2 0 1 1A N N U A L R E P O R T

Banco Popular Dominicano, S. A. Banco Múltiple

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Although different, we all share something in common: …a bank we can always rely on each and every moment of our lives.

C O N T E N T S

Financial Indicators 3

Letter from the Chairman 4

Report of the Board of Administration 6

Success Stories: our clients 19

Products and services 48

Success Stories: our allies 67

Corporate Social Responsibility 68

Financial Statements 99

Members of the Board of Administration 186

Committees of the Board of Administration 188

Chief Executives 190

Office Directory 194

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Income and Profits 2011 2010 (In RD$ Million)

Total Income* 28,805 24,295

Net Financial Margin 14,360 11,936

Net Profit 3,935 3,741

*Includes net income from effects of exchange earnings

Dividends Declared During the Year under Review (In RD$ Million)

Cash Assets 3,908 2,888

Common Shares 291 36

Total 4,199 2,924

Financial Indicators

Return on Assets 2.05% 2.24%

Return on Equity 22.40% 24.03%

Equity Ratio 8.84% 9.49%

Solvency Ratio 12.53% 13.67%

Equity to Deposits 10.40% 11.05%

Available Funds to Deposits 25.02% 23.88%

Provisions for Loans / Non-Performing Loans 193.95% 182.99%

Year-End Balance (In RD$ Million)

Total Assets 205,574 178,523

Total Deposits 174,760 153,371

Net Loan Portfolio 126,538 109,217

Funds Available 43,730 36,618

Paid-in Capital 10,383 9,317

Shareholders' Equity 18,180 16,950

Demand Deposits 38,452 36,318

Savings Accounts Deposits NC* 29,509 27,491

Term Deposits and Certificates of Deposits NC* 60,109 52,884

Deposits FC* 46,689 36,678

*National Currency (NC) - Foreign Currency (FC)

Common Shares 207,657,619 186,347,862

Number of Offices and Agencies 197 194

Number of ATM 682 649

Average Number of Employees 5,852 5,283

F i n a n c i a l i n d i c a t o r s

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Manuel A. Grullón chairman

Ladies and gentlemen Shareholders,

On behalf of the Board of Administration of our financial institution, I am pleased to present

you with the 2011 Annual Performance Report, which contains the most relevant activities

carried out by Banco Popular Dominicano, S. A. - Banco Múltiple in the past year. Popular

was successful in accomplishing significant business and institutional achievements during

the prior fiscal period ending on December 2011, that reflects a sound growth in its finan-

cial indicators and the attainment of various national and international acknowledgments

that highlight its financial management approach, its service philosophy and its commit-

ment to society.

Furthermore, the present report also substantiates the growth registered by Popular’s

products and service portfolio, which are constantly evolving, in response to the emerging

needs of clients and the new trends in local and global financial markets. The accuracy of

the figures that substantiate the accomplishments presented here-in, have been duly

endorsed by our firm of External Auditors, by the official entities that supervise and regu-

late the financial system, as well as by our internal auditors.

We would like to express our gratitude to the executives and employees of this institution,

as well as to all the providers of goods and services, whose efficient support makes it pos-

sible for us to provide our clients with financial products of excellent quality. Together we

contribute towards the dynamization of the banking industry and to the growth of our

nation’s economy.

Distinguished fellow shareholders, allow me to express our deepest appreciation to you

and to the Dominican population at large, for the support and confidence entrusted to us

during the year 2011.

Sincerely,

Manuel A. Grullón chairman

L E T T E R F R O M T H E C H A I R M A N

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Economic environment and new tax burdensIt is pertinent to emphasize that we were successful in achieving the referred growth, not-

withstanding the new tax burdens applied to the banking segment which –as of the first

semester of 2011- impacted overall business activity levels and affected competitiveness

within the sector. Likewise, the rise of fuel prices registered during the first part of 2011

produced inflationary pressure on the economy that determined the implementation -by

the Central Bank of the Dominican Republic - of a restrictive monetary policy that gener-

ated higher interest rates and provoked a decrease on the market’s demands for credit.

During the January - July period, the level of accumulated inflation was at 6.75%, surpass-

ing –in a period of only seven months- the overall 2010 inflation level, registered at 6.24%.

The restrictive monetary policy implemented by the Central Bank during the first semester

of 2011 culminated in the deceleration of economic activity, and consequently the rate of

2011 Gross Domestic Product as well, which situated at 4.5% representing a significant

decrease from the 7.8% growth level registered in 2010.

Ladies and gentlemen shareholders,

On behalf of the Board of Administration, I am pleased to extend a warm welcome to all of

you to this Annual Ordinary-Extraordinary General Shareholders Assembly, which is held

with the aim to submit to your consideration, in accordance with Article 23 (a) of our

Statutes, the Annual Report on the performance of Banco Popular Dominicano, S. A. - Banco

Múltiple during the period comprised between January 1 to December 31, 2011, in line

with the provisions contained in Article 61 of the Statues of this institution, in accordance

with the stipulations outlined in the New Commercial Societies and Individual Enterprises

of Limited Responsabilities General Law No. 479-08, further modified by Law No. 31-11.

I am pleased to inform that this financial institution has concluded its 2011 fiscal year per-

formance with a sound growth of its main financial indicators thus increasing its produc-

tive assets and shareholder's equity, as well as enhancing asset quality indicators and

maintaining adequate levels of efficiency, solvency and liquidity.

R E P O R T O F T H E B O A R D O F A D M I N I S T R A T I O N

Marino D. Espinal vice-president

Práxedes Castillo P. secretary

Alejandro E. Grullón E. member

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During the past year various renowned financial publications, such as Euromoney and LatinFinance, awarded Popular as “Best Bank in Dominican Republic” highlighting its high credit capacity, its conservative risk management policy and the adequate quality and profitability of its assets.The risk rating agencies Fitch Ratings and Feller Rate awarded an AA- rating to the financial institution.

Notwithstanding the characteristics of the economic environment during 2011, this finan-

cial institution was able to develop innovative initiatives, in line with its 2011-2014

Strategic Plan, that helped dynamize new business lines in addition to optimizing opera-

tional efficiency and risk management. The latter helped mitigate the negative impact of

the new tax burdens, which are estimated at an approximate amount of RD 800 million, over

the results registered by our bank.

It is also pertinent to point out that Popular played an important role in dynamizing the

market of foreign currency exchange, through the sale of currencies and the channeling of

US financing for the development of infrastructure projects and foreign commerce activi-

ties, among other dynamic sectors of the national economy.

Qualitative achievements and acknowledgements The results of the prior fiscal year that are presented herein have warranted an upgrading

of the risk ratings issued by the agencies Fitch Ratings and Feller Rate, with respect to year

2011, which awarded our financial institution with an AA- credit rating with positive per-

spective.

Moreover, during the past year various renowned financial publications, such as Euromoney

and LatinFinance, selected Popular as “Best Bank in Dominican Republic”, highlighting its

high credit capacity, its conservative risk management policy, profitability levels and ade-

quate asset quality. Likewise, the prestigious British magazine The Banker has once again

chosen Banco Popular Dominicano as one of the financial institutions to be included in its

list of Top 1000 World Banks ranking. In addition to the above, the annual survey conducted

by Mercado Magazine ratifies that Popular continues to be the “Most Admired” financial

institution among the Dominican public.

Regarding the main activities of the bank’s Senior Executive Vice-Presidencies, it is relevant

to bring to your attention that a savings and cost reduction program was implemented in

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mobiles or smartphones, as well as the introduction of new payment functions which are

now available through the tPago tool. Likewise a new alternate computer center has been

installed, comprised of new and modern facilities in line with international standards that

serves as back-up support service for the main computer center in the event of unforeseen

contingencies. On another note, a new alternate high-availability communication network

has been contracted with an aim to ensure uninterrupted communication between our

offices and the data center.

Regarding the Senior Executive Vice-Presidency of Business, it must be noted that during

2011 the Area of Treasury registered a very positive performance, actively participating in

the investment of debt instruments emitted by both the Ministry of Finance as well as the

Central Bank of the Dominican Republic. In the Area of Personal Business and Branch

Offices, our main efforts were focused on improving financial margins, without neglecting

the growth of the credit portfolio.

Furthermore, it is important to highlight the success achieved through the initiatives car-

ried out by the Credit Card Area that introduced advantageous modifications to the

Programa de Millas Popular (Popular Miles Award loyalty program). Consequently, clients

are now using their miles awards to obtain concert tickets and gift certificates from a wide

range of commercial establishments, in addition to using their miles award to cover the

costs of preventive health plans.

the area of Finance, Technology and Operations that entailed the creation of working-

groups that worked towards enhancing the efficiency of the expense accounts contained

in the 2011 Operational Budget, through the introduction of efficiency measures aimed at

saving electric energy, transportation and cash collection. In addition, Banco Popular made

an important investment in its technological platform, with the goal of continuing to

improve its products and services, and to incorporate a series of new financial services

which will be presented to the public in 2012.

Consequently this technological framework responds to the emerging needs of clients,

such as the implementation of Móvil Banking Popular, an adapted internet platform for

above Pedro A. Rodríguez member

Manuel E. Tavares S. member

below J. Armando Bermúdez member

Osián T. Abreu member

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Furthermore, the Credit Card Area has also launched the Benefits Plan, which allows card-

holders to benefit from special bargains and discounts offered in more than 260 commer-

cial establishments, among many other new advantages now available to Popular card

holders under this loyalty program.

Similarly, the Senior Executive Vice-Presidency for Risk Management, Security and Human

Resources continued to develop and implement important initiatives on risk management

effectiveness, in addition to investing resources in the professional training of the institu-

tion’s human capital.

Achievements that transcend financial outcomeLadies and gentlemen shareholders, the outcome of the business endeavors conducted by

our bank not only reveal the success of an effective financial performance, but also reflect

the dreams and goals accomplished by the clients, shareholders and communities that

benefit from our Corporate Social Responsibility Program.

We can therefore report, with great satisfaction, that 2 million 700 thousand clients relied

on our customer service principle, mission, vision and corporate values; 1 million 165 thou-

sand customers continued to entrust us with their savings; RD$ 4,813 million pesos were

paid in interest, thereby increasing the savings accounts of our clients; 2,443 families were

able to acquire a home of their own through mortgage loans; 1,880 clients purchased the

vehicle of their dreams; 107,000 customers were able to meet their individual and/or fam-

ily needs through personal loans; 33,231 clients enjoyed the benefits of the Programa de

Millas Popular; 30 million transactions were conducted by our cardholders; over 30 million

transactions enabled the withdrawal and availability of funds required by our clients to

meet their needs; over 7 million Internet Banking transactions carried out by our clients

from the convenience of their homes or offices facilitated their interaction with the bank;

Popular closed its 2011 fiscal year with a level of Total Assets amounting to RD$205,574 million, experiencing an increase of RD$27,051 million, which is equivalent to 15%.Furthermore, the increment registered by its net income was the highest in the market, surpassing the amount of RD$ 3,900 million. On the other hand, the expansion of its loan portfolio was oriented primarily toward the productive segments.

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and over 900 institutions and families were able to benefit from the Corporate Social

Responsibility Program (CSRP) implemented by Banco Popular Dominicano which, in

November last year, merited an acknowledgment from United Nations Global Compact.

Resources oriented toward the productive sector Upon reviewing the significant qualitative accomplishments described above, we are

pleased to inform our fellow shareholders that in quantitative terms, Popular closed the

2011 fiscal year with a level of Total Assets amounting to RD$205,574 million, experiencing

an increase of RD$27,051 million which is equivalent to a 15% growth in comparison to the

total of RD$178,523 million achieved at the closing of 2010.

The net Loan Portfolio rose to RD$126,538 million, with an approximate percentage

growth of 16%, thus surpassing by RD$17,321 million the level achieved during the same

period in 2010, which closed at RD$109,217 million.

It is important to emphasize that this growth was oriented primarily toward commercial

loans granted to productive sectors and to small and medium enterprises (SMEs), repre-

senting an increment of RD$12,608 million. On the other hand, consumer loans grew by

RD$2,456 million, while mortgage loans rose to a total of RD$2,257 million.

The increment of the Loans Portfolio was achieved with significant improvements on

quality indicators, noting that the Past due and Under Legal Procedures Loans repre-

sented a 1.36% of the Gross Portfolio which, in comparison to year 2010, reflects a favor-

above José A. Brache member

Andrés Avelino Abreu member

below Adriano Bordas member

Salustiano Acebal member

able decrease of 0.44% and Provisions for Loans / Non Performing Loans (NPL) Ratio that

rose from 182.99% to 193.95%.

Additionally, during 2011 Total Deposits increased to the amount of RD$174,760 million,

exceeding by RD$21,389 million the amount reached at year-end 2010, which is equivalent

to a relative growth of 14%.

Likewise, the Regulatory Capital that backs up the operations of our banking institution

closed the 2011 fiscal year with a balance of RD$18,375 million, which reflects a growth of

RD$1,584 million. This growth allowed the bank to achieve a solvency index of 12.53%.

Fellow shareholders, this Board of Administration is pleased to inform that at the closure of

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the prior fiscal year Banco Popular Dominicano reported Gross Income of RD$ 5,255 million

which, after deducting RD$ 1,320 million corresponding to payment of income tax, result

in a Total Net Income amounting to RD$3,935 thus reflecting a return on equity of

22.40%.

Distinguished assembly members, it is our hope that the performance achieved by this

Board of Administration during the year 2011 warrants the approval of this Annual

Ordinary-Extraordinary General Shareholders Assembly and we further request that, in

accordance with the data contained in the enclosed financial statements, the 2011

Performance Report submitted herein is adopted accordingly.

Thank you very much.

Evolution of total assEtsRD$ Million

Evolution of thE nEt loan PortfolioRD$ Million

Manuel A. Grullónchairman

205,574

178,523

155,042

148,111 2008

2009

2010

2011

126,538

109,217

89,356

81,6262008

2009

2010

2011

174,760

153,371

133,951

125,4332008

2009

2010

2011

18,180

16,950

14,196

13,6282008

2009

2010

2011

Evolution of total DEPosits RD$ Million

Evolution of sharEholDErs' EquityRD$ Million

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Success Stories: Our clients

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20 2120

“My grandfather infused me with a sense of dedication

to service and the love for gastronomy. For me, service

quality is what really makes the difference. We feel a

deep sense of responsibility when people refer to us as an

unavoidable gastronomic reference. It is not my place to

speak about what our clients think, but it is certainly my

place to express appreciation for that privilege.” m r . Ó s c a r B a t i s t a m a r t í n e z O w N E r O F T H E r E S T a u r a N T S T í P i C O B O N a O l O C a T E d i N B O N a O d O M i N i C a N r E P u B l i C

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Customers begin to arrive at our restaurant as early as 6 o’clock in

the morning to have breakfast. Many of these people are just passing

by and others are residents of the region who decide to go out for

breakfast. It is a diverse crowd which we must learn to interpret and

get to know. That is why the training of staff and their commitment

to the company is so very important. I perceive that sense of

proficiency, empowerment and loyalty at the bank. The commitment

of employees is instrumental for the success of all business endeavors.

The people that work with you should be a living part of the business.

They should feel for it, work for it and abide by it. They should feel like

a true part of the enterprise and true holders of quality service.

We feel a deep sense of responsibility when people refer to us as

an unavoidable gastronomic reference. It is not my place to speak

about what our clients think, but it is certainly my place to express

appreciation for that privilege. I believe the public is able to quickly

perceive the signals we send out. The important thing is to send the

right signals.”

Learn more about Mr. Batista’s success story at www.popularenlinea.com

T H E T i P i C O B O N a O r E S T a u r a N T S a r E a N E x C E l l E N T E x a M P l E O F T H E d E v E l O P M E N T O F S M a l l a N d M E d i u M E N T E r P r i S E S ( S E M S ) i N d O M i N i C a N r E P u B l i C . T H E y H a v E l E F T a T r a i l O F E x C E l l E N T C O r P O r a T E T r a j E C T O r y T H a T r E S C u E S T H E g a S T r O N O M i C T r a d i T i O N O F O u r N a T i O N a N d , i N d O i N g S O T H E y H a v E B E C O M E a C u l T u r a l r E F E r E N C E F O r a N y d O M i N i C a N N a T i O N a l

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“By the time I was born The Tipico was

already a national tradition. My father tells

me how our grandfather first conceived

and implemented this idea, and how he

later placed it in my father’s hands who

subsequently handed it down to the

entire family. I have been in charge of the

restaurant since 1996, when I returned from

Italy. My grandfather infused me with a

sense of dedication to service and the love for

gastronomy. For me, service quality is what

really makes the difference. People come to

our restaurant expecting a home-like service

environment. I go to the bank seeking the

same.

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Quality of Service: a Popular Service

The corporation is committed to its employees through a set of shared

principles that is the cornerstone that supports our banking business,

while promoting an equitable and fair decision-making approach and the

collaborative leadership style that is practiced by our institution.

We provide our staff with a working environment that fosters personal

and family wellbeing, on the basis of strategies that have been specifically

designed to respond to the interests and priorities of Popular staff-members

and their families; with an aim to provide the support they require to fully

exercise their talents and capabilities, accomplish their professional growth

and display their passion for service. We reward creativity, productivity and

provide opportunities for the professional growth of every individual.Several actions are required for a business

endeavor to be efficient in all its areas

of service and for that service to be truly

memorable. That inspiration is what still

moves us on a daily basis to identify what

clients truly want and to transform each

of their encounters with us into a unique

experience. To achieve that, we favor a model

of Human Resources Management that aims

to accomplish the comprehensive wellbeing

of all our human resources, as a prior step

towards ensuring the deliverance of exquisite

service.

The organization is committed to its employees through a set of shared principles that is the corner stone that supports our banking business, while fostering a fair and equitable decision-making approach and the collaborative leadership style observed by our institution.

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D r . D U L c e m U Ñ O z D e c e a r a , m . D . a u d i O l O g y a N d S P E E C H d i S O r d E r S S P E C i a l i S TS a N T i a g O d E l O S C a B a l l E r O S , d O M i N i C a N r E P u B l i C

“In my world, medicine, professionalism and the

respect for human life are non-negotiable. Many times

people come to you just looking for someone to talk

to, someone who inspires confidence and respect. A

banking institution should have those same qualities.”

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And that continues to be the case even today….I feel like a princess

when I arrive at the offices of Popular. I am greeted with a level of

courtesy and thoughtfulness that exceed my expectations each and

every time.

“In my world, medicine, professionalism and the respect for human

life are non-negotiable. Many times people come to you just looking

for someone to talk to, someone who inspires confidence and respect.

A banking institution should have those same qualities”. It should be

a considerate, professional and respectful institution.

Defining customer service quality is very much describing what I

find at Banco Popular. It’s going beyond good customer service.

Like that time when I went to the bank seeking a loan to set up my

medical office. I remember that day as if it were yesterday. My credit

application was approved immediately although the amount was a

considerably high. The bank manager saw me at the office and asked:

“Have you come alone? Will you be closing the purchase agreement

immediately?” – I answered that I was indeed alone and that I would

be subscribing the purchase agreement right away. I can tell you that,

in a very natural demeanor, that gentleman arranged his desk, gave

instructions to his office staff and said to me: “You will not be going

alone, I will come with you”. The truth is, I could hardly believe it. Now

that –and similar kind assistance- is what I call quality service. That is

what I want to find in a bank.”

Learn more about Dr. Muñoz’ success story at www.popularenlinea.com

d O C T O r M u ñ O z i S a N a u d i O l O g i S T a N d P H O N i a T r i S T w H O H a S F i N a l ly S E E N H E r P E r S O N a l a N d P r O F E S S i O N a l d r E a M C O M E T r u E w i T H T H E E S T a B l i S H M E N T O F H E r O w N M E d i C a l F a C i l i T y. F O r T H E P a S T T H i r T E E N y E a r S S H E H a S B E E N a S S i S T i N g H u N d r E d S O F P a T i E N T S i N T H E r E g i O N O F C i B a O , w i T H a H i g H S E N S E O F d E d i C a T i O N a N d C O M M i T M E N T, T O H E l P T H E M O v E r C O M E T H E i r H E a r i N g P r O B l E M S

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“I came to know the bank at a very peculiar

moment; a moment I define as an expression

of trust. I had just arrived to the country from

Mexico where I had completed post graduate

studies in the field of Audiology. Shortly upon

arrival, I realized I had to return to Mexico to

procure some documents. I had to secure a

credit card before initiating travel ….I recall

knocking on several doors but ultimately only

one of them answered: Popular.

From that moment on I knew this would

be my bank. They believed in me, in my

motivation to excel. They helped me at an

urgent time…when I had no time to spare…

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Staff Professional Development For Accomplishing Outstanding ServiceTo this regard, we must point out that these comprehensive

development programs aim to improve the employability of staff and

their integration into the corporate culture of Popular, with a view to

creating a work environment with sound identity and fidelity: in addition

to raising awareness on the Mission of our financial institution.

During 2011 we implemented a High Potential Staff Program with the

objective of identifying the best professional profiles with potential to

become future institutional leaders, and further focus their professional

development accordingly. A total of 200 managers were selected: their

competences were evaluated, their experience and ethical behavior were

screened and their compliance to organizational values and principles

duly assessed.

In addition, The Leadership Academy was also established, a unique

initiative nationwide, aimed to ensuring the training of leaders that are to

portray the Popular brand in their daily performance. All 700 managers

at the bank attended the first Academy module which addressed the

topic of “Popular’s Ethical Management Model”.

One of the strategic objectives established by our institution aims to be recognized for the quality of the services offered.

We have established a Service Curriculum so as to ensure that the entire

staff becomes knowledgeable on our philosophy of service and, in

addition, we have also created the Lean Academy which provides our

staff with analytical tools that allow the improvement of operational

processes.

This guarantees the creation of skilled internal talent. Approximately one

thousand employees were promoted to higher posts, thus reflecting our

commitment to their professional wellbeing and development.

Quality Service, Strategic ObjectiveOur service pledge is anchored in the acknowledgement and

sustainment of our internal strengths and summarizes the feelings we

are to generate in our clients so that our motto “Always at your side”

becomes a reality for them, by foreseeing resourceful solutions to their

requirements.

Through this means, the Service Quality Area is committed to the overall

success of the institution. It promotes comprehensive and transversal

actions within the organization, providing support to the improvement

measures and initiatives that are introduced at each area, to facilitate the

incorporation of quality service as a strategic objective in their dealing

with clients, whether they are external or internal customers.

32 33

“Success cannot be achieved in a split second or in just a day.

It is attained through daily effort. Punta Cana is that sort of

continued endeavor. In 1969, the thought of developing 48

kilometers of the Eastern Zone’s jungle into a touristic paradise

was but a myth. It was indeed quite difficult to conceive and

even more difficult to envisage. I have devoted myself to

tourism with humility and dedication. Respecting it,

protecting it and caring for it.”m r . F r a n K r a i n i e r i P r E S i d E N T O F g r u P O P u N T a C a N aB á v a r O , d O M i N i C a N r E P u B l i C

32 33

34 35

The tourism industry is my second greatest love. I remember that when

I proposed to my wife Haydeé, this was one of the matters I laid on the

table: “I ask that you accept to share my devotion”, I said to her that day.

I have devoted myself to tourism with humility and dedication.

Respecting it, protecting it and caring for it. Tourism is the foundation

of Dominican Republic’s development. I would like for people

–including those dedicated to the hotel business– to perceive and

understand the touristic industry for what it is: a great international

industry. It allows its members to move freely while providing

opportunities for unlimited development.

When I travel abroad, to any part of the world, I feel extremely

pleased to come across people who have been part of the staff

of Grupo Punta Cana. They surpass all boundaries because they

comprise a team that evolves and becomes better each day: most

of them speak as many as five languages, and have accomplished

that through earnest effort and genuine enthusiasm. They truly excel

whenever the need arises for them to give more of themselves.

Crises are opportunities. One can and must grow with each crisis. The

path to success involves both descending and ascending steps, but we

must keep our eyes wide open, we must keep abreast of market trends,

identifying what people want and what you must and should provide.

An enterprise and its members must be a true part of the community

where they grow and develop. It is a challenge. It’s all about growing

while remaining true to who you really are. Being a part of people’s daily

hustle and bustle; living with them and really getting to know them.”

Learn more about Mr. Rainieri’s success story at www.popularenlinea.com

F O u r d E C a d E S a g O T H E P u N T a C a N a P r O j E C T w a S O N ly a N i l l u S i O N a N d F O r M a N y B l u N T ly i N S a N E . T O d a y T H E C O N S O r T i u M g r u P O P u N T a C a N a i S a N i N T E r N a T i O N a l M O d E l a N d a N i M P O r T a N T P i l l a r O F O u r N a T i O N ’ S T O u r i S T i C a N d E C O N O M i C d E v E l O P M E N T

34 35

“In 1969, the thought of developing 48

kilometers of the Eastern Zone’s jungle into

a touristic paradise was but a myth. It was

indeed quite difficult to conceive and even

more difficult to envisage. I was only nineteen

years of age when I applied for a loan to

continue my pursuit. In embracing that dream

I understood that nothing else was required…

however there were others who required

far more than just my vision of a dream. My

personal and family references were more

than sufficient at Popular. .my family history

was enough for them and they trusted me.

Success cannot be achieved in a split second

or in just a day or. A job that can serve as an

example and can foster motivation on others

can only be achieved through daily effort.

Punta Cana is part of a continued endeavor

that has involved many people, during a long

period of time.

The Client’s VoiceIn order to properly implement this scheme and truly understand

what our clients are trying to convey to us, we seek to capture their

perception of our institution through the set-up of all the channels

required to listen to their voices. Their suggestions, comments and

service expectations are a crucial aid in our pursuit to continue to

improve. This feedback is one of the aspects we keep in mind when

assessing staff performance; and for introducing improvements from

the clients’ perspective.

We have implemented various mechanisms and means of

communication with our base consumers through the use of

available technological tools and the conduct of periodic surveys that

measure the quality of the service that is being offered, in addition

to providing detailed information regarding the level of customer

satisfaction.

Amongst these mechanisms we can mention la vozdelcliente@bpd.

com which is far more than just an on-line listening address. As of

today, it is considered a consolidated interactive channel where

we can register –in a consistent manner- a significant amount of

information that is sent by our users, which serves to bring us closer

to learning about our customers’ realities.

By the same token, we created a second account under the Twitter

Social Network as an additional channel of communication dedicated

exclusively to providing support services to our clients. The creation

of @Popularatulado coincided with the commemoration of our

first year of active and continuous presence in this digital platform

through the channel institutional @Popularenlinea, which responds to

the wide-ranging digital interaction we keep with our public and our

permanent priority to remain at the clients’ side wherever they may

be.

We seek to capture the perception that customers have of the institution, through the set-up of all the channels that are required to listen to their voices.

36 37

“I have gained the affection of the people in my

neighborhood because I am an authentic person. I don’t

feel embarrassed to talk, laugh or show my concern on

issues and matters affecting my surroundings.

That makes people feel at ease in my small grocery-store.

The same is true for Popular: they are authentic. When I

arrive at Popular I feel as if I’ve arrived at my living room,

at my bedroom: I’m in my own home.”

m r s . i s a B e L t a V e r a s V a r G a s H O u S E w i F E a N d g r O C E r y - S T O r E O w N E rN a v a r r E T E , P r O v i N C E O F S a N T i a g O d O M i N i C a N r E P u B l i C

38 39

40 41

ourselves of people who really care, who really worry about your

progress. I will also take my grandchildren there …..

And even my Mother!

I always knew this was my bank. When I arrive at Popular I feel as if

I’ve arrived at my living room, at my bedroom: I’m in my own home”.

They are good, kind people. They all know me and make me feel

special.

I have gained the affection of the people in my neighborhood

because I am an authentic person. I don’t feel embarrassed to talk,

laugh or show my concern on issues and matters affecting my

surroundings. That makes people feel at ease in my small grocery-

store. The same is true for Popular: they are authentic.

What would be my definition of quality service?

I think that quality service is everything that goes on at the bank from

the moment I arrive there until I leave the premises. Those people

know me; they have been to my home at important moments of my

life; like when my husband died. That speaks loud and clear about

quality service.”

Learn more about Mrs. Taveras’ success story at www.popularenlinea.com

l i k E T H O u S a N d S O F O T H E r d O M i N i C a N C i T i z E N S , i S a B E l T a v E r a S S O u g H T a B E T T E r l i F E F O r H E r S E l F a B r O a d B y M i g r a T i N g T O N E w y O r k . a C H a r i S M a T i C S T r u g g l E r , T H i S w O M a N P E r C E i v E S S u C C E S S a S a N a T u r a l r E S u l T O F H a r d w O r k

40 41

“My relationship with Popular began around

the year 1985. I was still living in New York;

I was running a small business there at the

time, and was also saving. The products I

have access to at the bank have allowed

me to accomplish a lot of things. I have now

retired to my hometown, Navarrete, where I

own a home, a grocery-store and my credit

cards. I feel very happy.

My children also know the bank; I have

taught them how important it is to surround

42 4343

Valuing Service The measuring and monitoring of service pledges is fundamental and a

way of doing this is through the Service Measuring Module available at

branch offices, which allows customers to register the level of satisfaction

experienced during their interaction with our face-to-face services staff.

We also conduct surveys amongst our internal and external customers in

order to confirm levels of compliance to guidelines and procedures and

to measure service satisfaction; these are tools that enable us to identify

opportunities for improving our operational processes.

In October 2011, International Service Month, we launched Popular

Service Web Page. It is a Site where we hold discussions on the

aspects of this business which go beyond the scope of financial

activities; we promote in-house training and the exchange of ideas and

acknowledgements associated to the quality of service that we provide

our customers.

We have launched Popular Web Page Service, a space where we hold discussions on the aspects of this business that go beyond financial activities; we promote in-house training and the exchange of ideas and acknowledgements associated to quality of service.

Popular Service Web Page also allows us to capture the transforming

ideas of Popular’s folks, which afterwards become innovative products

and services.

Our Service Quality Manual sets forth the role that is to be played by

each one of Popular’s members in this competition for excellence,

which happens to be the commitment assumed by the organization for

complying with its institutional service standards. In essence, our Manual

introduces our five service principles: Reliability, Efficiency, Commitment,

Courtesy and Anticipation, all of which determine the standards that

must be met by our staff, our processes, our products and our services.

Furthermore, the Service Quality Manual compiles the ten rules of

excellence in a decalogue format, comprising the institutional values as

well as service guidelines and professional ethics.

44 45

“Hylsa is a dream that became a reality little by little: we began with a small business located at Luperón Avenue, which is now our main office. The acquisition of those premises, and all our other business sites, were made possible with the support of Banco Popular. We have always felt the bank’s presence. They have trusted me through each and every step that I have taken; they have relied on by background, my credit records and my sense of commitment.”

m r . J O r G e F r a n c i s c O “ t U t O ” H e r r e r a P r E S i d E N T O F H y l S a S . a , i M P O r T E r a N d d i S T r i B u T O r O F T i r E S , B a T T E r i E S a N d l u B r i C a N T S S a N T O d O M i N g O , d O M i N i C a N r E P u B l i C

44 45

46 47

our main office. The acquisition of those premises, and all our other

business sites, was made possible with the support of Banco Popular.

At all times…as of the moment Hylsa became a reality, my family

and I have always felt the presence of Popular among us. As I have

said before, they have trusted me through each and every step that

I have taken; they have relied on by background, my credit records

and my sense of commitment: I have taken five-year loans that I

have paid back in two years….and that is very gratifying for me …

it also pleases the bank. It is a relationship of mutual trust”. When

I arrive at the bank’s offices I arrive at my home. The consideration

and confidence they have for my work are a great support. I am

personally grateful for the service and courtesy I receive at Popular.

The people that work with me know their job well; that confidence is

transmitted to our clients. I see the same at the bank: the training of

its staff is an important matter for them, they keep their employees

abreast of the latest service trends so that they are able to provide

clients with the advice and counseling they require, in the best

possible manner. For a business endeavor to be successful one must

invest in it ….and one must invest in its staff resources as well…

To accomplish business success one must first rely on family support.

