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) 24. Use of financial instruments (continued) e) Liquidity risk (continued) 1-3 3-12 1-5 Over 5 months months years years Total $ $ $ $ $ Liabilities Deposits 1,644,616 340,655 5,712 716,638 2,707,621 Other liabilities 3,856 24,193 – 221 28,270 Total liabilities 1,648,472 364,848 5,712 716,859 2,735,891 Net on balance sheet position (370,670) 7,948 606,349 281,465 525,092 Off balance sheet net notional position – 17,654 – – 17,654 Credit commitments 19,571 235,146 – – 254,717 As at October 31, 2003 Total assets 1,257,421 352,045 442,473 1,161,361 3,213,300 Total liabilities 2,340,724 363,284 5,554 2,998 2,712,560 Net on balance sheet position (1,083,303) (11,239) 436,919 1,158,363 500,740 Off balance sheet net notional position – 46,901 – – 46,901 Credit commitments 15,580 198,663 – – 214,243 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. 75
Notes to Consolidated Financial Statements For the year ended October 31, 2004 (expressed in thousands of Bahamian dollars) 24. Use of financial instruments (continued) f) Fair values of financial assets and liabilities Due from other banks Due from other banks includes interbank placements and items in the course of collection. The fair value of floating rate placements and overnight deposits is their carrying amount. The estimated fair value of fixed interest-bearing deposits is based on discounted cash flows using prevailing money market interest rates for debts with similar credit risk and remaining maturity. Loans and advances to customers Loans and advances are net of specific and other provisions for impairment. The estimated fair value of loans and advances represents the discounted amount of estimated future cash flows expected to be received. Expected cash flows are discounted at current market rates to determine fair value. Investment securities Investment securities include only interest-bearing assets held-to-maturity, as assets available-forsale are now measured at fair value. Fair value for held-to-maturity assets are based on market prices or broker/dealer price quotations. Where this information is not available, fair value has been estimated using quoted prices for securities with similar credit, maturity and yield characteristics, or in some cases by reference to the net tangible asset backing of the investee. Deposits and borrowings The estimated fair value of deposits with no stated maturity, which includes non-interest-bearing deposits, is the amount repayable on demand. The estimated fair value of fixed interest-bearing deposits and other borrowings without quoted market price is based on discounted cash flows using interest rates for new debts with similar remaining maturity. 76
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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
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14 Michael Mansoor Executive Chairm
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16 Charles Pink Chief Executive Off
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Chief Executive Officer’s Report
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20 Sharon Brown Managing Director
Page 23 and 24: Managing Director’s Report with o
Page 25 and 26: Management’s Discussion and Analy
Page 27 and 28: Management’s Discussion and Analy
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
Page 37 and 38: More Solutions for International Cl
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...
Page 45 and 46: PricewaterhouseCoopers Providence H
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
Page 73: Notes to Consolidated Financial Sta
Page 77 and 78: FirstCaribbean International Bank (
Page 79 and 80: FirstCaribbean International Bank (
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FirstCaribbean International Bank (Bahamas) Limited

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