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24 ADVERTENTIE Antilliaans Dagblad Vrijdag 21 februari 2020

RBC Royal Bank N.V. and its Subsidiaries

Consolidated Financial Highlights 2019

October 31, 2019

Board of Managing Directors’ Report Independent Auditor’s Report on the Consolidated
To remain at the forefront of our ﬁeld, RBC Royal Bank N.V. (“The Bank”) continued its focus on Financial Highlights
reimagining what a bank can be, committed to innovating to deliver better and more value to
clients through digital convenience, effective solutions and expert advice. To the Board of Directors of RBC Royal Bank N.V.
In 2019, we have made signiﬁcant strides transforming our Bank to be the premier digitally- Our opinion
enabled relationship bank. Transformation requires vision, commitment, faith and conﬁdence In our opinion, the accompanying consolidated ﬁnancial highlights of RBC Royal Bank
because reimagining is not about being better at what we have always been — one of the world’s
best banks. Instead, it is bringing to live opportunities — being present where we need to be, being N.V. (the Company) and its subsidiaries (together ‘the Group’) are consistent, in all
innovative where opportunities exist and being bold in how we partner with and remain relevant material respects, with the audited consolidated ﬁnancial statements, in accordance
in the lives of our clients. with the Provisions for the Disclosure of Consolidated Financial Highlights of Domestic
Banking Institutions, as set out by the Central Bank of Curacao and Sint Maarten.
While our work is ongoing, our achievements to date manifested in our redesigned distribution
network. In 2019, as part of a larger integrated advice and service delivery model across the The consolidated ﬁnancial highlights
Dutch Caribbean, we have merged branches into a single ﬂagship “branch of the future” in Aruba, The Group’s consolidated ﬁnancial highlights derived from the audited consolidated
Curaçao and St. Maarten. We have expanded our digital capabilities, upgraded our Point-of- ﬁnancial statements for the year ended October 31, 2019 comprise:
Sale and ATM network, and focused our attention on improving business performance through
continued investment in our employees, enhanced product offerings, and improved quality of • the consolidated statement of ﬁnancial position as at October 31, 2019;
assets on the books. These investments position us for sustainable long-term growth and will • the consolidated statement of income and other comprehensive income for the
help us navigate persistent economic headwinds, the impact of natural disasters, changes in the
ﬁnancial industry, and increasing competitive pressures. year then ended; and
We remain committed to the communities we serve, our key stakeholders and to meet and exceed • the related notes to the consolidated ﬁnancial highlights.
the expectations of our clients across the Dutch Caribbean. This commitment is reinforced by a The consolidated ﬁnancial highlights do not contain all the disclosures required by
clear purpose that guides us in everything we do: helping clients thrive and communities prosper.
International Financial Reporting Standards. Reading the consolidated ﬁnancial
Financial Performance highlights and the auditor’s report thereon, therefore, is not a substitute for reading
the audited consolidated ﬁnancial statements and the auditor’s report thereon. The
In 2019 the Bank reported net income after taxation of Naﬂ 31.9 million, representing a year-over- audited consolidated ﬁnancial statements, and the consolidated ﬁnancial highlights,
year decline of Naﬂ 18.3 million. The overall decline was primarily due to impairment on goodwill do not reﬂect the effects of events that occurred subsequent to the date of our report
of Naﬂ 23.7 million in Aruba — as a result of changes in future economic outlook — and lower loan on the audited consolidated ﬁnancial statements.
provision releases in St. Maarten.
The audited consolidated ﬁnancial statements and our report thereon
Despite these factors, the Bank realized strong performance mainly driven by an increase in
interest income arising from growth in loans and advances to customers, and investment in We expressed an unmodiﬁed audit opinion on the audited consolidated ﬁnancial
securities. Interest expenses also declined from a reduction in customer deposits and further statements in our report dated January 30, 2020. That report also includes an “Other
contributed to these results. This was accompanied by a decline in operating expenses as a result Matter” section that states that the opinion has been prepared for and only for therr
of managing costs.
Company in accordance with the terms of our engagement letter and that we do not,
Economic Outlook in giving the opinion, accept or assume responsibility for any other purpose or to any
other person to whom this report is shown or into whose hands it may come save
Aruba: The Central Bank (CBA) has revised downward its real GDP growth estimate for 2019
from 0.9% to 0.7% resulting from weaker than anticipated investment, exports and consumption where expressly agreed by our prior consent in writing.
ﬁgures. Business sentiments remained pessimistic for the 5th consecutive quarter to Q2-2019, Management’s responsibility for the consolidated ﬁnancial highlights
reﬂecting continued uncertainty around short-term future economic conditions. Caribbean
Tourism Organisation (CTO) data show stopover arrivals rose 6.3% year-over-year to May 2019 Management is responsible for the preparation of the consolidated ﬁnancial
while cruise passenger arrivals fell by 2.3% year on year to October 2019. For 2020, a number of highlights in accordance with the Provisions for the Disclosure of Consolidated
large construction projects are ongoing led by the private sector, including the Embassy suites Financial Highlights of Domestic Banking Institutions, as set out by the Central Bank
by Hilton which is expected to be completed by mid-2021 and the Radisson Blu Hotel which is of Curacao and Sint Maarten.
