1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 1
Annual Report
2009 Performance... Built On A Heritage Of Community And Care!
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 3
1st National Bank presents its 2010 Annual Report with the same commitment with which we were birthed so many years ago as the nation’s first true indigenous bank, performing since then and giving back to the national community in so many ways. We do so with pride and with the humility of knowing how much more still remains to be done. Our theme for this report, PERFORMANCE... BUILT ON A HERITAGE OF COMMUNITY AND CARE!, speaks to our ongoing commitment to the very founding principles that have charted our course this past year and every one gone before and still to come. We reflect on the one-on-one commitment through the cover of our report with just some of the thousands of faces and places with which we have built relationships, coming together to form the essence of who we are as a corporate entity. Our past year in many ways reflects this same consistent approach. In the area of
altruism, we continue to support many worthy causes, positively impacting on youth, sport, culture and national skills development. Our commitment to always seeking and making available the appropriate industry innovations saw us launching an array of technology tools to keep our customers at the leading edge of international convenience banking. But our local sensitivity and special relationship with our communities was also further deepened through our special banking hours and deep community-level relationships and support. Our theme of performance and the rock of heritage on which it is based, resonates at the highest levels of the Bank and as an institution of development, we present this report as a virtual national document for all. From the one-on-one personal relationships with each customer, to the surrounding community and national community, we perform to our utmost, to never fail to be first to offer our best to our country.
Annual Report
2009 Performance... Built On A Heritage Of Community And Care!
Vision Statement 1st National Bank St. Lucia Limited is the first choice financial services provider and an outstanding corporate citizen, achieving excellent customer satisfaction and sustained financial growth.
Mission Statement To contribute to national development by creating value for shareholders through the provision of financial services to local, regional and international individuals and corporate clients. This will be achieved by creating value and satisfaction for our customers through excellent service driven by a highly skilled, empowered, visionary and inspired team using appropriate technology, supported by good corporate governance.
Core Values Integrity • Professionalism • Confidentiality
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 5
ANNUAL REPORT 2009
Contents 6
Notice of Meeting
7
Corporate Data
8
Financial Highlights
12 Board of Directors’ Report 16 Board of Directors 20 Managing Director’s Report 34 Management Team 38 Management Organization Chart 39 Auditor’s Report 40 Balance Sheet 41 Statement of Income 43 Statement of Changes in Equity 44 Statement of Cash Flows 45 Notes to the Financial Statements
Notice Of Meeting Notice is hereby given that the 72nd Annual Meeting of Shareholders of the 1st National Bank St. Lucia Limited will be held at the National Insurance Corporation Conference Room, Francis Compton Building, Waterfront, Castries, on Thursday, 29th April, 2010 at 5:00 p.m. AGENDA 1. 2. 3. 4. 5. 6. 7. 8.
Tabling of Proxies To confirm the Minutes of the Annual Meeting of Shareholders of 30th April, 2009 Matters arising out of the Minutes To consider and adopt the 2009 Report of the Board of Directors To consider and adopt the Auditor’s Report to the Shareholders To consider and adopt the Audited Financial Statements for the year ended 31st December, 2009 To sanction a dividend of $0.40 cents per share as recommended by the Board of Directors To elect three Directors. The Directors retiring by rotation and who are eligible for re-election are:t .ST $IBSNBJOF (BSEOFS t .S $ZSJM .BUUIFX t .S -JPOFM +BNFT NOTE: Nominations may be made either in writing or on the prescribed forms and must reach the Bank’s registered office at least five (5) days before the day of holding the meeting.
9. To appoint and fix the remuneration of the Auditor. NOTE: A Shareholder entitled to attend the meeting and vote may appoint a proxy to vote in his/her place. A person appointed by proxy need not be a shareholder. The instrument appointing a proxy shall be in writing under the hand of the appointer or of his/her attorney duly authorized in writing, or if such appointer is a corporation, either under its common seal or under the hand of an officer or authority so authorized. The instrument appointing a proxy and the power of attorney or other authority if any under which it is signed or a notarially certified copy of that power of authority shall be deposited at the registered office of THE COMPANY not less than forty eight hours before the time for holding the meeting at which the person named in the instrument proposes to vote and in default the instrument of proxy shall not be treated as valid. NOTICE is also hereby given that the Share Transfer Book of the Bank will be closed from 16th April, 2010 to 29th April, 2010 both dates inclusive.
BY ORDER OF THE BOARD Beryl Carasco-Alleyne Corporate Secretary Performance... Built On A Heritage Of Community And Care! | PG 6
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 7
Corporate Data HEAD OFFICE
BUREAU DE CHANGE
Reduit, Gros Islet P. O. Box 168, Castries Tel : (758) 455 7000 Fax : (758) 453 1630
SLASPA Ferry Terminal Faux a Chaux, Castries Tel : (758) 453 0041 Fax: (758) 451 8482
CASTRIES BRANCH
SWIFT: LUOBLCLC Email: manager@1stnationalbankslu.com Website : www.1stnationalbankonline.com
#21 Bridge Street, P. O. Box 168, Castries Tel : (758) 455 7000 Fax : (758) 453 1630
SUB BRANCH
J.Q’s Mall Rodney Bay, Gros Islet Tel : (758) 452 8882/3 Fax: (758) 452 8884
SUB BRANCH
Marina Village Marigot Bay, Castries Tel: (758) 458 3744 Fax: (758) 458 3638
SUB BRANCH
DIRECTORS
Charmaine Gardner President Cyril Matthew 1st Vice President Ferrel V. Charles 2nd Vice President Brenda Floissac-Fleming Nigel Fulgence Joseph Maxwell Christian Husbands Lionel James Johnson Cenac Tedburt Theobalds
Commercial Street P.O. BOX 342 Vieux Fort Tel : (758) 454 6213 Fax : (758) 454 6137
G. Carlton Glasgow Managing Director
BUREAU DE CHANGE
AUDITOR
George F.L. Charles Airport Vigie, Castries Tel : (758) 453 1683 Fax: (758) 451 8482
SOLICITORS
Floissac, Fleming & Associates
PricewaterhouseCoopers
Financial Highlights 2009 $ ‘ 000
2008 $ ‘ 000
2007 $ ‘ 000
2006 $ ‘ 000
2005 $ ‘ 000
Interest income
30,587
29,681
25,403
24,015
18,332
Interest expense
11,883
10,763
9,046
7,303
6,342
Net interest income
18,704
18,918
16,357
16,712
11,990
4,866
4,056
5,646
4,468
3,479
11,622
10,515
9,028
8,157
7,039
9,114
9,096
10,539
9,291
5,992
365,377
329,405
297,510
269,514
223,758
7,971
7,971
7,971
6,877
5,599
66,204
56,239
49,339
39,077
29,591
436,072
390,152
351,468
314,392
260,272
5,000
5,000
5,000
4,635
4,209
$
$
$
$
$
Dividends Declared
0.40
0.40
0.40
0.35
0.30
Earnings per share
1.82
1.82
2.17
2.10
1.47
13.24
11.25
9.87
8.43
7.03
Return on Assets
2.09%
2.33%
3.00%
2.96%
2.30%
Return on Equity
13.77%
16.17%
21.36%
23.78%
20.25%
Net Interest Margin
4.29%
4.85%
4.65%
5.32%
4.61%
Productivity
49.3%
45.8%
41.0%
38.5%
45.5%
95
94
90
82
80
OPERATING RESULTS
Other income Other operating expenses After tax income BALANCE SHEET DATA Customer deposits Common shareholder equity Total shareholder equity Total Assets Common shares issued & paid (‘000) PERFORMANCE
Book Value
Average Employees
Performance... Built On A Heritage Of Community And Care! | PG 8
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 9
12% Increase in Total Assets over 2008
49.3% 11% Cost Efficiency
Increase in Customer Deposits over 2008
+ $46
TOTAL ASSETS
+ $36
CUSTOMER DEPOSITS
+ $33
TOTAL LOANS
Assets—Increase in Millions
Deposits—Increase in Millions
Loans—Increase in Millions (net)
2008 = $390 million 2009 = $436 million TARGET —> $425 million
2008 = $329 million 2009 = $365 million TARGET —> $353 million
2008 = $248 million 2009 = $281 million
TARGET —> $262 million
Performance... Built On A Heritage Of Community And Care! | PG 10
^ ^ ^
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 11
COST EFFICIENCY BANK – 49.3% INDUSTRY AVERAGE – 60%
CAPITAL ADEQUACY RATIO BANK – 21% ECCU – 19%
Board of Directors’ Report
Performance... Built On A Heritage Of Community And Care! | PG 12
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 13
0VS NFBTVSFE SFTQPOTFT UP UIF mOBODJBM DSJTJT ZJFMEFE B SFTVMU CFUUFS UIBO DPVME IBWF CFFO BOUJDJQBUFE BU UIJT UJNF MBTU ZFBS Due diligence, sound corporate governance and conservative banking practices are catch phrases that have become almost clichÊ in the halls of the 1st National Bank. These principles have enabled our Bank to survive the economic vicissitudes of the last twelve months and a most serious global recession. The Bank has maintained a profit after tax of $9.1 million and a 12% growth in the balance sheet position, in comparison to the previous financial year. Strict adherence to the historic 1st National Bank creed of sound financial banking principles, together with an inestimable amount of hard work by your Board, your Senior Management right through to staff members, has enabled us to reach this present position. Underlying the balance sheet growth is the strategy to maintain a strong Tier 1 capital adequacy ratio of over 15% to foster shareholder and public confidence; we are gratified with the result of 21%. Moreover, the Bank’s overall condition has improved, a fact confirmed by the Eastern Caribbean Central Bank after their 2009 examination. Book value per share has grown from $11.25 to $13.24 and the earnings per share are stable at $1.82. Customer service excellence is central to all our strategic
initiatives. Our recruitment process ensures that our human resources have the right aptitude and skill set, augmented by continuous training to drive service delivery. We remain focussed on the strategy to use appropriate modern information technology to deliver that level of service. Mobile banking, a new addition to our suite of products was well received, with new features to be added in 2010. Additionally, the Bank plans to introduce its own branded debit and credit cards to enhance accessibility of funds to customers. Our plans to enhance our customers’ banking experience are progressing satisfactorily. These include: • the commissioning of a new Sub - Branch to be located in Choc Bay during the second quarter of 2010, • the construction of a three storey office building on #18 Bridge Street, • the refurbishment of the main branch at #21 Bridge Street, • the expansion of the Rodney Bay Sub - Branch. Over the years, we have built a strong corporate social presence by the support of development projects focussing on youth, education, the arts and the environment. At the
recently held St. Lucia Business Awards, the Bank received three awards in recognition of the work done during 2009 in the areas of Corporate Social Responsibility, Innovation and Service Excellence. Indeed, some members of the Board of Directors, management and staff engage in philanthropic and voluntary work on behalf of the Bank.
