SANTO DOMINGO – As part of its 60th anniversary celebrations, Banco Popular Dominicano reported on the excellent results achieved at the end of the 2023 fiscal year, significantly increasing its contribution to the growth of the country's productive sectors and deepening its commitment to sustainable development and the economic, social, and environmental well-being of the Dominican Republic.
Christopher Paniagua, CEO of Banco Popular, presented these preliminary results to a group of executives and opinion leaders from the main media outlets, explaining that during the past year the bank consolidated its position as the leading privately owned bank in the country.
“We closed 2023 with healthy growth in business volumes, achieving excellent financial indicators that are part of six decades of institutional life in which we have strengthened our mission to be an agent that stimulates and accelerates the best initiatives for the progress of people and companies, thus contributing to the economic, social and institutional changes that the Dominican Republic needs,” said the CEO of Banco Popular.
Quantitative results
In this regard, Paniagua reported that Banco Popular concluded 2023 with total assets worth RD$755,266 million, showing a growth of 19.1% compared to 2022.
The CEO of Banco Popular stated that this excellent performance was made possible “thanks to the trust of our customers and shareholders, as well as the climate of macroeconomic and social stability in the country.” It is also a result of increased operational efficiency and the bank's growing leadership in the digital and technological transformation of financial services, supported by its robust corporate governance, values-based culture, and the training of its teams of employees.
Paniagua emphasized that these results also allowed the bank to maintain asset quality and end the year with a non-performing loan ratio of 0.86% of the gross loan portfolio and a loan loss provision coverage ratio of 316%. The solvency ratio was 14.98%, above the regulatory requirement.
Increase in loans to productive sectors
The executive highlighted that the net loan portfolio ended at RD$481,722 million compared to the previous year, representing a growth of 19.6%. 56.7% of that increase in credit facilities was allocated to finance productive activities in the economy.
On the other hand, it reported that the banking entity concluded 2023 with a balance of RD$556,506 million in total deposits, for a growth of 14.2%.
Regarding net profits, the chief executive of the financial institution explained that Popular obtained RD$22,894 million, after deducting the amount of RD$7,384 million that corresponds to the payment of Income Tax, according to preliminary unaudited figures.
In addition, the bank continued to strengthen its technical equity, which increased by 14.5%, to RD$92,951 million.
“Last year, Feller Rate awarded us a AAA credit rating, making us the first Dominican-owned bank to achieve this important financial milestone. The AAA rating is the highest possible rating a bank can receive worldwide, and achieving it is a landmark for Banco Popular and the Dominican Republic,” Mr. Paniagua stated.
Relevant actions
During the presentation, he emphasized that Banco Popular based its growth strategy on four main pillars: continuing to strengthen its technological capabilities to serve customers in an increasingly personalized and secure manner; increasing banking penetration among the population, especially through digital channels and in high-potential segments such as remittance recipients, micro-enterprises, and young people; continuing to support entrepreneurship and businesses through initiatives such as Challenge Popular, Impúlsate Popular, Emprende Mujer, Xpertos, ProExporta Popular, and Banca 360, among others; and finally, deepening the expansion of its sustainable vision through responsible banking practices.
Leadership in sustainability
In this respect, the CEO of Banco Popular emphasized that, since its inception, the bank has positioned itself as a company of permanent social value, with a huge commitment to the country's sustainable development, which is manifested through multiple sustainability and sustainable business initiatives and programs, which are aligned with its adherence to the United Nations Principles for Responsible Banking, an international alliance to which it has belonged for more than four years.
Therefore, he said that the initiatives with social impact comprised an investment at the close of 2023 that exceeded RD$1.2 billion, distributed in financial education programs, support for the quality of education, the Popular Excellence scholarship program, the most comprehensive in the financial system, or the renovation of urban parks, with more than 75,000 people benefiting.
In addition, the bank supported the most vulnerable communities in the face of the natural disasters and other disasters that affected the country last year. It also sponsored important educational conferences and initiatives related to the creative economy to strengthen the Dominican Republic's cultural and creative industries, such as the fund supporting the country's film industry, among others.
Sustainable business
In terms of sustainable business, the green finance portfolio “Hazte Eco” stood out, a pioneer in the market, which registered a 17% increase in its portfolio last year, exceeding RD$2,267 million.
He highlighted the financial organization's leadership in financing renewable energy in the country, with a total participation reaching 1,031 MW of installed capacity.
He also indicated that it is the first banking institution to have the approval to issue a green bond that continues to support the development of renewable energy and sustainable mobility projects.
