during 2011, such as the one delivered in the
month of November at the city of Dajabn. A lecture entitled Starting an ethical and environmentally Sustainable Life was delivered at the request of Asociacin de Dajaboneros
Ausentes. Likewise, the theme of Eco-efficiency Energy, a Road to Environmental
Sustainability was the subject of a lecture delivered at the banks Engineering Department
as part in commemoration of Efficiency Day.
Our pursuit to raise environmental awareness was displayed last May during the second
Walk for Water venture, gathering more than 9,700 participants who donated their walk
for the construction of new aqueducts in the Southern region of the country. The nonprofit organizations FUNDASEP and Sur Futuro received the funds collected for the purpose of bringing safe and clean drinking water to new families in underprivileged communities. To date, two aqueducts have been completed and are currently benefitting
various communities located in the provinces of Elas Pia, San Juan de la Maguana and
Azua.
80
81
D O CT O R L U IS RI V ERA , M . D .
P E RI N AT O L O GI S T P E DIAT RI C IA N
C h i ef, P e r i n ato l o g y Un i t
M ate r n i t y H osp i t a l
N u est r a S e o r a d e l a A lt a g r a c i a
S a nto Dom i n g o, Dom i n i c a n Rep u b l i c
82
83
84
85
lines, it promotes initiatives that aim to improve the operational conditions of major maternity hospitals in the country.
Within the framework of these health services initiatives, during 2011 Popular continued to
implement its donations policy by delivering hospital supplies and specialized equipment
for the treatment of high-risk newborns. These contributions benefit patients attended at
Patronato de Ayuda al Recin Nacido (Trustees for Assistance to the Newborn) at Hospital
Regional Universitario Jos Mara Cabral (Regional University Hospital Jos Mara Cabral)
with the opportunity to obtain a high quality education, and subsequently contribute to
located in Santiago.
Our institution also made contributions to the breast cancer prevention program Hoy es
Moreover, the banks initiatives rely on programs that promote and support academic
el mejor momento (Today is the best time), by donating various equipment to the hospital
excellence, such as the ones conducted by institutions that include Universidad Central del
Maternidad Nuestra Seora de la Altagracia donations included a breast cancer and mam-
Este (Eastern Central University), el Instituto Politcnico Loyola (Loyola Polytechnic Institute)
A RD$300,000 contribution was also delivered to Fundacin del Dolor FUNDOLOR (Pain
Studies).
Foundation), in support of their actions toward ensuring the wellbeing of terminal cancer
Popular also sponsors the annual APRENDO Seminar, which is specially delivered for the
patients.
benefit of teachers by EDUCA, a non-profit organization that in 2011 addressed the theme
of full-time school programs. The event was attended by 100 teachers from the educa-
tional centers sponsored by Popular, as well as over 5,000 additional teachers from other
In the field of community social services, and within its corporate social responsibility pro-
gram, the bank promotes the sustainable development of the communities in which it has
During the prior fiscal year, these programs were further complemented by additional dona-
a presence. Our financial institution believes that corporations and communities can only
tions amounting to RD$2.0 million, which were delivered to ten other institutions dedicated
grow within an environment that is both economically and socially favorable. Toward this
end, the bank continues to work in the transfer of skills, knowledge and economic investment that can bring about the long-term sustainability of its associates.
86
Under this premise, the bank continued with its Microcredit Program for Entrepreneurs, an
In regards to health services programs Popular has established a goal to eradicate infant
initiative introduced in 2004, with the objective of providing financial resources to low-
mortality and to contribute to the overall wellbeing of the Dominican family. Along those
income individuals and families, in an effort to assist them in promoting socially sustainable
87
m R . G A B RIE L G U ZM N
E x ec u t i v e D i r ecto r ,
P l a n E st r at g i co d e l a
P r o v i nc i a E spa i l l at ( P E D E P E )
( S t r ate g i c P l a n fo r the P r o v i nce
of E spa i l l at - S P F P E )
M oc a , Dom i n i c a n Rep u b l i c
88
89
90
91
business endeavors. Since its inception, this program has improved the living conditions of
hundreds of families; furthermore, it encompasses an important self-management training
component addressed to small business, which helps entrepreneurs in acquiring the necessary skills that will enable them to manage their financial and human resources in an
effective manner.
On another note, during 2011 the employees of Banco Popular carried out a home con-
struction and refurbishing campaign for low-income families living in high-risk zones
within the province of Azua. This Endeavour aims to contribute to dignify the
living conditions of dwellers thus facilitating their participation as valuable individuals
(The United for San Pedro Foundation) and Sociedad Cultural Renovacin (Cultural
Renovation Society).
With the objective of contributing to the implementation of regional strategic plans, meet-
92
ings are held with local task-forces and development groups to motivate and train them
along the lines of the educational philosophy of the SPFPE (Strategic Plan for the Espaillat
With regards to the promotion of art and culture, Popular provides ongoing support to
Province). Several projects have been initiated in the provinces of La Vega, San Francisco de
initiatives and venues that enhance the publics awareness regarding our traditions, such
Macoris, San Juan de la Magana and San Pedro de Macoris. They are briefed on and exposed
as the publication of books, art exhibitions and participation in popular cultural activities.
to the experiences acquired through the SPFPE Board, which is the entity with which the
As in previous years, our financial organization held the XIV version of its traditional
Concierto Altagraciano (concert in honor of Our Lady of the Highest Grace), which was per-
We hold solidarity meetings with the major non-profit institutions that are sponsored by
formed by the National Symphony Orchestra and constitutes a major event within the scope
Popular through its community social service actions, to allow them the opportunity to
of activities offered in honor of the Altagracia devotion, one of the eldest in America.
meet, exchange ideas and experiences and mutually capitalize on their joint ventures.
Under the directorship of Maestro Jos Antonio Molina, on this occasion the Symphony
Participating institutions include: FUNDASEP, Canillitas con Don Bosco (Newspaper Boys
Orchestra performed a program that included themes of two European authors and of one
with Don Bosco) and Centro de Integracin Familiar (Family Integration Center), all in
Dominican composer.
field of education; PRO-UNPHU and the program Santo Domingo Verde (Green Santo
As in previous year, the financial entity made a new contribution toward Dominican biblio-
Domingo - implemented by the Capitals city council) in the field of environment; Salud
graphical and cultural heritage, through the launching of the book Mar Azul of the author-
y Asistencia (Health and Assistance) a medical facility and Hogar Crea, in the health seg-
ship of underwater photographer Jos Alejandro lvarez. The work is an invitation to read-
ment. In the field of Arts and Culture institutions include Cmara de Comercio Domnico-
ers, to meditate on the riches of our oceans and sea, and advocates responsible use of
natural resources.
93
94
MR . J O S ANT O NI O M O L INA
D i r ecto r
N at i on a l S y mphon y O r chest r a
S a nto Dom i n g o, Dom i n i c a n Rep u b l i c
95
If we were to establish a parallelism between the bank at the vanE v e r y y e a r , the N at i on a l S y mphon y
O r chest r a p r esents the Dom i n i c a n
a u d i ence w i th i ts t r a d i t i on a l C once r to
A lt a g r a c i a no ( conce r t i n hono r of O u r
L a d y of the H i g hest G r a ce ) w h i ch i s
one of the m a n y a ct i v i t i es sponso r e d
b y B a nco P op u l a r to r e i nfo r ce o u r
c u lt u r a l i d ent i t y
guard of the national banking market, and the major musical institution in the nation, such as the Symphony Orchestra, one would find
that there is synergy between the two.
All of the instruments that comprise a symphony orchestra are of
vital importance, in one way or the other. From the bass to the piccolo: from the violin to the cello and the trumpet. Each one of those
ingredients provides me with a great orchestra and allows the
achievement of coherence and high performance.the same holds
96
97
On the other hand, our continued support to Dominican visual artists has enabled the
institution to attain the best national art collection of since the XIX Century. To this end, at
year end 2011, the bank organized a temporary art exhibit entitled Ambitos Enlazados
(Linked Environments) at the Perell Cultural Center in the city of Bani, which included a
selection of its major artwork. During the referred exhibit, the public was able to observe
over fifty pieces of artwork created by the most outstanding painting and sculpting maestros, both of Dominican nationality as well as foreign artists residing in the country, during
the XIX and XX centuries.
Other cultural sponsorship included our support to the Dominican carnival activities, particularly to the annual Carnival held in La Vega, in which our employees have been participating actively for the past two decades with their dance group Los Truenos (Thunder),
comprising Diablos Cojuelos (carnival folk-character).
Likewise, the financial entity sponsored the Concert Series of Villa de Santo Domingo, an
important cultural venue consisting of various concerts, recitals and educational lectures to
authenticate classical music and the valuable cultural and historical heritage of the Colonial
City, which has been declared World Heritage by UNESCO. These concerts were attended by
over 600 students of various educational centers located in the Capital City, and by the
F i n a nc i a l S t atements
S t at u to r y B a s i s
public at large.
Banco Popular
Dominicano, S. A.
During the venue of the Santo Domingo Book Fair, the banking institution sponsored a
Banco Mltiple
The twentieth anniversary of the theatrical stage play The Miracle of Christmas was commemorated during the Christmas holidays in December last year. Over 500 children from
low-income communities and foster- home residents were invited to view the play which
is offered as a family entertainment performance.
98
99
90
101
appropriateness of accounting policies used and the reasonableness of accounting estimates made
by management, as well as evaluating the overall presentation of the financial statements.
We have audited the accompanying financial statements of Banco Popular Dominicano, S. A. - Banco
Mltiple, which comprise the balance sheet at December 31, 2011 and the statements of income,
cash flows and changes in shareholders equity for the year then ended, and a summary of significant accounting policies and other explanatory notes.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position
of Banco Popular Dominicano, S. A. - Banco Mltiple at December 31, 2011, and its financial performance and its cash flows for the year then ended in accordance with accounting standards promulgated by the Superintendence of Banks of the Dominican Republic, as described in Note 2 to the
accompanying financial statements.
Other Matter
The accompanying financial statements are not intended to present the financial position and the
results of operations and cash flows in accordance with accounting standards in jurisdictions other
than the Dominican Republic. Therefore, the balance sheet and the statements of income, cash
flows and changes in shareholders equity and their use are not designed for those who are unfamiliar with the accounting practices and procedures promulgated by the Superintendence of Banks of
the Dominican Republic.
PwC Repblica Dominicana, PricewaterhouseCoopers, Ave. John F. Kennedy esq. Lope de Vega, Edificio Banco Nova Scotia,
3er Piso, Apartado Postal 1286, Santo Domingo, Rep. Dom. Telfono (809) 567-7741, Telefax (809) 541-1210, RNC 1-01-015162
102
103
Balance Sheet
Balance Sheet
(Amounts in RD$)
(Amounts in RD$)
ASSETS
104
At December 31,
2011
2010
5,912,717,519
30,414,140,474
1,325,718
5,406,020,179
1,996,016,474
5,033,150,556
25,026,743,949
1,309,750
5,032,417,466
1,524,094,446
43,730,220,364
36,617,716,167
21,311,039,605
555,536,142
(30,175,321)
355,060,424
22,074,888,729
529,049,451
(59,964,865)
21,836,400,426
22,899,033,739
125,742,139,978
1,184,485,674
979,924,700
766,591,502
1,252,095,124
(3,387,389,720)
108,968,274,904
972,290,818
1,048,834,555
965,194,582
947,893,716
(3,685,422,793)
126,537,847,258
109,217,065,782
56,850,403
38,604,374
479,528,071
-
709,653,649
891,544
479,528,071
710,545,193
2,566,376,572
(1,389,006,357)
1,766,360,675
(1,294,353,411)
1,177,370,215
472,007,264
452,759,092
(17,425,951)
122,722,530
(7,524,816)
435,333,141
115,197,714
11,201,565,990
(1,787,453,995)
7,916,825,419
(1,480,553,049)
9,414,111,995
6,436,272,370
1,435,864,307
50,345,969
461,227,598
(41,012,229)
1,541,725,254
57,866,944
455,164,140
(38,146,932)
1,906,425,645
2,016,609,406
205,574,087,518
178,523,052,009
25,705,568,926
21,121,907,125
574,948,477,815
419,192,988,807
At December 31,
2011
2010
36,964,063,209
66,638,119,047
34,537,858,550
101,677,533
34,937,363,306
59,494,930,819
27,223,721,938
62,774,274
138,241,718,339
121,718,790,337
3,688,023,888
1,167,594,946
2,463,023
2,201,081,988
11,893,826
1,590,651
4,858,081,857
2,214,566,465
8,861,420
4,699,306,662
8,577,066
8,861,420
801,112,465
1,169,108
4,716,745,148
811,142,993
56,850,403
38,604,374
31,764,478,033
108,898,989
29,502,470,941
61,089,075
31,873,377,022
29,563,560,016
3,596,262,801
3,183,133,750
4,044,744,043
5,988,199
4,039,038,431
4,696,515
4,050,732,242
4,043,734,946
187,393,767,812
161,573,532,881
TOTAL LIABILITIES
SHAREHOLDERS EQUITY (Note 21)
Paid-in capital
Additional paid-in capital
Other equity reserves
Revaluation surplus
Unrealized losses on available-for-sale investments
Accumulated results from prior years
Results for the year
TOTAL SHAREHOLDERS EQUITY
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
Contingent accounts (Note 24)
Memorandum accounts
10,382,880,950
2,128,805,560
1,038,288,095
779,917,660
3,179,530
3,847,247,911
9,317,393,100
1,702,610,420
931,739,310
800,390,866
(3,396,621)
577,844,893
3,622,937,160
18,180,319,706
16,949,519,128
205,574,087,518
178,523,052,009
25,705,568,926
21,121,907,125
574,948,477,815
419,192,988,807
Manuel A. Grulln
Lissette De Jess
President
Vicepresident of Finance
Ignacio J. Guerra
Senior Executive Vicepresident
of Finance, Technology and Operations
105
Income Statement
(Valores en RD$)
(Amounts in RD$)
Financial income (Note 25)
Interests and commissions on loans
Interests on investments
Gain from investments
Financial expenses (Note 25)
Interests on deposits
Loss on investments
Interests and commissions on borrowed funds
At December 31,
2011
2010
18,890,790,644
2,115,156,287
1,018,684,678
15,134,580,593
1,821,713,514
1,129,310,660
22,024,631,609
18,085,604,767
(5,191,742,214)
(115,505,053)
(56,768,796)
(3,446,755,791)
(106,570,144)
(1,690,108)
(5,364,016,063)
(3,555,016,043)
16,660,615,546
14,530,588,724
(2,289,595,491)
(11,162,813)
(2,550,311,301)
(43,833,877)
(2,300,758,304)
(2,594,145,178)
14,359,857,242
11,936,443,546
4,899,113,932
659,259,946
31,817,760
4,255,495,484
653,985,772
31,935,820
5,590,191,638
4,941,417,076
(134,314,741)
(25,407,923)
(487,255,985)
(100,421,126)
(728,490,160)
(587,677,111)
(6,364,807,373)
(1,696,091,641)
(698,403,510)
(257,310,870)
(5,481,351,447)
(5,346,556,884)
(1,303,706,830)
(605,385,362)
(338,324,921)
(4,475,044,497)
(14,497,964,841)
(12,069,018,494)
Operating result
4,589,279,138
4,195,757,094
1,324,370,552
(658,958,044)
1,293,602,620
(704,383,956)
665,412,508
589,218,664
5,254,691,646
4,784,975,758
(1,320,161,609)
(1,043,498,897)
(611,918,918)
(116,571,242)
Operating expenses
Salaries and benefits to employees (Note 28)
Services from third parties
Depreciation and amortization
Other provisions
Other expenses (Note 29)
3,934,530,037
At December 31,
2011
2010
18,382,434,593
2,991,849,221
5,590,191,638
(5,098,411,057)
(48,069,154)
(13,188,034,405)
(728,490,160)
(1,138,364,513)
776,966,751
14,939,765,892
2,588,464,551
4,941,417,076
(3,365,344,608)
(1,130,124)
(10,973,894,381)
(587,677,111)
(1,148,414,713)
563,105,325
7,540,072,914
6,956,291,907
792,269,607
(3,085,667,000)
3,085,667,000
(138,787,834,794)
118,309,967,547
(3,682,215,486)
30,906,415
330,487,551
(7,012,841,151)
(4,225,000,000)
4,225,000,000
(134,554,945,749)
111,445,260,100
(1,156,458,453)
296,263,367
304,289,685
(23,006,419,160)
(30,678,432,201)
2,812,077,325,052
(2,790,688,690,198)
8,231,016,473
(4,332,822,276)
1,200,376,984
(3,908,355,592)
2,452,000,307,156
(2,432,579,841,130)
799,557,803
(20,789,105)
1,900,700,130
(2,888,107,008)
22,578,850,443
19,211,827,846
7,112,504,197
36,617,716,167
41,128,028,615
43,730,220,364
36,617,716,167
(4,510,312,448)
3,741,476,861
Manuel A. Grulln
Lissette De Jess
President
Vicepresident of Finance
106
Ignacio J. Guerra
Senior Executive Vicepresident
of Finance, Technology and Operations
107
(Amounts in RD$)
(Amounts in RD$)
At December 31,
2011
2010
