2010 - BAC

Transcription

2010 - BAC

INDICE
TABLE OF CONTENTS
ENTORNO MACROECONÓMICO 2010
2010 MACROECONOMIC ENVIRONMENT
PERFIL DEL GRUPO BAC CREDOMATIC
BAC CREDOMATIC GROUP PROFILE
GOBIERNO CORPORATIVO Y ÉTICA
CORPORATE GOVERNANCE AND ETHICS
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ESTRUCTURA LEGAL Y REGULACION
LEGAL STRUCTURE AND REGULATION
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VALOR ECONÓMICO GENERADO Y DISTRIBUIDO
GENERATED AND DISTRIBUTED ECONOMIC VALUE
-24-
INFORMACIÓN FINANCIERA RELEVANTE
RELEVANT FINANCIAL INFORMATION
GESTIÓN DEL RIESGO
RISK MANAGEMENT
ESTADOS FINANCIEROS CONSOLIDADOS
CONSOLIDATED FINANCIAL STATEMENTS
Memoria Anual ‘10 | Annual Report ‘10
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-48-
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- 2i --
Ernesto Castegnaro
Presidente y CEO de BAC International Bank
President & CEO BAC International Bank
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J U N TA D I R E C T I VA D E B A C I N T E R N AT I O N A L B A N K I N C .
B A C I N T E R N AT I O N A L B A N K I N C . B OA R D O F D I R E C TO R S
De pie / Standing
• Eric Campos - Director / Director
• Alvaro Velázquez - Asesor Junta Directiva / Counsel of Board of Directors
• Ernesto Castegnaro - Director y Presidente / Director and CEO
• Carlos Arcesio Paz - Director / Director
Sentados / Seated
• Rodolfo Tabash - Director / Director
• Eugenia Castañeda - Directora y Tesorera / Director and Treasurer
• Federico Odio - Director y Secretario / Director and Secretary
• Ana María Cuellar - Directora y Vicepresidenta / Director and Vicepresident
Ausente / Absent
• Guillermo Perry - Director / Director
-4-
G E R E N T E S G E N E R A L E S Y G E R E N T E S D E PA Í S D E B A C I N T E R N AT I O N A L B A N K
B A C I N T E R N AT I O N A L B A N K
GENERAL AND COUNTRY MANAGERS
• Ricardo Horvilleur - Credomatic of Florida
• Alejandro Chamorro - Credomatic Mexico
• Roberto Fuentes - Gerente País / Country Manager Guatemala
• Juan José Viaud - BAC Guatemala
• Juan Maldonado - Credomatic Guatemala
• Raúl Cardenal - Gerente País / Country Manager El Salvador
• Gerardo Ruiz - BAC El Salvador
• Fernando González - Credomatic El Salvador
• Jacobo Atala - BAC BAMER
• Juan Carlos Páez - Credomatic Honduras
• Juan Carlos Sansón - Gerente País / Country Manager Nicaragua
• Edgar Ahlers - Credomatic Nicaragua
• Gerardo Corrales - BAC San José
• José Ignacio Cordero - Credomatic Costa Rica
• Rodolfo Tabash - Gerente País / Country Manager Panama
• Jaime Moreno - BAC Panama
• Juan Carlos Mejía - Credomatic Panama
D I R E C TO R E S D E A R E A D E B A C I N T E R N AT I O N A L B A N K
BAC I NTER NATIONAL BAN K AR EA DI R ECTORS
• Eric Campos - Banca / COO Bank Business
• Juan Carlos Páez - Tarjetas de Crédito / COO Card Business
• Federico Odio - Finanzas / CFO
• Eugenia Castañeda - Riesgo / Risk
• Luciano Astorga - Cumplimiento / Compliance
• José Calderón - Auditoría Interna / Internal Audit
• Pablo Ayón - Recursos Humanos / HHRR
• Ricardo Bolaños - Calidad y Productividad / CPQ
• Alfonso Salvo - Canales y Tecnología / Technology and Services
• Roxana Víquez - Responsabilidad Social Corporativa / Corporate Social Responsibility
• Daniel Pérez - Asesor Jurídico - Legal Counsel
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Resumen de principales cifras 2010
Activos / Assets
US$ 8,409 MM
Cartera de crédito / Loan portfolio
US$ 5,356 MM
Depósitos totales / Total deposits
US$ 6,033 MM
Patrimonio / Equity
US$ 930 MM
Utilidad neta / Net income
US$151.2 MM
Países de operación
Countries of operation
N° de Colaboradores
Number of employees
15,689
7
N° de sucursales, cajas
empresariales y rapibancos
No. of branches
1,370
N° de ATMs y kioscos
No. of ATMs and kiosks
Otros canales de servicio al cliente:
• Sucursal Electrónica
• Centros de Atención Telefónica
• BAC Móvil
• Web Chat
421
Other customer service channels
• E-banking
• Calls Centers
• BAC Móvil (Mobile Banking)
• Web Chat
Rating largo plazo S&P | Long-term S&P rating: BBB(perspectiva estable / stable outlook)
ROE: 17.6% | ROA: 1.9%
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Creemos y trabajamos por una región sin fronteras
We believe and we work by a region without boundaries
ENTORNO MACROECONÓMICO 2010
2010 MACROECONOMIC ENVIRONMENT
Durante el 2009, la crisis que comenzó en el sector
financiero terminó afectando el sector real de
aquellas regiones que tenían poca o ninguna relación
con los factores de riesgo que le dieron origen. Un
ejemplo claro fue la región centroamericana, donde
hubo disminución de las exportaciones, la inversión
extranjera directa (IED), los ingresos por turismo y las
remesas familiares, lo que provocó una baja en el ritmo
de crecimiento económico, aunque el impacto no fue
uniforme entre países ni tampoco entre sectores de un
mismo país.
Ya en el 2010 se asoman los primeros signos de
recuperación económica y se espera que esta sea
más visible durante el 2011. Por ejemplo, en el 2009 el
Producto Interno Bruto (PIB) de Centroamérica fue de
US$ 133 mil millones, mientras que en el 2010 sería de
US$ 144 mil millones a precios corrientes, según cifras
preliminares publicadas por fuentes oficiales de cada
país.
During 2009 the crisis that began in the financial sector
wound up affecting the real sector in regions having
little or no relation to the risk factors from which it
arose. Central America was a clear example; exports,
foreign direct investment (FDI), tourism earnings and
family remittances all fell, leading to a slower pace of
economic growth although the impact was not uniform
across countries or sectors within the same country.
The first signs of economic recovery could already be
seen in 2010 and are expected to gain strength in 2011.
For example, Central America’s gross domestic product
in 2009 was US$ 145 billion at current prices according
to preliminary figures published by official sources in
each country.
Centroamérica: Producto Interno Bruto / Central America: Gross Domestic Product
(Miles de millones US$ / US$ Bn)
145
133
132
119
105
2006
2007
2008
2009
2010(p)
Fuente: Bancos Centrales / Dirección de Estadísticas y Censos de Panamá
Source: Central Banks / Department of Statistics Panama
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En cuanto al crecimiento económico real, en el 2008,
este fue del 4.4% en promedio para toda la región. En
el 2009 se sintieron los efectos de la crisis en mayor
medida, de manera que las economías en conjunto
experimentaron un crecimiento negativo del -0.6%.
Este porcentaje contrasta con el 3.1% logrado en el
2010 y con el cual se retoma la senda de crecimiento
económico.
In 2008, real economic growth was an average 4.4%
for the entire region; in 2009, when the effects of the
crisis were felt more strongly, the region as a whole saw
negative growth of -0.6%. The contrasts with the 3.1%
growth reached in 2010, marking a resumption of the
economic upswing.
Crecimiento PIB real (%) / Real GDP growth (%)
12.0
10.7
10.0
8.0
6.5
6.0
4.0
2.6
1.9
2.0
4.4
4.2
4.0
3.3
3.1
2.4
2.7
1.7
0.5
3.1
2.4
0.6
0
(0.6)
-2.0
(2.1)
-4.0
(1.5)
(1.3)
NICARAGUA
COSTA RICA
(3.5)
GUATEMALA
HONDURAS
EL SALVADOR
2008
2009
PANAMÁ
REGIONAL
2010(p)
Además, como resultado de esta recuperación se
incrementaron los flujos de capital provenientes
del exterior sobre todo debido a una mejora en
las exportaciones y la inversión extranjera directa
(IED), lo que provocó un aumento de las reservas
monetarias internacionales en prácticamente todos
los países del área centroamericana. En el 2009, las
reservas sumaron US$ 18,981 millones mientras que
a finales del año anterior estas ascendieron a US$
21,307 millones.
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As a result of this recovery, capital inflows from abroad
rose largely due to stronger exports and foreign
direct investment (FDI), which in turn led to more
international monetary reserves in practically all
Central American countries. In 2009, these reserves
were at US$ 19.0 billion while at the end of last year
they had risen to US$ 21.3 billion.
Reservas monetarias internacionales / International Monetary Reserves
(Millones US$ / US$ MM)
6.0
5.2
4.7
4.6
4.1
3.8
3.5
3.0
2.7
2.5
3.0
2.9
2.5
2.4
2.1
1.6
1.6
1.0
GUATEMALA
HONDURAS
EL SALVADOR
NICARAGUA
2009
2008
COSTA RICA
PANAMÁ
2010
A continuación se presenta un resumen de las
principales variables económicas por país al finalizar
el 2010
Below is a summary of the main economic variables at
the end of 2010, by country.
América Central: Principales Indicadores 2010
Central America: 2010 Main Indicators
Guatemala
Honduras
El Salvador Nicaragua
Costa Rica
Panamá
PIB (US$ Miles de millones) | GDP (US $ Bn)
40.3
15.5
21.7
6.4
34.2
26.4
PIB per cápita (US$) | GDP per capita (US$)
2,808
1,922
3,511
1,108
7,494
7,740
Crecimiento PIB real (%) | Real GDP growth (%)
1.9
2.6
0.6
1.7
4.2
6.5
Población (Millones) | Population (Million)
14.4
8.0
6.2
5.8
4.6
3.4
Inflación (%) | Inflation (%)
5.4
6.5
2.1
9.2
5.8
3.5
IED (US$ MM) | FDI (US$ MM)
631
739
74
301
1,450
2,305
Exportaciones (US$ Miles de millones) |
Exports (US$ bn)
8.3
5.8
4.5
2.8
9.3
11.0
Importaciones (US$ Miles de millones) |
Imports (US$ bn)
13.7
8.5
8.5
4.5
13.6
14.7
Calificación S&P | S&P Rating
BB
B
BB-
n.a
BB
BBB-
Calificación Moody’s | Moody’s Rating
Ba1
B2
Ba1
B3
Baa3
Baa3
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Más que soluciones financieras innovadoras,
brindamos oportunidades y desarrollo
More than financial innovative solutions,
we offer opportunities and development
PERFIL DEL GRUPO BAC CREDOMATIC
PROFILE OF BAC CREDOMATIC GROUP
2.1 Historia
2.1 History
Los inicios del Grupo BAC Credomatic se remontan a
más de medio siglo atrás, cuando en 1952 se fundó el
Banco de América en Nicaragua.
The beginnings of the BAC Credomatic Group date back
more than half a century to 1952, with the founding of
Banco de America in Nicaragua.
A mediados de los años ochenta, el Grupo decidió
ingresar en otros mercados de la región, empezando
por Costa Rica con la adquisición de lo que hoy se
conoce como Banco BAC San José. Fue en la década
de 1990 que se concretó la expansión hacia los otros
mercados centroamericanos, fortaleciendo así la
presencia del Grupo en toda la región, la cual se
mantiene hasta hoy en día.
In the mid-eighties the Group decided to move into
other markets of the region, starting with Costa Rica
through the acquisition of what is known today as
Banco BAC San José. Expansion into other Central
American markets was completed in the 1990s, thus
consolidating a presence throughout the region that
has been maintained up to the present.
Ya en el año 2004 el Grupo inició sus operaciones
de tarjeta de crédito en México y, un año más, tarde
se llevó a cabo una alianza estratégica por medio
de la cual GE Consumer Finance (subsidiaria de GE
Capital Corporation) adquirió el 49.99% del capital
de BAC Credomatic, una sociedad que controlaba
indirectamente el 100% de BAC International Bank.
By 2004 the Group had started up its credit card
operations in Mexico and one year later formed a
strategic partnership whereby GE Consumer Finance,
subsidiary of GE Capital Corporation, acquired 49.99%
of the capital stock of BAC Credomatic, which indirectly
controlled 100% of BAC International Bank.
Paralelamente y como parte de la estrategia de
expansión, se llevó a cabo la adquisición del Banco
Mercantil (BAMER) de Honduras, uno de los bancos
privados más importantes de ese país, para dar paso a
lo que hoy se conoce como BAC BAMER. En ese mismo
año también se adquirieron Propemi (Programa
de Promoción a la Pequeña y Microempresa) en El
Salvador y la Corporación Financiera Miravalles en
Costa Rica, ambas compañías dirigidas a segmentos
específicos de mercado.
At the same time, and as part of its expansion strategy,
the Group acquired Banco Mercantil (BAMER), one of
the top private banks in Honduras, clearing the way
for what is now BAC BAMER. That same year it also
acquired Propemi (Program for the Promotion of Small
and Micro Enterprise) in El Salvador and Corporación
Financiera Miravalles in Costa Rica, both geared to
specific market segments.
1952
1970’s
1980’s
Se fundó el Banco
de América en
Nicaragua
Se iniciaron las
operaciones de tarjeta
de crédito mediante las
empresas Credomatic
El Grupo incursionó
en el negocio de
banca en Costa Rica
Banco de América
founded in
Nicaragua
Credit card operations
initiated through the
Credomatic companies
The Group enters the
banking business in
Costa Rica
1990’s
Se obtuvieron las licencias
bancarias en el resto de los
países de Centroamérica y
se fortaleció aún más la
presencia del Grupo en
toda la región
Banking licenses obtained
in the rest of the Central
American countries and
the Group’s presence
further strengthened
throughout the region
2004
Inicio de
operaciones de
tarjeta de crédito en
México
Credit card
operations launched
in Mexico
- 12 -
A mediados del 2009, la compañía GE Capital
Corporation aumentó su participación accionaria al
75%, convirtiéndose así en el accionista mayoritario.
No obstante, a raíz de un cambio de estrategia a nivel
mundial, GE decidió concentrarse más en la actividad
industrial (infraestructura, tecnología y salud) y
menos en actividades de banca privada y comercial.
In mid-2009, GE Capital Corporation increased its share
of stock to 75%, becoming majority shareholder. With
the change in its global strategy, however, GE decided
to concentrate more on industry (infrastructure,
technology and health) and less on private and
commercial banking activities.
Como resultado, en julio del 2010, el Grupo Aval de
Colombia, el conglomerado financiero más grande
de ese país —conformado por el Banco de Bogotá,
el Banco de Occidente, el Banco AV Villas, el Banco
Popular y el fondo de pensiones AFP Porvenir—,
suscribió un contrato de compraventa de acciones
con GE Consumer Finance relativo a la adquisición
del 100% de las acciones del Grupo BAC Credomatic.
En diciembre del 2010, y después de obtener las
aprobaciones de las superintendencias de entidades
financieras de cada país, el proceso de compra
culminó exitosamente.
As a result, in July 2010 Grupo Aval de Colombia, the
country’s largest financial conglomerate consisting of
Banco de Bogotá, Banco de Occidente, Banco AV Villas,
Banco Popular and the AFP Porvenir pension fund
company, signed a stock purchase agreement with GE
Consumer Finance to buy 100% of the BAC Credomatic
Group’s shares. After approval had been obtained
from each country’s financial entity regulators, the
acquisition was completed successfully in December
2010.
las mejores prácticas de ambas partes y, sobre todo,
compartir la visión de negocios, lo que hace que BAC
Credomatic siga siendo hoy en día una organización
caracterizada por el mejoramiento continuo, la pasión
por la excelencia, la innovación y la creatividad.
a business vision. As a consequence, today BAC
Credomatic continues as an organization characterized
by continuous improvement, passion for excellence,
innovation and creativity.
1952
1970’s
1980’s
1990’s
2004
obtuvieron
licenciasthe change in
It should be Se
noted
that las
despite
Se iniciaron las
El Grupo incursionó
bancarias en el resto de los
Inicio de
Se fundó elCabe
Bancoresaltar que,
operaciones
de
tarjeta
shareholder
control,
BAC
Credomatic
Groupoperaciones
has
países
de
Centroamérica
y
en el negocio de
a pesar del cambio de control
de
de América en
de crédito mediante las
se
fortaleció
aún
más
la
banca en Costa
Rica
maintained
its identity
business
and inde crédito en
accionario, la estrategia
negocios y la identidad
presenciaand
del Grupo
en strategy,tarjeta
Nicaragua
empresas de
Credomatic
México
toda la región
Group enters
del Grupo BACCredit
Credomatic
se mantienen The
y, más
fact the
the acquisition provided an opportunity to offer
Banco de América
card operations
banking business in
Banking
licenses
obtained
Credit
card
adquisición
ha sido
foundedbien,
in a raíz de lainitiated
through
the posible ofrecer
its customers products
with
greater valueoperations
added, launched
in the rest of
the Central
Costa Rica
Nicaragua
Credomatic
American countries and
productos de mayor
valor companies
agregado a los clientes,
in Mexico
share experiences,thetake
advantage
Group’s
presence of synergies and
further strengthened
compartir experiencias, aprovechar las sinergias y
best practices ofthroughout
both groups,
and most of all, share
the region
2005
2007
2009
2010
Alianza estratégica
con GE Consumer
Finance (adquisición
del 49,99% de las
acciones)
Adquisición de BAMER
(Honduras), Propemi
(El Salvador) y la Corporación Financiera
Miravalles (Costa Rica)
GE Capital aumenta
su participación de
capital al 75%
Grupo Aval de Colombia
adquiere el 100%
de las acciones del
Grupo
GE Capital increases
its capital share to
75%
Grupo Aval de Colombia
acquires 100% of the
Group’s shares
Strategic partnership
with GE Consumer
Finance (acquisition
of 49.99% of the
stock)
- 13 -
Acquisition of BAMER
(Honduras), Propemi (El
Salvador)
and Corporación Financiera
Miravalles (Costa Rica)
2.2 Misión - Visión
2.2 Mission and Vision
NUESTRA MISIÓN
OUR MISSION
Facilitar con excelencia el intercambio y financiamiento
de bienes y servicios a nuestros clientes de la región
donde operamos, a través de medios de pago y
soluciones financieras innovadoras y rentables que
contribuyan a mejorar su calidad de vida, así como la de
nuestros colaboradores y accionistas.
Facilitate with excellence the exchange and financing of
goods and services for our customers in the regions where
we operate, through innovative and profitable financial
solutions and payment methods that help improve their
quality of life and that of our collaborators and
shareholders.
NUESTRA VISIÓN
OUR VISION
El Grupo BAC Credomatic se propone ser la mejor opción
financiera de la región donde opera, en función de su
liderazgo en el desempeño financiero, la calidad de sus
productos y servicios y sus competencias distintivas en
tecnología, administración de recursos financieros y
medios de pago.
BAC Credomatic Group intends to be the best financial
option in the region where it operates in terms of its
leadership in financial performance, its quality products
and services, and its hallmark competencies in technology,
administration of financial resources and means of
payment methods.
Para alcanzar estos objetivos, el Grupo cuenta con
un equipo profesional y creativo, comprometido de
manera apasionada con la excelencia, que se rige por
principios éticos y actúa con claro sentido de prudencia
financiera. A fin de satisfacer las necesidades de sus
clientes, las empresas del Grupo BAC Credomatic
operan bajo un enfoque unitario regional, promueven
una cultura de alineamiento organizativo y se miden
por estándares de instituciones financieras de clase
mundial.
In the pursuit of these goals, the Group has developed a
creative and professional team passionately committed
to excellence, governed by ethical principles and acting
with a clear sense of financial prudence. To meet its
customers’ needs, the companies in BAC Credomatic
Group operate under a regional unit approach,
promote a culture of organizational alignment and
gauge themselves by standards of world-class financial
institutions.
- 14 -
2.3 Valores corporativos
- 15 -
2.3 Corporate Values
DISCIPLINA
DISCIPLINE
Es tener orden, profesionalismo, buena
conducta, puntualidad, respeto a los
procedimientos y persistencia en todo lo que
hacemos.
Orderly, professional, well-behaved, punctual,
respectful of procedures and persistent in all that
we do.
INTEGRIDAD
INTEGRITY
Es decir siempre la verdad, ser responsable de
nuestros actos, afrontar los problemas, decir lo
que pensamos y hacer lo que decimos.
Always telling the truth, being responsible for our
actions, facing the issues, saying what we think
and doing what we say.
FLEXIBILIDAD E
INNOVACIÓN
FLEXIBILITY AND
INNOVATION
Capacidad de adaptarnos a las necesidades y las
de nuestros clientes externos e internos.
Ability to adapt to the needs of our external and
internal customers.
HUMILDAD Y
ESPÍRITU DE SERVICIO
HUMBLENESS AND
SPIRIT OF SERVICE
Es tener compañerismo, ser leales, aceptar los
errores propios y ajenos, generar entusiasmo y
responder con legítimo interés a las
necesidades de nuestros clientes.
Camaraderie, being loyal, accepting our own and
others’ mistakes, generating enthusiasm and
responding with true interest to the needs of our
customers.
CONFIABILIDAD
RELIABILITY
Es asegurarnos de suministrar información
veraz, controlar bien los procesos, honrar los
compromisos, tener discreción y manejar los
bienes ajenos con mucha prudencia.
Making sure to provide truthful information,
control processes well, honor commitments,
maintain discretion and manage others' assets
with a great deal of prudence.
MEJORAMIENTO
CONTINUO
CONTINUAL
IMPROVEMENT
Es el compromiso de buscar siempre la
excelencia en todo lo que somos y lo que
hacemos.
Committed to a constant search for excellence in
all that we are and all that we do.
RESPETO A LAS
PERSONAS
RESPECT FOR OTHERS
Es garantizar justicia y equidad en un ambiente
libre de discriminación, donde se respetan las
ideas y la forma de ser de cada uno.
Guaranteeing justice and equity in an
environment free of discrimination where every
individual’s ideas and way of being are respected.
2.4 Productos y servicios
2.4 Products and Services
La amplia gama de productos ofrecidos por el Grupo
BAC Credomatic en toda la región es mejorada
constantemente, con el objetivo primordial de ofrecer
a nuestros clientes actuales y potenciales soluciones
financieras de gran valor agregado.
BAC Credomatic Group is constantly improving its wide
range of products throughout the region, its primary
goal being to offer our existing and potential customers
financial solutions with superior value added.
En el área de banca personal y corporativa, ofrecemos:
• Depósitos a la vista y a plazo
• Créditos
• Pago de servicios
• Planes de pensión
• Fondos de inversión
• Servicios de asesoría para inversión en títulos
valores
• Arrendamientos
• Factoreo
• Banca privada
• Servicios de seguro
• Transferencias locales e internacionales
• Pago de planilla
• Pago de impuestos
• Pago electrónico de servicios y proveedores,
entre otros.
Our personal and corporate banking divisions offer:
• Demand and time deposits
• Loans
• Utilities payment services
• Pension plans
• Investment funds
• Stock market consulting
• Leasing
• Invoice discounting
• Private banking
• Insurance services
• International and local wire transfers
• Payroll services
• Tax payments and electronic supplier payments
and more.
En el área de tarjetas ponemos a disposición de
nuestros clientes gran variedad de tarjetas de crédito
y débito de las marcas VISA, Mastercard y American
Express, las cuales son acompañadas de distintos
servicios y beneficios de gran valor agregado, lo que
ha permitido fortalecer el liderazgo en el negocio
adquiriente en la región.
Our card division provides customers a wide variety of
VISA, MasterCard and American Express credit and
debit cards, accompanied by services and benefits
of great value added, which has made it possible to
strengthen our leadership in the region’s acquiring
business.
Entre los canales de servicio disponibles se encuentran
las agencias, kioscos, cajas empresariales, cajeros
ATM FULL, sucursal electrónica, centros de atención
telefónica, BAC Móvil —para realizar trámites
bancarios por medio de la telefonía celular— y Web
Chat —para atención de consultas desde cualquier
lugar con acceso a Internet—, entre otros.
