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effective interest method. Any difference between the new amortized cost and maturity amount is
subsequently, in principle, carried at fair value. Held-to-maturity securities are carried at amortized
EXPLANA TORY NOTES TO THE CONSOLIDA TED FINANCIAL HIGHLIGHTS OF ORCO BANK N.V.
amortized cost. Any previous gain or loss on that asset that has been recognized directly in equity
or loss are initially recognized at fair value and transaction costs are expensed in the consolidated
held-to-maturity, the fair value (carrying amount) of such financial asset on that date becomes its
cost, using the straight-line method of amortization. The aforementioned method does not differ
payments and fixed maturities that the Bank’s management has the positive intention and ability
is amortized to profit or loss over the remaining life of the held-to-maturity investment using the
reclassify a financial asset other than loans and advances from the category available-for-sale to
statement under net trading income in the period in which they arise. Unlisted equity securities
Investment securities intended to be held for an indefinite period of time, which may be sold in
assets not carried at fair value through profit or loss. Financial assets at fair value through profit
also amortized over the remaining life of the financial asset using the effective interest method.
materially from the effective interest method. The gains and losses arising from changes in the
response to needs for liquidity or changes in interest rates, exchange rates or equity prices are
Investment securities are initially recognized at fair value plus transaction costs for all financial
classified as available-for-sale. When the Bank sells other than an insignificant amount of held-
On the other hand, if, as a result of a change in intention or ability, it becomes appropriate to
to-maturity assets, the entire category would be tainted and reclassified as available-for-sale.
market value of financial assets at fair value through profit or loss are included in the income
Held-to-maturity investments are non-derivative financial assets with fixed or determinable
Available-for-sale financial assets and financial assets at fair value through profit or loss are
best estimate of the fair value of these securities. for which no readily available market exists are valued at net equity value which is Management’s Gains and losses arising from changes in fair value of available-for-sale financial assets are recognized dire
ADVERTENTIE to hold to maturity. income statement. to purchase or sell the assets. ownership. advances. and / or the unpaid interest. CBCS. Statements” . Curaçao, April 18, 2017 KPMG Accountants B.V. R.J. Liedenbaum RA www.orcobank.com

Ownership

Country of incorporation Curaçao 100% Curaçao 100% Curaçao 100% Curaçao 100% Curaçao 100% Curaçao 100% Curaçao 100% Curaçao 100% Curaçao 100%

Maandag 24 april 2017 The principal accounting policies adopted in the preparation of the Consolidated Financial Highlights of Orco Bank N.V. and its subsidiaries (the ‘Bank’) are set out below. These explanatory notes are an extract of the detailed notes included in the consolidated fina

Antilliaans Dagblad Accounting policies General Basis of preparation (‘IFRS’). rounded to the nearest thousand. material respects, with those used in the previous year. Basis of consolidation Orco Finance N.V. • Orco Bank Onroerend Goed N.V. • Flamboyant Onroerend Goed N.V.

Maandag 24 april 2017 CONSOLIDATED BALANCE SHEET OF ORCO BANK N.V. (All amounts are expressed in thousands of Antillean Guilders) 2015 2016 215,854 228,434 66,302 61,174 585,568 598,116

Antilliaans Dagblad Cash and due from banks Investment securities Loans and advances to customers Bank premises and equipment deposits Deferred tax liabilities Fee and commission income Fee and commission expense Net fee and commission income Gains and losses from

Assets Deferred tax assets Other assets Total assets Liabilities Customers’ Due to other banks Other liabilities Funds borrowed Stockholders’ equity Issued capital Share premium General reserves Retained earnings Interest income Interest expense Net interest income Net

Consolidated Financial Highlights

ADVERTENTIE December 31, 2016 Bank’ s performance - financial highlights In 2016, the balance sheet total increased by 2% to ANG 916,295 (2015: ANG 896,782). The increase can be attributed to the increase of Cash and due from banks (6%), Loans and advances to customers (2%) and a decre

Report of the Managing Board Orco Bank N.V. in 2016 continued to cater to the high-end segment and differentiating itself by offering tailor-made products throughout Curaçao, Bonaire and St. Maarten. The regulatory laws and procedures, especially in the fields of compliance and cor

14 Introduction niche market. 2016. soon as possible. Awareness Assessments.