That has been my case: I have always had the support of my family:

my children Christian and Jovanny, who are at my side thriving our

business; I have also relied on the support provided by the Popular

family.”

Learn more about Mr. Herrera’s success story at www.popularenlinea.com

T H E H y l S a g r O u P i S a F a M i ly a C H i E v E M E N T w H i C H w a S i N i T i a T E d 3 0 y E a r S a g O . a l T H O u g H i T i S P r E S E N T ly P O S i T i O N E d a S T H E l E a d E r w i T H i N i T S M a r k E T, i T C O N T i N u E S - a S a F a T H E r w O u l d w i T H H i S O w N C H i l d r E N - i N H i S E F F O r T T O i N S T i l l a C O r P O r a T E M O d E l B a S E d O N P u r P O S E F u l C O M M i T M E N T T O q u a l i T y a N d S E r v i C E

46 47

“Hylsa, S.A. has been servicing clients for

almost 30 years. They come to us looking for

a solution to their vehicle problems: a tire,

batteries, lubricants; I believe they leave our

premise with more than that though; I believe

they also gain a friend, an adviser. That is the

type of consideration that I also receive from

my bank.

Popular has been present in each one of my

projects and those of my family. This is a

family business, just like Popular. Hylsa is a

dream that became a reality little by little:

we began with a small business located

at Luperón Avenue, which continues to be

49

“Although different, we all share something in common: …a bank we can always rely on

each and every moment of our lives.” This slogan is reflected in the level of confidence

entrusted to us throughout 2011 by 2 million 700 thousand clients who sought solutions

to a wide range of financial needs at Banco Popular Dominicano.

Personal, Mortgage and Vehicle loansMany Dominican families were able to find at Popular the most diverse financing options

in the market.

During 2011 the Gross Consumer Loan Portfolio, excluding credit cards, reached a growth

of RD$1,394 million, achieving 29.8% participation in comparison with the entire cluster of

commercial banks and savings & loans associations.

Within the Personal Loans modalities, consumers had the opportunity to obtain financing

with a 90-day grace period before commencing payment installments, as well as the Préstamo

de Vehículo Joven, which offers special conditions for that segment of the population.

We began the year by boosting the Extracrédito features, through the introduction of the

school tuition payment option, which was advertised in various educational centers

throughout the country. A wide variety of new promotions were also introduced for clients

who applied for Extracrédito loans during the months of May, July and August or at spe-

cific occasions such as Mothers Day, Fathers Day and summer vacations.

P r o d u c t s a n d s e r V i c e s

By placing our clients at the center of our business scope, we have achieved new standards of customer satisfaction with regards to the services we provide, thus improving our overall outcome.

48

50 51

In order to ensure our customers transformation experience we will continue to realign our strategies -as pertains to staff, products and channels- to a vision that places the client at the center of business.

52 53

During the fifth venture of Autoferia Popular (Auto Fair) held in December 2011, loans were

approved for an amount exceeding RD$1,476 million, thereby providing support –primar-

ily- to corporations offering special deals for young adults and families.

The advertisement campaign entitled “Your ideal car; only found at Autoferia Popular”,

proved to be -once again- the auto event with greatest impact on the market. Information

on this event was disseminated through social networks, radio, television and the written

press; as well as at the web site www.autoferiapopular.com.do.

Approximately 107,000 clients were able to make their dreams come true last year by

obtaining a consumer’s Loan from Popular. On another note, we continued to provide the

best financing options for our clients who wished to purchase their own homes, apart-

ments, a plot of land or refurbish an existing property.

We offered the lowest real estate mortgage rates for properties with a value of up to RD$5

million, in accordance with the measure taken by Banco Central (national Central Bank) to

release 1.4% of the statutory reserve rations for financial institutions, with a view to stimu-

lating the national real estate market.

Adding to this category of Mortgage Loans we continued with the development of our

loyalty program, which rewards and acknowledges the real estate advisers and sales repre-

sentatives at construction firms, for their referrals to Banco Popular.

All the strategic and business actions developed throughout 2011 have contributed toward

achieving a substantial increment of RD$2,257million in respect to the year 2010, and

enabled 2,443 families to acquire a home of their own. Consequently, the Mortgage Loans

Portfolio reached a 25.4% participation in 2011 thus reinforcing Popular’s market leader-

ship position.

Regarding vehicle loans, a total of 1,880 clients purchased the vehicle of their dreams last

year, through the new financing options that have been made available.

COMMErCial lOaNS A series of strategic actions were implemented during 2011, with an aim to

continue providing a portfolio of feasible solutions to the financial needs of

Small and Medium Businesses through our financing sources, which include:

Commercial Loans, Lines of Credit and the Extracuentas (Extra Accounts). To

this end, we launched a Commercial Loan with Mortgage Guarantee in both

RD$ pesos and US dollars, with an added benefit that allows our clients to con-

veniently pay the insurance premium of the property purchased with the loan,

as part of their monthly loan installments.

With respect to the Credit Placement Portfolio in RD$ Pesos, it is important to

point out that the level of growth achieved surpassed the 2010 closing figures

by RD$5,750 million; thus achieving a market participation of 28.2%. Likewise,

the growth of the Credit Placement Portfolio in US Dollars exceeded the prior

year’s portfolio by US$161 million.

CrEdiT aNd dEBiT CardS Banco Popular is the main issuer of MasterCard and Visa Credit Cards, as well as

Debit Cards within the Dominican Republic.

Several initiatives were implemented during 2011 with an aiming to expand

the scope of benefits currently available to our clients through the use of

Popular Credit and Debit Cards. Among these initiatives we can highlight the

creation of the Benefits Plan, a bargain and discount Club that operates at over

260 affiliated shops and commercial localities, for the benefit of customers who

pay for goods and services with a Popular Card.

rEMiTTaNCES in rd$ millions

74,810

62,000

61,6952009

2010

2011

COMMErCial lOaNSin rd$ millions

2009

2010

201177,130

64,522

51,258

55

The important aspect of our financial achievements at the end of each year, lies in seeing how these become the personal, family and professional success stories of our clientele.

56 57

On another note, as an additional option within the Programa de Millas Popular,

a wide variety of new exchange features has been specifically designed and

implemented for our cardholders, with the purpose of expanding the range of

clients who use this program. These new exchange modalities include tickets

for performances, concerts and sports events; as well as gift certificates and

preventive health plans. The initiative also introduced a reduction on the mini-

mum amount of miles required to apply for benefits, thus positioning Programa

de Millas Popular as the leading loyalty program within its market.

In addition to the above, numerous promotions were carried out at specific

periods during the past year to triplicate the amount of miles awarded for each

purchase. This strategy resulted in a total of 33,231 applications from clients

who exchanged their miles for a wide variety of benefits, resulting in a 52%

growth with respect to the levels achieved in 2010.

Both the creation of the Benefits Plan, as well as the expansion of the Programa

de Millas Popular triggered a growth on the billings of Banco Popular Cards,

which was far superior to the average market level, as per reports disclosed by

Visa and MasterCard.

During 2011, the market leadership of Banco Popular within the local Card

markets was made evident by the nature of its products given that, in addition

to offering conventional card options (Classic, Gold and Platinum), it now

includes other exclusive products such as MasterCard Black. Within the prod-

ucts portfolio we can also find affiliated brand cards which meet our every

need. Among the most outstanding ones we could mention Visa IKEA,

MasterCard Continental, MasterCard Seguros Universal and Avanza. New alter-

natives will be proposed during 2012, to continue this trend that aims to provide each cli-

ent with a Popular solution.

These initiatives are supported by important investments that were initiated during the

prior fiscal year, including important changes in the technological systems used for the

processing of credit and debit cards. Amongst the improvements made available through

these investments we can highlight the first emission on the market of cards with EMV chip

technology, to be carried out during 2012, along with other features and functionalities

that will become available to all our cardholders.

SaviNgSDuring 2011 the savings portfolio experienced a growth of RD$2,018 million with respect

to year 2010, while the savings portfolio in US dollars registered a significant increase, with

a rise of US$113.7 million with respect to the prior year.

The amount of Popular Savings Accounts rose by 171,650, when compared to year 2010,

representing 34.7% of the overall savings market within the Dominican financial system.

During the prior fiscal year a total of 1.16 million clients entrusted their savings to our insti-

tution. The amounts of savings accumulated by our clients through the various saving

products and financial certificates available at our institution resulted in a total of RD$4,813

interest payment.

The success of our business model resides in the 2.7 million clients who relied on us during 2011. Popular holds a 33% participation in the Dominican banking market with respect to volume of assets.

CONSuMEr lOaNS in rd$ millions

27,930

25,474

23,2362009

2010

2011

58 5959

A total of 1.16 million clients built-up their savings through the different products offered by Popular. The interest Payment on these deposits amounted to RD$ 4,813 million.

60 61

Since its inception, Popular has been known for helping its clients achieve their personal

goals through the application of best practices in savings. In this regard, a promotional

campaign under the slogan “¿Cuál es la ilusión de tu vida?” (What is your lifelong dream?),

was launched as a 2011 initiative, to reward our clients’ saving efforts. The campaign was

primarily addressed to all our depositors.

The campaign was designed on the basis of a previous research specifically conducted to

learn about the dreams that motivate the practice of saving among the Dominican public.

This market research rendered a list of twenty major dreams that later became the twenty

prizes that were awarded (on a weekly basis) to those partaking in the promotion. The par-

ticipation of clients comprised the receipt of an electronic ticket for each increment reflect-

ed in their savings account of RD$300 (or US$10). Awards given as Weekly Prizes and at the

Big Draw, included trips, ocean cruises, school tuition, one-year fuel supply and/or super-

market purchases and home repairs, among other prizes, in addition to three big final

prizes: an apartment, a Kia Picanto vehicle and a Dodge Durango SUV.

This promotional campaign was backed by wide media coverage that included live presen-

tations in television programs as well as the online support of the social network of our

family of “Ilusionados” (Dreamers), which was a valuable advertising source that facilitated

active dissemination of the campaign.

Likewise, Popular Savings Accounts continued to advocate the message “Ahorrar nos hace

bien" (Saving is Good for All) that seeks to raise awareness amongst the public on a matter

as crucial as environmental preservation, which is vital, not only for present and future gen-

erations, but for the entire planet as well.

Lastly, in trying to provide our clients with timely solutions, we have developed Ahorro

Especial (Special Savings), which is a new product that offers an interest rate that rises in

proportion to each increment reflected in the balance of the savings account. This elec-

tronic account, without check books or debit cards, operates through any of

our channels: namely, Red Móvil Popular: Internet Banking, Móvil Banking,

Telebanco Popular and tPago.

CHildrEN'S SaviNgS aCCOuNTSThe year 2011 was filled with visits to educational centers and attendance to the

activities carried out by the Club del Ahorro Infantil (Children’s Savings Club).

Once again, we visited school premises and summer camps throughout the

country, in support of the encouragement for saving conveyed in our cam-

paign “Ahorrar nos hace bien” (Saving is Good for All); educational lectures were

offered to help children learn about the planning, consistency and responsibil-

ity qualities that they will need in order to attain their goals. Furthermore, these

lectures raised their awareness on the importance of cultivating the habit of

economic saving, as well as the practice of environmental preservation. These

activities allowed us to reach out to more than 4,250 students, at approximate-

ly 50 educational centers and summer camps.

ENTirE agrEEMENT - PrOduCTS aNd SErviCESDuring 2011 we introduced the implementation of an Entire Agreement for

Products and Services, which provides added convenience for our clients. Under

the terms of this agreement, our clients will be able to access a wide variety of

products and services with a single signature and without the need to visit our

offices or subscribe new agreements each time they wish to acquire one of our

products and/or services. This agreement encompasses Checking and Savings

Accounts; Credit Cards; Extracrédito (Extra Credit) and Electronic Channels.

SaviNgS dEPOSiTSin rd$ millions

2009

2010

201167,093

59,557

51,500

MOrTgagE lOaNS in rd$ millions

21,478

19,221

14,8622009

2010

2011

62 63

During the last year 2,443 families were able to acquire a home of their own through mortgage loans; 1,880 clients purchased the vehicle of their dreams with financing from Popular; and another 107,000 customers were able to meet a wide range of other essential needs by opting for a personal loan.

64 65

POPular MOBilE NETwOrkDuring 2011 a new element was incorporated to the technological platform that supports

the banking services of our institution, namely Popular Mobile Network. The new feature

allows our clients’ access to internet banking through their mobile telephones. Customers

can now conduct payment transactions and make consultations on required banking ser-

vices directly online and from any location. Access allows consultation on Checking

Account balance and latest transactions; Savings Accounts; Credit Cards; Loans and

Certificates; Credit Card and Third Party payments; Express Payments and Transfers between

the client’s own accounts; as well as the adding or deleting of beneficiaries.

This new service tool is an additional channel by which to process transactions in a secure,

expeditious and trouble-free manner, from a Smartphone unit with a 3G data plan. The

introduction of this new feature strengthens the use of Electronic Channels as opposed to

the utilization of cash and checks. As regards traditional access through the Internet

Banking feature, a total of 7.11 transactions were conducted through our Web platform

during 2011.

Moreover, during the last year new functions were added to the mobile payment system

tPago, such as Payment of Cards and Loans and the convenience of issuing cash advances

on a Popular Credit Card. This tool further expanded its service to clients of both Orange

and Viva telephone companies, so as to provide them with the opportunity to benefit from

the convenience of making payments through their mobile telephones. Likewise, with the

objective of motivating the use of the tPago feature, Popular carried out three promotional

campaigns amongst its clients, whereby –upon making payments at one of the sites affili-

ated to the campaign- clients were awarded with a free of charge similar service for a per-

son of their choice.

On another note, the network of Automatic Tellers continued expanding, reaching a total

of 682 units, thus providing the most ample coverage available within the financial nation’s

system. This achievement allowed the conduct of 30.2 million cash withdrawals during the

prior year, more than 10.9 million consultations and the purchase of telephone calling cards

for an amount that surpassed 1.4 million.

BaNCaSEgurOSThe services provided by Banseguros include Prevision Popular (Popular Safeguard), a per-

sonal accident insurance; Seguro de Vida Popular (Popular Life Insurance), allowing pay-

ment installments that are more convenient than those offered by traditional insurance

schemes; Complemento Hospitalario (Complementary Hospital Expenses) which covers

hospitalization costs; Hogar Seguro (Safe Home), aimed at addressing consequential dam-

age of other typical household risks; Ultimos Gastos Plus (Final Expenditures Plus), offering

the most complete funeral service; Renta Educativa (Educational Endowment), a life insur-

ance where the amount insured comprises monthly installments toward the educational

expenses of the beneficiaries; and Seguro Goldlife (Goldlife Insurance), a life insurance

policy with savings in US currency, by which the client selects the amount of coverage, the

premium and the number of years in which the payment is to be made. In addition to the

above options, there is a wide array of products that cover the various portfolios managed

by our bank, thus protecting our clients as well as the Institution.

During the prior fiscal period we achieved a 22% growth on the sale of new policies,

in comparison to year 2010. In addition to the above, we also launched Garantía Alimenticia

(Nutritional Guarantee) an insurance policy where the amount insured is comprised of

monthly installments intended toward the beneficiary’s family basket; the insurance Gold

Assist, designed to provide basic home services for both emergencies and coordination of

services. For added convenience, we have also provided a link to Universal Xpress at our

Internet Site (www.popularenlia.com), which will allow our clients’ direct and immediate

access to Bancaseguros products.

A total of 33,231 exchange transactions were registered through the Programa de Millas Popular. New cardholders procured products and services amounting to 29.6 million through the use of their new plastic currency.

66 67

Success Stories: Our allies

66 67

69

SOCially rESPONSiBlEBanco Popular Dominicano is part of Dominican network for UN Global Pact and a member

of its Steering Committee since 2007. In 2011 the institution received an official acknowl-

edgment for its contributions as a socially responsible corporation. We are competitive and

efficient both in terms of business profitability as well as in terms of social responsibility.

Through these Corporate Social Responsibility programs (CSR), our entity is duly aligned

with the Millennium Development Goals, primarily as it pertains to education, environmen-

tal sustainability, reduction of infant mortality and the improvement of maternal health.

Our social investment strategy is aimed toward contributing to enhance the well-being of

society, to improve the living conditions of our communities and to preserve the environ-

ment.

Popular’s CSR philosophy transcends philanthropy, given that it is based on the execution

of long-term sustainable programs that contribute to improve the quality of living of the

recipient communities. These programs rest on five main pillars: Environment, Education,

Health, Social Community Work and Arts & Culture.

More than 900 families and institutions received support from our bank last year, within the

scope of activities carried out by Popular under its corporate social responsibility pro-

gram.

C O r P O r a T E r E S P O N S i B i l i T y

Popular’s Corporate Social Responsibility philosophy rests on five main pillars: Environment, Education, Health, Social Community Work and Arts & Culture. Our financial institution believes that corporations and communities can only grow within an environment that is both economically and socially favorable.

68

70 71

m r . s i m e Ó n a B r e U d i r E C T O r O F P l a N S i E r r a ,S a N j O S é d E l a S M a T a S , d O M i N i C a N r E P u B l i C

70 71

“The mountain range represents life for our nation.

Its mission is to produce; and our people must learn

to make use of the soil without conflict. That is part of

what we teach at the training centers. The residents of

the mountain range have become increasingly aware of

that fact. That environmental awareness should extend

to the rest of the country. It should reach the valley. The

mountain range represents the blood of the Cibao region.”

72 73

We produce 2.3 million plants per year here, divided into three timber species; others for bird habitat purposes; and the guava to provide the shadow conditions required by coffee plantations. Today, thanks to the forest coverage achieved through this reforestation program, water resources are available and the cycle continues: water falls on the trees, reaches down into the deep roots and arrives at the under-ground lakes. If it leaves San José de las Matas in the morning, it can literally reach Montecristy on the same day! It’s magic!The mountain range represents life for our nation. Its mission is to pro-duce and our people must learn to make use of the soil without con-flict: to plant coffee in the appropriate area, to plant plantains in the appropriate area, etcetera. This is part of what we teach at the training centers; centers that owe much of their existence to the bank”The implementation of this reforestation project further serves to protect the watersheds of the rivers Bao and Yaque del Norte. Families who had migrated have now returned to what has become a reliable way to make a living. Thousands of them plant coffee and that helps them improve their income. At the end of the day there are benefits for both the hill and the valley …is a win-win scenario…”“Popular is more than just a socially responsible corporation. It is an institution with true social awareness. It is an attitude that goes far beyond commitment or observance of environmental coexistence. As I see it, this environmental awareness should be embraced by the entire nation. It should reach the valley. The residents of the mountain range have become increasingly aware of that reality…it is not a fashion

trend. The mountain range represents the blood of the Cibao Region”.

Learn more about Mr. Abreu’s success story at www.popularenlinea.com

P l a N S i E r r a ( M O u N T a i N r a N g E P l a N ) i S T H E S i N g l E M O S T i M P O r T a N T N a T i O N a l i N i T i a T i v E i N T H E F i E l d O F E N v i r O N M E N T a l S u S T a i N a B i l i T y. S i N C E i T S C O M M E N C E M E N T, B a N C O P O P u l a r d O M i N i C a N O H a S B E E N C O M M i T T E d T O P r O v i d E i T S F u l l S u P P O r T T O T H i S E N d E a v O r

72 73

“Plan Sierra is the single most important national initiative in the field of environmental sustainability. It is a clear example of how we must work throughout every stratum and from inside out, if we are to reach harmonic progress within society. In the past, what was observed by Plan Sierra was basically a slash and burn culture. Today the training acquired by the resi-dents of the mountain range has sensitized them with respect to ecosystem dynamics.Since the initiation of Plan Sierra, Banco Popular Dominicano assumed the commit-ment to support the initiative and continues to do so in a permanent and consistent man-ner. No other source has been as supportive as Popular; because it’s not just about orga-nizing a one day planting activity, it is not about exposure. It’s about establishing plan-tations; it’s about reinstating the rights of the mountain range.

74 75

This vocation to service society is transmitted to all levels within the organization, com-

prising the participation of executives as well as employees in the CSR programs imple-

mented throughout the year, with the aim to foster their interest in corporate volunteer-

ing endeavors.

As a result, during 2001 nearly 1,900 Popular participants devoted more than 15,800 hours

of their personal time to corporate social responsibility activities, restoring school, partici-

pating in beach clean-ups and planting of trees; or partaking in educational lectures and

cultural venues. To this regard, the organization has approached the year 2012 with the

motto “We are more than a financial business. We touch people’s lives”, with the strong con-

viction that –to a great extent– we stamp our mark in the economic and social develop-

ment process of the nation.

PrOMOTiNg ENvirONMENTal SuSTaiNaBiliTy The environmental programs carried out by our organization are the emblem of its CSR

policy and further promote the sustainable use and preservation of natural resources. Their

objective is to generate a high level of awareness within the Dominican society, and to

foster a more respectful and friendly behavior with the environment.

For the second year, Banco Popular Dominicano engaged thousands of students from the

cities of Santo Domingo and Santiago in its Educational Program “I Recycle!” which focuses

on the recycling of paper and the introduction amongst students to a 3R sustainability

culture: namely, Reduction, Reutilization and Recycling.

Over 200 educational centers implemented several of the activities comprised in the pro-

gram, amongst them, the paper recycling competition which had a successful impact on

more than 475,000 per day, including students, personnel, friends and families.

The institution carries out this program in collaboration with Desarrollo Agropecuario y

Forestal, Inc. – CEDAF (Center for the Development of Agriculture and Forestry), the Moldosa

recycling company, and the City Councils of Santiago de los Caballeros, amongst others.

To this regard the bank subscribed an agreement with Moldosa, for developing a culture

within the organization that is both environmentally friendly and eco-efficient in the use of

paper resources. All the paper resources utilized by Popular for its operational activities are

recycled by Moldosa and are subsequently made into products of commercial value (egg

carton trays, containers and coasters,) among other items. This initiative is encompassed

within the Blue Citizen Eco-efficient Program, which aims to accomplish significant and

measurable changes in the behavior or our human resources, for the benefit of our institu-

tion as well as for our society and its surroundings.

By the same token, Popular has continued to implement its environmental programs in

close collaboration with its employees, who have participated in various reforestation proj-

ects. The institution has also maintained its financial and human contribution to Plan Sierra,

which is the most comprehensible effort that is being carried out in the country toward the

preservation of trees and the protection of watersheds at main rivers and streams in the

nation. Two reforestation activities were held with the attendance of hundreds of employees

from the entire Grupo Popular. Since our institution began its support to Plan Sierra over two

decades ago, we have helped to plant more than 238,000 indigenous trees. Furthermore,

during 2011 Popular expanded its reforestation efforts to the Eastern region of the country

with a planting activity held in May last year at Laguna de Mallén (Mallen Lake), one of the

most important wildlife sanctuaries in the Province of San Pedro de Macorís.

This vocation to service society is transmitted to all levels within the institution with the objective of promoting corporate volunteering. Consequently, both executives and employees partake in the various Corporate Social Responsibility Programs carried out by Popular.

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m r s . e P i F a n i a G e r m Á n d i r E C T O r a N d P r O F E S S O r P a S O C i B a O E l E M E N T a r y S C H O O l H a T O M a y O r d E l r E y, d O M i N i C a N r E P u B l i C

76 77

“To hold in one’s own hand the possibility to change

or improve the lives of others is an experience I cannot

describe. I have been a teacher for thirty years and

thus far, teaching someone to read still fills my heart

with emotion. Education is vital to our nation. I truly

believe that to work for the communities is to work for

the nation. As long as there are institutions working in

support of education, the future will be feasible.”

78 79

thirty years and thus far, teaching someone to read still fills my heart

with emotion. Education is vital to our nation.

These school premises have not always been so pleasant. At the

beginning, we used to teach at a rented location. In the year 1994 we

got this plot of land and since then up until now, this structure has

evolved progressively to what we have today. Thanks to Banco Popular,

which arrived here in 2008, things have changed tremendously: the

Center is clean, tidy and well cared for.

Through the work of a voluntary task force delivered in two phases,

Popular has provided us with a kitchen, administrative offices,

bathrooms, a fringe fence, gardens, a cistern and several other things.

Adding to the above, Banco Popular carried out a clean-up project

that included the internal and external painting of the entire premises,

which was personally carried-out by staff members of the institution.

The roof is no longer leaking and our small school is a place where

young children feel inspired: we have one of the best school attendance

and punctuality records within our region.

The entire community appreciates and supports the change. Parents,

along with the entire team of teachers, are well aware of the back-up

and follow-up provided by the bank. They arrived at Paso Cibao and

continue to come. They have not neglected us.

I truly believe that to work for the communities is to work for the

entire nation. As long as there are institutions working in support of

education, the future will be feasible”.

Learn more about Mrs. Germán success story at www.popularenlinea.com

T H E r u r a l S C H O O l r E S T O r a T i O N P r O g r a M ( r S r P ) w a S i N i T i a T E d i N T H E y E a r 2 0 0 5 . a T P r E S E N T, O v E r T w E N T y r u r a l S C H O O l S a N d 4 , 3 0 0 S T u d E N T S T H r O u g H O u T T H E N a T i O N B E N E F i T F r O M T H i S P r O g r a M

78 79

“Education is vital for our nation, but it is a

job that must begin at the home. A job that

is substantially complemented by teachers,

when we assume the many roles entailed in

being an educator…At the end of the day,

students perceive us as their friends, their

advisors. The task of an educator never ends.

Some of us are born wanting to become

teachers, but in 1981 I did not even dream

with studying Education. I wanted to work the

land; I wished to be an agronomist. Later on,

as life evolved, I entered Escuela Normal de

Profesores (Normal Teachers School) and took

quite a liking to teaching.

To hold in one’s hand the possibility to change

or improve the lives of others is an experience

I cannot describe. I have been a teacher for

80 81

wOrkiNg iN SuPPOrT OF EduCaTiONWe deploy all our efforts in support of education at the elementary, intermediate and high

school levels, through the implementation of programs that promote values, morals and

ethics for the benefit of thousands of students and hundreds of teachers.

During the prior year, Popular continued to implement is Rural School Restoration Program

(RSRP), with the participation of employees from our institution who carried out the tasks

required for the renovation of five additional schools, within a group of educational centers

comprised of over twenty schools.

The schools included in the 2011 PRER activities were provided with diverse computer

equipment as well as assortments of school supplies. Moreover, a series of fraternal meet-

ings and educational lectures were held with the aim to introduce young children to a

comprehensive educational system and a values-based life model. These encounters were

organized and carried out under the leadership of Popular office managers, with the par-

ticipation of approximately 4,300 students who benefited through this institutional pro-

gram.

The institution comes into close contact with the educational community through the ini-

tiatives that are carried out by its program Adopt a Future Teacher! - This contributes to the

training of more than 20 young adults with a vocation for teaching.

The initiative provides underprivileged young men and women of high academic standing

During the International Coastal Clean-up Day held on 17 September last year, hundreds of

Popular employees participated in the beach clean-up tasks carried out in Playa Linda,

Haina, which is located within the premises of the Itabo Industrial Park. Over 3.5 tons of lit-

ter was collected during this clean-up campaign.

On the other hand, Popular sponsored the Blue Economy venture, which is an economic

sustainability project brought to the country by Fundación Universitaria Dominicana

Pedro Henríquez Ureña -PRO-UNPHU (Dominican University Foundation Pedro Henríquez

Ureña PRO-UNPHU). The Blue Economy concept was created by Mr. Günter Pauli who

delivered a lecture at the Magna Hall Conference Room at UNPHU. Mr. Pauli advocates for

the creation of business endeavors based on development strategies that are environ-

mentally friendly.

In addition, and within the scope of its program “Educando con Valores” (Values-based

Education), Popular held various lectures during 2011, such as the one delivered in the

month of November at the city of Dajabón. A lecture entitled “Starting an ethical and envi-

ronmentally Sustainable Life” was delivered at the request of Asociación de Dajaboneros

Ausentes. Likewise, the theme of “Eco-efficiency Energy, a Road to Environmental

Sustainability” was the subject of a lecture delivered at the bank’s Engineering Department

as part in commemoration of Efficiency Day.

Our pursuit to raise environmental awareness was displayed last May during the second

Walk for Water venture, gathering more than 9,700 participants who donated their walk

for the construction of new aqueducts in the Southern region of the country. The non-

profit organizations FUNDASEP and Sur Futuro received the funds collected for the pur-

pose of bringing safe and clean drinking water to new families in underprivileged com-

munities. To date, two aqueducts have been completed and are currently benefitting

various communities located in the provinces of Elías Piña, San Juan de la Maguana and

Azua.

During 2011, nearly 1,900 members of Popular devoted more than 15,800 hours to the implementation of 84 corporate social responsibility endeavors that included: restoration of rural schools, beach and coastal clean-up and reforestation activities; as well as participation in educational lectures and cultural venues.

82 8383

D O c t O r L U i s r i V e r a , m . D . P E r i N a T O l O g i S T P E d i a T r i C i a NC H i E F, P E r i N a T O l O g y u N i TM a T E r N i T y H O S P i T a l – N u E S T r a S E ñ O r a d E l a a l T a g r a C i aS a N T O d O M i N g O , d O M i N i C a N r E P u B l i C

82

“I am passionate about medicine, about its miracles

and about research as well. The work we perform here

is a job that is renewed each and every day. We know

we can contribute to improve the society in which we

live in and that fills us with passion.”

84 85

towards making it better, towards making it viable and towards

preserving it. We are leaving in a time that requires ever-increasing

social responsibility awareness, a clear commitment. In the case of

Banco Popular and the Maternity Nuestra Señora de la Altagracia,

what we see is a marriage without divorce; a close, solid association

that will never end.

Thanks to Popular’s presence and to its help, this space is gradually

becoming a full- fledged health center; it grows both as an

infrastructure and as a medical facility and all this has all been made

possible through Popular’s comprehensive social awareness.

Popular is the most precise definition of what a socially responsible

corporation should be. It is well aware that its role is to serve, and that

is precisely what it does. It does it in the same fashion that we do it:

with closeness and total dedication.

Commitment, service, leadership, contribution…are the terms I

identify Banco Popular with. But furthermore, I identify it with the

70% reduction of infant mortality rates of children up to one year

of age; and its effective efforts toward eliminating the possibility

of blindness in newborn children… with the happiness of faces of

hundreds, thousands of mothers…”

Learn more about Dr. Rivera’s success story at www.popularenlinea.com

i N F a N T M O r T a l i T y ( u P T O T H E 2 8 T d a y O F l i F E ) a T M a T E r N i T y H O S P i T a l N u E S T r a S E ñ O r a d E l a a l T a g r a C i a H a S B E E N r E d u C E d B y 5 0 P E r C E N T, w i T H r E S P E C T T O N a T i O N w i d E r a T E S , T H r O u g H T H E a i d O F i N C u B a T O r S a N d O T H E r E q u i P M E N T d O N a T E d B y P O P u l a r

84 85

“No other moment in life is as critical for a

human being, in terms of life (or lack thereof),

than the moment of birth. I am passionate

about medicine, its miracles and about

research as well. The work we perform here

is a job that is renewed each and every day.

We know we can contribute to improve the

society in which we live in and that fills us

with passion. The motivation must exist

within us to come to this premises every day

and leave a great part of our lives, our energy

and our love within its walls”.

A corporation or an institution is a part

of society and, as such, should contribute

86 87

with the opportunity to obtain a high quality education, and subsequently contribute to

the improvement of the Dominican education system.

Moreover, the bank’s initiatives rely on programs that promote and support academic

excellence, such as the ones conducted by institutions that include Universidad Central del

Este (Eastern Central University), el Instituto Politécnico Loyola (Loyola Polytechnic Institute)

and Instituto Especializado de Estudios Superiores Loyola, (Loyola Institute of Specialized

Studies).

