12 Board of Director

Transcription

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Our Mission
“Provide efficient financial solutions assuring our clients’
satisfaction and the creation of value for our shareholders”
Our Vision
“By 2015 we will be a Bank for persons and companies,
focused in the comprehensive relation with our clients,
advising and accompanying them in each stage of their
development”
Corporate Values
Commitment
We work with the outmost dedication, assuming challenges and adopting change with a
loyal, enthusiastic, and proactive attitude.
Professionalism
We behave with responsibility, integrity, discipline, and reliability.
Team work
We form part of one same team, where union and mutual help ensure the solution to our
client´s needs.
Client Oriented
We render excellent services to external and internal clients, developing long term
relationships and mutual convenience.
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Contents
Chairman’s Letter
6
Board of Directors
12
Management13
Summons to Ordinary General Meeting
14
Report
Paraguay, Economic Environment
17
2013 - facing the Community
49
Prevention of Money Laundering and Terrorism Financing
57
General Manager´s Presentation of Results
59
General Balance as of December 31
I
Independent Auditors’ Opinion
II
Patrimonial Situation Statement
IV
Statement of Results
VIII
Net Equity Evolution Statement
X
Cash Flow Statement
XI
Notes to the Financial Statements as of 31/12/2013
Report from the Syndic
Economic Environment Indicators
Branches and ATM Network SUDAMERIS BANK Sudameris Express
XIII
XLIX
LI
LIX
LXIII
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Chairman’s Letter
Dear Shareholders
2013 has been a year of transition for Paraguay. In April, a new president was
elected for the next 5 years, formally taking office on August 15th. This very long,
constitutionally based, transition period between the outgoing and incoming
administrations has had the negative effect of paralyzing the public sector and part
of the economy for almost 8 months. Against this backdrop, the agriculture sector
enjoyed its biggest crop season ever with over 9 million tons of grain produced.
In this peculiar context, Sudameris recorded a 21% growth in total assets while
maintaining NPLs below the system average for an 8th consecutive year. Total
shareholder return for the period was 16%. I consider this a good performance
considering the peculiarities of that election year and the impact it had on the local
economy.
Sudameris Bank closed the year 2013 with its first
ever emission of qualifying Tier II capital under Basel
III. This instrument emitted on the Stock Exchange in
Asuncion bears all the characteristics of a contingent
convertible bond, or “Cocos”. The US$10m issue
was entirely placed with our long-term partner, the
Dutch development bank, FMO and forms part of
a US$20m total issue program. Combined with the
capitalization of a large portion of our 2013 income,
the bank will enjoy a solvency ratio of over 16% at
the beginning of the year 2014, a solid base that
will support its growth strategy for the coming year.
Additionally, the bank has kept the ability to issue an
additional US$10m tranche of contingent convertible
bonds at the end of 2014 should the need be.
As the financial sector is getting more visibility on
the new government’s strategy, I expect 2014 to be
another year of solid growth both for the country and
the banking sector.
Conor McEnroy
Presidente
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Political background
On April 15th 2013 was elected President, Horacio Cartes, a successful
businessman with an clear understanding of the economy and of the country’s
problems. The transition period was marked by difficult communication between
the outgoing and incoming teams. When the elected President was sworn
in, in August, little was known of the reality of the finances of the country. As a
consequence, the President ordered an audit of the country’s financial position
that highlighted a very bleak situation, which forced the new team to halt any public
spending for 5 months.
Although the underlying rationale for that decision was well founded, the impact it
had on the economy, combined with other external factors, was rather brutal with
a drop in consumption and retail spending and a massive rise of the contraband
of consumable products.
The current objective of the government to tackle excessive and unnecessary
public spending should be praised as the country is coming out of two years of
massive increase in the number of civil servants. For the first time, light has been
shed on the worst excesses of mismanagement and nepotism in the Lugo/Franco
government and the ugly burden it has put on the citizens and taxpayers.
The decision to address directly the issue of contraband is also a key strategic angle
that will require time, but in due course, will strongly benefit the country through
additional jobs, increased tax collection and improving international reputation.
In the 4 months between September and December, the new government
managed to pass two very important pieces of legislation that we believe, will
contribute to the foundations for long-term growth:
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a fiscal responsibility law, capping budget deficit, especially during election
years; and,
-
the public-private-partnership law that provides a legal base for allowing
local and international groups to bid for the massive infrastructure projects
that the country need under concession programs or as public investments.
All this was achieved whilst negotiating the lifting of the political ban endured by
Paraguay within Mercosur since the destitution of President Fernando Lugo in
June 2012.
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We must continue with the cycle of reforms initiated more than 10 years ago
especially in such critical areas as public and private pensions. The inability of
Paraguay to generate internally its own long-term funding resources not only
increases its dependency on multi-lateral institutions and development banks, but
also impairs the growth potential of its financial sector that has extreme difficulties
in financing long-term infrastructure projects. It is of paramount importance that
Paraguay invest its private sector savings and long-term reserves and assets in
Paraguay, thus funding its own infrastructure development programs.
Considering the very ambitious plans from the new government in terms of longterm growth, education standards will remain a key bottle neck in the country’s
development.
Following the elections, German Rojas, our Vice Chairman at Sudameris Bank for
the past four years, was called to take charge of the Ministry of Finance. German
has been an important part of the development and success of the bank during
his tenure. We would like to thank him for his tremendous contribution to our
institution and wish him all the very best in his new position.
Financial Sector
A major challenge lays ahead in financial systems worldwide and also in Paraguay.
With dissatisfaction and even mistrust in North America and Europe towards
financial institutions and the poor standards of banking practiced, whether or not
with the consent of regulators, there is a mood of sympathy towards non-bank
banking. This is dangerous. Whether it be a payments system, a deposit gatherer
or a lender, these activities must be regulated in a consistent fashion. This is not
happening.
It took a long time to build up a coherent and consistent sets of policies and
guidelines as expressed by Basel I and other such basic building blocks of regulation
and supervision as the separation of commercial and investment banking. As
these prudent standards were dismantled through the repeal of regulation and
the reversal of policy Basel II was borne and the difference between savings and
investments became blurred and eventually unmanageable. The result was tragic.
Basel III is a poor response, which penalizes emerging markets and patches
lightly the broken policies of Basel II. Emerging markets with their well capitalized
banks are shining a unwelcome light on the formerly emerged markets with their
dangerously low capitalizations. As banks in the first world scramble to recapitalize
and therefore restrict lending to boost capital ratios, non-bank banks are stepping
in to provide unregulated banking services ranging from deposit gathering,
payments and lending. This trend is now reaching Paraguay and will end in tears.
We must not yield to high fashion that promises a quick fix. The proposed lack of
regulation of non-bank entities offering to perform the functions of a commercial
bank is simply not acceptable.
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Looking forward
For Sudameris Bank, we believe that 2014 will begin to reap the fruits of the large
investments that have been made over the past 14 months in both infrastructure
and information technology. The bank is on the verge of launching its new electronic
banking offering that will bring together computer, tablets and smart phones to
offer the best online banking experience possible. The idea of being able to do any
transaction, anytime, anywhere was the core driver of the project, and we believe
that this new tool will facilitate our clients’ experience with the bank and respond to
a growing demand for mobility and flexibility.
We are also opening new attention centers, directly embedded within commercial
centers, such as supermarkets, gas stations, etc, thus allowing the bank to get
closer to its clients and giving the flexibility to respond top their needs based on
their location. We are also finalizing key agreements with technology companies
that will allow us to service clients that the institution could not access easily
beforehand.
We also anticipate the financial sector to grow in 2014 on the back of continued
success in the agro-industrial sector, the growing strength of the meat export
operations and the development of long-term infrastructure projects.
I believe that we will have a prosperous 2014 and that our bank will continue to be
a key player in the coming reforms that the country is embarking on. I also would
like to take this opportunity to thank the staff and managers for their dedication
and focus, especially in the development and implementation of new products and
ideas that will, no doubt, contribute to a very successful 2014 for the bank.
I look forward to reporting again in 2015.
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Board of Director
GUSTAVO CARTES
CONOR McENROY
President
Ex Swiss Bank Corporation,
ABN AMRO
SEBASTIEN LAHAIE
Director
MD Abbeyfield Group,
Ex ABN AMRO and
HSBC
ALBERTO EGUIGUREN
GARRET KENNEDY
Director
Financial Director Abbeyfield Group
32 years of experience
Ex AIB Bank plc Ireland and United
Kingdom
LUIS DURAN DOWNING
Director
Attorney at Law, partner at law firm
Honorato, Russi & Asociados
Director, D&S S.A. and
Liberty Seguros
Director
Economist. Formerly at Banco Central,
Technical Secretary of the President´s
office in Nicaragua and International
Monetary Fund Representative of IMF
in Paraguay (2002-2007)
LISARDO PELÁEZ
VICTOR TOLEDO
Director
Ex President, EFE
Ex Executive President,
Board of Directors, ABN AMRO
Ex Corporate Director, Citibank
Belgium
Director
Ex Assistant General Director
Banco Santander
JORGE ROJAS
Syndic
External Auditor
30 years of experience,
Former Partner, Coopers & Lybrand
Ernst & Young
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Vice President. General Manager. Director
Former titular member of the board of
directors, Banco Nacional de Fomento.
Former interim president, Banco Central
del Paraguay. Former member of the
board of directors, Banco Central del
Paraguay
Management
GUSTAVO CARTES General Management
HUGO CABALLERO Corporate Banking Management
OMAR FERNÁNDEZ Risks Management
MARCELO ESCOBAR JIMÉNEZ Management, Control and Research
JORGE LUIS FERREIRA PARODI Administrative Management
MIGUEL ÁNGEL HERRERA Management, Finances
ARIEL LEÓN Small and Mid-sized companies and Persons Management
MARTA ROCHA Human Resources Management
JOSÉ MARÍA BARRIOS Operations Management
LUIS CARLOS LEÓN I
Information Technology Management
ROBERTO RAMÍREZ BARBOZA Internal Audit Management
GLORIA GULINO Accounting Management
NANCY SIMÓN Manager, Process Management, Norms and Innovations
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Summons to Ordinary
General Meeting
Asunción, February 28, 2014
In accordance with what is prescribed in Articles 9 and 10 of the Corporate
bylaws, the Shareholders of SUDAMERIS BANK SOCIEDAD ANÓNIMA
EMISORA DE CAPITAL ABIERTO are summoned to the Ordinary General
Shareholders Meeting that will take place on Monday, March 24, 2014, at
10.00, in one single summons, at the site of the Bank, on Independencia
Nacional street, corner with Cerro Corá street, of the city of Asunción, to
consider the following
Agenda, Ordinary General Shareholders Meeting
1. Consideration of the Board of Directors’ Annual Report,
General Balance, Earnings and Losses Account, Report
from the Syndic, proposal as to the distribution of earnings
and remunerations of the Board of Directors and of the titular
and substitute Syndics, corresponding to fiscal year closed
as of December 31, 2013.
2. Establishment of the number of Directors, nomination of the
President, Vice president and other functions of the Board;
and of the titular and substitute Syndics, all for the fiscal year
corresponding to 2013, and their remunerations
3. Designation of two shareholders to sign the minutes of the
Meeting
Note: In order to attend at the meetings, shareholders must deposit at the offices
of the bank, with at least three working days in advance of the date set for
the Meetings, the shares, nominative or banking certificates accrediting their
holding of the same. The bank will deliver the necessary receipts that will serve
for admission to the meetings.
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Report of the Ordinary
General Meeting
March 24, 2014
Dear Shareholders:
According to the legal and statutory norms governing our activity, we
place before your consideration the Inventory, General Balance, Profits
and Losses Account, the Syndic´s Report, and this Report, corresponding
to fiscal year closed on December 31, 2013.
As customary in this report, we present a quantitative and qualitative
account of the most relevant aspects of the Paraguayan economy during
the course of year 2013. Thereafter we present the initiatives developed
by the Bank during this period, facing the community.
Finally, we exhibit the results and outstanding aspects of our Entity´s
operations.
The President of the Board of Directors
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16Branch Itauguá
Paraguay
Economic Environment
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THE WORLD SCENE
2013 was a year of moderate growth globally, with falls and uncertainty in some
economies that, in spite of the efforts, continue without achieving the economic stability
they enjoyed a few years ago.
UNITED STATES
In a brief account of the economic behavior of the U.S. in 2013, according to
official data, Gross Domestic Product (GDP) grew respectively by 1.1, 2.5 and
3.6% in the first three quarters. In analyzing this growth, one must take into
account the raise in several taxes and the budget cut that became in force in
March of this year, avoiding what is known as the Fiscal Cliff.
Expectation begun to be perceived in the stock and exchange markets since
the end of May, upon the announcement of the possible withdrawal of monetary
stimulus by the Federal Reserve. However, in successive later meetings, the Fed
clarified that it would continue with the stimulus, but that, given the economic
results being observed, they could progressively reduce the stimulus in year
2014.
One other resounding fact was that, on October 1st, the White House was
forced to close the operations and non essential government offices due to
the closing of the fiscal year, and the failure to approve the national budget
for 2014. Also added, the fact that on October 17 the country would reach the
debt ceiling (US$ 16.7 trillion) and, should its increase not be approved, the
government would go into default due to the lack of funds, for the first time
since 1789. The real problem was mostly a political one, since Congress is
handled by the Republican Party, in the opposition, and the Senate, by the
Democratic Party.
After 16 days of shut down, legislators arrived to an agreement, and by means
of a provisional measure, they extended the debt ceiling until February of
2014 in order to debate on the expenses and a possible reduction of the fiscal
deficit. But these days of shut down generated fright and uncertainty in the
international financial and capital markets, also leaving consequences in the
already fragile American economy, as it would have cost a reduction in the
creation of approximately 120,000 jobs and would decrease by approximately
0.25% the growth in GDP of the last quarter of this year.
The fact that companies’ expenditures decelerated in the third quarter and that
private consumption, representing over two thirds of the American GDP, grew
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at the slowest rhythm since mid-2011 in a certain manner justified the decision
of the Federal Reserve to maintain its monetary stimulus program until at least
the closing of this year.
Nonetheless, in its last meeting of the year, the Fed finally announced that as
from January it will begin to reduce the monetary stimulus it had been applying
through the purchase of Treasury Bonds. The reduction will be gradual: at first,
as from January, it will inject US$ 75 billion monthly versus the current US$ 85
billon (it will purchase US$ 40 billion worth of State securities and US$ 35 billion
in mortgage securities).
They also clarified that they might continue reducing the rhythm of their assets
purchases if improvements occur in the labor market and if inflation returns to
their goal of 2% annual.
EUROPE
Several economies in the European Union are in a recession since 2012, and
governments continue looking for a way out of the crisis. Unemployment is also
high, at 12.1% in the Euro Zone, but exceeding 25% in some countries like
Spain, and Greece. Projections show that this year would record zero growth in
the GDP of the Euro Zone.
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Upon all these facts, and taking into account the low levels of inflation, during
the first week of the month of May the European Central Bank (ECB) reduced
its reference interest rate from 1 to 0.5%, and then, in November, again, to the
historical minimum of 0.25%. A measure that took the market by surprise, but
that is in accordance with the expansive monetary policy that the principal
economies are executing. With this, the ECB pretends that the lower interest
rates will favor credit and investment, at the same time generating higher
inflationary pressure.
CURRENCIES AND COMMODITIES
The announcement by the Federal Reserve in June that it could begin to reduce
monetary stimulus generated a change in the quotation trend of the US Dollar,
strengthening it against other currencies, and reaching a rate of 1.28 US$/Euro.
However, the clarification that reductions would not take place before the end
of 2013 o the beginning of 2014 returned a certain calm to the markets and the
Dollar stopped its appreciation.
21
A few months later, in October, the Dollar was pressured downwards due to the
uncertainty generated by the shutdown of the American Government and the
possibility of default.
In spite of the agreement arrived at in the United States, the Dollar continued to
quote lower versus the Euro, reaching 1.38 US$/€.
In terms of Agriculture commodities, the international price of soybeans, although
with some backpedalling, is still at good levels. The crop of soy for 2013/14 is about
to end in the U.S., and a very good production is estimated. Abundant offer would
have an improving effect in the stock/consumption ratio that could press prices
downward. However, in the midterm, this would be balanced by a strong demand
for human consumption, for vegetal oil fuel, and for forage.
Corn´s world market comes from a year 2012 that was very complicated from the
production side, above all in the U.S., which had the worst draught in history. South
America, which also suffered the effects of the draught during the first half of 2012,
could recover in the 2012/13 campaign, favored by better climate conditions and
very good price incentives.
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From now on, when the reduction of the monetary stimulus already has a starting
date, the lowering trend of the U.S. currency versus the Euro would stop, and could
even revert itself, since there will be a smaller amount of Dollars available in the
market.
Expectations for the next 2013/14 campaign comes linked to the possibility that
the world´s largest producer and exporter recover ground lost. The U.S. planted
a record surface and climatic conditions are favorable. Larger production is also
expected in China, the European Union, and Ukraine, who together would crop 20
million more than in the past campaign. Under this recovery panorama of world
production and lower prices due to the improvement in the stock/consumption
ratios, incentives for the planting in South America are somehow diminished. The
large U.S. offer of corn would limit hikes for at least the following six months.
World wheat production in the 2013/14 campaign projects upwards, while
consumption would increase, but at a slower rhythm due to the smaller consumption
of wheat for animal feeding. This is so given that currently there is a migration
towards the use of corn instead of wheat, since the prices of the later greatly exceed
those of corn. Russia, the U.E., Ukraine and Korea are examples of this. The stock/
consumption ratio for wheat is estimated to remain the same versus the previous
campaign, a relation of 26%, or the smallest of the four last campaigns. Thus, it is
to be expected that this relation will give support to the prices of the cereal in the
future. Demand for food consumption remains firmly upwards.
23
In terms of oil, during the last few months prices are relatively stable. It is worth
mention that besides political aspects, conflicts in the Mid East and the decisions
of production countries, certain factors are existing that might influence importantly
in oil prices. One of the, is the increase in the production of oil in the U.S. since
2009, accompanied of a decrease in the imports of crude. All this is related with
the use of techniques to extract shale gas and shale oil 1 .
1. The technique known as fracking (hydraulic fracturing) is an extraction method for oil (and its derivates) consisting of the injection of a mixture of
water, sand, and chemicals within a well. Thus, the raw material trapped within soft rocks – mostly shale oil – is freed and extracted from the surface.
The high pressures, sand, and chemicals open way between the rocks in the terrestrial underground creating fissures of an important size to channel
desired organic material towards an extracting bomb receiving the name of shale gas and shale oil.
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WORLD GROWTH
Although the advanced economies are beginning to show some recovery signs, at
the same time, the principal emerging economies grow at a slower pace as they
have to deal with more difficult financial conditions globally.
Before this scenario, during the first days of October, the International Monetary
Fund (IMF) again lowered its growth projections globally with respect to the ones it
had made in July, April, and January. The projection of world growth for the current
year went from 3.1 to 2.9%.
In analyzing the principal economies, expectations vary. The growth projections
for the U.S. went from 1.7 to 1.6%; The panorama is better in the Euro Zone, and
the fall in the block would be lesser, from -0.6 to -0.4%, with Italy (-1.8%) and Spain
(-1.3%) with the worst performances. For the Japanese economy, projections are
maintained at 2.0%.
The perspective for growth of the emerging economies went from 5.0 to 4.5%. It is
estimated that China and India will continue growing at good rates, but quite lower
than their respective average of 7.6 and 3.8%. For Latin America, the projection
went from 3.0 to 2.7%; and for Brazil it was maintained at 2.5%.
Projections for 2014 were also reduced, but the results would be better than in the
current year: the world would grow by 3.6%, the U.S. 2.6%, the Euro Zone 1.0%
and Latin America, 3.1%.
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THE REGIONAL PANORAMA
BRAZIL
After having closed the second quarter with a growth rate of 1.8%, Brazil´s
Gross Domestic Product (GDP) reached US$ 536 billion during the third quarter,
representing a decrease of 0.5% with respect to the previous quarter, but up 2.2%
when compared with the same period in 2012.
In analyzing economic sectors, Agriculture had a poor performance, with a
decrease of 3.5% versus the previous quarter, and of 1% versus the third quarter of
2012. Industry grew by 0.1 and 1.9% respectively, highlighting good performance
of extractive industry, and a decrease in civil construction and transformation
industry. Services grew by 0.1% versus the second quarter, and 2.2% when
compared with one year before, with the main impulse from transportation.
