BanReservas reduces portfolio of public loans to 40. 8% of total
SANTO DOMINGO. The loan portfolio that the Banco de Reservas (BanReservas) has with the public sector represented 40.8% of the total loans during 2013 made by this banking institution which is owned by the state.
Enrique Ramirez Paniagua, the administrator of the Banco de Reservas, said that “this represents a relative increase of the private loan portfolio and a decrease in the public one.”
The credit of Reservas with the private sector reached the amount of RD$116 billion (49.2% of the total), while the amount of what the state owed to the banking entity was RD$79.95 billion.
Ramirez reported that regarding the Banco de Reservas, the “IMF said that the public portfolio was very large.” Nevertheless, the relative decrease of the loans to the public sector is fundamentally the result of a greater increase in the business of this bank with the private sector.
In fact, the statistics released by the Superintendency of Banks, as of 31 December, reveal that credit to the public sector grew by 21.9% between 2012 and 2013. An event that influence the change in its composition was the sale to Citibank of part of the public portfolio for US$253.2 million, and which was made up of several loans to the Ministry of Hacienda. The sale was made “with the proper approval of the Superintendent of Banks,” the administrator made clear. This “reduced in turn the exposure of the public sector portfolio,” he noted.
Also in other areas, 2013 was a great year for the state banking business. Its portfolio increased by 27.5%, reaching RD$195.95 billion, with credits that as of 31 December grew 27% in commercial loans, by 37% in consumer loans and 15% in mortgage loans.
The delinquency portfolio was 1.9% which represented a significant decrease of 66.4% from the 5.6% registered in 2012.
The assets grew by 25% (an increase in absolute value of RD$62,2 billion), which raised the number to RD$307.8 billion. “The Banco de Reservas held on to its first position in assets, representing 36% of the total assets in the market,” he pointed out.
The entity is carrying out a structural reorganization in search of the optimization of its operations, which reduced its efficiency rating to 69.8 in 2013, from the 81 registered in 2012. This index consists of the relation of income of the financial entity with respect to the costs of getting them.
Earnings grew 112.2%
The Reservas accumulated earnings of RD$5.046 billion during 2013, which represents an increase of 112.2% with respect to what was earned the year before, which were only RD$2.4 billion. The entity reported that it is offering a direct support to productive sectors, among them the banana producers and those of Chinese vegetables to whom they loaned RD$92.1 million and RD$200 million respectively. In greenhouses in Rancho Arriba and Ocoa the entity has placed RD$120 million.
Category: DR News |