SHAREHOLDERS’ MEETING AUGMENTS BANCO POPULAR DOMINICANO’S CAPITAL TO RD$10 BILLION
During the celebration of an extraordinary general shareholders meeting, Banco Popular Dominicano modified the fifth article of its charter, concerning its joint stock. The fifth article now states that Banco Popular Dominicano’s authorized capital stock stands at ten billion pesos, an amount that doubles the previous level of five billion pesos.
The increase in authorized capital was approved by the shareholders of the Bank and was based on the excellent results achieved during the first three quarters of 2003 as well as the estimated growth for the leading financial institution in the Dominican Republic.
The president of the company, Mr. Manuel A. Grullón, stated that this strategic measure was carefully evaluated and meets the needs of Banco Popular Dominicano to adapt its capital structure to the growth that the company has experienced as well as future plans for development.
Mr. Grullón stated that the motion to change the capital structure was presented in order to comply with the First Resolution of the Monetary Board of 1992 and with the 46th article of the Monetary and Financial Law of 2002, which require that financial institutions maintain certain solvency indexes and capital levels. He also indicated that in its 40 years of uninterrupted service to different sectors of the Dominican society, Banco Popular Dominicano has maintained a trajectory of strict adherence to the norms and regulations regarding financial activities. It is part of the managerial philosophy of the company to constantly comply with such regulations.
Mr. Grullón also stated that the financial results at the end of the third quarter of the year were especially satisfactory. Total assets reached RD$68 billion, which reflects an increase of 65%; total deposits summed RD$56 billion, an increase of 71% compared to the third quarter of 2002, and the loan portfolio reached RD$39 billion, which represents an increase of 30%.
Mr. Grullón viewed the support and trust offered by its clients as well as their increasing financial needs as the basis upon which Banco Popular Dominicano decided to implement an expansion plan which, to date, includes a web of 172 branches and more than 380 automatic tellers distributed throughout the Dominican geography.
He also maintained that during the following months the Bank would be opening over ten new model branches both at the capital city of the Dominican Republic and in other provinces. This new locales will increase the number of branches to 185 by the end of the year.
Grupo Popular’s shareholders meeting
Immediately following the bank’s meeting, shareholders of Grupo Popular held their first extraordinary meeting of the year. During this meeting, the authorized capital of the company was augmented from RD$3 billion to RD$6 billion, following the same criteria of profitability, growth projections for local and international subsidiaries and adherence to the laws that regulate the financial sector.
The Chairman of the Board of Directors, Mr. Alejandro E. Grullón E, thanked the shareholders for the support that they have traditionally offered to the business initiatives of the institution. He also thanked the team of executives who carry the responsibility of executing the strategic plans.
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