Our service channels include traditional branches,
kiosks, in-company bank windows, full-service ATMs,
e-banking, call centers, BAC Móvil for cell phone
banking, and Web Chat attending queries from any
place with Internet access, among others.
- 16 -
Para lograr buenos resultados se requiere contar
con integridad y transparencia
To achieve good results are required
integrity and transparency
GOBIERNO CORPORATIVO Y ÉTICA
CORPORATE GOVERNANCE AND ETHICS
3.1 Comités y estructura de gobierno corporativo
3.1 Corporate Governance Structure and Committees
La estructura de gobierno corporativo del Grupo BAC
Credomatic tiene entre sus principales objetivos
supervisar el desempeño del equipo gerencial de
cada país, garantizar el adecuado funcionamiento del
sistema de control interno, supervisar las exposiciones
a los riesgos y gestionarlos eficazmente.
The primary goals of the BAC Credomatic Group’s
corporate governance structure are to oversee the
performance of its management team in each country,
guarantee proper functioning of the internal control
system, supervise exposure to risks and manage them
effectively.
Monitorea todo el proceso de
crédito y su aprobación
Monitors the entire loan and
approval process
Controla el manejo eficaz de los
riesgos de mercado y liquidez, así
como las exposiciones del Grupo
CRÉDITO
Credit
Controls effective management of
market and liquidity risks, as well as
the Group’s exposures
Prevención del lavado de dinero,
integridad y revisión de las directrices
de cumplimiento en general
Prevention of money laundering,
integrity and review of compliance
directives in general
CUMPLIMIENTO
Compliance
ALICO
JUNTA
DIRECTIVA
Board of
Directors
AUDITORÍA
Audit
OPERACIONES
Operations
Calidad de la información contable
y financiera Cumplimiento continuo
de las normas de contabilidad
Aseguramiento de la continuidad
del negocio, riesgos operativos y
tecnológicos
Quality of accounting and financial
information; continuous compliance
with accounting standards
Assurance of business continuity,
operating and technological risks
- 18 -
Como se muestra en el diagrama anterior, la Junta
Directiva Regional de BAC Credomatic es el órgano
de mayor autoridad, y su labor es apoyada por los
Comités Regionales de Activos y Pasivos (ALICO,
por sus siglas en inglés), Crédito, Cumplimiento,
Operaciones y Auditoría.
Dichos comités están conformados por miembros de
la Junta Directiva Regional, con el fin de garantizar un
monitoreo constante sobre el desempeño financiero
del Grupo y el cumplimiento de las políticas
establecidas y las directrices emitidas.
En cuanto a la estructura gerencial, el Chief Executive
Officer (CEO) es la persona de mayor autoridad, y
su labor principal consiste en dirigir las estrategias
del Grupo en las áreas de banca, tarjetas de crédito,
riesgo, finanzas, recursos humanos, tecnologías
de información y canales, legal, cumplimiento,
productividad, auditoría y responsabilidad social
corporativa.
En cada país existe un Gerente País, un Gerente
de Banco y un Gerente de Tarjeta, quienes son
responsables de la ejecución de la estrategia de
negocios de acuerdo con el marco regulatorio y de
negocios de cada país y, por consiguiente, de alcanzar
las metas establecidas.
3.2 Cumpliendo cada día
Con el paso de los años, el Grupo BAC Credomatic
se ha desarrollado como una organización de clase
mundial gracias al esfuerzo permanente en procura
de la excelencia por parte de todo el equipo de
trabajo, lo que la convierte en una organización
exitosa, líder en el mercado centroamericano y con
excelente reputación. Esas características que hoy nos
distinguen queremos preservarlas.
Nuestra empresa está comprometida con realizar
las actividades de negocio siguiendo los más altos
modelos de legalidad, transparencia y justicia.
Consciente de la enorme importancia de la integridad
y ética en los negocios y la prevención de la
corrupción, nuestra empresa aborda el tema con gran
responsabilidad, e implementa y capacita al personal
en políticas y programas específicos para minimizar el
riesgo de incumplimiento.
- 19 -
As shown in the diagram above, the Regional Board
of Directors of BAC Credomatic is the body of highest
authority and its work is supported by the Regional
Assets and Liabilities Committees (ALICO) for Credit,
Compliance, Operations and Auditing.
These committees are made up of Regional Board
of Director members in order to guarantee constant
monitoring of the Group’s financial performance and
compliance with established policies and directives.
In the management structure, the top authority is
the Chief Executive Officer (CEO), whose main task
is to direct the Group’s strategies in the areas of
banking, credit cards, risk, finance, human resources,
information technology and channels, legal,
compliance, productivity, auditing and corporate social
responsibility.
Each country also has a country manager, banking
manager and card manager responsible for carrying
out the business strategy in accordance with each
country’s business and regulatory frameworks, and
consequently for meeting the established targets.
3.2 Accomplishing every day
Over the years, BAC Credomatic Group has developed
into a world-class organization thanks to permanent
efforts in search of excellence by its entire work team,
turning it into a successful leading organization in the
Central American market with an excellent reputation.
We want to preserve the characteristics that make us
stand out today.
Our company is committed to conducting business
within the highest possible standards of legality,
transparency and justice. Aware of the enormous
importance of integrity and ethics in business and in the
prevention of corruption, our company addresses the
issue with a great sense of responsibility, implementing
and training staff in specific policies and programs to
minimize the risk of noncompliance.
Es por ello que todos debemos prevenir delitos como
el lavado de dinero en nuestra organización, y mitigar
así riesgos de pérdida de reputación e imagen, legales
u operativos que puedan surgir, para mantener una
integridad intachable.
Por esta razón, el Grupo BAC Credomatic realiza
transacciones comerciales solo con aquellos clientes
que gozan de buena reputación en las actividades
comerciales derivadas de fondos legítimos.
Continuamos trabajando fuertemente en la
prevención y en sistemas de control que se deben
llevar día a día en cumplimiento. Por lo tanto, se
han fortalecido los proyectos a nivel regional de
Campeones de Cumplimiento, las herramientas de
control como Issue Tracker y el programa de Prevención
de Lavado de Dinero.
Asimismo, se mantiene una constante comunicación y
capacitación en el tema de integridad y cumplimiento
con todos los colaboradores de la Organización, de
parte de los Gerentes Generales, los Ombudsperson y
los Gerentes de Cumplimiento en cada país.
3.3 Código de integridad y ética
Durante más de 50 años hemos demostrado un firme
compromiso con la integridad en el trabajo. A medida
que nuestra actividad se ha ido ampliando a nuevos
sectores y países, además de lograr un gran crecimiento
sostenido, hemos adquirido la buena reputación de
seguir unas conductas éticas y ajustadas a derecho en
cada uno de los lugares donde operamos.
Continuando con el fortalecimiento de esa cultura
en nuestra Organización, hemos publicado
recientemente la segunda versión del Código de
integridad y ética de BAC Credomatic Network.
We all need to prevent crimes such as money laundering
in our organization and in this way mitigate any legal
or operational risk of losing reputation or image that
may arise, maintaining an unimpeachable integrity.
BAC Credomatic Group thus restricts its commercial
transactions to customers with a good reputation, in
commercial activities derived from legitimate funds.
We continue to make strenuous efforts to set up
prevention and control systems that must be applied
day after day in Compliance, and have therefore
reinforced regional Compliance Champions projects,
control tools such as Issue Tracker, and the Money
Laundering Prevention program.
In addition, the General Managers, Ombudspersons
and Compliance Managers in each country carry out
constant communication and training on Integrity and
Compliance with all of the organization’s collaborators.
3.3 Code of Integrity and Ethics
For more than 50 years we have demonstrated a firm
commitment to integrity in our work. As our activity
has expanded to new sectors and countries, in addition
to achieving strong, sustained growth we have acquired
a good reputation for ethical and legal conduct in each
of the places where we operate.
In our continued reinforcement of the organizational
culture, we recently published the second version of
the “Code of Integrity and Ethics” of BAC Credomatic
Network.
- 20 -
Este Código contiene las Políticas de Integridad
que deben cumplir todos los colaboradores de la
Organización en todos los niveles, así como las
sanciones por el incumplimiento para quienes no
respeten el Código.
Las normas del Código de integridad y ética abarcan
áreas como las relaciones con clientes y proveedores
(principalmente en lo referente a pagos indebidos,
la prevención del lavado de dinero y la privacidad
de la información), las relaciones comerciales con la
administración pública, el cumplimiento de las leyes
de defensa de la competencia, las prácticas laborales
justas, la protección del medio ambiente, así como la
salud y seguridad de los colaboradores, entre otros.
Asimismo, se menciona lo importante que es elevar
consultas o preocupaciones a los canales apropiados
como el sistema de Ombudsperson (actualmente 22
en toda la región), figura representada por personas
de integridad reconocida y a quienes se puede acudir
(en forma anónima y sin temor a represalias) para
plantear sus preguntas e inquietudes sobre el tema.
En BAC Credomatic trabajamos arduamente día a
día para mantener el éxito que hemos alcanzado,
brindando a nuestros clientes y socios, así como a la
comunidad donde operamos, productos y servicios de
manera confiable y aplicando los más altos valores y
estándares de integridad y ética.
BAC Internacional Bank Inc. es un banco con licencia
general, registrado según las leyes de Panamá.
Se encuentra, por lo tanto, bajo la supervisión de
la Superintendencia de Bancos de Panamá (SBP),
organismo encargado de la regulación y supervisión
de la actividad bancaria en todos sus aspectos,
pero principalmente aquellos relacionados con la
solvencia, los niveles de liquidez de las instituciones
para hacer frente a sus obligaciones, los límites de
crédito y la gestión de riesgos. Además, estamos bajo
la supervisión de la Comisión Nacional de Valores y la
Bolsa de Valores de Panamá.
- 21 -
The Code contains the policies on integrity that all
collaborators of the organization at every level must
comply with, along with the sanctions applicable to
anyone failing to respect them.
The rules and regulations in the Code of Integrity and
Ethics address customer and supplier relationships
(mainly with respect to illegal payments, prevention
of money laundering and privacy of information),
commercial relations with Government administration
and compliance with laws for the defense of
competition, fair labor practices, environmental
protection, employee health and safety, and others.
The Code also refers to the importance of raising
questions or concerns through appropriate channels
like the Ombudsman system, a figure represented by
individuals of recognized integrity (currently 22 in the
entire region) who can be turned to anonymously and
without fear of reprisal.
At BAC Credomatic we strive hard day after day
to maintain the success achieved in providing our
customers, shareholders and community with products
and services in a reliable manner, applying the highest
values and standards of integrity and ethics.
BAC International Bank, Inc. has a general license
registered under the laws of Panama and is
therefore subject to the supervision of the Panama
Superintendence of Banks (SBP, for its acronym in
Spanish), an organism charged with the regulation and
oversight of all aspects of banking, but mainly those
concerning solvency, the liquidity levels of institutions
to meet their obligations, credit limits and risk
management. We also come under the supervision of
the National Securities and Stock Exchange Commission
of Panama.
Lo más valioso de nuestra estructura legal
es la confianza que genera en nuestros clientes
The most valuable of our legal structure
is the confidence generated by our customers
ESTRUCTURA LEGAL Y REGULACIÓN
LEGAL STRUCTURE AND REGULATIONS
La supervisión bancaria y bursátil aplicable a BAC
Internacional Bank Inc. se lleva a cabo en forma
consolidada; es decir que es aplicable también a las
demás subsidiarias del Grupo. No obstante, hay que
tomar en cuenta que en cada jurisdicción existen
entes reguladores locales y, además, a raíz de la
compra por parte de Grupo Aval de Colombia, el
Grupo BAC Credomatic está ahora también sujeto a la
normas regulatorias emitidas por la Superintendencia
Financiera de Colombia.
Banking and securities oversight applicable to BAC
International Bank Inc. is carried out in a consolidated
manner, meaning that it also applies to the Group’s
other subsidiaries. Nevertheless, in each jurisdiction
there are local regulators; furthermore, due to its
acquisition by Grupo Aval de Colombia, the BAC
Credomatic Group is now also subject to the regulatory
norms issued by the Financial Superintendence of
Colombia.
Supervisión Consolidada | Consolidated Supervision:
Superintendencia de Bancos de Panamá
- 23 -
BAHAMAS
CAYMAN
COLOMBIA
COSTA RICA
• Central Bank of Bahamas
• Cayman Islands
Monetary Agency
• Superintendencia Financiera
de Colombia
• Superintendencia de Entidades Financieras
• Superintendades de Valores
• Superintendencia de Pensiones
• CONASIF
EL SALVADOR
GUATEMALA
HONDURAS
MEXICO
• Banco Central de Reserva
• Superintendencia del
Sistema Financiero
• Superintendencia de Valores
• Banco Central de Guatemala
• Superintendencia de Bancos
• Bolsa Nacional de Valores
• Comisión Nacional de Bancos
y Seguros
• Banco Central de Honduras
• Procuraduría Federal del Consumidor
PANAMÁ
NICARAGUA
• Superintendencia de Bancos
• Comisión Nacional de Valores
• Bolsa de Valores
• Banco Central de Nicaragua
• Superintendencia de Bancos y Otras Instituciones Financieras
• Superintendencia de Valores
Somos una red de servicios que busca generar
bienestar en cada transacción
We are a network of services that seaks
to create wealth in each transaction
VALOR ECONÓMICO GENERADO Y DISTRIBUIDO
ECONOMIC VALUE GENERATED AND DISTRIBUTED
Para el Grupo BAC Credomatic, la Responsabilidad
Social Corporativa es el compromiso asumido de ser
una empresa sostenible en el largo plazo, rentable,
prudente en sus decisiones, estratégicamente dirigida
y regida por los más altos valores éticos.
For BAC Credomatic Group, corporate social
responsibility is the commitment the company
assumes in so that it will be sustainable in the long
term, profitable, prudent in its decisions, strategically
directed and governed by the highest ethical values.
De esta forma, la empresa contribuye al desarrollo
económico sostenible de la región centroamericana
mediante el trabajo cercano con sus clientes,
proveedores, accionistas, colaboradores, familias, las
comunidades donde opera, el Estado y la sociedad en
general, para distribuir verdadera riqueza y mejorar la
calidad de vida de las personas.
In this way the company contributes to Central
America’s sustainable economic development
by working closely with its customers, suppliers,
shareholders, collaborators, families, the communities
where it operates, the Government and society in
general, in order to distribute genuine wealth and
improve people’s quality of life.
Esta responsabilidad ante la sociedad nace del
reconocimiento de que el quehacer empresarial
produce impactos en la vida de las personas,
las comunidades y el medio ambiente. Así,
BAC Credomatic no concibe la atención de esta
responsabilidad mediante programas aislados
y distantes de su quehacer diario, sino como un
enfoque empresarial socialmente responsable, con el
que procura eliminar, en la medida de lo posible, los
impactos negativos que causa; minimizar aquellos
que no puede eliminar; compensar adecuadamente
aquellos que no puede minimizar más allá de ciertos
límites; y potenciar los impactos positivos que genera.
Desde esa perspectiva, el compromiso de BAC
Credomatic consiste en gestionar su negocio de forma
responsable y desarrollar proyectos que aprovechen
sus conocimientos y fortalezas, para mejorar la calidad
de vida de sus clientes, colaboradores y proveedores y
contribuir al desarrollo sostenible de las sociedades
donde opera.
5.1 Creación de valor para nuestros grupos de interés
El estado de resultados de valor generado, valor
distribuido y valor retenido muestra en cifras la
riqueza económica generada por la empresa durante
los años 2008, 2009 y 2010, y de qué forma fue
distribuida entre sus principales grupos de interés.
- 25 -
This responsibility toward society comes from the
recognition that business activity produces impacts on
people’s lives, communities and the environment. BAC
Credomatic does not envision this as something that
can be accomplished through one or a few isolated
programs removed from its daily activity. It is instead
a socially responsible business approach aimed at
eliminating the negative impacts it causes to the
extent possible, minimizing those it cannot eliminate;
adequately compensating for those it cannot minimize
beyond certain limits; and empowering the positive
impacts it generates.
From this standpoint, BAC Credomatic’s commitment
is to manage its business responsibly and develop
projects that make use of its knowledge and strengths
to improve the quality of life of its customers,
collaborators and suppliers, and contribute to the
sustainable development of the societies in which it
operates.
5.1 Value creation for our interest groups
The statement on value generated, value distributed
and value retained shows in figures the economic
wealth generated by the company during 2008, 2009
and 2010, and how this was distributed among its
main interest groups.
Valor Económico Generado y Distribuido / Generated and Distributed Economic Value
(Millones US$ / US$ MM)
2008
Valor Económico Generado
Generated Economic Value
925.2
Margen de intermediación
Net interest income
860.7
495.5
Otros ingresos
Non interest income
345.7
368.9
707.9
225.3
207.8
Sociedad
Society
Valor Económico Retenido
Retained economic value
53.0
39.6
88.6
43.6
35.5
33.0
-17.0
-35.6
201.3
Retención de utilidades
Retained earnings
218.7
237.6
217.3
Provisiones y Amortizaciones
Provisions and amortizations
279.9
109.9
43.5
Accionistas
Shareholders
246.2
248.4
241.1
Empleados
Employees
797.8
821.1
215.5
Proveedores
Suppliers
886.3
540.6
491.8
429.8
Valor Económico Distribuido
Distributed Economic Value
Reservas
Reserves
2010
2009
-53.2
98.2
39.6
Tal y como se observa en el gráfico anterior, al cierre
del 2010, el valor económico generado fue de US$
886.3 millones, 3.0% más que en el 2009, cuando esta
cifra fue de US$ 860.7 millones.
As can be seen in the chart above, at the close of 2010
the economic value generated was US$ 886.3 million,
3.0% more than in 2009, when the figure was US$
860.7 million.
Además, el 90.0% del monto generado fue distribuido
entre los proveedores (US$ 246.2 millones), los
colaboradores del Grupo (US$ 279.9 millones),
la sociedad (US$ 218.7 millones) y los accionistas
(US$53.0 millones). El restante 10.0%, es decir, US$
88.6 millones, se clasifica como valor económico
retenido, cuyo componente de mayor peso relativo
son las utilidades retenidas.
In addition, 90% of the amount generated was
distributed among suppliers (US$ 246.2 million), the
collaborators of the Group (US$ 279.9 million), the
company (US$ 218.7 million) and the shareholders (US$
53.0 million). The remaining 10%, or US$ 88.6 million,
is classified as retained economic value, where the
component with the heaviest relative weight is retained
earnings.
Participación en el Valor Económico Distribuido / Participation in Distributed Economic Value
2008
2009
Empleados
Employees
34%
2010
Empleados
Employees
30%
Sociedad
Society
29%
Proveedores
Supplier
31%
Sociedad
Society
29%
Proveedores
Supplier
28%
Accionistas
Shareholders
6%
Empleados
Employees
35%
Sociedad
Society
27%
Proveedores
Supplier
31%
Accionistas
Shareholders
13%
Accionistas
Shareholders
7%
- 26 -
5.2 Compromiso con nuestros clientes
5.2 Commitment to Our Customers
Durante el 2010, BAC Credomatic incrementó el apoyo
al desarrollo de las pequeñas y medianas empresas
(pymes) de la región como una de las líneas centrales
de su estrategia de inclusión social y financiera. El
número de pymes atendidas en el 2010 fue de 97,611.
El crédito a este sector alcanzó los US$ 586 millones, y
el saldo de depósitos de estas empresas sumó los US$
856 millones al finalizar el año.
In 2010 BAC Credomatic increased its support to the
development of small and medium enterprises (SMEs)
in the region as one of the central lines of its strategy
of social and financial inclusion. The number of SMEs
attended in 2010 was 97,611; credit to this sector
reached US$ 586 million, with SME deposits adding up
to US$ 856 million as the year ended.
Se brindó, además, una serie de otros servicios
financieros y no financieros de valor agregado
para este importante sector de la economía. Así,
más de 5,500 pequeños y medianos empresarios
tuvieron acceso al servicio de pago electrónico de
planillas y proveedores, entre otra serie de beneficios
especializados que antes solo eran accesibles para
clientes clasificados como corporativos. Finalmente,
más de 3,470 empresas participaron en cursos y
talleres como parte del Programa de Excelencia
Financiera Pymes.
En definitiva, el compromiso que tenemos con todos
nuestros clientes de ser el mejor banco de la región
centroamericana es uno de los motores principales
que impulsan nuestra labor diaria. Por ellos tenemos
el deber de ofrecer productos y servicios de gran valor
agregado, que brinden soluciones eficaces y, sobre
todo, seguridad.
Una de las características que distinguen a BAC
Credomatic de otras instituciones financieras de la
región, es el papel que desempeña dentro de los medios
de pago en Centroamérica al procesar diariamente
gran cantidad de transacciones relacionadas con la
facturación de tarjetas, pagos a proveedores, pagos
de planilla, envío y recepción de remesas familiares,
así como transferencias entrantes y salientes, no solo
a nivel de Centroamérica sino también fuera de ella,
lo cual demuestra la preferencia y, en especial, la
confianza de nuestros clientes a la hora de realizar sus
transacciones financieras con BAC Credomatic.
- 27 -
We also provided a series of other financial and nonfinancial value-added services for this key sector of
the economy. More than 5,500 small and medium
enterprises thus had access to the electronic payroll
and supplier payment service, among other specialized
benefits previously accessible only to those classified
as corporate customers. Finally, more than 3,470
companies participated in courses and workshops as
part of the SME Financial Excellence Program.
Our commitment to customers to be the best bank
in the Central American region is definitely one of
the main drivers in our day-to-day work. Because of
our customers we have a duty to offer products and
services of superior value added that provide effective
solutions and, above all, security.
One of the characteristics that distinguishes BAC
Credomatic from other financial institutions in the
region is the role it plays in Central American payment
methods by processing a great number of transactions
daily for card invoicing, supplier payments, payroll
payments, sending and receiving family remittances,
and incoming and outgoing transfers not only
within Central America but also outside the region,
demonstrating our customers’ preference and
especially their confidence when making financial
transactions at BAC Credomatic.
Volumen de transacciones según medio de pago / Volume of transactions by payment method
US$ Miles de millones / US$ Billion
2009
2010
Pago de nómina | Payroll payments
2.4
3.0
Pago a proveedores | Supplier payments
4.7
6.0
Transferencias locales | Local transfers
12.1
13.6
Facturación tarjetas (propias y adquirientes)
Issuing processing volumen (issuing and acquiring)
10.7
12.5
Subtotal local
29.9
35.0
Transferencias regionales | Regional transfers
2.4
2.7
Cheque y depósito centroamericano
Central American check and deposit
1.9
1.8
Subtotal regional
4.3
4.5
Transferencias internacionales | International wire transfers
13.8
17.7
Remesas familiares | Family remittances
0.4
0.4
Subtotal internacional
14.2
18.1
TOTAL
48.4
57.6
5.3 Compromiso con nuestros colaboradores
5.3 Commitment to Our Employees
El valor económico distribuido a los colaboradores
del Grupo fue de US$ 279.9 millones durante el 2010.
BAC Credomatic tiene una importante incidencia
en el ámbito laboral de los países donde opera
(Centroamérica, Panamá y México), pues da empleo
directo a más de 15.000 personas, entre las que se
encuentran estudiantes, técnicos, administradores,
ingenieros, economistas, así como otras ocupaciones
profesionales. El perfil de empresa incluye indicadores
como el promedio de edad de los colaboradores —
actualmente de 30 años—, una antigüedad promedio
de 5 años, así como la distribución por género: el 55%
femenino y el 45% masculino.
The economic value distributed to the Group’s employees
was US$ 279.9 million in 2010. BAC Credomatic has
significant impact on the labor environment of the
countries where it operates (Central America, Panama
and Mexico), providing direct employment for more
than 15,000 people, including students, technicians,
administrators, engineers, economists and other
professionals. The company profile includes indicators
such as the average age of collaborators currently being
30 years, average period of employment of 5 years, and
gender distribution of 55% women and 45% men.