Popular also sponsors the annual APRENDO Seminar, which is specially delivered for the

benefit of teachers by EDUCA, a non-profit organization that in 2011 addressed the theme

of full-time school programs. The event was attended by 100 teachers from the educa-

tional centers sponsored by Popular, as well as over 5,000 additional teachers from other

schools around the country.

During the prior fiscal year, these programs were further complemented by additional dona-

tions amounting to RD$2.0 million, which were delivered to ten other institutions dedicated

to promoting the academic, emotional and spiritual development of our population.

iNvESTiNg iN THE NaTiON’S HEalTHIn regards to health services programs Popular has established a goal to eradicate infant

mortality and to contribute to the overall wellbeing of the Dominican family. Along those

lines, it promotes initiatives that aim to improve the operational conditions of major mater-

nity hospitals in the country.

Within the framework of these health services initiatives, during 2011 Popular continued to

implement its donations policy by delivering hospital supplies and specialized equipment

for the treatment of high-risk newborns. These contributions benefit patients attended at

Patronato de Ayuda al Recién Nacido (Trustees for Assistance to the Newborn) at Hospital

Regional Universitario José María Cabral (Regional University Hospital José María Cabral)

located in Santiago.

Our institution also made contributions to the breast cancer prevention program “Hoy es

el mejor momento” (Today is the best time), by donating various equipment to the hospital

Maternidad Nuestra Señora de la Altagracia donations included a breast cancer and mam-

mography prevention unit.

A RD$300,000 contribution was also delivered to Fundación del Dolor – FUNDOLOR (Pain

Foundation), in support of their actions toward ensuring the wellbeing of terminal cancer

patients.

BETTiNg ON COMMuNiTy dEvElOPMENT In the field of community social services, and within its corporate social responsibility pro-

gram, the bank promotes the sustainable development of the communities in which it has

a presence. Our financial institution believes that corporations and communities can only

grow within an environment that is both economically and socially favorable. Toward this

end, the bank continues to work in the transfer of skills, knowledge and economic invest-

ment that can bring about the long-term sustainability of its associates.

Under this premise, the bank continued with its Microcredit Program for Entrepreneurs, an

initiative introduced in 2004, with the objective of providing financial resources to low-

income individuals and families, in an effort to assist them in promoting socially sustainable

During 2011 the Organization of the United Nations awarded Banco Popular with an official acknowledgement for its contributions as a socially responsible corporation. We are competitive and efficient both in terms of business profitability as well as in terms of social responsibility.

m r . G a B r i e L G U z m Á n E x E C u T i v E d i r E C T O r ,P l a N E S T r a T é g i C O d E l a P r O v i N C i a E S P a i l l a T ( P E d E P E )( S T r a T E g i C P l a N F O r T H E P r O v i N C E O F E S P a i l l a T - S P F P E ) M O C a , d O M i N i C a N r E P u B l i C

88 89

“I have been here since the inception of the SPFPE;

I have also been involved in previous socially-oriented

projects implemented in my region. I know what it

feels like to be keen on helping others to grow.

I know what it implies: sacrifice, dedication and a true

vocation to service.Our role is to provide guidance to

the community on projects that aim to ensure their

sustainable development.”

90 91

criteria; fully trusting in our judgment, Popular has assumed the

commitment to join forces with us to pursue this goal. This entire

facility operates thanks to the collaboration of the bank. The function

of these offices is to provide guidance to the community on projects

aimed to ensure their sustainable development. More than half of the

75 projects included in our agenda have been implemented with the

assistance of Banco Popular.

The bank has a clear-cut vision. It has assumed a leadership role

within the corporate private sector, by committing itself to the

undertaking of participatory actions and social responsibility

projects.

These holds true not only in the implementation of community

endeavors, but also in the areas of health, education, coastal clean-

up, recycling and reforestation activities, which are carried out in

collaboration with Plan Sierra.

“I have been here since the inception of SPFPE; I have also been

involved in previous socially-oriented projects implemented in my

region. I know what it feels like to be keen on helping others to grow.

I know what it implies: sacrifice, dedication and a true vocation to

service”.

The dreams of the Espaillat province walk side by side with the SPFPE,

and hand in hand with Banco Popular.”

Learn more about Mr. Guzmán success story at www.popularenlinea.com

T H E S P F P E i S O N E O F T H E P r O j E C T S T H a T a i M T O F O S T E r T H E S u S T a i N a B l E d E v E l O P M E N T O F T H E C O M M u N i T i E S l O C a T E d i N T H E P r O v i N C E O F E S P a i l l a T ; T H E v E N T u r E S E r v E S a S i N S P i r a T i O N T O M a N y O T H E r P r O v i N C E S

90 91

“The SPFPE is a Strategic Development Plan

for the Province of Espaillat, and was founded

in the year 2007. As early as to years into the

project, the support of Banco Popular was

already available; it came about through a

collaborative agreement entered into by both

parties, to promote community development

in the province of Espaillat.

The Espaillat Strategic Development Plan is

a model that seeks to inspire other provinces

to unify their objectives and efforts in order

to address their own specific conditions and

needs. Our development is based on that

92 93

(The United for San Pedro Foundation) and Sociedad Cultural Renovación (Cultural

Renovation Society).

rEaFFirMiNg Our NaTiONal idENTiTy THrOugH THE arTSWith regards to the promotion of art and culture, Popular provides ongoing support to

initiatives and venues that enhance the public’s awareness regarding our traditions, such

as the publication of books, art exhibitions and participation in popular cultural activities.

As in previous years, our financial organization held the XIV version of its traditional

Concierto Altagraciano (concert in honor of Our Lady of the Highest Grace), which was per-

formed by the National Symphony Orchestra and constitutes a major event within the scope

of activities offered in honor of the Altagracia devotion, one of the eldest in America.

Under the directorship of Maestro José Antonio Molina, on this occasion the Symphony

Orchestra performed a program that included themes of two European authors and of one

Dominican composer.

As in previous year, the financial entity made a new contribution toward Dominican biblio-

graphical and cultural heritage, through the launching of the book “Mar Azul” of the author-

ship of underwater photographer José Alejandro Álvarez. The work is an invitation to read-

ers, to meditate on the riches of our oceans and sea, and advocates responsible use of

natural resources.

business endeavors. Since its inception, this program has improved the living conditions of

hundreds of families; furthermore, it encompasses an important self-management training

component addressed to small business, which helps entrepreneurs in acquiring the nec-

essary skills that will enable them to manage their financial and human resources in an

effective manner.

On another note, during 2011 the employees of Banco Popular carried out a home con-

struction and refurbishing campaign for low-income families living in high-risk zones

within the province of Azua. This Endeavour aims to contribute to dignify the

living conditions of dwellers thus facilitating their participation as valuable individuals

within the communities where they live.

With the objective of contributing to the implementation of regional strategic plans, meet-

ings are held with local task-forces and development groups to motivate and train them

along the lines of the educational philosophy of the SPFPE (Strategic Plan for the Espaillat

Province). Several projects have been initiated in the provinces of La Vega, San Francisco de

Macoris, San Juan de la Magana and San Pedro de Macoris. They are briefed on and exposed

to the experiences acquired through the SPFPE Board, which is the entity with which the

bank has subscribed an interinstitutional collaboration agreement.

We hold solidarity meetings with the major non-profit institutions that are sponsored by

Popular through its community social service actions, to allow them the opportunity to

meet, exchange ideas and experiences and mutually capitalize on their joint ventures.

Participating institutions include: FUNDASEP, Canillitas con Don Bosco (Newspaper Boys

with Don Bosco) and Centro de Integración Familiar (Family Integration Center), all in

field of education; PRO-UNPHU and the program Santo Domingo Verde (Green Santo

Domingo - implemented by the Capital’s city council) in the field of environment; Salud

y Asistencia (Health and Assistance) a medical facility and Hogar Crea, in the health seg-

ment. In the field of Arts and Culture institutions include Cámara de Comercio Domínico-

Francesa (Dominican-French Chamber of Commerce); Fundación Unidos por San Pedro

The organization has approached the year 2012 with the motto “We are more than a financial business. We touch people’s lives”, with the firm conviction that –to a great extent– we stamp our mark in the economic and social development process of the nation.

94 95

m r . J O s É a n t O n i O m O L i n a d i r E C T O r N a T i O N a l S y M P H O N y O r C H E S T r a S a N T O d O M i N g O , d O M i N i C a N r E P u B l i C

94 95

“All of the instruments that comprise a symphony

orchestra are of vital importance in one way or the

other. From the bass to the piccolo, from the violin

to the cello, and the trumpet. Each one of those

ingredients provides me with a great orchestra

and allows the attainment of coherence and high

performance….the same holds true for the bank.”

96 97

If we were to establish a parallelism between the bank at the van-

guard of the national banking market, and the major musical institu-

tion in the nation, such as the Symphony Orchestra, one would find

that there is synergy between the two.

“All of the instruments that comprise a symphony orchestra are of

vital importance, in one way or the other. From the bass to the picco-

lo: from the violin to the cello and the trumpet. Each one of those

ingredients provides me with a great orchestra and allows the

achievement of coherence and high performance….the same holds

true for the bank”.

I believe that Banco Popular has its own sound, and it must be very sim-

ilar to orchestral practice. The orchestral practice is useful for cultivating

concentration and harmony. It is a shared responsibility, it is mutual

compassion. When someone fails, the error is collective. That is the sort

of team spirit and concurrence that is perceived at Banco Popular.

Each concert represents a challenge. Every stage is important and

every audience is unique. The artist must be self-demanding and give

the best of her or himself in each performance. It is only through such

commitment to quality that I can become a better musician. I am

sure that both the bank as well as its management will want to

become more and better each day.

The challenge of Banco Popular is to celebrate work they perform as

a given blessing. They will continue to have an impact on our lives

and, as a result, in the Dominican society as well.

Learn more about Mr. José Antonio’s success story at www.popularenlinea.com

E v E r y y E a r , T H E N a T i O N a l S y M P H O N y O r C H E S T r a P r E S E N T S T H E d O M i N i C a N a u d i E N C E w i T H i T S T r a d i T i O N a l C O N C E r T O a l T a g r a C i a N O ( C O N C E r T i N H O N O r O F O u r l a d y O F T H E H i g H E S T g r a C E ) w H i C H i S O N E O F T H E M a N y a C T i v i T i E S S P O N S O r E d B y B a N C O P O P u l a r T O r E i N F O r C E O u r C u l T u r a l i d E N T i T y

96 97

“I was born a musician …I think I had no

choice, being the son of Mr. Papa Molina and

Mrs. Josefina Miniño. Throughout my child-

hood the subject of music was so natural

that I was well into my 13th year of age when

I realized that I would have to devote the rest

of my life to that God-given talent.

Since 2009, when I assumed my current post

at the Symphony Orchestra, Banco Popular

has been one of our best allies. We have

received that support in a very special way.

We have had the joy of delivering concert

performances that bear a very high signifi-

cance for the Orchestra, both at the collective

level as well as personally.

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F i N a N C i a l S T a T E M E N T S S T a T u T O r y B a S i S

Banco Popular Dominicano, S. A.

Banco Múltiple

December 31, 2011

(With Independent Auditors’ Report)

98 99

On the other hand, our continued support to Dominican visual artists has enabled the

institution to attain the best national art collection of since the XIX Century. To this end, at

year end 2011, the bank organized a temporary art exhibit entitled Ambitos Enlazados

(Linked Environments) at the Perelló Cultural Center in the city of Bani, which included a

selection of its major artwork. During the referred exhibit, the public was able to observe

over fifty pieces of artwork created by the most outstanding painting and sculpting mae-

stros, both of Dominican nationality as well as foreign artists residing in the country, during

the XIX and XX centuries.

Other cultural sponsorship included our support to the Dominican carnival activities, par-

ticularly to the annual Carnival held in La Vega, in which our employees have been partici-

pating actively for the past two decades with their dance group “Los Truenos” (Thunder),

comprising Diablos Cojuelos (carnival folk-character).

Likewise, the financial entity sponsored the Concert Series of Villa de Santo Domingo, an

important cultural venue consisting of various concerts, recitals and educational lectures to

authenticate classical music and the valuable cultural and historical heritage of the Colonial

City, which has been declared World Heritage by UNESCO. These concerts were attended by

over 600 students of various educational centers located in the Capital City, and by the

public at large.

During the venue of the Santo Domingo Book Fair, the banking institution sponsored a

theatrical performance entitled “Resurrección” (Resurrection), which was opened to stu-

dents and families attending the fair.

The twentieth anniversary of the theatrical stage play “The Miracle of Christmas” was com-

memorated during the Christmas holidays in December last year. Over 500 children from

low-income communities and foster- home residents were invited to view the play which

is offered as a family entertainment performance.

Banco Popular Dominicano, S. A. – Banco Múltiple Financial Statements on a Regulated Basis

90

Banco Popular Dominicano, S. A. – Banco Múltiple Financial Statements on a Regulated Basis

101

Lic. Engracia Franjul de Abate

Santo Domingo, N.D.Dominican Republic March 12th, 2012

Annual Ordinary General Meeting BANCO POPULAR DOMINICANO, S.A.BANCO MÚLTIPLE.

Messrs. Shareholders:

In accordance with the mandate conferred to us by the Annual Ordinary General Meeting celebra-ted Saturday March 19th, 2011 designating us as this Company’s Commissar and in accordance with effective legal and statutory dispositions, we have examined the financial statements of BANCO POPULAR DOMINICANO, S.A. - BANCO MÚLTIPLE, external audit report by the Certified Public Accountants independent firm PricewaterhouseCoopers, as well as other documentations conside-red pertinent regarding the activities corresponding to the fiscal year between January 1st and December 31st of 2011. We have presented a separate report including analysis, comparisons and commentaries on the company’s situation, its assets, liabilities and equity, the state of its profits and losses as well as other accounts and balances submitted by the administrators. We have also reviewed meeting minutes from the Board of Administration, as well as from the Audit, Credit and Operational Risk, and Appointment and Remunerations Committees made during the year 2011, which we consider satis-factory. This report, which is an integral part of these conclusions, has been at the shareholder’s disposal with due anticipation, in accordance with the legal and statutory provisions. The result of our examination and the range of the audit made by the Certified Public Accountants who acted independently in this matter, reveals that the presented accounts are in accordance with the accounting principles established by the Superintendence of Banks and that the Board of Administration has complied with its mandate in a correct and satisfactory fashion, in accordance with the faculties conferred to it by the Corporate Bylaws. In virtue thereof, we formally recommended the shareholders to approve BANCO POPULAR DOMINICANO, S.A. - BANCO MÚLTIPLE financial statements corresponding to the fiscal year ending on December 31st, 2011 as they have been presented in the Annual Ordinary General Meeting, to approve the Board of Administration’s management and, consequently, grant the release of said Board.

Lic. Engracia Franjul de AbateCommissarBANCO POPULAR DOMINICANO, S.A. – BANCO MÚLTIPLE

Letter of the Commissar

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appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. OPiniOn In our opinion, the financial statements present fairly, in all material respects, the financial position of Banco Popular Dominicano, S. A. - Banco Múltiple at December 31, 2011, and its financial perfor-mance and its cash flows for the year then ended in accordance with accounting standards promul-gated by the Superintendence of Banks of the Dominican Republic, as described in Note 2 to the accompanying financial statements.

Other MAtterThe accompanying financial statements are not intended to present the financial position and the results of operations and cash flows in accordance with accounting standards in jurisdictions other than the Dominican Republic. Therefore, the balance sheet and the statements of income, cash flows and changes in shareholders’ equity and their use are not designed for those who are unfami-liar with the accounting practices and procedures promulgated by the Superintendence of Banks of the Dominican Republic.

February 29, 2012

To the Shareholders andBoard of Directors of Banco Popular Dominicano, S. A. - Banco Múltiple

We have audited the accompanying financial statements of Banco Popular Dominicano, S. A. - Banco Múltiple, which comprise the balance sheet at December 31, 2011 and the statements of income, cash flows and changes in shareholders’ equity for the year then ended, and a summary of signifi-cant accounting policies and other explanatory notes.

MAnAgeMent’S reSPOnSiBility fOr the finAnciAl StAteMentSManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting standards promulgated by the Superintendence of Banks of the Dominican Republic which are an integral accounting basis at variance with International Financial Reporting Standards, promulgated by the International Accounting Standards Board, and for such internal control as management determines is necessary to enable the preparation of financial sta-tements that are free from material misstatement, whether due to fraud or error.

AuDitOr’S reSPOnSiBilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reaso-nable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosu-res in the financial statements. The procedures selected depend on the auditor’s judgment, inclu-ding the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the

Report of Independent Auditors(A free trAnSlAtiOn frOM the OriginAl rePOrt PrePAreD in SPAniSh)

PwC República Dominicana, PricewaterhouseCoopers, Ave. John F. Kennedy esq. Lope de Vega, Edificio Banco Nova Scotia, 3er Piso, Apartado Postal 1286, Santo Domingo, Rep. Dom. Teléfono (809) 567-7741, Telefax (809) 541-1210, RNC 1-01-015162

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Balance Sheet(AMOuntS in rD$)

ASSetS At December 31, 2011 2010

Balance Sheet(AMOuntS in rD$)

liABilitieS AnD ShArehOlDerS’ eQuity At December 31, liABilitieS 2011 2010

Manuel A. Grullón Lissette De Jesús Ignacio J. Guerra President Vicepresident of Finance Senior Executive Vicepresident of Finance, Technology and Operations

To be read in conjunction with the notes to the financial statements.

Available funds (Note 4) Cash on hand 5,912,717,519 5,033,150,556 Central Bank 30,414,140,474 25,026,743,949 Local banks 1,325,718 1,309,750 Foreign banks 5,406,020,179 5,032,417,466 Other available funds 1,996,016,474 1,524,094,446

43,730,220,364 36,617,716,167

Investments (Notes 6 and 14) Available-for-sale - 355,060,424 Other investments in debt instruments 21,311,039,605 22,074,888,729 Interests receivable 555,536,142 529,049,451 Provision for investments (30,175,321) (59,964,865)

21,836,400,426 22,899,033,739

Loans portfolio (Notes 7 and 14) Outstanding 125,742,139,978 108,968,274,904 Restructured 1,184,485,674 972,290,818 Past due 979,924,700 1,048,834,555 Under legal proceedings 766,591,502 965,194,582 Interests receivable 1,252,095,124 947,893,716 Provision for loans (3,387,389,720) (3,685,422,793)

126,537,847,258 109,217,065,782

Outstanding acceptances receivable (Note 8) 56,850,403 38,604,374

Accounts receivable (Note 9) Accounts receivable 479,528,071 709,653,649 Interests receivable - 891,544

479,528,071 710,545,193

Assets acquired through settlement of loans (Notes 10 and 14) Assets acquired through settlement of loans 2,566,376,572 1,766,360,675 Provision for assets acquired through settlement of loans (1,389,006,357) (1,294,353,411)

1,177,370,215 472,007,264

Investments in shares (Notes 11 and 14) Investments in shares 452,759,092 122,722,530 Provision for investments in shares (17,425,951) (7,524,816)

435,333,141 115,197,714

Property, furniture and equipment (Note 12) Property, furniture and equipment 11,201,565,990 7,916,825,419 Accumulated depreciation (1,787,453,995) (1,480,553,049)

9,414,111,995 6,436,272,370

Other assets (Note 13) Deferred charges 1,435,864,307 1,541,725,254 Intangible assets 50,345,969 57,866,944 Sundry assets 461,227,598 455,164,140 Accumulated amortization (41,012,229) (38,146,932)

1,906,425,645 2,016,609,406

TOTAL ASSETS 205,574,087,518 178,523,052,009

Contingent accounts (Note 24) 25,705,568,926 21,121,907,125

Memorandum accounts 574,948,477,815 419,192,988,807

Obligations held by the public (Note 15) Demand 36,964,063,209 34,937,363,306 Savings 66,638,119,047 59,494,930,819 Term 34,537,858,550 27,223,721,938 Interests payable 101,677,533 62,774,274

138,241,718,339 121,718,790,337

Deposits from local and foreign entities (Note 16) From local financial entities 3,688,023,888 2,201,081,988 From foreign financial entities 1,167,594,946 11,893,826 Interests payable 2,463,023 1,590,651

4,858,081,857 2,214,566,465

Borrowed funds (Note 17) From Central Bank 8,861,420 8,861,420 From foreign financial entities 4,699,306,662 801,112,465 Interests payable 8,577,066 1,169,108

4,716,745,148 811,142,993

Outstanding acceptances payable (Note 8) 56,850,403 38,604,374

Certificates of deposits (Note 18) Certificates of deposits 31,764,478,033 29,502,470,941 Interests payable 108,898,989 61,089,075

31,873,377,022 29,563,560,016

Other liabilities (Note 19) 3,596,262,801 3,183,133,750

Subordinated debt (Note 20) Subordinated debt 4,044,744,043 4,039,038,431 Interests payable 5,988,199 4,696,515

4,050,732,242 4,043,734,946

TOTAL LIABILITIES 187,393,767,812 161,573,532,881

SHAREHOLDERS’ EQUITY (Note 21) Paid-in capital 10,382,880,950 9,317,393,100 Additional paid-in capital 2,128,805,560 1,702,610,420 Other equity reserves 1,038,288,095 931,739,310 Revaluation surplus 779,917,660 800,390,866 Unrealized losses on available-for-sale investments - (3,396,621) Accumulated results from prior years 3,179,530 577,844,893 Results for the year 3,847,247,911 3,622,937,160

TOTAL SHAREHOLDERS’ EQUITY 18,180,319,706 16,949,519,128

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 205,574,087,518 178,523,052,009

Contingent accounts (Note 24) 25,705,568,926 21,121,907,125

Memorandum accounts 574,948,477,815 419,192,988,807

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Income Statement(VAlOreS en rD$)

At December 31, 2011 2010

Cash Flow Statement(AMOuntS in rD$)

At December 31, 2011 2010

CASH FLOWS FROM OPERATING ACTIVITIES Interests and commissions collected on loans 18,382,434,593 14,939,765,892Other financial income collected 2,991,849,221 2,588,464,551Other operational income collected 5,590,191,638 4,941,417,076Interests paid on deposits (5,098,411,057) (3,365,344,608)Interests and commissions paid on borrowed funds (48,069,154) (1,130,124)General and administrative expenses paid (13,188,034,405) (10,973,894,381)Other operational expenses paid (728,490,160) (587,677,111)Income tax paid (1,138,364,513) (1,148,414,713)Sundry collections from operating activities 776,966,751 563,105,325

Net cash provided by operating activities 7,540,072,914 6,956,291,907

CASH FLOWS FROM INVESTING ACTIVITIES Decrease (increase) in investments 792,269,607 (7,012,841,151)Interbank funds granted (3,085,667,000) (4,225,000,000)Interbank funds collected 3,085,667,000 4,225,000,000Loans granted (138,787,834,794) (134,554,945,749)Loans collected 118,309,967,547 111,445,260,100Acquisition of property, furniture and equipment (3,682,215,486) (1,156,458,453)Proceeds from the sale of property, furniture and equipment 30,906,415 296,263,367Proceeds from the sale of assets acquired through settlement

of loans 330,487,551 304,289,685

Net cash used in investing activities (23,006,419,160) (30,678,432,201)

CASH FLOWS FROM FINANCING ACTIVITIESDeposits received 2,812,077,325,052 2,452,000,307,156Deposits returned (2,790,688,690,198) (2,432,579,841,130)Operations of borrowed funds 8,231,016,473 799,557,803Operations of funds paid (4,332,822,276) (20,789,105)Capital contributions 1,200,376,984 1,900,700,130Dividends paid and other payments to shareholders (3,908,355,592) (2,888,107,008)

Net cash provided by financing activities 22,578,850,443 19,211,827,846

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 7,112,504,197 (4,510,312,448)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 36,617,716,167 41,128,028,615

CASH AND CASH EQUIVALENTS AT END OF YEAR 43,730,220,364 36,617,716,167

Manuel A. Grullón Lissette De Jesús Ignacio J. Guerra President Vicepresident of Finance Senior Executive Vicepresident of Finance, Technology and Operations

To be read in conjunction with the notes to the financial statements.

Financial income (Note 25) Interests and commissions on loans 18,890,790,644 15,134,580,593 Interests on investments 2,115,156,287 1,821,713,514 Gain from investments 1,018,684,678 1,129,310,660

22,024,631,609 18,085,604,767

Financial expenses (Note 25) Interests on deposits (5,191,742,214) (3,446,755,791) Loss on investments (115,505,053) (106,570,144) Interests and commissions on borrowed funds (56,768,796) (1,690,108)

(5,364,016,063) (3,555,016,043)

Gross financial margin 16,660,615,546 14,530,588,724

Provision for loans portfolio (Note 14) (2,289,595,491) (2,550,311,301) Provision for investments (Note 14) (11,162,813) (43,833,877)

(2,300,758,304) (2,594,145,178)

Net financial margin 14,359,857,242 11,936,443,546

Income (expenses) from effects of exchange changes (134,314,741) (25,407,923)

Other operational income (Note 26) Commissions for services 4,899,113,932 4,255,495,484 Commissions for exchange 659,259,946 653,985,772 Sundry income 31,817,760 31,935,820

5,590,191,638 4,941,417,076

Other operational expenses (Note 26) Commissions for services (611,918,918) (487,255,985) Sundry expenses (116,571,242) (100,421,126)

(728,490,160) (587,677,111)

Operating expenses Salaries and benefits to employees (Note 28) (6,364,807,373) (5,346,556,884) Services from third parties (1,696,091,641) (1,303,706,830) Depreciation and amortization (698,403,510) (605,385,362) Other provisions (257,310,870) (338,324,921) Other expenses (Note 29) (5,481,351,447) (4,475,044,497)

(14,497,964,841) (12,069,018,494)

Operating result 4,589,279,138 4,195,757,094

Other income (expenses) (Note 27) Other income 1,324,370,552 1,293,602,620 Other expenses (658,958,044) (704,383,956)

665,412,508 589,218,664

Result before income tax 5,254,691,646 4,784,975,758

Income tax (Note 22) (1,320,161,609) (1,043,498,897)

Result for the year 3,934,530,037 3,741,476,861

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Cash Flow Statement (AMOuntS in rD$)

Statement of Changes in Shareholders’ Equity (AMOuntS in rD$)

Paid-in

Capital

Additional Paid-in Capital

Other Equity Reserves

Revaluation Surplus

Unrealized Gain (Loss)

on Available -for-Sale

Investments

Accumulated Results from

Prior Years

Results For the

YearTotal

Equity

Balance at January 1, 2010 7,933,712,500 1,149,138,180 793,371,250 821,812,625 - 265,950,843 3,232,392,580 14,196,377,978Transfer from accumulated

results - - - - - 3,232,392,580 (3,232,392,580) -Capital contributions

(Note 21) 1,357,642,950 543,057,180 - - - - - 1,900,700,130Effect of the sale of revalued

assets - - - (1,593,400) - 4,061,188 - 2,467,788 Effect of the depreciation

of revalued assets - - - (19,828,359) - - 19,828,359 -Unrealized losses

on available-for-sale investments - - - - (3,396,621) - - (3,396,621)

Dividends paid (Note 21): Cash - - - - - (2,888,107,008) - (2,888,107,008) Shares 26,037,650 10,415,060 - - - (36,452,710) - -Results for the year - - - - - - 3,741,476,861 3,741,476,861 Transfer to other equity

reserves - - 138,368,060 - - - (138,368,060) -

Balance at December 31, 2010 9,317,393,100 1,702,610,420 931,739,310 800,390,866 (3,396,621) 577,844,893 3,622,937,160 16,949,519,128

Transfer from accumulated results - - - - - 3,622,937,160 (3,622,937,160) -

Capital contributions (Note 21) 857,391,150 342,985,834 - - - - - 1,200,376,984

Effect of the sale of revalued assets - - - (1,206,547) - 2,059,075 - 852,528

Effect of the depreciation of revalued assets - - - (19,266,659) - - 19,266,659 -

Effect of the sale of available-for-sale investments - - - - 3,396,621 - - 3,396,621

Dividends paid (Note 21): Cash - - - - - (3,908,355,592) - (3,908,355,592) Shares 208,096,700 83,209,306 - - - (291,306,006) - -Results for the year - - - - - - 3,934,530,037 3,934,530,037Transfer to other equity

reserves - - 106,548,785 - - - (106,548,785) -

Balance at December 31, 2011 10,382,880,950 2,128,805,560 1,038,288,095 779,917,660 - 3,179,530 3,847,247,911 18,180,319,706

At December 31, 2011 2010

non-monetary transactions disclosure in note 34.

Reconciliation between the result for the year and the net cash provided by operating activities:

Result for the year 3,934,530,037 3,741,476,861

Adjustments to reconcile the result for the year to the net cash provided by operating activities:

Provisions: Loans portfolio 2,289,595,491 2,550,311,301 Investments 11,162,813 43,833,877 Assets acquired through settlement of loans 20,393,279 43,025,494 Interests receivable 182,612,481 155,415,722 Other provisions 54,305,110 139,883,705

Depreciation and amortization 698,403,510 605,385,362 Deferred income tax, net (171,762,970) (28,682,557) Current income tax 155,897,267 - Expenses for uncollectible accounts receivable 71,004,856 71,635,217 Gain from the sale of property, furniture and equipment (18,109,513) (112,766,421) Loss (gain) on the sale of assets acquired through settlement of

loans 9,184,844 (5,636,739) Foreign exchange effects (net) 79,712,290 76,778,421 Amortization of issuance costs of the subordinated debt 5,705,612 5,705,612 Other (income) expenses 238,071,662 166,538,324 Net changes in assets and liabilities:

Interests receivable (534,842,741) (450,804,180) Accounts receivable 143,028,176 (165,773,066) Deferred charges 320,115,606 (604,473,321) Intangible assets 7,520,975 - Sundry assets (51,661,873) (147,609,568) Interests payable 96,325,187 76,265,554 Other liabilities (1,119,185) 795,782,309

Total adjustments 3,605,542,877 3,214,815,046

Net cash provided by operating activities 7,540,072,914 6,956,291,907

Manuel A. Grullón Lissette De Jesús Ignacio J. Guerra President Vicepresident of Finance Senior Executive Vicepresident of Finance, Technology and Operations

To be read in conjunction with the notes to the financial statements.

Manuel A. Grullón Lissette De Jesús Ignacio J. Guerra President Vicepresident of Finance Senior Executive Vicepresident of Finance, Technology and Operations

To be read in conjunction with the notes to the financial statements.

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1 entityBanco Popular Dominicano, S. A. - Banco Múltiple is a financial institution incorporated on August 2, 1963 under the laws of the Dominican Republic, with the objective of providing multiple banking services, which include the granting of loans, deposits received from the public, foreign currency operations and all banking services allowed by the Monetary and Financial Law. The Bank is a subsidiary of Grupo Popular, S. A., the ultimate majority shareholder, who owns 98.65% of its equity interest. The Bank’s headquarters are located at 20 John F. Kennedy Avenue, Santo Domingo, Dominican Republic.

The General Extraordinary-Ordinary Shareholders’ Meeting held on March 19, 2011 approved the modifications of the By-Laws with the purpose of fulfilling the dispositions of the New Commercial Societies and Individual Enterprises of Limited Responsibilities General Law No. 479-08, modified by Law No. 31-11. As part of these modifications, the Bank changed its registered name to Banco Popular Dominicano, S. A. – Banco Múltiple from such date.

