in forme an u al 2007 \ an nu al r ep ort 2007

Transcription

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INFORME ANUAL 2007 \ ANNUAL REPORT 2007
Indice
Index
Carta del Chairman y del Presidente
A Word from the Chairman and the President
Introducción
Introduction
..................2
..............................................................5
Descripción de la Compañía
Company Description ....................................................................7
Gobierno Corporativo y Etica
Corporate Governance and Ethics..............................................10
Legal y Regulación
Legal and Regulation.
............................................................12
Información Financiera Relevante
Relevant Financial Information
.............................................13
Administración de Riesgo
Risk Management
...................................................23
Estados Financieros Consolidados
Consolidated Financial Statements
................................28
Productos y Segmentos de Negocios
Products And Business Segments ..........................................18
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Carlos Pellas
Presidente de la Junta Directiva
de BAC International Bank
Chairman of the Board of Directors
BAC International Bank
Ernesto Castegnaro
Presidente y CEO
de BAC International Bank
President & CEO
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CARTA DEL CHAIRMAN Y DEL PRESIDENTE
A WORD FROM THE CHAIRMAN AND THE PRESIDENT
Estimados Accionistas, Clientes y Amigos:
To our Shareholders, Customers and Valued Friends:
Durante el año 2007, el Grupo BAC I Credomatic
experimentó el mayor crecimiento de toda su
historia.
Grupo BAC I Credomatic’s growth in 2007 was the
strongest in its entire history.
Producto de ese crecimiento en los activos, las
utilidades del Banco aumentaron más de 50% para
superar la suma de US $183 millones.
La cartera total del Banco creció 62% (US $1.7 billones)
alcanzando la suma de US $4.5 billones al cierre
del año 2007. El 30% de esa cartera correspondió a
préstamos corporativos, comerciales y a PyMEs. El
23% correspondió a créditos hipotecarios y el 26% a
préstamos a través de las tarjetas de crédito.
Los depósitos de nuestros clientes fueron la principal
fuente de financiamiento del crecimiento de cartera.
Crecieron más de US $1.3 billones en el año, lo que
refleja el nivel de confianza que tienen los clientes en
nuestro Banco.
Al cierre del 2007, las cuentas corrientes representaban
el 40% de nuestros depósitos; las cuentas de ahorro el
17% y los depósitos a plazo el 43%.
Las líneas de crédito de la banca internacional y
otras fuentes de fondos provenientes del mercado
internacional aportaron más de US $550 millones
para financiar nuestro crecimiento del año 2007 y
alcanzaron una suma superior a US $1.1 billones. Esto
a su vez refleja el grado de reconocimiento y confianza
que tiene nuestra organización a nivel internacional.
Sin duda alguna, el grado de inversión que Standard
& Poor’s otorga a la organización BAC | Credomatic
The Bank’s total assets rose by more than 53% to a total
of US $6.5 billion, of which 32% came from organic
growth and 21% from the acquisitions of BAMER in
Honduras, PROPEMI in El Salvador and Financiera
Miravalles in Costa Rica.
Thanks to these expanding assets, the Bank increased
its earnings by more than 50% to over US $183 million.
The Bank’s overall portfolio grew by 62%
(US $1.7 billion) to US $4.5 billion at the 2007 closing,
of which 30% was attributed to corporate, commercial
and SME loans. Mortgage loans accounted for 23%,
while 26% came from credit card loans.
Our primary source of funding for this portfolio
expansion was customer deposits, which climbed by
more than US $1.3 billion over the year, reflecting the
strong confidence our customers have in our Bank.
At the 2007 closing, current accounts accounted for
40% of our deposits, savings accounts for 17% and term
deposits for 43%.
Credit lines at international banks, in addition to other
international funding sources, contributed more than
US $550 million toward financing our 2007 growth,
reaching over US $1.1 billion. This, in turn, shows
the high degree of recognition and confidence our
organization enjoys internationally.
Setting us apart, undoubtedly, is the investmentgrade rating granted by Standard & Poor’s to BAC |
Credomatic; our risk rating is higher than the sovereign
risk of any of the countries in which we do business.
As we entered 2008, the international scenario was
somewhat uncertain. The mortgage crisis, along with
Los activos totales del Banco crecieron más de 53%
alcanzando un total de US $6.5 billones. Un 32%
correspondió a crecimiento orgánico y un 21% a las
adquisiciones de BAMER en Honduras, PROPEMI en El
Salvador y Financiera Miravalles en Costa Rica.
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es un elemento que nos distingue al gozar de una
calificación de riesgo superior al riesgo soberano de
cualquiera de los países donde tenemos operaciones.
rising oil, raw material and food prices, has upset or
thrown off the historical performance of traditional
global systems’ primary regulating variables.
Llegamos al año 2008 en un escenario internacional
incierto. La crisis hipotecaria, los aumentos de los
precios del petróleo, de las materias primas y de
los alimentos, ha generado una discontinuidad o
dislocamiento en el comportamiento histórico de
las principales variables reguladoras de los sistemas
globales tradicionales.
New rules of the game have been introduced to
everything transpiring locally, regionally and globally
– and, without a doubt, especially to our banking
activities.
Estos acontecimientos introducen nuevas reglas del
juego en todo el acontecer mundial, regional y local,
y sin duda alguna en nuestras actividades bancarias
en particular.
Ahora más que nunca debe prevalecer la cautela en
el manejo de nuestros negocios; debemos estar muy
alertas sobre el impacto que pueda tener en nuestras
actividades todo el acontecer mundial.
Esperamos que nuestros clientes y amigos estén
viendo sus negocios y actividades con la misma
seriedad y atención con la que nosotros estamos
viendo el nuestro. Pensamos que la situación actual
lo amerita.
Now, more than ever, we should exercise caution in
our business dealings; we should be highly alert to the
impact world events could have on our activities.
We hope our customers and friends are applying the
same seriousness and care to their businesses and
activities as we are with ours. We feel the current
situation merits no less.
Meanwhile, we will carry on with our tradition. We will
continue growing, innovating and seeking out better
products and services for our customers, that they may
always continue to prefer doing business with us.
We are certain that, with God’s help and your support,
we will succeed.
Mientras tanto, nosotros continuaremos con nuestra
tradición: seguiremos creciendo, innovando y
buscando mejores productos y servicios para nuestros
clientes, con la finalidad de seguir gozando de su
preferencia siempre.
Estamos seguros de que con la ayuda de Dios y con el
apoyo de todos Ustedes lo lograremos.
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Carlos Pellas
Chairman of the Board
Ernesto Castegnaro
President & CEO
J U N TA D I R E C T I VA D E B A C CO M - G E C F I N C .
BAC COM - GECF INC. BOARD OF DIRECTORS
Carlos F. Pellas – Presidente Junta Directiva / Chairman of the Board of Directors
F. Alfredo Pellas Jr. – Vicepresidente / Vice President
Ernesto Castegnaro – Presidente & CEO BIB / President & CEO BIB
Rubén Díaz – Secretario / Secretary
Silvio Pellas – Director / Director
Alberto Chamorro – Director / Director
Alejandro Gómez – Director / Director
Edmundo Vallejo – Director / Director
Ana Chadwick – Director / Director
Des O’Shea – Director / Director
Kishore Ponnavolu – Director / Director
Agustín de Jesús Carcoba Falomir – Director / Director
G E R E N T E S G E N E R A L E S Y G E R E N T E S D E PA Í S D E B A C I N T E R N AT I O N A L B A N K
B A C I N T E R N AT I O N A L B A N K M A N A G E R S A N D CO U N T RY M A N A G E R S
D I R E C TO R E S D E A R E A D E B A C I N T E R N AT I O N A L B A N K
BAC I NTER NATIONAL BAN K AR EA DI R ECTORS
Rodolfo Tabash – Banca / COO Bank Business
Juan Carlos Páez – Tarjetas de Crédito / COO Card Business
Federico Odio – Finanzas / CFO
Eugenia Castañeda – Riesgo / Risk
Luciano Astorga – Cumplimiento / Chief Compliance Officer
José Calderón – Auditoría Interna / Internal Audit
Rubén Díaz – Asesor Jurídico / Legal Counsel
Ernesto Castegnaro – Presidente & CEO
Ricardo Horvilleur – Florida – Credomatic
Alejandro Chamorro – México – Credomatic
Roberto Fuentes – Guatemala
Jacobo Atala – Honduras – BAC Bamer
Juan Carlos Páez – Honduras – Credomatic
Raúl Cardenal – El Salvador
Ricardo Barrios – Nicaragua
Gerardo Corrales – Costa Rica – BAC San José
José Ignacio Cordero – Costa Rica – Credomatic
Rodolfo Tabash – Panamá – BAC Panamá
Juan Carlos Mejía – Panamá – Credomatic
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Introducción
Introduction
Los activos alcanzaron los US $6.5 billones al cierre del
2007, lo cual representa un incremento del 53% con
respecto al año 2006. Esto se atribuye al crecimiento
orgánico de las diferentes líneas de negocios y a
nuestras adquisiciones, particularmente la de Banco
Mercantil de Honduras (Bamer).
Total assets reached US $6.5 billion as of year end,
representing an increase of 53% compared to 2006.
This growth is attributable to our organic growth and
our acquisitions, particularly that of Banco Mercantil de
Honduras (Bamer).
Activos | Assets
(US $MM)
8000
6,507
7000
6000
5000
4,240
4000
3000
2,293
2,665
3,356
2000
1000
0
2003
2004
El capital alcanzó los US $611 millones, cuyo incremento
se debe a la generación de nuevas utilidades.
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2005
2006
Total stockholders’ equity reached US $611 million. This
growth is attributable to higher net income during the
period.
Patrimonio | Equity
(US $MM)
700
611
600
461
500
382
400
300
2007
252
297
200
100
0
2003
2004
2005
2006
2007
Our principal source of funds is still customer deposits,
which reached US $4.2 billion, a 48% increase when
compared to 2006.
Nuestra principal fuente de fondos continúan
siendo los depósitos de nuestros clientes, los cuales
alcanzaron los US $4.2 billones, que representa un
crecimiento del 48% con respecto al año 2006.
Depósitos | Deposits
(US $MM)
5000
4,194
4000
2,838
3000
2,261
2000
1,571
1,741
2003
2004
1000
2005
2006
The Group’s profitability continued throughout 2007
with our net income reaching US $184 million. During
the year, extraordinary earnings of US $33 million were
earned because the Group received shares in VISA Inc. in
exchange for the rights of vote as part of the company’s
reorganization previous its Initial Public Offering. The
net profits excluding the extraordinary VISA income,
reached US $151 million.
La destacada rentabilidad que ha mantenido el Grupo
a lo largo de los años ha continuado en el 2007, donde
las utilidades netas fueron de US $184 millones.
Durante el año se registró una ganancia extraordinaria
por US $33 millones debido a que el Grupo recibió
acciones de VISA Inc. a cambio de los derechos de
voto que mantenía en esa asociación y como parte del
proceso de reestructuración de esta compañía previo
a su oferta pública inicial. De esta forma, la utilidad
neta excluyendo la ganancia extraordinaria de VISA
alcanzó los US $151 millones.
Utilidad Neta | Net Income
(US $MM)
200
2007
150
184
122
88
100
92
67
50
0
2003
2004
2005
2006
0
2007
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Descripción de la Compañía
Company Description
BAC | Credomatic Network es un grupo con presencia
en Guatemala, Honduras, El Salvador, Nicaragua, Costa
Rica y Panamá, países en los que ofrece amplia gama
de servicios bancarios, medios de pago y tarjetas de
crédito y débito. Además cuenta con operaciones de
tarjeta de crédito en México.
La compañía matriz del Grupo, BAC Internacional Bank
Inc, es una entidad financiera con licencia bancaria en
Panamá.
Nuestros sistemas y procesos nos permiten contribuir
a nuestros clientes, personas y empresas, con servicios
integrados e innovadores en la región en la que
operamos.
3.1 Productos y servicios
El Grupo continúa innovando para ofrecer mejores
productos y servicios a sus clientes.
En el área de banca contamos con cuentas de ahorros,
cuentas corrientes, depósitos a plazo fijo, préstamos
comerciales y personales, corretaje de valores, créditos
documentarios, emisión de garantías, préstamos
hipotecarios, pagos directos a proveedores, servicios de
planilla, envío de transferencias, cajeros automáticos,
entre otros.
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En el área de tarjetas de crédito y débito, se emiten
marcas tales como Visa, Mastecard, American Express,
las cuales cuentan con incentivos y servicios de valor
agregado. Por otra parte seguimos siendo líderes en el
negocio adquiriente, ofreciendo productos con un alto
grado de tecnología.
3.2 Historia
El Grupo BAC | Credomatic se fundó en 1952 con el
establecimiento del Banco de América en Nicaragua
y el inicio de operaciones de Credomatic Nicaragua en
1974. Credomatic Nicaragua comenzó sus operaciones
lanzando al mercado una tarjeta de crédito de uso
local cuyo nombre fue “Cred- o -matic”.
BAC | Credomatic Network is a group with operations
in Guatemala, Honduras, El Salvador, Nicaragua, Costa
Rica and Panama, where a wide variety of banking
services and credit and debit cards is offered. The Group
also has a credit card operation in Mexico.
The Group’s holding company is BAC International Bank
Inc., a financial institution with a banking license in
Panama.
Our systems and processes allow us to contribute
integrated and innovative services to our clients,
individuals and companies throughout the region.
3.1 Products and services
The Group continues to innovate to offer its customers
the very best in products and services.
Our banking operations offer savings and checking
accounts, time deposits, commercial and personal
loans, brokerage services, off-balance-sheet financing
arrangements, guarantees, mortgage loans, direct
deposits, payroll services, wire transfers, and ATM
services, among others.
Our debit and credit card operation issues brands such as
Visa, MasterCard and American Express, which provide
incentives and value-added services. We continue to
lead in the acquiring business, offering products using
highly innovative technology.
3.2 History
The BAC | Credomatic Group was founded in 1952 with
the establishment of the Banco de America in Nicaragua
and the later inauguration of Credomatic Nicaragua in
1974. Credomatic Nicaragua started off by launching a
local credit card called “Cred-o-matic”.
During 1973, the Group acquired the Master Charge
franchise (currently MasterCard), and in 1977 it obtained
a license to issue Visa credit cards in Central America.
En la década de los setentas Credomatic El Salvador,
Credomatic Costa Rica, Credomatic Guatemala
y Credomatic Honduras iniciaron operaciones
emitiendo tarjetas de crédito bajo las marcas Master
Card, Visa y Diners Club.
El Grupo BAC | Credomatic se enfocó exclusivamente
en el negocio de tarjetas de crédito hasta 1985,
cuando en conjunto con un grupo de socios locales,
adquirió la operación de Bank of America en Costa
Rica. Desde entonces, ha desarrollado un conjunto de
servicios financieros y bancarios complementarios a
la operación de tarjetas de crédito.
En 1995, BAC | Credomatic obtuvo licencia bancaria
en Panamá, entidad que inició operaciones en el año
1996.
En ese mismo año el Grupo BAC | Credomatic obtuvo
una licencia exclusiva para emitir tarjetas de crédito
American Express en la región de Centroamérica.
En 1997 obtuvo las licencias de banca para iniciar
operaciones en Guatemala con Banco de América
Central, en Honduras con Banco Credomatic
(actualmente denominado Banco BAC-Bamer) y
en El Salvador con Banco Credomatic El Salvador
(actualmente denominado Banco de América Central
El Salvador). Así, junto con los bancos existentes
en Costa Rica, Nicaragua y Panamá, logró la meta
estratégica de tener presencia en cada país de
Centroamérica.
En 2001, alcanza el grado de inversión BBB- por parte
de la calificadora Standard & Poors.
Como parte de la estrategia de crecimiento y
expansión, BAC | Credomatic se decide a incursionar
en el mercado de tarjetas de crédito en Panamá en el
2001 y en México en el 2004.
Durante el año 2005, el Grupo BAC | Credomatic llevó
a cabo una alianza estratégica con GE, en virtud de la
cual, su subsidiaria GE Consumer Finance, adquirió
During the seventies, Credomatic El Salvador,
Credomatic Costa Rica, Credomatic Guatemala and
Credomatic Honduras all kicked off by issuing credit
cards under the MasterCard, Visa and Diners Club
brands.
The BAC | Credomatic Group focused exclusively on the
credit card business until 1985, when, together with
a group of local Costa Rican partners, it acquired the
Costa Rican operations of Bank of America. Since then
has developed complementary financial and banking
services for its credit card operations.
In 1995, the BAC | Credomatic Group obtained a banking
license in Panama, opening a bank there in 1996.
In this year the BAC | Credomatic Group obtained
an exclusive license to issue American Express credit
cards everywhere in the Central America region except
Panama.
In 1997, the Group obtained banking licenses to start
operations in Guatemala with Banco de America
Central, in Honduras with Banco Credomatic (currently
known as BAC-BAMER), and in El Salvador with Banco
Credomatic El Salvador (currently known as Banco de
America Central El Salvador). By adding these to its
existing banks in Costa Rica, Nicaragua and Panama
it successfully met its strategic goal of establishing a
physical presence in every Central American country.
During 2001, the Group earned an investment rating
by Standard & Poors (BBB-).
As part of its growth and expansion strategy, the
Group decided to enter the credit card business, first, in
Panama in 2001, and then in Mexico in 2004.
In 2005, the Group entered into a strategic partnership
with GE whereby GE’s subsidiary, GE Consumer Finance,
acquired 49.99% of BAC | Credomatic GECF, Inc., a
holding company that indirectly has full control over
BAC International Bank.
During 2006, the Group’s Standard & Poors credit
rating was raised to BBB as a result of its financial
ratios and GE Money backing.
En 1973, el Grupo adquirió la franquicia Master Charge
(actualmente MasterCard) y en 1977, obtuvo la licencia
para emitir tarjetas de crédito Visa en la región de
Centroamérica.
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el 49.99% del capital de BAC | Credomatic GECF, Inc.,
una sociedad que indirectamente controla el 100% de
BAC International Bank.
En 2006 el Grupo BAC | Credomatic mejora su
calificación a BBB, otorgada por la calificadora
Standard & Poors, como resultado de sus indicadores
financieros y el soporte de GE Money.
3.3 Hechos relevantes año 2007
Durante el año 2007, como complemento al
crecimiento orgánico se realizan tres adquisiciones,
las cuales se detallan a continuación.
- Banco Mercantil de Honduras (Bamer): en Junio se
realiza la adquisición de este banco de gran prestigio
y trayectoria en Honduras. El objetivo principal de la
adquisición fue consolidar la presencia del Grupo
BAC | Credomatic en dicho país.
A Junio 2007, Bamer contaba con activos por
US $767 millones y depósitos por US $545 millones.
- Corporación Financiera Miravalles: en Junio se
adquirió esta entidad financiera costarricense
enfocada en el crédito de consumo. El objetivo de la
transacción fue fortalecer nuestros servicios en dicho
segmento.
A Junio 2007, Corporación Financiera Miravalles
contaba con activos por US $33 millones.
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- Propemi: en Noviembre se realizó la compra de esta
entidad salvadoreña con activos por US $62 millones,
compuesta principalmente por créditos a pequeñas y
medianas empresas. El objetivo de la transacción fue
fortalecer nuestra presencia en dicho segmento de
mercado.
3.3 Relevant events during 2007
As part of its growth strategy, the Group acquired three
businesses in 2007:
- Banco Mercantil de Honduras (Bamer). Acquired in
June, the main objective was to consolidate the Group’s
presence in Honduras. As of June 2007, Bamer had
US $767 million in total assets and US $545 million in
deposits.
- Corporacion Financiera Miravalles. Acquired in June,
Miravalles is a Costa Rican financial institution offering
consumer credit. The goal here was to strengthen our
presence in this segment. As of June 2007, Corporacion
Financiera Miravalles had US $33 million in total
assets.
- Propemi. Acquired in November, this Salvadorian
institution had US $62 million in total assets, primarily
distributed in small business loans. Our main objective
for this acquisition was to strengthen our presence in
that market segment.
4.1 Comités y estructura de Gobierno Corporativo
4.1 Commitees and Corporate Governance structure
Nuestra filosofía y estilo de gobierno corporativo están
centrados en asegurar que existe un adecuado control
interno y administración de riesgo independiente
de la gerencia, así como un seguimiento continuo y
evaluación de las operaciones por la Junta Directiva.
Our philosophy and corporate governance style are
geared towards ensuring: (i) an adequate system of
internal control and risk management, independent
of management, and (ii) an ongoing monitoring and
evaluation of our operations by the Board of Directors.
Nuestra estructura de Gobierno Corporativo incluye a
la Junta Directiva y cinco comités. La Junta cuenta con
representantes del grupo mayoritario de accionistas
así como de GE, nuestro socio estratégico. Los
miembros de la Junta son también miembros de los
Comités Regionales.
Our corporate governance structure includes our
Board of Directors and five Regional Committees. The
Board has representatives from both the group of
majority shareholders and GE, our strategic partner.
The Board members are also members of our Regional
Committees.
El principal objetivo es supervisar el desempeño de
la Gerencia en servicio de nuestros accionistas, entes
reguladores, empleados y clientes. Para cumplir con
esto la Junta ha implementado principios de gobierno
corporativo con fin de definir sus responsabilidades.
Durante el año 2007 la Junta se reunió periódicamente
para discutir estrategia y desempeño.
The primary objective is to oversee management’s
performance in service to our stockholders and other
stakeholders such as regulators, employees and clients.
To accomplish this, our Board has adopted corporate
governance principles aimed at defining the Board’s
responsibilities. In 2007, the Board met periodically to
discuss strategy and performance.
El Comité de Auditoría está compuesto por cinco
miembros que supervisan nuestra estructura
de control interno, se reúnen con los auditores
externos y dan seguimiento al plan de trabajo de
Auditoría Interna, la cual cuenta con un alto grado de
independencia.
Our five-member Audit Committee oversees our
internal control structure, meets with our external
auditors, and follows up on internal audits with a high
degree of independence.
Nuestros Comités de Activos y Pasivos, Crédito,
Cumplimiento y Operaciones también se reúnen
regularmente y están conformados por miembros de
la Junta Directiva.
4.2 Código de Ética
El Grupo BAC | Credomatic se ha adherido al Código
de Ética de GE, denominado “El Espíritu y la Letra”.
“El Espíritu y La Letra” define los más altos estándares
que deben seguir todos los empleados de GE y dada
Our Asset and Liability, Credit, Compliance and
Operations Committees also hold regular meetings
throughout the year. Members of the Board of Directors
also serve on these committees.
4.2 Code of Conduct
The Group has implemented GE’s Code of Conduct,
known as “The Spirit and the Letter”.
The Spirit and the Letter defines the highest ethical
standards and its compliance is mandatory for all Group
employees. The code of conduct covers relationships
with suppliers, prevention of money laundering, fair
Gobierno Corporativo y Ética
Corporate Governance and Ethics
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la adhesión realizada por el Grupo, es de acatamiento
obligatorio para todos los empleados y ejecutivos de
BAC | Credomatic.
Dicho Código de Ética comprende áreas como
relaciones con proveedores, prevención de lavado de
dinero, prácticas laborales justas, medio ambiente,
salud y seguridad, conflictos de interés, entre otras.
Por
otra parte se estableció la figura del
Ombudsperson que es una persona que está
disponible para atender cualquier reporte o queja
de los colaboradores del Grupo sobre posibles
violaciones del Código de Ética “El Espíritu y la Letra” o
simplemente hacer consultas sobre este.
- 11 -
labor practices, the environment, workplace health and
safety, and conflicts of interest, among other aspects.
The Group has also established an Ombudsperson
process that serves as a mechanism for individuals to
ask questions and report integrity concerns without
fear of retaliation.
Legal y Regulación
Legal and Regulations
En su calidad de banco, es regulado por la
Superintendencia de Bancos de Panamá, la cual emite
normativa prudencial, en áreas tales como capital,
liquidez, crédito a empresas relacionadas, entre
otras. Los Bancos panameños de licencia general
están sujetos a una inspección al menos cada dos
años por parte de la Superintendencia de Bancos y a
la presentación y publicación de informes y estados
financieros en forma periódica.
La Ley Bancaria de Panamá adoptó las recomendaciones de Basilea en el área de supervisión
consolidada, y por esta razón la Superintendencia
de Bancos de Panamá realiza inspecciones a las
subsidiarias del Grupo en el resto de los países y
amparada en acuerdos de entendimiento, coordina
las actividades de supervisión con los reguladores
en cada uno de los países. Adicionalmente existen
límites e indicadores que se verifican de una forma
consolidada, ejemplos de esto son el requerimiento
de capital y los límites a empresas relacionadas.
Por otra parte las subsidiarias bancarias, de corretaje
y de administración de portafolios por cuenta de
terceros, se encuentran reguladas por las autoridades
correspondientes en cada uno de los países donde
opera el Grupo. Estas empresas se encuentran sujetas
a regulaciones relacionadas con capital, crédito a
personas y empresas relacionadas, liquidez, prácticas
contables, constitución de estimaciones y reservas,
manejo de riesgos, entre otras.
Our holding company, BAC International Bank Inc.,
is a Panama-based bank operating under a general
banking license that allows it to offer services and to
capture both international and Panamanian funds.
BAC International Bank is under the supervision of the
Superintendence of Banks of the Republic of Panama,
which issues prudential regulations on capital, liquidity,
credit to related companies, and other aspects.
All Panamanian banks with a general license are
subject to inspection by the Superintendence of Banks
at least every two years, and are required to submit
and publish financial statements regularly.
Banking law in Panama follows the Basel Committee
recommendations for consolidated supervision;
therefore, the Superintendence of Banks reviews the
Group’s subsidiaries in other countries, and backed by
agreements of understanding coordinates oversight
with the other countries’ regulators. Additionally, limits
and ratios – such as capital requirements and limits for
related companies – are reviewed on a consolidated
basis.
Also, the other banking, brokerage and third-party
portfolio management subsidiaries are regulated by
the corresponding authorities of each country in which
they operate. These entities are subject to regulations
on capital, credit limits for related companies, liquidity,
accounting practices, reserve requirements and risk
management, among others.
La compañía matriz del Grupo, BAC International Bank
Inc, es una entidad financiera domiciliada en Panamá
que opera bajo una licencia general en dicho país, que
le permite ofrecer servicios y captar recursos tanto
a nivel internacional como a personas y empresas
panameñas.
- 12 -
Información Financiera Relevante
Relevant Financial Information
6.1 Análisis de balance y resultados
6.1 Balance sheet and Income Statement Analysis
El Grupo contaba al cierre del 2007 con
US $1.5 billones de liquidez e inversiones, lo cual
representa un crecimiento del 28% con respecto al año
2006. Este crecimiento se debe al incremento en las
actividades del Grupo, que demanda mayor cantidad
de recursos para realizar transacciones, cumplir con
requerimientos regulatorios y mantener reservas
adecuadas de liquidez.
As of December 31, 2007, the Group had US $1.5 billion in
liquidity and investments, representing an increase of
28% compared to 2006. This growth is attributable to
greater Group activity, which required more resources for
funding transactions, meeting regulatory requirements
and maintaining adequate liquidity reserves.
Liquidez e inversiones en valores | Liquidity and investments
(US $MM)
2000
1,509
1500
1000
820
886
1,021
1,176
500
0
- 13 -
2003
2004
La cartera de créditos alcanzó los US $4.7 billones, lo
que representa un crecimiento de 62% con respecto al
año 2006.
Dentro de este crecimiento se destaca el aporte de tres
adquisiciones, siendo el Banco Mercantil (Bamer) de
Honduras, el de mayor tamaño. Al mes de diciembre
2007, la cartera de crédito de Banco Mercantil ascendía
a US $587 millones.
2005
2006
2007
The loan portfolio amounted to US $4.7 billion, a rise of
62% from 2006.
Much of this increase is explained by the three
acquisitions listed above, Bamer being the largest. As of
December 31, 2007, Bamer’s loan portfolio amounted to
US $587 million.
Cartera de préstamos | Loan portfolio
(US $MM)
4,674
5000
4000
2,884
3000
2000
2,171
1,340
1,653
1000
2003
2004
2005
2006
2007
Comercial e industrial / Commercial and Industrial
Tarjeta Crédito / Credit card
Hipotecas / Residential Mortgages
Automóviles / Vehicles
Consumo / Consumer
Otros / Others
La cartera de crédito mostró un crecimiento orgánico
sano del 38%, producto del éxito en las actividades
de colocación, las cuales se han realizado en forma
prudente, utilizando estándares conservadores de
originación y estrictos controles preventivos sobre la
cartera existente.
The loan portfolio had an organic growth of 38%, as a
result of successful placements, which have been made
prudently in observance of conservative origination
standards and strict preventive controls over the
existing portfolio.
Deposits amounted to US $4.2 billion, up 48% from
2006. Checking and savings deposits rose 49% and
time deposits increased 46%.
Los depósitos alcanzaron US $4.2 billones, un 48% más
con respecto al año 2006. Los depósitos en cuentas
corrientes y de ahorro crecieron en conjunto un 49% y
los depósitos a plazo crecieron un 46%.
5000
Composición de los depósitos | Deposit breakdown
(US $MM)
4,194
4000
2,838
3000
1,799
2,261
2000
1,571
683
1000
0
193
1,233
1,824
722
1,044
803
236
695
785
2003
2004
Cuentas corrientes / Demand deposits
260
303
957
1,301
2005
2006
Cuentas ahorro / Savings
1,673
2007
0
Depósitos a plazo / Time deposits
- 14 -
6.2 Fuentes de fondeo
6.2 Funding Sources
Nuestra principal fuente de fondeo son los depósitos,
que representan el 75% del fondeo total a diciembre
2007.
Customer deposits are our primary source of funds,
representing 75% of total funding as of December 2007.
6000
Fuentes de fondeo | Sources of funding
(US $MM)
5,580
5000
1,386
3,551
4000
2,807
3000
2000
1000
0
1,913
342
2,229
1,571
1,824
2003
2004
Como complemento a los depósitos se dispone de una
serie de fuentes de fondeo institucional, tales como
préstamos a largo plazo con entidades financieras,
líneas de crédito de corto plazo y colocaciones
de títulos valores. Estas fuentes de fondeo están
constituidas con entes y mercados tanto locales como
internacionales.
546
4,194
405
Depósitos / Deposits
- 15 -
713
El acceso a préstamos de largo plazo y al mercado de
capitales es clave en la adecuada administración de
los riesgos de liquidez, tasa de interés y cambiario,
a la vez que nos permite ofrecer mejores soluciones
financieras a nuestros clientes.
La captación de depósitos a la vista y el grado de
inversión que ostenta el Grupo nos ha permitido
mantener una costo de fondos relativamente bajo.
2,261
2005
2,838
2006
2007
Fondeo Institucional
Institutional Funding
In addition to deposits, institutional sources of funds
are available from local and international entities and
markets, such as long-term loans from other financial
institutions, short-term lines of credit and bond
placements.
Access to long-term loans and capital markets is key
not only for ensuring adequate liquidity, interest and
foreign exchange risk management, but also for offering
superior financial solutions to our customers.
The Group’s investment grade rating and ability to
capture demand deposits have allowed us to maintain
a relatively low cost of funds.
