Related party transactions

9 Months Ended

Sep. 30, 2024

Related Party Transactions

Related Party Transactions

Note 22 – Related party transactions

Centro Financiero BHD, S.A.

At September 30, 2024, the Corporation had a

15.84

% equity interest in Centro Financiero BHD, S.A. (“BHD”), one of the largest

banking and financial services groups in the Dominican Republic. During the nine months ended September 30, 2024, the

Corporation recorded $

29.6

 million in equity pickup, including the impact of changes in the fair value of available for sale securities

included as a component of Other Comprehensive Income, from its investment in BHD (September 30, 2023 - $

38

 million), which

had a carrying amount of $

236.1

 million at September 30, 2024 (December 31, 2023 - $

225.9

 million). The Corporation received

$

19.4

 million in cash dividend distributions and $

2.9

 in stock dividends during the nine months ended September 30, 2024

(September 30, 2023 - $

14.1

 million in cash dividends and $

2.1

 million in stock dividends). 

Investment Companies

The Corporation, through its wholly owned subsidiary Popular Asset Management LLC (“PAM”) provided investment advisory

services to several investment companies registered under the Investment Company Act of 1940 in exchange for a fee. These fees

are calculated at an annual rate of the average net assets of the investment company, as defined in each agreement. Due to its

advisory role, the Corporation considers these investment companies as related parties. The Corporation, through its subsidiary

BPPR, also provides transfer agency services to investment companies considered affiliates up to the second quarter of 2024.

For the nine months ended September 30, 2024, administrative fees charged to these investment companies amounted to $

1.6

million (September 30, 2023 - $

1.7

 million) and waived fees amounted to $

0.5

 million (September 30, 2023 - $

0.7

 million), for a net

fee of $

1.1

 million (September 30, 2023 - $

1

 million).