On the side of Demand, private consumption had a quarterly growth of 1% and
of 2.3% in inter-annual terms. However, investment fell 2.2% versus the previous
quarter, although when compared with the same quarter of 2012, it shows growth
of 7.3%. The detention generates some concern regarding the future capability of
expansion of the Brazilian economy.
The Government´s growth projections of the GDP for this year are of 2.5%, while for
2014 private analysts estimate 2.1%.
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In its November meeting, the Monetary Policy committee of the Central Bank of
Brazil (BACEN) again raised the SELIC reference rate, this time from 9.5 to 10%, in
what constitutes the sixth consecutive change upwards. With this, the SELIC rate
returns to two digits after twenty months. This rise was in accordance with market
expectations.
After this rate increase, Brazil takes the first place in the world ranking of real rates
(interest rate less inter annual inflation) with 4.1%, followed by China with 3.1% and
Chile with 2.8%; while the world average rate is at -0.6%.
For 2014, more pressure is expected on prices, derived from the depreciation of
the Real that is taking place, and also from the eventual increases in the prices
of certain regulated products (such as fuel and public transportation fares), that
were maintained during this year because of the manifestations against price
rises. According to financial analysts, the rate could again go up, and would be
maintained at two digit levels for a couple of years.
ARGENTINA
During the last few years, the Argentinean Government has implemented quite
particular policies that today place the country in a complicated situation. One
of these policies is the high monetary issuance to finance public expenses and
belatedness in terms of foreign exchange rates, which made that the market
overflow with Pesos that were losing value due to inflation. Adding the loss of
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confidence, made that the Dollar become a shelter. They also applied a series
of measures each one more restrictive in the foreign exchange market, with
which the “Blue” Dollar became ever stronger. Since the Government is using the
Central Bank to finance itself, international reserves have fallen sustainedly, and
the capability to cover the monetary base was reduced by one half in two years.
During the first days of December, reserves went through one other psychological
barrier, falling below US$ 31.0 billion, and thus further incentivizing the escape of
US Dollars.
CURRENCIES
A nivel regional, dado el bajo crecimiento económico de Brasil, sobre todo del
sector industrial, a mitad de año el Banco Central dio lugar a que el real se
deprecie frente al dólar, aplicando medidas para impulsar la economía como la
reducción a cero de la tasa sobre el ingreso de capitales internacionales (IOF)
para atraer capitales considerando la perspectiva de menores niveles mundiales
de liquidez. Así, se dio una fuerte caída en la cotización del real, que llegó a 2,4
R$/US$ a mediados de agosto. Luego, en septiembre y octubre la depreciación
se frenó, pero a partir de noviembre retomó la tendencia bajista.
In Argentina, the Peso continues its devaluation, and given the restrictions on
foreign exchange, the “parallel” dollar continues its uninterrupted rise, at about
9.6 Ar$/US$, some 53% above the official exchange rate (it even reached 10 Ar$/
US$ in October).
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THE LOCAL PANORAMA
THE REAL SECTOR
After growing at a rate of 15.8% in the first quarter of this year, and of 14.9% in
the second quarter, the GDP grew during the third quarter at a pace of 12.9%
versus the same period of the previous year. Again, the principal impulse was
in Agriculture, growing by 51.8%, which produces a multiplying effect in related
activities.
Cattle ranching experienced inter annual growth of 8.0% given the optimal levels
of termination that are taking place this year. The construction sector, which in the
two first quarters had grown at rates higher than 10%, slowed down during the
third quarter, growing by just 4.3%. Other sectors showing good growth in the third
quarter were Industry, with 11.6% and Services with 10.5%, highlighting among
them the vegetable oil industry, beef, textiles, and chemical and financial services,
commerce, transportation, and communications.
In analyzing the GDP from the side of Demand, during the first and second quarters
it had been observed that the growth in civil constructions, the good Agricultural
year, and strong public investments led to an important recovery in investments,
growing by 31.6%. However, during the second quarter this growth quite slowed
29
down, to about 11.6%, something which was accentuated even more in the third
quarter, when growth was of only 3.1%. This deceleration is owed to the detention
in public investments, which in the second quarter fell by 4.4% and in the third
quarter, by 22.3% in inter annual terms.
Total consumption continues growing at moderate rates, due to the fall in public
consumption, but principally due to the low growth in private consumption, that is,
those expenses all citizens make and which represents 70% of total consumption.
Although the economy is having a good year, a retraction is being observed in
consumption, derived from several factors. One of them is the gap existing
between the official and the “parallel” Dollar in Argentina, which gave impulse to the
smuggling of consumer products towards our country, causing a negative impact
in commerce at the local level, making that sales of several items decrease. Also,
the depreciation of the Real reduces the purchasing capability of the Brazilians
abroad, and this negatively impacts in our border commerce. One other factor that
contributed to the slowness in consumption is the deceleration of credit, given the
high level of indebtedness consumers already have.
With these results Paraguay leads growth in Latin America, with a growth rate quite
above that of the average in the region. According to projections of the BCP, the
GDP in 2013 would have an expansion of 13.6.
AGRICULTURE
During the soybeans campaign of 2012/13, production exceeded all projections,
and even its own record. Finally, as it was expected, favorable climate conditions
permitted that soy have a very good performance. The surface sown was of
almost 3.2 million hectares, and the average yield was of 2,967 kg/ha. Besides
excellent production, good international prices permitted that the producer obtain
good margins and recompose his financial situation after the meager results of the
previous campaign.
Production of corn experienced a recovery, principally from the yield levels. The
wheat campaign for 2013 has culminated with probably the worst results in the last
ten years, with yields barely reaching 1.2 ton/ha versus 2.2 ton/ha in the previous
campaign, due to the adverse climate they had to face during the winter. Thus,
production fell by 50%. Notwithstanding, there is strong demand by Brazil, as they
have to cover the need for over 7.0 million tons, given that their main supplier,
Argentina, has a low quality production, lower than previous year’s levels.
30
Also, the dry conditions, followed by freezes in the productive regions in southern
Brazil took to a loss of 1 million tons versus the initial forecast, reducing domestic
supply. Brazil will have to import a total of 6.7 million tons of wheat, or 4.4% more
than last year. This could be an incentive for the production of wheat at the local
level in the next campaign, in order to gain some ground as a supplier to Brazil.
.
Concept
Soy + Soy “Zafriña”
2012/13*
Has
2.957.408
3.157.600
6,8%
Tons
4.356.262
9.367.298
115,0%
1,473
2,967
101,4%
Ton/Ha.
Corn + Corn “Zafriña”
876.369
983.899
12,3%
Tons
3.461.658
3.935.596
13,7%
3,950
4,000
1,3%
Has
499.566
551.365
10,4%
Tons
1.236.525
701.439
- 43,3%
2,475
1,272
- 48,6%
Has
109.443
131.315
20,0%
Tons
454.246
657.587
44,8%
4,151
5,008
20,7%
Ton/Ha.
Rice
11/12
Has
Ton/Ha.
Wheat
Var % 12 /13
2011/12
Ton/Ha.
Source: Prepared by Investor Economía based on data from CAPECO - INBIO
At the closing of October, imports of agro-chemicals and fertilizers also show
Notable growth versus the same period of the previous year. Import of fertilizers
had a marked increase of 22.1%. Imports of Agricultural machinery as of the
closing of October exhibit important increase in terms of quantities: 92% more
tractors were imported, 200% more sowing machines, 220% more pulverizers,
and 91% more harvesters.
Soy and its sub products (grains, oil, flour) and the country´s top export products,
generating some US$ 3.8 billion in exports as of November 2013. This expansion
is also reflected in a larger installation capacity for the grinding of soy, given that in
the last few years the presence has increase of multinational exporting companies,
and that also, close to 50 Agricultural cooperatives are operating.
31
The launching of the 2013/14 soybeans campaign took place at the beginning of
October. To date, most of the sowing work is finished, and the estimation is that the
first harvests would begin during the first half of January. According to estimates,
the sowing area would grow by 3.0%, with a yield of 2.8 million tons per hectare.
Depending on the evolution of the climate phenomenon currently acting over the
region, production would again reach 9 million tons. This would greatly depend on
the rains at the times of flowering and loading of the seeds.
CATTLE RANCHING
Total kills during 2013 reached optimum levels, with a monthly average of 160
thousand heads, or 27% more than in 2012. Added to this good performance at
the sector, the fact that during the month of November, the World Organization for
Animal Health (OIE) restituted Paraguay´s sanitary status as “country free of food
and mouth disease with vaccination” that had been suspended in September,
2011 after the outbreak of the illness. This constituted excellent news for the whole
beef chain: producers, cold storage plants, financial institutions, among others.
The main effects are:
• Steps may be restarted to export to the premium markets of the European
Union again.
• Exports to Taiwan could be reassume
• Paraguay´s sanitary rating could improve. Rating is done by the Chile
Agricultural Service (SAG), and the rating could go from level 3, to level 2.
With this, we could export beef sub products to that country
32
It is estimated that the current processing capacity is of approximately 13,800 tons
daily. The launching of the soy campaign for 2013/14 took place at the beginning
of October. To date, most of the sowing work is finalized, and it is estimated that
as from the first half of January, the first harvesting would take place. According to
estimates, the sowing area would register an increase of about 3.0% with a yield
of 2.8 million tons per hectare. Depending on the climatic phenomenon that is
currently over the region, production could again reach 9 million tons, this would
greatly depend on the rains at the times of flowering and seed loading.
By the end of November, beef exports total 232 thousand tons, the equivalent of
US$ 951 million. These amounts already exceed 2010´s totals that had been a
record, both in volume and in value.
Russia continues being the principal export market for the country, concentrating
57% of total deliveries. The country imports principally frozen beef, and Paraguay
is the country selling at the lowest price within our region.
Deliveries of cooled beef were the ones that showed the largest growth, with Brazil
as the principal market, although closely followed by Chile, which purchase are
showing sustained increase, above all in the second semester. It is expected that
in the following months, exports of cooled beef will gain ground, above all because
of the increase in deliveries to Chile that would again be the principal destination
of this type of meat.
The increase in production expected for 2014 and the consequent increase in
volumes exported at better prices, derived of the re-entry into better paying
markets, could result in exports levels that would exceed US$ 1.1 billion.
33
CONSTRUCTION
The Construction sector begun to recover during the second half of 2012, with the
beginning of important works of infrastructure by the public sector, and the increase
in activity in the private sector, highlighting construction of corporate offices. During
the first quarter of this year, the inter annual growth was of 14.1% and 12.0% in the
second quarter.
However, by the midyear the sector begun to slow down, as reflected in the lower
sales of cement and growth of only 4.3% in the third quarter. Nonetheless, the
fourth quarter would be recovering in dynamics with the reactivation of several
works.
OTHER SECTORS
As an indicator of the performance in the transportation sector, one may take the
freights related to Agriculture and Cattle ranching, growing at an inter annual rate
of 30% during the period from January to November of this year, compared with
the same period of 2012.
With regards to Commerce, as of the closing of November of this year, sales at
supermarkets fell by about 14% versus the same period of 2012. Great part of this
fall is related with the increase of smuggling of consumer products from Argentina,
with a negative impact in commerce at the local level, as their sales of several items
are reduced.
34
FISCAL SECTOR
The total of revenues of the Central Administration in the period from January to
October reaches Gs. 23.1 trillion. Comparing this amount with what was collected in
the same period of the previous year; it is observed that this fiscal year experiences
positive variation of about 0.7%. It is important to outline that the Resources from
the Public Credit grew by 175% and Institutional Resources fell by 26%.
With regards to Tax Revenues, during the period from January to October of
2013, they amounted to Gs. 12 trillion, or 5% more than in 2012. The increase
had the impulse mostly in the receipts by the Under Secretary of State for Taxation
(Subsecretaria de Estado de Tributación - SET), collecting Gs. 6.4 trillion, an
increase of more than 9% over the previous year. The collections by the National
Customs Direction (Dirección Nacional de Aduanas) totaled Gs. 5.7 trillion, or 1%
over the same period of 2012.
Expenses executed by the Central Administration in the period from January to
October total Gs. 18.6 trillion, representing an increase of 8% compared with
2012. MSPyBS, MOPC and MEC present percentage increases in the execution
of their respective budgets, of 2%, 31% and 8%. In analyzing by type of expense,
personal services rose by 12% and investments 25%.
35
Execution – Central Administration
Concept
(Millions of Gs)
Jan - Oct 2012
Var. % in execution
Jan - Oct 2013
8.084.768
9.074.313
12,24%
Non Personal Services
676.859
599.821
-11,38%
Consumer goods
856.069
732.928
-14,38%
Physical Investment
1.093.769
1.362.674
24,59%
Service of the Public Debt
1.257.537
1.157.215
-7,98%
Transfers
5.149.337
5.542.154
7,63%
Others
99.236
89.983
-9,32%
TOTAL
17.217.575
18.559.088
7,79%
Personal Services
Source: Elaborated by Investor Economía based on data from MH
The project for the Nation´s General Budget for 2014 was presented in September.
Total expenses budgeted amount to Gs. 57 trillion, the equivalent to about US$
12.7 billion, representing 39.1% of the projected GDP of next year. In order to
prepare the PGN 2014 the government estimated that next year the economy will
grow by 8.5%, inflation will be about 4.8% and the exchange rate of the US dollar
will be Guaranies 4,488. The project of PGN 2014 is lower by 1.9% to the one
approved for 2013. On the side of revenues, an increase of 15.4% is budgeted in
tax revenues. Current expenses by the Central Administration will grow by 1.7%.
According to the project, the PGN 2014 carries a deficit of the equivalent of 2.2% of
GDP; to finance this result, it is anticipated to have disbursements of foreign loans
and the issuance of treasury Bonds, as well as the use of funds originating from
sovereign bonds placed abroad.
The PGN 2014 was sanctioned by med December, with several modifications to
the initial project. The same is to be vetoed or promulgated by the President.
The balance of the foreign debt as of the closing of October was of US$ 2.6 billion,
or 23% more than one year before. In terms of internal indebtedness, in 2013 the
Ministry of Finance issued bonds in March, June, September, October, November,
and December, for some Gs. 1.1 trillion.
36
In the last months, three important laws for the economy have been approved: Law
on Public-Private Alliance, Law in Fiscal Responsibility, and the Law on Agriculture
Income.
EXTERNAL SECTOR
TRADE BALANCE
In the months from January to November of 2013, foreign trade showed a very
good performance, with great improvements in comparison with the previous year.
In absolute terms, growth in exports widely exceeded that of imports, resulting in a
decrease of 52% in the Trade Balance deficit, achieving a level of U$S -1.4 billion.
It is worth to mention that Paraguay has improved its position versus all of its trading
partners, except for Brazil.
Jan - Nov
2009
Jan - Nov
2010
Jan - Nov
2011
Jan - Nov
2012
Jan - Nov
2013
Var %
2013 /12
Exports
4.734
5.995
7.272
6.762
8.894
31,5%
Imports
5.829
8.424
10.626
9.805
10.350
5,6%
Trade Balance
-1.095
-2.429
-3.354
-3.043
-1.456
-52,2%
Concept (millions of US$)
Source: Elaborated by Investor Economía based on data from BCP
37
EXPORTS
2013 has been a historical year for the country´s exports, having exceeded the
levels reached in previous years for the soy and beef chains. From January to
November, the soy chain has improved by 63% compared with the results obtained
in the first 11 months of 2012.
With the opening of new grain processing plants, apart from the good year for the
soy complex, exports of soy oil and flour have increased by 260% and 400% in
terms of value, respectively, with remittances exceeding two million tons.
It is worth to outline that cultivation of wheat, after finishing year 2012 with excellent
harvesting levels and foreign sales, was hardly hit by the climate. As of November
of 2013, exports decreased by 55% in value and by 66% in volume, resulting in
the worst campaign since 2008.
Bovine beef, on the other side, has grown by 30% in terms of value and volume,
and it is expected that the year will end with exports exceeding a billion dollars, a
record for Paraguay cattle rising. The recent reopening of the Chilean market has
given impulse to a rise in prices, reaching 4,500 U$S/Ton as of November of 2013.
38
Exports of cooled beef have demonstrated good dynamics, with prices in
November of about 5,500 U$S/Ton, or 15.5% above the levels at the beginning
of the year. At the same time, during the first 11 months of the year, remittances
abroad of this type of beef increased by 97% in relation with the same period of
2012. On the other side, exports of frozen beef have increased by 20% in volume,
reaching average prices of 4,400 U$S/Ton, an increase of 10.3% versus the first
month of 2013.
IMPORTS
On the side of imports, the period from January to November of 2013 recorded an
increase of 5.6% versus the same period in the previous year, greatly due to an
increase of 13.2% in Capital Assets.
Within such classification, the largest increases were in Agricultural Machinery
(102.5%), a result of the good crops in 2013 and the perspectives for the next
campaign. Devices and Machinery in the Construction sector also exhibited
considerable growth. Consumer Goods and Intermediate Goods showed slight
progress, growing by 0.9% and 2.2% respectively.
39
FOREIGN EXCHANGE RATE
Since the end of 2012 practically all projections coincided that in 2013, the rate
of exchange of the Guaraní versus the Dollar would be pressured downwards at
least in the first semester, an important inflow of currency was expected, from the
rebound of exports, the placement of bonds, royalties from the bi-national entities,
and larger foreign investment. However, since the second half of March, the Dollar
interrupts its fall and begins to show some upwards trend, which becomes firmer
in April. It is important to remember that the rate of exchange had been falling
since the last quarter of 2012, a period in which the increase in the demand for
Dollars for imports was lower than expected, and the offer of Dollars was higher
than ordinary. This caused that 2013 begin with a rate of exchange of 4,350 Gs/
US$, which is law in comparison with other years. The fall of the Dollar thorough
January and February reached a minimum of 3,970 Gs/US$, a rate that was not
reached since 2011.
But then, there was the change in trend, and the Dollar became to strengthen.
This was due to international factors, but also, at the local level, the demand for
Dollars was larger than the offer, due to the fact that although exports were growing
versus 2012, the inflow of currency occurred later than usual due to problems with
logistics in the ports of Brazil and Argentina, where our exports are re-shipped
to their final destination, thus causing the delay. There was also a lower inflow of
currency originating in border trading with Brazil, due to the depreciation of the
40
Real and the measures taken by this country to give impulse to its economy, with
a negative impact in this line of business. Added to this, the rise in the outflow of
currency to Argentina given the restrictions imposed by its government.
The rate of exchange became stable as from mid-June, fluctuating around 4,480
Gs./US$ until the end of November.
At the end of November, the BCP announced that it would not intervene in the
currency market in December, as it had been doing about twice a week, but that
it would be paying attention and would be ready to intervene in case of excessive
volatility.
The exchange rate remained stable during the first week of December, but
then starter to go upwards. This became accentuated by mid month, with the
announcement t of the Federal Reserve that the cut in monetary stimulus would
begin in January of 2014. This made that the people purchase dollars, adding to
the larger demand normal in that season of the year 2 and the lack of intervention
by the BCP.
The Real Rate of Exchange (tipo de cambio real - TCR), comparing the data
of October 2013 and October 2012, the Guarani was strengthened versus the
Argentinean Peso (11%), the Brazilian Real (6%), the U.S. dollar (4%) and, in a
lesser degree, the Euro (0.3%).
2. Demand of foreign currency for vacations, payment of imports, and lower inflow of currency.
41
MONETARY AND FINANCIAL SECTOR
MONETARY SECTOR
In the period from January to November of this year, inflation remained under
control and with a downward trend. Accrued inflation in the year reaches 3.7%,
and inter annual inflation is of 4.4%. Subjacent inflation follows the same trend as
total inflation. The principal price increases in the first months of the year were given
in Rentals and Goods and Services related to the maintenance of homes, and
Construction. Since mid year, a larger pressure begun to be observed in foods,
such as beef, due to the lower offer of cattle and the larger dynamics of exports;
flour and breads also rose, caused by the higher international price of wheat.
Although a larger pressure on prices occur normally in December, given current
levels, it can be expected that inflation as of the closing of the year will be at levels
below the center of the goal set by the BCP (5% +/- 2.5%).
A larger pressure on prices can be expected for 2013. One of the reasons would
be that as beef exports become again oriented to the Chilean market, and prices
paid increase, this would cause that local prices also rise. Also, an almost certain
increase in the price of transportation fares and an eventual increase in the price of
Gasoil could press inflation ever upwards.
