SANTO DOMINGO.- Grupo Popular reported that its total consolidated assets, as the parent company, and the assets of its subsidiaries increased by 19.4% at the end of the fiscal year 2023, that is, RD$143,785 million more than what was obtained in 2022.
In a press release, the company highlighted that the consolidated net loan portfolio increased by 18.5%, and total consolidated deposits grew by 13.7%. Meanwhile, at the close of 2023, the equity funds backing the operations of Grupo Popular and its subsidiaries reached RD$155,105 million.
He indicated that Grupo Popular presented consolidated net profits of RD$26,193 million, after deducting the RD$9,453 million paid for Income Tax.
The shareholders' meeting approved that, from the net profits obtained by the company, RD$23,952 million be distributed in dividends to the shareholders of Grupo Popular, whose shareholder base is made up of 13,380 shareholders.
The bank held its Extraordinary General Meeting – Annual Ordinary Shareholders' Meeting, in which it reported on the continued growth of its subsidiary companies, whose excellent performance in 2023 has contributed to the leadership of this financial organization in the financial services market, deepening its contributions in economic, social and environmental matters.
The Chairman of the Board of Directors, Manuel A. Grullón, congratulated the executive, management, and support staff, because “2023 was an extraordinary year for the business group and all its subsidiaries, with important results that had a positive impact on the productive sectors and the country's economy.”.
Shareholders' meeting of Grupo Popular. (External source).
“It is worth highlighting a remarkable financial growth and historic profitability, aligned with our strategic plans and our vision of sustainable development for the nation,” said the Chairman of the Board of Directors of the parent company.
Performance of subsidiaries
The Chairman of the Board of Directors of Grupo Popular emphasized that Banco Popular Dominicano, Grupo Popular's main subsidiary, closed the past fiscal year with excellent results and continued promoting initiatives to boost digital adoption and customer self-service, ending the year with more than 1.4 million digital members and 94.8 million transactions carried out through its digital and electronic channels. During the past fiscal year, Banco Popular's assets increased by 19.1% compared to 2022.
For its part, the Popular Pension Fund Administrator (AFP Popular) ended the year with a market share of 31.8% in number of affiliates and 33.6% in number of contributors, occupying, in both lines, the first place of the Dominican Pension System, in addition to achieving a market share by assets of the managed funds of 34.6%.
Regarding Servicios Digitales Popular and its brands AZUL and AVANCE, Grullón explained that AZUL maintained a robust growth rate in e-commerce, registering a 14.8% increase in revenue and a 20.6% increase in transaction volume compared to 2022. Meanwhile, AVANCE continued its expansion strategy by introducing new products that add value for its customers and enhance their experience. In 2023, 4,378 upgrades were completed, representing an 18.9% increase compared to the previous year.
Regarding the subsidiaries that operate in the stock market, he highlighted that Inversiones Popular increased its total assets by 33.3%, remaining among the largest in the market, and achieved net profits of RD$745.4 million, with a return on equity of 25%.
Meanwhile, the Popular Investment Fund Administrator (AFI Popular) closed the past fiscal year with an 85% increase in its total assets under management compared to the previous year. Its net profits were 31% higher than at the close of 2022, and the equity of the investment funds under management grew by 118%.
Likewise, Fiduciaria Popular ended 2023 with a growth of 64.9% in total assets and signed 70 new contracts, which means that it currently manages 396 active trusts.
The executive explained, regarding Popular Bank Ltd, a subsidiary with an international banking license in Panama, that it closed last year with total assets worth US$1,475 million and profits of US$37.9 million, exceeding the period's target by US$11.5 million.
Regarding Qik Banco Digital Dominicano – Banco Múltiple, Mr. Grullón reported that it concluded its first year of operations with over 200,000 clients and RD$1.267 billion in deposits. Furthermore, the Qik credit card had 51,587 activations, and clients made 3.4 million purchases with it.
Regarding the new subsidiary GCS International, the Chairman of the Board of Directors of Grupo Popular, Manuel A. Grullón, stated that it continued its trajectory as a pioneering company in the field of financial technology and a leader in the fintech business segment, whose tPago platform closed 2023 with an increase of 9% in transfers and 11% in transactions.
Extraordinary General Assembly
After verifying the required quorum, the shareholders, in their first session as an Extraordinary General Meeting, approved increasing the authorized share capital by RD$5 billion, bringing it to RD$30 billion. They also approved amending the company bylaws related to this matter and ratified a proposed update to a wide range of articles within these bylaws, including the introduction of clauses to allow the use of digital media in shareholder meetings and Board of Directors meetings.
Ordinary General Assembly
The assembly members, constituted in Ordinary General Assembly, took note of the shares subscribed and paid for against the authorized share capital, were informed of the Annual Management Report of the Board of Directors, the financial statements showing the situation of the assets and liabilities of the company, the profit and loss statement, other accounts and balances, as well as the questions related to these points of the agenda, and also received the Report of the Auditor.
The shareholders approved the Board of Directors' management and determined the allocation of profits for the 2023 fiscal year, as well as the distribution of dividends. They also approved the budget for the current year submitted by the Board of Directors and the matters presented to the shareholders' meeting.
The members of the Board of Directors comprising Group II, Marino D. Espinal, Adriano Bordas, Pedro G. Brache Álvarez, Christopher Paniagua, Cynthia T. Vega, and Felipe A. Vicini Lluberes, were ratified for a three-year term. Additionally, the appointment of Práxedes J. Castillo Báez as a new member of the Board of Directors was approved. Noris Perelló Abreu, board member emeritus.
Meanwhile, the Annual General Meeting of Shareholders ratified the designation of Ms. Noris Perelló Abreu as emeritus advisor of the Board of Directors of Grupo Popular, after she reached the age limit established in the company's internal regulations for the exercise of these functions and for her contributions to the Board and the organization throughout her career.
