ANNUAL REPORT

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

Although different, we all share

something in common: a bank
we can always rely on
each and every moment of our lives.

Income and Profits

2011

2010

Total Income*

28,805

24,295

Net Financial Margin

14,360

11,936

3,935

3,741

(In RD$ Million)

Net Profit

*Includes net income from effects of exchange earnings

Dividends Declared During the Year under Review

(In RD$ Million)

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%

Available Funds to Deposits

25.02%

23.88%

193.95%

182.99%

Equity Ratio

Provisions for Loans / Non-Performing Loans

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

Net Loan Portfolio

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

Savings Accounts Deposits NC*

29,509

27,491

Term Deposits and Certificates of Deposits NC*

60,109

52,884

Deposits FC*

46,689

36,678

*National Currency (NC) - Foreign Currency (FC)

Common Shares

207,657,619

186,347,862

Number of Offices and Agencies

197

194

Number of ATM

682

649

5,852

5,283

Average Number of Employees

LETTER FROM THE CHAIRMAN

Ladies and gentlemen Shareholders,

On behalf of the Board of Administration of our financial institution, I am pleased to present
you with the 2011 Annual Performance Report, which contains the most relevant activities
carried out by Banco Popular Dominicano, S. A. - Banco Mltiple in the past year. Popular
was successful in accomplishing significant business and institutional achievements during
the prior fiscal period ending on December 2011, that reflects a sound growth in its financial indicators and the attainment of various national and international acknowledgments
that highlight its financial management approach, its service philosophy and its commitment to society.
Furthermore, the present report also substantiates the growth registered by Populars
products and service portfolio, which are constantly evolving, in response to the emerging
needs of clients and the new trends in local and global financial markets. The accuracy of
the figures that substantiate the accomplishments presented here-in, have been duly
endorsed by our firm of External Auditors, by the official entities that supervise and regulate the financial system, as well as by our internal auditors.
We would like to express our gratitude to the executives and employees of this institution,
as well as to all the providers of goods and services, whose efficient support makes it possible for us to provide our clients with financial products of excellent quality. Together we
contribute towards the dynamization of the banking industry and to the growth of our

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

Ladies and gentlemen shareholders,

Economic environment and new tax burdens

On behalf of the Board of Administration, I am pleased to extend a warm welcome to all of

It is pertinent to emphasize that we were successful in achieving the referred growth, not-

you to this Annual Ordinary-Extraordinary General Shareholders Assembly, which is held

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

maintaining adequate levels of efficiency, solvency and liquidity.

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.

Qualitative achievements and acknowledgements

The results of the prior fiscal year that are presented herein have warranted an upgrading
of the risk ratings issued by the agencies Fitch Ratings and Feller Rate, with respect to year
2011, which awarded our financial institution with an AA- credit rating with positive perspective.
Moreover, during the past year various renowned financial publications, such as Euromoney
and LatinFinance, selected Popular as Best Bank in Dominican Republic, highlighting its
high credit capacity, its conservative risk management policy, profitability levels and adequate asset quality. Likewise, the prestigious British magazine The Banker has once again
chosen Banco Popular Dominicano as one of the financial institutions to be included in its
list of Top 1000 World Banks ranking. In addition to the above, the annual survey conducted

During the past year various renowned

financial publications, such as
Euromoney and LatinFinance, awarded
Popular as Best Bank in Dominican
Republic highlighting its high
credit capacity, its conservative risk
management policy and the adequate
quality and profitability of its assets.
The risk rating agencies Fitch Ratings
and Feller Rate awarded an AA- rating
to the financial institution.

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

the growth of the credit portfolio.

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-

an important investment in its technological platform, with the goal of continuing to

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

which will be presented to the public in 2012.

are now using their miles awards to obtain concert tickets and gift certificates from a wide

Consequently this technological framework responds to the emerging needs of clients,

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

costs of preventive health plans.

above

Pedro A. Rodrguez
Manuel E. Tavares S.

member
member

below

J. Armando Bermdez member

Osin T. Abreu member

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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-

Popular closed its 2011 fiscal year with

a level of Total Assets amounting to
RD$205,574 million, experiencing an
increase of RD$27,051 million, which is
equivalent to 15%.
Furthermore, the increment registered
by its net income was the highest in
the market, surpassing the amount of
RD$ 3,900 million. On the other hand,
the expansion of its loan portfolio
was oriented primarily toward the
productive segments.

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.

Achievements that transcend financial outcome

Ladies and gentlemen shareholders, the outcome of the business endeavors conducted by
our bank not only reveal the success of an effective financial performance, but also reflect
the dreams and goals accomplished by the clients, shareholders and communities that
benefit from our Corporate Social Responsibility Program.
We can therefore report, with great satisfaction, that 2 million 700 thousand clients relied
on our customer service principle, mission, vision and corporate values; 1 million 165 thousand customers continued to entrust us with their savings; RD$ 4,813 million pesos were
paid in interest, thereby increasing the savings accounts of our clients; 2,443 families were
able to acquire a home of their own through mortgage loans; 1,880 clients purchased the
vehicle of their dreams; 107,000 customers were able to meet their individual and/or family needs through personal loans; 33,231 clients enjoyed the benefits of the Programa de
Millas Popular; 30 million transactions were conducted by our cardholders; over 30 million
transactions enabled the withdrawal and availability of funds required by our clients to
meet their needs; over 7 million Internet Banking transactions carried out by our clients
from the convenience of their homes or offices facilitated their interaction with the bank;

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13

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.

Resources oriented toward the productive sector

Upon reviewing the significant qualitative accomplishments described above, we are
pleased to inform our fellow shareholders that in quantitative terms, Popular closed the
2011 fiscal year with a level of Total Assets amounting to RD$205,574 million, experiencing
an increase of RD$27,051 million which is equivalent to a 15% growth in comparison to the
total of RD$178,523 million achieved at the closing of 2010.
The net Loan Portfolio rose to RD$126,538 million, with an approximate percentage
growth of 16%, thus surpassing by RD$17,321 million the level achieved during the same

able decrease of 0.44% and Provisions for Loans / Non Performing Loans (NPL) Ratio that

period in 2010, which closed at RD$109,217 million.

rose from 182.99% to 193.95%.

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

to a relative growth of 14%.

RD$2,456 million, while mortgage loans rose to a total of RD$2,257 million.

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

Andrs Avelino Abreu

member

below

Adriano Bordas

member

Salustiano Acebal

14

member

15

Evolution of Total Assets

the prior fiscal year Banco Popular Dominicano reported Gross Income of RD$ 5,255 million

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

in a Total Net Income amounting to RD$3,935 thus reflecting a return on equity of

22.40%.

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

Evolution of the Net Loan Portfolio

2008

81,626

RD$ Million

Performance Report submitted herein is adopted accordingly.

2009

Thank you very much.

2010

89,356
109,217
126,538

2011

Manuel A. Grulln
chairman

Evolution of Total Deposits

2008

125,433

RD$ Million
2009

2010

133,951
153,371
174,760

2011

Evolution of shareholders' equity

2008

13,628

RD$ Million
2009

2010

2011

16

14,196
16,950
18,180

17

Success Stories:
Our clients

18

19

My grandfather infused me with a sense of dedication

to service and the love for gastronomy. For me, service
quality is what really makes the difference. 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.

20

m r . s c a r B at i s ta M a r t n e z

O w ne r of the Rest a u r a nts T p i co B on a o

Loc ate d i n B on a o Dom i n i c a n Rep u b l i c

21

Customers begin to arrive at our restaurant as early as 6 oclock in

T he T i p i co B on a o Rest a u r a nts a r e a n
e x ce l l ent e x a mp l e of the d e v e l opment
of sm a l l a n d me d i u m ente r p r i ses
( S E M s ) i n Dom i n i c a n Rep u b l i c . T he y
h a v e l eft a t r a i l of e x ce l l ent
co r po r ate t r a j ecto r y th at r esc u es the
g a st r onom i c t r a d i t i on of o u r n at i on
a n d, i n d o i n g so the y h a v e become a
c u lt u r a l r efe r ence fo r a n y Dom i n i c a n
n at i on a l

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.

By the time I was born The Tipico was

already a national tradition. My father tells
me how our grandfather first conceived
and implemented this idea, and how he
later placed it in my fathers hands who
subsequently handed it down to the
entire family. I have been in charge of the
restaurant since 1996, when I returned from
Italy. My grandfather infused me with a

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

sense of dedication to service and the love for

gastronomy. For me, service quality is what
really makes the difference. People come to
our restaurant expecting a home-like service
environment. I go to the bank seeking the
same.

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23

The corporation is committed to its employees through a set of shared

principles that is the cornerstone that supports our banking business,
while promoting an equitable and fair decision-making approach and the
collaborative leadership style that is practiced by our institution.
We provide our staff with a working environment that fosters personal
and family wellbeing, on the basis of strategies that have been specifically
designed to respond to the interests and priorities of Popular staff-members

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.

endeavor to be efficient in all its areas

of service and for that service to be truly
memorable. That inspiration is what still
moves us on a daily basis to identify what
clients truly want and to transform each
of their encounters with us into a unique
experience. To achieve that, we favor a model
of Human Resources Management that aims
to accomplish the comprehensive wellbeing
of all our human resources, as a prior step
towards ensuring the deliverance of exquisite
service.

24

The organization is committed to its employees

through a set of shared principles that is the corner
stone that supports our banking business, while
fostering a fair and equitable decision-making
approach and the collaborative leadership style
observed by our institution.

25

In my world, medicine, professionalism and the

respect for human life are non-negotiable. Many times
people come to you just looking for someone to talk
to, someone who inspires confidence and respect. A
banking institution should have those same qualities.

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

26

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

when I arrive at the offices of Popular. I am greeted with a level of

courtesy and thoughtfulness that exceed my expectations each and
every time.
In my world, medicine, professionalism and the respect for human
life are non-negotiable. Many times people come to you just looking
for someone to talk to, someone who inspires confidence and respect.
A banking institution should have those same qualities. It should be
a considerate, professional and respectful institution.

I came to know the bank at a very peculiar

moment; a moment I define as an expression
of trust. I had just arrived to the country from
Mexico where I had completed post graduate
studies in the field of Audiology. Shortly upon
arrival, I realized I had to return to Mexico to
procure some documents. I had to secure a
credit card before initiating travel .I recall
knocking on several doors but ultimately only
one of them answered: Popular.
From that moment on I knew this would
be my bank. They believed in me, in my
motivation to excel. They helped me at an
urgent timewhen I had no time to spare

Defining customer service quality is very much describing what I

find at Banco Popular. Its going beyond good customer service.
Like that time when I went to the bank seeking a loan to set up my
medical office. I remember that day as if it were yesterday. My credit
application was approved immediately although the amount was a
considerably high. The bank manager saw me at the office and asked:
Have you come alone? Will you be closing the purchase agreement
immediately? I answered that I was indeed alone and that I would
be subscribing the purchase agreement right away. I can tell you that,
in a very natural demeanor, that gentleman arranged his desk, gave
instructions to his office staff and said to me: You will not be going
alone, I will come with you. The truth is, I could hardly believe it. Now
that and similar kind assistance- is what I call quality service. That is
what I want to find in a bank.
Learn more about Dr. Muoz success story at www.popularenlinea.com

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One of the strategic objectives established by our

institution aims to be recognized for the quality of
the services offered.

We have established a Service Curriculum so as to ensure that the entire

staff becomes knowledgeable on our philosophy of service and, in
addition, we have also created the Lean Academy which provides our
staff with analytical tools that allow the improvement of operational
processes.
This guarantees the creation of skilled internal talent. Approximately one
thousand employees were promoted to higher posts, thus reflecting our

Staff Professional Development

commitment to their professional wellbeing and development.

For Accomplishing Outstanding Service

Quality Service, Strategic Objective

To this regard, we must point out that these comprehensive

Our service pledge is anchored in the acknowledgement and

development programs aim to improve the employability of staff and

sustainment of our internal strengths and summarizes the feelings we

their integration into the corporate culture of Popular, with a view to

are to generate in our clients so that our motto Always at your side

creating a work environment with sound identity and fidelity: in addition

becomes a reality for them, by foreseeing resourceful solutions to their

to raising awareness on the Mission of our financial institution.

requirements.

During 2011 we implemented a High Potential Staff Program with the

Through this means, the Service Quality Area is committed to the overall

objective of identifying the best professional profiles with potential to

success of the institution. It promotes comprehensive and transversal

become future institutional leaders, and further focus their professional

actions within the organization, providing support to the improvement

development accordingly. A total of 200 managers were selected: their

measures and initiatives that are introduced at each area, to facilitate the

competences were evaluated, their experience and ethical behavior were

incorporation of quality service as a strategic objective in their dealing

screened and their compliance to organizational values and principles

with clients, whether they are external or internal customers.

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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Success cannot be achieved in a split second or in just a day.

It is attained through daily effort. Punta Cana is that sort of
continued endeavor. In 1969, the thought of developing 48
kilometers of the Eastern Zones jungle into a touristic paradise
was but a myth. It was indeed quite difficult to conceive and
even more difficult to envisage. I have devoted myself to
tourism with humility and dedication. Respecting it,
protecting it and caring for it.

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

The tourism industry is my second greatest love. I remember that when

F o u r d ec a d es a g o the P u nt a C a n a
p r o j ect w a s on ly a n i l l u s i on a n d fo r
m a n y b l u nt ly i ns a ne . T o d ay the
C onso r t i u m G r u po P u nt a C a n a i s a n
i nte r n at i on a l mo d e l a n d a n i mpo r t a nt
p i l l a r of o u r n at i on s to u r i st i c a n d
econom i c d e v e l opment

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

In 1969, the thought of developing 48

of Dominican Republics development. I would like for people

kilometers of the Eastern Zones jungle into

including those dedicated to the hotel business to perceive and

a touristic paradise was but a myth. It was

understand the touristic industry for what it is: a great international

indeed quite difficult to conceive and even

industry. It allows its members to move freely while providing

more difficult to envisage. I was only nineteen

opportunities for unlimited development.

years of age when I applied for a loan to

When I travel abroad, to any part of the world, I feel extremely

continue my pursuit. In embracing that dream

pleased to come across people who have been part of the staff

I understood that nothing else was required

of Grupo Punta Cana. They surpass all boundaries because they

however there were others who required

comprise a team that evolves and becomes better each day: most

far more than just my vision of a dream. My

of them speak as many as five languages, and have accomplished

personal and family references were more

that through earnest effort and genuine enthusiasm. They truly excel

than sufficient at Popular. .my family history

whenever the need arises for them to give more of themselves.

was enough for them and they trusted me.

Crises are opportunities. One can and must grow with each crisis. The

Success cannot be achieved in a split second

path to success involves both descending and ascending steps, but we

or in just a day or. A job that can serve as an

must keep our eyes wide open, we must keep abreast of market trends,

example and can foster motivation on others

identifying what people want and what you must and should provide.

can only be achieved through daily effort.