PAIS
México
Guatemala
El Salvador
Honduras
Nicaragua
Costa Rica
Panamá
Dir. Regionales
TOTAL
HEADCOUNT
DIC-08
DIC-09
584
905
1,416
1,377
2,302
2,171
3,060
3,248
1,949
1,827
4,353
4,373
1,323
1,459
400
439
15,387
15,799
DIC-10
706
1,404
2,088
3,209
1,881
4,492
1,440
469
15,689
- 28 -
A pesar de que aún el mercado en general resiente
los efectos de la crisis financiera internacional, en
BAC Credomatic no se ha visto esto reflejado en una
disminución significativa del personal. Por el contrario,
las labores y prioridades del negocio continúan siendo
eficientes, aprovechando la “capacidad instalada
actual”, para nuevos negocios y proyectos de mejora.
Uno de los pilares de esta organización está
relacionado con las oportunidades de desarrollo y
crecimiento: “Crecer junto con la empresa”. En este
sentido, aspiramos a que BAC Credomatic llegue a
ser considerado el mejor empleador de la región, no
solo por la cantidad importante de puestos de trabajo
que genera, sino por la mejora en la calidad de vida
de los colaboradores, pues les da oportunidades para
aportar su conocimiento y compromiso de trabajo.
La propuesta de valor hacia los empleados (EVP) es:
oportunidades + esfuerzo personal = crecimiento y
desarrollo profesional.
Para sustentar esta máxima, las políticas internas de
concursos y ascensos en la organización apuntan hacia
eso. La tendencia en los últimos años refleja que, cada
vez más, la gente encuentra oportunidades para crecer
internamente y no salir a buscar opciones externas, lo
que tiene efectos positivos en la estabilidad laboral y
la administración del conocimiento.
El desarrollo y el crecimiento profesional de los
colaboradores es apoyado por programas de
capacitación de alto nivel a lo largo de la región, los
cuales procuran mejorar las habilidades técnicas y las
competencias en los diferentes puestos de trabajo;
adaptarse a las nuevas tecnologías; y estar preparados
para dar un servicio de excelencia a nuestros clientes.
Para el año 2010, BAC Credomatic invirtió poco
más de US$ 3.0 millones en capacitaciones, lo cual
repercute en el nivel de servicio al cliente, así como
en la motivación y el compromiso de colaboradores.
En este sentido, uno de los programas insignia es
definitivamente el Programa de Educación Financiera
para colaboradores, el cual sido muy relevante
por la gran cantidad de personas que ha incluido,
por la importancia del tema y por el impacto en
la administración de las finanzas familiares. Se ha
capacitado a más del 50% de colaboradores.
- 29 -
Although the market in general is suffering the effects
of the international financial crisis, this has not been
reflected in a significant reduction of headcount at BAC
Credomatic. To the contrary, there has been greater
efficiency in business priorities and tasks, taking
advantage of “current installed capacity” for new
business and improvement projects.
Opportunities for development and growth: “growing
together with the company” is one of the pillars of this
organization. Our aspiration is for BAC Credomatic
to be considered the region’s best employer, not just
because of the important number of jobs it generates,
but because it improves the quality of life of its
collaborators, and also gives them opportunities to
contribute their knowledge and work commitment.
The employee value proposal (EVP) is: Opportunities
+ personal effort = professional development and
growth.
Our internal hiring and promotion policies are aimed
at upholding this maxim. The trend over recent
years shows that, more and more people are finding
growth opportunities within the organization rather
than leaving in pursuit of alternatives outside. This
has positive effects on labor stability and knowledge
management.
The professional growth and development of our
collaborators is supported by high-level training
programs throughout the region to strengthen
technical skills and competencies in the different work
positions, adapt to new technologies and be prepared
to provide our customers service of excellence.
By 2010 BAC Credomatic had invested slightly over
US$ 3 million in training, which has had an impact
on the quality of customer service and the motivation
and commitment of our collaborators. One of our
flagship programs is unquestionably the Financial
Education Program for employees, of great significance
due to the many people involved, the importance of
the subject matter and the impact on family finance
management. More than 50% of the employees have
received training.
5.4 Compromiso con la sociedad
5.4 Commitment to Society
Del valor económico generado por BAC Credomatic,
US$ 218.7 millones fueron devueltos a la sociedad
en forma de impuestos y donaciones y US$ 246.2
millones se destinaron a nuestros proveedores en
toda la región. Además, como complemento a las
iniciativas sociales promovidas por el Grupo en el
2010, 9,427 colaboradores, el 60% del total de la
planilla, aportaron 70,992 horas de trabajo voluntario
en apoyo a causas de diversa índole, como proyectos
ambientales, cursos de educación financiera y otros, lo
que significa un incremento del 58% en el número de
horas voluntarias donadas con respecto al 2009.
Of BAC Credomatic’s economic value generated, US$
218.7 million were returned to society in the form of
taxes and donations, and US$ 246.2 million went to
our suppliers throughout the region. Complementing
the Group’s social initiatives in 2010, 9,427 employees60% of the entire staff- contributed 70,992 hours
volunteering for different causes such as environmental
projects, courses in financial education, and others. This
represented a 58% increase in volunteer hours compared
to 2009.
En la línea de promoción al consumo responsable de
sus productos y servicios, la empresa ha asumido con
seriedad su papel por medio del Programa Regional de
Educación Financiera. Esta es una iniciativa orientada
a modificar los patrones de conducta de la ciudadanía
hacia un manejo más informado y eficaz de sus
finanzas personales, familiares y empresariales. El
Programa está totalmente alineado con la estrategia
comercial, y se ofrece como valor agregado a los
públicos de interés de la empresa, a la vez que genera
un impacto positivo en la sociedad centroamericana:
una población mejor formada en términos financieros
potenciará su capacidad de empleabilidad, logrará
mejores niveles de vida y construirá prosperidad.
El programa está dirigido a tres principales públicos
meta: jóvenes, adultos/comunidad, pequeñas y
medianas empresas. El eje para jóvenes se basa en un
esquema de alianzas público-privadas con ministerios
de educación, institutos técnicos, universidades y
otros. De esta forma, se potencia la sostenibilidad
mediante la creación de capacidad instalada en las
entidades participantes, así como la incidencia en la
política pública de los países. Este tipo de acercamiento
a la institucionalidad marca un hito en la manera en
que el empresariado centroamericano aborda sus
responsabilidades con la sociedad y permite hacer
un traslado eficaz de tecnologías novedosas desde
el sector privado hacia el público. Desde su inicio en
el 2008, el Programa ha capacitado a más de 3,970
profesores y 125,000 estudiantes centroamericanos.
In promoting responsible use of its products and
services, the company assumed its responsibility with
seriousness through the Regional Financial Education
Program, an initiative aimed at modifying citizens’
patterns of behavior toward a more informed, effective
management of personal, family and business finances.
The program is fully aligned with the commercial
strategy and is offered as value added to the company’s
target publics while at the same time generating a
positive impact on Central American society: a better
informed population regarding finance will empower
its employability, achieve higher standards of living and
build prosperity.
The program is directed at three target publics: youth,
adults/community, and small and medium enterprises.
The core of the youth module is a system of publicprivate partnerships with ministries of education,
technical institutes, universities and other institutions.
Sustainability is thus potentiated through the creation
of installed capacity in the participating institutions
and influence on the countries’ public policies. This
type of approach to institutionality represents a new
benchmark in the way Central American businesses
approach their responsibilities towards society, and
enables an efficient transfer of innovative technologies
from the private to the public sector. Since launched
in 2008, the program has trained more than 3,970
professors and 125,000 students in Central America.
- 30 -
En los ejes de Educación Financiera para adultos, BAC
Credomatic brindó cursos de capacitación presencial a
más de 31,200 clientes y a más de 5,900 pymes (20092010) en temas que mejoran la calidad de vida de las
familias y coadyuvan a la sostenibilidad económica de
las pequeñas y medianas empresas.
In the financial education modules for adults, BAC
Credomatic provided classroom training to more than
31,200 customers and over 5,900 SMEs (2009-2010)
on subjects that improve family quality of life and
contribute to the economic sustainability of small and
medium enterprises.
La gestión del riesgo ambiental y social en la
financiación de grandes proyectos es otro tema de
indiscutible importancia para BAC Credomatic, no solo
como entidad dedicada a la prestación de servicios
financieros, sino también por la trascendencia que
reviste para sus principales grupos de interés.
Management of social and environmental risk in the
financing of large projects is another indisputably
important issue for BAC Credomatic, not only as an
entity that provides financial services but also because
of the topic’s importance for its main interest groups.
El Sistema de Análisis de Riesgo Ambiental y Social
(SARAS) incluye la integración de nuevos pasos al
proceso de análisis de riesgo crediticio ya establecido
en la organización. Con su implementación a partir
del 2010, la empresa asume una posición proactiva, y
pasa de ser un agente intermediario a convertirse en
un verdadero agente de cambio y desarrollo en temas
medioambientales y sociales.
SARAS, a social and environmental risk analysis system,
integrates new steps into the credit risk analysis
process already established by the organization.
With the implementation of this system in 2010 the
company is taking a proactive stance, moving from its
role as an intermediary agent to become a true agent
of environmental and social change and development.
En ese orden de ideas, la empresa pretende
también minimizar la huella ambiental de sus
propias operaciones. Reducir la compra de papel,
disminuir el consumo energético y de agua, limitar la
emisión de gases de efecto invernadero, así como el
tratamiento de los desechos mediante el reciclaje y la
recuperación, son solo algunos de los compromisos
que BAC Credomatic ha ido adquiriendo y que hoy
la colocan a la vanguardia del sector financiero
centroamericano en la implementación de procesos y
servicios amigables con el medio ambiente.
In similar fashion, the company also aims to minimize
the environmental footprint of its own operations.
Reducing its paper purchases and energy and water
consumption, limiting greenhouse gas emissions and
recovering and recycling wastes are only a few of
the commitments BAC Credomatic has been making
that are now placing it at the cutting edge of the
Central American financial sector in the application of
environmentally friendly services and processes.
Así, por ejemplo, en el 2010, BAC Credomatic Costa Rica
fue acreditada como la primera entidad financiera en
Centroamérica en recibir la certificación en gestión
ambiental ISO 14001:2004 para sus dos principales
edificios administrativos y, por segundo año
consecutivo, se compensó el 100% de las emisiones
de las operaciones, para continuar siendo la única
entidad financiera Carbono Neutral en la región.
Esta sección se complementa con el Reporte
de Sostenibilidad 2010 e información adicional
disponible en www.rscbaccredomatic.com.
- 31 -
For example, in 2010 BAC Credomatic Costa Rica
was accredited as the first financial institution
in Central America to receive ISO 14001:2004
certification in environmental management for its
two main administrative buildings, and for the second
consecutive year it offset 100% for emissions from its
operations, continuing to be the only carbon-neutral
financial institution in the region.
For more information on this section, go to www.
rscbaccredomatic.com or see the 2010 Sustainability Report.
5.5 Compromiso con nuestros accionistas
5.5 Commitment to Our Shareholders
El desempeño sobresaliente, aun en años de crisis,
constituye una prueba del compromiso con nuestros
accionistas.
An outstanding performance, even in years of crisis, is
proof of the commitment to our shareholders.
La administración conservadora de riesgo es también
un factor importante para proteger el patrimonio de
nuestros accionistas y para fortalecer la sostenibilidad
del negocio en el largo plazo. Además, esto les brinda
confianza para reinvertir en la empresa, como lo
muestran las cifras de utilidades retenidas al cierre del
2010, las cuales fueron de US$ 893.6 millones, monto
mayor al del cierre del año 2009 cuando este rubro fue
de US$ 795.7 millones.
Los accionistas también han recibido cada año
dividendos como justa remuneración por su inversión
en la compañía. En el año 2010, estos dividendos fueron
por US$ 53.0 millones, un monto menor al del 2009
cuando, debido a un cambio en el control accionario
de la compañía, los accionistas originales ejercieron
su derecho a recibir una porción de las utilidades (US$
109 millones), basándose en su participación antes del
cambio de control.
Conservative risk management is also a critical factor
in protecting our shareholders’ equity and reinforcing
the company’s long-term sustainability. It also builds
confidence for reinvesting in the company, as seen in
the figure for retained earnings at the 2010 close, at
US$ 893.6 million, up from US$ 795.7 million at the
2009 close.
Each year our shareholders have also received dividends
as fair compensation for their investment in the
company. In 2010 these dividends amounted to US$
53.0 million, less than in 2009 when due to a change
in shareholder control, original shareholders exercised
their right to receive a portion of the profits (US$ 109
million) based on their shares prior to the change.
- 32 -
Desde cualquier punto hacemos posible acceder al futuro
From any point we make possible to access the future
INFORMACIÓN FINANCIERA RELEVANTE
RELEVANT FINANCIAL INFORMATION
Para el año 2010, los activos alcanzaron los US$ 8,409
millones, de modo que registraron un incremento
del 9.5% con respecto al cierre del 2009. Dicho
incremento se explica sobre todo por el aumento de
los activos líquidos (15.9%), las inversiones en títulos
valores y depósitos que generan intereses (19.4%) y la
recuperación paulatina en la demanda de crédito (la
cartera bruta aumentó 5.6%) luego de la leve reducción
experimentada en el 2009 como consecuencia de la
más reciente crisis en la economía mundial.
In 2010, assets reached US$ 8,4 billion, a 9.5% increase
from the 2009 close, due largely to more liquid assets
(15.9%), investment in securities and interest-bearing
deposits (19.4%), and a gradual recovery of credit
demand (with a gross portfolio gain of 5.6%) after the
slight drop in 2009 resulting from the most recent
global economic crisis.
Activos | Assets
US$ MM
8,409
7,525
7,681
2008
2009
6,507
4,240
2006
2007
2010
6.1 Activos líquidos e inversiones
6.1 Investments and Liquid Assets
El total de activos líquidos e inversiones para el cierre
del año 2010 ascendió a US$ 2,624 millones, es decir un
incremento del 16.8% con respecto al año anterior. Este
aumento se debe principalmente a que los depósitos
tuvieron un ritmo de crecimiento mayor que el de la
cartera de crédito, lo que ocasionó un aumento de la
liquidez del Grupo.
Total liquid assets and investments rose to US$ 2.6
billion at the 2010 close, a 16.8% increase over last year.
This gain was primarily because deposits grew at a
faster pace than the loan portfolio, leading to greater
liquidity for the Group.
- 34 -
Activos líquidos e inversiones en valores | Liquidity and investments
US$ MM
2,624
2,247
1,984
1,509
1,176
2006
2007
2008
Específicamente los activos líquidos sumaron, al
cierre del 2010, US$ 1,921 millones conformados
sobre todo por depósitos en bancos centrales como
requerimiento legal (35.2%), equivalentes de efectivo
(17.3%), depósitos en otros bancos comerciales (15.9%),
depósitos overnight (14.6%) y efectivo (12.3%).
2009
2010
Specifically, liquid assets at the close of 2010 added up
to US$ 1.9 billion, consisting mainly of legally required
central bank deposits (35.2%), cash equivalents (17.3%),
other commercial bank deposits (15.9%), overnight
deposits (14.6%) and cash (12.3%).
Liquidez | Liquidity
US$ MM
Efectivo | Cash
236 | 12%
Depósitos Overnight
Overnight deposits
280 | 15%
Remesas en tránsito
Transit Remittances
79 | 4%
Equivalente de efectivo
Cash Equivalents
332 | 17%
Reportos | Repos
13 | 1%
Depósitos en bancos
Due from banks
306 | 16%
- 35 -
Depósitos en bancos
centrales por encaje
Deposits at
Central Banks as legal
requirement
676 | 35%
En lo que se refiere a las inversiones en títulos valores y
depósitos que generan intereses, al cierre del año 2010,
del total de US$ 703.1 millones, el 65.5% corresponde
a títulos de gobiernos de los países de Centroamérica
y Estados Unidos; el 26.4% a títulos de instituciones
financieras internacionales (fuera de Centroamérica);
el 4.5% a títulos de instituciones financieras de la
región; el 2.9% a títulos de otros gobiernos y tan solo
un 0.7% a títulos valores corporativos.
As for investments in securities and interest-bearing
deposits, out of a total US$ 703.1 million at the 2010
close, 65.5% is in Central American and U.S. government
bonds, 26.4% in international financial institution bonds
(outside Central America), 4.5% in Central American
financial institution bonds, 2.9% in other government
bonds, and only 0.7% is in corporate bonds.
Inversiones por emisor | Investments by issuer
US
Government
134 | 19%
Costa Rica
Government
139 | 20%
Honduras
Government
95 | 13%
Guatemala
Government
62 | 9%
International Financial
Institutions
185 | 26%
Coporate
5 | 1%
Colombian
Governments
12 | 2%
Other
Governments
8 | 1%
Con respecto al plazo remanente de vencimiento, gran
parte de las inversiones se mantienen a corto plazo,
acorde con la estrategia del Grupo por mantener la
reserva de liquidez. Además, la estrategia adoptada
en este tema es de diversificación de las inversiones
por emisor y por plazo, con el objetivo de lograr un
mejor balance entre riesgo y rendimiento.
Central America
Financial Institutions
32 | 5%
Panama
Government
16 | 2%
El Salvador
Government
14 | 2%
Concerning term to maturity, a large portion of
investments are kept short term in accordance with
the Group’s strategy to maintain the liquidity reserve.
In addition, the strategy adopted was to diversify
investments by issuer and term in order to achieve a
better balance between risk and yield.
- 36 -
Inversiones por plazo| Investments by maturity
(US$ MM)
205
204
84
61
50
49
0-3 meses
months
- 37 -
3-6 meses
months
6-12 meses
months
1-2 años
years
2-3 años
years
50
3-5 años
years
+5 años
years
6.2 Cartera de crédito
6.2 Loan Portfolio
En relación con el principal rubro del activo —la
cartera de crédito— esta tuvo un incremento del 5.6%
y alcanzó los US$ 5,356 millones para el año 2010. Esto
contrasta con la disminución experimentada en el
periodo 2008-2009, cuando la cartera había decrecido
un 2.5% y, al cierre del año anterior, se superó el monto
que se tenía antes de la recesión económica, la cual
tuvo un impacto directo en la demanda por crédito en
todos los países de la región.
The primary assets item, the loan portfolio, grew at
5.6% to US$ 5.4 billion in 2010, in contrast with the
decline experienced in the 2008-2009 period when
the portfolio shrank by 2.5%. Furthermore, at last
year’s close the amount recorded prior to the economic
recession was surpassed, directly impacting demand
for credit in all of the countries of the region.
Cartera de préstamos | Loan portfolio
(US MM)
5,203
4,674
355
273
5,356
5,073
244
237
296
347
311
382
410
380
325
342
1,303
2,884
1,066
184
192
241
594
1,616
1,466
1,275
1,187
1,306
1,244
926
1,399
1,596
1,512
1,414
747
2006
2007
2008
2009
2010
Comercial e industrial | Commercial and industrial
Tarjeta de crédito | Credit card
Hipotecas | Residential mortgages
Automóviles | Vehicles
Consuma | Consumption
Otros | Other
Al cierre del 2010, los créditos dirigidos para la compra
de casa, para fines comerciales e industriales y para
tarjeta de crédito experimentaron un crecimiento del
8.7%, el 6.9% y el 5.0% respectivamente con respecto
al 2009.
Por segmento, la cartera de crédito corporativo
incrementó un 6.3% durante el 2010 con respecto al
2009, es decir US$ 104 millones, para alcanzar un total
de US$ 1,756 millones. El crecimiento promedio de los
últimos 5 años es del 17%.
At the 2010 close, loans for home purchases, commercial
and industrial purposes and credit cards grew by 8.7%,
6.9% and 5.0% respectively, compared to 2009.
By segment, the corporate loan portfolio expanded by
6.3% in 2010 compared to 2009, rising US$ 104 million
to reach a total of US$ 1.8 billion. Average growth for
the last 5 years is 17%.
- 38 -
Crédito corporativo | Corporate loans
(US$ MM)
1,868
1,770
1,756
1,651
931
2006
2007
Por su parte, el monto de créditos personales
otorgados a nuestros clientes (excluyendo tarjeta de
crédito) registró un incremento del 5.4% para alcanzar
el total de US$ 2,294 millones. Para el periodo 20062010, el crecimiento promedio anual fue del 22%.
2008
2009
2010
Personal loans to our customers (excluding credit cards)
climbed by 5.4% to a total US$ 2.3 billion for average
annual growth of 22% in the 2006-2010 period.
Crédito a personas | Personal loans
(US$ MM)
2,177
2,294
2,060
1,717
1,027
2006
- 39 -
2007
2008
2009
2010
Finalmente, en lo que se refiere al negocio de tarjeta
de crédito, al finalizar el año 2010 el saldo total de la
cartera fue de US$ 1,306 millones (US$ 62 millones
más que en el 2009), lo que representa un incremento
del 5.0%.
Finally, the credit card portfolio reached a total balance
of US$ 1.3 billion by the end of 2010 (US$ 62 million
more than in 2009), representing an increase of 5.0%.
Saldo de tarjetas de crédito | Credit Card receivables
(US$ MM)
1,275
1,167
1,244
1,306
926
2006
2007
2008
2009
2010
6.3 Fuentes de fondeo
6.3 Sources of Funding
Los fondos de que dispone el Grupo BAC Credomatic
provienen de dos fuentes: los depósitos de nuestros
clientes y el fondeo institucional, que comprende
los préstamos otorgados por otras instituciones
financieras y organismos multilaterales y de desarrollo,
los valores vendidos bajo acuerdos de recompra y
los certificados de deuda registrados y negociados a
través de las bolsas de valores locales.
BAC Credomatic Group’s available funds come from two
sources: customer deposits and institutional funding,
which consists of loans from other financial institutions
and multilateral and development organizations,
securities sold under repurchase agreements, and
debt certificates listed and traded on local securities
exchanges.
Al analizar las fuentes de fondeo, los depósitos de
nuestros clientes continúan ocupando una posición
muy importante, pues alcanzaron la cifra de US$ 6,033
millones, un 12.8% más que en el 2008, y representan
un 84% del fondeo total.
A look at the sources of funding shows that customer
deposits continue to account for a significant portion,
reaching US$ 6.0 billion (up 12.3% from 2008), or 84%
of total funding.
- 40 -
Fuentes de Fondeo | Sources of funding
(US$ MM)
7,150
6,597
6,438
1,117
5,579
1,248
1,657
1,386
5,349
3,550
713
6,033
4,781
4,194
2,838
2006
2007
2008
Depósitos | Deposits
Históricamente, los depósitos de los clientes han
mostrado una tendencia creciente y sostenida. Por
categoría específica, los depósitos a la vista (cuentas
corrientes y de ahorro) fueron de US$ 3,862 millones,
un 22.7% más con respecto al 2009. Por otra parte, los
depósitos a plazo decrecieron un 1.4% en el mismo
periodo y alcanzaron los US$ 2,171 millones. Para el
periodo 2006-2010, el crecimiento promedio anual ha
sido del 16%.
2009
2010
Fondeo Institucional | Institutional funding
Historically, customer deposits have tended to grow
steadily. By category, specifically, demand deposits
(checking and savings accounts) were US$ 3.9 billion,
22.7% higher than in 2009. Term deposits, on the other
hand, fell by 1.4% in this same period to US$ 2.2 billion.
For the 2006-2010 period average annual growth has
been 16%.
Composición de los depósitos | Deposits breakdown
(US$ MM)
6,033
5,349
4,781
2,171
4,194
2,202
2,065
2,838
1,799
1,130
964
1,233
722
822
303
1,301
2006
1,673
2007
2,183
1,895
2008
2009
Cuentas corrientes | Demand deposits
Cuentas de Ahorro | Savings
Depósitos a plazo | Time deposits
- 41 -
2,731
2010
El fondeo institucional representa el 16% del total de
fondos recibidos y, al finalizar el año 2010, el monto
fue de US$ 1,117 millones, US$ 131 millones (10%) menos
que en el 2009, debido al aumento de los fondos
provenientes de los depósitos. Esto hace menos
necesario recurrir a deuda institucional, por lo que se
han cancelado o no se han renovado obligaciones de
corto plazo, principalmente. A pesar de esta reducción,
durante el último año se han formalizado obligaciones
de más largo plazo con el fin de mantener el balance
entre los activos y pasivos.
