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10                                                 ADVERTENTIE                      Antilliaans Dagblad Woensdag 12 april 2017



       FirstCaribbean International Bank (Cayman) Limited
       Financial Statements
       For the year ended October 31, 2016 (expressed in thousands of United States dollars)

       MANAGEMENT REPORT                                       CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
       We are pleased to report the results for FirstCaribbean International Bank (Cayman) Limited (“the Bank”) for the year ended October
       31, 2016 pursuant to the Provisions of the Central Bank of Curaçao and Sint Maarten for the Disclosure of Financial Highlights. The   2016  2015
       Bank comprises of branches in the Cayman Islands, British Virgin Islands, Sint Maarten, Aruba and Curacao. The Bank is active in the   Restated *
       local markets of Curacao, Aruba and Sint Maarten through branches of the Bank and services international clients through its   $  $
       subsidiary FirstCaribbean International Bank (Curacao) N.V. At the end of 2016 the Bank opened a full service branch in Aruba   Assets
       ğŲŕŕŲǩńťĭƻƾĿĈƻĈƩƾ‡âŕńƩĿŠĈťƾƻŲğƻ‡ƻƢĈƊƢĈƩĈťƾ‡ƾńǨĈƻŲğĠìĈƻńťƻnjǹżġƐ  Cash and balances with Central Banks  70,399  62,652
                                                               Due from banks                         1,030,771  1,013,555
       The economies in Curacao, Aruba and Sint Maarten demonstrated modest to no economic growth in 2016. Both Curacao and Sint    ÄŝĀǦ†ŹĀǦÄŶÜġ†ġ¨Ā†đŶĀġŤŹŝƋĜÄġŹŤ  12,393  13,261
       E‡‡ƢƾĈťƻƢĈìŲƢüĈüƻ‡ƻüĈĦ‡ƾńŲťƻŲťƻƾĿĈƻ‡ììŲǒťƾƻŲğƻ‡ƻğ‡ŕŕƻńťƻńťƾĈƢť‡ƾńŲť‡ŕƻŲńŕƻƊƢńìĈƩƐƻdĿĈƻĈìŲťŲŠńìƻƩƾ‡ĭť‡ƾńŲťƻńťƻ ǒƢ‡ì‡Ųƻǩ‡Ʃƻì‡ǒƩĈüƻâǯƻ‡ƻ  Other assets  5,325  6,590
       growth in domestic demand offset by a drop in net foreign demand. Public demand was up as a result of an increase in investments,   Taxation recoverable  116  –
       including the construction of the new hospital and the upgrading of the road infrastructure. In Sint Maarten, real GDP expansion in   Investment securities  642,517  652,167
       2016 was driven by private demand only. The increase in private demand was the result of increased investments mitigated by a   Loans and advances to customers  1,650,634  1,633,618
       decline in consumption. By contrast, public demand dropped as both consumption and investment spending by the government
       ìŲťƾƢ‡ìƾĈüƐƻ0ťƻ Ƣǒâ‡ƻĈìŲťŲŠńìƻĭƢŲǩƾĿƻǩ‡ƩƻŕńŠńƾĈüƻüƢńǨĈťƻâǯƻƾĿĈƻńťƾĈťüĈüƻŕ‡ƢĭĈƻńťǨĈƩƾŠĈťƾƻƾŲƻƢĈâǒńŕüƻƾĿĈƻŲńŕƻƢĈĠťĈƢǯƻńťƾŲƻ‡ťƻǒƊĭƢ‡üĈƢƻ  Property and equipment  27,327  22,562
       by CITGO. The positive effects of these activities were however largely mitigated by a sluggish performance in the exports of tourism   Deferred tax assets  240  238
       services throughout the year, as measured by tourism receipts.  Intangible assets               140,806  140,806
                                                               Total assets                            3,580,528   3,545,449