An enterprise and its members must be a true part of the community

Punta Cana is part of a continued endeavor

where they grow and develop. It is a challenge. Its all about growing

that has involved many people, during a long

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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By the same token, we created a second account under the Twitter

Social Network as an additional channel of communication dedicated

The Clients Voice

In order to properly implement this scheme and truly understand
what our clients are trying to convey to us, we seek to capture their
perception of our institution through the set-up of all the channels
required to listen to their voices. Their suggestions, comments and
service expectations are a crucial aid in our pursuit to continue to
improve. This feedback is one of the aspects we keep in mind when

exclusively to providing support services to our clients. The creation

of @Popularatulado coincided with the commemoration of our
first year of active and continuous presence in this digital platform
through the channel institutional @Popularenlinea, which responds to
the wide-ranging digital interaction we keep with our public and our
permanent priority to remain at the clients side wherever they may
be.

assessing staff performance; and for introducing improvements from

the clients perspective.
We have implemented various mechanisms and means of
communication with our base consumers through the use of
available technological tools and the conduct of periodic surveys that
measure the quality of the service that is being offered, in addition
to providing detailed information regarding the level of customer

We seek to capture the perception that customers

have of the institution, through the set-up of all the
channels that are required to listen to their voices.

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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37

MRS . ISA B E L TA V ERAS V AR G AS

I have gained the affection of the people in my

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

neighborhood because I am an authentic person. I dont

feel embarrassed to talk, laugh or show my concern on
issues and matters affecting my surroundings.
That makes people feel at ease in my small grocery-store.
The same is true for Popular: they are authentic. When I
arrive at Popular I feel as if Ive arrived at my living room,
at my bedroom: Im in my own home.

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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

progress. I will also take my grandchildren there ..

And even my Mother!
I always knew this was my bank. When I arrive at Popular I feel as if
Ive arrived at my living room, at my bedroom: Im in my own home.
They are good, kind people. They all know me and make me feel
special.
I have gained the affection of the people in my neighborhood
because I am an authentic person. I dont feel embarrassed to talk,

My relationship with Popular began around

the year 1985. I was still living in New York;
I was running a small business there at the
time, and was also saving. The products I
have access to at the bank have allowed
me to accomplish a lot of things. I have now
retired to my hometown, Navarrete, where I
own a home, a grocery-store and my credit
cards. I feel very happy.
My children also know the bank; I have

laugh or show my concern on issues and matters affecting my

surroundings. That makes people feel at ease in my small grocerystore. The same is true for Popular: they are authentic.
What would be my definition of quality service?
I think that quality service is everything that goes on at the bank from
the moment I arrive there until I leave the premises. Those people
know me; they have been to my home at important moments of my
life; like when my husband died. That speaks loud and clear about
quality service.
Learn more about Mrs. Taveras success story at www.popularenlinea.com

taught them how important it is to surround

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We have launched Popular Web Page Service, a

space where we hold discussions on the aspects of
this business that go beyond financial activities;
we promote in-house training and the exchange
of ideas and acknowledgements associated to
quality of service.

Popular Service Web Page also allows us to capture the transforming

ideas of Populars folks, which afterwards become innovative products
and services.
Our Service Quality Manual sets forth the role that is to be played by
each one of Populars members in this competition for excellence,
which happens to be the commitment assumed by the organization for
complying with its institutional service standards. In essence, our Manual
introduces our five service principles: Reliability, Efficiency, Commitment,
Courtesy and Anticipation, all of which determine the standards that
must be met by our staff, our processes, our products and our services.

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

Furthermore, the Service Quality Manual compiles the ten rules of

excellence in a decalogue format, comprising the institutional values as
well as service guidelines and professional ethics.

branch offices, which allows customers to register the level of satisfaction

experienced during their interaction with our face-to-face services staff.
We also conduct surveys amongst our internal and external customers in
order to confirm levels of compliance to guidelines and procedures and
to measure service satisfaction; these are tools that enable us to identify
opportunities for improving our operational processes.
In October 2011, International Service Month, we launched Popular
Service Web Page. It is a Site where we hold discussions on the
aspects of this business which go beyond the scope of financial
activities; we promote in-house training and the exchange of ideas and
acknowledgements associated to the quality of service that we provide
our customers.

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43

Hylsa is a dream that became a reality little by little:

we began with a small business located at Lupern
Avenue, which is now our main office. The acquisition
of those premises, and all our other business sites, were
made possible with the support of Banco Popular. We
have always felt the banks presence. 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.

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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

Hylsa, S.A. has been servicing clients for

almost 30 years. They come to us looking for
a solution to their vehicle problems: a tire,
batteries, lubricants; I believe they leave our
premise with more than that though; I believe
they also gain a friend, an adviser. That is the
type of consideration that I also receive from
my bank.
Popular has been present in each one of my
projects and those of my family. This is a
family business, just like Popular. Hylsa is a
dream that became a reality little by little:
we began with a small business located
at Lupern Avenue, which continues to be

I arrive at the banks offices I arrive at my home. The consideration

and confidence they have for my work are a great support. I am
personally grateful for the service and courtesy I receive at Popular.
The people that work with me know their job well; that confidence is
transmitted to our clients. I see the same at the bank: the training of
its staff is an important matter for them, they keep their employees
abreast of the latest service trends so that they are able to provide
clients with the advice and counseling they require, in the best
possible manner. For a business endeavor to be successful one must
invest in it .and one must invest in its staff resources as well
To accomplish business success one must first rely on family support.
That has been my case: I have always had the support of my family:
my children Christian and Jovanny, who are at my side thriving our
business; I have also relied on the support provided by the Popular
family.
Learn more about Mr. Herreras success story at www.popularenlinea.com

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47

By placing our clients at the center of our business

scope, we have achieved new standards of
customer satisfaction with regards to the services
we provide, thus improving our overall outcome.

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.

Products and Services

Personal, Mortgage and Vehicle Loans

Many Dominican families were able to find at Popular the most diverse financing options
in the market.
During 2011 the Gross Consumer Loan Portfolio, excluding credit cards, reached a growth
of RD$1,394 million, achieving 29.8% participation in comparison with the entire cluster of
commercial banks and savings & loans associations.
Within the Personal Loans modalities, consumers had the opportunity to obtain financing
with a 90-day grace period before commencing payment installments, as well as the Prstamo
de Vehculo Joven, which offers special conditions for that segment of the population.
We began the year by boosting the Extracrdito features, through the introduction of the
school tuition payment option, which was advertised in various educational centers
throughout the country. A wide variety of new promotions were also introduced for clients
who applied for Extracrdito loans during the months of May, July and August or at specific occasions such as Mothers Day, Fathers Day and summer vacations.

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49

In order to ensure our customers transformation

experience we will continue to realign our
strategies -as pertains to staff, products and
channels- to a vision that places the client at the
center of business.

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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-

A series of strategic actions were implemented during 2011, with an aim to

ily- to corporations offering special deals for young adults and families.

continue providing a portfolio of feasible solutions to the financial needs of

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

Commercial Loans, Lines of Credit and the Extracuentas (Extra Accounts). To

on this event was disseminated through social networks, radio, television and the written

this end, we launched a Commercial Loan with Mortgage Guarantee in both

press; as well as at the web site www.autoferiapopular.com.do.

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

as part of their monthly loan installments.

best financing options for our clients who wished to purchase their own homes, apart-

With respect to the Credit Placement Portfolio in RD$ Pesos, it is important to

ments, a plot of land or refurbish an existing property.

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

by RD$5,750 million; thus achieving a market participation of 28.2%. Likewise,

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-

years portfolio by US$161 million.

2011

lating the national real estate market.

Adding to this category of Mortgage Loans we continued with the development of our

Credit and Debit Cards

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

sentatives at construction firms, for their referrals to Banco Popular.

Debit Cards within the Dominican Republic.

All the strategic and business actions developed throughout 2011 have contributed toward

Several initiatives were implemented during 2011 with an aiming to expand

achieving a substantial increment of RD$2,257million in respect to the year 2010, and

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

pay for goods and services with a Popular Card.

year, through the new financing options that have been made available.

52

53

The important aspect of our financial

achievements at the end of each year, lies in
seeing how these become the personal, family
and professional success stories of our clientele.

55

2009

2010

23,236
25,474

Consumer LOANS

27,930

2011

In RD$ millions

On another note, as an additional option within the Programa de Millas Popular,

The success of our business model resides in

the 2.7 million clients who relied on us during
2011. Popular holds a 33% participation in the
Dominican banking market with respect to
volume of assets.

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

ent with a Popular solution.

de Millas Popular as the leading loyalty program within its market.

These initiatives are supported by important investments that were initiated during the

In addition to the above, numerous promotions were carried out at specific

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

purchase. This strategy resulted in a total of 33,231 applications from clients

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

growth with respect to the levels achieved in 2010.

that will become available to all our cardholders.

Both the creation of the Benefits Plan, as well as the expansion of the Programa

56

de Millas Popular triggered a growth on the billings of Banco Popular Cards,

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

Visa and MasterCard.

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

a rise of US$113.7 million with respect to the prior year.

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,

to offering conventional card options (Classic, Gold and Platinum), it now

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

MasterCard Continental, MasterCard Seguros Universal and Avanza. New alter-

interest payment.

57

A total of 1.16 million clients built-up their

savings through the different products offered by
Popular. The interest Payment on these deposits
amounted to RD$ 4,813 million.

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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?),

Telebanco Popular and tPago.

2011

was launched as a 2011 initiative, to reward our clients saving efforts. The campaign was
primarily addressed to all our depositors.

Children's Savings Accounts

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-

country, in support of the encouragement for saving conveyed in our cam-

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

lectures raised their awareness on the importance of cultivating the habit of

prizes: an apartment, a Kia Picanto vehicle and a Dodge Durango SUV.

economic saving, as well as the practice of environmental preservation. These

This promotional campaign was backed by wide media coverage that included live presen-

activities allowed us to reach out to more than 4,250 students, at approximate-

tations in television programs as well as the online support of the social network of our

ly 50 educational centers and summer camps.

family of Ilusionados (Dreamers), which was a valuable advertising source that facilitated

60

active dissemination of the campaign.

ENTIRE AGREEMENT - PRODUCTS AND SERVICES

Likewise, Popular Savings Accounts continued to advocate the message Ahorrar nos hace

During 2011 we introduced the implementation of an Entire Agreement for

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

erations, but for the entire planet as well.

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

products and/or services. This agreement encompasses Checking and Savings

proportion to each increment reflected in the balance of the savings account. This elec-

Accounts; Credit Cards; Extracrdito (Extra Credit) and Electronic Channels.

61

During the last year 2,443 families were able to

acquire a home of their own through mortgage
loans; 1,880 clients purchased the vehicle of
their dreams with financing from Popular; and
another 107,000 customers were able to meet a
wide range of other essential needs by opting for
a personal loan.

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63

A total of 33,231 exchange transactions were

registered through the Programa de Millas Popular.
New cardholders procured products and services
amounting to 29.6 million through the use of their
new plastic currency.

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

Popular Mobile Network

During 2011 a new element was incorporated to the technological platform that supports
the banking services of our institution, namely Popular Mobile Network. The new feature
allows our clients access to internet banking through their mobile telephones. Customers
can now conduct payment transactions and make consultations on required banking services directly online and from any location. Access allows consultation on Checking
Account balance and latest transactions; Savings Accounts; Credit Cards; Loans and
Certificates; Credit Card and Third Party payments; Express Payments and Transfers between
the clients own accounts; as well as the adding or deleting of beneficiaries.
This new service tool is an additional channel by which to process transactions in a secure,
expeditious and trouble-free manner, from a Smartphone unit with a 3G data plan. The
introduction of this new feature strengthens the use of Electronic Channels as opposed to
the utilization of cash and checks. As regards traditional access through the Internet
Banking feature, a total of 7.11 transactions were conducted through our Web platform
during 2011.
Moreover, during the last year new functions were added to the mobile payment system
tPago, such as Payment of Cards and Loans and the convenience of issuing cash advances
on a Popular Credit Card. This tool further expanded its service to clients of both Orange
and Viva telephone companies, so as to provide them with the opportunity to benefit from
the convenience of making payments through their mobile telephones. Likewise, with the
objective of motivating the use of the tPago feature, Popular carried out three promotional
campaigns amongst its clients, whereby upon making payments at one of the sites affiliated to the campaign- clients were awarded with a free of charge similar service for a person of their choice.

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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65

Success Stories:
Our allies

66

67

Populars Corporate Social Responsibility

philosophy rests on five main pillars: Environment,
Education, Health, Social Community Work and
Arts & Culture. Our financial institution believes
that corporations and communities can only grow
within an environment that is both economically
and socially favorable.
SOCIALLY RESPONSIBLE
Banco Popular Dominicano is part of Dominican network for UN Global Pact and a member
of its Steering Committee since 2007. In 2011 the institution received an official acknowl-

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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69

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. That is part of

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

what we teach at the training centers. The residents of

the mountain range have become increasingly aware of
that fact. That environmental awareness should extend
to the rest of the country. It should reach the valley. The
mountain range represents the blood of the Cibao region.

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71

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

Plan Sierra is the single most important

national initiative in the field of environmental
sustainability. It is a clear example of how we
must work throughout every stratum and from
inside out, if we are to reach harmonic progress
within society. In the past, what was observed
by Plan Sierra was basically a slash and burn
culture. Today the training acquired by the residents of the mountain range has sensitized
them with respect to ecosystem dynamics.
Since the initiation of Plan Sierra, Banco
Popular Dominicano assumed the commitment to support the initiative and continues
to do so in a permanent and consistent manner. No other source has been as supportive
as Popular; because its not just about organizing a one day planting activity, it is not
about exposure. Its about establishing plantations; its about reinstating the rights of the
mountain range.

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 institution with the objective of
promoting corporate volunteering. Consequently,
both executives and employees partake in the
various Corporate Social Responsibility Programs
carried out by Popular.

on the recycling of paper and the introduction amongst students to a 3R sustainability

culture: namely, Reduction, Reutilization and Recycling.
Over 200 educational centers implemented several of the activities comprised in the program, amongst them, the paper recycling competition which had a successful impact on
more than 475,000 per day, including students, personnel, friends and families.
The institution carries out this program in collaboration with Desarrollo Agropecuario y
Forestal, Inc. CEDAF (Center for the Development of Agriculture and Forestry), the Moldosa
recycling company, and the City Councils of Santiago de los Caballeros, amongst others.

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

tion as well as for our society and its surroundings.

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-

ment process of the nation.

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

PROMOTING ENVIRONMENTAL SUSTAINABILITY

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,

foster a more respectful and friendly behavior with the environment.

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

most important wildlife sanctuaries in the Province of San Pedro de Macors.

75

To hold in ones own hand the possibility to change

or improve the lives of others is an experience I cannot
describe. I have been a teacher for thirty years and

MRS . E P I F ANIA G ERM N

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

thus far, teaching someone to read still fills my heart

with emotion. Education is vital to our nation. I truly
believe that to work for the communities is to work for
the nation. As long as there are institutions working in
support of education, the future will be feasible.

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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

with emotion. Education is vital to our nation.

These school premises have not always been so pleasant. At the
beginning, we used to teach at a rented location. In the year 1994 we
got this plot of land and since then up until now, this structure has
evolved progressively to what we have today. Thanks to Banco Popular,
which arrived here in 2008, things have changed tremendously: the

Education is vital for our nation, but it is a

job that must begin at the home. A job that
is substantially complemented by teachers,
when we assume the many roles entailed in
being an educatorAt the end of the day,
students perceive us as their friends, their
advisors. The task of an educator never ends.
Some of us are born wanting to become
teachers, but in 1981 I did not even dream
with studying Education. I wanted to work the
land; I wished to be an agronomist. Later on,
as life evolved, I entered Escuela Normal de
Profesores (Normal Teachers School) and took
quite a liking to teaching.
To hold in ones hand the possibility to change
or improve the lives of others is an experience
I cannot describe. I have been a teacher for

Center is clean, tidy and well cared for.

Through the work of a voluntary task force delivered in two phases,
Popular has provided us with a kitchen, administrative offices,
bathrooms, a fringe fence, gardens, a cistern and several other things.
Adding to the above, Banco Popular carried out a clean-up project
that included the internal and external painting of the entire premises,
which was personally carried-out by staff members of the institution.
The roof is no longer leaking and our small school is a place where
young children feel inspired: we have one of the best school attendance
and punctuality records within our region.
The entire community appreciates and supports the change. Parents,
along with the entire team of teachers, are well aware of the back-up
and follow-up provided by the bank. They arrived at Paso Cibao and
continue to come. They have not neglected us.
I truly believe that to work for the communities is to work for the
entire nation. As long as there are institutions working in support of
education, the future will be feasible.
Learn more about Mrs. Germn success story at www.popularenlinea.com

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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

During 2011, nearly 1,900 members of

Popular devoted more than 15,800 hours to
the implementation of 84 corporate social
responsibility endeavors that included: restoration
of rural schools, beach and coastal clean-up and
reforestation activities; as well as participation in
educational lectures and cultural venues.

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.

WORKING IN SUPPORT OF EDUCATION

We deploy all our efforts in support of education at the elementary, intermediate and high
school levels, through the implementation of programs that promote values, morals and
ethics for the benefit of thousands of students and hundreds of teachers.
During the prior year, Popular continued to implement is Rural School Restoration Program
(RSRP), with the participation of employees from our institution who carried out the tasks
required for the renovation of five additional schools, within a group of educational centers
comprised of over twenty schools.
The schools included in the 2011 PRER activities were provided with diverse computer
equipment as well as assortments of school supplies. Moreover, a series of fraternal meetings and educational lectures were held with the aim to introduce young children to a
comprehensive educational system and a values-based life model. These encounters were
organized and carried out under the leadership of Popular office managers, with the participation of approximately 4,300 students who benefited through this institutional program.
The institution comes into close contact with the educational community through the initiatives that are carried out by its program Adopt a Future Teacher! - This contributes to the
training of more than 20 young adults with a vocation for teaching.
The initiative provides underprivileged young men and women of high academic standing

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I am passionate about medicine, about its miracles

and about research as well. The work we perform here
is a job that is renewed each and every day. We know

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

we can contribute to improve the society in which we

live in and that fills us with passion.

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83

towards making it better, towards making it viable and towards

Inf a nt mo r t a l i t y ( u p to the 2 8 t d ay
of l i fe ) at m ate r n i t y hosp 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 h a s
been r e d u ce d b y 5 0 pe r cent, w i th
r espect to n at i on w i d e r ates , th r o u g h
the a i d of i nc u b ato r s a n d othe r
e q u i pment d on ate d b y pop u l a r

preserving it. We are leaving in a time that requires ever-increasing

social responsibility awareness, a clear commitment. In the case of
Banco Popular and the Maternity Nuestra Seora de la Altagracia,
what we see is a marriage without divorce; a close, solid association
that will never end.
Thanks to Populars presence and to its help, this space is gradually
becoming a full- fledged health center; it grows both as an
infrastructure and as a medical facility and all this has all been made

No other moment in life is as critical for a

human being, in terms of life (or lack thereof),
than the moment of birth. I am passionate
about medicine, its miracles and about
research as well. The work we perform here
is a job that is renewed each and every day.
We know we can contribute to improve the
society in which we live in and that fills us
with passion. The motivation must exist
within us to come to this premises every day
and leave a great part of our lives, our energy
and our love within its walls.

possible through Populars comprehensive social awareness.

Popular is the most precise definition of what a socially responsible
corporation should be. It is well aware that its role is to serve, and that
is precisely what it does. It does it in the same fashion that we do it:
with closeness and total dedication.
Commitment, service, leadership, contributionare the terms I
identify Banco Popular with. But furthermore, I identify it with the
70% reduction of infant mortality rates of children up to one year
of age; and its effective efforts toward eliminating the possibility
of blindness in newborn children with the happiness of faces of
hundreds, thousands of mothers
Learn more about Dr. Riveras success story at www.popularenlinea.com

A corporation or an institution is a part

of society and, as such, should contribute

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85

During 2011 the Organization of the United

Nations awarded Banco Popular with an official
acknowledgement 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.

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.

the improvement of the Dominican education system.

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)

mography prevention unit.

and Instituto Especializado de Estudios Superiores Loyola, (Loyola Institute of Specialized

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-

BETTING ON COMMUNITY DEVELOPMENT

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-

schools around the country.

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

to promoting the academic, emotional and spiritual development of our population.

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

INVESTING IN THE NATIONS HEALTH

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

I have been here since the inception of the SPFPE;

I have also been involved in previous socially-oriented
projects implemented in my region. I know what it
feels like to be keen on helping others to grow.

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

I know what it implies: sacrifice, dedication and a true

vocation to service.Our role is to provide guidance to
the community on projects that aim to ensure their
sustainable development.

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89

criteria; fully trusting in our judgment, Popular has assumed the

T he S P F P E i s one of the p r o j ects th at
a i m to foste r the s u st a i n a b l e
d e v e l opment of the comm u n i t i es
l oc ate d i n the p r o v i nce of E spa i l l at ;
the v ent u r e se r v es a s i nsp i r at i on to
m a n y othe r p r o v i nces

commitment to join forces with us to pursue this goal. This entire

facility operates thanks to the collaboration of the bank. The function
of these offices is to provide guidance to the community on projects
aimed to ensure their sustainable development. More than half of the
75 projects included in our agenda have been implemented with the
assistance of Banco Popular.
The bank has a clear-cut vision. It has assumed a leadership role
within the corporate private sector, by committing itself to the

The SPFPE is a Strategic Development Plan

for the Province of Espaillat, and was founded
in the year 2007. As early as to years into the
project, the support of Banco Popular was
already available; it came about through a
collaborative agreement entered into by both
parties, to promote community development
in the province of Espaillat.
The Espaillat Strategic Development Plan is
a model that seeks to inspire other provinces
to unify their objectives and efforts in order
to address their own specific conditions and
needs. Our development is based on that

undertaking of participatory actions and social responsibility

projects.
These holds true not only in the implementation of community
endeavors, but also in the areas of health, education, coastal cleanup, recycling and reforestation activities, which are carried out in
collaboration with Plan Sierra.
I have been here since the inception of SPFPE; I have also been
involved in previous socially-oriented projects implemented in my
region. I know what it feels like to be keen on helping others to grow.
I know what it implies: sacrifice, dedication and a true vocation to
service.
The dreams of the Espaillat province walk side by side with the SPFPE,
and hand in hand with Banco Popular.
Learn more about Mr. Guzmn success story at www.popularenlinea.com

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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-

The organization has approached the year 2012

with the motto We are more than a financial
business. We touch peoples lives, with the firm
conviction that to a great extent we stamp our
mark in the economic and social development
process of the nation.

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

within the communities where they live.

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

REAFFIRMING OUR NATIONAL IDENTITY THROUGH THE ARTS

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

bank has subscribed an interinstitutional collaboration agreement.

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

Francesa (Dominican-French Chamber of Commerce); Fundacin Unidos por San Pedro

natural resources.

93

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 attainment of coherence and high
performance.the same holds true for the bank.

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

I was born a musician I think I had no

choice, being the son of Mr. Papa Molina and
Mrs. Josefina Minio. Throughout my childhood the subject of music was so natural
that I was well into my 13th year of age when
I realized that I would have to devote the rest
of my life to that God-given talent.
Since 2009, when I assumed my current post
at the Symphony Orchestra, Banco Popular
has been one of our best allies. We have
received that support in a very special way.
We have had the joy of delivering concert
performances that bear a very high significance for the Orchestra, both at the collective
level as well as personally.

96

true for the bank.

I believe that Banco Popular has its own sound, and it must be very similar to orchestral practice. The orchestral practice is useful for cultivating
concentration and harmony. It is a shared responsibility, it is mutual
compassion. When someone fails, the error is collective. That is the sort
of team spirit and concurrence that is perceived at Banco Popular.
Each concert represents a challenge. Every stage is important and
every audience is unique. The artist must be self-demanding and give
the best of her or himself in each performance. It is only through such
commitment to quality that I can become a better musician. I am
sure that both the bank as well as its management will want to
become more and better each day.
The challenge of Banco Popular is to celebrate work they perform as
a given blessing. They will continue to have an impact on our lives
and, as a result, in the Dominican society as well.
Learn more about Mr. Jos Antonios success story at www.popularenlinea.com

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

theatrical performance entitled Resurreccin (Resurrection), which was opened to stu-

December 31, 2011

dents and families attending the fair.

(With Independent Auditors Report)

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.

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99

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Letter of the Commissar

Lic. Engracia Franjul de Abate
Santo Domingo, N.D.
Dominican Republic
March 12th, 2012
Annual Ordinary General Meeting
BANCO POPULAR DOMINICANO, S.A.
BANCO MLTIPLE.
Messrs. Shareholders:
In accordance with the mandate conferred to us by the Annual Ordinary General Meeting celebrated Saturday March 19th, 2011 designating us as this Companys Commissar and in accordance with
effective legal and statutory dispositions, we have examined the financial statements of BANCO
POPULAR DOMINICANO, S.A. - BANCO MLTIPLE, external audit report by the Certified Public
Accountants independent firm PricewaterhouseCoopers, as well as other documentations considered pertinent regarding the activities corresponding to the fiscal year between January 1st and
December 31st of 2011.
We have presented a separate report including analysis, comparisons and commentaries on the
companys situation, its assets, liabilities and equity, the state of its profits and losses as well as other
accounts and balances submitted by the administrators. We have also reviewed meeting minutes
from the Board of Administration, as well as from the Audit, Credit and Operational Risk, and
Appointment and Remunerations Committees made during the year 2011, which we consider satisfactory.
This report, which is an integral part of these conclusions, has been at the shareholders disposal
with due anticipation, in accordance with the legal and statutory provisions.
The result of our examination and the range of the audit made by the Certified Public Accountants
who acted independently in this matter, reveals that the presented accounts are in accordance with
the accounting principles established by the Superintendence of Banks and that the Board of
Administration has complied with its mandate in a correct and satisfactory fashion, in accordance
with the faculties conferred to it by the Corporate Bylaws.
In virtue thereof, we formally recommended the shareholders to approve BANCO POPULAR
DOMINICANO, S.A. - BANCO MLTIPLE financial statements corresponding to the fiscal year ending
on December 31st, 2011 as they have been presented in the Annual Ordinary General Meeting, to
approve the Board of Administrations management and, consequently, grant the release of said
Board.

Lic. Engracia Franjul de Abate

Commissar
BANCO POPULAR DOMINICANO, S.A. BANCO MLTIPLE

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101

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Report of Independent Auditors

(A Free Translation from the Original Report Prepared in Spanish)

To the Shareholders and

Board of Directors of Banco Popular Dominicano, S. A. - Banco Mltiple

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.

Managements Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting standards promulgated by the Superintendence of Banks of the
Dominican Republic which are an integral accounting basis at variance with International Financial
Reporting Standards, promulgated by the International Accounting Standards Board, and for such
internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with International Standards on Auditing. Those standards
require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due
to fraud or error. In making those risk assessments, the auditor considers internal control relevant to
the entitys preparation and fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the entitys internal control. An audit also includes evaluating the

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.

February 29, 2012

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

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Balance Sheet

Balance Sheet

(Amounts in RD$)

(Amounts in RD$)

ASSETS

Available funds (Note 4)

Cash on hand
Central Bank
Local banks
Foreign banks
Other available funds
Investments (Notes 6 and 14)
Available-for-sale
Other investments in debt instruments
Interests receivable
Provision for investments
Loans portfolio (Notes 7 and 14)
Outstanding
Restructured
Past due
Under legal proceedings
Interests receivable
Provision for loans

Outstanding acceptances receivable (Note 8)

Accounts receivable (Note 9)
Accounts receivable
Interests receivable
Assets acquired through settlement of loans
(Notes 10 and 14)
Assets acquired through settlement of loans
Provision for assets acquired through settlement of loans
Investments in shares (Notes 11 and 14)
Investments in shares
Provision for investments in shares
Property, furniture and equipment (Note 12)
Property, furniture and equipment
Accumulated depreciation
Other assets (Note 13)
Deferred charges
Intangible assets
Sundry assets
Accumulated amortization
TOTAL ASSETS
Contingent accounts (Note 24)
Memorandum accounts

104

LIABILITIES AND SHAREHOLDERS EQUITY

LIABILITIES

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

Obligations held by the public (Note 15)

Demand
Savings
Term
Interests payable

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

Other liabilities (Note 19)

3,596,262,801

3,183,133,750

Subordinated debt (Note 20)

Subordinated debt
Interests payable

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

Deposits from local and foreign entities (Note 16)

From local financial entities
From foreign financial entities
Interests payable
Borrowed funds (Note 17)
From Central Bank
From foreign financial entities
Interests payable
Outstanding acceptances payable (Note 8)
Certificates of deposits (Note 18)
Certificates of deposits
Interests payable

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

To be read in conjunction with the notes to the financial statements.

Manuel A. Grulln
Lissette De Jess

President
Vicepresident of Finance

Ignacio J. Guerra
Senior Executive Vicepresident
of Finance, Technology and Operations

105

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Income Statement

Cash Flow 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

Gross financial margin

Provision for loans portfolio (Note 14)
Provision for investments (Note 14)
Net financial margin
Income (expenses) from effects of exchange changes
Other operational income (Note 26)
Commissions for services
Commissions for exchange
Sundry income
Other operational expenses (Note 26)
Commissions for services
Sundry expenses

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

Net cash provided by operating activities

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

Net cash used in investing activities

(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

Other income (expenses) (Note 27)

Other income
Other expenses

1,324,370,552
(658,958,044)

1,293,602,620
(704,383,956)

665,412,508

589,218,664

Result before income tax

5,254,691,646

4,784,975,758

Income tax (Note 22)

(1,320,161,609)

(1,043,498,897)

Result for the year

CASH FLOWS FROM OPERATING ACTIVITIES

Interests and commissions collected on loans
Other financial income collected
Other operational income collected
Interests paid on deposits
Interests and commissions paid on borrowed funds
General and administrative expenses paid
Other operational expenses paid
Income tax paid
Sundry collections from operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Decrease (increase) in investments
Interbank funds granted
Interbank funds collected
Loans granted
Loans collected
Acquisition of property, furniture and equipment
Proceeds from the sale of property, furniture and equipment
Proceeds from the sale of assets acquired through settlement
of loans

(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

CASH FLOWS FROM FINANCING ACTIVITIES

Deposits received
Deposits returned
Operations of borrowed funds
Operations of funds paid
Capital contributions
Dividends paid and other payments to shareholders
Net cash provided by financing activities

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

NET INCREASE (DECREASE) IN CASH AND CASH

EQUIVALENTS

7,112,504,197

CASH AND CASH EQUIVALENTS AT BEGINNING

OF YEAR

36,617,716,167

41,128,028,615

43,730,220,364

36,617,716,167

CASH AND CASH EQUIVALENTS AT END

OF YEAR

(4,510,312,448)

3,741,476,861

To be read in conjunction with the notes to the financial statements.

Manuel A. Grulln
Lissette De Jess

President
Vicepresident of Finance

106

Ignacio J. Guerra
Senior Executive Vicepresident
of Finance, Technology and Operations

107

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Cash Flow Statement

Statement of Changes in Shareholders Equity

(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

Adjustments to reconcile the result for the year to the net

cash provided by operating activities:
Provisions:
Loans portfolio
Investments
Assets acquired through settlement of loans
Interests receivable
Other provisions
Depreciation and amortization
Deferred income tax, net
Current income tax
Expenses for uncollectible accounts receivable
Gain from the sale of property, furniture and equipment
Loss (gain) on the sale of assets acquired through settlement of
loans
Foreign exchange effects (net)
Amortization of issuance costs of the subordinated debt
Other (income) expenses
Net changes in assets and liabilities:
Interests receivable
Accounts receivable
Deferred charges
Intangible assets
Sundry assets
Interests payable
Other liabilities
Total adjustments
Net cash provided by operating activities

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

Balance at December 31,

2010
Transfer from accumulated
results
Capital contributions
(Note 21)
Effect of the sale of revalued
assets
Effect of the depreciation
of revalued assets
Effect of the sale
of available-for-sale
investments
Dividends paid (Note 21):
Cash
Shares
Results for the year
Transfer to other equity
reserves
Balance at December 31,
2011

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

Non-monetary transactions disclosure in Note 34.

To be read in conjunction with the notes to the financial statements.

To be read in conjunction with the notes to the financial statements.

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

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements

1 Entity

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:

Banco Popular Dominicano, S. A. - Banco Mltiple is a financial institution incorporated on

August 2, 1963 under the laws of the Dominican Republic, with the objective of providing
multiple banking services, which include the granting of loans, deposits received from the
public, foreign currency operations and all banking services allowed by the Monetary and
Financial Law. The Bank is a subsidiary of Grupo Popular, S. A., the ultimate majority
shareholder, who owns 98.65% of its equity interest. The Banks headquarters are located at
20 John F. Kennedy Avenue, Santo Domingo, Dominican Republic.

2011
Location

The General Extraordinary-Ordinary Shareholders Meeting held on March 19, 2011

approved the modifications of the By-Laws with the purpose of fulfilling the dispositions of
the New Commercial Societies and Individual Enterprises of Limited Responsibilities
General Law No. 479-08, modified by Law No. 31-11. As part of these modifications, the
Bank changed its registered name to Banco Popular Dominicano, S. A. Banco Mltiple
from such date.

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

Senior Executive Vicepresident of Finance,

Technology and Operations

Christopher Paniagua

Senior Executive Vicepresident of Business

Alex Pimentel

Senior Executive Vicepresident of Risk Management,

Security and Human Resources

Rafael A. del Toro G.

Executive Vicepresident of Internal Mangement

and Compliance

Jos Mrmol

Executive Vicepresident of Public Relations and

Communications

Juan Lehoux A.

Executive Vicepresident of Technology and Operations

Fernando Olivero

Executive Vicepresident of Personal Business

and Branch Offices

Ren Grulln F.

Executive Vicepresident of Corporate, Commercial

and International Business

Antonia Antn

Executive Vicepresident of Human Resources

and Quality Management

Miguel A. Rodrguez

Executive Vicepresident General Auditor

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.

Summary of Main Accounting Policies

2.1

Basis of accounting and preparation of the financial statements

The Bank prepares its financial statements in accordance with the accounting standards
established by the Superintendence of Banks of the Dominican Republic in its current
Accounting Manual for Financial Institutions, the regulations, resolutions, instructives,
circular letters and specific dispositions issued by such Superintendence of Banks and the
Monetary Board of the Dominican Republic, within the framework of the Monetary and
Financial Law; International Financial Reporting Standards are applied in certain situations
not foreseen in the mentioned accounting framework. The accounting practices for
financial institutions established by such Superintendence differ in certain aspects from
the International Financial Reporting Standards for banks and financial institutions.
Consequently, the financial statements do not intend to present the financial position,
results of operations and cash flows in accordance with International Financial Reporting
Standards.
The financial statements are prepared on the historical cost basis, except for the availablefor-sale investments that are stated at fair value and certain land and buildings, which are
stated at appraised values at December 2004.

111

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

2.2

Differences with International Financial Reporting Standards

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)

The Superintendence of Banks allowed multiple services banks the revaluation of

buildings at December 31, 2004. International Financial Reporting Standards
establish that the revaluation updates should be performed when significant
changes in the value of assets occur, while for assets with significant and frequent
value changes, such revaluation should be determined annually and for assets with
insignificant changes, it should be calculated approximately between three to five
years.

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)

The Superintendence of Banks of the Dominican Republic authorizes financial

entities to write off loans with or without collateral when they are classified as past
due, except loans to related parties which should be written off when all legal
proceedings for recovery have been exhausted and the related officials and/or
directors have been separated from their functions. International Financial Reporting
Standards require loans to be written off when they are determined unrecoverable.

The accounting practices established by the Superintendence of Banks of the Dominican

Republic differ from International Financial Reporting Standards in some aspects. Certain
differences are summarized below:
i)

ii)

iii)

112

In accordance with the requirements of the Superintendence of Banks, the allowance

for loan losses corresponds to the amount determined based on a risk assessment
performed by the Bank following specific guidelines. The levels of provisions for
commercial loans are measured based on percentages according to the classification
assigned to each credit. The assessment for the classification of the major commercial
debtors include the documentation of the credit files, considering the figures of the
financial statements of the borrower, the payment performance and the levels of
collateral, following the Ruling for Assets Evaluation, the Instructive for the Assets
Evaluation Process on Permanent Regime and related circular letters. In accordance
with International Financial Reporting Standards, for the evaluation of the loan
portfolio with the purpose of determining the existence of impairment, if any, the
loans are segregated and evaluated individually and collectively. The present value
of estimated future cash flows discounted at the original effective interest rate is
applied for individual loans. In the case of loans collectively evaluated, the estimated
contractual cash flows of assets in the group, the analysis of historical loss experience
and managements opinion on whether the current economic situation and the
credit conditions may change the actual level of inherent historical losses are
considered. The provision is recognized if there is objective evidence that an
impairment loss has occurred, which would be the amount of the difference between
the carrying value of loans and the present value of estimated future cash flows of
such loans, discounted at the original effective interest rate.
The investments portfolio is classified according to the risk categories determined by
the Superintendence of Banks of the Dominican Republic that require specific
provisions, following the Ruling for Assets Evaluation, the Instructive for the Assets
Evaluation Process on a Permanent Regime and specific dispositions. International
Financial Reporting Standards require that provisions be determined on the basis of
the evaluation of the outstanding risks based on a model of incurred losses rather
than a model of expected losses.
Local banking accounting practices require that financial institutions recognize
provisions for the assets acquired through settlement of loans, according to the
following criteria: the moveable properties are provided for during a two-year term
starting 120 days from the date of the final settlement, on a straight line basis
starting the sixth month after the property is settled; the real estate is provided for
during a three-year term starting 120 days from the date of the final settlement, on
a straight line basis starting the first year after the property has been recorded in the
books. International Financial Reporting Standards require that these assets are
provided for only when impairment exists.

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)

In accordance with banking accounting practices, revenues for commissions of

credit cards renewal, transactions of letters of credit and acceptances outstanding
are recognized immediately. In accordance with International Financial Reporting
these revenues are deferred and recognized over the term of credit cards, letters of
credit and acceptances outstanding.

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Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

xi)

The Superintendence of Banks of the Dominican Republic requires that computer

software and leasehold improvements that generate future economic benefits are
previously authorized by such Superintendence to be recorded as intangible assets,
and they should be classified as other sundry assets until such approval. International
Financial Reporting Standards require that these items be recorded directly as
intangible assets.

others. International Financial Reporting Standards require additional disclosures

that allow the users of the financial statements to evaluate: a) the importance of the
financial instruments in relation to the financial position and results of the entity and
b) the nature and the scope of the risks resulting from the financial instruments to
which the entity is exposed of during the year and at the reporting date and how the
entity manages these risks.

xii)

The Superintendence of Banks of the Dominican Republic requires that short-term

highly liquid investments, that are easily convertible to cash, be classified as
investments. International Financial Reporting Standards require that this type of
investments be classified as cash equivalents.

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)

The Superintendence of Banks of the Dominican Republic requires banks to record a

provision for contingent operations, which include collaterals granted, letters of
credit issued but not negotiated and lines of credit of automatic use, based on a
classification by risk categories following the dispositions of the Regulation for
Assets Evaluation. International Financial Reporting Standards require recording a
provision when there is a present obligation as a result of a past event that means,
when it is probable that the entity has to make outflows embodying economic
benefits to settle such obligation and a reliable estimate of the amount of the
obligation can be made.

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

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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:

Short-term financial instruments

The fair value of short-term financial instruments, assets as well as liabilities, are estimated
to be equal to their book values as they are reflected in the Bank's balance sheet. For these
financial instruments, the carrying value is similar to the market value due to the relatively
short period of time between the origin of the instruments and their realization. This
category includes: available funds, banking acceptances, obligations of customers in
acceptances, interests receivable and interests payable.

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Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

Investments and financial instruments
The fair value of investments in local securities and shares are estimated based on the value
adjusted by impairment, which is determined following the guidelines of the
Superintendence of Banks, because there is no active securities market in the country that
allows the determination of fair values. Investments in securities held in instruments traded
in the United States of America are recorded at their market values, if they are classified as
available-for-sale or trading.

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.

Interests and costs of financial assets and liabilities

Interests on financial assets are recognized under the accrual method, calculated under the
simple interest method on outstanding principal amounts, and the costs of financial
liabilities are recognized as an expense under the same method.
2.5 Investments
2.5.1 Investments in securities
The Instructive for the Classification, Evaluation and Measurement of Investments in Debt
Instruments establishes the classification of the investments in four categories: trading,
held to maturity, available-for-sale and other investments in debt instruments, which are
listed below:

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.

2.5.2 Investments in shares

Investments in shares are carried at cost less the corresponding provision.
The characteristics, restrictions, nominal value, market value and number of outstanding
shares of investments in shares are presented in Note 11.
2.5.3 Provision for investments
For investments in securities in local debt instruments and investments in shares, the
amount of expected losses due to impairment or irrecoverability is determined based on
the criteria used for the evaluation of the major commercial debtors, in accordance with
the provisions of the Regulation for Assets Evaluation, focusing on the solvency of the
issuer and the financial characteristics of the instrument. Investments in the Central Bank
of the Dominican Republic and in debt securities of the Ministry of Finance are considered
without risk, thus they are not subject to provision. For investments in securities in
international debt instruments, the amount of expected losses due to impairment or
irrecoverability is determined based on the risk ratings provided by international rating
firms recognized by the Superintendence of Securities of the Dominican Republic, or any
other internationally recognized rating firm, by applying the appropriate percentages of
provision according to the risk categories established by the Regulation for Assets
Evaluation.
The excess in the provision for investments cannot be released without the prior
authorization of the Superintendence of Banks.

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Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

2.6 Loans portfolio and allowance for loan losses
2.6.1 Loans
Loans are recorded by the outstanding principal amount, less the allowance for loan
losses.
For purposes of determining the calculation of interests on card holders, the Bank considers
the corresponding principal balance as the basis for its calculation.
The interest accrual is suspended for non performing loans over 90 days past due and 60
days past due for credit cards.
2.6.2 Provision for loans
The determination of the allowance for loan losses to cover the risk of uncollectibility of the
loans portfolio is based on the criteria established in the Regulation for Assets Evaluation
(REA) issued by the Monetary Board in its First Resolution dated December 29, 2004,
complementary circulars, instructives and observations made by the Superintendence of
Banks of the Dominican Republic (basis of the determination of the reserves). In accordance
with the dispositions established in the Instructive for the Evaluation of Loans, Investments
and Contingent Operations of the Public Sector and its amendments, issued in 2010, the
risk assessment of loans granted to public sector entities will be performed on the basis of
the analysis of the criteria established by the REA and its amendments, by analyzing key
aspects such as the payment capacity and the historical payment performance. The
operations for which actual collateral has been established or formalized, are considered
without risk and are not subject to provision. For loans classified as A, B, C or D that have
explicit collateral or actual admissible collateral of the Estate, the portion of the debt
covered of such collateral should be provided for 1% of the loans, 3% for the loans classified
as E and a minimum of 20% for past due loans.
According to the REA, the estimate of the provision to cover the uncollectibility of the loans
portfolio depends on the type of credit, which is subdivided into major commercial debtors,
minor commercial debtors, consumer and mortgage loans. The assessment of the major
commercial loans is based on a categorized analysis of each debtor according to their
payment capacity, historical payment performance and country risk, to be performed by
the Bank on a quarterly basis for 100% of its portfolio of major commercial loans (subject
to review by the Superintendence of Banks) and using specific percentages according to
the classification of the debtor. The classification of the minor commercial loans, consumer
and mortgage loans are based on days in arrears. The Bank applies Circular Letter SB 001/11
dated July 25, 2011, issued by the Superintendence of Banks, which establishes that until
June 30, 2013 the analysis of cash flows will not represent a main aspect for the classification
of the debtor and the payment performance will be considered as a factor to improve the
risk classification of a debtor.
The provisions for the risks that are determined for the Bank's loan portfolio, according to
the portfolio classification rules, distinguish three types of provisions: specific, generic and
procyclical. Specific provisions are those required for specific loans depending on their
classification in accordance with the current regulation (loans B, C, D and E). The generic

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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:

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Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

Polyvalent
The polyvalent collaterals are those goods that are not specific to an activity, but that
they may be of multiple uses, of easy market realization, valuable, easy to execute,
transferable without excessive costs and stable in value. These collaterals are considered
between 50% and 100% of their values for the purpose of the risk coverage they support,
according to the type of collateral.

