Promerica announces capital injection and RD$800 million increase in regulatory capital

• Banco Promerica’s Shareholders’ Meeting ratified an RD$800 million increase in the institution’s regulatory capital, including a fresh capital injection of US$5 million, reinvestment of more than RD$200 million in profits and a RD$300 million subordinated debt issue.

Santo Domingo, April 2021.- Banco Promerica Dominican Republic announced that its Annual Ordinary General Shareholders’ Meeting ratified a capital injection and an increase in its regulatory capital of RD$800 million, to support the institution’s significant expansion of operations in recent years.

The Shareholders’ Meeting, held on 21 April, ratified the approval of a fresh capital injection of US$5 million from its parent company Promerica Financial Corporation and the reinvestment of RD$210 million, corresponding to all the profits generated by the bank in 2020, as well as a subordinated debt issue on the local capital market of RD$300 million.

The executive president of Banco Promerica, Carlos Julio Camilo, said these capital injections are a clear sign of Banco Promerica’s shareholders’ confidence in the Dominican economy and in the institution’s favourable prospects for continuing to consolidate its presence in the Dominican financial system. He also said Banco Promerica has become one of the fastest-expanding institutions in the local market, achieving 53% growth in its loan portfolio in 2020.

Camilo said “this rapid growth has positioned our bank as the fifth largest private multiple bank in the Dominican Republic, with total assets of around RD$40 billion at the end of March 2021. This performance has been accompanied by excellent financial results, with a non-performing loan ratio below 2.0%, one of the best operating efficiency levels in the sector and a 140% increase in low-cost deposits”.

Camilo said this strong performance has been achieved thanks to the efforts of a top-level team that has joined the bank in recent years, a close, innovative and agile business vision that prioritises long-term customer relationships, and the strategic, operational and financial support of its parent company Promerica Financial Corporation, one of the leading financial groups in Central America and the Caribbean.

About Banco Promerica

Headquartered in Santo Domingo, Banco Promerica is a multiple bank with 20 years of local presence, focusing on personal customers, small and medium-sized businesses, corporate and institutional clients, and the credit card business. Banco Promerica is a member of Grupo Promerica (through the holding company Promerica Financial Corporation), made up of nine banks operating in Central America, Ecuador, the Cayman Islands and the Dominican Republic.

Grupo Promerica’s indicators make it one of the most important regional financial groups, with total assets of around US$16.5 billion, equity of around US$1.4 billion, more than 2.4 million customers and a customer service network of more than 740 branches and more than 1,000 ATMs.

Through the financial services it offers, Grupo Promerica constantly contributes to financial inclusion and to the economic progress of the societies and communities it serves.