       These economic realities have affected our banking activities and results in 2016 in the Dutch Caribbean but management believes they
       Ŀ‡ǨĈƻüĈŕńǨĈƢĈüƻƩ‡ƾńƩğ‡ìƾŲƢǯƻƢĈƩǒŕƾƩƻğŲƢƻ‡ŕŕƻŲǒƢƻƩƾ‡ŒĈĿŲŕüĈƢƩƐƻFĈƾƻńťìŲŠĈƻ‡ğƾĈƢƻƾ‡Ǯƻǩ‡ƩƻĄĨƶƐĨƻŠńŕŕńŲťƻìŲŠƊ‡ƢĈüƻƾŲƻĄġǹƐżƻŠńŕŕńŲťƻńťƻnjǹżġƐƻƻ  Liabilities
       Contributing to the current year results were; increase in operating expenses as a result of higher regional operational costs as well as    ÄŝĀǦ†ŹĀǦÄŶÜġ†ġ¨Ā†đŶĀġŤŹŝƋĜÄġŹŤŶ  29,394  33,040
       outlays on expansion into the Aruba market; an increase in loan loss impairment due to the extent and timing of anticipated recovery   Customer deposits  2,418,636  2,212,566
       in the Caribbean region; and an increase in net interest income, despite continued margin pressures across the region, due to   Due to other banks  595,163  720,402
       strengthening credit demand and an uplift in interest rates. The Bank maintained strong capital levels with a Total Capital ratio of 16.4%.   Other liabilities  22,988  16,745
       The emphasis for 2017 is to continue to focus on our clients and put them in the center of what we do and deliver sustainable revenue
       growth.                                                 Taxation payable                          320    1,156
                                                               Deferred tax liabilities                  352    378
       In October 2016, a full service branch was opened in Aruba, completing our entry into the Aruba market through the establishment   ZÄŹĀŝÄĜÄġŹŶžÄġÄÜŹŶĮžđĀ醬ĀĮġŤ  3,828  3,782
       of a Retail, Corporate and Wealth Management presence. In 2016 we saw the launch of our Mobile Banking smartphone app to   Total liabilities   3,070,681   2,988,069
       complement internet banking and Automated Banking Machines (ABMs) in our suite of alternate channels. This expanded suite now
       ‡ŕŕŲǩƩƻìŕńĈťƾƩƻƾŲƻâĈƾƾĈƢƻìǒƩƾŲŠńƩĈƻƾĿĈńƢƻ⇻ŒńťĭƻĈǮƊĈƢńĈťìĈƻƾŲƻĠƾƻƾĿĈńƢƻŕńğĈƩƾǯŕĈƐƻuĈƻ‡ŕƩŲƻƢĈťŲǨ‡ƾĈüƻŲǒƢƻ ŲŕĈƻ ‡ǯƻâƢ‡ťìĿƻńťƻSint Maarten   Shareholders' Equity
       and converted that branch into a Loan and Mortgage Center to better service our clients.  Issued capital        294,789          294,789
                                                               Share premium and reserves                   (40,000)          (43,590)
       The Bank remains committed to working with our clients and other stakeholders and in supporting the economic development in the   Retained earnings         255,058          306,181
       Dutch Caribbean.
                                                               Total shareholders’ Equity              509,847  557,380

        0  ƻ'ńƢƩƾ ‡ƢńââĈ‡ťƟƩƻğǒťüƢ‡ńƩńťĭƻĈğğŲƢƾƻğŲƢƻu‡ŕŒƻğŲƢƻƾĿĈƻ ǒƢĈƻƢ‡ńƩĈüƻ‡ƻƢĈìŲƢüƻĄġǹǹ÷ǹǹǹƻ‡ìƢŲƩƩƻƾĿĈƻ ‡ƢńââĈ‡ťƻƢĈĭńŲťƻ‡ťüƻ‡ƾƾƢ‡ìƾĈüƻ
       over 20,000 walkers and runners. The funds raised will go towards the care and support for those in our region living with cancer. In   Total Liabilities and Shareholders' Equity  3,580,528  3,545,449
       the Dutch Caribbean $39,000 was raised to support such local initiatives.