The main executives of the Bank in the areas of business and operations are as follows:

nAMe POSitiOn

Manuel A. Grullón President

Ignacio J. Guerra Senior Executive Vicepresident of Finance, Technology and Operations

Christopher Paniagua Senior Executive Vicepresident of Business

Alex Pimentel Senior Executive Vicepresident of Risk Management, Security and Human Resources

Rafael A. del Toro G. Executive Vicepresident of Internal Mangement and Compliance

José Mármol Executive Vicepresident of Public Relations and Communications

Juan Lehoux A. Executive Vicepresident of Technology and Operations

Fernando Olivero Executive Vicepresident of Personal Business and Branch Offices

René Grullón F. Executive Vicepresident of Corporate, Commercial and International Business

Antonia Antón Executive Vicepresident of Human Resources and Quality Management

Miguel A. Rodríguez Executive Vicepresident General Auditor

The Bank is regulated by the Monetary and Financial Law and its regulations, as well as by resolutions of the Monetary Board and the Superintendence of Banks of the Dominican Republic.

At December 31, 2011 and 2010, the Bank maintained branches and automatic teller machi-nes (ATMs) in personal business centers located in the city of Santo Domingo and provinces throughout the country as indicated below:

2011

LOCATION OFFICES ATM AGENCIES TOTAL

Metropolitan Area 98 350 - 448

Provinces 97 332 2 431

Total 195 682 2 879

2010

LOCATION OFFICES ATM AGENCIES TOTAL

Metropolitan Area 92 333 - 425

Provinces 100 316 2 418

Total 192 649 2 843

The Bank maintains its accounting records and prepares its financial statements in Dominican pesos (RD$).

The issuance of the financial statements was approved by the Board of Directors on February 23, 2012.

2 SuMMAry Of MAin AccOunting POlicieS2.1 BASiS Of AccOunting AnD PrePArAtiOn Of the finAnciAl StAteMentS

The Bank prepares its financial statements in accordance with the accounting standards established by the Superintendence of Banks of the Dominican Republic in its current Accounting Manual for Financial Institutions, the regulations, resolutions, instructives, circular letters and specific dispositions issued by such Superintendence of Banks and the Monetary Board of the Dominican Republic, within the framework of the Monetary and Financial Law; International Financial Reporting Standards are applied in certain situations not foreseen in the mentioned accounting framework. The accounting practices for financial institutions established by such Superintendence differ in certain aspects from the International Financial Reporting Standards for banks and financial institutions. Consequently, the financial statements do not intend to present the financial position, results of operations and cash flows in accordance with International Financial Reporting Standards.

The financial statements are prepared on the historical cost basis, except for the available-for-sale investments that are stated at fair value and certain land and buildings, which are stated at appraised values at December 2004.

Notes to the Financial Statements

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2.2 DifferenceS with internAtiOnAl finAnciAl rePOrting StAnDArDS

The accounting practices established by the Superintendence of Banks of the Dominican Republic differ from International Financial Reporting Standards in some aspects. Certain differences are summarized below:

In accordance with the requirements of the Superintendence of Banks, the allowance i) for loan losses corresponds to the amount determined based on a risk assessment performed by the Bank following specific guidelines. The levels of provisions for commercial loans are measured based on percentages according to the classification assigned to each credit. The assessment for the classification of the major commercial debtors include the documentation of the credit files, considering the figures of the financial statements of the borrower, the payment performance and the levels of collateral, following the Ruling for Assets Evaluation, the Instructive for the Assets Evaluation Process on Permanent Regime and related circular letters. In accordance with International Financial Reporting Standards, for the evaluation of the loan portfolio with the purpose of determining the existence of impairment, if any, the loans are segregated and evaluated individually and collectively. The present value of estimated future cash flows discounted at the original effective interest rate is applied for individual loans. In the case of loans collectively evaluated, the estimated contractual cash flows of assets in the group, the analysis of historical loss experience and management’s opinion on whether the current economic situation and the credit conditions may change the actual level of inherent historical losses are considered. The provision is recognized if there is objective evidence that an impairment loss has occurred, which would be the amount of the difference between the carrying value of loans and the present value of estimated future cash flows of such loans, discounted at the original effective interest rate.

The investments portfolio is classified according to the risk categories determined by ii) the Superintendence of Banks of the Dominican Republic that require specific provisions, following the Ruling for Assets Evaluation, the Instructive for the Assets Evaluation Process on a Permanent Regime and specific dispositions. International Financial Reporting Standards require that provisions be determined on the basis of the evaluation of the outstanding risks based on a model of incurred losses rather than a model of expected losses.

Local banking accounting practices require that financial institutions recognize iii) provisions for the assets acquired through settlement of loans, according to the following criteria: the moveable properties are provided for during a two-year term starting 120 days from the date of the final settlement, on a straight line basis starting the sixth month after the property is settled; the real estate is provided for during a three-year term starting 120 days from the date of the final settlement, on a straight line basis starting the first year after the property has been recorded in the books. International Financial Reporting Standards require that these assets are provided for only when impairment exists.

Interests receivable with a maturity of less than 90 days is provided for in accordance iv) with the classification applicable to the related loans portfolio, while interest past due for 90 days is fully provided for, except for the credit card transactions that are 100% provided for after 60 days past due. From these terms, loans become non-accrual and are accounted for in off balance sheet accounts. Pursuant to International Financial Reporting Standards, the provision for interest receivable is determined based on the inherent risks of the loans portfolio. In case of impaired loans, these are adjusted and subsequently the accrual of interests continues on the adjusted balance basis, by using the effective interest rate.

The Superintendence of Banks allowed multiple services banks the revaluation of v) buildings at December 31, 2004. International Financial Reporting Standards establish that the revaluation updates should be performed when significant changes in the value of assets occur, while for assets with significant and frequent value changes, such revaluation should be determined annually and for assets with insignificant changes, it should be calculated approximately between three to five years.

Financial entities translate all the transactions in foreign currency at the official vi) exchange rate established by the Central Bank of the Dominican Republic at the date of the balance sheet. International Financial Reporting Standards require that all balances in foreign currency be translated at the spot exchange rate at the date of the balance sheet.

The Superintendence of Banks of the Dominican Republic authorizes financial vii) entities to write off loans with or without collateral when they are classified as past due, except loans to related parties which should be written off when all legal proceedings for recovery have been exhausted and the related officials and/or directors have been separated from their functions. International Financial Reporting Standards require loans to be written off when they are determined unrecoverable.

The Superintendence of Banks of the Dominican Republic requires that the provision viii) for loans outstanding at the time of executing their collateral, be transferred and applied to the related asset acquired. International Financial Reporting Standards only require allowance when the fair value of the asset is less than its book value or when impairment exists.

There are differences between the presentation and certain disclosures of the ix) financial statements according to International Financial Reporting Standards and those required by the Superintendence of Banks of the Dominican Republic.

In accordance with banking accounting practices, revenues for commissions of x) credit cards renewal, transactions of letters of credit and acceptances outstanding are recognized immediately. In accordance with International Financial Reporting these revenues are deferred and recognized over the term of credit cards, letters of credit and acceptances outstanding.

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The Superintendence of Banks of the Dominican Republic requires that computer xi) software and leasehold improvements that generate future economic benefits are previously authorized by such Superintendence to be recorded as intangible assets, and they should be classified as other sundry assets until such approval. International Financial Reporting Standards require that these items be recorded directly as intangible assets.

The Superintendence of Banks of the Dominican Republic requires that short-term xii) highly liquid investments, that are easily convertible to cash, be classified as investments. International Financial Reporting Standards require that this type of investments be classified as cash equivalents.

The Superintendence of Banks of the Dominican Republic requires that financial xiii) institutions classify the investments in securities into four categories: trading, available-for-sale, held to maturity and other investments in debt instruments. The last category includes those investments that are not traded in an active or organized market and cannot be classified in the previous three categories. International Financial Reporting Standards do not establish the category of other investments in debt instruments and the classification depends on the management’s intention.

The Superintendence of Banks of the Dominican Republic requires that the cash xiv) flows of the loans portfolio and customer deposits be classified as investing and financing activities, respectively. International Financial Reporting Standards require that cash flows of these transactions be classified as operating activities.

The Superintendence of Banks of the Dominican Republic requires banks to record a xv) provision for contingent operations, which include collaterals granted, letters of credit issued but not negotiated and lines of credit of automatic use, based on a classification by risk categories following the dispositions of the Regulation for Assets Evaluation. International Financial Reporting Standards require recording a provision when there is a present obligation as a result of a past event that means, when it is probable that the entity has to make outflows embodying economic benefits to settle such obligation and a reliable estimate of the amount of the obligation can be made.

The Superintendence of Banks do not require the accounting of derivatives in the xvi) contracts for foreign currency hedging that the Bank settled with the Central Bank of the Dominican Republic and in addition, allows that the amounts in foreign currency sold at the end of year pursuant to these contracts, be disclosed as balance denominated in foreign currency in the note to the financial statements. International Financial Reporting Standards require the accounting of derivatives that are included in these contracts, as well as the disclosure of assets and liabilities denominated in foreign currency outstanding at the end of year.

In accordance with the current banking regulations, the Bank should quantitatively xvii) disclose the risks at which it is exposed derived from its financial instruments, such as the liquidity and interest rate risks and the credit quality of the loans, among

others. International Financial Reporting Standards require additional disclosures that allow the users of the financial statements to evaluate: a) the importance of the financial instruments in relation to the financial position and results of the entity and b) the nature and the scope of the risks resulting from the financial instruments to which the entity is exposed of during the year and at the reporting date and how the entity manages these risks.

The Superintendence of Banks of the Dominican Republic does not require that the xviii) financial statements be adjusted for inflation. International Financial Reporting Standards require that financial statements be adjusted for inflation when the accumulated inflation over the last three years exceeds 100% and when there are qualitative factors that contribute to the existence of a hyperinflationary economy.

The effects on the financial statements of these differences between the accounting bases established by the Superintendence of Banks and International Financial Reporting Standards have not been quantified.

2.3 uSe Of eStiMAteS

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the period. The estimates are mainly used to record the provisions for risky assets, benefits to employees and executives, loyalty program, depreciation and amortization of long-term assets, impairment of long-lived assets, deferred income tax and contingencies. Actual results could differ from these estimates.

2.4 finAnciAl inStruMentS

A financial instrument is defined as cash, evidence of ownership or interest in an entity or an agreement that generate a contractual obligation or right to deliver or receive cash or another financial instrument from a second entity under potentially favorable terms to the first entity.

The estimated market values of the Bank’s financial instruments, their book values and the methodologies used to estimate them are as follows:

Short-term financial instruments

The fair value of short-term financial instruments, assets as well as liabilities, are estimated to be equal to their book values as they are reflected in the Bank's balance sheet. For these financial instruments, the carrying value is similar to the market value due to the relatively short period of time between the origin of the instruments and their realization. This category includes: available funds, banking acceptances, obligations of customers in acceptances, interests receivable and interests payable.

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Investments and financial instruments

The fair value of investments in local securities and shares are estimated based on the value adjusted by impairment, which is determined following the guidelines of the Superintendence of Banks, because there is no active securities market in the country that allows the determination of fair values. Investments in securities held in instruments traded in the United States of America are recorded at their market values, if they are classified as available-for-sale or trading.

For obligations with the public, deposits in local and foreign financial institutions, certificates of deposit, borrowed funds and subordinated debt, their fair value was not estimated, because there is no active market in the Dominican Republic for such instruments.

Loans portfolio

The loans portfolio is stated at its book value, adjusted for the estimated losses applied to uncollectible loans, as established by the regulating authorities. Loans were segregated by types, such as commercial, consumer and mortgage.

Interests and costs of financial assets and liabilities

Interests on financial assets are recognized under the accrual method, calculated under the simple interest method on outstanding principal amounts, and the costs of financial liabilities are recognized as an expense under the same method.

2.5 inVeStMentS2.5.1 INVESTMENTS IN SECURITIES

The Instructive for the Classification, Evaluation and Measurement of Investments in Debt Instruments establishes the classification of the investments in four categories: trading, held to maturity, available-for-sale and other investments in debt instruments, which are listed below:

Trading: • These are investments that the entity acquires with the intention of obtaining profits derived from fluctuations in prices and form part of a portfolio of debt instruments identified and managed together, which are traded in a stock exchange market or other organized market. These securities should not remain in this category more than 180 days after the date of acquisition, the period during which they must be sold. Investments in trading securities are originally recorded at their fair value and the premium or discount that has been acquired, is amortized over the life of the instrument using the effective interest rate. The changes in fair value are recognized in the income statement as a gain or loss from securities fluctuation.

Held to maturity: • These are investments that the Bank acquires with the intention and ability to hold to maturity, and are traded in an active or organized market. They are recorded at their amortized cost using the effective interest method. The premium or discount is amortized with a charge to results over the life of the instrument. Net held to maturity investments do not exceed their net realizable values.

Available-for-sale• : These are securities held by the entity to obtain an adequate return from their temporary cash surplus or those investments that the entity is willing to sell at any time, and are quoted in an active or organized market. Available-for-sale investments are originally recorded at their fair value, and the premium or discount that has been acquired is amortized over the life of the instrument using the effective interest rate. Its value is adjusted daily at the market value outstanding at the closing date. The changes in the market value are recognized in equity as an unrealized gain or loss.

Other investments in debt instruments• : These include all other investments in securities that are not traded in active or organized markets, and are not included in the previous three categories. They are recorded at their amortized cost using the effective interest method.

The type of security or financial instrument and its amount is presented in Note 6.

2.5.2 INVESTMENTS IN SHARES

Investments in shares are carried at cost less the corresponding provision.

The characteristics, restrictions, nominal value, market value and number of outstanding shares of investments in shares are presented in Note 11.

2.5.3 PROVISION FOR INVESTMENTS

For investments in securities in local debt instruments and investments in shares, the amount of expected losses due to impairment or irrecoverability is determined based on the criteria used for the evaluation of the major commercial debtors, in accordance with the provisions of the Regulation for Assets Evaluation, focusing on the solvency of the issuer and the financial characteristics of the instrument. Investments in the Central Bank of the Dominican Republic and in debt securities of the Ministry of Finance are considered without risk, thus they are not subject to provision. For investments in securities in international debt instruments, the amount of expected losses due to impairment or irrecoverability is determined based on the risk ratings provided by international rating firms recognized by the Superintendence of Securities of the Dominican Republic, or any other internationally recognized rating firm, by applying the appropriate percentages of provision according to the risk categories established by the Regulation for Assets Evaluation.

The excess in the provision for investments cannot be released without the prior authorization of the Superintendence of Banks.

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2.6 lOAnS POrtfOliO AnD AllOwAnce fOr lOAn lOSSeS2.6.1 LOANS

Loans are recorded by the outstanding principal amount, less the allowance for loan losses.

For purposes of determining the calculation of interests on card holders, the Bank considers the corresponding principal balance as the basis for its calculation.

The interest accrual is suspended for non performing loans over 90 days past due and 60 days past due for credit cards.

2.6.2 PROVISION FOR LOANS

The determination of the allowance for loan losses to cover the risk of uncollectibility of the loans portfolio is based on the criteria established in the Regulation for Assets Evaluation (REA) issued by the Monetary Board in its First Resolution dated December 29, 2004, complementary circulars, instructives and observations made by the Superintendence of Banks of the Dominican Republic (basis of the determination of the reserves). In accordance with the dispositions established in the Instructive for the Evaluation of Loans, Investments and Contingent Operations of the Public Sector and its amendments, issued in 2010, the risk assessment of loans granted to public sector entities will be performed on the basis of the analysis of the criteria established by the REA and its amendments, by analyzing key aspects such as the payment capacity and the historical payment performance. The operations for which actual collateral has been established or formalized, are considered without risk and are not subject to provision. For loans classified as A, B, C or D that have explicit collateral or actual admissible collateral of the Estate, the portion of the debt covered of such collateral should be provided for 1% of the loans, 3% for the loans classified as E and a minimum of 20% for past due loans.

According to the REA, the estimate of the provision to cover the uncollectibility of the loans portfolio depends on the type of credit, which is subdivided into major commercial debtors, minor commercial debtors, consumer and mortgage loans. The assessment of the major commercial loans is based on a categorized analysis of each debtor according to their payment capacity, historical payment performance and country risk, to be performed by the Bank on a quarterly basis for 100% of its portfolio of major commercial loans (subject to review by the Superintendence of Banks) and using specific percentages according to the classification of the debtor. The classification of the minor commercial loans, consumer and mortgage loans are based on days in arrears. The Bank applies Circular Letter SB 001/11 dated July 25, 2011, issued by the Superintendence of Banks, which establishes that until June 30, 2013 the analysis of cash flows will not represent a main aspect for the classification of the debtor and the payment performance will be considered as a factor to improve the risk classification of a debtor.

The provisions for the risks that are determined for the Bank's loan portfolio, according to the portfolio classification rules, distinguish three types of provisions: specific, generic and procyclical. Specific provisions are those required for specific loans depending on their classification in accordance with the current regulation (loans B, C, D and E). The generic

provisions are those resulting from loans with potential or implied risk. All those provisions from loans classified as "A" are considered generic (these provisions are the minimum set by the Superintendence of Banks). The procyclical provisions are those that the Bank may constitute to address the potential risk of assets and contingencies linked to the changes in the economic cycle, up to 2% of assets and risk-weighted contingencies.

The excess in the provision for loans should not be released without the prior authorization from the Superintendence of Banks, except the provisions for interests receivable over 90 days and loans D and E in foreign currency.

The REA provides for loans in foreign currency rated D and E, the suspension of the revenue recognition arising from the positive difference in the exchange fluctuation by establishing a provision for 100% of the difference generated. On July 25, 2011 the Superintendence of Banks issued the Circular Letter SB 002/11 which establishes for a transitory period until July 31, 2013, that the constitution of provision for past due loans less than 90 days will not be required.

For the past due loans portfolio in installments, the Bank applies a drive mechanism by which the total principal is considered as past due when one of the installments come into this condition.

The Bank assigns an initial classification no less than “C” to the restructured loans, independently of their payment capacity and performance and country risk, which can be modified to a lower risk category depending on the payment performance. It also assigns a risk rating of no less than "D" to consumer and mortgaged restructured loans for the purpose of recording the corresponding provision, and should be maintained in such category depending on the payment performance, but in no case the classification should be less than "B".

The write-off of loans is made up of transactions by which the unrecoverable items are written off of the balance sheet, and only remain in off-balance sheet accounts. In the event that the financial institutions do not fully provide for a loan, it must constitute the remaining amount before the write-off, thus the level of provisions required for the other loans are not affected. A loan can be written off, with or without collateral, from the first day it is past due, excluding loans with related parties which can only be written off when it is demonstrated that all legal proceedings for recovery and the executives and/or directors directly related have been removed from their duties. Written-off loans remain in memorandum accounts until the reasons that led to their write-off are overcome.

Collaterals, as a safety factor in the recovery of credit operations, are considered as a secondary element and are not considered in the classification of the debtor, but they are thus considered as a secondary element in the computation of the coverage of the necessary provisions based on an established admissible amount (in the case of the commercial debtors). These collaterals securing the loan transactions are classified, according to the REA, in terms of their multiple uses and of easy market realization. The admissible collaterals are accepted based on the discount rates established by such regulation, on their market values. These are classified as follows:

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Polyvalent

The polyvalent collaterals are those goods that are not specific to an activity, but that they may be of multiple uses, of easy market realization, valuable, easy to execute, transferable without excessive costs and stable in value. These collaterals are considered between 50% and 100% of their values for the purpose of the risk coverage they support, according to the type of collateral.

Non-polyvalent

These are the collaterals supported by goods that generally, due to their difficult realization because of their specialized origin, cannot be used for different activities. These collaterals will apply only between 30% and 70% of their appraised value for the purpose of the risk coverage they support.

The Bank applies Circular Letter SB 001/11 issued by the Superintendence of Banks, which establishes that, until June 30, 2013, the financial institutions will be able to consider as collateral up to 90% of the market value of warrants of inventories, and provide for the collaterals constituted by industries of a sole use, a similar treatment as the one applied to the industries of multiple use. The collaterals are valued at their market value; this means their net realizable value, through appraisals or reports prepared by qualified and independent professionals, not older than 12 months for moveable properties, excluding those securities with fixed interest rate, and a term not exceeding 18 months for real estate.

2.6.3 PROVISION FOR INTERESTS RECEIVABLE

The provision for current interests receivable is calculated using specific percentages according to the classification granted to the correlative loans, following the credit evaluation criteria established in the REA.

Interests receivable of 90 days in arrears are 100% provided for, except for those relating to credit card transactions, which are 100% provided for when overdue for 60 days. From these terms they become non-accrual and are accounted for in off balance sheet accounts and are recognized as income when collected.

2.7 VAluAtiOn Of PrOPerty, furniture AnD eQuiPMent AnD DePreciAtiOn MethOD uSeD2.7.1 BASIS OF ACCOUNTING

The property, furniture and equipment are recorded at the acquisition cost less the corresponding accumulated depreciation, except for certain land and buildings that are stated at market value as determined by independent appraisers as of December 31, 2004, as allowed by the Prudential Standards of Equity Adequation. The costs of maintenance and repairs that do not improve or increase the asset's useful life are charged to expenses as incurred. The cost of renovations and improvements are capitalized. When assets are retired, their costs and related accumulated depreciation are removed from the corresponding accounts and any gain or loss is included in the results.

2.7.2 DEPRECIATION

Depreciation is provided on a straight-line basis over the estimated useful life of the assets. The Bank depreciates the appraised values through the charge to the results of the period and the credit to the accumulated depreciation account.

The estimated useful life of the assets is as follows:

Type of Assets Estimated Useful Life (Years)

Buildings 30

Furniture and equipment 5-10

Transportation equipment 5

Computer equipment 4

Decorations 5

Leasehold improvement 5

According to the Monetary Board resolution, any investment in fixed assets in excess of 100% of the normative capital should be provided for during the year.

2.8 VAluAtiOn Of ASSetS AcQuireD thrOugh SettleMent Of lOAnS2.8.1 BASIS OF ACCOUNTING

Assets acquired through settlement of loans are recorded at the lowest cost of:

The agreed upon value in the payment transfer or the value assigned through a court a) decision, whichever applies.

Market value at the incorporation date of the asset. b)

Principal loan balance plus interests and/or accounts receivable at the cancellation c) date.

2.8.2 PROVISION FOR ASSETS ACQUIRED THROUGH SETLLEMENT OF LOANS

The REA provides for a maximum period of three years to make provision for the assets acquired through settlement of loans, beginning 120 days from the settlement date or date of the final court decision. The provision should be recorded according to the following criteria:

Moveable properties 100% of provision within two years, using a straight-line method from the sixth month, at the rate of 1/18 monthly.

Real estate 100% of provision within three years, using a straight-line method from the thirteenth month, at the rate of 1/24 monthly.

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The provision for loans portfolio for debtors, whose collaterals have been settled in favor of the Bank or received in payment, should be transferred to the provision for assets acquired through settlement of loans. The provision of those assets that have been sold, should not be released without prior authorization from the Superintendence of Banks, however, it can be transferred to other risky assets without permission.

The impairment in the value of assets acquired through settlement of loans, determined by the difference between the carrying value and the market value, according to independent appraisals, is recorded as an expense when it is known.

2.9 AccOunting Of DeferreD chArgeS

Deferred charges include the prepaid income tax, deferred income tax and other payments in advance and unaccrued; and are charged to results when accrued.

2.10 AccOunting Of intAngiBle ASSetS AnD AMOrtizAtiOn MethOD uSeD

Intangible assets correspond to disbursements not recognized as expenses in the period in which they are incurred, but its recognition is distributed over future periods, because the benefits thereof will extend beyond the period in which they were made. Computer programs are included within this category and require prior authorization from the Superintendence of Banks for the recording of items in the accounts that compose the intangible assets.

Intangible assets are stated at cost, net of accumulated amortization using the straight-line method over their estimated useful life of 5 years.

2.11 ASSetS AnD liABilitieS in fOreign currency

The assets and liabilities in foreign currencies are translated at the exchange rate established by the Central Bank of the Dominican Republic at the date of the financial statements. The transactions occurred during the year and the revenues and expenses are translated at the exchange rate prevailing at the date of the transaction. The difference resulting from the translation of assets and liabilities in foreign currencies, are recorded under the income (expense) from exchange rate differences in the income statement.

2.12 eMPlOyee Benefit cOStS2.12.1 BONUS AND OTHER BENEFITS

The Bank records the benefits to its executives and employees, such as bonuses, Christmas bonuses and vacations, among others, as incurred and according to the local labor laws and their own compensation plans and employment agreements.

2.12.2 RETIREMENT AND PENSION PLAN

The Bank provides their pensions in accordance with the provisions of the Social Security Law (Law 87-01). This system, which operates under a scheme of individual capitalization account, consists of contributions to be made by the employer and the employees on their

own and must be managed by a Pension Fund Administrator (AFP). The contributions made by the Bank are recognized as expenses when incurred. At the age of retirement the employee receives the amount of the contributions made by the employee and the employer, plus the return of the Individual Capitalization Account (CCI). Officers and employees of the Bank are primarily affiliated to the related company Administradora de Fondos de Pensiones Popular, S. A.

2.12.3 SEVERANCE PAyMENT

The Labor Code of the Dominican Republic provides for the payment of notice and dismissal to those employees whose employment contracts are terminated without a justified cause. The Bank records as expense the amounts paid for these situations at the time of the termination of the employment contracts.

2.13 certificAteS Of DePOSitS AnD SuBOrDinAteD DeBt

The certificates of deposits and subordinated debt are comprised of the obligations arising from the funds obtained from the public through the issuance of bonds, mortgages certificates, financial certificates, investment certificates and other securities issued by the Bank that are held by the public.

The Bank maintains a debt obtained through the issuance of debt securities denominated "Subordinated Debt Bonds" authorized by the National Securities Council, delivered to the management of Cevaldom Depósito Centralizado de Valores, S. A., as the paying agent and custodian. Subordinated debt is initially recorded at fair value, net of the costs incurred in the transaction.

Financial expenses for interests, commissions, foreign exchange differences and other financial charges incurred in those obligations are recorded in the period in which they accrue.

2.14 recOgnitiOn Of reVenueS AnD exPenSeS

Financial income and expenses

The Bank records income from interests on loans portfolio by the accrual method. Interests on loans are calculated using the simple interest method on outstanding principal amounts. Interests on loans are no longer recognized when the loan has 90 days in arrears (except for the case of credit card transactions, which are no longer recognized at 60 days in arrears). From these dates they are recorded in a suspense account. Once they are recognized under this condition, the interest income is recognized when collected.

Interest income on investments in securities is recorded on an accrual basis of simple interest.

Interest expense of interests on deposits is recorded in the income statement on an accrual basis of simple interest, except those corresponding to saving accounts and financial certificates with capitalized interests, which are accrued using the compound interest method.

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Costs directly related to the issuance of the subordinated debt are amortized and recorded as interest expense using the interest method over the term of the debt.

Other operational income and expenses and operating expenses

Other operational income is recorded when accrued and other operational expenses and operating expenses, when they are incurred. The revenues from commissions and other services from the management accounts, drafts and transfers, guarantees and endorsements, purchase and sale of currencies, collections on behalf of third parties and others, are recognized on the accumulated basis when the services have been rendered to customers.

Other income and expenses

Other income mainly corresponds to the recovery of written-off assets, cost recovery and services to related parties that are recorded when accrued, and other expenses when they occur.

2.15 incOMe tAx

The income tax recognized in the income statement includes the current income tax and the deferred income tax.

The current income tax is estimated on the basis established by the Tax Code of the Dominican Republic and its amendments (see more detail in Note 22).

The deferred income tax is recognized using the method of liabilities. According to this method, the deferred income tax results from recognizing assets and liabilities at the future tax effect attributable to the differences arising between the accounting and tax basis. The deferred tax assets and liabilities are measured using tax rates to be applied to the taxable income in years in which those temporary differences are expected to be recovered or compensated. The deferred income tax is recognized to the extent that there is certainty that the taxable income will be generated and be available to be used against the temporary difference.

2.16 DerecOgnitiOn Of A finAnciAl ASSet

Financial assets are derecognized when the Bank loses control and all contractual rights of those assets. This occurs when the rights are realized, expire or are transferred.

2.17 iMPAirMent Of ASSetS VAlue

The Bank reviews its long-lived assets in order to determine in advance if events or changes in the circumstances indicate that the carrying value of these assets will be recovered in the operations.

The recoverability of an asset that is maintained and used in operations is measured by comparing the book value of assets with the recoverable amount. This recoverable amount is determined by whichever is the greater of the discounted net cash flows expected to be generated by this asset in the future or its fair value. If after making this comparison, it is determined that the carrying value of the asset has been adversely affected, the amount to

be recognized as a loss will be equal to the excess of the book value over the recoverable value of the asset and it is charged to the results of the year in which it is determined.

2.18 cOntingencieS

The Bank considers as contingency, the operations for which the entity has assumed credit risks that, depending on future events, can become direct credits and generate obligations to third parties.

Provision for contingencies

The provision for contingent operations, which is classified under the other liabilities item, corresponds to a provision for guarantee bonds, endorsements and letters of credit and lines for unused credit cards, among others, which is determined jointly with the other obligations of the loans portfolio debtors, and is determined based on the risk rating granted to the corresponding loans portfolio and the admissible collateral deductible for the purposes of calculating the provision. The nature and amounts of contingencies are detailed in Note 24 to the financial statements.

The excess in provision for contingencies should not be released without prior authorization from the Superintendence of Banks.

2.19 PrOViSiOnS

The Bank recognizes provisions when the entity has a present obligation as a result of a past event; it is probable that an outflow of resources embodying economic benefits will be required to settle such obligation and the amount of the obligation can be reliably estimated.

2.20 AccOuntS receiVABle

Accounts receivable are recorded at amortized cost, net of any impairment loss.

The expense for doubtful accounts is established through a charge to an expense account for losses on doubtful accounts. These accounts receivable are charged to results when management believes that their collection is uncertain, according to the payments received, the clients’ historical payment and the evaluation of collaterals, where they exist.

2.21 DiStriButiOn Of DiViDenDS

The Bank's policy is to decide on the disposition of the earnings of the year, in accordance with the approval granted by the Shareholders’ meeting, considering the provisions of the Resolution No. 12-2001, issued by the Superintendence of Banks of the Dominican Republic dated December 5, 2001, which provides that the maximum amount of cash dividends to be distributed to shareholders shall not exceed the amount of accumulated benefits effectively received.

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2.22 reVAluAtiOn SurPluS

The revaluation surplus is the difference between the appraised value by independent experts and the book value of land and buildings at the date of the appraisal, net of the corresponding depreciation. The corresponding depreciation of the amount appraised is transferred from the revaluation surplus item to the results of the year item within the statement of changes in equity.

3 trAnSActiOnS in fOreign currency AnD exchAnge riSk exPOSureThe detail of balances in foreign currency is as follows:

2011 2010

US$ RD$ US$ RD$

Assets and Contingencies:

Available funds 469,191,115 18,169,097,469 368,979,592 13,808,138,800

Investments 35,790,625 1,385,966,893 95,392,471 3,569,824,708

Loans portfolio 685,715,909 26,553,868,567 522,098,310 19,538,224,015

Outstanding acceptances receivable 1,468,081 56,850,403 1,031,582 38,604,374

Accounts receivable 407,388 15,775,825 310,429 11,617,015

Investments in shares 70,816 2,742,258 70,816 2,650,109

Other assets 528,790 20,477,027 521,396 19,511,944

Contingencies (a) 150,000,000 5,808,644,974 115,000,000 4,303,587,500

1,343,172,724 52,013,423,416 1,103,404,596 41,292,158,465

Liabilities:

Obligations held by the public (1,135,281,618) (43,962,985,955) (975,489,727) (36,505,264,294)

Deposits from local and foreign financial institutions (70,586,352) (2,733,407,074) (4,670,794) (174,792,821)

Borrowed funds (121,574,405) (4,707,883,728) (21,438,482) (802,281,573)

Outstanding acceptances payable (1,468,081) (56,850,403) (1,031,582) (38,604,374)

Other liabilities (3,925,705) (152,020,182) (7,760,296) (290,409,681)

(1,332,836,161) (51,613,147,342) (1,010,390,881) (37,811,352,743)

Long position in foreign currency 10,336,563 400,276,074 93,013,715 3,480,805,722

Corresponds to Contracts for Foreign Currency Hedging with the Central Bank of the (a) Dominican Republic (BCRD), by which the Bank sold to BCRD the amounts of US$150 million and US$115 million in 2011 and 2010, respectively, to be redeemed for Dominican Pesos, by which BCRD granted a foreign currency hedging on the amounts of the exchange agreed by the difference between the initial rate and the exchange rate of sale published by BCRD prevailing at each date of the hedging. The contract settled in 2011 established that BCRD must make payments for the hedging between January 13 and February 29, 2012. For the contract settled in 2010, BCRD made payments for the hedging in January and February 2011. The accounting and disclosure of these transactions are in conformity with the Circular Letter CC/07/10 issued by the Superintendence of Banks.