Evolución costo de fondos vrs 3m Libor | Funding cost evolution vs 3m Libor
6%
5%
4%
3%
Dic 04 Jun 05
Dic 05
Jun 06
Libor 3m
Dic 06
Jun 07
Dic 07
Costo de fondos / Funding Cost
6.3 Capital
6.3 Capital
El Grupo administra su capital de manera consistente
con los riesgos asumidos. De acuerdo con el Comité
de Supervisión Bancaria de Basilea, un banco
adecuadamente capitalizado debe mantener una
relación de capital ajustado a activos ponderados por
riesgo, mayor o igual a 8%.
The Group manages its capital consistently in
accordance with the assumed risks. According to
the Basel Committee on Banking Supervision, to be
adequately capitalized a bank’s ratio of adjusted
capital to risk-adjusted assets must be maintained at
or above 8%.
Al 31 de diciembre del 2007, la relación de capital ajustado
a activos ponderados por riesgo de BAC Internacional
Bank y Subsidiarias se ubica en 9.83%.
As of December 31, 2007, BAC International Bank’s
capital adequacy ratio was 9.83%.
Las utilidades retenidas constituyen la principal fuente
de capitalización para el Grupo, así para el año 2007, estas
crecieron en US $145.7 millones netos de dividendos. Lo
anterior representa el 79% de la utilidad neta para el
mismo año.
6.4 Eficiencia
El Grupo se ha enfocado en el tema de eficiencia,
mediante un proceso consistente y sostenido que incluye
iniciativas enfocadas en el control de gastos y costos, así
como el desarrollo de nuevas fuentes de ingresos.
Estos esfuerzos han dado como fruto una mejora en
nuestro indicador de eficiencia, medido como la relación
de gastos operativos con respecto a los ingresos netos,
el cual se ubicó en 60.4%, una mejora con respecto al
62.04% del año 2006 y que es la continuación de una
tendencia que es consistente en los últimos años.
Retained earnings constitute the main source of capital
for the Group; during 2007 they increased by US $145.7
million, net of dividends. This represents approximately
79% of 2007 net income.
6.4 Efficiency
The Group continues to focus on efficiency through a
steady, ongoing process that includes various initiatives
aimed at controlling expenses and costs and developing
new revenue sources.
These initiatives have borne fruit in terms of our
efficiency ratio, defined as the ratio of operating
expenses to net revenues. The ratio for 2007 was
60.4%, an improvement over the 62.94% obtained in
2006 and a continuation of the trend for the past few
years.
2%
- 16 -
6.5 Rentabilidad
6.5 Profitability
En el 2007 se logró un retorno sobre el patrimonio
(ROE) de 34.2% y un retorno sobre el activo (ROA)
de 3.4%. Estos indicadores evidencian la destacada
rentabilidad que BAC | Credomatic Network ha
mantenido en forma consistente a través de los años.
In 2007 we reached a 34.2% return on equity (ROE)
and a 3.4% return on assets (ROA). Both indicators
are evidence of the outstanding profitability BAC |
Credomatic Network has steadily maintained over the
years.
Al ajustar los indicadores de rentabilidad para el año
2007, de manera que se elimine el efecto del ingreso
extraordinario por las acciones de VISA Inc, el ROE fue
de 28.2% y el ROA fue 2.8%
Upon adjusting the return rates for 2007 to eliminate
the effect of extraordinary income from VISA, Inc. stock,
the ROE was 28.2% and the ROA was 2.8%.
Retorno sobre el patrimonio | Return on equity
(%)
35
34.2%
32%
30
27.2%
29%
25
20
15
10
5
0
- 17 -
2004
2005
2006
2007
Retorno sobre el activo | Return on assets
(%)
3.5%
3.5
3.1%
3.2%
3.4%
3.0
2.5
2.0
1.5
1.0
0.5
0.0
2004
2005
2006
2007
Productos y Segmentos de Negocios
Products and Business Segments
El Grupo tiene más de 1.5 millones de clientes y opera
en siete países. Al 31 de diciembre de 2007, BAC
contaba con aproximadamente 15.000 empleados.
The Group has more than 1.5 million customers and
operates in seven countries. As of December 31, 2007,
BAC had approximately 15,000 employees.
Estamos organizados para operar como una
institución, aún cuando operamos a través de varias
entidades en diferentes países. Esta estructura nos
permite ofrecer los mismos productos y servicios a
toda la región, aprovechando recursos y economías
de escala para mejorar nuestros niveles de eficiencia.
Aplicamos los mismos procesos, procedimientos y
sistemas en los diferentes países en los que operamos,
lo cual se verifica mediante nuestro sistema de gestión
de calidad, certificado bajo la norma ISO- 9001: 2000.
We are organized to operate as a single institution, even
though we operate through several entities in different
countries. Our structure enables us to offer the same
products and services region-wide, leveraging resources
and applying economies of scale to improve efficiency
levels. We apply the same processes, procedures and
systems, validated by our ISO-9001:2000-certified
quality system, in the different countries in which we
operate.
Producto de las adquisiciones realizadas durante el
año 2007 y la integración de dichas instituciones a
nuestra red, hemos expandido la capacidad de servicio
y productos a nuestros clientes.
The integration of our 2007 acquisitions into our
network has allowed us to expand our service capacity
and product range.
We offer the following products through our network:
A través de nuestra red ofrecemos los siguientes
productos:
Negocio Adquiriente
Merchant Acquiring
• Procesamiento / Processing
• Arrendamiento y venta de
terminales de punto de venta
Lease and sale of POS
• Liquidaciones de tarjetas
autorizadas
Authorized card settlement
• Autorización “off line” de
tarjetas de débito
Off-line debit card authorization
• Informes personalizados
Customized reporting
Negocio Emisor
Credit Card Issuing
• Emisión de tarjetas de
crédito y débito
Credit card issuance
• Procesamiento de emisor
Issuer processing
Banca de Consumo Personal
Retail/Personal Banking
• Tarjetas de débito / Debit Cards
• Préstamos hipotecarios
Mortgage loans
• Préstamos y arrendamientos
de autos / Auto loans & leasing
• Banca personal
Personal Banking
• Remesas familiares
Familiy remittances
• Adelanto salario / ADS
• Fondos de inversión
Investment funds
• Fondos de pensión / Pension funds
• Puesto de bolsa / Brokerage
• Depósito Centroamericano
Central America Deposit
• Americheck / Ameritransfer
Banca Comercial
Commercial Banking
• Financiamiento de importación
Trade financing
• Capital de trabajo
Working capital
• Otros préstamos / Other loans
• Productos fuera de balance
Off-balance sheet products
• Planillas
Payroll and supplier payment
services
• Fondos de inversión
Investments fund
• Depósito Centroamericano
Central American Deposit
• Puesto de Bolsa / Brokerage
BAC | Credomatic Network
- 18 -
El Grupo ofrece tarjetas de crédito MasterCard, Visa
y American Express, además de JCB y Diners Club. Al
integrar todas las marcas de tarjetas de crédito en un
mismo emisor y procesador, se facilita la conciliación
por parte del comercio afiliado lo que se traduce en
una propuesta de valor en nuestros mercados.
Dentro de cada marca, el cliente puede optar por
solicitar tarjetas tipo Platino, Dorada, Clásicas o
Locales, dependiendo de sus necesidades. Igualmente
nuestros clientes pueden seleccionar entre una
variedad de programas de lealtad creados para
agradecer su preferencia, incentivando el uso frecuente
de su tarjeta de crédito, tales como AAdvantage,
PriceSmart, Cash Back, Puntos Credomatic, entre
otros.
El negocio de tarjetas de crédito ha mostrado un
crecimiento sostenido y estable a través de los años.
Específicamente, el saldo por cobrar por tarjetas de
crédito ha crecido en promedio 28% anual desde el año
2003 y en el año 2007 creció en un 28% con respecto
al 2006.
The Group offers MasterCard, Visa, American Express,
JCB and Diners Club credit cards. Integrating all
credit cards brands with a single issuer and processor
facilitates their reconciliation by affiliated merchants,
and provides us with a value proposal for our markets.
Customers can choose Platinum, Gold, Classic, or local
credit cards for each brand, depending on his or her
needs. Customers can also choose from a wide range
of loyalty programs, such as AAdvantage, PriceSmart,
Cash Back, and Puntos Credomatic, designed to show
our appreciation for their preference and to encourage
frequent use of the cards.
The credit card business has expanded steadily and
sustainably through the years. Our “outstanding”
portfolio has grown an average of 28% annually since
2003, with a 28% increase over 2006 for the year ended
2007.
Saldo tarjetas de crédito | Credit Card Receivables
(US $MM)
1,187
1200
926
1000
706
800
568
600
- 19 -
443
400
200
0
2003
2004
Por otra parte el Grupo ofrece crédito de consumo,
mediante préstamos para vivienda, adquisición de
vehículos y préstamos personales, negocio que ha
presentado un crecimiento importante, 52% promedio
en los últimos cinco años, donde se destaca el año
2007 con un crecimiento del 67%.
2005
2006
2007
The Group also offers consumer credit through
mortgages, auto loans, and personal loans. Credit
growth has been significant over the years, increasing
by an average of 52% annually in the past five years,
while in 2007 alone it rose by 67%.
Crédito de consumo | Consumer loans
(US $MM)
2000
1,717
1500
1,027
1000
653
500
0
319
2003
443
2004
Como complemento al crédito de consumo, se ofrece
crédito comercial y corporativo, el cual ha crecido en
un 33% promedio anual en los últimos cinco años.
Durante el 2007, el crédito comercial y corporativo
creció un 90%, el cual tiene un aporte importante de
la adquisición de Bamer en Honduras.
2005
2006
2007
As a supplement to consumer credit, we also offer
commercial and corporate credit, which increased on
average 33% annually over the past five years. During
2007, commercial and corporate credit grew by 90%,
primarily due to the acquisition of Bamer in Honduras.
Crédito corporativo | Corporate loans
(US $MM)
2000
1500
1000
500
0
686
557
2002
CRI
2003
PAN
776
813
2004
2005
NIC
SAL
931
2006
HON
2007
GUA
1,770
- 20 -
Adicionalmente se ofrece a sus clientes servicios
de valor agregado como el dispositivo de seguridad
adicional BAC Token, Adelanto de Salario (ADS), pago
de planillas y proveedores, seguros que cubren la
tarjeta de crédito en caso de pérdida, robo o fraude,
Soporte Operativo de Servicio (SOS Credomatic),
envío y recepción de remesas internacionales, entre
otros. Durante el 2007, el aumento en el ingreso por
comisiones generado por este tipo de servicios fue
33%, superior al 24% logrado en el 2006.
The group also offers added value services such as
BAC Token (an additional security measure); Salary
Advance (ADS); payroll and supplier payment; credit
card loss, theft and fraud insurance; Service Operating
Support (SOS Credomatic); sending and receiving of
international remittances; and others. Commissions
generated by these services rose by 33% in 2007, up
from the 24% increase in 2006.
Fee income represents approximately 45% of our net
revenues, even after considering the rapid expansion of
our credit portfolio and the resulting interest margin.
Lo anterior ha permitido que el ingreso por comisiones
mantenga su participación en aproximadamente 45%
de los ingresos netos, a pesar del alto crecimiento
en la cartera de crédito y por ende del margen de
intereses.
Ingreso por servicios | Services revenue
(US $MM)
800
708
700
533
600
500
400
300
388
423
292
229
200
100
0
194
2005
2006
Margen intereses | Interest margin
- 21 -
Un elemento importante para el buen desempeño
financiero, es el contacto con nuestros clientes,
utilizando tanto canales tradicionales como
electrónicos.
Al 31 de diciembre de 2007, el Grupo tenía 391
sucursales, distribuidas de la siguiente forma:
País / Country
Costa Rica
El Salvador
Guatemala
Honduras
Nicaragua
Panama
320
241
2007
Ingresos comisiones | Fee income
An important factor in our financial performance is our
contact with customers through both traditional and
electronic channels.
As of December 31, 2007, the Group had 391 branches
distributed as follows:
Sucursales
Number of Branches
77
57
47
122
66
22
Aproximadamente el 88% de las transacciones de
nuestros clientes se realizan a través de canales
electrónicos (Sucursal Electrónica, ATM, kioscos, banca
por teléfono).
Approximately 88% of our customer transactions take
place through electronic channels (online banking,
ATM, kiosks and telephone banking).
Total de transacciones y porcentaje de penetración del canal
Total of transactions and percentaje of channel penetration
2006
39,772
11%
37,582
11%
2,846
1%
3,078
1%
42,618
12%
40,660
12%
61,655
17%
46,921
14%
44,200
12%
38,441
12%
5,585
2%
4,226
1%
6,170
2%
5,152
2%
203,056
56%
196,429
59%
320,665
88%
291,169
88%
363,283
100%
331,829
100%
Durante el 2007 se procesó un volumen total de
US $7.5 billones, 24% más comparado con el 2006. El
volumen propio fue de aproximadamente US $$1.6
billones y aumentó un 29% durante el período.
During 2007 the processed volume reached
approximately US $7.5 billion, an increase of 24% over
2006. The volume of our cards was approximately
US $1.6 billion, increasing 29% during the period.
2007
- 22 -
Administración de Riesgo
Risk Management
8.1 Riesgo de crédito
8.1 Credit Risk Management
El Grupo cuenta con estrictas políticas de control y
administración del riesgo de crédito, las cuales son
establecidas y su cumplimiento verificado en el Comité
de Crédito Regional, un comité de la Junta Directiva
del Grupo.
The Group has strict control and credit risk management
policies, which are established and overseen by the
Regional Credit Committee, a Board of Directors
committee.
El Comité de Crédito está compuesto por personas
de amplia trayectoria en la administración del riesgo
de crédito y que cuentan con amplia experiencia,
incluyendo periodos de crisis, en donde eventos
políticos, económicos y naturales han demostrado la
solidez de nuestras políticas.
Como apoyo al Comité de Crédito existe una Dirección
Regional de Cartera, que monitorea, define criterios y
estandariza prácticas en todas la empresas del Grupo
y que tiene una participación activa en el análisis y
ejecución de proyectos o prospectos de negocios que
implican riesgo de crédito.
- 23 -
Por otra parte, en cada una de las empresas del Grupo
que llevan a cabo actividades crediticias, se cuenta con
una estructura de análisis independiente de las áreas
de negocios, y que sigue los principios básicos de la
prudente administración del riesgo de crédito, que se
han probado a lo largo de muchos años, con apoyo de
nuevas herramientas tecnológicas permiten realizar
su labor de una forma más eficiente.
Entre las sanas prácticas que el Grupo realiza a nivel
de riesgo de crédito se encuentran:
• Definición de estrategias de crecimiento de acuerdo
al riesgo país.
• Revisión frecuente de la situación política, social y
económica, tanto de los países donde operamos como
a nivel internacional.
• Análisis cualitativos y cuantitativos de industrias,
The Credit Committee is composed of persons with broad
experience and expertise in credit risk management,
even in periods of economic crisis, when political,
economic or natural events have tested the strength of
our policies.
To support the Credit Risk Committee we have a Regional
Portfolio Management Department that monitors,
defines criteria and standardizes practices in all of the
Group’s entities. It also actively participates in analyzing
and executing business projects or prospectuses with
credit risk.
Each Group entity that works with credit also has an
internal credit risk analysis structure independent of
the business area. This structure follows basic, timetested principles of prudent credit risk management,
supported by innovative technological tools enabling it
to work more efficiently.
The Group’s credit risk management practices include
the following:
• Definition of growth strategies according to country
risk.
• Frequent review of the political, social and economic
situation of the countries we operate in and the
international scene.
• Qualitative and quantitative analysis of industries,
sectors and segments, used for managing our portfolio
distribution, and reaching decisions such as whether to
enter or leave a specific market sector or segment.
sectores y segmentos, que se utilizan para administrar
la participación de cada uno en nuestro portafolio, y
como herramienta para tomar decisiones tales como
entrar o salir de un determinado sector o segmento
de mercado.
El Grupo monitorea la calidad de nuestro portafolio
de crédito y mantiene una reserva de préstamos que
es suficiente para absorber las pérdidas probables
inherentes en nuestro portafolio de crédito.
