Banco Occidental de Descuento Company Profile and Performance

Banco Occidental de Descuento is a Venezuelan bank that has been serving the country's financial needs for over 40 years. Founded in 1980, it has grown to become one of the largest banks in Venezuela.

The bank's history is marked by its commitment to providing financial services to the Venezuelan people. With a strong presence in the country's major cities, Banco Occidental de Descuento has established itself as a trusted institution.

Banco Occidental de Descuento offers a wide range of financial products and services, including personal and corporate banking, as well as investment and insurance services. Its extensive network of branches and ATMs makes it easily accessible to customers across the country.

The Banco Occidental de Descuento has a rich history that dates back to 1956, when it was founded with the goal of supporting the commercial, industrial, and agricultural sectors in western Venezuela.

It was officially established on January 8, 1957, with a capital of 20 million bolívares distributed among 40,000 nominative shares.

The bank's first board of directors consisted of Francisco Morillo Romero as president and other prominent individuals, including José Rafael Domínguez and Jorge Maisto.

Initially, the bank operated out of an office on Comercio Street in Maracaibo, before moving to the Torre Principal on 5 de Julio Avenue, where it remains to this day.

By 1994, the bank had grown to become the 28th largest institution in the country, with a significant number of branches and a strong presence in the region.

The bank underwent a major expansion in 2000, following the merger of Banco Noroco and Valencia Entidad de Ahorro y Préstamos, which gave rise to Norval Bank.

In 2002, Norval Bank merged with Banco de Monagas and the Fondo de Activos Líquidos B.O.D., resulting in the bank's transformation into a universal bank with 143 branches and a significant increase in its capital.

The bank's expansion continued in 2006, with the acquisition of Corp Banca, which had been controlling the former Banco Consolidado since 1996.

By 2007, the bank had completed the integration of Corp Banca's technological platform, paving the way for a future merger between the two institutions.

The merger was finally approved by SUDEBAN in 2013, resulting in the disappearance of the Corp Banca brand and the consolidation of the B.O.D. brand as one of the largest banks in Venezuela.

Banco Occidental de Descuento has consistently demonstrated strong financial performance over the years.

The bank's net income has grown steadily, with a notable increase of 15% in 2020 compared to the previous year.

Its assets have also expanded significantly, reaching a total of $5.5 billion in 2020, a 20% increase from 2019.

The bank's financial stability is further reinforced by its high capital adequacy ratio of 12.5%, well above the regulatory minimum.

The balance sheet is a critical component of a company's financial performance, and it's essential to understand its dynamics. The Banco Nacional de Crédito BNC and the Banco Occidental de Descuento BOD have a complex situation with assets and liabilities, but the Superintendence of Institutions of the Banking Sector SUDEBAN clarifies that the transfer of assets and liabilities does not imply a merger by absorption.

Each institution will maintain its identity and its own rights and obligations on the date of the transfer. This means that the BNC will not be responsible for the cancellation of the BOD's liabilities with clients of intervened subsidiaries and in liquidation that it has abroad.

The asset and liability transfer agreement was approved as an alternative route of the Recovery Plan, considering it a viable and efficient procedure. This decision was made due to the insufficient coverage of public deposits, as the financial statements of the Banco Occidental de Descuento do not show the necessary disposition of assets to offset the liability balances.

The Banco Occidental de Descuento Banco Universal C.A.'s stock price has been relatively stable, with a current share price of 0.00045.

One notable aspect is that the 52-week high and low are both 0, indicating that the stock price hasn't fluctuated much over the past year.

The bank's beta is 0, which means its stock price is not closely tied to the overall market performance.

In the past month and three months, the stock price has remained unchanged at 0%.

Over the past year, the stock price has also remained flat, with a 0% change.

However, looking at a longer-term perspective, the stock price has seen a significant increase of 350% over the past three years.

Unfortunately, the five-year change and change since IPO are not available.

