Bahamas - FirstCaribbean International Bank

Management’s Discussion and Analysis
Of Operating Results and Financial Condition for the Fiscal Year Ended October 31, 2007
Summary Balance Sheet
B$(000) 2007 2006
(Restated)
Total Assets
($ millions)
Assets
Cash and due from banks 269,434 366,960
Securities 1,685,468 1,358,846
Loans 2,415,975 2,425,951
Other assets 297,578 272,204
4,668,455 4,423,961
Liabilities and equity
Deposits 3,661,406 3.503,903
Other liabilities 363,717 323,320
Equity 643,332 596,738
4,668,455 4,423,961
Due from Banks
Cash and due from banks declined by a total of $98 million, or 27%, to a
balance of $269 million at October 31, 2007, reflecting an increase in financing
activities.
Securities
Total assets were $4,668 million, an increase of $244 million or 5.5% over
last year. This increase was primarily due to the increase in securities, which
increased $355 million, or 24%. During the year, the bank expanded its options
for investment of surplus U.S. dollars with the addition of a second outsourced
portfolio.
Total loans at year-end were in line with the previous year-end position. While
total mortgages increased by 8%, business loans declined at a comparable rate,
signifying a drop in the volume of business activity.
Total securities increased by $326 million or 24% to $1,685 million at October
31, 2007. The Bank holds both an investment as well as a trading portfolio
of securities. Trading securities are securities that are acquired for the purpose
of generating a profit from short-term-fluctuations in price or dealer’s margin.
Financial assets held for trading are represented in the financial statements as
“Financial assets at fair value through profit or loss” and consist of corporate
bonds, asset backed securities and other investments. The trading securities
increased by $144 million, or 22%, during the year to a balance of $790 million
(excluding accrued interest) at October 31, 2007.
49