42
On the side of the demand for money, the growth rate of monetary aggregates has
been slowing since mid year. M1 (notes and coins outstanding, plus deposits at
sight), as of the closing of October, was growing at a rate of 6.6%.
BCP has as its principal goal to maintain prices within the range as established
as goal (5% +-2.5%), and to achieve this, it withdraws Guaranies from the market
each time it considers necessary, either via the placement of Monetary Regulation
Drafts (Letras de Regulación Monetaria - LRM) or through the sale of Dollars. The
balance of LRM as of December 19 was of Gs. 5.1 trillion, and the average rate
paid was of 5.4%.
Recently, the BCP decided to raise its monetary policy rate from 5.5 to 6%, as it
considers that there are inflationary pressures that will occur during the first months
of 2014,such as adjustments in certain prices, and the eventual increase in the
exchange rate due to the reduction of monetary stimulus in the U.S. This measure
might not contribute a lot in terms of price control, as the pressure on the same
would be given from the side of offer, and not from demand.
FINANCIAL SECTOR
As of the end of October, deposits amounted to Gs. 54.4 trillion (some US$
12.1 billion), which exceeds by 18% the value of one year before in nominal terms,
and 13% in real terms. The balance of net credits in the financial system (banks
and finance companies) amounted to Gs. 47.4 trillion (some US$ 10.5 billion), or
17% higher than the value of one year before in nominal terms, and 12% in real
terms.
In terms of banking system indicators, the liquidity ratios presented increases
with respect to October 2012, increasing the relation between Availabilities and
Deposits, from 44% to 45%. The ratio between Availabilities and Liabilities grew
by 1%, reaching a level of 37%. The profitability rations presented positive results.
The relation between Earnings and Assets (ROA) for banks remained at 2.6, while
the ratio of Earnings versus Net Equity (ROE) reached 30%, an increase of 1.4%.
43
In terms of interest rates, in October 2013 the average of asset interest rates in
national currency at the banks was 21.9%, lower than the 22.8% recorded one
year before, but slightly higher than the 21.3% of December 2012. The average
of liabilities rates in Guaranies was 5.6%, below the 7.6 and 7.0% of October and
December of 2012 respectively. In terms of foreign currency rates, the average
of assets rates in October was 8.9%, below the 9.5% of October, and 9.3% of
December, 2012. In terms of liabilities rates, the average in Dollars had a reduction
of 0.5% inter annually, from 3.9 to 2.4% in one year.
44
The total average arrears in payment in the financial system has increased during
the first semester, but as of October, it was of 2.4% a similar figure with that of 2.5%
of one year earlier. In the case of finance companies, the figure was 4.8%, and for
banks 2.2%, both below the figures of one year earlier.
45
PERSPECTIVES FOR 2014
• The country´s perspectives for Agricultural production are good. In the case of
soybeans, the critical point will be the months of January, and February, when
adequate levels of humidity will be fundamental.
• The price of the oilseed will depend on the evolution of climate and the production
in the region.
• The global beef market would have an increasing international demand, above all
in emerging countries. In our country, the immediate goal would be to have access
to more competitive markets, that is, to export aiming at differentiated prices, more
than at export volumes.
• The increase in the production of beef expected for 2014 and the increase in
volumes exported at better prices, derived from the re-entry to better paying
markets, could result in export levels exceeding US$ 1.1 billion.
• In 2014, consumption would have a similar behavior with this year, as no important
changes are expected in the determining factors.
• Considering the above, it is estimated that in 2014 the GDP would grow at more
moderate rates, around 5.4% ± 2%.
• Larger pressure would occur on prices, but inflation would close the year within the
range as established by the Central Bank as target (5% ± 2.5%).
• It can be expected that exports will maintain good rhythm, given the good
Agriculturel season expected, and that remittances of beef to Chile will continue to
grow.
• Foreign exchange differences at the regional level would continue, the same as
uncertainty regarding the future of Argentina and the expansive measures in Brazil.
• The rate of exchange could have larger pressures upwards, above all during the
second semester. It is estimated that the year would close at 4,840 ± 200 Gs./US$.
• Larger public investments are expected in infrastructure, affecting the dynamics of
consumption. It is worth to remember that the US$ 500 million from the international
issuance of bonds of January 2013 have not yet been used.
46
47
48
2013
Face to Community
49
DOCUMENTARY “ELIZA LYNCH – QUEEN OF PARAGUAY”
The debut in Paraguay, as well as the filming of the documentary film,
was sponsored by Sudameris Bank. The occasion was attended by
special guests at the Great Theater of the Banco Central, on April
10, 2013.
Directed by renowned Irish director and actor Alan Gilsenan, this
powerful documentary “Eliza Lynch – Queen of Paraguay” tells the
history of this epic catastrophe through the eyes of Eliza Lynch.
Filmed in various locations in Paraguay, Argentina, Brazil, France,
England, and in the birthplace of Eliza, Ireland, during 2012, the
final scenes of “ELIZA LYNCH – Queen of Paraguay” were filmed in
February of 2013 with Maria Doyle Kennedy, methodically, and at
times disturbing, encompassing Eliza Lynch´s dynamic character.
Based on 18 years of original research through ten countries by
two Irish men, former diplomat Michael Lillis and historian Professor
Ronan Fanning (his book “The lives of Elisa Lynch or Calumnia
(Slander) in its Spanish version” is the basis for this documentary),
“ELIZA LYNCH – Queen of Paraguay’, reveals for the first time the
human trajectory of Eliza´s turbulent life.
50
ONE TREE, ONE LIFE
Sponsorship of public space “Sports Complex Arsenio Erico”.
Committed to social and environmental responsibility in our country,
and in support to project “Asuncion, Green Capital” of the Municipality
of Asuncion, the Bank executed a sponsorship agreement with the
Municipality, which mission is the arborization and maintenance of
four modules at the central area when the “Sports Complex Arsenio
Erico” is located, on Avenida Ita Ybaté (21 Proyectadas). Voluntary
employees form the bank, together with neighbors and neighborhood
commissions, undertook the planting of 80 “lapacho” trees through a
length of one km around the bicycle paths in all four modules.
51
DAY OF THE CHILD, AT SCHOOL “JOSE MARIA VELAZ”
For the fourth consecutive year,
the bank celebrated Child´s day
at the school “Escuela Jose Maria
Velaz, of the “Fe y Alegria” (Faith
and Happyness) association.
In this opportunity, some 400 from
Preschool until 6th grade had fun
with a varied show with Clowns,
painted faces, and elastic bed,
and a snack in celebration of their
day.
FE Y ALEGRÍA
In 2013, the same as in previous years, Sudameris Bank gave
support to the sale of raffles of the Faith and Happyness Association,
distributing them at all of its branches to its officers and clients, thus
achieving larger reach in the country-level campaign.
52
PARAGUAY READS – BOOKS DONATION
Within the framework of social
commitment and support to
education, the bank, in an
agreement with the “Paraguay
Reads”
program
of
the
Fundación El Lector, donated
8,568 books to 36 educational
institutions of scarce resources,
15 of which belong to the
Asociación Fe y Alegría.
53
“DRAW A TREE”
CAMPAIGN
For the fourth consecutive
year, Sudameris Bank and the
“Fundación A Todo Pulmón
Paraguay respira” organized the
contest “Draw a Tree”, seeking to
create awareness from childhood
regarding the importance of
forests and the preservation of
natural resources, addressed to
boys and girls aged from 7 to 13.
The campaign achieved the
participation of an average of
2500 drawings form boys and
girls thorough the national territory,
who sent their drawings to the
contest for a price consisting of a
full paid trip to London, with his or
her father and mother.
54
CHRISTMAS
BY YOUR SIDE
As a tradition already, and
transmitting the Christmas spirit,
Sudameris Bank gifted the
citizenry with an emblematic
Christmas tree located at the
“Plaza de la Democracia” in
the city of Asuncion, which is
sponsored by the bank.
Sponsorship has as its object
the revitalization and equipment
of the “Plaza de la Democracia”
(Democracy Square), for the
enhancement of environmental
conditions and esthetics of the
place in order to improve its
functionality.
55
56
Prevention of Money Laundering
and the Financing of Terrorism
The Directors, Managers and Employees of Sudameris Bank are committed to the
combat against money laundering and the financing of terrorism, and they focus
their prevention practices and policies in that direction, as applied to the banks’
actions.
In this context, Sudameris Bank has adequate preventive and technological tools for
the application of the norms in force and associated healthy banking practices. The
norm is their updating and ongoing review in order to ensure, both to the institution
and its clients, as to operations framed in ethical and professional commitments
related with the prevention of money laundering and the financing of terrorism.
The Bank´s Management, through its Compliance Unit, offers its employees the
necessary guides and tools for the handling of all of the bank´s operations in order
to comply with national requirements, all of this accompanied by an intensive
training and updating plan both at the local and international levels.
Compliance Unit
Sudameris Bank S.A.E.C.A.
57
Branch Encarnación
58
Presentation of Results
59
Dear Shareholders,
The following is a summary of the administration and results of
Sudameris Bank in year 2013.
During 2013, our country experienced growth in its GDP of the order
of 13.6% according to preliminary data, leading growth in Latin
America, and reflecting Paraguay´s largest growth in the last ten
years. This development had Agriculture as its principal impulse,
which grew by 51.8%. Cattle ranching contributed with inter annual
growth of 8.0% as a result of high levels of kill and the recovery
of export quotas. The Construction sector also grew during the
two first quarters by over 10%, but had an important slowdown in
the third quarter. Among other sectors that exhibited good growth
during the second quarter are: Industry, and Services, in the last
case with highlight in financial services, commerce, transportation,
and communications.
It is also worth considering that the same year had other two
condiments opposed to growth, such as the fact of it being a
presidential election year, installing a certain degree of uncertainty
in terms of economic movement; and another one, very relevant,
would correspond to the retraction in consumption derived, on one
side, from the gap existing between the official and parallel Dollar in
Argentina, which gave impulse to the smuggling of products towards
our country, causing a negative impact in commerce at the local
level, and on the other side, the depreciation of the real, reducing
the level of purchases by Brazilians, principally in the border zone.
One other factor that contributed to the slowness in consumption is
the deceleration of credit, given the high level of indebtedness that
consumers are already experiencing
In visiting our principal numbers achieved in 2013, and in terms of
growth, the total of our Commercial Placements reached Gs. 2.9
billion, or 25% above the previous year. This percentage variation
was larger with respect of the growth of placements in the banking
system for the year, resulting in a larger market share, which
reached 6.18%. With these levels, and considering the number of
Placements, we remain as the sixth bank in the Paraguayan financial
system, shortening distances by 0.30 percentage points of market
share with the bank placed in the fifth position.
60
Gustavo Cartes
Vice President
General Manager
Branch Luque
In addition to growth, it is worth to highlight that the year´s focus
was to emphasize in segmentation, as provided for in our strategic
plan, to aim towards a portfolio more oriented towards smaller size
Companies, and Persons, evidenced in the proportions of portfolio
by segment at the closing of the fiscal year.
In this sense, the focus on the Persons segment contributed,
specifically in those to whom our bank undertakes in salary
payments, and for which group an adequate program was that of
Agile Loans, quite accepted by clients, and which is reflected in the
growth levels (97%) during this year.
61
In terms of Deposits, we reached Gs. 3.0 billion, representing growth
of 24% versus 2012. This growth, slightly above the systems, resulted
in greater participation in the deposits market, and maintained us
as the seventh bank in the system, helping in reducing by 0.20
percentage points the distance with the bank immediately above us
in terms of market share.
Within the same line, we are proud to highlight the trust deposited
by our clients at the time of making long term deposits. Our levels
of deposits at term grew 37% in 2013, reflecting levels that went
from 44% in 2012 to 48% in 2013 (system average: 40%), taking
into account the proportion of deposits at term with respect with
total deposits. We consider that this situation places us in an
advantageous position with respect to competition that will allow us
to continue supporting current and future clients with longer term
financing, which are very appreciated in our environment.
62
Sucursal Santa Rita
Investments were not a stranger in 2013, since we must consider,
among others, the construction of an Ongoing Training Center, so
that employees at our bank who have higher technical, operational
and business expertise may constantly train lesser experienced
ones by means of courses and seminars scheduled in an annual
program; and also, the enlargement of our Villa Morra Branch, which
since the end of 2013 has a street-level plant with all necessary
conveniences for operations with our clients, while the higher floor,
already existing before, was adjusted so that it may be used for the
business area.
In that same order, we must mention the construction of the Client
Attention Center, that will allow our clients to deal in most of the
operations available in our branches, but with the added value of
doing so in extended hours, until 17:00, and even on Saturdays.
We are convinced that this will reinforce our ongoing commitment
to excellent service to our clients. In this respect, we anticipate
establishing strategic alliances with commercial firms that will allow
us to set more Attention Centers in strategic locations.
We must also mention that during 2013 a dream has come true:
that of processing a credit card application while the customer is
shopping.
63
And this was possible thanks to agreements with some Supermarkets
within whose premises we asked to place an attention center with
connection to the Bank, where two employees are in charge of
processing applications under certain prudent risk criteria in relation
to the lines granted, and when the client finishes his shopping, he
is delivered the plastic in order to be able to make payment with it.
All of these very positive initiatives, aimed at comfort and services,
on the other side, affected our efficiency index, which ended the
year at 66.6%, slightly above the level of 2012.
At the time of making comments regarding the 2013 earnings, it
is also worth considering the above mentioned investments and
that in 2013 we had a very competitive financial system regarding
prices and services, and which affected us more than other entities
as we have a corporate clients´ portfolio that is very attractive to the
competition.
In this respect, our Fiscal Year Earnings of Gs. 60.4 billion was
slightly lower than the one generated the year before, due to the
smaller financial margins, and that our growth took place principally
during the second semester.
64
Another important achievement of December, 2013, was the
issuance and placement of Subordinated Bonds amounting to USD
10 million, the first of two series which global value is of USD 20
million. The buyer of the full issuance was Dutch multilateral FMO,
a fact that filled us with satisfaction due to the fact that a company
that represents a foreign government deposits its trust in our Bank.
With this bond issuance, our Bank has more resources and greater
capability to grow on the current client base, besides the possibility
of reaching new market segments that imply greater capital input.
Before culminating this summary, we may say that during a year of
growth, but with lots of competition, our Bank achieved larger market
shares both in placements, and in deposits, we continue with our
strategy to build a Bank of more Persons and Companies, we were
entrepreneurs with clear demonstrations of better services for our
clients, obtained more resources in order to continue growing, and
even if we did not obtain a yield larger than the one of a year before,
we are certain that what was done in 2013 will generate greater
benefits and indicators since the first month of 2014.
Finally, my gratitude to the Board of Directors and Shareholders
for the trust deposited in me to collaborate from the General
Management to take Sudameris Bank to positions of more relevance,
better efficiencies, and larger benefits.
65
66
Centro de Atención al Cliente
67
68
as of December 31
EY
Building a Better
Working World
Ernst & Young – Paraguay
Auditors & Business Consultants
Av. Mcal. Lopez 3794,
Edif. Citicenter, 6th floor
Asuncion – Paraguay
Tel. +595 21 664 308
Fax +595 21 608985
ey.com
Opinion of the External Auditors
Messrs.
President, and Members of the Board of Directors
1.We have audited the accompanying accounting statements of Sudameris Bank
S.A.E.C.A., comprising the Equity Situation Statement as of December 31, 2013 and
2012, and the corresponding Statements of Results, Cash Flow Statements, and
Statements of the Evolution of Net Equity, for the fiscal years ended on those dates, as
well as a summary of the important control policies and other clarifying notes attached
thereto.
Management´s responsibility for the accounting statements
2.The Bank´s management is responsible for the preparation and reasonable presentation
of the accounting statements in accordance with the norms, regulations and accounting
instructions of the Banco Central del Paraguay. This responsibility includes: the design,
implementation and maintenance of internal control relevant to the preparation and
reasonable presentation of the accounting statements so that these are free from
misrepresentations of relative importance, either due to fraud or error, selecting and
applying appropriate accounting policies and making accounting estimates that are
reasonable under the circunstantes.
Responsibility of the Auditor
3.Our responsibility is to express an opinion on the accounting statements based on our
audits. We perform our audit in accordance with the standards for independent audit
established in the “Manual of Norms and Regulations for the Independent Audit of Financial
Entities”, approved by the Superintendence of Banks as per Resolution No. SB.SG.
313/01 of 30.11.01, and with generally accepted audit norms in Paraguay. These norms
require that we comply with certain ethical principles and plan and perform the audit in
order to acquire reasonable assurance regarding whether the accounting statements are
free from misrepresentations of relative importance.
An audit implies to undertake procedures in order to obtain audit evidences on the amounts
and disclosures in the accounting statements. The procedures selected depend on the
auditor´s judgment, including the evaluation of the risks of misrepresentation of relative
importance of the financial statements, either due to fraud or error. In making these risk
evaluations, the auditor considers the internal control in force relevant to the preparation
and reasonable presentation of the financial statements by the Entity, in order to design
the audit procedures that are appropriate under the circumstances, but not in order to
express an opinion on the effectiveness of the Entity´s internal control.
II
An audit also includes evaluating the adequacy of the accounting policies used and
the reasonability of the accounting estimates made by the administration, as well as to
evaluate the general presentation of the financial statements. We believe that the evidence
we have obtained are sufficient and appropriate to provide a basis for our audit opinion.
Opinion
4.In our opinion, the accounting statements mentioned under the first paragraph reasonably
present, with respect to all that is important, the patrimonial and financiall situation
of Sudameris Bank S.A.E.C.A., as of December 31, 2013 and 2012, the results of
operations and cash flows for the fiscal years ended on such dates, in accordance with
norms, regulations and accounting instructions from the Banco Central del Paraguay, and
in those aspects not regulated by them, with Generally Accepted Accounting Norms in
Paraguay, as exposed in Note B.2 to the accounting statements.
Report on other legal and regulatory requirements
5.In compliance with what is prescribed in Resolution of the Under Secretary of State for
Taxation (SET) No. 20 and its updates regulating Article No. 33 of Law 2421/04 and within
the framework of our audit examination to the accounting statements of Sudameris Bank
S.A.E.C.A. as of December 31, 2013, which is exhibited in the previous paragraphs, we
report as follows:
a)Sudameris Bank S.A.E.C.A. maintains its records in accordance with what is prescribed
in Law 125/91, Law 2421/04, and their regulations.
b)As of the date of this report, the Bank has complied with the payments and/or has
provisioned its tax obligations related with fiscal year ended on December 31, 2013.
c)What is prescribed in Resolution (SET) No. 20 and its updates, regulating Article 33 of Law
2421/04, has been complied with, there being no material tax aspects to be mentioned.
Asuncion, Paraguay, February 1, 2014.
(Signed)
Lic. Antonio F. Britez Balzarini
Partner
Ernst & Young Paraguay
Auditors and Business Consultants
Res. SB. SG. No. 00393/03
Professional Registry No. C-92
Firm Registry No. F-21. Res. No.