El año 2010 se caracterizó por las relativas bajas tasas
internacionales de interés. Al comparar el costo de
fondos para BAC Credomatic con respecto a la tasa
LIBOR a 3 meses (utilizada en este caso como un
valor de referencia), en el siguiente gráfico se puede
observar que el costo de los préstamos otorgados por
instituciones financieras y organismos multilaterales
y de desarrollo ha mostrado una tendencia sostenida
hacia la baja, debido a la reducción paulatina de los
márgenes de deuda y al mejor manejo del costo de
este tipo de pasivos.
Institutional funding represents 16% of all funding, and
at the end of 2010 equaled US$ 1.1 billion, US$ 131 million
(10%) less than in 2009. This was due to increased
funding from deposits, which has made institutional
debt less necessary and led to the cancellation or nonrenewal of mainly short-term obligations. In spite of
this reduction, longer-term obligations have been taken
out over the last year to maintain a balance between
assets and liabilities.
2010 was characterized by relatively low international
interest rates. A comparison was made of BAC
Credomatic’s cost of funds with the 3-month LIBOR rate
(used in this case as a reference value). The following
chart shows that the cost of loans from financial
institutions and multilateral and development
organizations has followed a steady downward trend
due to a gradual reduction of debt margins and better
cost management for this type of liability.
Costo de fondos vrs LIBOR 3m / Funding cost vrs 3m LIBOR
5%
4%
3%
2%
1%
0%
Dec-07
Mar-08
Jun-08
Sep-08
Dec-08
Mar-09
Jun-09
Sep-09
Costo fondos / Regional funding cost
Dec-09
Mar-10
Jun-10
Sep-10
Dec-10
LIBOR
- 42 -
6.4 Capital
6.4 Capital
Al cierre del año 2010 se registró un capital de US$
930 millones, lo cual representa un incremento del
14.8% con respecto al año 2009. Históricamente (y
el 2010 no fue la excepción), las utilidades retenidas
son la principal fuente de capital para el Grupo BAC
Credomatic.
At the 2010 close, capital was recorded at US$ 930
million, representing a gain of 14.8% over the 2009
figure. Historically (and 2010 was no exception) retained
earnings were the main source of capital for the BAC
Credomatic Group.
Patrimonio | Equity
(US$ MM)
776
930
810
611
461
2006
2007
Uno de los aspectos más importantes en el desempeño
de un banco está relacionado con la administración de
su capital. De acuerdo con la Ley Bancaria de Panamá,
todo banco debe poseer fondos de capital de por lo
menos el 8% de los activos ponderados por riesgo.
Para el cierre del año 2010, en BAC International Bank
y Subs esta relación fue del 12.71%, mayor al 11.97%
registrado el año anterior.
Por país también existen límites mínimos de
adecuación de capital, que oscilan entre el 10% y el
12%, dependiendo del país. Al 31 de diciembre del 2010,
todos los países se encontraban en cumplimiento e
incluso muy por encima del mínimo requerido, según
se observa en el siguiente cuadro.
- 43 -
2008
2009
2010
One of the most important factors in a bank’s
performance is how it manages its capital. According to
Panamanian banking law, all banks must have capital
funds equal to at least 8% of its risk-weighted assets.
For the 2010 close, the percentage for BAC International
Bank and Subs. was 12.71%, surpassing the 11.97%
recorded for the previous year.
There are also minimum capital adequacy limits
by country ranging from 10% to 12%, depending on
the country. At December 31, 2010, all the countries
were in compliance or even far above the minimum
requirement, as can be seen in the table below.
Banco / Bank
Límite regulatorio /
Regulatory limit
Adecuación capital /
Capital adequacy
BAC Guatemala
10%
22.43%
BAC BAMER
10%
13.30%
BAC El Salvador
12%
13.63%
BAC Nicaragua
10%
15.58%
BAC San José
10%
12.73%
BAC Internacional Bank y Subs
8%
12.71%
6.5 Rentabilidad
6.5 Profitability
La utilidad neta para el 2010 se ubicó en US$ 151
millones, es decir, 1.2% más que en el 2009, cuando
fue de US$ 149 millones, y es un reflejo de la mejora
en las condiciones económicas. Esto permite trasladar
recursos colocados en activos de un rendimiento
relativamente bajo hacia otros más rentables como
la cartera de crédito, por ejemplo, así como de los
esfuerzos tendientes a generar utilidades llevados
a cabo por todas las áreas de negocios del Grupo.
No obstante, por otro lado, el crecimiento de las
utilidades del 2010 estuvo limitado, en parte por
la lenta aunque activa recuperación económica, y
porque hubo que tomar medidas para proteger el
patrimonio en aquellos países donde la volatilidad del
tipo de cambio ha tenido un mayor impacto relativo.
Net earnings for 2010 were US$ 151 million, or 1.2%
higher than in 2009 when they were at US$ 149 million.
This was a reflection of improved economic conditions,
making it possible to transfer funds placed in relatively
low-yield assets to other, more profitable assets such
as the loan portfolio, for example. It also reflected the
profit-generating efforts carried out by all the Group’s
business areas. On the other hand, however, earnings
growth in 2010 was partially limited by the slow but
steady economic recovery and by measures that had to
be taken to protect equity in countries where exchange
rate volatility has had a greater relative impact.
Además, para entender mejor la evolución histórica
de las utilidades del Grupo BAC Credomatic, cabe
recordar el hecho de que en los años 2007 y 2008
se obtuvieron utilidades extraordinarias por US$33
millones y US$50 millones respectivamente, producto
de la venta de acciones de Mastercard y VISA, lo que
explica su comportamiento antes de la crisis.
In addition, to better understand historical evolution
of BAC Credomatic Group profits, it should be recalled
that extraordinary earnings of US$ 33 million and US$
50 million were recorded in 2007 and 2008, respectively,
as a result of the sale of MasterCard and VISA shares,
which explains its behavior before the crisis.
- 44 -
Utilidad neta | Net income
(US MM)
245
184
149
151
2009
2010
122
2006
2007
A diciembre del 2010, el Grupo BAC Credomatic obtuvo
un rendimiento sobre el patrimonio (ROE) del 17.6% y un
rendimiento sobre activos (ROA) del 1.9%, levemente
menores a los obtenidos en el 2009, cuya variación se
debe sobre todo a que las utilidades tuvieron un ritmo
de crecimiento menor al del patrimonio y los activos
respectivamente, dada la coyuntura en la que se ha
tenido que desenvolver el Grupo en los dos últimos
años. Complementario a lo anterior, de nuevo hay
que resaltar las ganancias extraordinarias obtenidas
en el 2007 y 2008, las cuales tuvieron un impacto
significativo sobre estos indicadores, tal y como se
muestra a continuación:
- 45 -
2008
At December 2010, BAC Credomatic Group obtained a
return on equity (ROE) of 17.6% and a return on assets
(ROA) of 1.9%, slightly below the returns obtained
in 2009. The variation is explained primarily by the
fact that profits grew slower than equity and assets,
respectively, thanks to the scenario within which the
Group has been operating over the last two years.
In conjunction with the above, mention must again
be made of the extraordinary earnings obtained in
2007 and 2008, which significantly impacted these
indicators, as shown below:
Retorno sobre patrimonio (%) | Return on equity (%)
34,2%
29,0%
6,0%
35,3%
6,7%
19,3%
17,6%
29,0%
28,2%
28,6%
19,3%
17,6%
2006
2007
ROE Operativo | Operative ROE
2008
2009
2010
ROE Ingresos Extraordinarios | Extraordinary ROE
Retorno sobre activos (%) | Return on assets (%)
3,4%
3,5%
3,2%
0,6%
0,7%
2,0%
3,2%
2,8%
2,8%
2,0%
2006
2007
ROA Operativo | Operative ROA
1,9%
2008
2009
1,9%
2010
ROA Ingresos Extraordinarios | Extraordinary ROA
- 46 -
6.7 Eficiencia e innovación
6.7 Efficiency and Innovation
Año con año, el Grupo BAC Credomatic ha llevado
a cabo un proceso consistente y sostenido, que
incluye iniciativas enfocadas al control de los costos,
la generación de nuevas fuentes de ingresos y la
promoción de la creatividad del colaborador mediante
un proceso sistemático de innovación.
Year after year, the BAC Credomatic Group has carried
out a consistent, sustained process that has included
initiatives to control costs, generate new sources of
income and promote collaborator creativity through
systematic innovation.
La innovación es parte estratégica de BAC Credomatic,
y es en esta línea que por medio de INSIVA se ha
venido desarrollando un programa de generación de
ideas que nos ha permitido continuar creando nuevos
productos, servicios y canales que nos diferencian en
el mercado financiero, al tiempo que hemos mejorado
nuestros procesos internos para asegurar un alto nivel
de servicio, de la mano de la eficiencia operativa.
A strategic part of BAC Credomatic is the concept of
InSIvación (literally, ‘In-YES-vation’), and along this line,
through INSIVA an idea-generating program has been
developed which has enabled us to continue creating
new products, services and channels to rise above all
the others in the financial market. At the same time,
we have improved our internal processes to ensure
quality service that goes hand-in-hand with operating
efficiency.
Específicamente en el 2010, el enfoque consistió
en diseñar procesos para promover la innovación a
todo nivel (se llevaron a cabo 41 campañas en toda
la región), de forma sistemática y haciéndola parte
de nuestra cultura. El resultado fue muchas ideas
innovadoras generadas a lo interno de la organización
(más de 8,000), que pasan por un proceso de
evaluación posterior para clasificar y filtrar aquellas
que serán ejecutadas.
- 47 -
Specifically, our approach in 2010 was to design
processes for encouraging systematic innovation at all
levels and making it part of our culture (41 campaigns
were carried out throughout the region). The result
was a flood of innovative ideas coming from within
the organization (more than 8,000), which are then
evaluated for classifying and filtering to identify the
ones that will be executed.
El valor de una sonrisa nos hace crecer
The value of a smile makes us grow
GESTIÓN DEL RIESGO
RISK MANAGEMENT
7.1 Riesgo de mercado
7.1 Market Risk
El marco general para el control y la administración de
los riesgos de tasa de interés, tipo de cambio y liquidez
a los que está expuesto el Grupo BAC Credomatic
está definido principalmente en dos lineamientos
internos de alcance regional: la Política Regional de
Inversiones y la Política Regional de Administración
de Activos y Pasivos, que se encuentran debidamente
documentadas en el Sistema de Gestión de Calidad, al
que todos los colaboradores tienen acceso.
The general framework for controlling and managing
the interest rate, exchange rate and liquidity risks
to which BAC Credomatic Group is exposed is set out
primarily in two internal sets of guidelines for the
region: the regional investment policy and the regional
asset and liability management policy. These are duly
documented in the Quality Management System to
which all employees have access.
La Política Regional de Inversiones incluye los
lineamientos generales para la administración de
las carteras propias de inversión, los procesos de
aprobación de emisores y la compraventa de títulos,
con el fin de garantizar la ejecución uniforme de
estrategias financieras que aseguren el adecuado uso
de los fondos de la red BAC Credomatic.
Regional investment policy includes general guidelines
for managing appropriate investment portfolios,
approving issuers and buying and selling securities, for
uniform application of financial strategies ensuring
that the BAC Credomatic Network’s funds are being
used properly.
Dado que las inversiones del Grupo son consideradas
como una reserva de liquidez, el objetivo que tenemos
con la administración de nuestro portafolio es obtener
un rendimiento razonable sin dejar de lado las normas
conservadoras que nos caracterizan.
En la Política Regional de Inversiones, se definen tres
tipos de límites relacionados entre sí: el de riesgo país,
el de emisor y el de emisión. En general, los límites de
riesgo país y de emisor son aprobados únicamente
por el Comité Regional de Activos y Pasivos (ALICO, por
sus siglas en inglés), conformado por miembros de la
Junta Directiva de BAC Credomatic. Por otra parte, los
límites de emisión son aprobados a nivel local para
que cada país tenga cierto grado de libertad para
ejecutar opciones de inversión en forma oportuna.
A nivel regional, el acatamiento de la Política Regional
de Inversiones es obligatorio. Su cumplimiento es
monitoreado a diario por medio del Módulo de
Administración y Control de Cartera de Inversiones
(MACCI), que permite documentar todo el proceso
de inversiones, incluyendo nuevas aprobaciones,
incrementos o disminuciones de límite, compras
y ventas y, además, controlar las exposiciones por
emisor y la utilización de las cuotas asignadas.
- 49 -
Since the Group’s investments are considered a
liquidity reserve, our portfolio management goal is
to obtain a reasonable yield while still observing our
characteristically conservative standards.
Three types of interrelated limits are defined in the
regional investment policy: country risk, issuer and issue.
In general, country risk and issuer limits are approved
solely by the regional Assets and Liabilities Committee
(ALICO), which is made up of BAC Credomatic board
members. Issue limits, on the other hand, are approved
locally, so that each country has a certain degree of
freedom to execute investment options expeditiously.
Adherence to the regional investment policy is
obligatory throughout the region. Compliance is
monitored daily through the Investment Portfolio
Control and Management Module (MACCI, its acronym
in Spanish), which makes it possible to document the
entire investment process, including new approvals,
limit increases or decreases, and purchases and sales, in
addition to controlling exposures by issuer and use of
assigned quotas.
Por otra parte, la Política Regional de Administración
de Activos y Pasivos —cuyo acatamiento también es
obligatorio— define los lineamientos generales que
se deben seguir para la administración del riesgo de
liquidez, tasas de interés y tipo de cambio, con el fin
de que dicha ejecución sea uniforme y se minimice el
riesgo y se optimice la oportunidad.
El riesgo de liquidez en moneda local y extranjera se
administra mediante el cálculo de la cobertura de
liquidez —neta de obligaciones y requerimientos— a
nivel de cada país, a nivel consolidado y en situaciones
normales y de estrés. Además, el Grupo procura
mantener un calce de plazos que le permita cumplir
con sus obligaciones financieras a través del tiempo.
Cada entidad del Grupo debe administrar el riesgo de
tasa de interés de acuerdo con la normativa prudencial
establecida por el regulador correspondiente. En
la Política Regional de Administración de Activos y
Pasivos, se utiliza como herramienta de medición el
cálculo de un factor de sensibilidad ante un cambio
del 1% en las tasas de interés en dólares y del 2% en las
tasas en monedas locales para cada banco del Grupo.
El límite máximo para esta exposición se mide como
un porcentaje de las utilidades presupuestadas para
el año.
Finalmente, con respecto al riesgo cambiario, por
política se establece que la diferencia entre los activos
y pasivos en moneda extranjera debe ser por lo menos
igual al patrimonio, lo que implica mantener una
posición larga en dólares estadounidenses con el fin
de proteger el patrimonio ante fluctuaciones de las
monedas locales de los países donde opera el Grupo.
La Dirección Regional Financiera, los comités locales
de activos y pasivos, el ALICO Regional y la Junta
Directiva de BAC Credomatic llevan a cabo, en forma
conjunta y constante, el monitoreo de las exposiciones
y el cumplimiento de las políticas mencionadas
anteriormente.
Cabe recalcar que las políticas mencionadas se
complementan con el monitoreo constante de
variables críticas, locales e internacionales, y el uso
de herramientas tecnológicas y metodologías más
sofisticadas en la medición y gestión de los riesgos de
mercado.
The regional assets and liabilities management policy
(also obligatory) sets out general guidelines for the
administration of liquidity, interest rate and exchange
rate risks. The idea is to standardize management,
minimize risk and optimize opportunity.
Local and foreign currency liquidity risk is managed
by calculating liquidity coverage—net of liabilities
and requirements—at the level of each country, at the
consolidated level, and in normal and stress scenarios.
The Group also tries to match asset and liability
maturities so that it can meet its financial obligations
over time.
Each of the Group’s companies must manage interest
rate risk according to prudent standards established by
the respective regulators. The measurement tool used
in the regional assets and liabilities management policy
is the calculation of a sensitivity factor for a 1% change
in dollar interest rates and a 2% change in local currency
rates for each of the Group’s banks. The maximum
exposure limit is measured as a percentage of projected
earnings for the year.
Finally, with respect to exchange rate risk, the policy
establishes that the difference between assets and
liabilities in foreign currency should be at least equal
to equity, which means keeping a long position in U.S.
dollars in order to protect equity against local currency
fluctuations in the countries where the Group operates.
Monitoring of exposures and compliance with these
policies is carried out jointly and constantly by the
Regional Financial Director, the local assets and
liabilities committees, the regional ALICO and the Board
of Directors of BAC Credomatic.
It should be highlighted that the abovementioned
policies are supplemented by continuous monitoring
of key local and international variables and the use
of more sophisticated market risk management and
measurement methodologies and technological tools.
- 50 -
7.2 Riesgo de crédito
7.2 Credit Risk
El Grupo BAC Credomatic cuenta con estrictas políticas
de control y administración del riesgo de crédito, así
como con una robusta estructura organizativa de
riesgo, tanto regional como local, que vela por su
aplicación y seguimiento.
The BAC Credomatic Group has strict credit risk
management and control policies, as well as a robust
risk organization, both regional and local, to enforce
and monitor them.
La Dirección Regional de Riesgo es la encargada de:
definir políticas y procedimientos de crédito y de
provisiones contra incobrables; monitorear y analizar
el desempeño de las diferentes carteras; estandarizar
e implementar nuevas tecnologías y buenas prácticas;
y desarrollar y dar asesoría sobre estrategias de
cobranza. Esta Dirección reporta directamente al CEO,
coordina el Comité de Crédito Regional e informa a
la Junta Directiva sobre la evolución de la cartera.
Asimismo, esta Dirección tiene una participación
activa en el análisis de los nuevos negocios que
implican riesgo de crédito para todos los países donde
opera el Grupo.
Además, cada una de las empresas del Grupo cuenta
con una estructura local de análisis de riesgo,
independiente de las áreas de negocios. Esta sigue
los principios básicos de la prudente administración
del riesgo de crédito, principios comprobados a lo
largo de muchos años que, con el apoyo de nuevas
herramientas tecnológicas, permiten realizar su labor
de una forma más eficiente.
In addition, each of the Group’s companies has a local
risk analysis structure separate from the business areas,
which follows the basic principles of prudent credit risk
management proven over the course of many years,
supported by new technological tools for carrying out
its task more efficiently.
The Group’s healthy credit risk practices include:
Entre las sanas prácticas que el Grupo realiza a nivel
de riesgo de crédito se encuentran:
• Defining growth strategies for the different portfolios
in accordance with country risk;
• Definición de estrategias de crecimiento para los
diferentes portafolios de acuerdo con el riesgo del
país.
• Frequently reviewing the economic, social and
political situations of the countries where we operate,
as well as the international scene;
• Revisión frecuente de la situación política, social
y económica de los países donde opera y a nivel
internacional.
• Quantitatively and qualitatively analyzing the
different industrial and economic sectors and
socioeconomic segments for determining product
share in each;
• Análisis cualitativos y cuantitativos de los diferentes
sectores económicos e industriales, así como de los
segmentos socioeconómicos, que permiten definir
la participación de los productos en cada uno de
estos.
• Análisis de shocks cambiarios, tasas de interés,
impactos inflacionarios y de ingreso disponible en
las carteras.
- 51 -
The Regional Risk Director is in charge of setting credit
policies and procedures and write-off provisions,
monitoring and analyzing the performance of the
different portfolios, standardizing and applying new
technologies and good practices, and developing and
counseling on collection strategies. This director reports
directly to the CEO, coordinates with the regional credit
committee and keeps the Board of Directors informed
on portfolio developments, while at the same time
participating actively in analysis of new business
prospects affecting credit risk everywhere the Group
operates.
• Analyzing interest and exchange rate shocks and
income and inflationary impacts on the portfolios;
and
• Reviewing and monitoring all of the Group’s loan
portfolios quarterly, based on updated financial
information.
• Procesos de revisión y monitoreo trimestral de
todos los portafolios crediticios del grupo con base
en información financiera actualizada.
En esta revisión de cartera participan los
departamentos de riesgo local y regional, áreas de
negocio y el CEO, CRO y gerentes generales y de país.
En estas sesiones se tiene como objetivo:
• Identificar, medir, monitorear y controlar las
concentraciones de riesgo crediticio del banco en las
mismas áreas (tales como sector industrial, sector
económico o región geográfica) y fomentar una
apropiada diversificación dentro de las carteras.
• Detectar y analizar las tendencias en el
comportamiento de la cartera (índices de
crecimiento, pérdidas, rentabilidad, etc.).
• Definir las medidas correctivas necesarias.
Con base en las revisiones de cartera y su continuo
monitoreo, el Grupo mantiene una reserva de
préstamos suficiente para absorber las pérdidas
probables inherentes a las carteras de crédito.
Durante el primer semestre del 2008, se tomó
la determinación de ajustar los parámetros de
originación en los sectores y segmentos vulnerables
ante shocks de la economía. De esa manera, cuando
en la segunda mitad de 2008 se presentaron los
primeros efectos de la crisis financiera y económica
internacional, el Grupo ya se había adelantado con
medidas para reducir el riesgo de crédito de su cartera.
Durante todo el 2009 y 2010, se mantuvieron estos
parámetros de colocación más prudentes y se reforzó
la capacidad y eficacia de las áreas de cobranza.
Esto provocó que los castigos de cartera, netos de
recuperaciones como porcentaje de la cartera de
crédito promedio, pasaran del 2.7% en el 2009 a un
2,0% en el 2010.
Participating in this portfolio review are the local and
regional risk departments, the business areas and the
CEO, CRO and general and country managers. The goals
of these meetings include:
• Identifying, measuring, monitoring and controlling
the bank’s credit risk concentrations in a single
area (such as the industrial sector, economic sector
or geographical region) and fostering appropriate
diversification within the portfolios;
• Detecting and analyzing behavioral trends in the
portfolio (growth, loss and profitability indices, etc.);
and
• Determining the necessary corrective measures.
Based on reviews of portfolios and their continuous
monitoring, the Group maintains a sufficient loan
reserve to absorb probable losses inherent to credit
portfolios.
During the first semester of 2008, a decision was made
to adjust the origination parameters in sectors and
segments vulnerable to economic shocks. Thus, when
the first effects of the international economic and
financial crisis began to be felt in the second half of
2008, the Group already had a head start on measures
to reduce its portfolio credit risk.
Throughout 2009 and 2010 these more prudent
placement parameters were maintained, while
collection capacity and effectiveness was reinforced.
This caused net portfolio penalties from recoveries as
a percentage of the average loan portfolio to fall from
2.7% in 2009 to 2.0% in 2010.
Default rates were soaring globally, but the Group was
able to contain these, as shown in the following table.
Y, a pesar de que globalmente los niveles de morosidad
llegaron a niveles elevados, en el Grupo se pudieron
controlar, tal y como lo demuestra el siguiente cuadro.
- 52 -
Morosidad +90 días por tipo de préstamo / +90 days delinquency by loan type
Tipo de préstamo / Type of loan
Dec-08
Dec-09
Dec-10
Tarjeta crédito / Credit Card
2.7%
2.8%
2.6%
Hipoteca / Mortgage
1.1%
1.4%
1.4%
Automóviles / Vehicle
1.4%
1.1%
0.6%
Personal / Personal
1.8%
1.2%
1.0%
Comercial / Commercial
1.6%
1.4%
1.0%
TOTAL
1.7%
1.7%
1.5%
7.3 Riesgo operativo
7.3 Operating Risk
La gestión de riesgos operativos en el Grupo BAC
Credomatic se realiza mediante una metodología
conceptual que sigue los lineamientos de Basilea
II e incorpora, además, elementos del esquema de
administración integral de riesgos de COSO. COSO
es una organización dedicada a mejorar la calidad
de los informes financieros por medio de ética en
los negocios, controles internos eficaces y gobierno
corporativo. Ha emitido normas en diversas áreas,
incluyendo la gestión de riesgos operativos.
Operating risk management in BAC Credomatic
Group is carried out using a conceptual methodology
that follows Basel II guidelines and also incorporates
elements of the COSO integral risk management
scheme. COSO is an organization dedicated to
improving the quality of financial reporting through
business ethics, effective internal controls and corporate
governance. It has issued standards in different areas,
including operational risk management.
Nuestro sistema de gestión es un proceso continuo
de administración descentralizada del riesgo en varias
etapas:
• Gestión de ambiente de control (medición y
corrección de brechas).
• Identificación y evaluación de riesgos.
• Mitigación de riesgos (implementación de controles
para los casos en que los riesgos superan un límite
de aceptación).
• Monitoreo de riesgos (seguimiento de indicadores
de riesgo).