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.

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2.7.2 Depreciation

The estimated useful life of the assets is as follows:

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

100% of provision within two years, using a straight-line

method from the sixth month, at the rate of 1/18 monthly.

Real estate

100% of provision within three years, using a straight-line

method from the thirteenth month, at the rate of 1/24
monthly.

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Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

The provision for loans portfolio for debtors, whose collaterals have been settled in favor of
the Bank or received in payment, should be transferred to the provision for assets acquired
through settlement of loans. The provision of those assets that have been sold, should not
be released without prior authorization from the Superintendence of Banks, however, it can
be transferred to other risky assets without permission.
The impairment in the value of assets acquired through settlement of loans, determined by
the difference between the carrying value and the market value, according to independent
appraisals, is recorded as an expense when it is known.
2.9 Accounting of deferred charges
Deferred charges include the prepaid income tax, deferred income tax and other payments
in advance and unaccrued; and are charged to results when accrued.
2.10 Accounting of intangible assets and amortization method used
Intangible assets correspond to disbursements not recognized as expenses in the period in
which they are incurred, but its recognition is distributed over future periods, because the
benefits thereof will extend beyond the period in which they were made. Computer
programs are included within this category and require prior authorization from the
Superintendence of Banks for the recording of items in the accounts that compose the
intangible assets.
Intangible assets are stated at cost, net of accumulated amortization using the straight-line
method over their estimated useful life of 5 years.
2.11 Assets and liabilities in foreign currency
The assets and liabilities in foreign currencies are translated at the exchange rate established
by the Central Bank of the Dominican Republic at the date of the financial statements. The
transactions occurred during the year and the revenues and expenses are translated at the
exchange rate prevailing at the date of the transaction. The difference resulting from the
translation of assets and liabilities in foreign currencies, are recorded under the income
(expense) from exchange rate differences in the income statement.
2.12 Employee benefit costs
2.12.1 Bonus and other benefits
The Bank records the benefits to its executives and employees, such as bonuses, Christmas
bonuses and vacations, among others, as incurred and according to the local labor laws
and their own compensation plans and employment agreements.
2.12.2 Retirement and pension plan
The Bank provides their pensions in accordance with the provisions of the Social Security
Law (Law 87-01). This system, which operates under a scheme of individual capitalization
account, consists of contributions to be made by the employer and the employees on their

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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.

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Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

Costs directly related to the issuance of the subordinated debt are amortized and recorded
as interest expense using the interest method over the term of the debt.
Other operational income and expenses and operating expenses
Other operational income is recorded when accrued and other operational expenses and
operating expenses, when they are incurred. The revenues from commissions and other
services from the management accounts, drafts and transfers, guarantees and endorsements,
purchase and sale of currencies, collections on behalf of third parties and others, are
recognized on the accumulated basis when the services have been rendered to customers.
Other income and expenses
Other income mainly corresponds to the recovery of written-off assets, cost recovery and
services to related parties that are recorded when accrued, and other expenses when they
occur.
2.15 income tax
The income tax recognized in the income statement includes the current income tax and
the deferred income tax.
The current income tax is estimated on the basis established by the Tax Code of the
Dominican Republic and its amendments (see more detail in Note 22).
The deferred income tax is recognized using the method of liabilities. According to this
method, the deferred income tax results from recognizing assets and liabilities at the future
tax effect attributable to the differences arising between the accounting and tax basis. The
deferred tax assets and liabilities are measured using tax rates to be applied to the taxable
income in years in which those temporary differences are expected to be recovered or
compensated. The deferred income tax is recognized to the extent that there is certainty
that the taxable income will be generated and be available to be used against the temporary
difference.

2.16 Derecognition of a financial asset
Financial assets are derecognized when the Bank loses control and all contractual rights of
those assets. This occurs when the rights are realized, expire or are transferred.
2.17 Impairment of assets value
The Bank reviews its long-lived assets in order to determine in advance if events or changes
in the circumstances indicate that the carrying value of these assets will be recovered in the
operations.
The recoverability of an asset that is maintained and used in operations is measured by
comparing the book value of assets with the recoverable amount. This recoverable amount
is determined by whichever is the greater of the discounted net cash flows expected to be
generated by this asset in the future or its fair value. If after making this comparison, it is
determined that the carrying value of the asset has been adversely affected, the amount to

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.

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Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

2.22 Revaluation surplus

(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.

3 Transactions in Foreign Currency and Exchange Risk

Exposure
The detail of balances in foreign currency is as follows:
2011
US$

US$

RD$

Assets and Contingencies:

Available funds
Investments
Loans portfolio
Outstanding acceptances
receivable
Accounts receivable
Investments in shares
Other assets
Contingencies (a)

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

Foreign banks (c)

5,406,020,179

5,032,417,466

Other funds (d)

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)

Includes US$28,555,590 in 2011 and US$31,387,039 in 2010.

(b)

Includes US$299,676,988 in 2011 and US$198,919,341 in 2010.

(c)

Corresponds to deposits in correspondent banks of US$139,602,786 in 2011 and

US$134,475,716 in 2010. From these funds US$34,575,000 in 2011 are collateralizing
the settlement of consumption made by Visa and Mastercard card holders, and
US$7,225,000 in 2010 are collateralizing the settlement of consumption made by
Visa card holders.

(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

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

6 Investments

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.

Investments consist of:

2011

Type of Investment

5 Interbank Funds

2011
Interbank Funds Assets

Quantity

Amount
RD$

Citibank, N. A.

2,170,667,000

25

6.49%

Banco Mltiple Len, S. A.

100,000,000

8.00%

Banco Dominicano del Progreso,

S. A. Banco Mltiple

100,000,000

7.75%

Banco Mltiple Santa Cruz, S. A.

370,000,000

16

8.23%

Asociacin Popular de Ahorros y

Prstamos

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%

Banco Mltiple Len, S. A.

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%

February 2012 June 2021

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

Government of the Dominican

Republic (includes US$780,127)

Certificate of special
investment

Central Bank of the Dominican

Republic

12,646,447,802

14.08%

July 2012 November 2018

Note of fixed rent

Central Bank of the Dominican

Republic

760,958,836

12.60%

September 2012 February 2018

Short-term remunerated
deposits

Central Bank of the Dominican

Republic

4,370,000,000

6.75%

January 2012

Financial certificate

Banco de Reservas de la Repblica

Dominicana Banco de Servicios
Mltiples (includes US$35,000,000)

1,826,685,530

6.23%

February July 2012

Bonds

Banco de Ahorro y Crdito Ademi,

S. A.

1,200,065

11.92%

October 2013

Bonds

Asociacin La Vega Real de Ahorros y

Prstamos

140,000,000

11.67%

October 2015

Bonds

Industrias Nacionales, C. por A.

5,000,000

11.72%

March 2015

Bonds

Cervecera Nacional Dominicana, S. A.

(includes US$316,000)

86,536,879

11.88%

October 2015 July 2016

Bonds

Banco Centroamericano de
Integracin Econmica

200,000,000

12.00%

December 2014

Financial certificate

Banco Mltiple Lpez de Haro,

50,000,000

9.00%

February 2012

Financial certificate

Banco Mltiple Len, S. A.

197,700,000

7.00%

September November 2012

Financial certificate

Banco Nacional de Fomento de la

Vivienda y la Produccin

1,500,000

5.50%

June 2012

S. A.

129

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

2011

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$

Zero coupon certificate of

investment

Central Bank of the Dominican

Republic

Financial certificate

Banco Mltiple Len, S. A.

Financial certificate

Banco de Reservas de la Repblica

Dominicana Banco de Servicios
Mltiples (includes US$26,000,000)

1,444,320,030

Financial certificate

Banco Dominicano del Progreso, S. A.

Banco Mltiple

600,000,000

Financial certificate

Banco de Ahorro y Crdito Ademi, S. A.

Financial certificate

Asociacin La Vega Real de Ahorros y

Prstamos

Financial certificate

Banco Nacional de Fomento de la

Vivienda y la Produccin

Bond

Industrias Nacionales, C. por A.

(includes US$1,125,109)

Bond

Cervecera Nacional Dominicana, S. A.

(includes US$60,000)

Bond

555,536,142

Provision for investments

(includes US$353,159)

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

January 2011 July 2012

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%

January November 2011

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

Bank of America (corresponds to

US$2,987,574)

111,802,478

2.25%

February 2015

Financial certificate

Popular Bank Ltd. Inc. (includes

US$4,000,000)

149,690,000

2.75%

February 2011

Standard Chartered Bank

(corresponds to US$26,600,000)

995,438,500

0.20%

January 2011

Available-for-sale
Note

Wachovia Corp. (corresponds to

US$3,083,910)

Note

Rabobank Nederland (corresponds to

US$2,938,380)

Note

HSBC Finance Corp. (corresponds to

US$1,459,485)

Note

Morgan Stanley (corresponds to

US$2,006,111)
Total

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)

Government of the Dominican

Republic (includes US$25,735,860)

5,310,133,636

11.91%

February 2011 July 2020

13.50%

February 2011 October 2017

Financial certificate (b)

Certificate of special
investment
Short-term remunerated
deposits

Note of fixed rent

130

Central Bank of the Dominican

Republic
Central Bank of the Dominican
Republic
Central Bank of the Dominican
Republic

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

Provision for investments

(includes US$726,031)

(59,964,865)
22,899,033,739

131

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

(a) Includes bonds issued by the Ministry of Finance for RD$750 million, to be computed
as legal reserve according to Resolutions of the Monetary Board dated February 16 and
March 5, 2009 for a period of two years.

(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

a) The breakdown of the portfolio by type of loan consists of:

Residual value (Note 24 (j))

2011

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

Over more than 90 days (iv)

294,063,124

311,931,409

Under legal proceedings (v)

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

Over more than 90 days (iv)

168,584,732

179,405,920

Under legal proceedings (v)

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

Interests receivable (includes US$3,999,760 in 2011 and

US$2,146,787 in 2010)

1,252,095,124

947,893,716

Provision for loans and interests receivable (includes

US$15,765,335 in 2011 and US$12,220,821 in 2010)

(3,387,389,720)

(3,685,422,793)

126,537,847,258

132

647,329,670

Under legal proceedings (v)

Personal credit cards (includes US$14,086,093 in 2011

and US$11,182,186 in 2010)

Subtotal

RD$

Over more than 90 days (iv)

Restructured (ii)

Construction, remodeling, repairs, extension and other

RD$

Commercial loans (a):

Outstanding (i)

Acquisition of housing (includes US$21,766,893 in 2011

and US$20,692,277 in 2010)

2010

b) The loans portfolio condition is as follows:

Consumer loans:

Consumer loans

2011

Outstanding (i)
Restructured (ii)
Past due:
From 31 to 90 days (iii)

(Continued)

109,217,065,782

133

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

2011

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

From 31 to 90 days (iii)

74,604,330

48,862,239

Over more than 90 days (iv)

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:

Under legal proceedings (v)

Provision for loans and interests receivable

126,537,847,258

With polyvalent collaterals (i)

With non polyvalent collaterals (ii)
Without collateral
Interests receivable
Provision for loans and interests receivable

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

(a) These balances include loans to microenterprises.

(i)

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.

d) By origin of the funds:

(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

Correspond to balances that are in process of collection through legal

proceedings.

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

Provision for loans and interests receivable

(3,387,389,720)

(3,685,422,793)

126,537,847,258

109,217,065,782

2011

2010

RD$

RD$

Short term (up to one year)

35,571,747,234

33,831,129,770

Medium term (more than 1 year and up to 3 years)

10,028,658,040

9,235,279,755

e) By term:

Long term (more than three years)

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

Provision for loans and interests receivable

(3,387,389,720)

(3,685,422,793)

126,537,847,258

134

109,217,065,782

135

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

f) By economic sectors:

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

HSBC Bank (corresponds to US$14,925)

Retail and wholesale business

27,443,351,552

22,896,640,808

Hotels and restaurants

10,310,167,127

7,439,863,364

Wachovia Bank (corresponds to US$378,252)

Transportation, warehousing and communication

2,665,855,614

3,082,349,736

Wells Fargo Bank (corresponds to US$138,450)

Financial intermediation

1,184,807,959

2,031,046,897

Real estate, corporate and renting activities

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

Provision for loans and interests receivable

(3,387,389,720)

(3,685,422,793)

Agriculture, livestock, hunting and forestry

Fishing
Exploitation of mines and quarries
Manufacturing industries
Electricity, gas and water supplies
Construction

Public administration and defense, social security

plans of mandatory affiliation
Education
Social and health services
Other activities of community, social and personal
services
Private households with domestic services
Extraterritorial organizations and entities

126,537,847,258

109,217,065,782

Outstanding Acceptances Receivable

Outstanding acceptances receivable consist of:

Correspondent bank

RD$

February 2011

Bank of America (corresponds to US$120,162)

4,496,780

January
February 2011

Commerzbank (corresponds to US$89,333)

3,343,013

January 2011

Deutsche Bank (corresponds to US$213,449)

7,987,821

January 2011

558,531

January 2011

1,616,652

January 2011

14,155,140

February 2011

5,181,145

February 2011

Standard Chartered Bank (corresponds to US$43,200)

38,604,374

Accounts Receivable
Accounts receivable consist of:
2011

2010

RD$

RD$

Rights on foreign exchange forward contract (a)

39,390,000

139,322,200

Commissions receivable (b)

87,950,802

62,253,486

Sundry accounts receivable:

Advances to suppliers (c)

161,199,804

180,180,697

Accounts receivable to employees

13,337,208

12,695,690

Deposits in guarantee

36,975,438

31,542,168

Claimed compensation on disasters (d)

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

Other accounts receivable (g)

Maturities

Maturities

1,265,292

Advances in demand accounts (f )

Amount

RD$

Bancoldex, Colombia (corresponds to US$33,811)

Returned checks (e)

2011
Correspondent bank

Amount

Interests receivable on accounts receivable

March
Bank of America, Miami (corresponds to US$91,956)

3,560,916

April 2012

Banco Bradesco Sao Paulo, Brazil (corresponds to

US$1,245,241)

48,221,108

September 2014

Wachovia Bank, China (corresponds to US$52,650)

2,038,834

January 2012

Wachovia Bank, Japan (corresponds to US$78,234)

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

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

(b) This account includes commissions receivable from services provided, contingent
operations and other, only if a reasonable certainty exists on its recoverability. Includes
US$100,883 in 2011 and US$77,606 in 2010.
(c) At December 31, 2011 and 2010, advances paid for the acquisition of commercial
premises are included of an approximate amount of RD$162 million, minus the
cumulative expenditure representing the opportunity cost for the use of these funds of
approximately RD$56 million and RD$46 million, respectively, as allowed by the
Superintendence of Banks. The related expense is included under the item other
income (expenses) in the income statement.
(d) Correspond to the amount to be recovered from the insurance company from disasters
occurred to the detriment of the entity. The amount outstanding at 2010 year end was
collected in 2011.
(e) Include US$66,259 in 2011 and US$85,270 in 2010.