GOVERNANCE
DIVIDEND
Good corporate governance remains a priority for the Board of Directors as it is central to the integrity of the Bank. The Corporate Governance Policy which is now complete, covers matters of responsibilities, powers and structure of the Board of Directors, terms of reference for each Board Committee, code of conduct for Directors and minimum requirements to meet fit and proper criteria to serve as a Director on the Board.
The Board recommends maintaining a stable dividend payout of $0.40 per share, resulting in a dividend yield of 13%. This represents a total payout of $2 million and constitutes 22% of profit after tax. This dividend payout is compatible with internal policies and regulatory guidelines and takes into account our growth strategies, which include capital expenditure on our physical plant.
The composition of the Board of Directors remained unchanged during 2009. Directors’ contributions were candid, co-operative and meaningful, deriving from a wide range of experience and training in law, accounting, finance, educational administration, insurance, engineering, business and agriculture. During the year under review, Directors benefited from training in and exposure to banking related seminars and conferences relevant to enhancing their capacity to fulfil their corporate governance responsibilities as follows: 1. Members of the Audit Committee attended the third annual conference of the Caribbean Association of Audit Committee Members (CAACM) held in St. Lucia. 2. The Board of Directors attended a Balanced Scorecard Strategy review presented by Growth Facilitators 3. All Directors attended a seminar on Corporate Governance facilitated by Dr. Valda Henry of VF Inc. 4. Two Directors successfully completed the Director Education and Accreditation Program (DEAP) accredited with the Institute of Chartered Secretaries and Administrators of Canada. 5. One Director attended a meeting with the ECCB Monetary Council, ECCU Financial Secretaries and the Board of the Eastern Caribbean Central Bank, with specific reference to Economic and Financial Adjustments in the ECCU. This meeting was held in St. Kitts. 6. Two Directors attended the Annual General Meeting and Conference of the Caribbean Association of Indigenous Banks (CAIB) in Antigua.
MEETINGS The Board and its Committees met regularly, providing the necessary oversight of the strategic direction of the Bank. The relevant data on meetings for 2009 is illustrated in the table over leaf, with the exclusion of the Credit Risk Committee as agreed by shareholders. The Credit Risk Committee met four times in 2009, with 100% participation by four members; one member’s attendance was 75%. Special sub-committee meetings were held during 2009 to discuss matters pertinent to the property on #18 Bridge Street.
ACKNOWLEDGEMENTS Our measured responses to the financial crisis yielded a result better than could have been anticipated at this time last year and for this, we thank the staff for their consistent delivery of quality service for which we stand apart. We thank management for skillfully steering the Bank, our customers and shareholders for their unswerving support, our business partners and the public for their candid contributions and continued interest in the Bank. We take this opportunity to extend our deepest condolences to Director Ferrel Charles on the passing of his wife, Mrs. Patricia Ellen Charles who was also a shareholder and an active and involved member of our community. At this juncture we offer our condolences to the families of those shareholders who have passed in 2009. As we continue this most challenging journey, we take pride in the work we have done to chart the course to attain the goal of being the 1st choice financial services provider.
OUTLOOK The announcement by the Governor of the Eastern Caribbean Central Bank of an eight point plan as a plausible response to the economic crisis is laudable. However, we anticipate that the implementation of point seven of that plan, being the amalgamation of indigenous commercial banks of the Eastern Caribbean Currency Union (ECCU), will be received with mixed feelings. In this light, it has been noted that our existing relationship with ECIC Holdings Ltd is a vehicle by which ties with other indigenous institutions can be deepened in the ECCU, without creating a new structure, thus retaining the identity of each indigenous institution. The adoption of the Financial Services Regulatory Authority Act and Insurance Act will be a welcome step towards improved regulation and improved security of funds, be it in insurance, banking or non banking financial institutions. As the discussions ensue, we give the assurance that the Bank will adequately and expertly represent our interest, thereby ensuring safety of customer and shareholder funds.
Performance... Built On A Heritage Of Community And Care! | PG 14
Dr. Charmaine Gardner President, on behalf of the Board of Directors
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 15
Directors’ Attendance At Board And Committee Meetings For The Year Ended December 31, 2009 DIRECTORS
FINANCE, PLANNING & INVESTMENT
BOARD No. of Meetings
Actual Attendance
Charmaine Gardner
11
11
Cyril Matthew
11
11
Ferrel Charles
11
10
Brenda FloissacFleming
11
9
Nigel Fulgence
11
10
Joseph Maxwell
11
11
7
7
Christian Husbands
11
11
7
6
Lionel James
11
11
7
6
Johnson Cenac
11
10
Tedburt Theobalds (Audit Committee member from September 2009)
11
10
G. Carlton Glasgow
11
11
No. of Meetings
7
Actual Attendance
HUMAN RESOURCE No. of Meetings
Actual Attendance
No. of Meetings
Actual Attendance
6
5
No. of Meetings
Actual Attendance
2
2
2
2
2
2
2
2
6 3
3
3
2
6
4
3
3
6
5
3
3
6 7
CORPORATE GOVERNANCE
AUDIT
6
3
3
3
DR. CHARMAINE GARDNER
Chairperson/ President
MR. CYRIL MATTHEW
MR. FERREL CHARLES
MRS. BRENDA FLOISSAC-FLEMING
MR. NIGEL FULGENCE
1st Vice President
2nd Vice President
Board of Directors Member
Performance... Built On A Heritage Of Community And Care! | PG 16
Member
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 17
MR. JOSEPH MAXWELL Member
MR. CHRISTIAN HUSBANDS Member
MR. LIONEL JAMES Member
Board of Directors MR. JOHNSON CENAC Member
MR. TEDBURT THEOBALDS Member
MR. G. CARLTON GLASGOW
Managing Director
We care that you have the time for what you love, this is why we have brought you the convenience of Online & Mobile Phone Banking Performance... Built On A Heritage Of Community And Care! | PG 18
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 19
Managing Director’s Report I am pleased to present another satisfactory report for the Bank for the financial year ended 2009, despite the negative growth experienced by our Country during the year. This negative growth, driven by the global financial crisis has impacted on our loans and advances to customers portfolio to a fair degree, resulting in an increase in non performing assets. The current law on debt recovery continues to be a challenge, so too is competition on interest rates for loans and deposits, which in some instances creates imperfect market conditions and responses. In spite of these challenges, the Bank’s Balance Sheet grew appreciably by 12% over the audited position for 2008 to $436 million. The profit before and after tax for 2009, is a modest $10.4 million and $9.1 million respectively. This performance would not be possible without the continued focus on the Bank’s strategic initiatives, both planned and emergent. Our priority continues to be the development and engagement of our human resources as a
core competence to ensure tenacious risk management, high asset quality and excellent customer satisfaction. We endeavour to be prudent in our decision making, always placing safety of customer funds first. During the year, the Bank’s Head Office was temporarily relocated in line with plans to address our space constraints. Alternative plans pursued to leverage our presence on Bridge Street did not materialize and consequently, the original strategy is at the advanced planning stage, which in the main will satisfy our need for additional space for at least another decade. Efforts to grow the Bank and achieve excellent customer satisfaction were recognised at the Annual Business Awards Ceremony mounted by the St. Lucia Chamber of Commerce, Industry and Agriculture when the Bank captured three awards, one each for innovation, corporate social responsibility and service excellence. We pledge to maintain this level of excellence and commitment.
