Bahamas - FirstCaribbean International Bank

Notes to the Consolidated Financial Statements
October 31, 2007
(expressed in thousands of Bahamian dollars)
28. Financial risk management (continued)
F. Liquidity risk (continued)
Maturities of assets and liabilities
0-3 3-12 1-5 Over 5
October 31, 2007 months months years years Total
$ $ $ $ $
Assets
Cash and balances
with central bank 116,808 — — — 116,808
Due from banks 152,626 — — — 152,626
Derivative financial
instruments 36,713 — — — 36,713
Financial assets at
fair value through
profit or loss 792,307 — — — 792,307
Other assets 32,662 — — — 32,662
Investment securities 102,310 108,915 459,387 222,549 893,161
Loans and advances
to customers 243,785 260,733 397,769 1,513,688 2,415,975
Property and
equipment — — — 26,954 26,954
Retirement benefit
asset — — — 13,502 13,502
Goodwill — — — 187,747 187,747
Total assets 1,477,211 369,648 857,156 1,964,440 4,668,455
Liabilities
Customer deposits 3,116,341 497,720 47,092 253 3,661,406
Derivative financial
instruments 30,974 — — — 30,974
Debt securities in issue 620 — 20,000 — 20,620
Other borrowed funds 186,933 91,238 — — 278,171
Other liabilities 30,138 — — — 30,138
Retirement benefit
obligations — — — 3,814 3,814
0-3 3-12 1-5 Over 5
months months years years Total
October 31, 2006 $ $ $ $ $
(Restated)
Total assets 1,442,081 441,335 1,007,379 1,533,166 4,423,961
Total liabilities 3,272,143 376,205 13,076 165,799 3,827,223
Net on balance
sheet position (1,830,062) 65,130 994,303 1,367,367 596,738
Credit commitments 25,953 409,186 — — 435,139
The matching and controlled mismatching of the maturities and interest rates
of assets and liabilities is fundamental to the management of the Bank. It is
unusual for banks ever to be completely matched since business transacted is
often of uncertain term and different types. An unmatched position potentially
enhances profitability, but also increases the risk of losses.
The maturities of assets and liabilities and the ability to replace, at an acceptable
cost, interest-bearing liabilities as they mature, are important factors in assessing
the liquidity of the Bank and its exposure to changes in interest rates and
exchange rates.
Liquidity requirements to support calls under guarantees and standby letters
of credit are considerably less than the amount of the commitment because
the Bank does not generally expect the third party to draw funds under the
agreement. The total outstanding contractual amount of commitments to
extend credit does not necessarily represent future cash requirements, since
many of these commitments will expire or terminate without being funded.
Total liabilities 3,365,006 588,958 67,092 4,067 4,025,123
Net on balance
sheet position (1,887,795) (219,310) 790,064 1,960,373 643,332
Credit commitments 107,714 255,229 647 — 363,590
See Auditors’ Report Page 56.
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