                                                               › ÄŝŹ†ĀġŶ†ĜĮƋġŹŤŶŤûĮǧġŶûÄŝÄŶ¸ĮŶġĮŹŶ¨ĮŝŝÄŤŅĮġ¸ŶŹĮŶŹûÄŶƆǷĸÝŶÜġ†ġ¨Ā†đŶŤŹ†ŹÄĜÄġŹŤŶ†ġ¸ŶŝÄâĨŹŶ†¸ČƋŤŹĜÄġŹŤŶĜ†¸Ä³ŶŝÄÛÄŝŶŹĮŶFĮŹÄŶäŶĀġŶ
       Across the markets we serve in the Dutch Caribbean, CIBC FirstCaribbean continued to support a wide range of causes that raise   the ÄǬŅđ†ġ†ŹĮŝǭŶġĮŹÄŤŶŹĮŶŹûÄŶ¨ĮġŤĮđĀ¸†ŹÄ¸ŶÜġ†ġ¨Ā†đŶûĀéûđĀéûŹŤŋ
       social awareness, as well as maintained its focus on creating lasting social value in the community through projects such as
       Adopt-A-Cause as well as support to organisations that are involved in sports, arts, education and culture.
       We are working hard to satisfy our clients and provide them with the best possible advice and service. The investments we have   CONDENSED CONSOLIDATED STATEMENT OF INCOME
       made and continue to make are positioning the institution for growth as the economies improve.
                                                                                                        2016    2015
       We wish to thank our customers and staff for their support and loyalty during the year.
                                                                                                          $       $
       _________________________      _________________________  Interest and similar income                   92,129              87,658
       Mark McIntyre                  Pim van der Burg         Interest and similar expense                    14,563              12,665
       Managing Director              Managing Director
       FirstCaribbean International Bank (Cayman) Limited      Net interest income                             77,566              74,993
                                                               Fee and Commission income                       15,558              16,373
                                                               Net trading losses                               (1,254)               (263)
       REPORT OF INDEPENDENT AUDITORS
                                                               Realised gains/(losses) from investment securities                1,129                  (97)
                                                               Other operating income                           11,205               10,123
       The Directors
       FirstCaribbean International Bank (Cayman) Limited
                                                               Operating income                                26,638              26,136
       uĈƻĿ‡ǨĈƻ‡ǒüńƾĈüƻƾĿĈƻ‡ììŲŠƊ‡ťǯńťĭƻĠť‡ťìń‡ŕƻƩƾ‡ƾĈŠĈťƾƩƻŲğƻ'ńƢƩƾ ‡ƢńââĈ‡ťƻ0ťƾĈƢť‡ƾńŲť‡ŕƻ ‡ťŒƻƌ ‡ǯŠ‡ťƍƻ?ńŠńƾĈüƻƌƾĿĈƻ ‡ťŒƍƻǩĿńìĿƻ
       ìŲŠƊƢńƩĈƻƾĿĈƻìŲťƩŲŕńü‡ƾĈüƻƩƾ‡ƾĈŠĈťƾƻŲğƻĠť‡ťìń‡ŕƻƊŲƩńƾńŲťƻ‡ƩƻŲğƻKìƾŲâĈƢƻǃż÷ƻnjǹżƶ÷ƻƾĿĈƻìŲťƩŲŕńü‡ƾĈüƻƩƾ‡ƾĈŠĈťƾƻŲğƻńťìŲŠĈ÷ƻìŲťƩŲŕńü‡ƾĈüƻ  Total revenue          104,204            101,129
       Ʃƾ‡ƾĈŠĈťƾƻŲğƻìŲŠƊƢĈĿĈťƩńǨĈƻńťìŲŠĈ÷ƻìŲťƩŲŕńü‡ƾĈüƻƩƾ‡ƾĈŠĈťƾƻŲğƻìĿ‡ťĭĈƩƻńťƻĈƗǒńƾǯƻ‡ťüƻìŲťƩŲŕńü‡ƾĈüƻƩƾ‡ƾĈŠĈťƾƻŲğƻì‡ƩĿƻĦŲǩƩƻğŲƢƻƾĿĈƻ
       ǯĈ‡ƢƻƾĿĈťƻĈťüĈü÷ƻ‡ťüƻ‡ƻƩǒŠŠ‡ƢǯƻŲğƻƩńĭťńĠì‡ťƾƻ‡ììŲǒťƾńťĭƻƊŲŕńìńĈƩƻ‡ťüƻƾĿĈƻƢĈŕ‡ƾĈüƻťŲƾĈƩƐ  Salaries and other employee expenses            23,600              22,063
                                                               Occupancy expenses                                8,374               7,982
       This report is made solely to the directors, as a body. Our audit work has been undertaken so that we might state to the directors   Loan loss impairment/(recovery)             2,961              (1,200)
       those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law,   Other operating expenses  22,127   19,993
       we do not accept or assume responsibility to anyone other than the Company and the directors as a body, for our audit work, for this
       report, or for the opinions we have formed.