Reconciliation between the result for the year and the net
cash provided by operating activities:
Result for the year
3,934,530,037
2,289,595,491
11,162,813
20,393,279
182,612,481
54,305,110
698,403,510
(171,762,970)
155,897,267
71,004,856
(18,109,513)
2,550,311,301
43,833,877
43,025,494
155,415,722
139,883,705
605,385,362
(28,682,557)
71,635,217
(112,766,421)
9,184,844
79,712,290
5,705,612
238,071,662
(5,636,739)
76,778,421
5,705,612
166,538,324
(534,842,741)
143,028,176
320,115,606
7,520,975
(51,661,873)
96,325,187
(1,119,185)
(450,804,180)
(165,773,066)
(604,473,321)
(147,609,568)
76,265,554
795,782,309
3,605,542,877
3,214,815,046
7,540,072,914
6,956,291,907
Additional
Paid-in
Capital
Paid-in
3,741,476,861
Capital
Balance at January 1, 2010
Transfer from accumulated
results
Capital contributions
(Note 21)
Effect of the sale of revalued
assets
Effect of the depreciation
of revalued assets
Unrealized losses
on available-for-sale
investments
Dividends paid (Note 21):
Cash
Shares
Results for the year
Transfer to other equity
reserves
Revaluation
Surplus
Accumulated
Results from
Prior Years
Results
For the
Year
Total
Equity
7,933,712,500
1,149,138,180
793,371,250
821,812,625
265,950,843
3,232,392,580
1,357,642,950
543,057,180
1,900,700,130
(1,593,400)
4,061,188
2,467,788
(19,828,359)
19,828,359
(3,396,621)
26,037,650
-
10,415,060
-
(2,888,107,008)
(36,452,710)
-
3,741,476,861
(2,888,107,008)
3,741,476,861
138,368,060
9,317,393,100
1,702,610,420
931,739,310
800,390,866
3,622,937,160
857,391,150
342,985,834
1,200,376,984
2,059,075
852,528
19,266,659
3,396,621
3,396,621
208,096,700
-
83,209,306
-
106,548,785
10,382,880,950
2,128,805,560
1,038,288,095
779,917,660
3,179,530
Other Equity
Reserves
Unrealized
Gain (Loss)
on Available
-for-Sale
Investments
(3,396,621)
(3,396,621)
(1,206,547)
(19,266,659)
577,844,893
(3,908,355,592)
(291,306,006)
-
3,232,392,580
(3,232,392,580)
(138,368,060)
3,622,937,160
(3,622,937,160)
3,934,530,037
(106,548,785)
3,847,247,911
14,196,377,978
-
16,949,519,128
-
(3,908,355,592)
3,934,530,037
18,180,319,706
Manuel A. Grulln
Lissette De Jess
President
Vicepresident of Finance
108
Ignacio J. Guerra
Senior Executive Vicepresident
of Finance, Technology and Operations
Manuel A. Grulln
Lissette De Jess
President
Vicepresident of Finance
Ignacio J. Guerra
Senior Executive Vicepresident
of Finance, Technology and Operations
109
At December 31, 2011 and 2010, the Bank maintained branches and automatic teller machines (ATMs) in personal business centers located in the city of Santo Domingo and provinces
throughout the country as indicated below:
2011
Location
Offices
ATM
Agencies
Total
Metropolitan Area
98
350
448
Provinces
97
332
431
195
682
879
Total
2010
Location
The main executives of the Bank in the areas of business and operations are as follows:
Metropolitan Area
Name
ATM
Agencies
Total
92
333
425
Position
Provinces
100
316
418
Manuel A. Grulln
President
Total
192
649
843
Ignacio J. Guerra
Christopher Paniagua
Alex Pimentel
Jos Mrmol
Juan Lehoux A.
Fernando Olivero
Ren Grulln F.
Antonia Antn
Miguel A. Rodrguez
The Bank is regulated by the Monetary and Financial Law and its regulations, as well as by
resolutions of the Monetary Board and the Superintendence of Banks of the Dominican
Republic.
110
Offices
The Bank maintains its accounting records and prepares its financial statements in
Dominican pesos (RD$).
The issuance of the financial statements was approved by the Board of Directors on
February 23, 2012.
2.1
111
iv)
Interests receivable with a maturity of less than 90 days is provided for in accordance
with the classification applicable to the related loans portfolio, while interest past
due for 90 days is fully provided for, except for the credit card transactions that are
100% provided for after 60 days past due. From these terms, loans become nonaccrual and are accounted for in off balance sheet accounts. Pursuant to International
Financial Reporting Standards, the provision for interest receivable is determined
based on the inherent risks of the loans portfolio. In case of impaired loans, these are
adjusted and subsequently the accrual of interests continues on the adjusted
balance basis, by using the effective interest rate.
v)
vi)
Financial entities translate all the transactions in foreign currency at the official
exchange rate established by the Central Bank of the Dominican Republic at the date
of the balance sheet. International Financial Reporting Standards require that all
balances in foreign currency be translated at the spot exchange rate at the date of
the balance sheet.
vii)
ii)
iii)
112
viii) The Superintendence of Banks of the Dominican Republic requires that the provision
for loans outstanding at the time of executing their collateral, be transferred and
applied to the related asset acquired. International Financial Reporting Standards
only require allowance when the fair value of the asset is less than its book value or
when impairment exists.
ix)
There are differences between the presentation and certain disclosures of the
financial statements according to International Financial Reporting Standards and
those required by the Superintendence of Banks of the Dominican Republic.
x)
113
xii)
xviii) The Superintendence of Banks of the Dominican Republic does not require that the
financial statements be adjusted for inflation. International Financial Reporting
Standards require that financial statements be adjusted for inflation when the
accumulated inflation over the last three years exceeds 100% and when there are
qualitative factors that contribute to the existence of a hyperinflationary economy.
xiii) The Superintendence of Banks of the Dominican Republic requires that financial
institutions classify the investments in securities into four categories: trading,
available-for-sale, held to maturity and other investments in debt instruments. The
last category includes those investments that are not traded in an active or organized
market and cannot be classified in the previous three categories. International
Financial Reporting Standards do not establish the category of other investments in
debt instruments and the classification depends on the managements intention.
xiv) The Superintendence of Banks of the Dominican Republic requires that the cash
flows of the loans portfolio and customer deposits be classified as investing and
financing activities, respectively. International Financial Reporting Standards require
that cash flows of these transactions be classified as operating activities.
xv)
xvi) The Superintendence of Banks do not require the accounting of derivatives in the
contracts for foreign currency hedging that the Bank settled with the Central Bank of
the Dominican Republic and in addition, allows that the amounts in foreign currency
sold at the end of year pursuant to these contracts, be disclosed as balance
denominated in foreign currency in the note to the financial statements. International
Financial Reporting Standards require the accounting of derivatives that are included
in these contracts, as well as the disclosure of assets and liabilities denominated in
foreign currency outstanding at the end of year.
xvii) In accordance with the current banking regulations, the Bank should quantitatively
disclose the risks at which it is exposed derived from its financial instruments, such
as the liquidity and interest rate risks and the credit quality of the loans, among
114
The effects on the financial statements of these differences between the accounting bases
established by the Superintendence of Banks and International Financial Reporting
Standards have not been quantified.
2.3 Use of estimates
The preparation of financial statements requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities, the disclosure of
contingent assets and liabilities at the date of the financial statements and the reported
amounts of income and expenses during the period. The estimates are mainly used to
record the provisions for risky assets, benefits to employees and executives, loyalty program,
depreciation and amortization of long-term assets, impairment of long-lived assets,
deferred income tax and contingencies. Actual results could differ from these estimates.
2.4 Financial instruments
A financial instrument is defined as cash, evidence of ownership or interest in an entity or
an agreement that generate a contractual obligation or right to deliver or receive cash or
another financial instrument from a second entity under potentially favorable terms to the
first entity.
The estimated market values of the Banks financial instruments, their book values and the
methodologies used to estimate them are as follows:
115
Held to maturity: These are investments that the Bank acquires with the intention and
ability to hold to maturity, and are traded in an active or organized market. They are
recorded at their amortized cost using the effective interest method. The premium or
discount is amortized with a charge to results over the life of the instrument. Net held
to maturity investments do not exceed their net realizable values.
Available-for-sale: These are securities held by the entity to obtain an adequate return
from their temporary cash surplus or those investments that the entity is willing to sell
at any time, and are quoted in an active or organized market. Available-for-sale
investments are originally recorded at their fair value, and the premium or discount
that has been acquired is amortized over the life of the instrument using the effective
interest rate. Its value is adjusted daily at the market value outstanding at the closing
date. The changes in the market value are recognized in equity as an unrealized gain
or loss.
For obligations with the public, deposits in local and foreign financial institutions,
certificates of deposit, borrowed funds and subordinated debt, their fair value was not
estimated, because there is no active market in the Dominican Republic for such
instruments.
Loans portfolio
The loans portfolio is stated at its book value, adjusted for the estimated losses applied to
uncollectible loans, as established by the regulating authorities. Loans were segregated by
types, such as commercial, consumer and mortgage.
Other investments in debt instruments: These include all other investments in securities that
are not traded in active or organized markets, and are not included in the previous
three categories. They are recorded at their amortized cost using the effective interest
method.
The type of security or financial instrument and its amount is presented in Note 6.
Trading: These are investments that the entity acquires with the intention of obtaining
profits derived from fluctuations in prices and form part of a portfolio of debt
instruments identified and managed together, which are traded in a stock exchange
market or other organized market. These securities should not remain in this category
more than 180 days after the date of acquisition, the period during which they must be
sold. Investments in trading securities are originally recorded at their fair value and the
premium or discount that has been acquired, is amortized over the life of the
instrument using the effective interest rate. The changes in fair value are recognized in
the income statement as a gain or loss from securities fluctuation.
116
117
118
provisions are those resulting from loans with potential or implied risk. All those provisions
from loans classified as "A" are considered generic (these provisions are the minimum set
by the Superintendence of Banks). The procyclical provisions are those that the Bank may
constitute to address the potential risk of assets and contingencies linked to the changes
in the economic cycle, up to 2% of assets and risk-weighted contingencies.
The excess in the provision for loans should not be released without the prior authorization
from the Superintendence of Banks, except the provisions for interests receivable over 90
days and loans D and E in foreign currency.
The REA provides for loans in foreign currency rated D and E, the suspension of the revenue
recognition arising from the positive difference in the exchange fluctuation by establishing
a provision for 100% of the difference generated. On July 25, 2011 the Superintendence of
Banks issued the Circular Letter SB 002/11 which establishes for a transitory period until
July 31, 2013, that the constitution of provision for past due loans less than 90 days will not
be required.
For the past due loans portfolio in installments, the Bank applies a drive mechanism by
which the total principal is considered as past due when one of the installments come into
this condition.
The Bank assigns an initial classification no less than C to the restructured loans,
independently of their payment capacity and performance and country risk, which can be
modified to a lower risk category depending on the payment performance. It also assigns
a risk rating of no less than "D" to consumer and mortgaged restructured loans for the
purpose of recording the corresponding provision, and should be maintained in such
category depending on the payment performance, but in no case the classification should
be less than "B".
The write-off of loans is made up of transactions by which the unrecoverable items are
written off of the balance sheet, and only remain in off-balance sheet accounts. In the event
that the financial institutions do not fully provide for a loan, it must constitute the remaining
amount before the write-off, thus the level of provisions required for the other loans are not
affected. A loan can be written off, with or without collateral, from the first day it is past due,
excluding loans with related parties which can only be written off when it is demonstrated
that all legal proceedings for recovery and the executives and/or directors directly related
have been removed from their duties. Written-off loans remain in memorandum accounts
until the reasons that led to their write-off are overcome.
Collaterals, as a safety factor in the recovery of credit operations, are considered as a
secondary element and are not considered in the classification of the debtor, but they are
thus considered as a secondary element in the computation of the coverage of the
necessary provisions based on an established admissible amount (in the case of the
commercial debtors). These collaterals securing the loan transactions are classified,
according to the REA, in terms of their multiple uses and of easy market realization. The
admissible collaterals are accepted based on the discount rates established by such
regulation, on their market values. These are classified as follows:
119
Depreciation is provided on a straight-line basis over the estimated useful life of the assets.
The Bank depreciates the appraised values through the charge to the results of the period
and the credit to the accumulated depreciation account.
Non-polyvalent
Type of Assets
These are the collaterals supported by goods that generally, due to their difficult realization
because of their specialized origin, cannot be used for different activities. These collaterals
will apply only between 30% and 70% of their appraised value for the purpose of the risk
coverage they support.
The Bank applies Circular Letter SB 001/11 issued by the Superintendence of Banks, which
establishes that, until June 30, 2013, the financial institutions will be able to consider as
collateral up to 90% of the market value of warrants of inventories, and provide for the
collaterals constituted by industries of a sole use, a similar treatment as the one applied to
the industries of multiple use. The collaterals are valued at their market value; this means
their net realizable value, through appraisals or reports prepared by qualified and
independent professionals, not older than 12 months for moveable properties, excluding
those securities with fixed interest rate, and a term not exceeding 18 months for real
estate.
2.6.3 Provision for interests receivable
The provision for current interests receivable is calculated using specific percentages
according to the classification granted to the correlative loans, following the credit
evaluation criteria established in the REA.
Interests receivable of 90 days in arrears are 100% provided for, except for those relating to
credit card transactions, which are 100% provided for when overdue for 60 days. From
these terms they become non-accrual and are accounted for in off balance sheet accounts
and are recognized as income when collected.
2.7 Valuation of property, furniture and equipment and depreciation
method used
2.7.1 Basis of accounting
The property, furniture and equipment are recorded at the acquisition cost less the
corresponding accumulated depreciation, except for certain land and buildings that are
stated at market value as determined by independent appraisers as of December 31, 2004,
as allowed by the Prudential Standards of Equity Adequation. The costs of maintenance
and repairs that do not improve or increase the asset's useful life are charged to expenses
as incurred. The cost of renovations and improvements are capitalized. When assets are
retired, their costs and related accumulated depreciation are removed from the
corresponding accounts and any gain or loss is included in the results.
120
2.7.2 Depreciation
Buildings
Furniture and equipment
Estimated Useful
Life (Years)
30
5-10
Transportation equipment
Computer equipment
Decorations
Leasehold improvement
According to the Monetary Board resolution, any investment in fixed assets in excess of
100% of the normative capital should be provided for during the year.
