Clem Labega Square Philipsburg, St. Maarten, Netherlands Antilles ...

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Message from Management THE ECONOMY OF OUR ISLAND The island economy has recorded another booming year with lots of construction and new tourism business activity launched or planned for 2007. This high level of economic activity has certainly created a tougher business environment along with strong competition among the local businesses as new ventures are being established in the new commercial centers. Numerous private real estate operations mentioned in 2005 are being completed and new ones started in 2006 in the areas of Simpsonbay, Cupecoy, Dawn Beach, Oysterpond, Belair, and Colebay. The new Princess Juliana Int. Airport was opened in November 2006, the new Captain Hodge small pier, the second phase of the Philipsburg waterfront promenade, the renovation of the Back street, the round about on the Sucker Garden road, the creation of new parking zones along the salt ponds, the new Telem Building, the new Government Administration Building, the buy back of shares of the harbor company with the approved financing from WIB which in turn will see these funds returned to St Maarten to be invested in Social economic projects; all these construction projects contribute to the economic boom that the island is currently experiencing. The Westin Resort is now open bringing their new stream of visitors to our unique two countries island and we’re seeing time share making room for newly built deluxe Condos being offered for sale at increasingly high prices. Our economy remains highly dependent on tourism with a stable number of visitors arriving by air while we note a slight decrease in the arrivals of cruise passengers and cruise ships. 2006 2005 VISITORS ARRIVING BY AIR 467,804 467,861 CRUISE PASSENGERS ARRIVALS 1,421,645 1,488,537 CRUISE CALLS 609 641 This rapid expansion of business activity coupled to an increase of generated income has stimulated the sale of cars during the last two years creating some serious stress points on the existing roads no longer fit to handle the number of cars moving from one end to the other on an island with such high density and concentration of buildings along the main roads. At the same time the main business areas such as Philipsburg and Simpsonbay require additional parking facilities in order to support continuing successful operations of new and even of the existing businesses. BUSINESS ACTIVITY IN 2006 A Quick scan of our Combined Business activity ( WIB and WIB Int.) amounts X Naf 1000. * Loans net of reserves for possible loan losses OUR BANKING FACILITIES THE WINDWARD ISLANDS BANK LTD. • ANNUAL REPORT 2006 • PAGE 1 2006 2005 Change % TOTAL ASSETS 793,383 642,279 23.52% TOTAL CUSTOMERS DEPOSITS 662,218 543,639 21.81% TOTAL LOANS * 392,944 304,521 29.04% CAPITAL FUNDS 53,195 45,987 15.67% 2006 2005 BRANCHES 7 6 STAFF 210 203 ATM’s 21 14 Loans outstanding less specific allowance for loan losses at year end 2006 stood at Naf. 392,944,000 being 29.04% higher than previous year while Interest Earned on Loans was Naf. 32,547,000 being an improvement of 12.32% over the previous year. Our Net Interest Income showed an increase of 19.09% taking into consideration a decrease of interest rates due to competition on the local credit market and stable high rates of interest served on the International Money markets combined with a 21.81% growth in Customer Deposits. Our Customer Deposits now stand at Naf.662,218,000 against Naf. 543,639,000 of 2005 with a 12.44% increase in Demand Deposits and a 34.57% growth of our Savings and Time Deposits. By improving our market share in the Business sector we have managed to increase our business volumes and transactions increasing our Commissions and Exchange Income by 11.73% scoring an increase of our Total Income of 16.78% while our Total Expense grew by 14.42%. THE MARKET The Bank met its objectives and exceeded its targets by deepening our business relationship with existing and new customers while remaining involved in projects from which new opportunities were derived to promote our products and services. There has been a significant growth in commercial banking activities, while we took on a more conservative but steady focus on our retail banking services such as consumer loans, mortgage loans and issuing of credit cards. Credit demand strengthened more than in 2005 and our sales activity was geared towards making use of the new business developments and opportunities thereby increasing our position in the market while keeping our loan losses at a low level. The year 2006 has been another year with fierce competition in a rapidly growing and continued dedication to our policy of good corporate and social responsibility with a strong involvement in the needs of our changing community, has surely convinced the readers of the Daily Herald to elect The Windward Islands Bank for the 3rd consecutive year as “Best Bank of the year”. We will be organizing more sales activities with our private customers to promote our electronic banking services WIB@Home, WIB Direct and WIB Direct Business which have shown good increases and are being well accepted by our Business customers in particular for executing local as well as international transfers. Salary account payments supporting the use of our numerous ATM’s throughout the island were the principal cause for the high volumes recorded in 2006. WIB @ HOME In 2006 we have successfully implemented the LUC system (Loan Underwriting Center) which is a predictive credit scoring model increasing the productivity and efficiency while adding proper assessment of the credit risk, the approval, the processing and management of all commercial loans up to Naf 250,000. Very soon, we hope to introduce similar credit scoring systems for the Retail Banking departments. The active tourist business and WIB’s BankCard Services providing the best merchant service, has recorded an increase of 11.73% in credit card sales volumes processed by our POS system; although this good Dutch side result was somewhat affected by a continuing decrease of the credit card sales volumes on the French side due to closure of many hotels and the bad perception of the high Euro value placing Dutch side businesses in an advantageous position. WIB EVENTS: In early 2006, WIB conducted a Secret Shopper Survey with the purpose of gauging the level of service provided. One of the main elements that