we always believe in you

Transcripción

The award is called TRUST
ANNUAL REPORT | 2012
The magazine Euromoney has awarded us with the Excellence Award.
Being chosen as the Best Bank of Paraguay is an honor for us and for the country.
With great satisfaction we receive this award, one of the world’s major financial and we
thank our customers, our employees, our shareholders and the unconditional support of
Rabobank, who every day give us the highest award: the confidence.
04 CONTENT
CONTENT
06
07
07
08
09
10
11
12
14
15
16
GENERAL INFORMATION
The Essence of Banco Regional
Mission, Vision, Values
Board 2012/2013
Managing Team
Main indicators of the Consolidated Statement
Our Expansion
Location of Branches
ATM´s
Santa Rita Branch
Motivational Testimonials
22
23
26
28
PRODUCTS AND SERVICES
Products and Services by Segments
Lines with Local and International Credit Agencies
Human Resource Training
32
33
36
44
ECONOMIC FINANCIAL REPORT
Economic Analysis and Prospects
Local Economy
Financial Management | Banco Regional
48
50
52
53
55
56
82
84
85
86
FINANCIAL ECONOMIC REPORT SITUATION BALANCE SHEET
Balance Sheet
Results Statement, Ended on December 31
Comparative Cash Flow Statement
Statement on the Evolution of Net Equity
Notes to the Financial Statements
Report of Independent Auditors
Trustee´s Report
Feller Rate
Contacts
5
GENERAL INFORMATION
THE ESSENCE OF A COUNTRY,
THE ESSENCE OF BANCO REGIONAL
besides being considered among the top 10 safest banks
in the world by over 10 years, according to Global Finance.
In 1989, twelve visionaries and successful entrepreneurs
within the country joined forces to create the first bank with
headquarters in Encarnación: Banco Regional, a financial
institution established by entrepreneurs responsible for
more productive investments in the country. Founded in
1991, Banco Regional was one of the few national banks
that managed to successfully overcome the financial crisis
experienced by the Paraguay mid and late 90’s, thanks to
its Shareholders irrevocable commitment to strengthen its
financial institution with successive capitalizations. Since
then, Banco Regional has emerged as the leading financial
institution in our market specializing in agribusiness. In
2008 was incorporated as a strategic shareholder of the
most prestigious banks in the world, the Dutch Rabobank
with the addition of 40% of new shares increasing capital in
the same year becomes issuing corporation publicly traded
and the concrete larger issue of shares in the local stock
market.
OUR MISSION
In 2009 acquires 100% of ABN Amro Paraguay. In 2011
the international rating agency Feller Rate, given its AA-py
tendency: Stable, rating on the solvency ratio, ratified on
this year, and has recently been awarded the prize of “Best
Bank of Paraguay 2012” distinction made by Euromoney,
the leading journal specializing in global finance.
•
•
•
•
•
“To be committed with the Success of Our
Customers.”
OUR VISION
“Permanent Innovation to be the bank of
the successful people and leader in the
development of the country.”
OUR VALUES
Integrity
Proactive
Identity
Professionalism
Positive Attitude
Today Banco Regional has 38 branches across the country,
employing more than 600 people and specializes in providing
services mainly to agriculture, livestock and agribusiness.
It has a significant presence in the industrial and service
sectors, SMEs in general.
The Rabobank is one of the world’s most prestigious
banks, global leader in agro-food, present in 48 countries.
Is the Leader on Integrated Finances (integrates all financial
services for personal banking market, Retail Banking,
Private Banking, Investment Banking and Insurance) and
is a national leader of the agri-food sector. It is important
to note that Rabobank has the highest credit rating of all
privately owned banks in the world given by the rating
agencies Moody’s, Standard & Poor’s, Fitch and DBRS,
7
BOARD 2012/2013
CORPORATE MANAGEMENT TEAM
MANAGEMENT TEAM
AUDIT MANAGE PRESIDENT
Nicolás Trociuk
GENERAL MANAGER
VICEPRESIDENT
Cornelis J. Beijer
DIRECTOR
Irene Memmel de Matiauda
CORPORATE BANKING MANAGER
AND DEPUTY GENERAL MANAGER Orlando Villamayor
DIRECTOR
Rafael Benatti Pilla
DIRECTOR
Francisco Yanagida
DEPUTY DIRECTOR
Alfredo Ricardo Raatz
DEPUTY DIRECTOR
Erik Heyl
DEPUTY DIRECTOR
Mirian Raatz de Soley
DEPUTY DIRECTOR
Erik Peek
DEPUTY DIRECTOR
Wolfgang Brönstrup
SYNDIC
CHIEF FINANCIAL OFFICER
AND TREASURER
Raúl Vera Bogado
Gustavo Matiauda
CORPORATE MANAGER OF
OPERATIONS, ADMINISTRATION
AND ITVincent Lavry
CORPORATE MANAGER OF
PERSONAL BANKING
Julio Vázquez
CORPORATE RISK MANAGER
Jorge Sienkawiec
FINANCE MANAGER OPERATIONS MANAGER
Juan Carlos Meza
Oscar Godoy
Isabel Galiano
DEPUTY CHIEF ADMINISTRATIVE OFFICER
TO THE CORPORATE MANAGEMENT
OPERATIONS, ADMINISTRATION AND IT Fabio Sitzmann
HUMAN RESOURCES MANAGER
María del Carmen Valenzuela
LEGAL DEPARTMENT MANAGER Marcos Dalla Fontana
COMPLIANCE MANAGERErica Werner
COMPUTER TECHNOLOGY MANAGER
Mirtha González de Acuña
Roland Wolff
DEPUTY SYNDIC Sandra Yshizuka
9
MAIN INDICATORS OF CONSOLIDATED STATEMENT
2012
2011
9.214.818
6.656.769
6.853.675
411.921
79.561
826.609
141.137
8.570.325
6.108.307
6.339.082
403.541
52.841
747.792
140.807
22,19%
1,65%
115,50%
8,97%
55,74%
2,48%
24,56%
1,74%
132,64%
8,73%
57,22%
1,79%
Deposits
Loans
Assets
Equity
Integrated capital
Amount of Banks of the Financial System (units)
15,53%
17,45%
15,25%
11,89%
16,25%
16
15,88%
18,22%
15,76%
13,22%
16,55%
15
Exchange Rate (In Guaranies for US Dollar)
4.224
4.478
At December 31st
In million of Guaranies
(except if it is indicated otherwise)
To the close of the year
Assets
Loans
Deposits
Net Interest Income
Forecast
Equity
Results
Indicators
Return on Equity (ROE)
Return on Assets (ROA)
NPL Forecast
Equity Portfolio Projections as a Percentage of Assets
Eficiency
Defaults
WE ALWAYS BELIEVE IN YOU
Market Share
As conqueror of a great future
opportunities to be great.
11
NATIONWIDE EXPANSION
P. J. CABALLERO
SANTA ROSA DEL AGUARAY
KATUETÉ
CURUGUATY
OUR EXPANSION
SAN ALBERTO
HERNANDARIAS
CNEL. OVIEDO
ASUNCIÓN CENTRO
STA ROSA DEL MONDAY
PRESIDENTE FRANCO
PAB 1
PAB 3
VILLA MORRA
BULNES
SAN CRISTOBAL
C.D.E NANAWA
C.D.E KM4
SAN MARTÍN
MCAL. LÓPEZ SHOPPING
EUSEBIO AYALA
FDO. DE LA MORA
MARIANO R. ALONSO
C.D.E CENTRO
SANTA RITA
NARANJAL
MA. AUXILIADORA
CAPIATÁ
CARAPEGUÁ
PIRAPÓ
BELLA VISTA
VILLARRICA
OBLIGADO
BUENA VISTA
LA PAZ
FRAM
ENCARNACIÓN MATRIZ
AG. SUPERSEIS
CNEL. BOGADO
13
LOCATION OF THE BRANCHES
Headquarters - Encarnación
Carlos Antonio López 1348 entre
Arq. Tomás Romero Pereira y 14 De Mayo
Tel: 071 204 740
Branch Superseis - Encarnación
Avda. Irrazabal c/ Jorge Memmel
Tel: 071 205 550
Branch Buena Vista - Encarnación
Profesora Clementina Irrazábal
esq. Pedro A. del Valle
Tel: 071 204740
Branch Obligado
Avda. Gaspar Rodríguez de Francia
esq. Nanawa
Tel: 0717 20093
Branch Bella Vista
Km. 45, Ruta VI - Bella Vista
Tel: 0767 240 229
Branch Coronel Bogado
Ruta 1, Km. 317 entre Progreso
y Boulevar Misiones
Tel: 0741 252 840
Branch María Auxiliadora
Avda. María Auxiliadora esq.
Independencia Nacional
Tel: 0764 20600
Branch La Paz
Calle 5 entre P y Q - Distrito La Paz
Tel: 0763 20031
Branch Fram
Avda. Mcal. Francisco Solano López esq.
Ucrania
Tel: 0761 265 553
Branch Pirapó
Calle Independencia esq. Avda. Japón
Tel: 0768 245 512
Branch Centro - Asunción
Estrella esq. Chile
Tel: 021 619 4000
Branch Mariscal López - Asunción
Shopping Mariscal López
Tel: 021 608 977
Branch Pab 1 Itaipú - Asunción
Itaipú Asunción - De las Residentas 1075
Tel: 021 248 1796
Branch San Martín - Asunción
Avda. San Martín 763 c/ Lillo
Tel: 021 619 4000
Branch Eusebio Ayala - Asunción
AUTOMATED TELLER MACHINES (ATM´S)
Branch Ciudad Del Este Km. 4
Km. 4 Supercarretera Itaipú
Tel: 061 574 045
Branch Central Ciudad Del Este
Avda. Mariscal López y Avda. San José
Tel: 061 578 200/7
Branch C.D.E. Nanawa
Avda. Eusebio Ayala esq. Mayor Bullo
Tel: 021 226 053
Avda. Nanawa esq. Adrián Jara
Tel: 061 510 201
Branch Bulnes - Asunción
Branch Pab 3 Itaipú C.D.E
Branch Villa Morra - Asunción
Branch Santa Rita
Avda. España 830
Tel: 021 622 870/4
Avda. Mcal. López esq. Cruz del Defensor
Tel: 021 613 622
Branch Fernando de la Mora
Ruta Mariscal Estigarribia 1190 - Km. 8,5
Tel: 021 505 020
Branch Mariano Roque Alonso
Ruta Transchaco Km. 12,5 esq. Soldado R.
Quintana y Doña Máxima Lugo (Loma Pytá)
Tel: 021 296 412
Branch Capiatá
Ruta 1 Mcal. Francisco Solano López
Km. 17
Tel: 021 590 800
Branch Carapeguá
Ruta 1 - Mariscal Francisco Solano López
esq. Capitán Rogelio Santa Cruz
Tel: 0532 212 170
Branch Coronel Oviedo
Avda. Ayolas esq. Tuyuti
Tel: 0521 202 012
Branch Pedro Juan Caballero
Mariscal López esq. Julia Miranda Cueto
de Estigarribia y Mariscal Estigarribia
Tel: 03362 70779
Branch Santa Rosa del Aguaray
Itaipú – Usina
Tel: 061 599 7301
Avda. Carlos Antonio López y Colón
Km. 208 Ruta VI
Tel: 0673 220 638
Branch Presidente Franco
Avda. Bernardino Caballero Esq.
Sgto. Silva, Supermercado Gran Vía.
(Barrio Remansito).
Tel: 061 554 401/5
Branch Hernandarias
Mariscal López esq. Pedro Juan Caballero
Tel: 0631 21033
Branch San Alberto
Avda. Francisco Solano López esq.
