FirstCaribbean International Bank (Bahamas) Limited

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Notes to Consolidated Financial Statements For the year ended October 31, 2004 (expressed in thousands of Bahamian dollars) 18. Employee post-retirement obligations (continued) The movement in the net asset (liability) recognised in the balance sheet is as follows: Defined Benefit Pension Plans Post-Retirement Medical Benefits 2004 2003 2004 2003 $ $ $ $ Balance at the beginning of the year 14,610 14,823 (7,998) (7,148) Charge for the year (1,763) (883) (1,416) (981) Contributions paid 320 670 350 131 Balance at the end of the year 13,167 14,610 (9,064) (7,998) The principal actuarial assumptions used were: 2004 2003 Defined benefit pension plans Discount rate 7.0% 6.4% Expected return on plan assets 8.5% 7.9% Future salary increases 5.5% 4.9% Future pension increases 1.8% 2.9% Post-retirement medical benefits Discount rate 6.7% 6.4% Premium escalation rate 5.7% 5.4% Existing retiree age 64 67 The last actuarial valuation of the plan, which governs employees of the former CIBC bank, was conducted as at November 1, 2001 and revealed a fund surplus of $4 million. The employees of the former Barclays Bank previously participated in the defined-benefit scheme of the Barclays Bank (1951) pension plan (“the Barclays plan”). In January 2004, following the completion of the combination of the various plans, the active members of the Barclays plan elected to transfer into a defined benefit pension scheme in the new entity (“the FirstCaribbean plan”). 67
Notes to Consolidated Financial Statements For the year ended October 31, 2004 (expressed in thousands of Bahamian dollars) 18. Employee post-retirement obligations (continued) During the year Barclays Bank PLC transferred to the FirstCaribbean plan assets sufficient to fully fund a ten-year contribution holiday in respect of the employees of the former Barclays Bank. The fair value of the plan assets included in these consolidated financial statements includes the amount that Barclays Bank PLC transferred to the FirstCaribbean plan which was determined on the basis of an actuarial valuation. The present value of funded obligations has been calculated on the basis that non-active members remain in the Barclays plan, which will continue to fund all pension payments for these members. The pension obligation to non-active members was not transferred into FirstCaribbean International Bank (Bahamas) Limited, so this obligation is not reflected in these consolidated financial statements. 19. Related party transactions Interest income includes $17.5 million (2003: $17.2 million) and interest expense includes $3.9 million (2003: $4.4 million) earned from and paid to related entities. In the normal course of business the parent companies provide banking and support services, for which $2.3 million (2003: $3.3 million) was charged during the period. Deposits maintained with other CIBC and Barclays entities amounted to $699 million (2003: $1,028 million). Non-interest income includes $10 million (2003: $10 million) from Barclays Bank PLC as an incentive for the Bank to retain its placement balance with Barclays Capital. 20. Contingent liabilities and commitments The Bank conducts business involving guarantees, performance bonds and indemnities, which are not reflected in the balance sheet. At the balance sheet date the following contingent liabilities exist: 2004 2003 $ $ Contingent liability on letters of credit 9,897 35,179 Loan commitments 254,717 214,243 Contingent liability on guarantees and indemnities 7,757 11,722 272,371 261,144 68
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Vision To create the Caribbean’s
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Notice of Meeting Annual Meeting No
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Upon us now is a time of focus. In
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Ownership Structure 7
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Board of Directors Sharon Brown Man
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12 The Executive Leadership Team Ba
Page 15 and 16: 14 Michael Mansoor Executive Chairm
Page 17 and 18: 16 Charles Pink Chief Executive Off
Page 19 and 20: Chief Executive Officer’s Report
Page 21 and 22: 20 Sharon Brown Managing Director
Page 23 and 24: Managing Director’s Report with o
Page 25 and 26: Management’s Discussion and Analy
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Page 29 and 30: Building the Brand
Page 31 and 32: Revitalising in order to grow The f
Page 33 and 34: Building the ‘Deal Pipeline’ Ou
Page 35 and 36: Growing Superior Performance Levera
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Page 39 and 40: Towards a New Partnership with Cust
Page 41 and 42: The Brand that Lives in our People
Page 43 and 44: One Caribbean Platform, One Team...
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Page 47 and 48: Consolidated Statement of Income Fo
Page 49 and 50: Consolidated Statement of Cash Flow
Page 51 and 52: Notes to Consolidated Financial Sta
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FirstCaribbean International Bank (Bahamas) Limited

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