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.

Furniture and equipment

Real estate

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)

More than 40 months:

Securities
Real estate
Total

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

Assets Acquired Through Settlement of Loans

Provision
RD$

Up to 40 months:

Furniture and equipment

(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

Assets acquired through settlement of loans consist of:

6,121,822

(3,202,306)

681,535,157

(212,447,409)

687,656,979

(215,649,715)

424,780,230

(424,780,230)

More than 40 months:

2011

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

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

12

11 Investment in Shares

The movement of property, furniture and equipment during the years 2011 and
2010, is as follows:

Investments in shares consist of:

2011

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)

Property, Furniture and Equipment

(7,524,816)
115,197,714

(N/A) Not available.

(a) On April 12, 2011, the Bank acquired 380,721 shares of the company Consorcio de
Tarjetas Dominicanas, S. A. (Cardnet) to a related party for a total of US$8,703,282, by
which it increased its equity interest to 18.4% (Note 32). This transaction received no
objection from the Superintendence of Banks of the Dominican Republic through
Circular Letter (SB) ADM/0151/11.

Property,
furniture and
equipment,
net at
December 31

(538,282,251) (1,175,143,034)

1,799,951,165 2,375,007,899 1,770,612,557

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

(b) Include US$73,006 for both years.

(c) Include US$2,190.
In the Dominican Republic there is no active stock market where the Bank can obtain the
market value of these investments.
140

141

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

(a) At December 31, 2011 and 2010, the detail of these diverse assets and construction in
progress, is as follows:
2011

2010

Sundry assets
Assets acquired or built for sale (b)

RD$

RD$

Paper, supplies and other materials

Libraries and works of art

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

Items pending allocation (d)

Subtotal
Total

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

(a) Include US$146,934 in 2011 and US$50,499 in 2010.

(b) Correspond to a property received in settlement of a commercial transaction by which the
Bank had made advance payments for the acquisition of commercial premises.
(c) These items are accounted for in this account, net of the corresponding accumulated
amortization, until the authorization from the Superintendence of Banks of the Dominican
Republic has been obtained, in accordance with local regulations in force.
(d) This account includes the debit balances of the items which, for internal operational
reasons or characteristics of the operation, cannot be charged immediately to the final
accounts. Include US$381,856 in 2011 and US$470,897 in 2010.

Other Assets
Other assets include:

Deferred charges
Deferred income tax (Note 22)

Leasehold improvements and software programs

pending of authorization (c)

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

Other deferred charges

Prepaid insurance
Prepaid income tax (Note 22)
Prepaid expenses of software license
Prepaid expenses of Superintendence of Banks fees
Sundry deferred charges (a)
Subtotal

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

Accumulated amortization of software

(41,012,229)

(38,146,932)

9,333,740

19,720,012

Subtotal

142

143

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

2010

14

Summary of Provisions for Risky Assets

Loans
Portfolio
RD$

The movement of the provisions for risky assets is as follows:

Transfers of
provisions of
assets acquired
through
settlement of
loans

(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

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

15

Obligations Held by the Public

Local
Currency
RD$

Obligations held by the public are detailed as follows:

a)

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

From 91 to 180 days

From 181 to 360 days

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

More than 1 year

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

From 91 to 180 days

2,561,797,838

4.93%

786,764,793

1.01%

3,348,562,631

From 181 to 360 days

11,468,739,603

5.87%

1,004,582,033

1.10%

12,473,321,636

More than 1 year

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

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

At December 31, 2011 and 2010, obligations held by the public include restricted
amounts:

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:

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$

Deposits from Local and Foreign Financial Entities

Deposits from local and foreign financial entities consist of:

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

Obligations held by the public:

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

From 91 to 180 days

208,084,218

135,462,370

From 181 to 360 days

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

More than one year

Interests payable

149

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

c)

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

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

18 Certificates of Deposits

2010

Certificates of deposits consist of:

a)

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

From 91 to 180 days

6,946,283,425

8.78%

6,946,283,425

From 181 to 360 days

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

From 91 to 180 days

4,760,519,277

5.13%

4,760,519,277

108,898,989

108,898,989

From 181 to 360 days

81,700,187

5.13%

81,700,187

More than 1 year

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

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

At December 31, 2011 and 2010, certificates of deposits include restricted amounts for the
following items:
2011
Deceased
Clients
RD$

Collateralized
RD$

Total
RD$

2011
RD$

2010
RD$

Items pending allocation (include US$708,132 in 2011

and US$172,288 in 2010)

35,617,952

37,066,075

Other deferred credits (include US$4,884 in 2011 and

US$163,500 in 2010)

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

The detail of other liabilities is as follows:

Term obligations (include US$709,484 in 2011 and

US$308,553 in 2010)
Unclaimed third party balances
Future exchange contract (corresponds to
US$3,000,000, see related asset in Note 9)
Sundry creditors (include US$326,023 in 2011 and
US$830,655 in 2010)

154

Subordinated
debt bonds

Collateral

Without
collateral

Rate
%

Variable (a)

Term

10 years

Debt issuance
costs (b)

Other Liabilities

Demand obligations (include US$1,113,566 in 2011

and US$2,227,494 in 2010) (a)

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

Provision for contingencies (include US$982,565 in

2011 and US$973,813 in 2010) (b) (Note 14)

210,474,609

190,195,301

Other provisions (include US$81,051 in 2011 and

US$83,993 in 2010) (c)

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

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

(a)

Corresponds to the subordinated bonds denominated in RD$ with an issuance made

up of 4,100 bonds at par value of RD$1,000,000 each. This debt bears interest at an
annual rate equivalent to the nominal weighted average interest rate for certificates
of deposits and/or term deposits of the Commercial Banks, published by the Central
Bank of the Dominican Republic plus 275 points (2.75%). The rate thus determined
is fixed for a six-month period and reviewed on a semi-annual basis. The interest
rates on this subordinated debt as of December 31, 2011 and 2010 were 10.57% and
8.29%, respectively.

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

In addition these bonds have the following characteristics:

i)

Quantity

ii)

They cannot be reacquired or redeemed early by the issuer.

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)

The creditor should be a corporate entity, domestic or foreign. The bonds

cannot be acquired directly or indirectly by local financial entities or off-shore
entities, unless they are owned by a leading international bank.
The securities will be redeemed in its entirety with a single capital term at
maturity on the redemption date, which is December 2017.

In accordance with Prudential Regulation of Capital Adequacy Standard, these

bonds are considered for regulatory capital purposes as secondary capital. In this
regard, the Superintendence of Banks of the Dominican Republic approved the use
of this issuance as secondary capital for the purpose of calculating the solvency
ratio.
(b)

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

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

In 2011 and 2010 the common shares issued have a value of RD$20 over the nominal value.
The total premium received for these shares at December 31, 2011 and 2010, amounts to
RD$2,128,805,560 and RD$1,702,610,420, respectively, and is presented as additional paidin capital in the equity item in the balance sheet.

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)

Current income tax

On June 24, 2011, Law No. 139-11 related to the Fiscal Reform was enacted, by which the
corporate income tax rate increased from 25% to 29% effective the 2011 fiscal year and for
a transitory period of two years. The current income tax presented for the fiscal years 2011
and 2010 was determined at the income tax rates of 29% and 25%, respectively, over the
net taxable income for these years.
Law No. 139-11 additionally establishes effective the fiscal year 2011, and for a transitory
period of two years, the 1% tax on net financial assets, in replacement of the anual assets
tax of 1%. In the case of financial institutions, the anual assets tax was determined on the
book value of property, furniture and equipment as presented in the balance sheet,
excluding revaluation. This assets tax was an alternative or a minimum tax, co-existing with
the income tax, by which taxpayers should settle and pay whichever was greater on an
annual basis. In 2011 the 1% tax on net financial assets in force amounted to RD$632
million which is classified within operating expenses in the income statement (See Note
29).
The reconciliation of the results before taxes as per accounting records with the taxable
income for fiscal purposes, is summarized below:

21.2 Revaluation Surplus

Corresponds to the revaluation effect of certain real estate properties of the Bank as of
December 31, 2004, net of the corresponding accumulated depreciation.

(1,486,751,295)

2010
RD$

Results before income tax

2011
RD$

2010
RD$

5,254,691,646

4,784,975,758

Plus (less) items that generate differences

Permanent:
Dividends received in cash, net of withholding
tax
Tax on complementary retributions
Revenues exempted on investment in
Dominican Republic Government bonds

(37,607,666)

(5,674,469)

234,346,068

336,532,616

(256,753,425)

(534,910,473)
(Continued)

158

159

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

Other non-deductible items

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)

Leasing installments accrued (a)

256,457,426

250,773,929

Financial leasing revenues (a)

(137,077,786)

(85,550,651)

(18,270,519)

(113,593,381)

(21,886)

41,642,171

Gain from the sale of property, furniture

and equipment
Fiscal (gain) loss on the sale of fixed assets
category I
Impairment of accounts receivable

10,419,249

6,922,970

Deduction of provision for loans portfolio

(b)

(25,530,568)

(25,530,568)

(416,880)

(416,880)

Deduction of provision for investments (b)

Provision for contingent operations

20,279,308

16,495,927

Provision for assets acquired through

settlement of loans

94,652,945

(107,713,624)

Provision for leasing portfolio

(4,059,289)

Other provisions (miles)

18,111,049

Exchange difference of the current year

(13,743,190)

(2,956,950)

Exchange difference of the previous year

(2,639,200)

(4,517,042)

(69,612,386)

(54,339,353)

Inflation adjustment of other nonmonetary

assets

(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

Advances and tax credits for dividend

withholdings (*)

(1,330,866,106)

(1,319,897,137)

155,885,189

(250,732,987)

Income tax payable (credit balance) at year

end (**)

(*)

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

Deferred income tax

The movement of the deferred income tax assset is presented as follows:
2011
Initial
Balance
RD$

(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.

Provision for loans portfolio

Provision for investments

Adjustment
of the Period
RD$

Final
Balance
RD$

6,382,642

(6,382,642)

104,220

(104,220)

Provision for assets acquired

through settlement of loans

323,588,353

56,039,236

379,627,589

Property, furniture and

equipment

507,716,974

83,518,792

591,235,766

Provision for contingent

operations

47,548,825

5,069,827

52,618,652

Other provisions

62,561,365

27,857,442

90,418,807

Net investment in financial

leasing

(172,535,950)

(41,686,904)

(214,222,854)

Effect of the inflation adjustment

of non-monetary assets

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

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

2010

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

Provision for assets acquired

through settlement of loans

350,516,759

(26,928,406)

323,588,353

Property, furniture and

equipment

500,877,172

6,839,802

507,716,974

Provision for contingent

operations

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

Provision for loans portfolio

Provision for investments

Net investment in financial

leasing
Effect of the inflation adjustment
of non-monetary assets
Exchange difference

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).

23 Legal Limits and Technical Ratios

The details of the limits and technical ratios required by the banking regulations in force are
as follows:

According to

Investments in shares:
Foreign financial entites

2,076,576,190

2,827,110

Non-financial entities

1,038,288,095

2,000

Supporting entities and related services

2,076,576,190

449,929,982

Property, furniture and equipment

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

Short-term financings in foreign currency (a)

2010
According to
Limit Concept

19,697,743,172

20,111,660,711

Legal reserve US$

195,802,500

199,174,357

10%

13.67%

Solvency
Individual loans:
With actual collaterals

3,358,234,425

2,135,648,948

Without actual collaterals

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

Property, furniture and equipment

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

Short-term financings in foreign currency (a)

Legal reserve RD$

19,743,649,428

20,114,522,473

Legal reserve US$

239,851,745

299,851,805

Solvency

10%

12.53%

With actual collaterals

3,674,927,262

2,498,631,562

Without actual collaterals

1,837,463,631

1,833,031,013

Related parties

9,187,318,154

7,946,693,617

Regulation

According to
Entity

Legal reserve RD$

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

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

24 Commitments and Contingencies

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

e) Fund for the Strengthening of Banking Industry

Endorsements
Commercial

890,063,496

639,720,212

Other endorsements (financial)

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).

b) Rent of premises, real estate and ATMs

The Bank maintains rental contracts of the premises in which its branches, agencies
and ATMs operate. For the years ended December 31, 2011 and 2010, the corresponding
expenses amounted to approximately RD$290 million and RD$243 million, respectively,
that are included in the operating expenses item in the income statement.

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

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

g) Credit card licenses
The Bank has entered into agreements for the use and issuance of VISA and Mastercard
credit cards for an indefinite period, which can be cancelled at any time by mutual
consensus of the parties. The obligations of the Bank for the use of these licenses
include the payment of fees based on the number of transactions, among other
aspects. In addition, the Bank has entered into an agreement with a related entity by
managing the process of the exchange of transactions through debit cards at the
points of sale in the affiliated establishments. The corresponding expenses for the
years ended December 31, 2011 and 2010 were approximately RD$195 million and
RD$148 million, respectively, and are included under the other operational expenses
item in the income statement.

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

Financial leasing arrangements

At December 31, 2011 and 2010, the Bank has commitments for the residual values as
established in leasing agreements with the purchase option. The corresponding
commitment amounts to approximately RD$229 million at December 31, 2011 and
2010.