                                                               Operating expenses                              57,062             48,838
       Management’s Responsibility for the Financial Statements
       E‡ť‡ĭĈŠĈťƾƻńƩƻƢĈƩƊŲťƩńâŕĈƻğŲƢƻƾĿĈƻƊƢĈƊ‡Ƣ‡ƾńŲťƻ‡ťüƻğ‡ńƢƻƊƢĈƩĈťƾ‡ƾńŲťƻŲğƻƾĿĈƩĈƻìŲťƩŲŕńü‡ƾĈüƻĠť‡ťìń‡ŕƻƩƾ‡ƾĈŠĈťƾƩƻńťƻ‡ììŲƢü‡ťìĈƻǩńƾĿƻ  Net result before tax             47,142              52,291
       International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the
       ƊƢĈƊ‡Ƣ‡ƾńŲťƻŲğƻìŲťƩŲŕńü‡ƾĈüƻĠť‡ťìń‡ŕƻƩƾ‡ƾĈŠĈťƾƩƻƾĿ‡ƾƻ‡ƢĈƻğƢĈĈƻğƢŲŠƻŠ‡ƾĈƢń‡ŕƻŠńƩƩƾ‡ƾĈŠĈťƾƩ÷ƻǩĿĈƾĿĈƢƻüǒĈƻƾŲƻğƢ‡ǒüƻŲƢƻĈƢƢŲƢƐƻ  XŝĮÜŹŶŹ†ǬŶÄǬŅÄġŤÄ                 765                 2,151
       Auditors’ Responsibility                                Net result after tax                            46,377              50,140
       KǒƢƻƢĈƩƊŲťƩńâńŕńƾǯƻńƩƻƾŲƻĈǮƊƢĈƩƩƻ‡ťƻŲƊńťńŲťƻŲťƻƾĿĈƩĈƻìŲťƩŲŕńü‡ƾĈüƻĠť‡ťìń‡ŕƻƩƾ‡ƾĈŠĈťƾƩƻâ‡ƩĈüƻŲťƻŲǒƢƻ‡ǒüńƾƐƻuĈƻìŲťüǒìƾĈüƻŲǒƢƻ‡ǒüńƾƻńťƻ
       accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan
       ‡ťüƻ ƊĈƢğŲƢŠƻƾĿĈƻ ‡ǒüńƾƻƾŲƻ Ųâƾ‡ńťƻ ƢĈ‡ƩŲť‡âŕĈƻ ‡ƩƩǒƢ‡ťìĈƻǩĿĈƾĿĈƢƻƾĿĈƻ ìŲťƩŲŕńü‡ƾĈüƻ Ġť‡ťìń‡ŕƻ Ʃƾ‡ƾĈŠĈťƾƩƻ ‡ƢĈƻ ğƢĈĈƻ ğƢŲŠƻ Š‡ƾĈƢń‡ŕƻ
       misstatement.
