by Balbuena Medina
Santo Domingo, D. N .- The Dominican Popular Bank closed the first quarter of this year with excellent performance, according to indicators released by the publication of its financial statements for the court of last March 31. This behavior reflects the dynamism and the continued growth of the financial organization and the support and confidence of customers and society.
A note by the Executive Vice President of Communications and Public Relations of the bank indicates that the institution's total assets rose RD $ 9.705 billion, up 5% at the end of 2010. The main driver of this increase was the net loan portfolio, which increased RD $ 6.156 billion, equivalent to 6% compared to end December 2010, ending the period with a balance of RD $ 115,373,000.
This growth was directed primarily to commercial loans to productive sectors and small and medium enterprises, representing an increase of RD $ 5.160 billion. For their part, mortgage and consumer loans grew by RD $ 825 million and RD $ 171 million, respectively. The growth in credit flow to the productive sectors, trade and consumption is a reflection of the dynamism of the economy in the first quarter.
The information provided by the financial institution says it is important to note that growth in the loan portfolio was achieved by maintaining low levels of past due receivables, which achieved only a 1.84% of gross loans, below market average which stood at 3.0%. This corresponds to a well-diversified portfolio, effective risk control tools, as well as proactive collection tools.
Additionally, investments in securities, net amounted to the sum of RD $ 19.136 billion in March 2011. In this regard, we emphasize the dynamic work of financial intermediation in the purchase and sale of securities issued by both the Ministry of Finance and Central Bank of the Dominican Republic, for amounts amounting to RD $ 12.721 billion, encouraging financial results for the quarter and contributing to the development of securities market the country.
Popular Total deposits experienced an increase of RD $ 10.642 billion during the same period, reaching RD $ 164,013,000, equivalent to a growth of 7% compared with the end of December 2010.
technical heritage of the institution stood at RD $ 17.081 billion what has allowed the People hold the capital required to sustain the growth of the loan portfolio, while maintaining a solvency ratio of 13.27% which exceeds the minimum 10% set by local banking regulations.
Banco Popular Dominicano exhibits to March 2011 a return on average equity of 26.61%, 22.37% higher than shown by commercial banks. This performance was underpinned by the improvement made in the bank's efficiency indicators.
The above performance has allowed the tax net earnings to March 2011 amount to RD $ 1.032 billion, up from RD $ 64 million RD $ 968 million recorded in March 2010, equivalent to an increase of 7%.
Due to these results and the quality reflected by assets, Fitch Ratings affirmed the ratings of Banco Popular Dominicano risk of long-term AA-(dom), reflecting a very high credit quality and low expectation of risk, short-term and F-1 + (dom), meaning the highest credit quality with an exceptionally strong position.
said that the People's risk rating reflects its strong franchise in the Dominican financial system, conservative risk culture, adequate asset quality and profitability.
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