Considerando el crecimiento de nuestro portafolio de
préstamos por aproximadamente 62%, mantuvimos
nuestra cobertura de reserva para pérdidas en
préstamos al 2.7%, un aumento de 13% en comparación
con el año terminado el 31 de diciembre del 2006.
Los préstamos en estado de no acumulación y
deteriorados representan el 1.8% y 1.4% del total de
nuestro portafolio de préstamos al cierre del período
2007 y 2006, respectivamente.
Las estrictas políticas de riesgo de crédito y la
mezcla adecuada de negocios han contribuido a
mantener buenas razones de calidad de activos. El
Grupo mantiene una razón de activos promedios nogeneradores menor al 1.5% en los últimos tres años
y reservas de pérdidas en préstamos de menos de
3.0%. Los castigos netos promedios han sido menores
al 1.50% en los últimos dos años y la provisión para
pérdidas en préstamos de menos de 1.90% en el
mismo periodo.
The group monitors our credit portfolio quality and
maintains a sufficiently large loan-loss allowance to
cover likely inherent credit portfolio losses.
Considering the loan portfolio has grown approximately
62%, we have maintained our loan-loss allowance at
2.7%, a 13% rise over December 31, 2006. Non-accrual
loans and impaired loans represent 1.8% and 1.4% of
our total loan portfolio at the December 31 close for
2007 and 2006, respectively.
Our strict credit risk management policies and
appropriate business mix have helped to maintain
the quality of our assets. The Group’s nonperforming
average asset ratio has been under 1.5% for the past
three years, and our loan-loss allowance has been under
3.0%. Net average charge-offs have been less than 1.5%
over the last two years, and the provision for loan losses
has been under 1.9% during the last two years.
8.2 Market Risk
The Investment Policy goal is to control the risk
associated with the Group’s investments, which are
used as instruments to manage liquidity; the criteria
for these investments, therefore, are conservative with
respect to terms and credit risk.
The policy defines country risk and issuer risk limits;
compliance is continually monitored using a software.
El Grupo BAC | Credomatic cuenta con políticas y
mecanismos de administración de riesgos de mercado.
La Política de Inversiones tiene como objetivo controlar el
riesgo asociado a las inversiones que realiza el banco, las
cuales son un instrumento para administrar la liquidez y
por lo tanto se manejan con criterios conservadores en
cuanto a plazo y riesgo de crédito.
En dicha política se definen los límites de riesgo país y
riesgo emisor y su cumplimiento se verifica en forma
permanente a través de una herramienta informática.
8.2 Riesgo de Mercado
- 24 -
Adicionalmente se definen las atribuciones para
aprobar nuevos límites de riesgo país, emisor y
emisión. En general los límites de riesgo país y emisor
son aprobados por el ALICO Regional (Comité de
Activos y Pasivos por sus siglas en inglés), el cual está
conformado por directores de la Junta Directiva del
Grupo BAC | Credomatic.
The attributes for approving new country risk limits,
issues or issuance are also given; in general terms, country
and issuer risk limits are approved by the Regional ALICO
Committee (Asset and Liability Committee), which is
composed of members of the Group’s Board.
Inversiones y depósitos a plazo por emisor
Investments and term deposits by usser
Fannie Mae
4%
El Salvador Gov
4%
Gov Honduras
8%
FHBL
6%
US Gov
8%
Gov Costa Rica
26%
Gov Guatemala
10%
BCIE
8%
Other
28%
La Política de Administración de Activos y Pasivos
tiene como objetivo controlar los riesgos de mercado
y liquidez.
- 25 -
El riesgo de liquidez se monitorea a través de
dos formas: la primera consiste en el cálculo de
una posición de liquidez neta de obligaciones y
requerimientos, y la segunda es mediante el análisis
de los calces de plazos, donde se asignan los activos y
pasivos según su vencimiento y se definen límites para
los descalces acumulados a 6 y 12 meses para indicar
qué proporción de los recursos captados a corto plazo
que se pueden colocar en activos de largo plazo.
El riesgo de tasas de interés se controla a nivel del
balance (duración de activos y pasivos) y a nivel de
la cartera de inversiones (duración modificada de los
instrumentos en el portafolio). En ambos casos se
The Asset and Liability Management Policy objective is
to control market and liquidity risks.
The liquidity risk is controlled in two ways. The first
consists of calculating the liquidity position, net of
obligations and requirements.
The second is by using maturity gap analysis whereby
assets and liabilities are aggregated by maturity and
limits are defined for the accumulated gaps at 6 to 12
months; these limits determine the amount of shortterm deposits that could be placed at longer terms.
The interest rate risk is controlled at the balance sheet
level (assets and liabilities duration) as well as the
investment portfolio level (modified duration of the
investment portfolio); in both scenarios a sensitivity
analysis is made for a change of 1% in US dollar rates
El riesgo cambiario es controlado manteniendo una
posición ajustada en dólares americanos (activos en
dólares menos pasivos en dólares más activos fijos
y otros activos no monetarios) como porcentaje del
patrimonio de cada país. De esta manera se protege
el patrimonio ante potenciales devaluaciones de las
monedas de los países donde opera el Grupo BAC |
Credomatic.
El cumplimiento de las políticas es monitoreado
por la Dirección Regional Financiera y es reportado
a los Comités de Activos y Pasivos de cada país, al
ALICO Regional y a la Junta Directiva del Grupo. En
caso de que alguna exposición sobrepase los límites
aprobados, los responsables deben brindar una
explicación ante dichas instancias y crear un plan de
acción para corregir la situación en el menor tiempo
posible.
8.3 Riesgo operativo
La gestión de riesgos operativos de BAC|Credomatic
Network se realiza mediante una metodología
conceptual que sigue los lineamientos de Basilea II
e incorpora además algunos elementos del esquema
de administración integral de riesgos de COSO
(Committee of Sponsoring Organizations of the
Treadway Commission), la cual es una organización
dedicada a mejorar la calidad de los reportes
financieros a través de la ética en los negocios,
controles internos efectivos, gobierno corporativo,
entre otros y que además ha emitido estándares
en diversas áreas incluyendo la gestión de riesgos
operativos.
Nuestros sistema de gestión es un proceso continuo
de administración descentralizada del riesgo en varias
‘etapas’:
• Gestión de ambiente de control (medición y
corrección de brechas).
and 2% in local currency rates for each bank in Central
America. There is a maximum exposure limit measured
as a percentage of the net income for that period.
The foreign exchange risk is controlled by maintaining
an adjusted position in US dollars (USD assets – USD
liabilities + fixed assets and other non-monetary
assets) as a percentage of the stockholders’ equity in
each country. The stockholders’ equity is protected
from potencial devaluations in the countries the Group
operates in.
Policy compliance is verified by the Regional Finance
Division and is reported to both the countries’ Assets
and Liabilities Committees and the Regional ALICO
and Group Board of Directors. If exposure exceeds the
approved limits, those responsible must provide an
explanation to the committees and develop an action
plan to correct the situation as quickly as possible.
8.3 Operating Risk
The Group manages operating risk using a conceptual
methodology that follows Basel II guidelines and
incorporates certain elements of the COSO risk
management conceptual framework. The Committee of
Sponsoring Organizations of the Treadway Commission
(COSO) is an organization dedicated to improving the
quality of financial reporting through business ethics,
effective internal controls and corporate governance;
it has issued standards in different areas, including
operational risks.
Our management system is a continuous process of
decentralized risk management in various “phases”:
• Control environment (measurement and resolution
of gaps).
• Risk identification and assessment.
• Risk mitigation (implementation of controls, only in
cases where risks exceed acceptable levels).
• Risk monitoring (checking on risk indicators).
• Risk measurement (incident collecting and capital
modeling).
calcula un factor de sensibilidad ante un cambio de 1%
en las tasas de interés en dólares y 2% para las tasas en
monedas locales para cada banco en Centroamérica.
Existe un límite máximo para esta exposición medida
como un porcentaje de las utilidades presupuestadas
para el año.
- 26 -
• Identificación y evaluación de riesgos.
• Control effectiveness testing.
• Mitigación de riesgos (implementación de controles;
solo se hace en los casos en que los riesgos superan un
límite de aceptación).
This methodology provides various benefits:
• Monitoreo de riesgos (seguimiento de indicadores
de riesgo).
• Medición de riesgos (recolección de incidentes y
modelación de capital).
• Pruebas de efectividad de controles.
Esta metodología genera varios beneficios:
• Permite un trato conceptual homogéneo de los
riesgos operativos de todos los productos por variados
que éstos sean, lo que sirve de base para priorizar.
• Promueve un uso eficiente y efectivo de los recursos:
se invierte más en controlar los riesgos mayores.
• Mejora la comprensión y propiedad de los riesgos por
parte de cada unidad operativa o de negocios: permite
un reconocimiento más oportuno de los problemas
(pues hay un proceso continuo de retroalimentación),
incentiva a los gerentes a mejorar el control de los
riesgos (son los dueños y responsables de los riesgos)
y eventualmente la información de pérdidas servirá
de base para análisis de costo/beneficio de nuevos
controles.
- 27 -
El proceso de gestión de riesgos se encuentra en
distintas etapas de madurez en la región; se espera
lograr un nivel homogéneo entre todos los países
durante 2008.
• Allows for homogenous conceptual treatment of
operating risk for all products regardless of their
differences, providing a basis for setting priorities.
• Promotes efficient and effective use of resources; more
investment allocated to higher risk.
• Improves risk understanding and ownership by
each operating or business unit; allows for prompt
identification of problems (since there is a continuous
feedback process), encourages managers to improve
risk control (they own and are responsible for risks); and
eventually the loss information will serve as a basis for
a cost/benefit analysis of new controls.
Risk management is at various stages of implementation
throughout the region; we expect to achieve
homogeneous implementation in all countries during
2008.
Consolidated Financial Statements
- 28 -
BAC INTERNATIONAL BANK, INC. AND SUBSIDIARIES
(Panama, Republic of Panama)
Table of Contents
Independent Auditors’ Report
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Changes in Stockholder’s Equity
Consolidated Statements of Cash Flows
Notes to the Consolidated Financial Statements
- 29 -
- 30 -
Consolidated Balance Sheets
December 31, 2007 and 2006
2007
2006
Assets
Cash and cash equivalents
Interest-bearing deposits
Trading securities
Securities available for sale
Securities held to maturity
US$ 1,196,468,020
21,394,356
27,347,792
245,011,560
19,155,737
841,332,455
33,632,579
3,702,712
292,699,040
4,983,517
4,673,544,697
2,884,115,612
127,780,918
25,077,546
4,520,686,233
69,808,464
18,495,810
2,795,811,338
161,575,891
4,169,090
3,079,401
30,606,130
82,727,523
78,495,109
11,678,380
104,391,056
US$ 6,506,786,278
127,819,464
2,609,249
3,283,491
16,986,255
74,679,132
2,632,748
0
39,596,353
4,239,768,333
US$
269,093,936
1,403,764,589
721,954,588
1,798,706,950
4,193,520,063
219,553,037
1,081,297,077
303,427,161
1,233,272,255
2,837,549,530
49,201,840
1,123,103,587
213,476,324
3,079,401
25,321,475
257,209,722
5,864,912,412
35,863,334
546,710,873
130,288,780
3,283,491
21,699,499
181,698,085
3,757,093,592
30,709,232
21,311,147
78,947,000
34,618,254
553,098,814
(55,499,434)
611,164,634
US$ 6,506,786,278
78,947,000
34,618,254
407,435,135
(59,636,795)
461,363,594
4,239,768,333
Loans
Less:
Allowance for loan losses
Unearned income and deferred loan fees and costs
Loans, net
Property and equipment, net
Investments in unconsolidated entities
Customers’ liability under acceptances outstanding
Accrued interest receivable
Other accounts receivable
Goodwill
Intangible assets
Other assets
Total assets
Liabilities and Stockholder’s Equity
Deposits:
Demand non-interest-bearing
Demand interest-bearing
Savings
Time deposits
Total deposits
- 31 -
Securities sold under agreements to repurchase
Borrowings
Other borrowed funds
Acceptances outstanding
Accrued interest payable
Other liabilities
Total liabilities
Minority interest
Stockholder’s equity:
Common stock, US $1,000 par value. Authorized 100,000 shares;
78,947 shares issued and outstanding
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss
Total stockholder’s equity
Total liabilities and stockholder’s equity
See accompanying notes to consolidated financial statements.
