The Banco León was formally introduced at a ceremony attended by former Dominican

Dominican Republic

The Dominican Republic is a nation on the island of La Hispaniola, part of the Greater Antilles archipelago in the Caribbean region. The western third of the island is occupied by the nation of Haiti, making Hispaniola one of two Caribbean islands that are shared by two countries...

 President Hipólito Mejía

Hipólito Mejía

Rafael Hipólito Mejía Domínguez is a Dominican politician and former President of the Dominican Republic...

 on December 2, 2003. The bank represent a union between the Banco Professional and Banco Nacional de Credito (Bancredito). The Léon Jimenes family, which controls the León Jimenez Group, Ltd is better known for its Marlboro cigarettes, Aurora cigars and Presidente beer operations. The current president of the bank is Mr. Carlos Guillermo León, and its corporate headquarters are in Santo Domingo, Dominican Republic.

Financial performance from 2004 to 2005

From its beginnings the bank has embarked on a process of reconstruction with the goal of improving the financial situation of Bancrédito at the time of the acquisition. Net profits for 2005 amounted to RD$151.8 million, 37,9% more than 2004. Banco León operates 56 branches and more than 160 automatic teller machines throughout the country.

Consolidation of credit card operations, among other initiatives, generated the reduction of administrative expenses in excess of RD$100 million from 2004 to 2005 and the conversion of more than RD$5,000 million worth of unproductive assets into productive ones. According to the 2005 financial statement

Financial statement

A financial statement is a formal record of the financial activities of a business, person, or other entity. In British English—including United Kingdom company law—a financial statement is often referred to as an account, although the term financial statement is also used, particularly by...

, the profit margin

Profit margin

Profit margin, net margin, net profit margin or net profit ratio all refer to a measure of profitability. It is calculated by finding the net profit as a percentage of the revenue.Net profit Margin = x100...

 for the year was RD$ 697,9 million, 130% more than in 2004. Loans increased to RD$12,299 million, an increase of 30.6% since 2004. Capital reserves reached RD$1,668 million, a 10.4% increase with respect to 2004. Total deposits increased to RD$19,967 million, an increase of 4,1%, and a liquidity ratio

Liquidity ratio

Liquidity Ratio may refer to:* Reserve requirement, a bank regulation that sets the minimum reserves each bank must hold.* Acid Test , a ratio used to determine the liquidity of a business entity....

 of 39%, very superior to the required bank reserve of 20 percent.

Activities

In an effort to obtain greater efficiency, during the 2005 Banco León consolidated credit card

Credit card

A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...

 operations with those of the bank, relocated automatic branches and tellers to strategic locations and unified service centers. During February 2004 Banco León announced that it has now made available for commercial and personal clients a service by which property taxes can be paid to the Internal Taxes Agency from any locality via their Internet

Internet

The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...

 banking service. Recently, the Exchange Superintendence of the Dominican Republic announced on March 25, 2006 its approval for Banco Léon to issue public bonds

Government bond

A government bond is a bond issued by a national government denominated in the country's own currency. Bonds are debt investments whereby an investor loans a certain amount of money, for a certain amount of time, with a certain interest rate, to a company or country...

 for a total of RD$306 million. The recently approved bonds for Banco Leon were the first of 2006, with the offer mainly being addressed to institutional investors, pension funds and insurance

Insurance

In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...

companies.