Bahamas - FirstCaribbean International Bank

Notes to the Consolidated Financial Statements
October 31, 2007
(expressed in thousands of Bahamian dollars)
9. Loans and advances to customers (continued)
Movement in provisions for impairment is as follows:
Specific credit Inherent risk
risk provision provision
$ $
Balance, October 31, 2005 (36,640) (6,377)
Doubtful debt expense (4,141) —
Net movement in inherent risk provisions — (1,183)
Recoveries of bad and doubtful debts (1,344) —
Bad debts written off 2,445 —
Balance, October 31, 2006 (39,680) (7,560)
Doubtful debt expense (14,337) —
Net movement in inherent risk provisions — 1,998
Recoveries of bad and doubtful debts (1,252) —
Bad debts written off 19,092 —
Balance, October 31, 2007 (36,177) (5,562)
The average interest yield during the year on loans and advances was 8.3%
(2006 — 8.4%). Impaired loans as at October 31, 2007 amounted to $157,785
(2006 — $123,630). Included in business loans are advances to FCIB Jamaica
totalling $88,754, which are pledged in favour of that bank in support of loans
granted to certain of its customers.
Loan loss impairment is calculated as follows:
2007 2006
$ $
Doubtful debt expense 14,337 4,141
Net movement in inherent risk provisions (1,998) 1,183
Loan loss impairment for the year 12,339 5,324
See Auditors’ Report Page 56.
10. Property and equipment
Equipment
Land and furniture Leasehold Total
buildings and vehicles improvements 2007
$ $ $ $
Cost
Balance, November 1, 2006 18,535 32,386 12,051 62,972
Purchases 246 1,808 50 2,104
Disposals — (51) — (51)
Assets written off — (8) — (8)
Balance, October 31, 2007 18,781 34,135 12,101 65,017
Accumulated depreciation
Balance, November 1, 2006 5,326 22,362 6,075 33,763
Depreciation (Note 21) 281 3,484 586 4,351
Disposals — (51) — (51)
Balance, October 31, 2007 5,607 25,795 6,661 38,063
Net book value,
October 31, 2007 13,174 8,340 5,440 26,954
Equipment
Land and furniture Leasehold Total
buildings and vehicles improvements 2006
$ $ $ $
Cost
Balance, November 1, 2005 20,436 30,524 11,445 62,405
Purchases 450 1,438 84 1,972
Disposals (1,214) (191) — (1,405)
Transfers (1,137) 615 522 —
Balance, October 31, 2006 18,535 32,386 12,051 62,972
Accumulated depreciation
Balance, November 1, 2005 5,282 19,898 5,460 30,640
Depreciation (Note 21) 322 2,614 600 3,536
Disposals (224) (189) — (413)
Transfers (54) 39 15 —
Balance, October 31, 2006 5,326 22,362 6,075 33,763
Net book value,
October 31, 2006 13,209 10,024 5,976 29,209
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