The exchange rates used to convert foreign currency to local currency were RD$38.7243 and RD$37.4225 per each US$1.00 or its equivalent in other currencies at December 31, 2011 and 2010, respectively.

4 AVAilABle funDS Available funds consist of:

2011 2010

RD$ RD$

Cash (a) 5,912,717,519 5,033,150,556

Central Bank of the Dominican Republic (b) 30,414,140,474 25,026,743,949

Local banks 1,325,718 1,309,750

Foreign banks (c) 5,406,020,179 5,032,417,466

Other funds (d) 1,996,016,474 1,524,094,446

43,730,220,364 36,617,716,167

Includes US$28,555,590 in 2011 and US$31,387,039 in 2010.(a)

Includes US$299,676,988 in 2011 and US$198,919,341 in 2010.(b)

Corresponds to deposits in correspondent banks of US$139,602,786 in 2011 and (c) US$134,475,716 in 2010. From these funds US$34,575,000 in 2011 are collateralizing the settlement of consumption made by Visa and Mastercard card holders, and US$7,225,000 in 2010 are collateralizing the settlement of consumption made by Visa card holders.

Represents effects received from other banks pending of collection at the Clearing (d) House and includes US$1,355,751 in 2011 and US$4,197,496 in 2010.

Notes to the Financial Statements (continuation)

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129

At December 31, 2011, the required legal reserve amounts to RD$19,743,649,428 and US$239,851,745 (2010: RD$19,697,743,172 and US$195,802,500). In 2011 the Bank maintained cash at the Central Bank of the Dominican Republic (BCRD) and loans portfolio in productive sectors for these purposes, of RD$20,114,522,473 and US$299,851,805. In 2010 the Bank maintained cash at BCRD, loans portfolio in productive sectors and investments in government bonds for these purposes of RD$20,111,660,711 and US$199,174,357. For both years the amounts exceed the minimum amount required.

5 interBAnk funDSInterbank funds obtained and granted during the years ended December 31, 2011 and 2010, are the following:

2011 Interbank Funds Assets

Amount No.

AverageWeighted

Interest BalanceEntity Quantity RD$ Days Rate RD$

Citibank, N. A.

8 2,170,667,000 25 6.49% -

Banco Múltiple León, S. A. 1 100,000,000 3 8.00% -

Banco Dominicano del Progreso, S. A. – Banco Múltiple 1 100,000,000 1 7.75% -

Banco Múltiple Santa Cruz, S. A. 8 370,000,000 16 8.23% -

Asociación Popular de Ahorros y Préstamos 4 345,000,000 9 8.09% -

22 3,085,667,000 54 6.97% -

2010 Interbank Funds Assets

Amount No.

AverageWeighted

Interest BalanceEntity Quantity RD$ Days Rate RD$

Citibank, N. A. 17 2,480,000,000 40 6.32% -

Banco Múltiple León, S. A. 4 410,000,000 9 6.59% -

Banco de Ahorro y Crédito Ademi, S. A.

Banco Múltiple Santa Cruz, S. A. Banco BHD, S. A., Banco

Múltiple

5

20

1

325,000,000

1,000,000,000

10,000,000

92

59

1

6.10%

6.46%

5.50%

-

-

-

47 4,225,000,000 201 5.89% -

During the years ended December 31, 2011 and 2010, the Bank did not perform interbank borrowing operations.

6 inVeStMentSInvestments consist of:

2011

Type of Investment IssuerAmount

RD$

Weighted Average Interest

Rate Maturity

Other investments in debt instruments:

Bond Government of the Dominican

Republic (includes US$780,127) 1,023,900,968 13.45%February 2012 -

June 2021

Certificate of special investment

Central Bank of the Dominican Republic 12,646,447,802 14.08%

July 2012 - November 2018

Note of fixed rentCentral Bank of the Dominican

Republic 760,958,836 12.60%September 2012 -

February 2018

Short-term remunerated deposits

Central Bank of the Dominican Republic 4,370,000,000 6.75% January 2012

Financial certificate

Banco de Reservas de la República Dominicana – Banco de Servicios Múltiples (includes US$35,000,000) 1,826,685,530 6.23%

February - July 2012

Bonds Banco de Ahorro y Crédito Ademi, S. A. 1,200,065 11.92% October 2013

BondsAsociación La Vega Real de Ahorros y

Préstamos 140,000,000 11.67% October 2015

Bonds Industrias Nacionales, C. por A. 5,000,000 11.72% March 2015

BondsCervecería Nacional Dominicana, S. A. (includes US$316,000) 86,536,879 11.88%

October 2015 - July 2016

BondsBanco Centroamericano de

Integración Económica 200,000,000 12.00% December 2014

Financial certificate Banco Múltiple López de Haro, S. A. 50,000,000 9.00% February 2012

Financial certificate Banco Múltiple León, S. A. 197,700,000 7.00%September -

November 2012

Financial certificateBanco Nacional de Fomento de la Vivienda y la Producción 1,500,000 5.50% June 2012

Notes to the Financial Statements (continuation)

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2011

Type of Investment IssuerAmount

RD$

Weighted Average Interest

Rate Maturity

Financial certificate The Bank of Nova Scotia 1,109,525 7.00% January 2012

Total 21,311,039,605

Interests receivable (includes US$47,657) 555,536,142

Provision for investments (includes US$353,159) (30,175,321)

21,836,400,426

2010

Type of Investment IssuerAmount

RD$

Weighted Average Interest

Rate Maturity

Investments:

Available-for-sale

NoteWachovia Corp. (corresponds to

US$3,083,910) 115,407,622 2.02% May 2013

NoteRabobank Nederland (corresponds to

US$2,938,380) 109,961,526 2.55% August 2015

NoteHSBC Finance Corp. (corresponds to

US$1,459,485) 54,617,577 3.30% August 2015

NoteMorgan Stanley (corresponds to

US$2,006,111) 75,073,699 1.99% October 2016

Total 355,060,424

Other investments in debt instruments:

Bond (a) Government of the Dominican Republic (includes US$25,735,860) 5,310,133,636 11.91%

February 2011 - July 2020

Certificate of special investment

Central Bank of the Dominican Republic 7,280,105,884 13.50%

February 2011 - October 2017

Short-term remunerated deposits

Central Bank of the Dominican Republic 4,400,000,000 5.00% January 2011

Note of fixed rentCentral Bank of the Dominican

Republic 1,088,588,832 12.25%January 2011 -

September 2014

2010

Type of Investment IssuerAmount

RD$

Weighted Average Interest

Rate Maturity

Zero coupon certificate of investment

Central Bank of the Dominican Republic 49,698,545 N/A February 2011

Financial certificate Banco Múltiple León, S. A. 197,700,000 5.75% January 2011

Financial certificate

Banco de Reservas de la República Dominicana – Banco de Servicios Múltiples (includes US$26,000,000) 1,444,320,030 6.65%

January 2011 - July 2012

Financial certificateBanco Dominicano del Progreso, S. A. – Banco Múltiple 600,000,000 8.75% February 2011

Financial certificate Banco de Ahorro y Crédito Ademi, S. A. 1,000,000 8.34% October 2013

Financial certificateAsociación La Vega Real de Ahorros y

Préstamos 140,000,000 8.09% October 2015

Financial certificateBanco Nacional de Fomento de la

Vivienda y la Producción 1,500,000 5.50%January -

November 2011

BondIndustrias Nacionales, C. por A.

(includes US$1,125,109) 47,104,385 6.72% May 2011 –

March 2015

BondCervecería Nacional Dominicana, S. A.

(includes US$60,000) 2,245,350 5.50% October 2015

BondBanco Centroamericano de

Integración Económica 255,561,089 12.00% December 2014

Financial certificate Bank of America (corresponds to

US$2,987,574) 111,802,478 2.25% February 2015

Financial certificate Popular Bank Ltd. Inc. (includes

US$4,000,000) 149,690,000 2.75% February 2011

Financial certificate (b) Standard Chartered Bank (corresponds to US$26,600,000) 995,438,500 0.20% January 2011

Total 22,074,888,729

Interests receivable (includes US$122,073) 529,049,451

Provision for investments (includes US$726,031) (59,964,865)

22,899,033,739

Notes to the Financial Statements (continuation)

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Includes bonds issued by the Ministry of Finance for RD$750 million, to be computed (a) as legal reserve according to Resolutions of the Monetary Board dated February 16 and March 5, 2009 for a period of two years.

These certificates of US$26,600,000 at December 31, 2010, are collateralizing the (b) settlement of consumptions made by Mastercard cardholders.

7 lOAnS POrtfOliOThe breakdown of the portfolio by type of loan consists of:a)

2011 2010

RD$ RD$

Commercial loans:

Advances on checking accounts 447,093,521 252,460,838

Loans (includes US$643,298,644 in 2011 and US$480,770,761 in 2010) 76,889,791,709 65,197,055,209

Financial leases (includes US$12,348,808 in 2011 and US$11,984,359 in 2010) (i) 876,260,473 713,782,151

Discounted invoices (includes US$196,174 in 2011 and US$158,958 in 2010) 98,978,434 99,962,115

Letters of credit issued and traded (corresponds to US$5,699,548 in 2011 and US$7,040,976 in 2010) 220,711,012 263,490,931

Sale of assets acquired through settlement of loans (includes US$85,324 in 2011 and US$342,827 in 2010) 21,616,958 39,470,678

78,554,452,107 66,566,221,922

Consumer loans:

Personal credit cards (includes US$14,086,093 in 2011 and US$11,182,186 in 2010) 6,449,102,101 5,383,963,936

Consumer loans 21,897,319,049 20,503,510,706

28,346,421,150 25,887,474,642

Mortgage loans:

Acquisition of housing (includes US$21,766,893 in 2011 and US$20,692,277 in 2010) 21,507,172,664 19,293,560,084

Construction, remodeling, repairs, extension and other 265,095,933 207,338,211

21,772,268,597 19,500,898,295

Subtotal 128,673,141,854 111,954,594,859

Interests receivable (includes US$3,999,760 in 2011 and US$2,146,787 in 2010) 1,252,095,124 947,893,716

Provision for loans and interests receivable (includes US$15,765,335 in 2011 and US$12,220,821 in 2010) (3,387,389,720) (3,685,422,793)

126,537,847,258 109,217,065,782

Notes to the Financial Statements (continuation)

(i) At December 31, 2011 and 2010 the components of the net investment in leases are as follows:

2011 2010

RD$ RD$

Leases receivable 647,329,670 485,074,473

Residual value (Note 24 (j)) 228,930,803 228,707,678

876,260,473 713,782,151

b) The loans portfolio condition is as follows:2011 2010

RD$ RD$

Commercial loans (a):

Outstanding (i) 76,688,591,054 64,579,087,191

Restructured (ii) 895,465,255 765,895,806 Past due: From 31 to 90 days (iii) 42,298,340 33,880,057

Over more than 90 days (iv) 451,971,156 504,680,122

Under legal proceedings (v) 476,126,302 682,678,746

78,554,452,107 66,566,221,922

Consumer loans:

Outstanding (i) 27,632,211,792 25,142,987,417

Restructured (ii) 191,570,523 180,277,664

Past due:

From 31 to 90 days (iii) 20,658,916 17,668,909

Over more than 90 days (iv) 294,063,124 311,931,409

Under legal proceedings (v) 207,916,795 234,609,243

28,346,421,150 25,887,474,642

Mortgage loans:

Outstanding (i) 21,421,337,132 19,246,200,296

Restructured (ii) 97,449,896 26,117,348

Past due:

From 31 to 90 days (iii) 2,348,432 1,268,138

Over more than 90 days (iv) 168,584,732 179,405,920

Under legal proceedings (v) 82,548,405 47,906,593

21,772,268,597 19,500,898,295

(Continued)

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135

2011 2010

RD$ RD$

Interests receivable:

Outstanding (i) 1,031,759,506 741,680,528

Restructured (ii) 19,858,491 14,934,308

Past due:

From 31 to 90 days (iii) 74,604,330 48,862,239

Over more than 90 days (iv) 55,346,182 62,522,922

Under legal proceedings (v) 70,526,615 79,893,719

1,252,095,124 947,893,716

Provision for loans and interests receivable (3,387,389,720) (3,685,422,793)

126,537,847,258 109,217,065,782

These balances include loans to microenterprises.(a)

Represent loans and interests receivable that are up-to-date in their payments.(i)

Represent current or past due loans and interests receivable with a change in their (ii) payment terms and conditions, resulting in a change of the interest rate and/or the maturity term of the original loan contract, as well as the loans that are originated in the capitalization of interests, commissions on arrears and other charges from a previous credit.

Consist of installments of loans and interests receivable which have delays of 31 to (iii) 90 days from the payment due date.

Relate to loans and interests receivable with payment delays for more than 90 days. (iv) For loans payable in installments, these are transferred to the past due portfolio through the drive mechanism considering the arrears in the installment payments more than 90 days. It also includes the advances on checking accounts with more than one day in arrears.

Correspond to balances that are in process of collection through legal (v) proceedings.

c) By type of collateral:2011 2010

RD$ RD$

With polyvalent collaterals (i) 67,865,681,693 57,778,336,478

With non polyvalent collaterals (ii) 4,400,323,931 4,476,799,422

Without collateral 56,407,136,230 49,699,458,959

128,673,141,854 111,954,594,859

Interests receivable 1,252,095,124 947,893,716

Provision for loans and interests receivable (3,387,389,720) (3,685,422,793)

126,537,847,258 109,217,065,782

The polyvalent collaterals are the actual collaterals which by their nature, are considered (i) of market realization, without any legal or administrative constraints that significantly restrict their use or sale. These collaterals are considered between 50% and 100% of their value for purposes of covering the risks they support, according to the collateral.

Non polyvalent collaterals are the actual collaterals which by their nature are considered (ii) of single use, and therefore have characteristics that make them of difficult realization due to their specialized origins.

d) By origin of the funds:2011 2010

RD$ RD$

Own funds 126,424,148,657 111,153,482,394

Other international organizations 2,248,993,197 801,112,465

128,673,141,854 111,954,594,859

Interests receivable 1,252,095,124 947,893,716

Provision for loans and interests receivable (3,387,389,720) (3,685,422,793)

126,537,847,258 109,217,065,782

e) By term:2011 2010

RD$ RD$

Short term (up to one year) 35,571,747,234 33,831,129,770

Medium term (more than 1 year and up to 3 years) 10,028,658,040 9,235,279,755

Long term (more than three years) 83,072,736,580 68,888,185,334

128,673,141,854 111,954,594,859

Interests receivable 1,252,095,124 947,893,716

Provision for loans and interests receivable (3,387,389,720) (3,685,422,793)

126,537,847,258 109,217,065,782

Notes to the Financial Statements (continuation)

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By economic sectors:f ) 2011 2010

RD$ RD$

Agriculture, livestock, hunting and forestry 5,342,104,381 1,817,764,306

Fishing 4,607,534 1,641,442

Exploitation of mines and quarries 340,435,604 229,520,951

Manufacturing industries 13,897,487,949 13,605,914,554

Electricity, gas and water supplies 413,219,326 1,281,340,921

Construction 3,695,996,213 2,600,893,980

Retail and wholesale business 27,443,351,552 22,896,640,808

Hotels and restaurants 10,310,167,127 7,439,863,364

Transportation, warehousing and communication 2,665,855,614 3,082,349,736

Financial intermediation 1,184,807,959 2,031,046,897

Real estate, corporate and renting activities 7,505,685,605 6,298,165,630

Public administration and defense, social security plans of mandatory affiliation 32,234,719 554,598,571

Education 921,869,170 615,964,457

Social and health services 1,057,011,629 873,004,149

Other activities of community, social and personal services 52,989,988,169

47,598,363,727

Private households with domestic services 32,626,409 7,504,695

Extraterritorial organizations and entities 835,692,894 1,020,016,671

128,673,141,854 111,954,594,859

Interests receivable 1,252,095,124 947,893,716

Provision for loans and interests receivable (3,387,389,720) (3,685,422,793)

126,537,847,258 109,217,065,782

8 OutStAnDing AccePtAnceS receiVABleOutstanding acceptances receivable consist of:

2011

Correspondent bank

Amount

RD$ Maturities

Bank of America, Miami (corresponds to US$91,956) 3,560,916

March –

April 2012

Banco Bradesco Sao Paulo, Brazil (corresponds to US$1,245,241) 48,221,108

April 2012 –

September 2014

Wachovia Bank, China (corresponds to US$52,650) 2,038,834 January 2012

Wachovia Bank, Japan (corresponds to US$78,234) 3,029,545 January 2012

56,850,403

Notes to the Financial Statements (continuation)

2010

Correspondent bank

Amount

RD$ Maturities

Bancoldex, Colombia (corresponds to US$33,811) 1,265,292 February 2011

Bank of America (corresponds to US$120,162) 4,496,780January –

February 2011

Commerzbank (corresponds to US$89,333) 3,343,013 January 2011

Deutsche Bank (corresponds to US$213,449) 7,987,821 January 2011

HSBC Bank (corresponds to US$14,925) 558,531 January 2011

Standard Chartered Bank (corresponds to US$43,200) 1,616,652 January 2011

Wachovia Bank (corresponds to US$378,252) 14,155,140 February 2011

Wells Fargo Bank (corresponds to US$138,450) 5,181,145 February 2011

38,604,374

9 AccOuntS receiVABleAccounts receivable consist of:

2011 2010

RD$ RD$

Rights on foreign exchange forward contract (a) 39,390,000 139,322,200

Commissions receivable (b) 87,950,802 62,253,486

Sundry accounts receivable:

Advances to suppliers (c) 161,199,804 180,180,697

Accounts receivable to employees 13,337,208 12,695,690

Deposits in guarantee 36,975,438 31,542,168

Claimed compensation on disasters (d) 15,959,381 118,045,258

Returned checks (e) 2,590,306 3,232,123

Advances in demand accounts (f ) 11,594,126 95,567,973

Other accounts receivable (g) 110,531,006 66,814,054

Interests receivable on accounts receivable - 891,544

479,528,071 710,545,193

Correspond to an account receivable from Central Bank of the Dominican Republic (a) (BCRD) in 2011 of the hedging in foreign exchange sale of US$150 million. In 2010 corresponds to: (i) sales exchange forward contract of RD$111,883,200 (see related liability in Note 19) and (ii) RD$27,439,000 of an account receivable from BCRD of the hedging in foreign exchange sale of US$115 million (See more detail of the exchange hedging in Note 3).

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139

Notes to the Financial Statements (continuation)

This account includes commissions receivable from services provided, contingent (b) operations and other, only if a reasonable certainty exists on its recoverability. Includes US$100,883 in 2011 and US$77,606 in 2010.

At December 31, 2011 and 2010, advances paid for the acquisition of commercial (c) premises are included of an approximate amount of RD$162 million, minus the cumulative expenditure representing the opportunity cost for the use of these funds of approximately RD$56 million and RD$46 million, respectively, as allowed by the Superintendence of Banks. The related expense is included under the item other income (expenses) in the income statement.

Correspond to the amount to be recovered from the insurance company from disasters (d) occurred to the detriment of the entity. The amount outstanding at 2010 year end was collected in 2011.

Include US$66,259 in 2011 and US$85,270 in 2010.(e)

Correspond to payments made by the Bank on behalf of its customers whose funds (f ) from their current accounts are not sufficient enough to cover these payments. The amounts in such accounts do not exceed one day of arrears. The amounts exceeding this term are considered as part of the past due loans portfolio.

Correspond to outstanding amounts to be collected from the settlement of the credit (g) card operations, incentives to be collected on sales volume of credit cards and accounts receivable from the Treasury of the Social Security (TSS) and the General Direction of Internal Taxes (DGII). Include US$240,246 in 2011 and US$147,553 in 2010.

10 ASSetS AcQuireD thrOugh SettleMent Of lOAnSAssets acquired through settlement of loans consist of:

2011 2010

RD$ RD$

Securities 424,780,230 424,780,230

Furniture and equipment 5,027,000 6,216,822

Real estate 2,136,569,342 1,335,363,623

2,566,376,572 1,766,360,675

Provision for assets acquired through settlement of loans (1,389,006,357) (1,294,353,411)

1,177,370,215 472,007,264

At December 31, 2011 and 2010, the aging of the assets acquired through settlement of loans are the following:

2011

AmountRD$

Provision RD$

Up to 40 months:

Furniture and equipment 4,937,000 (1,605,035)

Real estate 1,463,602,972 (289,564,722)

1,468,539,972 (291,169,757)

More than 40 months:

Securities 424,780,230 (424,780,230)

Furniture and equipment 90,000 (90,000)

Real estate 672,966,370 (672,966,370)

1,097,836,600 (1,097,836,600)

Total 2,566,376,572 (1,389,006,357)

2010

AmountRD$

Provision RD$

Up to 40 months:

Furniture and equipment 6,121,822 (3,202,306)

Real estate 681,535,157 (212,447,409)

687,656,979 (215,649,715)

More than 40 months:

Securities 424,780,230 (424,780,230)

Furniture and equipment 95,000 (95,000)

Real estate 653,828,466 (653,828,466)

1,078,703,696 (1,078,703,696)

Total 1,766,360,675 (1,294,353,411)

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12 PrOPerty, furniture AnD eQuiPMentThe movement of property, furniture and equipment during the years 2011 and 2010, is as follows:

Notes to the Financial Statements (continuation)

11 inVeStMent in ShAreSInvestments in shares consist of:

2011

Issuer

Investment Amount

RD$Equity

PercentageType of Shares

Nominal Value RD$

Market ValueRD$

Quantity of Shares

Consorcio de Tarjetas Dominicanas, S. A. (Cardnet) (a) 445,969,982 18.4% Common RD$100 N/A 523,056

Other (b) 6,789,110 Common

452,759,092

Provision for investments in shares (c) (17,425,951)

435,333,141

2010

Issuer

Investment Amount

RD$Equity

PercentageType of Shares

Nominal Value RD$

Market ValueRD$

Quantity of Shares

Consorcio de Tarjetas Dominicanas, S. A. (Cardnet)

116,028,459 5.0% Common RD$100 N/A 142,333

Other (b) 6,694,071 N/A Common N/A N/A N/A

122,722,530

Provision for investments in shares (c) (7,524,816)

115,197,714

(N/A) Not available.

On April 12, 2011, the Bank acquired 380,721 shares of the company Consorcio de (a) Tarjetas Dominicanas, S. A. (Cardnet) to a related party for a total of US$8,703,282, by which it increased its equity interest to 18.4% (Note 32). This transaction received no objection from the Superintendence of Banks of the Dominican Republic through Circular Letter (SB) ADM/0151/11.

Include US$73,006 for both years.(b)

Include US$2,190.(c)

In the Dominican Republic there is no active stock market where the Bank can obtain the market value of these investments.

2011 2010

Land BuildingsFurniture and

Equipment

LeaseholdImprove-

ments

Diverse and Construction

in Progress (a) Total Total

RD$ RD$ RD$ RD$ RD$ RD$ RD$

Gross value at January 1 1,649,239,283 2,820,502,184 2,432,641,103 107,992,782 906,450,069 7,916,825,421 7,312,277,891

Acquisitions 128,366 - 305,460,811 131,271 3,376,495,038 3,682,215,486 1,181,439,180

Retirements - (8,406,962) (151,256,001) (491,015) (24,679,837) (184,833,815) (367,498,200)

Transfers 150,583,516 110,733,996 472,016,271 - (733,333,783) - -

Reclassification (b) - (1,091,072) 18,330,976 35,863,096 (105,397,511) (52,294,511) (139,289,736)

Other (c) - - - - - - 126,799,372

Write-off of assets fully depreciated - (8,447,996) (131,437,569) (19,994,304) (466,722) (160,346,591) (196,903,088)

Gross value at December 31 1,799,951,165 2,913,290,150 2,945,755,591 123,501,830 3,419,067,254 11,201,565,990 7,916,825,419

Accumulated depreciation at January 1 - (442,205,397) (972,076,978) (51,873,952) (14,396,723) (1,480,553,050) (1,295,294,296)

Depreciation expense - (107,774,228) (483,717,839) (33,695,119) (16,040,863) (641,228,049) (560,081,647)

Retirements - 2,333,327 148,564,485 491,015 16,683,158 168,071,985 186,469,043

Write-offof assetsfully depreciated - 8,447,996 131,437,569 19,994,304 466,722 160,346,591 196,903,088

Reclassification - 916,051 649,729 6,940,828 (2,598,080) 5,908,528 (8,549,237)

Accumulated depreciation at December 31 - (538,282,251) (1,175,143,034) (58,142,924) (15,885,786) (1,787,453,995) (1,480,553,049)

Property, furniture and equipment, net at December 31 1,799,951,165 2,375,007,899 1,770,612,557 65,358,906 3,403,181,468 9,414,111,995 6,436,272,370

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At December 31, 2011 and 2010, the detail of these diverse assets and construction in (a) progress, is as follows:

2011 2010

RD$ RD$

Construction in progress 2,871,187,927 797,414,776

Disused assets 39,385,249 50,520,896

Moveable assets granted under operating leases 508,494,078 58,514,396

3,419,067,254 906,450,068

Corresponds to technological projects and leasehold improvements that were finished (b) and reclassified in the year to the account of software pending of authorization under the item of sundry assets.

In 2010 corresponds to reclassifications of leasehold improvements of RD$66.7 million (c) authorized by the Superintendence of Banks and of accounts receivable from advances to construction in progress of RD$60 million.

13 Other ASSetSOther assets include:

2011 2010

RD$ RD$Deferred charges Deferred income tax (Note 22) 1,047,788,629 876,025,659

Other deferred charges

Prepaid insurance 141,261,121 147,034,059

Prepaid income tax (Note 22) 48,960,208 250,732,987

Prepaid expenses of software license 179,290,281 175,009,446

Prepaid expenses of Superintendence of Banks fees - 83,243,151

Sundry deferred charges (a) 18,564,068 9,679,952

Subtotal 1,435,864,307 1,541,725,254

Intangibles

Software 50,345,969 57,866,944

Accumulated amortization of software (41,012,229) (38,146,932)

Subtotal 9,333,740 19,720,012

2011 2010

RD$ RD$ Sundry assets Assets acquired or built for sale (b) 144,500,000 144,500,000

Paper, supplies and other materials 110,833,403 53,273,872

Libraries and works of art 29,441,424 27,251,510

Leasehold improvements and software programs pending of authorization (c) 124,800,121 196,012,061

409,574,948 421,037,443

Items pending allocation (d) 51,652,650 34,126,697

Subtotal 461,227,598 455,164,140

Total 1,906,425,645 2,016,609,406

Include US$146,934 in 2011 and US$50,499 in 2010.(a)

Correspond to a property received in settlement of a commercial transaction by which the (b) Bank had made advance payments for the acquisition of commercial premises.

These items are accounted for in this account, net of the corresponding accumulated (c) amortization, until the authorization from the Superintendence of Banks of the Dominican Republic has been obtained, in accordance with local regulations in force.

This account includes the debit balances of the items which, for internal operational (d) reasons or characteristics of the operation, cannot be charged immediately to the final accounts. Include US$381,856 in 2011 and US$470,897 in 2010.

Notes to the Financial Statements (continuation)

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Loans Portfolio Investment

Interests Receivable

Other Assets (b)

Contingent Operations (c) Total

RD$ RD$ RD$ RD$ RD$ RD$Transfers of

provisions of assets acquired through settlement of loans (112,211,524) - - 112,211,524 - -

Transfers of provisions 393,431,336 (8,284,473) 2,789,445 (262,950,642) (124,985,666) -

Write-off against provisions (2,279,377,917) - (207,339,002) - - (2,486,716,919)

Effect of exchange differences 70,949,284 663,256 180,416 - 1,597,889 73,390,845

Balances at December 31, 2010 3,495,688,790 67,489,681 189,734,003 1,294,353,411 190,195,301 5,237,461,186

Minimum required provisions at December 31, 2010 (a) 3,369,576,854 67,489,681 184,273,326 1,294,353,411 189,679,612 5,105,372,884

Excess over minimum provisions 126,111,936 - 5,460,677 - 515,689 132,088,302

Notes to the Financial Statements (continuation)

14 SuMMAry Of PrOViSiOnS fOr riSky ASSetSThe movement of the provisions for risky assets is as follows:

(Continued)

2011Loans

Portfolio InvestmentInterests

ReceivableOther

Assets (b)Contingent

Operations (c) TotalRD$ RD$ RD$ RD$ RD$ RD$

Balances at January 1, 2011 3,495,688,790 67,489,681 189,734,003 1,294,353,411 190,195,301 5,237,461,186

Constitution of provisions 2,289,595,491 11,162,813 182,612,481 20,393,279 54,305,110 2,558,069,174

Transfers of provisions of assets acquired through settlement of loans (166,046,790) - - 166,046,790 - -

Transfers of provisions 122,846,524 (31,582,255) 103,688 (55,999,999) (35,367,958) -

Write-off against provisions (2,600,828,926) - (204,154,642) (35,787,124) - (2,840,770,692)

Effect of exchange differences 77,293,631 531,033 545,470 - 1,342,156 79,712,290

Balances at December 31, 2011 3,218,548,720 47,601,272 168,841,000 1,389,006,357 210,474,609 5,034,471,958

Minimum provisions required at December 31, 2011 (a) 3,083,993,806 47,601,234 168,645,066 1,389,006,357 210,469,643 4,899,716,106

Excess over minimum provisions 134,554,914 38 195,934 - 4,966 134,755,852

2010Loans

Portfolio InvestmentInterests

ReceivableOther

Assets (b)Contingent

Operations (c) TotalRD$ RD$ RD$ RD$ RD$ RD$

Balances at January 1, 2010 2,872,586,310 31,277,021 238,687,422 1,402,067,035 173,699,373 4,718,317,161

Constitution of provisions 2,550,311,301 43,833,877 155,415,722 43,025,494 139,883,705 2,932,470,099

At December 31, 2011 and 2010, the minimum provision required by the (a) Superintendence of Banks correspond to the amounts determined based on the self-assessment performed by the Bank at such dates. This provision also includes the provision required for the suspension of the recognition of the exchange differences on the loans in foreign currency classified D and E. In the event that the provisions determined are less than those constituted, the Superintendence of Banks does not allow the release of provisions, without its previous authorization. The excess of provisions above the minimum required at December 31, 2011 and 2010 of RD$135 million and RD$132 million, respectively, does not exceed 2% of assets and risk weighted contingencies allowed under the banking regulations in force.