Caacupé
Tel: 0677 20273 / 20278
Branch San Cristóbal
Calle Principal Km. 32
Tel: 0673 221731/3
Branch Naranjal
Avda. Naranjal y 6 de Enero
Tel: 06763 20274
Branch Katueté
Avda. Las Residentas esq. Padre Fidel
Maíz
Tel: 0471 234 231
Ruta N°3 General Elizardo Aquino
y Profesor Pedro González
Tel: 0433 240 007/9
Branch Curuguaty
Branch Villarrica
Branch Sta. Rosa Del Monday
Carlos Antonio López esq. Colón
Tel: 0541 44161/ 6
Avda. 14 De Mayo esq. Mayor Alfaro
Tel: 048 210 593
ITAPÚA:
Headquarters: Carlos A. López 1348
Branch María Auxiliadora: Ciudad de María Auxiliadora
Branch Obligado: Avda. Gaspar R. de Francia esq. Nanawa
Branch Super 6: Avda. Irrazabal c/ Jorge Memmel
Branch Cnel. Bogado: Ruta 1 Km. 317 esq. Progreso y Boulevard
Branch Fram: Avda. Carlos A. López esq. Ucrania
Branch Bella Vista: Ruta N° 6 - Km. 45
Branch Buena Vista: Prof. Clementina Irrazábal esq. Pedro A. del Valle
Branch Pirapó: Calle Independencia c/ Japón
Branch La Paz: Calle 5 e/ P y Q - Distrito La Paz
Carmen del Paraná: Ruta 1 Km. 333
Movil: Carlos A. López 1348
Riverside: Playa San José
CENTRAL:
Branch Centro: Estrella esq. Chile
Branch E. Ayala: Avda. Eusebio Ayala esq. Mayor Bullo
Branch Villa Morra: Avda. Mcal. López esq. Cruz del Defensor
Branch Mariscal López: Mariscal López Shopping
Branch San Martín: Avda. San Martín c/Lilio
Branch Bulnes: Avda. España esq. Bulnes
Branch Pab. 1 Itaipú-Asunción: De las Residentas 1075
Branch M. Roque Alonso: Ruta Transchaco Km 12,5
Branch Fernando de la Mora: Ruta Mcal. Estigarribia Km 8,5
Branch Capiata: Ruta 1 Km. 17 (Real)
Shopping Mariano: Ruta Transchaco esq. Manuel Irala F.
Pharmacy Vicente Scavone 1: Gral. Genes y Casianoff (Manorá)
Pharmacy Vicente Scavone 2: Mcal. López y Bernardino Caballero
Pharmacy Vicente Scavone 3: Avda. Artigas Nº 1945
Club Internacional de Tenis: Tte. 2° Benigno Cáceres y S. Buzo
Esso Villa Aurelia: Mcal. López y Teniente Casco
Esso Lambaré: Avda. Cacique Lambaré 3216 esq. Domingo M. de Irala
Pharmacy Punto Farma: Julio Correa y Portillo
Oficinas Telecel Tigo: Zavalas Cué y Artillería
Petrobras Km9: Ruta Mcal. Estigarribia Km. 9 Petrobras,
Petrobras San Lorenzo: Cruce Rutas I y II San Lorenzo
Petrobras Lambaré: Cacique Lambaré y Luis M. Argaña
ALTO PARANÁ:
Branch Ciudad del Este Km. 4: Supercarretera c/Ruta Internacional VII
Branch Ciudad del Este Central: Supercarretera Itaipú Avda. San José
Branch Ciudad del Este Nanawa: Adrián Jara y Nanawa
Branch San Alberto: Avda. Francisco Solano López esq. Caacupé
Branch Santa Rita: Avda. Carlos A. López y C. Colón Ruta VI km. 209
Branch Hernandarias: Mcal. López y Pedro Juan Caballero
Branch Naranjal: Avda. Naranjal esq. 6 de Enero
Branch Santa Rosa del Monday: Avda. Los Inmigrantes y
Avda. Santa Rosa de Lima
Branch Pte. Franco: Avda. Bernardino Caballero esq. Sgto. Silva
Branch San Cristóbal: Calle Principal Km. 32
Branch Itaipú - Usina: Pab. 3 Itaipú-Hernandarias
Itaipú Usina 2: Cantero de Obras de Itaipú
Supercarretera Área 1: Guardia Ofic. Itaipú
Petrobras Km. 4 Ciudad del Este: Avda. Mcal López km4 Supercarretera
Petrobras Km. 7: Ciudad del Este
Agro Silo Santa Catalina: Cedrales
Cargill: Km. 28,5 Ruta Internacional - Minga Guazú
Shopping Mina India: Ciudad del Este
Zona Franca Ciudad del Este: Ruta 7 Km 12
AMAMBAY:
Branch Pedro Juan Caballero: Mcal. López e/ Julia Miranda Cueto
SAN PEDRO:
Branch Santa Rosa del Aguaray: Ruta III Elizardo Aquino y Pedro
González
CAAGUAZÚ:
Branch Coronel Oviedo: Tuyutí y Ayolas
Petrobras Ruta 7: Cruce Oviedo frente a la Terminal
CANINDEYÚ:
Branch Katuete: De las Residentas esq. Padre Fidel Maiz N° 1620
Branch Curuguaty: Avda. 14 de Mayo esq. Mayor Alfaro
GUAIRÁ:
Branch Villarrica: Carlos Antonio López esq. Colón
PARAGUARÍ:
Branch Carapeguá: Ruta 1 Mcal. Francisco S. López
esq. Cptán. Rogelio Santa Cruz
Avda. Santa Rosa de Lima esq.
Avda. de los Inmigrantes
Tel: 0678 20205
15
SANTA RITA BRANCH
Banco Regional renews its offices in the city of Santa Rita
Banco Regional grows and modernized in order to be consistent with the current times, and innovating in structures, services,
benefits and solutions to their customers.
That’s why we have proceeded to remodel our branch of Santa Rita, giving it a new look, better facilities, and larger spaces for
the convenience of our customers and friends.
This translates into faster care, comfortable and enjoyable, in which both client and staff feel comfortable and advised in a
personalized and direct way.
This is one of our goals: progress and make our customers part of that progress, that does not stop and it helps us to continue
to innovate and provide services on a current and high technology.
17
MOTIVATIONAL TESTIMONIALS
Miguel Bolf, Agronomist:
“The credit is another input
and a determining factor when
designing a farming business
with a vision that lasts over time
and, above all, profitable”.
Pioneers in rice crops.
Miguel Bol fis the grandson of Jorge Bolf and Gabriel Zabrodiec,
(grandfathers for his father side and his mather side) pioneers in
the cultivation of rice in San Cosme and Damian. His family is
in this business for more than 80 years after his grandparents
emigrated from Czechoslovakia in the early ‘20s, the first pass
through Argentina and Uruguay, and finally be filed in Paraguay
in 1930.
Miguel is an agronomist, is 44 years old, is married to Maria del
Carmen Sanchez Bareiro and under their control is the company
whose name is Agrícola Ganadera Bolf. His family is Czech-Polish
descent from his father and Ukrainian from the mother.
The first thing Michael told us an anecdote before this interview
and after showing us his relics and antiques, was that the property
on which the company is currently located, is considered one of
the first rooms of the Jesuits of Paraguay.
About the company he runs, he said the family now has some
5,500 hectares of rice and 2,500 head of cattle, but it’s strength
is the cultivation of cereal.
Vision of the Future
Regarding his vision and when the relationship starts with Banco
Regional, Miguel said that through this business relationship the
company took a momentous turn in his vision and thinking.
“After the death of my father, in 2002, began a new phase in the
company where the bet was to grow or disappear. Thus by 2004
we initiated the first contacts with the Regional Bank to fund our
project, which eventually happened. thanks to the support we had
from the beginning, we went from having 500 hectares of crops
to about 5,500 overall, the final goal being 10,000 hectares,“ he
said.
Without considering the heavy investment in infrastructure,
which translates to about 45 kilometers with three phase power
lines within the facility, 1,000 km of internal roads, 650 acres of
reservoirs such as new barns, a modern airstrip, recycling system
waste, purchase of machinery, etc..
Finally he leaves with this thought, today for the producer and
the entrepreneur the “credit is another input and a determining
factor when designing a farming business with a vision that lasts
over time and, above all, profitable”.
Sildo Dressler, client in the Brunch
of Santa Rosa. Technician on
agricultural mechanization:
“This has been possible thanks to the
support of the Regional Bank in the
process we started back in 1997”.
“The credit for the producer is a working tool”
Sildo Dressler is Paraguayan and technician on agricultural
mechanization, has currently 43 years old and is a leading producer
of Santa Rosa district. In his company called Agrotacuapy he
works with his brother Egon mainly cultivating soybean, corn,
sunflower and canola, as well as venture into livestock. From a
total of 1,600 acres owned by the company, 60% is machined.
They both believe that credit is as a working tool for the producer
which allowed them to invest in the medium and long term.
In Sildo’s vision, one of the three brothers on his family, there are
no roofs for agriculture, since it is a constant challenge on every
harvest and in which one tries to outstand yourself.
According to his story, as his father studied at an Yparacay
Agricultural School and was very involved in agriculture, that
motivated him to choose his current profession, thereby
assuming the responsibility to carry on the family business, with
the support of his brother Egon.
“My parents were started in this business in the 40s in Lapachal,
then they bought their first plots in Pirapó area to acquire these
lands back in the 76-77, some 350 hectares initially, which was
increased over the years us as we were also involving in the
business,” he said.
He emphasized that the company has been significantly
improving its production system in the last years, with yields
well above the 3,000 kilos on average, due to the application of
new technologies, investment in infrastructure and the purchase
of new machinery. They are even dabbling in farming, with 350
heads, over an area of approximately 500 hectares.
“This has been possible thanks to the support of the Regional
Bank in the process we started back in 1997, I mean, we must
acknowledge that much of this success we are having in the
company is due to the confidence they have had in our work,”
he said.
Even though he told us he comes from a long traditional family
of producers, his direct involvement in this activity is not until
the late 80’s, after graduating as a technician in agricultural
mechanization.
“Our family has strong Rice roots, born and raised with rice, we
are considered pioneers in the business,” he said.
About the secret of long term family, said that one of the principles
that always takes into account to define his philosophy of life
is that “if you work at what you love you never work, so far as
possible one should work in what he likes and that’s just what our
family did,” he added.
About the reasons which inclined to develop this activity, he said
besides hereditary influence exerted by the family of course,
always liked working with nature.
“We are a country mainly agricultural - livestock, and this sector
practically drives our economy, a rich country from the point of
view of the potential for these two activities, then what better
way to make a living doing what one likes and also maintain the
tradition of the family “, he claimed.
19
Héctor Antonio Castro,
client in the Brunch of
María Auxiliadora:
The family’s main activity
is soybean and corn crop
on an area of approximately
2,500 hectares / year.
Keep the brand is our priority.
For Hector Antonio Castro, customer of the branch of Maria
Auxiliadora, the secret to success lies in positioning and
maintaining a trademark in everything you do and produce. He
considers himself a cradle fighter and his mission is to transfer all
his knowledge and experience to his descendants.
Don Hector told us that the family’s main activity is soybean and
corn crop on an area of approximately 2,500 hectares / year.
They also engaged in cattle breeding, but on a smaller scale.
A native of Santa Rosa, Misiones, he told us a little of what his
life has been, emphasizing above all that he comes from a family
of farmers and he considers himself one more component of the
family company formed jointly with his wife Lidubina Hermosa
and their six children.
