Reflection Bahamas Constitutional Conference in London, 1963
Total Page:16
File Type:pdf, Size:1020Kb
Table of Contents BANK OF THE BAHAMAS LIMITED ANNUAL REPORT 2013 Introduction . .2 Highlights . 4 Board of Directors . .7 History . 11 Chairman’s Message to Shareholders . 16 Executive Statement . 19 Private Banking & Trust . 22 Sponsorship . .24 Executive Committee . .28 Organizational Chart . .28 Corporate Governance Principles . 31 Management Discussion . .37 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2013: INDEPENDENT AUDITORS’ REPORT . 44 Consolidated Statement of Financial Position . 45 Consolidated Statement of Comprehensive Income . .46 Consolidated Statement of Changes in Equity . .47 Consolidated Statement of Cash Flows . .48 Notes to Consolidated Financial Statements . 49-72 Branch Locations & Staff Members . .74 bank of the bahamas limited • annual report 2013 • 1 Let freedom reign. The sun never set on such glorious a human achievement. —Nelson Mandela Reflection Bahamas Constitutional Conference in London, 1963 iewed over the span of life on Earth, a half Louise Young was named Miss Bahamas and became the Vcentury is but a tiny speck, a notch in time so first woman to represent The Bahamas in the Miss Universe insignificant it could easily be overlooked . contest . But when such dramatic transformation occurs as it has Why 1963? It was the year of the Bahamas Constitutional Reflection in the last half century, no magnifying glass is needed, for Conference in London that set the stage for internal never has there been a period in which there has been greater self-government one year later when a Bahamian, Roland change in how we work, play, travel, communicate, do Symonette, ascended to the highest office, replacing a 200- business and even how we relate to one another . Consider year long stream of governors representing royalty in British where we were 50 years ago . In 1963, the first cell phone colonies like The Bahamas . call was still 10 years away . The average cost of a new house A decade later The Bahamas emerged a free and sovereign was $12,650 in U .S . dollars or 3,160 Pounds Sterling as nation with a democratically elected prime minister . The true Bahamians would have referred to it . A gallon of gas was 29 birth of an Independent Bahamas was celebrated with great cents, the average cost of a new car was $3,233 . The Beatles joy . had just released Love Me Do and Beatlemania was about And in 1988, that independent government saw an to reach peak craze level with the release of I Want to Hold opportunity to invest in a bank for Bahamians and seized it . Your Hand . President John F . Kennedy was assassinated that They named it Bank of The Bahamas . Years later, the name year and The Bahamas was enjoying a banner year for fame . was shortened to BOB though the official corporate identity It was the 10th running of the Bahamas Speed Weeks races remains Bank of The Bahamas Limited . and a bitter battle between Ford and Chevy overpowered the Now, as this nation celebrates 40 years of independence, previous obsession with race cars from the UK and Europe we at BOB mark our 25th anniversary . during the most talked about social event of the season . That It is a good time for Reflection . same year, two years after the pageant was founded, Sandra ighlights Highlights OB marked its 25th anniversary with Bhighlights throughout the year and with an array of activities from new products and services to historic commemorations, from formal activities to strengthening community outreach . n Fiscal 2013, BOB Iintroduced the nation’s first BOB Retail Manager Ian Thompson, left, and Deputy ATMs capable of accepting Managing Director, Strategic Planning Hubert non-envelope cash and cheque Edwards, a track athlete himself, present Olympic deposits . gold medalist Chris Brown with financial support to help make the Golden Knight’s 1st annual Chris The bank expanded ATM Brown Bahamas Invitational a reality. locations and now has 10 at bank branches from Grand Bahama in the north to San By sponsoring the 1st Chris Brown Bahamas Salvador in the south plus Invitational Track Meet, BOB continued its off-site locations at Phil’s Food alignment with the track star who has served Services, Arawak Cay and at the as a role model for many young Bahamians. Lynden Pindling International Airport . Wheelchair-friendly and equipped with Braille lettering, the new ATMs operate at lightning speed, a feature celebrated by BOB’s endorsement by Olympic gold medalist track star Chris Brown . 