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)

Obligations held by the public

(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

Letters of credit obligations in foreign currency

The Bank maintains contingent commitments of RD$8.9 million at December 31, 2011
and 2010, arising from letters of credit approved and issued with financing from the
Commodity Credit Corporation (CCC) through foreign banks, under special agreements.
The Bank believes that any negative effect that might result from the liquidation of
these commitments and related interests as a result of the official exchange rates
being adjusted to the market exchange rates, would be absorbed by the Dominican
government through its official financial institutions or by the official and private
institutions that participated in the negotiation of these letters of credit CCC, therefore,
it believes that it will not suffer material losses, if any, as a consequence of this
situation.

j)

25 Financial Income and Expenses

(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

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

26

Other Operational Income (Expenses)

2011
RD$

The main other operational income (expenses) recognized during the years ended
December 31, 2011 and 2010 consist of:

Real estate services

Other services

2011
RD$

2010
RD$

Sundry expenses other operative expenses

Other operational income

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

Commissions for charges of account services

767,425,391

582,466,226

Commissions for request of checkbooks

123,340,275

211,616,631

Other commissions collected

392,150,903

353,686,372

4,899,113,932

4,255,495,484

659,259,946

653,985,772

Commissions for exchange gain from foreign

currencies

Accounts receivable
Difference in liquidation of operations of cards
Other operational diverse income
Total

Other Income (Expenses)

The main other income (expenses) recognized during the years ended December 31, 2011
and 2010, consist of:

Recovery of written-off assets

601,546,796

43,703,360

23,927,106

Gain from the sale of property, furniture and equipment

21,509,781

114,190,144

Gain from the sale of assets acquired through settlement of loans

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

Income from recovery of expenses

Income from leasing of assets
Other income (a)
Other expenses:

(60,393,476)

(60,662,618)

21,760,532

Loss on the sale of property, furniture and equipment

(3,400,268)

(1,423,723)

1,159,445

2,006,243

130,276

4,678,387

Loss on the sale of assets acquired through settlement

of loans

(36,477,658)

(35,495,549)

4,507,480

3,490,658

Loss on thefts, assaults and frauds

(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

Expenses for uncollectible accounts receivable

Expenses for sundry assets
Other expenses (a)

Commissions for services

168

741,041,227

26,020,559

Other operational expenses

Correspondent services

2010
RD$

Income from non-financial investments

Donations made by the Bank

(47,530,304)

(52,303,797)

(1,780,800)

(1,751,867)

Automatic teller machines and points of sale

(186,704,370)

(170,804,218)

Credit cards

(241,709,436)

(155,869,885)

Stock exchange operations

2011
RD$
Other income:

Expenses for assets acquired through settlement of

loans

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

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

28 Remunerations and Social Benefits
The salaries and compensation to the employees recognized during the years ended
December 31, 2011 and 2010 consist of:
2011
RD$
Salaries, wages and benefits to employees

2010
RD$

(4,713,644,431)

(3,891,193,964)

Social insurance

(306,932,818)

(262,902,892)

Contributions to pension plans (Note 33)

(152,773,380)

(130,957,251)

Other expenses of personnel (a)

(1,191,456,744)

(1,061,502,777)

(6,364,807,373)

(5,346,556,884)

2011
RD$

2010
RD$

Service of call center

(288,897,161)

(256,205,041)

Safety services and transport of documents

(245,278,140)

(205,953,193)

Other taxes (a)

(997,022,044)

(439,179,257)

Other general and administrative expenses

(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

Assets sensitive to interest rates

Operative Expenses Other Expenses

Other operative expenses, in the operative expenses line, consist of:

In Foreign
Currency
RD$

120,022,939,046

28,280,031,898

Liabilities sensitive to interest rates

(64,162,909,087)

(13,861,685,431)

Net position

55,860,029,959

14,418,346,467

693,190,557

13,329,401

Exposure to interest rate

2011
RD$

2010
RD$

Maintenance and repairs

(320,715,170)

(277,218,256)

Communications

(279,860,846)

(278,012,831)

Water, garbage and electric power

(284,901,665)

(228,862,834)

Lease of premises and equipment

(331,838,139)

(280,477,526)

Assets sensitive to interest rates

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)

Liabilities sensitive to interest rates

Papers, supplies and other materials

(208,410,831)

(254,589,393)

Net position

Legal expenses

(118,371,159)

(100,682,995)

Exposure to interest rate

Promotion and advertising

(562,872,673)

(516,935,435)

Loyalty program

(416,945,725)

(340,410,164)

Contributions to the Superintendence of Banks

(Note 24 c)

(332,972,605)

(299,130,462)

(429,592,802)

(362,627,592)

Contingency fund and fund for the strengthening of

banking industry (Note 24 d) and e))

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

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

30.2 Liquidity Risk
At December 31, 2011 and 2010, the detail of the maturity of the assets and liabilities are
presented below:
2011
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$

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

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

Following is the detail of the liquidity ratio at December 31, 2011 and 2010:

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

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

31 Fair Value of Financial Instruments

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$

Investments in shares (b)

Market
Value
RD$

Loans portfolio (b)

Investments in shares (b)

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

Obligations held by the public:

Demand

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

Deposits from local and foreign financial entities:

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

Obligations held by the public:

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

Borrowed funds (b)

811,142,993

N/A

29,563,560,016

N/A

4,043,734,946

N/A

Certificates of deposits (b)

Subordinated debt (b)

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

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

32 Transactions with Related Parties

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

Commissions for services

23,407,239

23,407,239

2,872,820

2,872,820

Commissions for exchange

Services provided

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

Commissions for services

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

Salaries and compensation

to employees

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

Commissions for exchange

Transactions

Amount
RD$

Transactions

Commissions for services

Expenses
RD$

Effect in

Interests and commissions

on loans

Effect in

Purchase of shares

Expenses
RD$

Expenses

Related to the
person

Income
RD$

Interests and commissions

on loans

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.

Sale of property, furniture

and equipment

(Continued)

178

179

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Notes to the Financial Statements (continuation)

2010

34 Non Monetary Transactions

Effect in

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

Commissions for services

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

Salaries and compensation

to employees

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

Transfer of provision for loans portfolio to

assets acquired through settlement of loans

166,046,790

112,211,524

Transfer of provision for loans portfolio to provision for interests receivable

103,688

Transfer of provision for investments to provision for loans portfolio

31,582,255

8,284,473

Transfer of provision for assets acquired

through settlement of loans to provision for
loans portfolio

55,999,999

260,161,197

Transfer of provision for contingent operations

to provision for loans portfolio

35,367,958

124,985,666

Transfer of provision for assets acquired

through settlement of loans to provision for
interests receivable

2,789,445

Sale of assets acquired through settlement of

loans granted by the Bank to fulfill the sales
price agreed

115,711,332

62,608,000

(3,396,621)

291,306,006

36,452,710

60,090,000

Write-off of loans portfolio

Other expenses

Write-off of interests receivable

Write-off of assets acquired through settlement of loans
Assets acquired through settlement of loans

The detail of the balances with related parties is as follows:

December 31,
2011
RD$

December 31,
2010
RD$

Other balances with related parties

Available funds
Investments
Accounts receivable
Outstanding acceptances receivable
Investments in shares

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

Obligations held by the public

2,419,228,252

2,642,372,989

Deposits from local and foreign financial entities

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

Unrealized loss on available-for-sale investments

Dividends paid in shares
Transfer from accounts receivable to construction in progress
Transfer from sundry assets to
property,furniture and equipment

54,194,072

66,709,372

Transfer from assets acquired through settlement of loans to other assets

144,500,000

Transfer from sundry assets to intangible

assets

63,370,319
(Continued)

181

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

Transfer from results for the year to legal

reserve

35

Banco Popular Dominicano, S. A. Banco Mltiple Financial Statements on a Regulated Basis

106,548,785

138,368,060

Transfer from property,furniture and

equipment to sundry assets

44,541,281

Transfer from property,furniture and

equipment to deferred charges

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.

36 Notes Required by the Superintendence of Banks of the

Dominican Republic
Resolution No. 13-94 of the Superintendence of Banks of the Dominican Republic and its
modifications establish the minimum disclosures that the annual financial statements of
financial entities should include. At December 31, 2011 the following notes are not included
as they are not applicable:

182

Change in the accounting policies

Memorandum accounts (administration of funds)

DIREC TORIES

Technical reserves
Responsibilties
Reinsurances
Financial information by segments
Other disclosures

Members of the Board

of Administration
Committees of the Board
of Administration

Important discontinued operations, indicating the date in which the event occured

Principal Officials

Reclassification of liabilities of regular significance

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

M em b ers o f t h e Bo a rd o f Admi n istr atio n

Manuel A. Grulln

Prxedes Castillo P.

Osin T. Abreu

Salustiano Acebal M.

Jos Alcibades Brache Batista

Adriano Bordas

President

Secretary

member

member

member

member

Executive President - Grupo Popular

Dominicano, S. A.

Secretary of the Board of Administration

Grupo Popular S. A.

Member of the Board of Administration - Grupo

Popular, S. A.

Member of the Board of Administration Grupo Popular, S.A.

Member of the Board of Administration

Grupo Popular, S.A.

Member of the Board of Administration

Grupo Popular, S.A.

President of the Credit Committee of the Board

of Administration Banco Popular Dominicano,
S.A. - Banco Mltiple

President of the Corporate Governance

Committees of the Boards of Administration Banco Popular Dominicano, S.A.; Banco Mltiple
and Grupo Popular, S. A.

Vicepresident of the Audit Committees of the

Boards of Administration - Banco Popular
Dominicano, S. A.; Banco Mltiple and Grupo
Popular, S. A.

Member of the Credit Committee of the Board

of Administration - Banco Popular Dominicano,
S. A. - Banco Mltiple

Member of the Board of Administration

Administradora de Fondos de Pensiones Popular S.A.

Member of the Credit Committee of the Board

of Administration - Banco Popular Dominicano,
S. A. - Banco Mltiple

Member of the Audit Committees of the Boards

of Administration - Banco Popular Dominicano,
S.A.; Banco Mltiple and Grupo Popular, S. A.

Vicepresident to the Board of Administration Administradora de Fondos de Pensiones

Popular, S.A.; Vicepresident of the Operational
Risk Committee and Member of the Audit
Committee - Administradora de Fondos de
Pensiones Popular, S.A.

Member of the Appointment and

Remuneration Committees of the Board of
Administration Banco Popular Dominicano,
S. A.; Banco Mltiple

President of the Risk Committees of the Boards

of Administration - Banco Popular Dominicano
S. A. - Banco Mltiple and Grupo Popular, S. A.

President of the Audit Committees of the Board

of Administration - Banco Popular Dominicano,
S.A.; Banco Mltiple and Grupo Popular, S. A

Member of the Audit Committees of the Boards

of Administration - Banco Popular Dominicano,
S. A.; Banco Mltiple and Grupo Popular, S. A.

President of the Audit Committee and Member

of the Board of Administration
Administradora de Fondos de Pensiones Popular S.A.

President of the Executive and Strategic

Committees of the Boards of Administration Banco Popular Dominicano, S.A.; Banco Mltiple
and Grupo Popular, S. A.
Member of the Corporate Governance
Committees of the Boards of Administration
Banco Popular Dominicano, S.A.; Banco Mltiple
and Grupo Popular, S. A.

Member of the Executive and Strategic

Committees of the Boards of AdministrationBanco Popular Dominicano, S.A.; Banco Mltiple
and Grupo Popular, S. A.

Member of the Corporate Governance

Committees of the Boards of Administration
Banco Popular Dominicano, S. A.; Banco
Mltiple and Grupo Popular, S. A.

Member of the Audit Committees of the Boards

of Administration - Banco Popular Dominicano,
S. A. Banco Mltiple and Grupo Popular, S. A.
Secretary to the Board of Administration Administradora de Fondos de Pensiones
Popular, S. SA.; Member of the Investment
Committee of the Administradora de Fondos de
Pensiones Popular, S. A.

Member of the Executive Committee - Popular

Bank, Ltd., Inc.

Member of the Risk Committees of the Boards

of Administration - Banco Dominicano S.A.;
Banco Mltiple and Grupo Popular, S. A.

Member of the Board of Directors - Popular

Bank, Ltd., Inc.

Member of the Board of Directors - Popular

Bank, Ltd, Inc.

Vicepresident of the Risk Committees of the

Boards of Administration - Banco Dominicano
S. A.; Banco Mltiple and Grupo Popular, S. A.

Member of the Executive Committee - Popular

Bank, Ltd., Inc.

Member of the Board of Directors - BPD Bank

President - Escobal, S. A. S.
President - Piloa, S. A. S.

President - Juristas S.A.

Member of the Audit and Risks Committees,

and Corporate Governance and Compliance
Committees of BPD Bank

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.

Founding Member of ADEMI (Association for

the Development of Microenterprises, Inc.)

President - Acedo S. A. S.

J. Armando Bermdez

Member 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 Corporate Governance
Committees of the Boards of Administration Banco Popular Dominicano, S. A.; Banco
Mltiple and Grupo Popular, S. A.
Treasurer of the Board of Directors - Popular
Bank, Ltd., Panam

Member of the Executive and Strategic

Committees of the Boards of Administration
Banco Popular Dominicano, S. A.; Banco
Mltiple and Grupo Popular, S. A.

President of the Audit Committee - Popular

Bank, Ltd., Inc.

Member of the Board of Administration

Grupo Popular, S. A.

Fundador de la Asociacin para el Desarrollo

Ademi, Inc.

Member of the Risk Committee - Popular Bank,

Ltd. Inc.

Member of the Board of Directors - Popular

Bank, Ltd. Inc.

Miembro del Grupo de Asesores Bez, Castillo &

Job

Member of the Compliance Committee Popular Bank, Ltd. Inc.

President - Cervecera Vegana, S. A.

President of the Risk Committee - Popular Bank,

Ltd., Panam

Miembro del Consejo de Directores de Cartones

del Caribe, S. A.

Member of the Executive Committee of Popular

Bank, Ltd. Inc.

President - Corporacin Dominicana de Radio y

Televisin, C. por A. (Color Visin)

Member of the Compliance Committee Popular Bank, Ltd., Panam

President - Aerolneas Dominicanas, S. A.

(Dominair)

Vicepresident of the Audit Committee Administradora de Fondos de Pensiones

Popular, S. A.

Andrs Avelino Abreu

member
Member of the Board of Administration - Grupo
Popular, S.A.
Member of the Executive and Strategic
Committees of the Boards of Administration
Banco Popular Dominicano, S.A.; Banco Mltiple
and Grupo Popular, S. A.
Member of the Credit Committee of the Board
of Administration Banco Popular Dominicano,
S.A.; Banco Mltiple

Alejandro E. Grulln E.

President - International Goods, S. A.

member

President - Telemedios Dominicana, S. A.

Member of the Board of Administration - Grupo

Dominicano, S. A.
Member of the Executive and Strategic
Committees of the Board of Administration Banco Popular Dominicano, S. A. - Banco
Mltiple and Grupo Popular, S. A.
Honorary Chairman of BPD Bank

member

Member of the Audit Risk; Corporate

Governance and Compliance Committees
BPD Bank, New York

Member of the Board of Directors, Cartones del

Caribe, S.A.

President - Bermdez International, S. A.

Manuel E. Tavares
Member of the Board of Administration Grupo
Popular Dominicano, S. A.

Member of the Board of Directors - Popular

Bank, Ltd. Inc.

President - Vrtice, S.A.

President - Isidro Bordas, S.A.

Member of the Board of Directors - BPD Bank,

New York

Member of Advisory Group Baez, Castillo & Job

member

Member 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 Audit Committee - Popular

Bank, Ltd., Panam

-President of the Operational Risk Committee Administradora de Fondos de Pensiones

Popular, S. A.