956/03
Registration CNV AE No. 028
III
EQUITY SITUATION STATEMENT AS OF DECEMBER 31, 2013
For the period between January 1, and December 31, 2013
(Expressed in Guaraníes)
ACTIVO
31/12/13
31/12/12
Available
949.462.137.154
717.359.945.776
Cash
184.234.203.167
149.664.312.162
Banco Central del Paraguay (Note C.11)
656.588.923.168
425.643.920.059
Other Financial Institutions
108.638.086.788
141.821.306.732
221.802.922
239.175.372
(220.878.891)
(8.768.549)
PUBLIC AND PRIVATE SECURITIES (NOTE C.3)
163.817.635.174
217.891.494.242
CREDITS OUTSTANDING,
FINANCIAL INTERMEDIATION FINANCIAL SECTOR (Note C.5)
316.413.895.865
257.879.075.466
180.151.066.917
188.798.226.495
Operations pending Settlement
138.920.646.277
68.805.000.000
2.334.150.364
3.842.458.218
(4.991.967.693)
(3.566.609.247)
CREDITS OUTSTANDING,
FINANCIAL INTERMEDIATION NON FINANCIAL SECTOR (Note C.5)
2.695.542.771.790
2.150.119.860.624
Loans
2.676.321.417.013
2.135.072.050.945
5.180.310.811
17.021.410.060
(131.114.178)
(156.486)
45.684.723.822
35.467.952.335
(31.512.565.678)
(37.441.396.230)
OTHER CREDITS (Note C.17)
12.689.494.458
13.214.998.773
CREDITS OVERDUE, FINANCIAL INTERM, (Note C.5)
35.145.847.621
8.633.221.148
Loans to the Non Financial Sector
25.464.638.842
4.229.743.260
417.907.477
296.973.371
43.641.968.661
27.185.799.575
Obligors, Accrued Financial products
Previsions (Note C.6)
Unrealized Valuation Earnings
Obligors in Regularization plan
Credits in Arrears
Unrealized Valuation Earnings
IV
(146.817.285)
(23.829)
2.720.659.415
609.871.209
(36.952.509.489)
(23.689.142.438)
INVESTMENTS (Note C.7)
Assets acquired in Credit Recovery
Other Investments
Income from Investments
USABLE ASSETS (Note C.8)
DEFERRED CHARGES (Note C.9)
TOTAL ASSETS
1.956.295.496
1.960.207.200
16.868.464.212
17.018.066.865
2.844.425.000
2.844.425.000
-
-
(17.756.593.716)
(17.902.284.665)
47.965.265.085
47.424.720.186
2.458.367.011
2.790.275.236
4.225.451.709.654
3.417.273.798.651
V
LIABILITIES
31/12/2013
31/12/2012
OBLIGATIONS, FINANCIAL INTERMEDIATION FINANCIAL SECTOR
830.572.495.288
604.763.321.397
160.427.120.091
83.349.721.186
Correspondents, Deferred documentary credits
9.051.476.146
3.919.491.249
141.072.101.565
63.360.000.000
Borrowings from Financial Entities
512.543.093.119
448.420.995.308
7.478.704.367
5.713.113.654
OBLIGATIONS, FINANCIAL INTERMEDIATION NON FINANCIAL SECTOR
2.953.846.812.262
2.407.576.017.811
Deposits – Private Sector
2.490.062.852.770
2.036.397.256.144
4.867.084.158
2.237.161.674
Creditors, Accrued Financial charges
Other Obligations, Financial Intermediation
5.278.571.641
18.151.650.990
387.524.488.011
339.082.880.835
Obligations or Debentures and Bonds Issued Outstanding (Note C.10)
45.850.000.000
-
Creditors, Accrued Financial charges
20.263.815.682
11.707.068.168
OTHER OBLIGATIONS
25.962.841.062
21.350.331.865
Deposits – Public Sector
Fiscal Creditors
5.576.203.250
5.601.484.527
Corporate Creditors
955.026.104
970.093.980
Dividends payable
987.117.420
669.165.298
18.444.494.288
14.109.588.060
7.602.594.516
7.678.297.834
3.817.984.743.128
3.041.367.968.907
Other Obligations, Others (Note C.18)
PROVISIONS
TOTAL LIABILITIES
VI
NET EQUITY
PAID IN CAPITAL (Nota B.5)
198.776.515.000
198.776.515.000
ADJUSTMENTS TO EQUITY
33.827.532.390
32.069.385.095
LEGAL RESERVE
73.728.326.883
61.520.658.339
928.588
928.588
ACCRUED RESULTS
40.730.674.178
22.500.000.000
FISCAL YEAR RESULT
60.402.989.487
61.038.342.722
- For legal reserve
12.080.597.897
12.207.668.544
- Net to be distributed
48.322.391.590
48.830.674.178
TOTAL NET EQUITY
407.466.966.526
375.905.829.744
4.225.451.709.654
3.417.273.798.651
STATUTORY RESERVES
TOTAL LIABILITIES AND NET EQUITY
CONTINGENCY AND MEMORANDUM ACCOUNTS
31/12/2013
31/12/2012
Total Contingency Accounts (Note E)
558.999.643.658
493.857.769.110
Guarantees granted
380.975.865.736
332.880.620.660
Documentary Credits
25.452.434.862
29.326.701.415
152.571.343.060
131.650.447.035
19.636.282.000.390
15.500.532.436.473
Lines of Credit
Total Memorandum Accounts
Accompanying Notes A through I form integral part of these accounting statements
VII
STATEMENT OF RESULTS,
FISCAL YEAR ENDED ON DECEMBER 31, 2013
FINANCIAL INCOME
From Credits Outstanding Financial Intermediation Financial Sector
From Credits Outstanding, Financial Intermediation Non Financial Sector
31/12/2012
309.530.242.675
260.718.156.110
31.071.545.308
21.915.197.395
269.616.099.986
234.437.098.219
From Credits overdue, Financial Intermediation
5.378.488.689
3.581.882.231
From Valuation of financial Assets and Liabilities in foreign currency - Net (Note F.2)
1.755.505.337
-
Quotation differences, Public and Private Securities
1.708.603.355
783.978.265
(138.896.648.318)
(107.007.679.788)
(29.063.614.527)
(26.721.876.489)
(109.833.033.791)
(78.550.381.025)
-
(1.735.422.274)
170.633.594.357
153.710.476.322
FINANCIAL LOSSES
From Obligations, Financial Sector
From Obligations – Non Financial Sector
From Valuation of Financial Assets and Liabilities in foreign currency - Net (Note F.2)
FINANCIAL RESULT BEFORE PREVISIONS
PREVISIONS
(10.227.967.047)
(7.015.123.521)
(312.643.971.648)
(213.148.013.592)
Disaffecting previsions (Note c.6)
302.416.004.601
206.132.890.071
FINANCIAL RESULT AFTER PREVISIONS
160.405.627.310
146.695.352.801
RESULT FROM SERVICES
29.359.460.690
31.632.047.743
Income from Services
32.354.268.022
34.063.930.644
Losses from Services
(2.994.807.332)
(2.431.882.901)
Constitution of Previsions (Note c.6)
GROSS RESULT - EARNINGS
189.765.088.000
178.327.400.544
OTHER OPERATIONAL EARNINGS
26.732.356.747
71.459.258.522
Earnings from Other Credits
11.068.778.582
9.589.982.956
Results from Exchange and Arbitrage Operations
15.662.578.165
59.250.226.020
1.000.000
3.500.000
-
2.615.549.546
Income from Assets
From valuation of Other Assets and Liabilities
in foreign currency - Net (Note E.2)
VIII
31/12/2013
OTHER OPERATIONAL LOSSES
(154.363.279.982)
(187.212.187.168)
Retributions to Personnel and Social Charges
(71.468.206.773)
(63.489.178.425)
General Expenses
(59.743.122.185)
(64.278.926.984)
Depreciation of Usable Assets
(6.743.616.175)
(6.762.648.293)
Amortization of Deferred Charges
(1.378.130.964)
(747.016.437)
From Valuation of Other Assets and Liabilities in foreign currency - Net (Note F.2)
(1.635.735.375)
-
(13.394.468.510)
(51.934.417.029)
62.134.164.765
62.574.471.898
EXTRAORDINARY RESULTS
2.681.461.807
3.153.212.433
Extraordinary Earnings (Note F.4)
5.805.959.874
7.912.779.719
(3.124.498.067)
(4.759.567.286)
(144.551.708)
(150.382.989)
Others (Note F.3)
NET OPERATIONAL RESULT - EARNINGS
Extraordinary Losses (Note F.4)
ADJUSTMENT TO PREVIOUS YEAR’S RESULTS
Earnings (Note F.5)
1.994.297.188
1.524.710.676
Losses (Note F.5)
(2.138.848.896)
(1.675.093.665)
FISCAL YEAR RESULT BEFORE INCOME TAX
64.671.074.864
65.577.301.342
INCOME TAX (NOTE F.6)
(4.268.085.377)
(4.538.958.620)
FISCAL YEAR RESULT AFTER INCOME TAX
60.402.989.487
61.038.342.722
304
307
Result per share 304 307
IX
NET EQUITY EVOLUTION STATEMENT,
FOR FISCAL YEAR ENDED ON DECEMBER 31, 2013
CONCEPT
Paid in Capital
(Nota b.5)
Adjustments
to Equity
Legal Reserve
Statutory
Reserve
Accrued
Results
Fiscal Year
Results
Total
Balances as of
December 31, 2010
160.194.595.000
29.993.234.333
46.983.640.391
928.588
25.433.848.180
72.685.089.742
335.291.336.234
Transfer of Earnings from
Previous fiscal year
-
-
-
-
72.685.089.742
(72.685.089.742)
-
Net increase,
Integration of Capital
-
2.076.150.762
-
-
-
-
2.076.150.762
Increase of
Revaluation Reserve
-
-
14.537.017.948
-
(14.537.017.948)
-
-
Constitution of Legal
Reserve
38.581.920.000
-
-
-
(38.581.919.974)
-
26
Dividend distribution in Cash
-
-
-
-
(22.500.000.000)
-
(22.500.000.000)
Fiscal Year Earnings
-
-
-
-
-
61.038.342.722
61.038.342.722
Balances as of
December 31, 2011
198.776.515.000
32.069.385.095
61.520.658.339
928.588
22.500.000.000
61.038.342.722
375.905.829.744
Transfer of Earnings from
Previous fiscal year
-
-
-
-
61.038.342.722
(61.038.342.722)
-
Net Increase of
Revaluation Reserve
-
1.758.147.295
-
-
-
-
1.758.147.295
Constitution of Legal
Reserve
-
-
12.207.668.544
-
(12.207.668.544)
-
-
Capitalization of
Accrued Results
-
-
-
-
-
-
-
Dividend Distribution in Cash
-
-
-
-
(30.600.000.000)
-
(30.600.000.000)
Fiscal Year Earnings
-
-
-
-
-
60.402.989.487
60.402.989.487
Balances as of
December 31, 2012
198.776.515.000
33.827.532.390
73.728.326.883
928.588
40.730.674.178
60.402.989.487
407.466.966.526
Plus (minus):
Plus (Minus):
X
CASH FLOW STATEMENT
For the period between January 1 and December 31, 2013
(Expressed in Guaranies)
31/12/2013
31/12/2012
284.655.596.025
239.728.894.783
10.129.040.587
15.820.219.593
296.103.355
281.616.514
(128.574.310.098)
(100.194.128.173)
I. CASH FLOWFROM OPERATIONAL ACTIVITIES
• Financial Products Collected
• Income from Public Securities collected
• Income received from Investments in Private Securities
• Financial Charges paid
32.354.268.022
34.063.930.644
7.220.185.330
15.104.382.574
12.224.774.181
11.868.851.082
• Payments to Suppliers and Employees
(119.446.665.815)
(122.209.222.712)
• Increase in Credits, financial intermediation
(448.896.141.449)
(238.952.494.967)
• Net Decrease (increase) from Other credits
1.182.695.401
(6.837.496.748)
149.602.653
2.246.282.301
• Increase in Obligations, Financial Intermediation
504.350.421.789
216.131.622.875
• Decrease in Other ObligationsandProvisions
(18.484.631.720)
(31.260.238.377)
(2.587.808.174)
(3.723.557.934)
134.573.130.087
32.068.661.455
(5.526.013.779)
(2.128.787.880)
(832.744.001)
(190.290.802)
58.486.456.051
43.600.017.952
3.520.763.396
2.403.138.692
55.648.461.667
43.684.077.962
(30.282.047.878)
(22.293.739.616)
Variation in Obligations with Financial Entities
22.941.693.277
(83.736.516.225)
Net Cash Flow from Financing Activities
(7.340.354.601)
(106.030.255.841)
182.881.237.153
(30.277.516.424)
49.450.437.017
(29.362.249.698)
Cash and its equivalents at beginning of period
717.129.538.953
776.769.305.075
Cash and its equivalents at end of period
949.461.213.123
717.129.538.953
• Income from Other Services
• Net income from foreign exchange and arbitrage operations
• Other income
• Net decrease, assets awarded
• Income Tax
Net Cash flow from Operational Activities
II. CASH FLOWFROM INVESTMENT ACTIVITIES
Acquisition of Capital Assets
Improvements in Property leased
Variation in Investmentsin public and private securities
Dividends collected from Related parties
Net Cash flow from Investment Activities
III. CASH FLOW FROM FINANCING ACTIVITIES
Dividends Paid
Net Increase (Decrease) in Cash and cash equivalents
Effect of variations of foreign exchange rate on Cash
XI
XII
NOTES TO THE FINANCIAL STATEMENTS, FISCAL YEAR
ENDED ON DECEMBER 31, 2013
Presented comparatively with the previous fiscal year
XIII
A. CONSIDERATION BY THE SHAREHOLDERS MEETING
The financial statements of Sudameris Bank S.A.E.C.A. (hereinafter “the Entity”)
as of December 31, 2013 will be considered by the Ordinary General Shareholders
Meeting to take place during year 2014, within the term as prescribed by Article
28 of the Corporate Bylaws, in accordance with Article 1079 of the Paraguayan
Civil Code.
The financial statements as of December 31, 2012 were approved by the
Ordinary General Shareholders Meeting of March 19, 2013.
B. BASIC INFORMATION ON THE ENTITY
b.1 Juridical nature
Sudameris Bank is a Sociedad Anónima Emisora de Capital Abierto (Corporation
by Shares, issuer in the Open capitals market), which majority shareholder is
Abbeyfield Financial Holdings, domiciled in Ireland. The Entity was constituted on
June 30, 1958 with Legal Person status recognized by Decree of the Executive
Branch No. 510 dated September 29, 1958 and registered before the Public
Registry of Commerce under No. 197 on August 13, 1959.
On December 15, 2005 the Entity´s shareholders, in Extraordinary General
Shareholders Meeting, approved the change of denomination from “Banco
Sudameris Paraguay S.A.E.C.A.” to “Sudameris Bank S.A.E.C.A”, registered
before the Public Registry of Commerce under No. 304 on March 14, 2006.
b.2 Basis for the preparation of the financial statements
These financial statements were prepared in accordance with the norms,
regulations and accounting instructions prescribed by the Central Bank of
Paraguay (Banco Central del Paraguay - BCP) and in accordance with Norms
on Financial Information issued by the Paraguayan Council of Accountants
(Consejo de Contadores Públicos del Paraguay).
The balances included in the financial statements have been prepared on the
basis of historical cost, except for the case of accounts in foreign currency and
usable assets, as explained in paragraphs c.1 and c.8 of Note C, and do not
comprehensively recognize the effects of inflation in the Bank´s equity situation
or in the results of its operations, given that comprehensive monetary correction
does not constitute a generally accepted accounting practice in Paraguay.
According to the General Consumer Price Index (IPC) published by the Banco
Central del Paraguay, inflation of years 2013 and 2012 was of 3.75 % and
3.98%, respectively.
XIV
(i) Relevant Accounting Policies:
In addition to what is indicated in other notes to the financial statements, we
mention the following relevant accounting practices:
•
Available: valued at its nominal value in Guaraníes, net of the previsions
prescribed by the BCP, according to the applicable norm in force for
aging reconcilement items.
•
Cash and Cash Equivalents: for the purpose of the cash flow statement,
cash and cash equivalents comprise available cash and the deposits
at the Banco Central del Paraguay and in other financial institutions.
(ii) Estimates:
The preparation of these financial statements requires that the Entity´s Board of
Directors and Management perform certain estimates and assumptions affecting
the balances of assets and liabilities, the exposition of contingencies, and the
recognition of income and expenses. Assets and Liabilities are recognized in the
financial statements when it is probable that future benefits will flow into or from
the Entity, and that the different items have a cost or value that may be confidently
measured. If in the future these estimates and assumptions which are based on
the best management criteria as of the date of these financial statements should
be modified with respect to the present circumstances, the original estimates
and assumptions will be adequately modified on the date when such changes
occur. The principal estimates related with the financial statements refer to
the previsions on assets and credit risks of doubtful collection, depreciation of
usable assets, amortization of deferred charges, and previsions to cover other
contingencies.
(iii) Comparative Information:
The financial statements as of December 31, 2013 and the complementary
information related therewith are presented comparatively with the corresponding
statements and complementary information of fiscal year ended on December
31, 2012.
XV
b.3 Branches abroad
As of December 31, 2013 and 2012, the Entity did not have branches abroad.
b. 4 Participation in other corporations
The Entity has, as of December 31, 2013, a participation of 6.66% in the
corporate capital and votes of related corporation Bancard S.A. (note c.7). As of
December 31, 2012 this participation was of 7.69%.
The data on this corporation are the following:
Corporate Capital
Guaraníes
Nominal Value
Guaraníes
Book Value
Guaraníes
As of December 31, 2013
28.845.000.000
1.923.000.000
1.923.000.000
24.999.000.000
1.923.000.000
1.923.000.000
b.5 Composition of Capital and characteristics of Shares
The composition of the paid in Capital by types of shares as of December 31,
2013 is as follows:
Type of Shares
Quantity
Number of votes per share
Guaraníes
Common shares – Class A
50.000
5
50.000.000
Common shares – Class B
198.726.515
1
198.726.515.000
Totals
198.776.515
198.776.515.000
Type of Shares
Quantity
Number of votes per share
Common shares – Class A
50.000
5
50.000.000
Common shares – Class B
198.726.515
1
198.726.515.000
Totals
198.776.515
As exhibited in Note D.d.2), the Entity´s level of paid in capital is above the legal
minimum required for each economic year.
XVI
Guaraníes
198.776.515.000
As of December 31, 2013 and 2012, the share composition of the Entity was
structured as follows:
Participation percentage
Country
Abbeyfield Financial Holdings
Shareholder
98,22%
Ireland
Others
1,78%
Paraguay
b. 6 Board of directors members, and Higher management
BOARD OF DIRECTORS
HIGHER MANAGEMENT
President
Mr. Conor McEnroy
Vice president and General Manager
Mr. Gustavo Cartes
Vice president
Mr. Gustavo Cartes
Risks Manager Mr. Omar Fernández
Directors
Mr. Luis Durán Downing
Manager, Corporate banking Mr. Hugo Caballero
Mr. Garrett Kennedy
Manager, Finances and Intl. businesses Mr. Miguel Ángel Herrera
Mr. Alberto Eguiguren
Manager, Operations Mr. José Barrios
Mr. Sebastien Lahaie
Administrative Manager Mr. Jorge Ferreira
Mr. Lisardo Peláez
Manager, Information Technology Mr. Luis Carlos León
Mr. Victor Toledo
Manager, Human Resources Mrs. Martha Rocha
Manager, Internal Audit Mr. Roberto Ramírez
Manager, Companies and Persons banking Mr. Ariel León
Manager, Control and Research Mr. Marcelo Escobar
Manager, Accounting Mrs. Gloria Gulino
Manager, Process Management, Norms and
Innovation
Mrs. Nancy Simón
Compliance Officer Mr. Darío Largo
Syndic
Mr. Jorge Rojas
XVII
C. INFORMATION RELATED TO ASSETS AND LIABILITIES
c.1 Valuation of foreign currency and foreign exchange position
Assets and liabilities in foreign currency are expressed, in the equity situation
statement, at the rates of exchange in force at the closing of each fiscal year,
provided by the foreign exchange desk, International operations Department,
Banco Central del Paraguay, and do not significantly differ from the rates of
exchange current in the free foreign exchange market:
Exchange rate as of December 31, 2013 and 2012
Rate of exchange ( Gs. per unit of foreign currency
Currencies
As of 31/12/2013
As of 31/12/20132
4.585,00
4.224,00
702,68
860,29
1 Euro
6.335,55
5.579,06
1 Real
1.944,86
2.065,02
1 United States dollar
1 Argentinean Peso
Differences of exchange originated in fluctuations in the rates of exchange between
the dates of contracting operations and their settlement or valuation as of the closing
of the fiscal year are recognized in results, with the exceptions indicated in Note f.1.
The following is a summary of the Entity´s foreign currency position:
December
Concept
Total Assets in foreign currency
Total Liabilities in foreign currency
Foreign Currency Position
2013
Amount arbitrated
to US$
2012
Equivalent in Gs.
Amount arbitrated
to US$
493.303.797
2.261.518.921.039
402.827.055
1.701.541.299.147
(492.835.694)
(2.259.651.668.418)
(401.433.840)
(1.695.656.551.919)
468.103
1.867.252.621
1.393.215
5.884.747.228
As of December 31, 2013 and 2012 there is no net position corresponding to
foreign currency exceeding 10% of the position ceiling prescribed by the Banco
Central del Paraguay.