“I come from three generations of farmers and the mission I have
in life is to transfer all the knowledge I have acquired over the
years who will succeed me in this business,” he said while taking
a sip of his tereré, that he very kindly shared with the team that
visited his workplace.
Genaro Brunaga,
Livestock:
Branch Customer Area for
10 years.
He told us that about 4 years ago, the family was plotted as
a goal to work on a business manner and knowing that this
process entailed significant investment, decided to turn to an old
friend, Banco Regional.
“Thanks to the support provided to us by the Banco Regional, we
have been able to direct this new project, allowing us to invest
in infrastructure and new technology for our product trademark,
that is, to be recognized for its quality, that is our mission and
what I instilled in my children,” he said.
Crib Fighter
Don Hector considers himself a crib fighter. “I remember from
childhood, my grandmother told us that in life there is no success
without sacrifice and work, I grew up with this concept and
therefore consider myself a crib fighter” he added.
He also argued that working in agriculture is a constant struggle,
because every year you’re going to face different kinds of
problems, starting with the weather. “It is a constant exercise
that eventually helps us to have courage in difficult times and
prudence in the good times,” he said.
Finally, we talked about his future projects, which is the production
of large-scale cattle in the Chaco. For this purpose the family
already acquired about 3,800 acres in that region. “We also want
to exploit the potential we are dabbling in Chaco and livestock,
yes, even in nascent form since all process takes time,” he said.
“The current market situation is difficult for us because of the
oversupply, however we believe this will normalize soon,” he
added.
With regard to the production system, said they are working on
the production of cows exclusively in the area of General Delgado
and wintering in the St. Cosme and Damian. Has also sorghum,
which uses exclusively for feeding livestock.
Tradition visionary livestock.
“In this business there are no secrets, just be patient and devote
himself if we are to succeed,” he said.
The city of San Cosme and Damian today not only known for
its sand dunes, is also an important center livestock, which
highlights Esteluz Ganadera. It is owned by Genaro Brunaga,
one of the pioneers in the field, who besides being known as an
important benchmark in the sector, is also a successful trader.
He said one of the advantages is that the business has the ability
to support themselves since he also owns a supermarket that
Works in the city “Sometimes we do not supply, this indicates
that our product is good and people trust us,” he said.
Branch Customer Area for 10 years, Don Genaro devoted 30
years to the production of livestock. He tells that it is the most
important activity in that part of the country, although some
producers have also engaged in rice and soybeans.
Besides owning a good tract of land in San Cosme and Damian,
also owns property in General Delgado and Coronel Bogado. In
total, about 1,700 acres are used for breeding and fattening of
about 2,000 heads.
As for future projects, said the goal we have is the processing of
raw materials. “I have a very ambitious project that is processing
my own raw material to leave to seek new markets,” he said.
He thanked the support that always provided by Banco Regional
in his ventures. “I am a customer of the bank for a long time, even
long before enabling its branch here and I have no complaints
about the service they gave me,” he said.
Regarding the situation in the sector, told us that there is now a
depreciation in prices, mainly of animals for slaughter.
21
21
PRODUCT BY SEGMENTS
PEOPLE
FINANCING:
LOANS:
Personals
Car (Regional Automobile)
Consumer
Bonus
Vacations
Commercial
Professional
Mortgage (Regional Home)
Higher Education (Regional Master)
OVERDRAFT
DEFERRED PAYMENT CHECKS DISCOUNTS
DOCUMENTS DISCOUNT
CARDS:
CREDIT NATIONAL AND INTERNATIONAL:
PRODUCTS AND SERVICES
Classic
Golden
Affinities
University
Platinum
Productive (Farming Card)
Money Card (For remittances)
BENEFITS:
Great Points and Great Details Awarding System
Special discounts in the participating stores
Purchases in installments
Cash Advance
Automatic debit of public and private services
Travelers Assistance Service
DEBIT:
National
International
ACCOUNTS IN LOCAL AND FOREIGN
CURRENCY:
Savings Account
Current Accuont
Combined Account
FIXED TERM DEPOSITS IN LOCAL AND
FOREIGN CURRENCY:
Savings certificates of deposit (CDA)
REGIONAL PAYROLL
Salary payment service
ALTERNATIVE CHANNELS AND
SERVICES:
Regional Web for companies
ATM
24 hours service in branches
Self-service terminals (TAS)
Phone banking
Contact center for people
Web terminal
Mobile banking (Regional Mobile):
Alert SMS messages
Shopping via cell phone (BPM)
Direct access from cell phone lines (*REG) and land lines
Exchange operations
Issuance and receiving of transfers
Payment for customs services
Payment for services via web
Payment of Court fees
Sending checkbooks to your home
Payment of public and private services
Automatic multi-currency transfer service
BANCO REGIONAL INSURANCE BROKERS:
COVERAGE FOR:
Vehicles
Home
Personal accidents
Fire
Theft / Assault
Civil liabilities
Multi-risk
Life
23
CLIENTS CORPORATIVE
AND SME´S
FUNDING:
General financing
Overdraft line
Commercial loans
Operating capital loans
Investments in:
Check discounts
Factoring
Discounts of commercial documents
Discount of documents without resourse
Discount of documents with resourse
Assignment of receivables
Portfolio purchase
FARMING SECTOR:
Agricultural production costing
Grain stock financing
Agricultural equipment financing
Mechanization of land
Construction of silos and infrastructure investments
Purchase of productive lands
Imports of agricultural inputs
Grain export advances
Reforestation
Financing of grain stock against warrant
LIVESTOCK SECTOR:
Operating capital
Fattening
Breeding, rearing and fattening
Buy and hold of wombs
Infrastructure
Investment in pastures
Land Purchase
Reproducers Purchase
CARDS:
Business credit cards
Farming credit cards
FOREIGN TRADE
IMPORTS:
Collection of documents
Letters of credit
Letters endorsed
Stand by letters of credit
Issuance of checks abroad
Bonds issued by local customer order and by order
of foreign banks
Import financing
EXPORTS:
Collection of checks from abroad
Documentary collection
Letter of credit
Letter of credit confirmation
Securities receivable
Export pre-financing
Purchase of non-resourse export documents
TREASURY AND INVESTMENTS:
FOREIGN EXCHANGE MARKET:
Issuance of payment orders
Receiving money orders
Foreign Exchange in several currencies
Buy/Sale of Currencies in Cash
Buy/Sale of Currencies in Check
Buy/Sale of Wire transfers
Arbitration
Buying and selling currencies, cash - check - transfer
Trade currency
Forward insurance
ACCOUNTS IN LOCAL AND FOREIGN
CURRENCY:
Savings account
Checking account
Combined account
DEPOSITS IN LOCAL AND FOREIGN
CURRENCIES:
HANDLING OF FUNDS FOR COMPANIES:
Salary payment
Payment to suppliers
Fund withdrawals
Cash remittances
Custody and administration of securities
Custody and administration of checks
Freight electronic billing
Debits on account for bill collection (Direct Debit)
Payment to businesses
Safes
Cards for per diems accreditation (Movil Card Pre-paid)
Card for food accreditation (Gourmet Card Pre-paid
ALTERNATIVE CHANNELS AND SERVICES:
Phone banking
Support center for companies
Web terminal
Payment for customs services
Payment for Worker-Employer Contribution
Payment of Court fees
Sending statements via email
Reference letters
Credit certification
Risk assessment
BANCO REGIONAL INSURANCE
BROKERS:
COVERAGE FOR:
Vehicle fleet
Fire
Theft / Assaults
Collective Life
Civil liability
Bonds
Glass
Electronic equipments
Multi-risk
Agricultural machinery
Farming insurance
Regional web for companies
ATM
24 hours service in branches
Self-service terminals (TAS)
BENEFITS:
Obtaining better prices as customers of the Bank.
Possibility of transfers from different currency accounts
via Regional web.
MONEY MARKET
INVESTMENTS:
Treasury bonds
Instruments of monetary regulation (IRM)
Report operations (REPO)
Title deeds
Purchase of tax credit
FIXED INCOME DESK:
Local deeds of paraguayan debt
25
25
LINES WITH LOCAL AND
INTERNATIONAL
CREDIT AGENCIES
The project was the first IFC investment in local currency held in
Paraguay, and Banco Regional, the first bank benefited from this
innovative type of external financing.
2012 was a year of significant achievement in our growing
relationship with International Organizations.
OTHER EVENTS IN 2012
MARCH: the Bank signed a loan agreement with the IIC
“InterAmerican Investments Corporation” amounting to
USD 8.000.000 on a five-year term.
On March 7, 2012 we have signed a contract for a loan, for the
financing of capital investments for Small and Medium Enterprises.
The purpose of this loan was to continue supporting the country’s
productive sectors with long-term loans.
JUNE: the Bank signed a loan agreement with the Deutsche
Investitions-und Entwicklungsgesellschaft mbH “DEG”,
for an amount of USD 15.000.000 and ten-year terms.
On June 1, 2012 Banco Regional agrees to a loan from the Deutsche
Investitions-und Entwicklungsgesellschaft mbH (DEG), for a total
of USD 15 million with a term of 10 years, the proceeds of this
loan were used to small and Medium Enterprises (SMEs) located
in the country. The investments must be aimed at the creation,
modernization, expansion and diversification of these companies,
and industrial production (agriculture, transport, construction and
services).
This investment is part of the objective of DEG and Banco Regional
to support private companies in developing countries and to
contribute to sustainable growth and better living conditions.
JULY: Signing a Loan Agreement with IFC for the equivalent
in Guaranies of USD 15 million. - To 5-year term for the
financing of SMEs and housing projects.
On July 3, 2012 to promote the development of Small and Medium
Enterprises (SMEs) and the financing of affordable housing, Banco
Regional access a loan from International Finance Corporation (IFC
for its acronym in English), for the the amount of USD 15,000,000
to 5 years.
The local currency financing was processed through the SWAP
agreement signed between IFC and the Central Bank of Paraguay,
allowing the Banco Regional to consolidate its focus on productive
sectors relevant.
LOCAL ENTITIES
STARTING
SOURCES
• April: Banco Regional organizes a Workshop entitled: “Use of
the Renminbi and Opportunities” developed by representatives of
Commerzbank focused on the main importer customers.
• November: Contract signed with the “BID” International
Development Bank as Confirming Bank under the “Trade Finance
Facilitation Program” which encourages financing foreign trade
operations accessing the network of banks worldwide that are part
of this program.
YEAR
Financial Agency for
Development (AFD)
2006
TERM IN
YEARS
CREDIT LINE
AMOUNT IN GS.
Up to 20
years
TOTAL
310.000.000
PURPOSE
Purchase of Agricultural Machinery: Investment Projects, such
as expansion and improvement of the infrastructure, machinery
purchases among others. Livestock Investments. SME’s
Investments. Home Loans. Higher Education Financing. Irrigation
systems funding.
