(Jamaica) Limited - FirstCaribbean International Bank

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notes to the Financial Statements Year Ended 31 October 2009 (Expressed in Jamaican dollars unless otherwise indicated) 5. Derivative Financial Instruments The table below shows the fair values of derivative financial instruments recorded as assets or liabilities, together with their notional amounts. The notional amount, recorded gross, is the amount of a derivative’s underlying asset, reference rate or index and is the basis upon which changes in the value of derivatives are measured. The notional amounts indicate the volume of transactions outstanding at the year-end and are indicative of neither the market risk nor the credit risk. Fair Values Contract / notional Amount Assets Liabilities $’000 $’000 $’000 As at 31 October 2009 Derivatives held for trading: Interest rate swaps US$38,302 - (400,343) Foreign exchange forwards US$1,068 14,521 – As at 31 October 2008 Derivatives held for trading: Interest rate swaps US$43,654 – (210,858) As of October 31, 2009 the Bank has positions in the following types of derivatives: Interest Rate Swaps Interest rate swaps are contractual agreements between two parties to exchange movements in interest rates. Foreign Exchange Forward Contracts Forward exchange forward contracts are contractual agreements to buy and sell a specified amount of foreign currency at a future date at an exchange rate fixed at inception of the contract. Derivative financial instruments held or issued for hedging purposes As part of its asset and liability management, the Bank uses derivatives for hedging purposes in order to reduce its exposure to market risks. Fair value hedges are used by the Bank to protect it against changes in the fair value of specific financial assets due to movements in interest rates. The financial assets hedged for interest rate risk include fixed interest rate loans and available-for-sale debt securities, and are hedged by interest rate swaps. During the year, the Bank recognised losses on hedging instruments of $144,414,000 (2008: loss of $160,100,000) and gains on hedged items attributable to the hedged risk of $219,272,000 (2008: $21,700,000), which is included in operating income. The Bank also recognised gains of 31,623,000 as a result of failed hedges and this is included within operating income as these derivatives are classified as trading derivatives upon failure. 40
notes to the Financial Statements Year Ended 31 October 2009 (Expressed in Jamaican dollars unless otherwise indicated) 6. Other Assets The Group The Bank 2009 2008 2009 2008 $’000 $’000 $’000 $’000 Cheques and other items in transit, net 841,990 753,619 117,707 522,312 Prepayments and deferred items 19,057 17,520 18,335 16,967 Due from parent company 77,684 713,069 77,684 713,069 Withholding tax 161,303 80,796 161,303 80,796 Other 87,431 116,093 56,591 56,010 1,187,465 1,681,097 431,620 1,389,154 7. Investment Securities The Group The Bank 2009 2008 2009 2008 $’000 $’000 $’000 $’000 Investment in subsidiary - - 482,900 364,000 Securities available-for-sale: Equity securities – unquoted 11,264 11,264 11,264 11,264 Issued or guaranteed by Government – Treasury bills - 107,917 - 107,917 Local registered stock 252,115 492,775 252,115 492,775 Bonds & debentures 1,934,618 467,960 1,934,618 467,960 Index bonds 69,369 - 69,369 - Other - - - - Balance at end of year 2,267,366 1,079,916 2,267,366 1,443,916 Interest receivable 26,942 21,612 26,942 21,612 2,294,308 1,101,528 2,777,208 1,465,528 41
Page 2 and 3: Corporate Profile .................
Page 4 and 5: Financial Highlights 2009 Earnings
Page 6 and 7: Managing Director Clovis Metcalfe M
Page 8 and 9: 6 Senior Management and Advisors
Page 10 and 11: Our Communities FirstCaribbean Inve
Page 12 and 13: Management’s Discussion and Analy
Page 14 and 15: Total Assets ($’B) Deposits (‘$
Page 16 and 17: 14 Management’s Discussion and An
Page 18 and 19: CharteredÊ Accountants 8 Oliver Ro
Page 20 and 21: Consolidated Balance Sheet As at 31
Page 22 and 23: Consolidated Statement of Income Ye
Page 24 and 25: Balance Sheet As at 31 October 2009
Page 26 and 27: Statement of Changes in Equity Year
Page 28 and 29: Statement of Cash Flow Year Ended 3
Page 30 and 31: notes to the Financial Statements Y
Page 92 and 93:
notes to the Financial Statements Y
Page 94 and 95:
notes to the Financial Statements Y
Page 96 and 97:
94 Ownership Structure
Page 98 and 99:
Notice of Meeting nOTICE IS HEREBY
Page 100 and 101:
98 Notes
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(Jamaica) Limited - FirstCaribbean International Bank

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