XVIII
Equivalent in Gs.
c.2 Cash and Cash equivalents
For the purposes of the cash flow statement, cash and cash equivalents
comprise cash available and deposits at the Banco Central del Paraguay and at
other financial institutions.
c.3 Public and Private Securities
- Public securities in portfolio as of December 31, 2013 and 2012, not listed in
securities exchanges, that have been acquired at rates and prices offered in
the market on purchase date, are valued at their value of cost plus accrued
income collectible as of the closing of the fiscal year, which in no case
exceeds their probable value of realization.
- Private securities acquired by the Entity correspond to bonds purchased
from the private sector, issued in Guaraníes and in U.S. Dollars. They are
registered at their value of cost plus accrued income collectible as of the
closing of the fiscal year. According to the Plan and Manual of Accounts
of the Superintendence of Banks, Banco Central del Paraguay, short term
private securities, that is, those that by their nature are susceptible of being
realized immediately and which are maintained for no longer than one year,
are classified under Chapter Public and Private Securities, and those that
are of a long term, are classified in the Chapter Investments.
Balances as of December 31, 2013
Non quoted securities
At value of Cost
Currency
of issuance
Amount in currency
of issuance
Amount in Guaranies
Nominal value
Book value
Public Securities
Monetary Regulation Drafts
Guaraníes
134.322.633.573
134.322.633.573
134.322.633.573
National Treasury bonds
Guaraníes
15.000.000.000
15.000.000.000
15.000.000.000
Accrued Interest
Guaraníes
-
-
2.580.902.845
CDA Banco Regional SA
Dollars
2.321.104
10.642.261.846
10.642.261.846
CDA Banco Continental SAECA
Dollars
245.527
1.125.739.094
1.125.739.094
Guaraníes
-
-
146.097.816
161.090.634.513
163.817.635.174
Private Securities
Accrued Interest
Total
XIX
Balances as of December 31, 2012
Non quoted securities
At value of Cost
Currency
of issuance
Amount in currency
of issuance
Amount in Guaranies
Nominal value
Book value
Public Securities
Monetary Regulation Drafts
Guaraníes
199.440.551.372
199.440.551.372
199.440.551.372
National Treasury bonds
Guaraníes
15.000.000.000
15.000.000.000
15.000.000.000
Accrued Interest
Guaraníes
829.758.172
Private Securities
CDA Banco Regional SA
Accrued Interest
Dollars
619.332
2.616.060.183
2.616.060.183
Guaraníes
-
-
5.124.515
217.056.611.555
217.891.494.242
Total
c. 4
c. 4 Assets and Liabilities with readjustment clause
c.5
Credit Portfolio
There are no assets or liabilities with clause of readjustment of principal.
Borrowings obtained (liabilities) from the Agencia Financiera de Desarrollo (AFD)
Registered as of December 31, 2013 in the account Borrowings from Financial
Entities, for Gs. 154.706.550.515 (Gs. 155.081.161.173 as of December 31,2012),
and loans granted (assets) with the resources of AFD, have contractual readjustment
clauses of the annual interest rates.
Credit risk is controlled by the Entity´s Board of Directors and Management,
principally by means of the evaluation and analysis of individual transactions, to
which effect certain clearly defined aspects are considered in the Entity´s credit
policies, such as: demonstrated payment capability and indebtedness of the obligor,
credit concentration in economic groups, individual limits for the granting of credits,
evaluation of economic sectors, preferred guarantees, and the requirement of
working capital in accordance with market risks.
XX
The credit portfolio has been valued and classified by function of the payment
capability and compliance of obligors, or of a group of related companies with respect
to the total of their obligations, in accordance with the Entity´s internal credit valuation
policies, and with what is prescribed in Resolution of the Board of Directors, Banco
Central del Paraguay 1, Minutes 60 dated September 28, 2007, to which effect:
a) Obligors were segmented into the following groups: i) Large
Obligors; ii) Mid sized and Small Obligors; iii) Micro credits,
and iv) Personal Obligors, Consumer or Home.
b) Obligors have been classified based on the evaluation and
rating of an obligor´s payment capability, or of a group of
obligors comprised of related persons with respect to the
total of their obligations, in six risk categories.
c) The specific previsions to cover eventual losses that may
derive from the non recovery of the portfolio have been
constituted. Also, as of December 31, 2013, generic
previsions have been constituted, as defined by the Board
of Directors, which include the prevision of 0.5% of the total
direct loans portfolio, outstanding and overdue, to the Non
Financial Sector, net of previsions, as required by Article 34
of BCP Resolution No. 1/2007.
d) Accrued interests on credits outstanding classified in
category of lower risks, “1” and “2”, have been recognized
as earnings in their totality. Interests accrued uncollected as
of the closing of the fiscal year on credits overdue and/or
current, classified in a category higher than “2”, which have
been recognized as earnings until their becoming overdue,
have been provisioned by 100% of their balance.
e) Interests accrued uncollected from obligors with credits
overdue and/or outstanding classified in categories “3”, “4”,
“5” and “6” are maintained suspended and are recognized as
earnings upon collection. Installment credits are considered
overdue as from 60 days in arrears of any of their installments,
and fixed term credits, on the day after maturity. See Note f.1.
f) Earnings from valuation or income from exchange differences
generated by those credit operations in foreign currency that
are overdue or outstanding and classified in categories “3”,
“4”, “5” and “6”, are maintained suspended, and recognized
as results upon their realization. See Note f.1.
XXI
g) Irrecoverable credits that are disaffected from the assets,
under the conditions of the norms of the Banco Central
del Paraguay applicable to the matter, are recorded and
exhibited in memorandum accounts.
c. 5.1 Credits outstanding, financial sector
These include terms placements or short term loans granted to financial entities,
both local or foreign, in national currency and in foreign currency, that have been
contracted at the rates and prices offered in the market at the time of placement.
Concept
2012
Placements – residents – national currency
61.955.975.651
53.196.063.078
Call money - residents – national currency
-
-
Placements - residents – foreign currency
86.043.988.704
135.602.163.417
Call money - residents - foreign currency
32.095.000.000
-
Operations pending Settlement (*)
138.920.646.277
68.805.000.000
56.102.562
-
Accrued Interest
2.334.150.364
3.842.458.218
Previsions
(4.991.967.693)
(3.566.609.247)
316.413.895.865
257.879.075.466
Credits on Usage of Current Accounts
Total
(*) See text at the end of c.5.2.
XXII
December 31
2013
c. 5.2 Credits outstanding, non financial sector
The portfolio of credits outstanding to the Non financial sector was comprised
as follows
Concept
December
2013
2012
Fixed term loans, non readjustable
1.827.142.008.980
1.492.026.325.480
Installment Loans, non readjustable
284.462.939.262
153.923.669.598
Checks purchased, drawn abroad
4.020.999.150
438.662.400
Credits used in Current Accounts
34.004.002.116
18.172.658.616
Obligors, use of letters of credit
9.548.178.366
5.243.703.253
Obligors, use of credit cards
67.351.313.102
65.740.339.994
Loans with Resources under administration
316.223.759.880
281.418.116.013
Documents discounted
133.568.216.157
118.108.575.591
Operations pending Settlement (*)
5.180.310.811
17.021.410.060
Unrealized Earnings from Valuation
(131.114.178)
(156.486)
Obligors, Accrued financial products
45.684.723.822
35.467.952.335
(-) Previsions (Note c.6)
(31.512.565.678)
(37.441.396.230)
2.695.542.771.790
2.150.119.860.624
Total
(*) These are financial instruments contracted with financial and non financial sector clients complying with the following conditions:
(a) their reasonable value fluctuates in response to changes in the level or price of a subjacent asset, (b) they do not a net
initial investment, or they only mandate a lower investment than what would be required in contracts responding in a similar
manner to changes in market variables, and (c) they are settled at a future date. These instruments correspond to financial
products derived for negotiation. The contracts of mandatory exchange of currencies in the future at a rate of exchange
previously agreed upon among the parties (“Currency Forwards”) are booked initially at their value of contracting. Later on,
any change in such amount in recognized as results, by valuing at their nominal value converted to spot initial prices; and all
contracts denominated in foreign currency are updated to the spot rate of exchange as of date of presentation of the financial
statements.
XXIII
In accordance with the norms on valuation of assets and credit risks prescribed
by the Superintendence of Banks, Banco Central del Paraguay, as of December
31, 2013 and 2012 the Entity´s portfolio of credits outstanding (Financial Sector
and Non Financial Sector) is risk-classified as follows:
Risk
Computable
Guarantees
Minimum
Constituted
Book value after
Previsions
Gs.
Gs.
(b)
Gs.
Gs.
Year 2013
1.- Category 1
Previsions
Book value before
Previsions
2.117.676.988.767
843.215.740.410
-
2.117.676.988.767
2.- Category 1a
518.143.836.323
247.702.280.023
0,5
310.505.173
517.833.331.150
3.- Category 1b
66.377.046.685
44.056.965.371
1,5
288.422.205
66.088.624.480
4.- Category 2
8.577.825.188
5.677.750.819
5
265.334.163
8.312.491.025
5.- Category 3
11.145.298.181
9.457.981.076
25
980.204.049
10.165.094.132
6.- Category 4
78.362.135
-
50
39.362.687
38.999.448
7.- Category 5
2.877.542
-
75
2.158.154
719.388
8.- Category 6
3.906.014
-
100
3.906.014
-
-
-
29.622.673.233
(29.622.673.233)
(131.114.178)
-
-
(131.114.178)
2.721.875.026.657
1.150.110.717.699
31.512.565.678
2.690.362.460.979
Generic Previsions ( c )
Unrealized earnings
from valuation
Total
Year 2012
1.- Category 1
Gs.
Gs.
(b)
1.854.773.976.108
803.070.644.943
2.- Category 1a
215.201.896.660
58.923.596.943
3.- Category 1b
73.659.771.197
4.- Category 2
13.468.330.819
5.- Category 3
Gs.
Gs.
-
1.854.773.976.108
0,5
165.048.273
215.036.848.387
35.122.971.487
1,5
170.863.509
73.488.907.688
5.627.011.968
5
473.002.090
12.995.328.729
8.573.041.689
5.424.960.260
25
1.024.295.053
7.548.746.636
6.- Category 4
4.850.018.706
3.629.250.000
50
1.215.259.358
3.634.759.348
7.- Category 5
5.995.407
-
75
4.496.554
1.498.853
8.- Category 6
6.972.694
-
100
6.972.694
-
-
-
34.381.458.699
(34.381.458.699)
(156.486)
-
-
(156.486)
2.170.539.846.794
911.798.435.601
37.441.396.230
2.133.098.450.564
Unrealized earnings
from valuation
Total
(a) Includes principal and interests.
(b) The prevision percentages and risk categories defined for the classification and constitution of previsions on the credit portfolio
as of December 31, 2013 and 2012, are based on the criteria established to the effect in Resolution 1, Minutes 60 of the board
of directors, BCP dated September 28, 2007.
(c) Includes the generic previsions established by the Entity in accordance with the requirements of Resolution No. 1/2007 of the
Banco Central del Paraguay, and with the policies as defined by the Entity´s board of directors for fiscal years 2013 and 2012.
XXIV
c.5.3 Credits overdue, non financial sector
Previsions
Book value before
Previsions
Computable
Guarantees
Minimum
Constituted
Book value after
Previsions
Year 2013
Gs.
Gs.
(b)
Gs.
Gs.
1.- Category 1
305.367.193
168.106.347
2.- Category 1a
108.893.890
-
0,5
544.418
108.349.472
3.- Category 1b
254.072.881
-
1,5
3.811.096
250.261.785
20.847.558.728
16.949.370.370
606.948.546
20.240.610.182
Risk
4.- Category 2
-
5
305.367.193
5.- Category 3
3.830.195.970
-
25
1.044.534.904
2.785.661.066
6.- Category 4
10.968.674.882
5.591.625.000
50
3.981.844.197
6.986.830.685
7.- Category 5
8.315.173.459
3.051.876.024
75
4.438.347.219
3.876.826.240
8.- Category 6
27.615.237.392
1.231.084.081
100
26.384.153.311
1.231.084.081
-
-
492.325.798
(492.325.798)
(146.817.285)
-
-
(146.817.285)
72.098.357.110
26.992.061.822
36.952.509.489
35.145.847.621
Suspended Earnings
from valuation
Total
Year 2012
Gs.
Gs.
(b)
Gs.
Gs.
1.- Category 1
6.778.054
-
-
6.778.054
2.- Category 1a
20.865.023
3.868.091
0,5
84.925
20.780.098
3.- Category 1b
66.353.918
-
1,5
995.306
65.358.612
4.- Category 2
2.875.636.730
7.574.150
5
143.587.618
2.732.049.112
5.- Category 3
1.721.374.388
-
25
446.713.987
1.274.660.401
6.- Category 4
4.172.711.784
-
50
2.094.405.828
2.078.305.956
7.- Category 5
8.924.316.121
1.396.353.761
75
5.888.525.885
3.035.790.236
8.- Category 6
14.534.351.397
-
100
14.534.351.397
-
-
-
580.477.492
(580.477.492)
(23.829)
-
-
(23.829)
32.322.363.586
1.407.796.002
23.689.142.438
8.633.221.148
Suspended Earnings
from valuation
Total
XXV
c. 5.4 Consolidated Credits, outstanding and overdue, to the Financial Sector and the
Non Financial Sector
Risk
Computable
Guarantees
Minimum
Constituted
Book value after
Previsions
Gs.
Gs.
(b)
Gs.
Gs.
Year 2013
1.- Category 1
Previsions
Book value before
Previsions
2.298.572.501.434
925.209.015.800
-
2.298.572.501.434
2.- Category 1a
520.147.802.020
247.702.280.023
0,5
311.330.103
519.836.471.917
3.- Category 1b
66.631.119.566
44.056.965.371
1,5
292.233.301
66.338.886.265
4.- Category 2
29.425.383.916
22.627.121.189
5
872.282.709
28.553.101.207
5.- Category 3
14.975.494.151
9.457.981.076
25
2.024.738.953
12.950.755.198
6.- Category 4
11.047.037.017
5.591.625.000
50
4.021.206.884
7.025.830.133
7.- Category 5
8.318.051.001
3.051.876.024
75
4.440.505.373
3.877.545.628
8.- Category 6
27.619.143.406
1.231.084.081
100
26.388.059.325
1.231.084.081
-
-
35.106.686.212
(35.106.686.212)
(277.931.463)
-
-
(277.931.463)
2.976.458.601.048
1.258.927.948.564
73.457.042.860
2.903.001.558.188
Generic Previsions (c)
Suspended Earnings From
Valuation
Total
Year 2012
1.- Category 1
Gs.
Gs.
(b)
Gs.
Gs.
1.854.780.754.162
803.070.644.943
-
1.854.780.754.162
2.- Category 1a
215.222.761.683
58.927.465.034
0,5
165.133.198
215.057.628.485
3.- Category 1b
73.726.125.115
35.122.971.487
1,5
171.858.815
73.554.266.300
4.- Category 2
16.343.967.549
5.634.586.118
5
616.589.708
15.727.377.841
5.- Category 3
10.294.416.077
5.424.960.260
25
1.471.009.040
8.823.407.037
6.- Category 4
9.022.730.490
3.629.250.000
50
3.309.665.186
5.713.065.304
7.- Category 5
8.930.311.528
1.396.353.761
75
5.893.022.439
3.037.289.089
8.- Category 6
14.541.324.091
-
100
14.541.324.091
-
-
-
34.961.936.191
(34.961.936.191)
(180.315)
-
-
(180.315)
2.202.862.210.380
913.206.231.603
61.130.538.668
2.141.731.671.712
Generic Previsions (c)
Suspended Earnings From
Valuation
Total
XXVI
c. 5.5 Other Credits
The composition December 31, 2013 and 2012 is as follows:
Concept
December 31
2013
2012
Prepaid Charges
4.155.360.440
4.012.560.638
Advanced payment, Income Tax
2.614.978.344
3.720.843.534
Fiscal Credit from Income Tax (a)
1.679.638.361
3.359.276.718
Fiscal Credit, previous fiscal year
1.951.150.448
1.116.797.347
4.875.447
4.205.038
50.000
50.000
900.000
-
281.177.245
612.087.871
Reimbursable expenses
1.814.085.193
1.455.179.041
Others
2.383.672.889
1.198.645.653
(1.057.500)
-
(-) Previsions (Note c.6)
(2.195.336.409)
(2.264.647.067)
Total
12.689.494.458
13.214.998.773
Income Tax Withholdings
Fiscal Creditors – VAT and VAT withholdings
Advanced to Personnel
Obligors, Sale of assets in installments - net (b)
Unrealized Earnings from Valuation
(a) Fiscal credit originated in Agreement between SAECA and the
Under Secretary of State for Taxation, Ministry of Finance, within
the framework of the proposal formulated by the Paraguayan Banks
Association and the Under Secretary for Taxation, in relation to the
devolution of fiscal credits under the concept of Income Tax, from
Monetary Regulation Instruments issued by the Banco Central del
Paraguay. According to the agreement, the fiscal credit may be
used in four equal and consecutive installments, the last one will
correspond to the liquidation of Income Tax corresponding to fiscal
year ending on December 31, 2013.
(b) Represents the uncollected balance from the sale of assets in
installments, deduced of the following concepts:
1. Unrealized earnings corresponding to the portion of the sales price yet
uncollected, which are recognized as income upon collection,
2. Unrealized earnings from valuation or exchange differences on
balances pending collection expressed in foreign currency, which will
be recognized as income upon collection.
Previsions on irrecoverable on the portfolio of obligors from the
sale of assets in installments are determined according with what
is prescribed to the effect in Resolution of the board of directors,
Banco Central del Paraguay No. 1, Minutes of September 28, 2007.
XXVII
c. 6 Previsions on direct and contingent risks
The previsions on doubtful loans and other credits are determined at the end
of each fiscal year based on the study of the portfolio, performed in order
to determine the irrecoverable portion of the same, and considering what is
prescribed, for each type of credit risk, in Resolution of the board of directors,
Banco Central del Paraguay No. 1, Minutes 60 dated September 28, 2007.
Periodically, the entity´s management undertakes, by function of the norms
for valuation prescribed by the Superintendence of Banks, Banco Central del
Paraguay and with the entity´s own criteria and policies, reviews and analysis
of the credit portfolio, in order to adjust previsions for doubtful collection
accounts. All the necessary previsions have been constituted to cover eventual
losses on direct and contingent risks, according with the criterion of the Entity´s
management and with what is prescribed in Resolution No. 1, Minutes 60 dated
September 28, 2007.
The movement recorded during fiscal years ending on December 31, 2013 and
2012 in the previsions accounts is summarized as follows
Previsions on:
Available
Constitution of
previsions in Fiscal
year
Application
of previsions
fiscal year
Disaffecting of
previsions fiscal
year
Variation from
Valuation
Balances at
year end
8.768.549
229.118.602
-
17.689.359
681.099
220.878.891
3.566.609.247
6.296.042.829
-
4.948.590.055
77.905.672
4.991.967.693
37.441.396.229
245.404.413.046
-
254.558.185.365
3.224.941.768
31.512.565.678
2.264.647.037
335.348.919
-
453.130.342
48.470.795
2.195.336.409
Credits overdue
23.689.142.438
39.952.254.812
3.027.281.594
18.038.444.300
(5.623.161.867)
36.952.509.489
Investments
17.902.284.665
1.000.000
146.690.949
-
-
17.756.593.716
2.511.765.599
20.425.793.440
-
21.372.683.586
(72.153.363)
1.492.722.090
87.384.613.764
312.643.971.648
3.173.972.543
299.388.723.007
(2.343.315.896)
95.122.573.966
Credits outstanding
–Financial sector
Credits outstanding –
Non financial sector
Other credits
Contingent Credits (*)
TOTAL
XXVIII
Balances at
Beginning of
fiscal year
Previsions on:
Available
Balances at
Beginning of
fiscal year
Constitution of
previsions in
Fiscal year
Application
of previsions
fiscal year
Disaffecting of
previsions fiscal
year
Variation from
Valuation
Balances at year
end
(13.179.640)
(8.768.549)
-
13.093.120
86.520
(8.768.549)
(311.098.486)
(3.693.965.246)
-
445.363.788
(6.909.303)
(3.566.609.247)
(47.595.455.639)
(173.436.209.189)
-
179.803.922.428
3.786.346.171
(37.441.396.229)
(1.589.149.084)
(1.030.409.553)
-
349.589.701
5.321.899
(2.264.647.037)
Credits overdue
(15.558.517.658)
(27.452.505.918)
2.334.261.356
15.674.801.042
1.312.818.740
(23.689.142.438)
Investments
(19.710.219.746)
(43.499.860)
474.436.033
1.376.998.908
-
(17.902.284.665)
(1.235.430.409)
(7.482.655.277)
-
6.134.859.728
71.460.359
(2.511.765.599)
(86.013.050.662)
(213.148.013.592)
2.808.697.389
203.798.628.715
5.169.124.386
(87.384.613.764)
Credits outstanding
–Financial sector
Credits outstanding –
Non financial sector
Other credits
Contingent Credits (*)
TOTAL
(*) According to the Plan & Manual of Accounts of the Superintendence of Banks, these are previsions that are exhibited in Chapter
“Previsions” of Liabilities.
c. 7 Investments
Investments represent the holding of fixed or variable income securities issued by the
private sector, and assets not used in the Entity´s operation. They are valued, according
to their nature, as per the following criteria:
a) Assets received in credit recovery: these assets are valued
at the littlest of the following three values: appraisal value,
assignment value, and debt balance immediately before
assignment, according to the prescriptions of the Banco
Central del Paraguay on the matter. Additionally, for assets
exceeding the terms established by the Banco Central
del Paraguay for their holding, previsions are constituted
according with Resolution No. 1, Minutes 60 of September
28, 2007 of the board of directors, Banco Central del
Paraguay. Upon three years, the assets are provisioned by
100%.
b) Fixed income investments issued by the private sector:
these are long term debt of the private sector, valued at their
nominal value plus interest accrued, which does not exceed
the recoverable value.
XXIX
c) Variable income investments issued by the private sector.
Permanent investments in participations in corporations,
which have been valued at their value of acquisition, given
that they represent a minority interest in the company´s
capital. This value is not higher than their market value,
calculated based on the proportional equity value of these
investments.
The following is a detail of the Entity´s investments:
Concept
Assets acquired in credit recovery
Fixed income Investments in securities Issued by the private sector
Variable income investments issued by the private sector (Note b.4) (*)
Other investments
TOTAL
Book value before
previsions
Book
value after
previsions
Previsions
16.868.464.212
(16.835.168.716)
33.295.496
-
-
-
1.923.000.000
-
1.923.000.000
921.425.000
(921.425.000)
-
19.712.889.212
(17.756.593.716)
1.956.295.496
(*) As of December 31, 2013 the Entity has delivered in security to Bancard S.A. share securities of Bancard SA owned by
Sudameris Bank SAECA, for a nominal value of Gs. 1.923.000.000, plus a Certificate of Savings Deposit of Series BX N°0509
endorsed in favor of Bancard with maturity 25/04/2014 for Gs.1.060.000.000. The shares pledged and the CDA guarantee
all obligations that may derive in favor of Bancard S.A. on credit card operations and balances resulting from transactions in
automated teller machines or points of sale of the Infonet network, for Gs. 6.507.593.626.-
Concept
Assets acquired in credit recovery
Fixed income investments in securities issued by the private sector
Variable income securities issued by the private sector
Variable income investments issued by the private sector (Note b.4) (*)
Other investments
TOTAL
Book value before
previsions
Book
value after
previsions
Previsions
17.018.066.865
(16.980.859.665)
37.207.200
-
-
-
-
-
-
1.923.000.000
-
1.923.000.000
921.425.000
(921.425.000)
-
19.862.491.865
(17.902.284.665)
1.960.207.200
(*) As of December 31, 2012 the Entity has delivered in security to Bancard S.A. share securities of Bancard SA owned by
Sudameris Bank SAECA, for a nominal value of Gs. 1.180.000.000. The shares pledged guarantee all obligations that may
derive in favor of Bancard S.A. from credit card operations and the balances resulting from transactions in automated teller
machines or points of sale of the Infonet network, for Gs. 4.982.079.180.
XXX
c. 8 Usable assets
The original values of usable assets and their accrued depreciations existing as of
the beginning of the fiscal year are revalued until December 31, 2013 and 2012,
according with what is prescribed in Law 125/91, considering the coefficients
provided to the effect by the Under Secretary of State for Taxation, according to
Updating Resolution No. 02/2013; Resolution No. 87/2012 for fiscal year 2012. The
net increase of the revaluation reserve is exhibited in the account “Adjustments to
Equity” of the entity´s Net Equity.
The cost of improvements extending the useful life of assets, or increasing their
productive capacity, is input to the respective asset accounts. Assents under
construction are valued at cost. Maintenance expenses are charged to results.
Depreciation of usable assets is calculated by the straight line method, as from the
year following their incorporation, applying annual rates prescribed in the regulations
of Law 125/91, which result sufficient to extinguish their values upon their estimated
useful life. The residual value of revalued assets considered as a whole does not
exceed their recoverable value as of the end of the fiscal year.
According to banking legislation, financial entities operating in Paraguay are
forbidden from giving in guarantee their usable assets, except those affected in
security of financial leasing operations, and to the Banco Central del Paraguay (Art.
70 paragraph b. of law 861/96). The banking legislation establishes a ceiling for
investment in usable assets, which is 50% of the financial entity´s effective equity.
The book balance of the Entity´s usable assets as of December 31, 2013 and 2012
is within the limit as prescribed.
The following exhibits the composition of the balances of usable assets as of
December 31, 2013 and 2012:
ORIGINAL VALUE
CONCEPT
Opening
Balance
Incorporations
Less Terminations
Reclassification
&/or adjust.
Revaluation
Closing
Owned
Real Estate – Land
11.443.274.679
1.020.135.723
-
-
429.122.800
12.892.533.202
Real estate- buildings
25.881.404.993
458.064.748
-
-
970.552.690
27.310.022.431
Installations
16.778.922.087
824.202.588
(365.775.203)
-
357.013.430
17.594.362.902
Furniture and desk
Material
11.816.906.968
566.286.167
(32.969.146)
33.995.663
310.681.022
12.694.900.674
Computer equipment
21.200.907.322
1.124.685.787
(437.070.164)
(104.102)
449.227.865
22.337.646.708
Security boxes
159.731.812
-
-
-
5.989.947
165.721.759
Transportation
Elements
3.253.361.965
56.577.285
(108.161.900)
-
89.301.677
3.291.079.027
536.333.413
1.482.007.227
-
-
-
2.018.340.640
Buildings under
Construction
Total 2013
91.070.843.239
5.531.959.525
(943.976.413)
33.891.561
2.611.889.431
98.304.607.343
Total 2012
87.410.120.133
5.883.923.639
(4.682.345.320)
(218.776.681)
2.677.921.468
91.070.843.239
XXXI
DEPRECIATIONS
CONCEPT
Opening
Balance
Revaluation of
Depreciation
Depreciation
Closing
Balance
Terminations
Net Value
Owned
Real Estate – Land
-
-
-
-
-
12.892.533.202
Real estate- buildings
10.725.001.178
671.298.941
402.187.542
-
11.798.487.661
15.511.534.770
Installations
10.927.516.768
1.392.690.948
137.602.658
(365.340.364)
12.092.470.010
5.501.892.892
5.731.540.792
1.058.532.438
116.066.957
(31.008.289)
6.875.131.898
5.819.768.776
14.410.283.567
3.107.140.385
194.850.626
(430.091.043)
17.282.183.535
5.055.463.173
Security boxes
31.633.363
16.572.174
1.186.249
-
49.391.786
116.329.973
Transportation
Elements
1.820.147.385
494.135.630
35.556.153
(108.161.800)
2.241.677.368
1.049.401.659
-
-
-
-
-
2.018.340.640
Total 2013
43.646.123.053
6.740.370.516
887.450.185
(934.601.496)
50.339.342.258
47.965.265.085
Total 2012
37.427.106.587
6.762.648.293
835.068.905
(1.378.700.732)
43.646.123.053
47.424.720.186
Furniture and desk
Material
Computer equipment
Buildings under
Construction
c. 9 Deferred Charges
The composition of this item December 31, 2013 and 2012 is as follows:
Concept
Improvements and installations in
Leased real estate (*)
Desk material and others
Total
Net initial balance
Increases
Amortizations
Net closing balance
2.074.844.197
1.987.210.996
2.532.597.959
1.529.457.234
715.431.039
1.468.200.672
1.254.721.934
928.909.777
2.790.275.236
3.455.411.668
3.787.319.893
2.458.367.011
Concept
Improvements and installations in
Leased real estate (*)
Desk material and others
Total
Net initial balance
Increases
Amortizations
Net closing balance
2.631.569.832
1.293.804.651
1.850.530.286
2.074.844.197
605.628.125
1.197.247.746
1.087.444.832
715.431.039
3.237.197.957
2.491.052.397
2.937.975.118
2.790.275.236
(*) The entity amortizes improvements and installations in leased real estate lineally considering a useful life of 5 years.
XXXII
c. 10 Subordinated Liabilities
Item “Obligations, Financial intermediation – Non Financial Sector” in the Equity
situation statement, includes subordinated bonds which balance and issuance
detail as December 31, 2013 is the following:
Número de Resolución de
autorización del BCP
Currency of
Issuance
Amount of (*)
Term Issuance
Balance as of
31/12/13
00285 /2013
US$
10.000.000,00
15/12/2020
45.850.000.000
TOTAL
45.850.000.000
(*) Banco Central del Paraguay has authorized the issuance of subordinated bonds in foreign currency up to an amount of US$
20.000.000,00. Under this framework, December 31, 2013, the entity proceeded to issue securities for an amount of US$
10.000.000,00..
As of December 31, 2012 there existed no subordinated bonds.
Subordinated bonds will be convertible into shares by the sole ministry of the
Law, in case it is required to rise the minimum capitals required in the Law or
replace capital losses (Law 861/96). Subordinated bonds do not have the
guarantee on deposits established in Law 2334/03.
c. 11 Limitations to the free availability of assets or of equity and any other restriction to the property right
As of December 31, 2013 and 2012 there are the following limitations:
a) Deposits at the Banco Central del Paraguay under the concept of mandatory
legal deposit as described in Note c.17.; b) Restrictions to the distribution
of earnings as described in Note d.5; c) Restrictions to give usable assets in
guarantee as explained in Note c.8.; d) Regulatory restrictions to give assets
components in guarantee of deposits from the public; e) In fiscal years 2013 and
2012, Bancard shares, given in security to Bancard S.A., and in fiscal year 2013,
Certificate of Savings Deposit endorsed in favor of Bancard SA., as explained
in Note c.7.
There are no other limitations to the free availability of assets and any other
restriction to the property right.
c. 12 Guarantees granted with respect to Liabilities
As of December 31, 2013 and 2012, there are no guarantees granted by the
Entity with respect to its liabilities, with the exception of Obligations, Financial
Intermediation contracted with the Agencia Financiera de Desarrollo (AFD) (see Note
c.13), which contracts are and will be direct and unconditional obligations of the
Entity, constituting privileged credits with respect to other obligations and liabilities
(present or contingent) not guaranteed and not subordinated, issued, created or
assumed presently or in the future by the Entity.
XXXIII
These loans, guaranteeing the obligations with the AFD, correspond to operations
conceptualized as portfolio rediscount, approved within the contracts executing
between both parties.
c. 13 Obligations, financial intermediation
The balance is comprised as follows:
FINANCIAL SECTOR
Deposits at Sight
31/12/2013
Gs.
31/12/2012
Gs.
43.506.557.590
31.948.227.342
3.556.950.630
2.813.389.109
Certificate of Savings Deposit
89.137.738.250
32.073.522.675
Deposit in Current Accounts from other financial entities
24.225.873.621
16.514.582.060
9.051.476.146
3.919.491.249
141.072.101.565
63.360.000.000
52.177.740.160
-
154.706.550.515
155.081.161.173
Contribution to the Deposits Guarantee Fund
Correspondents, deferred documentary credits
Borrowings from organisms and financial entities
Banks abroad - correspondents
Agencia Financiera de Desarrollo - AFD
Corporación Interamerica de Inversiones - CII
Banco Latinoamericano de Comercio Exterior S.A
Banco Interamericano de Desarrollo - BID
Banco Do Brasil SA
Deustche Bank
Bladex - Banco Latam de Comercio
International Finance Corporation - IFC
16.506.000.000
-
-
29.568.000.000
38.972.500.000
-
-
7.603.200.000
7.894.702.699
24.169.109.015
45.850.000.000
-
116.917.500.000
137.491.200.000
72.213.750.000
85.536.000.000
7.304.349.745
8.972.325.120
Nederlandse Financierings – Maatschappij Voor
Ontwikkelingslanden N.V.
Oikocredit
Creditors, Accrued financial charges
Total financial sector
XXXIV
7.478.704.367
5.713.113.654
830.572.495.288
604.763.321.397
31/12/2013
Gs.
NON FINANCIAL SECTOR
31/12/2012
Gs.
Deposits – Private Sector
Deposits at sight in savings accounts
396.952.096.405
347.879.842.172
Deposits at sight in current accounts
591.442.747.676
566.324.408.296
Deposits at sight in combined accounts
472.747.590.921
372.330.716.777
Certificates of Savings Deposits
998.698.603.394
709.856.026.001
429.249.611
12.900.632.723
Deposits affected in security
Creditors, Deferred Letters of Credit, Export
1.320.013.980
-
Obligations with Establishments adhered to the TC System
3.547.070.178
2.237.161.674
5.278.571.641
18.151.650.990
Creditors, documents pending clearing
29.792.564.759
27.105.630.175
Deposits – Public Sector
31.992.322.534
28.467.586.958
355.532.165.477
310.615.293.877
45.850.000.000
-
Certificates of savings deposit
Bonds issued outstanding
Creditors, accrued financial charges
Total Non financial sector
20.263.815.686
11.707.068.168
2.953.846.812.262
2.407.576.017.811
c. 14 Distribution of credits and obligations on financial intermediation according to maturities, and liquidity risk management
Term remaining until maturity
Concept
Up to 30 days
31 to 180 days
181 days to 1
year
Over 1 year and
Up to 2 years
Over 3 years
Total
Credits Outstanding,
Financial sector (*)
95.611.322.759
56.426.389.948
11.393.354.210
16.720.000.000
-
180.151.066.917
Non financial sector (*)
249.870.860.865
1.082.064.260.453
281.598.711.407
426.240.126.152
636.547.458.136
2.676.321.417.013
Total credits
outstanding
345.482.183.624
1.138.490.650.401
292.992.065.617
442.960.126.152
636.547.458.136
2.856.472.483.930
Obligations, financial
sector
139.677.191.662
132.212.009.206
152.290.208.219
49.412.591.724
208.429.688.546
682.021.689.357
Obligations, non
financial sector
1.601.566.387.416
460.948.671.675
341.466.803.157
461.201.692.357
17.270.870.432
2.882.454.425.037
Total Obligations
1.741.243.579.078
593.160.680.881
493.757.011.376
510.614.284.081
225.700.558.978
3.564.476.114.394
XXXV
Term remaining until maturity
Concept
Up to 30 days
31 to 180 days
181 days to 1
year
Over 1 year and
Up to 2 years
Over 3 years
Financial sector (*)
35.344.000.000
114.317.553.406
11.102.673.089
7.024.000.000
21.010.000.000
188.798.226.495
Non financial sector (*)
225.148.753.384
892.464.896.014
285.060.000.128
274.700.325.839
457.698.075.580
2.135.072.050.945
Total credits
outstanding
260.492.753.384
1.006.782.449.420
296.162.673.217
281.724.325.839
478.708.075.580
2.323.870.277.440
78.788.814.255
90.037.893.368
78.112.559.056
67.642.615.984
221.108.325.080
535.690.207.743
Obligations, non
financial sector
1.442.496.478.462
407.188.360.653
179.025.381.894
345.014.414.436
3.992.662.985
2.377.717.298.430
Total Obligations
1.521.285.292.717
497.226.254.021
257.137.940.950
412.657.030.420
225.100.988.065
2.913.407.506.173
Obligations, financial
sector
(*) Not including interests, or Operations pending Settlement.
Liquidity Risk Management: The liquidity risk is the risk that an entity will find
difficulties in honoring obligations associated with financial liabilities that are
settled delivering cash money or other financial asset. The entity’s Board of
Directors and Management control the liquidity fundamentally through the
matching of maturities of its assets and liabilities, according with short, midterm
and long term strategies defined and permanently monitored, both for assets
and for liabilities.
Additionally, the entity has contingency plans defined for cases of transitory
liquidity needs. The Liquidity position is monitored, and liquidity stress test are
carried out regularly under a variety of scenarios encompassing both normal
market conditions, and more severe ones. All liquidity policies and procedures
are subject to the review and approval of the Assets and Liabilities Committee
XXXVI
Total
c.15 Concentration of the Loans and Deposits Portfolio
c. 15.1 Credit Portfolio, financial intermediation, Financial Sector and Non Financial Sector
Amount and percentage of loans to the FS
Number of Clients
Outstanding
Overdue
%
Gs. (*)
Gs. (*)
Amount and percentage of loans to the NFS
Outstanding
%
Gs. (*)
%
Overdue
%
Gs. (*)
10 largest obligors
170.966.528.718
95%
-
0%
538.228.129.950
20%
20.859.864.418
82%
50 largest obligors
9.184.538.199
5%
-
0%
870.620.582.901
32%
1.525.068.112
6%
100 largest obligors
-
0%
-
0%
470.610.813.568
18%
1.050.737.362
4%
Others
-
0%
-
0%
796.861.790.594
30%
2.028.968.950
8%
180.151.066.917
100%
0%
2.676.321.317.013
100%
25.464.638.842
100%
10 largest obligors
182.098.419.080
96%
-
0%
424.021.292.037
20%
1.736.817.913
41%
50 largest obligors
Total Credits
-
6.699.807.415
4%
-
0%
691.029.913.818
32%
1.012.746.131
24%
100 largest obligors
-
0%
-
0%
377.546.228.322
18%
638.617.973
15%
Others
-
0%
-
0%
642.474.616.768
30%
841.561.243
20%
188.798.226.495
100%
0%
2.135.072.050.945
100%
4.229.743.260
100%
Total Credits
-
(*) The table reflects the ten largest obligors, the next 50 largest obligors, etc. Amounts considered in this table are presented before
previsions and Suspended Earnings from Valuation. Operations pending Settlement are not included.
c. 15.2 Deposits portfolio, at term and at sight, by sector
Amount and percentage of deposits portfolio
Number of clients
Financial Sector
%
Gs.
Non Financial Sector
Gs.
%
YEAR 2013
10 largest depositors
95.731.300.810
60%
648.372.510.599
23%
50 subsequent largest depositors
61.928.350.590
38%
507.680.067.983
18%
2.767.468.692
2%
358.226.754.675
12%
Other subsequent depositors
0%
1.363.308.007.524
47%
160.427.120.092
100%
2.877.587.340.781
100%
10 largest depositors
49.009.589.383
59%
548.917.985.397
23%
33.718.693.073
40%
417.613.511.321
18%
621.438.730
1%
329.798.646.212
14%
0
0%
1.079.149.993.826
45%
100%
2.375.480.136.756
100%
Total Deposits portfolio
0
YEAR 2012
Other subsequent depositors
Total Deposits portfolio
83.349.721.186
XXXVII
c.15.3 Concentration by country and currency
Concept
Credits FS
%
Gs. (*)
Credits NFS
Gs. (*)
%
Credits FS
%
Gs. (**)
Credits NFS
Gs. (***)
%
December 31, 2013
Residents within country
177.493.249.588
100%
2.690.362.386.794
100%
158.706.363.556
100%
2.934.040.640.081
100%
-
0%
74.185
0%
-
0%
14.527.600.540
0%
177.493.249.588
100%
2.690.362.460.979
100%
158.706.363.556
100%
2.948.568.240.621
100%
59.861.947.660
34%
1.139.960.087.350
42%
97.494.552.507
61%
1.329.748.152.240
45%
In foreign currency
117.631.301.928
66%
1.550.402.373.629
58%
61.211.811.049
39%
1.618.820.088.381
55%
Total
177.493.249.588
100%
2.690.362.460.979
100%
158.706.363.556
100%
2.948.568.240.621
100%
189.074.075.469
100%
2.133.044.020.901
100%
82.943.840.441
100%
2.350.524.636.619
98%
-
0%
54.429.663
0%
-
0%
38.899.729.963
2%
189.074.075.469
100%
2.133.098.450.564
100%
82.943.840.441
100%
2.389.424.366.582
100%
51.618.602.905
27%
1.025.424.744.104
48%
61.956.643.477
75%
1.171.541.744.352
49%
In foreign currency
137.455.472.564
73%
1.107.673.706.460
52%
20.987.196.964
25%
1.217.882.622.230
51%
Total
189.074.075.469
100%
2.133.098.450.564
100%
82.943.840.441
100%
2.389.424.366.582
100%
Non residents
Total
In national currency
December 31, 2012
Residents within country
Non residents
Total
In national currency
(*) Balance includes principal plus accrued interest net of previsions and Unrealized Earnings from Valuation. Operations pending
Settlement not included.