expected to open by the middle of 2020. The Aruban government continues to seek other interests Auditor’s responsibility
for the operation of the reﬁnery, dock, and terminal.
Our responsibility is to express an opinion on whether the consolidated ﬁnancial
Bonaire and Saba: According to Statistics Netherlands (CBS), in Q4 2019 prices of consumer highlights are consistent, in all material respects, with the audited consolidated
goods and services in Bonaire were up 2.2% year-over-year led by the transportation sub-index,
with petrol nearly 10% and diesel over 11% more expensive than in the same quarter in 2018. ﬁnancial statements based on our procedures, which were conducted in accordance
Fresh fruits drove up price levels as well; rising by nearly 39% year-over-year. Consumer prices in with International Standard on Auditing 810 (Revised), ‘Engagements to Report on
Saba rose marginally by 0.8% year-over-year in Q4 2019, driven by higher prices of telephone and Summary Financial Statements’.
internet subscriptions as well as insurance services and home textiles. According to 2018 labor
force data, the unemployment rate for Bonaire and Saba is approximately 3% and 2%, respectively.
As at Q3 2019, total stopover arrivals to Bonaire and Saba stood at 44,600 (an increase of 3.4%
year-over-year) and 3,500 (up 13.6% year-over-year), respectively. Stronger tourist arrivals are PricewaterhouseCoopers, Cayman Islands
expected in early 2020.
February 20, 2020
Curaçao: The Central Bank of Curaçao and St. Maarten (CBCS) projections show contractions
in Curaçao’s real GDP growth in 2019 and 2020 by 2.2% and 3.4%, respectively. This contraction Engagement Leader: Marlon Bispath
is mainly attributed to declines in real value added in the manufacturing, transport, storage and
communication sector, wholesale & retail trade and construction. Caribbean Tourism Organization
data show increases of 9.8% year-over-year to October 2019 and 2.4% year-over-year, respectively
for stopover and cruise arrivals to Curaçao. As at November 2019, inﬂation stood at 2.8% year-
over-year, led by the food sub-index. The Central Bank has projected inﬂation to rise to 5% by the Consolidated Statement of Financial Position of RBC Royal
end of 2020 as a 15% general consumption tax will be introduced by April 2020. The Isla reﬁnery
lease with PDVSA ended December 31, 2019. The government has entered into an asset purchase Bank N.V. and its Subsidiaries
and sale agreement with the industrial commodities conglomerate Klesch Group. (Expressed in thousands of Antillean Guilders) As at 31 October
St. Maarten: According to the Central Bank of Curaçao and St. Maarten, the country continued on 2019 2018
the path of recovery. Estimated real growth for St. Maarten in 2019 is 5.3%, up from a contraction ANG ANG
of 6.6% in 2018, driven mainly by increased export, private investments and continued activity Assets
in the construction sector. Airport-related activity increased and air transportation services, Cash and due from banks 1,048,850 1,149,684
233,894
248,389
Securities
provided by the local airline Winair, went up. While Caribbean Tourism Organization data show Loans and advances to customers 1,471,352 1,446,147
stay-over tourism increased signiﬁcantly — led by visitor inﬂows from the US and Canada —, it Customers’ liability under acceptances 23,749 28,179
was still below pre-hurricane level. The inﬂation in Sint Maarten eased to 0.6% as the increase in Bank premises and equipment 35,559 34,421
electricity prices was mitigated by a decline in food prices. Goodwill and other intangible assets 28,241 59,268
RBC and our community Deferred tax assets 20,131 13,067
Other assets 19,620 17,513
Our Purpose is “Helping clients thrive and communities prosper.” While banks have a signiﬁcant
impact on the economy, they also have an impact on people and the planet. We recognize that Total assets 2,881,396 2,996,668
our bottom-line success depends on the well-being and prosperity of our clients and employees, Liabilities and shareholders’ equity
and of the communities and environment in which we live and work. As a purpose-driven Liabilities
company, creating a positive social impact — not just an economic one — is absolutely integral Customers’ deposits 2,409,467 2,525,759
to everything that we do. We believe in the power of communities and the individuals who live Due to other banks 35,597 44,511
in them. In the recent ﬁscal period we continued to drive positive social impact through youth, Acceptances outstanding 23,749 28,179
education and community initiatives and programs across the Dutch Caribbean. We believe these Proﬁt tax payable 10,778 9,082
are key elements to build a successful economy. Our contributions included support for employee Deferred tax liabilities 7,187 13,287
volunteerism, contributions to a wide range of causes, and sponsorships. We also reinforced Provisions 882 3,008
our long-standing relationship with the Little League Foundations across the Dutch Caribbean Other liabilities 38,994 49,075
markets as main sponsorship partner.
Total liabilities 2,526,654 2,672,901
On behalf of the Board of Directors and executive of RBC, we would like to thank our clients for
their continued conﬁdence in RBC Royal Bank N.V. as we work towards becoming the premier Shareholders’ equity
digitally-enable relationship bank. We would also like to thank our employees who are the engine Issued capital 114,455 114,455
and energy behind all our achievements. We remain steadfast in our commitment to delivering Share premium 87,053 87,053
excellence as we help our clients thrive and communities prosper. General reserve 27,446 27,411
Other reserve 2,267 2,407
Retained earnings 123,521 92,441
Pierrot Hurtado Jarl Jie-A-Looi
RBC Royal Bank N.V. RBC Royal Bank N.V. Total shareholders’ equity 354,742 323,767
Managing Director Managing Director Total liabilities and shareholders’ equity 2,881,396 2,996,668
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