Page 17 - ARUBA BANK 11 MAART 2016

Consolidated Financial Highlights

management’s report Consolidated balance sheet of Maduro & Curiel’s Bank N.V. Consolidated income statement of Maduro & Curiel’s Bank N.V.
and its subsidiaries as at December 31, 2015 and its subsidiaries for the year ending December 31, 2015
BalanCe sHeet and equity
• For financial statement presentation purposes, certain 2014 balances have been (All amounts are expressed in thousands of Antillean Guilders) 2015 2014 (All amounts are expressed in thousands of Antillean Guilders) 2015 2014

adjusted. Assets 2,342,984 2,105,390 Interest income 316,623 323,648
• Our shareholders’ equity excluding minority interest reached the ANG 750 Cash and due from banks 304,983 235,982 Interest expense 24,266 21,244
Investment securities 4,074,292 4,075,961
million mark for the first time and was strengthened with ANG 33 million. It Loans and advances to customers 895 867 Net interest income 292,357 302,404
represents a key strength of our Group and one that we as management stand Investment in associated companies 178,957
for and that our community, our customers and our staff can continue to rely Bank premises and equipment 177,105 3,655 Fee and commission income 201,584 192,079
and count on. Customers' liability under acceptances 3,852 70,987 Fee and commission expenses 74,204 67,839
• MCB Group’s total assets increased ANG 289 million or 4%, and nearly reached Other assets 56,594
ANG 7 billion at ANG 6,961 million. Total assets 6,671,799 Net fee and commission income 127,380 124,240
• The main reason for the increase in assets was the 5% (or ANG 275.7 million) 6,960,705
growth in customers’ deposits, which showed growth in all our markets. Liabilities and equity Income from foreign exchange transactions 51,573 50,199
• Large portions of the growth in customers’ deposits were invested in securities Liabilities 5,945,850 5,670,196 Income from investment securities 71 177
and deposited with banks, resulting in growth of Investment securities of ANG Customers' deposits 19,742 23,079 Other revenues 2,912
69 million (29%) and in Cash and due from banks of ANG 238 million (11%). Due to banks 3,852 3,655 -
• Because of lesser credit demand in some of our markets, the Loans and Acceptances outstanding 10,819 18,557 Operating income 474,293
advances to customers remained flat at ANG 4 billion (0% change). Accrued interest payable 10,478 37,634 477,020
Current profit tax liabilities 30,017 Salaries and other employee expenses 187,653
proFit & loss statement Deferred tax liability 90,942 30,544 Occupancy expenses 23,550 187,199
• The income is derived from both local and international activities of the Group. Provisions 87,369 79,952 Net impairment losses on loans and advances 20,435 24,177
Other liabilities 6,199,069 79,848 Other operating expenses
These income streams continue to be well diversified. 5,943,465 68,746 21,122
• In 2015, the Group’s operating income showed a minor decrease of 0.6% or Equity Operating expenses 65,268
Share capital 51,000 51,000 300,384
ANG 2.7 million compared to 2014, attributed to the continued weak economic Other reserves 207,541 206,937 Net result from operations 297,766
environment the Group operated in. Retained earnings 491,789 458,971 173,909
• The Net interest income decreased ANG 10 million or 3%, compensated 750,330 716,908 Net income (loss) from associated companies 179,254
somewhat by the increase of ANG 3.1 million (2.5%) in Net fee and commission Minority interest 28
income, a growth of ANG 1.4 million (2.7%) in Income from foreign exchange 11,306 11,426 Net result before tax (265)
transactions and ANG 2.9 million in Other revenues. TOTAL LIABILITIES AND EquITy Profit tax 173,937
• The decrease in operating income, combined with a very small increase 6,960,705 6,671,799 33,353 178,989
in operating expenses of 1% (ANG 2.6 million), caused the net result from Net result after tax 38,676
operations to decrease 3% to ANG 174 million. 140,584
• Because of the lower profit tax, our Group’s net result did not decrease 140,313
compared to 2014 and part of the profits is allocated to the Bank’s equity in
retained earnings. Explanatory notes to the consolidated financial highlights as at December 31, 2015