4 • bank of the bahamas limited • annual report 2013 Because Life Takes VISA – BOB equipped 115 athletes with VISA Gift Cards to reduce worries about carrying cash as they headed off to represent the nation during CARIFTA. When the blues are all about happy smiles and days – BOB Shirley Street celebrated The Bahamas’ 40th Anniversary of Independence and created a 25-year timeline of the bank’s history. n one of its most powerful sponsorships, BOB’s BOB strengthened its community outreach— Isupport paved the way for the third annual musical rewarding and honouring deserving students, and dance extravaganza, Love That Child, with sponsoring athletes, helping to make summer camp proceeds benefitting three children’s homes . The possible for thousands and bringing laughter and production gets bigger each year with more children song to children’s homes . It was an anniversary year performing to raise funds for other children . This year’s celebrated by giving back to the community that funds went to make life a little better, a little brighter helped BOB achieve the position it has in such a short at the Ranfurly Home for Children, the Elizabeth period of time . Estates Children’s Home and Children’s Emergency Hostel . These youngsters from the Meridian School were among the 150 voices, children helping children . FISCAL & OPERATIONAL HIGHLIGHTS • BOB continued to shore up capital reserves to a level well in excess of the ratio required by The Central Bank and Basel III Accord • Assets grew by 3.3% over previous year to end at $890 .06 million • Carmichael Road branch opened, increasing full-time employment complement to 358 at year-end • $2.4 million paid in preference shareholder dividends • Balance sheet strengthened with the liquidation of For students who stayed closer to home this $32 million in direct liabilities summer, BOB provided lunches for thousands • Deposit base increased by 7.7% attending all 10 Royal Bahamas Police Force • $31.5 million cash capital injection camps. Deputy Managing Director Vaughn Delaney, • Non-interest income rose by 6%, signifying strong left, presents cheque to a member of the Royal results from concentration in fees and other non-loan Bahamas Police Force. Senior Manager, Risk and portfolio revenue streams Sponsorship Committee member Philice Albury at right. bank of the bahamas limited • annual report 2013 • 5 irectors oard of D Board of Directors RICHARD C. DEMERITTE, the University of Buckingham, England . From CA, FCGA, CHAIRMAN 1959-1965, Mr . McDonald worked with the Certified Public Accountant, former Auditor Navios Corporation, followed by seven years General of The Bahamas, author, corporate as vice president of trading for Deltec Banking and civic director, consummate diplomat and Corporation . In 1973, he was appointed resident statesman, Dr . Richard C . Demeritte has served as manager of Swiss Italian Banking Corporation, High Commissioner to the United Kingdom and later moving to Syntex Bahamas Chemical Division as The Bahamas’ first Ambassador Extraordinary before launching his law career with Higgs & and Plenipotentiary to the Kingdom of Belgium, Johnson, followed by four years with Lobosky & the Federal Republic of Germany; Republic of Lobosky and three with Gwendolyn House . In 2003, he founded Rawson McDonald & Co . Mr . Dr. Richard C. Demeritte, France; and the European Economic Community . Chairman Throughout his career, his knowledge has been McDonald has served on several boards including sought by a wide array of private and public The Bahamas Hotel Corporation and the Bahamas boards, including the Council of the Association Telecommunications Corporation . of International Accountants where he served as the first non-British President and Chairman . He BISHOP ROSTON served as a member and past Vice-President of LIVINGSTON DAVIS The Bahamas Institute of Chartered Accountants . Community counselor, NGO director and Following his retirement from the public service prominent theologian, Bishop Roston Davis has in 1996, he established his accounting firm touched thousands of lives in The Bahamas in his MGI Richard C . Demeritte & Co . Chartered 40-year service as civic and religious leader . He Accountants & Management Consultants and began his career in the civil service as a teacher, continued to serve on numerous charitable and followed by a posting in the Customs Department . He became a drug counselor and turned his Rawson McDonald, non-profit organisation boards . He is also a Fellow Deputy Chairman of the Royal Society of Arts (London), the Certified attention to organised religion as he furthered his General Accountants Association (Canada) and the academic training . With a Master of Arts from Association of International Accountants (London), Oxford, England, a second Master’s Degree in Dr . Demeritte is a Certified Fraud Examiner . He counseling from the University of Miami, and two was awarded a Ph .D . in Public Sector Accounting honorary doctorates, Bishop Davis was elected in 2003 . President of the Bahamas Christian Council after serving in many posts on the Council . He has RAWSON McDONALD, served in the highest capacities in the Golden Gates DEPUTY CHAIRMAN World Outreach Ministries and as Assemblies of One of the country’s senior attorneys, Rawson God National Sunday School Superintendent . McDonald has had an industrious career in law His lay duties include serving on the board of and finance following honours performances the Bahamas Mortgage Corporation and Great and top prizes throughout an academic career Commission Ministries among other organisations .