Corresponds to the provision for assets acquired through settlement of loans.(b)

This provision is included in other liabilities, see Note 19.(c)

2010

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15 OBligAtiOnS helD By the PuBlicObligations held by the public are detailed as follows:

By typea)

2011Local

CurrencyWeighted

AnnualForeign

CurrencyWeighted

Annual TotalRD$ Rate RD$ Rate RD$

Demand 36,964,063,209 1.09% - - 36,964,063,209

Savings 29,321,892,643 0.72% 37,316,226,404 0.25% 66,638,119,047

Term 27,896,499,963 7.87% 6,641,358,587 1.39% 34,537,858,550

Interests

payable 96,276,569 - 5,400,964 - 101,677,533

94,278,732,384 2.98% 43,962,985,955 0.42% 138,241,718,339

2010

LocalCurrency

Weighted Annual

Foreign Currency

Weighted Annual Total

RD$ Rate RD$ Rate RD$

Demand 34,937,363,306 1.05% - - 34,937,363,306

Savings 27,486,601,952 0.75% 32,008,328,867 0.21% 59,494,930,819

Term 22,728,400,727 5.97% 4,495,321,211 0.80% 27,223,721,938

Interests

payable 61,160,058 - 1,614,216 - 62,774,274

85,213,526,043 2.26% 36,505,264,294 0.28% 121,718,790,337

By sectorb)

2011Local

CurrencyWeighted

AnnualForeign

CurrencyWeighted

Annual TotalRD$ Rate RD$ Rate RD$

Public non-

financial 392,018,746 5.70% 84,099,615 1.39% 476,118,361

Private

non-

financial 93,790,437,069 2.97% 43,873,485,376 0.42% 137,663,922,445

Interests

payable 96,276,569 - 5,400,964 - 101,677,533

94,278,732,384 2.98% 43,962,985,955 0.42% 138,241,718,339

2010Local

CurrencyWeighted

AnnualForeign

CurrencyWeighted

Annual TotalRD$ Rate RD$ Rate RD$

Public non-

financial 413,971,230 5.22% 56,186,297 0.80% 470,157,527

Private

non-

financial 84,738,394,755 2.25% 36,447,463,781 0.28% 121,185,858,536

Interests

payable 61,160,058 - 1,614,216 - 62,774,274

85,213,526,043 2.26% 36,505,264,294 0.28% 121,718,790,337

By maturity datec)

2011Local

CurrencyWeighted

AnnualForeign

CurrencyWeighted

Annual TotalRD$ Rate RD$ Rate RD$

From 0 to 15 days 67,154,750,157 0.99% 38,418,593,354 0.26% 105,573,343,511

From 16 to 30 days 827,140,346 6.69% 899,986,110 0.72% 1,727,126,456

From 31 to 60 days 1,496,760,265 6.54% 976,942,606 1.84% 2,473,702,871

From 61 to 90 days 1,381,080,294 6.72% 617,228,054 1.50% 1,998,308,348

From 91 to 180 days 4,831,577,774 7.73% 1,263,283,043 1.43% 6,094,860,817

From 181 to 360 days 13,173,941,225 8.07% 1,534,934,599 1.67% 14,708,875,824

More than 1 year 5,317,205,755 8.64% 246,617,225 2.08% 5,563,822,980

Interests payable 96,276,568 - 5,400,964 - 101,677,532

94,278,732,384 2.98% 43,962,985,955 0.42% 138,241,718,339

2010Local

CurrencyWeighted

AnnualForeign

CurrencyWeighted

Annual TotalRD$ Rate RD$ Rate RD$

From 0 to 15 days 62,944,225,241 0.95% 33,027,053,483 0.22% 95,971,278,724

From 16 to 30 days 375,289,291 4.82% 986,767,944 0.52% 1,362,057,235

From 31 to 60 days 762,308,767 4.90% 423,539,553 0.78% 1,185,848,320

From 61 to 90 days 659,585,150 4.62% 245,324,348 0.84% 904,909,498

From 91 to 180 days 2,561,797,838 4.93% 786,764,793 1.01% 3,348,562,631

From 181 to 360 days 11,468,739,603 5.87% 1,004,582,033 1.10% 12,473,321,636

More than 1 year 6,380,420,095 6.98% 29,617,924 0.94% 6,410,038,019

Interests payable 61,160,058 - 1,614,216 - 62,774,274

85,213,526,043 2.26% 36,505,264,294 0.28% 121,718,790,337

Notes to the Financial Statements (continuation)

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At December 31, 2011 and 2010, obligations held by the public include restricted amounts:

2011Inactive

AccountsSeized Funds Collateralized

Deceased Clients Total

RD$ RD$ RD$ RD$ RD$

Obligations held by the public:

Demand 40,248,411 565,716,875 - 13,165,613 619,130,899

Savings 321,202,090 184,235,750 418,030,608 65,848,058 989,316,506

Term - 297,317,375 1,961,379,248 28,266,877 2,286,963,500

361,450,501 1,047,270,000 2,379,409,856 107,280,548 3,895,410,905

2010Inactive

AccountsSeized Funds Collateralized

Deceased Clients Total

RD$ RD$ RD$ RD$ RD$Obligations held

by the public:

Demand 35,774,492 474,202,440 - 9,071,056 519,047,988

Savings 341,633,289 148,728,889 556,415,548 46,071,356 1,092,849,082

Term - 215,021,631 1,608,712,138 12,444,532 1,836,178,301

377,407,781 837,952,960 2,165,127,686 67,586,944 3,448,075,371

At December 31, 2011 and 2010, obligations held by the public include the following amounts of inactive accounts:

2011

Term from

3 to 10Years

Term of More

than 10 Years Total

RD$ RD$ RD$

Obligations held by the public:

Demand 39,768,359 480,052 40,248,411

Savings 314,967,799 6,234,291 321,202,090

354,736,158 6,714,343 361,450,501

2010

Term from

3 to 10Years

Term of More

than 10 Years Total

RD$ RD$ RD$

Obligations held by the public:

Demand 35,262,693 511,799 35,774,492

Savings 335,936,387 5,696,902 341,633,289

371,199,080 6,208,701 377,407,781

16 DePOSitS frOM lOcAl AnD fOreign finAnciAl entitieSDeposits from local and foreign financial entities consist of:

By typea) 2011 2010RD$ RD$

Demand 1,488,258,241 1,381,172,540

Savings 454,865,186 61,692,993

Term 2,912,495,407 770,110,281

Interests payable 2,463,023 1,590,651

4,858,081,857 2,214,566,465

By maturity dateb) 2011 2010RD$ RD$

From 0 to 15 days 2,899,883,983 1,458,401,477

From 16 to 30 days 1,375,133,755 12,679,677

From 31 to 60 days 50,188,299 627,253

From 61 to 90 days 110,952,635 1,131,690

From 91 to 180 days 208,084,218 135,462,370

From 181 to 360 days 185,997,536 543,951,930

More than one year 25,378,408 60,721,417

Interests payable 2,463,023 1,590,651

4,858,081,857 2,214,566,465

Notes to the Financial Statements (continuation)

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By currencyc)

2011

Local

Currency

Weighted

Average

Annual

Foreign

Currency

Weighted

Average

Annual TotalRD$ Rate RD$ Rate RD$

Demand 1,488,258,241 1.09% - - 1,488,258,241

Savings 187,179,692 0.72% 267,685,494 0.25% 454,865,186

Term 448,325,628 8.65% 2,464,169,779 2.51% 2,912,495,407

Interests

payable 911,222 - 1,551,801 - 2,463,023

2,124,674,783 2.65% 2,733,407,074 2.29% 4,858,081,857

2010

Local

Currency

Weighted

Average

Annual

Foreign

Currency

Weighted

Average

Annual TotalRD$ Rate RD$ Rate RD$

Demand 1,381,172,541 1.05% - - 1,381,172,541

Savings 4,180,801 0.75% 57,512,192 0.21% 61,692,993

Term 652,841,686 6.78% 117,268,594 1.54% 770,110,280

Interests

payable 1,578,616 - 12,035 - 1,590,651

2,039,773,644 2.88% 174,792,821 1.10% 2,214,566,465

At December 31, 2011 and 2010, deposits of financial institutions in the country include RD$238,293,911 and RD$138,703,905, respectively, corresponding to amounts restricted affected as collateral and seized funds.

17 BOrrOweD funDS Borrowed funds consist of:

2011Creditors Type Collateral Rate % Maturity Balance

RD$

Local financial a) entities:

Central Bank of the Dominican Republic

Line of credit (Note 24 (i))

Without collateral - N/A 8,861,420

Foreign b) financial entities:

Wells Fargo Bank

Line of credit (corresponds to US$20,424,148)

Without collateral 1.32% 2012 790,910,823

Proparco

Line of credit (corresponds to US$23,275,862)

Without collateral 5.21%

2012- 2018 901,341,465

Citibank

Line of credit (corresponds to US$77,652,905)

Without collateral 1.99% 2012 3,007,054,374

4,699,306,662

Interests c) payable (correspond to US$221,490) 8,577,066

4,716,745,148

2010Creditors Type Collateral Rate % Maturity Balance

RD$

a) Local financial entities:

Central Bank of the Dominican Republic

Line of credit (Note 24 (i))

Without collateral - N/A 8,861,420

Foreign b) financial entities:

Wells Fargo Bank

Line of credit (corresponds to US$21,407,241)

Without collateral 1.67% 2011 801,112,465

Interests c) payable (corresponds to US$31,241) 1,169,108

811,142,993

Notes to the Financial Statements (continuation)

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18 certificAteS Of DePOSitSCertificates of deposits consist of:

By typea)

2011

Local Currency

Weighted Average Total

RD$ Rate RD$

Bonds 1,288,295 10.63% 1,288,295

Mortgage bonds 16,528,523 10.58% 16,528,523

Financial certificates 31,746,661,215 8.89% 31,746,661,215

Interests payable 108,898,989 - 108,898,989

31,873,377,022 8.89% 31,873,377,022

2010

Local Currency

Weighted Average Total

RD$ Rate RD$

Bonds 1,451,911 10.83% 1,451,911

Mortgage bonds 14,661,097 10.49% 14,661,097

Financial certificates 29,486,357,933 4.92% 29,486,357,933

Interests payable 61,089,075 - 61,089,075

29,563,560,016 4.92% 29,563,560,016

By sectorb)

2011

Local Currency

Weighted Average Total

RD$ Rate RD$

Public non-financial 2,655,896,455 11.98% 2,655,896,455

Private non-financial 20,503,958,727 7.39% 20,503,958,727

Financial 8,604,622,851 11.51% 8,604,622,851

Interests payable 108,898,989 - 108,898,989

31,873,377,022 8.89% 31,873,377,022

Notes to the Financial Statements (continuation)

2010

Local Currency

Weighted Average Total

RD$ Rate RD$

Public non-financial 2,616,543,252 6.05% 2,616,543,252

Private non-financial 19,026,205,024 4.44% 19,026,205,024

Financial 7,859,722,665 5.73% 7,859,722,665

Interests payable 61,089,075 - 61,089,075

29,563,560,016 4.92% 29,563,560,016

By maturity datec)

2011

Local Currency

Weighted Average Total

RD$ Rate RD$

From 0 to 15 days 4,559,721,614 7.63% 4,559,721,614

From 16 to 30 days 8,632,244,740 9.83% 8,632,244,740

From 31 to 60 days 6,585,744,369 9.13% 6,585,744,369

From 61 to 90 days 4,628,095,603 8.31% 4,628,095,603

From 91 to 180 days 6,946,283,425 8.78% 6,946,283,425

From 181 to 360 days 412,388,282 7.85% 412,388,282

Interests payable 108,898,989 - 108,898,989

31,873,377,022 8.89% 31,873,377,022

2010

Local Currency

Weighted Average Total

RD$ Rate RD$

From 0 to 15 days 7,099,985,431 4.97% 7,099,985,431

From 16 to 30 days 8,136,568,727 4.76% 8,136,568,727

From 31 to 60 days 5,216,338,187 4.98% 5,216,338,187

From 61 to 90 days 4,204,846,880 4.86% 4,204,846,880

From 91 to 180 days 4,760,519,277 5.13% 4,760,519,277

From 181 to 360 days 81,700,187 5.13% 81,700,187

More than 1 year 2,512,252 6.45% 2,512,252

Interests payable 61,089,075 - 61,089,075

29,563,560,016 4.92% 29,563,560,016

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At December 31, 2011 and 2010, certificates of deposits include restricted amounts for the following items:

2011Deceased

ClientsCollateral-

ized TotalRD$ RD$ RD$

Certificates of deposits:

Bonds 125,496 37,800 163,296

Mortgage bonds 657,866 - 657,866

Financial certificates 29,640,833 1,061,227,421 1,090,868,254

30,424,195 1,061,265,221 1,091,689,416

2010Deceased

ClientsCollateral-

ized TotalRD$ RD$ RD$

Certificates of deposits:

Bonds 119,171 86,815 205,986

Mortgage bonds 726,529 - 726,529

Financial certificates 29,823,958 1,170,218,307 1,200,042,265

30,669,658 1,170,305,122 1,200,974,780

19 Other liABilitieSThe detail of other liabilities is as follows:

2011 2010RD$ RD$

Demand obligations (include US$1,113,566 in 2011 and US$2,227,494 in 2010) (a) 1,296,521,933 1,181,589,611

Term obligations (include US$709,484 in 2011 and US$308,553 in 2010) 33,547,220 17,619,854

Unclaimed third party balances 110,954,825 110,344,809

Future exchange contract (corresponds to US$3,000,000, see related asset in Note 9) - 112,267,500

Sundry creditors (include US$326,023 in 2011 and US$830,655 in 2010) 886,657,699 899,016,243

Provision for contingencies (include US$982,565 in 2011 and US$973,813 in 2010) (b) (Note 14) 210,474,609 190,195,301

Other provisions (include US$81,051 in 2011 and US$83,993 in 2010) (c) 994,483,708 617,626,449

2011 2010RD$ RD$

Items pending allocation (include US$708,132 in 2011 and US$172,288 in 2010) 35,617,952 37,066,075

Other deferred credits (include US$4,884 in 2011 and US$163,500 in 2010) 28,004,855 17,407,908

3,596,262,801 3,183,133,750

Correspond to financial obligations that the Bank has undertaken and which are (a) repayable on demand, such as: certified checks, cashier’s checks, among others.

Correspond to provisions for contingent operations upon request of the (b) Superintendence of Banks of the Dominican Republic.

This category includes provisions for bonuses, loyalty program of Millas Popular, legal (c) contingencies (Note 24 h.) and taxes payable, among others.

20 SuBOrDinAteD DeBtSubordinated debt consists of:

2011

Creditors Type CollateralRate

% TermBalance

RD$

Various (a)Subordinated debt bonds

Without collateral Variable (a) 10 years 4,079,000,000

Debt issuance costs (b) (34,255,957)

4,044,744,043

Interests payable 5,988,199

4,050,732,242

2010

Creditors Type CollateralRate

% TermBalance

RD$

Various (a)Subordinated debt bonds

Without collateral Variable (a) 10 years 4,079,000,000

Debt issuance costs (b) (39,961,569)

4,039,038,431

Interests payable 4,696,515

4,043,734,946

Notes to the Financial Statements (continuation)

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(a) Corresponds to the subordinated bonds denominated in RD$ with an issuance made up of 4,100 bonds at par value of RD$1,000,000 each. This debt bears interest at an annual rate equivalent to the nominal weighted average interest rate for certificates of deposits and/or term deposits of the Commercial Banks, published by the Central Bank of the Dominican Republic plus 275 points (2.75%). The rate thus determined is fixed for a six-month period and reviewed on a semi-annual basis. The interest rates on this subordinated debt as of December 31, 2011 and 2010 were 10.57% and 8.29%, respectively.

In addition these bonds have the following characteristics:

Their payment is subject to the compliance with the other obligations of the i) financial institutions.

They cannot be reacquired or redeemed early by the issuer.ii)

The debt of the issuer represented by the subordinated bond will be available iii) to absorb losses in the event of dissolution or liquidation of the issuer.

The creditor should be a corporate entity, domestic or foreign. The bonds iv) cannot be acquired directly or indirectly by local financial entities or off-shore entities, unless they are owned by a leading international bank.

The securities will be redeemed in its entirety with a single capital term at v) maturity on the redemption date, which is December 2017.

In accordance with Prudential Regulation of Capital Adequacy Standard, these bonds are considered for regulatory capital purposes as secondary capital. In this regard, the Superintendence of Banks of the Dominican Republic approved the use of this issuance as secondary capital for the purpose of calculating the solvency ratio.

(b) Correspond to costs incurred in the issuance of bonds, which are deferred and amortized using the straight-line method over the term of the bonds.

21 ShArehOlDerS’ eQuityShareholders’ equity consists of:

Authorized IssuedQuantity RD$ Quantity RD$

Common shares

Balance at December 31, 2011 300,000,000 15,000,000,000 207,657,619 10,382,880,950

Authorized IssuedQuantity RD$ Quantity RD$

Common shares

Balance at December 31, 2010 200,000,000 10,000,000,000 186,347,862

9,317,393,100

On March 19, 2011 the Extraordinary-Ordinary Shareholders’ Equity approved the increase of the Authorized Paid-in Capital to the amount of RD$15,000,000,000.

At December 31, 2011 and 2010, the shareholding structure is as follows:

2011

ShareholdersQuantity of

Shares

Amount

RD$ Participation

Corporate entities

Related entity 204,849,705 10,242,485,250 98.65%

Third parties 371,272 18,563,600 0.18%

205,220,977 10,261,048,850 98.83%

Physical persons 2,436,642 121,832,100 1.17%

Total 207,657,619 10,382,880,950 100%

2010

ShareholdersQuantity of

Shares

Amount

RD$ Participation

Corporate entities

Related entity 183,521,103 9,176,055,150 98.48%

Third parties 448,876 22,443,800 0.24%

183,969,979 9,198,498,950 98.72%

Physical persons 2,377,883 118,894,150 1.28%

Total 186,347,862 9,317,393,100 100%

The common shares of the Bank have a nominal value of RD$50 each.

Notes to the Financial Statements (continuation)

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In 2011 and 2010 the common shares issued have a value of RD$20 over the nominal value. The total premium received for these shares at December 31, 2011 and 2010, amounts to RD$2,128,805,560 and RD$1,702,610,420, respectively, and is presented as additional paid-in capital in the equity item in the balance sheet.

From the earnings corresponding to the years ended December 31, 2010 and 2009, dividends in shares and in cash were declared and paid, with the previous authorization of the Ordinary Shareholders’ Meetings dated March 19, 2011 and March 20, 2010, respectively, at a rate of one dividend declared per share of RD$25.95 and RD$18.85 for the respective periods, as detailed below:

2011RD$

2010RD$

Cash dividends 3,908,355,592 2,888,107,008

Stock dividends 291,306,006 36,452,710

4,199,661,598 2,924,559,718

In 2011 and 2010 the Bank received capital contribution in cash from its parent company, Grupo Popular, S. A. of RD$1,200 million and RD$1,901 million, respectively, with the purpose of sustaining the growth experienced by its productive assets in such years.

21.1 Other eQuity reSerVeS

Article 47 of the New Commercial Societies and Individual Enterprises of Limited Responsibilities General Law No. 479-08, modified by Law No. 31-11, establishes that the anonymous entities and entities of limited responsibility should constitute a reserve of not less than five per cent (5%) of their realized and liquid earnings resulting from the income statement for the year until such reserve equals ten per cent (10%) of the paid-in capital. This reserve is not available for dividends distribution, except in the case of the dissolution of the Bank.

21.2 reVAluAtiOn SurPluS

Corresponds to the revaluation effect of certain real estate properties of the Bank as of December 31, 2004, net of the corresponding accumulated depreciation.

22 incOMe tAx The income tax shown in the income statement for the years ended December 31, 2011 and 2010 consists of:

2011RD$

2010RD$

Current (1,486,751,295) (1,069,164,150)

Deferred of the year 171,762,970 28,682,558

Income tax from previous years (5,173,284) (3,017,305)

(1,320,161,609) (1,043,498,897)

Current income tax

On June 24, 2011, Law No. 139-11 related to the Fiscal Reform was enacted, by which the corporate income tax rate increased from 25% to 29% effective the 2011 fiscal year and for a transitory period of two years. The current income tax presented for the fiscal years 2011 and 2010 was determined at the income tax rates of 29% and 25%, respectively, over the net taxable income for these years.

Law No. 139-11 additionally establishes effective the fiscal year 2011, and for a transitory period of two years, the 1% tax on net financial assets, in replacement of the anual assets tax of 1%. In the case of financial institutions, the anual assets tax was determined on the book value of property, furniture and equipment as presented in the balance sheet, excluding revaluation. This assets tax was an alternative or a minimum tax, co-existing with the income tax, by which taxpayers should settle and pay whichever was greater on an annual basis. In 2011 the 1% tax on net financial assets in force amounted to RD$632 million which is classified within operating expenses in the income statement (See Note 29).

The reconciliation of the results before taxes as per accounting records with the taxable income for fiscal purposes, is summarized below:

2011RD$

2010 RD$

Results before income tax 5,254,691,646 4,784,975,758

Plus (less) items that generate differences

Permanent:

Dividends received in cash, net of withholding tax (37,607,666) (5,674,469)

Tax on complementary retributions 234,346,068 336,532,616

Revenues exempted on investment in Dominican Republic Government bonds (256,753,425) (534,910,473)

Notes to the Financial Statements (continuation)

(Continued)

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2011RD$

2010 RD$

Other non-deductible items 258,026,557 162,683,724

198,011,534 (41,368,602)

Temporary:

Difference in fiscal depreciation expense (454,522,852) (418,557,302)

Leasing installments accrued (a) 256,457,426 250,773,929

Financial leasing revenues (a) (137,077,786) (85,550,651)

Gain from the sale of property, furniture and equipment (18,270,519) (113,593,381)

Fiscal (gain) loss on the sale of fixed assets – category I (21,886) 41,642,171

Impairment of accounts receivable 10,419,249 6,922,970

Deduction of provision for loans portfolio (b) (25,530,568) (25,530,568)

Deduction of provision for investments (b) (416,880) (416,880)

Provision for contingent operations 20,279,308 16,495,927

Provision for assets acquired through settlement of loans 94,652,945 (107,713,624)

Provision for leasing portfolio (4,059,289) 11,390,249

Other provisions (miles) 18,111,049 18,999,949

Exchange difference of the current year (13,743,190) (2,956,950)

Exchange difference of the previous year (2,639,200) (4,517,042)

Inflation adjustment of other nonmonetary assets (69,612,386) (54,339,353)

(325,974,579) (466,950,556)

Net taxable income 5,126,728,601 4,276,656,600

These temporary items result from the differences between fiscal and accounting (a) treatment of financial leases; for fiscal purposes accrued installments are accounted for as income, whereas for accounting purpose, income is represented by the accrued interests included in each installment invoiced.

Corresponds to the deduction of the provisions on loans and investments recorded (b) until December 31, 2000. These provisions started to be deducted for fiscal purposes over a term of 10 years beginning in 2002, according to the dispositions of the tax authorities.

The income tax payable at December 31, 2011 and 2010 is detailed as follows:

2011 RD$

2010 RD$

Current tax 1,486,751,295 1,069,164,150

Advances and tax credits for dividend withholdings (*) (1,330,866,106) (1,319,897,137)

Income tax payable (credit balance) at year end (**) 155,885,189 (250,732,987)

(*) Pursuant to the Bank’s policy, it subrogates the withholding tax on cash dividends established in Article 16 of Law No. 11-92 (Dominican Tax Code), which allows an entity (in this case the Bank) to honor a third party’s income tax liability. Based on this concept, the Bank absorbed the total withholding tax on dividends of RD$977,088,898 and RD$722,026,241, for fiscal years 2011 and 2010, respectively. These amounts were credited against its own tax obligations, thus compensated, as established in Article 308 of the Dominican Tax Code.

(**) The income tax payable in 2011 is presented in the Other Liabilities item (Note 19) and the credit balance in 2010 is presented in the Other Assets item (Note 13). In addition, at December 31, 2011 a credit balance of RD$49 million is presented to be compensated with future advances.

Deferred income tax

The movement of the deferred income tax assset is presented as follows:

2011Initial

BalanceRD$

Adjustment of the Period

RD$

Final Balance

RD$

Provision for loans portfolio 6,382,642 (6,382,642) -

Provision for investments 104,220 (104,220) -

Provision for assets acquired through settlement of loans 323,588,353 56,039,236 379,627,589

Property, furniture and equipment 507,716,974 83,518,792 591,235,766

Provision for contingent operations 47,548,825 5,069,827 52,618,652

Other provisions 62,561,365 27,857,442 90,418,807

Net investment in financial leasing (172,535,950) (41,686,904) (214,222,854)

Effect of the inflation adjustment of non-monetary assets 101,398,467 50,697,727 152,096,194

Exchange difference (739,237) (3,246,288) (3,985,525)

876,025,659 171,762,970 1,047,788,629

Notes to the Financial Statements (continuation)

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2011

Limit Concept

According to

Regulation

According to Entity

Investments in shares:

Foreign financial entites 2,076,576,190 2,827,110

Non-financial entities 1,038,288,095 2,000

Supporting entities and related services 2,076,576,190 449,929,982

Property, furniture and equipment 18,374,636,308 9,414,111,995

Contingencies 55,123,908,924 25,705,568,926

Short-term financings in foreign currency (a) 3,753,505,953 1,649,121,052

2010

Limit Concept

According to

Regulation

According to Entity

Legal reserve RD$ 19,697,743,172 20,111,660,711

Legal reserve US$ 195,802,500 199,174,357

Solvency 10% 13.67%

Individual loans:

With actual collaterals 3,358,234,425 2,135,648,948

Without actual collaterals 1,679,117,213 1,449,102,726

Related parties 8,395,586,064 6,910,509,494

Investments in shares:

Foreign financial entities 1,863,478,620 2,732,071

Non-financial entities 931,739,310 2,000

Supporting entities and related services 1,863,478,620 119,988,459

Property, furniture and equipment 16,791,172,127 6,436,272,370

Contingencies 50,373,516,381 21,121,907,125

Short-term financings in foreign currency (a) 3,585,522,849 336,802,500

Circular Letter SB No. 2-2002 establishes that for this limit, borrowed funds for letters of (a) credit and outstanding acceptances payable are not considered.

2010Initial

BalanceRD$

Adjustment of the Period

RD$

Final Balance

RD$Provision for loans portfolio 12,765,284 (6,382,642) 6,382,642

Provision for investments 208,440 (104,220) 104,220

Provision for assets acquired through settlement of loans 350,516,759 (26,928,406) 323,588,353

Property, furniture and equipment 500,877,172 6,839,802 507,716,974

Provision for contingent operations 43,424,843 4,123,982 47,548,825

Other provisions 56,081,703 6,479,662 62,561,365

Net investment in financial leasing (192,667,745) 20,131,795 (172,535,950)

Effect of the inflation adjustment of non-monetary assets 75,007,384 26,391,083 101,398,467

Exchange difference 1,129,261 (1,868,498) (739,237)

847,343,101 28,682,558 876,025,659

At December 31, 2011 and 2010, the deferred income tax asset is included in Other assets, under Deferred charges (Note 13).

23 legAl liMitS AnD technicAl rAtiOSThe details of the limits and technical ratios required by the banking regulations in force are as follows:

2011

Limit Concept

According to

Regulation

According to Entity

Legal reserve RD$ 19,743,649,428 20,114,522,473

Legal reserve US$ 239,851,745 299,851,805

Solvency 10% 12.53%

Individual loans:

With actual collaterals 3,674,927,262 2,498,631,562

Without actual collaterals 1,837,463,631 1,833,031,013

Related parties 9,187,318,154 7,946,693,617

Notes to the Financial Statements (continuation)

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24 cOMMitMentS AnD cOntingencieSThe main commitments and contingencies held by the Bank at December 31, 2011 and 2010 are:

Contingent operationsa)

In the normal course of the business, the Bank enters into different commitments and incurs in certain contingent liabilities. The most important balances of these commitments and contingent liabilities include:

2011 2010RD$ RD$

Collaterals granted

Endorsements

Commercial 890,063,496 639,720,212

Other endorsements (financial) 215,749,671 144,343,928

Guarantee bonds 5,888,268 7,111,642

Other collaterals 321,837,378 298,785,962

Letters of credit issued and not negotiated 548,190,873 441,975,713

Lines of credit of automatic use 23,723,839,240 19,589,969,668

25,705,568,926 21,121,907,125

At December 31, 2011 and 2010, the Bank has constituted provisions for probable losses in these operations amounting to RD$210,474,609 and RD$190,195,301, respectively (Note 19).

Rent of premises, real estate and ATMsb) The Bank maintains rental contracts of the premises in which its branches, agencies and ATMs operate. For the years ended December 31, 2011 and 2010, the corresponding expenses amounted to approximately RD$290 million and RD$243 million, respectively, that are included in the operating expenses item in the income statement.

Superintendence feec) Through the resolution of the Monetary Board of the Dominican Republic, the financial institutions should contribute 1/5 of 1% of the total net assets to cover the inspection services of the Superintendence of Banks of the Dominican Republic. The corresponding expenses for the years ended December 31, 2011 and 2010 were approximately RD$333 million and RD$299 million, respectively, and are included in the operating expenses item in the income statement.

Contingency Fundd) Article 64 of the Monetary and Financial Law No. 183-02 dated November 21, 2002 and the Regulation for the Operation of the Contingency Fund, adopted through the First Resolution ruled by the Monetary Board dated November 6, 2003, authorizes the Central Bank of the Dominican Republic (BCRD) to collect quarterly contributions from the financial institutions for the Contingency Fund. The contribution should be 0.25% of the total assets on a quarterly basis less the quarterly installment of the supervision of the Superintendence of Banks of the Dominican Republic. Such contribution should not exceed 1% of the total public deposits. The corresponding expenses for the years ended December 31, 2011 and 2010, were approximately RD$150 million and RD$119 million, respectively, and are included in the other operating expenses item in the income statement.

Fund for the Strengthening of Banking Industrye) As part of the implementation of the Special Program for Risk Prevention of the Financial Institutions as stated by Law No. 92-04, the BCRD formed in 2004 the Fund for the Strengthening of Banking Industry or “FCB”, with the purpose of protecting depositors and avoiding systemic risk. The FCB is composed of mandatory contributions of the financial institutions and other sources according to this law. Such contributions are determined over the total public deposits with a minimum annual rate of 0.17% payable on a quarterly basis. Article 6 of this law establishes, among other aspects, that the financial entities should not contribute when the accumulated amount of their contributions since the enactement of this laws equals or exceeds the 10% of the funds contributed by the State to the FCB, net of any investment recovered, collection from the sale of assets, or any other revenues that could be received by this Fund; in this case, the Central Bank will determine the procedure for the reimbursement of the excess amount contributed. The accumulated contributions performed by the Bank at December 31, 2011 amount to RD$1,436 million.

The contributions made by the financial entities and other sources to the FCB are presented as funds in administration in the financial statements published by the BCRD. In the financial statements of the Bank, these contributions are recorded as operating expenses and amounted to RD$279 million and RD$244 million for the years ended December 31, 2011 and 2011, respectively.

Membership agreementf) The Bank maintains an agreement for access to an electronic network of exchange of banking and commercial transaction exchange funds, of which services include affiliation, monitoring of cashiers, debit cards services through sales points (P.O.S) and processing, that are billed on a monthly basis. The agreement establishes volume discounts for over 40,000 transactions processed per month. The corresponding expenses for the years ended December 31, 2011 and 2010 were approximately RD$156 million and RD$145 million, respectively, and are included in the other operational expenses item in the income statement.

Notes to the Financial Statements (continuation)

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Credit card licensesg) The Bank has entered into agreements for the use and issuance of VISA and Mastercard credit cards for an indefinite period, which can be cancelled at any time by mutual consensus of the parties. The obligations of the Bank for the use of these licenses include the payment of fees based on the number of transactions, among other aspects. In addition, the Bank has entered into an agreement with a related entity by managing the process of the exchange of transactions through debit cards at the points of sale in the affiliated establishments. The corresponding expenses for the years ended December 31, 2011 and 2010 were approximately RD$195 million and RD$148 million, respectively, and are included under the other operational expenses item in the income statement.

Lawsuitsh) At December 31, 2011 and 2010, there are several lawsuits arising from the normal course of the Bank’s business. The Bank has estimated, based on the opinion of its legal counsels, a loss resulted from the outstanding lawsuits of approximately RD$27 million at December 31, 2011 and 2010. The amount thus determined is accrued in the other liabilities item in the balance sheet.

