Page 87 - ARUBA BANK

Antilliaans Dagblad Dinsdag 4 juni 2019 ADVERTENTIE 11

Explanatory notes to the Consolidated Financial Highlights for .J XLI QSHMǻ GEXMSR HSIW RSX VIWYPX MR GEWL Ǽ S[W
ƋĘå Ƽå±ų åĹÚåÚ Ƒŏ %åÏåĵÆåų Ɨljŏî XLEX EVI WYFWXERXMEPP] HMǺ IVIRX XLI QSHMǻ GEXMSR
does not result in derecognition. Based on the
A. ACCOUNTING POLICIES from the sale of assets. If neither of these is GLERKI MR GEWL Ǽ S[W HMWGSYRXIH EX XLI SVMKMREP
• BASIS OF CONSOLIDATION ETTPMGEFPI I K ǻ RERGMEP EWWIXW EVI LIPH JSV VEXI XLI (SQTER] VIGSVHW E QSHMǻ GEXMSR KEMR
• GENERAL Subsidiaries are those institutions in which XVEHMRK TYVTSWIW XLIR XLI ǻ RERGMEP EWWIXW EVI or loss, to the extent that an impairment loss
The principal accounting policies adopted the Bank, directly or indirectly, has the power GPEWWMǻ IH EW TEVX SJ ERSXLIV FYWMRIWW QSHIP has not already been recorded.
MR XLI TVITEVEXMSR SJ XLI GSRWSPMHEXIH ǻ RERGMEP XS KSZIVR XLI ǻ RERGMEP ERH STIVEXMRK TSPMGMIW and measured at FVPL. Factors considered by
statements of Vidanova Bank N.V. (‘the Bank’) WS EW XS SFXEMR FIRIǻ XW JVSQ MXW EGXMZMXMIW the Bank in determining the business model Expected credit loss principles
are set out below. These explanatory notes Vidanova Asset Holding B.V. was founded in for a group of assets include past experience The adoption of IFRS 9 has fundamentally
are an extract of the detailed notes included 2017 and is a wholly-owned subsidiary of the SR LS[ XLI GEWL Ǽ S[W JSV XLIWI EWWIXW [IVI changed the Bank’s impairment method by
in the statutory consolidated financial 'ERO 8LI GSRWSPMHEXIH ǻ RERGMEP WXEXIQIRXW collected, how the asset’s performance is replacing IAS 39’s incurred loss approach with
statements and are consistent in all material of the Bank for the year ended December measured and reported to key management a forward-looking expected credit loss (‘ECL”)
respects with those from which they have 31, 2018 comprise of the Bank and its personnel and how risks are assessed and approach.
been derived. subsidiary. managed.
'EWIH SR XLI EFSZI TVSGIWW XLI ǻ RERGMEP EWWIXW
• BASIS OF PREPARATION • CLASSIFICATION AND SUBSEQUENT The Company’s business model for the loans and loan commitments are grouped into stage
The Consolidated Financial Highlights have MEASUREMENT OF FINANCIAL ASSETS and advances is to hold and collect the 1, stage 2 and stage 3 as described below.
been prepared in accordance with the From January 1, 2018 the Bank has GSRXVEGXYEP GEWL Ǽ S[W
“Provisions for the Disclosures of Consolidated ETTPMIH .+7 XS GPEWWMJ] MXW ǻ RERGMEP • Stage 1: ;LIR PSERW EVI ǻ VWX VIGSKRMWIH
Financial Highlights of Domestic Banking EWWIXW (PEWWMǻ GEXMSR ERH WYFWIUYIRX SPPI the Company recognizes an allowance
Institutions” as issued by the Central Bank of QIEWYVIQIRX SJ XLI ǻ RERGMEP EWWIXW +SV XLI ǻ VWX WXIT SJ MXW GPEWWMǻ GEXMSR TVSGIWW based on 12mECLs. Stage 1 loans also include
Curaçao & Sint Maarten (CBCS). Our statutory depend on: the Bank assesses the contractual terms of facilities where the credit risk has improved,
GSRWSPMHEXIH ǻ RERGMEP WXEXIQIRXW JVSQ [LMGL ǻ RERGMEP EWWIXW XS MHIRXMJ] [LIXLIV XLI] QIIX and the loan has been reclassified from
these Consolidated Financial Highlights have I. The Bank’s business model for managing the SPPI test. Stage 2.