In spite of these challenges, the Bank’s Balance Sheet grew appreciably by 12% ...to $436 million Performance... Built On A Heritage Of Community And Care! | PG 20
TOTAL INCOME
$’000
Risk Management The Bank manages its exposure to risk based on its policies and in accordance with laws and regulations. Generally, traditional methods of risk management are employed in the management of the Bank’s assets. The Board, through its committees is also involved in the management of risk by approving adjustments to policies and monitoring performance against them.
Outlook It is anticipated that the economic conditions prevalent in 2009 will continue to impact our operations in the short to medium term. Growth of gross domestic product for St. Lucia is expected to be slow but negative for 2010. We anticipate that there will be need to finance and support the recovery efforts and we stand ready to do our part and to encourage rational behaviour to realise this effort. The forecast for the tourism industry is very positive and was used to support our budget which is optimistic in its thrust. Government efforts to sustain the economy via fiscal policies have been endorsed by the International Monetary Fund and one such measure, the implementation of a Value Added Tax, appears to have received the approval of the public at large. We foresee increased competition in a relatively stable market space and our response will include maintaining awareness of our brand and greater focus on our operational strategies to reduce risk, particularly credit risk. We are mindful of the ongoing challenges and will continue to monitor these challenges to ensure that the Bank remains on the path of value creation.
Customer Service In the interest of achieving excellent customer satisfaction and enhancing customer access to their accounts, the Bank embarked on a number of projects. However, cognizant of the global recession, a conscious decision was taken to implement projects that would greatly enhance the Bank’s image, customer service and efficiency during the course of 2009 and beyond. Our MoBanking product was presented at a successful media launch, attended by customers, Board members and Staff. This product was a collaboration of five other indigenous banks in the Eastern Caribbean Currency Union, spearheaded by ECIC Holdings Ltd. Customers are able to access their accounts via their cell phone to make enquiries on their accounts, view account transaction histories, receive alerts when deposits, including salaries, are paid into their accounts, and pay utility bills. This is enabled via access to the Bank’s core system with cell phones utilizing SMS texting or any cell phone with a web browser. Performance... Built On A Heritage Of Community And Care! | PG 24
This product was historic for the Bank as we were first to market with such an innovative product in St. Lucia. We are happy to report that all product features are functional and customers have expressed their overall satisfaction. The Bank implemented a new product called E-Alerts, for which customers could sign up to be remotely notified of transfers to and from their accounts by text messages or email. This eliminates the need to post advices to customers, thereby saving postage, stationery, and time spent in writing out advices, and mailing or delivering them by hand. Dividend cheque printing was implemented which automated production of the dividend cheques quickly and efficiently. The operation has additional security features which eliminate human error, thereby reducing costs. The Credit Card Payments Manager software initiative went live whereby customers’ credit card payments made island-wide are immediately uploaded, updating their payments to their credit card accounts held at The Caribbean Credit Card Corporation (4C’s) in St. Kitts. The Bank’s Card Services system was upgraded and made ready for the International Debit Card Project which will be completed by May 2010. Additionally, ATM card-reader anti-tamper devices were installed on all ATMs. The devices are designed to prevent fraudsters from setting traps to capture customers’ ATM cards. The telephone system was upgraded with the installation of Voice over Internet Protocol (VoIP) digital telephone system. This enables Branches to be interconnected by telephone extensions and improves the ease with which customer service is managed at the same time resulting in cost savings for each operating unit and the Bank on the whole. The Bank continues to be guided by its mission statement by providing appropriate cutting
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 25
edge technology for use by customers. The results of a customer survey recently completed by the University of the West Indies will indicate the impact of our past initiatives as well as inform our future strategies.
ii. • •
Human Resources
• •
During the year under review, Human Resource development and management remained focused on the learning and growth perspective of the Bank’s key strategic objectives. Consequently, emphasis was placed on:• • • •
Employee empowerment and motivation through:
III.
The promotion of six employees from within the Bank’s Supervisory grades to facilitate smooth internal succession as necessary; The granting of staff annual performance increases in line with industry standards; Special recognition of employees at the Bank’s annual awards function; Acknowledgement of the overall contribution of all eligible staff by way of their participation in the Bank’s profit sharing plan. Upgrading of the working environment:
Cultivating an ethic of inspirational leadership throughout the institution; Developing highly competent, empowered and committed employees; Providing relevant skills and resources to facilitate staff efficiency; and Creating a professional working environment.
The creation of a more spacious and healthy working environment is undoubtedly conducive to the proper functioning, comfort and satisfaction of the Bank’s staff. Indeed, the 2008 staff survey highlighted the need to expedite this.
In 2009 the Bank made significant progress towards achieving those objectives through implementation of the following initiatives:-
In 2009 the Bank accomplished the initial phase of the process aimed at alleviating the existing space constraints within some of the Bank’s business units and refurbishing as necessary.
I. II. III. IV. V. I.
Continuous staff training bank-wide; Employee empowerment and motivation; Upgrading of the working environment; Planning a revised Performance Management System (PMS); Provision of the requisite resources to carry out the job.
Continuous staff training bank-wide with emphasis on: • • • • • • • • • • • • • • • •
Building leadership capacity Corporate governance Customer care and service Management of credit risk Credit appraisal techniques Corporate treasury/cash management Enhancing expertise in information technology IT controls audit skills Communication and sales skills Strengthening of technical competencies Entry level employment skills Orientation to new products and services Information security governance Anti-money Laundering policies and procedures Assistance to staff enrolled in professional banking programmes Assistance to staff engaged in professional self-development
In the second quarter of 2009, the Bank’s Head office was relocated from above the Castries Branch to premises at Reduit, Gros- Islet. This temporary move was effected to facilitate the refurbishment of the Bank’s Bridge Street offices during 2010, as well as generate increased office space in the interim. Plans for the extension of the Rodney Bay Sub Branch were also advanced in 2009 in keeping with the level of business at that unit and the evident need to improve the working environment. The Vieux- Fort Branch was also repainted. IV.
Planning a revised Performance Management System (PMS): •
all management personnel participated in the PMS redesigning process which is linked to the Bank’s existing Balanced Scorecard Strategy and Corporate objectives
•
the PMS is structured towards greater emphasis on setting employee action plans and targets, competency assessment, coaching and performance measurement;
•
the PMS more specifically enables individual performance in order to achieve organizational excellence;
•
the PMS also incorporates some of the key outcomes of the staff satisfaction survey conducted in 2008.
The implementation component of the Performance Management System throughout the Bank is planned for early 2010. V.
Provision of the requisite resources to carry out the job
During the year under review much emphasis was placed on enhancing the technological resources available to staff in carrying out their functions. The positive impact on staff productivity and efficiency was enabled by the automated dividend cheque printing facility; the customer account E-Alert; the Bank’s updated telephone system; and the MoBanking product, all of which were introduced in 2009. Additionally, the improved Performance Management System (PMS) mandates that Managers and Supervisors document the tool requirement for each position within their department/Unit. This is expected to be effected as part of the full implementation of the PMS in 2010.
Corporate Social Responsibility For over seventy one (71) years, the Bank’s commitment to the community has been a key component of our heritage and culture. During the financial year ended 2009, the Bank distinguished itself through consistent and well assigned financial support for initiatives proposed by various persons and organizations. It is this dedication to the community that earned the Bank the coveted national award for Corporate Social Responsibility for its work in the following areas: • • • • • • •
Every year, selected employees make time to counsel students of the Sir Arthur Lewis Community College on aspects of banking and ethics in the workplace. Additionally, mock job interviews were conducted with final year students to prepare them for the job market, an activity that was well received. We at the Bank are not only interested in ensuring that opportunities are created for educational advancement but are also concerned about the learning environment for students. We provided and installed two air conditioning units at the resource centre of the Mon Repos Combined School, thereby protecting sensitive equipment like computers and creating an enabling environment where students and teachers can work in comfort. The Clendon Mason Secondary School was also a recipient of the Bank’s support in the field of Agriculture. The Bank ensured that the schools kitchen garden received the attention that was needed for a successful harvest. It is interesting to note that the school donated part of its harvested crops to the home for the elderly in the Village of Dennery.