2.8 Valuation of assets acquired through settlement of loans
2.8.1 Basis of accounting
Assets acquired through settlement of loans are recorded at the lowest cost of:
a) The agreed upon value in the payment transfer or the value assigned through a court
decision, whichever applies.
b) Market value at the incorporation date of the asset.
c) Principal loan balance plus interests and/or accounts receivable at the cancellation
date.
2.8.2 Provision for assets acquired through setllement of loans
The REA provides for a maximum period of three years to make provision for the assets
acquired through settlement of loans, beginning 120 days from the settlement date or date
of the final court decision. The provision should be recorded according to the following
criteria:
Moveable properties
Real estate
121
122
own and must be managed by a Pension Fund Administrator (AFP). The contributions
made by the Bank are recognized as expenses when incurred. At the age of retirement the
employee receives the amount of the contributions made by the employee and the
employer, plus the return of the Individual Capitalization Account (CCI). Officers and
employees of the Bank are primarily affiliated to the related company Administradora de
Fondos de Pensiones Popular, S. A.
2.12.3 Severance payment
The Labor Code of the Dominican Republic provides for the payment of notice and
dismissal to those employees whose employment contracts are terminated without a
justified cause. The Bank records as expense the amounts paid for these situations at the
time of the termination of the employment contracts.
2.13 Certificates of deposits and subordinated debt
The certificates of deposits and subordinated debt are comprised of the obligations arising
from the funds obtained from the public through the issuance of bonds, mortgages
certificates, financial certificates, investment certificates and other securities issued by the
Bank that are held by the public.
The Bank maintains a debt obtained through the issuance of debt securities denominated
"Subordinated Debt Bonds" authorized by the National Securities Council, delivered to the
management of Cevaldom Depsito Centralizado de Valores, S. A., as the paying agent and
custodian. Subordinated debt is initially recorded at fair value, net of the costs incurred in
the transaction.
Financial expenses for interests, commissions, foreign exchange differences and other
financial charges incurred in those obligations are recorded in the period in which they
accrue.
2.14 Recognition of revenues and expenses
Financial income and expenses
The Bank records income from interests on loans portfolio by the accrual method. Interests
on loans are calculated using the simple interest method on outstanding principal amounts.
Interests on loans are no longer recognized when the loan has 90 days in arrears (except for
the case of credit card transactions, which are no longer recognized at 60 days in arrears).
From these dates they are recorded in a suspense account. Once they are recognized under
this condition, the interest income is recognized when collected.
Interest income on investments in securities is recorded on an accrual basis of simple
interest.
Interest expense of interests on deposits is recorded in the income statement on an accrual
basis of simple interest, except those corresponding to saving accounts and financial
certificates with capitalized interests, which are accrued using the compound interest
method.
123
124
be recognized as a loss will be equal to the excess of the book value over the recoverable
value of the asset and it is charged to the results of the year in which it is determined.
2.18 Contingencies
The Bank considers as contingency, the operations for which the entity has assumed credit
risks that, depending on future events, can become direct credits and generate obligations
to third parties.
Provision for contingencies
The provision for contingent operations, which is classified under the other liabilities item,
corresponds to a provision for guarantee bonds, endorsements and letters of credit and
lines for unused credit cards, among others, which is determined jointly with the other
obligations of the loans portfolio debtors, and is determined based on the risk rating
granted to the corresponding loans portfolio and the admissible collateral deductible for
the purposes of calculating the provision. The nature and amounts of contingencies are
detailed in Note 24 to the financial statements.
The excess in provision for contingencies should not be released without prior authorization
from the Superintendence of Banks.
2.19 Provisions
The Bank recognizes provisions when the entity has a present obligation as a result of a past
event; it is probable that an outflow of resources embodying economic benefits will be
required to settle such obligation and the amount of the obligation can be reliably
estimated.
2.20 Accounts receivable
Accounts receivable are recorded at amortized cost, net of any impairment loss.
The expense for doubtful accounts is established through a charge to an expense account
for losses on doubtful accounts. These accounts receivable are charged to results when
management believes that their collection is uncertain, according to the payments received,
the clients historical payment and the evaluation of collaterals, where they exist.
2.21 Distribution of dividends
The Bank's policy is to decide on the disposition of the earnings of the year, in accordance
with the approval granted by the Shareholders meeting, considering the provisions of the
Resolution No. 12-2001, issued by the Superintendence of Banks of the Dominican Republic
dated December 5, 2001, which provides that the maximum amount of cash dividends to
be distributed to shareholders shall not exceed the amount of accumulated benefits
effectively received.
125
(a)
The revaluation surplus is the difference between the appraised value by independent
experts and the book value of land and buildings at the date of the appraisal, net of the
corresponding depreciation. The corresponding depreciation of the amount appraised is
transferred from the revaluation surplus item to the results of the year item within the
statement of changes in equity.
US$
RD$
The exchange rates used to convert foreign currency to local currency were RD$38.7243
and RD$37.4225 per each US$1.00 or its equivalent in other currencies at December 31,
2011 and 2010, respectively.
2010
RD$
469,191,115
18,169,097,469
368,979,592
13,808,138,800
35,790,625
1,385,966,893
95,392,471
3,569,824,708
685,715,909
26,553,868,567
522,098,310
19,538,224,015
1,468,081
56,850,403
1,031,582
38,604,374
407,388
15,775,825
310,429
11,617,015
70,816
2,742,258
70,816
2,650,109
528,790
20,477,027
521,396
19,511,944
150,000,000
5,808,644,974
115,000,000
4,303,587,500
1,343,172,724
52,013,423,416
1,103,404,596
41,292,158,465
Corresponds to Contracts for Foreign Currency Hedging with the Central Bank of the
Dominican Republic (BCRD), by which the Bank sold to BCRD the amounts of US$150
million and US$115 million in 2011 and 2010, respectively, to be redeemed for
Dominican Pesos, by which BCRD granted a foreign currency hedging on the amounts
of the exchange agreed by the difference between the initial rate and the exchange
rate of sale published by BCRD prevailing at each date of the hedging. The contract
settled in 2011 established that BCRD must make payments for the hedging between
January 13 and February 29, 2012. For the contract settled in 2010, BCRD made
payments for the hedging in January and February 2011. The accounting and
disclosure of these transactions are in conformity with the Circular Letter CC/07/10
issued by the Superintendence of Banks.
Available Funds
Available funds consist of:
Cash (a)
Central Bank of the Dominican Republic (b)
Local banks
2011
2010
RD$
RD$
5,912,717,519
5,033,150,556
30,414,140,474
25,026,743,949
1,325,718
1,309,750
5,406,020,179
5,032,417,466
1,996,016,474
1,524,094,446
43,730,220,364
36,617,716,167
Liabilities:
Obligations held by the
public
Deposits from local and
foreign financial
institutions
Borrowed funds
Outstanding acceptances
payable
Other liabilities
Long position in foreign
currency
126
(1,135,281,618)
(43,962,985,955)
(975,489,727)
(36,505,264,294)
(70,586,352)
(121,574,405)
(2,733,407,074)
(4,707,883,728)
(4,670,794)
(21,438,482)
(174,792,821)
(802,281,573)
(1,468,081)
(56,850,403)
(1,031,582)
(38,604,374)
(3,925,705)
(152,020,182)
(7,760,296)
(290,409,681)
(1,332,836,161)
(51,613,147,342)
(1,010,390,881)
(37,811,352,743)
10,336,563
400,276,074
93,013,715
(a)
(b)
(c)
(d)
Represents effects received from other banks pending of collection at the Clearing
House and includes US$1,355,751 in 2011 and US$4,197,496 in 2010.
3,480,805,722
127
At December 31, 2011, the required legal reserve amounts to RD$19,743,649,428 and
US$239,851,745 (2010: RD$19,697,743,172 and US$195,802,500). In 2011 the Bank
maintained cash at the Central Bank of the Dominican Republic (BCRD) and loans portfolio
in productive sectors for these purposes, of RD$20,114,522,473 and US$299,851,805. In
2010 the Bank maintained cash at BCRD, loans portfolio in productive sectors and
investments in government bonds for these purposes of RD$20,111,660,711 and
US$199,174,357. For both years the amounts exceed the minimum amount required.
Type of Investment
5 Interbank Funds
2011
Interbank Funds Assets
Quantity
Amount
RD$
Citibank, N. A.
2,170,667,000
25
6.49%
100,000,000
8.00%
100,000,000
7.75%
370,000,000
16
8.23%
345,000,000
8.09%
3,085,667,000
54
6.97%
Entity
22
No.
Days
Balance
RD$
2010
Interbank Funds Assets
Entity
Quantity
Amount
RD$
Average
Weighted
Interest
Rate
No.
Days
17
2,480,000,000
40
6.32%
410,000,000
6.59%
325,000,000
92
6.10%
20
1,000,000,000
59
6.46%
10,000,000
5.50%
4,225,000,000
201
5.89%
47
During the years ended December 31, 2011 and 2010, the Bank did not perform interbank borrowing
operations.
128
Balance
RD$
Citibank, N. A.
Banco de Ahorro y Crdito
Ademi, S. A.
Banco Mltiple Santa Cruz, S. A.
Banco BHD, S. A., Banco
Mltiple
Amount
RD$
Maturity
1,023,900,968
13.45%
Other investments in
debt instruments:
Interbank funds obtained and granted during the years ended December 31, 2011 and
2010, are the following:
Average
Weighted
Interest
Rate
Issuer
Weighted
Average
Interest
Rate
Bond
Certificate of special
investment
12,646,447,802
14.08%
760,958,836
12.60%
Short-term remunerated
deposits
4,370,000,000
6.75%
January 2012
Financial certificate
1,826,685,530
6.23%
Bonds
1,200,065
11.92%
October 2013
Bonds
140,000,000
11.67%
October 2015
Bonds
5,000,000
11.72%
March 2015
Bonds
86,536,879
11.88%
Bonds
Banco Centroamericano de
Integracin Econmica
200,000,000
12.00%
December 2014
Financial certificate
50,000,000
9.00%
February 2012
Financial certificate
197,700,000
7.00%
Financial certificate
1,500,000
5.50%
June 2012
S. A.
129
Type of Investment
Financial certificate
2010
Amount
RD$
Issuer
The Bank of Nova Scotia
1,109,525
Total
Weighted
Average
Interest
Rate
7.00%
Maturity
January 2012
21,311,039,605
Interests receivable
(includes US$47,657)
Type of Investment
(30,175,321)
Amount
RD$
Financial certificate
Financial certificate
1,444,320,030
Financial certificate
600,000,000
Financial certificate
Financial certificate
Financial certificate
Bond
Bond
Bond
555,536,142
Issuer
21,836,400,426
49,698,545
197,700,000
Weighted
Average
Interest
Rate
Maturity
N/A
February 2011
5.75%
6.65%
8.75%
January 2011
February 2011
2010
Type of Investment
Issuer
Amount
RD$
Weighted
Average
Interest
Rate
Maturity
Investments:
1,000,000
8.34%
October 2013
140,000,000
8.09%
October 2015
1,500,000
5.50%
47,104,385
6.72%
May 2011
March 2015
2,245,350
5.50%
October 2015
Banco Centroamericano de
Integracin Econmica
255,561,089
12.00%
December 2014
Financial certificate
111,802,478
2.25%
February 2015
Financial certificate
149,690,000
2.75%
February 2011
995,438,500
0.20%
January 2011
Available-for-sale
Note
Note
Note
Note
115,407,622
109,961,526
54,617,577
75,073,699
2.02%
2.55%
3.30%
1.99%
May 2013
August 2015
August 2015
October 2016
355,060,424
Other investments in
debt instruments:
Bond (a)
5,310,133,636
11.91%
13.50%
130
7,280,105,884
4,400,000,000
1,088,588,832
5.00%
12.25%
January 2011
January 2011 September 2014
Total
22,074,888,729
Interests receivable
(includes US$122,073)
529,049,451
(59,964,865)
22,899,033,739
131
(i) At December 31, 2011 and 2010 the components of the net investment in leases are as
follows:
(b) These certificates of US$26,600,000 at December 31, 2010, are collateralizing the
settlement of consumptions made by Mastercard cardholders.
7 Loans Portfolio
Leases receivable
2010
RD$
RD$
447,093,521
252,460,838
76,889,791,709
65,197,055,209
876,260,473
713,782,151
98,978,434
99,962,115
220,711,012
263,490,931
21,616,958
39,470,678
78,554,452,107
66,566,221,922
Commercial loans:
Advances on checking accounts
Loans (includes US$643,298,644 in 2011 and
US$480,770,761 in 2010)
Financial leases (includes US$12,348,808 in 2011 and
US$11,984,359 in 2010) (i)
Discounted invoices (includes US$196,174 in 2011 and
US$158,958 in 2010)
Letters of credit issued and traded (corresponds to
US$5,699,548 in 2011 and US$7,040,976 in 2010)
Sale of assets acquired through settlement of loans
(includes US$85,324 in 2011 and US$342,827 in 2010)
Outstanding (i)
Restructured (ii)
Past due:
From 31 to 90 days (iii)
485,074,473
228,930,803
228,707,678
876,260,473
713,782,151
2011
2010
RD$
RD$
76,688,591,054
64,579,087,191
895,465,255
765,895,806
42,298,340
33,880,057
451,971,156
504,680,122
476,126,302
682,678,746
78,554,452,107
66,566,221,922
27,632,211,792
25,142,987,417
191,570,523
180,277,664
20,658,916
17,668,909
294,063,124
311,931,409
207,916,795
234,609,243
28,346,421,150
25,887,474,642
21,421,337,132
19,246,200,296
97,449,896
26,117,348
2,348,432
1,268,138
168,584,732
179,405,920
82,548,405
47,906,593
21,772,268,597
19,500,898,295
Consumer loans:
6,449,102,101
5,383,963,936
21,897,319,049
20,503,510,706
28,346,421,150
25,887,474,642
Past due:
From 31 to 90 days (iii)
Mortgage loans:
Mortgage loans:
21,507,172,664
19,293,560,084
265,095,933
207,338,211
21,772,268,597
19,500,898,295
128,673,141,854
111,954,594,859
1,252,095,124
947,893,716
(3,387,389,720)
(3,685,422,793)
126,537,847,258
132
647,329,670
Subtotal
RD$
Restructured (ii)
RD$
Outstanding (i)
2010
Consumer loans:
Consumer loans
2011
Outstanding (i)
Restructured (ii)
Past due:
From 31 to 90 days (iii)
(Continued)
109,217,065,782
133
2010
RD$
RD$
c) By type of collateral:
Interests receivable:
Outstanding (i)
1,031,759,506
741,680,528
19,858,491
14,934,308
74,604,330
48,862,239
55,346,182
62,522,922
70,526,615
79,893,719
1,252,095,124
947,893,716
(3,387,389,720)
(3,685,422,793)
Restructured (ii)
Past due:
126,537,847,258
2010
RD$
RD$
67,865,681,693
57,778,336,478
4,400,323,931
4,476,799,422
56,407,136,230
49,699,458,959
128,673,141,854
111,954,594,859
1,252,095,124
947,893,716
(3,387,389,720)
126,537,847,258
(3,685,422,793)
109,217,065,782
109,217,065,782
Represent loans and interests receivable that are up-to-date in their payments.
(ii)
Represent current or past due loans and interests receivable with a change in their
payment terms and conditions, resulting in a change of the interest rate and/or
the maturity term of the original loan contract, as well as the loans that are
originated in the capitalization of interests, commissions on arrears and other
charges from a previous credit.
(i) The polyvalent collaterals are the actual collaterals which by their nature, are considered
of market realization, without any legal or administrative constraints that significantly
restrict their use or sale. These collaterals are considered between 50% and 100% of
their value for purposes of covering the risks they support, according to the collateral.
(ii) Non polyvalent collaterals are the actual collaterals which by their nature are considered
of single use, and therefore have characteristics that make them of difficult realization
due to their specialized origins.