The Banco Nacional de Crédito (BNC) has acquired the Banco Occidental de Descuento (BOD).

The acquisition is set to take place on June 27, 2022, with all BOD clients being incorporated into the BNC system.

BNC will allow BOD clients to continue their operations through their network of agencies across the country and through their digital banking platform, www.bncenlinea.com.

The conditions, keys, and characteristics of their financial instruments will remain the same, ensuring a seamless transition.

This acquisition was authorized by Sudeban, with the goal of protecting the interests of depositors and restoring confidence in the banking system.

The BNC will handle all queries and requests from BOD clients, with direct supervision from the regulatory body.

The acquisition is a result of a proposal submitted by BNC and BOD to transfer their assets and liabilities, which was approved by the regulatory body.

The Banco Occidental de Descuento has had its fair share of controversies over the years.

In 2007, the bank's vice president, Tomás Casado, was detained for his involvement in the "La Vuelta" scam, which resulted in many families from Zulia losing their savings.

The bank was also implicated in the 2016 cyber attacks on Credicard's payment system, with its president, Víctor Vargas, being detained by the Sebin.

Several depositors reported a scheme of "estafas por millones de dólares" (millions of dollars in scams) by the bank and its international branches in 2019.

The Asamblea Nacional (National Assembly) initiated debates on the case in October 2019, but the investigation was delayed.

In October 2022, depositors from the state of Falcón filed a complaint against the bank with the Sala Constitucional del Tribunal Supremo de Justicia (Constitutional Chamber of the Supreme Court of Justice) for estafa (fraud) and non-return of their savings retained since 2019.

The SUDEBAN announced in June 2022 that BOD clients would be transferred to the BNC Banco Nacional de Crédito, but clients who had opened accounts in dollars in the bank's foreign branches in Panama, Curazao, and the Dominican Republic were left without access to their funds.

Administrative Actions were taken against several institutions belonging to the Grupo Financiero BOD in September 2019.

The Banco Central de Curazao suspended the regular services of the Banco del Orinoco N.V. on September 5, 2019, and appointed an administrator to evaluate the bank's assets and liabilities.

The Superintendencia de Panamá intervened administratively and operationally the bank AllBank Corp for 30 days, with the possibility of extension, as a preventive measure against potential contagion effects from the situation in the group bank in Curazao.

SUDEBAN took administrative measures to protect and secure the funds of users of the Banco Occidental de Descuento through Resolution 047.19, published in the Official Gazette Nro. 41,714 on September 11, 2019.

These measures prohibited new investments and dividend payments, but the bank would continue to operate.

The president of the Grupo Financiero BOD, Víctor Vargas Irausquín, held a press conference on September 12, 2019, to clarify the situation of the bank's subsidiaries and the Banco Occidental de Descuento specifically.

Vargas denied the intervention of the bank and stated that its board of directors was operating normally.

The Banco del Orinoco N.V. was already scheduled to be liquidated by its board of directors, and the suspension by the Banco Central de Curazao was seen as a precautionary measure due to Curazao's reputation for money laundering.

The paralization of AllBank Corp in Panamá was intended to ensure that no irregularities occurred following the decision made in Curazao.

Banco Occidental de Descuento is a Colombian bank with a unique company structure.

Its parent company is Grupo Aval, a Colombian conglomerate that also owns other financial institutions.

Banco Occidental de Descuento has a significant presence in Colombia, with a network of branches and ATMs across the country.

The bank's operations are overseen by a board of directors, which is responsible for making strategic decisions.

The bank's management team is led by a president, who reports directly to the board of directors.

Banco Occidental de Descuento has a strong focus on customer service, with a dedicated team working to provide support to its clients.

The bank's financial performance is overseen by a team of experienced financial analysts.

The Banco Occidental de Descuento (BOD) officially ceased operations as per the Resolución N 047.22 of the Gaceta N 42.412 dated July 6, 2022.

This marked the end of the bank's operations, a significant change for the financial institution.