came out of this survey is the need for more alternative banking services and outlets to relieve the congestion that occurs in the lobbies of the branches. Throughout 2006, WIB improved its buildings and operations to keep up with developments throughout the Windward Islands such as: • Opening of a WIB representative office on Saba to provide service in a more professional manner. The Bank opened an office as well as an ATM in The Bottom. With the increase of transactions and types of operations this office can be turned into an operational branch in the future. • Opening of the new small airport branch with specific everyday service, including during the holidays to serve our commercial and private customers working in and around the new airport. Introduction of new style depos- THE WINDWARD ISLANDS BANK LTD. • ANNUAL REPORT 2006 • PAGE 2 2006 2005 Number of users 2,048 1,185 Number of transactions 4,310 911 WIBDIRECT GROUP Number of users 171 179 Number of transactions 15,994 5,254 WIBDIRECT BUSINESS Number of users 367 Not in service Number of transactions 1,994 Not in service
itory services separating cash operations from the checks deposits, the latter now being handled as speedy deposits with direct access by the back office staff for further processing. • WIB Car show was again organized with great success to allow clients and the automobile dealers a venue for on the spot financing for car purchasing. Our commercial services were also well promoted at the WIB booth of the first St. Maarten Home Expo held at Maho Reef. • The marine industry is an important contributor to the islands economy. WIB as a Partner in Progress became a sponsor of the St. Maarten Heineken Regatta, The St. Maarten Classic Regatta, The St. Maarten yearly Mega Yacht Boat Show as well as promoting sailing events of traditional locally built sailing boats. • More awareness for WIB’s electronic banking services was created with the launching of the new WIB@home Internet service for Small Businesses. • All our ATM’s are being renovated with a new standardized design and our service was enhanced with the placement of new ATM terminals and introduction of new services: - Launching of the island’s first drive-thru ATM at the Shell Station in Simpsonbay. - Placing additional ATM terminals at Le Grand Marche Bushroad and at the Main Office on the Pondfill. - New ATM at the renovated Capt. Hodge pier- landing for the cruise passengers and at the popular St Rose Arcade - New ATM’s located in the Check-in area and in the Departure Hall of the new Princess Juliana International Airport. - The first ATM in the DawnBeach/ OysterPond area, placed in the Reception lobby of the Oysterbay Beach Hotel. - The successful launching of our Prepaid Visa Money Cards as well as the prepaid Kompa Leon credit card in Naf. available at all our branches. - Launching of GEBE electronic payments systems and installation of POS terminals for payments with Bankomatico or via the internet. WIB AND THE COMMUNITY The Windward Islands Bank continues to play a very important social role by granting over 355 donations and sponsorship to a wide cross section of the community including Social Foundations, Sports events and activities, Youth events, Educational projects, Church activities, Cultural events, etc. A great number of the Bank’s employees are actively involved in the community or occupy a prominent function in Non-Profit organizations including Rotary, Rotaract, Lions, Toastmasters, Reach Out and Touch, Nature Foundation, Journey for Education, Foundation Upkeep Sports Facilities, Women’s Awareness Movement, Business & Professional Women Association, Church and School activities etc. STAFF ACTIVITIES With a total staff of 210, WIB employees are playing an important role, not only in the Bank, but also throughout the community. A Social Committee has been very active in organizing several family events, picnics, beach outings, games and competitions, all to foster better relations with each other. • The organizing of the Employee Appreciation Day allowing our staff to show appreciation to their colleagues and socialize in a different manner than the daily routine was a great success ending with a bus-ride to a Fun night at the Movies. • The Bank has initiated a Marketing Team with the purpose of organizing promotional activities aimed at bringing the Bank and its employees closer to the community and the businesses. • In close cooperation with the Human Resource Department of MCB our staff has received several courses on providing service, dealing with discipline, attitudes and on the financial products and services offered by our Bank. • One of the major social/community projects executed in 2006 was the painting of a home of an elderly paraplegic resident of St.Peters. We thank our customers and staff for without their loyalty, services and business, we could not achieve such good results and contribute so much to the well being of our community. Jan J. Beaujon Managing Director THE WINDWARD ISLANDS BANK LTD. • ANNUAL REPORT 2006 • PAGE 3 Supervisory Board of Directors & Management Team MANAGEMENT TEAM (L-R) J. Bruce Mayers Asst. Managing Director Kelvin Bloyden Asst. Managing Director Jan J. Beaujon Managing Director Carl Snijder Asst. Managing Director BOARD OF SUPERVISORY DIRECTORS In Photo Back Row (L-R) Jan Beaujon Shaffie Wihby Ronald Gomes-Casseres Victor P. Henriquez Anthony Da Costa-Gomez Front Row (L-R) Lionel Capriles II Ms. Brenda Wathey Lionel Capriles Locations MAIN OFFICE Clem Labega Square Philipsburg Tel: 542-2313 Fax: 542-4761 ST. EUSTATIUS BRANCH Mazinga Square St. Eustatius Tel: 0318-2846 / 0318-2847 Fax: 0318-2850 SABA REPRESENTATIVE Mrs. S. Richardson The Bottom, Saba Tel: 0416-5554 SIMPSON BAY OFFICE Airport Road Simpsonbay Tel: 545-3065 Fax: 543-3002 COLE BAY BRANCH Orange Grove Shopping Center Cole Bay Tel: 544-5490 Fax: 544-5491 WIB LOAN CENTER Le Grand Marché Shopping Mall Cul-De-Sac Tel: 542-9536 Fax:542-9258 BUSH ROAD BRANCH Le Grand Marché Shopping Mall Cul-De-Sac Tel: 542-9548 Fax: 542-9547 BANK CARD SERVICES UTS Building Philipsburg Tel: 542-3940 Fax: 542-3257 AIRPORT BRANCH Princess Juliana International Airport Simpson Bay Tel: 546-7761 Fax: 546-7762 THE WINDWARD ISLANDS BANK LTD. • ANNUAL REPORT 2006 • PAGE 4
Page 1: Clem Labega Square Philipsburg, St.
Page 5 and 6: Independent Auditors’ Report To t
Page 7 and 8: ecause of their skill in building a

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