loans A) Accounting policies B) Specification of accounts 2015 2014
• The loans in our loan portfolio remain well diversified by types of customers,
1. General (All amounts are expressed in thousands of Antillean Guilders) 293,883 224,991
size, maturity and sectors. The principal accounting policies adopted in the preparation of the consolidated 11,100 10,991
• The 0% growth in loans was mainly due to a 2% (ANG 40 million) decrease financial statements of Maduro & Curiel’s Bank N.V. and its subsidiaries (the I Assets
“Group”) are set out below. These explanatory notes are an extract of the 304,983 235,982
in loans to corporate customers, especially in Curaçao and Aruba, somewhat detailed notes included in the consolidated financial statements and are Investment securities
compensated by a growth of 2% (ANG 34 million) in loans to retail customers. consistent in all material respects with those from which they have been derived. Held-to-Maturity 2015 2014
Financial assets at fair value
ta x e s 2. Basis oF preparation 1,699,383 1,665,791
• MCB Group’s profit tax obligation resulting from our operations in 2015 was The consolidated financial statements, from which the consolidated financial Total investment securities 2,366,566 2,406,309
highlights have been derived, are prepared in accordance with International 14,472
ANG 33 million, while the Group also paid ANG 6.2 million in turnover taxes. Financial Reporting Standards (“IFRS”). Loans and advances to customers 99,080 11,780
• Our employees paid wage taxes amounting to ANG 29 million, while social Retail customers 92,440
The figures presented in these highlights are stated in thousands of Antillean Corporate customers 4,179,501
premiums paid were ANG 25 million. Guilders (‘ANG’) and are rounded to the nearest thousand. Public sector (105,209) 4,176,320
• Together, the taxes and premiums paid, contributed ANG 151 million to the Other (100,359)
The policies used have been consistently applied by the Group and its 4,074,292
public coffers of our countries. subsidiaries and are consistent, in all material respects, with those used in the Gross loans and advances to customers 4,075,961
previous year. Less: allowance for loan impairment
employment 2015 2014
• As at December 31, 2015, MCB Group employed 1,506 persons across all islands For financial statement presentation purposes certain 2014 balances have been Net loans and advances to customers
adjusted. 2,265,965 2,174,927
and paid its employees ANG 102 million in salaries, not including social benefits, II Liabilities 2,734,057 2,691,321
pensions, medical and other insurances. 3. Basis oF Consolidation 945,828 803,948
Subsidiaries are all entities over which the Group has the power to govern the Customers' deposits
Community financial and operating policies. Subsidiaries are fully consolidated from the date Retail customers 5,945,850 5,670,196
• The MCB-Prize 2015 was awarded to the Ronald McDonald House Charities on which control is transferred to the Group until the date that control ceases. Corporate customers
The following subsidiaries have been consolidated as of December 31, 2015. Other
Curaçao Foundation (RMHC). Since its establishment in 2009, the organization
has helped more than 6,200 families, coordinated by a group of tireless - Caribbean Mercantile Bank N.V. and subsidiaries Total customers' deposits
volunteers. In 2012, the foundation created a “Family Room” in our hospital - The Windward Islands Bank Ltd.
close to the children’s department, making it possible for parents and family to - Maduro & Curiel’s Bank (Bonaire) N.V. and subsidiary report of the independent auditor on the consolidated
“sleep in” and be closer to their children. There is also a playroom and several - Maduro & Curiel’s Insurance Services N.V. financial highlights
other facilities to make the stay at the hospital less stressful. - MCB Securities Holding B.V.
• Our Bank continues to support activities and programs for the children and - MCB Group Insurance N.V. To the Shareholders and Board of Directors of Maduro & Curiel’s Bank N.V.
teenagers in our societies, varying from sports with “Kareda di Lito” and - Progress N.V. Curaçao
“Fakansi ku deporte” to cultural classes such as the “Instituto pa formashon - MCB Risk Insurance N.V.
musikal” where children receive lessons in classical music. Educational events The accompanying consolidated financial highlights, which comprise the consolidated
such as “Lesa pa bo skol”, whereby children can win prizes for their schools by Associated companies balance sheet as at December 31, 2015, the consolidated income statement for the year
showing their reading skills, are also supported. Associated companies are entities over which the Group has significant influence then ended, and related notes, are derived from the audited consolidated financial
• As a financial Group anchored in our communities, we consider it our but not control. Investments in associated companies are accounted for under statements of Maduro & Curiel’s Bank N.V. for the year ended December 31, 2015. We