Consolidated Statements of Income
Years ended December 31, 2007 and 2006
Interest income:
Loans
Trading securities
Securities held to maturity
Total interest income
US$
2006
546,400,985
22,671,695
592,488
17,899,055
385,017
587,949,240
393,580,923
14,341,824
263,478
22,416,197
507,475
431,109,897
Interest expense:
Deposits
Securities sold under agreements to repurchase
Borrowings and other borrowed funds
Total interest expense
Net interest income before provision for loan losses
Provision for loan losses
Net interest income after provision for loan losses
129,866,944
3,332,307
66,560,602
199,759,853
388,189,387
88,764,845
299,424,542
92,766,185
3,822,213
42,769,994
139,358,392
291,751,505
53,738,816
238,012,689
Other income (expenses):
Service charges
Commissions and other fees, net
Foreign currency gains, net
Net gain on trading securities
Net gain on sale of securities available for sale
Gain on other investments
Other income
Total other income
146,916,928
78,490,920
21,682,106
394,619
12,238,704
32,510,635
22,677,772
314,911,684
100,692,601
72,186,048
20,857,905
149,838
6,636,455
0
18,211,564
218,734,411
162,430,805
26,162,043
21,775,112
25,318,384
149,659,766
385,346,110
126,589,118
22,333,749
17,532,109
18,391,148
114,001,923
298,848,047
228,990,116
157,899,053
35,914,587
193,075,529
30,419,779
127,479,274
9,411,850
183,663,679
5,410,919
122,068,355
Operating expenses:
Salaries and employee benefits
Depreciation and amortization
Administrative expenses
Occupancy and related expenses
Other operating expenses
Total operating expenses
Income before income tax expense
and minority interest
Income tax expense
Income before minority interest
Minority interest
Net income
US$
2007
- 32 -
Consolidated Statements of Changes in Stockholder’s Equity
Balance as of December 31, 2005
US$
Dividends
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Total
Stockholder’s
Equity
Common
Stock
Additional
Paid-in
Capital
78,947,000
34,618,254
321,941,7800
( 53,676,173 )
381,830,8610
0
0
( 36,575,000 )
00
( 36,575,000 )
0
0
122,068,3550
00
122,068,3550
0
0
00
( 6,953,417 )
( 6,953,417 )
0
0
00
992,7950
Comprehensive income:
Net income
Other comprehensive income (loss):
Foreign currency translation
Changes in unrealized gain on
securities available for sale, net of tax
Comprehensive income
992,7950
116,107,7330
Dividends
78,947,000
34,618,254
407,435,1350
( 59,636,795 )
461,363,5940
0
0
( 38,000,000 )
00
( 38,000,000 )
0
0
183,663,6790
00
183,663,6790
0
0
00
3,918,6370
3,918,6370
0
0
00
218,7240
218,7240
78,947,000
34,618,254
553,098,8140
( 55,499,434 )
Comprehensive income:
Net income
Other comprehensive income (loss):
Changes in unrealized gain on
securities available for sale, net of tax
Comprehensive income
187,801,0400
US$
- 33 -
611,164,6340
2007
2006
183,663,6790
122,068,3550
88,764,8450
240,3290
( 66,408 )
( 4,136,939 )
26,162,0430
(5,308,958 )
67,8010
( 4,839,560 )
( 12,633,323 )
( 32,510,635 )
72,2720
( 8,264,567 )
( 312,694 )
9,411,8500
( 6,838,935 )
( 5,169,021 )
( 30,544,301 )
293,2190
62,796,5800
260,847,2770
53,738,8160
215,1690
( 141,949 )
480,2480
22,333,7490
( 9,505,876 )
407,9080
1,471,9960
( 6,786,293 )
00
( 796,525 )
3,291,0830
( 463,157 )
5,410,9190
( 4,532,386 )
( 16,362,505 )
( 11,796,765 )
6,188,0150
59,584,0480
224,804,8500
Cash flows from investing activities:
Net decrease (increase) in deposits placed with original maturity over 90 days
Proceeds from sale of securities available for sale
Maturities, prepayment and calls of securities available for sale
Purchases of securities available for sale
Maturities, prepayment and calls of securities held to maturity
Purchases of securities held to maturity
Dividends received from unconsolidated entities, net of advances
Net increase in loans
Purchases of property and equipment
Proceeds from sale of property and equipment
Cash paid in purchase of businesses, net of cash received
Net cash used in investing activities
20,528,0710
129,528,6240
450,993,0230
( 510,942,923 )
183,8350
( 9,814,396 )
190,5250
( 1,198,297,446 )
( 36,044,691 )
516,2840
( 4,688,303 )
( 1,157,847,397 )
( 14,804,202 )
142,753,9020
302,441,2450
( 409,216,391 )
973,2700
( 35,465 )
254,0330
( 779,818,110 )
( 34,957,196 )
3,526,7340
00
( 788,882,180 )
Cash flows from financing activities:
Net proceeds from deposits received
Net proceeds from other borrowed funds
Net (decrease) increase in securities sold under agreements to repurchase
Proceeds from borrowings
Repayment of borrowings
Distributions to minority interest
Dividends paid
Net cash provided by financing activities
799,111,4980
76,242,6930
( 7,375,631 )
3,222,503,7730
( 2,806,165,377 )
( 17,600 )
( 38,000,000 )
1,246,299,3560
599,240,1620
18,636,8240
25,967,9390
1,301,407,4190
( 1,156,452,708 )
( 20,222 )
( 36,575,000 )
752,204,4140
5,836,3290
( 17,339,891 )
170,787,1930
670,545,2620
841,332,4550
Cash flows from operating activities:
Net income
Adjustments to reconcile net income to net cash
provided by operating activities
Net loss on impairment loss on foreclosed assets
Release of provision for unfunded committments
(Release) provision for claims receivable for unreturned securities
Depreciation and amortization
Amortization of deferred loans fees and costs
Loss on derivative financial instruments
Net (increase) decrease in trading securities
Net gain on sale of securities
Net loss (gain) on sale of property and equipment
Deferred taxes
Equity participation in unconsolidated entities
Minority interest
Increase in accrued interest receivable
Increase in other accounts receivable
Increase in other assets
Increase in accrued interest payable
Increase in other liabilities
Net cash provided by operating activities
US$
Effect of exchange rate fluctuations on cash held
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of year
US$
355,135,5650
841,332,4550
1,196,468,0200
Supplemental disclosures of cash flow information
Cash paid for interest during the year
Cash paid for income taxes during the year
US$
US$
196,137,8770
38,762,8910
133,484,5620
24,596,3350
Supplemental schedule of noncash investing and financing activities
Changes in unrealized gain (loss) on securities available for sale, net of tax
Properties acquired in settlement of loans
US$
US$
US$
218,7240
32,510,6350
4,650,6230
992,7950
00
3,342,4260
US$
939,582,5140
( 194,349,103 )
745,233,4110
00
00
00
In conjunction with the acquisitions, liabilities assumed were as follows
Fair value of assets acquired
Cash paid
Liabilities assumed
US$
Consolidated Statements of Cash Flows
- 34 -
Notes to Consolidated Financial Statements
December 31, 2007 and 2006
(1) Organization
BAC International Bank, Inc. was incorporated on August 25, 1995, in Panama City, Republic of
Panama, as a banking institution. BAC International Bank, Inc. is a 100% owned subsidiary of BAC
International Corporation (the “Parent Company”, which is an indirect subsidiary of BAC Credomatic
Holding Company, Ltd.) and provides, directly and through its wholly owned subsidiaries, BAC
International Bank (Grand Cayman) (“BAC Cayman”), Credomatic International Corporation
(CIC), Premier Asset Management, Inc., Rudas Hill Financial, Inc., BAC Valores (Panama), S. A. and
BAC Leasing, Inc. (collectively the “Bank”), a wide variety of financial services to individuals and
institutions, principally in Mexico, Guatemala, Honduras, El Salvador, Nicaragua, Costa Rica and
Panama. Credit card operations are carried out through CIC and its subsidiaries.
The banking operations in Panama are subject to regulatory requirements of the Superintendency
of Banks of the Republic of Panama, pursuant to decree No.9 of February 26, 1998 and other
regulatory standards.
These consolidated financial statements are denominated in U.S. dollars.
(2) Summary of Significant Accounting Policies
The accounting and reporting policies of the Bank and its subsidiaries are in accordance with
U.S. generally accepted accounting principles (“US GAAP”) and they conform to general practices
within the industry. The following is a description of significant policies and practices:
(a) Principles of Consolidation
These consolidated financial statements include the accounts of BAC International Bank, Inc.
and all majority owned subsidiaries. In consolidation all significant intercompany accounts and
transactions are eliminated. Investments in companies in which the percentage of ownership is
at least 20%, but not more than 50%, are accounted for under the equity method and the pro rata
share of their income (loss) is included in other income. Investments in companies with less than
20% ownership are accounted for under the cost method; income is recognized when dividends
are received.
(b) Use of Estimates
Management has made a number of estimates and assumptions relating to the reporting of assets
and liabilities and the disclosure of contingent assets and liabilities to prepare these consolidated
financial statements in conformity with U.S. generally accepted accounting principles. Actual
results could differ from those estimates.
- 35 -
(c) Cash and Cash Equivalents
Cash and cash equivalents include cash, due from banks, certain securities, and term interestbearing deposits with original maturities of three months or less.
(d) Securities Purchased and Sold Agreements
Securities purchased under resale agreements and securities sold under repurchase agreements
are generally accounted for as collateralized financing transactions and are recorded at the amount
at which the securities were acquired or sold plus accrued interest. It is the Bank’s policy to take
possession of securities purchased under resale agreements. The Bank monitors the market value
of securities purchased and sold and obtains collateral from or returns it to counterparties when
appropriate.
(e) Securities
Securities that are held principally for resale in the near term are classified as trading securities
and recorded at fair value with changes in fair value recorded in earnings. Debt securities that
management has the positive intent and ability to hold to maturity are classified as held to
maturity and recorded at amortized cost. All other securities are classified as available for sale and
recorded at fair value. Unrealized holding gains and losses, net of the related tax effect, if any, on
available-for-sale securities are reported as a component of accumulated other comprehensive
income (loss).
Realized gains and losses from the sale of securities are recorded on a trade-date basis and
determined on a specific identification basis. Realized gains and losses are included in other
income as securities gains (losses) in the consolidated statement of income.
Premiums and discounts are recognized as an adjustment to yield over the contractual term of
the security using a method that approximates the interest method. If a prepayment occurs on a
security, any related premium or discount is recognized as an adjustment to yield in the period in
which the prepayment occurs. Interest on securities is recognized in interest income on an accrual
basis.
The Bank makes an assessment to determine whether there have been any events or economic
circumstances to indicate that a security on which there is an unrealized loss is impaired on
another-than-temporary basis. The Bank considers many factors including the severity and
duration of the impairment; the intent and ability of the Bank to hold the security for a period
of time sufficient for a recovery in value; recent events specific to the issuer or industry; and for
debt securities, external credit ratings and recent downgrades. Securities on which there is an
unrealized loss that is deemed to be other than-temporary are written down to fair value with the
write-down recorded as a realized loss in securities gains (losses).
(f) Loans Held for Sale
Loans originated and intended for sale in the secondary market are carried at lower of cost or
estimated market value in the aggregate. Net unrealized losses, if any, are recognized through a
valuation allowance by charges to income.
A loan is considered to be impaired when based on current information, it is probable the Bank
will not receive all amounts due in accordance with the contractual terms of a loan agreement.
The fair value is measured based on either the present value of expected future cash flows
discounted at the loan’s effective interest rate, the loan’s observable market price or the fair value
of the collateral if the loan is collateral dependent. A loan is also considered impaired if its terms
are modified in a troubled debt restructuring. When the ultimate collectibility of the principal
balance of an impaired loan is in doubt, all cash receipts are applied to principal. Once the recorded
principal balance has been reduced to zero, future cash receipts are recorded as recoveries of any
amounts previously charged off, and then to interest income to the extent any interest has been
forgone.
Restructured loans are loans for which the original contractual terms have been modified to
provide for terms that are less than those the Bank would be willing to accept for new loans with
comparable risk because of deterioration in the borrower’s financial condition. Interest on these
loans is accrued at the renegotiated rates.
(g) Loans
Loans are stated at their outstanding unpaid principal balances adjusted for unearned income,
when applicable. Interest income on loans is recognized on an accrual basis. Loan origination fees
and direct costs as well as premiums and discounts are amortized as an adjustment to yield over
the term of the loan. Loans include direct financing leases that are recorded at the aggregate of
future lease payments receivable plus the estimated residual value of the leased property, less
unearned income.
- 36 -
The Bank’s policy is to discontinue accrual of interest either when reasonable doubt exists as to
the full, timely collection of interest or principal, or when a loan becomes 90 days or more past
due as to principal or interest. Credit card receivables that become 120 days past due or assigned
to legal status are placed on non accrual status. The accrued and unpaid interest is reversed
against interest income and, thereafter, the loan is accounted for on the cash method until it
qualifies for return to accrual. When borrowers demonstrate over an extended period the ability
to repay a loan in accordance with the contractual terms of a loan classified as non accrual, the
loan is returned to accrual status. The Bank charges off loans when collectibility of principal is
not probable.
(h) Allowance for Loan Losses and Reserve for Unfunded Lending Commitments
The allowance for loan losses and reserve for unfunded lending commitments represent the
amounts, which, in management’s judgment, will be adequate to absorb inherent losses of
the existing loan portfolio and unfunded commercial lending commitments, respectively, at
balance sheet date. The Bank has developed policies and procedures for assessing the adequacy
of the allowance for loan losses and reserve for unfunded lending commitments that reflect
the assessment of credit risk considering all available information. Where appropriate, this
assessment includes monitoring qualitative and quantitative trends including changes in the
levels of past due, criticized and nonperforming loans. In developing this assessment, the Bank
must rely on estimates and exercise judgment in assessing credit risk. Depending on changes
in circumstances, future assessments of credit risk may yield materially different results from
the estimates, which may require an increase or a decrease in the allowance for loan losses or
reserve for unfunded lending commitments. Additions to the allowance for loan losses are based
on several factors which include, but are not limited to, analytical review of loan loss experience
in relation to outstanding loans, a continuing review of problem or non performing loans, overall
portfolio quality and adequacy of collateral, results of regulatory examinations, evaluation of
independent appraisals, and management’s judgment with respect to the impact of current
economic conditions on the existing loan portfolio.
- 37 -
The allowance on certain homogeneous loan portfolios is based on aggregated portfolio segment
evaluations generally by product type. Loss forecast models are utilized for these segments which
consider a variety of factors including, but not limited to, historical loss experience, estimated
defaults or foreclosures based on portfolio trends, delinquencies, economic conditions and
credit scores. The consumer loss forecast models are updated at least on a quarterly basis in
order to incorporate information reflective of the current economic environment. The remaining
commercial portfolios are reviewed on an individual loan basis. Loans subject to individual
reviews are analyzed and segregated by risk according to the Bank’s internal risk rating scale.
These risk classifications, in conjunction with an analysis of current economic conditions, industry
performance trends, and any other pertinent information (including individual valuations on
nonperforming loans in accordance with SFAS No. 114, “Accounting by Creditors for Impairment
of a Loan” (SFAS 114)) result in the estimation of the allowance for loan losses. The historical loss
experience is updated at least quarterly to incorporate the most recent data reflective of the
current economic environment.
In addition to the allowance for loan losses, the Bank also estimates probable losses related to
unfunded lending commitments, such as letters of credit and financial guarantees, and binding
unfunded loan commitments. Unfunded lending commitments are subject to individual reviews
and are analyzed and segregated by risk according to the Bank’s internal risk rating scale. These
risk classifications, in conjunction with an analysis of current economic conditions, performance
trends and any other pertinent information, result in the estimation of the reserve for unfunded
lending commitments.
The allowance for loan losses related to the loan portfolio, and the reserve for unfunded lending
commitments are reported on the consolidated balance sheets in the allowance for loan losses,
and other liabilities, respectively. Provision for loan losses related to the loan portfolio and
unfunded lending commitments are reported in the consolidated statement of income in the
provision for loan losses and other operating expenses, respectively.
(i) Foreclosed Assets
Assets acquired through, or in lieu of, loans foreclosure are held for sale and are initially recorded
at the lower of its cost or fair value less costs to sell at the date of foreclosure, establishing a new
cost basis. Subsequent to foreclosure, valuations are periodically performed by management and
the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and
expenses from operations and changes in the valuation allowance of those assets are included in
other operating expenses.
(j) Transfer of Financial Assets
Transfers of financial assets are accounted for as sales, when control over the assets has been
surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have
been isolated from the Bank, (2) the transferee obtains the right (free of conditions that constrain
it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the
Bank does not maintain effective control over the transferred assets through an agreement to
repurchase them before maturity.
When the Bank sells receivables in securitizations of loans, it might retain servicing rights, and
in some cases residual values and cash reserve accounts, all of which are retained interests in
the securitized loans. Gain or loss on sale of the loans depends in part on the previous carrying
amount of the financial assets involved in the transfer, allocated between the assets sold and
the retained interests based on their relative fair values at the date of transfer. To obtain fair
values, quoted market prices are used if available. However, quotes are generally not available for
retained interests, so the Bank generally estimates fair value based on the present value of future
expected cash flows determined by using management’s best estimates of the key assumptions
- credit losses, prepayment speeds, forward yield curves, and discount rates commensurate with
the risks involved.
Buildings and improvements
Equipment and furniture
Computers
Vehicles
Years
20 – 50
5 –10
3–5
5
Leasehold improvements are amortized in three to five years or the lease term, whichever is
lower.
Expenditures for major renewals and improvements are capitalized. Repairs and maintenance
expenditures are charged to expense as incurred. The cost and accumulated depreciation and
amortization relating to premises and equipment retired or otherwise disposed of are eliminated
from the accounts and any resulting gains or losses are credited or charged to income.
(k) Property and Equipment
Property and equipment are stated at cost less accumulated depreciation and amortization.
Depreciation is computed using the straight-line method over the estimated useful lives of the
respective assets as follows:
- 38 -
(l) Goodwill and Intangible Assets
Goodwill and identified intangible assets with indefinite useful lives are not amortized but
rather tested for impairment annually. This test involves assigning tangible assets and liabilities,
identified intangible assets and goodwill to reporting units and comparing the fair value of each
reporting unit to its carrying amount. If the fair value is less than the carrying amount, a further
test is required to measure the amount of impairment.
Identified intangible assets that have a definite useful life are amortized over that life in a manner
that approximates the estimated decline in the economic value of the identified intangible asset.
Identified intangible assets that have a definite useful life are periodically reviewed to determine
whether there have been any events or circumstances to indicate the recorded amount is not
recoverable from projected undiscounted net operating cash flows. If the projected undiscounted
net operating cash flows are less than the carrying amount, a loss is recognized to reduce the
carrying amount to fair value, and when appropriate, the amortization period is also reduced.
(m) Revenue Recognition
Revenue is recognized when the earnings process is complete and collectibility is assured.
Specifically, brokerage commission fees are recognized in income on a trade date basis. Asset
management fees, measured by assets at a particular date, are accrued as earned. Advisory fees
are recognized when the transaction is complete. Commission expenses are recorded when the
related revenue is recognized. Transaction-related expenses are recognized as incurred.