(iii) Consist of installments of loans and interests receivable which have delays of 31 to
90 days from the payment due date.
(iv) Relate to loans and interests receivable with payment delays for more than 90 days.
For loans payable in installments, these are transferred to the past due portfolio
through the drive mechanism considering the arrears in the installment payments
more than 90 days. It also includes the advances on checking accounts with more
than one day in arrears.
(v)
2011
Own funds
Other international organizations
2011
2010
RD$
RD$
126,424,148,657
111,153,482,394
2,248,993,197
801,112,465
128,673,141,854
111,954,594,859
Interests receivable
1,252,095,124
947,893,716
(3,387,389,720)
(3,685,422,793)
126,537,847,258
109,217,065,782
2011
2010
RD$
RD$
35,571,747,234
33,831,129,770
10,028,658,040
9,235,279,755
e) By term:
83,072,736,580
68,888,185,334
128,673,141,854
111,954,594,859
Interests receivable
1,252,095,124
947,893,716
(3,387,389,720)
(3,685,422,793)
126,537,847,258
134
109,217,065,782
135
2010
2011
2010
RD$
RD$
5,342,104,381
1,817,764,306
4,607,534
1,641,442
340,435,604
229,520,951
13,897,487,949
13,605,914,554
413,219,326
1,281,340,921
3,695,996,213
2,600,893,980
27,443,351,552
22,896,640,808
10,310,167,127
7,439,863,364
2,665,855,614
3,082,349,736
Financial intermediation
1,184,807,959
2,031,046,897
7,505,685,605
6,298,165,630
32,234,719
554,598,571
921,869,170
615,964,457
1,057,011,629
873,004,149
52,989,988,169
47,598,363,727
32,626,409
7,504,695
835,692,894
1,020,016,671
128,673,141,854
111,954,594,859
Interests receivable
1,252,095,124
947,893,716
(3,387,389,720)
(3,685,422,793)
126,537,847,258
109,217,065,782
Correspondent bank
RD$
February 2011
4,496,780
January
February 2011
3,343,013
January 2011
7,987,821
January 2011
558,531
January 2011
1,616,652
January 2011
14,155,140
February 2011
5,181,145
February 2011
38,604,374
Accounts Receivable
Accounts receivable consist of:
2011
2010
RD$
RD$
39,390,000
139,322,200
87,950,802
62,253,486
161,199,804
180,180,697
13,337,208
12,695,690
Deposits in guarantee
36,975,438
31,542,168
15,959,381
118,045,258
2,590,306
3,232,123
11,594,126
95,567,973
110,531,006
66,814,054
891,544
479,528,071
710,545,193
Maturities
1,265,292
Amount
RD$
2011
Correspondent bank
Amount
March
Bank of America, Miami (corresponds to US$91,956)
3,560,916
April 2012
48,221,108
September 2014
2,038,834
January 2012
3,029,545
January 2012
56,850,403
136
April 2012
(a) Correspond to an account receivable from Central Bank of the Dominican Republic
(BCRD) in 2011 of the hedging in foreign exchange sale of US$150 million. In 2010
corresponds to: (i) sales exchange forward contract of RD$111,883,200 (see related
liability in Note 19) and (ii) RD$27,439,000 of an account receivable from BCRD of the
hedging in foreign exchange sale of US$115 million (See more detail of the exchange
hedging in Note 3).
137
2011
Amount
RD$
(g) Correspond to outstanding amounts to be collected from the settlement of the credit
card operations, incentives to be collected on sales volume of credit cards and accounts
receivable from the Treasury of the Social Security (TSS) and the General Direction of
Internal Taxes (DGII). Include US$240,246 in 2011 and US$147,553 in 2010.
4,937,000
(1,605,035)
1,463,602,972
(289,564,722)
1,468,539,972
(291,169,757)
424,780,230
(424,780,230)
90,000
(90,000)
672,966,370
(672,966,370)
1,097,836,600
(1,097,836,600)
2,566,376,572
(1,389,006,357)
2010
Amount
RD$
Provision
RD$
Up to 40 months:
Furniture and equipment
Provision
RD$
Up to 40 months:
(f ) Correspond to payments made by the Bank on behalf of its customers whose funds
from their current accounts are not sufficient enough to cover these payments. The
amounts in such accounts do not exceed one day of arrears. The amounts exceeding
this term are considered as part of the past due loans portfolio.
10
At December 31, 2011 and 2010, the aging of the assets acquired through settlement of
loans are the following:
Real estate
6,121,822
(3,202,306)
681,535,157
(212,447,409)
687,656,979
(215,649,715)
424,780,230
(424,780,230)
2010
RD$
RD$
Securities
Furniture and equipment
Real estate
Securities
Furniture and equipment
Real estate
Provision for assets acquired through settlement of
loans
424,780,230
424,780,230
5,027,000
6,216,822
2,136,569,342
1,335,363,623
2,566,376,572
1,766,360,675
(1,389,006,357)
(1,294,353,411)
1,177,370,215
138
Total
95,000
(95,000)
653,828,466
(653,828,466)
1,078,703,696
(1,078,703,696)
1,766,360,675
(1,294,353,411)
472,007,264
139
11 Investment in Shares
The movement of property, furniture and equipment during the years 2011 and
2010, is as follows:
Issuer
Consorcio de Tarjetas
Dominicanas, S. A.
(Cardnet) (a)
Other (b)
Investment
Amount
RD$
445,969,982
Equity
Percentage
18.4%
6,789,110
Type of
Shares
Common
Nominal
Value
RD$
RD$100
Market
Value
RD$
N/A
523,056
Common
(17,425,951)
2010
Consorcio de Tarjetas
Dominicanas, S. A.
(Cardnet)
Other (b)
Investment
Amount
RD$
Equity
Percentage
Type of
Shares
Nominal
Value
RD$
Market
Value
RD$
Quantity
of Shares
Land
Buildings
Furniture and
Equipment
RD$
RD$
RD$
1,649,239,283
2,820,502,184
2,432,641,103
2010
Leasehold
Improvements
Diverse and
Construction
in Progress (a)
Total
Total
RD$
RD$
RD$
RD$
107,992,782
906,450,069
7,916,825,421
7,312,277,891
3,376,495,038
3,682,215,486
1,181,439,180
Acquisitions
128,366
305,460,811
131,271
Retirements
(8,406,962)
(151,256,001)
(491,015)
472,016,271
150,583,516
110,733,996
(24,679,837)
(733,333,783)
(184,833,815)
(367,498,200)
(139,289,736)
Reclassification
(b)
(1,091,072)
18,330,976
35,863,096
(105,397,511)
(52,294,511)
Other (c)
Write-off of
assets fully
depreciated
(8,447,996)
(131,437,569)
(19,994,304)
(466,722)
(160,346,591)
Gross value at
December 31
1,799,951,165
2,913,290,150
2,945,755,591
123,501,830
3,419,067,254
11,201,565,990
126,799,372
(196,903,088)
7,916,825,419
Accumulated
depreciation at
January 1
(442,205,397)
(972,076,978)
(51,873,952)
(14,396,723)
(1,480,553,050)
(1,295,294,296)
(107,774,228)
(483,717,839)
(33,695,119)
(16,040,863)
(641,228,049)
(560,081,647)
116,028,459
5.0%
Common
RD$100
N/A
142,333
Depreciation
expense
6,694,071
N/A
Common
N/A
N/A
N/A
Retirements
2,333,327
148,564,485
491,015
16,683,158
168,071,985
186,469,043
Write-off
of assets
fully depreciated
8,447,996
131,437,569
19,994,304
466,722
160,346,591
196,903,088
Reclassification
916,051
649,729
6,940,828
(2,598,080)
Accumulated
depreciation at
December 31
(58,142,924)
(15,885,786)
122,722,530
Provision for
investments in
shares (c)
Gross value at
January 1
Transfers
435,333,141
Issuer
2011
Quantity
of Shares
452,759,092
Provision for
investments in
shares (c)
(7,524,816)
115,197,714
Property,
furniture and
equipment,
net at
December 31
(538,282,251) (1,175,143,034)
65,358,906 3,403,181,468
5,908,528
(1,787,453,995)
9,414,111,995
(8,549,237)
(1,480,553,049)
6,436,272,370
141
2010
Sundry assets
Assets acquired or built for sale (b)
RD$
RD$
Construction in progress
Disused assets
Moveable assets granted under operating leases
2,871,187,927
797,414,776
39,385,249
50,520,896
508,494,078
58,514,396
3,419,067,254
906,450,068
(b) Corresponds to technological projects and leasehold improvements that were finished
and reclassified in the year to the account of software pending of authorization under
the item of sundry assets.
(c) In 2010 corresponds to reclassifications of leasehold improvements of RD$66.7 million
authorized by the Superintendence of Banks and of accounts receivable from advances
to construction in progress of RD$60 million.
13
2010
RD$
RD$
144,500,000
144,500,000
110,833,403
53,273,872
29,441,424
27,251,510
124,800,121
196,012,061
409,574,948
421,037,443
51,652,650
34,126,697
461,227,598
455,164,140
1,906,425,645
2,016,609,406
Other Assets
Other assets include:
Deferred charges
Deferred income tax (Note 22)
2011
2011
2010
RD$
RD$
1,047,788,629
876,025,659
141,261,121
147,034,059
48,960,208
250,732,987
179,290,281
175,009,446
83,243,151
18,564,068
9,679,952
1,435,864,307
1,541,725,254
Intangibles
Software
50,345,969
57,866,944
(41,012,229)
(38,146,932)
9,333,740
19,720,012
Subtotal
142
143
14
Loans
Portfolio
RD$
(112,211,524)
5,237,461,186
Transfers of
provisions
393,431,336
2,558,069,174
Write-off
against
provisions
(2,279,377,917)
2011
Loans
Portfolio
RD$
Balances at
January 1, 2011
Constitution of
provisions
Transfers of
provisions of
assets acquired
through
settlement of
loans
3,495,688,790
2,289,595,491
Interests
Receivable
RD$
Investment
RD$
67,489,681
11,162,813
Other
Assets (b)
RD$
189,734,003
182,612,481
Contingent
Operations (c)
RD$
1,294,353,411
20,393,279
Total
RD$
190,195,301
54,305,110
Effect of
exchange
differences
(166,046,790)
166,046,790
122,846,524
(31,582,255)
103,688
(55,999,999)
(35,367,958)
(2,600,828,926)
(204,154,642)
(35,787,124)
(2,840,770,692)
77,293,631
531,033
545,470
1,342,156
79,712,290
Balances at
December 31,
2011
3,218,548,720
47,601,272
168,841,000
1,389,006,357
210,474,609
5,034,471,958
Minimum
provisions
required at
December 31,
2011 (a)
3,083,993,806
47,601,234
168,645,066
1,389,006,357
210,469,643
4,899,716,106
Excess over
minimum
provisions
134,554,914
38
195,934
4,966
134,755,852
Transfers of
provisions
Write-off against
provisions
Effect of
exchange
differences
Loans
Portfolio
RD$
Investment
RD$
Interests
Receivable
RD$
2010
Other
Assets (b)
RD$
Contingent
Operations (c)
RD$
Total
RD$
Balances at
January 1,
2010
2,872,586,310
31,277,021
238,687,422
1,402,067,035
173,699,373
4,718,317,161
Constitution of
provisions
2,550,311,301
43,833,877
155,415,722
43,025,494
139,883,705
2,932,470,099
Interests
Receivable
RD$
Investment
RD$
Other
Assets (b)
RD$
(8,284,473)
2,789,445
Contingent
Operations (c)
RD$
112,211,524
Total
RD$
(262,950,642)
(124,985,666)
(2,486,716,919)
(207,339,002)
70,949,284
663,256
180,416
1,597,889
73,390,845
Balances at
December 31,
2010
3,495,688,790
67,489,681
189,734,003
1,294,353,411
190,195,301
5,237,461,186
Minimum
required
provisions at
December 31,
2010 (a)
3,369,576,854
67,489,681
184,273,326
1,294,353,411
189,679,612
5,105,372,884
Excess over
minimum
provisions
126,111,936
5,460,677
515,689
132,088,302
(a) At December 31, 2011 and 2010, the minimum provision required by the
Superintendence of Banks correspond to the amounts determined based on the
self-assessment performed by the Bank at such dates. This provision also includes
the provision required for the suspension of the recognition of the exchange
differences on the loans in foreign currency classified D and E. In the event that the
provisions determined are less than those constituted, the Superintendence of
Banks does not allow the release of provisions, without its previous authorization.
The excess of provisions above the minimum required at December 31, 2011 and
2010 of RD$135 million and RD$132 million, respectively, does not exceed 2% of
assets and risk weighted contingencies allowed under the banking regulations in
force.
(b) Corresponds to the provision for assets acquired through settlement of loans.
(c) This provision is included in other liabilities, see Note 19.