Educational Development Financial Education and Empowerment Social Transformation Community Outreach Programs Cultural Development and Preservation Sporting Activities Environmental Projects
Educational Development In the area of education, the Bank continues to make financing available to students who wish to pursue higher education through its comprehensive and attractive Scholarship Program. During 2009, another young St. Lucian shareholder (Donavan Foster) was assisted with his university education when the Bank awarded him a two year scholarship to complete studies in Economics and Law. We are proud to advise that the Bank currently employs two former scholarship holders who have done well in their field. Additionally, student loans are available to all persons wishing to pursue tertiary education in various courses particularly those on the Government’s priority list.
Performance... Built On A Heritage Of Community And Care! | PG 26
The Jacmel Combined School also benefited from the Bank’s generosity when a small state-of-the-art document centre was donated to the school to assist with printing and photocopying.
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 27
The Centre for Adolescent Renewal and Education (CARE) is another institution that continues to receive assistance from the Bank in terms of technical and financial support. We believe that every individual deserves an opportunity to excel and thus the work of the Centre in providing an important educational alternative for adolescents who dropped out of the formal education system is worthy of our support. Financial Education And Empowerment 1st National Bank has used an integrated communication strategy to enhance financial literacy. Through its flagship television program 1st National Bank Notes, the Bank sought to educate its customers and the general public on a wide range of financial topics including, budgeting, savings and investments, loans and value added tax. Our staff continues to counsel customers during their service delivery. We intend to broaden the scope of activities taking our educational drive to the communities which we serve. Social Transformation Our responsibility to collectively influence thinking and consciousness within our society is evident from the projects and initiatives that we consider deserving of our support. These include our support to: 1. The St. Lucia Crisis Centre. This organization received funding from the Bank to expand its awareness programs. 2. The Ministry of Gender Relations in its quest to end gender based violence. 3. The importance and recognition of women in society. Twelve excellent young women from St. Lucia in various professions were highlighted for their sterling contribution to society in our 2009 calendar with the theme “Our Young Women Of Tomorrow… Today”, Applauding The Pursuit Of Excellence. The information provided in the calendar is used in many schools and libraries across the island to inspire and inculcate values in young women from all walks of life.
4. The Caribbean Youth Festival. The Bank seeks to foster positive change in the lives of our youth and we recognized potential in the festival that combines local and regional talent to spread positive messages through music and song. The proceeds go towards the sustainability of a youth development clinic in Vieux Fort as well as to the Centre for Adolescent Renewal and Education (CARE), an institution the Bank has supported directly over the years. 5. The Community Action Programme for Safety (C.A.P.S.). This organization received financial support to further promote its objective to reduce opportunities for crime and promote positive conflict resolution. 6. Act Now Generation. This is a program targeted at young persons in conflict with the law. The program is administered by the District Courts in collaboration with the Probation Department. 1st National Bank is aware of the challenges faced by our youth both here and abroad. It is because of this awareness that the Bank sponsored the collaborative effort of Act Now Generation of Barbados and St. Lucia in the staging of a theatrical production entitled “The Land, the People, the Light” in recognition of St. Lucia’s 30th Independence Anniversary Celebrations. 7. The St. Lucia National Principals Association hosted principals from the region for the Principals Conference. The conference came to a close with a cultural and food presentation evening that saw the Bank once again in support of this activity staged by the region’s foremost educators.
Community Outreach The Bank’s community outreach program is very well structured and aligned to the Bank’s strategic goals. We ensure that the Bank lives up to its responsibility as a Community Bank and reinvests appropriately in the community. During the year, the Bank embarked on establishing a number of covenants with various key organizations and institutions in St. Lucia, in an effort to augment the sustainability of their community programs and philanthropic work. Some of the beneficiaries of this corporate gesture of goodwill are: 1.
The St. Lucia Blind Welfare Association, for their Kids in Sight program.
2.
The National Community Foundation, to support their mandate in various areas like education, youth at risk, health, that benefit thousands annually.
3.
The Marian and the St. Lucy’s Homes for the elderly.
4.
The St. Lucia Sickle Cell Association, in the provision of equipment and
vaccines.
5.
The Cluny Foundation, for educational development.
6.
Centre for Adolescent Renewal and development.
7.
Education, to assist with youth
Catholic Television Broadcasting Service, in the provision of spiritual
enlightenment.
The Bank also partners with organizations which conduct summer programs for underprivileged children, be it in the field of sports, arts and crafts, education, culture, drama, dance, music and poetry. The Bank is there at every step, investing its time and money to ensure that the benefits to be derived in terms of discipline, team work, self confidence, esprit de corps would result in more functional and productive citizens for St. Lucia. Arts And Cultural Development In 2009 the Bank was again proud to be associated with the University of the West Indies Open Campus in securing and preserving the works and artefacts of renowned St. Lucian Playwright Roderick Walcott. This gesture of support by the Bank paves the way for many generations of local, regional and international students to fulfil research requirements into the Literary Arts. Fond d’or Jazz, one of the main activities of the Fond d’or Foundation, was in danger of being cancelled but for the increased sponsorship from the Bank. We understood the economic benefits to be derived from staging this unique cultural event and we support their work to maintain and preserve the historical artefacts and the environment. Carnival is considered to be St. Lucia’s premier annual cultural festival. The Bank contributed financially to many carnival related events including steel pan, costume bands and calypso. The St. Joseph’s Convent Steel Orchestra received some financial support to travel to Trinidad and Tobago to experience first hand that country’s panorama. The Rituals Carnival Band, Dame Pearlette Louisy Primary School kiddies’ Carnival Band and the St. Aloysius Roman Catholic Boys Primary School Calypso competition were recipients
Performance... Built On A Heritage Of Community And Care! | PG 28
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 29
of financial support from the Bank. Furthermore, the Bank made a monetary contribution to the Police in support of their calypso competition, which brings the police and the community together. The Bank continues its support for the Helen Folk dancers in its quest to preserve our rich dance heritage. The group has staged many dance theatres and workshops to ensure that this part of St. Lucian culture remains alive and passed on to future generations. Another dance group, the Silver Shadows Performing Arts Academy benefitted from our generous donation to assist in the production of “Break Out”, a performance of creative original dance pieces choreographed by St. Lucian Barry George and performed by the young St. Lucian dancers from the Academy. The Show was performed over three days to an appreciative local audience.
Sporting Activities The Bank recognizes the value of sports and sporting related activities in promoting functional communities, team building, discipline, healthy living, friendly rivalry and competition and co-operation. Some of the beneficiaries of Bank funds were as follows: 1.
The 13 and Under Track and Field Championship. For the sixteenth consecutive year, the Bank was proud to be the sole sponsor of the 1st National Bank 13 and Under Track and Field Championship co-ordinated by the St. Lucia Athletics
Association. These games contributed to the development of young well rounded athletes who have gone on to secure athletic scholarships. 2.
The St. Lucia National Netball Association, to ensure St. Lucia’s participation in
the OECS Netball Tournament.
3.
St. Lucia Volleyball Association, to assist with the team’s representation of St.
Lucia. 4. 5.
The OECS Beach Volleyball Tournament. St. Lucia Amateur Swimming Association, for hosting of the National Secondary
Schools Swim Championship. 6.
Many schools benefited from the Bank’s corporate generosity in hosting their annual school sports meet as well as their sports camp in the summer.
The Ministry of Social Transformation, Youth and Sports continues to recognize the Bank for its outstanding contribution to Sports in St. Lucia.
Environment We strive to make a difference in our communities and the Bank staff teamed up with personnel from the Ministry of Agriculture and residents of the Dennery Valley to reforest the river banks, to save our rivers and create awareness and appreciation of our environment. The Bank donated 1,500 trees to this worthwhile project.
and expeditious process for dividend payment. The office of the Corporate Secretary stands ready to assist in this regard. For the information of shareholders, the chart below illustrates the current status of the dates of election and re-election of Directors:ROTATION OF DIRECTORS IN ACCORDANCE WITH SECTION 4 OF BY-LAW NO. 1 YEAR OF ELECTION
YEAR OF REELECTION
CHARMAINE GARDNER
1990
2007
CYRIL MATTHEW
1998
2007
FERREL CHARLES
1980
2009
BRENDA FLOISSAC-FLEMING
1993
2007
NIGEL FULGENCE
2000
2009
JOSEPH MAXWELL
2001
2008
CHRISTIAN HUSBANDS
2003
2009
LIONEL JAMES
2007
JOHNSON CENAC
2008
TEDBURT THEOBALDS
2008
NAME
Shareholder information The number of shares issued and fully paid remained at 4,999,966. However, a total of 63,508 shares was transferred in the course of 2009 and the total number of Shareholder accounts on record stood at 1,337. As required by the Banking Act No. 34 of 2006, no individual shareholder owned more than 20% of the Bank’s total shareholding. During 2009, the automatic cheque payment system for dividends was implemented. This process, which is expected to be fully functional for the timely payment of dividend cheques in 2010 will significantly improve the production and accuracy of dividend payments made by cheque. That notwithstanding, we continue to encourage shareholders to utilize accounts held with the Bank for deposit of their dividend since this is still the most efficient
Performance... Built On A Heritage Of Community And Care! | PG 30
Prime Minister The Honorable Stephenson King presents the award for Innovation to Managing Director Mr. G. Carlton Glasgow.
