Mortgage loans grew by 17.6%, commercial credit by 44.5%, and consumer credit by 25.0%, positively impacting various areas of the Dominican economy.
SANTO DOMINGO, RD - Mortgage loans from the Popular Association of Savings and Loans (APAP) represented 55.9% of its total loan portfolio last year, according to the bank.
The results were presented this Thursday at the APAP Annual Assembly of Associates, which, the Association maintains, "reaffirms its original vocation to promote housing"; it also explains that at the close of 2021 it achieved a growth of 21.5% in its assets, for a total of RD$118,781 million, in a context of rapid economic recovery after overcoming the effects of the pandemic.
As part of the assets, the financial organization assures, the gross loan portfolio grew by 17.4%, closing at RD$61,300 million, with an improved delinquency level of 1.4% and a coverage of overdue portfolio of more than 31 days of 286.8%.
He adds that it marked another milestone by closing the January-December 2021 fiscal year with a solvency ratio of 53.8%, more than 5 times the minimum of 10% established by the Monetary and Financial Law.
“The strength of these results has been confirmed by the risk rating agencies Fitch Ratings and Feller Rate, which have assigned APAP an AA- rating with a stable outlook,” highlighted Gustavo Ariza, CEO of the financial institution.
In a press release, APAP maintains that it experienced strong growth in commercial credit of 44.5%, as well as 25.0% in consumer loans and 17.6% in mortgage loans, positively impacting different areas of the Dominican economy.
“Mortgage loans represented 55.9% of the portfolio, thus reaffirming APAP's original vocation to promote housing, while consumer loans amounted to 27.7% and commercial loans were 16.4%.”.
Ariza indicated that APAP loans to SMEs, which make up the largest proportion of the country's business fabric, grew by 15.3% and represented important support for their formalization and financial inclusion process.
“Two confidence factors, deposits and subordinated debt issuance, totaled RD$92,506 million, for a growth of 17.1% driven by a robust increase of 36.3% in financial certificates,” Ariza emphasized.
He also indicated that the issuance of RD$5 billion in subordinated debt registered a demand of 1.5 times the offer placed in the market.
“The increase in efficiency indicators, the strategies to improve profitability and the maximization of the business network contributed a net result of RD$2,919 million, for an increase of 81.5%, overcoming the challenges in the years of the pandemic,” said the CEO of APAP.
The Financial Report, along with the Sustainability and Corporate Governance Reports, can be found in their 2020-2021 annual management report, available on their website.
