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A Brief History of Bank South Pacific...... 7
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'ƌŽƵƉ ƌĞǀĞŶƵĞƐ ŚĂǀĞ ŝŶĐƌĞĂƐĞĚ ďLJ ϰй ĚƵƌŝŶŐ ƚŚĞ LJĞĂƌ͕ KƉĞƌĂƟŽŶĂůůLJ͕^W'ƌŽƵƉĞdžƉĞƌŝĞŶĐĞĚƐĞǀĞƌĂůĐŚĂŶŐĞƐĚƵƌŝŶŐ ĚŽŵŝŶĂƚĞĚ ďLJ ŶĞƚ ŝŶƚĞƌĞƐƚ ŝŶĐŽŵĞ ŐƌŽǁƚŚ ƐƵƉƉŽƌƚĞĚ ďLJ ůŽĂŶ ϮϬϭϰ͘/ŶWE'͕ƚŚĞƌĞŚĂǀĞďĞĞŶĂŵĞŶĚĞĚŽƉĞƌĂƟŶŐƉƌŽĐĞĚƵƌĞƐ ŐƌŽǁƚŚ ŝŶ ƚŚĞ ďĂŶŬ͛Ɛ ŽƌƉŽƌĂƚĞ ĂŶĚ ZĞƚĂŝů ďƵƐŝŶĞƐƐĞƐ͘ &ĞĞ ĂĐĐŽŵƉĂŶLJŝŶŐƚŚĞĐŚĂŶŐĞĚĨŽƌĞŝŐŶĞdžĐŚĂŶŐĞƚƌĂĚŝŶŐĐŽŶĚŝƟŽŶƐ͘ ŝŶĐŽŵĞŐƌŽǁƚŚŚĂƐĐŽŵĞůĂƌŐĞůLJĨƌŽŵŝŶĐƌĞĂƐŝŶŐƚƌĂŶƐĂĐƟŽŶĂů dŚĞŝŶƚƌŽĚƵĐƟŽŶŽĨƚŚĞ<ŝŶĂƵƚŽŵĂƚĞĚdƌĂŶƐĨĞƌ^LJƐƚĞŵ;<d^Ϳ͕ ǀŽůƵŵĞƐ͘dŚĞƌĞŚĂǀĞďĞĞŶŶŽĨĞĞŝŶĐƌĞĂƐĞƐĚƵƌŝŶŐƚŚĞLJĞĂƌ͘ ǁŚŝĐŚŚĂƐĞīĞĐƟǀĞůLJĂƵƚŽŵĂƚĞĚƚŚĞĚĂŝůLJĞdžĐŚĂŶŐĞŽĨĐŚĞƋƵĞƐ͕ ŚĂƐ ĂůƐŽ ƌĞƋƵŝƌĞĚ ĐŚĂŶŐĞƐ ƚŽ ƌĞůĂƚĞĚ ďƌĂŶĐŚ ƉƌŽĐĞĚƵƌĞƐ ĂŶĚ ƐŝŶĚŝĐĂƚĞĚŝŶŽƵƌŵŝĚͲLJĞĂƌƌĞƐƵůƚƐƌĞůĞĂƐĞ͕ĨŽƌĞŝŐŶĞdžĐŚĂŶŐĞ ƐƵƉƉŽƌƟŶŐŽƉĞƌĂƟŽŶƐ͘dŚĞŐŽǀĞƌŶĂŶĐĞƉƌŽĐĞƐƐĞƐĂƌŽƵŶĚĂŶƟ ĞĂƌŶŝŶŐƐŝŶWE'ĐŽŶƚƌĂĐƚĞĚŝŶƚŚĞƐĞĐŽŶĚŚĂůĨŽĨƚŚĞLJĞĂƌĂƐ ŵŽŶĞLJ ůĂƵŶĚĞƌŝŶŐ͕ ĐŚĞƋƵĞ ĂŶĚ ĞůĞĐƚƌŽŶŝĐ ĨƌĂƵĚƐ͕ ŚĂǀĞ ĂůƐŽ ĨŽƌĞŝŐŶĐƵƌƌĞŶĐLJůŝƋƵŝĚŝƚLJŝŶƚŚĞWE'ŵĂƌŬĞƚƌĞĚƵĐĞĚ͘ ƌĞƋƵŝƌĞĚĂƉƉƌŽƉƌŝĂƚĞƌŝƐŬŵĂŶĂŐĞŵĞŶƚƌĞƐƉŽŶƐĞƐ͘
BSP Annual Report 2014 5 &+$,50$1·65(3257
/Ŷ&ŝũŝ͕^W>ŝĨĞŚĂƐƐƚĂƌƚĞĚƚŚĞŝŵƉůĞŵĞŶƚĂƟŽŶŽĨŝƚƐŶĞǁŝŶƐƵƌĂŶĐĞ ^ƉŽŶƐŽƌƐŚŝƉ ĂŶĚ ƉƌŽŵŽƟŽŶĂů ĂĐƟǀŝƟĞƐ ƌĞůĂƟŶŐ ƚŽ ƚŚĞ ϮϬϭϱ ƉůĂƞŽƌŵ͕ĂŶĚ^WĂŶŬŚĂƐĐŽŵŵĞŶĐĞĚŝŵƉůĞŵĞŶƚĂƟŽŶŽĨĂ WĂĐŝĮĐ'ĂŵĞƐŐĂƚŚĞƌĞĚƉĂĐĞŝŶϮϬϭϰ͘^WĂůƐŽƐƵƉƉŽƌƚĞĚƚŚĞ ŶĞǁĐŽƌĞďĂŶŬŝŶŐƉůĂƞŽƌŵ͘/ŶƚŚĞ^ŽůŽŵŽŶ/ƐůĂŶĚƐ͕ƚŚĞƌĞŚĂƐ ϮϬϭϰWE''ĂŵĞƐ͕ŶŽǁĂŵĂũŽƌŶĂƟŽŶĂůƐƉŽƌƟŶŐƚŽƵƌŶĂŵĞŶƚ ďĞĞŶĐŽŶƟŶƵŝŶŐĂĐƟǀŝƚLJĂƌŽƵŶĚƚŚĞŝŶƚƌŽĚƵĐƟŽŶĂŶĚĞdžƉĂŶƐŝŽŶ ĨƌŽŵǁŚŝĐŚWE'ŝĚĞŶƟĮĞƐŝƚƐĨƵƚƵƌĞƐƉŽƌƟŶŐƚĂůĞŶƚ͘ ŽĨĞůĞĐƚƌŽŶŝĐďĂŶŬŝŶŐƐĞƌǀŝĐĞƐ͘^WĂƉŝƚĂůĂůƐŽƉĂƌƟĐŝƉĂƚĞĚŝŶ ĂŶĂĚǀŝƐŽƌLJĐĂƉĂĐŝƚLJĨŽƌ/ŶƚĞƌŽŝůŝŶƚŚĞƐĂůĞŽĨŝƚƐĚŽǁŶƐƚƌĞĂŵ /ŶϮϬϭϱ͕ĂŶŝŵƉƌŽǀŝŶŐďƵƚĨƌĂŐŝůĞŐůŽďĂůĞĐŽŶŽŵLJǁŝůůĐŽŶƟŶƵĞ ĂƐƐĞƚƐ ƚŽ WƵŵĂ ŶĞƌŐLJ͕ ĚƵƌŝŶŐ ϮϬϭϰ͕ Ă ŵĂũŽƌ ĐŽƌƉŽƌĂƚĞ ƚŽƉŽƐĞĐŚĂůůĞŶŐĞƐ͘'ƌŽǁƚŚƌĂƚĞƐĂƌĞĞdžƉĞĐƚĞĚƚŽƐůŽǁƐůŝŐŚƚůLJ ƚƌĂŶƐĂĐƟŽŶŝŶWE'͛ƐĞŶĞƌŐLJƐĞĐƚŽƌ͘ ŝŶƚŚĞĞŵĞƌŐŝŶŐŵĂƌŬĞƚĞĐŽŶŽŵŝĞƐŽĨƐŝĂ͕ĨƌŝĐĂ͕ ƵƌĂƐŝĂĂŶĚ ^ŽƵƚŚͲ>ĂƟŶ ŵĞƌŝĐĂ͘ /Ŷ ƚŚĞ ƚƌĂĚŝƟŽŶĂů ĚĞǀĞůŽƉĞĚ ĞĐŽŶŽŵŝĞƐ &ƌŽŵĂƐƚƌĂƚĞŐŝĐůĞĂĚĞƌƐŚŝƉƉĞƌƐƉĞĐƟǀĞ͕ƐĞǀĞƌĂůĚĞǀĞůŽƉŵĞŶƚƐ ŽĨ ƵƌŽƉĞ ĂŶĚ EŽƌƚŚ ŵĞƌŝĐĂ ƚŚĞ ŽƵƚůŽŽŬ ŝƐ ŝŵƉƌŽǀŝŶŐ͕ ďƵƚ ŝŶ ϮϬϭϰ ĂƌĞ ŶŽƚĂďůĞ͘ dŚĞ 'ƌŽƵƉ ůĂƵŶĐŚĞĚ ŝƚƐ ƌĞǀŝƐĞĚ sŝƐŝŽŶ͕ ĨƵŶĚĂŵĞŶƚĂůƐĂƌĞŶŽƚƌŽďƵƐƚ͕ĂŶĚƚŚĞLJĂƌĞĨŽƌĞĐĂƐƚƚŽƌĞŵĂŝŶ DŝƐƐŝŽŶ͕ ĂŶĚ sĂůƵĞƐ ^ƚĂƚĞŵĞŶƚƐ͕ ĂŶĚ ƚŚĞƐĞ ĂƌĞ ƉƌĞƐĞŶƚĞĚ ƐƵďĚƵĞĚ͘WE'͛ƐŐƌŽǁƚŚƉƌŽƐƉĞĐƚƐƌĞŵĂŝŶƌĞůĂƟǀĞůLJƐƚƌŽŶŐǁŝƚŚ ĞůƐĞǁŚĞƌĞŝŶƚŚŝƐĂŶŶƵĂůƌĞƉŽƌƚ͘dŚĞsŝƐŝŽŶ^ƚĂƚĞŵĞŶƚŚĂƐďĞĞŶ >E'ĞdžƉŽƌƚƐďĞĐŽŵŝŶŐŵŽƌĞƉƌŽŵŝŶĞŶƚŝŶϮϬϭϱĂŶĚ&ŝũŝĂŶĚƚŚĞ ďƌŽĂĚĞŶĞĚƚŽĐĂƉƚƵƌĞƚŚĞ'ƌŽƵƉ͛ƐŽƉĞƌĂƟŽŶƐďĞLJŽŶĚďĂŶŬŝŶŐ͕ ^ŽůŽŵŽŶ/ƐůĂŶĚƐĐŽŶƟŶƵĞƚŽƐŚŽǁƉƌŽŵŝƐŝŶŐƐŝŐŶƐŽĨƌĞĐŽǀĞƌLJ ŝƚƐ ĂƐƉŝƌĂƟŽŶƐ ďĞLJŽŶĚ ŝƚƐ ŚŽŵĞ ŵĂƌŬĞƚ͕ ĂŶĚ ďĞLJŽŶĚ ũƵƐƚ Ă ĂŶĚƌĞƚƵƌŶƚŽŶŽƌŵĂůĐLJ͘ ĐŽŵŵĞƌĐŝĂůƌĞůĂƟŽŶƐŚŝƉǁŝƚŚŝƚƐƐƚĂŬĞŚŽůĚĞƌƐ͘ ^WĞdžƉĞĐƚƐƚŚĂƚŽǀĞƌƚŚĞŵĞĚŝƵŵƚŽůŽŶŐƚĞƌŵ͕WĂĐŝĮĐƌĞŐŝŽŶĂů dŚĞsĂůƵĞŽĨ͞ŽŵŵƵŶŝƚLJ͟ŚĂƐďĞĞŶĂĚĚĞĚƚŽ^W'ƌŽƵƉĞdžŝƐƟŶŐ ĞĐŽŶŽŵŝĐƌĞůĂƟŽŶƐŚŝƉƐĂŶĚŝŶƚĞƌĂĐƟŽŶƐǁŝůůŐƌŽǁ͕ĂŶĚWE'ǁŝůů ǀĂůƵĞƐŽĨŝŶƚĞŐƌŝƚLJ͕ůĞĂĚĞƌƐŚŝƉ͕ƉĞŽƉůĞ͕ƚĞĂŵǁŽƌŬ͕ƋƵĂůŝƚLJ͕ĂŶĚ ƉůĂLJĂůĞĂĚŝŶŐĞĐŽŶŽŵŝĐƌŽůĞŝŶƚŚĞƌĞŐŝŽŶ͘^WƉůĂŶƐƚŽďĞƉĂƌƚ ƉƌŽĨĞƐƐŝŽŶĂůŝƐŵ͘ dŚĞƐĞ ǀĂůƵĞƐ ĂƌĞ ďĞŝŶŐ ĞŵďĞĚĚĞĚ ŝŶ ƚŚĞ ŽĨ ƚŚĂƚ ŐƌŽǁƚŚ͕ ĚĞůŝǀĞƌŝŶŐ ǀĂůƵĞĚ͕ ĞīĞĐƟǀĞ ĮŶĂŶĐŝĂů ƉƌŽĚƵĐƚƐ ŽƌŐĂŶŝƐĂƟŽŶ ƚŚƌŽƵŐŚ ĂŶŽƚŚĞƌ ƐƚƌĂƚĞŐŝĐ ŝŶŝƟĂƟǀĞ͕ ƚŚĞ ŝĐĂƌĞ ĂŶĚ ƐĞƌǀŝĐĞƐ ƚŽ ŝƚƐ ŵĂƌŬĞƚƐ͕ ŝŶ ĂŶ ĞĸĐŝĞŶƚ ĂŶĚ ƌĞƐƉŽŶƐŝďůĞ ĐƵƐƚŽŵĞƌƐĞƌǀŝĐĞƉƌŽŐƌĂŵ͕ǁŚŝĐŚŝƐĚĞƐŝŐŶĞĚƚŽŝŶƐƟůĞīĞĐƟǀĞ ŵĂŶŶĞƌ͘ ZĞŇĞĐƟŶŐ ƚŚĞ ƐƚƌĂƚĞŐŝĐ ŝŵƉŽƌƚĂŶĐĞ ŽĨ ƚŚĞ ^ŽƵƚŚ ƉƌĂĐƟĐĞƐĂƌŽƵŶĚƌĞƐƉŽŶƐŝǀĞŶĞƐƐ͕ĂĐĐŽƵŶƚĂďŝůŝƚLJ͕ĂŶĚƚĞĂŵǁŽƌŬ WĂĐŝĮĐƌĞŐŝŽŶƚŽƚŚĞ^W'ƌŽƵƉ͛ƐďƵƐŝŶĞƐƐ͕ŝŶ:ĂŶƵĂƌLJϮϬϭϱ͕^W ŝŶƉƌŽǀŝĚŝŶŐĐƵƐƚŽŵĞƌƐĞƌǀŝĐĞ͘/ŶϮϬϭϰ͕ƚŚĞ'ƌŽƵƉĂůƐŽůĂƵŶĐŚĞĚ ĂŶŶŽƵŶĐĞĚŝƚƐĂŐƌĞĞŵĞŶƚǁŝƚŚtĞƐƚƉĂĐĂŶŬŝŶŐŽƌƉŽƌĂƟŽŶ͕ Ă ƌĞǀĂŵƉĞĚ ůĞĂĚĞƌƐŚŝƉ ĚĞǀĞůŽƉŵĞŶƚ ƉƌŽŐƌĂŵ ƉƌŽǀŝĚŝŶŐ Ă ĨŽƌŝƚƚŽĂĐƋƵŝƌĞƚŚĞůĂƩĞƌ͛ƐďĂŶŬŝŶŐŽƉĞƌĂƟŽŶƐŝŶƚŚĞ^ŽůŽŵŽŶ ƐƚƌƵĐƚƵƌĞĚŵĂŶĂŐĞŵĞŶƚƚƌĂŝŶŝŶŐƉƌŽŐƌĂŵĨŽƌLJŽƵŶŐůĞĂĚĞƌƐŝŶ /ƐůĂŶĚƐ͕ sĂŶƵĂƚƵ͕ dŽŶŐĂ͕ ^ĂŵŽĂ͕ ĂŶĚ ƚŚĞ ŽŽŬ /ƐůĂŶĚƐ͘ dŚĞ ^W͘ ƚƌĂŶƐĂĐƟŽŶŝƐƐƵďũĞĐƚƚŽƌĞŐƵůĂƚŽƌLJĂƉƉƌŽǀĂů͕ǁŚŝĐŚŝƐĞdžƉĞĐƚĞĚ ĂƌŽƵŶĚŵŝĚϮϬϭϱ͘dŚŝƐƉƌŽũĞĐƚǁŝůůƌĞĐĞŝǀĞĨŽĐƵƐŝŶϮϬϭϱĂŝŵŝŶŐ dŚĞďƵƐŝŶĞƐƐĞŶǀŝƌŽŶŵĞŶƚŝŶƚŚĞŵĂƌŬĞƚƐŝŶǁŚŝĐŚ^W'ƌŽƵƉ ƚŽĂĐŚŝĞǀĞĂƐŵŽŽƚŚƚƌĂŶƐŝƟŽŶŽĨƚŚĞďƵƐŝŶĞƐƐĞƐĨƌŽŵtĞƐƚƉĂĐ ŽƉĞƌĂƚĞƐ͕ ŚĂǀĞ ĞdžƉĞƌŝĞŶĐĞĚ ƌĞůĂƟǀĞůLJ ŵŽĚĞƌĂƚĞ ůĞǀĞůƐ ŽĨ ƚŽ^W͕ďLJƚŚĞĞŶĚŽĨƚŚĞLJĞĂƌ͘ ĂĐƟǀŝƚLJŝŶϮϬϭϰ͘/ŶWE'͕ĐŽŵƉůĞƟŽŶŽĨƚŚĞ dždžŽŶDŽďŝůWE' >E'ƉƌŽũĞĐƚŝŶŵŝĚϮϬϭϰůĞĚƚŽĂƐůŽǁĚŽǁŶŝŶĞĐŽŶŽŵŝĐĂĐƟǀŝƚLJ͕ Ɛ^W'ƌŽƵƉ͛ƐďĂůĂŶĐĞƐŚĞĞƚŐƌŽǁƐ͕ŝƚƐƐƚƌĂƚĞŐŝĐŽƉƟŽŶƐĂƌĞ ĂůƐŽĂŐĂŝŶƐƚĂďĂĐŬĚƌŽƉŽĨĚĞĐůŝŶŝŶŐŐůŽďĂůĐŽŵŵŽĚŝƚLJƉƌŝĐĞƐ͘ ĂůƐŽ ďƌŽĂĚĞŶĞĚ ƐŽ ƚŚĂƚ ŝƚ ĐĂŶ ƌĞĂůŝƐƟĐĂůůLJ ĐŽŶƐŝĚĞƌ ĨƵƌƚŚĞƌ 'ŽǀĞƌŶŵĞŶƚ ĚĞǀĞůŽƉŵĞŶƚ ĞdžƉĞŶĚŝƚƵƌĞ ŚĂƐ ĐĞŶƚƌĞĚ ĂƌŽƵŶĚ ĚŝǀĞƌƐŝĮĐĂƟŽŶŽĨŝƚƐWĂĐŝĮĐďƵƐŝŶĞƐƐ͕ĂŶĚĂůƐŽĚĞǀĞůŽƉĂĨŽĐƵƐ ŝŶĨƌĂƐƚƌƵĐƚƵƌĞƉƌŽũĞĐƚƐƚŽƐƵƉƉŽƌƚŝŶǀĞƐƚŵĞŶƚĂĐƟǀŝƚLJ͕ŝŶĐůƵĚŝŶŐ ŽŶ ďƵƐŝŶĞƐƐ ŽƉƉŽƌƚƵŶŝƟĞƐ ŝŶ ŐƌŽǁƚŚ ƌĞŐŝŽŶƐ ĂĚũĂĐĞŶƚ ƚŽ ƚŚĞ ƉƌŽũĞĐƚƐ ƌĞůĂƚĞĚ ƚŽ ƚŚĞ ϮϬϭϱ WĂĐŝĮĐ ŐĂŵĞƐ͘ /Ŷ &ŝũŝ͕ ƚŚĞ ϮϬϭϰ WĂĐŝĮĐ͘dŚĞϮϬϭϰƌĞƐƵůƚƐĂƌĞĞdžƚƌĞŵĞůLJƉůĞĂƐŝŶŐĂƐƚŚĞ'ƌŽƵƉ ŶĂƟŽŶĂů ĞůĞĐƟŽŶƐ ŚĂƐ ƐƵƉƉŽƌƚĞĚ ƌĞŶĞǁĞĚ ƉŽƐŝƟǀĞ ƐĞŶƟŵĞŶƚ ŚĂƐ ŵĂŶĂŐĞĚ ƚŽ ĂĐŚŝĞǀĞ ƐŽŵĞ ŝŵƉŽƌƚĂŶƚ ŽƉĞƌĂƟŽŶĂů ĂŶĚ ŝŶ ƚĞƌŵƐ ŽĨ ŝŶǀĞƐƚŵĞŶƚƐ ŝŶ ŬĞLJ ƐĞĐƚŽƌƐ͕ ĂŶĚ ƚŽƵƌŝƐŵ ĂĐƟǀŝƚLJ ƐƚƌĂƚĞŐŝĐ ŵŝůĞƐƚŽŶĞƐ͕ ǁŚŝĐŚ ĂƌĞ ƐĞƚ ƚŽ ƉƌŽǀŝĚĞ ůŽŶŐĞƌ ƚĞƌŵ ŚĂƐĂůƐŽďĞĞŶƉŽƐŝƟǀĞůLJŝŵƉĂĐƚĞĚ͘/ŶƚŚĞ^ŽůŽŵŽŶ/ƐůĂŶĚƐ͕ƚŚĞ ďĞŶĞĮƚƐŝŶƚĞƌŵƐŽĨĞĸĐŝĞŶƚĐƵƐƚŽŵĞƌƐĞƌǀŝĐĞ͕ĐƵůƚƵƌĂůĐŚĂŶŐĞ͕ ĂŐƌŝĐƵůƚƵƌĞƐĞĐƚŽƌĂŶĚƟŵďĞƌŚĂǀĞƉĞƌĨŽƌŵĞĚǁĞůůŝŶϮϬϭϰ͕ĂŶĚ ĂŶĚůĞĂĚĞƌƐŚŝƉƐƵĐĐĞƐƐŝŽŶ͘/ĐŽŵŵĞŶĚŵĂŶĂŐĞŵĞŶƚĂŶĚƐƚĂī ŝŶƚĞƌŶĂƟŽŶĂůƐƵƉƉŽƌƚĨŽƌĚĞǀĞůŽƉŵĞŶƚĞīŽƌƚƐĐŽŶƟŶƵĞƐ͘ ŽŶƚŚĞĂĐŚŝĞǀĞŵĞŶƚƐŽĨϮϬϭϰ͘