Credit card annual fees, net of direct lending costs, are deferred and amortized on a straight-line
basis over a one-year term. Merchant’s commission income is determined based on the amount
and type of purchase by the cardholder and is recognized at the time the charges are billed.
The Bank offers rewards programs that allow its cardholders to earn points that can be redeemed
for a broad range of rewards including cash, travel and discounted products. The Bank establishes
a rewards liability based upon the points earned which are expected to be redeemed and the
average cost per point redemption. The points to be redeemed are estimated based on past
redemption behavior, card product type, account transaction activity and other historical card
performance. The liability is reduced as the points are redeemed. The estimated cost of the
rewards programs is recorded as contra-revenue against credit card commissions.
(n) Derivative Financial Instruments
The Bank makes use of derivative financial instruments, primarily as part of its management of
interest rate risks.
- 39 -
Derivative financial instruments such as interest rate swaps and interest rate caps are used to
manage interest rate risk through the exchange of interest payments based on a predetermined
notional principal amount. The underlying principal balances are not affected. Net settlement
amounts are reported in other income.
The Bank carries all derivatives in the consolidated balance sheets at fair value. The accounting
for changes in fair value (i.e. gains or losses) of a derivative depends on whether it has been
designated and qualifies as part of a hedging relationship and, if so, the type of hedge. That is,
the derivative is designated by the Bank as (1) a hedge of the fair value of a recognized asset
or liability or of an unrecognized firm commitment (“fair value” hedge); or (2) a hedge of the
variability of cash flows of a forecasted transaction to be received or paid related to a recognized
asset or liability (“cash flow” hedge); or (3) as a freestanding.
Changes in the fair value of a derivative that has been designated and qualifies as a fair value
hedge, along with the changes in the fair value of the hedged asset or liability that are attributable
to the hedged risk, are included in other income (expense) and recorded as derivative and hedging
activities. Changes in the fair value of a derivative that has been designated and qualifies as a cash
flow hedge are recorded in other comprehensive income (loss) to the extent of its effectiveness,
until earnings are impacted by the variability of cash flows from the hedged item. Changes in
the fair value of derivatives held for trading purposes or those that do not qualify as hedges
(freestanding) are included in other income (expense) and recorded as derivative and hedging
activities.
At the inception of each hedge, when applicable, the Bank documents the relationship between
hedging instruments and hedged items, as well as its risk management objective and strategy
for undertaking the hedge transactions. This process includes linking all derivatives that are
designated as fair value or cash flow hedges to specific assets and liabilities on the consolidated
balance sheets, or to specific firm commitments or forecasted transactions.
(o) Income Tax
The Bank uses the asset and liability method of accounting for income taxes. Under the asset
and liability method, deferred tax assets and liabilities are recognized for the estimated future
tax consequences attributable to differences between the financial statement carrying amounts
of existing assets and liabilities and their respective tax bases and operating loss and tax
carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected
to be applied to taxable income in the years in which those temporary differences are expected to
be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is
recognized in income in the enactment date period. A valuation allowance is recognized when it
is more likely than not that some portion or all of the deferred tax assets will not be realizable.
When the foreign entity’s functional currency is determined to be the U.S. dollar, foreign currency
transactions are recorded at the exchange rate prevailing at the date of the transaction. Assets
and liabilities denominated in foreign currency are re-measured into the functional currency at
the exchange rate prevailing at balance sheet date. Resulting gains and losses on foreign currency
transactions are included within other income in the consolidated statements of income.
(q) Reclassifications
Certain amounts in the 2006 consolidated financial statements have been reclassified to conform
to the 2007 consolidated financial statement presentation.
(3) Business Combinations
The Bank believes the following acquisitions will enhance stockholder value by expanding the
Bank’s range of available products and services and increasing the distribution channels available
to customers.
The Bank acquired 99.9 percent of the outstanding stock of Banco Mercantil, S.A. (BAMER), a
Honduran banking institution, on June 13, 2007. The aggregate purchase price was approximately
US $132,449,000, including a cash payment of approximately US $130,222,000. The acquisition
(p) Foreign Currency
Assets, liabilities and operations of foreign subsidiaries are recorded based on the functional
currency of each entity. For foreign operations, the functional currency is the local currency, in
which case the assets, liabilities and operations are translated, for consolidation purposes, at
period-end rates from the local currency to the reporting currency, the U.S. dollar. The resulting
unrealized gains or losses are reported as a component of accumulated other comprehensive
income (loss).
- 40 -
was accounted for under the purchase method of accounting in accordance with SFAS No. 141,
“Business Combinations”. Accordingly, the results of operations of BAMER’s operations have been
included in the consolidated financial statements since the acquisition date. Certain plans related
to the disposition of assets and the termination of employees are estimates and, when finalized,
may result in adjustments to goodwill.
The total purchase price of approximately US $132,449,000 has been allocated to the assets
acquired and the liabilities assumed based on their fair values at the BAMER purchase date as
summarized in the following table:
June 13,
2007
Assets
Cash and cash equivalents
US$ 189,045,2170
Securities
27,473,2730
Loans, net of unearned income
535,262,2280
( 20,524,886 )
Loans, net
514,737,3420
Property and equipment
21,200,644
Intangible assets
12,610,000
Goodwill
57,961,469
Other assets
20,408,528
Total assets
843,436,4730
Liabilities
Deposits
Borrowings
Other liabilities
Total liabilities
Net assets acquired
532,312,3080
151,292,9640
27,382,615
710,987,8870
US$ 132,448,5860
Of the US$12.6 million of acquired intangibles assets, US $11.0 million was assigned to core deposit
intangible with a weighted-average useful life of approximately 17 years. The intangible assets
that make up the remaining amount include purchased credit card relationships for US$1.4 million
(10-year weighted average useful life), and other assets of US $0.2 million (1-year useful life). None
of the intangible assets are tax deductible. Goodwill of US $57.9 million is not deductible for tax
purposes.
- 41 -
During 2007, the Bank acquired the following two entities for a total cost of approximately
US$64.1 million, which was paid in cash:
• Corporacion Financiera Miravalles S. A., based in Costa Rica, a financial group that offered
primarily consumer loans.
• Fundacion Salvadoreña para el Desarrollo Economico y Social, based in El Salvador, a
financial group that offered primarily small business loans.
Goodwill preliminary recognized in those transactions amounted to approximately US $17,882,000
and approximately US $10,163,000 is expected to be deductible for tax purposes.
(4) Cash and Due from Banks, and Pledged Interest-Bearing Deposits
At December 31, 2007 and 2006, cash and due from banks aggregating US $743,890,147 and
US $439,246,995, respectively, are placed at Central Banks in Central American countries to cover
legal liquidity reserve requirements.
At December 31, 2007 and 2006, interest-bearing deposits amounting to US $14,215,955 and
US $22,681,029, respectively, are placed as legal liquidity or to guarantee borrowings and other
credit facilities.
(5) Trading Securities
At December 31, 2007 and 2006, trading securities consist of government bonds amounting to
US $27,347,792 and US $3,702,712, respectively.
Net gains on security trading activities included in earnings for the years ended December 31, 2007
and 2006 amount to US $394,619 and US $149,838, respectively, including unrealized holding
gains on trading securities for US $62,587 and US $23,051, respectively.
At December 31, 2007 and 2006, securities with a carrying value of US $16,541,128 and US $0,
respectively, were pledged to secure repurchase agreements.
(6) Securities Available for Sale
The amortized cost, gross unrealized holding gains, gross unrealized holding losses and fair value
of securities available for sale as of December 31, 2007 and 2006 is as follows:
2007
Government bonds and agency securities
Corporate debentures
Mortgage-backed securities
Retained interests on securitization
Mutual funds
Other securities
Amortized
Cost
Gross
Unrealized
Holding
Gains
US$ 205,251,927
15,924,228
5,845,319
4,572,409
12,390,838
20,197
US$ 244,004,918
1,604,677
186,674
253,566
0
0
14,596
2,059,513
Gross
Unrealized
Holding
Losses
Fair
Value
(347,946) 206,508,658
(182,995) 15,927,907
0
6,098,885
0
4,572,409
(521,930) 11,868,908
0
34,793
(1,052,871) 245,011,560
Government bonds and agency securities
Mortgage-backed securities
Retained interests on securitization
Mutual funds
Others securities
Amortized
Cost
Gross
Unrealized
Holding
Gains
Gross
Unrealized
Holding
Losses
US$ 261,623,510
5,099,143
5,798,988
4,572,409
14,499,073
19,397
US$ 291,612,520
1,721,276
2,985
216,524
0
19,730
10,609
1,971,124
(307,538) 263,037,248
(352,443)
4,749,685
0
6,015,512
0
4,572,409
(224,623) 14,294,180
0
30,006
(884,604) 292,699,040
Fair
Value
2006
- 42 -
A summary of securities available for sale as of December 31, 2007 and 2006 by contractual maturity
is presented below. Expected maturities will differ from contractual maturities because issuers
may have the right to call or prepay obligations with or without call or prepayment penalties.
2006
2007
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Government bonds and agency securities:
Due within one year
US$
43,920,603
43,931,318
102,891,594
102,924,015
Due after one year but within five years
65,740,662
65,886,602
110,782,485
111,677,511
Due after five years but within ten years
59,566,113
59,970,529
36,079,607
36,433,652
Due after ten years
36,024,549
36,720,209
11,869,824
12,002,070
205,251,927 206,508,658
261,623,510
263,037,248
Corporate debentures:
Due within one year
0
0
1,045,502
1,043,811
8,253,557
8,246,583
4,053,641
3,705,874
7,670,671
7,681,324
15,924,228
15,927,907
5,099,143
4,749,685
5,845,319
6,098,885
5,798,988
6,015,512
4,572,409
4,572,409
4,572,409
4,572,409
12,390,838
11,868,908
14,499,073
14,294,180
20,197
34,793
19,397
30,006
US$ 244,004,918 245,011,560
291,612,520
292,699,040
0
0
Mortgage-backed securities:
Due after ten years
Retained interests on securitization of mortgages:
Due after ten years
Mutual funds:
Without maturity
Other:
- 43 -
Without maturity
At December 31, 2007 and 2006, securities with a carrying value of US $42,935,635 and
US $46,662,186, respectively, were pledged to secure borrowings and repurchase agreements.
For the years ended December 31, 2007 and 2006, proceeds from sale of securities available for sale
amounted to US $129,528,624 and US $142,753,902, respectively. Gross realized gains amounted to
US $12,430,373 and US $6,937,646 for 2007 and 2006, respectively. Gross realized losses amounted
to US $191,669 and US $301,191 for 2007 and 2006, respectively.
Gross unrealized losses on securities available for sale and the fair value of the related securities,
aggregated by category and length of time the individual security has been in the continuous
unrealized loss position at December 31, 2007 and 2006, were as follows:
2007
12 Months or less
Fair
Unrealized
Value
Losses
Government and agency securities
US$
24,529,848
More than 12 Months
Fair
Unrealized
Value
Losses
Fair
Value
Total
Unrealized
Losses
(296,247)
21,319,985
(51,699)
45,849,833
(347,946)
5,362,928
(9,595)
4,411,650
(173,400)
9,774,578
(182,995)
Mutual funds
8,752,374
(497,626)
544,011
(24,304)
9,296,385
(521,930)
38,645,150
(803,468)
26,275,646
(249,403)
Total
US$
64,920,796 (1,052,871)
2006
12 Months or less
Fair
Unrealized
Value
Losses
Government and agency securities
US$
Mutual funds
Total
US$
More than 12 Months
Fair
Unrealized
Value
Losses
Fair
Value
Total
Unrealized
Losses
61,198,113
(130,568)
26,940,075
(176,970)
88,138,188
(307,538)
998,157
(1,843)
1,649,400
(350,600)
2,647,557
(352,443)
0
0
9,775,377
(224,623)
9,775,377
(224,623)
62,196,270
(132,411)
38,364,852
(752,193)
100,561,122
(884,604)
The unrealized losses on investments are caused by interest rate increases. The decline in fair
value is mainly attributable to changes in interest rates and not credit quality, and the Bank
has the intent and ability to hold those investments until a market price recovery or maturity;
therefore, these investments are not considered other-than-temporarily impaired.
(7) Securities Held to Maturity
The amortized cost and fair value of securities held to maturity as of December 31, 2007 and 2006
is a follows:
Amortized
Cost
Government bonds
US$
US$
Fair
Value
Amortized
Cost
Fair
Value
14,167,646
14,308,202
0
0
4,988,091
4,689,800
4,983,517
4,294,800
19,155,737
18,998,002
4,983,517
4,294,800
As of December 31, 2007 and 2006 the gross unrealized losses amount to US $157,735 and
US $688,717, respectively; most of the securities have been on a continuous unrealized loss
position for more than 12 months. Management considers the unrealized losses to be attributable
to increase in interest rates and not due to decline in the credit quality of the issuers. Therefore,
these securities are not considered to be other–than–temporarily impaired.
2006
2007
- 44 -
A summary of securities held to maturity as of December 31, 2007 and 2006, by contractual
maturity, is presented below. Expected maturities would differ from contractual maturities
because issuers may have the right to call or prepay obligations with or without call or prepayment
penalties.
2006
2007
Fair
Value
Amortized
Cost
Amortized
Cost
Fair
Value
Government bonds:
US$
4,912,204
5,052,760
0
0
16,567
16,567
0
0
9,238,875
9,238,875
0
0
14,167,646
14,308,202
0
0
2,988,091
2,863,200
2,983,517
2,645,400
2,000,000
1,826,600
2,000,000
1,649,400
4,988,091
4,689,800
24,983,517
4,294,800
19,155,737
18,998,002
4,983,517
4,294,800
Due after ten years
Corporate debentures:
US$
(8) Loans
The composition of loans as December 31, 2007 and 2006 is as follows:
2007
Commercial, financial and industrial
- 45 -
2006
US$ 1,398,760,868
747,423,213
Real estate – residential and for construction
1,066,118,678
593,683,304
Credit card
1,187,112,013
925,962,792
Vehicles financing
342,244,325
240,812,061
Other personal
324,587,294
192,111,839
Cash collateralized (back to back)
137,242,463
119,274,319
Leasing
178,629,276
48,393,028
38,849,780
16,455,056
4,673,544,697
2,884,115,612
Overdrafts
US$
At December 31, 2007 and 2006, the Bank had loans for US $283,868,587 and US $122,138,194,
respectively, pledged to secure borrowings and other credit facilities.
At December 31, 2007 and 2006, the Bank’s non-accrual and restructured loans, including
impaired loans, amounted to US $84,629,438 and US $40,994,109, respectively. At December
31, 2007 and 2006, the Bank has no commitments to lend additional funds to borrowers whose
loans are classified as non-accruing.
Other real estate owned assets included in other assets amounted to US $11,774,980 and
US $7,479,433 at December 31, 2007 and 2006, respectively.
The following is a summary of information pertaining to impaired loans:
2007
2006
Impaired loans, all with a valuation allowance
US$
23,658,065
10,239,784
Valuation allowance
US$
9,108,564
4,910,335
Average recorded investment
US$
22,116,873
16,228,268
Interest income recognized on a cash basis
US$
2,368,526
1,345,966
The Bank has no commitments to lend additional funds to borrowers whose loans are impaired.