Our management system is an ongoing process of
decentralized risk management in various stages:
• Control
environment
management
measurement and correction);
(gap
• Risk identification and assessment;
• Risk mitigation (implementation of controls in cases
where risks exceed an acceptable limit);
• Risk monitoring (monitoring of risk indicators);
• Risk measurement (incident data collection); and
• Control effectiveness testing.
• Medición de riesgos (recolección de incidentes).
• Pruebas de eficacia de controles.
Una unidad centralizada de gestión de riesgos da
seguimiento y evalúa la gestión descentralizada
que realiza la administración. Además, un comité
conformado por el área ejecutiva, el cual reporta a Junta
Directiva, supervisa la gestión y se asegura de que los
riesgos identificados de la operación se mantengan en
niveles satisfactorios. Este mismo comité incluye en
su mandato la gestión de la continuidad del negocio.
- 53 -
A centralized risk management unit provides follow-up
and assesses the decentralized management carried out
by managers. In addition, a committee comprised of the
executive area, which reports to the Board of Directors,
oversees management and makes sure the operating
risks that have been identified are kept at satisfactory
levels. Another of the committee’s mandates is business
continuity management.
La gestión de riesgos provee información que facilita
la gestión proactiva del cumplimiento regulatorio, el
servicio al cliente y la continuidad del negocio, entre
otros, mientras permite el crecimiento centrándose
en la mejora de procesos y control del rendimiento,
minimizando las pérdidas operativas e incidentes y
optimizando la efectividad del control.
Risk management provides information that facilitates
proactive management of regulatory compliance,
customer service, business continuity and others,
while enabling growth by focusing on improvement
in processes and controlling performance, minimizing
operating losses and incidents and optimizing the
effectiveness of control.
La gestión de riesgo operativo proporciona una
seguridad razonable sobre el logro de los objetivos de
la organización, potencia la mejora continua, asegura
en forma sistemática la autoevaluación de la gestión,
promueve la transparencia y reafirma la rendición de
cuentas a nivel de toda la organización, incluyendo
en su marco de gestión de riesgos estructuras y
procedimientos de gobernabilidad.
Operational risk management provides reasonable
security about achieving the organization’s goals,
fostering continuous improvement that ensures
systematic self-evaluation of management. It promotes
transparency and reaffirms accountability throughout
the organization, including governance procedures and
structures within its risk management framework.
La implementación de la gestión de riesgo operativo
proporciona los siguientes beneficios:
Implementation of operational risk management
provides the following benefits:
• Permite el trato conceptual homogéneo de los
riesgos operativos de todos los productos y
posibilita la comunicación y discusión eficaz de
exposiciones y acciones correctivas asociadas con
los riesgos principales.
• Allows for standardized conceptual treatment of
the operating risks of all products, and enables
communication and effective discussion of exposures
and corrective actions for the main risks
• Promueve un uso eficiente y eficaz de los recursos
de control: se dedica más esfuerzo a los procesos
donde hay mayores riesgos operativos.
• Mejora el entendimiento y el origen de los riesgos
operativos por parte de las unidades funcionales
mismas:
− Reconocimiento oportuno de dónde están
las exposiciones principales a incidentes de
riesgos operativo y cómo se pueden mitigar.
− Proporciona incentivos a los gerentes de línea
para mejorar la administración y el control de
sus riesgos operativos.
− La información de pérdidas operativas con el
tiempo podrá servir de base para efectuar
análisis de costo-beneficio a la hora de evaluar
posibles nuevos controles.
• Encourages efficient and effective use of control
resources; more effort is dedicated to processes
where operating risks are greater
• Improves understanding and ownership of
operational risks by the functional units themselves:
− There is timely recognition of where the main
exposures and operating risk incidents are and
how they can be mitigated;
− Line managers are provided incentives to
improve management and control of their
operational; and
− Information on operational losses over time
can serve as the basis for a cost-benefit analysis
when evaluating potential new controls.
- 54 -
Conectarse con el mundo es descubrir nuevos horizontes
To be connected to the world is discover new horizons
ESTADOS FINANCIEROS CONSOLIDADOS
CONSOLIDATED FINANCIAL STATEMENTS
- 56 -
BAC INTERNATIONAL BANK, INC. AND SUBSIDIARIES
(Panama, Republic of Panama)
Independent Auditors’ Report
Consolidated Balance Sheets
Table of Contents
Consolidated Statements of Income
Consolidated Statements of Changes in Equity and Comprehensive Income
Consolidated Statements of Cash Flows
Independent Auditors’ Report
Notes to the Consolidated Financial Statements
Consolidated Statements of Changes in Stockholder’s Equity
Notes to the Consolidated Financial Statements
- 57 -
- 58 -
(Panama,
Republic of Panama)
December 31, 2010 and 2009
December 31, 2010 and 2009
(In
Dollars)
(InU.S.
U.S. Dollars)
Assets
Cash and cash equivalents
Interest-bearing deposits
Trading securities
Securities available for sale
Securities held to maturity
Loans at fair value
Loans
Less:
Allowance for loan losses
Unearned income and deferred loan fees and costs
Loans, net
1,657,635,273
66,247,692
10,476,261
504,371,063
7,907,992
40,384,601
5,032,387,128
87,568,280
34,791,728
5,198,232,263
105,169,337
28,738,714
4,898,479,077
188,009,173
1,120,548
4,832,817
48,521,900
103,711,460
86,125,483
3,367,699
114,864,015
8,408,664,642
182,651,091
1,351,767
3,010,062
48,645,103
72,294,071
85,252,924
12,841,841
89,373,568
7,680,922,386
332,939,639
2,398,399,948
1,130,324,252
2,171,203,914
6,032,867,753
317,579,075
1,865,302,231
963,609,721
2,202,264,884
5,348,755,911
Securities sold under agreements to repurchase
Borrowings
Other borrowed funds
Acceptances outstanding
Accrued interest payable
Other liabilities
Total liabilities
41,734,358
916,824,746
158,347,700
4,832,817
22,756,994
301,370,456
7,478,734,824
35,313,786
979,172,002
233,410,074
3,010,062
27,017,664
243,712,938
6,870,392,437
Equity:
Controlling stockholder's equity:
Common stock, US$1,000 par value. Authorized 100,000 shares;
78,947 shares issued and outstanding
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss
Total controlling stockholder's equity
Noncontrolling interest
Total equity
Total liabilities and equity
78,947,000
34,618,254
893,958,501
(78,093,518)
929,430,237
499,581
929,929,818
8,408,664,642
78,947,000
34,618,254
795,727,266
(99,215,217)
810,077,303
452,646
810,529,949
7,680,922,386
Liabilities and Equity
Deposits:
Demand non-interest-bearing
Demand interest-bearing
Savings
Time deposits
Total deposits
See accompanying notes to consolidated financial statements.
$
2009
1,921,288,472
28,857,982
16,157,405
658,110,446
0
35,464,979
5,320,592,271
Property and equipment, net
Investments in unconsolidated entities
Customers' liability under acceptances outstanding
Accrued interest receivable
Other accounts receivable
Goodwill
Intangible assets
Other assets
Total assets
- 59 -
2010
$
$
$
For the years
endedRepublic
December
31, 2010 and 2009
(Panama,
of Panama)
(In U.S.
Dollars)31, 2010 and 2009
For the years ended
December
(In U.S. Dollars)
2010
Interest income:
Loans
Trading securities
Securities available for sale
Total interest income
$
2009
706,065,085
10,395,828
27,369
21,715,109
691,160
738,894,551
717,304,900
14,825,626
220,766
19,966,539
313,277
752,631,108
Interest expense:
Deposits
Securities sold under agreements to repurchase
Borrowings and other borrowed funds
Total interest expense
147,641,815
2,775,250
47,877,196
198,294,261
184,301,236
3,472,998
73,017,196
260,791,430
Net interest income before provision for loan losses
Provision for loan losses
Net interest income after provision for loan losses
540,600,290
87,383,541
453,216,749
491,839,678
125,076,426
366,763,252
Other income (expenses):
Service charges
Commissions and other fees, net
Foreign currency gains, net
Net gain on trading securities
Net gain on sale of securities available for sale
Other income
Total other income
172,928,950
81,945,562
25,195,214
232,706
11,285,540
20,810,517
312,398,489
181,676,834
70,435,333
48,904,680
1,159,163
9,143,904
25,481,356
336,801,270
Operating expenses:
Salaries and employee benefits
Depreciation and amortization
Administrative expenses
Occupancy and related expenses
Other operating expenses
Total operating expenses
231,437,512
39,588,972
22,990,438
40,094,483
220,147,336
554,258,741
209,687,848
34,846,178
23,061,358
36,592,939
189,560,999
493,749,322
Income before income tax expense
211,356,497
209,815,200
Income tax expense
Net income
60,033,300
151,323,197
60,222,391
149,592,809
91,962
151,231,235
93,834
149,498,975
Less: net income attributable to noncontrolling interest
Net income attributable to controlling stockholder
$
3
- 60 -
INTERNATIONAL BANK, INC. AND SUBSIDIARIES
ConsolidatedBACStatement
of Changes in Stockholder’s Equity
For
the years
ended
December
31,Comprehensive
2010 and Income
2009
Consolidated
Statements
of Changes
in Equity and
(In U.S. Dollars)
For the years ended December 31, 2010 and 2009
(In U.S. Dollars)
Controlling Equity of the Controlling Company
Balance as of December 31, 2008
$
Net income
Foreign currency translation
Changes in unrealized gain (loss) on:
Securities available for sale, net of tax
Cash flow hedging derivatives
Accumulated Other
Comprenhensive Loss
Common Stock
Additional Paidin Capital
Retained
Earnings
78,947,000
34,618,254
756,056,517
(93,577,394)
776,044,377
418,092
776,462,469
0
0
0
0
149,498,975
0
0
(16,081,101)
149,498,975
(16,081,101)
93,834
(14,969)
149,592,809
(16,096,070)
0
0
0
0
0
0
10,990,536
(547,258)
10,990,536
(547,258)
(306)
0
10,990,230
(547,258)
Comprehensive income
Dividends
Net income
Changes in unrealized gain (loss) on:
Securities available for sale, net of tax
Cash flow hedging derivatives
(109,828,226)
0
$
143,861,152
78,559
143,939,711
(109,828,226)
(44,005)
(109,872,231)
78,947,000
34,618,254
795,727,266
(99,215,217)
810,077,303
452,646
810,529,949
0
0
0
0
151,231,235
0
0
28,850,898
151,231,235
28,850,898
91,962
(22,840)
151,323,197
28,828,058
0
0
0
0
0
0
0
78,947,000
0
34,618,254
(53,000,000)
893,958,501
4
Total Equity
0
- 61 -
Noncontrolling
Interest
0
(4,124,870)
(3,604,329)
Comprehensive income
Dividends
Total Controlling
Equity
0
(78,093,518)
(4,124,870)
(3,604,329)
337
0
(4,124,533)
(3,604,329)
172,352,934
69,459
172,422,393
(53,000,000)
929,430,237
(22,524)
499,581
(53,022,524)
929,929,818
(Panama, Republic
Panama)
BAC INTERNATIONAL
BANK, of
INC.
AND SUBSIDIARIES
For For
thethe
years
ended December 31, 2010 and 2009
years ended December 31, 2010 and 2009
(In U.S. Dollars)
(In U.S. Dollars)
2010
Cash flows from operating activities:
Net income
Adjustments to reconcile net income to net cash
provided by operating activities:
Net loss on impairment of foreclosed assets
Impairment loss on intangible assets
Release of provision for unfunded committments
Release of provision for claims receivable for unreturned securities
Depreciation and amortization
Amortization of deferred loan fees and costs
(Loss) gain on derivative financial instruments
Net (increase) decrease in trading securities
Gain (loss) on sale of unconsolidated entities
Net gain on trading securities
Net (gain) loss on sale of property and equipment
Deferred income tax expense
Decrease (increase) in accrued interest receivable
Increase in other accounts receivable
Increase in other assets
Decrease in accrued interest payable
Increase (decrease) in other liabilities
Net cash provided by operating activities
$
Cash flows from investing activities:
Net decrease (increase) in deposits placed with original maturity over three months
Proceeds from sale of securities available for sale
Maturities, prepayment and calls of securities available for sale
Purchases of securities available for sale
Maturities, prepayment and calls of securities held to maturity
Purchases of securities held to maturity
Proceeds from sale of investment in unconsolidated entities
Advanced to unconsolidated entities, net of dividends received
Net increase in loans
Purchases of property and equipment
Proceeds from sale of property and equipment
Net cash used in investing activities
Cash flows from financing activities:
Net proceeds from deposits received
Net (repayment) proceeds from other borrowed funds
Net (decrease) increase in securities sold under agreements to repurchase
Proceeds from borrowings
Repayment of borrowings
Dividends paid
Net cash provided by financing activities
151,323,197
149,592,809
87,383,541
3,997,057
7,047,695
(12,560)
(190,611)
39,588,972
(604,357)
3,496,232
(4,234,499)
(1,211,586)
(11,518,246)
(891,054)
873,049
1,275,729
(31,045,856)
(23,364,537)
(6,250,969)
42,812,133
258,473,330
125,076,426
695,937
0
(484,930)
(264,179)
34,846,178
(107,314)
(814,519)
6,906,944
172,678
(10,303,067)
41,020
12,385,733
(2,171,066)
(4,672,637)
(12,154,047)
(1,307,234)
(27,841,994)
269,596,738
5,180,400
521,706,422
1,296,255,677
(1,941,892,884)
522,863
0
1,304,215
(45,000)
(244,049,894)
(52,088,925)
4,268,871
(408,838,255)
(25,209,915)
638,593,206
2,049,716,098
(2,765,033,699)
1,012,643
(296,797)
568,963
0
(6,710,275)
(43,168,021)
2,738,151
(147,789,646)
544,576,385
(30,847,778)
(10,843,015)
506,763,499
(580,705,231)
(53,022,524)
375,921,336
600,379,636
14,590,954
5,193,481
5,120,040,680
(5,611,016,133)
(109,872,231)
19,316,387
38,096,788
Effect of exchange rate fluctuations on cash held
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
$
2009
263,653,199
1,657,635,273
1,921,288,472
(29,543,014)
111,580,465
1,546,054,808
1,657,635,273
5
- 62 -
Notes to Consolidated Financial Statements
December 31 2010 and 2009
(1)
Organization
BAC International Bank, Inc. was incorporated on August 25, 1995 in Panama City, Republic of
Panama, as a bank and bank holding company. BAC International Bank, Inc. is a 100% owned
subsidiary of BAC International Corporation (the Parent Company). BAC International Bank, Inc.
provides, directly and through its wholly owned subsidiaries, Credomatic International
Corporation (CIC), BAC International Bank (Grand Cayman) (BAC Cayman), BAC Bahamas Bank
Ltd., Rudas Hill Financial, Inc., Premier Asset Management, Inc., BAC Leasing, Inc. and BAC Valores
(Panama), S. A. (collectively, the “Bank”) a wide variety of financial services to individuals and
institutions, principally in Mexico, Guatemala, Honduras, El Salvador, Nicaragua, Costa Rica and
Panama.
The banking operations in the Republic of Panama are regulated and supervised by the
Superintendency of Banks of the Republic of Panama, according to provisions established by Law
Decree No. 52, dated April 30, 2008, that adopts the single text of Law Decree No. 9 of February
26, 1998, as amended by Legislative Decree No. 2 dated February 22, 2008, which establishes the
banking regime of the Republic of Panama and creates the Superintendency of Banks and the
rules that govern it.
(2)
Summary of Significant Accounting Policies
The accounting and reporting policies of the Bank and its subsidiaries are in accordance with U.S.
generally accepted accounting principles (US GAAP). These consolidated financial statements are
expressed in U.S. dollars ($).
The following is a description of significant policies and practices:
(a)
Principles of Consolidation and Investments in Unconsolidated Entities
These consolidated financial statements include the accounts of the Bank and all majority
owned subsidiaries. In consolidation all significant intercompany accounts and transactions
are eliminated. Investments in companies where it has significant influence but not a
financial interest of control are accounted for under the equity method and the pro rata
share of their income (loss) is included in other income, while investments in companies
where it has not significant influence are accounted for under the cost method; income is
recognized when dividends are received.
According to the Financial Accounting Standards Board (FASB), Accounting Standards
Codification (ASC) 810 (FASB ASC 810), “Consolidation”, the Bank classifies noncontrolling
interest as part of consolidated net income and includes the accumulated amount of
noncontrolling interest as part of equity.
6
- 63 -
(b)
Use of Estimates
For the preparation of these consolidated financial statements in conformity with US GAAP,
management has made a number of estimates and assumptions relating to the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities. Actual
results could differ from those estimates. Material estimates that are particularly
susceptible to change include the allowance for loan losses, the fair values of financial
instruments and contingencies and income tax.
(c)
Cash and Cash Equivalents
The Bank considers all highly liquid investments with a maturity of 90 days or less from
their acquisition as cash equivalents. Cash and cash equivalents include cash, due from
banks, certain securities and term interest-bearing deposits with original maturities of 90
days or less.
(d)
Securities Purchased and Sold Agreements
Securities purchased under resale agreements and securities sold under repurchase
agreements are generally accounted for as collateralized financing transactions and are
recorded at the amount at which the securities were acquired or sold plus accrued interest.
It is the Bank’s policy to take possession of securities purchased under resale agreements.
The Bank monitors the market value of securities purchased and sold and obtains collateral
from or returns it to counterparties when appropriate.
(e)
Securities
Securities that are held principally for resale in the near term are classified as trading
securities and recorded at fair value with changes in fair value recorded in earnings. Debt
securities that management has the positive intent and ability to hold to maturity are
classified as held to maturity and recorded at amortized cost. All other securities are
classified as available for sale and recorded at fair value. Unrealized holding gains and
losses, net of the related tax effect, if any, on available-for-sale securities are reported as a
component of accumulated other comprehensive income/loss.
Realized gains and losses from the sale of securities are recorded on a trade-date basis and
determined on a specific identification basis. Realized gains and losses are included in other
income as securities gains (losses).
Premiums and discounts are recognized as an adjustment to yield over the contractual term
of the security using a method that approximates the interest method. If a prepayment
occurs on a security, any related premium or discount is recognized as an adjustment to
yield in the period in which the prepayment occurs. Interest on securities is recognized in
interest income on an accrual basis.
7
- 64 -
The Bank makes an assessment to determine whether there have been any events or
economic circumstances to indicate that a security on which there is an unrealized loss is
impaired on an other-than-temporary basis.
Effective April 1, 2009, the FASB amended ASC 320, Investments – Debt and Equity
Securities. This amendment modified the existing model for recognition and measurement
of impairment for debt securities. The two principal changes to the impairment model for
securities are as follows:
•
Recognition of an other-than-temporary impairment charge for debt securities is
required if any of these conditions are met: (1) the Bank does not expect to recover the
entire amortized cost basis of the security, (2) the Bank intends to sell the security or, (3)
it is more likely than not that the Bank will be required to sell the security before it
recovers its amortized cost basis.
•
If the first condition above is met, but the Bank does not intend to sell and it is not more
likely than not that the Bank will be required to sell the security before recovery of its
amortized cost basis, the Bank would be required to record the difference between the
security’s amortized cost basis and its recoverable amount in earnings and the
difference between the security’s recoverable amount and fair value in other
comprehensive income. If either the second or third criteria are met, then the Bank
would be required to recognize the entire difference between the security’s amortized
cost basis and its fair value in earnings.
The adoption of these pronouncements did not have a significant impact in the Bank’s
consolidated statement of income for the year ended December 31, 2009.
(f)
Loans
Loans are stated at their outstanding unpaid principal balances adjusted for unearned
income, when applicable, except for those loans for which fair value option was elected.
Interest income on loans is recognized on an accrual basis. Loan origination fees and direct
costs as well as premiums and discounts are amortized as an adjustment to yield over the
term of the loan. Loans include direct financing leases that are recorded at the aggregate of
future lease payments receivable plus the estimated residual value of the leased property, if
applicable, less unearned income.
A loan is considered to be impaired when based on current information it is probable the
Bank will not receive all amounts due in accordance with the contractual terms of a loan
agreement. The fair value is measured based on either the present value of expected future
cash flows discounted at the loan's effective interest rate, the loan's observable market
price or the fair value of the collateral if the loan is collateral dependent. A loan is also
considered impaired if its terms are modified in a troubled debt restructuring. When the
8
- 65 -
ultimate collectability of the principal balance of an impaired loan is in doubt, all cash
receipts are applied to principal. Once the recorded principal balance has been reduced to
zero, future cash receipts are recorded as recoveries of any amounts previously charged off,
and then to interest income to the extent any interest has been forgone.
Restructured loans are loans for which the original contractual terms have been modified to
provide for terms that are less than those the Bank would be willing to accept for new loans
with comparable risk because of deterioration in the borrower’s financial condition.
Interest on these loans is accrued at the renegotiated rates.
The Bank’s policy is to discontinue interest accrual either when reasonable doubt exists as
to the full, timely collection of interest or principal, or when a loan becomes 90 days or
more past due as to principal or interest. Credit card receivables that become 90 days past
due or assigned to legal status are placed on non accrual status. The accrued and unpaid
interest is reversed against interest income and, thereafter, the loan is accounted for on the
cash method until it qualifies for return to accrual. When borrowers demonstrate over an
extended period the ability to repay a loan in accordance with the contractual terms of a
loan classified as non accrual, the loan is returned to accrual status. The Bank charges off
loans when collectability of principal is not probable.
(g)
Allowance for Loan Losses and Reserve for Off – Balance Sheet Commitments
The allowance for loan losses and the reserve for off-balance sheet commitments represent
the amounts, which, in management’s judgment, will be adequate to absorb inherent
losses of the existing loan portfolio and off-balance sheet commitments, respectively, at the
balance sheet date. The Bank has developed policies and procedures for assessing the
adequacy of the allowance for loan losses and the reserve for off-balance sheet
commitments that reflect the assessment of credit risk considering all available
information. Where appropriate, this assessment includes monitoring qualitative and
quantitative trends including changes in the levels of past due, criticized and
nonperforming loans. In developing this assessment, the Bank must rely on estimates and
exercise judgment in assessing credit risk. Depending on changes in circumstances, future
assessments of credit risk may yield materially different results from the estimates, which
may require an increase or a decrease in the allowance for loan losses or the reserve for offbalance sheet commitments. Additions to the allowance for loan losses are based on several
factors which include, but are not limited to, analytical review of loan loss experience in
relation to outstanding loans, a continuing review of problem or non performing loans,
overall portfolio quality and adequacy of collateral, results of regulatory examinations,
evaluation of independent appraisals, and management’s judgment with respect to the
impact of current economic conditions on the existing loan portfolio.
9
- 66 -
The allowance on certain homogeneous loan portfolios is based on aggregated portfolio
segment evaluations generally by product type. Loss forecast models are utilized for these
segments which consider a variety of factors including, but not limited to, historical loss
experience, estimated defaults or foreclosures based on portfolio trends, delinquencies,
economic conditions and credit scores. The consumer loss forecast models are updated
periodically in order to incorporate information reflective of the current economic
environment. The remaining commercial portfolios are reviewed on an individual loan basis.
Loans subject to individual reviews are analyzed and segregated by risk according to the
Bank’s internal risk rating scale. These risk classifications, in conjunction with an analysis of
current economic conditions, industry performance trends, and any other pertinent
information results in the estimation of the allowance for loan losses. The historical loss
experience is updated periodically to incorporate the most recent data reflective of the
current economic environment.
In addition to the allowance for loan losses, the Bank also estimates probable losses related
to off-balance sheet commitments, such as letters of credit and financial guarantees, and
binding unfunded loan commitments. Off-balance sheet commitments are subject to
individual reviews and are analyzed and segregated by risk according to the Bank’s internal
risk rating scale. These risk classifications, in conjunction with an analysis of current
economic conditions, performance trends and any other pertinent information, result in the
estimation of the reserve for off-balance sheet commitments.
The allowance for loan losses attributed to loans acquired with credit deterioration, reflects
only the losses attributed after the acquisition – that is, the present value of estimated
future cash flows expected to be collected at the acquisition date. Allowances for loan
losses are established subsequent to the acquisition of such loans.
