Much of the bank’s growth has been driven by an increase in the net loan portfolio, which reached $2316m in Q3. To support this sort of growth in the credit portfolio, BPD recently issued $125m equivalent of 10-year subordinated debt, bringing the bank’s capital adequacy ratio to 14.3%, against a regulatory requirement of 10%, and reducing its cost of capital. To date, this is the biggest issue from a financial institution in the Dominican Republic.
Maintaining loan quality remains a key objective. Past due loans as a percentage of total loans improved from 3% December 2007 to 2.4% as of September 2008, while loan loss reserve coverage represented more than 151% of past due loans. Solvency ratios stand at 14.17%, one of the highest reported within the Dominican banking sector, and well in excess of the 10% minimum required by prudential regulation.
“This award recognises our commitment to prudent administration and strong corporate governance, as well as our successful deployment of high-end technological platforms,” says Manuel Grullón, president and CEO at Banco Popular Dominicano. “It is also a testament to our employees and their efforts in exceeding customer expectations. Our clients are the main focus of our business and every day we strive to better serve and suit their ongoing financial needs.”