Letters of credit obligations in foreign currency i) The Bank maintains contingent commitments of RD$8.9 million at December 31, 2011 and 2010, arising from letters of credit approved and issued with financing from the Commodity Credit Corporation (CCC) through foreign banks, under special agreements. The Bank believes that any negative effect that might result from the liquidation of these commitments and related interests as a result of the official exchange rates being adjusted to the market exchange rates, would be absorbed by the Dominican government through its official financial institutions or by the official and private institutions that participated in the negotiation of these letters of credit CCC, therefore, it believes that it will not suffer material losses, if any, as a consequence of this situation.

Financial leasing arrangements j) At December 31, 2011 and 2010, the Bank has commitments for the residual values as established in leasing agreements with the purchase option. The corresponding commitment amounts to approximately RD$229 million at December 31, 2011 and 2010.

25 finAnciAl incOMe AnD exPenSeS The main financial income and expenses recognized during the years ended December 31, 2011 and 2010 consist of:

2011 2010

RD$ RD$

Financial income:

Loans portfolio

Commercial loans 9,302,717,761 6,864,709,221

Consumer loans 6,963,023,722 6,109,171,478

Mortgage loans 2,625,049,161 2,160,699,894

Subtotal 18,890,790,644 15,134,580,593

Investments

Available-for-sale investments 2,443,126 28,624,884

Other investments in debt instruments 2,112,713,161 1,793,088,630

2,115,156,287 1,821,713,514

Income on investments

Available-for-sale investments 968,311 2,978,715

Other investments in debt instruments 1,017,716,367 1,126,331,945

Subtotal 1,018,684,678 1,129,310,660

Total 22,024,631,609 18,085,604,767

Financial expenses:

Deposits

Demand deposits (2,623,281,058) (1,914,202,736)

Obligations held by the public (2,189,663,010) (1,223,086,579)

Subordinated debt (378,798,146) (309,466,476)

Subtotal (5,191,742,214) (3,446,755,791)

Loss on investments:

Available-for-sale investments (143,438) (25,394,817)

Other investments in debt instruments (115,361,615) (81,175,327)

Subtotal (115,505,053) (106,570,144)

Borrowed funds (56,768,796) (1,690,108)

(5,364,016,063) (3,555,016,043)

Notes to the Financial Statements (continuation)

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2011 2010RD$ RD$

Real estate services (29,720,376) (27,251,594)

Other services (104,473,632) (79,274,624)

(611,918,918) (487,255,985)

Sundry expenses – other operative expenses (116,571,242) (100,421,126)

Total (728,490,160) (587,677,111)

27 Other incOMe (exPenSeS)The main other income (expenses) recognized during the years ended December 31, 2011 and 2010, consist of:

2011 2010RD$ RD$

Other income:

Recovery of written-off assets 741,041,227 601,546,796

Income from non-financial investments 43,703,360 23,927,106

Gain from the sale of property, furniture and equipment 21,509,781 114,190,144

Gain from the sale of assets acquired through settle-ment of loans 27,292,814 41,132,288

Income from recovery of expenses 200,947,255 293,529,931

Income from leasing of assets 61,802,367 17,848,025

Other income (a) 228,073,748 201,428,330

1,324,370,552 1,293,602,620

Other expenses:

Expenses for assets acquired through settlement of loans (60,393,476) (60,662,618)

Loss on the sale of property, furniture and equipment (3,400,268) (1,423,723)

Loss on the sale of assets acquired through settlement of loans (36,477,658) (35,495,549)

Loss on thefts, assaults and frauds (180,947,108) (233,898,789)

Expenses for uncollectible accounts receivable (71,004,856) (71,635,217)

Expenses for sundry assets - (20,087,500)

Donations made by the Bank (197,907,166) (162,286,105)

Other expenses (a) (108,827,512) (118,894,455)

(658,958,044) (704,383,956)

Other income includes RD$47.8 million of surplus in operations (2010: RD$53.7 mil-(a) lion) and RD$27 million of services provided to related entities. Other expenses include RD$44.1 million of shortfall in operations (2010: RD$57.3 million).

26 Other OPerAtiOnAl incOMe (exPenSeS)The main other operational income (expenses) recognized during the years ended December 31, 2011 and 2010 consist of:

2011 2010RD$ RD$

Other operational income

Commissions on services:

Commissions on drafts and transfers 225,473,661 193,155,970

Commissions of foreign commerce - 19,105,989

Commissions on certification of checks and sale of administrative checks 106,933,102 111,993,790

Commissions on collections 6,939,180 8,898,609

Commissions on credit cards 1,728,938,610 1,382,569,108

Commissions on letters of credit 9,081,488 10,716,607

Commissions on collaterals granted 49,410,614 35,097,489

Commissions on overdrafts and funds in transit 918,493,537 870,707,222

Commissions on the use of automatic teller machines and points of sale 570,927,171 475,481,471

Commissions for charges of account services 767,425,391 582,466,226

Commissions for request of checkbooks 123,340,275 211,616,631

Other commissions collected 392,150,903 353,686,372

4,899,113,932 4,255,495,484

Commissions for exchange – gain from foreign

currencies 659,259,946 653,985,772

Sundry income

Available funds 26,020,559 21,760,532

Accounts receivable 1,159,445 2,006,243

Difference in liquidation of operations of cards 130,276 4,678,387

Other operational diverse income 4,507,480 3,490,658

31,817,760 31,935,820

Total 5,590,191,638 4,941,417,076

Other operational expenses

Commissions for services

Correspondent services (47,530,304) (52,303,797)

Stock exchange operations (1,780,800) (1,751,867)

Automatic teller machines and points of sale (186,704,370) (170,804,218)

Credit cards (241,709,436) (155,869,885)

Notes to the Financial Statements (continuation)

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28 reMunerAtiOnS AnD SOciAl BenefitSThe salaries and compensation to the employees recognized during the years ended December 31, 2011 and 2010 consist of:

2011 2010RD$ RD$

Salaries, wages and benefits to employees (4,713,644,431) (3,891,193,964)

Social insurance (306,932,818) (262,902,892)

Contributions to pension plans (Note 33) (152,773,380) (130,957,251)

Other expenses of personnel (a) (1,191,456,744) (1,061,502,777)

(6,364,807,373) (5,346,556,884)

Includes staff incentives, labor indemnities, training and other considerations. (a)

From such amounts accumulated at December 31, 2011 and 2010, RD$1,257,812,450 and RD$820,929,441, respectively, correspond to compensation of senior management, which are defined as those who have the position of vicepresident and forward.

At December 31, 2011 and 2010, the Bank had an average payroll of 5,852 and 5,283 employees, respectively.

29 OPerAtiVe exPenSeS – Other exPenSeSOther operative expenses, in the operative expenses line, consist of:

2011 2010RD$ RD$

Maintenance and repairs (320,715,170) (277,218,256)

Communications (279,860,846) (278,012,831)

Water, garbage and electric power (284,901,665) (228,862,834)

Lease of premises and equipment (331,838,139) (280,477,526)

Insurances (186,659,193) (194,001,157)

Papers, supplies and other materials (208,410,831) (254,589,393)

Legal expenses (118,371,159) (100,682,995)

Promotion and advertising (562,872,673) (516,935,435)

Loyalty program (416,945,725) (340,410,164)

Contributions to the Superintendence of Banks (Note 24 c)

(332,972,605) (299,130,462)

Contingency fund and fund for the strengthening of banking industry (Note 24 d) and e)) (429,592,802) (362,627,592)

2011 2010RD$ RD$

Service of call center (288,897,161) (256,205,041)

Safety services and transport of documents (245,278,140) (205,953,193)

Other taxes (a) (997,022,044) (439,179,257)

Other general and administrative expenses (477,013,294) (440,758,361)

(5,481,351,447) (4,475,044,497)

Include RD$632 million in 2011 corresponding to the 1% tax on net financial assets (a) established by Law No. 139-11 for a transitory period of 2 years (Note 22).

30 eVAluAtiOn Of riSkS30.1 intereSt rAteS riSk

The summary of the assets and liabilities subject to the risk of interest rates at December 31, 2011 and 2010, are presented below:

2011In Local

CurrencyRD$

In Foreign Currency

RD$

Assets sensitive to interest rates 120,022,939,046 28,280,031,898

Liabilities sensitive to interest rates (64,162,909,087) (13,861,685,431)

Net position 55,860,029,959 14,418,346,467

Exposure to interest rate 693,190,557 13,329,401

2010In Local

CurrencyRD$

In Foreign Currency

RD$

Assets sensitive to interest rates 108,946,262,041 23,480,525,392

Liabilities sensitive to interest rates (56,931,613,201) (5,452,306,645)

Net position 52,014,648,840 18,028,218,747

Exposure to interest rate 434,349,025 20,534,608

Interest rates may be reviewed periodically pursuant to the contracts established between the parties, except in some disbursed loans with specialized resources, whose rates are set by the authorities and specific agreements.

Notes to the Financial Statements (continuation)

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2011

MaturityUp To

30 Days RD$

From 31 To 90 Days

RD$

From 91 Days To 1 Year

RD$

From 1 to 5 Years RD$

More Than5 Years

RD$Total RD$

Assets:

Available funds 43,730,220,364 - - - - 43,730,220,364

Investments in securities 4,372,609,525 2,037,275,748 1,121,898,142 8,634,002,867 5,145,253,323 21,311,039,605

Loans portfolio 6,529,299,625 12,553,205,688 35,371,690,579 41,940,878,015 32,278,067,947 128,673,141,854

Outstanding acceptances receivable 5,068,380 980,306 18,961,464 31,840,253 - 56,850,403

Investments in shares - - - - 452,759,092 452,759,092

Interests receivable 1,807,631,266 - - - - 1,807,631,266

Accounts receivable 265,764,185 68,526,594 108,261,854 - 36,975,438 479,528,071

Other assets (a) 51,652,650 - - - - 51,652,650

Total Assets 56,762,245,995 14,659,988,336 36,620,812,039 50,606,721,135 37,913,055,800 196,562,823,305

Liabilities:

Obligations held by the public 107,402,147,499 4,472,011,219 20,803,736,641 5,563,822,980 - 138,241,718,339

Deposits in local and foreign financial entities 4,277,480,761 161,140,934 394,081,754 25,378,408 - 4,858,081,857

Certificates of deposits 13,300,865,343 11,213,839,972 7,358,671,707 - - 31,873,377,022

Borrowed funds 1,992,018,364 1,828,613,122 119,442,846 534,128,279 242,542,537 4,716,745,148

Notes to the Financial Statements (continuation)

2011

MaturityUp To

30 Days RD$

From 31 To 90 Days

RD$

From 91 Days To 1 Year

RD$

From 1 to 5 Years RD$

More Than5 Years

RD$Total RD$

Outstanding acceptances payable 5,068,380 980,306 18,961,464 31,840,253 - 56,850,403

Subordinated debt (b) 5,988,199 - - - 4,079,000,000 4,084,988,199

Other liabilities (b) 2,449,220,232 677,111,518 259,456,442 - - 3,385,788,192

Total Liabilities 129,432,788,778 18,353,697,071 28,954,350,854 6,155,169,920 4,321,542,537 187,217,549,160

Net Position (72,670,542,783) (3,693,708,735) 7,666,461,185 44,451,551,215 33,591,513,263 9,345,274,145

2010

MaturityUp To

30 Days RD$

From 31 To 90 Days

RD$

From 91 Days To 1 Year

RD$

From 1 to 5 Years RD$

More Than5 Years

RD$

Total RD$

Assets:

Available funds 36,617,716,167 - - - - 36,617,716,167

Investments in securities 7,125,445,989 2,768,869,683 735,741,737 9,252,200,724 2,547,691,020 22,429,949,153

Loans portfolio 5,235,344,234 11,804,955,024 32,486,333,464 36,735,970,579 25,691,991,558 111,954,594,859

Outstanding acceptances receivable 13,604,782 24,999,592 - - - 38,604,374

Investments in shares - - - - 122,722,530 122,722,530

Interests receivable 1,477,834,711 - - - - 1,477,834,711

Accounts receivable 349,528,437 210,219,409 2,419,643 115,943,992 31,542,168 709,653,649

Other assets (a) 34,126,697 - - - - 34,126,697

Total Assets 50,853,601,017 14,809,043,708 33,224,494,844 46,104,115,295 28,393,947,276 173,385,202,140

(Continued)

30.2 liQuiDity riSk

At December 31, 2011 and 2010, the detail of the maturity of the assets and liabilities are presented below:

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174

Banco Popular Dominicano, S. A. – Banco Múltiple Financial Statements on a Regulated Basis

175

Notes to the Financial Statements (continuation)

2010

MaturityUp To

30 Days RD$

From 31 To 90 Days

RD$

From 91 Days To 1 Year

RD$

From 1 to 5 Years RD$

More Than5 Years

RD$

Total RD$

Liabilities:

Obligations held by the public 97,396,110,233 2,090,757,818 15,821,884,267 3,974,569,666 2,435,468,353 121,718,790,337

Deposits in local and foreign financial entities 1,472,671,805 1,758,943 679,414,300 60,721,417 - 2,214,566,465

Certificates of deposits 15,297,643,233 9,421,185,067 4,842,219,464 2,512,252 - 29,563,560,016

Borrowed funds 1,169,108 - 801,112,465 - 8,861,420 811,142,993

Outstanding acceptances payable 13,604,782 24,999,592 - - - 38,604,374

Subordinated debt (b) 4,696,515 - - - 4,079,000,000 4,083,696,515

Other liabilities (b) 2,234,871,002 516,722,054 241,345,393 - - 2,992,938,449

Total Liabilities 116,420,766,678 12,055,423,474 22,385,975,889 4,037,803,335 6,523,329,773 161,423,299,149

Net Position (65,567,165,661) 2,753,620,234 10,838,518,955 42,066,311,960 21,870,617,503 11,961,902,991

Following is the detail of the liquidity ratio at December 31, 2011 and 2010:

2011

In Local Currency

In Foreign Currency

Liquidity ratio

To 15 days adjusted 233% 588%

To 30 days adjusted 261% 495%

To 60 days adjusted 261% 424%

To 90 days adjusted 281% 396%

Position

To 15 days adjusted 8,137,473,594 9,810,887,618

To 30 days adjusted 13,344,278,859 9,906,033,735

To 60 days adjusted 17,719,005,371 11,208,272,699

To 90 days adjusted 22,059,868,502 11,530,637,977

Global (months) (16.89) (19.82)

2010In Local

CurrencyIn Foreign Currency

Liquidity ratio

To 15 days adjusted 142% 536%

To 30 days adjusted 159% 555%

To 60 days adjusted 223% 588%

To 90 days adjusted 277% 605%

Position

To 15 days adjusted 2,469,840,213 6,622,915,435

To 30 days adjusted 4,682,709,608 8,131,462,684

To 60 days adjusted 10,595,474,790 10,502,293,155

To 90 days adjusted 14,751,419,933 10,781,378,838

Global (months) (20.76) (27.58)

(a) Correspond to operations which represent a collection right for the Bank.

(b) Correspond to operations which represent an obligation for the Bank.

The maturities of the above mentioned assets correspond to the payment obligations of the customers.

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31 fAir VAlue Of finAnciAl inStruMentSThe detail of the fair value of financial instruments at December 31, 2011 and 2010 is as follows:

2011

Book ValueRD$

Market ValueRD$

Financial assets:

Available funds 43,730,220,364 43,730,220,364

Investments:

Other investments in debt instruments (b) 21,836,400,426 N/A

Loans portfolio (b) 126,537,847,258 N/A

Investments in shares (b) 435,333,141 N/A

192,539,801,189

Financial liabilities:

Obligations held by the public:

Demand 36,964,063,209 36,964,063,209

Savings 66,638,119,047 66,638,119,047

Term (b) 34,537,858,550 N/A

Interests payable 101,677,533 101,677,533

Deposits from local and foreign financial entities:

Demand 1,488,258,241 1,488,258,241

Savings 454,865,186 454,865,186

Term (b) 2,912,495,407 N/A

Interests payable 2,463,023 2,463,023

Borrowed funds (b) 4,716,745,148 N/A

Certificates of deposits (b) 31,873,377,022 N/A

Subordinated debt (b) 4,050,732,242 N/A

183,740,654,608

2010

Book ValueRD$

Market ValueRD$

Financial assets:

Available funds 36,617,716,167 36,617,716,167

Investments:

Available-for-sale (a) 353,907,435 357,492,594

Other investments in debt instruments (b) 22,545,126,304 N/A

2010

Book ValueRD$

Market ValueRD$

Loans portfolio (b) 109,217,065,782 N/A

Investments in shares (b) 115,197,714 N/A

168,849,013,402

Financial liabilities:

Obligations held by the public:

Demand 34,937,363,306 34,937,363,306

Savings 59,494,930,819 59,494,930,819

Term (b) 27,223,721,938 N/A

Interests payable 62,774,274 62,774,274

Deposits from local and foreign financial entities:

Demand 1,381,172,540 1,381,172,540

Savings 61,692, 993 61,692,993

Term (b) 770,110,281 N/A

Interests payable 1,590,651 1,590,651

Borrowed funds (b) 811,142,993 N/A

Certificates of deposits (b) 29,563,560,016 N/A

Subordinated debt (b) 4,043,734,946 N/A

158,351,794,757

The book value is presented net of provisions as required by current regulations.(a)

(b) There is no active stock market in the Dominican Republic from which the market value of the investments in securities and shares can be obtained. Likewise, the Bank has not performed an analysis of the market value of its loans portfolio, obligations held by the public, deposits from local and foreign financial entities, certificates of deposits, bor-rowed funds and subordinated debt, which market values can be affected by changes in the interest rate, due to the fact that it was not practical and/or market information did not exist.

N/A: Not available.

Notes to the Financial Statements (continuation)

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32 trAnSActiOnS with relAteD PArtieSThe First Resolution of the Monetary Board dated March 18, 2004 approved the Regulation for Credit Limits to Related Parties which establishes the criteria to determine related parties for financial institutions.

The operations and the most important balances with related parties according to the criterion established in the Regulation for Credit Limits to Related Parties for the years ended December 31, 2011 and 2010 are:

2011Current Loans

Past Due Loans

Total in

Actual Collaterals

RD$ RD$ RD$ RD$

Related to the ownership 2,229,611,573 - 2,229,611,573 873,565,601

Related to the person 4,171,958,053 24,677,703 4,196,635,756 619,516,537

6,401,569,626 24,677,703 6,426,247,329 1,493,082,138

2010Current Loans

Past Due Loans

Total in

Actual Collaterals

RD$ RD$ RD$ RD$Related to the

ownership 169,634,603 39,575 169,674,178 -

Related to the person 5,566,091,964 34,316,044 5,600,408,008 1,811,921,221

5,735,726,567 34,355,619 5,770,082,186 1,811,921,221

The Bank maintains the amount of the loans granted to related parties within the limits established by the banking regulations.

The operations with identifiable related parties during the years ended December 31, 2011 and 2010, include:

2011

Effect in

Type of TransactionAmount

RD$Income

RD$Expenses

RD$

Transactions

Dividends declared 4,199,661,598 - -

Capital contributions 1,200,376,984 - -

Purchase of shares 329,941,523 - -

2011

Effect in

Type of TransactionAmount

RD$Income

RD$Expenses

RD$

Income

Interests and commissions on loans

493,772,642 493,772,642 -

Commissions for services 23,407,239 23,407,239 -

Commissions for exchange 2,872,820 2,872,820 -

Services provided 26,551,456 26,551,456 -

Sale of investments 7,271,504,198 130,239,497 -

7,818,108,355 676,843,654 -

Expenses

Interests on deposits 94,253,171 - 94,253,171

Commissions for services 24,204,906 - 24,204,906

Salaries and compensation to employees 6,364,807,373 - 6,364,807,373

Other expenses 1,076,642,377 - 1,076,642,377

7,559,907,827 - 7,559,907,827

2010

Effect in

Type of TransactionAmount

RD$Income

RD$Expenses

RD$

Transactions

Dividends declared 2,924,559,718 - -

Capital contributions 1,900,700,130 - -

Income

Interests and commissions on loans

357,185,690 357,185,690 -

Commissions for services 19,632,875 19,632,875 -

Commissions for exchange 3,265,819 3,265,819 -

Services provided 24,157,173 24,157,173 -

Sale of investments 5,719,667,321 135,167,893 -

Sale of property, furniture and equipment 273,535,043 100,235,503 -

6,397,443,921 639,644,953 -

(Continued)

Notes to the Financial Statements (continuation)

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Banco Popular Dominicano, S. A. – Banco Múltiple Financial Statements on a Regulated Basis

181

2010

Effect in

Type of TransactionAmount

RD$Income

RD$Expenses

RD$

Expenses

Interests on deposits 86,122,712 - 86,122,712

Commissions for services 22,227,244 - 22,227,244

Salaries and compensation to employees 5,346,556,884 - 5,346,556,884

Other expenses 932,748,658 - 932,748,658

6,387,655,498 - 6,387,655,498

The detail of the balances with related parties is as follows:

December 31, 2011

December 31, 2010

RD$ RD$

Other balances with related parties

Available funds 2,472,311 782,184,140

Investments - 149,690,000

Accounts receivable 13,794,136 82,995,481

Outstanding acceptances receivable 3,029,545 14,155,140

Investments in shares 445,969,982 116,028,459

Obligations held by the public 2,419,228,252 2,642,372,989

Deposits from local and foreign financial entities 1,334,966,684 21,849,897

Certificates of deposits 552,531,245 227,273,759

Other liabilities 415,716,256 330,127,870

33 PenSiOn funDSThe Dominican Social Security System, created by Law No. 87-01 published on May 9, 2001, includes a Contributory Regime that comprises employees and employers from public and private sectors financed by the latter, including the Dominican State as an employer. The Dominican Social Security System includes a mandatory affiliation of employees and employers to the Provisional Regime through the Pension Funds Administrators (AFP) and Health Risk Administrators (ARS). The Bank’s employees and executives are mainly affiliated to a related entity.

During the years ended December 31, 2011 and 2010, the Bank paid contributions of RD$152,773,380 and RD$130,957,251, respectively, which are included as operative expenses in the income statement.

34 nOn MOnetAry trAnSActiOnSNon monetary transactions occurred during the years ended December 31, 2011 and 2010, are the following:

2011 2010

RD$ RD$

Assets acquired through settlement of loans 1,291,186,748 445,644,955

Transfer of provision for loans portfolio to assets acquired through settlement of loans 166,046,790 112,211,524

Transfer of provision for loans portfolio to pro-vision for interests receivable 103,688 -

Transfer of provision for investments to provi-sion for loans portfolio 31,582,255 8,284,473

Transfer of provision for assets acquired through settlement of loans to provision for loans portfolio 55,999,999 260,161,197

Transfer of provision for contingent operations to provision for loans portfolio 35,367,958 124,985,666

Transfer of provision for assets acquired through settlement of loans to provision for interests receivable - 2,789,445

Sale of assets acquired through settlement of loans granted by the Bank to fulfill the sales price agreed 115,711,332 62,608,000

Unrealized loss on available-for-sale invest-ments - (3,396,621)

Dividends paid in shares 291,306,006 36,452,710

Transfer from accounts receivable to construc-tion in progress - 60,090,000

Transfer from sundry assets to property,furniture and equipment 54,194,072 66,709,372

Transfer from assets acquired through settle-ment of loans to other assets - 144,500,000

Transfer from sundry assets to intangible assets - 63,370,319

(Continued)

Write-off of loans portfolio 2,600,828,926 2,279,377,917

Write-off of interests receivable 204,154,642 207,339,002

Write-off of assets acquired through settle-ment of loans 35,787,124 -

Notes to the Financial Statements (continuation)

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Banco Popular Dominicano, S. A. – Banco Múltiple Financial Statements on a Regulated Basis

183

Transfer from results for the year to legal reserve 106,548,785 138,368,060

Transfer from property,furniture and equipment to sundry assets 44,541,281 -

Transfer from property,furniture and equipment to deferred charges 60,856,230 -

35 SuBSequent eventSOn December 27, 2011 the Superintendence of Banks issued the Circular Letter SB No. 005/11 by which it approves the Instructive for the Calculation of Interests and Commissions Applicable to Credit Cards. This instructive will be in force in a term of 120 calendar days since such date.

36 noteS RequiReD By the SuPeRintenDence of BAnkS of the DoMinicAn RePuBlic Resolution No. 13-94 of the Superintendence of Banks of the Dominican Republic and its modifications establish the minimum disclosures that the annual financial statements of financial entities should include. At December 31, 2011 the following notes are not included as they are not applicable:

Change in the accounting policies•

Memorandum accounts (administration of funds)•

Technical reserves•

Responsibilties•

Reinsurances•

Financial information by segments•

Other disclosures•

Important discontinued operations, indicating the date in which the event occured•

Reclassification of liabilities of regular significance•

Gains or losses on the sale of fixed assets or other assets in subsidiaries, branches or •foreign offices

Loss originated in disasters•

Effect of changes in the market value over the book value of investments in •securities

Effects of contracts, such as financial derivative instruments•

D I R E C T O R I E S

Members of the Board of Administration

committees of the Board of Administration

Principal officials

office Directory

184 185

Manuel A. GrullónPresident

executive President - Grupo Popular dominicano, s. A.

President of the Credit Committee of the Board of Administration Banco Popular dominicano, s.A. - Banco Múltiple

President of the executive and strategic Committees of the Boards of Administration - Banco Popular dominicano, s.A.; Banco Múltiple and Grupo Popular, s. A.

Member of the Corporate Governance Committees of the Boards of Administration

Banco Popular dominicano, s.A.; Banco Múltiple and Grupo Popular, s. A.

Member of the executive Committee - Popular Bank, Ltd., inc.

Member of the Board of directors - Popular Bank, Ltd., inc.

Marino d. espinal

ViCePresident

Vicepresident of the Board of Administration of Grupo Popular, s.A.

President of the Appointment and remuneration Committees of the Boards of Administration Banco - Popular dominicano, s. A. - Banco Múltiple and Grupo Popular, s. A.

Vicepresident of the executive and strategic Committees of the Boards of Administration - Banco Popular dominicano, s.A.; Banco Múltiple and Grupo Popular, s. A.

Vicepresident of the Credit Committee of the Board of Administration - Banco Popular dominicano, s. A. Banco Múltiple

President - daniel espinal s.A.s.

President - industria Farmacéutica del Caribe, s. A. s. (inFACA)

President - Juste internacional, s.A.s.

Práxedes Castillo P.seCretAry

secretary of the Board of Administration – Grupo Popular s. A.

President of the Corporate Governance Committees of the Boards of Administration - Banco Popular dominicano, s.A.; Banco Múltiple and Grupo Popular, s. A.

Member of the Audit Committees of the Boards of Administration - Banco Popular dominicano, s.A.; Banco Múltiple and Grupo Popular, s. A.

Member of the executive and strategic Committees of the Boards of Administration- Banco Popular dominicano, s.A.; Banco Múltiple and Grupo Popular, s. A.

Member of the risk Committees of the Boards of Administration - Banco dominicano s.A.; Banco Múltiple and Grupo Popular, s. A.

Member of the Board of directors - Popular Bank, Ltd, inc.

Member of the executive Committee - Popular Bank, Ltd., inc.

President - Juristas s.A.

Founding Member of AdeMi (Association for the development of Microenterprises, inc.)

Member of Advisory Group Baez, Castillo & Job

Member of the Board of directors, Cartones del Caribe, s.A.

Fundador de la Asociación para el desarrollo Ademi, inc.

Miembro del Grupo de Asesores Báez, Castillo & Job

Miembro del Consejo de directores de Cartones del Caribe, s. A.

Andrés Avelino AbreuMeMBer

Member of the Board of Administration - Grupo Popular, s.A.

Member of the executive and strategic Committees of the Boards of Administration Banco Popular dominicano, s.A.; Banco Múltiple and Grupo Popular, s. A.

Member of the Credit Committee of the Board of Administration Banco Popular dominicano, s.A.; Banco Múltiple

President – Board of Administration Avelino Abreu, s.A.s.

President - Misuri Comercial, s.A.

Osián t. AbreuMeMBer

Member of the Board of Administration - Grupo Popular, s. A.

Vicepresident of the Audit Committees of the Boards of Administration - Banco Popular dominicano, s. A.; Banco Múltiple and Grupo Popular, s. A.

Vicepresident to the Board of Administration - Administradora de Fondos de Pensiones Popular, s.A.; Vicepresident of the Operational risk Committee and Member of the Audit Committee - Administradora de Fondos de Pensiones Popular, s.A.

Member of the Corporate Governance Committees of the Boards of Administration Banco Popular dominicano, s. A.; Banco Múltiple and Grupo Popular, s. A.

Vicepresident of the risk Committees of the Boards of Administration - Banco dominicano s. A.; Banco Múltiple and Grupo Popular, s. A.

Member of the Board of directors - BPd Bank

Member of the Audit and risks Committees, and Corporate Governance and Compliance Committees of BPd Bank

Member of the Board of directors - Popular Bank, Ltd. inc.

President of the Audit Committee - Popular Bank, Ltd., inc.

Member of the risk Committee - Popular Bank, Ltd. inc.

Member of the Compliance Committee - Popular Bank, Ltd. inc.

Member of the executive Committee of Popular Bank, Ltd. inc.

President - Vértice, s.A.

Alejandro e. Grullón e.MeMBer

Member of the Board of Administration - Grupo dominicano, s. A.

Member of the executive and strategic Committees of the Board of Administration - Banco Popular dominicano, s. A. - Banco Múltiple and Grupo Popular, s. A.

Honorary Chairman of BPd Bank

Adriano BordasMeMBer

Member of the Board of Administration – Grupo Popular, s.A.

Member of the Credit Committee of the Board of Administration - Banco Popular dominicano, s. A. - Banco Múltiple

President of the Audit Committees of the Board of Administration - Banco Popular dominicano, s.A.; Banco Múltiple and Grupo Popular, s. A

President of the Audit Committee and Member of the Board of Administration – Administradora de Fondos de Pensiones - Popular s.A.

Member of the Appointment and remuneration Committees of the Boards of Administration - Banco Popular dominicano, s.A.; Banco Múltiple and Grupo Popular, s. A.

President - isidro Bordas, s.A.

Manuel e. tavares MeMBer

Member of the Board of Administration Grupo Popular dominicano, s. A.

Member of the executive and strategic Committees of the Boards of Administration Banco Popular dominicano, s. A.; Banco Múltiple and Grupo Popular, s. A.

Vicepresident of the Appointment and remuneration Committees of the Boards of Administration – Banco Popular dominicano, s. A.; Banco Múltiple and Grupo Popular, s. A.

Member of the risk Committees of the Boards of Administration - Banco dominicano s. A.; Banco Múltiple and Grupo Popular, s. A.

President - Latin America Free Zone investments dominicana, inc.

salustiano Acebal M.MeMBer

Member of the Board of Administration - Grupo Popular, s.A.

Member of the Credit Committee of the Board of Administration - Banco Popular dominicano, s. A. - Banco Múltiple

Member of the Appointment and remuneration Committees of the Board of Administration – Banco Popular dominicano, s. A.; Banco Múltiple

Member of the Audit Committees of the Boards of Administration - Banco Popular dominicano, s. A. –Banco Múltiple and Grupo Popular, s. A.

secretary to the Board of Administration - Administradora de Fondos de Pensiones Popular, s. sA.; Member of the investment Committee of the Administradora de Fondos de Pensiones Popular, s. A.

President - Acedo s. A. s.

President - escobal, s. A. s.

President - Piloña, s. A. s.

J. Armando BermúdezMeMBer

Member of the Board of Administration – Grupo Popular, s. A.

Member of the Board of directors - Popular Bank, Ltd. inc.

President - Cervecería Vegana, s. A.

President - Corporación dominicana de radio y televisión, C. por A. (Color Visión)

President - Aerolíneas dominicanas, s. A. (dominair)

President - Bermúdez international, s. A.

President - international Goods, s. A.

President - telemedios dominicana, s. A.