responsibility to contribute and share wherever and whenever possible the equity method of accounting. expressed an unmodified audit opinion on those consolidated financial statements in
to improve the lives of our citizens. We are very grateful to our volunteer our report dated February 29, 2016. Those consolidated financial statements, and the
colleagues who every year again keep supporting great causes and people who 4. investment seCurities consolidated financial highlights, do not reflect the effects of events that occurred
really need our help. The Group classifies its investment securities in the following categories: subsequent to the date of our report on those financial statements.
financial assets at fair value through profit or loss and held-to-maturity.
tHe Future Management determines the classification of its investment securities at initial The consolidated financial highlights do not contain all the disclosures required
People tend to say that the older you get, the faster time flies. For an organization recognition. by International Financial Reporting Standards. Reading the consolidated financial
that enters its 100th year of existence time should then fly by really fast, but even highlights, therefore, is not a substitute for reading the audited consolidated financial
then we are still not able to predict the future. The most we can do is what we A security is classified in the category financial assets at fair value through statements of Maduro & Curiel’s Bank N.V.
have tried to do during the last 99 years and that is to be well-prepared and as profit or loss if acquired principally for the purpose of selling in the short term.
flexible and agile as possible to be able to quickly adapt to fast changing business Investment securities with fixed maturities where management has both the Management’s Responsibility for the consolidated financial highlights
environments. It is therefore imperative that we continue to train and develop intent and ability to hold to maturity are classified as held-to-maturity. Management is responsible for the preparation of the consolidated financial highlights
our colleagues with different and new skills and keep investing in innovative derived from the audited consolidated financial statements in accordance with the
methods of producing and delivering products and services that are demanded Financial assets at fair value through profit or loss and financial assets classified Provisions for the Disclosure of Consolidated Financial Highlights of Domestic Banking
by our customers. as held-to-maturity are initially recognized at fair value. Financial assets at fair Institutions, issued by the Central Bank of Curaçao and Sint Maarten (“CBCS”).
The year 2016 is the year of our Bank’s 100th Anniversary that we hope to celebrate value through profit or loss are subsequently carried at fair value. Held-to-
in December. It will be a year with many events, big and small and also several maturity securities are carried at amortized cost, using the effective interest Auditor’s Responsibility
surprises for our customers, colleagues, pensioners, shareholders, regulators and method. Unlisted equity securities for which no readily available market exists, Our responsibility is to express an opinion on the consolidated financial highlights based
our communities at large where we will try to show how grateful we are for being and for which other methods of reasonably estimating fair value are clearly on our procedures, which were conducted in accordance with International Standard on
able to service them and for their continued support and trust. We hope we can inappropriate or unworkable, are carried at cost less impairment, if applicable. Auditing (ISA) 810, Engagements to Report on Summary Financial Statements.
continue to enjoy that for the next 100 years!
The gains and losses arising from changes in the fair value of financial assets Opinion
Please write to Annual Report 2015, P.O.Box 305, Curaçao, for a free copy of our 2015 at fair value through profit or loss are included in the consolidated income In our opinion, the consolidated financial highlights derived from the audited
Annual Report or visit our website www.mcb-bank.com. statement in the period in which they arise. consolidated financial statements of Maduro & Curiel’s Bank N.V. for the year ended
December 31, 2015 are consistent, in all material respects, with those consolidated
5. loans and advanCes to Customers financial statements, in accordance with the Provisions for the Disclosure of
Loans and advances are carried at amortized cost, less an allowance for loan Consolidated Financial Highlights of Domestic Banking Institutions, issued by the CBCS.
impairment. An allowance for loan impairment is established if there is an
indication that the Group will not be able to collect all amounts due according Report on other legal and regulatory requirements
to the original contractual loan terms. We believe that the Management’s Report, to the extent we can assess, is consistent
with the consolidated financial statements as required by article 121 sub 3 Book 2 of the
Civil Code of Curaçao.

Curaçao,
February 29, 2016

KPMG ACCOUNTANTS B.V.

S. Agarwal FCA