2022 Report and Financial Statements
2022 REPORT AND FINANCIAL STATEMENTS - BANCO REGIONAL
LETTER FROM THE PRESIDENT
ECONOMIC AND FINANCIAL PERFORMANCE
LETTER FROM THE PRESIDENT
Dear Shareholders:
2022 has been a dynamic year with great
challenges for all levels of our organization,
especially, due to adverse conditions
globally and locally related to scenarios of
serious drought that radically affected the
agriculture and livestock sector and river
transport, as well as periods of sustained
increase of inflation with impact on the
purchasing power of consumers and quick
changes to the interest rates of the market,
which made the process of economic
recovery difficult after the COVID pandemic,
impacting on our clients. Those facts, added
up to the great challenge that has been the
start of the historic process of merger by
absorption of our Bank with Sudameris Bank
S.A.E.C.A.
The start of the referred process of merger
has been a highly relevant milestone in the
institutional life of Banco Regional and, in
that regard, it has had the ample support
of regular and preferred shareholders
who, in the first special general meeting of
shareholders held in the last month of 2022,
backed the project of merger by absorption
with Sudameris Bank, in the understanding
that with that transaction, the largest
financial institution of the country would be
created with a strong presence in several
economic sectors and the scope to increase
the volume of businesses while diluting
expenses and making large investments with
more ease.
Likewise, it should be noted that,
throughout 2022, and alongside the
development of the aforementioned large
project, the corporate businesses of the
Bank were retained with satisfactory results
in the agricultural, livestock, industry and
services segments and there were even
important increases in the portfolios of
SMEs and Individuals concurring with the
optimization of technological platforms
and service channels, as well as permanent
support from each of our branches from
around the country, which definitively made
it possible to improve the diversification of
the portfolio and the financial margins of
the institution, according to the institutional
strategic plans.
However, obtaining a net profit at the
end of the year was limited by the express
establishment of allowances related to
doubtful loans and the start of the process
of merger that requires adjustments of the
balance sheet that allow the new merged
institution to start activities with solid
grounds for the benefit of clients, depositors,
founders and shareholders, among others.
For the next months, we look at the
coming challenges with optimism, as
we will continue to bravely work for the
largest strategic objectives aiming mainly
at concluding the merger process in the
best way possible, blending the strengths
of both institutions for the benefit of all
counterparts.
Finally, I would like to highlight the great
work of the human team of Banco Regional
and the support of strategic allies who,
throughout 2022, with lots of commitment,
a high sense of responsibility and dedication,
have allowed us to achieve the biggest
objectives underlined for the year.
On behalf of the Board, I thank the
management team, the shareholders and
our collaborators for their active support in
the process to be relevant stakeholders for
the development of our country.
Many thanks,
Diego Duarte
Presidente Ejecutivo
Regional
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