The allowance for loan losses relating to the loan portfolio, and the reserve for off-balance
sheet commitments are reported in the consolidated balance sheets in the allowance for
loan losses, and other liabilities, respectively. Provision for loan losses related to the loan
portfolio and off-balance sheet commitments are reported in the consolidated statements
of income in the provision for loan losses and other operating expenses, respectively.
(h)
Foreclosed Assets
Assets acquired through, or in lieu of, loan foreclosures are held for sale and are initially
recorded at the lower of its cost or fair value less costs to sell at the date of foreclosure,
establishing a new cost basis. Subsequent to foreclosure, valuations are periodically
performed by management and the assets are carried at the lower of carrying amount or
fair value less cost to sell. Revenue and expenses from operations and changes in the
valuation allowance of those assets are included in other operating expenses. Costs related
to maintenance of those assets are expensed as incurred.
10
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(i)
Transfer of Financial Assets
Transfer of financial assets (all or a portion of a financial asset) in which the Bank surrenders
control over these financial assets is accounted for as a sale to the extent that
consideration, other than beneficial interests in the transferred assets, is received in
exchange. Control over transferred assets is deemed to be surrendered when (1) the assets
have been isolated from the Bank, (2) the transferee obtains the right to pledge or exchange
the transferred assets, and (3) the Bank, its subsidiaries or agents do not maintain effective
control over the transferred assets.
(j)
Property and Equipment
Property and equipment are stated at cost less accumulated depreciation and amortization.
Depreciation is computed using the straight-line method over the estimated useful lives of
the respective assets or based on use, as follows:
Years/Base
Buildings and improvements
Aircraft
Equipment and furniture
Computers
Vehicles
20 – 50
Based on flown hours
5 – 10
3–5
5
Leasehold improvements are amortized in three to ten years or the lease term, whichever is
shorter.
Expenditures for major renewals and improvements are capitalized. Repairs and
maintenance expenditures are charged to expense as incurred. The cost and accumulated
depreciation and amortization relating to premises and equipment retired or otherwise
disposed of are eliminated from the accounts and any resulting gains or losses are credited
or charged to income.
(k)
Goodwill and Intangible Assets
Goodwill is an asset representing the future economic benefits arising from other assets
acquired in a business combination that are not individually identified and separately
recognized. Goodwill and acquired intangible assets with indefinite useful lives are not
amortized but are tested for impairment annually. Acquired intangible assets with definite
useful life are amortized over useful lives in a form that approximates the estimated
decline in the economic value of the intangible asset.
11
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(l)
Impairment
The Bank evaluates the long-term assets recoverability, such as property and equipment,
and acquired intangible assets when there are events or changes in the circumstances that
indicate that the book value of an asset may not be recovered. These circumstances
include, but are not limited to (1) a significant decrease in the asset market value; (2) a
significant adverse change in the use of the asset; and (3) a significant accumulated cost in
excess of the amounts originally estimated at the acquisition date of the asset. The Bank
compares the book value of the asset against the undiscounted estimated cash flows
associated to such asset or group of assets. If the sum of the expected net cash flows is less
than the book value of the asset or group of assets that are being evaluated, an impairment
loss is recognized. An impairment loss is calculated as the amount for which the book value
of the asset exceeds its fair value. The fair value is established using valuation techniques,
including the expected discounted cash flows values.
The Bank evaluates the book value of the goodwill during the fourth quarter of each year
and when any event or a change of circumstances occurred that indicate the probability
that the fair value of the reporting unit is less than its book value. Those circumstances
include, but are not limited to (1) a significant adverse change in the legal business
environment, (2) unexpected competition, or (3) an action or adverse assessment by
regulator. When evaluating the goodwill impairment, the Bank initially compares the fair
value against the book value of the reporting unit, including goodwill. The reporting unit
fair value is estimated using a combination of undiscounted future cash flows and/or a
market method, using comparative information from similar entities. If the book value of
the reporting unit exceeds its fair value, there is an indication of goodwill impairment for
the reporting unit and thus, a second test must be performed to determine if impairment
exists. Loss impairment is calculated by comparing the implicit fair value of the reporting
unit with its book value. While calculating the implicit fair value of the reporting unit, the
fair value of the reporting unit is assigned to all other assets and liabilities of the unit, based
on their respective fair value, and the residual fair value is the implicit fair value of the
goodwill. An impairment loss is recognized when the book value of goodwill exceeds its
implicit fair value.
(m) Revenue Recognition
Revenue is recognized when the earnings process is complete and collectability is assured.
Specifically, brokerage commission fees are recognized in income on a trade date basis.
Asset management fees, measured by assets at a particular date, are accrued as earned.
Advisory fees are recognized when the transaction is complete. Commission expenses are
recorded when the related revenue is recognized. Transaction-related expenses are
recognized as incurred.
12
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Credit card annual fees, net of direct lending costs, are deferred and amortized on a
straight-line basis over a one-year term. Merchant’s commission income is determined
based on the amount and type of purchase by the cardholder and is recognized at the time
the charges are billed.
The Bank offers rewards programs that allow its cardholders to earn points that can be
redeemed for a broad range of rewards including cash, travel and discounted products. The
Bank establishes a rewards liability based upon the points earned which are expected to be
redeemed and the average cost per point redemption. The points to be redeemed are
estimated based on past redemption behavior, card product type, account transaction
activity and other historical card performance. The liability is reduced as the points are
redeemed. The estimated cost of the rewards programs is recorded as contra-revenue
against credit card commissions.
(n)
Fair Value
The Bank determines fair value for financial instruments and non-financial instruments on
a recurring and non-recurring basis according to FASB ASC 820 “Fair Value Measurements
and Disclosures”, that establishes a new framework for measuring fair value and includes
specific disclosures. Depending on the nature of the asset or liability, the Bank uses various
valuation techniques and assumptions when estimating fair value.
The three levels of the fair value hierarchy are described below:
•
•
•
Level 1 – Assets or liabilities for which the identical item is traded on an active exchange,
such as publicly-traded instruments or futures contracts.
Level 2 – Assets and liabilities valued based on observable market data for similar
instruments, quoted prices in markets that are not active; or other inputs that are
observable or can be corroborated by observable market data for substantially the full
term of the assets or liabilities.
Level 3 – Assets or liabilities for which significant valuation assumptions are not readily
observable in the market; instruments valued based on the best available data, some of
which is internally-developed, and consider risk premiums that a market participant
would require.
When determining the fair value measurements for assets and liabilities required or
permitted to be recorded at fair value, the Bank considers the principal or most
advantageous market in which it would transact and considers assumptions that market
participants would use when pricing the asset or liability. When possible, the Bank looks to
active and observable markets to price identical assets or liabilities. When identical assets
and liabilities are not traded in active markets, the Bank looks to market observable data for
similar assets and liabilities. Nevertheless, certain assets and liabilities are not actively
13
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traded in observable markets and the Bank must use alternative valuation techniques to
derive a fair value measurement. A financial instrument’s level within the fair value
hierarchy is based on the lowest level of any input that is significant to the fair value
measurement.
(o)
Derivative Financial Instruments
The Bank makes use of derivative financial instruments, primarily as part of its
management of interest rate risks.
Derivative financial instruments such as interest rate swaps and interest rate caps are used
to manage interest rate risk through the exchange of interest payments based on a
predetermined notional principal amount. The underlying principal balances are not
affected. Net settlement amounts are reported in other income.
The Bank recognizes all derivative instruments as either assets or liabilities in the
consolidated balance sheets at their respective fair values. The accounting for changes in
fair value (i.e. gains or losses) of a derivative instrument depends on whether it has been
designated and qualifies as part of a hedging relationship and, if so, the type of hedge. That
is, the derivative is designated by the Bank as (1) a hedge of the fair value of a recognized
asset or liability or of an unrecognized firm commitment (fair value hedge); or (2) a hedge of
the variability of cash flows of a forecasted transaction to be received or paid related to a
recognized asset or liability (cash flow hedge); or (3) as a freestanding.
Changes in the fair value of a derivative that has been designated and qualifies as a fair
value hedge, along with the changes in the fair value of the hedged asset or liability that
are attributable to the hedged risk, are included in other income (expense) and recorded as
derivative and hedging activities. Changes in the fair value of a derivative that has been
designated and qualifies as a cash flow hedge are recorded in other comprehensive income
(loss) to the extent of its effectiveness, until earnings are impacted by the variability of cash
flows from the hedged item. Changes in the fair value of derivatives held for trading
purposes or those that do not qualify as hedges (freestanding) are included in other income
(expense) and recorded as derivative and hedging activities.
At the inception of each hedge, when applicable, the Bank documents the relationship
between hedging instruments and hedged items, as well as its risk management objective
and strategy for undertaking the hedge transactions. This process includes linking all
derivatives that are designated as fair value or cash flow hedges to specific assets and
liabilities on the consolidated balance sheets, or to specific firm commitments or forecasted
transactions.
14
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The Bank discontinues hedge accounting prospectively when it determines that the
derivate is no longer effective in offsetting cash flows attributable to the hedged risk; the
derivative expires or is sold, terminated, or exercised; the cash flow hedge is de-designated
because a forecasted transaction is not probable of occurring, or management determines
to remove the designation of the cash flow hedge.
(p)
Income Tax
The Bank uses the asset and liability method of accounting for income taxes. Under the
asset and liability method, deferred tax assets and liabilities are recognized for the
estimated future tax consequences attributable to differences between the financial
statement carrying amounts of existing assets and liabilities and their respective tax bases
and operating loss and tax carryforwards. Deferred tax assets and liabilities are measured
using enacted tax rates expected to be applied to taxable income in the years in which
those temporary differences are expected to be recovered or settled. The effect on deferred
tax assets and liabilities of a change in tax rates is recognized in income in the enactment
date period.
Management evaluates the realizability of the deferred tax assets on a regular basis and
assesses the need for a valuation allowance. A valuation allowance is established when
management believes that it is more likely than not that some portion of its deferred tax
assets will not be realized. Changes in valuation allowance from period to period are
included in the Bank’s tax provision in the period of change.
In addition to valuation allowances, the Bank recognizes, estimates and discloses uncertain
tax positions when, despite having considered that the tax positions taken by the Bank
relating to tax benefits are consistent with current practices and application of regulations,
the Bank considers that such positions are likely to be challenged.
As of January 1, 2009, the Bank adopted the provisions of Subsection FASB 740-10, “Income
Taxes – Overall”, whereby uncertain tax positions are adjusted in light of changing facts and
circumstances, such as the progress of tax audits, case law and emerging legislation.
Uncertain tax positions are reflected as income tax payable as a component of accrued
expenses and other liabilities. These accruals are reduced upon expiration of statute of
limitations. The Bank’s policy is to include interest and penalties related to unrecognized
tax benefits within the provision for income taxes in the consolidated statements of
income. The adoption of these dispositions did not require changes to the 2009 retained
earnings’ opening balance.
(q)
Employee Benefits
The Bank is subject to the labor law of each country in which it operates. The Bank provides
for employee benefits when such benefit relates to services already rendered by the
employee, the employee is currently entitled to receive the benefit, the payment of the
benefit is probable and the amount of the benefit can be estimated.
15
- 72 -
(r)
Foreign Currency
Assets, liabilities and operations of foreign subsidiaries are recorded based on the
functional currency of each entity. For foreign operations, the functional currency is the
local currency, in which case the assets and liabilities are translated, for consolidation
purposes, at period-end rates from the local currency to the reporting currency, the U.S.
dollar. For income and expenses, the Bank uses the yearly average exchange rate for
translation from local currency to the reporting currency. Resulting unrealized gains or
losses are reported as a component of accumulated other comprehensive income (loss).
When the foreign entity’s functional currency is determined to be the U.S. dollar, foreign
currency transactions are recorded at the exchange rate prevailing at the date of the
transaction. Assets and liabilities denominated in foreign currency are re-measured into the
functional currency at the exchange rate prevailing at balance sheet date. Resulting gains
and losses on foreign currency transactions are included within other income in the
consolidated statements of income.
(3)
(s)
Commitments and Contingencies
Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and
penalties and other sources, are recorded when it is probable that a liability has been
incurred and the amount of the assessment and/or remediation can be reasonably
estimated. Legal costs incurred in connection with loss contingencies are expensed as
incurred.
(t)
Reclassifications
Certain amounts in the 2009 consolidated financial statements have been reclassified to
conform to the 2010 consolidated financial statement presentation.
Cash and Due from Banks, and Pledged Interest-Bearing Deposits
At December 31, 2010 and 2009, cash and due from banks aggregating $916,369,838 and
$1,065,330,303, respectively, are pledged to cover legal liquidity reserve requirements.
At December 31, 2010 and 2009, interest-bearing deposits amounting to $16,120,632 and
$8,768,811, respectively, are pledged as legal liquidity or to guarantee borrowings and other credit
facilities.
16
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(4)
Supplemental Information to the Consolidated Statements of Cash Flows
Certain supplemental information relating to the consolidated statements of cash flows is shown
below:
2010
2009
Cash paid for interest during the year
Cash paid for income taxes during the year
$
$
202,554,931
56,453,481
262,344,207
49,592,936
Additional information on non cash investing and
financing activities is as follows:
Changes in unrealized gain (loss) on securities
available for sale, net of tax
Changes in cash flow hedging derivatives
Properties acquired in settlement of loans
(5)
$
$
(4,124,533)
(3,604,329)
18,222,245
10,990,230
(547,258)
13,514,139
Trading Securities
At December 31, 2010 and 2009, trading securities consist of government bonds amounting to
$16,157,405 and $10,476,261, respectively.
Net gains on trading security activities included in earnings for the years ended December 31,
2010 and 2009 amount to $232,706 and $1,159,163, respectively, including unrealized gains
(losses) on trading securities for $160,898 and $208,894, respectively.
At December 31, 2010 and 2009, securities with a fair value of $10,357,391 and $224,000,
respectively, were pledged to secure repurchase agreements.
(6)
Securities Available for Sale
The amortized cost, gross unrealized gains, gross unrealized losses and fair value of securities
available for sale as of December 31, 2010 and 2009 were as follows:
2010
Amortized
Cost
Government bonds
Corporate debentures
Mutual funds
Other securities
$
$
462,829,015
192,817,069
2,000,000
19,697
657,665,781
Gross
Unrealized
Gains
4,132,865
409,884
28,352
0
4,571,101
Gross
Unrealized
Losses
(2,175,586)
(1,948,074)
0
(2,776)
(4,126,436)
Fair Value
464,786,294
191,278,879
2,028,352
16,921
658,110,446
17
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2009
Amortized
Cost
Government bonds
Other securities
$
$
306,110,266
193,522,653
17,906
499,650,825
Gross
Unrealized
Gains
6,145,884
1,020,422
0
7,166,306
Gross
Unrealized
Losses
(1,395,864)
(1,050,078)
(126)
(2,446,068)
Fair Value
310,860,286
193,492,997
17,780
504,371,063
A summary of securities available for sale as of December 31, 2010 by contractual maturity is
presented below. Expected maturities will differ from contractual maturities because issuers
may have the right to call or prepay obligations with or without call or prepayment penalties.
Amortized
Cost
Government bonds:
Due within one year
Due after one year but within five years
Due after five years but within ten years
Due after ten years
$
Corporate debentures:
Due within a year
Due after one year but within five years
Mutual funds:
Without maturity
Other securities:
Without maturity
$
Fair Value
261,665,473
150,886,242
46,721,952
3,555,348
462,829,015
261,712,218
151,580,686
48,374,838
3,118,552
464,786,294
18,961,566
173,855,503
192,817,069
18,991,701
172,287,178
191,278,879
2,000,000
2,028,352
19,697
657,665,781
16,921
658,110,446
At December 31, 2010 and 2009, securities with a carrying value of $24,965,345 and $32,831,919,
respectively, were pledged to secure borrowings and repurchase agreements.
18
- 75 -
For the years ended December 31, 2010 and 2009, proceeds from sale of securities available for
sale amounted to $521,706,422 and $638,593,206, respectively. Gross realized gains amounted to
$11,302,278 and $9,843,014 for 2010 and 2009, respectively. Gross realized losses amounted to
$16,738 and $699,110 for the years ended December 30, 2010 and 2009, respectively.
Gross unrealized losses on securities available for sale and the fair value of the related securities,
aggregated by category and length of time the individual security has been in a continuous
unrealized loss position at December 31, 2010 and 2009, were as follows:
12 Months or less
Fair
Unrealized
Value
Losses
Government bonds
Other securities
Total
$ 235,027,659
143,287,612
16,921
$ 378,332,192
(1,279,300)
(1,948,074)
(2,776)
(3,230,150)
12 Months or less
Fair
Unrealized
Value
Losses
Government bonds
Other securities
Total
80,716,723
131,291,479
17,780
$ 212,025,982
$
(42,695)
(1,050,078)
(126)
(1,092,899)
2010
More than 12 Months
Fair
Unrealized
Value
Losses
12,274,055
0
0
12,274,055
(896,286)
0
0
(896,286)
2009
More than 12 Months
Fair
Unrealized
Value
Losses
58,286,702
0
0
58,286,702
(1,353,169)
0
0
(1,353,169)
Total
Fair
Value
Unrealized
Losses
247,301,714
143,287,612
16,921
390,606,247
Fair
Value
(2,175,586)
(1,948,074)
(2,776)
(4,126,436)
Total
Unrealized
Losses
139,003,425
131,291,479
17,780
270,312,684
(1,395,864)
(1,050,078)
(126)
(2,466,068)
The Bank primarily invests in local government debt securities and corporate debentures. The
majority of corporate debentures are rated investment grade by the major rating agencies. The
Bank evaluates corporate debt securities based on a variety of factors such as the financial health
of the issuer, including whether the issuer is in compliance with the terms and covenants of the
security. Most of these investments are primarily liquid securities that have a large and efficient
secondary market.
At December 31, 2010, management does not have the intent to sell any of the securities classified
as available for sale in the table above, and believes that it is more likely than not that it will not
have to sell any securities before a recovery of cost. The unrealized losses are largely due to
changes in market interest rates over the yields available at the time the underlying securities
were purchased. The fair value is expected to recover as the securities approach their maturity
date. Management does not believe any of the securities are impaired due to reasons of credit
quality. Accordingly, as of December 31, 2010, management believes the impairments detailed in
the table above are temporary and no impairment loss has been realized in the Bank’s
consolidated statements of income.
19
- 76 -
(7)
Securities Held to Maturity
The amortized cost and fair value of securities held to maturity as of December 31, 2010 and 2009
are as follows:
2010
Amortized
Cost
Government bonds
$
2009
Fair
Value
0
0
Amortized
Cost
Fair
Value
7,907,992
7,592,157
As of December 31, 2009, the gross unrealized losses amounted to $315,835, most of the securities
have been on a continuous unrealized loss position for more than 12 months
Held to maturity securities are primarily local government debt. Unrealized losses on these
securities were caused by interest rates changes over the yields available at the time the
underlying securities were purchased.
During December 2010, the Bank reclassified its securities held to maturity, to available for sale to
standardize the corporative criteria related to investment management.
(8)
Loans
The composition of loans as of December 31, 2010 and 2009 is as follows:
2010
Commercial, financial and industrial
Mortgage and real estate
Credit card
Vehicles
Other personal
Lease financing
Overdrafts
$
$
1,594,956,355
1,580,527,333
1,306,469,354
381,745,898
312,141,091
118,535,381
26,216,859
5,320,592,271
2009
1,475,479,390
1,463,180,846
1,244,478,320
380,290,567
325,209,087
114,941,527
28,807,391
5,032,387,128
At December 31, 2010 and 2009, the Bank had loans for $455,047,016 and $285,705,883,
respectively, pledged to secure borrowings and other credit facilities.
20
- 77 -
The following table presents the net investment value on lease financing receivable:
2010
Total minimum payments on leases receivable
Less: Allowance for uncollectible leasings
Minimum net payments on leases receivable
$
Less: Unearned interest and deferred loan fees and
costs
Net investment value on lease financing
$
2009
118,535,381
(733,681)
117,801,700
114,941,527
(1,187,049)
113,754,478
(11,711,262)
(11,274,665)
106,090,438
102,479,813
At December 31, 2010 and 2009, the Bank’s non-accrual and restructured loans, amounted to
$202,260,207 and $205,014,867, respectively. The gross interest income that would have been
recognized in the years ended December 31, 2010 and 2009 if non-accrual loans would have
performed under their original terms amounted to $20,811,870 and $19,557,921, respectively.
The following is a summary of information pertaining to impaired loans:
2010
2009
Impaired loans, without a valuation allowance
$
347,450
439,543
Impaired loans, with a valuation allowance
$
38,590,603
33,672,123
Valuation allowance
$
13,689,566
14,990,837
Average recorded investment
$
41,753,697
41,459,597
Interest income recognized on a cash basis
$
2,370,819
1,500,072
At December 31, 2010 and 2009, other real estate owned assets included in other assets
amounted to $28,265,644 and $24,298,722, respectively.
The Bank has no commitments to lend additional funds to borrowers whose loans are impaired.
21
- 78 -
(9)
Allowance for Loan Losses
The changes in the allowance for loan losses during the years ended December 31, 2010 and 2009
are presented below:
2010
2009
Balance, beginning of year
Charge-offs
Recoveries
Balance, end of year
$
$
105,169,337
87,383,541
(141,576,414)
35,464,915
1,126,901
87,568,280
123,535,949
125,076,426
(162,180,421)
23,079,290
(4,341,907)
105,169,337
(10) Property and Equipment
Property and equipment as of December 31, 2010 and 2009 are detailed as follows:
2010
Land
Buildings and improvements
Equipment, furniture and vehicles
Constructions in progress
Less:
accumulated
amortization
$
depreciation
and
$
(11)
21,897,592
94,756,072
236,995,125
9,047,977
362,696,766
20,825,579
84,362,512
235,238,929
5,755,231
346,182,251
(174,687,593)
188,009,173
(163,531,160)
182,651,091
Goodwill and Intangible Assets
The changes in the carrying amount of goodwill for the years ended December 31, 2010 and 2009
are as follows:
2010
2009
Goodwill:
Balance, beginning of the year
$
85,252,924
85,389,088
872,559
(136,164)
Balance, end of the year
$
86,125,483
85,252,924
22
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2009
The gross carrying amount and accumulated amortization for each of the Bank's identified
intangible assets subject to amortization at December 31, 2010 and 2009 are presented below:
2010
Gross
Carrying
Amount
Core deposit intangible
Purchased credit card
relationships
Merchant relationships
Trade name and
trademarks
$
$
2009
Accumulated
Amortization
Gross
Carrying
Amount
Accumulated
Amortization
12,034,978
12,034,978
12,034,978
3,704,076
7,992,127
739,999
4,851,662
512,765
7,992,127
739,999
3,793,461
436,040
41,570
20,808,674
41,570
17,440,975
41,570
20,808,674
33,256
7,966,833
None of the intangible assets listed in the table above has residual value. The weighted average
lives of core deposit intangible, credit card relationships and merchant relationships are 17, 13 and
15 years, respectively. None of these intangibles is deductible for tax purposes.
The aggregate amortization expense related to intangible assets for the years ended December
31, 2010 and 2009, amounted to $2,426,447 and $3,206,946, respectively. Amortization expense
related to identified intangible assets in each of the five years subsequent to December 31, 2010,
is as follows: 2011: $841,028, 2012: $610,326, 2013: $466,501, 2014: $392,738, 2015: $339,611 and
thereafter: $717,495.
During the year ended December 31, 2010, the Company recorded an impairment loss of
$7,047,695 related to the core deposit intangible.
(12)
Deposits
As of December 31, 2010 and 2009, the Bank held $1,802,281,262 and $1,798,684,015, respectively,
of time deposits with principal balances of $100,000 and over.