(Continued)
144
145
financial
2011
Local
Currency
RD$
Weighted
Annual
Rate
Foreign
Currency
RD$
Total
RD$
financial
1.09%
36,964,063,209
Interests
Savings
29,321,892,643
0.72%
37,316,226,404
0.25%
66,638,119,047
payable
Term
27,896,499,963
7.87%
6,641,358,587
1.39%
34,537,858,550
96,276,569
94,278,732,384
2.98%
5,400,964
43,962,985,955
101,677,533
0.42%
413,971,230
5.22%
56,186,297
0.80%
470,157,527
84,738,394,755
2.25%
36,447,463,781
0.28%
121,185,858,536
138,241,718,339
61,160,058
85,213,526,043
Interests
c)
Local
Currency
RD$
Foreign
Currency
RD$
Weighted
Annual
Rate
34,937,363,306
Total
RD$
Demand
34,937,363,306
1.05%
Savings
27,486,601,952
0.75%
32,008,328,867
0.21%
59,494,930,819
Term
22,728,400,727
5.97%
4,495,321,211
0.80%
27,223,721,938
Interests
-
85,213,526,043
2.26%
1,614,216
36,505,264,294
0.28%
62,774,274
121,718,790,337
From 0 to 15 days
Weighted
Annual
Rate
2011
Foreign
Currency
RD$
392,018,746
5.70%
84,099,615
Weighted
Annual
Rate
Total
RD$
1.39%
476,118,361
Private
2.97%
43,873,485,376
0.42%
137,663,922,445
Interests
96,276,569
94,278,732,384
2.98%
5,400,964
43,962,985,955
Foreign
Currency
RD$
67,154,750,157
0.99%
38,418,593,354
From 16 to 30 days
0.28%
121,718,790,337
827,140,346
6.69%
From 31 to 60 days
1,496,760,265
6.54%
From 61 to 90 days
1,381,080,294
Weighted
Annual
Rate
Total
RD$
0.26%
105,573,343,511
899,986,110
0.72%
1,727,126,456
976,942,606
1.84%
2,473,702,871
6.72%
617,228,054
1.50%
1,998,308,348
4,831,577,774
7.73%
1,263,283,043
1.43%
6,094,860,817
13,173,941,225
8.07%
1,534,934,599
1.67%
14,708,875,824
5,317,205,755
8.64%
246,617,225
2.08%
5,563,822,980
Interests payable
96,276,568
Local
Currency
RD$
From 0 to 15 days
2.98%
5,400,964
43,962,985,955
101,677,532
0.42%
138,241,718,339
0.42%
101,677,533
138,241,718,339
Weighted
Annual
Rate
Foreign
Currency
RD$
Weighted
Annual
Rate
Total
RD$
62,944,225,241
0.95%
33,027,053,483
0.22%
95,971,278,724
From 16 to 30 days
375,289,291
4.82%
986,767,944
0.52%
1,362,057,235
From 31 to 60 days
762,308,767
4.90%
423,539,553
0.78%
1,185,848,320
From 61 to 90 days
non93,790,437,069
62,774,274
2010
Public non-
659,585,150
4.62%
245,324,348
0.84%
904,909,498
2,561,797,838
4.93%
786,764,793
1.01%
3,348,562,631
11,468,739,603
5.87%
1,004,582,033
1.10%
12,473,321,636
6,380,420,095
6.98%
29,617,924
0.94%
6,410,038,019
Interests payable
61,160,058
1,614,216
85,213,526,043
146
Weighted
Annual
Rate
By sector
Local
Currency
RD$
payable
36,505,264,294
2011
94,278,732,384
financial
1,614,216
2.26%
Local
Currency
RD$
Weighted
Annual
Rate
61,160,058
By maturity date
2010
financial
Total
RD$
non-
36,964,063,209
b)
Weighted
Annual
Rate
Private
Weighted
Annual
Rate
Demand
payable
Foreign
Currency
RD$
Public non-
By type
payable
2010
Weighted
Annual
Rate
2.26%
36,505,264,294
0.28%
62,774,274
121,718,790,337
147
2010
Term
from
3 to 10
Years
Term of
More
than 10
Years
Total
RD$
RD$
RD$
Demand
35,262,693
511,799
35,774,492
Savings
335,936,387
5,696,902
341,633,289
371,199,080
6,208,701
377,407,781
2011
Inactive
Accounts
RD$
Seized
Funds
RD$
Deceased
Clients
RD$
Collateralized
RD$
Total
RD$
Obligations held
by the public:
Demand
Savings
40,248,411
565,716,875
13,165,613
619,130,899
321,202,090
184,235,750
418,030,608
65,848,058
989,316,506
297,317,375
1,961,379,248
28,266,877
2,286,963,500
361,450,501
1,047,270,000
2,379,409,856
107,280,548
3,895,410,905
Term
Seized
Funds
RD$
2010
Inactive
Accounts
RD$
16
Collateralized
RD$
Deceased
Clients
RD$
Total
RD$
a)
By type
Obligations held
by the public:
2010
RD$
Demand
35,774,492
474,202,440
9,071,056
519,047,988
Demand
1,488,258,241
1,381,172,540
Savings
341,633,289
148,728,889
556,415,548
46,071,356
1,092,849,082
Savings
454,865,186
61,692,993
215,021,631
1,608,712,138
12,444,532
1,836,178,301
Term
2,912,495,407
770,110,281
377,407,781
837,952,960
2,165,127,686
67,586,944
3,448,075,371
Term
At December 31, 2011 and 2010, obligations held by the public include the following
amounts of inactive accounts:
Interests payable
b)
Term
from
3 to 10
Years
Term of
More
than 10
Years
Total
RD$
RD$
RD$
Demand
39,768,359
480,052
40,248,411
Savings
314,967,799
6,234,291
321,202,090
354,736,158
6,714,343
361,450,501
2,463,023
1,590,651
4,858,081,857
2,214,566,465
By maturity date
2011
RD$
2010
RD$
From 0 to 15 days
2,899,883,983
1,458,401,477
From 16 to 30 days
1,375,133,755
12,679,677
2011
148
2011
RD$
From 31 to 60 days
50,188,299
627,253
From 61 to 90 days
110,952,635
1,131,690
208,084,218
135,462,370
185,997,536
543,951,930
25,378,408
60,721,417
2,463,023
1,590,651
4,858,081,857
2,214,566,465
149
17
By currency
2011
Borrowed Funds
Borrowed funds consist of:
2011
Weighted
Demand
Weighted
Local
Average
Foreign
Average
Currency
RD$
Annual
Rate
Currency
RD$
Annual
Rate
1,488,258,241
1.09%
Creditors
Total
RD$
a) Local financial
entities:
1,488,258,241
Savings
187,179,692
0.72%
267,685,494
0.25%
454,865,186
Term
448,325,628
8.65%
2,464,169,779
2.51%
2,912,495,407
b) Foreign
financial
entities:
Interests
payable
911,222
2,124,674,783
2.65%
1,551,801
2,733,407,074
2.29%
Central Bank of
the
Dominican
Republic
Demand
Savings
Term
Average
Foreign
Average
Currency
RD$
Annual
Rate
Currency
RD$
Annual
Rate
1.05%
Total
RD$
4,180,801
0.75%
57,512,192
0.21%
61,692,993
6.78%
117,268,594
1.54%
770,110,280
2,039,773,644
2.88%
Line of credit
(Note 24 (i))
Without
collateral
N/A
8,861,420
Without
collateral
1.32%
2012
790,910,823
Proparco
Line of credit
(corresponds to
US$23,275,862)
Without
collateral
5.21%
20122018
901,341,465
Citibank
Line of credit
(corresponds to
US$77,652,905)
Without
collateral
1.99%
2012
3,007,054,374
c) Interests
payable
(correspond to
US$221,490)
12,035
174,792,821
1.10%
8,577,066
4,716,745,148
1,381,172,541
652,841,686
1,578,616
Balance
RD$
4,699,306,662
2010
Interests
payable
Maturity
Weighted
Local
1,381,172,541
Rate %
Line of credit
(corresponds to
US$20,424,148)
2010
Weighted
Collateral
Wells Fargo
Bank
2,463,023
4,858,081,857
Type
Creditors
1,590,651
2,214,566,465
At December 31, 2011 and 2010, deposits of financial institutions in the country include
RD$238,293,911 and RD$138,703,905, respectively, corresponding to amounts restricted
affected as collateral and seized funds.
a)
Local financial
entities:
b) Foreign
financial
entities:
Type
Collateral
Rate %
Maturity
Balance
RD$
Central Bank
of the
Dominican
Republic
Line of credit
(Note 24 (i))
Without
collateral
N/A
8,861,420
Wells Fargo
Bank
Line of credit
(corresponds to
US$21,407,241)
Without
collateral
1.67%
2011
801,112,465
c) Interests
payable
(corresponds
to US$31,241)
1,169,108
811,142,993
150
151
2010
Local
Currency
RD$
By type
2011
Local
Currency
RD$
Bonds
Mortgage bonds
Financial certificates
Interests payable
Weighted
Average
Rate
Total
RD$
1,288,295
10.63%
1,288,295
16,528,523
10.58%
16,528,523
31,746,661,215
8.89%
31,746,661,215
108,898,989
31,873,377,022
8.89%
Bonds
Mortgage bonds
Financial certificates
Interests payable
Weighted
Average
Rate
2,616,543,252
6.05%
2,616,543,252
Private non-financial
19,026,205,024
4.44%
19,026,205,024
7,859,722,665
5.73%
7,859,722,665
Financial
Interests payable
29,563,560,016
c)
10.83%
1,451,911
14,661,097
10.49%
14,661,097
29,486,357,933
4.92%
29,486,357,933
29,563,560,016
4.92%
61,089,075
4.92%
61,089,075
29,563,560,016
By maturity date
2011
31,873,377,022
1,451,911
61,089,075
61,089,075
108,898,989
Total
RD$
Total
RD$
Public non-financial
Local
Currency
RD$
2010
Local
Currency
RD$
Weighted
Average
Rate
Weighted
Average
Rate
Total
RD$
From 0 to 15 days
4,559,721,614
7.63%
4,559,721,614
From 16 to 30 days
8,632,244,740
9.83%
8,632,244,740
From 31 to 60 days
6,585,744,369
9.13%
6,585,744,369
From 61 to 90 days
4,628,095,603
8.31%
4,628,095,603
6,946,283,425
8.78%
6,946,283,425
412,388,282
7.85%
412,388,282
Interests payable
108,898,989
108,898,989
31,873,377,022
29,563,560,016
8.89%
31,873,377,022
2010
b)
By sector
Local
Currency
RD$
2011
Local
Currency
RD$
Weighted
Average
Rate
Total
RD$
Total
RD$
From 0 to 15 days
7,099,985,431
4.97%
7,099,985,431
From 16 to 30 days
8,136,568,727
4.76%
8,136,568,727
Public non-financial
2,655,896,455
11.98%
2,655,896,455
From 31 to 60 days
5,216,338,187
4.98%
5,216,338,187
Private non-financial
20,503,958,727
7.39%
20,503,958,727
From 61 to 90 days
4,204,846,880
4.86%
4,204,846,880
8,604,622,851
11.51%
8,604,622,851
4,760,519,277
5.13%
4,760,519,277
108,898,989
108,898,989
81,700,187
5.13%
81,700,187
2,512,252
6.45%
2,512,252
Interests payable
61,089,075
61,089,075
Financial
Interests payable
31,873,377,022
8.89%
31,873,377,022
29,563,560,016
152
Weighted
Average
Rate
4.92%
29,563,560,016
153
Collateralized
RD$
Total
RD$
2011
RD$
2010
RD$
35,617,952
37,066,075
28,004,855
17,407,908
3,596,262,801
3,183,133,750
Certificates of deposits:
Bonds
Mortgage bonds
Financial certificates
125,496
37,800
163,296
657,866
657,866
29,640,833
1,061,227,421
1,090,868,254
30,424,195
1,061,265,221
1,091,689,416
(a) Correspond to financial obligations that the Bank has undertaken and which are
repayable on demand, such as: certified checks, cashiers checks, among others.
(b) Correspond to provisions for contingent operations upon request of the
Superintendence of Banks of the Dominican Republic.
(c) This category includes provisions for bonuses, loyalty program of Millas Popular, legal
contingencies (Note 24 h.) and taxes payable, among others.
2010
Deceased
Clients
RD$
Collateralized
RD$
Total
RD$
Certificates of deposits:
Bonds
119,171
86,815
205,986
Mortgage bonds
726,529
726,529
29,823,958
1,170,218,307
1,200,042,265
30,669,658
1,170,305,122
1,200,974,780
Financial certificates
20
Subordinated Debt
Subordinated debt consists of:
2011
Creditors
Various (a)
19
154
Subordinated
debt bonds
Collateral
Without
collateral
Rate
%
Variable (a)
Term
10 years
Debt issuance
costs (b)
Other Liabilities
Type
Balance
RD$
4,079,000,000
(34,255,957)
4,044,744,043
2011
RD$
2010
RD$
1,296,521,933
1,181,589,611
Interests
payable
4,050,732,242
2010
Creditors
33,547,220
17,619,854
110,954,825
110,344,809
Various (a)
886,657,699
112,267,500
Debt issuance
costs (b)
899,016,243
210,474,609
190,195,301
994,483,708
617,626,449
5,988,199
Type
Subordinated
debt bonds
Collateral
Without
collateral
Rate
%
Variable (a)
Term
Balance
RD$
10 years
4,079,000,000
(39,961,569)
4,039,038,431
Interests
payable
4,696,515
4,043,734,946
155
21
Shareholders Equity
Shareholders equity consists of:
Authorized
Quantity
Issued
RD$
Quantity
RD$
Common shares
Balance at December
31, 2011
300,000,000
15,000,000,000
207,657,619
10,382,880,950
Quantity
ii)
Common shares
iii)
The debt of the issuer represented by the subordinated bond will be available
to absorb losses in the event of dissolution or liquidation of the issuer.
Balance at December
31, 2010
iv)
v)
Authorized
Their payment is subject to the compliance with the other obligations of the
financial institutions.
Correspond to costs incurred in the issuance of bonds, which are deferred and
amortized using the straight-line method over the term of the bonds.
200,000,000
Issued
RD$
Quantity
RD$
10,000,000,000
186,347,862
9,317,393,100
On March 19, 2011 the Extraordinary-Ordinary Shareholders Equity approved the increase
of the Authorized Paid-in Capital to the amount of RD$15,000,000,000.
At December 31, 2011 and 2010, the shareholding structure is as follows:
2011
Shareholders
Quantity of
Shares
Amount
RD$
Participation
Corporate entities
Related entity
204,849,705
10,242,485,250
98.65%
Third parties
371,272
18,563,600
0.18%
205,220,977
10,261,048,850
98.83%
2,436,642
121,832,100
1.17%
207,657,619
10,382,880,950
100%
Physical persons
Total
2010
Shareholders
Quantity of
Shares
Amount
RD$
Participation
Corporate entities
Related entity
Third parties
Physical persons
Total
183,521,103
9,176,055,150
98.48%
448,876
22,443,800
0.24%
183,969,979
9,198,498,950
98.72%
2,377,883
118,894,150
1.28%
186,347,862
9,317,393,100
100%
The common shares of the Bank have a nominal value of RD$50 each.
156
157
22 Income Tax
The income tax shown in the income statement for the years ended December 31, 2011
and 2010 consists of:
From the earnings corresponding to the years ended December 31, 2010 and 2009,
dividends in shares and in cash were declared and paid, with the previous authorization of
the Ordinary Shareholders Meetings dated March 19, 2011 and March 20, 2010, respectively,
at a rate of one dividend declared per share of RD$25.95 and RD$18.85 for the respective
periods, as detailed below:
2011
RD$
Current
Deferred of the year
Income tax from previous years
2011
RD$
2010
RD$
Cash dividends
3,908,355,592
2,888,107,008
Stock dividends
291,306,006
36,452,710
4,199,661,598
2,924,559,718
In 2011 and 2010 the Bank received capital contribution in cash from its parent company,
Grupo Popular, S. A. of RD$1,200 million and RD$1,901 million, respectively, with the
purpose of sustaining the growth experienced by its productive assets in such years.
21.1 Other Equity Reserves
Article 47 of the New Commercial Societies and Individual Enterprises of Limited
Responsibilities General Law No. 479-08, modified by Law No. 31-11, establishes that the
anonymous entities and entities of limited responsibility should constitute a reserve of not
less than five per cent (5%) of their realized and liquid earnings resulting from the income
statement for the year until such reserve equals ten per cent (10%) of the paid-in capital.
This reserve is not available for dividends distribution, except in the case of the dissolution
of the Bank.
171,762,970
(1,069,164,150)
28,682,558
(5,173,284)
(3,017,305)
(1,320,161,609)
(1,043,498,897)
(1,486,751,295)
2010
RD$
2011
RD$
2010
RD$
5,254,691,646
4,784,975,758
(37,607,666)
(5,674,469)
234,346,068
336,532,616
(256,753,425)
(534,910,473)
(Continued)
158
159
2011
RD$
2010
RD$
258,026,557
162,683,724
198,011,534
(41,368,602)
Temporary:
Difference in fiscal depreciation expense
(454,522,852)
(418,557,302)
256,457,426
250,773,929
(137,077,786)
(85,550,651)
(18,270,519)
(113,593,381)
(21,886)
41,642,171
10,419,249
6,922,970
(25,530,568)
(25,530,568)
(416,880)
(416,880)
20,279,308
16,495,927
94,652,945
(107,713,624)
(4,059,289)
18,111,049
(13,743,190)
(2,956,950)
(2,639,200)
(4,517,042)
(69,612,386)
(54,339,353)
(325,974,579)
Net taxable income
(a)
(b)
11,390,249
5,126,728,601
The income tax payable at December 31, 2011 and 2010 is detailed as follows:
2011
RD$
Current tax
1,486,751,295
1,069,164,150
(1,330,866,106)
(1,319,897,137)
155,885,189
(250,732,987)
(*)
Pursuant to the Banks policy, it subrogates the withholding tax on cash dividends
established in Article 16 of Law No. 11-92 (Dominican Tax Code), which allows an
entity (in this case the Bank) to honor a third partys income tax liability. Based on this
concept, the Bank absorbed the total withholding tax on dividends of RD$977,088,898
and RD$722,026,241, for fiscal years 2011 and 2010, respectively. These amounts
were credited against its own tax obligations, thus compensated, as established in
Article 308 of the Dominican Tax Code.
(**)
The income tax payable in 2011 is presented in the Other Liabilities item (Note 19)
and the credit balance in 2010 is presented in the Other Assets item (Note 13). In
addition, at December 31, 2011 a credit balance of RD$49 million is presented to be
compensated with future advances.