(9) Allowance for Loan Losses
The changes in the allowance for loan losses during the years ended December 31, 2007 and 2006
are presented below:
Balance, beginning of year
US$ 69,808,464
88,764,845
Balance from acquired entities at purchase date
26,295,681
Charge-offs
(75,080,817)
Recoveries
16,866,651
1,126,094
Balance, end of year
US$ 127,780,918
2006
52,546,837
53,738,816
0
(48,999,468)
13,051,538
(529,259)
69,808,464
2007
- 46 -
(10) Property and Equipment
Property and equipment as of December 31, 2007 and 2006 are detailed as follows:
2007
Land
Buildings and improvements
Equipment, furniture and vehicles
Constructions in progress
2006
US$
19,737,308
68,169,623
182,465,148
5,135,309
275,507,388
Less: accumulated depreciation and amortization
(113,931,497)
US$ 161,575,891
13,051,713
52,419,868
153,278,501
1,497,325
220,247,407
(92,427,943)
127,819,464
(11) Goodwill and Intangible Assets
The changes in the carrying amount of goodwill for the years ended December 31, 2007 and 2006,
are as follows:
Goodwill:
Balance, beginning of the year
Goodwill acquired during the year
Foreign exchange
Balance, end of the year
US$
US$
2007
2006
2,632,748
75,843,596
18,765
78,495,109
2,632,748
0
0
2,632,748
The gross carrying amount and accumulated amortization for each of the Bank’s identified
intangible assets subject to amortization at December 31, 2007 and 2006, are presented below:
2007
Gross
Carrying
Amount
- 47 -
Core deposit intangible
Purchased credit card relationships
Trade name
US$
US$
Accumulated
Amortization
10,980,000
1,400,000
230,000
12,610,000
787,220
29,400
115,000
931,620
Amortization expense related to identified intangible assets for the year ended December 31,
2007, is presented below:
2007
Core deposit intangible
Purchased credit card relationships
Trade name
US$
US$
787,220
29,400
115,000
931,620
Amortization expense related to identified intangible assets in each of the five years subsequent
to December 31, 2007, is as follows: 2008: US $1,667,970, 2009: US $1,366,000, 2010: US $1,215,720,
2011: US $1,072,550, 2012 and thereafter: US $6,356,140.
(12) Deposits
As of December 31, 2007 and 2006, the Bank held US $1,471,108,452 and US $1,014,318,975
respectively, of time deposits with principal balances of US $100,000 and over.
Scheduled maturities of time deposits at December 31, 2007 are as follows:
Year ending December 31,
2008
2009
2010
2011
2012
Thereafter
US$
US$
1,706,066,328
70,789,573
9,048,509
6,592,040
4,581,735
1,628,765
1,798,706,950
(13) Securities Sold under Agreements to Repurchase
The following table summarizes certain information on securities sold under agreements to
repurchase at or for the years ended December 31, 2007 and 2006:
2006
Carrying amount at end of year
US$ 49,201,840
35,863,334
Maximum amount outstanding at any month end
US$ 49,201,840
49,925,024
Average amount outstanding during the year
US$ 40,503,923
38,094,779
Weighted average interest rate for the year
7.63%
7.76%
Weighted average interest rate at end of year
7.69%
6.59%
2007
- 48 -
(14) Borrowings
Borrowings at December 31, 2007 and 2006 consist of the following:
Interest
Rate
Payable in U.S. dollars (United States
of America):
Fixed rate
Floating rate
2025
2017
9.50%
2010
88,955,733
7.25% to 8.50%
2008
40,140,028
18.00% to 24.00%
5.00% to 15.00%
2008
2037
206,907
51,061,610
Payable in Cordobas (Nicaragua):
Fixed rate
5.00% to 6.53%
2019
852,389
Payable in Colones (Costa Rica):
Fixed rate
Floating rate
9.00%
5.60% to 8.00%
2008
2010
1,735,797
43,661,208
US$ 1,123,103,587
Payable in Quetzals (Guatemala):
Floating rate
Payable in Lempiras (Honduras):
Fixed rate
Floating rate
US$
85,720,798
810,769,117
Interest
Rate
2006
Maturity
Various Through
3.23% to 10.75%
3.25% to 13.50%
2025
2016
7.84% to 8.88%
2007
53,256,534
Payable in Quetzals (Guatemala):
Floating rate
6.50% to 10.00%
2007
28,349,501
Payable in Lempiras (Honduras):
Floating rate
7.00% to 15.00%
2034
2,306,381
Payable in Cordobas (Nicaragua):
Fixed rate
5.00% to 6.53%
2019
973,690
17.00%
9.00% to 15.25%
2007
2010
1,445,857
15,626,773
546,710,873
Payable in U. S. dollars (United States
of America):
Fixed rate
Floating rate
Carrying
Amount
3.23% to 18.00%
3.75% to 13.25%
Payable in Mexican Pesos (Mexico):
Floating rate
- 49 -
2007
Maturity
Various Through
Payable in Mexican Pesos (Mexico):
Floating rate
Payable in Colones (Costa Rica):
Fixed rate
Floating rate
Carrying
Amount
US$
US$
96,823,062
347,929,075
On December 16, 2002, the Bank, through a consolidated special purpose entity, issued
US $50,000,000 under its US $125 million CIC floating–rate trust certificates series 2002–A,
due January 8, 2010. On November 23, 2005 the Bank amended the original program and issued
additional certificates for US $275 million which increased the total amount under the program
to US $400 million due December 31, 2012. In May 2007, through another amendment, the final
maturity was extended to April 5, 2017. As of December 31, 2007 and 2006, the amount outstanding
under this program aggregated US $288,504,812 and US $74,504,812, respectively. The certificates
are issued and managed by CIC Receivables Master Trust for the benefit of the certificate holders.
The Master Trust currently holds a ‘AAA’ rating from Standard & Poor’s Rating Services. Such
certificates are secured in first degree by future cash flows originating in Guatemala, Honduras,
El Salvador, Nicaragua and Costa Rica from merchant vouchers and by a financial guarantee
insurance policy provided by Ambac Assurance Corp. (an insurance company holding a ‘AAA’
financial strength rating from Standard & Poor’s) which guarantees timely payment of certificate
interest and principal when due. The merchant vouchers are those to be generated by holders of
credit cards issued by third-party international financial institutions, under Visa and MasterCard
Credit Card Programs which are being serviced by the Bank. The certificates pay interest quarterly
the fifth day of each January, April, July and October at a rate of three-month U. S. dollar LIBOR
plus a margin (6.63% and 7.38%, including surety premiums, at December 31, 2007 and 2006,
respectively). Principal amortization amounts will be paid to certificates holders beginning in April
2010. The certificates had an original duration of 4.68 years. At December 31, 2007, the certificates
currently have a weighted average duration of 6.1355 years (as amended).
At December 31, 2007 and 2006, secured borrowings amounted to US $601,758,968 and
US $225,499,721, respectively, including the amount outstanding under the CIC Receivables
Master Trust.
As of December 31, 2007, secured borrowings include a lease financing arrangement for acquisition
of an aircraft. The lease, with an aggregate outstanding balance of US $6,500,364, calls for
monthly advance installments of US $91,616, including interest, to be paid through January 1,
2015.
At December 31, 2007, the Bank had approximately US $559,325,297 available in unused lines of
credit that expire through 2012, including the unfunded portion of the CIC Receivables Master
Trust of US $111,495,188.
Scheduled maturities of borrowings at December 31, 2007, are as follows:
2008
US$
314,856,608
2009
236,457,813
2010
197,099,542
2011
84,602,107
2012
61,763,547
Thereafter
228,323,970
US$
1,123,103,587
- 50 -
(15) Other Borrowed Funds
Carrying amount of other borrowed funds at December 31, 2007 and 2006 consist of certificates
of indebtedness registered at and negotiable through the corresponding local stock exchanges
in Guatemala, El Salvador and Costa Rica, at fixed and variable interest rates, and is detailed as
follows:
Payable in:
Interest Rate
2007
2006
US dollars
5.10% to 8.24%
69,888,577
48,641,426
Quetzals
7.02% to 8.69%
52,973,486
52,036,150
Colones
5.71% to 9.25%
90,614,261
29,611,204
US$
US$ 213,476,324 130,288,780
Scheduled maturities of other borrowed funds at December 31, 2007 are as follows:
2008
US$
106,214,984
2009
19,230,517
2010
42,979,303
2011
8,500,000
2012
36,551,520
US$
213,476,324
At December 31, 2007 and 2006, the Bank had loans receivable for US $84,570,469 and
US $59,285,100, respectively, pledged to secure these other borrowed funds.
(16) Other Operating Expenses
The following table sets forth the components of other operating expenses for the years ended
December 31, 2007 and 2006:
- 51 -
Advertising
US$
Communications
Office supplies
Maintenance
Credit card franchise and authorization fees
Taxes other than income tax
Processing fees
Deposit insurance
Security
Armored services
Travel expenses
Provision for claims receivable
for unreturned securities
Other
US$
2007
2006
22,045,269
16,242,070
7,887,697
14,363,588
13,633,411
8,371,903
4,911,921
2,876,044
4,052,779
4,218,177
5,220,973
15,235,198
11,815,940
6,782,908
11,809,586
11,553,285
6,136,373
3,189,416
1,824,967
3,002,483
3,347,927
4,174,314
0
1,562,337
45,835,934 33,567,189
149,659,766 114,001,923
(17) Income Taxes
Income tax expense consists of:
2007
Current
Deferred
US$ 44,179,154
(8,264,567)
US$ 35,914,587
2006
27,128,696
3,291,083
30,419,779
Income tax expense was US $35,914,587 and US $30,419,779 for the years ended December 31,
2007 and 2006, respectively, and differed from the amounts computed by applying the statutory
income tax rate to pretax consolidated earnings as a result of the following:
2007
2006
Computed “expected” tax expense
US$ 68,697,035 47,369,716
Increase (decrease) in income taxes resulting from:
Exempt and foreign source income
(30,839,676) (21,493,414)
Tax incentives
(525,426)
(168,309)
Change in allowance
(4,478,631)
1,364,786
Nondeductible expenses
10,934,509
7,521,590
Foreign income taxes rate differential
(7,873,224) (4,174,590)
Income tax expense
US$ 35,914,587 30,419,779
Temporary differences between financial statement carrying amounts and tax bases of assets
and liabilities that give rise to the deferred tax assets and liabilities as of December 31, 2007 and
2006 are as follows:
Deferred tax assets:
Net operating tax loss carryforwards
US$
730,001
14,422,163
Deferred loan origination fees and costs
383,482
Accrued expenses
2,394,190
Gross deferred tax assets
17,929,836
Less-valuation allowance
(47,576)
Net deferred tax assets
17,882,260
Deferred tax liabilities:
Net premises and equipment depreciation difference
(4,481,306)
Organizational costs
(375,307)
Deferred commissions and accrued interest receivable (1,777,142)
Unrealized gains on securities available for sale
(120,756)
Total deferred tax liabilities
(6,754,511)
Net deferred tax assets
US$ 11,127,749
2006
1,770,566
5,814,853
51,926
1,521,442
9,158,787
(4,526,207)
4,632,580
(3,137,483)
0
0
(324,784)
(3,462,267)
1,170,313
2007
- 52 -
The valuation allowance for deferred tax assets as of December 31, 2007 and 2006 was US $47,576
and US $4,526,207, respectively.
The net change in the total valuation allowance for the years ended December 31, 2007 and 2006
was a decrease of US $4,478,631 and an increase of US $1,364,786, respectively. In assessing the
realizability of deferred tax assets, management considers whether it is more likely than not
that some portion or all of the deferred tax assets will not be realized. The ultimate realization
of deferred tax assets is dependent upon the generation of future taxable income during the
periods in which those temporary differences become deductible.
At December 31, 2007, subsidiaries of the Bank have incurred in net operating tax loss carryforwards
of US $2,752,384, which are available to offset future taxable income of the applicable subsidiaries,
if any, through 2016.
(18) Accumulated Other Comprehensive Loss, Net
The following table presents the components of and changes in accumulated other comprehensive
loss for the years ended December 31, 2007 and 2006:
Balances as of December 31, 2005
Current year changes
Current year changes
US$
US$
Foreign
Currency
Translation
Unrealized
Net Gain
(Loss) on
Securities
Accumulated
Other
Comprehensive
Loss
(53,350,540)
(6,953,417)
(60,303,957)
3,918,637
(56,385,320)
(325,633)
992,795
667,162
218,724
885,886
(53,676,173)
(5,960,622)
(59,636,795)
4,137,361
(55,499,434)
The following table presents details of other comprehensive income (loss) for the years ended
December 31, 2007 and 2006:
December 31, 2007
- 53 -
Pre-tax
Amount
Foreign currency translation adjustment US$
Unrealized gains (loss) on securities:
Unrealized net holding gains (losses)
on securities
Less: reclassification adjustment for
realized gains (losses) in net income
Net unrealized gains
Other comprehensive income for the year US$
3,918,637
Income tax
(Expense)
Benefit
0
After-tax
Amount
3,918,637
(2,004,539)
857,790
(1,146,749)
2,019,235
14,696
3,933,333
(653,762)
204,028
204,028
1,365,473
218,724
4,137,361
December 31, 2006
Pre-tax
Amount
Foreign currency translation adjustment
Unrealized gains (loss) on securities:
Unrealized net holding gains (losses)
on securities
Less: reclassification adjustment
for realized gains (losses) in net income
Net unrealized gains
Other comprehensive loss, for the year
US$
US$
Income tax
(Expense)
Benefit
After-tax
Amount
(6,953,417)
0
(6,953,417)
9,100,769
(1,471,519)
7,629,250
(7,783,190)
1,317,579
(5,635,838)
1,146,735
(324,784)
(324,784)
(6,636,455)
992,795
(5,960,622)
(19) Balance Sheet Financial Instruments
The Bank is a party to financial instruments with off-balance sheet risk in the normal course
of business to meet the financing needs of its customers. These financial instruments include,
principally, commitments to extend credit, financial guarantees and letters of credit, the balances
of which are not reflected in the accompanying consolidated balance sheets.
Letters of credit are conditional commitments issued by the Bank to guarantee performance of a
customer to a third party. Those letters of credit are primarily used to support trade transactions
and borrowing arrangements. Generally, all letters of credit issued have expiration dates within
one year. The credit risk involved in issuing letters of credit is essentially the same as that involved
in extending loan facilities to customers.
As of December 31, 2007 the Bank had outstanding revolving lines of credit available to its credit
card customers in each of the various countries of operation that ranged from approximately
US $150 million to US $1,208 million (US $160 million to US $1,023 million in 2006). The unused
portion of the total amount available in each country, aggregated approximately from US$93
million to US $934 million (US $89 million to US $800 million in 2006). While these amounts
represented the available lines of credit to customers per country, the Bank has not experienced,
and does not anticipate, that all of its customers will exercise their entire available lines at any
given point in time. The Bank generally has the right to increase, reduce, cancel, alter or amend
the terms of these available lines of credit at any time.
Financial guarantees are used in various transactions to enhance the credit standing of the Bank’s
customers. They represent irrevocable assurances that the Bank will make payment in the event
that the customer fails to fulfill its obligations to third parties.
Commitments to extend credit are agreements to lend to a customer as long as there is no violation
of any condition established in the contract. Commitments generally have fixed expiration
dates or other termination clauses and may require payment of a fee. The commitments may
expire without being drawn upon. Therefore, the total commitment amounts do not necessarily
represent future cash requirements. The amount of collateral obtained, if it is deemed necessary
by the Bank, is based on management’s credit evaluation of the customer. At December 31, 2007
and 2006, the Bank had not entered into non-cancelable commitments to extend credit.
- 54 -
The Bank uses the same credit policies in making commitments and conditional obligations as it
does for on-balance sheet instruments. At December 31, 2007 and 2006 outstanding letters of
credit and financial guarantees are as follows:
Standby letters of credit
Commercial letters of credit
Financial guarantees
US$
US$
2007
2006
20,247,079
45,597,110
179,113,306
244,957,495
37,615,615
21,403,261
104,075,325
163,094,201
The nature, terms and maximum potential amount of future payments the Bank could be required
to make under the standby letters of credit and guarantees as of December 31, 2007 and 2006, are
detailed as follows:
Up to 1 year
Over 1 year
US$
US$
2007
2006
169,774,735
29,585,650
199,360,385
125,986,713
15,704,227
141,690,940
Generally, the Bank has resources to recover from clients the amounts paid under these guarantees;
additionally, the Bank can hold cash or other collateral to cover for these guarantees. The assets
held as collateral, that the Bank can obtain and liquidate to recover totally or partially the
amounts paid under guarantees as of December 31, 2007 and 2006, amounted to US $22,425,486
and US $12,485,962, respectively.