310.000.000
INTERNATIONAL ENTITIES
LONG TERM LOANS
STARTING
YEAR
TERM IN
YEARS
LOAN AMOUNT/
CREDIT LINE IN
USD
CITIBANK - OPIC (Overseas Private Investment
Corporation)
2008
6 y 10
45.000.000
Loans for the SME Sector
IFC “International Financial Corporation”
2011
3y5
30.000.000
PROPARCO - FMO
2011
5 y 10
30.000.000
DEG “Deutsche Investitions-und
Entwicklungsgesellschaft mbH”
2012
10
15.000.000
CII / BID Direct Line
2012
5
8.000.000
IFC “International Financial Corporation”–
SWAP
2012
5
15.000.000
STARTING
YEAR
TERM
AMOUNT
“CAF” Promotion Andina Corporation
2000
Up to 3 years
5.000.000
United States Agency for International
Deveploment(USAID) Credit Guarantee
Agreement with Banco Regional (Paraguay)
2008
2 year minimum
1.750.000
“IFC” International Finance Corporation
Revolving Credit Line
2008
Up to 270 days
20.000.000
Foreign Trade
BID Revolving Credit Line
2009
Up to 360 days
15.000.000
Foreign Trade
“CCC” Commodity Credit Corporation
2010
Up to 360 days
16.000.000
Foreign Trade
LatinAmerican Bank of Foreign Trade ( Bladex)
2011
Up to 360 days
15.000.000
Foreign Trade
Cargill Financial Services International
2013
Up to 360 days
3.000.000
Foreign Trade
REVOLVING LINES
PURPOSE
PURPOSE
27
TRAINING
Banco Regional continued to invest in the ongoing training
of all officers to enhance every area of business, because
it considers it an essential tool to ensure and enhance the
quality of its services.
During 2012, responsible for the different business units, as
well as officials from different areas of the institution, have
participated in several training courses both locally and
internationally.
Among the programs, internships and courses developed,
we can mention:
APRIL: ITOPS SEnior Managers Meeting -
Holland
JANUARY: Holland Internship
HUMAN RESOURCE | TRAINING
APRIL: Rabobank Sao Paulo’s Internship -
Sao Paulo
FEBRUARY: FIBA XII Annual Conference
for the Prevention of Money Laundering MIAMI
MARCH: Portfolio Analysis Workshop -
Colombia
MARCH: Elite Program - Holland
29
APRIL: Global Security Seminar - Holland
APRIL: Metal Detector and Revolving Doors
Mineoro - Brazil
MAY: Citi Conference - Miami
JUNE: CLACE - Miami
SEPTEMBER: CLAB - Latin American
Congress of Banking Automation - Panama
SEPTEMBER: International Congress
AMBA Credit Cards - Buenos Aires
NOVEMBER: XLVI FELABAN’s Annual
Assembly -Peru
JULY: Payment Systems Conference Latin
America 2012 - Miami
JULY: Rabobank Chile’s Internship - Chile
AUGUST: International Seminar on
Prevention of Money Laundering and
Financing Terrorism - Buenos Aires
SEPTEMBER: XIV Latin American
Congress of Development of Human
Resources and Social Responsibility, CLADE Colombia
31
ECONOMIC ANALYSIS OF
PARAGUAY AND OUTLOOK
GLOBAL AND REGIONAL CONTEXT
2012 was a year marked by uncertainty and expectations
regarding the main economycs, that, despite their efforts
still haven´t accomplished the economic stability they
had years ago.
USA’s GDP grew 2,2%, mainly impulsed for the private
consumption (that explains the 70% of the GDP). This
outcome agreed to the market expectation, however, it
is still not enough to reduce unemployment, that closes
the year in 7,8%, sustainedly.
ECONOMIC FINANCIAL REPORT
In the meantime, the Federal Reserve take a few
meassures in 2012: It announced that the rates closes
to zero will be kept until mid 2015; the extention of
Twist Operation (long term bonds purchase for US$
267.000 millions) to late 2012. Later, in september they
announced the QE3 (It will buy US$ 40.000 millions in
mortgage debt a month and it will continue to buy assets
until the improvement of the employment situation in
the United States, all of this always within a context of
prices stability. With this the Fed is tying up their bonds
purchases to the economic conditions, which does not
happen often).
On the other side, several economies of the European
Union are in recesion on 2012 and the goverments keep
looking for and exit for the crisis. At the middle of the
year, the leaders of the Euro Zone had come to and
arrangement that allows the europeans rescue funds
can be use to purchase bonds, but with the novelty that
the countries that request it will only assume political
commitments, and will not be force to adopt meassures
of poverty or economical reforms set by the UE, the FMI
or the European Central Bank (ECB).
They also agreed that the permanent rescue fund
can recapitalize banks directly, without the assitance
go trough the goverments as loans. This frees the
goverments to go to the rescue of banks, does not
increases the beneficiary country deficit and the debt
does not have a prioritary rank.
Besides in the first week of July, the ECB reduced the
reference rate to the historical minimum of 0,75%, and
announced that it will purchase bonds due from 1 to
3 years in the secondary market. The purpose of this
meassure is to reduce the differential that exists between
the rates the markets demand on the more striked by the
crisis countries (like Italy or Spain) and the demanded to
more solid economies like Germany.
As a result of all these meassures a lower risk of default on
the economies was registered at the last months of the
year. The FMI declared that even though the authorities
of the Euro Zone are acting in the right direction, the
european debt crisis is far from over.
As for the currencies, from january to may of 2012,
despite the crisis in Europe remained and that the
USA economic data seemed to be improving (although
slowly), the dollar became weak again, and quoted low
in front of the main currencies of the world. Then, from
early May and trough all of june and July with Europe
going deeper into crisis, the dollar became strong again.
But, in the last days of July and in August, after the
release of the low GDP growth in the USA during the
second quarter of the year, the dollar became weak
again and kept that way to the close of the year, quoting
to 1,32 US$/£. The announcement of the third program
of quantitative easing (QE3) from the Federal Reserve,
caused an increase of the liquidity of dollars worldwide,
leading to the appreciation of the rest of the currencies.
As for the agricultural commodities, the array of world
grain production has been affected for the strong drought
that affected the crop of corn from North America and
33
Evolution of local currency in comparison to US Dollar
20%
Economic Growth Projection
2012
2013 proy
15%
10%
10
7,8
5%
8,2
0%
8
4,5
6
3,0
3,6
3,5
• Good expected harvest 2012/2013 for South America.
Dec-11-12
Nov-20-12
Oct-30-12
Oct-9-12
Sep-18-12
Aug-28-12
Aug-7-12
Jul-17-12
Jun-26-12
Jun -5-12
May-10-12
Apr-19-12
12
9
7,25
5,84
6
3
SELIC rate
dec-12
sep-12
jun-12
mar-12
dec-11
sep-11
jun-11
dec-10
mar-11
sep-10
jun-10
0
mar-10
BEAR FACTORS
15
dec-09
• Drought problems in the USA.
• Ajusted production levels worldwide.
• Historically low level of final inventories
• Consumption sustained increase.
At a regional level, the Brazil’s GDP is slowing down more
than expected in the third quarter and closed the year
with a 1% growth. Analyzing the sectors, the industry is
the most affected, specially the electronics and vehicles
subsector. On the demand side, the private consumption
increased again (3,4%), but the private investment dropped
5,6% higher than the previous quarters and explained by
the lower production of machineries and the deceleration
of the civil construction.
Evolution of the SELIC rate
18
jun-09
BULL FACTORS
This behavior of the currencies of the neighboring countries
had its impact on the border commerce.
sep-09
The factors that determine the prices can be divided in:
The oil price was variable. The Middle East tension was one
of the main causes on the instability on its price, despite
several of the main producers worked almost at full capacity.
The crisis in Europe also contributes to the unstability of the
oil. For the next months the picture is not enteraly clear,
since the weak recovery of the world economy can push
to lower the prices of the crude due to the lower demand,
however, the uprising tension in the Middle East can cause
the opposite effect.
In the meantime, the brazilian real stayed low in front of
the dollar looking to give more competitiveness to the
economy. In Argentina the economic activity slowed down
and the growth outlooks are reduced. On top of this are
the problems that the government deals with, the lack
of credibility in the macroeconomics official data and the
exchange restrictions are increasing. The Argentinian
mar-09
The soy prices exceeded the US$ 600 after four years and
reach new records of US$ 650.
• Persistent european crisis.
• Deceleration of the Chinese Economy.
Euro
Peso continues its devaluation, and given the exchange
restrictions to the paralell dollar (blue) closes the 2012 a
38% above the official exchange rate.
dec-08
also, although in small proportion, the soy crop. The
shortage of soy will remain to the beginning of the new south
american harvest, since it was expected to have a good
harvest in the United States, but due to the adverse climate
conditions, the expected returns were corrected causing a
10 millions of tons drop in that country production.
Ruble
To this, the SELIC rate, which in 2012 reached his historical
minimun of 7,25%, can stay in that level during the 2013 or
even go lower.
sep-08
Source: Investor Economics based on IMF’s data.
Argentinian $
Source: Investor Economics based on Bloomberg’s data.
jun-08
Brazil
mar-08
Latin
America
Real
dec-07
India
sep-07
China
jun-07
Japan
mar-07
Euro Zone
dec-06
United
States
Gs
sep-06
World
Mar-26-12
Chilean $
-0,4 -0,2
jun-06
0
Mar-5-12
1,2
Feb -13-12
2,0
2,3 2,0
mar-06
3,2
1,0
Jan-23-12
-15%
3,5
2
-2
-10%
Jan-2-12
4
-5%
5,9
Interanual Inflation Rate
Source: Investor Economics based on IBGE’s and BACEN’s data.
35
OUTSIDE SERVICES
Since the brake that had the economy in 2012, imports
also fell. Was imported worth US$ 10.960 millions, 7% less
than 2011. Decreases occur in almost all areas, specially
on electrical appliances and capital goods.
Foreign trade showed slower growth in 2012. In absolute
terms the fall of the imports was higher than the exports, so
the Trade Balance deficit decreased 6% in comparison to
the 2011, totaling US$ 5.632 millions.
Evolution of Foreign Trade
14.000
-500
12.000
-1.500
10.000
-2.500
8.000
-3.500
6.000
-4.500
4.000
Exports
PIB Growth
15%
13%
05%
04%
06%
Average for the last
50 years: 4,6%
05%
04%
04%
02%
0%
Source: Investor Economics based on CBP’s data.
2012
2010
2009
2008
2007
2006
2005
2004
2003
-04%
2011
-01%
-5%
Balance of Trade
10%
5%
Imports
2011
-6.500
2011
0
2010
-5.500
2009
2.000
2008
Meat exports had a sharp fall after the FMD outbreak in
september, 2011. However, at the second quarter of 2012
they recover themselves and finally close the year reaching
the 204 thousands tons for a value of US$ 793 millions,
The main cause of this increase was the gap the Guarani
2007
The exports in 2012 totaled US$ 5.058 millions, 8% less
than 2011. Because of the drought and therefore lower
production, the soy exports and their chain of products
showed a drop of 18% in value and 10% in volume. Within
that chain were the most affected the soy beans shipments,
which represented US$ 700 millions less.
The dollar started 2012 at 4.480 Gs./US$ and traded high
during the entire month of January. In February fell aroung
425 guaranies and then stayed stable to que first half of
may. Since there was upward, reaching a maximun of 4.630
Gs./US$, and stabilizing at 4.500 GS./US$.
2006
FOREIGN TRADE
2005
• The livestock sector had some mayor drops on the
amounts and the prices of export in the first few months
of the year due the closing of the markets after the foot
and mouth disease outbreak, but then it recover itself
and it end up with a 6% growth.
• The construction sector that started the year with
EXCHANGE RATE
2004
But, from the mid 2012 a small recovery of the economy
took place, the results of the third quarter showed an
early sing of growth. Besides some sectors closed the
year with good results:
Meanwhile, non-traditional exports (plastics, medicine, etc.)
showed growth during the whole year, giving a total of US$
1.012 millions, 14,6% superior to the ones in 2011.
2003
• Bad year on Agriculture, that dropped a 28,3%, specially
soy that dropped almost a 50% due the drought.
• Less consumption dynamics and retraction of the
private investment.
• Drop of the exports and imports.
blance in the Trade Balance.
2002
According to preliminary figures from the Paraguayan
Central Bank and as it was expected, in 2012 the GDP
dropped -1,2%. This was mainly a result of:
beating the ones of 2011 of 27 and 6% respectively.