You can judge a people’s bank by how it cares for it’s young and elderly. This is why we’re heavily invested in both. Performance... Built On A Heritage Of Community And Care! | PG 32
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 33
Management Team
01
02
03
Performance... Built On A Heritage Of Community And Care! | PG 34
01 02 03 04
04
G. CARLTON GLASGOW Managing Director AUREA LAFEUILLEE Finance Manager JOSEPH FEDEE Operations Manager DENISE HOLDEN-PIERRE Manager, Internal Audit
05
05
BERYL CARASCO-ALLEYNE Human Resource Manager/Corporate Secretary
06 07
ROBERT FEVRIER Manager, Projects & Services
06
CLARETTE AUGUSTE-TAYLOR Manager Lendings
07
08 09 10 11
08
VALERY MARSHALL-ST. OMER Assistant Manager, Operations SYLVIA ALCEE Manager, Rodney Bay Sub Branch PATRICIA HOWELL Assistant Manager, Lendings
12 13 14
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 35
NAOMI PROMESSE-EDWARD Manager, Vieux Fort Sub Branch BEVERLEY ANN GREENE Assistant Manager, Finance MANSLEY JULIUS Assistant Manager, Accounting
PETER FLOISSAC Assistant Manager, Recoveries
09
10
11
Management Team
12
13
14
Our People, though often unseen make the things You See and Enjoy... Happen Performance... Built On A Heritage Of Community And Care! | PG 36
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 37
Staff of various Business Units.
Management Organization Chart BOARD OF DIRECTORS
MANAGING DIRECTOR
Manager Lendings
Assistant Manager, Lendings
Assistant Manager, Recoveries
Operations Manager
Assistant Manager, Operations
Manager, Projects and Services
Sub Branch Managers, Rodney Bay, Vieux Fort and Officer in Charge, Marigot Bay Sub Branch
Performance... Built On A Heritage Of Community And Care! | PG 38
Human Resource Manager/ Corporate Secretary
Finance Manager
Assistant Manager, Finance
Assistant Manager, Accounting
Manager Internal Audit
PriceWaterhouseCoopers Pointe Seraphine P.O.Box 195 Castries St. Lucia, West Indies Telephone (758) 456-2600 Facsimile (758) 452-1061
Independent Auditor’s Report March 30th 2010 To the Shareholders of 1st National Bank St. Lucia Limited Report on the Financial Statements We have audited the accompanying financial statements of 1st National Bank St. Lucia Limited (the Bank) which comprise the balance sheet as of December 31st 2009 and the statement of income, statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes.
Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.
Opinion
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Bank as of December 31st 2009 and the results of its operations and its cash flows for the year then ended in accordance with International Financial Reporting Standards.
Chartered Accountants
PricewaterhouseCoopers refers to the East Caribbean firm of PricewaterhouseCoopers and the other member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity. A full listing of the partners of the East Caribbean firm is available on request at the above address.
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 39
Balance Sheet | As of December 31, 2009 | (expressed in Eastern Caribbean dollars) Note
2009 $
2008 $
5 6 7 8 9
29,307,645 5,976,620 16,832,105 47,965,561 280,947,796
29,208,566 5,088,351 17,910,470 38,642,361 248,470,227
11 11
12,285,162 22,556,356 1,731,068 15,331,161 2,920,830 218,194
12,789,462 22,171,742 1,018,873 12,474,455 2,347,028 30,846
436,072,498
390,152,381
365,377,016 3,832,385 659,000
329,404,588 3,769,600 739,000
369,868,401
333,913,188
7,971,454 44,700,869 13,531,774
7,971,454 37,539,794 10,727,945
66,204,097
56,239,193
436,072,498
390,152,381
Assets Cash and balances with Central Bank Due from other banks Treasury bills Loans and advances to financial institutions Loans and advances to customers Investment securities: - available-for-sale - held-to-maturity Income tax recoverable Property, plant and equipment Other assets Deferred income tax asset
12 13 17
Total assets
Liabilities Due to customers Other liabilities Retirement benefit obligations
14 15 16
Total liabilities
Equity Capital and reserves attributable to the Bank’s equity holders Share capital Retained earnings Other reserves Total equity Total liabilities and equity
18
Approved by the Board of Directors on March 17, 2010 ___________________________________ Director
_______________________________ Director
Performance... Built On A Heritage Of Community And Care! | PG 40
Statement of Income | For the year ended December 31, 2009 | (expressed in Eastern Caribbean dollars) Note
2009 $
2008 $
Interest and similar income
20
30,587,169
29,680,766
Interest expense and similar charges
20
(11,883,032)
(10,762,836)
18,704,137
18,917,930
4,866,109
4,056,350
23,570,246
22,974,280
Net interest income Other operating income
21
Operating income Other operating expenses
22
(11,621,901)
(10,514,717)
Impairment losses on loans and advances
10
(1,577,771)
(1,248,031)
Profit before income tax Income tax expense
10,370,574 25
Profit for the year
11,211,532
(1,256,102)
(2,115,966)
9,114,472
9,095,566
1.82
1.82
Earnings per share for profit attributable to the equity holders of the Bank during the year (expressed in EC$ per share) - basic and diluted
26
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 41
Statement of Comprehensive Income | For the year ended December 31, 2009 | (expressed in Eastern Caribbean dollars) Profit for the year
2009 $
2008 $
9,114,472
9,095,566
2,723,259
–
56,812 70,347
(195,279) –
127,159
(195,279)
2,850,418
(195,279)
11,964,890
8,900,287
Other comprehensive income Gains on revaluation of land and buildings Fair value gains/(losses) on available-for-sale financial assets Unrealised net gains/(losses) arising during the year Net reclassification adjustments for realised net gains Net fair value gains/(losses) on available-for-sale financial assets Total other comprehensive income/(loss) for the year Total comprehensive income for the year
Performance... Built On A Heritage Of Community And Care! | PG 42
Statement of Changes in Equity | For the year ended December 31, 2009 | (expressed in Eastern Caribbean dollars) Share Capital $
Statutory Reserve $
Revaluation Reserve $
Revaluation Reserve – available-forsale $
7,971,454
7,971,454
2,285,636
689,040
30,421,308
49,338,892
Profit for the year
–
–
–
–
9,095,566
9,095,566
Fair value losses on available-forsale financial assets
–
–
–
(195,279)
–
(195,279)
Total comprehensive income
–
–
–
(195,279)
9,095,566
8,900,287
Dividends relating to 2007
–
–
–
–
(1,999,986)
(1,999,986)
Transfer to retained earnings
–
–
(22,906)
–
22,906
–
Balance at December 31, 2008
7,971,454
7,971,454
2,262,730
493,761
37,539,794
56,239,193
Balance at January 1, 2009
7,971,454
7,971,454
2,262,730
493,761
37,539,794
56,239,193
Profit for the year
–
–
–
–
9,114,472
9,114,472
Gains on revaluation of land and buildings
–
–
2,723,259
–
–
2,723,259
Fair value gains on available-forsale financial assets
–
–
–
127,159
–
127,159
Total comprehensive income
–
–
2,723,259
127,159
9,114,472
11,964,890
Dividends relating to 2008
–
–
–
–
(1,999,986)
(1,999,986)
Transfer to retained earnings
–
–
(46,589)
–
46,589
–
7,971,454
7,971,454
4,939,400
620,920
44,700,869
66,204,097
Balance at January 1, 2008
Balance at December 31, 2009
Retained Earnings $
Total Equity $
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 43
Statement of Cash Flows | For the year ended December 31, 2009 | (expressed in Eastern Caribbean dollars) Note Cash flows from operating activities Profit before income tax Adjustments for: Depreciation Impairment losses on loans and advances Retirement benefit obligations Dividend income Interest and similar income Interest expense and similar charges
12 10 21 20 20
Cash flow before changes in operating assets and liabilities Increase in mandatory reserve deposits with Central Bank Increase in loans and advances to financial institutions Increase in loans and advances to customers (Increase)/decrease in other assets Increase in due to customers Increase/(decrease) in other liabilities Cash used in operations Interest and similar income received Interest expense and similar charges paid Income taxes paid
2009 $
2008 $
10,370,574
11,211,532
1,068,207 1,577,771 (80,000) (81,630) (30,587,169) 11,883,032
834,094 1,248,031 12,000 (50,810) (29,680,766) 10,762,836
(5,849,215)
(5,663,083)
(2,248,860) (9,181,709) (33,161,734) (573,802) 35,577,951 11,143