been derived, are prepared in accordance the asset; and • Stage 2: ;LIR E PSER LEW WLS[R E WMKRMǻ GERX
with International Financial Reporting Ƶ5VMRGMTEPƶ JSV XLI TYVTSWI SJ XLMW XIWX MW HIǻ RIH increase in credit risk since origination, the
Standards (“IFRS”)’ and are available at the II. 8LI GEWL Ǽ S[ GLEVEGXIVMWXMGW SJ EW XLI JEMV ZEPYI SJ XLI ǻ RERGMEP EWWIX EX MRMXMEP Company records an allowance for the
Bank. The accounting policies have been the asset. recognition and may change over the life of LTECLs. Stage 2 loans also include facilities,
applied consistently during the year except XLI ǻ RERGMEP EWWIX I K MJ XLIVI EVI VITE]QIRXW where the credit risk has improved, and the
JSV XLI MQTEGX SJ XLI ǻ VWX XMQI EHSTXMSR SJ 'EWIH SR XLIWI JEGXSVW XLI 'ERO GPEWWMǻ IW MXW of principal or amortisation of the premium / PSER LEW FIIR VIGPEWWMǻ IH JVSQ XEKI
.+7 EW WIX FIPS[ 8LI GSRWSPMHEXIH ǻ RERGMEP debt instruments into one of the following two HMWGSYRX 8LI QSWX WMKRMǻ GERX IPIQIRXW SJ • Stage 3: Loans considered credit-impaired.
statements are presented in thousands of measurement categories: interest within a lending arrangement are The Company records an allowance for the
Netherlands Antillean Guilders (ANG) and typically the consideration for the time value LTECLs.
all values are rounded to the nearest ANG • Amortised cost: Assets that are held for of money and credit risk.
thousands, except when otherwise indicated. GSPPIGXMSR SJ GSRXVEGXYEP GEWL Ǽ S[W [LIVI The key elements of the ECL calculations are
XLSWI GEWL Ǽ S[W VITVIWIRX WSPIP] TE]QIRXW The Bank considered whether the contractual EW JSPPS[W
The statements have been prepared on the of principal and interest (‘SPPI’), and that are GEWL Ǽ S[W EVI GSRWMWXIRX [MXL E FEWMG PIRHMRK • PD The Probability of Default is an estimate
LMWXSVMGEP GSWX FEWMW I\GITX JSV ǻ RERGMEP EWWIXW HIWMKREXIH EX JEMV ZEPYI XLVSYKL TVSǻ X ERH arrangement i.e. interest includes only of the likelihood of default over a given time
EX JEMV ZEPYI XLVSYKL TVSǻ X SV PSWW ERH ǻ RERGMEP loss (FVPL), are measured at amortised cost. consideration for the time value of money, horizon. A default may only happen at a
assets that are measured at amortized cost. The carrying amount of these assets is GVIHMX VMWO SXLIV FEWMG PIRHMRK VMWOW ERH E TVSǻ X certain time over the assessed period, if the
Historical cost is generally based on the fair adjusted by any expected credit loss margin that is consistent with a basic lending facility has not been previously derecognized
value of the consideration given in exchange allowance recognised and measured as arrangement and concluded that the portfolio and is still in the portfolio.