2001
REAL SECTOR
many problems, took a better look in the second quarter
and grew arounf 1,5%
• The service sector performed well in all branches, except
for trade and transport; standing out the government,
communications and finances.
2000
LOCAL ECONOMY
The lower imports were marked by a slowdown in local
economic activity. While most of the items fell, oil and its
derivatives did not follow this trend and show a growth of
15% over the past year. Food imports also increased, while
Beverages and Tobaccos fell within the category of Nondurable consumer goods.
Notably, a significant portion of the trade deficit is offset
by a number of re-exports of products, in which stands
the electronics and computer articles. That is, when also
consider the non-registered exports we have a better
had towards the real. On June the dollar traded lower but
always pushed up, reaching again a maximun of 4.630
Gs./US$ the day before the impeachment to the former
President of the Republic, but returning to values closes to
the month average in the following days. From the second
week of July the dollar had a setback reaching the 4.420
Gs./US$, value that kept around until mid september.
From there on, a bigger demand on dollars started, proper
to the last quarter of the year, which made the dollar up
reaching a maximun of 4.490 for mid november. However,
the increase on the dollar demand for imports was lower
37
2009
2011
2012
4.463
3.167
4.534
5.517
5.058
30,00
Millions of US$
2.950
1.878
2.689
3.545
2.900
25,00
Share %
66%
59%
59%
64%
57%
20,00
Millions of US$
726
645
1.042
885
946
15,00
Share %
16%
20%
23%
16%
19%
10,00
5,00
MONETARY AND FINANCIAL SECTOR
INFLATION
Daily Evolution of Nominal Exchange Rate
4.620
4.350
3.760
dic-12
sep-12
jun-12
mar-12
dic-11
sep-11
jun-11
mar-11
dic-10
sep-10
jun-10
mar-10
dic-09
sep-09
jun-09
mar-09
dic-08
jun-08
mar-08
dic-07
sep-07
jun-07
dic-06
sep-08
Inter-Annual Inflation of Food
The PCB’s prymary goal is to keep prices within the range
set, to accomplish that draws out guaranies from the
market every time it considers necessary to do so, through
the placement of Monetary Regulation Bills (MRB) or
through dollar sales. MRB’s balance at closing was of Gs.
3,6 billions and it’s average rate was 5,6%, while at closing
in 2011 was of Gs. 4,2 billions and 7,4% respectively. In
2012 almost all of the MRB placement were in short term
(14 days).
year due to the deceleration economy had.
Meanwhile, deposits reached the Gs. 46.7 billion (about
U.S. $ 10,785 million), exceeding by 12% the value of a
year earlier in nominal terms and 8% in real terms. 43% of
the deposits is the remainder term in view, showing a small
increase in time deposits, because a year ago the ratio was
40 and 60% respectively. As for the currency composition of
deposits has not changed compared to 2011. 62% of them
is in guaranies and the remaining 38% in foreign currency.
Dec 31 12
Dec 15 12
Nov 29 12
Nov 13 12
Oct 28 12
Oct 12 12
Sep 26 12
Sep 10 12
Aug 25 12
Aug 9 12
Jul 24 12
Jul 8 12
Jun 22 12
Jun 6 12
May 21 12
May 5 12
Apr 19 12
Apr 3 12
Mar 18 12
Mar 2 12
Feb 15 12
Jan 30 12
Jan 14 12
FINANCIAL SYSTEM
Dec 29 11
4.750
4.650
4.550
4.450
4.350
4.250
4.150
4.050
3.950
3.850
3.750
Inter-Annual Inflation
Inflation remained subdued, with a downward trend and
within the target range set by the PCB (5% +/- 2,5%) mostly
all year long.
The year 2011 closed with an inflation rate of 4.0%, below
the 4,9% for the 2011. The main causes were:
Gs./US$
-10,00
mar-07
• The brake in local economy, and also in the world economy,
created uncertainty about the future of production and
employment, which also reduced the transactions made by
the people. In addition, companies acumulated inventories
for most of the first half of the year.
-5,00
sep-06
• Food showed uprises early in the year, but from April this
was reverted and the food went to the low.
,00
jun-06
• The areas that showed greater increases are those related
to services.
mar-06
than expected and came along with a bigger dollar supply,
arising by disbursements made by the government for
different purposes, both factors made the dollar change its
trend to go down and close the year on 4.350 Gs./US$ on
the last 40 days of the year. For its part, the International
Reserves closed up 2011 on US$ 4.968 millions, this
double the balance of external.
dic-05
Meat chain
sep-05
Soybean Chain
Evolution of Inflation
mar-05
Total Exports
2010
%
2008
jun-05
Concept
As of December 2012, the net credit balance of the financial
system (banks and financial institutions) amounted to Gs.
40.7 billion (about 9,412 million dollars), that is 13% higher
than the value it had a year earlier in nominal terms and 9%
in real terms. The loan growth was lower than the previous
39
Credits and Deposits Evolution
Effective Rate Local Currency
BANKING
25
23
10.000
21
%
12.000
8.000
09
08
08
07
07
06
06
05
05
04
19
17
6.000
15
4.000
Credits (millions of US$)
Dec-12
Sep-12
Jun-12
Mar-12
Dec-11
Sep-11
Jun-11
Mar-11
Dec-10
Sep-10
Jun-10
Mar-10
Dec-09
Sep-09
Jun-09
Mar-09
Dec-08
Sep-08
Jun-08
Mar-08
Dec-07
Sep-07
Jun-07
Mar-07
Dec-06
Sep-06
Jun-06
Mar-06
The liquidity ratios of banks remain high and virtually
unchanged compared to 2011, the relationship between
Cash and deposits is about 43% for banks and 23% in
financials. Regarding profitability ratios, they have declined
slightly compared to 2011. At the close of 2012 the
relationship between profits and assets (ROA) was 2.6% for
banks and 2.2% for the financial. While the ratio between
earnings and equity (ROE) for banks and finance was 29
SPREAD
dic-12
sep-12
jun-12
mar-12
dic-11
sep-11
jun-11
mar-11
dic-10
sep-10
jun-10
mar-10
dic-09
sep-09
jun-09
mar-09
dic-08
sep-08
jun-08
mar-08
dic-07
sep-07
jun-07
mar-07
Average Lending Rates
Average Passive Rates
Source: Investor Economy based on CBP’s data
Deposits (millions of US$)
In 2012 there was an increase in default with respect to
2011, especially in banks. The system’s average went from
1.9 to 2.2%. The profits earned in the financial system
reached $345 million dollars, that is 12% higher than 2011.
The operating margin of the financial system is composed
by 71% by the financial margin, 18% by the margin for
services and 11% margin from other operating income and
expenses (especially foreign exchange).
dic-06
0
sep-06
2.000
jun-06
mar-06
13
and 16% respectively.
At the end of 2012, the average lending rates in national
currency from banks was 21.3%, almost equal to that of
2011 which was 20.7%. They found decreases in consumer
loan rates and increases in credit card. Meanwhile, the
average borrowing rates was 7.0% guaranies, somewhat
lower than the 7.8% of 2011. The rate is the greatest drop in
deposits with terms up to 180 days. Thus, the bank spread
in guaranies stood at 14.3% to 13.9% higher than 2011.
As for foreign currency rates, average lending rates in 2012
was 8.0%, down from 9.6% in 2011. The decreases were
primarily in consumer loans. The average dollar deposit
rates declined from 3.9 to 3.6%. Thus, the bank spread in
dollars fell from 5.7 to 4.3%.
FISCAL SECTOR
2013 PROJECTIONS
In 2012 the state grossed Gs. 13.8 billion, 5% more than
in 2011, this despite the slowdown in the economy. The
Undersecretary of State Taxation (UST) achieved higher
revenues, which reached Gs. 7.1 billion, 11.8% more than
in 2011, driven mainly by income tax. For its part, the
proceeds of the National Customs Directorate (NCD) have
reached Gs. 6.8 trillion, that is 1.3% lower than 2011 and is
due mainly to the slowdown in foreign trade.
• The outlook for 2013 is better. According to projections
by Investor Economics, in 2013 GDP would grow 11.6%
(+ / -2%).
Regarding outflows, current expenditures increased
25% compared to 2011 and were implemented by 86%.
Meanwhile, capital expenditures increased 24% and were
executed by 62%, which is still relatively low. The Central
Government ended 2012 with a deficit of 1.8% of GDP.
The PGN approved shows a deficit for 2013, to finance it
is expected the development of a financial plan on how to
cut costs, besides issuing Treasury and disbursement of
foreign loans.
• The main impulse would be on the upturn in agriculture, an
increase of about 45%, and the multiplier effect of it on the
economy, especially in industry, commerce and transport.
• It would also have good growth in the construction
sector, driven by the increased availability of loans and the
dynamism of the economy.
• In 2013 there would be more pressure on prices, both by
greater dynamism to the local economy as by increasing
demand for export products. The CBP would continue with
its monetary policy of inflation targeting, prioritizing price
suppression within the stated range. Considering this, it
may have higher interest rates.
41
2.000
4.682
6.774
2.012
1.743
1.434
1.270
5.051
1.057
3.000
3.881
4.000
3.494
5.000
4.576
6.000
2.742
Billions of Gs.
7.000
4.376
6.071
8.000
6.862
Tax Income Evolution
1.000
0
2008
National Customs
General Dictorate
Collection
Direction of Major
Contributors
2009
2010
2011
2012
• As for the exchange rate in 2013 would continue the
downward pressure as expected: a significant upturn in
exports, bond issues, royalties of binational and increased
foreign investment. Given the increased foreign exchange
earnings expected in the first months of the year, during
that period it would have a dollar below the closing price.
• It is also expected a recovery in imports, driven by the
improved performance of the economy, good agricultural
year, improved expectations and exchange rate downward.
• The 2013 would be favorable for exports, as weather
conditions allow to recover the productive potential of the
agricultural sector and the foreign markets from the meat
would be recovered.
43
LOANS GROWTH*
Exchange Rate
FINANCIAL MANAGEMENT | BANCO REGIONAL
20082009201020112012
4.9304.6004.5584.4784.224
* Balance in Millions of Guaranies
* Includes interest
After the ABN AMRO BANK merger on the year 2009, the bank
experienced a sustained increase of its loan portfolio in the following
years, reaching a 27% and 29% evolution during the 2010 and 2011
years, with growth rates above market average, remaining a leader
of the financial system over the volumen of the portfolio.
During fiscal 2012, the economic situation of agriculture and
livestock, associated with the drought and the outbreak of footand influenced the moderate growth of the loan portfolio of 9%
which positioned the bank 2nd place of the financial system and
participation of 17.45%.
Is worth noting that the portfolio of loans secured has been
significantly strengthened, reaching at year end rates above 43%
of the total portfolio which indicates a strong management on the
quality of our loan portfolio and lower capital utilization own for
financing risks.
LOAN DISTRIBUTION PER
FINANCIAL SECTOR
The farming sector takes the 39,30% of the loans portfolio, followed
by Livestock Sector with a 11,71%, Services Sector with a 10,90%
and the Industrial sector with a 10,59%, which proves the high
commitment and support given to the productive sector of the
country by the Entity.
For its strategic purpose, the bank is the largest in the agricultural
sector, with a share of 28,85% of this sector’s placements. At the
same time, it is the leader of the market if we consider farming,
livestock and industrial sectors together, with a 23,36% of the total
of the financial system placements.
FINANCIAL INVESTMENTS
Value USD
Value EUR
Portfolio Composition in Guaranies - Balances in Gs.
