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 14 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON DECEMBER 31, 2022 Presented in comparison with the year ended December 31, 2021 (Figures expressed in Guarani) A. CONSIDERATION BY THE SHAREHOLDERS MEETING The financial statements of Banco Regional S.A.E.C.A. (hereinafter referred to indistinctly as Banco Regional S.A.E.C.A. or "the Entity" or "the Bank") as of December 31, 2022, will be considered for approval by the Ordinary General Shareholders' Meeting on February 21, 2023, within the term established in the Company's Bylaws and Article 1079 of the Civil Code. The Bank's financial statements as of December 31, 2021, were approved by the Ordinary General Shareholders' Meeting held on April 28, 2022. B. BASIC INFORMATION REGARDING THE BANK b.1 Legal status The Banco Regional Sociedad Anónima Emisora de Capital Abierto began its activities under the name of Banco Regional S.A. de Inversión y Fomento, authorized by Executive Decree No. 4321 dated January 8, 1990, and by the Central Bank of Paraguay (hereinafter referred to interchangeably as the Central Bank of Paraguay or BCP) by Resolution No. 5, Minute No. 11 dated February 13, 1991. By Resolution No. 3, Minute No. 214 dated December 1, 1998, the Board of Directors of the Central Bank of Paraguay authorized Banco Regional S.A. de Inversión y Fomento to amend its Bylaws, as resolved by the Extraordinary General Meeting of April 24, 1998, to change its name to Banco Regional S.A. By Resolution No. 1, Minute No. 96 dated November 19, 2008, the Board of Directors of the Central Bank of Paraguay authorized Banco Regional S.A. to modify its Bylaws, as resolved by the Extraordinary General Shareholders' Meeting of September 30, 2008, to change its name to Banco Regional S.A.E.C.A. The modification was registered in the Public Registry on November 21, 2008, and in the National Securities Commission (CNV) on December 4, 2008 by Resolution No. 1156/08. On April 22, 2009, the purchase of all the shares of Banco ABN AMRO Paraguay S.A. was finalized with the purpose of integrating this institution into Banco Regional S.A.E.C.A. On September 3, 2009, the definitive merger agreement for the absorption of Banco ABN AMRO Paraguay S.A. was signed. On September 4, 2009, through the Extraordinary Shareholders' Meeting of Banco Regional S.A.E.C.A., the merger agreement for the absorption of these institutions was approved. By virtue of this process, Banco Regional S.A.E.C.A., as the absorbing company, is universally responsible for all the rights and obligations of the absorbed company. As of December 31, 2022, the Bank had 33 branches (34 branches at December 31,2021) including the head office. b.2 Basis for the preparation of the financial statements The financial statements are a free translation into English of those originally prepared in Spanish, expressed in local currency (Paraguayan Guaranies or Gs.) The financial statements have been prepared in accordance with the accounting standards, regulations and provisions established by the Central Bank of Paraguay, which comprise the legal accounting standards in effect in Paraguay for the presentation of the financial statements of financial entities regulated by the Central Bank of Paraguay. The model is based on a conventional historical cost basis, except for the treatment assigned to assets and liabilities in foreign currency, as explained in note c.1, and the balances of Fixed Assets existing as of December 31, 2019 as explained in note c.9; and does not fully recognize the effects of inflation on the Entity's equity and financial position, nor on the results of its operations and cash flows. Had a comprehensive price-level restatement of the financial statements been applied, differences could have arisen in the presentation of the Entity's equity and financial position, results of operations and cash flows as of December 31, 2022 and 2021 respectively.
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