for good and services. described below. Interest income from these of loans and advances passed the SPPI test. • EAD The Exposure at Default is an estimate
ǻ RERGMEP EWWIXW MW MRGPYHIH MR MRXIVIWX ERH of the exposure at a future default date,
• CHANGES IN ACCOUNTING POLICIES WMQMPEV MRGSQI YWMRK XLI IǺ IGXMZI MRXIVIWX %åųåÏŅčĹĜƋĜŅĹ Úƚå ƋŅ ŸƚÆŸƋ±ĹƋĜ±Ĭ ĵŅÚĜĀ ϱƋĜŅĹ considering expected changes in the
IFRS 9 replaces IAS 39 for annual periods on rate method. of terms and conditions exposure after the reporting date, including
or after January 1, 2018. The Bank has not 8LI (SQTER] HIVIGSKRM^IW E ǻ RERGMEP EWWIX repayments of principal and interest, whether
restated comparative information for 2017 • +EMV ZEPYI XLVSYKL TVSǻ X ERH PSWW Ƹ+:51ƹ such as a loan to a customer, to facilitate changes scheduled by contract or otherwise, expected
JSV ǻ RERGMEP EWWIXW MR XLI WGSTI SJ .+7 Assets that do not meet the criteria for to the original loan agreement or arrangement drawdowns on committed facilities, and
Therefore, the comparative information for amortised cost are measured at fair value HYI XS [IEORIWWIW MR XLI FSVVS[IVƶW ǻ RERGMEP accrued interest from missed payments.
2017 is reported under IAS 39 and is not through profit and loss. These assets are position and/or non-repayment of the debt as • LGD The Loss Given Default is an estimate
comparable to the information presented for unquoted equity securities that are held for arranged, and terms and conditions have been of the loss arising in the case where a default
)MǺ IVIRGIW EVMWMRK JVSQ XLI EHSTXMSR trading purposes. A gain or loss on such an restructured to the extent that, substantially, it occurs at a given time. It is based on the
of IFRS 9 have been recognized directly in equity investment is subsequently measured becomes a new loan, with the difference difference between the contractual cash
retained earnings as of January 1, 2018. The EX JEMV ZEPYI XLVSYKL TVSǻ X SJ PSWW .RXIVIWX recognised as an impairment loss. The newly Ǽ S[W HYI ERH XLSWI XLEX XLI PIRHIV [SYPH
ǻ VWX XMQI EHSTXMSR SJ .+7 EW TIV /ERYEV] MRGSQI JVSQ XLIWI ǻ RERGMEP EWWIXW MW MRGPYHIH VIGSKRMWIH PSERW EVI GPEWWMǻ IH EW XEKI JSV expect to receive, including from the
1, 2018 led to a remeasurement of the credit MR MRXIVIWX MRGSQI YWMRK XLI IǺ IGXMZI MRXIVIWX ECL measurement purposes. realization of any collateral. It is usually
loss provision (increase) on loans and rate method. expressed as a percentage of the EAD.
advances of ANG 7.4 million and a decrease When assessing whether to derecognize a
MR VIXEMRIH IEVRMRKW SJ &3, QMPPMSR RIX Business model assessment loan to a customer, amongst others, the In its ECL model, the Bank relies on a broad
deferred tax). The measurement basis of The business model reflects how the Bank Company considers the following factors: range of forward looking information as
financial assets and financial liabilities manages the assets in order to generate cash economic inputs such as GDP growth and
(amortized cost or fair value) within the scope Ǽ S[W 8LEX MW [LIXLIV XLI 'EROƶW SFNIGXMZI MW - Change in currency of the loan unemployment rates. The inputs and models
SJ .+7 LEW RSX FIIR WMKRMǻ GERXP] MQTEGXIH WSPIP] XS GSPPIGX XLI GSRXVEGXYEP GEWL Ǽ S[W - Change in counterparty used for calculating ECLs may not always
compared to the measurement basis applied from the assets or is to collect both the .J XLI QSHMǻ GEXMSR MW WYGL XLEX XLI MRWXVYQIRX capture all the characteristics of the market at
under IAS 39. GSRXVEGXYEP GEWL Ǽ S[W ERH GEWL Ǽ S[W EVMWMRK would no longer meet the SPPI criteria XLI HEXI SJ XLI ǻ RERGMEP WXEXIQIRXW

.3)*5*3)*38 &9).847ƶ 7*5478 on the Consolidated highlights in accordance with the Provisions
for the Disclosure of Consolidated Financial
Financial Highlights of :.)&34:& '&30 3: Highlights of Domestic Banking Institutions, as
set by the CBCS.