Public and Private Notes
Public and Private Bonds Guaranies
Treasury Bonds Guaranies
Long term deposits in other institutions
AFD Bonds
IRM
Portfolio Composition in US Dollars - Balances in Gs.
Placements Abroad
Long term deposits in other institutions
4.224,00
5.579,06
287.305
2.500
181.000
144.815
15.500
119.128
190.087
16.734
45
The consolidated financial portfolio at December 31st was 957.069
millions of Guaranies.
The total of deposits for 2012 was Gs. 6,8 billions, which represents a
9% growth in comparison with last year.
Banco Regional has a liquidity policy that backs asset growth and also
allows for relevant liquid investments
Banco Regional continues to maintin a relevant position in terms of
market deposits, with a 15,53% share of the total deposits of the
financial system at the end of december, 2012.
ASSET EVOLUTION
The Regional Bank’s equity in the past five years shows a steady growth,
supported by adequate capitalization levels reflecting the confidence
and strong support of shareholders and investors. The paid-up capital
of the company as of December 31 grew to Gs. 538 billion, positioning
it as the most important of the financial system.
Regarding capital management, it is important to note that it has ended
the year with solvency ratios (Tier I and Tier II), well above the previous
year, reaching comfortable levels in relation to the legal minimum
required by the Central Bank.
During 2012 we sought to increase the return of the investments
minimizing the risks, by diversifying the Bank placements in different
types of operations.
RESULTS
The bank’s balance sheet shows a significant percentage of liquid assets,
composed of Public and Private Securities (30,02%), Placements
abroad (19,86%), Paraguayan treasury Bonds (18,91%), Deposits
in Other Institutions (16,88%) and Monetary Regulation Instruments
(12,45%) among others, which gives an excellent liquidity position.
Exchange Rate
Of the total of Banco Regional’s deposits, the 49% share goes to long
term deposits and the 51% share goes to fixed term deposits, which
proves the trust and support of the Entity’s clients.
DEPOSITS
20082009201020112012
4.9304.6004.5584.4784.224
Despite the fall of 1.2% of gross domestic product (GDP), due to factors
such as the crisis in agricultural production caused by drought and the
outbreak of FMD in late 2011, Banco Regional has maintained for 2012,
a prudent growth of about 8% of its total assets, reflecting a relative
risk compared to the negative situation and allowing the recognition as
the “Best Bank in Paraguay” by the leading global financial magazine
“Euromoney” in its traditional annual “The Euromoney Awards for
Excellence 2012”. Regarding the participation in the market assets of
15.25%, positions the Bank as a leading Paraguayan of the financial
system.
NET WORTH GROWTH
Exchange Rate
20082009201020112012
4.9304.6004.5584.4784.224
An evolution of the results in comparison with the previous years was
registered during the 2011 and 2012, where the decreasing tendency
was influenced by lower margins, extraordinary charges for the merger
and increased loans forecasts
The year 2012 closed with a Gs. 141,1 mil millions profit, recorded
significant progress in efficiency indicators, even in a period where the
the economic climate forced to increase the levels of portfolio estimates.
ARREARS
Banco Regional arrears ratio at December 31st of 2012 was 2,48%
and remained in controlled ranges trought measures taken by the
Institution, that led to the strengthening of the loan portfolio and the
recovery of this ratio, which is compensated with a strong increase of
the royal warranties over the total portfolio that reaches the 43,49%.
The distribution of the portfolio by currency reflects the tendency of
depositors to maintain higher balances in Guaranies
Exchange Rate
20082009201020112012
4.9304.6004.5584.4784.224
Banco Regional Arrears
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
At the close of 2012, the distribution of the portfolio by currency
consisted on 54% on local currency and 46% of foreign currency,
reflecting the tendency of the depositors of maintin their investments in
Guaranies, which shows more strength in that currency.
* Balance in Millions of Guaranies
* Does not inclue acrued interests.
Exchange Rate
20082009201020112012
4.9304.6004.5584.4784.224
1,57%
2,58%
1,94%
1,79%
2,48%
47
FINANCIAL ECONOMIC REPORT
STATEMENTS OF ASSETS AND LIABILITIES AS OF
DECEMBER 31, 2012
BALANCE SHEET STATEMENTS OF ASSETS AND LIABILITIES AS OF
DECEMBER 31, 2012 AND 2011
Expresed in guaraníes
Notes A to H are an integral part of these financial statements.
51
53
55
NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED AS
OF DECEMBER 31, 2012
PRESENTED AS A COMPARISON WITH THE PREVIOUS FISCAL YEAR
(Numbers expressed in Guaranies)
A. A.CONSIDERATION BY SHAREHOLDERS MEETING AND PURPOSE OF THE
PREPARATION OF THESE FINANCIAL STATEMENTS
The financial statements as of December 31, 2012 of Banco Regional Sociedad Anónima Emisora de Capital Abierto (hereinafter
“Banco Regional S.A.E.C.A.” or “The Entity”) will be considered by the next Ordinary Shareholders Meeting to be held during year
2013, within the
terms as established by Article 13th of the Corporate Bylaws, in accordance with the prescriptions of the Paraguayan Civil Code.
The financial statements as of December 31, 2011 were approved by the Ordinary Shareholders Meeting held on April 27, 2012.
B. BASIC INFORMATION ON THE ENTITY
b.1 Legal Nature
Banco Regional Sociedad Anónima Emisora de Capital Abierto started its activities under the denomination of Banco Regional S.A.
de Inversión y Fomento, authorized by Decree of the Executive Branch No. 4321 dated January 6, 1990 and by the Banco Central
del Paraguay, by means of Resolution No. 5, Minutes No. 11 dated February 13, 1991
By means of Resolution No. 3, Minutes No. 214 dated December 1, 1998, the Board of Directors of the Banco Central del Paraguay
authorized Banco Regional S.A. de Inversión y Fomento to amend its Corporate Bylaws, as resolved by the Extraordinary General
Meeting dated April 24, 1998, to substitute its original denomination by that of Banco Regional S.A.
By means of Resolution No. 1, Minutes No. 96 dated November 19, 2008, the Board of Directors of the Banco Central del Paraguay
authorized Banco Regional S.A. to amend its Corporate Bylaws, as resolved by the Extraordinary General Shareholders Meeting
dated September 30, 2008, to substitute its previous denomination by that of Banco Regional S.A.E.C.A. The amendment was
registered before the Public Registries on November 21, 2008 and before the National Securities Commission - Comisión Nacional
de Valores (C.N.V.) on December 4, 2008 by means of Resolution CNV No. 1156/08.
On April 22, 2009, the operation was closed to purchase 100% of the shares of Banco ABN AMRO Paraguay S.A. with the purpose
of integrating by merger such entity to Banco Regional S.A.E.C.A., a process that was completed by the end of 2009.
b.2 Basis for the Preparation of the Financial Statements
The financial statements have been prepared in accordance with the norms, regulations and accounting instructions established by
the Banco Central del Paraguay, which differ from the generally accepted accounting principles in Paraguay, mainly in the following
aspects:
a. They do not contemplate the issuance of the cash flow statement, and comparative financial statements.
b. Adjustments to prior year’s results are recorded as results for the year without affecting the equity accounts of the Bank.
c. The accounting registration of the deferred tax is not foreseen.
d. The calculation or disclosure of earnings per share is not required.
e. They establish different criteria for the classification and valuation of the credit portfolio, the accrual and suspension of interests
and earnings on valuation, as mentioned in Note c.6.
f. The entities must constitute previsions on the credit portfolio, contingent risks and assets in general, based on the parameters as
established in Resolution 1, Minutes 60, of the Board of Directors, Banco Central del Paraguay dated September 28, 2007.
g. By means of Resolution SB.SG. No. 00205/2009 dated September 25, 2009, the Superintendent of Banks, Banco Central del
Paraguay authorized the deferral of expenses incurred by reason of the merger by absorption of Banco ABN AMRO Paraguay S.A.,
with a term of amortization of 36 months (see Note c.10).
h. The disclosure of movement of assets is not required.
i. The disclosure of liabilities by number of depositors concentration is not required.
j. The disclosure of average interest rates or the average assets and liabilities that have accrued interests is not required.
The effect of these differences has not been revealed nor-if-quantified by the Bank, as this is not required by the rules of the Central
Bank of Paraguay.
The amounts included in the financial statements have been prepared on the historical cost basis, except for the case of foreign
currency accounts and fixed assets, as explained in paragraphs c.1) and c.9) of the Note C), and do not recognize the overall effects
of inflation on the financial condition of the bank or the results of its operations, considering the comprehensive restatement is not a
generally accepted accounting practice in Paraguay . According to the General Index of Consumer Prices published by the Central
Bank of Paraguay, the cumulative inflation for the years 2012 and 2011, was 4.0% and 4.9% respectively.
The preparation of these financial statements requires the Management Board and the Bank make estimates and assumptions that
affect reported amounts of assets and liabilities, the disclosure of contingencies and the recognition of income and expenses. Assets
and liabilities are recognized in the financial statements when it is probable that future economic benefits will flow to or from the
entity and that different items have a cost or value that can be measured reliably. If in the future such estimates and assumptions,
which are based on management’s best judgment as of the date of these financial statements, were modified with respect to the
present circumstances, the original estimates and assumptions will be modified appropriately in date such changes occur. The
main estimates related to financial statements refer to projected credit risk assets and doubtful debts, depreciation of fixed assets,
amortization of deferred charges and provisions to cover other contingencies.
The Bank has no derivative financial instruments.
On September 3, 2009 the final merger by absorption agreement of Banco ABN AMRO Paraguay S. A., was executed. On September
4, 2009, by means of the holding of Extraordinary Shareholder Meetings of del Banco Regional S.A.E.C.A., the undertaking for the
merger by absorption of such entities was confirmed. By virtue of such process, Banco Regional S.A.E.C.A., as the absorbing
company, is causer to universal title to the rights and obligations of the absorbed company.
57
b.3 Foreign Branches
As of December 31, 2011
The Bank has no branches abroad.
b.4 Participation in other Companies
Participation in the capital of other companies at December 31, 2012 and 2011 is as follows:
As disclosed in note c.12 d) Restatement of capital, the current level of Bank’s Integrated capital is above the legal minimum required
by the Central Bank of Paraguay for the current fiscal year.
b.6 List of Board of Directors Members, and Executive Management
As of December 31, 2012 the list of Board of Directors members and Executive management
is the following:
The above investments are reported in the account assets Investments in securities issued by the private sector - equities. See also
note c.8.
b.5 Capital Structure and Characteristics of the Shares
The composition of the share capital represented at 31 December 2012 and 2011, by type of
action is as follows:
59
C. C.INFORMATION REGARDING PRINCIPAL ASSETS AND LIABILITIES
c.1 Valuation of Foreign Currency and Exchange Position
Assets and liabilities denominated in foreign currencies are valued at the exchange rates prevailing at the year end, provided by the
Bureau of Changes International Operations Department of the Central Bank of Paraguay, and do not differ significantly from the
exchange rates prevailing at the free exchange market:
At December 31, 2012 the foreign currency position did not exceed the stop position set by our organization as Presented to the
Central Bank of Paraguay as of January 27, 2012 set out in Resolution No. 25 Act No. 77 dated December 28 , 2011.
At December 31, 2011 foreign currency position did not exceed the fixed position stop by the Central Bank of Paraguay.