(4,770,570) (6,625,331) (24,653,415) 310,337 32,010,267 (160,608)
(15,426,226)
(9,552,403)
29,578,936 (11,488,555) (2,155,645)
28,268,360 (10,878,289) (2,874,199)
508,510
Net cash generated from operating activities Cash flows from investing activities Proceeds from sale/(purchase) of treasury bills, net Purchase of investment securities Proceeds from sale of investment securities Dividends received Purchase of property, plant and equipment
4,963,469
1,058,366 (24,610,805) 24,850,785 81,630 (1,201,654)
(2,380,738) (45,007,984) 39,782,072 50,810 (1,625,366)
178,322
(9,181,206)
Cash flows from financing activities Dividends paid on ordinary shares
(1,948,344)
(1,962,483)
Net decrease in cash and cash equivalents
(1,261,512)
(6,180,220)
Cash and cash equivalents, beginning of year
14,853,347
21,033,567
13,591,835
14,853,347
Net cash generated from/(used in) investing activities
Cash and cash equivalents, end of year
28
Performance... Built On A Heritage Of Community And Care! | PG 44
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 45
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
Performance... Built On A Heritage Of Community And Care! | PG 46
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 47
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
Performance... Built On A Heritage Of Community And Care! | PG 48
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 49
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
Performance... Built On A Heritage Of Community And Care! | PG 50
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 51
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
Performance... Built On A Heritage Of Community And Care! | PG 52
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 53
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
Performance... Built On A Heritage Of Community And Care! | PG 54
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 55
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
Performance... Built On A Heritage Of Community And Care! | PG 56
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
Due from other banks Treasury bills Loans and advances to financial institutions Loans and advances to customers: − Overdraft − Demand loans − Promissory notes − Mortgages Investments securities: − available for sale − held to maturity Other assets Credit risk exposures relating to off-balance sheet items are as follows: Financial Guarantees Loan commitments and other credit related liabilities At December 31
Maximum exposure 2009 2008 $ $ 5,976,620 5,088,351 16,832,105 17,910,470 47,965,561 38,642,361 13,918,905 126,920,339 11,254,777 128,853,775
11,557,424 113,270,801 8,418,705 115,223,297
8,607,692 22,556,356 1,909,761
9,431,682 22,171,742 1,839,745
4,199,510 24,695,113
3,707,216 25,371,125
413,690,514
372,632,919
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 57
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
2009
2008
$
$
174,530,840
150,515,962
Past due but not impaired
85,436,909
79,527,603
Impaired
34,142,461
32,657,984
Gross
294,110,210
262,701,549
Less: allowance for impairment (Notes 9 and 10)
(13,162,414)
(14,231,322)
Net
280,947,796
248,470,227
47,965,561
38,642,361
Loans and advances to customers Neither past due nor impaired
Loans and advances to financial institutions Neither past due nor impaired (Note 8)
Performance... Built On A Heritage Of Community And Care! | PG 58
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
Total Loans and advances Mortgages to customers
Overdrafts
Demand loans
Promissory notes
$
$
$
$
$
Grades 1. Pass 2. Special mention 3. Sub-standard 4. Doubtful 5. Loss
11,943,628 1,194,480 – – –
72,543,430 502,893 – – –
4,839,336 – – – –
82,329,564 1,177,509 – – –
171,655,958 2,874,882 – – –
Total
13,138,108
73,046,323
4,839,336
83,507,073
174,530,840
9,547,239 1,737,367 – – –
61,480,754 1,238,413 – – –
5,325,447 – – – –
70,038,928 1,147,814 – – –
146,392,368 4,123,594 – – –
11,284,606
62,719,167
5,325,447
71,186,742
150,515,962
December 31, 2009 Loans and advances to customers
December 31, 2008 Loans and advances to customers Grades 1. Pass 2. Special mention 3. Sub-standard 4. Doubtful 5. Loss Total
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 59
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
Demand loans
Promissory notes
Mortgages
Total Loans and advances to customers
December 31, 2009 Past due up to 30 days Past due 30-60 days Past due 60-90 days Past due over 90 days
$
$
$
$
19,285,778 5,647,423 6,693,489 10,780,431
1,262,506 276,873 156,288 691,268
18,673,121 5,650,967 3,615,381 12,703,384
39,221,405 11,575,263 10,465,158 24,175,083
Total
42,407,121
2,386,935
40,642,853
85,436,909
Fair value of collateral
71,023,322
8,458,726
100,217,108
179,699,156
December 31, 2008 Past due up to 30 days Past due 30-60 days Past due 60-90 days Past due over 90 days
20,424,112 8,850,958 2,675,937 8,097,336
1,107,753 458,878 317,023 731,009
18,557,205 3,197,194 3,834,521 11,275,677
40,089,070 12,507,030 6,827,481 20,104,022
Total
40,048,343
2,614,663
36,864,597
79,527,603
Fair value of collateral
64,595,029
6,948,529
79,223,069
150,766,627
Individually impaired loans Grades: 1. Pass 2. Special mention 3. Sub-standard 4. Doubtful 5. Loss Total
2009 $
2008 $
663,964 2,576 16,397,033 9,907,686 7,171,202 34,142,461
2,146,463 439,447 12,568,058 9,943,439 7,560,577 32,657,984
Fair value of collateral
62,708,004
58,550,849
Performance... Built On A Heritage Of Community And Care! | PG 60
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
Investment securities Treasury bills
Available-forsale
Held-to-maturity
Total
$
$
$
$
AA- to AA+
–
1,532,055
4,007,005
5,539,060
A- to A+
–
–
2,041,205
2,041,205
Lower than A-
–
–
–
–
Unrated
16,832,105
7,075,637
16,508,146
40,415,888
Total
16,832,105
8,607,692
22,556,356
47,996,153
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 61
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
Government
Professional and other services
Personal
industries
Total
$
$
$
$
$
$
–
–
16,832,105
–
–
–
16,832,105
47,965,561
–
–
–
–
–
–
47,965,561
- Overdraft
–
479,981
1,084
–
4,333,498
4,266,220
4,846,630
13,927,413
- Demand loans
–
4,111,118
3,287,270
1,572,721
13,247,585
56,775,895
56,613,735
135,608,324
- Promissory notes
–
10,845
61,299
–
35,820
9,054,161
3,422,921
12,585,046
- Mortgages
–
296,278
2,115,371
–
6,988,523
102,709,721
19,879,534
131,989,427
7,628,258
–
–
–
–
–
4,656,904
12,285,162
10,902,788
–
–
11,550,080
–
–
103,488
22,556,356
958,267
–
–
–
–
–
951,494
1,909,761
As at December 31, 2009
67,454,874
4,898,222
5,465,024
29,954,906
24,605,426
172,805,997 90,474,706
395,659,155
As at December 31, 2008
55,708,177
4,251,979
4,146,340
31,369,462
30,291,301
153,727,088 76,560,982
356,055,329
Treasury bills Loans and advances to financial institutions
Financial institutions
Manufacturing
Tourism
$
$
–
Other
Loans and advances to customers:
Investment securities: - available-for-sale - held-to-maturity Other assets
Performance... Built On A Heritage Of Community And Care! | PG 62
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 63
ECD
CAD
EURO
USD
GBP
TTD
BD
TOTAL
28,420,137 2,104,008 16,832,105 47,965,561 280,947,796
59,487 156,398 – – –
236,457 213,903 – – –
458,930 2,261,256 – – –
64,940 1,182,590 – – –
– 15,734 – – –
67,694 42,731 – – –
29,307,645 5,976,620 16,832,105 47,965,561 280,947,796
Investment securities - available-for-sale - held-to-maturity Other assets
9,685,224 22,556,356 1,909,761
– – –
– – –
2,599,938 – –
– – –
– – –
– – –
12,285,162 22,556,356 1,909,761
Total financial assets
410,420,948
215,885
450,360
5,320,124
1,247,530
15,734
110,425
417,781,006
Liabilities Due to customers Other liabilities
363,920,948 3,832,385
– –
2,577 –
1,453,491 –
– –
– –
– –
365,377,016 3,832,385
Total financial liabilities
367,753,333
–
2,577
1,453,491
–
–
–
369,209,401
Net on-balance sheet positions
42,667,615
215,885
447,783
3,866,633
1,247,530
15,734
110,425
48,571,605
Credit commitments
28,894,623
–
–
–
–
–
–
28,894,623
365,153,690 331,856,979
165,493 –
1,255,352 2,516
8,146,849 1,314,693
964,682 –
198,617 –
236,241 –
376,120,924 333,174,188
Net on-balance sheet positions
33,296,711
165,493
1,252,836
6,832,156
964,682
198,617
236,241
42,946,736
Credit commitments
29,078,341
–
–
–
–
–
–
29,078,341