18,999,949
(466,950,556)
4,276,656,600
These temporary items result from the differences between fiscal and accounting
treatment of financial leases; for fiscal purposes accrued installments are accounted
for as income, whereas for accounting purpose, income is represented by the
accrued interests included in each installment invoiced.
Corresponds to the deduction of the provisions on loans and investments recorded
until December 31, 2000. These provisions started to be deducted for fiscal purposes
over a term of 10 years beginning in 2002, according to the dispositions of the tax
authorities.
Adjustment
of the Period
RD$
Final
Balance
RD$
6,382,642
(6,382,642)
104,220
(104,220)
323,588,353
56,039,236
379,627,589
507,716,974
83,518,792
591,235,766
47,548,825
5,069,827
52,618,652
Other provisions
62,561,365
27,857,442
90,418,807
(172,535,950)
(41,686,904)
(214,222,854)
101,398,467
50,697,727
152,096,194
Exchange difference
(739,237)
876,025,659
160
2010
RD$
(3,246,288)
171,762,970
(3,985,525)
1,047,788,629
161
2011
Initial
Balance
RD$
12,765,284
Adjustment
of the Period
RD$
(6,382,642)
Final
Balance
RD$
6,382,642
208,440
(104,220)
104,220
350,516,759
(26,928,406)
323,588,353
500,877,172
6,839,802
507,716,974
43,424,843
4,123,982
47,548,825
Other provisions
56,081,703
6,479,662
62,561,365
(192,667,745)
20,131,795
(172,535,950)
75,007,384
26,391,083
101,398,467
1,129,261
847,343,101
(1,868,498)
28,682,558
(739,237)
876,025,659
At December 31, 2011 and 2010, the deferred income tax asset is included in Other assets,
under Deferred charges (Note 13).
According to
Investments in shares:
Foreign financial entites
2,076,576,190
2,827,110
Non-financial entities
1,038,288,095
2,000
2,076,576,190
449,929,982
18,374,636,308
9,414,111,995
Contingencies
55,123,908,924
25,705,568,926
3,753,505,953
1,649,121,052
2010
According to
Limit Concept
19,697,743,172
20,111,660,711
195,802,500
199,174,357
10%
13.67%
Solvency
Individual loans:
With actual collaterals
3,358,234,425
2,135,648,948
1,679,117,213
1,449,102,726
Related parties
8,395,586,064
6,910,509,494
1,863,478,620
2,732,071
931,739,310
2,000
1,863,478,620
119,988,459
16,791,172,127
6,436,272,370
Contingencies
50,373,516,381
21,121,907,125
3,585,522,849
336,802,500
Investments in shares:
Foreign financial entities
Supporting entities and related services
According to
Limit Concept
Regulation
According to
Entity
19,743,649,428
20,114,522,473
239,851,745
299,851,805
Solvency
10%
12.53%
3,674,927,262
2,498,631,562
1,837,463,631
1,833,031,013
Related parties
9,187,318,154
7,946,693,617
Regulation
According to
Entity
Non-financial entities
2011
Regulation
Limit Concept
According to
Entity
(a) Circular Letter SB No. 2-2002 establishes that for this limit, borrowed funds for letters of
credit and outstanding acceptances payable are not considered.
Individual loans:
162
163
d) Contingency Fund
The main commitments and contingencies held by the Bank at December 31, 2011 and
2010 are:
a) Contingent operations
In the normal course of the business, the Bank enters into different commitments and
incurs in certain contingent liabilities. The most important balances of these
commitments and contingent liabilities include:
2011
RD$
2010
RD$
Collaterals granted
Endorsements
Commercial
890,063,496
639,720,212
215,749,671
144,343,928
Guarantee bonds
Other collaterals
Letters of credit issued and not negotiated
Lines of credit of automatic use
5,888,268
7,111,642
321,837,378
298,785,962
548,190,873
441,975,713
23,723,839,240
19,589,969,668
25,705,568,926
21,121,907,125
At December 31, 2011 and 2010, the Bank has constituted provisions for probable
losses in these operations amounting to RD$210,474,609 and RD$190,195,301,
respectively (Note 19).
c) Superintendence fee
Through the resolution of the Monetary Board of the Dominican Republic, the financial
institutions should contribute 1/5 of 1% of the total net assets to cover the inspection
services of the Superintendence of Banks of the Dominican Republic. The corresponding
expenses for the years ended December 31, 2011 and 2010 were approximately
RD$333 million and RD$299 million, respectively, and are included in the operating
expenses item in the income statement.
164
Article 64 of the Monetary and Financial Law No. 183-02 dated November 21, 2002 and
the Regulation for the Operation of the Contingency Fund, adopted through the First
Resolution ruled by the Monetary Board dated November 6, 2003, authorizes the
Central Bank of the Dominican Republic (BCRD) to collect quarterly contributions from
the financial institutions for the Contingency Fund. The contribution should be 0.25%
of the total assets on a quarterly basis less the quarterly installment of the supervision
of the Superintendence of Banks of the Dominican Republic. Such contribution should
not exceed 1% of the total public deposits. The corresponding expenses for the years
ended December 31, 2011 and 2010, were approximately RD$150 million and RD$119
million, respectively, and are included in the other operating expenses item in the
income statement.
As part of the implementation of the Special Program for Risk Prevention of the
Financial Institutions as stated by Law No. 92-04, the BCRD formed in 2004 the Fund for
the Strengthening of Banking Industry or FCB, with the purpose of protecting
depositors and avoiding systemic risk. The FCB is composed of mandatory contributions
of the financial institutions and other sources according to this law. Such contributions
are determined over the total public deposits with a minimum annual rate of 0.17%
payable on a quarterly basis. Article 6 of this law establishes, among other aspects, that
the financial entities should not contribute when the accumulated amount of their
contributions since the enactement of this laws equals or exceeds the 10% of the funds
contributed by the State to the FCB, net of any investment recovered, collection from
the sale of assets, or any other revenues that could be received by this Fund; in this case,
the Central Bank will determine the procedure for the reimbursement of the excess
amount contributed. The accumulated contributions performed by the Bank at
December 31, 2011 amount to RD$1,436 million.
The contributions made by the financial entities and other sources to the FCB are
presented as funds in administration in the financial statements published by the
BCRD. In the financial statements of the Bank, these contributions are recorded as
operating expenses and amounted to RD$279 million and RD$244 million for the years
ended December 31, 2011 and 2011, respectively.
f) Membership agreement
The Bank maintains an agreement for access to an electronic network of exchange of
banking and commercial transaction exchange funds, of which services include
affiliation, monitoring of cashiers, debit cards services through sales points (P.O.S) and
processing, that are billed on a monthly basis. The agreement establishes volume
discounts for over 40,000 transactions processed per month. The corresponding
expenses for the years ended December 31, 2011 and 2010 were approximately
RD$156 million and RD$145 million, respectively, and are included in the other
operational expenses item in the income statement.
165
h) Lawsuits
At December 31, 2011 and 2010, there are several lawsuits arising from the normal
course of the Banks business. The Bank has estimated, based on the opinion of its
legal counsels, a loss resulted from the outstanding lawsuits of approximately RD$27
million at December 31, 2011 and 2010. The amount thus determined is accrued in
the other liabilities item in the balance sheet.
i)
The main financial income and expenses recognized during the years ended December 31,
2011 and 2010 consist of:
2011
2010
RD$
RD$
Commercial loans
9,302,717,761
6,864,709,221
Consumer loans
6,963,023,722
6,109,171,478
Financial income:
Loans portfolio
Mortgage loans
Subtotal
2,160,699,894
15,134,580,593
Investments
Available-for-sale investments
Other investments in debt instruments
2,443,126
28,624,884
2,112,713,161
1,793,088,630
2,115,156,287
1,821,713,514
Income on investments
Available-for-sale investments
Other investments in debt instruments
Subtotal
Total
968,311
2,978,715
1,017,716,367
1,126,331,945
1,018,684,678
1,129,310,660
22,024,631,609
18,085,604,767
Financial expenses:
Deposits
Demand deposits
(2,623,281,058)
(1,914,202,736)
(2,189,663,010)
(1,223,086,579)
(378,798,146)
(309,466,476)
(5,191,742,214)
(3,446,755,791)
Subordinated debt
Subtotal
Loss on investments:
Available-for-sale investments
Other investments in debt instruments
Subtotal
Borrowed funds
166
2,625,049,161
18,890,790,644
j)
(143,438)
(25,394,817)
(115,361,615)
(81,175,327)
(115,505,053)
(106,570,144)
(56,768,796)
(1,690,108)
(5,364,016,063)
(3,555,016,043)
167
2011
RD$
The main other operational income (expenses) recognized during the years ended
December 31, 2011 and 2010 consist of:
2011
RD$
2010
RD$
Total
2010
RD$
(29,720,376)
(27,251,594)
(104,473,632)
(79,274,624)
(611,918,918)
(487,255,985)
(116,571,242)
(100,421,126)
(728,490,160)
(587,677,111)
Commissions on services:
Commissions on drafts and transfers
Commissions of foreign commerce
Commissions on certification of checks and sale
of administrative checks
Commissions on collections
Commissions on credit cards
Commissions on letters of credit
Commissions on collaterals granted
Commissions on overdrafts and funds in transit
Commissions on the use of automatic teller
machines and points of sale
225,473,661
193,155,970
19,105,989
106,933,102
111,993,790
6,939,180
8,898,609
1,728,938,610
1,382,569,108
9,081,488
10,716,607
49,410,614
35,097,489
918,493,537
870,707,222
570,927,171
475,481,471
767,425,391
582,466,226
123,340,275
211,616,631
392,150,903
353,686,372
4,899,113,932
4,255,495,484
659,259,946
653,985,772
Accounts receivable
Difference in liquidation of operations of cards
Other operational diverse income
Total
601,546,796
43,703,360
23,927,106
21,509,781
114,190,144
27,292,814
41,132,288
200,947,255
293,529,931
61,802,367
17,848,025
228,073,748
201,428,330
1,324,370,552
1,293,602,620
(60,393,476)
(60,662,618)
21,760,532
(3,400,268)
(1,423,723)
1,159,445
2,006,243
130,276
4,678,387
(36,477,658)
(35,495,549)
4,507,480
3,490,658
(180,947,108)
(233,898,789)
(71,004,856)
(71,635,217)
(20,087,500)
(197,907,166)
(162,286,105)
31,817,760
31,935,820
5,590,191,638
4,941,417,076
168
741,041,227
26,020,559
2010
RD$
(47,530,304)
(52,303,797)
(1,780,800)
(1,751,867)
(186,704,370)
(170,804,218)
Credit cards
(241,709,436)
(155,869,885)
2011
RD$
Other income:
Sundry income
Available funds
27
(108,827,512)
(118,894,455)
(658,958,044)
(704,383,956)
(a) Other income includes RD$47.8 million of surplus in operations (2010: RD$53.7 million) and RD$27 million of services provided to related entities. Other expenses
include RD$44.1 million of shortfall in operations (2010: RD$57.3 million).
169
2010
RD$
(4,713,644,431)
(3,891,193,964)
Social insurance
(306,932,818)
(262,902,892)
(152,773,380)
(130,957,251)
(1,191,456,744)
(1,061,502,777)
(6,364,807,373)
(5,346,556,884)
2011
RD$
2010
RD$
(288,897,161)
(256,205,041)
(245,278,140)
(205,953,193)
(997,022,044)
(439,179,257)
(477,013,294)
(440,758,361)
(5,481,351,447)
(4,475,044,497)
(a) Include RD$632 million in 2011 corresponding to the 1% tax on net financial assets
established by Law No. 139-11 for a transitory period of 2 years (Note 22).
30 Evaluation of Risks
30.1 Interest rates risk
(a) Includes staff incentives, labor indemnities, training and other considerations.
From such amounts accumulated at December 31, 2011 and 2010, RD$1,257,812,450 and
RD$820,929,441, respectively, correspond to compensation of senior management, which
are defined as those who have the position of vicepresident and forward.
The summary of the assets and liabilities subject to the risk of interest rates at December 31,
2011 and 2010, are presented below:
2011
At December 31, 2011 and 2010, the Bank had an average payroll of 5,852 and 5,283
employees, respectively.
29
In Foreign
Currency
RD$
120,022,939,046
28,280,031,898
(64,162,909,087)
(13,861,685,431)
Net position
55,860,029,959
14,418,346,467
693,190,557
13,329,401
2011
RD$
2010
RD$
(320,715,170)
(277,218,256)
Communications
(279,860,846)
(278,012,831)
(284,901,665)
(228,862,834)
(331,838,139)
(280,477,526)
108,946,262,041
23,480,525,392
(56,931,613,201)
(5,452,306,645)
52,014,648,840
18,028,218,747
434,349,025
20,534,608
2010
In Local
Currency
RD$
Insurances
(186,659,193)
(194,001,157)
(208,410,831)
(254,589,393)
Net position
Legal expenses
(118,371,159)
(100,682,995)
(562,872,673)
(516,935,435)
Loyalty program
(416,945,725)
(340,410,164)
(332,972,605)
(299,130,462)
(429,592,802)
(362,627,592)
170
In Local
Currency
RD$
In Foreign
Currency
RD$
Interest rates may be reviewed periodically pursuant to the contracts established between
the parties, except in some disbursed loans with specialized resources, whose rates are set
by the authorities and specific agreements.