Scheduled maturities of time deposits at December 31, 2010 are as follows:
Year ending December 31,
2011
2012
2013
2014
2015
Thereafter
$
$
2,034,751,808
99,506,688
20,920,038
7,976,375
6,420,944
1,628,061
2,171,203,914
23
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(13)
Securities Sold under Agreements to Repurchase
The following table summarizes certain information on securities sold under agreements to
repurchase at or for the years ended December 31, 2010 and 2009:
2010
Payable in
Colones
2009
Payable in
Colones
$
$
Carrying amount at end of year
$
34,971,831
6,762,527
23,054,432
12,259,354
Maximum amount outstanding at any month end
$
60,224,638
12,297,146
36,428,929
19,693,797
Average amount outstanding during the year
$
36,342,362
4,958,479
29,541,158
4,481,822
Weighted average interest rate for the year
8.52%
1.26%
11.11%
1.70%
Weighted average interest rate at end of year
7.15%
2.89%
11.85%
1.55%
January 2011
Maturities through
June 2010
(14) Borrowings
Borrowings at December 31, 2010 and 2009 consist of the following:
2010
Interest
Rates
Payable in U. S. dollars:
Fixed rate
Carrying
Amount
0.51 % to 18.00%
0.60% to 9.00%
2025
2024
Payable in Quetzals (Guatemala):
Floating rate
7.00% to 9.27%
2021
44,033,993
Payable in Lempiras (Honduras):
Floating rate
0.01% to 15.00%
2038
110,997,891
5.50% to 6.53%
2014
343,601
8.75% to 12.25%
2021
Floating rate
Payable in Cordobas (Nicaragua):
Fixed rate
Payable in Colones (Costa Rica):
Floating rate
24
- 81 -
Maturity
Various Through
$
$
45,819,237
703,000,301
12,629,723
916,824,746
2009
Interest
Rates
Maturity
Various Through
0.61% to 18.00%
0.68% to 18.00%
2025
2024
6.50%
2010
58,964,522
Payable in Quetzals (Guatemala):
Floating rate
8.12% to 9.21%
2010
47,909,767
Payable in Lempiras (Honduras):
Floating rate
0.01 % to 15.00%
2038
103,735,731
Payable in Cordobas (Nicaragua):
Fixed rate
5.00% to 7.90%
2014
1,047,297
Payable in Colones (Costa Rica):
Fixed rate
Floating rate
5.00% to 18.75%
2010
Payable in U. S. dollars:
Fixed rate
Floating rate
Payable in Mexican Pesos (Mexico):
Floating rate
Carrying
Amount
$
$
86,964,306
653,366,663
27,183,716
979,172,002
As of December 31, 2010 and 2009, the amount outstanding under the CIC Receivables Master
Trust, a consolidated special purpose vehicle, aggregated $349,270,442 and $300,000,000,
respectively. The certificates issued under such vehicle are secured by future cash flows from
merchant vouchers originating in Guatemala, Honduras, El Salvador, Nicaragua and Costa Rica.
The merchant vouchers are those to be generated by holders of credit cards issued by third-party
international financial institutions, under Visa and MasterCard Credit Card Programs which are
processed by the Bank. The certificates pay interest quarterly each January, April, July and October
at a rate of three-month U. S. dollar LIBOR plus a margin (1.6900% and 1.6897%, including surety
premiums, at December 31, 2010 and 2009, respectively). Principal amortization amounts will be
paid to certificate holders beginning in July 2010. The certificates had an original duration of 4.68
years. At December 31, 2010, the certificates currently have a weighted - average duration of
3.4577 years.
At December 31, 2010 and 2009, secured borrowings amounted to $804,317,459 and $644,419,159,
respectively.
At December 31, 2010, the Bank had approximately $764,072,036 available in unused lines of
credit that expire through 2017.
25
- 82 -
Scheduled maturities of borrowings at December 31, 2010, are as follows:
2011
2012
2013
2014
2015
Thereafter
(15)
$
256,439,067
152,444,809
98,497,394
86,150,318
84,475,526
238,817,632
$
916,824,746
Other Borrowed Funds
Carrying amount of other borrowed funds at December 31, 2010 and 2009 consist of debt
instruments registered at and negotiable through the corresponding local stock exchanges in
Guatemala, El Salvador, Costa Rica and Honduras, at fixed and variable interest rates, and are
detailed as follows:
Interest Rates
Payable in:
2010
2009
U.S. dollars
Quetzals
Colones
Lempiras
2.91% to 5.02%
8.04%
0%
14.38%
4.40% to 6.55%
8.31%
7.50% to 10.50%
13.50%
2010
$
$
79,193,124
65,923,633
0
13,230,943
158,347,700
Scheduled maturities of other borrowed funds at December 31, 2010 are as follows:
2011
2012
2013
2014
$
$
26
- 83 -
85,116,757
33,230,943
25,000,000
15,000,000
158,347,700
2009
101,637,288
61,101,720
57,440,123
13,230,973
233,410,074
At December 31, 2010 and 2009, the Bank had loans receivable for $117,791,647 and $117,817,882,
respectively, pledged to secure these other borrowed funds.
(16) Other Operating Expenses
The following table sets forth the components of other operating expenses for the years ended
December 31, 2010 and 2009:
2010
2009
Advertising
Communications
Office supplies
Maintenance
Credit card franchise and authorization fees
Taxes other than income tax
Intangible asset impairment
Processing fees
Deposit insurance
Security
Armored services
Travel expenses
Other
21,360,265
20,736,857
7,054,212
19,326,008
20,267,778
11,164,116
7,047,695
4,942,263
4,385,962
7,585,582
9,370,318
4,377,810
82,528,470
220,147,336
$
$
(17)
Income Taxes
Income tax expense consists of:
2010
$
Current
Deferred
$
59,160,251
873,049
60,033,300
19,875,178
20,047,611
7,551,869
20,789,655
16,181,470
9,486,796
0
5,035,812
4,254,034
7,511,082
8,575,161
4,001,326
66,251,005
189,560,999
2009
47,836,658
12,385,733
60,222,391
27
- 84 -
Income tax expense was $60,033,300 and $60,222,391 for the years ended December 31, 2010 and
2009, respectively, and differed from the amounts computed by applying the current statutory
income tax rates to pretax consolidated earnings as a result of the following:
2010
Computed “expected” tax expenses
Increase (decrease) in income taxes resulting
from:
Exempt and foreign source income
Tax incentives
Changes in uncertain tax positions
Change in allowance
Change in enacted tax rate
Nondeductible expenses
Foreign income taxes rate differential
Income tax expense
28
- 85 -
2009
$
69,367,508
62,641,872
$
(11,217,006)
(519,633)
4,183,467
3,860,871
0
10,782,167
(16,424,074)
60,033,300
(11,895,618)
(188,254)
4,025,737
9,967,817
565,251
9,047,657
(13,942,071)
60,222,391
Temporary differences between financial statement carrying amounts and tax bases of assets
and liabilities that give rise to the deferred tax assets and liabilities as of December 31, 2010 and
2009 are as follows:
Deferred tax assets:
Net operating tax loss carryforwards
Deferred loan origination fees and costs
Accrued expenses
Swaps mark to market
Foreclosed assets valuation
Net premises and equipment depreciation difference
Gross deferred tax assets
Less-valuation allowance
Net deferred tax assets
$
Deferred tax liabilities:
Net premises and equipment depreciation
difference
Deferred expenses
Deferred commissions
Accrued expenses
Fair value acquisition adjustments
Investments
in
foreign
subsidiaries,
for
undistributed earnings
Unrealized gains on securities available for sale
Total deferred tax liabilities
Net deferred tax liabilities
$
2010
2009
12,547,155
7,080,823
373,549
5,328,125
1,024,507
200,253
(946,098)
316,550
25,924,864
(13,955,491)
11,969,373
4,891,400
10,578,445
738,102
4,332,714
(59,534)
(451,076)
(677,595)
342,033
19,694,489
(10,094,620)
9,599,869
(1,939,484)
(2,459,061)
(266,338)
(581,913)
(1,441,433)
(2,339,697)
(4,631,060)
(1,863,916)
(1,089,830)
(993,010)
(1,335,981)
(2,375,225)
(4,500,989)
(8,001,203)
(167,164)
(21,697,282)
(9,727,909)
0
(5,813,942)
(240,659)
(18,343,623)
(8,743,754)
29
- 86 -
The valuation allowance for deferred tax assets as of December 31, 2010 and 2009 was $13,955,491
and $10,094,620, respectively. The valuation allowance at December 31, 2010 and 2009 was
primarily related to net operating loss carryforwards and the allowance for loan losses in a
subsidiary operating in Mexico that, in the judgment of management, are not more likely than
not to be realized.
The net change in the total valuation allowance for the years ended December 31, 2010 and 2009
was an increase of $3,860,871 and of $9,967,817, respectively. In assessing the realizability of
deferred tax assets, management considers whether it is more likely than not that some portion
or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax
assets is dependent upon the generation of future taxable income during the periods in which
those temporary differences become deductible. Management considers the scheduled reversal
of deferred tax liabilities, projected future taxable income, and strategies in making this
assessment. Based upon the level of historical taxable income and projections for future taxable
income over the periods in which the deferred tax assets are deductible, management believes it
is more likely than not that the Bank will realize the benefits of these deductible differences, net
of the existing valuation allowances at December 31, 2010.
At December 31, 2010, the subsidiaries of the Bank have incurred in net operating tax loss
carryforwards of $12,547,155, which are available to offset future taxable income of the applicable
subsidiaries through 2019.
The Bank has not recognized a deferred income tax liability of approximately $25,062,000 for
undistributed earnings from foreign subsidiary operations that resulted in 2010 and prior years
because the Bank believes that these profits will be reinvested for an indefinite period. At
December 31, 2010, undistributed earnings of those subsidiaries approximately amount to
$201,085,000.
The Bank is subject to income taxation in various jurisdictions. At December 31, 2010 and 2009,
the Bank maintained unrecognized tax benefits, excluding related interest expense and penalties,
amounting to $7,366,466 and $3,727,952, respectively. Management believes it is reasonably
possible that unrecognized tax benefits will increase approximately by $4,200,000 within the
next 12 months. Interest expenses and penalties related to income tax liabilities recognized in
income tax expense were $544,953 and $297,785 in 2010 and 2009, respectively. Total accrued
interest and penalty expenses amount to $842,743 and $297,785, at December 31, 2010 and 2009,
respectively. This amount is also included in other liabilities, at December 31, 2010 and 2009, in
addition to the Bank’s liability for unrecognized tax benefits.
The following are the major tax jurisdictions in which the Bank and its affiliates operate and the
earliest tax year subject to examination: United States: 2007, Mexico: 2005, Guatemala: 2006,
El Salvador: 2007, Honduras: 2004, Nicaragua: 2006, Costa Rica: 2007 and Panama: 2007.
30
- 87 -
During 2010 the Panama income tax rates applicable to legal entities for future years were
modified, as follows: 2011, 30%; 2012 and 2013, 27.5%; and beyond, 25%.
(18) Accumulated Other Comprehensive Loss, Net
The following table presents the components of and changes in accumulated other
comprehensive loss for the years ended December 31, 2010 and 2009:
Foreign Currency
Translation
Attributable to controlling
stockholder’s equity:
Balances as of December 31, 2008
Current year changes
Attributable to noncontrolling
interest:
Total accumulated other
comprehensive loss, net
$
(87,032,839)
(16,081,101)
(103,113,940)
28,850,898
(74,263,042)
(71,282)
$
Unrealized Net
Gain (Loss) on
Securities
(6,544,555)
10,990,536
4,445,981
(4,124,870)
321,111
40
Accumulated
Other
Comprehensive
Loss
Cash Flow
Hedging
Derivatives
0
(547,258)
(547,258)
(3,604,329)
(4,151,587)
0
(93,577,394)
(5,637,823)
(99,215,217)
21,121,699
(78,093,518)
(71,242)
(14,969)
(86,251)
(22,840)
(109,091)
(306)
(266)
337
71
0
0
0
0
(15,275)
(86,517)
(22,503)
(109,020)
(74,372,133)
321,182
(4,151,587)
(78,202,538)
31
- 88 -
The following table presents details of other comprehensive loss for the years ended December
31, 2010 and 2009:
Pre-Tax
Amount
Foreign currency translation adjustment:
Controlling interest
Net current year change
$
Unrealized gain on securities:
Unrealized net holding gains on securities:
Less: reclassification adjustment to earnings for
realized net gains, controlling interest
Cash flow hedging derivatives:
Net current year change, controlling interest
Other comprehensive loss, for the year
$
28,850,898
(22,840)
28,828,058
$
$
28,850,898
(22,840)
28,828,058
7,174,726
337
7,175,063
(411,306)
0
(411,306)
6,763,420
337
6,763,757
(11,285,540)
(4,110,477)
397,250
(14,056)
(10,888,290)
(4,124,533)
(3,604,329)
21,113,252
0
(14,056)
(3,604,329)
21,099,196
December 31, 2009
Income tax
(Expense)
Benefit
After-tax
Amount
(16,081,101)
(14,969)
(16,096,070)
0
0
0
(16,081,101)
(14,969)
(16,096,070)
21,036,223
(306)
21,035,917
(1,344,180)
0
(1,344,180)
19,692,043
(306)
19,691,737
(9,143,904)
11,892,013
442,397
(901,783)
(8,701,507)
10,990,230
(547,258)
(4,751,315)
0
(901,783)
(547,258)
(5,653,098)
(19) Off-Balance Sheet Financial Instruments and Other Commitments
32
- 89 -
After-tax
Amount
0
0
0
Pre-Tax
Amount
Foreign currency translation adjustment:
December 31, 2010
Income tax
(Expense)
Benefit
Net current year change BAC INTERNATIONAL
21,036,223
(306)
21,035,917
(1,344,180)
0
(1,344,180)
19,692,043
(306)
19,691,737
(9,143,904)
442,397
(8,701,507)
10,990,230
11,892,013
(901,783)
BANK, INC. AND
SUBSIDIARIES
(547,258)
0
Notes to Consolidated Financial
Statements (901,783)
$
(4,751,315)
(547,258)
(5,653,098)
(19)TheOff-Balance
Sheet to
Financial
Instruments
and with
Otheroff-balance
Commitments
Bank is a party
financial
instruments
sheet risk in the normal course of
32
business
to
meet
the
financing
needs
of
its
customers.
These
financial
instruments
include,
The Bank is a party to financial instruments with off-balance sheet
risk in the
normal course
of
principally,
commitments
to
extend
credit,
financial
guarantees
and
letters
of
credit,
the
balances
business to meet the financing needs of its customers. These financial instruments include,
of
which arecommitments
not reflected to
in the
accompanying
consolidated
balance
sheets.of credit, the balances
principally,
extend
credit, financial
guarantees
and letters
of which are not reflected in the accompanying consolidated balance sheets.
Letters of credit are conditional commitments issued by the Bank to guarantee performance of a
customer
a third
Thosecommitments
letters of credit
are primarily
usedtotoguarantee
support trade
transactions
Letters of to
credit
are party.
conditional
issued
by the Bank
performance
of a
and
borrowing
arrangements.
Generally,
all
letters
of
credit
issued
have
expiration
dates
within
customer to a third party. Those letters of credit are primarily used to support trade transactions
one
year. The arrangements.
credit risk involved
in issuing
letters
of credit
is essentially
the same
that
and borrowing
Generally,
all letters
of credit
issued
have expiration
datesas
within
involved
in
extending
loan
facilities
to
customers.
one year. The credit risk involved in issuing letters of credit is essentially the same as that
involved in extending loan facilities to customers.
Commitments to extend credit are agreements to lend to a customer as long as there is no
violation
of any
established
in the contract.
have is
fixed
Commitments
to condition
extend credit
are agreements
to lend toCommitments
a customer asgenerally
long as there
no
expiration
dates
or
other
termination
clauses
and
may
require
payment
of
a
fee.
The
violation of any condition established in the contract. Commitments generally have fixed
commitments
mayor
expire
without
being drawn
upon.
the total
commitment
amounts
expiration dates
other
termination
clauses
andTherefore,
may require
payment
of a fee.
The
do
not
necessarily
represent
future
cash
requirements.
The
amount
of
collateral
obtained,
if it is
commitments may expire without being drawn upon. Therefore, the total commitment amounts
deemed
necessary represent
by the Bank,
is based
management’s
evaluation
of the
customer.
do not necessarily
future
cash on
requirements.
Thecredit
amount
of collateral
obtained,
if itAt
is
December
31,
2010
and
2009,
the
Bank
had
not
entered
into
non-cancelable
commitments
to
deemed necessary by the Bank, is based on management’s credit evaluation of the customer. At
extend credit.
December
31, 2010 and 2009, the Bank had not entered into non-cancelable commitments to
extend credit.
As of December 31, 2010 the Bank had outstanding revolving lines of credit available to its credit
card
theBank
various
of operation
ranged
from
approximately
$211
As ofcustomers
Decemberin31,each
2010ofthe
hadcountries
outstanding
revolvingthat
lines
of credit
available
to its credit
million
and
$1,576
million
($117
million
and
$1,374
million
in
2009).
The
unused
portion
of
the
total
card customers in each of the various countries of operation that ranged from approximately $211
amountand
available
each country,
aggregated
approximately
fromThe
$152unused
millionportion
and $1,199
million
million
$1,576 in
million
($117 million
and $1,374
million in 2009).
of the
total
($86
million
and
$1,022
million
in
2009).
While
these
amounts
represented
the
available
lines
of
amount available in each country, aggregated approximately from $152 million and $1,199 million
credit
to
customers
per
country,
the
Bank
has
not
experienced,
and
does
not
anticipate,
that
all
of
($86 million and $1,022 million in 2009). While these amounts represented the available lines of
its
customers
will exercise
theirthe
entire
lines at anyand
given
in time. that
The all
Bank
credit
to customers
per country,
Bank available
has not experienced,
doespoint
not anticipate,
of
generally
has
the
right
to
increase,
reduce,
cancel,
alter
or
amend
the
terms
of
these
available
its customers will exercise their entire available lines at any given point in time. The Bank
lines
of credit
any
time.
generally
has at
the
right
to increase, reduce, cancel, alter or amend the terms of these available
lines of credit at any time.
Financial guarantees are used in various transactions to enhance the credit standing of the Bank’s
customers.
They represent
irrevocable
that
Bank the
willcredit
make standing
paymentof
inthe
theBank’s
event
Financial guarantees
are used
in variousassurances
transactions
to the
enhance
that
the
customer
fails
to
fulfill
its
obligations
to
third
parties.
customers. They represent irrevocable assurances that the Bank will make payment in the event
that the customer fails to fulfill its obligations to third parties.
33
33
- 90 -
The Bank uses the same credit policies in making commitments and conditional obligations as it
does for on-balance sheet instruments. At December 31, 2010 and 2009 outstanding letters of
credit and financial guarantees are as follows:
2010
Standby letters of credit
Commercial letters of credit
Financial guarantees
$
$
46,696,093
41,896,927
186,184,042
274,777,062
2009
33,783,155
37,298,535
200,293,947
271,375,637
The nature, terms and maximum potential amount of future payments the Bank could be
required to make under the standby letters of credit and guarantees as of December 31, 2010 and
2009, are detailed as follows:
2010
Up to 1 year
Over 1 year
$
$
198,385,310
34,494,825
232,880,135
2009
201,176,890
32,900,212
234,077,102
Generally, the Bank has resources to recover from clients the amounts paid under these
guarantees; additionally, the Bank can hold cash or other collateral to cover for these guarantees.
The assets held as collateral, that the Bank can obtain and liquidate to recover totally or partially
the amounts paid under guarantees as of December 31, 2010 and 2009, amounted to $81,049,647
y $37,197,414, respectively.
The fair value of the letters of credit and guarantees as of December 31, 2010 and 2009 are of
$1,883,399 y $1,916,506, respectively.
Other Commitments
During 2008, the Bank entered into a sale and leaseback of $23,400,000 of an aircraft, which has
been classified as an operating lease. Rental expense of this operating lease was $1,044,828 and
$1,129,043 in 2010 and 2009, respectively.
The Bank also has several non cancelable operating leases, primarily for branches and office
space, that expire over the next ten years. These leases generally contain renewal options for
periods ranging from three to five years and require the Bank to pay all executory costs such as
maintenance and insurance. Rental payments include minimum rentals plus contingent rentals.
34
- 91 -
Minimum rental payments under operating leases are recognized on a straight-line basis over the
term of the lease including any periods of free rent. Rental expense for operating leases (except
those with lease terms of a month or less that were not renewed) during 2010 and 2009
amounted to $22,800,642 and $20,025,615, respectively.
Minimum lease payments under operating leases due in each of the five years subsequent to
December 31, 2010, are as follows:
2011
$
13,215,360
2012
10,491,187
2013
2014
9,768,654
8,585,642
2015
7,577,948
Thereafter
6,956,134
Total
56,594,925
(20) Derivative Financial Instruments
In the normal course of business, the Bank uses interest rate derivatives primarily for economic
hedging purposes in its balance sheet management activities. The fair value of derivative
positions outstanding is included in accrued interest receivable and other assets and accrued
interest payable and other liabilities in the accompanying consolidated balance sheets and the
net change in each of these financial statement line items in the accompanying consolidated
statements of income.
The Bank utilizes interest rate swaps, caps and floors to mitigate exposure to interest rate. The
Bank’s objectives for utilizing these derivative instruments are described below:
During 2009, the Bank entered into an interest rate swap contract on a variable-rate borrowing
with a total notional amount of $130,000,000. The interest rate swap contract was designated as
hedging instrument in a cash flow hedge with the objective of protecting the overall cash flows
from the Bank’s interest payments on a $130,000,000 variable-rate borrowing outstanding
throughout the 32-quarters period beginning in June 2007 and ending in March 2017 from the risk
of variability of those cash flows. Under the swap, the Bank pays a fixed interest rate of 2.87%
and receives a variable interest rate equal to 3-month LIBOR with 32 settlements, starting on June
30, 2009. No cash flow hedges were discontinued during 2010 or 2009.
The Bank has entered into certain interest rate swap, cap and floor contracts that have not been
designated as hedging instruments, but economic hedges on fixed-rate residential loans from
customers. The transactions allow the Bank to effectively convert a fixed rate loan to a variable
rate and manage its consolidated balance sheets.
The Bank has entered into an interest rate swap contract on a variable-rate borrowing to protect
cash flows associated with interest rate changes on such debt.
35
- 92 -
The foreign exchange forward contracts are mostly negotiated over-the-counter (“OTC”). These
contracts are carried out between two counterparties that negotiate specific terms in the
agreement, including face amount, exercise price, and maturity date.
The notional amounts and estimated fair values of foreign exchange and interest rate derivative
contracts outstanding at December 31, 2010 and 2009 are presented in the following table. The
fair values of derivative contracts are estimated utilizing internal valuation models with
observable market data inputs.
2010
Notional
Amount
Freestanding:
Interest rate swaps
Interest rate caps
Foreign exchange
forward contracts
$
Cash flow hedges:
Interest rate swaps
$
2009
Fair Value
Other
Other
Assets
Liabilities
Notional
Amount
Fair Value
Other
Other
Assets
Liabilities
80,000,000
0
0
0
3,490,484
0
80,000,000
3,375,000
198,446
14,324
0
0
54,000,000
134,000,000
117,236
117,236
0
3,490,484
0
83,375,000
0
212,770
0
0
121,542,581
255,542,581
0
117,236
4,151,587
7,642,071
130,000,000
213,375,000
0
212,770
547,258
547,258
For cash flow hedges, the effective portion of the gain or loss due to changes in the fair value of
the derivative hedging instrument is included in other comprehensive income (loss), while the
ineffective portion (indicated by the excess of the cumulative change in the fair value of the
derivative over that which is necessary to offset the cumulative change in expected future cash
flows on the hedge transaction) is included in other income. For non-hedging derivative
instruments, gains and losses due to changes in fair value are included in other income (expense).
No ineffectiveness related to interest rate derivatives designated as cash flows hedges was
recognized in the consolidated statements of income during the reported periods. The
accumulated net loss related to effective cash flow hedges included in accumulated other
comprehensive income totaled $4.2 million at December 31, 2010 and $0.5 at December 31, 2009.
The Bank does not expect any net after-tax loss related to effective cash flow hedges. This
amount represents management’s best estimate given current expectations about market
interest rates. Because actual market interest rates may differ from management’s expectations,
there can be no assurance as to the ultimate amount that will be reclassified into earnings during
2011.
Unrealized gains (losses) from non-hedging derivatives reported in other income amounted to
$(3,496,232) and $198,446 for the years ended December 31, 2010 and 2009, respectively. Interest
expense related to non-hedging derivatives for the years ended December 31, 2010 and 2009
amount to $258,113 y $0, respectively.