As at December 31, 2009 Assets Cash and balances with Central Bank Due from other banks Treasury bills Loans and advances to financial institutions Loans and advances to customers
As at December 31, 2008 Total financial assets Total financial liabilities
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
Performance... Built On A Heritage Of Community And Care! | PG 66
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
Up to 1 month
1-3 months
3-12 months
1-5 years
Over 5 years
Total
$
$
$
$
$
$
234,017,911
43,514,407
84,622,554
5,885,395
–
368,040,267
3,832,385
–
–
–
–
3,832,385
237,850,296
43,514,407
84,622,554
5,885,395
–
371,872,652
49,757,710
45,699,912
56,249,216
67,280,190
210,586,870
429,573,898
222,635,987
36,206,105
70,534,136
2,293,200
–
331,669,428
3,769,600
–
–
–
–
3,769,600
226,405,587
36,206,105
70,534,136
2,293,200
–
335,439,028
56,610,722
47,978,074
50,799,145
59,953,932
176,236,167
391,578,040
As at December 31, 2009
Liabilities Due to customers Other liabilities
Total liabilities (Contractual maturity dates) Assets held for managing liquidity risk (contractual maturity dates) As at December 31, 2008
Liabilities Due to customers Other liabilities Total liabilities (Contractual maturity dates) Assets held for managing liquidity risk (contractual maturity dates)
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 67
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
1 year $
1-5 years $
Over 5 years $
Total $
Loan commitments Guarantees, acceptances and other financial facilities
22,638,843 207,262
2,048,273 3,879,590
112,658
24,695,113 4,199,510
Total
22,846,105
5,927,863
120,655
28,894,623
15,965,251
9,400,678
5,196
25,371,125
3,707,216
–
–
3,707,216
19,672,467
9,400,678
5,196
29,078,341
As at December 31, 2009 7,997
As at December 31, 2008 Loan commitments Guarantees, acceptances and other financial facilities Total
Performance... Built On A Heritage Of Community And Care! | PG 68
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
Carrying value
Fair value
2009 $
2008 $
2009 $
2008 $
47,965,561
38,642,361
47,965,561
38,642,361
280,947,796
248,470,227
286,801,939
250,853,265
13,918,905
11,557,424
13,872,273
11,454,871
126,920,339
113,270,801
130,848,499
116,203,033
11,254,777
8,418,705
8,288,869
9,050,392
128,853,775
115,223,297
133,792,298
114,144,969
22,556,356
22,171,742
22,247,917
22,171,136
Due to customers:
365,377,016
329,404,588
363,421,316
327,293,210
− Time deposits
143,041,123
120,722,596
141,085,423
118,611,218
− Savings accounts
187,915,027
173,451,589
187,915,027
173,451,589
− Demand accounts
34,420,866
35,230,403
34,420,866
35,230,403
Financial assets Loans and advances to financial institutions Loans and advances to customers: − Overdraft − Demand loans − Promissory notes − Mortgages Investment securities − Held to maturity Financial liabilities
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 69
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
December 31, 2009
Level 1 $
Level 2 $
Level 3 $
Total $
- Investment securities - debt
–
5,538,959
3,068,733
8,607,692
- Investment securities - equity
–
969,310
–
969,310
–
6,508,269
3,068,733
9,577,002
Available-for-sale financial assets
Total assets
Available-for-sale financial assets Debt securities $ At January 1, 2009
4,427,490
Settlements
(1,358,757)
Transfer into or out of Level 3 At December 31, 2009 Performance... Built On A Heritage Of Community And Care! | PG 70
– 3,068,733
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
Reflected in equity Favourable changes
Unfavourable changes
$
$
77,894
18,864
At December 31, 2009
Available-for-sale financial assets
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 71
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
2009 $
2008 $
Share capital
7,971,454
7,971,454
Statutory reserve
7,971,454
7,971,454
Retained earnings
44,700,869
37,539,794
Total qualifying Tier 1 capital
60,643,777
53,482,702
Revaluation reserve – available-for-sale investments
620,920
493,761
Revaluation reserve – property, plant and equipment
4,939,400
2,262,730
Total qualifying Tier 2 capital
5,560,320
2,756,491
66,204,097
56,239,193
On-balance sheet
279,719,643
279,562,292
Off-balance sheet
5,778,925
5,815,668
285,498,568
285,377,960
Capital adequacy ratio
21%
19%
Basel ratio
23%
20%
Tier 1 capital
Tier 2 capital
Total regulatory capital
Risk-weighted assets:
Total risk-weighted assets
Performance... Built On A Heritage Of Community And Care! | PG 72
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 73
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars) 2009 $
2008 $
Cash in hand Balances with Central Bank other than mandatory reserve deposits
6,659,391 955,824
7,991,839 1,773,157
Included in cash and cash equivalents (Note 28)
7,615,215
9,764,996
21,692,430
19,443,570
29,307,645
29,208,566
Mandatory reserve deposits with Central Bank
2009 $
2008 $
Items in the course of collection from other banks
1,411,193
566,838
Placements with other banks
4,565,427
4,521,513
Included in cash and cash equivalents (Note 28)
5,976,620
5,088,351
Treasury bills
Performance... Built On A Heritage Of Community And Care! | PG 74
2009 $
2008 $
16,832,105
17,910,470
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
Overdraft Demand loans Promissory notes Mortgages
Less provision for impairment of loans and advances (Note 10)
Current Non-current
2009 $
2008 $
13,927,413 135,608,324 12,585,046 131,989,427
11,566,613 122,976,186 9,878,217 118,280,533
294,110,210
262,701,549
(13,162,414)
(14,231,322)
280,947,796
248,470,227
20,168,920 260,778,876
23,519,169 224,951,058
280,947,796
248,470,227
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 75
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
Overdraft
Demand loans
Promissory notes
Mortgage
Total
$
$
$
$
$
Balance at January 1, 2009 Provision for loan impairment Loans written off during the year
9,189 (681) –
9,705,385 879,742 (1,897,142)
1,459,512 (44,535) (84,708)
3,057,236 743,245 (664,829)
14,231,322 1,577,771 (2,646,679)
At December 31, 2009
8,508
8,687,985
1,330,269
3,135,652
13,162,414
15,847 – (6,658)
7,933,289 1,789,642 (17,546)
955,695 525,379 (21,562)
4,158,071 (1,066,990) (33,845)
13,062,902 1,248,031 (79,611)
9,189
9,705,385
1,459,512
3,057,236
14,231,322
Balance at January 1, 2008 Provision for loan impairment Loans written off during the year At December 31, 2008
2009 $
2008 $
969,310 2,708,160
912,500 2,445,280
5,538,959 3,068,733
5,004,192 4,427,490
Total securities: available-for-sale
12,285,162
12,789,462
Held-to-maturity Debt securities - at amortised cost: - Listed - Unlisted
10,253,291 12,303,065
10,078,086 12,093,656
Total securities: held-to-maturity
22,556,356
22,171,742
Current Non-current
12,678,642 22,162,876
23,482,498 8,120,926
34,841,518
31,603,424
Available-for-sale Equity securities - Listed - Unlisted Debt securities: - Listed - Unlisted
Performance... Built On A Heritage Of Community And Care! | PG 76
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
Available for sale $
Held to maturity $
12,789,462
22,171,742
2,009,708
23,160,649
Disposals (sale and redemption)
(2,570,820)
(22,776,035)
Gains from changes in fair value
56,812
–
At December 31, 2009
12,285,162
22,556,356
At January 1, 2008
10,625,141
19,276,037
7,490,432
37,546,945
(5,130,832)
(34,651,240)
At January 1, 2009 Additions
Additions Disposals (sale and redemption) Losses from changes in fair value
At December 31, 2008
(195,279)
–
12,789,462
22,171,742
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 77
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars) Land and Building
Furniture and Fixtures
Equipment
Motor Vehicles
Total
$
$
$
$
$
December 31, 2007 Cost or valuation Accumulated depreciation
10,771,211 (1,882,179)
1,248,533 (842,842)
8,624,359 (6,357,562)
186,920 (65,257)
20,831,023 (9,147,840)
8,889,032
405,691
2,266,797
121,663
11,683,183
Opening net book amount Additions in the year Depreciation charge (Note 22)
8,889,032 24,510 (156,244)
405,691 40,258 (43,363)
2,266,797 1,560,598 (610,155)
121,663 – (24,332)
11,683,183 1,625,366 (834,094)
Closing net book amount
8,757,298
402,586
3,217,240
97,331
12,474,455
10,795,721 (2,038,423)
1,288,791 (886,205)
8,757,298
8,757,298 2,723,259 398,934 (242,112)
Net book amount Year ended December 31, 2008
At December 31, 2008 Cost or valuation Accumulated depreciation
10,184,957 (6,967,717)
186,920 (89,589)