171
Up To
30 Days
RD$
From 31 To
90 Days
RD$
From 91 Days
To 1 Year
RD$
From 1 to 5
Years
RD$
More Than
5 Years
RD$
Total
RD$
Assets:
Available
funds
43,730,220,364
43,730,220,364
Investments in
securities
4,372,609,525
2,037,275,748
1,121,898,142
8,634,002,867
5,145,253,323
21,311,039,605
Loans
portfolio
6,529,299,625
12,553,205,688
35,371,690,579
41,940,878,015
32,278,067,947
128,673,141,854
Outstanding
acceptances
receivable
Investments in
shares
Maturity
980,306
18,961,464
31,840,253
From 31 To
90 Days
RD$
From 91 Days
To 1 Year
RD$
From 1 to 5
Years
RD$
More Than
5 Years
RD$
Outstanding
acceptances
payable
5,068,380
980,306
18,961,464
31,840,253
Subordinated
debt (b)
5,988,199
Other
liabilities (b)
2,449,220,232
677,111,518
259,456,442
129,432,788,778
18,353,697,071
(72,670,542,783)
(3,693,708,735)
Total Liabilities
Net Position
Total
RD$
56,850,403
4,079,000,000
4,084,988,199
3,385,788,192
28,954,350,854
6,155,169,920
4,321,542,537
187,217,549,160
7,666,461,185
44,451,551,215
33,591,513,263
9,345,274,145
From 1 to 5
Years
RD$
More Than
5 Years
RD$
Total
RD$
2010
Maturity
5,068,380
Up To
30 Days
RD$
56,850,403
Up To
30 Days
RD$
From 31 To
90 Days
RD$
From 91 Days
To 1 Year
RD$
Assets:
-
452,759,092
452,759,092
Available funds
36,617,716,167
36,617,716,167
Interests
receivable
1,807,631,266
1,807,631,266
Investments in
securities
7,125,445,989
2,768,869,683
735,741,737
9,252,200,724
2,547,691,020
22,429,949,153
Accounts
receivable
265,764,185
68,526,594
108,261,854
36,975,438
479,528,071
Loans portfolio
5,235,344,234
11,804,955,024
32,486,333,464
36,735,970,579
25,691,991,558
111,954,594,859
Other assets
(a)
51,652,650
51,652,650
13,604,782
24,999,592
38,604,374
56,762,245,995
14,659,988,336
36,620,812,039
50,606,721,135
37,913,055,800
196,562,823,305
122,722,530
122,722,530
Interests
receivable
1,477,834,711
1,477,834,711
Accounts
receivable
349,528,437
210,219,409
2,419,643
115,943,992
31,542,168
709,653,649
Total Assets
Liabilities:
Obligations
held by the
public
Deposits in
local and
foreign
financial
entities
Certificates of
deposits
Borrowed
funds
172
2011
107,402,147,499
4,472,011,219
20,803,736,641
5,563,822,980
138,241,718,339
Outstanding
acceptances
receivable
Investments in
shares
Other assets
(a)
Total Assets
4,277,480,761
161,140,934
394,081,754
25,378,408
4,858,081,857
13,300,865,343
11,213,839,972
7,358,671,707
31,873,377,022
1,992,018,364
1,828,613,122
119,442,846
534,128,279
242,542,537
4,716,745,148
34,126,697
34,126,697
50,853,601,017
14,809,043,708
33,224,494,844
46,104,115,295
28,393,947,276
173,385,202,140
(Continued)
173
2010
Maturity
Up To
30 Days
RD$
From 31 To
90 Days
RD$
From 91 Days
To 1 Year
RD$
From 1 to 5
Years
RD$
More Than
5 Years
RD$
Total
RD$
2011
In Local
Currency
Liabilities:
Obligations
held by the
public
Deposits in
local and
foreign
financial
entities
Certificates of
deposits
Borrowed
funds
Outstanding
acceptances
payable
Subordinated
debt (b)
Liquidity ratio
97,396,110,233
1,472,671,805
15,297,643,233
1,169,108
2,090,757,818
1,758,943
9,421,185,067
-
15,821,884,267
679,414,300
4,842,219,464
801,112,465
3,974,569,666
2,435,468,353
60,721,417
2,512,252
-
8,861,420
121,718,790,337
2,214,566,465
29,563,560,016
811,142,993
To 15 days adjusted
233%
588%
To 30 days adjusted
261%
495%
To 60 days adjusted
261%
424%
To 90 days adjusted
281%
396%
Position
To 15 days adjusted
8,137,473,594
13,604,782
24,999,592
To 30 days adjusted
13,344,278,859
9,906,033,735
17,719,005,371
11,208,272,699
To 90 days adjusted
22,059,868,502
11,530,637,977
(16.89)
38,604,374
4,079,000,000
4,083,696,515
Other liabilities
(b)
2,234,871,002
516,722,054
241,345,393
2,992,938,449
Total Liabilities
116,420,766,678
12,055,423,474
22,385,975,889
4,037,803,335
6,523,329,773
161,423,299,149
(65,567,165,661)
2,753,620,234
10,838,518,955
42,066,311,960
21,870,617,503
11,961,902,991
9,810,887,618
To 60 days adjusted
Global (months)
4,696,515
Net Position
In Foreign
Currency
(19.82)
2010
In Local
Currency
In Foreign
Currency
Liquidity ratio
To 15 days adjusted
142%
536%
To 30 days adjusted
159%
555%
To 60 days adjusted
223%
588%
To 90 days adjusted
277%
605%
(a) Correspond to operations which represent a collection right for the Bank.
(b) Correspond to operations which represent an obligation for the Bank.
Position
The maturities of the above mentioned assets correspond to the payment obligations of the
customers.
To 15 days adjusted
2,469,840,213
6,622,915,435
To 30 days adjusted
4,682,709,608
8,131,462,684
To 60 days adjusted
10,595,474,790
10,502,293,155
To 90 days adjusted
14,751,419,933
10,781,378,838
(20.76)
(27.58)
Global (months)
174
175
2010
The detail of the fair value of financial instruments at December 31, 2011 and 2010 is as
follows:
Loans portfolio (b)
2011
Book
Value
RD$
Market
Value
RD$
43,730,220,364
43,730,220,364
21,836,400,426
N/A
126,537,847,258
N/A
435,333,141
N/A
36,964,063,209
36,964,063,209
Savings
66,638,119,047
66,638,119,047
Term (b)
34,537,858,550
N/A
101,677,533
101,677,533
1,488,258,241
1,488,258,241
Savings
454,865,186
454,865,186
Term (b)
2,912,495,407
N/A
2,463,023
2,463,023
Interests payable
Borrowed funds (b)
Certificates of deposits (b)
Subordinated debt (b)
N/A
4,716,745,148
N/A
31,873,377,022
N/A
4,050,732,242
N/A
183,740,654,608
2010
Book
Value
RD$
Demand
34,937,363,306
34,937,363,306
Savings
59,494,930,819
59,494,930,819
Term (b)
27,223,721,938
N/A
62,774,274
62,774,274
1,381,172,540
1,381,172,540
Savings
61,692, 993
61,692,993
Term (b)
Interests payable
Deposits from local and foreign financial
entities:
Demand
Financial liabilities:
Demand
N/A
115,197,714
192,539,801,189
Interests payable
109,217,065,782
Financial liabilities:
Investments:
Other investments in debt instruments (b)
Market
Value
RD$
168,849,013,402
Financial assets:
Available funds
Book
Value
RD$
Market
Value
RD$
770,110,281
N/A
Interests payable
1,590,651
1,590,651
811,142,993
N/A
29,563,560,016
N/A
4,043,734,946
N/A
158,351,794,757
(a) The book value is presented net of provisions as required by current regulations.
(b) There is no active stock market in the Dominican Republic from which the market value
of the investments in securities and shares can be obtained. Likewise, the Bank has not
performed an analysis of the market value of its loans portfolio, obligations held by the
public, deposits from local and foreign financial entities, certificates of deposits, borrowed funds and subordinated debt, which market values can be affected by changes
in the interest rate, due to the fact that it was not practical and/or market information
did not exist.
N/A: Not available.
Financial assets:
Available funds
36,617,716,167
36,617,716,167
353,907,435
357,492,594
22,545,126,304
N/A
Investments:
Available-for-sale (a)
Other investments in debt instruments (b)
176
177
2011
Type of Transaction
The operations and the most important balances with related parties according to the
criterion established in the Regulation for Credit Limits to Related Parties for the years
ended December 31, 2011 and 2010 are:
Past Due
Loans
RD$
Total
in
RD$
2,229,611,573
Actual
Collaterals
RD$
2,229,611,573
493,772,642
493,772,642
23,407,239
23,407,239
2,872,820
2,872,820
26,551,456
26,551,456
7,271,504,198
130,239,497
7,818,108,355
676,843,654
Interests on deposits
94,253,171
94,253,171
873,565,601
4,171,958,053
24,677,703
4,196,635,756
619,516,537
6,401,569,626
24,677,703
6,426,247,329
1,493,082,138
2010
Current
Loans
RD$
Related to the
ownership
Past Due
Loans
RD$
Total
in
RD$
Actual
Collaterals
RD$
169,634,603
39,575
169,674,178
5,566,091,964
34,316,044
5,600,408,008
1,811,921,221
5,735,726,567
34,355,619
5,770,082,186
1,811,921,221
Related to the
person
The Bank maintains the amount of the loans granted to related parties within the limits
established by the banking regulations.
The operations with identifiable related parties during the years ended December 31, 2011
and 2010, include:
2011
Type of Transaction
Amount
RD$
Income
RD$
24,204,906
24,204,906
6,364,807,373
6,364,807,373
Other expenses
1,076,642,377
1,076,642,377
7,559,907,827
7,559,907,827
2010
Type of Transaction
Capital contributions
1,900,700,130
357,185,690
357,185,690
19,632,875
19,632,875
3,265,819
3,265,819
24,157,173
24,157,173
5,719,667,321
135,167,893
273,535,043
100,235,503
6,397,443,921
639,644,953
Income
Sale of investments
4,199,661,598
Capital contributions
1,200,376,984
329,941,523
Expenses
RD$
2,924,559,718
Services provided
Dividends declared
Income
RD$
Dividends declared
Transactions
Amount
RD$
Transactions
Expenses
RD$
Effect in
Effect in
Purchase of shares
Expenses
RD$
Expenses
Related to the
person
Income
RD$
Sale of investments
Related to the
ownership
Amount
RD$
Income
2011
Current
Loans
RD$
Effect in
The First Resolution of the Monetary Board dated March 18, 2004 approved the Regulation
for Credit Limits to Related Parties which establishes the criteria to determine related
parties for financial institutions.
(Continued)
178
179
Amount
RD$
Type of Transaction
Income
RD$
Expenses
RD$
Non monetary transactions occurred during the years ended December 31, 2011 and 2010,
are the following:
Expenses
Interests on deposits
86,122,712
86,122,712
22,227,244
22,227,244
5,346,556,884
5,346,556,884
932,748,658
932,748,658
6,387,655,498
6,387,655,498
2011
2010
RD$
RD$
2,600,828,926
2,279,377,917
204,154,642
207,339,002
35,787,124
1,291,186,748
445,644,955
166,046,790
112,211,524
103,688
31,582,255
8,284,473
55,999,999
260,161,197
35,367,958
124,985,666
2,789,445
115,711,332
62,608,000
(3,396,621)
291,306,006
36,452,710
60,090,000
Other expenses
December 31,
2010
RD$
33
2,472,311
782,184,140
149,690,000
13,794,136
82,995,481
3,029,545
14,155,140
445,969,982
116,028,459
2,419,228,252
2,642,372,989
1,334,966,684
21,849,897
Certificates of deposits
552,531,245
227,273,759
Other liabilities
415,716,256
330,127,870
Pension Funds
The Dominican Social Security System, created by Law No. 87-01 published on May 9, 2001,
includes a Contributory Regime that comprises employees and employers from public and
private sectors financed by the latter, including the Dominican State as an employer. The
Dominican Social Security System includes a mandatory affiliation of employees and
employers to the Provisional Regime through the Pension Funds Administrators (AFP) and
Health Risk Administrators (ARS). The Banks employees and executives are mainly affiliated
to a related entity.
During the years ended December 31, 2011 and 2010, the Bank paid contributions of
RD$152,773,380 and RD$130,957,251, respectively, which are included as operative
expenses in the income statement.
180
54,194,072
66,709,372
144,500,000
63,370,319
(Continued)
181
35
106,548,785
138,368,060
44,541,281
60,856,230
Subsequent Events
On December 27, 2011 the Superintendence of Banks issued the Circular Letter SB No.
005/11 by which it approves the Instructive for the Calculation of Interests and Commissions
Applicable to Credit Cards. This instructive will be in force in a term of 120 calendar days
since such date.
182
DIREC TORIES
Technical reserves
Responsibilties
Reinsurances
Financial information by segments
Other disclosures
Important discontinued operations, indicating the date in which the event occured
Principal Officials
Office Directory
Gains or losses on the sale of fixed assets or other assets in subsidiaries, branches or
foreign offices
Loss originated in disasters
Effect of changes in the market value over the book value of investments in
securities
Effects of contracts, such as financial derivative instruments
183
Manuel A. Grulln
Prxedes Castillo P.
Osin T. Abreu
Salustiano Acebal M.
Adriano Bordas
President
Secretary
member
member
member
member
President - Escobal, S. A. S.
President - Piloa, S. A. S.
Marino D. Espinal
Vicepresident
Vicepresident of the Board of Administration of
Grupo Popular, S.A.
President of the Appointment and
Remuneration Committees of the Boards of
Administration Banco - Popular Dominicano,
S. A. - Banco Mltiple and Grupo Popular, S. A.
Vicepresident of the Executive and Strategic
Committees of the Boards of Administration Banco Popular Dominicano, S.A.; Banco
Mltiple and Grupo Popular, S. A.
Vicepresident of the Credit Committee of the
Board of Administration - Banco Popular
Dominicano, S. A. Banco Mltiple
President - Daniel Espinal S.A.S.
President - Industria Farmacutica del Caribe,
S. A. S. (INFACA)
President - Juste Internacional, S.A.S.
President - Acedo S. A. S.
J. Armando Bermdez
Alejandro E. Grulln E.
member
member
Manuel E. Tavares
Member of the Board of Administration Grupo
Popular Dominicano, S. A.
member
Pedro A. Rodrguez
member
Member of the Board of Administration
Grupo Popular, S. A.
184
185
C O M M I T T E E S O F T H E B O A R D O F A D M I N I S T R AT I O N
Marino D. Espinal
Vicepresident
Prxedes Castillo P.
member
Alejandro E. Grulln E.
member
Manuel E. Tavares S.
member
Audit Committee
Adriano Bordas
Appointment and
Remuneration Committee
President
Marino D. Espinal
Osin T. Abreu
President
Vicepresident
Manuel E. Tavares S.
Prxedes Castillo P.
Vicepresident
member
Adriano Bordas
Jos A. Brache
member
member
Salustiano Acebal M.
Salustiano Acebal
member
member
Jos A. Brache
member
Alex Pimentel M.
Senior Executive Vicepresident
Risk Management, Security and Human
Resources
Credit Committee
Manuel A. Grulln
Corporate Governance
Committee
President
Prxedes Castillo P.
Marino D. Espinal
President
Vicepresident
Jos A. Brache
Vicepresident
member
Manuel A. Grulln
Salustiano Acebal M.
member
Risk Committee
Jos A. Brache
president
Osin T. Abreu
Vicepresident
Manuel E. Tavares S.
member
Prxedes Castillo P.
member
Osin T. Abreu
Adriano Bordas
member
member
Manuel E. Jimnez F.
Alex Pimentel M.
Christopher Paniagua
Alex Pimentel M.
Senior Executive Vicepresident
Risk Management, Security and Human
Resources
Manuel E. Jimnez F.
Senior Executive Vicepresident
Administration Grupo Popular, S.A.
Ren Grulln F.
Alex Pimentel M.
member
Christopher Paniagua
Ignacio J. Guerra
auditor general
Miguel E. Nez
Vicepresident Area of Analysis and
Formalization of Corporate Credit
186
187
P R I N C I PA L O FF I C I A L S
Ignacio J. Guerra
senior executive Vicepresident
finance, technology and operations
Christopher Paniagua
senior executive Vicepresident business
Alex Pimentel M.
senior executive Vicepresident
risk management, security and human resources
Ren Grulln F.
executive Vicepresident
corporate, commercial and international business
188
189
P R I N C I PA L O FF I C I A L S
PRESIDENCY
Manuel A. Grulln
PresidenT
SENIOR EXECUTIVE
VICEPRESIDENCY
FINANCE, TECHNOLOGY
AND OPERATIONS
Ignacio J. Guerra
GENERAL AUDIT
Miguel A. Rodrguez
Auditor
COMPLIANCE
Blgica Sosa
Vicepresident, Compliance Area
Ramn Jimnez
Vicepresident Area of Accounting
Balancing and Control
EXECUTIVE VICEPRESIDENCY
PERSONAL BUSINESS AND
BRANCH OFFICES
Christopher Paniagua
Fernando Olivero M.
Francisco Ramrez
Vicepresident Marketing Area
Lissette De Jess
Vicepresident Finance Area
Aylin Hung
Vicepresident Area of Supplies
and Acquisitions
EXECUTIVE VICEPRESIDENCY
CORPORATE AND
INTERNATIONAL BUSINESS
Ren Grulln F.
Executive Vicepresident Corporate
and International Business
EXECUTIVE VICEPRESIDENCY
TECHNOLOGY AND
OPERATIONS
Eker Rodrguez
Juan Lehoux
Robinson Bou
Executive Vicepresident
Technology and Operations
Vicepresident
Corporate Business Area
Isael Pea
Ricardo De La Rocha
Freddy Melo
Vicepresident Production and
Technological Architecture Area
Wilson Ruiz
Vicepresident
Corporate Banking Are
Enrique Ramrez
Vicepresident International
and Institutional Area
Vicepresident
Tourism Business Area
Alberto Rodrguez
Vicepresident Cards Channel
and Operations Area
190
SENIOR EXECUTIVE
VICEPRESIDENCY
BUSINESS
SENIOR EXECUTIVE
VICEPRESIDENCY
RISK MANAGEMENT,
SECURITY AND HUMAN
RESOURCES
Alex Pimentel M.