Pedro A. rodríguezMeMBer

Member of the Board of Administration

Grupo Popular, s. A.

José Alcibíades Brache BatistaMeMBer

Member of the Board of Administration – Grupo Popular, s.A.

Member of the Board of Administration Administradora de Fondos de Pensiones - Popular s.A.

President of the risk Committees of the Boards of Administration - Banco Popular dominicano s. A. - Banco Múltiple and Grupo Popular, s. A.

Member of the Audit Committees of the Boards of Administration - Banco Popular dominicano, s. A.; Banco Múltiple and Grupo Popular, s. A.

Member of the Appointment and remuneration Committees of the Boards of Administration - Banco Popular dominicano, s. A.; Banco Múltiple and Grupo Popular, s. A.

Vicepresident of the Corporate Governance Committees of the Boards of Administration - Banco Popular dominicano, s. A.; Banco Múltiple and Grupo Popular, s. A.

treasurer of the Board of directors - Popular Bank, Ltd., Panamá

Member of the Board of directors - BPd Bank, new york

Member of the Audit – risk; Corporate Governance and Compliance Committees – BPd Bank, new york

Vicepresident of the Audit Committee - Popular Bank, Ltd., Panamá

President of the risk Committee - Popular Bank, Ltd., Panamá

Member of the Compliance Committee - Popular Bank, Ltd., Panamá

Vicepresident of the Audit Committee - Administradora de Fondos de Pensiones Popular, s. A.

-President of the Operational risk Committee - Administradora de Fondos de Pensiones Popular, s. A.

Member of the executive Committee - Popular Bank, Ltd., Panamá

M E M b E R S O f T h E b O a R D O f a D M I n I S T R a T I O n

186 187

exeCutiVe And strAteGiC COMMittee

Manuel A. Grullón President

Marino d. espinal ViCePresident

Andrés Avelino Abreu MeMBer

Práxedes Castillo P. MeMBer

Alejandro e. Grullón e. MeMBer

Manuel e. tavares s. MeMBer

Audit COMMittee

Adriano Bordas President

Osián t. Abreu ViCePresident

Práxedes Castillo P. MeMBer

José A. Brache MeMBer

salustiano Acebal MeMBer

MeMBer witH VOiCe But nO VOte

Miguel Ángel rodríguez AuditOr GenerAL

APPOintMent And reMunerAtiOn COMMittee

Marino d. espinal President

Manuel e. tavares s. ViCePresident

Adriano Bordas MeMBer

salustiano Acebal M. MeMBer

José A. Brache MeMBer

MeMBers witH VOiCe But nO VOte

Alex Pimentel M. seniOr exeCutiVe ViCePresident risk MAnAGeMent, seCurity And HuMAn resOurCes

Antonia Antón de Hernández exeCutiVe ViCePresident HuMAn resOurCes, systeMs & PrOCesses And QuALity MAnAGeMent

rafael A. del toro Gómez exeCutiVe ViCePresident internAL COntrOL And COMPLiAnCe GruPO POPuLAr, s.A.

Credit COMMittee

Manuel A. Grullón President

Marino d. espinal ViCePresident

Andrés Avelino Abreu MeMBer

salustiano Acebal M. MeMBer

Adriano Bordas MeMBer

MeMBers witH VOiCe But nO VOte

Christopher Paniagua seniOr exeCutiVe ViCePresident Business

Alex Pimentel M. seniOr exeCutiVe ViCePresident risk MAnAGeMent, seCurity And HuMAn resOurCes

Manuel e. Jiménez F. seniOr exeCutiVe ViCePresident AdMinistrAtiOn GruPO POPuLAr, s.A.

Fernando Olivero Melo exeCutiVe ViCePresident PersOnAL Business And BrAnCH OFFiCes

rené Grullón F. exeCutiVe ViCePresident COrPOrAte, COMMerCiAL And internAtiOnAL Business

Miguel e. núñez ViCePresident AreA OF AnALysis And FOrMALiZAtiOn OF COrPOrAte Credit

COrPOrAte GOVernAnCe COMMittee

Práxedes Castillo P. President

José A. Brache ViCePresident

Manuel A. Grullón MeMBer

Osián t. Abreu MeMBer

MeMBers witH VOiCe But nO VOte

Manuel e. Jiménez F. seniOr exeCutiVe ViCePresident AdMinistrAtiOn - GruPO POPuLAr, s. A

Alex Pimentel M. seniOr exeCutiVe ViCePresident risk MAnAGeMent, seCurity And HuMAn resOurCes

Miguel Ángel rodríguez AuditOr GenerAL

rafael A. del toro G. exeCutiVe ViCePresident, internAL MAnAGeMent And COMPLiAnCe

risk COMMittee

José A. Brache President

Osián t. Abreu ViCePresident

Manuel e. tavares s. MeMBer

Práxedes Castillo P. MeMBer

MeMBers witH VOiCe But nO VOte

Alex Pimentel M. seniOr exeCutiVe ViCePresident, risk MAnAGeMent, seCurity And HuMAn resOurCes

Christopher Paniagua seniOr exeCutiVe ViCePresident, Business

ignacio J. Guerra seniOr exeCutiVe ViCePresident FinAnCe, teCHnOLOGy And OPerAtiOns

Aimée Abbot Cocco ViCePresident - risk MOnitOrinG COOrdinAtOr

C O M M I T T E E S O f T h E b O a R D O f a D M I n I S T R a T I O n

188 189

P R I n C I P a L O f f I C I a L S

ignacio J. Guerra senior executive vicepresident finance, technology and operations

Christopher Paniagua senior executive vicepresident business

Alex Pimentel M. senior executive vicepresident risk management, security and human resources

Antonia Antón de Hernández executive vicepresident human resources, systems and processes and quality management

Juan Lehoux Amell executive vicepresident technology and operations

Fernando Olivero Melo executive vicepresident personal business and branch offices

rené Grullón F. executive vicepresident corporate, commercial and international business

190 191

PRESIDENCYManuel A. Grullón President

GENERAL AUDITMiguel A. rodríguez AuditOr

COMPLIANCEBélgica sosa ViCePresident, COMPLiAnCe AreA

SENIOR EXECUTIVE VICEPRESIDENCY FINANCE, TECHNOLOGY AND OPERATIONSignacio J. Guerra seniOr exeCutiVe ViCePresident FinAnCe, teCHnOLOGy And OPerAtiOns

ramón Jiménez ViCePresident AreA OF ACCOuntinG BALAnCinG And COntrOL

Ana idalia Grullón ViCePresident PLAnninG AreA

Lissette de Jesús ViCePresident FinAnCe AreA

Aylin Hung ViCePresident AreA OF suPPLies And ACQuisitiOns

exeCutiVe ViCePresidenCy teCHnOLOGy And OPerAtiOns

Juan Lehoux exeCutiVe ViCePresident teCHnOLOGy And OPerAtiOns

isael Peña ViCePresident AreA OF systeMs deVeLOPMent

Freddy Melo ViCePresident PrOduCtiOn And teCHnOLOGiCAL ArCHiteCture AreA

wilson ruiz ViCePresident OPerAtiOns AreA

José Hernández Caamaño ViCePresident AreA OF enGineerinG And MAintenAnCe

Alberto rodríguez ViCePresident CArds CHAnneL And OPerAtiOns AreA

SENIOR EXECUTIVE VICEPRESIDENCY – BUSINESSChristopher Paniagua seniOr exeCutiVe ViCePresident Business

María Angélica Haza ViCePresident AreA OF treAsury And CAPitAL MArkets

Francisco ramírez ViCePresident MArketinG AreA

exeCutiVe ViCePresidenCy – COrPOrAte AndinternAtiOnAL Business

rené Grullón F. exeCutiVe ViCePresident COrPOrAte And internAtiOnAL Business

eker rodríguez ViCePresident COrPOrAte BAnkinG Are

robinson Bou ViCePresident COrPOrAte Business AreA

ricardo de La rocha ViCePresident AreA OF COrPOrAte And COMMerCiAL Business nOrtH ZOne

enrique ramírez ViCePresident internAtiOnAL And institutiOnAL AreA

Juan Manuel Martín de Oliva ViCePresident tOurisM Business AreA

edgar del toro ViCePresident LeAsinG And FACtOrinG - Business AreA

exeCutiVe ViCePresidenCy – PersOnAL Business And BrAnCH OFFiCes

Fernando Olivero M. exeCutiVe ViCePresident PersOnAL Business And BrAnCH OFFiCes

Austria Gómez ViCePresident seGMentAtiOn PrOJeCt & Business AreA MetrO west ZOne

Chantall Ávila ViCePresident Business AreA MetrO eAst ZOne

Arturo Grullón F. ViCePresident Business AreA nOrtH ZOne

rafael tamayo Belliard ViCePresident Business AreA interiOr sOutHeAstern ZOne

eugene rault Grullón ViCePresident CArds AreA

SENIOR EXECUTIVE VICEPRESIDENCYRISK MANAGEMENT, SECURITY AND HUMAN RESOURCESAlex Pimentel M. seniOr exeCutiVe ViCePresident risk MAnAGeMent, seCurity And HuMAn resOurCes

John strazzo ViCePresident seCurity AreA

tomás de León ViCePresident AreA OF inFOrMAtiOn seCurity

Jaime Aybar ViCePresident PrOJeCts AreA

Miguel e. núñez ViCePresident AreA OF AnALysis And FOrMALiZAtiOn OF COrPOrAte Credit

Patricia rodríguez ViCePresident AreA OF AnALysis And FOrMALiZAtiOn OF PersOnAL Credit

Aimée Abbott ViCePresident risk MOnitOrinG AreA

José Odalis Ortiz ViCePresident, Credit nOrMALiZAtiOn AreA

richard Lueje ViCePresident, OPerAtiOnAL risk AreA

exeCutiVe ViCePresidenCy – HuMAn resOurCes, systeMs & PrOCesses And QuALity MAnAGeMent

Antonia Antón de Hernández exeCutiVe ViCePresident HuMAn resOurCes, systeMs And PrOCesses And QuALity MAnAGeMent

María Povedano ViCePresident HuMAn resOurCes AreA

soraya sánchez ViCePresident serViCe QuALity AreA

Amanda Almeyda ViCePresident AreA OF systeMs And PrOCesses

P R I n C I P a L O f f I C I a L S

192 193

SANTO DOMINGO METROPOLITAN AREA AFPedificio AFP Popular, Abraham Lincoln #702 809-544-8988

ALMACENES SEMA LUPERÓNAv. Luperón #76, res. rosmil 809-544-8993

AMBEV SAN ISIDROAutopista de san isidro km. 4½ san isidro 809-748-0218

ARROYO HONDOAv. Luis Amiama tió esq. calle José Polanco Billini 809-544-8910

BELLA VISTA MALLAv. sarasota esq. calle Los Arrayanes,Local 1-A, Bella Vista Mall 809-544-8958

BLUE MALLAv. winston Churchill esq. Gustavo Mejía ricardPlaza Blue Mall 3er nivel 809-544-8927

CALLE BARAHONAAv. 27 de Febrero esq. calle Barahona, edificio k 809-544-8914

CARREFOURAut. duarte km. 10½ Plaza duarte 809-544-8961

CASA DEL CORDÓN / ISABEL LA CATÓLICACalle isabel La Católica #252 809-544-8915

CENTRO DE OPERACIONES DE CAJA MEGACENTROAv. san Vicente de Paúl esq. Carret. Mella,Plaza Megacentro Local #72-A 809-544-8980

CENTRO DE LOS HÉROESAv. independencia esq. calle Antonio Maceo 809-544-8935

CERVECERÍA NACIONAL DOMINICANAAv. independencia km. 6½ 809-544-8936

CHARLES DE GAULLEAv. Charles de Gaulle esq. Carretera de Mendoza 809-544-8924

DIAMOND MALLAv. Los Próceres, Arroyo Hondo 809-544-8911

DUARTEAv. duarte #447, Villas Agrícolas 809-544-8971

EL PORTALAv. independencia #2251, el Portal. 809-544-8934

AMBEV DOMINICANAAv. san Martín #279 809 544-8939

FAMA MUEBLESCarretera san isidro 809-544-8994

FARMACIA CARMINAAv. independencia #351 casi esq. calle Pasteur 809-544-8916

FARMAX CHARLES SUMMERAv. Charles summer #14, Los Prados 809-544-8991

FERRETERÍA AMERICANAAv. John F. kennedy km. 5½ 809- 544-8948

FERRETERÍA POPULAR SAN ISIDROCarretera san isidro. Ferretería Popular 809-544-8992

GALERÍAS DE HERRERAAv. isabel Aguiar esq. calle d, Plaza ModestoZona industrial de Herrera 809-544-8943

GAZCUEAv. Bolívar #315 casi esq. dr. delgado 809-544-8912

HACHÉ KENNEDYAv. John F. kennedy #59, ensanche naco 809-544-8944

HACHÉ MELLACarretera Mella km. 8 1/2 809-544-8976

HERMANAS MIRABAL, VILLA MELLAAv. Hermanas Mirabal #28santa Cruz de Villa Mella 809-544-8985

HERRERAAv. 27 de Febrero esq. Av. isabel Aguiar,Plaza Popular Herrera 809-544-8906

HIPERMERCADO OLÉ DUARTEAv. duarte #194 809-544-8984

INDEPENDENCIAProlongación Av. independencia km. 11,Proyecto Pradera Verde 809-544-8953

JUMBO LUPERÓNAv. Luperón esq. calle Gustavo Mejía ricart 809-544-8996

JUMBO MELLACarretera Mella kM 9 ½. 809-544-8925

LA SIRENA DUARTEAutopista duarte kM. 13½ 809-544-8969

LA SIRENA, MELLAAv. Mella 809-544-8919

LAS PALMAS DE HERRERAAv. isabel Aguiar esq. Av. Las Palmas,Centro Comercial isabel Aguiar, local B-5 809-544-8964LOPE DE VEGAAv. Lope de Vega #44, Piantini 809-544-8900

LOS ALCARRIZOSAutopista duarte km. 14½, Los Alcarrizos 809-544-8981

LOS MINACalle Presidente estrella ureña #95 809-544-8970

MÁXIMO GÓMEZAv. Máximo Gómez esq. calle Aníbal espinosa,Villas Agrícolas 809-544-8967

MÁXIMO GRULLÓNCalle Máximo Grullón #122 esq. Av. duarte 809-544-8965

MEGACENTRO SAN VICENTEPlaza Comercial Megacentro, local #17,Av. san Vicente de Paúl esq. Carretera Mella 809-544-8979

MELLAAv. Mella #557 809-544-8901

MERCASIDAv. Máximo Gómez #182 MerCAsid,ensanche La Fe 809-549-5377

MILONY CENTERCalle 8 #36, ensanche isabelita 809-544-8983

MULTICENTRO LA SIRENA CHURCHILLAv. winston Churchill esq. calleGustavo Mejía ricart 809-544-8902

MULTICENTRO LA SIRENA LAS CAOBASProlongación 27 de Febrero 809-544-8951

MULTICENTRO LA SIRENA LUPERÓNAv. Luperón 809-544-8998

MULTICENTRO LA SIRENA VENEZUELAProlongación Av. Venezuela 809-544-8959

MULTICENTRO LA SIRENA VILLA MELLAPlaza el dorado, Av. Charles de Gaulleesq. Av. Hermanas Mirabal 809-544-8989

MULTICENTRO LA SIRENA ORIENTALAv. Charles de Gaulle, Los tamarindos 809-544-8956

NACOAv. tiradentes, Galerías de naco 809-544-8903NATIVA MENDOZACarretera de Mendoza, esq. calle 19, Mendoza 809-544-8986

NATIVA SAN ISIDROCarretera Mella km. 16, el Bonito, san isidro 809-544-8987

NÚÑEZ DE CÁCERESAv. núñez de Cáceres esq. Av. John F. kennedy 809-544-8904

OZAMAAv. sabana Larga esq. calle José Cabrera,ensanche Ozama 809-544-8960

PADRE CASTELLANOSAv. Padre Castellanos esq. calle Mutualismo,ensanche espaillat 809-544-8972

PLAZA ALEXANDRAAve. independencia km.7 ½Plaza Comercial Alexandra i, Local #104 809-544-8937

PLAZA ANDALUCÍA IIAv. Abraham Lincoln esq. Gustavo Mejía ricart, Plaza Andalucía ii, Piantini 809-544-8923

PLAZA BERNABÉAv. Los Próceres esq. Av. república de Colombia,Los ríos 809-544-8938

PLAZA CENTRALAv. 27 de Febrero 809-544-8908

PLAZA CHARLES SUMMERAv. Charles summer #53 809-541-4956

PLAZA LAMA CHURCHILLAv. 27 de Febrero esq. Av. winston Churchill 809-544-8949

PLAZA LAMA DUARTEAv. duarte #78 809-544-8920

PLAZA LAMA OVANDOAv. nicolás de Ovando esq. Máximo Gómez 809 544-8946

PLAZA LAMA ORIENTALCarretera Mella km 8½ , Cabirma del este ii 809-544-8913

PLAZA QUISQUEYAAv. 27 de Febrero #395, Local 121, ens. Quisqueya 809-544-8907

RÓMULO BETANCOURTAv. rómulo Betancourt #405, Bella Vista 809-544-8928

SAN VICENTE DE PAÚLAv. san Vicente de Paúl #132 809-544-8962

SEDERÍAS CALIFORNIA CONDECalle Conde #52 809-544-8917

SEDERÍAS CALIFORNIA DUARTEAv. duarte #51 809-544-8921

SHELL LUCAMIAv. 27 de Febrero #465, el Millón 809-544-8963

SHELL LUPERÓNAv. Luperón esq. calle Olof Palme, Las Praderas 809-544-8977

SUP. LA CADENA SARASOTAAv. sarasota casi esq. Av. Privada 809-544-8931

SUP. NACIONAL 27 DE FEBREROAv. 27 de Febrero esq. Av. Abraham Lincoln 809-544-8929

SUP. NACIONAL ARROYO HONDOAv. Luis Amiama tió esq. Av. Arabia 809-544-8932

SUP. NACIONAL CHARLES DE GAULLEAv. Charles de Gaulle #10 809-544-8926

O f f I C E D I R E C T O R Y

194 195

SUP. NACIONAL LOPE DE VEGAAv. Lope de Vega #98, Piantini 809-544-8930

SUP. NACIONAL MÁXIMO GÓMEZAv. Máximo Gómez #204, Gazcue 809-544-8918

SUP. NACIONAL NÚÑEZ DE CÁCERESAv. Núñez de Cáceres, El Millón 809-544-8945

SUP. NACIONAL SARASOTAAv. Sarasota esq. calle Los Arrayanes,Bella Vista Mall 809- 255-2350

SUP. POLA ARROYO HONDOCamino Chiquito casi esq. Av. Lope de Vega 809-544-8952

SUP. POLA LOPE DE VEGAAv. Lope de Vega esq. calle Gustavo Mejía Ricart 809-544-8950

SUP. POLA SARASOTAAv. Sarasota 809-544-8933

TEXACO VENEZUELAAv. Venezuela #2 esq. calle Odfelismo,Ensanche Ozama 809-544-8978

TORRE EMPRESARIAL AIRDAv. Sarasota esq. Av. Abraham Lincoln,Edificio Torre Empresarial, 1er piso 809-544-8922

TORRE POPULARAv. John F. Kennedy #20 esq. Av. Máximo Gómez,Miraflores 809-544-8905

UNICENTRO PLAZAAv. 27 de Febrero esq. Av. Abraham Lincoln 809-544-8909

USAIDAv. Leopoldo Navarro esq. Av.César Nicolás Penson 809-686-1826

UTESA ORIENTALCalle Juan Luis Duquela #6, Ensanche Ozama 809-544-8955

VILLA CONSUELOCalle Eusebio Manzueta #126, Villa Consuelo 809-544-8973

VILLA MELLAAv. Jacobo Majluta esq. Av. Hermanas Mirabal,Plaza El Dorado, Villa Mella 809-544-8940

WINSTON CHURCHILLAv. Winston Churchill #1100, Evaristo Morales 809-544-8954

ZONA UNIVERSITARIACalle Arístides Fiallo Cabral #108esq. calle Julio Ortega Frier 809-544-8947

NORTH REGION27 DE FEBRERO (SANTIAGO)Av. 27 de Febrero #92, Cerros de Gurabo 809-734-4302

AEROPUERTO DEL CIBAOAv. Víctor Manuel Espaillat, Sección Uveral 809-734-4318

AMBEV PUERTO PLATACalle Pedro Clisante #2, Palo Las Casas, Puerto Plata 809-589-1014

AMBEV SANTIAGOCalle # 11 Ensanche Libertad, Santiago 809-580-3035

ANTONIO GUZMÁNCalle Antonio Guzmán, esq. calle E, UrbanizaciónCaperuza I, San Francisco de Macorís 809-588-6262

BELLA TERRA MALL (SANTIAGO)Av. Juan Pablo Duarte casi Esq Estrella SadhaláPlaza Bella Terra Mall 809-734-4325

BONAOCalle 16 de Agosto esq. calle Independencia 809-525-4973

CABARETECarretera Principal Cabarete, Plaza Popular 809- 571-0903

CALLE EL SOLCalle del Sol #13,Edif. Comercial del Monumento, Santiago 809-734-4301

COLINAS MALLAv. 27 de Febrero esq. Av. Imbert, Santiago 809-734-4320

CONSTANZACalle General Luperón esq.calleGastón F. Deligne 809-539-3502

COTUÍCalle María Trinidad Sánchez #29esq. calle Esteban Adames 809-585-2449

DAJABÓNCalle Dulce de Js. Senfleur #7esq. calle Beller, Dajabón 809-579-7555

EL ENCANTOCalle del Sol esq. calle Duarte, Santiago 809-734-4309

FERRETERÍA OCHOA BARTOLOMÉAv. Bartolomé Colóncasi esq. Av. 27 de Febrero, Santiago 809-734-4319

FERRETERÍA OCHOA IMBERTAv. Imbert, Santiago 809-734-4308

FERRETERÍA OCHOA LICEYCarretera Santiago-Licey, Km 5½ 809-734-4323

GREGORIO RIVASAv. Gregorio Rivas, Sector Jeremías, La Vega 809-242-3631

GURABOCarretera Luperón Km 4½ 809-734-4321

HACHÉAv. Estrella Sadhalá Edificio Haché, Santiago 809-734-4307

JARABACOA ICalle Independencia #39 809-574-2724

JARABACOA IICalle del Carmen esq. calle Enrique Jiménez 809-574-2094JUAN PABLO DUARTEAv. Juan Pablo Duarte # 195 Villa Olga, Santiago 809-734-4327

LAS COLINASAv. 27 de Febrero, Cuesta Colorada, Santiago 809-734-4300

LA SIRENA (SANTIAGO)Calle del Sol esq. calle España, Santiago 809-734-4311LA VEGACalle Gral. Juan Rodríguez #50 esq. Av. Colón 809-573-6087

LAS TERRENASCalle Duarte #225, Las Terrenas, Samaná 809-240-5252

LICEYAv. Duarte, Licey al Medio 809-734-4324

MANOLO TAVÁREZ JUSTOAv. Manolo Tavárez Justo, Puerto Plata 809-586-4888

MAOAv. Independencia esq. calle Máximo Cabral 809-572-6546

MOCACalle Antonio de la Maza #22 esq. calle Córdova 809-578-1404

MULTICENTRO LA SIRENA LA VEGAAv. Gregorio Riva (Frente al INDRHI) 809-242-8323

MULTICENTRO LA SIRENA PUERTO PLATAAv. Circunvalación Norte casi esq. 16 de agosto 809-244-4656

MULTICENTRO LA SIRENA SAN FRANCISCOCarretera San Francisco-Nagua Km 2½ 809-244-0150

NAGUACalle María Trinidad Sánchezesq. calle Mariano Pérez 809-584-4962

NAVARRETEAv. Duarte #299, Centro Comercial Ydaly,Navarrete, Santiago 809-734-4322

PLAZA INTERNACIONALAv. Juan Pablo Duarte, Santiago 809-734-4310

PLAYA DORADACentro de Convenciones Complejo Playa Dorada 809-320-2528

AVENIDA PEDRO A. RIVERAAv. Pedro A. Rivera Km 0 Híper Vega Real, La Vega 809-242-0806PLAZA MONUMENTAL (SANTIAGO)Calle el Sol #13 Plaza Comercial el Monumento 809-734-4304

PUERTO PLATACalle José del Carmen Ariza esq. calle Duarte 809-586-5079

RAMÓN CÁCERESAv. Ramón Cáceresesq. calle León Ureña, Moca 809-578-2828

RESTAURACIÓNAv. Restauración #202, Santiago 809-734-4303SAMANÁAv. Malecón #4, Samaná 809-538-3666

SAN FRANCISCO DE MACORÍSCalle El Carmen esq. calle Castillo #71 809-588-0292

SIRENA EL EMBRUJO (SANTIAGO)Autopista Duarte KM 5 1/2 Esq Rafael Vidal,Urbanización el Embrujo 809-734-4326

SOSÚACalle Alejo Martínez #1, El Batey, Sosúa 809-571-2107

SUP. CENTRAL IIAv. Estrella Sadhalá, Santiago 809-734-4317

SUP. JOSÉ LUISAv. Manolo Tavárez Justo #20, Puerto Plata 809-970-2524

SUP. LA FUENTEAv. Circunvalación #410, Santiago 809-734-4312

SUP. NACIONAL SANTIAGOAv. Estrella Sadhalá esq. Av. 27 de FebreroCerros de Gurabo, Santiago 809-734-4314

SUP. POLA SANTIAGOBartolomé Colón esq. calle Germán Soriano, Santiago 809-734-4315

SUP. YOMAAv. Libertad, #165, San Francisco de Macorís 809-725-0411

TENARESCalle Duarte #16 809-587-8987

UTESAAv. Estrella Sadhalá, UTESA, Santiago 809-734-4305

ZONA FRANCAAv. Circunvalación,Zona Franca Industrial de Santiago 809-734-4306

196 197

SOUTHEAST INTERIOR REGIONAEROPUERTO LAS AMÉRICASAeropuerto Las Américas, La Caleta, Boca Chica 809-544-8997

ALMACENES IBERIA HATO MAYORCalle Pedro Guillermo esq. calle duarte,Hato Mayor del rey 809-553-1200

ALMACENES IBERIA HIGÜEYCarretera Mella km 1½ , Higüey 809-554-0909

ALMACENES IBERIA LA ROMANACalle Francisco richiez #110 809-556-5298

ALMACENES IBERIA SAN PEDRO DE MACORÍSAv. independencia esq. calle sánchez 809-526-6559

AZUACalle duarte esq. calle 19 de Marzo, Azua 809-521-3400

BANÍCalle Máximo Gómez esq. calle duarte, Baní 809-522-3889

BANÍ IICalle Presidente Billini #22, Baní 809-522-2225

BARAHONACalle Jaime Mota esq. calle Padre Billini,Barahona 809-524-2612

BARCELÓ BÁVAROAv. Barceló Carretera Berón-Barceló km. 91/2,Plaza AC delco service Center 809-831-0021

BÁVAROCarretera Meliá-Bávaro, Plaza Bávaro 809-552-0613

BOCA CHICACalle duarte #43 esq. Calle Juan Bautista Vicini,Boca Chica 809-544-8995

CENTRO NACIONAL DEL ESTEAv. Luis Amiama tió #91, Local 102,san Pedro de Macorís 809-529-5001

DR. GONZÁLVOCalle dr. Gonzalvo #22, La romana 809-556-2511

EL DETALLISTACalle Pedro A. Lluberes #223, Centro Ferreteroel detallista, La romana 809-556-3414

HAINAAv. Las Caobas esq. Carretera sánchez, Haina 809-544-8966

HAINA IICarretera sánchez kM 17 1/2, Haina 809-957-0522

HAINA PIISAParque industrial de itabo 809-544-8974

HATO MAYORCalle Mercedes #22, Hato Mayor 809-553-2290

HIPER OLE BOCA CHICAAutopista Las Américas kM 22, La Caleta, Bocha Chica 809-544-8999

HIGÜEYCalle Agustín Guerrero #61, Higüey 809-554-2324

HOTEL CATALONIACarretera Cabeza de toro, Bávaro 809-688-9518

HOTEL IBEROSTARBávaro 809-688-9510

HOTEL PARADISUSParadisus Punta Cana 809-688-0960

JIMANÍCalle sánchez #25, Jimaní 809-248-3093

JUAN DOLIOAv. Boulevar, Plaza turística dr. Correa,Villas del Mar, Juan dolio 809-526-2276

JUMBO LA ROMANACalle dr. Gonzalvo esq. Av. Libertad, La romana 809-550-4133

LA MARINAAv. rivera del río #10,La Marina, Casa de Campo, La romana 809-523-7072

LA ROMANAAv. santa rosa esq. calle dolores tejeda 809-556-2131

LAS MATAS DE FARFÁNCalle damián Ortíz esq. calle duarte 809-527-5155

MULTICENTRO LA SIRENA SAN CRISTÓBALAntigua Carretera sánchez,Madre Vieja, san Cristóbal 809-528-2657

OLÉ BOCA CHICAAut. Las Américas km 27 La Caleta, sup. Olé, Boca Chica 809-544-8999

OTRA BANDACarretera Higüey-Punta Canaesq. Carretera Higüey-uvero Alto 809-551-1119

PUERTO CAUCEDOPuerto Multimodal Caucedo 809-523-5030

PUNTA CANACarretera Punta Cana,Plaza Punta Cana #12 809-959-1019

SAN CRISTÓBALAv. Constitución esq. calle Palo Hincado,san Cristóbal 809-528-4335

SAN JOSÉ DE OCOACalle Andrés Pimentel #83, san José de Ocoa 809-558-3232

SAN JUAN BÁVAROAv Barceló km 9 Bávaro, sup. Pola 809-466-3001

SAN JUAN DE LA MAGUANACalle Anacaona #49, san Juan de la Maguana 809-557-2370

SAN PEDRO DE MACORÍSCalle 27 de Febrero #7, san Pedro de Macorís 809-529-0313

SEIBOCalle Manuela diez, Centro Comercial, edif. 2 809-552-2700

SUP. EL DETALLISTACalle trinitaria, san Juan de la Maguana 809-557-4626

SUP. EL HIGÜEYANOCalle Juan xxiii, el naranjo 809-746-0044

SUP. NELLYsan Pedro de Macorís 809-246-0033

TEXACO BÁVAROCarretera Arena Gorda, sección Baiguá, Bávaro 809-552-0310

UCE SAN PEDROAv. Francisco Caamaño deñó,san Pedro de Macorís 809-529-5050

UVERO ALTOCarretera uvero Alto-Bávaro, Plaza uvero Alto,local no. 7 809-552-1300

VERÓN-BÁVAROCruce de Verón, edificio Prieto tours, Piso i 809-455-1032

ZONA INDUSTRIAL DE HAINA REFIDOMSArefinería nacional dominicana 809-544-8975

Banco Popular Dominicano, S. A.

Banco Múltiple

Torre Popular 20 John F. kennedy Avenue, at the corner of Máximo Gómez Avenue ensanche Miraflores, santo domingo

telephones 809 544 5000 809 544 8000

Fax 809 544 5999

Mailing Address: Apartado Postal 1441-1

contactenos@bpd.com.do

www.popularenlinea.com www.bpd.com.do

santo domingo, d. n. dominican republic

Information for shareholders Annual Ordinary General Assembly – extraordinary shareholders Assembly of Banco Popular dominicano, s. A., Banco Múltiple, held at torre Popular, Located at 20 John F. kennedy Avenue on the corner of Máximo Gómez Avenue, ensanche Miraflores in santo domingo, dominican republic, on saturday thirty First day of 2012, at ten o’clock in the morning.

General Coordination executive Vice-Presidency – Public relations and Communications

Production and Design Lourdes saleme y Asociados

Photography Luis nova, Jochy Fersobe

Printed by Amigo del Hogar