Management of market risk: Market risk is the risk of changes in market prices, such as interest rates, foreign currency exchanges,
etc.. affects the assets of the Bank in accordance with the positions taken in the financial market. The Bank monitors the market risk
by monitoring the limits set by the Asset and Liability Committee and / or the Board.
c.3 Deposits at Central Bank of Paraguay
Deposits at the Central Bank of Paraguay at December 31, 2012 and 2011 are as follows:
The exchange differences originated in fluctuations in the rates of exchange, between the dates of concerting operations and their
settlement or valuation as of year closing, are recognized in the year’s results, with the exceptions as mentioned in Note f.1.
c.2 Position in Foreign Currency
The foreign exchange position as of fiscal year closing is the following:
c.4 Public and Private Securities
Public and Private securities acquired by Banco Regional S.A.E.C.A. correspond to National Treasury Bonds and Letters of
Undertaking, without a pricing in the securities markets, and securities from private companies within the country, quotable in the
Exchange or in the secondary market. All are recorded at cost value plus the accrued income to be received as of fiscal year end,
which do not exceed their estimated realization value.
61
transactions, to which effect several clearly defined aspects as per the entity’s credit policies are considered, such as: the payment
capability demonstrated and the liabilities of the obligor, concentration of credit by economic groups, individual limits for the granting
of credit, evaluation of economic sectors, securities offered, and the requirement of working capital, in accordance with market risks.
The loan portfolio has been valued at their nominal value plus accrued interest at year end, net of reserves, which have been
calculated in accordance with the internal policies of the Bank’s credit rating and with the provisions of the Resolution of the Board
of Central Bank of Paraguay N º 1, Act No. 60 of 28 September 2007 and Act No. 37 Resolution No. 72 dated November 29, 2011,
for which:Banco Central del Paraguay No. 1, Minutes No. 60 dated September 28, 2007, to which effect:
a) Obligors have been classified in the following groups: a) Large Obligors; b) Mid Sized and Small Obligors; c) Personal Obligors,
Consumer or Housing, and d) Micro credits.
b) Obligors have been classified based on the evaluation and qualification of payment capability of an obligor or of a group of
obligors, comprised of related persons, with respect to the total of their obligations, in six risks categories.
c) The interest accrued on the balances of obligors in current portfolio, classified in the lesser risk categories (1 and 2), have been
recognized as income as a whole. Interest accrued and uncollected as of fiscal year close on credits matured and/or current,
classified in a category higher than “2”, which have been recognized as income until they become overdue, have been provisioned
by 100% of their balance.
d) Interest accrual, and the recognition of incomes on valuation are suspended on overdue credits and others, as mentioned in Note
f.1. Credits in installments are considered overdue as from 61 days in arrears in any of the installments, and fixed term credits or
single maturity ones, the day after their maturity.
e) The specifically required previsions have been constituted to cover eventual losses that may derive from the non recovery of the
portfolio, following the methodology included in the above-mentioned Resolution.
(*) As of December 31, 2011 and 2010 the Entity has delivered as security, Letters of Undertaking it holds in its portfolio as of such dates, totaling Gs32.976.060.458
and Gs.66.328.478.982, respectively, which availability is restricted as mentioned in Note c.12 b).
f) As of December 31, 2012 generic previsions are constituted of 0,50% on the total of the credit portfolio net of specific previsions
(As of December 31, 2011 the percentage was, 0,75% on the total credit portfolio).
c.6.1 Current Credits to the Financial Sector
c.5 Assets and Liabilities with Readjustment Clause
With the exception of the loans obtained (liabilities) from the Agencia Financiera de Desarrollo (AFD) and of the loans granted (assets)
with the AFD resources and some loans granted with own resources, that have contractual clauses regarding eventual readjustments
of the anual interest rates, as of December 31, 2012 and 2011 there were no assets or liabilities with readjustment clauses.
This item includes term placements and short term loans granted to local and foreign financial institutions, in foreign and in local
currency, that have been agreed at the rates and prices offered in the market at the time of placement or investment.
c.6.2 Current Credits to the Non Financial Sector
The portfolio of current credits to the Non financial Sector was comprised as follows:
c6 Credit Portfolio
Credit risk is controlled by the Entity’s Board of Directors and Management, mainly through the evaluation and analysis of individual
63
(a) Includes capital and interest and Repo operations
(b) The prevision percentages and risk categories defined for the classification and constitution of previsions of the credit portfolio as
of December 31, 2010 and 2009, are based on the criteria as established to such effect by Resolution No. 1, Minutes No. 60 of the
Board of Directors, BCP, dated September 28, 2007.
(c) Inclusive of generic previsions established by the entity in accordance with the requirements of Resolution 1/2007 of the Banco
Central del Paraguay
(d) Previsions are constituted considering additionally, the contingent balances.
In accordance with valuation norms of assets and credit risks, as established by the Superintendent of Banks, Banco Central del
Paraguay, the credit portfolio of the entity is risk-classified as follows:
c.6.3 Matured Credits
65
c.7 Previsions on Direct and Contingent Risks
Previsions on doubtful loans and other assets are determined at the end of each period based on the study of the portfolio performed
with the object of determining the non recoverable portion of the same, and considering what is prescribed, for each type of credit
risk, in resolution of the board of directors, Banco Central del Paraguay No. 1, Minutes No. 60 dated September 28, 2007 and
Resolution No. 37, Minutes No. 72 dated November 29 of 2011.
Periodically, the entity’s management performs, in function of the credit valuation norms prescribed by the Superintendent of Banks,
Banco Central del Paraguay and with the criteria and policies of the entity, reviews and analysis of the credit portfolio in order to
adjust the previsions for doubtful collection accounts. All the necessary previsions have been constituted to cover eventual losses on
direct and contingent risks, in accordance to the criterion of the Entity’s management and with the requirements of Resolution No. 1
of the board of directors, Banco Central del Paraguay, Minutes No. 60 dated September 28, 2007 and Resolution No. 37, Minutes
No. 72 dated November 29 of 2011.
The movement recorded during the fiscal year ended on December 31, 2012 and 2011 in the
Previsions accounts is summarized as follows:
(a) Includes capital and interest and Repo operations
(b) The prevision percentages and risk categories defined for the classification and constitution of previsions of the credit portfolio as
of December 31, 2010 and 2009, are based on the criteria as established to such effect by Resolution No. 1, Minutes No. 60 of the
Board of Directors, BCP, dated September 28, 2007.
(c) Previsions are constituted considering additionally, the contingent balances.
c.6.4 Miscellaneous Credits
The composition as of December 31, 2012 and 2011 is as follows:
67
c.8 Investments
The chapter includes:
Assets received in credit recovery:
These goods are valued at the lower of the following three values: value of appraisal, value of award, and balance of the debt
immediately after award, in accordance with the prescriptions of the Banco Central del Paraguay on the matter. Additionally, for
goods that exceed the terms established by the Banco Central del Paraguay for holding, previsions are constituted according to
Resolution No. 1, Minutes 60 dated September 28, 2007 of the Board of Directors, Banco Central del Paraguay and Resolution No.
37, Minutes No. 72 dated November 29 of 2011. Upon three years of holding, the goods are provisioned by 100%.
Private Securities:
a) Permanent investments in participation in companies, which have been valued at the price of acquisition, since they represent
a minority participation of the entity. This value does not exceed its market value based on the proportional equity value of such
investments.
b) Private Sector Debt Securities, valued at their nominal value plus accrued interests, which does not exceed its value of recovery.
Special Investments:
Corresponding to works of art, which are valued at cost of acquisition, which does not exceed its value of recovery.
The following is a detail of the Entity’s investments:
c.9 Capital Assets
The original value of the capital assets and their accrued depreciations, as of the start of the fiscal year, is revalued until December
31, 2012 and 2011, according to the variation of the Consumer Price Index issued by Banco Central del Paraguay. According to this
index, accrued inflation during the fiscal year from January 1 until December 31, 2012 and 2011 was of 4.0% and 4.9% respectively.
The net increase of the revaluation reserve for the fiscal year ended on December 31, 2012 and 2011, was of Gs. 2.468.295.471.- y
2.538.328.880.- respectively, and areexhibited in the account “Adjustments to Equity”, of the Entity’s net equity.
Improvements or additions are recorded as assets, while maintenance and repairs expenses that do not increase the value of the
assets, nor their useful life, are charged to the results of the fiscal year in which they occur. Depreciations are computed as from the
month following the incorporation to the entity’s equity, through monthly charges to the results on the base of a lineal system, in the
years of useful live, with the exception of goods acquired in the process of merger by absorption of the Banco ABN Amro Paraguay
S. A., which continue with their original criteria and are computed as from the year following incorporation. the residual value of the
revalued assets considered as a whole does not exceed its recovery value as of December 31, 2012 and 2011.
The composition of capital assets as of fiscal year closing is the following:
69
c.10 Deferred Charges
The composition of the item as of December 31, 2012 and 2011 is the following:
(*)The entity amortizes improvements and premises in leased real estate lineally, considering a useful life of 5 years.
(**) According to Resolution SB.SG. N° 00205/2009 dated 25/09/2009 of the Banco Central del Paraguay, authorizing the deferral of the expenses incurred in the
merger by absorption of Banco ABN AMRO Paraguay S. A., with a term of amortization of 36 months.
According to the bank legislation, financial entities operating in Paraguay are not permitted to pledge their capital assets, except for
those in support of financial leasing operations, and to the Banco Central del Paraguay.
The banking legislation establishes a limit for the investment in capital assets, which is of 50% of the effective equity. the investment
of capital assets by the entity as of December 31, 2012, is within the established limit.
c.11 Subordinated Liabilities
The items “banking liabilities - Non-financial sector” of the balance sheet include subordinated bonds whose balance and detail of
emissions to 31 December 2012 and 2011 is as follows:
71
d) Monetary Correction of Capital:
According to Article 11 of Law No. 861/96, the financial entities must update their capital annually, in function of the Consumer
Price Index (IPC) calculated by the Banco Central del Paraguay. The updated value of the minimum capital for fiscal years 2012 and
2011 is of Gs. 33.857 millions y Gs. 30.441 millions respectively, according to Circular SB SG N° 005/2011 and Circular SB SG N°
001/2010 respectively.
The Bank’s paid in capital (common shares) as of December 31, 2012 and 2011 amounts to Gs. 538.039.600.000 y Gs.
491.866.100.000 (see note b.5.) respectively, which exceeds the above mentioned minimum capital.
(*) Banco Central del Paraguay has authorized the issuance of subordinated bonds in foreign currency up to an amount of US$ 10,000,000, and in local currency
up to an amount of Gs. 110,000,000,000. Under this framework, as of December 31, 2012, and 2011 the Entity proceeded to issue securities totaling Gs.
95.641.432.000 y Gs. 70.000.000.000 respectively.
Subordinated bonds are convertible into shares, under the sole ministry of the law, in case it is required to reach the minimum capitals
required in the Law or to reinstate capital losses (Law 861/96). Subordinated bonds do not have the same rights as under the deposit
insurance established by Law 2334/03
c.12 Limitations to the Free Availability of Assets or of the Equity and any other Restriction to the
Property Rights
The following limitations exist as of December 31, 2012 and 2011:
a) Mandatory Reserve:
The account: Banco Central del Paraguay as of December 31, 2012 and 2011 includes the sum of
Gs. 906.271.665.396 y Gs. 884.794.697.124 respectively, corresponding to accounts of restricted availability, maintained in said
Bank under the concept of Mandatory Reserves.
b) Public Securities:
As of December 31, 2012 and 2011, the balance of the account “Public Securities” (see note c.4), includes Letters of Undertaking
for a total of Gs. 32.976.060.458 y Gs. 66.328.478.982 respectively, placed in security operations respectively ensuring Report.
c) Legal Reserve:
According to Article 27 of Law 861/96, financial entities must have a reserve of no less that the equivalent of 100% of their capital,
which will be constituted by transferring annually, no less than twenty percent (20%) of the net earnings of each fiscal year.