Vicepresident of the Appointment and

Remuneration Committees of the Boards of
Administration Banco Popular Dominicano,
S. A.; Banco Mltiple and Grupo Popular, S. A.
Member of the Risk Committees of the Boards
of Administration - Banco Dominicano S. A.;
Banco Mltiple and Grupo Popular, S. A.
President - Latin America Free Zone
Investments Dominicana, Inc.

Member of the Executive Committee - Popular

Bank, Ltd., Panam

Pedro A. Rodrguez
member
Member of the Board of Administration
Grupo Popular, S. A.

President Board of Administration Avelino

Abreu, S.A.S.
President - Misuri Comercial, 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

Executive and Strategic

Committee
Manuel A. Grulln
President

Marino D. Espinal
Vicepresident

Andrs Avelino Abreu

member

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

Member with Voice but No Vote

Miguel ngel Rodrguez

auditor general

Jos A. Brache
member

Members with Voice but No Vote

Alex Pimentel M.
Senior Executive Vicepresident
Risk Management, Security and Human
Resources

Antonia Antn de Hernndez

Executive Vicepresident Human
Resources, Systems & Processes and
Quality Management

Rafael A. Del Toro Gmez

Executive Vicepresident
Internal Control and Compliance
Grupo Popular, S.A.

Credit Committee
Manuel A. Grulln

Corporate Governance
Committee

President

Prxedes Castillo P.

Marino D. Espinal

President

Vicepresident

Jos A. Brache

Andrs Avelino Abreu

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

Members with Voice but No Vote

Members with Voice

but No Vote

Members with Voice but No Vote

Manuel E. Jimnez F.

Alex Pimentel M.

Christopher Paniagua

Senior Executive Vicepresident

Administration - Grupo Popular, S. A

Senior Executive Vicepresident,

Risk Management, Security and
Human Resources

Senior Executive Vicepresident Business

Alex Pimentel M.
Senior Executive Vicepresident
Risk Management, Security and Human
Resources

Manuel E. Jimnez F.
Senior Executive Vicepresident
Administration Grupo Popular, S.A.

Fernando Olivero Melo

Executive Vicepresident Personal
Business and Branch Offices

Ren Grulln F.

Alex Pimentel M.

member

Senior Executive Vicepresident

Risk Management, Security and Human
Resources

Christopher Paniagua

Miguel ngel Rodrguez

Ignacio J. Guerra

auditor general

Senior Executive Vicepresident

Finance, Technology and
Operations

Rafael A. Del Toro G.

Executive Vicepresident,
Internal Management and Compliance

Senior Executive Vicepresident,

Business

Aime Abbot Cocco

Vicepresident - Risk Monitoring
Coordinator

Executive Vicepresident Corporate,

Commercial and International Business

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

Antonia Antn de Hernndez

executive Vicepresident human resources, systems
and processes and quality management

Juan Lehoux Amell

executive Vicepresident
technology and operations

Fernando Olivero Melo

executive Vicepresident
personal business and branch offices

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

Senior Executive Vicepresident

Finance, Technology and Operations

Ramn Jimnez
Vicepresident Area of Accounting
Balancing and Control

Ana Idalia Grulln

EXECUTIVE VICEPRESIDENCY
PERSONAL BUSINESS AND
BRANCH OFFICES

Christopher Paniagua

Fernando Olivero M.

Senior Executive Vicepresident

Business

Mara Anglica Haza

Vicepresident Area of Treasury
and Capital Markets

Francisco Ramrez
Vicepresident Marketing Area

Vicepresident Planning 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

Vicepresident Area of Systems

Development

Vicepresident Area of Corporate

and Commercial Business
North Zone

Freddy Melo
Vicepresident Production and
Technological Architecture Area

Wilson Ruiz

Vicepresident
Corporate Banking Are

Enrique Ramrez
Vicepresident International
and Institutional Area

Vicepresident Operations Area

Juan Manuel Martn De Oliva

Jos Hernndez Caamao

Vicepresident
Tourism Business Area

Vicepresident Area of Engineering

and Maintenance

Alberto Rodrguez
Vicepresident Cards Channel
and Operations Area

190

SENIOR EXECUTIVE
VICEPRESIDENCY
BUSINESS

Executive Vicepresident Personal

Business and Branch Offices

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

Senior Executive Vicepresident

Risk Management, Security and
Human Resources

Executive Vicepresident
Human Resources, Systems and
Processes and Quality
Management

John Strazzo

Mara Povedano

Chantall vila

Vicepresident Security Area

Vicepresident Business Area

Metro East Zone

Toms de Len

Vicepresident
Human Resources Area

Austria Gmez

Arturo Grulln F.

Vicepresident Area of
Information Security

Soraya Snchez
Vicepresident
Service Quality Area

Vicepresident Business Area

North Zone

Jaime Aybar
Vicepresident Projects Area

Amanda Almeyda

Rafael Tamayo Belliard

Miguel E. Nez

Vicepresident
Area of Systems and Processes

Vicepresident Business Area

Interior Southeastern Zone

Eugene Rault Grulln

Vicepresident Cards Area

Vicepresident Area of Analysis and

Formalization of Corporate Credit

Patricia Rodrguez
Vicepresident Area of Analysis and
Formalization of Personal Credit

Aime Abbott
Vicepresident
Risk Monitoring Area

Jos Odalis Ortiz

Vicepresident, Credit
Normalization Area

Richard Lueje
Vicepresident,
Operational Risk Area

Edgar Del Toro

Vicepresident Leasing and
Factoring - Business 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

FARMAX CHARLES SUMMER

Av. Charles Summer #14, Los Prados
809-544-8988

809-544-8993

FERRETERA POPULAR SAN ISIDRO

Carretera San Isidro. Ferretera Popular

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

CENTRO DE OPERACIONES DE CAJA MEGACENTRO

Av. San Vicente de Pal esq. Carret. Mella,
Plaza Megacentro Local #72-A
809-544-8980
CENTRO DE LOS HROES
Av. Independencia esq. calle Antonio Maceo
CERVECERA NACIONAL DOMINICANA
Av. Independencia Km. 6

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

MEGACENTRO SAN VICENTE

Plaza Comercial Megacentro, local #17,
Av. San Vicente de Pal esq. Carretera Mella
MELLA
Av. Mella #557

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

PLAZA CHARLES SUMMER

Av. Charles Summer #53

809-541-4956

MILONY CENTER
Calle 8 #36, Ensanche Isabelita

809-544-8983

PLAZA LAMA CHURCHILL

Av. 27 de Febrero esq. Av. Winston Churchill

809-544-8949

PLAZA LAMA DUARTE

Av. Duarte #78

809-544-8920

PLAZA LAMA OVANDO

Av. Nicols de Ovando esq. Mximo Gmez

809 544-8946

PLAZA LAMA ORIENTAL

Carretera Mella Km 8 , Cabirma del Este II

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

MULTICENTRO LA SIRENA LUPERN

Av. Lupern
MULTICENTRO LA SIRENA VENEZUELA
Prolongacin Av. Venezuela
MULTICENTRO LA SIRENA VILLA MELLA
Plaza El Dorado, Av. Charles de Gaulle
esq. Av. Hermanas Mirabal
MULTICENTRO LA SIRENA ORIENTAL
Av. Charles de Gaulle, Los Tamarindos

809-544-8969

NACO
Av. Tiradentes, Galeras de Naco
NATIVA MENDOZA
Carretera de Mendoza, esq. calle 19, Mendoza

809-544-8919

NATIVA SAN ISIDRO

Carretera Mella Km. 16, El Bonito, San Isidro

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

SAN VICENTE DE PAL

Av. San Vicente de Pal #132

809-544-8962

SEDERAS CALIFORNIA CONDE

Calle Conde #52

809-544-8917

SEDERAS CALIFORNIA DUARTE

Av. Duarte #51

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

SUP. LA CADENA SARASOTA

Av. Sarasota casi esq. Av. Privada

809-544-8931

SUP. NACIONAL 27 DE FEBRERO

Av. 27 de Febrero esq. Av. Abraham Lincoln

809-544-8929

SUP. NACIONAL ARROYO HONDO

Av. Luis Amiama Ti esq. Av. Arabia

809-544-8932

SUP. NACIONAL CHARLES DE GAULLE

Av. Charles de Gaulle #10

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

SUP. NACIONAL LOPE DE VEGA

Av. Lope de Vega #98, Piantini
SUP. NACIONAL MXIMO GMEZ
Av. Mximo Gmez #204, Gazcue
SUP. NACIONAL NEZ DE CCERES
Av. Nez de Cceres, El Milln
SUP. NACIONAL SARASOTA
Av. Sarasota esq. calle Los Arrayanes,
Bella Vista Mall
SUP. POLA ARROYO HONDO
Camino Chiquito casi esq. Av. Lope de Vega
SUP. POLA LOPE DE VEGA
Av. Lope de Vega esq. calle Gustavo Meja Ricart
SUP. POLA SARASOTA
Av. Sarasota
TEXACO VENEZUELA
Av. Venezuela #2 esq. calle Odfelismo,
Ensanche Ozama
TORRE EMPRESARIAL AIRD
Av. Sarasota esq. Av. Abraham Lincoln,
Edificio Torre Empresarial, 1er piso
TORRE POPULAR
Av. John F. Kennedy #20 esq. Av. Mximo Gmez,
Miraflores
UNICENTRO PLAZA
Av. 27 de Febrero esq. Av. Abraham Lincoln
USAID
Av. Leopoldo Navarro esq. Av.
Csar Nicols Penson
UTESA ORIENTAL
Calle Juan Luis Duquela #6, Ensanche Ozama
VILLA CONSUELO
Calle Eusebio Manzueta #126, Villa Consuelo
VILLA MELLA
Av. Jacobo Majluta esq. Av. Hermanas Mirabal,
Plaza El Dorado, Villa Mella
WINSTON CHURCHILL
Av. Winston Churchill #1100, Evaristo Morales
ZONA UNIVERSITARIA
Calle Arstides Fiallo Cabral #108
esq. calle Julio Ortega Frier

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

MANOLO TAVREZ JUSTO

Av. Manolo Tavrez Justo, Puerto Plata

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

SAN FRANCISCO DE MACORS

Calle El Carmen esq. calle Castillo #71

809-588-0292

SIRENA EL EMBRUJO (SANTIAGO)

Autopista Duarte KM 5 1/2 Esq Rafael Vidal,
Urbanizacin el Embrujo

809-734-4326

SOSA
Calle Alejo Martnez #1, El Batey, Sosa

809-571-2107

SUP. CENTRAL II
Av. Estrella Sadhal, Santiago

809-734-4317

SUP. JOS LUIS

Av. Manolo Tavrez Justo #20, Puerto Plata

809-970-2524

SUP. LA FUENTE
Av. Circunvalacin #410, Santiago

809-734-4312

SUP. NACIONAL SANTIAGO

Av. Estrella Sadhal esq. Av. 27 de Febrero
Cerros de Gurabo, Santiago

809-734-4314

SUP. POLA SANTIAGO

Bartolom Coln esq. calle Germn Soriano,
Santiago

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

MULTICENTRO LA SIRENA LA VEGA

Av. Gregorio Riva (Frente al INDRHI)

809-242-8323

MULTICENTRO LA SIRENA PUERTO PLATA

Av. Circunvalacin Norte casi esq. 16 de agosto

809-244-4656

MULTICENTRO LA SIRENA SAN FRANCISCO

Carretera San Francisco-Nagua Km 2

AVENIDA PEDRO A. RIVERA

Av. Pedro A. Rivera Km 0 Hper Vega Real, La Vega 809-242-0806
PLAZA MONUMENTAL (SANTIAGO)
Calle el Sol #13 Plaza Comercial el Monumento 809-734-4304

809-574-2724

809-244-0150

809-734-4309

NAGUA
Calle Mara Trinidad Snchez
esq. calle Mariano Prez

FERRETERA OCHOA BARTOLOM

Av. Bartolom Coln
casi esq. Av. 27 de Febrero, Santiago

809-734-4319

NAVARRETE
Av. Duarte #299, Centro Comercial Ydaly,
Navarrete, Santiago

FERRETERA OCHOA IMBERT

Av. Imbert, Santiago

809-734-4308

PLAZA INTERNACIONAL
Av. Juan Pablo Duarte, Santiago

FERRETERA OCHOA LICEY

Carretera Santiago-Licey, Km 5

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

BELLA TERRA MALL (SANTIAGO)

Av. Juan Pablo Duarte casi Esq Estrella Sadhal
Plaza Bella Terra Mall
809-734-4325

809-544-8905

809-686-1826

809-734-4318

AMBEV PUERTO PLATA

Calle Pedro Clisante #2, Palo Las Casas, Puerto Plata 809-589-1014

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

SOUTHEAST INTERIOR REGION

AEROPUERTO LAS AMRICAS

Aeropuerto Las Amricas, La Caleta, Boca Chica

HATO MAYOR
Calle Mercedes #22, Hato Mayor
809-544-8997

ALMACENES IBERIA HATO MAYOR

Calle Pedro Guillermo esq. calle Duarte,
Hato Mayor Del Rey

809-553-1200

ALMACENES IBERIA HIGEY

Carretera Mella Km 1 , Higey

809-554-0909

ALMACENES IBERIA LA ROMANA

Calle Francisco Richiez #110

809-556-5298

ALMACENES IBERIA SAN PEDRO DE MACORS

Av. Independencia esq. calle Snchez
809-526-6559
AZUA
Calle Duarte esq. calle 19 de Marzo, Azua

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

HIPER OLE BOCA CHICA

Autopista Las Amricas KM 22,
La Caleta, Bocha Chica
HIGEY
Calle Agustn Guerrero #61, Higey
HOTEL CATALONIA
Carretera Cabeza de Toro, Bvaro
HOTEL IBEROSTAR
Bvaro
HOTEL PARADISUS
Paradisus Punta Cana

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

LAS MATAS DE FARFN

Calle Damin Ortz esq. calle Duarte

809-527-5155

MULTICENTRO LA SIRENA SAN CRISTBAL

Antigua Carretera Snchez,
Madre Vieja, San Cristbal

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

SAN JOS DE OCOA

Calle Andrs Pimentel #83, San Jos de Ocoa

809-558-3232

SUP. NELLY
San Pedro de Macors

809-246-0033

SAN JUAN BVARO

Av Barcel Km 9 Bvaro, Sup. Pola

809-466-3001

TEXACO BVARO
Carretera Arena Gorda, Seccin Baigu, Bvaro

809-552-0310

SAN JUAN DE LA MAGUANA

Calle Anacaona #49, San Juan de la Maguana

809-557-2370

UCE SAN PEDRO

Av. Francisco Caamao De,
San Pedro de Macors

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

ZONA INDUSTRIAL DE HAINA REFIDOMSA

Refinera Nacional Dominicana

809-544-8975

SAN PEDRO DE MACORS

Calle 27 de Febrero #7, San Pedro de Macors

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