BROU achieved profits of 375 million dollars in the first half of the year
The Bank of the Oriental Republic of Uruguay (BROU) earned 375 million dollars in the first half of the year and, if the trend continues, it will exceed, by the end of 2024, the record figure of 2023, of 600 million dollars. The institution thus manages to contribute an average of 500 million dollars per year to general revenues during the five-year period, said the president of the organization, Salvador Ferrer.
Ferrer said that the BROU is fulfilling its role of supporting the country’s economic development. He recalled that, according to its charter, the organization contributes 50% of its dividends to general income, but can increase the figure to 80% if requested by the Ministry of Economy. In this context, in this period, due to the good results of capital and liquidity, some 2.5 billion dollars will be contributed, between dividends and taxes, an amount that exceeds double the transfers made during the previous five-year period.
Regarding the management’s assessment, the head of the company stressed that the three strategic lines proposed have been fulfilled: business growth, digitalization and the role as a development bank. “In the three lines of action we can say that we are on the right track,” he stressed.
In terms of credit expansion, both for individual clients and companies, the bank’s portfolio grew by just over 50% in the period (measured in current dollars), compared to the previous one, from 4.5 billion dollars in 2019 to around 7.5 billion dollars today, which Ferrer attributed to the institution’s repositioning in various areas.
Regarding digitalization, he highlighted that BROU has followed the roadmap proposed by the Central Bank of Uruguay for the modernization of payment systems. The digital banking solutions involved updating the electronic banking operating platforms, Ebrou and Appbrou, which are accessed by some 800,000 users daily.
The entity has promoted the modernization of the payment system, making it possible to make payments instantly 24 hours a day, seven days a week, with aliases for transfers to cell phones, as well as free transfers between people, for amounts under 2,000 pesos. With these changes, it has been achieved that today seven out of ten transactions are processed digitally.
In August, work is underway on QR code payments via cell phone, a fast and secure method that will allow payments to be made directly to a bank account in stores that use debit cards. This will not involve any cost for the user, and for merchants, the payment will be similar to that of debit cards.
Development Bank
In its role as a development bank, the institution has installed a total of 30 ATMs in different parts of the country that were considered relatively neglected. Villa Soriano, on the western coast; Lago Merín, in Cerro Largo; Villa Constitución, in Salto, and Progreso and 18 de Mayo, in Canelones, are some of the locations where they are available, which has allowed the economy of these areas to be boosted. These digital instruments are added to the 130 BROU branches throughout the country.
The main axis of this strong territorial presence, which has been fostered, is the support for small and medium-sized enterprises (SMEs) in adverse times, both climatic and health-related, together with the reinforcement of the National Guarantee System for Companies (SiGa), which allowed the extension of credit to be supported, and the sectoral fund to support companies that faced specific difficulties, such as the dairy sector, tourism or commercial activity on the border.