                                                               EXPLANATORY NOTES TO THE CONSOLIDATED FINANCIAL HIGHLIGHTS
        ťƻ ‡ǒüńƾƻ ńťǨŲŕǨĈƩƻ ƊĈƢğŲƢŠńťĭƻ ƊƢŲìĈüǒƢĈƩƻƾŲƻ Ųâƾ‡ńťƻ ĈǨńüĈťìĈƻ ‡âŲǒƾƻƾĿĈƻ ‡ŠŲǒťƾƩƻ ‡ťüƻ üńƩìŕŲƩǒƢĈƩƻ ńťƻƾĿĈƻ ìŲťƩŲŕńü‡ƾĈüƻ Ġť‡ťìń‡ŕƻ  2016  2015
       statements.  The procedures selected depend on  the auditors’ judgment, including  the assessment of  the risks of material   I. Assets  $         $
       ŠńƩƩƾ‡ƾĈŠĈťƾƻŲğƻƾĿĈƻìŲťƩŲŕńü‡ƾĈüƻĠť‡ťìń‡ŕƻƩƾ‡ƾĈŠĈťƾƩ÷ƻǩĿĈƾĿĈƢƻüǒĈƻƾŲƻğƢ‡ǒüƻŲƢƻĈƢƢŲƢƐƻ0ťƻŠ‡ŒńťĭƻƾĿŲƩĈƻƢńƩŒƻ‡ƩƩĈƩƩŠĈťƾƩ÷ƻƾĿĈƻ‡ǒüńƾŲƢƻ
       ìŲťƩńüĈƢƩƻńťƾĈƢť‡ŕƻìŲťƾƢŲŕƻƢĈŕĈǨ‡ťƾƻƾŲƻƾĿĈƻĈťƾńƾǯƞƩƻƊƢĈƊ‡Ƣ‡ƾńŲťƻ‡ťüƻğ‡ńƢƻƊƢĈƩĈťƾ‡ƾńŲťƻŲğƻƾĿĈƻìŲťƩŲŕńü‡ƾĈüƻĠť‡ťìń‡ŕƻƩƾ‡ƾĈŠĈťƾƩƻńťƻŲƢüĈƢƻ  Investment securitiesƻŃƻƩĈĈƻťŲƾĈƻġ
       to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the   Available for sale     642,517     652,167
       effectiveness of the entity‘s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the
       reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated   Loans and advances to customers -ƻƩĈĈƻťŲƾĈƻġ
       Ġť‡ťìń‡ŕƻƩƾ‡ƾĈŠĈťƾƩƐ
                                                               Retail Customers                        497,527  470,814
       uĈƻâĈŕńĈǨĈƻƾĿ‡ƾƻƾĿĈƻ‡ǒüńƾƻĈǨńüĈťìĈƻǩĈƻĿ‡ǨĈƻŲâƾ‡ńťĈüƻńƩƻƩǒğĠìńĈťƾƻ‡ťüƻ‡ƊƊƢŲƊƢń‡ƾĈƻƾŲƻƊƢŲǨńüĈƻ‡ƻâ‡ƩńƩƻğŲƢƻŲǒƢƻ‡ǒüńƾƻŲƊńťńŲťƐ  Corporate customers  979,457  1,007,756
                                                               Public sector customers                 201,531  189,647
       Opinion                                                 Total loans and advances                1,678,515     1,668,217
       0ťƻŲǒƢƻŲƊńťńŲť÷ƻƾĿĈƻìŲťƩŲŕńü‡ƾĈüƻĠť‡ťìń‡ŕƻƩƾ‡ƾĈŠĈťƾƩƻƊƢĈƩĈťƾƻğ‡ńƢŕǯ÷ƻńťƻ‡ŕŕƻŠ‡ƾĈƢń‡ŕƻƢĈƩƊĈìƾƩ÷ƻƾĿĈƻĠť‡ťìń‡ŕƻƊŲƩńƾńŲťƻŲğƻ'ńƢƩƾ ‡ƢńââĈ‡ťƻ  Less allowance for loan losses           (27,881)      (34,599)
       0ťƾĈƢť‡ƾńŲť‡ŕƻ ‡ťŒƻƌ ‡ǯŠ‡ťƍƻ?ńŠńƾĈüƻ‡ƩƻŲğƻKìƾŲâĈƢƻǃż÷ƻnjǹżƶ÷ƻ‡ťüƻńƾƩƻĠť‡ťìń‡ŕƻƊĈƢğŲƢŠ‡ťìĈƻ‡ťüƻńƾƩƻì‡ƩĿƻĦŲǩƩƻğŲƢƻƾĿĈƻǯĈ‡ƢƻƾĿĈťƻĈťüĈüƻ  Net Loans and advances        1,650,634         1,633,618
       in accordance with International Financial Reporting Standards.
                                                               II. Liabilities
                                                               Customer deposits
       December 23, 2016                                       Retail customers                        698,331  669,833
                                                               Corporate customers                        1,720,305         1,542,733
                                                               Total customer deposits                    2,418,636         2,212,566
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