INDEPENDENT AUDITOR’S REPORT ON THE (SRWSPMHEXIH ǻ RERGMEP LMKLPMKLXW HEXIH ǻ RERGMEP WXEXIQIRXW HSIW RSX GSZIV XLI
AUDIT OF THE CONSOLIDATED FINANCIAL The accompanying consolidated financial other information and we do not express any Auditor’s responsibilities
HIGHLIGHTS highlights do not contain all the disclosures form of assurance conclusion thereon. Our responsibility is to express an opinion on
required by International Financial Reporting In connection with our audit of the consoli- whether the accompanying consolidated
Opinion Standards. Reading the accompanying HEXIH ǻ RERGMEP WXEXIQIRXW SYV VIWTSRWMFMPMX] ǻ RERGMEP LMKLPMKLXW EVI GSRWMWXIRX MR EPP QEXI
The accompanying consolidated financial GSRWSPMHEXIH ǻ RERGMEP LMKLPMKLXW ERH SYV VITSVX is to read the other information and, in doing rial respects, with the audited consolidated
highlights, which comprise the consolidated thereon, therefore, is not a substitute for reading so, consider whether the other information is ǻ RERGMEP WXEXIQIRXW SJ XLI 'ERO FEWIH SR SYV
balance sheet as at 31 December 2018 and XLI EYHMXIH GSRWSPMHEXIH ǻ RERGMEP WXEXIQIRXW materially inconsistent with the consolidated procedures, which were conducted in accor-
consolidated income statement for the year of the Bank and our auditor’s report thereon. ǻ RERGMEP WXEXIQIRXW SV SYV ORS[PIHKI SFXEMRIH dance with International Standard on Auditing
then ended and related notes, are derived from in the audit or otherwise appears to be mate- (ISA) 810 (Revised),
XLI EYHMXIH GSRWSPMHEXIH ǻ RERGMEP WXEXIQIRXW 8LI EYHMXIH GSRWSPMHEXIH ǻ RERGMEP rially misstated, as is required by Book 2 of the Engagements to Report on Summary Financial
of Vidanova Bank N.V. (“the Bank”) for the year statements and our auditor’s report thereon Curaçao Civil Code. If, based on the work we Statements.
ended 31 December 2018. ;I I\TVIWWIH ER YRQSHMǻ IH EYHMX STMRMSR SR have performed, we conclude that there is a
In our opinion, the accompanying consolidated XLI GSRWSPMHEXIH ǻ RERGMEP WXEXIQIRXW SJ material misstatement of this other information, Curaçao, May 31, 2019
ǻ RERGMEP LMKLPMKLXW EVI GSRWMWXIRX MR EPP QEXIVMEP the Bank in our auditor’s report dated 31 May we are required to report that fact. We have
VIWTIGXW [MXL XLI EYHMXIH GSRWSPMHEXIH ǻ RERGMEP 2019. nothing to report in this regard. for Ernst & Young Accountants
statements of the Bank, in accordance with the C. Smorenburg RA AA
Provisions for the Disclosure of Consolidated Other information Responsibilities of management for the
Financial Highlights of Domestic Banking Other information consists of the Management’s GSRWSPMHEXIH ǻ RERGMEP LMKLPMKLXW
Institutions, as set by the Central Bank of Curaçao Report. Management is responsible for the Management is responsible for the preparation
and Sint Maarten (“CBCS”). other information. Our opinion on the consoli- SJ XLI EGGSQTER]MRK GSRWSPMHEXIH ǻ RERGMEP