22,456,389 (9,981,934)
402,586
3,217,240
97,331
12,474,455
402,586 – 55,475 (43,418)
3,217,240 – 747,245 (763,211)
97,331 – – (19,466)
12,474,455 2,723,259 1,201,654 (1,068,207)
11,637,379
414,643
3,201,274
77,865
15,331,161
Cost or valuation Accumulated depreciation
12,083,652 (446,273)
1,344,266 (929,623)
10,932,202 (7,730,928)
186,920 (109,055)
24,547,040 (9,215,879)
Net book amount
11,637,379
414,643
3,201,274
77,865
15,331,161
Net book amount Year ended December 31, 2009 Opening net book amount Revaluation Additions in the year Depreciation charge (Note 22) Closing net book amount At December 31, 2009
Performance... Built On A Heritage Of Community And Care! | PG 78
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars) 2009 $
2008 $
Cost Accumulated depreciation based on historical cost
8,044,398 (1,709,253)
8,044,398 (1,608,309)
Depreciated historical cost
6,335,145
6,436,089
2009 $
2008 $
1,909,761 174,051 837,018
1,839,745 156,800 350,483
2,920,830
2,347,028
2009 $
2008 $
143,041,123 187,915,027 34,420,866
120,722,596 173,451,589 35,230,403
365,377,016
329,404,588
362,325,478 3,051,538
327,327,458 2,077,130
365,377,016
329,404,588
Accounts receivable Inventories of stationery and supplies Prepayments
Time deposits Savings accounts Demand amounts
Current Non-current
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 79
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars) 2009 $
2008 $
773,237 2,680,038 379,110
1,242,654 2,199,478 327,468
3,832,385
3,769,600
2009 $ 2,704,000 (2,961,000)
2008 $ 2,378,000 (2,613,000)
Unrecognised actuarial loss
(257,000) 916,000
(235,000) 974,000
Liability in the balance sheet
659,000
739,000
2009 $
2008 $
Manager’s cheques outstanding Accounts payable and accrued expenses Dividends payable on ordinary shares
Present value of funded obligations Fair value of plan assets
At beginning of year Current service cost Interest cost Members’ contributions Actuarial loss/(gain) Benefits paid
2,378,000 123,000 166,000 41,000 13,000 (17,000)
2,536,000 139,000 152,000 36,000 (468,000) (17,000)
At end of year
2,704,000
2,378,000
Performance... Built On A Heritage Of Community And Care! | PG 80
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars) 2009 $
2008 $
At beginning of year Expected return on plan assets Actuarial gain Bank’s contributions Members’ contributions Benefits paid
2,613,000 188,000 3,000 133,000 41,000 (17,000)
2,253,000 139,000 75,000 127,000 36,000 (17,000)
At end of year
2,961,000
2,613,000
2009 $
2008 $
Current service cost Interest cost Net actuarial gains recognised in the year Expected return on plan assets Total included in staff costs (Note 24)
At beginning of year Pension expense Contributions paid At end of year
Discount rate Expected return on plan assets Future salary increases Future pension increases
123,000 166,000 (188,000) (48,000)
139,000 152,000 (13,000) (139,000)
53,000
139,000
2009 $
2008 $
739,000 53,000 (133,000)
727,000 139,000 (127,000)
659,000
739,000
2009 %
2008 %
7 7 5.5 –
7 7 5.5 – 1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 81
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars) 2009 % Debt securities Others
86 14
86 14
100
100
2009 $ Defined benefit obligation Fair value of plan assets (Surplus)/deficit in the plan
Experience adjustment on plan liabilities Experience adjustment on plan assets
2008 %
2008 $
2007 $
2005 $
2,704,000 (2,961,000)
2,378,000 (2,613,000)
2,536,000 (2,253,000)
2,219,000 (1,993,000)
2,063,000 (1,788,000)
(257,000)
(235,000)
283,000
226,000
275,000
13,000 3,000
(43,000) 75,000
29,000 (11,000)
(87,000) (21,000)
(129,000) (51,000)
2009 $
2008 $
At beginning of year Statement of income (recovery)/charge for the year (Note 25)
(30,846) (187,348)
(165,691) 134,845
Deferred tax asset at end of year
(218,194)
(30,846)
Performance... Built On A Heritage Of Community And Care! | PG 82
2006 $
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
Accelerated capital allowances Retirement defined obligation
Deferred tax asset at income tax rate of 30%
2009 $
2008 $
(68,312) (659,000)
(102,820) –
(727,312)
(102,820)
(218,194)
(30,846)
No. of Shares
2009 $
No. of Shares
2008 $
4,999,966
7,971,454
4,999,966
7,971,454
Authorized: 5,000,000 ordinary shares At beginning and end of year
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 83
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
Interest and similar income Loans and advances Deposits with banks Investment securities
Interest expense and similar charges Time deposits Savings deposits Demand deposits
Net interest income
Foreign exchange Commission income Fees income Rental income Dividend income Gain on investment securities
Staff costs (Note 24) Administrative expenses (Note 23) Depreciation (Note 12) Operating lease rental
Performance... Built On A Heritage Of Community And Care! | PG 84
2009 $
2008 $
24,805,756 10,429 5,770,984
24,427,048 66,603 5,187,115
30,587,169
29,680,766
5,841,078 6,003,044 38,910
5,229,080 5,487,550 46,206
11,883,032
10,762,836
18,704,137
18,917,930
2009 $
2008 $
2,552,754 1,678,946 356,705 140,000 81,630 56,074
1,747,447 1,531,602 306,491 420,000 50,810 –
4,866,109
4,056,350
2009 $
2008 $
5,172,593 4,930,604 1,068,207 450,497
5,218,223 4,247,674 834,094 214,726
11,621,901
10,514,717
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars) 2009 $
2008 $
Advertising Other operating expenses Postage, telephone and telexes Audit and professional fees Equipment expenses Utilities Security expenses Directors’ fees and expenses Insurance Repairs and maintenance Stationery Bank licence Rates and taxes Legal fees
947,426 702,357 693,762 553,559 426,701 369,748 306,795 269,408 214,437 143,772 139,744 120,000 35,125 7,770
452,002 651,888 634,408 546,506 291,304 438,276 348,847 138,712 192,143 261,589 137,484 120,000 15,625 18,890
Total administrative expenses
4,930,604
4,247,674
Salaries and wages Other employee benefits Profit sharing Social security costs Pension costs (Note 16)
2009 $
2008 $
4,020,234 570,378 363,266 165,715 53,000
3,774,844 634,953 511,717 157,709 139,000
5,172,593
5,218,223
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 85
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars) 2009 $
2008 $
1,443,450 – (187,348)
1,861,115 120,006 134,845
1,256,102
2,115,966
2009 $
2008 $
Profit before income tax
10,370,574
11,211,532
Tax calculated at the statutory tax rate of 30% Tax effect of exempt income Tax effect of expenses not deductible for tax purposes Tax under accrued in prior years Deferred tax under accrued in the prior year
3,111,172 (1,727,011) 69,641 – (197,700)
3,363,460 (1,411,583) 44,083 120,006 –
1,256,102
2,115,966
Current tax Tax under accrued in prior years Deferred tax (Note 17)
Performance... Built On A Heritage Of Community And Care! | PG 86
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars) 2009 $
2008 $
7,615,215 5,976,620
9,764,996 5,088,351
13,591,835
14,853,347
2009 $
2008 $
Loans outstanding at beginning of year Net loans issued/(repaid) for the year
2,992,329 45,496
3,112,842 (120,513)
Loans outstanding at end of year
3,037,825
2,992,329
252,829
237,312
2009 $
2008 $
Deposits at beginning of year Net deposits received/(repaid) during the year
709,978 1,514,651
920,046 (210,068)
Deposits outstanding at end of year
2,224,629
709,978
30,753
23,201
Cash and balances with Central Bank (Note 5) Due from other banks (Note 6)
Interest income earned Deposits from Directors and other key management personnel
Interest expense on deposits
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 87
Notes to Financial Statements | December 31, 2009 | (expressed in Eastern Caribbean dollars)
2009 $
2008 $
Salaries and other short-term benefits
837,268
744,228
Post and other employment benefits
146,573
159,396
983,841
903,624
2009 $
2008 $
24,695,113 3,992,248 11,832 195,430
25,371,125 3,707,216 – –
28,894,623
29,078,341
Loan commitments Guarantees and standby letters of credit Acceptances Documentary and commercial letters of credit
Performance... Built On A Heritage Of Community And Care! | PG 88
1ST NATIONAL BANK | ANNUAL REPORT 2009 | PG 41
1st National Bank Annual Report
2009
1st National Bank St. Lucia Limited P.O. Box 168 #21 Bridge Street Castries St. Lucia Tel: +758 455 7000 Fax: + 758 453 1630 Email: manager@1st nationalbankslu.com Website: www.1stnationalbankonline.com