FirstCaribbean International Bank Limited

CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended October 31, 2010 (expressed in thousands of United States dollars)
2010 2009
Cash flows from operating activities
Income before taxation $ 169,729 $ 202,182
Loan loss impairment 61,766 43,369
Depreciation of property and equipment 19,822 18,513
Amortisation of intangible assets 2,963 2,963
Net gains on disposals of property and equipment (100) (946)
Net gains on disposals and redemption of investment securities (32,673) (9,697)
Net gains on the repayment of debt securities issued (186) (17,648)
Net hedging (gains)/losses (6,283) 5,062
Share-based payment reserve - (625)
Interest income earned on investment securities (80,527) (110,023)
Interest expense incurred on borrowed funds and debt securities 6,616 11,298
Cash flows from operating profits before changes in operating assets and liabilities 141,127 144,448
Changes in operating assets and liabilities:
-net decrease/(increase) in due from banks 268,214 (328,843)
-net decrease in financial assets at fair value through profit or loss - 536,217
-net decrease/(increase) in loans and advances to customers 272,408 (133,474)
-net (increase)/decrease in other assets (11,548) 14,302
-net decrease in customer deposits (715,588) (537,696)
-net decrease in other liabilities (7,699) (16,510)
Income taxes paid (18,955) (33,000)
Net cash used in operating activities (72,041) (354,556)
Cash flows from investing activities
Purchases of property and equipment (26,198) (14,757)
Proceeds from disposals of property and equipment 944 3,358
Purchases of investment securities (3,031,430) (797,646)
Proceeds from disposals and redemption of investment securities 3,144,214 1,191,691
Interest income received on investment securities 74,818 131,689
Net cash from investing activities 162,348 514,335
Cash flows from financing activities
Net repayments on other borrowed funds and debt securities (86,108) (80,555)
Interest expense paid on other borrowed funds and debt securities (6,816) (12,251)
Dividends paid to equity holders of the parent (89,857) (89,161)
Dividends paid to non-controlling interests (1,783) (2,058)
Net disposal of treasury shares - 500
Net cash used in financing activities (184,564) (183,525)
Net decrease in cash and cash equivalents for the year (94,257) (23,746)
Effect of exchange rate changes on cash and cash equivalents 3,197 (13,767)
Cash and cash equivalents, beginning of year 627,417 664,930
Cash and cash equivalents, end of year (note 10) $ 536,357 $ 627,417
The accompanying notes form part of these financial statements.
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