36
- 93 -
Derivative contracts involve the risk of dealing with institutional derivative counterparties and
their ability to meet contractual terms. Institutional counterparties must have an investment
grade credit rating and be approved by the Bank’s Asset/Liability Committee. The Bank’s credit
exposure on interest rate swaps is limited to the net favorable value and interest payments of all
swaps by each counterparty. There are no credit-risk-related contingent features associated with
any of the Bank’s derivative contracts.
The Bank did not pledge or receive collateral related to derivative contracts at December 31, 2010.
21)
Concentration of Credit Risk
Concentrations of credit risk arise when changes in economic, industry or geographic factors
similarly affect groups of counterparties whose aggregate credit exposure is material in relation
to the Bank’s total credit exposure. Through the operation of subsidiary companies in Central
American countries, however, the Bank has widened its lending activities, diversifying into other
consumer and commercial products. The loan book is well diversified by economic sector and by
individual exposures. By country, the largest loan exposures are held in Costa Rica, Honduras and
El Salvador.
(22) Disclosures about Fair Value of Financial Instruments
The Bank established a process to determine fair value. Fair value is based upon quoted market
prices, where available. If listed prices or quotations are not available, fair value is based upon
internally-developed models that primarily use, as inputs, market-based or independently
sourced market parameters, including but not limited to yield curves, interest rates, debt prices,
foreign exchange rates and credit curves. However, in situations where there is little or no activity
in the market for the asset or liability at the measurement date, the fair value measurement
reflects the Bank's own judgments about assumptions that market participants would use in
setting the price of the asset or liability. The judgments are developed by the Bank based on the
best information available in the circumstances, including expected cash flows, discount rates
appropriately adjusted for risk and the availability of observable and unobservable inputs.
The methods described above may produce a fair value calculation that may not be indicative of
net realizable value or reflective of future fair values. Furthermore, while the Bank believes its
valuation methods are appropriate and consistent with other market participants, the use of
different methodologies or assumptions to determine the fair value of certain financial
instruments could result in a different estimate of fair value at the reporting date.
Financial Instruments Measured at Fair Value
Recurring Fair Value Measurements
Following is a description of the valuation methodologies used for instruments measured at fair
value, including the general classification of such instruments pursuant to the valuation
hierarchy.
37
- 94 -
Securities
Where quoted prices are available in an active market, securities are classified in Level 1 of the
valuation hierarchy. Level 1 securities include highly liquid government and agency bonds, and
exchange-traded equities. If quoted market prices are not available for the specific security, then
fair values are estimated by using quoted prices of securities with similar characteristics or
discounted cash flows (Level 2). In certain cases where there is limited activity or less
transparency around inputs to the valuation, securities are classified within Level 3 of the
valuation hierarchy. For instance, in the valuation of certain debt obligations the determination
of fair value may require benchmarking to similar instruments or analyzing default and recovery
rates.
Loans
Where pricing information is not available for the specific loan, the valuation is generally based
upon using discounted cash flow models with market-based credit spreads of comparable debt
instruments. In addition, general market conditions, including prevailing market spreads for
credit and liquidity risk, assumptions about prepayment speeds, default rates and loss severity
rates are also considered in the valuation process.
The Bank elected to report mortgage loans at fair value and in this way apply the same basis of
accounting (measurement at fair value through earnings) as the derivatives economically
hedging these loans. Interest income over these loans are recorded as interest on loans and net
gains and losses from changes in fair value are reported as other income in the consolidated
statements of income. At December 31, 2010 and 2009, loans amounting to $436,991 and $0,
respectively, were 90 days or more past due and were not accruing interest. During the years
ended December 31, 2010 and 2009, the Bank recognized $2,840,568 and $3,223,295, respectively,
related to interest income on such loans and $1,034,319 and $(1,646,929), respectively, for the net
gains (loss) resulting from changes in their fair value. Gains and losses were primarily
attributable to changes in interest rates.
Derivatives
The majority of derivatives entered into by the Bank are executed over the counter and so are
valued using internal valuation techniques as no quoted market prices exist for such instruments.
The valuation technique and inputs depend on the type of derivative and the nature of the
underlying. The key inputs to the models depend upon the type of derivative and the nature of
the underlying instrument and include period to maturity and market-based parameters such as
interest rate and yield curves, the spot price of the underlying, volatility, the credit quality of the
counterparty and correlation. Further, many of the models do not contain a high level of
subjectivity as the methodologies used in the models do not require significant judgment, and
inputs to the model are readily observable from actively quoted markets, as is the case for “plain
vanilla” interest rate swaps. Such instruments are generally classified within Level 2 of the
valuation hierarchy.
38
- 95 -
Assets and liabilities measured at fair value on a recurring basis, including financial instruments
for which the Bank has elected the fair value option, are summarized below:
At December 31, 2010
Assets
Trading securities:
Government bonds
Quoted prices in active
markets for identical
assets (Level 1)
Significant
observable inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
Balance as of
December 31,
2010
$
Securities available for sale:
Government bonds
Mutual funds
Other securities
Total securities available for sale
Loans:
Mortgage
Mortgage – non - performing
Total loans
15,893,923
263,482
0
16,157,405
357,903,699
183,051,042
2,028,352
16,921
543,000,014
95,390,087
8,227,837
0
0
103,617,924
11,492,508
0
0
0
11,492,508
464,786,294
191,278,879
2,028,352
16,921
658,110,446
0
0
0
0
0
0
35,027,988
436,991
35,464,979
35,027,988
436,991
35,464,979
117,236
709,850,066
Derivatives:
Foreign exchange forward contracts
Total assets
$
0
558,893,937
117,236
103,998,642
0
46,957,487
Liabilities
Derivatives:
Interest rate swaps
Total liabilities
$
0
0
(7,642,071)
(7,642,071)
0
0
At December 31, 2009
Assets
Trading securities:
Government bonds
Quoted prices in active
markets for identical
assets (Level 1)
Significant
unobservable
inputs
(Level 3)
Balance as of
December 31,
2009
$
10,303,444
172,817
0
10,476,261
220,674,244
186,634,647
17,780
407,326,671
80,791,387
6,858,350
0
87,649,737
9,394,655
0
0
9,394,655
310,860,286
193,492,997
17,780
504,371,063
0
0
0
0
0
0
40,384,601
0
40,384,601
40,384,601
0
40,384,601
$
0
417,630,115
212,770
88,035,324
0
49,779,256
212,770
555,444,695
$
0
0
547,258
547,258
0
0
547,258
547,258
Securities available for sale:
Government bonds
Other securities
Total securities available for sale
Loans:
Mortgage
Mortgage – non - performing
Total loans
Derivatives:
Foreign exchange forward contracts
Total assets
Liabilities
Derivatives:
Interest rate swaps
Total liabilities
Significant
observable inputs
(Level 2)
(7,642,071)
(7,642,071)
39
- 96 -
The accounting policies of the Bank include the recognition of transfers between fair value hierarchy
levels on the date of the event or change in the circumstances that caused the transfer. During 2010,
there were no transfers between levels 1, 2, and 3. In 2009, certain government bonds for $9,425,979
were reclassified because currently no observable market inputs are available.
The table below includes a roll forward of the balance sheet amounts for the years ended
December 31, 2010 and 2009 (including changes in fair value), for financial instruments classified
by the Bank within Level 3 of the valuation hierarchy. When a determination is made to classify a
financial instrument within Level 3, the determination is based upon the significance of the
unobservable parameters to the overall fair value measurement. However, Level 3 financial
instruments typically include, in addition to the unobservable or Level 3 components, observable
components (that is, components that are actively quoted and can be validated to external
sources); accordingly, the gains and losses in the table below include changes in fair value due in
part to observable factors that are part of the valuation methodology.
Fair value
as of
January 1,
2010
2010
Assets
Securities available
for sale:
Government bonds
Loans
Total
Total
Transfers in
and/or out of
Level 3
Fair value
as of
December
31, 2010
Unrealized
gains as of
December
31, 2010
9,394,655
40,384,601
0
1,034,319
0
0
2,056,099
(5,953,943)
11,492,508
35,464,979
41,754
2,477,642
$
49,779,256
1,034,319
0
(3,897,844)
46,957,487
2,519,396
Fair value
as of
December
31, 2009
Unrealized
losses as of
December
31, 2009
Fair value
as of
January 1,
2009
Total realized
losses
included in
earnings
Transfers in
and/or out of
Level 3
Origination
and settlements,
net
$
0
43,020,107
0
(1,646,929)
9,425,979
0
0
(988,577)
9,394,655
40,384,601
(31,324)
(54,735)
$
43,020,107
(1,646,929)
9,425,979
(988,577)
49,779,256
(86,059)
40
- 97 -
Origination
and settlements,
net
$
2009
Assets
Securities available
for sale:
Government bonds
Loans
Total realized
gains
included in
earnings
Non-Recurring Fair Value Measurements
The Bank has non-financial assets measured at fair value. Certain non-financial assets are not
measured at fair value on a recurring basis but are subject to fair value adjustments only in
certain circumstances. These assets include assets held for sale (upon initial recognition or
subsequent impairment), certain loans that are written down to the fair value of the underlying
collateral when deemed impaired, and intangible assets and other non-financial long-lived assets
when determined to be impaired.
The following table presents fair value measurements of assets that are measured at fair value on a
non-recurring basis at December 31, 2010 and 2009.
Level 3
Loans
Foreclosed assets
Other assets available for sale
$
$
2010
2009
38,590,603
11,251,092
6,801,415
56,643,110
16,338,871
0
0
16,338,871
The increase (decrease) in fair value of assets at December 31, 2010 and 2009, which are
recognized at fair value on a non-recurring basis, for which the fair value adjustment has been
included in the consolidated statements of income, is as follows:
2010
Loans
Foreclosed assets
Other assets available for sale
$
$
1,301,271
(3,997,057)
(1,000,000)
(3,695,786)
2009
(5,850,629)
0
0
(5,850,629)
Fair Value of Financial Instruments, Additional Disclosures
The fair values of such instruments have been derived, in part, by management’s assumptions,
the estimated amount and timing of future cash flows and estimated discount rates. Different
assumptions could significantly affect these estimated fair values. Accordingly, the net realizable
values could be materially different from the estimates presented below. In addition, the
estimates are only indicative of the value of individual financial instruments and should not be
considered an indication of the fair value of the Bank. The provisions of FASB ASC 825 do not
require the disclosure of the fair value of lease financing arrangements and nonfinancial
instruments.
41
- 98 -
The following disclosures represent financial instruments in which the ending balance at
December 31, 2010 and 2009 is not carried at fair value in its entirety on the Bank’s consolidated
balance sheets.
The following is a description of the methods and assumptions used to estimate fair value of the
most significant financial instruments held by the Bank:
(a)
Financial instruments with carrying value approximating fair value: Including cash and cash
equivalents, interest bearing deposits, customers’ liability under acceptances outstanding
and acceptances outstanding, are valued at their carrying amounts reported in the
consolidated balance sheets, which are reasonable estimates of fair value due to the
relatively short period to maturity of the instruments.
(b)
Securities held to maturity: Are predominately valued at quoted market prices. If quoted
market prices are not available, fair values are based on quoted market prices of similar
instruments. In instances when significant valuation assumptions are not readily
observable in the market, instruments are valued based on the best available data in order
to approximate fair value. This data may be internally-developed and considers risk
premiums that a market participant would require.
(c)
Loans: The majority of the Bank’s loans are not carried at fair value on a recurring basis nor
are they actively traded. Fair values were estimated for certain groups of similar loans
based upon type of loan and maturity. The fair value of these loans was determined by
discounting estimated cash flows using interest rates approximating the market
participants’ current origination rates for similar loans and adjusted to reflect the inherent
credit risk; this fair value does not represent a current indicator of an exit price. Fair values
for consumer installment loans (including automobile and consumer real estate loans), for
which market rates for comparable loans are readily available, are based upon discounted
cash flows adjusted for prepayments. The discount rate used for consumer installment
loans are based on the current market rates adjusted for credit, and other risks that are
applicable to a particular asset class. Fair value for credit card receivables is based upon
discounted expected cash flows. The discount rates used for credit card receivables
incorporate only the effects of interest rate changes, because the expected cash flows
already reflect an adjustment for credit risk. For loans with doubt as to collectability,
expected cash flows are discounted using an appropriate rate considering the time of
collection and the premium for the uncertainty of the flows. The value of collateral is also
considered. Loan prepayments are used to adjust future cash flows based on historical
patterns. The assumptions used are expected to approximate those that market
participants would use in valuing loans.
42
- 99 -
(d)
Deposit liabilities: With no defined maturity such as demand deposits, NOW/money market
accounts, and savings accounts have a fair value equivalent to the amount payable on
demand at the reporting date, i.e., their carrying amounts. Fair values for time deposits are
estimated using a discounted cash flow calculation that applies current interest rates to a
schedule of aggregated expected maturities. The assumptions used in the discounted cash
flow analysis are expected to approximate those that market participants would use in
valuing such deposits.
(e)
Securities sold under agreements to repurchase: No quoted prices exist for such instruments
and so fair value is determined using a discounted cash-flow technique. Cash flows are
estimated based on the terms of the contract, taking into account any embedded derivative
or other features. Expected cash flows are discounted using market rates appropriate to the
maturity of the instrument as well as the nature and amount of collateral taken or received.
(f)
Borrowings: The fair value is estimated based on current market interest rates for debt with
similar maturities and is adjusted for the Bank’s credit quality and collateral.
(g)
Other borrowed funds: The fair value is estimated based on the quoted market prices for the
same or similar issues or on the current rates offered to the Bank for debt with similar
terms, adjusted for credit quality.
(h)
Off balance sheet financial instruments: The fair value of “standby” letters of credit and
written financial guarantees were estimated using the fees currently charged to enter into
similar agreements, taking into account the remaining terms of the agreements and current
creditworthiness of the counterparties. Refer to note 19 for fair value information.
43
- 100 -
Information about the fair value of on-balance sheet financial instruments at December 31, 2010
and 2009 is presented below:
2010
Carrying
Amount
Financial Assets
Cash and cash equivalents
Loans, excluding financial leases
Customers' liability under
acceptances outstanding
Financial Liabilities
Deposits
Securities sold under agreements
to repurchase
Borrowings
Other borrowed funds
Acceptances outstanding
2009
Estimated
Fair Value
Carrying
Amount
Estimated
Fair Value
$ 1,921,288,472
28,857,982
0
5,092,141,825
1,921,288,472
28,857,982
0
5,125,678,706
1,657,635,273
66,247,692
7,907,992
4,795,993,471
1,657,635,273
66,247,692
7,592,157
4,791,973,101
4,832,817
4,832,817
3,010,062
3,010,062
$ 6,032,867,753
6,048,626,375
5,348,755,911
5,353,322,733
41,734,358
916,824,746
158,347,700
4,832,817
41,734,358
914,790,281
160,367,093
4,832,817
35,313,786
979,172,002
233,410,074
3,010,062
35,313,786
974,986,597
234,577,346
3,010,062
(23) Administration of Trust Contracts and Asset Management
As of December 31, 2010 and 2009, several of the Bank’s subsidiaries administer and are custodian
of assets which amounted to approximately $1,160,151,905 and $1,313,821,439, respectively.
44
- 101 -
(24) Related Party Transactions
The Bank in the normal course of business enters into transactions with related parties, including
principal officers and directors. The following table sets forth balances and transactions with
related parties as of December 31, 2010 and 2009 and for the years then ended:
2010
Assets:
Due from banks
Loans receivable
Accrued interest and other receivables
$
$
48,850,806
1,560,000
84,370,170
6,317,761
141,098,737
2010
Liabilities:
Demand deposits
Time deposits
Borrowings
Accrued interest and other liabilities
15,206,490
1,565,000
77,940,777
806,321
95,518,588
2009
$
170,248,106
119,072,459
0
3,083,227
292,403,792
72,550,035
145,942,818
68,101,811
1,981,178
288,575,842
$
$
7,075,385
12,054,868
6,565,168
11,247,661
$
Interest and other operating income
Interest and other operating expenses
2009
(25) Litigation
To the best knowledge of Bank’s management, there is currently no litigation or assessment that
may result in a material adverse effect on its business, its consolidated financial position or
consolidated results of operations.
(26) Regulatory Matters
Banking operations of the Bank are subject to various regulatory requirements administered by
governmental agencies in the countries they operate or are licensed. Failure to meet these
regulatory requirements can initiate certain mandatory, and possibly additional discretionary,
actions by the regulators that, if undertaken, could have a material effect on the Bank’s
consolidated financial statements. Under capital adequacy guidelines and the regulatory
framework for prompt corrective action, the Bank must meet specific capital guidelines that
involve quantitative measures of the Bank’s assets and certain off balance-sheet items as
calculated under regulatory accounting practices. The Bank’s capital amounts and classification
are also subject to qualitative judgments by the regulators about their components, risk
weightings and other factors.
45
- 102 -
Quantitative measures established by regulation to help ensure capital adequacy require the
Bank to maintain minimum amounts and ratios of Total and Tier I Capital (as defined in the
regulations) to risk-weighted assets (as defined). Management believes that, as of December 31,
2010 and 2009, the Bank meets all capital-adequacy requirements to which it is subject. The
Bank’s capital ratios are presented in the following table:
Bank’s Ratio
2010
2009
Minimum Capital
Adequacy Required
2010
2009
Total Capital to risk weighted assets
12.82%
11.97%
8.0%
8.0%
Tier 1 Capital to risk weighted assets
13.97%
13.74%
4.0%
4.0%
(27) Subsequent Events
The Bank has evaluated subsequent events from the consolidated balance sheet date through
February 4, 2011, the date at which the consolidated financial statements were available to be
issued, and determined there are no other items to disclose.
46
- 103 -
PANAMA
BAC International Bank
Calle 43 y Aquilino de la Guardia. Edificio BAC Credomatic
Panamá, República de Panamá.
Tel: (507) 206-2700/ Fax: (507) 214-7045
Gerente General: Jaime Moreno
Aptdo: 6-3654 El Dorado, Panamá, Rep. de Panamá
e-mail: callcenter@bacbank.com
Web: www.bac.net
BACValores
Calle 43 y Aquilino de la Guardia. Edificio BAC Credomatic
Panamá, República de Panamá.
Tel: (507) 206-27oo / Fax: (507) 214-9270
Gerente: Antonio Fistonich
Credomatic de Panamá
Planta Baja, EdificioVallarino Calle 52 y Ave. Elvira Mendez
Tel: (507) 205-4000 / Fax: (507) 205-4010
Gerente General: Juan Carlos Mejía
Aptdo. 55-1167 / Paitilla Panamá, República de Panamá
Web: www.credomatic.com/panama
BAHAMAS
BAC Bahamas Bank Ltd.
Norfolk House Frederick Street
P.O. B0x 556352 Nassau, Bahamas
Tel: (242) 325-4600 • (242) 325-4601 / Fax: (242)325-4602
Gerente: Dave Smith
NICARAGUA
BAC Nicaragua Centro BAC
Km. 4.5 Carretera a Masaya. Managua, Nicaragua
Tel: (505) 2274-4444 / Fax:(505)2274-4623
Gerente General: Juan Carlos Sansón
Aptdo: 2304 Managua, Nicaragua
Web: www.bac.net
BACValores Puesto de Bolsa
Centro BAC
Tel: (505) 2274-4444 / Fax:(505)2274-4490
Gerente: Jorge Riguero Recalde
Credomatic de Nicaragua
Centro BAC
Tel: (505) 2274-4444 / Fax:(505)2274-4408
Gerente General: Edgar Ahlers Pasos
Aptdo: 3597 Managua, Nicaragua
Web: www.credomatic.com
CAYMAN ISLANDS
BAC International Bank
Caledonian Bank andTrust Ltd.
Caledonian House, 69 Dr. Roy Drive P.O. Box 1043, Georgetown
Grand Cayman, Cayman Islands BWI
Tel: (345) 949-0050 / Fax: (345) 949-8062
COSTA RICA
BAC San José
Centro Corporativo Plaza Roble
Tel: (506) 2502-8000
Gerente General: Gerardo Corrales
Aptdo: 5445-1000 San José, Costa Rica
Web: www.bac.net
Credomatic de Costa Rica
1 km Este del Indoor Club, Curridabat
San José, Costa Rica
Tel: (506) 2295-9797
Gerente General: José I. Cordero
BAC San José Pensiones
Operadora de Planes de Pensiones Complementarias, S.A.
Ave. 5a entre Calle 0 y 1. Edificio Lachner, Costado Norte de
Radiográfica San José, Costa Rica
Tel: (506)2295-9200 / Fax:(506)2222-5797
Gerente General: José Manuel Arias
Web: www.bac.net
BAC San José Sociedad de Fondos de Inversión S.A.
Edificio Omni, Piso 7. San José, Costa Rica
Tel: (506) 2295-9719 / Fax: (506) 2222-7103
Gerente: Allan Marín
Web: www.bac.net
BAC San José Leasing S.A.
Calle Central, Avenidas 1 y 3. San José, Costa Rica
Tel: (506) 2295-9595 / Fax: (506) 2223-5610
Gerente General: Lorena Arce
Web: www.bac.net
BAC San José Puesto de Bolsa
Avenida 1 era, Calles 3 y 5 Edificio Omni, Piso 7
San José, Costa Rica
Tel: (506) 2295-9719 / Fax: (506) 2222-7103
Gerente: Alberto Quirós
Web: www.bac.net
BAC Credomatic Agencias de Seguros
De la Bomba La Galera,
300 mts oeste, Curridabat, San José.
Tel: (506) 2246-3900 / Fax: (506) 2246-3979
Gerente: Clarena Espinoza
HONDURAS
BAC Bamer
Barrio Pueblo Nuevo, Boulevard Morazán,
Edificio BAC Credomatic, 1er Piso, Tegucigalpa, Honduras
Tel: (504) 238-7220 / Fax: (504)237-5113
Gerente General: Jacobo Atala
Aptdo: 3725 Tegucigalpa, Honduras
Web: www.bac.net
Credomatic de Honduras
Boulevard Morazán, Edificio Interamericana, 1er Piso
Tegucigalpa, Honduras
Tel: (504) 238-6570 / Fax: (504)237-5222
Gerente General: Juan Carlos Páez
Aptdo: 1536 Tegucigalpa, Honduras
EL SALVADOR
Banco de América Central
55 Ave. Sur entre Alameda Roosevelt y Ave. Olímpica
Centrc Roosevelt, Edificio Credomatic San Salvador, El Salvador
Tel: (503) 298-l855 / Fax: (503) 224-3148
Gerente General: Gerardo A. Ruiz Munguía
Aptdo: 01-261 San Salvador, El Salvador
Web: www.bac.net
Credomatic de El Salvador
Centro Roosevelt, Edificio Credomatic San Salvaldor, El Salvador
Tel: (503) 298-1855 /Fax: (503) 224-4138
Gerente General: Fernando González
Aptdo: 01-261 San Salvador, El Salvador
Inversiones Bursátiles Credomatic
Centro Roosevelt, Edificio Credomatic, San Salvador, El Salvador
Tel: (503)206-4173 • 206-4179 / Fax: (503) 298-7009
GUATEMALA
Banco de América Central
7 Ave. 6 - 26, Zona 9. Edificio El Roble, 1er. Nivel
Guatemala, Guatemala
Tel: (502) 2361-0909 / Fax: (502) 2331-8720
Gerente General: Juan JoséViaud
Web: www.bac.net
BACValores, Puesto de Bolsa
7 Ave. 6 - 26, Zona 9. Edificio El Roble Nivel 7, Oficina 707
Tel: (502) 2361-0909 / Fax:(502)2331-4818
Gerente: Gustavo Morales
Credomatic de Guatemala
7 Ave 6 - 26, Zona 9. Edificio El Roble, 1er. Nivel
Tel: (502)2361-0909 / Fax: (502) 2331-8720
Gerente General: Juan Maldonado
FLORIDA, USA
Credomatic of Florida
848 Brickell Avenue, 5th. Floor. Miami, Florida 33131
Tel: (305) 372-3000 / Fax: (305) 350-5228
Gerente General: Ricardo Horvilleur
MEXICO
Credomatic de Mexico, S.A. de CV
Av. Lázaro Cárdenas 3590, Colonia Jardines de los Arcos 44500
Guadalajara, Jalisco, México 44500
Tel: (33) 3880-3780 / Fax: (33) 3880-3762
Gerente General: Alejandro Chamorro
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2010 - BAC

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