EXECUTIVE VICEPRESIDENCY
HUMAN RESOURCES,
SYSTEMS & PROCESSES AND
QUALITY MANAGEMENT
Antonia Antn de Hernndez
Vicepresident Segmentation
Project & Business Area Metro
West Zone
Executive Vicepresident
Human Resources, Systems and
Processes and Quality
Management
John Strazzo
Mara Povedano
Chantall vila
Toms de Len
Vicepresident
Human Resources Area
Austria Gmez
Arturo Grulln F.
Vicepresident Area of
Information Security
Soraya Snchez
Vicepresident
Service Quality Area
Jaime Aybar
Vicepresident Projects Area
Amanda Almeyda
Miguel E. Nez
Vicepresident
Area of Systems and Processes
Patricia Rodrguez
Vicepresident Area of Analysis and
Formalization of Personal Credit
Aime Abbott
Vicepresident
Risk Monitoring Area
Richard Lueje
Vicepresident,
Operational Risk Area
191
O FF I C E D I R E C T O R Y
SANTO DOMINGO
METROPOLITAN AREA
AFP
Edificio AFP Popular, Abraham Lincoln #702
ALMACENES SEMA LUPERN
Av. Lupern #76, Res. Rosmil
AMBEV SAN ISIDRO
Autopista de San Isidro Km. 4 San Isidro
809-544-8993
809-748-0218
GALERAS DE HERRERA
Av. Isabel Aguiar esq. calle D, Plaza Modesto
Zona Industrial de Herrera
ARROYO HONDO
Av. Luis Amiama Ti esq. calle Jos Polanco Billini 809-544-8910
BELLA VISTA MALL
Av. Sarasota esq. calle Los Arrayanes,
Local 1-A, Bella Vista Mall
BLUE MALL
Av. Winston Churchill Esq. Gustavo Meja Ricard
Plaza Blue Mall 3er Nivel
CALLE BARAHONA
Av. 27 de Febrero esq. calle Barahona, Edificio K
CARREFOUR
Aut. Duarte Km. 10 Plaza Duarte
CASA DEL CORDN / ISABEL LA CATLICA
Calle Isabel La Catlica #252
809-544-8958
809-544-8927
809-544-8914
809-544-8961
809-544-8915
809-544-8935
809-544-8936
CHARLES DE GAULLE
Av. Charles de Gaulle esq. Carretera de Mendoza 809-544-8924
DIAMOND MALL
Av. Los Prceres, Arroyo Hondo
DUARTE
Av. Duarte #447, Villas Agrcolas
EL PORTAL
Av. Independencia #2251, El Portal.
AMBEV DOMINICANA
Av. San Martn #279
FAMA MUEBLES
Carretera San Isidro
FARMACIA CARMINA
Av. Independencia #351 casi esq. calle Pasteur
192
FERRETERA AMERICANA
Av. John F. Kennedy Km. 5
809-544-8911
809-544-8971
809-544-8934
809 544-8939
809-544-8994
809-544-8916
GAZCUE
Av. Bolvar #315 casi esq. Dr. Delgado
HACH KENNEDY
Av. John F. Kennedy #59, Ensanche Naco
HACH MELLA
Carretera Mella Km. 8 1/2
HERMANAS MIRABAL, VILLA MELLA
Av. Hermanas Mirabal #28
Santa Cruz de Villa Mella
HERRERA
Av. 27 de Febrero esq. Av. Isabel Aguiar,
Plaza Popular Herrera
HIPERMERCADO OL DUARTE
Av. Duarte #194
INDEPENDENCIA
Prolongacin Av. Independencia Km. 11,
Proyecto Pradera Verde
JUMBO LUPERN
Av. Lupern esq. calle Gustavo Meja Ricart
JUMBO MELLA
Carretera Mella KM 9 .
LA SIRENA DUARTE
Autopista Duarte KM. 13
LA SIRENA, MELLA
Av. Mella
LAS PALMAS DE HERRERA
Av. Isabel Aguiar esq. Av. Las Palmas,
Centro Comercial Isabel Aguiar, local B-5
LOPE DE VEGA
Av. Lope de Vega #44, Piantini
LOS ALCARRIZOS
Autopista Duarte Km. 14, Los Alcarrizos
LOS MINA
Calle Presidente Estrella Urea #95
809-544-8991
809- 544-8948
809-544-8992
809-544-8943
809-544-8912
MXIMO GMEZ
Av. Mximo Gmez esq. calle Anbal Espinosa,
Villas Agrcolas
809-544-8967
MXIMO GRULLN
Calle Mximo Grulln #122 esq. Av. Duarte
809-544-8965
809-544-8979
809-544-8901
PLAZA ALEXANDRA
Ave. Independencia Km.7
Plaza Comercial Alexandra I, Local #104
809-544-8937
PLAZA ANDALUCA II
Av. Abraham Lincoln esq. Gustavo Meja Ricart,
Plaza Andaluca II, Piantini
809-544-8923
PLAZA BERNAB
Av. Los Prceres esq. Av. Repblica de Colombia,
Los Ros
809-544-8938
PLAZA CENTRAL
Av. 27 de Febrero
809-544-8908
MERCASID
Av. Mximo Gmez #182 MERCASID,
Ensanche La Fe
809-549-5377
809-541-4956
MILONY CENTER
Calle 8 #36, Ensanche Isabelita
809-544-8983
809-544-8949
809-544-8920
809 544-8946
809-544-8913
809-544-8944
809-544-8976
MULTICENTRO LA SIRENA CHURCHILL
Av. Winston Churchill esq. calle
Gustavo Meja Ricart
809-544-8902
809-544-8985
MULTICENTRO LA SIRENA LAS CAOBAS
Prolongacin 27 de Febrero
809-544-8906
809-544-8984
809-544-8953
809-544-8996
809-544-8969
NACO
Av. Tiradentes, Galeras de Naco
NATIVA MENDOZA
Carretera de Mendoza, esq. calle 19, Mendoza
809-544-8919
809-544-8925
NEZ DE CCERES
Av. Nez de Cceres esq. Av. John F. Kennedy
809-544-8951
809-544-8998
PLAZA QUISQUEYA
Av. 27 de Febrero #395, Local 121, Ens. Quisqueya 809-544-8907
809-544-8959
809-544-8989
809-544-8956
809-544-8903
809-544-8900
809-544-8981
PADRE CASTELLANOS
Av. Padre Castellanos esq. calle Mutualismo,
Ensanche Espaillat
809-544-8928
809-544-8962
809-544-8917
809-544-8921
SHELL LUCAMI
Av. 27 de Febrero #465, El Milln
809-544-8963
SHELL LUPERN
Av. Lupern esq. calle Olof Palme, Las Praderas
809-544-8977
809-544-8931
809-544-8929
809-544-8932
809-544-8926
809-544-8986
809-544-8987
809-544-8904
809-544-8964
OZAMA
Av. Sabana Larga esq. calle Jos Cabrera,
Ensanche Ozama
RMULO BETANCOURT
Av. Rmulo Betancourt #405, Bella Vista
809-544-8960
809-544-8972
809-544-8970
193
194
809-544-8930
809-544-8918
809-544-8945
809- 255-2350
809-544-8952
809-544-8950
809-544-8933
NORTH region
27 DE FEBRERO (SANTIAGO)
Av. 27 de Febrero #92, Cerros de Gurabo
AEROPUERTO DEL CIBAO
Av. Vctor Manuel Espaillat, Seccin Uveral
809-544-8922
AMBEV SANTIAGO
Calle # 11 Ensanche Libertad, Santiago
ANTONIO GUZMN
Calle Antonio Guzmn, esq. calle E, Urbanizacin
Caperuza I, San Francisco de Macors
CABARETE
Carretera Principal Cabarete, Plaza Popular
CALLE EL SOL
Calle del Sol #13,
Edif. Comercial del Monumento, Santiago
COLINAS MALL
Av. 27 de Febrero esq. Av. Imbert, Santiago
809-544-8909
CONSTANZA
Calle General Lupern esq.calle
Gastn F. Deligne
809-544-8955
809-544-8973
COTU
Calle Mara Trinidad Snchez #29
esq. calle Esteban Adames
DAJABN
Calle Dulce de Js. Senfleur #7
esq. calle Beller, Dajabn
809-544-8954
809-544-8947
809-588-6262
809-734-4321
HACH
Av. Estrella Sadhal Edificio Hach, Santiago
809-734-4307
JARABACOA I
Calle Independencia #39
JARABACOA II
Calle del Carmen esq. calle Enrique Jimnez
JUAN PABLO DUARTE
Av. Juan Pablo Duarte # 195 Villa Olga, Santiago
LAS COLINAS
Av. 27 de Febrero, Cuesta Colorada, Santiago
LA SIRENA (SANTIAGO)
Calle del Sol esq. calle Espaa, Santiago
LA VEGA
Calle Gral. Juan Rodrguez #50 esq. Av. Coln
809-525-4973
LAS TERRENAS
Calle Duarte #225, Las Terrenas, Saman
809- 571-0903
LICEY
Av. Duarte, Licey al Medio
809-734-4301
809-734-4320
MAO
Av. Independencia esq. calle Mximo Cabral
MOCA
Calle Antonio de la Maza #22 esq. calle Crdova
809-539-3502
809-585-2449
809-579-7555
809-574-2094
PUERTO PLATA
Calle Jos del Carmen Ariza esq. calle Duarte
809-586-5079
RAMN CCERES
Av. Ramn Cceres
esq. calle Len Urea, Moca
809-578-2828
809-734-4300
RESTAURACIN
Av. Restauracin #202, Santiago
SAMAN
Av. Malecn #4, Saman
809-734-4311
809-588-0292
809-734-4326
SOSA
Calle Alejo Martnez #1, El Batey, Sosa
809-571-2107
SUP. CENTRAL II
Av. Estrella Sadhal, Santiago
809-734-4317
809-970-2524
SUP. LA FUENTE
Av. Circunvalacin #410, Santiago
809-734-4312
809-734-4314
809-734-4315
SUP. YOMA
Av. Libertad, #165, San Francisco de Macors
809-725-0411
TENARES
Calle Duarte #16
809-587-8987
UTESA
Av. Estrella Sadhal, UTESA, Santiago
809-734-4305
ZONA FRANCA
Av. Circunvalacin,
Zona Franca Industrial de Santiago
809-734-4306
809-734-4327
809-573-6087
809-734-4303
809-538-3666
809-240-5252
809-734-4324
809-586-4888
809-572-6546
809-578-1404
809-242-8323
809-244-4656
809-574-2724
809-244-0150
809-734-4309
NAGUA
Calle Mara Trinidad Snchez
esq. calle Mariano Prez
809-734-4319
NAVARRETE
Av. Duarte #299, Centro Comercial Ydaly,
Navarrete, Santiago
809-734-4308
PLAZA INTERNACIONAL
Av. Juan Pablo Duarte, Santiago
809-734-4323
PLAYA DORADA
Centro de Convenciones Complejo Playa Dorada 809-320-2528
GREGORIO RIVAS
Av. Gregorio Rivas, Sector Jeremas, La Vega
809-242-3631
EL ENCANTO
Calle del Sol esq. calle Duarte, Santiago
809-544-8940
809-580-3035
809-544-8905
809-686-1826
809-734-4318
BONAO
Calle 16 de Agosto esq. calle Independencia
809-544-8978
809-734-4302
GURABO
Carretera Lupern Km 4
809-584-4962
809-734-4322
809-734-4310
195
HATO MAYOR
Calle Mercedes #22, Hato Mayor
809-544-8997
809-553-1200
809-554-0909
809-556-5298
809-521-3400
BAN
Calle Mximo Gmez esq. calle Duarte, Ban
809-522-3889
BAN II
Calle Presidente Billini #22, Ban
809-522-2225
BARAHONA
Calle Jaime Mota esq. calle Padre Billini,
Barahona
BARCEL BVARO
Av. Barcel Carretera Bern-Barcel Km. 91/2,
Plaza AC Delco Service Center
809-831-0021
BVARO
Carretera Meli-Bvaro, Plaza Bvaro
809-552-0613
BOCA CHICA
Calle Duarte #43 esq. Calle Juan Bautista Vicini,
Boca Chica
CENTRO NACIONAL DEL ESTE
Av. Luis Amiama Ti #91, Local 102,
San Pedro de Macors
DR. GONZLVO
Calle Dr. Gonzalvo #22, La Romana
196
809-524-2612
809-544-8995
809-529-5001
809-556-2511
EL DETALLISTA
Calle Pedro A. Lluberes #223, Centro Ferretero
El Detallista, La Romana
809-556-3414
HAINA
Av. Las Caobas esq. Carretera Snchez, Haina
809-544-8966
HAINA II
Carretera Snchez KM 17 1/2, Haina
809-957-0522
HAINA PIISA
Parque Industrial de Itabo
809-544-8974
809-553-2290
809-544-8999
809-554-2324
809-688-9518
809-688-9510
809-688-0960
JIMAN
Calle Snchez #25, Jiman
809-248-3093
JUAN DOLIO
Av. Boulevar, Plaza Turstica Dr. Correa,
Villas del Mar, Juan Dolio
809-526-2276
JUMBO LA ROMANA
Calle Dr. Gonzalvo esq. Av. Libertad, La Romana
809-550-4133
LA MARINA
Av. Rivera del Ro #10,
La Marina, Casa de Campo, La Romana
809-523-7072
LA ROMANA
Av. Santa Rosa esq. calle Dolores Tejeda
809-556-2131
809-527-5155
809-528-2657
OL BOCA CHICA
Aut. Las Amricas Km 27 La Caleta,
Sup. Ol, Boca Chica
809-544-8999
OTRA BANDA
Carretera Higey-Punta Cana
esq. Carretera Higey-Uvero Alto
809-551-1119
PUERTO CAUCEDO
Puerto Multimodal Caucedo
809-523-5030
PUNTA CANA
Carretera Punta Cana,
Plaza Punta Cana #12
809-959-1019
SAN CRISTBAL
Av. Constitucin esq. calle Palo Hincado,
San Cristbal
809-528-4335
809-558-3232
SUP. NELLY
San Pedro de Macors
809-246-0033
809-466-3001
TEXACO BVARO
Carretera Arena Gorda, Seccin Baigu, Bvaro
809-552-0310
809-557-2370
809-529-5050
UVERO ALTO
Carretera Uvero Alto-Bvaro, Plaza Uvero Alto,
local No. 7
809-552-1300
VERN-BVARO
Cruce de Vern, Edificio Prieto Tours, Piso I
809-455-1032
809-544-8975
809-529-0313
SEIBO
Calle Manuela Diez, Centro Comercial, Edif. 2
809-552-2700
SUP. EL DETALLISTA
Calle Trinitaria, San Juan de la Maguana
SUP. EL HIGEYANO
Calle Juan XXIII, El Naranjo 809-746-0044
809-557-4626
197
Banco Popular
Dominicano, S. A.
Banco Mltiple
Torre Popular
20 John F. Kennedy Avenue,
at the corner of Mximo Gmez Avenue
Ensanche Miraflores, Santo Domingo
Telephones
809 544 5000
809 544 8000
Fax 809 544 5999
Mailing Address: Apartado Postal 1441-1
contactenos@bpd.com.do
www.popularenlinea.com
www.bpd.com.do
Santo Domingo, D. N.
Dominican Republic
Information for shareholders
Annual Ordinary General Assembly Extraordinary Shareholders Assembly
of Banco Popular Dominicano, S. A., Banco Mltiple, held at Torre Popular,
Located at 20 John F. Kennedy Avenue on the corner of Mximo Gmez Avenue, Ensanche Miraflores
in Santo Domingo, Dominican Republic,
on Saturday Thirty First day of 2012, at ten oclock in the morning.
General Coordination
Executive Vice-Presidency Public Relations and Communications
Production and Design
Lourdes Saleme y Asociados
Photography
Luis Nova, Jochy Fersobe
Printed by
Amigo del Hogar