Article 28 of the mentioned Law prescribes that the resources of the legal reserve will be automatically applied to cover losses
registered in the financial year. In the following fiscal years, the total of the earnings must be destined to the legal reserve, until the
same again reaches the minimum required, or the highest amount reached during the process of its constitution.
e) Distribution of earnings:
According to the prescriptions of Law No. 861/96 “General Law on Banks, Finance Companies and Other Credit Entities”, financial
entities may distribute their earnings with the prior approval of their respective annual and audited financial statements, by the
Superintendent of Banks, provided it issues its opinion within the term of one hundred twenty days after the closing of the fiscal year.
After such term without the issuance of opinion by the superintendent, the earnings may be distributed.
The Ordinary Shareholders Meeting of April 27, 2012 approved the distribution of dividends of fiscal year 2011 as follows:
- Dividends for Preferred shares Gs. 45.000.000.000.
- Dividends for Common shares Gs. 19.788.656.585.
f) Dividends of Preferred Shares
According to the conditions of issuance of the preferred shares, the shareholders meeting must recognize a preferred dividend of
18% on the liquid earnings of the fiscal year.
g) Additional Income Tax on Distribution of Earnings:
In accordance with the prescriptions of Law 125/91, modified by Law 2421/04, the distribution of earnings in cash is taxed at the
rate of 5%. The entity records the additional charge on Income tax, in the fiscal year in which the Shareholders Meeting decides on
the distribution.
h) Guarantees granted in favor of Bancard S.A.:
As of December 31, 2012 the Bank has delivered to Bancard S.A. a Stand By Guarantee for the amount of US$. US$. 1.780.000,00
in security of the balances resulting from transactions of users at automated teller machines (ATM’s) or points of sales (POS’s) of
the Infonet network, as well as the obligations that may derive as a consequence of operations with credit cards of the brands:
MasterCard, VISA and BancardCheck.
As of December 31, 2011 the Bank has delivered to the mentioned entity, Letters of Undertaking for amount of Gs. US$. 2.040.310,39
in security of the balances resulting from user transactions in automated teller machines (ATM’s) or points of sale (POS’s) of the
Infonet network, as well as the obligations that may derive as a consequence of the operations with credit cards of the brands:
MasterCard, VISA and BancardCheck.
There are no other limitations to the free availability of the Assets or of the Equity or any other restriction to the property right.
73
c.13 Guarantees Granted with Respect to Liabilities
As of December 31, 2011 there are the following guarantees granted with respect to Liabilities:
The loans obtained from the GOVCO LLC, in agreement with Citibank N.A. New York and guaranteed by the Overseas Private
Investment Corporation (OPIC), for an amount of US$ 33.750.000 with maturity date March 1, 2018 and US$ 11.250.000 with
maturity date March 1, 2014, and March, 1,2016 totaling US$ 45.000.000, are guaranteed by means of promissory notes from
clients, in caution, for an amount of US$. 50.411.214,03
As of December 31, 2011 there are the following guarantees granted with respect to Liabilities:
The loans obtained from the GOVCO LLC, in agreement with Citibank N.A. New York and guaranteed by the Overseas Private
Investment Corporation (OPIC), for an amount of US$ 33.750.000 with maturity date March 1, 2018 and US$ 11.250.000 with
maturity date March 1, 2014, and March, 1,2016 totaling US$ 45.000.000, are guaranteed by means of promissory notes from
clients, in caution, for an amount of US$. 50.411.214,03
c.14 Distribution of Credits and Obligations, Financial Intermediation, According to their
Maturities
The following is a display of the placements and receipts as of December 31, 2012 and 2011, grouped according to their remnant
terms.
The balances include accrued interests until the closing of the fiscal year, the Repo operations, and credits net of previsions.
Liquidity Risk Management: liquidity risk is the risk that an entity will face difficulties in complying with obligations associated to
financial liabilities that are settled delivering cash or other financial asset. the entity’s Board of Directors and Management control
liquidity fundamentally through the matching of maturities of assets and liabilities, according to the strategies of short, middle and
long term defined and monitored permanently, both for assets, and liabilities.
Additionally, the entity has defined contingency plans for cases of transitory liquidity needs, the liquidity position is monitored, and
the liquidity stress tests are performed regularly under a variety of scenarios covering from normal market conditions, to more severe
conditions. All liquidity policies and procedures are subject to the review and approval of the Assets and Liabilities Committee.
c.15 Concentration of the Loans and Deposits Portfolio
c.15.1 Concentration of Portfolio by Number of Clients
75
(*)The figure reflects the 10 largest obligors, the 50 largest obligors, and so on. The amounts are presented before previsions.
c.17 Miscellaneous Obligations
c.15.2 Concentration by Geography and Currency
The composition as of December 31, 2012 and 2011, is as follows:
(*) Including amounts of credits, accrued interest and Repo operations, net of previsions.
D. EQUITY
c.16 Credits and Contingencies with Related Parties
According to Article 59 of Law 861/96, related parties are considered those natural or legal persons having a direct participation,
or via third parties, of the property of the Bank, when such a participation exceeds 10% of the shares in the corporate capital; and
those persons who, without having a participation in the property, do have authority and responsibility in the planning, management,
and control of the entity’s activities.
It also prescribes that an operation with a related party must not be undertaken under conditions that are more advantageous that
those that are current in the market.
It also establishes limits for the credits that may be granted to related parties, which may not exceed of an amount equivalent of 20%
of the effective equity.
d.1 Efective Equity
The limits for operations by the financial entities are determined in function of their effective equity.
The Entity’s effective equity as of December 31, 2012 and 2011 amounted Gs. 843.390.000.000 y Gs. 730.670.000.000 respectively.
According to Resolution No. 1 Minutes 44 dated July 21, 2011, establishing the minimum percentage of Equity that the entities
subject to Law 861/96 must have, is of Tier 1 (Principal Capital), 8% and Tier 2 (Principal Capital plus Supplementary Capital), 12%
As of December 31, 2012 and 2011 the Entity maintained such a relation at Tier 1, 12.24% and 11.53% respectively, and at Tier 2
14.16% and 12.96 % respectively.
d.2 Minimum Capital
The minimum capital, indexed to inflation, of year 2011, which, by virtue of the prescriptions of the Banco Central del Paraguay on
the matter, banks operating in the national financial system must have as paid in capital by December 31, 2012, amounts to Gs.
33.857 billions (Gs. 30.441 billions as of December 31, 2011). The eventual capital deficit of an entity with respect to the minimum
capital annually required of financial entities, must be covered before the end of the first semester of each year.
As of December 31, 2012 and 2011, the entity has a paid in capital in common shares, Gs. 538.039.600.000 y Gs. 491.866.100.000
respectively, which exceeded the minimum required by the norm of the Banco Central del Paraguay at such dates.
77
d.3 Adjustments to Accrued Results
F. INFORMATION REGARDING RESULTS
The adjustments to accrued results are exhibited in the results statements.
f.1 Recognition of Earnings and Losses
d.4 Result per Share
The entity applied the principle of Accrual to the effects of recognizing income and the registration of expenditures or costs incurred,
with the following exceptions, referred to those incomes that are recognized as earnings at the time of their receipt or collection, as
prescribed by Resolution No. 1, Minutes No. 60 of the Banco Central del Paraguay, dated September 28, 2007 and Resolution N0.
37, Minutes No. 72 dated November 29, 2011:
The entity calculates the net result per share based on the following criteria:
Preferred Shares: A preferred annual dividend of 18% payable on the nominal value of the shares. The preferred dividend will be
paid from the liquid earnings of each fiscal year, in such a manner that, if there should be no earnings in the fiscal year, there will be no
sum owed to the shareholder of such shares, nor the duty to compensate with the earnings of the following fiscal year. They will have
the priority in the collection of dividends, over the common shares. The Preferred Shares shall have a preference in the collection of
dividends over the common shares that may be issued later on by the entity.
Common shares: Over the basis of the year results to distribute to holders of common shares (upon deduction of the amounts to be
affected to legal reserve, capital indexation, remuneration of Directors and Syndics, attributable to earnings that may be defined by
the Shareholders Meeting by virtue of the corporate bylaws, and dividends for preferred shares), divided by the number of common
shares. According to the prescriptions of the corporate bylaws, the holders of common shares have the right to receive under the
concept of dividends - in the case of an existence of earnings - at least 10% of the net earnings of the fiscal year.
The number of preferred and common shares of the Entity as of December 31, 2011 and 2010 is detailed in note b.5
E. INFORMATION REGARDING CONTINGENCIES
The balance of the contingencies accounts as of December 31, 2012 and 2011 correspond to the lines of credit granted to obligors
on credit card operations, credits agreed on current accounts, and other lines granted and pending of use. Such lines in total do not
exceed 10% of the total assets.
a) Financial products accrued and not received from obligors with matured credits.
b) Financial products accrued and not received corresponding to obligors and credits classified under risks categories higher than
Category 2.
c) Earnings on Valuation of Obligors with matured credits.
d) Earnings to be realized on the sale of goods at term.
e) Earnings on Valuation of operations of sale of goods at term.
f) Certain commissions on bank services.
f.2 Difference of Exchange in Foreign Currency
The exchange differences corresponding to the maintaining of assets and liabilities in foreign currency are shown net in the lines of
the results statement: “Valuation of Assets and Liabilities in Foreign Currency”, and the details are exhibited as follows:
The Bank keeps a record in contingency accounts, of the following balances related with commitments or responsibilities that are
proper of its activity:
79
The exchange differences corresponding to the maintaining of credits in foreign currency, matured and/or current but classified in
categories “3”, “4”, “5” y “6”, are recognized as income in function of their realization
The net exchange differences on Exchange and Arbitrage operations are exhibited in the lines of the Results Statement, denominated
as “Other Operational Earnings - Earnings on Miscellaneous credits”.
The charge to Results under the concept of Income Tax for the fiscal years ended on December 31, 2012 and 2011 amount to Gs.
10.968.315.726 and Gs. 8.418.585.175 respectively. This amount does not include the provision of the additional 5% corresponding
to the distribution of earnings, mentioned in note c.12 e), as the Entity records this additional income tax charge in the year on which
the Shareholders Meeting decides on its distribution
f.3 Other Operational Earnings and Losses.
G. G.EFFECTS OF INFLATION
The item “Other operational earnings - Others”, as of December 31, 2012 and 2011 are comprised as follows:
No procedures have been applied to adjust for inflation, except for what is mentioned in note c.9.
H. DEEDS AFTER THE CLOSING OF THE FISCAL YEAR
No facts existing after December 31, 2012 exist that imply significant alterations in the equity structure and in the results of the fiscal
year.
The item “Other operational Losses –Others”, as of December 31, 2012 and 2011, is comprised as follows:
Francisco Furman S.
Roland Wolff
Raúl Vera Bogado
Nicolás Trociuk Jakinszczi
Contador General
f.4 Income Tax
Gerente General
Síndico Titular
Presidente
Current Income Tax that is charged to the results of the fiscal year at the rate of 10%. It is based on the accounting earnings before
the concept, adjusted by the entries that the law and its regulations include, or exclude, for the determination of the taxable net
income.
81
REPORT OF INDEPENDENT AUDITORS
83
TRUSTEE´S REPORT
85
CONTACTS
BANCO REGIONAL S.A.E.C.A
Headquarters
ADRESS: Carlos Antonio López 1348, Encarnación - Paraguay
PHONE: (59571) 204 740
Contact Center:
(59571) 204 740 - (59521) 419 0000
www.bancoregional.com.py

we always believe in you

Transcripción

Documentos relacionados

User Register