The fair value of the letters of credit and guarantees as of December 31, 2007 and 2006 are of
US $1,606,424 and US $969,509, respectively.
(20) Derivative Financial Instruments
The accounting of derivatives financial instruments requires that these financial instruments be
recorded on the consolidated balance sheets at their fair value.
In the normal course of business, the Bank uses interest rate derivatives primarily for economic
hedging purposes in its balance sheet management activities.
- 55 -
Types of Derivative Instruments
Derivative instruments negotiated by the Bank are executed mainly over-the-counter (OTC).
These contracts are executed between two counterparties that negotiate specific agreement
terms, including notional amount, exercise price and maturity.
For purposes of asset/liability activities, the Bank uses the following instruments:
Interest rate swaps are contracts in which a series of interest rate flows, which involve fixed for
floating interest payments or vice-versa. The Bank has designated these derivative instruments
as freestanding derivatives.
An interest rate cap is a contract that guarantees a maximum level of LIBOR. Caps are also known
as ceilings. In return for making this guarantee, the buyer pays a premium. Caps generally
guarantee a maximum level of either 3 or 6 month LIBOR or whatever the prevailing floating
rate index is in the particular market. The Bank’s maximum loss on a cap transaction is the
premium.
The following table provides quantitative information on derivative financial instruments
outstanding at December 31, 2007 and 2006.
2007
Notional
Amount
Freestanding:
Interest rate swaps US$ 25,000,000
Interest rate caps
82,000,000
US$ 107,000,000
2006
Fair Value
Assets
Liability
0
244,882
244,882
822,491
0
822,491
Notional
Amount
35,000,000
7,000,000
42,000,000
Fair Value
Assets
Liability
0
30,345
30,345
540,873
0
540,873
(21) Concentration of Credit Risk
Concentrations of credit risk arise when changes in economic, industry or geographic factors
similarly affect groups of counterparties whose aggregate credit exposure is material in relation
to the Bank’s total credit exposure. Through the operation of subsidiary banks in Central
American countries, however, the Bank has widened its lending activities, diversifying into other
consumer and commercial products. The loan book is well diversified by economic sector and by
individual exposures. By country the largest loan exposures are held in Costa Rica, Honduras and
El Salvador.
(22) Disclosures about Fair Value of Financial Instruments
The fair value of a financial instrument is the current amount that would be exchanged between
willing parties, other than in a forced liquidation. Fair value is best determined based upon quoted
market prices. However, in many instances, there are no quoted market prices for the Bank’s
various financial instruments. In cases where quoted market prices are not available, fair values
are based on estimates using present value or other valuation techniques. Those techniques
are significantly affected by the assumptions used, including the discount rate and estimates
of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate
settlement of the instrument. Accordingly, the aggregate fair value amounts presented may not
necessarily represent the underlying fair value of the Bank’s financial instruments.
a) Financial Instruments with Carrying Value Approximating Fair Value
The carrying value of certain financial assets including cash and cash equivalents, interestbearing deposits, and customers’ liability under acceptances outstanding, as well as certain
financial liabilities, including securities sold under agreements to repurchase and acceptances
outstanding, approximate fair value due to the short term nature of the instruments.
(b) Investment Securities
The fair value of investment securities (trading, available for sale and held to maturity) is estimated
based on bid prices published in financial newspapers or bid quotations received from securities
dealers. If a quoted market price is not available, fair value is estimated using quoted market
prices for similar securities or based on the discounted value of contractual cash flows. Available
for sale securities are carried at fair value. Refer to notes 5, 6 and 7 for fair value information.
The following is a description of the methods and assumptions used to estimate fair value of the
most significant financial instruments held by the Bank:
- 56 -
(c) Loans
The fair value is estimated based on portfolios of loans with similar financial characteristics.
Loans are segregated by type such as commercial, commercial real estate, residential mortgage
and other consumer. Each loan category is further segmented into fixed and adjustable rate
interest terms, and by performing and non-performing categories. The fair value of performing
loans, except residential mortgage loans, is calculated by discounting scheduled cash flows
through the estimated maturity of the loans using estimated market discount rates that reflect
the credit and interest rate risk inherent in the loan. For performing residential mortgage loans,
fair value is estimated by segmenting loans into homogeneous categories and by reference to
quotations available in markets where these loans were traded. Fair value for significant nonperforming loans is based on estimated cash flows discounted using a rate commensurate with
the risk associated with the estimated cash flows. Assumptions regarding credit risk, cash flows
and discount rates are judgmentally determined using available market information and specific
borrower information. The fair value of loans at December 31, 2007 and 2006 was approximately
US $4,521,702,816 and US $2,794,634,551 (carrying value was of US $4,520,686,233 and
US $2,795,811,338), respectively.
(d) Deposits
The fair value of deposits with no stated maturity, such as demand, savings, and money market
deposits, is equal to the amount payable on demand as of December 31, 2007 and 2006. The
fair value of time deposits is calculated based on the discounted value of contractual cash
flows. The discount rate used represents the interest rates currently offered for time deposits of
similar remaining maturities. The fair value of time deposits at December 31, 2007 and 2006 was
approximately US $1,801,691,918 and US $1,234,750,876 (carrying value of US $1,798,706,950 and
US $1,233,272,255), respectively.
(e) Borrowings
The fair value of borrowings was calculated based on the discounted value of contractual cash
flows. The discount rate used represents the interest rates currently offered for similar types of
borrowings and remaining maturities. The fair value of borrowings at December 31, 2007 and 2006
was approximately US $1,120,048,703 and US $543,663,691 (carrying value of US $1,123,103,587
and US $546,710,873), respectively.
- 57 -
(f) Other borrowed funds
The fair value of other borrowed funds was calculated based on the discounted value of contractual
cash flows. The discount rate used represents the interest rates currently offered for similar types
of other borrowed funds and remaining maturities. The fair value of other borrowed funds at
December 31, 2007 and 2006 was approximately US $212,905,391 and US $131,588,669 (carrying
value of US $213,476,324 and US $130,288,780), respectively.
(g) Off-balance sheet instruments
The fair values for off-balance-sheet, credit-related financial instruments are based on fees
currently charged to enter into similar agreements, taking into account the remaining terms of the
agreements and the counterparties’ credit standing. Refer to note 19 for fair value information.
(23) Administration of Trust Contracts and Asset Management
As of December 31, 2007 and 2006, several of the Bank’s subsidiaries administer and are custodian
of assets which amounted to approximately US $786,488,113 and US $338,345,000, respectively.
(24) Related Party Transactions
The Bank in the normal course of business enters into transactions with related parties, including
principal officers and directors. The following table sets forth balances and transactions with
related parties as of December 31, 2007 and 2006 and for the years then ended:
2007
Assets:
Due from banks
US$
Loans receivable
Accrued interest and other receivables
US$
2006
42,480,800
6,139,851
9,296,385
92,088,255
890,611
150,895,902
40,962,777
10,818,496
11,822,217
75,239,449
591,656
139,434,595
US$
46,447,518
66,203,452
98,748,043
1,522,159
212,921,172
49,985,692
75,374,379
9,977,242
4,827,717
140,165,030
Interest and other operating income US$
8,164,924
9,026,638
Interest and other operating expenses US$
7,594,985
4,594,806
Liabilities:
Demand deposits
Time deposits
Borrowings
Accrued interest and other liabilities
Securities available for sale are placed in mutual funds managed by the subsidiaries of the Bank.
(26) Regulatory Matters
Banking operations of the Bank are subject to various regulatory requirements administered
by governmental agencies in the countries they operate or are licensed. Failure to meet these
regulatory requirements can initiate certain mandatory, and possibly additional discretionary,
actions by the regulators that, if undertaken, could have a material effect on the Bank’s consolidated
financial statements. In the opinion of management, at December 31, 2007 and 2006, the Bank’s
banking operations were in compliance with such regulatory requirements.
(25) Litigation
To the best knowledge of Bank’s management, there is currently no litigation or assessment that
may result in a material adverse effect on its business, its consolidated financial condition or
consolidated results of operations.
- 58 -
PANAMA
Calle 43 y Aquilino de la Guardia. Edificio BAC Credomatic
Panamá, República de Panamá.
Tel: (507) 206-2700/ Fax: (507) 214-7045
Gerente General: RodolfoTabash E.
Aptdo: 6-3654 El Dorado, Panamá, Rep. de Panamá
e-mail: [email protected]
Web: www.bac.net
BACValores
Calle 43 y Aquilino de la Guardia. Edificio BAC Credomatic
Panamá, República de Panamá.
Tel: (507) 206-2 7oo / Fax: (507) 214-9270
Gerente: Antonio Fistonich
BAC San José Sociedad de Fondos de Inversión S.A.
Edificio Omni, Piso 7. San José, Costa Rica
Tel: (506) 2295-9719 / Fax: (506) 2222-7103
Gerente: Allan Marín
Aptdo: 5445-1000 San José, Costa Rica
Web: www.bac.net
Credomatic de Panamá
Planta Baja, EdificioVallarino Calle 52 y Ave. Elvira Mendez
Tel: (507) 205-4000 / Fax: (507) 205-4010
Gerente General: Juan Carlos Mejía
Aptdo. 55-1167 / Paitilla Panamá, República de Panamá
Web: www.credomatic.com/panama
BAC San José Leasing S.A.
Calle Central, Avenidas 1 y 3. San José, Costa Rica
Tel: (506) 2295-9595 / Fax: (506) 2223-5610
Gerente General: Javier Sancho
Web: www.bac.net
NICARAGUA
BAC Nicaragua Centro BAC
Km. 4.5 Carretera a Masaya. Managua, Nicaragua
Tel: (505) 274-4444 / Fax:(505)274-4623
Gerente General: Juan Carlos Sansón
Aptdo: 2304 Managua, Nicaragua
Contacto: [email protected]
Web: www.bac.net
BAC San José Puesto de Bolsa
Avenida 1 era, Calles 3 y .5 Edificio Omni, Piso 7
San José, Costa Rica
Tel: (506) 2295-9719 / Fax: (506) 2222-7103
Gerente: Luis Fernando Monge
Web: www.bac.net
BACValores Puesto de Bolsa
Centro BAC
Tel: (505) 274-4444 / Fax:(505)274-4490
Gerente: Jorge Riguero Recalde
Credomatic de Nicaragua
Centro BAC
Tel: (505) 274-4444 / Fax:(505)274-4408
Gerente General: Edgar Ahlers Pasos
Aptdo: 3597 Managua, Nicaragua
Web: www.credomatic.com
CAYMAN ISLANDS
Caledonian Bank andTrust Ltd.
Caledonian House, 69 Dr. Roy Drive P.O. Box 1043, Georgetown
Grand Cayman, Cayman Islands BWI
Tel: (345) 949-0050 / Fax: (345) 949-8062
- 59 -
BAC San José Pensiones
Operadora de Planes de Pensiones Complementarias, S.A.
Ave. 5a entre Calle 0 y 1. Edificio Lachner, Costado Nortede
Radiográfica San José, Costa Rica
Tel: (506) 2295-9200 / Fax:(506) 2222-5797
Gerente General: Javier Sancho Guevara
Web: www.bac.net
COSTA RICA
BAC San Jose
Calle Central, Avenidas 3 y 5, San José, Costa Rica
Tel: (506) 2295-9595 / Fax: (506) 2222-7103
Gerente General: Gerardo Corrales
Web: www.bac.net
Credomatic de Costa Rica
Calle Central, Avenidas 3 y 5 Edificio BAC San José
San José, Costa Rica
Tel: (506) 2295-9000 / Fax: (506) 2233-6387
Gerente General: José Ignacio Cordero
BAHAMAS
BAC Bahamas Bank Ltd.
Norfolk House Frederick Street
P.O. B0x 556352 Nassau, Bahamas
Tel: (242) 325-4600 • (242) 325-4601 / Fax: (242)325-4602
Gerente: Dave Smith
HONDURAS
BAC Bamer
Barrio Pueblo Nuevo, Boulevard Morazán,
Edificio BAC Credomatic, 1er Piso, Tegucigalpa, Honduras
Tel: (504) 238-7220 / Fax: (504)237-5113
Gerente General: Jacobo Atala
Aptdo: 3725 Tegucigalpa, Honduras
Web: www.bac.net
Credomatic de Honduras
Boulevard Morazán, Edificio Interamericana, 1er Piso
Tegucigalpa, Honduras
Tel: (504) 238-6570 / Fax: (504)237-5222
Gerente General: Juan Carlos Páez
Aptdo: 1536 Tegucigalpa, Honduras
EL SALVADOR
Banco de América Central
55 Ave. Sur entre Alameda Roosevelt y Ave. Olímpica
Centrc Roosevelt, Edificio Credomatic San Salvador, El Salvador
Tel: (503) 298-l855 / Fax: (503) 224-3148
Gerente General: Gerardo A. Ruiz Munguía
Aptdo: 01-261 San Salvador, El Salvador
Web: www.bac.net
Credomatic de El Salvador
Centro Roosevelt, Edificio Credomatic San Salvaldor, El Salvador
Tel: (503) 298-1855 /Fax: (503) 224-4138
Gerente General: Fernando González
Aptdo: 01-261 San Salvador, El Salvador
Inversiones Bursátiles Credomatic
Centro Roosevelt, Edificio Credomatic, San Salvador, El Salvador
Tel: (503)206-4173 • 206-4179 / Fax: (503) 298-7009
GUATEMALA
Banco de América Central
7 Ave. 6 - 26, Zona 9. Edificio El Roble, 1er. Nivel
Guatemala, Guatemala
Tel: (502) 2361-0909 / Fax: (502) 2331-8720
Gerente General: Juan JoséViaud
Web: www.bac.net
BACValores, Puesto de Bolsa
7 Ave. 6 - 26, Zona 9. Edificio El Roble Nivel 7, Oficina 707
Tel: (502) 2361-0909 / Fax:(502)2331-4818
Gerente: Gustavo Morales
Credomatic de Guatemala
7 Ave 6 - 26, Zona 9. Edificio El Roble, 1er. Nivel
Tel: (502)2361-0909 / Fax: (502) 2331-8720
Gerente General: Juan Maldonado
FLORIDA, USA
BAC Florida Bank
169 Miracle Mile, R-10. Coral Gables, Florida 33134
Tel: (305) 789-7000 / Fax: (305) 374-1402
e-mail: [email protected]
President & CEO: Frank Robleto
Web: www.bac.net
Credomatic of Florida
848 Brickell Avenue, 5th. Floor. Miami, Florida 33131
Tel: (305) 372-3000 / Fax: (305) 350-5228
President: Ricardo Horvilleur
BAC Florida Investments
2333 Ponce de Leon Blvd., Suite 700 Coral Gables, Florida 33134
Tel: (305) 373-0028 / Fax: (305) 375-0362
President: Marcello Correa
Web: www.bac.net
BAC Global Advisors
2333 Ponce de Leon Blvd., Suite 700 - A
Coral Gables, Florida 33134
Tel: (305) 523-6552 / Fax: (305) 375-0362
President: Marcello Correa
Web: www.bac.net
BAC Financial Services, Inc.
2600 Douglas Road, Suite 1003 Coral Gables, Florida 33134
Tel: (305) 442-8420 / Fax: (305)442-8421
ExcecutiveVicepresidents: Johnny Sordo & Rafael Sánchez
MEXICO
Credomatic de Mexico, S.A. de CV
Av. Lázaro Cárdenas 3590, Colonia Jardines de los Arcos 44500
Guadalajara, Jalisco, México 44500
Tel: (33) 3880-3780 / Fax: (33) 3880-3762
Gerente General: Alejandro Chamorro
- 60 -

in forme an u al 2007 \ an nu al r ep ort 2007

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