2022 Report and Financial Statements slide image

2022 Report and Financial Statements

2022 REPORT AND FINANCIAL STATEMENTS - BANCO REGIONAL LETTER FROM THE PRESIDENT ECONOMIC AND FINANCIAL PERFORMANCE The movement recorded during the year ended December 31, 2022, and 2021, in the allowance accounts is summarized as follows: As of December 31, 2022 29 (90.513.482) (586.967.019) BALANCE AT THE BEGINNING OF ITEM THE FINANCIAL YEAR Gs. ADDITIONS (*)(#) Gs. ALLOWANCES Gs. APPLICATION OF WITHDRAWAL OF ALLOWANCES Gs. RECLASSIFICATIONS /ADJUSTMENTS (**) Gs. UTILIZATION OF LEGAL RESERVE VALUATION VARIATION IN (***)(#) Gs. FOREIGN CURRENCIES Gs. Available Performing loans - (1.494.013) 81.891.576 586.748.324 112.524 218.695 BALANCES AT YEAR-END Gs. (10.003.395) Financial sector Performing loans - Non-financial sector Other receivables Non-performing (385.395.449.901) (16.298.485.609) (195.309.596.202) (278.018.993.423) 1.735.408.542 116.718.874.276 397.074.897.279 (278.367.923.854) (9.882.736.061) (436.135.923.142) (24.194.349.574) (556.410.270.830) 298.719.152 174.946.038.793 6.334.320.747 301.277.952.879 (61.209.230.249) (428.962.554) (9.353.909.823) (34.288.757.838) (346.059.015.432) Loans Investments Total (211.519.736.225) (808.524.761.950) (196.893.681.123) (1.056.194.775.451) 148.184.668.095 325.164.834.582 48.131.985.478 473.131.773.280 (31.722.313.700) 304.143.353.330 (278.367.923.854) (250.256.294.506) (1.066.749.994.313) (6.437.217.031) (26.102.494.250) (*) As of December 31, 2022, the Bank has amortized Gs. 198.852.441.321 of allowances corresponding to operations under Transitional exceptions and Exceptional support measure. See note c.10. (**) As of December 31, 2022, the Bank has made reclassifications of specific allowances - recognition of specific allowances to Gs. 147.367.331.458 on operations benefiting from the Exceptional support measure authorized by the Central Bank of Paraguay, to be recognized gradually in results See note c.10. – reclassification of specific allowances for Gs. 31.722.313.700 corresponding to the constitution of a trust portfolio. See note c.8.d. (***) According to Act N° 104, Law 861/96, the Directory of the Bank through directory Act N° 23 dated November 29, 2022, resolve to perfom necesary adjustments to the risk portfolio provitioning aditional losses for bad credits in concordance with current regulations. The additional allowance was covered by the Legal Reserve in concordance with actual banking regulations. The application was as follows: - Allowances for bad credtis under Transitional and Exceptional Measures amounting Gs. 115.943.756.967 - Allowances bad credits for specific clients amounting Gs. 162.424.166.887. See note c.12.c. (#) The process was carried out according to the request of the Superintendency of Banks to review and update the real situation of the credits portfolio in orden to purge it. It was an important request in the framework of fusion processes approved by Extraordinary General Shareholders' Meeting held on December 16, 2022.
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