(**) Balances do not include accrued interest or balances of borrowings from financial entities, or borrowings and interest from
other entities.
(***) Not including Operations pending Settlement or balances of accrued interest.
XXXVIII
c. 15.4 Credit portfolio distributed by economics sector
Economic Sector
Gs.
%
687.667.031
24,6
Year 2013 (in thousands of Gs.)
Agriculture
Cattle ranching
624.525.789
22,4
Industrial
547.077.592
19,6
561.937
0,0
Export
Commerce
496.196.574
17,8
Consumer
238.894.158
8,5
Services
199.320.337
7,1
Total (*)
2.794.243.418
100
Gs.
%
Agriculture
435.987.554
19,8
Cattle ranching
494.138.579
22,4
Industrial
457.201.539
20,8
255
0,0
490.991.627
22,3
Economic Sector
Year 2012 (in thousands of Gs.)
Export
Commerce
Consumer
196.706.000
8,9
Services
127.838.892
5,8
Total (*)
2.202.864.446
100
(*) Includes balances from item “Credits Outstanding, financial intermediation – Non financial sector”. Unrealized Earnings from
Valuation , Operations pending Settlement, or previsions, are not included.
XXXIX
c. 16 Credits and Contingencies with related persons and companies
December 31,
Items
2013
2012
Gs.
Gs.
ASSETS
Credits outstanding, financial intermediation, financial sector
-
-
3.075.029.550
3.227.468.078
Other Credits
23.871.752
11.230.958
Total Assets
3.098.901.302
3.238.699.036
-
-
6.207.125.579
10.663.423.959
Credits outstanding, financial intermediation, non financial sector (*)
LIABILITIES
Obligations, Financial intermediation, financial sector
Obligations, Financial intermediation, non financial sector (**)
Other Obligations
381.581.229
1.362.342.717
6.588.706.808
12.025.766.676
Credit card lines (*)
1.114.818.688
1.098.636.147
Total Contingency Accounts
1.114.818.688
1.098.636.147
Total Liabilities
CONTINGENCY ACCOUNTS
(*) Corresponding to loans on use of credit cards and balances of lines for credit cards to Board of Directors members. Interests
collected in equivalent conditions as in market, are included in item “Financial Income” of the results statement.
(**) Corresponding to balances en savings accounts, current accounts, and Certificates of Savings Deposits maintained by the
Entity´s Directors. Interests paid under conditions equivalent to market, are included in item “Financial Losses” of the results
statement.
c. 17 Deposits at the Banco Central del Paraguay
Deposits at the Banco Central del Paraguay as of December 31, 2013 and 2012
are the following:
December 31,
Types
2012
Gs.
Gs.
Mandatory Deposit - Guaraníes
137.402.127.051
127.572.930.831
Mandatory Deposit - Foreign currency
299.041.344.859
215.609.057.133
170.999.850
293.105.059
Special Deposit - Resolution 1/131
Mandatory Deposit - Foreign currency – Early withdrawals
Deposits in guaraníes
Deposits in U.S. Dollars
XL
2013
1.078.395.974
1.605.120.470
609.797.886
63.359.696.757
51.786.257.548
17.204.009.809
Deposits for Monetary Operations
166.500.000.000
-
Total
656.588.923.168
425.643.920.059
Banks must maintain legal deposits on their Deposits in national currency and
in foreign currency, in the proportion established in resolutions from the Banco
Central del Paraguay. Legal deposits have restricted availability.
The minimum requirements of legal deposits that financial intermediation entities
must maintain, in the proportion and composition, are calculated monthly at the
BCP, based on the data contained in daily statements about Deposits in national
currency and in foreign currency from the financial intermediation entities. They
must present in writing and monthly their Legal Deposit Position Template on
the first working day following the closing of each month. Such template must
contain the daily balances of Deposits in the previous month, both in national
currency and in foreign currency, and the same is a sworn statement.
c. 18 Other facts which importance justify exhibition
there are no relevant items justifying their being exhibited herein.
D.
d. 1
NET EQUITY
Effective Equity
The limits and restrictions for the operations of financial entities are determined
by function of their effective equity.
The entity´s effective equity as of December 31, 2013 and 2012 amounted to Gs.
381.535.014.216 and Gs. 305.246.670.494 respectively. This amount of effective
equity, used for the determination of certain limits and operational restrictions
imposed to financial entities operating in Paraguay by the Superintendence of
Banks, Banco Central del Paraguay, must a no time be lower than 10% of risk
weighted assets and contingencies of the financial entities (solvency margin). The
Banco Central del Paraguay may increase this rate up to 12% (twelve per cent).
As of December 31, 2013 the Entity maintains the ratio at 14,85% (14,32% as
of December 31, 2012).
d. 2
Minimum Capital
According to article 11 of Law 861/96, financial entities must update their capital
annually, by function of the Consumer Price Index (IPC) calculated by the Banco
Central del Paraguay. The updated value of minimum capital for fiscal years
2013 and 2012 is Gs. 36.434 million and Gs. 33.857 million, respectively.
By Resolution 17 of November 24, 2010, the board of directors of the Banco
Central del Paraguay disposed the increase of minimum capital required by Law
861/96 to banking entities, in Gs. 40.000 million. It also determined the term of
five years for adjustment to the amount as established.
XLI
As of December 31, 2013 the entity has paid in capital of Gs. 198.776.515.000,
which is higher than the minimum required of banks by the new norm of the
Banco Central del Paraguay.
d. 3
Adjustments to Equity
d. 4
Adjustments of accrued results, or of previous years’ results
Corresponde a la contrapartida del revalúo de bienes de uso. De acuerdo a
las disposiciones legales, la reserva de revalúo no puede ser distribuida a los
accionistas a no ser como aporte de capital.
The Plan and Manual of Accounts of the Banco Central del Paraguay prescribes that
adjustments of previous years’ results be registered within the fiscal year´s results
statement without affecting the accounts of the entity´s net equity.
d. 5 Restriction to the distribution of earnings
a) Legal Reserve: According to article 27 of Law 861/96,
financial entities must have a reserve of no less than the
equivalent of one hundred percent (100%) of their capital
that will be constituted by transferring annually no less
than twenty percent (20%) of the net earnings of each
fiscal year.
Article 28 of the mentioned law prescribes that the legal
reserve resources will be automatically applied to the cover
of losses registered in the financial year. In the next fiscal
years, the total of earnings must be applied to the legal
reserve until the same again reaches its minimum, or the
highest amount reached in the process of its constitution.
The amount of the legal reserve may be increased with
cash money contributions at any time.
b) Distribution of Earnings: In accordance with what is
prescribed in Law 861/96 “General law on Banks, Finance
Companies and Other Credit Entities”, those entities
authorized to operate according with this Law, national
or foreign, may distribute their earnings with the prior
approval of their respective annual financial statements
audited by the Superintendence of Banks, provided the
same pronounces itself within the term of one hundred
twenty days from the closing of the fiscal year. Upon such
term without the Superintendence pronouncing itself,
earnings may be.
XLII
c) According to tax legislation in force, distribution of earnings
in cash originated as from fiscal year 2005 is subject to a
tax of 5% on the entity, and withholding under the concept
of 15% in case shareholders are domiciled abroad.
d. 6
Result per Share
The entity calculates the net result per share on the basis of the net fiscal year result (deduced of the
amounts to be affected to legal reserve and capital indexation if applicable), divided by the number of
shares.
E.
INFORMATION REGARDING CONTINGENCIES
The balance of the Contingency Accounts as of December 31, 2013 and 2012
is comprised as follows:
31/12/2013
31/12/2012
Gs.
Gs.
Beneficiaries, credits agreed in current accounts
63.007.297.636
56.513.649.478
Concept
Guarantees granted
380.975.865.736
332.880.620.660
Negotiated documentary credits
25.452.434.862
29.326.701.415
Credits usable via cards
84.869.245.424
73.061.225.554
Other lines agreed
Total
4.694.800.000
2.075.572.003
558.999.643.658
493.857.769.110
Within the balance of Guarantees granted in fiscal years 2013 and 2012 is
the guarantee granted for amount of US$ 53.341.248,75 in favor of Entidad
Binacional Yacyretá by order and for account of Consorcio Eriday-Ute. This
amount exceeds the lendable margin established in Law 861/96 and required
the authorization of the BCP through resolution of the board of directors, Banco
Central del Paraguay No. 13, Minutes 225 of November 20, 1997.
There are no other credit lines that individually exceed 10% of total assets.
XLIII
F.
INFORMATION REGARDING RESULTS
f. 1 Recognition of earnings and losses:
The entity applied the accrual principal to the effects of recognizing income or
expenditures or costs incurred, with the following exceptions referred to income
that are recognized as earnings upon collection, as prescribed by Resolution No.
1, Minutes No. 60 of Banco Central del Paraguay, dated September 28, 2007:
a) Financial products, commissions and collection expenses
recovery accrued and uncollected from obligors with credits
overdue or classified in risk categories higher than “Category
2”, which are recognized as earnings upon collection. See
Note c.5.
b) Exchange differences from valuation of those credit operations
in foreign currency overdue or classified in risk categories
higher than “Category 2”, which are recognized as earnings
upon collection. See Note c.5.
c) Unrealized earnings and earnings from valuation of balances
in foreign currency of those operations of sale of assets in
installments, which are recognized as earnings upon collection.
See Note c.5.5.
d) Earnings from adjustment to market prices of investments
in fixed income or variable income investments quoted in a
secondary securities market, which are recognized as earnings
upon realization. See Note c.7.
e) Certain commissions for financial and credit services that are
recognized a earnings upon collection.
XLIV
f. 2 Differences of exchange in foreign currency
The differences of exchange corresponding to the maintenance of assets and
liabilities in foreign currency are exhibited net in the lines of the results statement
“Valuation of Assets and Liabilities in Foreign currency”, and the details are
exhibited as follows:
Concept
Earnings from valuation of financial assets and liabilities in foreign currency
As of December 31,
de 2013
As of December 31,
de 2012
1.219.692.370.952
1.776.543.290.728
(1.217.936.865.615)
(1.778.278.713.002)
Net exchange difference on financial assets and liabilities in Foreign currency
1.755.505.337
(1.735.422.274)
Earnings from valuation of other assets and liabilities in foreign currency
8.734.942.073
47.966.664.816
(10.370.677.448)
(45.351.115.270)
(1.635.735.375)
2.615.549.546
119.769.962
880.127.272
Losses from valuation of financial assets and liabilities in foreign currency
Losses from valuation of other assets and liabilities in foreign currency
Net exchange difference on other assets and liabilities in Foreign currency
Net exchange difference on Total Assets and Liabilities in Foreign Currency
According with what is described in item b) of Note f.1 above, differences of
exchange corresponding to the maintaining of credits in foreign currency overdue
and/or outstanding classified in Categories “3”, “4”, “5” and “6”, are recognized
as earnings by function of their realization.
Net exchange differences from foreign exchange and arbitrage operations are
exhibited in the lines of the results statement denominated “Other Operational
Earnings – Result of Foreign Exchange and Arbitrage Operations”.
f. 3 Other Operational losses - Others
Item “Other Operational Losses – Others” is comprised as follows:
Concept
Beneficence and tickets
Other losses
Losses from foreign exchange operations
Value Added Tax - Cost
Taxes, Fees and Contributions
Total
31/12/2013
892.377.402
31/12/2012
2.942.610.656
18.360.623
17.185.148
8.442.392.835
44.145.843.446
690.194.001
1.945.358.891
3.351.143.649
2.883.418.888
13.394.468.510
51.934.417.029
XLV
f. 4 Income Tax
Current:
The income tax charged to the fiscal year´s result at the rate of 10% is based on
the book earnings before the concept, adjusted of the items that the law and its
regulations include or exclude for the determination of the net taxable earnings.
According to the prescriptions of Law 125/91, modified by Law 2421/04,
distribution of earnings in cash is taxed at the rate of 5%.
The charge to results under the concept of income tax as of December 31, 2013
amounts to Gs. 4.268.085.377 (Gs.4.538.958.620 as of December 31, 2012).
This amount does not include the provision of the additional 5% corresponding
to distribution of earnings mentioned in the previous paragraph, as the entity
records this additional tax charge in the fiscal year when the Shareholders
Meeting decides on the distribution
Deferred:
The accounting registration of income tax by the deferred method is not
anticipated in the norms issued by the BCP. The entity determines the income tax
applying the current rate on the estimated taxable earnings, without considering
the effect of temporary differences between the accounting results and the
taxable result. The board of directors estimates that as of December 31, 2013
and 2012, the effect of deferred assets/liabilities generated by the Entity is not
significant to the financial statements considered as a whole.
f. 5 Fiduciary Activities
The entity does not have a fiduciary department to act as a trust bank.
f. 6 Contributions to the Deposits Guarantee Fund
(Fondo de garantía de Depósitos - FGD)
By virtue of what is prescribed in Law No. 2.334 of December 12, 2003, which
among other things creates a new legal guarantee regime of Deposits in the
national financial system that will have as its object the partial protection of the
savings from the public in the private financial entities authorized to operate by
the BCP up to the equivalent of 75 minimum salaries per depositor, as from the
third quarter of year 2004, financial entities contribute quarterly and mandatorily
to the Deposits Guarantee Fund created by said Law, and administered by
the BCP, 0.12% of the average quarterly balances of their Deposits portfolio
in national and foreign currency. The amount contributed by the Entity to the
Deposits Guarantee Fund in years 2013 and 2012, constituting an irrecoverable
expense, amounts to Gs. 12.979.704.226 and Gs. 11.254.424.701 respectively.
XLVI
G.
FACTS OCCURRED AFTER THE CLOSING OF THE FISCAL YEAR
No facts of a financial or other character have occurred that need be disclosed
or which imply significant alterations to the patrimonial or financial statements,
or to the Entity´s results as of December 31, 2013.
H. Inflationary effects
No comprehensive procedures have been applied to adjust for inflation, except
the partial adjustment as mentioned in Note c.8 to these financial statements.
I.
Memorandum Accounts
The balance is comprised as follows:
Groups
31/12/2013
31/12/2012
Gs.
Gs.
Guarantees Received
Real Computable Guarantees
2.568.442.551.156
1.812.106.922.927
586.326.640.927
531.642.471.124
Securities under Custody - deposit
314.103.092.356
270.205.989.236
Securities under administration
211.404.734.436
181.556.181.570
Securities pledged in guarantee
850.007.081.686
676.900.880.568
Signature Guarantees
Administration of Securities and Deposits
Foreign businesses and Collections
33.250.975.090
37.095.847.938
Securities under collection for account of third parties
Import Collections
2.315.425.000
2.133.120.000
Securities remitted in collection
4.585.000.000
4.224.000.000
Correspondents, collections remitted
4.750.110.069
6.302.678.046
25.005.519.312
2.290.615.092
7.690.488.757.268
6.076.394.090.317
Credits opened by Correspondents
Other Memorandum Accounts
Others
Mandates and Commissions
26.454.168.355
24.371.299.265
Insurance Policies contracted
742.126.041.216
713.028.663.084
300.198
300.198
Irrecoverable Obligors
Foreign Exchange Position
Sale and assignment of Portfolio, Non financial Sector
Consortiums
Total Memorandum Accounts
2.146.241.411
5.884.927.538
13.228.087.420
-
6.561.647.274.490
5.156.394.449.570
19.636.282.000.390
15.500.532.436.473
XLVII
XLVIII
Jorge Enrique Rojas Rojas
Bachelor in Accounting and Administration Sciences
Aca Caraya 546 c/Leandro Prieto
Telephone 205722, 204308
Asuncion – Paraguay
Report from the Syndic
Mr. Conor McEnroy
President of the Board of Directors
1. In compliance with legal and statutory prescriptions, and with specific requirements of
Resolution 763/04 of the National Securities Commission and of Paragraph b) of Article
1124 of the Paraguayan Civil Code, I have proceeded to the verification of the books of
Sudameris Bank S.A.E.C.A., as well as to the Report, Patrimonial Situation Statement
as of December 31, 2013, and the corresponding Statements of Results and Cash Flow
regarding the fiscal year ended on such date. These last documents have been prepared
by the Bank´s Management for their presentation to the Shareholders Meeting and the
corresponding supervision organisms.
2. Based on my work, I have not found significant situations worth commenting on, and thus
I recommend the Shareholders, Mr. President, and the Members of the Board of Directors,
the approval of said accounting statements and of the Report, corresponding to fiscal year
ended on December 31, 2013.
Asunción, Paraguay, February 28, 2014
(Signed)
Jorge E. Rojas R.
Syndic
XLIX
L
Economic Environment
Indicators
LI
1. Evolution of Gross Internal Product
By Economic Sector – Variation in percentage
SECTORS
2009 20102011
2012* 2013*
Primary Sector Agriculture Cattle ranching Others, primary Secondary Sector Beef production Beverages and tobacco Machinery and equipment Other manufactures Construction Electricity and Water Third Sector Commerce Communications General Government Other services Taxes GDP at market prices -17,2 -25,0 4,8 -3,7 -0,8 6,3 4,6 -10,6 -3,6 2,0 -3,8 2,2 -3,4 4,4 15,2 2,5 -1,0 -4,0 -19,8 -28,3 7,2 2,2 4,6 7,0 5,0 -1,5 4,3 1,0 5,1 6,1 -2,6 13,1 25,5 4,0 -0,3 -1,2 34,1 49,8 8,5 -8,1 6,3 10,0 9,0 11,0 3,8 13,0 0
9,0 10,9 6,2 13,0 6,2 12,0 13,1 3,7 7,0 -7,1 3,1 -1,6 -16,7 7,0 4,3 1,7 1,5 7,3 5,8 3,0 15,0 6,0 6,4 3,0 4,3 36,4
50,5
9,6
0,8
7,9
13,0
2,0
1,5
8,5
14,0
0,3
9,5
10,5
10,0
7,0
9,8
7,5
13,6
* Preliminary figures, subject to review
Source: National Accounts and Domestic Market Department, Assistant General Management for Monetary Policy - BCP
2. Contribution of principal sectors to the rate of growth of the GDP
In percentages
SECTORS
2009 20102011*
Primary Sector Agriculture Cattle ranching Other primary Secondary Sector Beef production Beverages and tobacco Machinery and equipment Other manufactures Construction
Electricity and water Third Sector Commerce Communications General Government Other services Taxes GDP at market prices -4,2 -4,4 0,2 -0,1 -0,1 0,1 0,1 -0,1 -0,2 0,1 -0,5 0,9 -0,5 0,2 0,9 0,4 -0,07 -4,0 7,2 6,9 0,5 -0,1 0,7 0,3 0,2 0,1 0,3 0,5 0,0 3,9 1,7 0,2 0,9 1,0 0,8 13,1 0,9 1,3 -0,4 0,0 -0,2 -0,4 0,1 0,0 0,1 0,1 0,9 2,4 0,5 0,5 0,4 1,0 0,2 4,3 2012*
-4,9 -5,3 0,3 0,0 0,5 0,1 0,1 0,0 0,3 0,0 0,6 2,6 -0,4 0,5 1,8 0,6 -0,02 -1,2 * Preliminary figures, subject to review
LII
2013*
7,4
6,9
0,5
0,0
1,3
0,3
0,0
0,0
0,5
0,5
0,0
4,3
1,6
0,5
0,6
1,6
0,5
13,6
3. Evolution of GDP - Activities
Gross Value Added by economic activity
In millions of Dollars ( basis : current Guaraníes )
Economic Sector
2008
2009
2010
2011*
Agriculture 2.417 1.812
2.772 3.271 Cattle ranching 867 894 1.202 1.388 Forestry Exploitation 233 254 260 334 Fishing 9
9
9
12 Mining 18 23 25 32 Beef production 519 556 711 762 Industry
1.356 1.442 1.618 1.969 Construction
912 1.005 1.282 1.680 Total Production of Goods 6.330 5.995 7.879 9.449 Electricity and water 215 236 251 2.147 Transportation 611 636 657 728 Communications 437 487 543 630 Commerce
2.803 2.768 3.283 3.776 Finances 480 545 744 1.029 Home leasing 149 169 182 212 Services to companies 327 398 452 559 Hotels and Restaurants 158 172 203 249 Services to Homes 754 895 987 1.238 General Government 1.265 1.566 1.870 2.453 Total Production of Services
7.199 7.872 9.173 13.022 Gross Value Added
13.529 13.867 17.052 22.471 Taxes on Products 1.404
1.504 1.993 2.435 Gross Domestic Products 14.933 15.371 19.045 24.906 at purchaser´s prices
2012*
2.344
1.167
355
10
33
665
1.939
1.675
8.187
2.191
727
658
3.352
1.137
218
544
244
1.227
2.918
13.216
21.404
2.333
23.737
* Preliminary figures, subject to review
LIII
4. Consumer Price Index
Year
January
February
March
April
May
June
July
August
September
October
November
December
Year, accrued 2009 20102011 20122013
0,1%
-0,3%
-0,2%
-0,6%
0,0%
0,8%
-0,3%
1,0%
0,4%
0,8%
-0,5%
0,5%
1,9%
1,0%
-0,1%
0,9%
0,8%
-1,0%
0,6%
0,1%
0,9%
-0,4%
2,2%
0,4%
1,5%
7,2%
1,5%
1,5%
1,7%
-0,3%
0,0%
-0,6%
0,0%
1,0%
0,2%
-0,8%
-0,1%
0,8%
4,9%
1,1%
1,5%
0,5%
-0,2%
0,4%
-0,4%
0,1%
-0,2%
0,2%
-0,2%
0,6%
0,7%
4,0%
1,2%
-0,8%
-0,1%
0,2%
-0,3%
0,5%
0,5%
0,6%
0,3%
0,8%
0,7%
0,1%
3,7%
Mobile Inflation, last 12 Months
Año
Januaty
February
March
April
May
June
July
August
September
October
November
December
2009 20102011 20122013
5,91%
4,28%
3,38%
2,01%
2,21%
1,90%
1,13%
1,60%
2,26%
2,82%
1,96%
1,90%
2,79%
2,98%
4,11%
5,54%
4,51%
4,28%
4,67%
4,53%
3,78%
5,21%
6,15%
7,21%
7,80%
9,50%
10,30%
9,10%
10,20%
8,80%
8,70%
8,80%
9,40%
6,20%
5,60%
4,90%
4,40%
4,50%
3,30%
3,30%
3,80%
3,90%
4,00%
2,80%
2,80%
3,40%
4,10%
4,00%
4,10%
1,70%
1,20%
1,60%
0,90%
1,70%
2,20%
3,10%
3,20%
4,40%
4,40%
3,70%
Source: Assistant General Management for Monetary Policy - BCP
5. Nominal Rate of Exchange, reference currencies
Data in Guaraníes
Year
Peso Real USDEuro
2009
1.222 2.659 4.654 6.862
2010
1.151 2.696 4.574 5.863
2011
1.041 2.393 4.478 5.782
2012
860 2.065 4.224 5.579
2013
703 1.945 4.585 6.336
Source: Bloomberg Nominal exchange rate
LIV
6. Balance of Payments
In millions of Dollars
I.
II.
III.
IV.
Current Account Capital and Financial Account Errors and Omissions Reserve Assets 2009 2010 20112012*
2013*
481,5
62,3
371,4
-915,2
-57,3
194,9
181,6
-319,2
109,0
468,9
206,2
-784,1
-238,4
442,1
-228,3
24,5
245,7
525,6
193,1
-964,4
* Figures subject to review
Source: International Economics Department - Assistant General Management for Monetary Policy - BCP.
7. Public External Debt
YearBalances
2009
2010
2011
2012
2013*
2.833
2.911
2.788
2.926
3.375
* Figures as of 3rd quarter
Source: International Economics Department - Assistant General Management for Monetary Policy - BCP.
8. Current Account Balance
YearTotal
2009
2010
2011
2012*
2013*
482
-57
109
-238
246
Source: International Economics Department - Assistant General Management for Monetary Policy - BCP
9. Net International Reserves
YearBalance
2008
2009
2010
2011
2012*
2013*
2.864
3.861
4.168
4.984
4.994
5.820
LV
10. Exports, by principal items
In millions of Dollars, FOB
Year
Cotton
Fibers
Vegetable
Soy
Beans
Flour
Oil
Cereals
Beef
Wood
Electric
Energy
Others
Total
2008
25
1.464
586
545
372
621
118
1.944
704
6.380
2009
20
770
260
376
454
579
96
1.919
588
5.061
2010
24
1.591
223
323
548
919
102
1.986
802
6.517
2011
17
2.294
275
388
603
751
97
2.267
1.083
7.776
2012
44
1.582
139
198
1.042
796
89
2.232
1.162
7.284
2013*
25
2.506
428
874
728
958
75
2.049
1.251
8.894
* Preliminary figures of the Fiscal Taxation Customs Organization System
(Sistema de Ordenamiento Fiscal Impositivo Aduanero - SOFIA ) 3rd quarter.
11. Exports recorded per country
Argentina
Brazil
Uruguay
Total Mercosur
Rest of the
World
Total
2008
1.323
2.185
130
3.638
2.769
6.407
2009
556
2.238
63
2.857
2.222
5.080
2010
555
2.185
68
2.808
3.709
6.517
2011*
692
2.501
84
3.277
4.499
7.776
2012*
604
2.850
100
3.554
3.730
7.284
2013**
573
2.138
125
2.836
4.739
7.575
Año
* Preliminary figures – ** 3rd quarter.
12. Imports, by type of goods
Year
Consumer Goods
Intermediate Goods
Capital Goods
Total
2008
2.413
2.847
3.272
8.532
2009
2.182
1.983
2.352
6.517
2010
3.071
2.535
3.787
9.393
2011
3.658
3.478
4.413
11.549
2012*
3.404
3.670
3.682
10.756
2013**
2.479
2.830
3.127
8.436
* Preliminary figures- ** figures 3rd quarter.
LVI
13. Imports, per country
Year
Argentina
Brazil
Uruguay
Total
Mercosur
Continental
China
Rest of the
World
Total
2008
1.221
2.318
101
3.640
2.349
2.543
8.532
2009
1.042
1.527
82
2.652
1.954
1.910
6.517
2010
1.461
2.281
141
3.883
3.256
2.255
9.393
2011
1.626
3.072
181
4.879
3.439
3.231
11.549
2012*
1.762
2.551
155
4.468
2.979
3.309
10.756
2013**
1.200
2.301
102
3.604
2.374
2.459
8.436
* Preliminary figures- ** figures 3rd quarter.
14. Assets Accounts, Financial System
Year
2009
2010
2011
2012
2013
Available
2.288,5
2.307,6
2.848,3
3.303,7
3.897,2
Public and Private Securities
1.002,0
980,0
1.115,7
1.182,6
1.373,4
559,3
641,7
590,6
734,7
795,9
3.952,2
5.661,9
7.071,3
8.443,8
9.114,2
Other Credits
89,5
103,4
213,8
276,8
647,1
Credits Overdue
13,5
19,0
128,1
182,5
200,0
Investments
23,8
24,4
32,8
15,8
46,3
102,6
123,7
142,6
164,8
161,7
8.031,5
9.861,7
12.143,2
14.304,7
16.235,7
Credits Outstanding, financial sector
Credits Outstanding, Non financial sector
Usable Assets
Assets
15. Liabilities Accounts, Financial System
Year
2009
2010
2011
2012
2013
Obligations, financial sector
848,5
512,3
530,4
722,4
988,8
Obligations, non financial sector
6.090,0
7.130,5
8.381,5
9.832,2
10.991,3
Other Obligations
2.077,6
1.038,5
1.779,1
1.930,0
2.583,3
53,0
123,9
189,3
174,1
281,3
9.069,1
8.805,2
10.880,3
12.658,7
14.844,9
Provisions and Previsions
Liabilities
LVII
LVIII
Head Office
Edificio Sudameris: Independencia Nacional 513 esquina Cerro Corá – Tel. (021) 416 6000 –
Asunción, Paraguay.
Client Attention Center
Edificio Estanislao: Avda. España Esquina Luis Morales - Tel. (021)232 561/6 Asunción, Paraguay.
Branches
Asunción
•
Sucursal Abasto: Avda. Defensores del Chaco esquina Inca (SAPROCAL BLOQUE E LOCAL 43)
Tel.: (021)511 042 – 513 111.
•
Sucursal Brasilia: Avda. Brasilia 804 esquina Fray Luis de Granada – Tel. (021)203 272 – 232 520.
•
Sucursal España: Avda. España 2583 c/ Avda. Sacramento – Tel. (021)624 065/8 – 601 191.
•
Sucursal Eusebio Ayala: Avda. Eusebio Ayala 9012 c/ Bartolomé de las Casas - Tel.: (021)232 500/2 .
•
Sucursal Complejo Santos: Avda. Gral. Santos 1170 c/ Concordia – Tel. (021)229 670/1.
•
Sucursal Villa Morra: Avda. Mcal. López c/ Malutín - Tel. (021)613 700/1 663 009 – 609 859 – 608 771
Greater Asunción Area
•
Sucursal Luque: Avda. Gral. Elizardo Aquino esquina Curupayty tel.: (021)655 064/5.
•
Sucursal Mariano Roque Alonso: Ruta Transchaco Km. 14,5 c/ Cnel. Hermosilla – Tel.: (021)761 910/1.
•
Sucursal San Lorenzo: Avda. Cnel. Romero 2020 e/ Ruta Mcal. Estigarribia y Julia Miranda Cueto –
Tel.: (021)582 250 – 570 664.
Interior of the country
•
Sucursal Campo 9: Avda. José Asunción Flores esquina San Roque Gonzalez – Tel.: (0528)222 830/1.
•
Sucursal Ciudad del Este: Avda. Monseñor Rodriguez esquina Curupayty Tel.: (061)500 336 (061)512 893/4 (061)504 743/4 - (061)500 856.
•
Sucursal Concepción: Avda. Pdte. Franco 564 c / Iturbe - Tel.: (0331)241 105 – (0331)241 844.
•
Sucursal Coronel Oviedo: Tuyutí esquina Dr. José Manuel Jara – Tel.: (0521)204 446/7.
•
Sucursal Encarnación: Avda. Carlos Antonio López esquina 14 de Mayo - Tel.: (071)204 949/50.
•
Sucursal Hernandarias: Avda. Juan B. Flores 854 esquina Canindeyú – Tel.: (0631)22 411 – (0631)22 379.
•
Sucursal Itauguá: Ruta 2 Mcal. José Félix Estigarribia esquina Victoriano Aldama – Tel.: (0294)221 802 – (0294)221 803
(0294) 221 804.
•
Sucursal Katueté: Ruta 10, De las Residentas esquina Avda. 03 (Km. 365 Urbanización Solaris-) – Tel.: (0471)234 199.
•
Sucursal Paraná County Club: Avda. Paraná c/ Augusto Roa Bastos (Edificio Acacia) – Tel.: (061)578 290/1.
•
Sucursal Santa Rita: Avda. Carlos Antonio López c/ Cristóbal Colón – Tel.: (0673)221 590/1.
LIX
Automated Teller Network
Asunción
LX
•
Astoria: Avda. España c/ Senador Long.
•
CAC España: Avda. España y Luis de Morales.
•
Casino de Asunción: Avda. España y Avda. Sacramento.
•
Cooperativa Ntra. Señora de la Asunción (COOPENSA): Avda. José G. Artigas y Sgto. Esteban Ramirez.
•
Copetrol Colón : Avda. Colón y Gral. Díaz.
•
Copetrol Km 2 : Avda. Eusebio Ayala y Bartolomé de las Casas.
•
Copetrol Las Palmas: Avda. Bruno Guggiari y las Palmas.
•
Copetrol Maiteí: Avda. Madame Lynch y Calle 6.
•
Copetrol San José: Avda. España y San José.
•
Esso España: Avda. España y Washington.
•
Esso Principado S.A.: Avda. Kubitschek y José Asunción Flores.
•
Farma Total Lillo: Lillo 2742 c/ Denis Roa.
•
Havanna Senador Long: Senador Long y Lillo.
•
Hospital Bautista 1: Avda. República Argentina y Campos Cervera.
•
Hospital Bautista 2: Avda. República Argentina y Campos Cervera.
•
Petrobras Molas López: Avda. San Martín y Avda. Molas López.
•
Pizza Hut España: Avda. España 1517 y Tte. Delgado.
•
Pizza Hut Mariscal López: Avda. Mariscal López 4818 y R.I. 2 de Mayo.
•
Shopping Las Acacias: Avda. José Félix Bogado c/ 18 de Julio.
•
Shopping Mcal. López: Charles de Gaulle e/ Eulogio Estigarribia y Quesada.
•
Sucursal Brasilia: Avda. Brasilia y Fray Luis de Granada.
•
Sucursal Centro 1: Independencia Nacional y Cerro Corá.
•
Sucursal Centro 2: Independencia Nacional y Cerro Corá.
•
Sucursal España: Avda. España y Avda. Sacramento.
•
Sucursal Eusebio Ayala: Avda. Eusebio Ayala c/ Bartolomé de las Casas.
•
Sucursal General Santos: Avda. Gral. Santos c/ Concordia.
•
Sucursal Villa Morra: Avda. Mcal. Francisco Solano López c/ Malutín.
•
Supermercado Gran Vía Asunción: Avda. Eusebio Ayala y Avda. Choferes del Chaco.
•
Universidad Técnica de Comercialización y Desarrollo (UTCD): Avda. Sta. Teresa c/ Avda. Mcal. López.
•
Yacht y Golf Club Paraguayo: Avda. del Yacht Nº 11.
Greater Asunción area
•
BR Cacique Lambaré: Avda. Cacique Lambaré esquina Vencedores del Chaco.
•
BR Capiatá: Ruta 2 Mcal. Estigarribia Km. 19 (Al lado de la Casa de la Miel).
•
BR Surubi’í: Ruta 3 Gral. Elizardo Aquino Km. 18,5 (frente al segundo portón del Surubi´í).
•
BR Villa Elisa: Avda. Defensores del Chaco y Ypacarai.
•
BR Zeballos Cué: Hermann Gneimer y Sgto. Ferreira (Calle 10).
•
Copetrol Fernando de la Mora: Ruta 2 Mcal. José Félix Estigarribia y Cnel. Rafael Franco
•
Copetrol Luque: Avda. Corrales y Camboriú.
•
Copetrol San Lorenzo: Rodriguez de Francia casi 14 de Mayo.
•
Copetrol Villa Elisa: Avda. Enrique Von Polensky y Tobati.
•
Farmacia Catedral San Pablo: Avda. de la Victoria y Aztecas.
•
JBS Paraguay San Antonio: Avda. San Antonio c/ Cadete Boquerón, frente a la Comisaria de San Antonio.
•
Petrobras Laurelty: Ruta Cap. Insfrán e/ Sto. Domingo de Guzmán y Virgen del Pilar.
•
Petrobras Villa Olimpia: Avda. Mcal. López c/ Don Bosco.
•
Puerto Fénix Mariano Roque Alonso: Carlos Antonio López y paseo de Fátima.
•
Sucursal Itauguá: Ruta 2 “Mcal. José Félix Estigarribia” esquina Victoriano Aldama.
•
Sucursal Luque: Avda. Gral. Elizardo Aquino esquina Curupayty.
•
Sucursal Mariano Roque Alonso: Ruta Transchaco Km. 14,5 c/ Cnel. Hermosilla.
•
Sucursal San Lorenzo: Avda. Cnel. Romero 2020 e/ Ruta Mcal. Estigarribia y Julia Miranda Cueto.
•
Supermercado El Pueblo Fernando de la Mora: Ruta 2 y Avda. Zavala Cué.
•
Supermercado El Pueblo Lambaré: Avda. República Argentina y Vencedores del Chaco.
•
Supermercado El Pueblo Mariano Roque Alonso: Ruta Transchaco. Km 13 (Shopping La Rural).
•
Supermercado Gran Vía Luque: Avda. Gral. Elizardo Aquino y Avda. Nanawa (Curva Romero).
•
Supermercado Gran Vía Ñemby: Acceso Sur y Santa Rosa de Lima.
LXI
LXII
•
Casino Carnaval – Encarnación: Avda. Luis Irrazabal esq. Gral. Cabañas.
•
Copetrol Santa Rita : Ruta 6 y Cerro Largo.
•
Galeria Fenicia: Shopping King Fong – 3er. Piso – Ciudad del Este.
•
Hotel Casino Acaray: Avda. 11 de Setiembre y Dr. Luis Maria Argaña – Ciudad del Este
•
Petrobras Itá: General Bernardino Caballero y Ruta I - Cruce Itá.
•
Pizza Hut CDE: Avda. Alejo Garcia y Monseñor Francisco Cedzcich.
•
Planta Azucarera Paraguaya: Planta AZPA en la ciudad de Tebicuary.
•
Sucursal Campo 9: Avda. José Asunción Flores c/ San Roque González.
•
Sucursal Ciudad del Este: Avda. Monseñor Rodriguez y Curupayty.
•
Sucursal Concepción: Avda. Pdte. Franco e/ Iturbe y Cerró Corá.
•
Sucursal Coronel Oviedo: Tuyutí y Dr. José Manuel Jara.
•
Sucursal Encarnación: Avda. Carlos Antonio López y 14 de Mayo.
•
Sucursal Hernandarias: Avda. Juan B. Flores y Canindeyú.
•
Sucursal Katueté: Ruta 10, De las Residentas Km. 365 y Avda. 03 Urbanización Solaris.
•
Sucursal Paraná County Club: Avda. Paraná c/ Augusto Roa Bastos.
•
Sucursal Santa Rita: Avda. Carlos Antonio López c/ Cristóbal Colón.
•
Supermercado Gran Vía CDE – Km.4: Ruta Internacional Km 4,5.
•
Supermercado Arco Iris CDE: Pioneros del Este y Adrian Jara.
•
Supermercado Gran Vía CDE – Km. 7: Ruta Internacional Km. 7 - Avda. Monseñor Rodriguez.
•
Supermercado Gran Vía CDE Centro: Paí Pérez esquina Carlos Antonio López.
•
Supermercado Gran Vía Remansito: Avda. Bernardino Caballero y Sgto. Silva - Ciudad del Este.
•
Supermercado Pilar: Avda. Juan B. Flores y Aquidabán – Hernandarias.
SUDAMERIS EXPRESS
Head Office Sudameris: Independencia Nacional 513 esquina Cerro Corá – Asunción, Paraguay.
Asunción
•
Sucursal Abasto: Avda. Defensores del Chaco esquina Inca (SAPROCAL BLOQUE E LOCAL 43)
•
Sucursal Brasilia: Avda. Brasilia N° 804 - Barrio Jara
•
Sucursal Complejo Santos: Gral. Santos 1170 casi Concordia. Barrio Jara
•
Sucursal España: Avda. España 2583 c/ Avda. Sacramento
•
Sucursal Eusebio Ayala: Avda. Eusebio Ayala c/ Bartolomé de las Casas
•
Sucursal Villa Morra: Avda. Mcal. López c/ Malutín.
Greater Asunción area
•
Sucursal Itauguá: Ruta 2 Mcal. José Félix Estigarribia esquina Victoriano Aldama.
•
Sucursal Luque: Avda. Gral. Elizardo Aquino esquina Curupayty. - Tel.: (021)655 064/5.
•
Sucursal Mariano Roque Alonso: Ruta Transchaco Km 14,5 casi Cnel. Hermosilla.
•
Sucursal San Lorenzo: Avda. Cnel. Romero N° 2020 - Barrio San Pedro.
•
Sucursal Ciudad del Este: Avda. Monseñor Rodriguez y Curupayty.
•
Sucursal Hernandarias: Avda. Juan B. Flores y Canindeyú.
•
Sucursal Paraná County Club: Avda. Paraná c/ Augusto Roa Bastos.
•
Sucursal Santa Rita: Avda. Carlos Antonio López c/ Cristóbal Colón – Tel.: (0673)221 590/1.
LXIII
LXIV

12 Board of Director

Transcription

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