^WĐŽŶƟŶƵĞƐƚŽƉůĂLJĂůĞĂĚŝŶŐƌŽůĞŝŶĮŶĂŶĐŝĂůŝŶĐůƵƐŝŽŶĞīŽƌƚƐ ^WŝƐďƵŝůĚŝŶŐĂǀĞƌLJĐĂƉĂďůĞƚĞĂŵŽĨƉĞŽƉůĞĂĐƌŽƐƐƚŚĞWĂĐŝĮĐ͕ ŝŶ ŝƚƐ WĂĐŝĮĐ ŵĂƌŬĞƚƐ͕ ĨƌĞƋƵĞŶƚůLJ ŝŶ ƉĂƌƚŶĞƌƐŚŝƉ ǁŝƚŚ ŝŶĚƵƐƚƌLJ ǁŚŽ/ĂŵĐŽŶĮĚĞŶƚǁŝůůĐŽŶƟŶƵĞƚŽŵĞĞƚƚŚĞĐŚĂůůĞŶŐĞƐĂŚĞĂĚ͕ ƌĞŐƵůĂƚŽƌƐ͘ dŚĞ ĞdžƉĂŶƐŝŽŶ ŽĨ ĞůĞĐƚƌŽŶŝĐ ďĂŶŬŝŶŐ ƐĞƌǀŝĐĞƐ ŝƐ ĐŽŶƟŶƵŽƵƐůLJ ŝŵƉƌŽǀĞ ƐĞƌǀŝĐĞƐ ĂŶĚ ƉƌŽĚƵĐƚƐ ƚŽ Ă ŐƌŽǁŝŶŐ ĂĐĐŽŵƉĂŶŝĞĚ ďLJ ďĂŶŬŝŶŐ ĞĚƵĐĂƟŽŶ ĂŶĚ ĮŶĂŶĐŝĂů ůŝƚĞƌĂĐLJ ŶƵŵďĞƌ ŽĨ ĐƵƐƚŽŵĞƌƐ͕ ĂŶĚ ĚĞůŝǀĞƌ ĐŽŵƉĞƟƟǀĞ ƌĞƚƵƌŶƐ ĨŽƌ ĂĐƟǀŝƟĞƐĐĂƌƌŝĞĚŽƵƚďLJĚĞĚŝĐĂƚĞĚ^WƉĞƌƐŽŶŶĞůƚŽĐƵƐƚŽŵĞƌƐ ƐŚĂƌĞŚŽůĚĞƌƐ͕ŝŶϮϬϭϱĂŶĚďĞLJŽŶĚ͘ ƚLJƉŝĐĂůůLJŶĞǁůLJŝŶƚƌŽĚƵĐĞĚƚŽďĂŶŬŝŶŐƐĞƌǀŝĐĞƐ͘ dŚĞ ŽƌŐĂŶŝƐĂƟŽŶ ŝƐ ĞdžƉĂŶĚŝŶŐ ŝŶ ƚŚĞ ƌĞŐŝŽŶ ĨƌŽŵ Ă ƉŽƐŝƟŽŶ ^W ŚĂƐ ĐŽŶƟŶƵĞĚ ƚŽ ĞŶŐĂŐĞ ǁŝƚŚ͕ ĂŶĚ ďĞ Ă ƉĂƌƚ ŽĨ͕ ƚŚĞ ŽĨ ƐƚƌĞŶŐƚŚ ŝŶ ŝƚƐ ĐŽƌĞ ŵĂƌŬĞƚƐ ŽĨ WE'͕ &ŝũŝ ĂŶĚ ƚŚĞ ^ŽůŽŵŽŶ ĐŽŵŵƵŶŝƟĞƐ ǁŚĞƌĞ ŝƚ ŽƉĞƌĂƚĞƐ͘ /Ŷ ϮϬϭϰ ŽŵŵƵŶŝƚLJ ƐƵƉƉŽƌƚ /ƐůĂŶĚƐ͘/ůŽŽŬĨŽƌǁĂƌĚǁŝƚŚĂůůƐƚĂŬĞŚŽůĚĞƌƐ͕ƚŽĂŶŬŽĨ^ŽƵƚŚ ƉƌŽũĞĐƚƐŚĂǀĞĐŽŶƟŶƵĞĚŝŶWE'͕^ŽůŽŵŽŶ/ƐůĂŶĚƐĂŶĚ&ŝũŝ͕ǁŽƌƚŚ WĂĐŝĮĐ͛ƐƐƵĐĐĞƐƐŝŶƚŚĞĐŽŵŝŶŐLJĞĂƌ͘ ŽǀĞƌϭŵŝůůŝŽŶ<ŝŶĂ͘ŽůůĂďŽƌĂƟŽŶƐǁŝƚŚůŽĐĂůƐƉŽƌƚƐĂŶĚĐŚĂƌŝƚLJ ŽƌŐĂŶŝƐĂƟŽŶƐ͕ ĐŽŵŵƵŶŝƚLJ͕ ŶŽŶͲŐŽǀĞƌŶŵĞŶƚ͕ ĂŶĚ ŐŽǀĞƌŶŵĞŶƚ ŽƌŐĂŶŝƐĂƟŽŶƐŚĂǀĞĐŽŶƟŶƵĞĚĂƐƉĂƌƚŽĨƚŚĞ'ƌŽƵƉ͛ƐĐŽŵŵƵŶŝƚLJ ĞŶŐĂŐĞŵĞŶƚƐƚƌĂƚĞŐLJ͕ƚŽďƌŝŶŐƐŝŵƉůĞĂŶĚƵƐĞĨƵůŝŵƉƌŽǀĞŵĞŶƚƐ ƚŽƉĞŽƉůĞ͛ƐůŝǀĞƐ͘
6 BSP Annual Report 2014 $%5,()+,6725<2) %$1.6287+3$&,),& ĂŶŬ^ŽƵƚŚWĂĐŝĮĐ>ŝŵŝƚĞĚŽƉĞŶĞĚŝƚƐĚŽŽƌƐŝŶϭϵϱϳŝŶWŽƌƚDŽƌĞƐďLJĂƐĂďƌĂŶĐŚŽĨƚŚĞ EĂƟŽŶĂůĂŶŬŽĨƵƐƚƌĂůĂƐŝĂ>ŝŵŝƚĞĚ͘/ŶϭϵϵϱĂĐŽŶƐŽƌƟƵŵŽĨWĂƉƵĂEĞǁ'ƵŝŶĞĂďƵƐŝŶĞƐƐĞƐ ĂĐƋƵŝƌĞĚƚŚĞďĂŶŬĐƌĞĂƟŶŐƚŚĞĮƌƐƚĂŶĚŽŶůLJWE'ƉƌŝǀĂƚĞƐĞĐƚŽƌŽǁŶĞĚďĂŶŬ͘ ĂŶŬ^ŽƵƚŚWĂĐŝĮĐƉƵƌĐŚĂƐĞĚƚŚĞ^ƚĂƚĞKǁŶĞĚͲWĂƉƵĂEĞǁ'ƵŝŶĞĂĂŶŬŝŶŐŽƌƉŽƌĂƟŽŶ ;WE'ͲĨŽƌŵĞƌůLJWE'ͿŝŶϮϬϬϮĐƌĞĂƟŶŐƚŚĞůĂƌŐĞƐƚĂŶŬŝŶWE'͘KƚŚĞƌĂĐƋƵŝƐŝƟŽŶƐ ĨŽůůŽǁĞĚ͗EĂƟŽŶĂůĂŶŬŽĨ^ŽůŽŵŽŶ/ƐůĂŶĚƐϮϬϬϱ͕,ĂďŝďĂŶŬŝŶ&ŝũŝŝŶϮϬϬϲ͕ŽůŽŶŝĂů'ƌŽƵƉ ŽĨŽŵƉĂŶŝĞƐ;ĂŶŬŝŶŐΘ>ŝĨĞƵƐŝŶĞƐƐĞƐͿŝŶ&ŝũŝŝŶϮϬϭϬ͘ ĂŶŬ^ŽƵƚŚWĂĐŝĮĐƌĞďƌĂŶĚĞĚƚŽďĞĐŽŵĞ͞^W͟ŝŶϮϬϬϵ͘KƵƌƐŚĂƌĞŚŽůĚĞƌƐŝŶĐůƵĚĞŵĂũŽƌ WE'/ŶƐƟƚƵƟŽŶƐʹ/W͕EĂƐĨƵŶĚ͕EĂŵďĂǁĂŶ^ƵƉĞƌ͕WĞƚƌŽůĞƵŵZĞƐŽƵƌĐĞƐ<ƵƚƵďƵ͕ƌĞĚŝƚ ŽƌƉŽƌĂƟŽŶ͕Ds/>͕WE'dĞĂĐŚĞƌƐ^ĂǀŝŶŐƐΘ>ŽĂŶ͕ŽŵƌĂĚĞdƌƵƐƚĞĞƐ͕ĂŶĚƚŚĞ/ŶƚĞƌŶĂƟŽŶĂů &ŝŶĂŶĐĞŽƌƉŽƌĂƚĞ;/&Ϳ͘ /ŶϮϬϭϮ͕^W͛ƐĂĐĐŽƵŶƚŽƉĞŶŝŶŐƉƌŽĐĞƐƐĞŵƉůŽLJŝŶŐĂƚĂďůĞƚĐŽŵƉƵƚĞƌĂŶĚŝŶƐƚĂŶƚĐĂƌĚ ŝƐƐƵĂŶĐĞ͕ǁŽŶƚŚĞĂǁĂƌĚĨŽƌƚŚĞǁŽƌůĚ͛ƐĞƐƚĂŶŬ>ĞĚDŽďŝůĞDŽŶĞLJWƌŽŐƌĂŵĂƚƚŚĞϮϬϭϮ ŽŶŶĞĐƚĞĚtŽƌůĚ'ůŽďĂůǁĂƌĚƐ͘ ĂŶŬ^ŽƵƚŚWĂĐŝĮĐĐŽŶƟŶƵĞƐƚŽďĞĂĚŽŵŝŶĂŶƚĨŽƌĐĞŝŶƚŚĞŵĂƌŬĞƚůĞĂĚŝŶŐƚŚĞǁĂLJǁŝƚŚ ŝŶŶŽǀĂƟŽŶĂŶĚƚĞĐŚŶŽůŽŐLJ͘ /ŶϮϬϭϰ͕^W'ƌŽƵƉĂĐŚŝĞǀĞĚůŽĂŶŐƌŽǁƚŚŽĨϮϴй͕ĂŶĚĂϰйƌĞĚƵĐƟŽŶŝŶŽƉĞƌĂƟŶŐĐŽƐƚƐ͕ ƐƵƉƉŽƌƟŶŐŐƌŽǁƚŚŝŶĂŶŶƵĂůƉƌŽĮƚƚŽŽǀĞƌ<ϱϬϳŵŝůůŝŽŶ͘dŚĞƌĞǁĞƌĞŶŽŝŶĐƌĞĂƐĞƐŝŶĨĞĞƐ ĚƵƌŝŶŐƚŚĞLJĞĂƌ͕ďƵƚĨĞĞŝŶĐŽŵĞŐƌĞǁĂƐƚŚĞǀŽůƵŵĞŽĨĐƵƐƚŽŵĞƌƚƌĂŶƐĂĐƟŽŶƐĐŽŶƟŶƵĞĚ ƚŽŝŶĐƌĞĂƐĞ͕ƉĂƌƟĐƵůĂƌůLJƚŚƌŽƵŐŚƚŚĞĞůĞĐƚƌŽŶŝĐďĂŶŬŝŶŐĐŚĂŶŶĞůƐ͕ǁŚŝĐŚŶŽǁƌĞƉƌĞƐĞŶƚ ŵŽƌĞƚŚĂŶϴϬйŽĨƚŽƚĂůĐƵƐƚŽŵĞƌƚƌĂŶƐĂĐƟŽŶƐ͘ TOTAL ASSETS NET PROFIT AFTER TAX 507.339 15.76 15.88 436.828 407.744 13.33 355.947 11.68 Kina Billion Kina Million 10.03 283.147 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 BSP Annual Report 2014 7 'ŝƌůŝŶdƌĂĚŝƟŽŶĂůĂƫƌĞǁĞůĐŽŵŝŶŐƚŚĞďŽĂƌĚ ŽĨĚŝƌĞĐƚŽƌƐĂƚDƚ͘,ĂŐĞŶďƌĂŶĐŚ͘ BOARD OF CHAIRMAN’S DIRECTORSREPORT 8 BSP Annual Report 2014 %2$5'2)',5(&7256 KOSTAS CONSTANTINOU, OBE ͮ ŚĂŝƌŵĂŶ ͮŝƌĞĐƚŽƌ ƐŝŶĐĞ Ɖƌŝů ϮϬϬϵ͘ ƉƉŽŝŶƚĞĚ ŚĂŝƌŵĂŶ &ĞďƌƵĂƌLJϮϬϭϭ͘ <ŽƐƚĂƐŽŶƐƚĂŶƟŶŽƵŝƐĂƉƌŽŵŝŶĞŶƚďƵƐŝŶĞƐƐĮŐƵƌĞŝŶWĂƉƵĂEĞǁ'ƵŝŶĞĂ͕ŚŽůĚŝŶŐĂŶƵŵďĞƌŽĨŚŝŐŚůĞǀĞů ƉƵďůŝĐĂŶĚƉƌŝǀĂƚĞƐĞĐƚŽƌĂƉƉŽŝŶƚŵĞŶƚƐ͘,ĞŝƐĂŚĂŝƌŵĂŶŽĨǀĂƌŝŽƵƐĐŽŵƉĂŶŝĞƐ͕ŝŶĐůƵĚŝŶŐŝƌǁĂLJƐ,ŽƚĞů >ŝŵŝƚĞĚ Θ ŝƌǁĂLJƐ ZĞƐŝĚĞŶĐĞƐ >ŝŵŝƚĞĚ͕ >ĂŵĂŶĂ ,ŽƚĞů >ŝŵŝƚĞĚ͕ >ĂŵĂŶĂ ĞǀĞůŽƉŵĞŶƚ >ŝŵŝƚĞĚ͕ ,ĞďŽƵ ŽŶƐƚƌƵĐƟŽŶƐ͕ůŽƚĂƵ/ŶƚĞƌŶĂƟŽŶĂů,ŽƚĞůĂŶĚ'ĂnjĞůůĞ/ŶƚĞƌŶĂƟŽŶĂů,ŽƚĞů͘,ĞŝƐĂŝƌĞĐƚŽƌŽĨ,ĞƌŝƚĂŐĞWĂƌŬ ,ŽƚĞů͕,ŽŶŝĂƌĂ͕ĂŶĚ'ƌĂŶĚWĂĐŝĮĐ,ŽƚĞů͕&ŝũŝ͘<ŽƐƚĂƐŝƐĂŝƌĞĐƚŽƌŽĨůŝƐƚĞĚĐŽŵƉĂŶLJ͗Kŝů^ĞĂƌĐŚ>ŝŵŝƚĞĚ͘ ,ĞŝƐŚĂŝƌŵĂŶŽĨϮϬϭϱWĂĐŝĮĐ'ĂŵĞƐƵƚŚŽƌŝƚLJƐŝŶĐĞϮϬϭϭ͕ĞƉƵƚLJWƌĞƐŝĚĞŶƚŽĨ ŵƉůŽLJĞƌƐ&ĞĚĞƌĂƟŽŶ ŽĨWĂƉƵĂEĞǁ'ƵŝŶĞĂ͕,ŽŶŽƌĂƌLJŽŶƐƵůĨŽƌ'ƌĞĞĐĞŝŶWĂƉƵĂEĞǁ'ƵŝŶĞĂĂŶĚdƌĂĚĞŽŵŵŝƐƐŝŽŶĞƌŽĨ ^ŽůŽŵŽŶ/ƐůĂŶĚƐƚŽWĂƉƵĂEĞǁ'ƵŝŶĞĂ͘ ROBIN FLEMING, MBA, MMGT | Kͮ ŝƌĞĐƚŽƌƐŝŶĐĞ:ƵŶĞϮϬϭϯ͘ ZŽďŝŶ&ůĞŵŝŶŐǁĂƐĂƉƉŽŝŶƚĞĚ KŽĨĂŶŬŽĨ^ŽƵƚŚWĂĐŝĮĐ>ŝŵŝƚĞĚŝŶ:ƵŶĞϮϬϭϯ͘ĞĨŽƌĞŚŝƐĂƉƉŽŝŶƚŵĞŶƚ ĂƐ K͕ŚĞŚĂĚďĞĞŶĞƉƵƚLJ KĂŶĚŚŝĞĨZŝƐŬKĸĐĞƌƐŝŶĐĞϮϬϬϵ͘WƌŝŽƌƚŽƚŚĂƚ͕Dƌ͘&ůĞŵŝŶŐŚĞůĚƐĞŶŝŽƌ ĞdžĞĐƵƟǀĞ ƌŽůĞƐ ĂƐ ŚŝĞĨ ZŝƐŬ KĸĐĞƌ͕ 'ĞŶĞƌĂů DĂŶĂŐĞƌ ŽƌƉŽƌĂƚĞ Θ /ŶƚĞƌŶĂƟŽŶĂů͕ ĂŶĚ ,ĞĂĚ ŽĨ ZŝƐŬ DĂŶĂŐĞŵĞŶƚǁŝƚŚ^W͘WƌŝŽƌƚŽƚŚĞŵĞƌŐĞƌŽĨĂŶŬŽĨ^ŽƵƚŚWĂĐŝĮĐ>ŝŵŝƚĞĚĂŶĚWE'>ŝŵŝƚĞĚ͕ZŽďŝŶ ŚĞůĚƐĞŶŝŽƌŵĂŶĂŐĞŵĞŶƚƌŽůĞƐǁŝƚŚWE'͘,ĞŚĂƐǁŽƌŬĞĚŝŶWE'ĨŽƌŽǀĞƌϯϬLJĞĂƌƐĂŶĚŚŽůĚƐĂDĂŶĚ ĂDĂƐƚĞƌŽĨDĂŶĂŐĞŵĞŶƚĨƌŽŵŚĂƌůĞƐ^ƚƵƌƚhŶŝǀĞƌƐŝƚLJ͘ TOM FOX, OBE, BEc | ĞƉƵƚLJŚĂŝƌŵĂŶ͕EŽŶͲ džĞĐƵƟǀĞŝƌĞĐƚŽƌͮ ŝƌĞĐƚŽƌƐŝŶĐĞ:ƵŶĞϭϵϵϯ͘ dŚŽŵĂƐ &Ždž ŚŽůĚƐ Ă ĂĐŚĞůŽƌ ŽĨ ĐŽŶŽŵŝĐƐ ĚĞŐƌĞĞ ĨƌŽŵ ƚŚĞ hŶŝǀĞƌƐŝƚLJ ŽĨ WĂƉƵĂ EĞǁ 'ƵŝŶĞĂ͘ ,Ğ ĐŽŵŵĞŶĐĞĚŚŝƐĐĂƌĞĞƌǁŝƚŚƚŚĞZĞƐĞƌǀĞĂŶŬŽĨƵƐƚƌĂůŝĂ͕ĂŶĚŐĂŝŶĞĚĞdžƉĞƌŝĞŶĐĞŝŶƐĞŶŝŽƌŵĂŶĂŐĞŵĞŶƚ ƌŽůĞƐ ǁŝƚŚŝŶ ƐĞŵŝͲŐŽǀĞƌŶŵĞŶƚ ŝŶƐƟƚƵƟŽŶƐ͕ ĂŶĚ ƉƌŝǀĂƚĞ ƐĞĐƚŽƌ ĐŽŵƉĂŶŝĞƐ͕ ŝŶĐůƵĚŝŶŐ ƐĞƌǀŝŶŐ ĂƐ ƚŚĞ DĂŶĂŐŝŶŐŝƌĞĐƚŽƌŽĨƚŚĞ/ŶǀĞƐƚŵĞŶƚŽƌƉŽƌĂƟŽŶŽĨWĂƉƵĂEĞǁ'ƵŝŶĞĂĨŽƌĞŝŐŚƚLJĞĂƌƐ͘,ŝƐŽƚŚĞƌĐƵƌƌĞŶƚ ĚŝƌĞĐƚŽƌƐŚŝƉƐŝŶĐůƵĚĞ͕^WĂƉŝƚĂů>ŝŵŝƚĞĚ͕dĞLJŽEŽ͘ϭ>ŝŵŝƚĞĚĂŶĚŬƵƌĂ>ŝŵŝƚĞĚ͘Dƌ͘&ŽdžŝƐĂůƐŽĂƚƌƵƐƚĞĞ ĨŽƌƚŚĞ/ŶƐƟƚƵƚĞŽĨEĂƟŽŶĂůīĂŝƌƐ͕ĂŶĚĂĨŽƵŶĚĂƟŽŶŵĞŵďĞƌĂŶĚ&ĞůůŽǁŽĨƚŚĞWE'/ŶƐƟƚƵƚĞŽĨŝƌĞĐƚŽƌƐ͘ GEREA AOPI, CBE, MBA |EŽŶͲ džĞĐƵƟǀĞŝƌĞĐƚŽƌͮŝƌĞĐƚŽƌƐŝŶĐĞƉƌŝůϮϬϬϮ͘ 'ĞƌĞĂ ŽƉŝ ŚĂƐ ĂĐŚŝĞǀĞĚ ƐĞǀĞƌĂů ƚĞƌƟĂƌLJ ĚĞŐƌĞĞƐ ŝŶ WĂƉƵĂ EĞǁ 'ƵŝŶĞĂ͕ ĂŶĚ Ă DĂƐƚĞƌƐ ŽĨ ƵƐŝŶĞƐƐ ĚŵŝŶŝƐƚƌĂƟŽŶĨƌŽŵƚŚĞhŶŝǀĞƌƐŝƚLJŽĨYƵĞĞŶƐůĂŶĚ͘Dƌ͘ŽƉŝŚĂƐƐƵďƐƚĂŶƟĂůƉƵďůŝĐƐĞƌǀŝĐĞĂŶĚďƵƐŝŶĞƐƐ ĞdžƉĞƌŝĞŶĐĞ ŝŶ WĂƉƵĂ EĞǁ 'ƵŝŶĞĂ͕ ŝŶĐůƵĚŝŶŐ ^ĞĐƌĞƚĂƌLJ ŽĨ &ŝŶĂŶĐĞ Θ WůĂŶŶŝŶŐ ĂŶĚ DĂŶĂŐŝŶŐ ŝƌĞĐƚŽƌ ŽĨ dĞůŝŬŽŵ WE' >ŝŵŝƚĞĚ͘ ,Ğ ƉƌĞƐĞŶƚůLJ ŚŽůĚƐ ƚŚĞ ƉŽƐŝƟŽŶ ŽĨ džĞĐƵƟǀĞ 'ĞŶĞƌĂů DĂŶĂŐĞƌ͕ 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WE'>ƚĚ͕<ŝŶĂWĞƚƌŽůĞƵŵ>ƚĚĂŶĚĂŵĞŵďĞƌŽĨƚŚĞ'ŽǀĞƌŶŝŶŐďŽĚLJŽĨƚŚĞŝǀŝŶĞtŽƌĚhŶŝǀĞƌƐŝƚLJ͘ƌ dĞŵƵŚŽůĚƐĂĂĐŚĞůŽƌŽĨ ĐŽŶŽŵŝĐƐ;,ŽŶƐͿĨƌŽŵƚŚĞhŶŝǀĞƌƐŝƚLJŽĨWĂƉƵĂEĞǁ'ƵŝŶĞĂ͕ĂDĂƐƚĞƌƐŝŶ ŐƌŝĐƵůƚƵƌĂůĞǀĞůŽƉŵĞŶƚ ĐŽŶŽŵŝĐƐĨƌŽŵƚŚĞƵƐƚƌĂůŝĂŶEĂƟŽŶĂůhŶŝǀĞƌƐŝƚLJ͕ĂŶďĞƌƌĂ͕ƵƐƚƌĂůŝĂĂŶĚĂ WŚ͘ŝŶŐƌĐŝĐƵůƚƵƌĂů ĐŽŶŽŵŝĐƐĨƌŽŵƚŚĞhŶŝǀĞƌƐŝƚLJŽĨĂůŝĨŽƌŶŝĂ͕ĂǀŝƐ͕h^͘ BSP Annual Report 2014 9 %2$5'2)',5(&7256 SIR NAGORA BOGAN, KBE, LLB ͮEŽŶͲ džĞĐƵƟǀĞŝƌĞĐƚŽƌͮŝƌĞĐƚŽƌƐŝŶĐĞ:ƵŶĞϮϬϬϯ͘ ^ŝƌEĂŐŽƌĂŽŐĂŶŐƌĂĚƵĂƚĞĚǁŝƚŚĂĂĐŚĞůŽƌŽĨ>ĂǁĨƌŽŵƚŚĞhŶŝǀĞƌƐŝƚLJŽĨWĂƉƵĂEĞǁ'ƵŝŶĞĂŝŶϭϵϳϴ͘ /ŶϭϵϵϮ͕^ŝƌEĂŐŽƌĂǁĂƐĂƉƉŽŝŶƚĞĚŽŵŵŝƐƐŝŽŶĞƌ'ĞŶĞƌĂůŽĨƚŚĞWE'/ŶƚĞƌŶĂůZĞǀĞŶƵĞŽŵŵŝƐƐŝŽŶ͘/Ŷ ϭϵϵϲ͕ŚĞǁĂƐĂƉƉŽŝŶƚĞĚĂƐWE'͛ƐŵďĂƐƐĂĚŽƌƚŽƚŚĞhŶŝƚĞĚ^ƚĂƚĞƐǁŝƚŚĂĐĐƌĞĚŝƚĂƟŽŶĂƐŵďĂƐƐĂĚŽƌƚŽ DĞdžŝĐŽĂŶĚ,ŝŐŚŽŵŵŝƐƐŝŽŶĞƌƚŽĂŶĂĚĂ͘/ŶϮϬϬϮ͕^ŝƌEĂŐŽƌĂďĞĐĂŵĞĂƉƌŝǀĂƚĞďƵƐŝŶĞƐƐĞŶƚƌĞƉƌĞŶĞƵƌ͘ ,ĞŝƐŚĂŝƌŵĂŶĂŶĚ KŽĨ/ŶdŽƵĐŚDĞĚŝĂ>ŝŵŝƚĞĚ͕ĂŵƵůƟŵĞĚŝĂͬƌĞĐŽƌĚůĂďĞůĐŽŵƉĂŶLJĂŶĚŝƌĞĐƚŽƌŽŶ ƐĞǀĞƌĂůƉƌŝǀĂƚĞĐŽŵƉĂŶLJďŽĂƌĚƐ͘^ŝƌEĂŐŽƌĂƌĞĐĞŝǀĞĚŚŝƐŬŶŝŐŚƚŚŽŽĚĚƵƌŝŶŐϭϵϵϳŝŶƌĞĐŽŐŶŝƟŽŶŽĨŚŝƐ ĚŝƐƟŶŐƵŝƐŚĞĚƉƵďůŝĐƐĞƌǀŝĐĞ͘ AUGUSTINE MANO, BEcon, MSc.ͮEŽŶͲ džĞĐƵƟǀĞŝƌĞĐƚŽƌͮŝƌĞĐƚŽƌƐŝŶĐĞƵŐƵƐƚϮϬϭϰ͘ ƵŐƵƐƟŶĞ DĂŶŽ ŝƐ Ă ĂŶ ĞĐŽŶŽŵŝƐƚ ĂŶĚ ŚĂƐ ďĞĞŶ ƚŚĞ DĂŶĂŐŝŶŐ ŝƌĞĐƚŽƌ ŽĨ ƚŚĞ DŝŶĞƌĂů ZĞƐŽƵƌĐĞ ĞǀĞůŽƉŵĞŶƚŽƌƉŽƌĂƟŽŶ;DZͿĨŽƌƚŚĞůĂƐƚϲLJĞĂƌƐ͘DZŝƐƚŚĞĞŶƟƚLJƌĞƐƉŽŶƐŝďůĞĨŽƌŵĂŶĂŐŝŶŐ ůĂŶĚŽǁŶĞƌŝŶǀĞƐƚŵĞŶƚƐĂŶĚĚƵƌŝŶŐƚŚĞůĂƐƚϲLJĞĂƌƐDƌ͘DĂŶŽŚĂƐůĞĂĚƚŚĞŽƌŐĂŶŝƐĂƟŽŶŝŶƵŶĚĞƌƚĂŬŝŶŐ ƐŽŵĞŵĂũŽƌŝŶǀĞƐƚŵĞŶƚƐƐƵĐŚĂƐƚŚĞWE'>E'ƉƌŽũĞĐƚĂŶĚƉƌŽƉĞƌƚLJĚĞǀĞůŽƉŵĞŶƚĂŶĚŚŽƐƉŝƚĂůŝƚLJǁŝƚŚŝŶ WE'͕&ŝũŝĂŶĚ^ĂŵŽĂ͘Dƌ͘DĂŶŽŚĂƐĞdžƚĞŶƐŝǀĞƐŬŝůůƐĂŶĚĞdžƉĞƌŝĞŶĐĞŝŶƚŚĞŵŝŶŝŶŐĂŶĚƉĞƚƌŽůĞƵŵƐĞĐƚŽƌ͘ ,Ğ ŝƐ ĂůƐŽ ŝŶǀŽůǀĞĚ ǁŝƚŚ ĐŽŶƐƚƌƵĐƟŽŶ͕ ƚƌĂŶƐƉŽƌƚĂƟŽŶ ĂŶĚ /ŶƐƵƌĂŶĐĞ ŝŶĚƵƐƚƌLJ͘ ,Ğ ŚŽůĚƐ Ă DĂƐƚĞƌ ŽĨ ^ĐŝĞŶĐĞWĞƚƌŽůĞƵŵ ĐŽŶŽŵŝĐƐĨƌŽŵƚŚĞƵŶĚĞĞhŶŝǀĞƌƐŝƚLJ͕^ĐŽƚůĂŶĚĂŶĚĂĐŚĞůŽƌĚĞŐƌĞĞƐŝŶ ĐŽŶŽŵŝĐƐ ĂŶĚ ŶǀŝƌŽŶŵĞŶƚĂů ^ĐŝĞŶĐĞ ĨƌŽŵ ƚŚĞ hŶŝǀĞƌƐŝƚLJ ŽĨ WE'͘ Dƌ͘ DĂŶŽ ĐƵƌƌĞŶƚůLJ ŚŽůĚƐ ŚĂŝƌŵĂŶ ĂŶĚ ŝƌĞĐƚŽƌƐŚŝƉŝŶĂŶƵŵďĞƌŽĨĞŶƟƟĞƐ͕ŝŶĐůƵĚŝŶŐDZĂŶĚŝƚƐƐƵďƐŝĚŝĂƌŝĞƐĐŽŵƉĂŶŝĞƐ͕,ĞǀŝůŝŌ'ƌŽƵƉ͕ /ŶƐƵƌĂŶĐĞWĂĐŝĮĐĂŶĚWĞĂƌůZĞƐŽƌƚ͕ŝƌůŝŶĞWE'͕'&^ĂŶĚ,ĂŶĚLJ'ƌŽƵƉ͘ FREDA TALAO, LLM ͮEŽŶͲ džĞĐƵƟǀĞŝƌĞĐƚŽƌͮŝƌĞĐƚŽƌƐŝŶĐĞƉƌŝůϮϬϭϮ͘ &ƌĞĚĂdĂůĂŽŚŽůĚƐĂ>ĂǁĞŐƌĞĞĨƌŽŵhŶŝǀĞƌƐŝƚLJŽĨWĂƉƵĂEĞǁ'ƵŝŶĞĂ͕ĂDĂƐƚĞƌƐĞŐƌĞĞĨƌŽŵŽŶĚ hŶŝǀĞƌƐŝƚLJ͕ YƵĞĞŶƐůĂŶĚ ĂŶĚ ŝƐ ĐƵƌƌĞŶƚůLJ ƵŶĚĞƌƚĂŬŝŶŐ ŽĐƚŽƌĂů ^ƚƵĚŝĞƐ Ăƚ d ĞŝƌŶĞ ^ĐŚŽŽů ŽĨ >Ăǁ͕ hŶŝǀĞƌƐŝƚLJŽĨYƵĞĞŶƐůĂŶĚ͘&ƌĞĚĂŚĂƐĞdžƚĞŶƐŝǀĞǁŽƌŬĞdžƉĞƌŝĞŶĐĞŝŶƚŚĞŐŽǀĞƌŶŵĞŶƚ͕ƉƌŝǀĂƚĞ͕E'KĂŶĚ ĚĞǀĞůŽƉŵĞŶƚƐĞĐƚŽƌƐŝŶWE'͘DƐdĂůĂŽŚĂƐƉƌĞǀŝŽƵƐůLJďĞĞŶŽŶƐĞǀĞƌĂůŽĂƌĚƐ͕ŝŶĐůƵĚŝŶŐƚŚĞDĂŵĂ'ƌĂƵŶ ŽŶƐĞƌǀĂƟŽŶdƌƵƐƚ&ƵŶĚ͕>ŝŬůŝŬŝŶĂƵdƌƵƐƚ&ƵŶĚ͕/ŶĚŝǀŝĚƵĂůĂŶĚŽŵŵƵŶŝƚLJĚǀŽĐĂĐLJ&ŽƌƵŵ;/Z&Ϳ͕ ŝǀŝůǀŝĂƟŽŶƵƚŚŽƌŝƚLJ;Ϳ͕EĂƟŽŶĂůŝƌƉŽƌƚƐŽƌƉŽƌĂƟŽŶŽĂƌĚ;EͿĂŶĚŝƌƉŽƌƚŝƚLJĞǀĞůŽƉŵĞŶƚ >ŝŵŝƚĞĚ;>Ϳ͘^ŚĞŝƐĂůƐŽĐƵƌƌĞŶƚůLJĂŵĞŵďĞƌŽĨƚŚĞ džƚĞƌŶĂů^ƚĂŬĞŚŽůĚĞƌƐĚǀŝƐŽƌLJWĂŶĞů; ^WͿƚŽ ƚŚĞDŽƌŽďĞDŝŶŝŶŐ:ŽŝŶƚsĞŶƚƵƌĞ;DD:sͿǁŚŝĐŚŽǁŶƐƚŚĞ,ŝĚĚĞŶsĂůůĞLJ'ŽůĚDŝŶĞŝŶDŽƌŽďĞWƌŽǀŝŶĐĞ ĂŶĚƵƐƚƌĂůŝĂŶ/ŶƐƟƚƵƚĞŽĨŽŵƉĂŶLJŝƌĞĐƚŽƌƐ͘ GEOFFREY J. ROBB, BA, MBA, OAM ͮEŽŶͲ džĞĐƵƟǀĞŝƌĞĐƚŽƌͮŝƌĞĐƚŽƌƐŝŶĐĞƉƌŝůϮϬϭϮ͘ 'ĞŽīƌĞLJZŽďďŝƐĂŚŝŐŚůLJƋƵĂůŝĮĞĚĂŶĚĞdžƉĞƌŝĞŶĐĞĚďĂŶŬĞƌŚĂǀŝŶŐŽĐĐƵƉŝĞĚƐĞǀĞƌĂůƐĞŶŝŽƌ džĞĐƵƟǀĞ ƉŽƐŝƟŽŶƐŝŶĐůƵĚŝŶŐ,ĞĂĚŽĨZĞƐŽƵƌĐĞ&ŝŶĂŶĐĞĂƚĂŶŬŽĨŵĞƌŝĐĂ͕ĂŶĚ'ůŽďĂů,ĞĂĚŽĨĐƋƵŝƐŝƟŽŶ&ŝŶĂŶĐĞ ĂŶĚ,ĞĂĚŽĨŽŵƉůĞdžĂŶĚ^ƚƌĂƚĞŐŝĐdƌĂŶƐĂĐƟŽŶƐǁŝƚŚEĂŶŬŝŶŐ'ƌŽƵƉ͘Ɛ,ĞĂĚŽĨĂŶŬŽĨŵĞƌŝĐĂ ŝŶDĞůďŽƵƌŶĞ͕ŚĞůĞĚƌĞƐŽƵƌĐĞĮŶĂŶĐŝŶŐƐǁŝƚŚ,W͕Z͕ ůĚĞƌƐZĞƐŽƵƌĐĞƐ͕ŽƵŐĂŝŶǀŝůůĞŽƉƉĞƌ͕KŬdĞĚŝ ĂŶĚ WŽƌŐĞƌĂ͘ ,Ğ ŚŽůĚƐ DƐ ĨƌŽŵ ƚŚĞ /ŶƚĞƌŶĂƟŽŶĂů DĂŶĂŐĞŵĞŶƚ /ŶƐƟƚƵƚĞ 'ĞŶĞǀĂ ĂŶĚ DĂĐƋƵĂƌŝĞ hŶŝǀĞƌƐŝƚLJ͘Dƌ͘ZŽďďŚĂƐƚƌĂǀĞůůĞĚĞdžƚĞŶƐŝǀĞůLJŝŶĞŵĞƌŐŝŶŐŵĂƌŬĞƚƐĂŶĚŚĂƐƌĞĐĞŝǀĞĚƚŚĞDĞĚĂůŽĨƚŚĞ KƌĚĞƌŽĨƵƐƚƌĂůŝĂĨŽƌŚŝƐƐĞƌǀŝĐĞƐƚŽŵŽƵŶƚĂŝŶĞĞƌŝŶŐĂŶĚĐŚĂƌŝƚLJ͘,ĞŝƐŚĂŝƌŵĂŶŽĨƚŚĞŽĂƌĚƵĚŝƚ͕ZŝƐŬ ĂŶĚŽŵƉůŝĂŶĐĞŽŵŵŝƩĞĞĂŶĚŝƐĂůƐŽŽŶƚŚĞŽĂƌĚŽĨ^WĂƉŝƚĂů>ƚĚ͘ ERNEST BRIAN GANGLOFF, CPA, GAICDͮEŽŶͲ džĞĐƵƟǀĞŝƌĞĐƚŽƌͮŝƌĞĐƚŽƌƐŝŶĐĞEŽǀĞŵďĞƌ ϮϬϭϯ ƌŶĞƐƚ'ĂŶŐůŽī ƌŶŝĞŝƐĂŶĐĐŽƵŶƚĂŶƚĂŶĚƌĞŐŝƐƚĞƌĞĚǁŝƚŚWWE'ĂŶĚƚŚĞĐĐŽƵŶƚĂŶƚƐ͛ZĞŐŝƐƚƌĂƟŽŶ ŽĂƌĚ͘ ƌŶŝĞŚĂƐĞdžƚĞŶƐŝǀĞĞdžƉĞƌŝĞŶĐĞŝŶƚŚĞĂƌĞĂƐŽĨƌŝƐŬŵĂŶĂŐĞŵĞŶƚ͕ŝŶƚĞƌŶĂůĂƵĚŝƚĂŶĚĐŽƌƉŽƌĂƚĞ ŐŽǀĞƌŶĂŶĐĞ͘ 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ϲŵŽŶƚŚƐŽĨϮϬϭϰĂŶĚ<ϴϯŵĨŽƌƚŚĞƐĞĐŽŶĚϲŵŽŶƚŚƐŽĨϮϬϭϰ͘ ĂŶŽƚŚĞƌLJĞĂƌŽĨƉŽƐŝƟǀĞĞĐŽŶŽŵŝĐŐƌŽǁƚŚǁŝƚŚ'WĞƐƟŵĂƚĞĚ dŚĞĐŽŶƚƌĂĐƟŽŶŝŶŝŶĐŽŵĞĨŽƌƚŚĞƐĞĐŽŶĚϲŵŽŶƚŚƐǁĂƐĂƌĞƐƵůƚ Ăƚϴ͘ϰй͘dŚŝƐƌĞƉƌĞƐĞŶƚƐϭϰLJĞĂƌƐŽĨ'WŝŶĐƌĞĂƐĞƐ͘ƚϴ͘ϰй'W ŽĨƚŚĞŵĂƌŐŝŶƌĞƐƚƌŝĐƟŽŶƐĂŶĚƌĞĚƵĐĞĚŵĂƌŬĞƚƚƵƌŶŽǀĞƌŝŶƚŚĞ ŐƌŽǁƚŚǁĂƐŚŝŐŚĞƌƚŚĂŶĂŶƟĐŝƉĂƚĞĚŝŶƚŚĞϮϬϭϰďƵĚŐĞƚ͕ǁŝƚŚ ƐĞĐŽŶĚŚĂůĨŽĨϮϬϭϰ͘ ƚŚĞŚŝŐŚĞƌƚŚĂŶĞdžƉĞĐƚĞĚŽƵƚĐŽŵĞďĞŝŶŐŝŶůĂƌŐĞƉĂƌƚĚƵĞƚŽ ƚŚĞĞĂƌůŝĞƌƚŚĂŶƉůĂŶŶĞĚĐŽŵŵŝƐƐŝŽŶŝŶŐŽĨƚŚĞWE'>E'ƉůĂŶƚ͕ ^W ŚĂĚ ĂůƌĞĂĚLJ ŝŶŝƟĂƚĞĚ Ă ĐŽƐƚ ƌĞǀŝĞǁ ŝŶ ŵŝĚ ϮϬϭϯ ǁŚŝĐŚ ǁŝƚŚĐŽŶƐĞƋƵĞŶƚŚŝŐŚĞƌŶƵŵďĞƌŽĨ>E'ƐŚŝƉŵĞŶƚƐŝŶϮϬϭϰ͘ ƉŽƐŝƟŽŶĞĚƚŚĞďĂŶŬǁĞůůƚŽĚĞĂůǁŝƚŚƚŚŝƐƌĞĚƵĐƟŽŶŝŶŝŶĐŽŵĞ͕ ĂŶĚĂĚĚŝƟŽŶĂůĐŽƐƚƐĂǀŝŶŐƐŵĞĂƐƵƌĞƐǁĞƌĞŝŶŝƟĂƚĞĚŝŶŵŝĚϮϬϭϰ ĐŽŶŽŵŝĐŐƌŽǁƚŚďLJƐĞĐƚŽƌǁĂƐǀĂƌŝĞĚŝŶϮϬϭϰǁŚŝĐŚŝŶƉĂƌƚ ƚŽĨƵƌƚŚĞƌŝŵƉƌŽǀĞ^W͛ƐŽƉĞƌĂƟŶŐĞĸĐŝĞŶĐLJ͘ ƌĞŇĞĐƚĞĚƚŚĞĚĞƉĞŶĚĞŶĐĞŽŶƚŚĞWE'>E'ƉƌŽũĞĐƚƚŚĂƚŵŽǀĞĚ ŝŶƚŽ ŝƚƐ ƉƌŽĚƵĐƟŽŶ ƉŚĂƐĞ ŝŶ ŵŝĚ ϮϬϭϰ͘ dŚĞ ZĞƚĂŝů ƐĞĐƚŽƌ EŽŶŽƉĞƌĂƟŽŶĂůĞdžƚƌĂŽƌĚŝŶĂƌLJĞdžƉĞŶƐĞƐǁĞƌĞŝŶĐƵƌƌĞĚĂƐƉĂƌƚ ĞdžƉĞƌŝĞŶĐĞĚĂĚŽǁŶƚƵƌŶĂƐĐŽŶƐƵŵĞƌĐŽŶƐƵŵƉƟŽŶƚĂƉĞƌĞĚŽī ŽĨ Ă ĨƵůů ƌĞǀŝĞǁ ŽĨ ƚŚĞ ĮdžĞĚ ĂƐƐĞƚƐ ĂŶĚ ƐŽŌǁĂƌĞͬŝŶƚĂŶŐŝďůĞƐ ĐŽŶƐĞƋƵĞŶƚƚŽĂĐŽŶƚƌĂĐƟŽŶŝŶǁŽƌŬĨŽƌĐĞŶƵŵďĞƌƐĂƐƐŽĐŝĂƚĞĚ ƚŚĂƚǁĂƐƵŶĚĞƌƚĂŬĞŶĚƵƌŝŶŐƚŚĞLJĞĂƌ͘dŚŝƐŝŶǀŽůǀĞĚǁƌŝƚĞŽīŽĨ ǁŝƚŚ WE' >E'͘ ŽŶǀĞƌƐĞůLJ ƚŚĞ ĐŽŶƐƚƌƵĐƟŽŶ ƐĞĐƚŽƌ ƌĞƉŽƌƚĞĚ ĐĞƌƚĂŝŶĂƐƐĞƚƐĂŶĚƐŽŌǁĂƌĞͬŝŶƚĂŶŐŝďůĞƐǁŚŝĐŚǁĞƌĞƉĂƌƚŽĨƚŚĞ ŐƌŽǁƚŚ ĂƐ ŐŽǀĞƌŶŵĞŶƚ ĨƵŶĚĞĚ ĐŽƵŶƚĞƌ ĐLJĐůŝĐĂů ƐƉĞŶĚŝŶŐ ŽŶ ƉƌŝŽƌLJĞĂƌƐƚƌĂŶƐĨŽƌŵĂƟŽŶƌĞůĂƚĞĚĐĂƉŝƚĂůĞdžƉĞŶĚŝƚƵƌĞƉƌŽŐƌĂŵ͘ ŝŶĨƌĂƐƚƌƵĐƚƵƌĞŝŶĐƌĞĂƐĞĚ͘ZŽĂĚƐ͕WŽƌƚƐĂŶĚϮϬϭϱWĂĐŝĮĐ'ĂŵĞƐ ĨĂĐŝůŝƟĞƐǁĞƌĞƚŚĞŵĂŝŶĂƌĞĂƐǁŚĞƌĞŐŽǀĞƌŶŵĞŶƚƐƉĞŶĚŝŶŐǁĂƐ Ɛ ƚŚŝƐ ĐŽŝŶĐŝĚĞĚ ǁŝƚŚ ƚŚĞ ƚƌŝĞŶŶŝĂů ƉƌŽƉĞƌƚLJ ƌĞǀĂůƵĂƟŽŶ ĐŽŶĐĞŶƚƌĂƚĞĚ͘ ĞdžĞƌĐŝƐĞ͕ƌĞĐĞŶƚůLJĐŽŵƉůĞƚĞĚŽƌƉƵƌĐŚĂƐĞĚƉƌŽƉĞƌƟĞƐǁĞƌĞĂůƐŽ ƐƵďũĞĐƚƚŽǁƌŝƚĞĚŽǁŶƐŽŶƌĞǀĂůƵĂƟŽŶ͘dŚĞƉƌŽƐƉĞĐƚŽĨĨƵƌƚŚĞƌ KŶĞĐŽŶƐĞƋƵĞŶĐĞŽĨƚŚĞĐŽŵƉůĞƟŽŶŽĨƚŚĞh^ΨϮϬďŝůWE'>E' ǁƌŝƚĞ ĚŽǁŶƐ ĂƐƐŽĐŝĂƚĞĚ ǁŝƚŚ ƚŚĞ ĂƐ LJĞƚ ƵŶĐŽŵƉůĞƚĞ 'ŽƌĚŽŶƐ ƉƌŽũĞĐƚǁĂƐĂƌĞĚƵĐƟŽŶŝŶĨŽƌĞŝŐŶĞdžĐŚĂŶŐĞŝŶŇŽǁƐ͕ǁŚŝĐŚǁĂƐ ĂƚĂ ĂŶĚ ^ĞĐƵƌŝƚLJ ĞŶƚƌĞ ĂŶĚ ƚŚĞ tĂŝŐĂŶŝ ,ĞĂĚ KĸĐĞ͕ ĚŽĞƐ ŶŽƚ ĐŽƵŶƚĞƌ ďĂůĂŶĐĞĚ ďLJ ƌĞĚƵĐĞĚ ŝŵƉŽƌƚ ĂŶĚ ĐĂƉŝƚĂů ƌĞůĂƚĞĚ ƌĞŵĂŝŶ ĂŶĚ Ă ƉƌŽǀŝƐŝŽŶ ŚĂƐ ďĞĞŶ ƚĂŬĞŶ ƵƉ ƚŽ ĂůůŽǁ ĨŽƌ ƚŚŝƐ ŽƵƞůŽǁƐ͘ dŚŝƐ ƚĞƌŵƐ ŽĨ ƚƌĂĚĞ ŝŵďĂůĂŶĐĞ ĐŽŶƚƌŝďƵƚĞĚ ƚŽ Ă ƉŽƐƐŝďŝůŝƚLJ͘ ǁĞĂŬĞŶĞĚ<ŝŶĂ͕ǁŝƚŚƚŚĞ<ŝŶĂĚĞƉƌĞĐŝĂƟŶŐĂŐĂŝŶƐƚƚŚĞh^Ψ͘ EŽƚǁŝƚŚƐƚĂŶĚŝŶŐƚŚĞƐĞƉĂƌƟĐƵůĂƌŝŶĐŽŵĞĂŶĚĞdžƉĞŶƐĞƐŚŽĐŬƐ͕ ƌŽƵŶĚ ϰƚŚ :ƵŶĞ ϮϬϭϰ ƚŚĞ ĂŶŬ ŽĨ WĂƉƵĂ EĞǁ 'ƵŝŶĞĂ ƚŽŽŬ ƚŚĞ ϮϬϭϰ ƌĞƐƵůƚ ǁĂƐ ŵŽƐƚ ƉůĞĂƐŝŶŐ͘ 'ƌŽǁƚŚ ŝŶ ŽƵƌ ůĞŶĚŝŶŐ ŵĞĂƐƵƌĞƐ ƚŽ ĂůŝŐŶ ƚŚĞ ƚƌĂĚŝŶŐ ďĂŶĚ ŽĨ ĐŽŵŵĞƌĐŝĂů ďĂŶŬƐ ŝŶ ĂƐƐĞƚƐ͕ ŐĞŶĞƌĂƚĞĚ ŝŶĐƌĞĂƐĞĚ ŝŶƚĞƌĞƐƚ ŽŶ ůŽĂŶƐ ĂŶĚ ĂĚǀĂŶĐĞƐ͘ ƚŚĞĨŽƌĞŝŐŶĞdžĐŚĂŶŐĞŵĂƌŬĞƚƐƚŽƚŚĂƚŽĨƚŚĞŽĸĐŝĂůŝŶƚĞƌďĂŶŬ KƵƌŽƌƉŽƌĂƚĞƚĞĂŵĚĞůŝǀĞƌĞĚĂƐŝŐŶŝĮĐĂŶƚƉƌŽƉŽƌƟŽŶŽĨƚŚŝƐ ŵĂƌŬĞƚĂƐƚŚĞĐŽŵŵĞƌĐŝĂůďĂŶŬƐǁĞƌĞƚƌĂĚŝŶŐƚŚĞ<ŝŶĂƵƉƚŽ ŐƌŽǁƚŚ ǀŝĂ Ă ŵŝdž ŽĨ ŐƌŽǁƚŚ ǁŝƚŚŝŶ ŽƵƌ ĐůŝĞŶƚ ďĂƐĞ ĂŶĚ ƐŽŵĞ ϳϬϬďƉƐĂǁĂLJĨƌŽŵƚŚĞŽĸĐŝĂůŝŶƚĞƌďĂŶŬƌĂƚĞ͕ǁŝƚŚƚŚĞƚƌĂĚŝŶŐ ŵŝůĞƐƚŽŶĞƚƌĂŶƐĂĐƟŽŶƐĨŽƌŽƵƌƐƉĞĐŝĂůŝƐĞĚůĞŶĚŝŶŐƚĞĂŵ͘ ƌĂƚĞŽĨƚŚĞ<ŝŶĂĞīĞĐƟǀĞůLJďĞŝŶŐĚĞƚĞƌŵŝŶĞĚďLJĂƐŵĂůůŶƵŵďĞƌ ŽĨĞdžƉŽƌƚĞƌƐ͘dŚŝƐŵŽǀĞĂĐƚĞĚƚŽŵŽĚĞƌĂƚĞƚŚĞĚĞƉƌĞĐŝĂƟŽŶŽĨ ZĞƚĂŝůŵĂŝŶƚĂŝŶĞĚƐŽƵŶĚŐƌŽǁƚŚŝŶŝƚƐƉĞƌƐŽŶĂůůŽĂŶƉŽƌƞŽůŝŽ ƚŚĞ<ŝŶĂ͕ŚŽǁĞǀĞƌĨŽƌĞŝŐŶĞdžĐŚĂŶŐĞůŝƋƵŝĚŝƚLJƉƌŽǀĞĚƐŽŵĞǁŚĂƚ ĂŶĚĂůƐŽƉůĂĐĞĚƌĞŶĞǁĞĚĞŵƉŚĂƐŝƐŽŶůĞŶĚŝŶŐƚŽƚŚĞŚŽƵƐŝŶŐ ƉƌŽďůĞŵĂƟĐĂƚƟŵĞƐ͕ǁŝƚŚŝŵƉŽƌƚĞƌƐŚĂǀŝŶŐƚŽǁĂŝƚĂŶƵŵďĞƌ 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ĂŶĚŽĨĐŽƵƌƐĞƚŚĞWƌĞƐŝĚĞŶƚĂŶĚƐĞŶŝŽƌŵĂŶĂŐĞŵĞŶƚŽĨĂŶŬŽĨ WŚŝůŝƉƉŝŶĞ/ƐůĂŶĚƐ͕ƚŽǁŚŽŵǁĞƉĂƐƐŽŶŽƵƌŐƌĂƟƚƵĚĞ͘/ƚŝƐƉůĂŶŶĞĚ ƵƌŝŶŐϮϬϭϰ^WĂůƐŽƐƵĐĐĞƐƐĨƵůůLJůĂƵŶĐŚĞĚŽƵƌǁŚŽůůLJŽǁŶĞĚ ƚŽƐĞŶĚϵŵŽƌĞƐƚĂīƚŽĂŶŬŽĨWŚŝůŝƉƉŝŶĞ/ƐůĂŶĚƐŝŶϮϬϭϱ͘ ĂƐƐĞƚĮŶĂŶĐĞƐƵďƐŝĚŝĂƌLJ^W&ŝŶĂŶĐĞŝŶWĂƉƵĂEĞǁ'ƵŝŶĞĂĂŶĚ &ŝũŝ͘dŚŝƐǁĂƐƚŚĞĐƵůŵŝŶĂƟŽŶŽĨĂŐƌĞĂƚĚĞĂůŽĨĞīŽƌƚďLJƐĞŶŝŽƌ KƵƌ&ŝũŝŽƉĞƌĂƟŽŶƐƌĞƉŽƌƚĞĚĂŵƵĐŚŝŵƉƌŽǀĞĚƉƌŽĮƚŽƵƚĐŽŵĞŝŶ ŵĂŶĂŐĞŵĞŶƚ ǁŝƚŚŝŶ ^W ĂŶĚ ƚŚĞLJ ĂƌĞ ƚŽ ďĞ ĐŽŶŐƌĂƚƵůĂƚĞĚ ϮϬϭϰ͕ǁŝƚŚŽƵƌ^WďĂŶŬƉƌŽĮƚŵŽƌĞƚŚĂŶĚŽƵďůŝŶŐƚŽ&ΨϮϬ͘ϱŵ ĨŽƌƚŚĞŝƌǁŽƌŬŝŶďƌŝŶŐŝŶŐ^W&ŝŶĂŶĐĞƚŽĨƌƵŝƟŽŶ͘tŚŝůƐƚ^W ĂŶĚŽƵƌ^W>ŝĨĞƉƌŽĮƚŽĨ&Ψϵ͘ϱŵĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĂƚĂĐŚŝĞǀĞĚ ŚĂƐ ĂůǁĂLJƐ ŽīĞƌĞĚ ĂƐƐĞƚ ĮŶĂŶĐĞ ƉƌŽĚƵĐƚƐ ƚŽ ŽƵƌ ĐƵƐƚŽŵĞƌƐ ŝŶϮϬϭϯ͘dŚĞƚĞĂŵŝŶ&ŝũŝŚĂƐƉƵƚĂƐŝŐŶŝĮĐĂŶƚĂŵŽƵŶƚŽĨĞīŽƌƚ ŐĞŶĞƌĂůůLJ ƚŚŝƐ ƐĂůĞƐ ĂƉƉƌŽĂĐŚ ŚĂƐ ďĞĞŶ ƉĂƌƚ ŽĨ ĂŶ ŽǀĞƌĂůů ŝŶƚŽďƵŝůĚŝŶŐƚŚĞďƵƐŝŶĞƐƐ͕ĂŶĚĂƉŽƌƞŽůŝŽŽĨǁĞůůƌĞŐĂƌĚĞĚĂŶĚ ŽƌƉŽƌĂƚĞƌĞůĂƟŽŶƐŚŝƉƉĂĐŬĂŐĞ͘ ƌĞƉƵƚĂďůĞĐůŝĞŶƚƐ͕ŝŶ&ŝũŝƐŝŶĐĞĂĐƋƵŝƐŝƟŽŶĨƌŽŵŽŵŵŽŶǁĞĂůƚŚ ĂŶŬŝŶϮϬϬϵĂŶĚƚŚŝƐǁŽƌŬŝƐŶŽǁďĞŝŶŐƌĞŇĞĐƚĞĚŝŶƌĞƚƵƌŶƐŽŶ ƚ ƟŵĞƐ ŽƵƌ ƐĞƌǀŝĐĞ ĚĞůŝǀĞƌLJ ŚĂƐ ŶŽƚ ďĞĞŶ ƚŽ ŽƵƌ ĐůŝĞŶƚƐ 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>E'ƉƌŽũĞĐƚŐŽŝŶŐĨƌŽŵĐŽŶƐƚƌƵĐƟŽŶƚŽƉƌŽĚƵĐƟŽŶƉŚĂƐĞĂŶĚ ĂŶĚƐĞǀĞŶƌĂŶĐŚƵĚŝƚKĸĐĞƌƐƉŽƐŝƟŽŶƐ;ďĂƐĞĚŝŶƐĞůĞĐƚĞĚ ƚŚĞƐĐĂůŝŶŐďĂĐŬŽĨǁŽƌŬĨŽƌĐĞƐĂŶĚďƵƐŝŶĞƐƐĐŽŶƚƌĂĐƚƐ͘ ďƌĂŶĐŚĞƐƚŚƌŽƵŐŚŽƵƚWE'Ϳ͖ŝŶŝƚƐĐŽŵƉůĞŵĞŶƚŽĨϯϬƉŽƐŝƟŽŶƐ͘ dŚŝƐŚĂƐƌĞƐƵůƚĞĚŝŶĂŵĂƌŐŝŶĂůŝŶĐƌĞĂƐĞŝŶĚĞĨĂƵůƚĐŽŶƐƵŵĞƌůŽĂŶƐ dŚĞƌĞĂƌĞĞŝŐŚƚĂƵĚŝƚƐƚĂīďĂƐĞĚŝŶ&ŝũŝĂŶĚƚŚƌĞĞŝŶƚŚĞ^ŽůŽŵŽŶ ĨŽƌϮϬϭϰ͘ĞůŝŶƋƵĞŶĐŝĞƐĂƌĞŵŽŶŝƚŽƌĞĚĂŶĚŵĂŶĂŐĞĚĐůŽƐĞůLJ /ƐůĂŶĚƐ͘ ĂŶĚƚŽŐĞƚŚĞƌǁŝƚŚĂŶĞǁĂƵƚŽŵĂƚĞĚĐŽůůĞĐƟŽŶƐLJƐƚĞŵƚŽďĞ ŝŶƚƌŽĚƵĐĞĚŝŶĞĂƌůLJϮϬϭϱ͕ƚŚĞƉƌŽĐĞƐƐďĞƚǁĞĞŶƌĞƚĂŝůĂŶĚƐƐĞƚ DĂũŽƌŚŝŐŚůŝŐŚƚƐĚƵƌŝŶŐϮϬϭϰǁĞƌĞŝŶƚĞƌŶĂůĂƵĚŝƚƐŽĨƚŚĞĂŶŬ͛Ɛ DĂŶĂŐĞŵĞŶƚǁŽƵůĚďĞƐƚƌĞĂŵůŝŶĞĚĂŶĚƚŚĂƚƐŚŽƵůĚůĞĂĚƚŽĂŶ dƌĞĂƐƵƌLJ͕/ŶƚĞƌŶĂƟŽŶĂůKƉĞƌĂƟŽŶƐ͕/ŶĨŽƌŵĂƟŽŶdĞĐŚŶŽůŽŐLJĂŶĚ ŝŵƉƌŽǀĞŵĞŶƚŝŶĚĞůŝŶƋƵĞŶĐLJĂŶĚĚĞĨĂƵůƚƌĂƚĞƐ͘ &ŝŶĂŶĐŝĂůĐĐŽƵŶƟŶŐhŶŝƚƐƉůƵƐƐƵďƐŝĚŝĂƌLJĐŽŵƉĂŶLJ͕^WĂƉŝƚĂů>ƚĚ͘ KŶĞŽĨƚŚĞŬĞLJĨŽĐƵƐĂƌĞĂƐĚƵƌŝŶŐϮϬϭϰǁĂƐĂůƐŽƚŚĞĐŽŶƟŶƵĞĚ ƐƚƌĞŶŐƚŚĞŶŝŶŐŽĨƚŚĞĂŶŬ͛Ɛ/dƵĚŝƚĐĂƉĂďŝůŝƟĞƐ͘ BSP Annual Report 2014 19 675$7(*,& %86,1(6681,75(9,(: ŽŶƟŶƵĞĚŽƵƌĐĂƌĞĞƌĐŚŽŝĐĞǁŽƌŬƐŚŽƉƐĂŶĚƌĞĐƌƵŝƚŵĞŶƚĨĂŝƌƐǁŝƚŚƵŶŝǀĞƌƐŝƟĞƐĂŶĚƌĞĐƌƵŝƚĞĚĨŽƵƌƚĞĞŶ 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&ĂĐŝůŝƚĂƚĞĚƚŚĞŝĚĞŶƟĮĐĂƟŽŶŽĨĂŶƵŵďĞƌŽĨƐĞŶŝŽƌĐŝƟnjĞŶĂŶĚ <ŽƐƚĂƐŽŶƐƚĂŶƟŶŽƵĚƵƌŝŶŐĂŽĂƌĚŵĞĞƟŶŐŝŶ&ŝũŝ͘ ŶŽŶͲĐŝƟnjĞŶƐƚĂīƚŽƌĞƉůĂĐĞŽƵƚŐŽŝŶŐĐŽŶƚƌĂĐƚǁŽƌŬĞƌƐ͘ ͻ ŽŶƟŶƵĞĚŽƵƌĐĂƌĞĞƌĐŚŽŝĐĞǁŽƌŬƐŚŽƉƐĂŶĚƌĞĐƌƵŝƚŵĞŶƚĨĂŝƌƐ /ŶEŽǀĞŵďĞƌϮϬϭϰ͕^W&ŝŶĂŶĐĞŽƉĞŶĞĚŝƚƐĮƌƐƚƌĂŶĐŚŝŶ^ƵǀĂ ǁŝƚŚƵŶŝǀĞƌƐŝƟĞƐĂŶĚƌĞĐƌƵŝƚĞĚĨŽƵƌƚĞĞŶ;ϭϰͿŐƌĂĚƵĂƚĞƚƌĂŝŶĞĞƐ &ŝũŝ͘dŚŝƐǁĂƐƐƵďƐĞƋƵĞŶƚůLJĨŽůůŽǁĞĚďLJĂĞĐĞŵďĞƌŽƉĞŶŝŶŐŽĨ ĨŽƌƚŚĞϮϬϭϱ'ƌĂĚƵĂƚĞĞǀĞůŽƉŵĞŶƚWƌŽŐƌĂŵ͘ ŝƚƐWE'ŽĸĐĞŝŶWŽƌƚDŽƌĞƐďLJ͘^WŝƐWĂƉƵĂEĞǁ'ƵŝŶĞĂ͛ƐůĞĂĚĞƌ ŝŶŝŶŶŽǀĂƟǀĞďĂŶŬŝŶŐĂŶĚĮŶĂŶĐŝĂůƐŽůƵƟŽŶƐĂŶĚǁĞǁŝůůƵƐĞŽƵƌ ĐƵƌƌĞŶƚďƌĂŶĚƚŽďƵŝůĚƚŚĞ^W&ŝŶĂŶĐĞ͘ 20 BSP Annual Report 2014 675$7(*,& %86,1(6681,75(9,(: Learning & Development: HR Operations ƐƉĂƌƚŽĨƚŚĞĂŶŬ͛ƐĐĂƌĞĞƌĚĞǀĞůŽƉŵĞŶƚĂŶĚƐƵĐĐĞƐƐŝŽŶƉůĂŶŶŝŶŐ ƐƉĂƌƚŽĨ,ZŽƉĞƌĂƟŽŶĂůĞĸĐŝĞŶĐLJŝŵƉƌŽǀĞŵĞŶƚĚƌŝǀĞ͕ƚŚĞ ǁĞĨĂĐŝůŝƚĂƚĞĚƚŚĞƐĞƉƌŽŐƌĂŵƐŝŶƚŚĞŽƉĞƌĂƟŶŐLJĞĂƌ͘dŚĞƐĞǁĞƌĞ͗ ĨŽůůŽǁŝŶŐŝŶŝƟĂƟǀĞƐǁĞƌĞŝŵƉůĞŵĞŶƚĞĚƵƐŝŶŐƚŚĞ,DƐLJƐƚĞŵ͗ ͻ /ĚĞŶƟĮĞĚĮŌĞĞŶƉŽƚĞŶƟĂů>ĞĂĚĞƌƐĂŶĚĚĞǀĞůŽƉĞĚŝŶĚŝǀŝĚƵĂů ͻ ƵƚŽŵĂƚĞĚƚŚĞĚŝƐƚƌŝďƵƟŽŶŽĨ ŵƉůŽLJĞĞ͛Ɛ^ƚĂƚĞŵĞŶƚŽĨ ůĞĂƌŶŝŶŐĂŶĚĐĂƌĞĞƌŐƌŽǁƚŚƉůĂŶƐ͘ ĂƌŶŝŶŐƐĂŶĚƚŚĞ/ZƌĞƋƵŝƌĞĚ^ƚĂƚĞŵĞŶƚŽĨ ĂƌŶŝŶŐĂŶŶƵĂů dŚĞƉŽƚĞŶƟĂůůĞĂĚĞƌƐĂƌĞĐĂƚĞŐŽƌŝƐĞĚƵŶĚĞƌʹ^ĞŶŝŽƌ>ĞĂĚĞƌƐ͕ ƌĞƉŽƌƚǀŝĂƚŚĞ,D^ĞůĨ^ĞƌǀŝĐĞ͕ǁŚŝĐŚĞůŝŵŝŶĂƚĞƐƚŚĞƉĂƉĞƌ ĞǀĞůŽƉŝŶŐ>ĞĂĚĞƌƐĂŶĚ ŵĞƌŐŝŶŐ>ĞĂĚĞƌƐĨŽƌĚĞǀĞůŽƉŵĞŶƚ ďĂƐĞƉƌŽĐĞƐƐ͘ ƉůĂŶŶŝŶŐƉƵƌƉŽƐĞƐ͘ ͻ ŝƐƚƌŝďƵƚĞĚƚŽŬĞLJƐƚĂŬĞŚŽůĚĞƌƐĂŶƵŵďĞƌŽĨŬĞLJWĞƌƐŽŶĂů ͻ ^ĞĐŽŶĚĞĚƚŚƌĞĞƐƚĂīŽƵƚŽĨƚŚĞĮŌĞĞŶƉŽƚĞŶƟĂůůĞĂĚĞƌƐƚŽ ŵƉůŽLJĞĞĐƟŽŶƌĞƉŽƌƚƐŽŶŶĞǁŚŝƌĞƐ͕ƚĞƌŵŝŶĂƟŽŶͬƌĞƐŝŐŶĂƟŽŶ͕ ĂŶŬŽĨWŚŝůŝƉƉŝŶĞ/ƐůĂŶĚƐ;W/ͿĨŽƌĂƉĞƌŝŽĚŽĨƚŚƌĞĞŵŽŶƚŚƐ͘ ƉƌŽŵŽƟŽŶĂŶĚƐĂůĂƌLJĐŚĂŶŐĞƐƵƐŝŶŐ,D^ĞůĨ^ĞƌǀŝĐĞ͘ dŚŝƐƉƌŽŐƌĂŵǁŝůůĐŽŶƟŶƵĞŝŶϮϬϭϱĂŶĚĂƚŽƚĂůŽĨŶŝŶĞƐƚĂī ͻ ƵƚŽŵĂƚĞĚƚŚĞƐƵďŵŝƐƐŝŽŶĂŶĚĂƉƉƌŽǀĂůŽĨŝŶĐŽŵĞƚLJƉĞƐƐƵĐŚ ŽĨƚŚĞ>ĞĂĚĞƌƐŚŝƉĞǀĞůŽƉŵĞŶƚ'ƌŽƵƉǁŝůůďĞƐĞĐŽŶĚĞĚƚŽ ĂƐŽǀĞƌƟŵĞĂŶĚŽƚŚĞƌĂůůŽǁĂŶĐĞƐƵƐŝŶŐ,D^ĞůĨ^ĞƌǀŝĐĞ͕ W/ŝŶϮϬϭϱ͘ ǁŚŝĐŚƚƌĂŶƐŵŝƚƐĚŝƌĞĐƚůLJƚŽƉĂLJƌŽůů͕ƌĞĚƵĐŝŶŐƉĂLJƌŽůůƉƌŽĐĞƐƐŝŶŐ ͻ ŽŵŵĞŶĐĞĚƚŚĞ^W džĞĐƵƟǀĞŽŵŵŝƩĞĞ; yKͿƉƉƌĞŶƟĐĞ ƟŵĞďLJƚǁŽ;ϮͿŵĂŶĚĂLJƐĂŶĚĞůŝŵŝŶĂƚĞƐƚŚĞƌŝƐŬŽĨŵĂŶƵĂů ^ĐŚĞŵĞ͕ĂŶĚĂƚŽƚĂůŽĨĞŝŐŚƚƐƚĂīŽƵƚŽĨƚŚĞϮϬϭϰ>ĞĂĚĞƌƐŚŝƉ ĞƌƌŽƌĂƚƚŚĞƉĂLJƌŽůůďƵƐŝŶĞƐƐƵŶŝƚ͘ ĞǀĞůŽƉŵĞŶƚƉŽŽůĂƩĞŶĚĞĚƚǁŽ yKŵĞĞƟŶŐƐƚŽĨĂŵŝůŝĂƌŝƐĞ ͻ tĞǁŝůůĐŽŶƟŶƵĞƚŽĂƵƚŽŵĂƚĞĂŶƵŵďĞƌŽĨ,ZŵĂŶƵĂůƉƌŽĐĞƐƐĞƐ ƚŚĞŵƐĞůǀĞƐǁŝƚŚƚŚĞĚĞĐŝƐŝŽŶͲŵĂŬŝŶŐƉƌŽĐĞƐƐĂƚƚŚĞĂŶŬ͛Ɛ ŝŶϮϬϭϱƚŽƐƚƌĞĂŵůŝŶĞƚŚĞĂƉƉƌŽǀĂůƉƌŽĐĞƐƐĂŶĚƐŚŽƌƚĞŶƚŚĞ džĞĐƵƟǀĞ>ĞǀĞů͘ƐƉĂƌƚŽĨƚŚĞĂŶŬ͛ƐŝŶŝƟĂƟǀĞƚŽŝŵƉƌŽǀĞ ƚƵƌŶĂƌŽƵŶĚƟŵĞŽŶŽƵƌŝŶƚĞƌŶĂůĐƵƐƚŽŵĞƌƐ͛ŶĞĞĚƐ͘ ƐĞƌǀŝĐĞĚĞůŝǀĞƌLJĂŶĚĞŵďĞĚƚŚĞƐĞƌǀŝĐĞĐƵůƚƵƌĞŝŶƚŚĞĂŶŬ͕ ĨĂĐŝůŝƚĂƚĞĚƚŚĞ͞ŝĐĂƌĞƵƐƚŽŵĞƌ&ŝƌƐƚ͟ƚƌĂŝŶŝŶŐƉƌŽŐƌĂŵ͕ dŽƚĂůƐƚĂīǁĂƐϮ͕ϳϮϭ;^WWE'ͿĂŶĚϯ͕ϳϬϵ;^W'ƌŽƵƉͿ͘^ƚĂī ĐŽǀĞƌŝŶŐƚŚĞĞŶƟƌĞǁŽƌŬĨŽƌĐĞŝŶWE'͕^/ĂŶĚ&ŝũŝ͘ ƚƵƌŶĂƌŽƵŶĚŝŶϮϬϭϰǁĂƐϭϮƉĞƌĐĞŶƚĐŽŵƉĂƌĞĚƚŽϭϬƉĞƌĐĞŶƚŝŶ ϮϬϭϯ͘dŽƚĂůƚƌĂŝŶŝŶŐŵĂŶĚĂLJƐĨŽƌϮϬϭϰǁĂƐϭϭ͕ϭϯϭĞƋƵĂƟŶŐƚŽ Ongoing training initiatives for 2014 included: ϰ͘ϬŵĂŶĚĂLJƐƉĞƌĞŵƉůŽLJĞĞ͘ ͻ &ĂĐŝůŝƚĂƚĞĚ>ĞĂĚĞƌƐŚŝƉĚĞǀĞůŽƉŵĞŶƚĐŽƵƌƐĞĨŽƌƚĞĂŵůĞĂĚĞƌƐ OPERATIONS & INFORMATION TECHNOLOGY ĂŶĚŵŝĚĚůĞŵĂŶĂŐĞŵĞŶƚĞŵƉůŽLJĞĞƐ ͻ ŽŶĚƵĐƚĞĚĂǀĂƌŝĞƚLJŽĨƐŽŌƐŬŝůůƐĂŶĚƚĞĐŚŶŝĐĂůƐŬŝůůƐ͕ŶĂŵĞůLJ͖ 'ŝǀĞŶƚŚĞƌŽůĞŽĨƚŚĞ^hĂƐƉƌŽǀŝĚĞƌŽĨƚĞĐŚŶŽůŽŐLJ͕ƚƌĂŶƐĂĐƟŽŶĂů ƵƐƚŽŵĞƌ^ĞƌǀŝĐĞƐ͕WƌĞƐĞŶƚĂƟŽŶ^ŬŝůůƐ͕dŝŵĞDĂŶĂŐĞŵĞŶƚ͕ ĂŶĚůŽŐŝƐƟĐĂůƐƵƉƉŽƌƚĨŽƌƚŚĞĂŶŬ͕ƚŚĞƉĂƐƚLJĞĂƌĞdžƉĞƌŝĞŶĐĞĚ ŽŵŵƵŶŝĐĂƟŽŶ^ƚƌĂƚĞŐLJĂŶĚDŝĐƌŽƐŽŌKĸĐĞƉƉůŝĐĂƟŽŶ ƐŝŐŶŝĮĐĂŶƚƉƌŽŐƌĞƐƐĂŶĚͬŽƌŝŵƉůĞŵĞŶƚĂƟŽŶŽĨŶƵŵĞƌŽƵƐŬĞLJƉƌŽũĞĐƚƐ ƚƌĂŝŶŝŶŐĐŽƵƌƐĞƐ͘ ƉƌŽǀŝĚŝŶŐŝŶĐƌĞĂƐĞĚďƵƐŝŶĞƐƐĨƵŶĐƟŽŶĂůŝƟĞƐĂƐǁĞůůĂƐŝŶĐƌĞĂƐĞĚ ͻ ŽŶĚƵĐƚĞĚdƌĂŝŶͲƚŚĞͲdƌĂŝŶĞƌǁŽƌŬƐŚŽƉĨŽƌƚŚĞZĞƚĂŝůƌĂŶĐŚ ĞĸĐŝĞŶĐŝĞƐ͘/ŶƚĞƌŵƐŽĨƚŚĞ<d^;<ŝŶĂƵƚŽŵĂƚĞĚdƌĂŶƐĂĐƟŽŶ dƌĂŝŶŝŶŐŽĸĐĞƌƐĂŶĚZƵƌĂůZĞŐŝŽŶĂůDĂŶĂŐĞƌƐƚŽĚĞǀĞůŽƉƚŚĞŝƌ ^LJƐƚĞŵͿWƌŽũĞĐƚƐƉŽŶƐŽƌĞĚďLJƚŚĞWE'͕ǁŚĞƌĞĂƐϮϬϭϯƐĂǁƚŚĞ ĐŽƵƌƐĞƉƌĞƉĂƌĂƟŽŶĂŶĚƉƌĞƐĞŶƚĂƟŽŶƐŬŝůůƐ͘ ŝŵƉůĞŵĞŶƚĂƟŽŶŽĨZd'^;ZĞĂůdŝŵĞ'ƌŽƐƐ^ĞƩůĞŵĞŶƚƐͿƉĂLJŵĞŶƚƐ͕ ͻ ŽŶƟŶƵĞĚƚŽĨĂĐŝůŝƚĂƚĞDŽŽĚLJ͛ƐƚƌĂŝŶŝŶŐŝŶƌĞĚŝƚ^ŬŝůůƐĂŶĚ ϮϬϭϰĞǀŝĚĞŶĐĞĚƚŚĞŝŵƉůĞŵĞŶƚĂƟŽŶŽĨƚŚĞĐŚĞƋƵĞƚƌƵŶĐĂƟŽŶ ƵƐŝŶĞƐƐĮŶĂŶĐĞĨŽƌƌĞĚŝƚĂŶĚŽƌƉŽƌĂƚĞĂŶŬŝŶŐĞŵƉůŽLJĞĞƐ͘ ƉŚĂƐĞǁŚĞƌĞďLJƉĂƉĞƌĐŚĞƋƵĞƐĂƌĞŶŽůŽŶŐĞƌĞdžĐŚĂŶŐĞĚďLJƚŚĞ ďĂŶŬƐ͘/ŶƐƚĞĂĚĚŝŐŝƚĂůĐŚĞƋƵĞŝŵĂŐĞƐĂƌĞĞdžĐŚĂŶŐĞĚĂŶĚƐĞƩůĞĚ Remuneration Management/ ƚŚƌŽƵŐŚŽƵƚƚŚĞĚĂLJƵƐŝŶŐƚŚĞ<d^ƐLJƐƚĞŵƚŽǁŚŝĐŚĂůůďĂŶŬƐ ĂƌĞĐŽŶŶĞĐƚĞĚ͘dŚŝƐŝƐƐŝŐŶŝĮĐĂŶƚďĞĐĂƵƐĞǁŝƚŚƚŚĞŝŶƚƌŽĚƵĐƟŽŶ Succession Planning ŽĨĐŚĞƋƵĞƚƌƵŶĐĂƟŽŶ͕WE'ŚĂƐƐƵƌƉĂƐƐĞĚŶƵŵĞƌŽƵƐĚĞǀĞůŽƉĞĚ ŵĂƌŬĞƚƐŝŶƚĞƌŵƐŽĨĂƵƚŽŵĂƟŽŶ͘LJǁĂLJŽĨďĞŶĞĮƚƐƚŽ^W͕ƚŚŝƐ ͻ /ŶĐŽŶũƵŶĐƟŽŶǁŝƚŚĂŶƵŵďĞƌŽĨ^hƐ͕ŶĂŵĞůLJZĞƚĂŝůĂŶĚ ŚĂƐĂůůŽǁĞĚĨŽƌŐƌĞĂƚĞƌƐĞĐƵƌŝƚLJŝŶŝĚĞŶƟĮĐĂƟŽŶŽĨĨƌĂƵĚƐĂƐǁĞůů 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ƉŽƐŝƟŽŶĂŶĚĂƐƐĞƚƐ͖ ŝƚƐĞůĨĂŐĂŝŶƐƚ͗ ͻ ĞŶƐƵƌŝŶŐƚŚĂƚƚŚĞĐŽŵƉĂŶLJĐŽŵƉůŝĞƐǁŝƚŚƚŚĞůĂǁĂŶĚƌĞůĞǀĂŶƚ ƌĞŐƵůĂƟŽŶƐ͕ĂŶĚĐŽŶĨŽƌŵƐǁŝƚŚƚŚĞŚŝŐŚĞƐƚƐƚĂŶĚĂƌĚƐŽĨ ͻ ^yŽƌƉŽƌĂƚĞ'ŽǀĞƌŶĂŶĐĞŽƵŶĐŝů͚ŽƌƉŽƌĂƚĞ'ŽǀĞƌŶĂŶĐĞ ĮŶĂŶĐŝĂůĂŶĚĞƚŚŝĐĂůďĞŚĂǀŝŽƵƌ͖ ĂŶĚĞƐƚWƌĂĐƟĐĞZĞĐŽŵŵĞŶĚĂƟŽŶƐ͛ ͻ ĂĐƋƵŝƐŝƟŽŶƐĂŶĚĚŝƐƉŽƐĂůƐŵĂƚĞƌŝĂůƚŽƚŚĞďƵƐŝŶĞƐƐ͖ ͻ ƵƐƚƌĂůŝĂŶWƌƵĚĞŶƟĂůZĞŐƵůĂƚŽƌLJƵƚŚŽƌŝƚLJWƌƵĚĞŶƟĂů^ƚĂŶĚĂƌĚ ͻ ĞƐƚĂďůŝƐŚŝŶŐĂƵƚŚŽƌŝƚLJůĞǀĞůƐ͖ W^ϱϭϬ ͻ ŝƌĞĐƚŽƌƐ͛ƌĞŵƵŶĞƌĂƟŽŶǀŝĂƚŚĞZĞŵƵŶĞƌĂƟŽŶΘEŽŵŝŶĂƟŽŶ ͻ ^ƚĂŶĚĂƌĚƵƐƚƌĂůŝĂ^ϴϬϬϬͲϮϬϬϯ'ŽŽĚ'ŽǀĞƌŶĂŶĐĞWƌŝŶĐŝƉůĞƐ ŽŵŵŝƩĞĞ͖ ͻ ƐĞůĞĐƟŶŐ͕ǁŝƚŚƚŚĞĂƐƐŝƐƚĂŶĐĞŽĨƚŚĞƵĚŝƚ͕ZŝƐŬĂŶĚŽŵƉůŝĂŶĐĞ ^WŝƐŵŝŶĚĨƵůŽĨƚŚĞĂĚǀĂŶƚĂŐĞƐŽĨĚĞŵŽŶƐƚƌĂƟŶŐƚŽŝŶǀĞƐƚŽƌƐ ŽŵŵŝƩĞĞ͕ĂŶĚƌĞĐŽŵŵĞŶĚŝŶŐƚŽƐŚĂƌĞŚŽůĚĞƌƐ͕ƚŚĞ ƚŚĂƚŝƚƐĐŽƌƉŽƌĂƚĞŐŽǀĞƌŶĂŶĐĞƐƚĂŶĚĂƌĚƐŵĞĞƚƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐ ĂƉƉŽŝŶƚŵĞŶƚŽĨĞdžƚĞƌŶĂůĂƵĚŝƚŽƌƐ͖ ĞdžƉĞĐƚĞĚŽĨĐŽŵƉĂŶŝĞƐůŝƐƚĞĚŝŶĐŽƵŶƚƌŝĞƐƐƵĐŚĂƐƵƐƚƌĂůŝĂ͘dŚŝƐ ͻ ĂƉƉƌŽǀŝŶŐĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘ ŽƌƉŽƌĂƚĞ'ŽǀĞƌŶĂŶĐĞ^ƚĂƚĞŵĞŶƚƚŚĞƌĞĨŽƌĞĐŽŵƉĂƌĞƐ^W͛Ɛ ĐŽƌƉŽƌĂƚĞŐŽǀĞƌŶĂŶĐĞƉƌĂĐƟĐĞƐƚŽƚŚĞ^yŽƌƉŽƌĂƚĞ'ŽǀĞƌŶĂŶĐĞ ŶƵŵďĞƌŽĨƚŚĞƐĞƌĞƐƉŽŶƐŝďŝůŝƟĞƐŚĂǀĞďĞĞŶĚĞůĞŐĂƚĞĚďLJƚŚĞŽĂƌĚ ŽƵŶĐŝůĂŶĚĞƐƚWƌĂĐƟĐĞZĞĐŽŵŵĞŶĚĂƟŽŶƐ͘^WŵĂŶĂŐĞƐŝŶ ƚŽǀĂƌŝŽƵƐĐŽŵŵŝƩĞĞƐ͘dŚĞĐŽŵŵŝƩĞĞƐĂŶĚƚŚĞŝƌƌĞƐƉŽŶƐŝďŝůŝƟĞƐ ĞdžĐĞƐƐŽĨŚĂůĨƚŚĞďĂŶŬŝŶŐŵĂƌŬĞƚŝŶWĂƉƵĂEĞǁ'ƵŝŶĞĂ͕ĂŶĚŝƐ ĂƌĞĚĞƚĂŝůĞĚŝŶ^ĞĐƟŽŶϮ͕ŽĂƌĚŽŵŵŝƩĞĞƐ͘ ƉƌĞĚŽŵŝŶĂŶƚůLJŽǁŶĞĚďLJŝŶƐƟƚƵƟŽŶƐĂŶĚŝŶĚŝǀŝĚƵĂůƐŝŶWĂƉƵĂEĞǁ 'ƵŝŶĞĂ͘dŚĞŽĂƌĚ͕ŵĂŶĂŐĞŵĞŶƚĂŶĚƐƚĂīŽĨ^WĂƌĞǀĞƌLJŵƵĐŚ dŚĞŽĂƌĚŚĂƐĚĞůĞŐĂƚĞĚƚŽŵĂŶĂŐĞŵĞŶƚƌĞƐƉŽŶƐŝďŝůŝƚLJĨŽƌ͗ ĂǁĂƌĞŽĨƚŚĞŝƌƌĞƐƉŽŶƐŝďŝůŝƟĞƐƚŽƚŚĞƉĞŽƉůĞŽĨWĂƉƵĂEĞǁ'ƵŝŶĞĂ͘ dŚĞƐĞƚŽĨŽƌƉŽƌĂƚĞ'ŽǀĞƌŶĂŶĐĞƉƌŝŶĐŝƉůĞƐĚĞǀĞůŽƉĞĚďLJ^WŝƐ ͻ ĚĞǀĞůŽƉŝŶŐƚŚĞĂŶŶƵĂůŽƉĞƌĂƟŶŐĂŶĚĐĂƉŝƚĂůĞdžƉĞŶĚŝƚƵƌĞ ŝŶƚĞŶĚĞĚƚŽƉƌŽǀŝĚĞĂĨƌĂŵĞǁŽƌŬƚŚĂƚǁŝůůŚĞůƉƚŽĞŶƐƵƌĞƚŚĂƚ^W ďƵĚŐĞƚƐĨŽƌŽĂƌĚĂƉƉƌŽǀĂů͕ĂŶĚŵŽŶŝƚŽƌŝŶŐƉĞƌĨŽƌŵĂŶĐĞ ĚĞĂůƐĨĂŝƌůLJĂŶĚŽƉĞŶůLJǁŝƚŚĂůůŝƚƐƐƚĂŬĞŚŽůĚĞƌƐʹƐŚĂƌĞŚŽůĚĞƌƐ͕ ĂŐĂŝŶƐƚƚŚĞƐĞďƵĚŐĞƚƐ͖ ĐƵƐƚŽŵĞƌƐĂŶĚƐƚĂīĂůŝŬĞ͘ ͻ ĚĞǀĞůŽƉŝŶŐĂŶĚŝŵƉůĞŵĞŶƟŶŐƐƚƌĂƚĞŐŝĞƐǁŝƚŚŝŶƚŚĞ ĨƌĂŵĞǁŽƌŬĂƉƉƌŽǀĞĚďLJƚŚĞŽĂƌĚ͕ĂŶĚƉƌŽǀŝĚŝŶŐƚŚĞŽĂƌĚ ^WƉƵďůŝƐŚĞƐŝƚƐĐŽƌƉŽƌĂƚĞŐŽǀĞƌŶĂŶĐĞƉƌĂĐƟĐĞƐŽŶŝƚƐǁĞďƐŝƚĞ͘ ǁŝƚŚƌĞĐŽŵŵĞŶĚĂƟŽŶƐŽŶŬĞLJƐƚƌĂƚĞŐŝĐŝƐƐƵĞƐ͖ dŚŝƐŝƐĂǀĂŝůĂďůĞĂƚǁǁǁ͘ďƐƉ͘ĐŽŵ͘ƉŐŝŶƚŚĞƐŚĂƌĞŚŽůĚĞƌƐƐĞĐƟŽŶ͘ ͻ ĂƉƉŽŝŶƟŶŐŵĂŶĂŐĞŵĞŶƚďĞůŽǁƚŚĞůĞǀĞůŽĨ'ĞŶĞƌĂůDĂŶĂŐĞƌ ĂŶĚƉƌĞƉĂƌŝŶŐĂŶĚŵĂŝŶƚĂŝŶŝŶŐƐƵĐĐĞƐƐŝŽŶƉůĂŶƐĨŽƌƚŚĞƐĞ ƐĞŶŝŽƌƌŽůĞƐ͖ THE BOARD OF DIRECTORS ͻ ĚĞǀĞůŽƉŝŶŐĂŶĚŵĂŝŶƚĂŝŶŝŶŐĞīĞĐƟǀĞƌŝƐŬŵĂŶĂŐĞŵĞŶƚ ͻ ƉŽůŝĐŝĞƐĂŶĚƉƌŽĐĞĚƵƌĞƐ͖ Role and Responsibility of the Board ͻ ŬĞĞƉŝŶŐƚŚĞŽĂƌĚĂŶĚƚŚĞŵĂƌŬĞƚĨƵůůLJŝŶĨŽƌŵĞĚŽĨŵĂƚĞƌŝĂů ĚĞǀĞůŽƉŵĞŶƚƐ͘ dŚĞƌŽůĞƐĂŶĚƌĞƐƉŽŶƐŝďŝůŝƟĞƐŽĨƚŚĞŽĂƌĚĂƌĞĚĞĮŶĞĚŝŶƚŚĞŽĂƌĚ ŚĂƌƚĞƌ͘dŚŝƐĚŽĐƵŵĞŶƚĂůƐŽĚĞƚĂŝůƐƚŚĞŵĂƩĞƌƐƌĞƐĞƌǀĞĚĨŽƌƚŚĞ Membership, expertise, size and ŽĂƌĚĂŶĚŵĂƩĞƌƐƚŚĂƚŚĂǀĞďĞĞŶĚĞůĞŐĂƚĞĚƚŽŵĂŶĂŐĞŵĞŶƚ͘ composition of the Board dŚĞŽĂƌĚ͕ǁŝƚŚƚŚĞƐƵƉƉŽƌƚŽĨŝƚƐĐŽŵŵŝƩĞĞƐ͕ŝƐƌĞƐƉŽŶƐŝďůĞƚŽ ƚŚĞƐŚĂƌĞŚŽůĚĞƌƐĨŽƌƚŚĞŽǀĞƌĂůůƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚĞĐŽŵƉĂŶLJ dŚĞŽƌƉŽƌĂƚĞ'ŽǀĞƌŶĂŶĐĞWƌŝŶĐŝƉůĞƐĂĸƌŵƚŚĂƚƚŚĞŵĂũŽƌŝƚLJ ŝŶĐůƵĚŝŶŐŝƚƐƐƚƌĂƚĞŐŝĐĚŝƌĞĐƟŽŶ͖ĞƐƚĂďůŝƐŚŝŶŐŐŽĂůƐĨŽƌŵĂŶĂŐĞŵĞŶƚ͖ ŽĨƚŚĞŽĂƌĚƐŚŽƵůĚďĞŝŶĚĞƉĞŶĚĞŶƚ͘ƐŝƐƚLJƉŝĐĂůŽĨƐŵĂůů ĂŶĚŵŽŶŝƚŽƌŝŶŐƚŚĞĂĐŚŝĞǀĞŵĞŶƚŽĨƚŚŽƐĞŐŽĂůƐǁŝƚŚĂǀŝĞǁƚŽ ĮŶĂŶĐŝĂůŵĂƌŬĞƚƐŐĞŶĞƌĂůůLJŝŶWĂƉƵĂEĞǁ'ƵŝŶĞĂ͕ƚŚĞƌĞĂƌĞ ŽƉƟŵŝƐŝŶŐĐŽŵƉĂŶLJƉĞƌĨŽƌŵĂŶĐĞĂŶĚŝŶĐƌĞĂƐŝŶŐƐŚĂƌĞŚŽůĚĞƌ ǀĞƌLJĐŽŶƐŝĚĞƌĂďůĞĚĞŵĂŶĚƐŽŶƚŚĞƌĞůĂƟǀĞůLJƐŵĂůůŶƵŵďĞƌƐŽĨ ǀĂůƵĞ͘ ƉĞŽƉůĞǁŝƚŚƚŚĞƐŬŝůůƐĂŶĚĞdžƉĞƌŝĞŶĐĞƚŽĮůůƚŚĞĚĞŵĂŶĚŝŶŐƌŽůĞ ŽĨEŽŶͲĞdžĞĐƵƟǀĞŝƌĞĐƚŽƌŽŶƚŚĞŽĂƌĚƐŽĨƚŚĞEĂƟŽŶ͛ƐůĂƌŐĞƌ ͻ ŽǀĞƌĂůůƐƚƌĂƚĞŐLJŽĨƚŚĞĐŽŵƉĂŶLJ͕ŝŶĐůƵĚŝŶŐŽƉĞƌĂƟŶŐ͕ĮŶĂŶĐŝŶŐ͕ ĐŽƌƉŽƌĂƚĞŝŶƐƟƚƵƟŽŶƐ͘ ĚŝǀŝĚĞŶĚƐ͕ĂŶĚƌŝƐŬŵĂŶĂŐĞŵĞŶƚ͖ ͻ ĂƉƉŽŝŶƟŶŐƚŚĞ'ƌŽƵƉŚŝĞĨ džĞĐƵƟǀĞKĸĐĞƌĂŶĚƐĞƫŶŐĂŶ /ŶƚŚĞƐĞĐŝƌĐƵŵƐƚĂŶĐĞƐŝƚŝƐŝŶĞǀŝƚĂďůĞƚŚĂƚĂŶƵŵďĞƌŽĨƚŚĞ ĂƉƉƌŽƉƌŝĂƚĞƌĞŵƵŶĞƌĂƟŽŶƉĂĐŬĂŐĞ͖ EŽŶͲ džĞĐƵƟǀĞŝƌĞĐƚŽƌƐŽĨ^WǁŝůůĂůƐŽŚĂǀĞƌŽůĞƐŽŶƚŚĞŽĂƌĚƐ͕ ͻ ĂƉƉŽŝŶƟŶŐ'ĞŶĞƌĂůDĂŶĂŐĞƌƐĂŶĚƐĞƫŶŐĂƉƉƌŽƉƌŝĂƚĞ ŽƌŝŶ^ĞŶŝŽƌDĂŶĂŐĞŵĞŶƚ͕ŽĨŝŶƐƟƚƵƟŽŶƐƚŚĂƚŵĂLJďĞƐŝŐŶŝĮĐĂŶƚ ƌĞŵƵŶĞƌĂƟŽŶƉĂĐŬĂŐĞƐ͖ ƐŚĂƌĞŚŽůĚĞƌƐŝŶ͕ŽƌƐƵďƐƚĂŶƟĂůĐƵƐƚŽŵĞƌƐŽĨƚŚĞĂŶŬ͘ BSP Annual Report 2014 25 &25325$7(*29(51$1&( BSP Board of Directors ŝƌĞĐƚŽƌƐŽĨ^WĂƌĞŵĞƟĐƵůŽƵƐŝŶŚĂŶĚůŝŶŐƐŝƚƵĂƟŽŶƐǁŚĞƌĞ ŶĚĐŽŶƐĞƋƵĞŶƚůLJŐŝǀĞƐĐĂƌĞĨƵůĐŽŶƐŝĚĞƌĂƟŽŶƚŽƐĞƫŶŐĐƌŝƚĞƌŝĂ ƚŚĞƌĞĐŽƵůĚƉŽƚĞŶƟĂůůLJďĞĐŽŶŇŝĐƚƐŽĨŝŶƚĞƌĞƐƚ͕ďLJĚĞĐůĂƌŝŶŐ ĨŽƌŶĞǁĂƉƉŽŝŶƚŵĞŶƚƐŝƚŵĂLJƌĞĐŽŵŵĞŶĚƚŽƐŚĂƌĞŚŽůĚĞƌƐŝŶ ƚŚĞŝƌŝŶƚĞƌĞƐƚƐŝŶĂĚǀĂŶĐĞ͕ĂŶĚĂďƐĞŶƟŶŐƚŚĞŵƐĞůǀĞƐĨƌŽŵĂŶLJ ĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞ^WŽŶƐƟƚƵƟŽŶ͘/ƚŚĂƐĚĞůĞŐĂƚĞĚƚŚĞŝŶŝƟĂů ĐŽŶƐŝĚĞƌĂƟŽŶŽĨŵĂƩĞƌƐǁŚĞƌĞĂĐŽŶŇŝĐƚŵŝŐŚƚĂƌŝƐĞ͘dŚĞĂŶŬ͛Ɛ ƐĐƌĞĞŶŝŶŐƉƌŽĐĞƐƐŝŶǀŽůǀĞĚƚŽŝƚƐZĞŵƵŶĞƌĂƟŽŶĂŶĚEŽŵŝŶĂƟŽŶ ŽƌƉŽƌĂƚĞ'ŽǀĞƌŶĂŶĐĞWƌŝŶĐŝƉůĞƐƌĞƋƵŝƌĞŝƌĞĐƚŽƌƐƚŽĚŝƐĐůŽƐĞĂŶLJ ŽŵŵŝƩĞĞǁŚŝĐŚ͕ŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚŝƚƐŚĂƌƚĞƌ͕ŵĂLJƐĞĞŬ ŶĞǁŝƌĞĐƚŽƌƐŚŝƉƐĂŶĚĞƋƵŝƚLJŝŶƚĞƌĞƐƚƐĂƚĞĂĐŚŽĂƌĚŵĞĞƟŶŐ͘ ŝŶĚĞƉĞŶĚĞŶƚĂĚǀŝĐĞŽŶƉŽƐƐŝďůĞŶĞǁĐĂŶĚŝĚĂƚĞƐĨŽƌŝƌĞĐƚŽƌƐŚŝƉƐ͘ ůůŝƌĞĐƚŽƌƐŵƵƐƚďĞƐĂƟƐĮĞĚƚŚĂƚƚŚĞďĞƐƚĐĂŶĚŝĚĂƚĞŚĂƐďĞĞŶ dŚĞŵĂdžŝŵƵŵŶƵŵďĞƌŽĨŝƌĞĐƚŽƌƐ͕ĂƐƉƌĞƐĐƌŝďĞĚďLJƚŚĞŽŶƐƟƚƵƟŽŶ ƐĞůĞĐƚĞĚ͘ ĂƉƉƌŽǀĞĚďLJƐŚĂƌĞŚŽůĚĞƌƐ͕ŝƐƚĞŶ͘ƚƚŚĞĚĂƚĞŽĨƚŚŝƐƌĞƉŽƌƚ ƚŚĞƌĞĂƌĞƚĞŶŝƌĞĐƚŽƌƐ͕ǁŝƚŚŶŝŶĞEŽŶͲĞdžĞĐƵƟǀĞƐĚĞƐŝŐŶĂƚĞĚĂƐ EŽŵŝŶĞĞƐŽĨƚŚĞŽĂƌĚĂŶĚͬŽƌƐŚĂƌĞŚŽůĚĞƌƐŵƵƐƚŵĞĞƚƚŚĞ͚Įƚ ŝŶĚĞƉĞŶĚĞŶƚ͕ƉůƵƐƚŚĞ'ƌŽƵƉŚŝĞĨ džĞĐƵƟǀĞKĸĐĞƌ͘hŶĚĞƌƚŚĞ ĂŶĚƉƌŽƉĞƌƉĞƌƐŽŶ͛ĐƌŝƚĞƌŝĂĞƐƚĂďůŝƐŚĞĚďLJƚŚĞĂŶŬŽĨWĂƉƵĂ ŽŶƐƟƚƵƟŽŶ͕ĂƚĞĂĐŚĂŶŶƵĂůŐĞŶĞƌĂůŵĞĞƟŶŐŽŶĞͲƚŚŝƌĚŽĨƚŚĞ EĞǁ'ƵŝŶĞĂďĞĨŽƌĞƚŚĞLJĐĂŶƚĂŬĞƚŚĞŝƌƉůĂĐĞŽŶƚŚĞŽĂƌĚ͘dŚĞ ĐŽŵƉĂŶLJ͛ƐŝƌĞĐƚŽƌƐ͕ŝŶĂĚĚŝƟŽŶƚŽĂŶLJŝƌĞĐƚŽƌĂƉƉŽŝŶƚĞĚĚƵƌŝŶŐ ŽĂƌĚĚŽĞƐŶŽƚĂĐĐĞƉƚƚŚĂƚĂŶLJŽĸĐĞďĞĂƌĞƌĂŶĚͬŽƌĞŵƉůŽLJĞĞ ƚŚĞLJĞĂƌ͕ĞdžĐůƵĚŝŶŐƚŚĞ'ƌŽƵƉŚŝĞĨ džĞĐƵƟǀĞKĸĐĞƌ͕ŵƵƐƚŽīĞƌ ŽĨĂŶŝŶƐƟƚƵƟŽŶĂůƐŚĂƌĞŚŽůĚĞƌ͕ďLJǀŝƌƚƵĞŽŶůLJŽĨŚŝƐͬŚĞƌƉŽƐŝƟŽŶ ƚŚĞŵƐĞůǀĞƐĨŽƌƌĞͲĞůĞĐƟŽŶďLJƚŚĞƐŚĂƌĞŚŽůĚĞƌƐ͘ ǁŝƚŚŝŶƚŚĂƚŽƌŐĂŶŝƐĂƟŽŶ͕ŚĂǀĞĂŶĂƵƚŽŵĂƟĐƌŝŐŚƚƚŽďĞĂƉƉŽŝŶƚĞĚ ƚŽƚŚĞŽĂƌĚ͘ EŽƌŵĂůůLJ͕EŽŶͲĞdžĞĐƵƟǀĞŝƌĞĐƚŽƌƐĂƌĞĞdžƉĞĐƚĞĚƚŽƐĞƌǀĞĂ ŵĂdžŝŵƵŵŽĨĨŽƵƌƚŚƌĞĞͲLJĞĂƌƚĞƌŵƐ͕ĚĂƟŶŐĨƌŽŵƚŚĞ'DĂƚǁŚŝĐŚ KŶũŽŝŶŝŶŐƚŚĞŽĂƌĚ͕ŶĞǁŝƌĞĐƚŽƌƐǁŝůůďĞƉƌŽǀŝĚĞĚǁŝƚŚĂ ƚŚĞŶĞǁůLJĞůĞĐƚĞĚŝƌĞĐƚŽƌŝƐĮƌƐƚĐŽŶĮƌŵĞĚďLJƐŚĂƌĞŚŽůĚĞƌƐ͘ ĐŽŵƉƌĞŚĞŶƐŝǀĞŽƌŝĞŶƚĂƟŽŶƉƌŽŐƌĂŵŵĞ͘ dŚŝƐƉƌŽǀŝƐŝŽŶŚĂƐĞīĞĐƚĨƌŽŵƚŚĞĚĂƚĞƚŚĞĂŶŬƚŽŽŬŝƚƐƉƌĞƐĞŶƚ ĨŽƌŵ͕ĨŽůůŽǁŝŶŐƚŚĞŵĞƌŐĞƌŽĨ^WǁŝƚŚƚŚĞWĂƉƵĂEĞǁ'ƵŝŶĞĂ Role and selection of the Chairman ĂŶŬŝŶŐŽƌƉŽƌĂƟŽŶŝŶƉƌŝůϮϬϬϮ͘/ŶĐĞƌƚĂŝŶŝŶƐƚĂŶĐĞƐŝƚŵĂLJ ďĞĐŽŶƐŝĚĞƌĞĚƚŚĂƚĂĚŝƌĞĐƚŽƌŵĂLJďƌŝŶŐǀĂůƵĂďůĞĞdžƉĞƌƟƐĞ͕ dŚĞŚĂŝƌŵĂŶŝƐĞůĞĐƚĞĚďLJƚŚĞŝƌĞĐƚŽƌƐĞǀĞƌLJƚǁŽLJĞĂƌƐĂŶĚŚŽůĚƐ ŝŶĚĞƉĞŶĚĞŶƚũƵĚŐĞŵĞŶƚĂŶĚĂŶĂďŝůŝƚLJƚŽĂĐƚǁŚŝĐŚŵĂLJĚĞƚĞƌŵŝŶĞ ƚŚĞƉŽƐŝƟŽŶĨŽƌĂŵĂdžŝŵƵŵŽĨƚŚƌĞĞƚĞƌŵƐ͘,ŝƐƌŽůĞŝŶĐůƵĚĞƐ͗ ƚŚĂƚŝƚŝƐŝŶƚŚĞďĞƐƚŝŶƚĞƌĞƐƚƐŽĨƚŚĞŽŵƉĂŶLJĨŽƌĂĚŝƌĞĐƚŽƌƚŽ ƐĞƌǀĞďĞLJŽŶĚĂĮdžĞĚƚĞƌŵ͘ ͻ ĞŶƐƵƌŝŶŐĂůůŶĞǁŽĂƌĚŵĞŵďĞƌƐĂƌĞĨƵůůLJĂǁĂƌĞŽĨƚŚĞŝƌ ĚƵƟĞƐĂŶĚƌĞƐƉŽŶƐŝďŝůŝƟĞƐ͖ dŚĞŽĂƌĚŚĂƐĂďƌŽĂĚƌĂŶŐĞŽĨƐŬŝůůƐ͕ĞdžƉĞƌŝĞŶĐĞĂŶĚĞdžƉĞƌƟƐĞƚŚĂƚ ͻ ƉƌŽǀŝĚŝŶŐĞīĞĐƟǀĞůĞĂĚĞƌƐŚŝƉŽŶƚŚĞĐŽŵƉĂŶLJ͛ƐƐƚƌĂƚĞŐLJ͖ ĞŶĂďůĞƐŝƚƚŽŵĞĞƚŝƚƐŽďũĞĐƟǀĞƐ͘ĞƚĂŝůƐŽĨƚŚĞŝƌĞĐƚŽƌƐ͛ďƵƐŝŶĞƐƐ ͻ ƉƌĞƐĞŶƟŶŐƚŚĞǀŝĞǁƐŽĨƚŚĞŽĂƌĚƚŽƚŚĞƉƵďůŝĐ͖ ďĂĐŬŐƌŽƵŶĚƐĂŶĚĞdžƉĞƌŝĞŶĐĞĂƌĞƉƌŽǀŝĚĞĚŽŶƉĂŐĞƐϵĂŶĚϭϬ͘ ͻ ĞŶƐƵƌŝŶŐƚŚĞŽĂƌĚŵĞĞƚƐƌĞŐƵůĂƌůLJƚŚƌŽƵŐŚŽƵƚƚŚĞLJĞĂƌ͕ĂŶĚ dŚĞŽĂƌĚĂĐĐĞƉƚƐƚŚĂƚŝƚŚĂƐĂƌĞƐƉŽŶƐŝďŝůŝƚLJƚŽƐŚĂƌĞŚŽůĚĞƌƐƚŽ ƚŚĂƚŵŝŶƵƚĞƐĂƌĞƚĂŬĞŶĂŶĚƌĞĐŽƌĚĞĚĂĐĐƵƌĂƚĞůLJ͖ ĞŶƐƵƌĞƚŚĂƚŝƚŵĂŝŶƚĂŝŶƐĂŶĂƉƉƌŽƉƌŝĂƚĞŵŝdžŽĨƐŬŝůůƐĂŶĚĞdžƉĞƌŝĞŶĐĞ ͻ ƐĞƫŶŐƚŚĞĂŐĞŶĚĂŽĨŵĞĞƟŶŐƐĂŶĚŵĂŝŶƚĂŝŶŝŶŐƉƌŽƉĞƌ ;ǁŝƚŚŽƵƚŐĞŶĚĞƌďŝĂƐͿǁŝƚŚŝŶŝƚƐŵĞŵďĞƌƐŚŝƉ͘ ĐŽŶĚƵĐƚĚƵƌŝŶŐŵĞĞƟŶŐƐ͖ ͻ ƌĞǀŝĞǁŝŶŐƚŚĞƉĞƌĨŽƌŵĂŶĐĞŽĨEŽŶͲĞdžĞĐƵƟǀĞŝƌĞĐƚŽƌƐ͖ 26 BSP Annual Report 2014 &25325$7(*29(51$1&( dŚĞŚĂŝƌŵĂŶŝƐŶŽƚƉĞƌŵŝƩĞĚƚŽŽĐĐƵƉLJƚŚĞƌŽůĞŽĨŚŝĞĨ Meetings of the Board and attendance džĞĐƵƟǀĞKĸĐĞƌ͘ ^ĐŚĞĚƵůĞĚŵĞĞƟŶŐƐŽĨƚŚĞŽĂƌĚĂƌĞŚĞůĚƐŝdžƟŵĞƐĂLJĞĂƌ͕ĂŶĚ <ŽƐƚĂƐŽŶƐƚĂŶƟŶŽƵ͕K ͕ǁŚŽƐŝƚƐŽŶƚŚĞŽĂƌĚĂƐĂŶŝŶĚĞƉĞŶĚĞŶƚ ƚŚĞŽĂƌĚŵĞĞƚƐŽŶŽƚŚĞƌŽĐĐĂƐŝŽŶƐĂƐŶĞĐĞƐƐĂƌLJƚŽĚĞĂůǁŝƚŚ EŽŶͲĞdžĞĐƵƟǀĞŝƌĞĐƚŽƌ͕ŝƐƚŚĞĐƵƌƌĞŶƚŚĂŝƌŵĂŶ͘ ŵĂƩĞƌƐƌĞƋƵŝƌŝŶŐĂƩĞŶƟŽŶ͘DĞĞƟŶŐƐŽĨŽĂƌĚŽŵŵŝƩĞĞƐĂƌĞ ƐĐŚĞĚƵůĞĚƌĞŐƵůĂƌůLJĚƵƌŝŶŐƚŚĞLJĞĂƌ͘dŚĞŽĂƌĚŚĂƐĂƉŽůŝĐLJŽĨ Director independence and Conflict of Interest ƌŽƚĂƟŶŐŝƚƐŵĞĞƟŶŐƐďĞƚǁĞĞŶůŽĐĂƟŽŶƐǁŚĞƌĞƚŚĞ'ƌŽƵƉŚĂƐ ĂƐŝŐŶŝĮĐĂŶƚƉƌĞƐĞŶĐĞ͘KŶƚŚĞƐĞŽĐĐĂƐŝŽŶƐƚŚĞŽĂƌĚĂůƐŽǀŝƐŝƚƐ ŝƌĞĐƚŽƌƐĂƌĞĚĞƚĞƌŵŝŶĞĚƚŽďĞŝŶĚĞƉĞŶĚĞŶƚŝĨƚŚĞLJĂƌĞũƵĚŐĞĚ ĐŽŵƉĂŶLJŽƉĞƌĂƟŽŶƐĂŶĚŵĞĞƚƐǁŝƚŚůŽĐĂůŵĂŶĂŐĞŵĞŶƚĂŶĚŬĞLJ ƚŽďĞĨƌĞĞĨƌŽŵĂŶLJŵĂƚĞƌŝĂůŽƌŽƚŚĞƌďƵƐŝŶĞƐƐƌĞůĂƟŽŶƐŚŝƉǁŝƚŚ ĐƵƐƚŽŵĞƌƐ͘ ƚŚĞĂŶŬƚŚĂƚǁŽƵůĚĐŽŵƉƌŽŵŝƐĞƚŚĞŝƌŝŶĚĞƉĞŶĚĞŶĐĞ͘ dŚĞŚĂŝƌŵĂŶ͕ŝŶĐŽŶƐƵůƚĂƟŽŶǁŝƚŚƚŚĞŚŝĞĨ džĞĐƵƟǀĞKĸĐĞƌ͕ WƌŝŽƌƚŽĂƉƉŽŝŶƚŵĞŶƚŝƌĞĐƚŽƌƐĚĞƐŝŐŶĂƚĞĚĂƌĞƌĞƋƵŝƌĞĚƚŽƉƌŽǀŝĚĞ ĚĞƚĞƌŵŝŶĞƐŵĞĞƟŶŐĂŐĞŶĚĂƐ͘DĞĞƟŶŐƐƉƌŽǀŝĚĞƌĞŐƵůĂƌŽƉƉŽƌƚƵŶŝƟĞƐ ŝŶĨŽƌŵĂƟŽŶƚŽƚŚĞŽĂƌĚĨŽƌŝƚƚŽĂƐƐĞƐƐƚŚĞŝƌŝŶĚĞƉĞŶĚĞŶĐĞ͘ ĨŽƌƚŚĞŽĂƌĚƚŽĂƐƐĞƐƐ^W͛ƐŵĂŶĂŐĞŵĞŶƚŽĨĮŶĂŶĐŝĂů͕ƐƚƌĂƚĞŐŝĐ /ŶĂƐƐĞƐƐŝŶŐƚŚĞŝŶĚĞƉĞŶĚĞŶĐĞŽĨŝƌĞĐƚŽƌƐ͕ƚŚĞŽĂƌĚǁŝůůĐŽŶƐŝĚĞƌ ĂŶĚŵĂũŽƌƌŝƐŬĂƌĞĂƐ͘dŽŚĞůƉĞŶƐƵƌĞƚŚĂƚĂůůŝƌĞĐƚŽƌƐĂƌĞĂďůĞƚŽ ĂŶƵŵďĞƌŽĨĐƌŝƚĞƌŝĂŝŶĐůƵĚŝŶŐ͗ ĐŽŶƚƌŝďƵƚĞŵĞĂŶŝŶŐĨƵůůLJ͕ƉĂƉĞƌƐĂƌĞƉƌŽǀŝĚĞĚƚŽŽĂƌĚŵĞŵďĞƌƐ ŽŶĞǁĞĞŬŝŶĂĚǀĂŶĐĞŽĨƚŚĞŵĞĞƟŶŐ͘ƌŽĂĚƌĂŶŐŝŶŐĚŝƐĐƵƐƐŝŽŶ ͻ ƚŚĞŝƌĞĐƚŽƌŝƐŶŽƚĂŶĞdžĞĐƵƟǀĞŽĨƚŚĞďĂŶŬ͖ ŽŶĂůůĂŐĞŶĚĂŝƚĞŵƐŝƐĞŶĐŽƵƌĂŐĞĚ͕ǁŝƚŚŚĞĂůƚŚLJĚĞďĂƚĞƐĞĞŶĂƐ ͻ ƚŚĞŝƌĞĐƚŽƌŝƐŶŽƚĂƐƵďƐƚĂŶƟĂůƐŚĂƌĞŚŽůĚĞƌŽĨƚŚĞďĂŶŬŽƌ ǀŝƚĂůƚŽƚŚĞĚĞĐŝƐŝŽŶŵĂŬŝŶŐƉƌŽĐĞƐƐ͘ ŽƚŚĞƌǁŝƐĞĂƐƐŽĐŝĂƚĞĚĚŝƌĞĐƚůLJǁŝƚŚĂƐƵďƐƚĂŶƟĂůƐŚĂƌĞŚŽůĚĞƌ ŽĨƚŚĞďĂŶŬ͖ &ŝŶĂŶĐŝĂůEŽƚĞϮϳ͕ŝƌĞĐƚŽƌƐ͛ĂŶĚ džĞĐƵƟǀĞƌĞŵƵŶĞƌĂƟŽŶ͕ŽŶ ͻ ƚŚĞŝƌĞĐƚŽƌŚĂƐŶŽƚǁŝƚŚŝŶƚŚĞůĂƐƚƚŚƌĞĞLJĞĂƌƐďĞĞŶĂŵĂƚĞƌŝĂů ƉĂŐĞƐϳϭͲϳϯ͕ƉƌŽǀŝĚĞƐĂƩĞŶĚĂŶĐĞĚĞƚĂŝůƐŽĨŝƌĞĐƚŽƌƐĂƚŽĂƌĚ ĐŽŶƐƵůƚĂŶƚŽƌĂƉƌŝŶĐŝƉĂůŽĨĂŵĂƚĞƌŝĂůƉƌŽĨĞƐƐŝŽŶĂůĂĚǀŝƐĞƌƚŽ ŵĞĞƟŶŐƐĚƵƌŝŶŐϮϬϭϰ͘ ƚŚĞĂŶŬŽƌĂŐƌŽƵƉŵĞŵďĞƌ͕ŽƌĂŶĞŵƉůŽLJĞĞŵĂƚĞƌŝĂůůLJ ĂƐƐŽĐŝĂƚĞĚǁŝƚŚĂƐĞƌǀŝĐĞƉƌŽǀŝĚĞĚ͖ Review of Board Performance ͻ ƚŚĞŝƌĞĐƚŽƌŝƐŶŽƚĂŵĂƚĞƌŝĂůƐƵƉƉůŝĞƌƚŽ͕ŽƌĐƵƐƚŽŵĞƌŽĨƚŚĞ ĂŶŬŽƌŽƚŚĞƌŐƌŽƵƉŵĞŵďĞƌ͕ŽƌĂŵĂƚĞƌŝĂůĐŽŶƐƵůƚĂŶƚƚŽ dŚĞZĞŵƵŶĞƌĂƟŽŶĂŶĚEŽŵŝŶĂƟŽŶŽŵŵŝƩĞĞƌĞǀŝĞǁƐƚŚĞƉƌŽĐĞƐƐĞƐ ƚŚĞĂŶŬŽƌŽƚŚĞƌŐƌŽƵƉŵĞŵďĞƌ͕ŽƌĂŶĞŵƉůŽLJĞĞŵĂƚĞƌŝĂůůLJ ďLJǁŚŝĐŚƚŚĞŽĂƌĚƌĞŐƵůĂƌůLJĂƐƐĞƐƐĞƐŝƚƐŽǁŶƉĞƌĨŽƌŵĂŶĐĞŝŶ ĂƐƐŽĐŝĂƚĞĚǁŝƚŚĂŵĂƚĞƌŝĂůƐƵƉƉůŝĞƌŽƌĐƵƐƚŽŵĞƌ͖ ŵĞĞƟŶŐŝƚƐƌĞƐƉŽŶƐŝďŝůŝƟĞƐ͘/ƚŝƐŝŶƚĞŶĚĞĚƚŽĞdžƚĞŶĚƚŚĞĂƐƐĞƐƐŵĞŶƚ ͻ ƚŚĞŝƌĞĐƚŽƌŚĂƐŶŽŵĂƚĞƌŝĂůĐŽŶƚƌĂĐƚƵĂůƌĞůĂƟŽŶƐŚŝƉǁŝƚŚ ŽĨƚŚĞŽĂƌĚĂƐĂǁŚŽůĞƚŽŝŶĐůƵĚĞĂŶĂƐƐĞƐƐŵĞŶƚŽĨƚŚĞĐŽŶƚƌŝďƵƟŽŶ ƚŚĞĂŶŬŽƌŽƚŚĞƌŐƌŽƵƉŵĞŵďĞƌŽƚŚĞƌƚŚĂŶĂƐĂŝƌĞĐƚŽƌ ŽĨĞĂĐŚŝŶĚŝǀŝĚƵĂůŝƌĞĐƚŽƌ͘dŚĞŽĂƌĚŝƐĐŽŐŶŝƐĂŶƚŽĨƚŚĞŶĞĞĚ ŽĨƚŚĞďĂŶŬ͖ ƚŽĐŽŶƟŶƵĂůůLJŝĚĞŶƟĨLJĂƌĞĂƐĨŽƌŝŵƉƌŽǀĞŵĞŶƚ͖ƚŽĞŶƐƵƌĞƚŚĂƚŝƚ ͻ ƚŚĞŝƌĞĐƚŽƌŝƐĨƌĞĞĨƌŽŵĂŶLJŝŶƚĞƌĞƐƚĂŶĚĂŶLJďƵƐŝŶĞƐƐŽƌ ŵĞĞƚƐƚŚĞŚŝŐŚĞƐƚƐƚĂŶĚĂƌĚƐŽĨĐŽƌƉŽƌĂƚĞŐŽǀĞƌŶĂŶĐĞ͖ĂŶĚĨŽƌ ŽƚŚĞƌƌĞůĂƟŽŶƐŚŝƉǁŚŝĐŚĐŽƵůĚ͕ŽƌĐŽƵůĚƌĞĂƐŽŶĂďůLJďĞ ƚŚĞŽĂƌĚĂŶĚĞĂĐŚŝƌĞĐƚŽƌƚŽŵĂŬĞĂŶĂƉƉƌŽƉƌŝĂƚĞĐŽŶƚƌŝďƵƟŽŶ ƉĞƌĐĞŝǀĞĚƚŽ͕ŵĂƚĞƌŝĂůůLJŝŶƚĞƌĨĞƌĞǁŝƚŚƚŚĞŝƌĞĐƚŽƌ͛ƐĂďŝůŝƚLJ ƚŽƚŚĞ'ƌŽƵƉ͛ƐŽďũĞĐƟǀĞŽĨƉƌŽǀŝĚŝŶŐǀĂůƵĞƚŽĂůůŝƚƐƐƚĂŬĞŚŽůĚĞƌƐ͘ ƚŽĂĐƚŝŶƚŚĞďĞƐƚŝŶƚĞƌĞƐƚƐŽĨƚŚĞĂŶŬ͘ dŚĞƉĞƌĨŽƌŵĂŶĐĞƌĞǀŝĞǁŝƐĐŽŶĚƵĐƚĞĚĂŶŶƵĂůůLJ͕ĂŶĚŵĂLJŝŶǀŽůǀĞ ĂƐƐŝƐƚĂŶĐĞĨƌŽŵĞdžƚĞƌŶĂůĐŽŶƐƵůƚĂŶƚƐ͘ dŚŝƐŝŶĨŽƌŵĂƟŽŶŝƐĂƐƐĞƐƐĞĚďLJƚŚĞŽĂƌĚƚŽĚĞƚĞƌŵŝŶĞǁŚĞƚŚĞƌ ŽŶďĂůĂŶĐĞƚŚĞƌĞůĂƟŽŶƐŚŝƉĐŽƵůĚ͕ŽƌĐŽƵůĚƌĞĂƐŽŶĂďůLJďĞ Board Access to Information and Advice ƉĞƌĐĞŝǀĞĚƚŽ͕ŵĂƚĞƌŝĂůůLJŝŶƚĞƌĨĞƌĞǁŝƚŚƚŚĞĞdžĞƌĐŝƐĞŽĨƚŚĞŝƌĞĐƚŽƌ͛Ɛ ƌĞƐƉŽŶƐŝďŝůŝƟĞƐ͘DĂƚĞƌŝĂůŝƚLJŝƐĂƐƐĞƐƐĞĚŽŶĂĐĂƐĞͲďLJͲĐĂƐĞďĂƐŝƐ͘ ůůŝƌĞĐƚŽƌƐŚĂǀĞƵŶƌĞƐƚƌŝĐƚĞĚĂĐĐĞƐƐƚŽĐŽŵƉĂŶLJƌĞĐŽƌĚƐĂŶĚ ƐŶŽƚĞĚĞĂƌůŝĞƌ͕ƚŚĞŽĂƌĚŝƐĐŽŐŶŝƐĂŶƚŽĨƚŚĞŶĞĞĚƚŽĂǀŽŝĚ ŝŶĨŽƌŵĂƟŽŶĂŶĚƌĞĐĞŝǀĞƌĞŐƵůĂƌĚĞƚĂŝůĞĚĮŶĂŶĐŝĂůĂŶĚŽƉĞƌĂƟŽŶĂů ĐŽŶŇŝĐƚƐŽĨŝŶƚĞƌĞƐƚĂŶĚŝƚŚĂƐŝŶƉůĂĐĞƉŽůŝĐŝĞƐĂŶĚƉƌŽĐĞĚƵƌĞƐ ƌĞƉŽƌƚƐƚŽĞŶĂďůĞƚŚĞŵƚŽĐĂƌƌLJŽƵƚƚŚĞŝƌĚƵƟĞƐ͘dŚĞ'ĞŶĞƌĂů ĨŽƌƚŚĞƌĞƉŽƌƟŶŐŽĨĂŶLJŵĂƩĞƌ͕ǁŚŝĐŚŵĂLJŐŝǀĞƌŝƐĞƚŽĂĐŽŶŇŝĐƚ DĂŶĂŐĞƌƐŵĂŬĞƌĞŐƵůĂƌƉƌĞƐĞŶƚĂƟŽŶƐƚŽƚŚĞŽĂƌĚŽŶƚŚĞŝƌĂƌĞĂƐ ďĞƚǁĞĞŶƚŚĞŝŶƚĞƌĞƐƚƐŽĨĂŝƌĞĐƚŽƌĂŶĚƚŚŽƐĞŽĨƚŚĞ'ƌŽƵƉ͘dŚĞƐĞ ŽĨƌĞƐƉŽŶƐŝďŝůŝƚLJ͘dŚĞŚĂŝƌŵĂŶĂŶĚƚŚĞŽƚŚĞƌEŽŶͲĞdžĞĐƵƟǀĞ ĂƌƌĂŶŐĞŵĞŶƚƐĂƌĞĚĞƐŝŐŶĞĚƚŽĞŶƐƵƌĞƚŚĂƚƚŚĞŝŶĚĞƉĞŶĚĞŶĐĞĂŶĚ ŝƌĞĐƚŽƌƐŚĂǀĞƚŚĞŽƉƉŽƌƚƵŶŝƚLJƚŽŵĞĞƚǁŝƚŚƚŚĞŚŝĞĨ džĞĐƵƟǀĞ ŝŶƚĞŐƌŝƚLJŽĨƚŚĞŽĂƌĚĂƌĞŵĂŝŶƚĂŝŶĞĚ͘ KĸĐĞƌĂŶĚƚŚĞ'ĞŶĞƌĂůDĂŶĂŐĞƌƐĨŽƌĨƵƌƚŚĞƌĐŽŶƐƵůƚĂƟŽŶ͕ĂŶĚ ƚŽĚŝƐĐƵƐƐŝƐƐƵĞƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞĨƵůĮůŵĞŶƚŽĨƚŚĞŝƌƌŽůĞƐĂƐ dŚĞĂŶŬŽĨWĂƉƵĂEĞǁ'ƵŝŶĞĂƐĞƚƐƉƌƵĚĞŶƟĂůůŝŵŝƚƐŽŶůŽĂŶƐ ŝƌĞĐƚŽƌƐ͘ ƚŽ͚ĂƐƐŽĐŝĂƚĞĚƉĞƌƐŽŶƐ͛͗ĂŶŬ^ŽƵƚŚWĂĐŝĮĐĨƵůůLJĐŽŵƉůŝĞƐǁŝƚŚ ƚŚĞƐĞƌĞƋƵŝƌĞŵĞŶƚƐ͘ dŚĞŽĂƌĚƌĞĐŽŐŶŝƐĞƐƚŚĂƚŝŶĐĞƌƚĂŝŶĐŝƌĐƵŵƐƚĂŶĐĞƐŝŶĚŝǀŝĚƵĂů ŝƌĞĐƚŽƌƐŵĂLJŶĞĞĚƚŽƐĞĞŬŝŶĚĞƉĞŶĚĞŶƚƉƌŽĨĞƐƐŝŽŶĂůĂĚǀŝĐĞ͕Ăƚ &ŝŶĂŶĐŝĂůEŽƚĞϯϬ͕ZĞůĂƚĞĚWĂƌƚLJdƌĂŶƐĂĐƟŽŶƐĂƌĞƐƵŵŵĂƌŝƐĞĚŝŶ ƚŚĞĞdžƉĞŶƐĞŽĨƚŚĞĐŽŵƉĂŶLJ͕ŽŶŵĂƩĞƌƐĂƌŝƐŝŶŐŝŶƚŚĞĐŽƵƌƐĞŽĨ ƉĂŐĞϳϱ͘ŝƌĞĐƚŽƌ͛Ɛ/ŶĨŽƌŵĂƟŽŶŽŶƉĂŐĞϵϯƉƌŽǀŝĚĞƐĚĞƚĂŝůƐŽĨ ƚŚĞŝƌĚƵƟĞƐ͘ŶLJĂĚǀŝĐĞƐŽƌĞĐĞŝǀĞĚŝƐŵĂĚĞĂǀĂŝůĂďůĞƚŽŽƚŚĞƌ ƚŚĞŝƌĞĐƚŽƌ͛Ɛ/ŶƚĞƌĞƐƚƐ͘ ŝƌĞĐƚŽƌƐ͘ŶLJŝƌĞĐƚŽƌƐĞĞŬŝŶŐƐƵĐŚĂĚǀŝĐĞŝƐƌĞƋƵŝƌĞĚƚŽŐŝǀĞ ƉƌŝŽƌŶŽƟĐĞƚŽƚŚĞŚĂŝƌŵĂŶŽĨŚŝƐŽƌŚĞƌŝŶƚĞŶƟŽŶƚŽƐĞĞŬ ŝŶĚĞƉĞŶĚĞŶƚƉƌŽĨĞƐƐŝŽŶĂůĂĚǀŝĐĞ͘ BSP Annual Report 2014 27 &25325$7(*29(51$1&( ƵƐƚŽŵĞƌŵĞĞƚƐǁŝƚŚWE''ĂŵĞƐŵďĂƐƐĂĚŽƌ^ĐŽƩWƌŝŶĐĞ͘ dŚĞWE''ĂŵĞƐǁĂƐŚĞůĚŝŶEŽǀĞŵďĞƌϮϬϭϰ͘ BOARD COMMITTEES Ϯ&ƌĞĚĂdĂůĂŽĂƩĞŶĚƐĂƐĂŶŽďƐĞƌǀĞƌĚŝƌĞĐƚŽƌ͘ΎŽĂƌĚŵĞŵďĞƌƐ ǁŚŽĂƩĞŶĚƚŚĞZŵĞĞƟŶŐƚŽĚŝƐĐƵƐƐƚŚĞLJĞĂƌĞŶĚĂŶĚŚĂůĨ LJĞĂƌĂĐĐŽƵŶƚƐ͘ Board Committees and Membership dŚĞŽĂƌĚŚĂƐĞƐƚĂďůŝƐŚĞĚƚǁŽĐŽŵŵŝƩĞĞƐǁŚŽƐĞĨƵŶĐƟŽŶƐ Committee Charters ĂŶĚƉŽǁĞƌƐĂƌĞŐŽǀĞƌŶĞĚďLJƚŚĞŝƌƌĞƐƉĞĐƟǀĞĐŚĂƌƚĞƌƐ͘dŚĞƐĞ ĐŽŵŵŝƩĞĞƐĂƌĞƚŚĞƵĚŝƚZŝƐŬĂŶĚŽŵƉůŝĂŶĐĞŽŵŵŝƩĞĞ͕ĂŶĚ dŚĞŽŵŵŝƩĞĞŚĂƌƚĞƌƐĂƌĞĂǀĂŝůĂďůĞŝŶƚŚĞƐŚĂƌĞŚŽůĚĞƌƐ ƚŚĞZĞŵƵŶĞƌĂƟŽŶĂŶĚEŽŵŝŶĂƟŽŶŽŵŵŝƩĞĞ͘DĞŵďĞƌƐŚŝƉŽĨ ŝŶĨŽƌŵĂƟŽŶƐĞĐƟŽŶŽĨƚŚĞ^WǁĞďƐŝƚĞǁǁǁ͘ďƐƉ͘ĐŽŵ͘ƉŐ͘ ƚŚĞĐŽŵŵŝƩĞĞƐĂŶĚĂƌĞĐŽƌĚŽĨĂƩĞŶĚĂŶĐĞĂƚĐŽŵŵŝƩĞĞŵĞĞƟŶŐƐ ĚƵƌŝŶŐƚŚĞLJĞĂƌŝƐĚĞƚĂŝůĞĚŝŶƚĂďůĞďĞůŽǁ͘ZĞŵƵŶĞƌĂƟŽŶĚĞƚĂŝůƐ Committee Structure ĂƌĞƉƌŽǀŝĚĞĚŝŶ&ŝŶĂŶĐŝĂůEŽƚĞϮϳŽŶƉĂŐĞϳϮ͘ ŽŵŵŝƩĞĞŵĞŵďĞƌƐĂƌĞĐŚŽƐĞŶĨŽƌƚŚĞƐŬŝůůƐ͕ĞdžƉĞƌŝĞŶĐĞĂŶĚ DĞŵďĞƌƐŚŝƉŽĨŽĂƌĚŽŵŵŝƩĞĞƐĂƐĂƚϯϭͬϭϮͬϮϬϭϰ͗ ŽƚŚĞƌƋƵĂůŝƟĞƐƚŚĞLJďƌŝŶŐƚŽƚŚĞĐŽŵŵŝƩĞĞ͘ƚƚŚĞŶĞdžƚŽĂƌĚ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ------ŵĞĞƟŶŐĨŽůůŽǁŝŶŐĞĂĐŚĐŽŵŵŝƩĞĞŵĞĞƟŶŐ͕ƚŚĞŽĂƌĚŝƐŐŝǀĞŶĂ ŽĂƌĚƵĚŝƚZŝƐŬΘ ZĞŵƵŶĞƌĂƟŽŶΘ ƌĞƉŽƌƚďLJƚŚĞŚĂŝƌŵĂŶŽĨƚŚĞƌĞƐƉĞĐƟǀĞĐŽŵŵŝƩĞĞĂŶĚŵŝŶƵƚĞƐ ŽŵƉůŝĂŶĐĞŽŵŵŝƩĞĞ EŽŵŝŶĂƟŽŶ ŽĨƚŚĞŵĞĞƟŶŐĂƌĞƚĂďůĞĚ͘ ŽŵŵŝƩĞĞ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ dŚĞƵĚŝƚZŝƐŬĂŶĚŽŵƉůŝĂŶĐĞŽŵŵŝƩĞĞŝƐĐŽŵƉƌŝƐĞĚŽĨ 'ĞŽīZŽďď ϲͬϲŚĂŝƌ ƚŚƌĞĞEŽŶͲĞdžĞĐƵƟǀĞŝƌĞĐƚŽƌƐ͕ĂŵĂũŽƌŝƚLJŽĨǁŚŽŵƐŚŽƵůĚďĞ ^ŝƌEĂŐŽƌĂŽŐĂŶ ϰͬϲ ŝŶĚĞƉĞŶĚĞŶƚ͕ĂŶĚǁŚŽĂƌĞĚƵůLJĂƉƉŽŝŶƚĞĚďLJƚŚĞŽĂƌĚ͘dŚĞ 'ĞƌĞĂŽƉŝ ϰͬϲ ŚĂŝƌŵĂŶŽĨƚŚĞƵĚŝƚZŝƐŬĂŶĚŽŵƉůŝĂŶĐĞŽŵŵŝƩĞĞŵƵƐƚďĞ ƌƚŚƵƌ^Ăŵϭ ϲͬϲ ŽŶĞŽĨƚŚĞŝŶĚĞƉĞŶĚĞŶƚŝƌĞĐƚŽƌƐ͕ŽƚŚĞƌƚŚĂŶƚŚĞŚĂŝƌŵĂŶŽĨ &ƌĞĚĂdĂůĂŽϮ ϱͬϲ ƚŚĞŽĂƌĚ͘ ĂĐŚŵĞŵďĞƌƐŚŽƵůĚďĞĐĂƉĂďůĞŽĨŵĂŬŝŶŐĂǀĂůƵĂďůĞ <ŽƐƚĂƐŽŶƐƚĂŶƟŶŽƵ ϮͬϮΎ ĐŽŶƚƌŝďƵƟŽŶƚŽƚŚĞĐŽŵŵŝƩĞĞĂŶĚŵĞŵďĞƌƐŚŝƉŝƐƌĞǀŝĞǁĞĚ dŽŵ&ŽdžϮͬϮΎŚĂŝƌϯͬϯ ĂŶŶƵĂůůLJďLJƚŚĞ^WŽĂƌĚ͘ /ůĂdĞŵƵ ϮͬϮΎ ϯͬϯ dŚĞZĞŵƵŶĞƌĂƟŽŶĂŶĚEŽŵŝŶĂƟŽŶŽŵŵŝƩĞĞĐŽŵƉƌŝƐĞƐ >LJůĞWƌŽĐƚĞƌ ϮͬϮΎ ϯͬϯ ƚŚƌĞĞEŽŶͲĞdžĞĐƵƟǀĞŝƌĞĐƚŽƌƐ͕ƚŚĞŵĂũŽƌŝƚLJŽĨǁŚŽŵƐŚŽƵůĚďĞ ƌŶĞƐƚ'ĂŶŐůŽī ϲͬϲ ŝŶĚĞƉĞŶĚĞŶƚ͕ĂŶĚǁŚŽĂƌĞĚƵůLJĂƉƉŽŝŶƚĞĚďLJƚŚĞŽĂƌĚ͘ ƵŐƵƐƟŶĞDĂŶŽ ϬͬϬ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ dŚĞŚĂŝƌŵĂŶŽĨƚŚĞZĞŵƵŶĞƌĂƟŽŶĂŶĚEŽŵŝŶĂƟŽŶŽŵŵŝƩĞĞ ϭ ƌƚŚƵƌ^ĂŵŝƐĂŶŽŶͲĞdžĞĐƵƟǀĞ͕ŶŽŶͲĚŝƌĞĐƚŽƌ͕ĂƉƉŽŝŶƚĞĚďLJƚŚĞ ŵƵƐƚďĞŽŶĞŽĨƚŚĞŝŶĚĞƉĞŶĚĞŶƚŝƌĞĐƚŽƌƐ͕ŽƚŚĞƌƚŚĂŶƚŚĞŚĂŝƌŵĂŶ ďŽĂƌĚĨŽƌďŽĂƌĚĚĞǀĞůŽƉŵĞŶƚƉƵƌƉŽƐĞƐ͘ ŽĨƚŚĞŽĂƌĚ͘ 28 BSP Annual Report 2014 &25325$7(*29(51$1&( ĂĐŚŵĞŵďĞƌƐŚŽƵůĚďĞĐĂƉĂďůĞŽĨŵĂŬŝŶŐĂǀĂůƵĂďůĞĐŽŶƚƌŝďƵƟŽŶ External Audit ƚŽƚŚĞĐŽŵŵŝƩĞĞ͕ĂŶĚŵĞŵďĞƌƐŚŝƉŝƐƌĞǀŝĞǁĞĚĂŶŶƵĂůůLJďLJƚŚĞ ^WŽĂƌĚ͘ dŚĞ ƵĚŝƚ ZŝƐŬ ĂŶĚ ŽŵƉůŝĂŶĐĞ ŽŵŵŝƩĞĞ ŝƐ ƌĞƐƉŽŶƐŝďůĞ ĨŽƌ ŵĂŬŝŶŐ ƌĞĐŽŵŵĞŶĚĂƟŽŶƐ ƚŽ ƚŚĞ ŽĂƌĚ ŽŶ ĂƉƉŽŝŶƚŵĞŶƚ ĂŶĚ ƌĞǀŝĞǁŽĨƚŚĞƉĞƌĨŽƌŵĂŶĐĞŽĨĐŽŵŵŝƩĞĞŵĞŵďĞƌƐǁŝůůĨŽƌŵ ƚĞƌŵƐ ŽĨ ĞŶŐĂŐĞŵĞŶƚ ŽĨ ^W ĞdžƚĞƌŶĂů ĂƵĚŝƚŽƌƐ͘ dŚĞ ƐĞůĞĐƟŽŶ ƉĂƌƚŽĨƚŚĞŽĂƌĚ͛ƐƉĞƌĨŽƌŵĂŶĐĞƌĞǀŝĞǁ͘ ŝƐŵĂĚĞĨƌŽŵĂƉƉƌŽƉƌŝĂƚĞůLJƋƵĂůŝĮĞĚĐŽŵƉĂŶŝĞƐŝŶĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚŽĂƌĚƉŽůŝĐLJ͘ Board Audit Risk & Compliance Committee dŚĞŽĂƌĚƐƵďŵŝƚƐƚŚĞŶĂŵĞŽĨƚŚĞƌĞĐŽŵŵĞŶĚĞĚĂƉƉŽŝŶƚĞĞƚŽ dŚĞƵĚŝƚZŝƐŬĂŶĚŽŵƉůŝĂŶĐĞŽŵŵŝƩĞĞŝƐĚĞůĞŐĂƚĞĚďLJƚŚĞ ƐŚĂƌĞŚŽůĚĞƌƐĨŽƌƌĂƟĮĐĂƟŽŶ͘/ŶůŝŶĞǁŝƚŚƚŚĞƉŽůŝĐLJŽĨƚŚĞĂŶŬ ŽĂƌĚǁŝƚŚƌĞƐƉŽŶƐŝďŝůŝƚLJĨŽƌƌĞǀŝĞǁŝŶŐĂŶĚŵŽŶŝƚŽƌŝŶŐƚŚĞ͗ ŽĨWĂƉƵĂEĞǁ'ƵŝŶĞĂ͕ƚŚĞƐŝŐŶŝŶŐƉĂƌƚŶĞƌŝŶƚŚĞĞdžƚĞƌŶĂůĂƵĚŝƚ ĮƌŵŵƵƐƚďĞƌŽƚĂƚĞĚĂƚůĞĂƐƚĞǀĞƌLJƚŚƌĞĞLJĞĂƌƐ͘ ͻ ŝŶƚĞŐƌŝƚLJ ŽĨ ƚŚĞ ĮŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ĂŶĚ ƚŚĞ ĮŶĂŶĐŝĂů ƌĞƉŽƌƟŶŐĂŶĚĂƵĚŝƚƉƌŽĐĞƐƐ͖ dŚĞĐŽŵŵŝƩĞĞƌĞǀŝĞǁƐĂŶŶƵĂůůLJƚŚĞƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚĞĞdžƚĞƌŶĂů ͻ ĞdžƚĞƌŶĂůĂƵĚŝƚŽƌ͛ƐƋƵĂůŝĮĐĂƟŽŶƐ͕ƉĞƌĨŽƌŵĂŶĐĞĂŶĚ ĂƵĚŝƚŽƌƐĂŶĚŵĂŬĞƐƌĞĐŽŵŵĞŶĚĂƟŽŶƐƚŽƚŚĞŽĂƌĚƌĞŐĂƌĚŝŶŐ ŝŶĚĞƉĞŶĚĞŶĐĞ͖ ƚŚĞĐŽŶƟŶƵĂƟŽŶŽƌŽƚŚĞƌǁŝƐĞŽĨƚŚĞŝƌĂƉƉŽŝŶƚŵĞŶƚ͕ĐŽŶƐŝƐƚĞŶƚ ͻ ƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚĞŝŶƚĞƌŶĂůĂƵĚŝƚĨƵŶĐƟŽŶŽĨƚŚĞďĂŶŬ͖ ǁŝƚŚƚŚĞĂŶŬŽĨWĂƉƵĂEĞǁ'ƵŝŶĞĂ͛ƐWƌƵĚĞŶƟĂů^ƚĂŶĚĂƌĚEŽ͘ ͻ ƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚĞŽƉĞƌĂƟŽŶĂůƌŝƐŬĨƵŶĐƟŽŶŽĨƚŚĞďĂŶŬ͖ ϳͬϮϬϬϱͲ džƚĞƌŶĂůƵĚŝƚŽƌƐ͕ǁŚŝůĞĞŶƐƵƌŝŶŐƚŚĞŝƌŝŶĚĞƉĞŶĚĞŶĐĞ ͻ ƐLJƐƚĞŵƐŽĨŝŶƚĞƌŶĂůĐŽŶƚƌŽůĂŶĚŵĂŶĂŐĞŵĞŶƚŽĨĂůůƌŝƐŬƐ͖ ŝƐŝŶůŝŶĞǁŝƚŚŽĂƌĚƉŽůŝĐLJ͘ ͻ ƐLJƐƚĞŵƐĨŽƌĞŶƐƵƌŝŶŐŽƉĞƌĂƟŽŶĂůĞĸĐŝĞŶĐLJĂŶĚĐŽƐƚ ĐŽŶƚƌŽů͖ dŚĞƌĞŝƐĂƌĞǀŝĞǁŽĨƚŚĞĞdžƚĞƌŶĂůĂƵĚŝƚŽƌ͛ƐƉƌŽƉŽƐĞĚĂƵĚŝƚƐĐŽƉĞ ͻ ƐLJƐƚĞŵƐĨŽƌĂƉƉƌŽǀĂůĂŶĚŵŽŶŝƚŽƌŝŶŐŽĨĞdžƉĞŶĚŝƚƵƌĞ ĂŶĚĂƉƉƌŽĂĐŚ͕ƚŽĞŶƐƵƌĞƚŚĞƌĞĂƌĞŶŽƵŶũƵƐƟĮĞĚƌĞƐƚƌŝĐƟŽŶƐ͘ ŝŶĐůƵĚŝŶŐĐĂƉŝƚĂůĞdžƉĞŶĚŝƚƵƌĞ͖ DĞĞƟŶŐƐĂƌĞŚĞůĚƐĞƉĂƌĂƚĞůLJǁŝƚŚƚŚĞĞdžƚĞƌŶĂůĂƵĚŝƚŽƌƐƚŽĚŝƐĐƵƐƐ ͻ ƉƌŽĐĞƐƐĞƐ ĨŽƌ ŵŽŶŝƚŽƌŝŶŐ ĐŽŵƉůŝĂŶĐĞ ǁŝƚŚ ůĂǁƐ ĂŶĚ ĂŶLJŵĂƩĞƌƐƚŚĂƚƚŚĞĐŽŵŵŝƩĞĞŽƌƚŚĞĞdžƚĞƌŶĂůĂƵĚŝƚŽƌƐďĞůŝĞǀĞ ƌĞŐƵůĂƟŽŶƐ;ďŽƚŚŝŶWĂƉƵĂEĞǁ'ƵŝŶĞĂĂŶĚŽǀĞƌƐĞĂƐͿ͖ ƐŚŽƵůĚďĞĚŝƐĐƵƐƐĞĚƉƌŝǀĂƚĞůLJ͘dŚĞĞdžƚĞƌŶĂůĂƵĚŝƚŽƌĂƩĞŶĚƐ ͻ ŝŵƉůĞŵĞŶƚĂƟŽŶ ŽĨ ŽĂƌĚ ĚĞĐŝƐŝŽŶƐ ďLJ ŵĂŶĂŐĞŵĞŶƚ ĂŶĚ ŵĞĞƟŶŐƐŽĨƚŚĞƵĚŝƚZŝƐŬĂŶĚŽŵƉůŝĂŶĐĞŽŵŵŝƩĞĞĂƚǁŚŝĐŚ ŵĂŬŝŶŐƌĞĐŽŵŵĞŶĚĂƟŽŶƐƚŽƚŚĞŽĂƌĚĨŽƌƚŚĞĂƉƉŽŝŶƚŵĞŶƚ ƚŚĞĞdžƚĞƌŶĂůĂƵĚŝƚĂŶĚŚĂůĨLJĞĂƌůLJƌĞǀŝĞǁĂƌĞĂŐĞŶĚĂŝƚĞŵƐ͘ ŽĨƚŚĞĞdžƚĞƌŶĂůĂƵĚŝƚŽƌ͖ ͻ ĂŶŶƵĂůŝŶƚĞƌŶĂůĂƵĚŝƚƉůĂŶĂŶĚŝƚƐŽŶŐŽŝŶŐƌĞǀŝĞǁ͘ dŚĞĐŽŵŵŝƩĞĞĞŶƐƵƌĞƐƚŚĂƚƐŝŐŶŝĮĐĂŶƚĮŶĚŝŶŐƐĂŶĚƌĞĐŽŵŵĞŶĚĂƟŽŶƐ ŵĂĚĞďLJƚŚĞĞdžƚĞƌŶĂůĂƵĚŝƚŽƌƐĂƌĞƌĞĐĞŝǀĞĚĂŶĚĚŝƐĐƵƐƐĞĚƉƌŽŵƉƚůLJ͕ /ŶƚŚĞĐŽƵƌƐĞŽĨĨƵůĮůůŝŶŐŝƚƐŵĂŶĚĂƚĞ͕ƚŚĞĐŽŵŵŝƩĞĞŵĞĞƚƐǁŝƚŚ ĂŶĚƚŚĂƚŵĂŶĂŐĞŵĞŶƚƌĞƐƉŽŶĚƐƚŽƌĞĐŽŵŵĞŶĚĂƟŽŶƐďLJƚŚĞ ďŽƚŚƚŚĞŝŶƚĞƌŶĂůĂŶĚĞdžƚĞƌŶĂůĂƵĚŝƚŽƌƐǁŝƚŚŽƵƚŵĂŶĂŐĞŵĞŶƚ ĞdžƚĞƌŶĂůĂƵĚŝƚŽƌƐŝŶĂƟŵĞůLJŵĂŶŶĞƌ͘ ƉƌĞƐĞŶƚ͘ dŚĞĚƵůLJĂƉƉŽŝŶƚĞĚĞdžƚĞƌŶĂůĂƵĚŝƚĮƌŵŵĂLJŶŽƚďĞĞŶŐĂŐĞĚďLJ Annual Financial Statements ƚŚĞ'ƌŽƵƉƚŽƉƌŽǀŝĚĞƐƉĞĐŝĂůŝƐƚĐŽŶƐƵůƚĂŶĐLJƐĞƌǀŝĐĞƐƌĞůĂƟŶŐƚŽ ĮŶĂŶĐŝĂů͕ƐƚƌĂƚĞŐŝĐĂŶĚͬŽƌƚĂdžĂƟŽŶŵĂƩĞƌƐ͘ dŚĞƵĚŝƚZŝƐŬĂŶĚŽŵƉůŝĂŶĐĞŽŵŵŝƩĞĞƌĞǀŝĞǁƐƚŚĞĂŶŶƵĂů dŚĞĞdžƚĞƌŶĂůĂƵĚŝƚŽƌŝƐŝŶǀŝƚĞĚƚŽƚŚĞŶŶƵĂů'ĞŶĞƌĂůDĞĞƟŶŐ ĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐƚŽĚĞƚĞƌŵŝŶĞǁŚĞƚŚĞƌƚŚĞLJĂƌĞĐŽŵƉůĞƚĞĂŶĚ ŽĨƐŚĂƌĞŚŽůĚĞƌƐĂŶĚŝƐĂǀĂŝůĂďůĞƚŽĂŶƐǁĞƌƌĞůĞǀĂŶƚƋƵĞƐƟŽŶƐ ĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞŝŶĨŽƌŵĂƟŽŶŬŶŽǁŶƚŽĐŽŵŵŝƩĞĞŵĞŵďĞƌƐ ĨƌŽŵƐŚĂƌĞŚŽůĚĞƌƐ͘ ĂŶĚƚŽĂƐƐĞƐƐǁŚĞƚŚĞƌƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐƌĞŇĞĐƚĂƉƉƌŽƉƌŝĂƚĞ ĂĐĐŽƵŶƟŶŐƉƌŝŶĐŝƉůĞƐ͘/ŶƉĂƌƟĐƵůĂƌŝƚ͗ dŚĞĂŶŬŽĨWĂƉƵĂEĞǁ'ƵŝŶĞĂWƌƵĚĞŶƟĂů^ƚĂŶĚĂƌĚƐƉƌŽǀŝĚĞĨŽƌ ĂƚƌŝͲƉĂƌƟƚĞŵĞĞƟŶŐďĞƚǁĞĞŶWE'͕ƚŚĞĞdžƚĞƌŶĂůĂƵĚŝƚŽƌƐ͕ĂŶĚ ͻ ƉĂLJƐĂƩĞŶƟŽŶƚŽĐŽŵƉůĞdžĂŶĚͬŽƌƵŶƵƐƵĂůƚƌĂŶƐĂĐƟŽŶƐ͖ ƚŚĞĂŶŬ͕ŝĨƌĞƋƵŝƌĞĚ͘ ͻ ĨŽĐƵƐĞƐŽŶũƵĚŐŵĞŶƚĂůĂƌĞĂƐ͕ĨŽƌĞdžĂŵƉůĞƚŚŽƐĞŝŶǀŽůǀŝŶŐ ǀĂůƵĂƟŽŶŽĨĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐ͖ƉƌŽǀŝƐŝŽŶƐ͖ůŝƟŐĂƟŽŶƌĞƐĞƌǀĞƐ͖ ĂŶĚŽƚŚĞƌĐŽŵŵŝƚŵĞŶƚƐĂŶĚĐŽŶƟŶŐĞŶĐŝĞƐ͖ Internal Audit ͻ ŵĞĞƚƐǁŝƚŚŵĂŶĂŐĞŵĞŶƚĂŶĚƚŚĞĞdžƚĞƌŶĂůĂƵĚŝƚŽƌƐƚŽƌĞǀŝĞǁ ƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂŶĚƚŚĞƌĞƐƵůƚƐŽĨƚŚĞĂƵĚŝƚ͖ dŚĞƵĚŝƚZŝƐŬĂŶĚŽŵƉůŝĂŶĐĞŽŵŵŝƩĞĞĂƉƉƌŽǀĞƐ͕ŽŶƚŚĞ ͻ ƌĞǀŝĞǁƐƚŚĞŽƚŚĞƌƐĞĐƟŽŶƐŽĨƚŚĞŶŶƵĂůZĞƉŽƌƚďĞĨŽƌĞŝƚƐ ƌĞĐŽŵŵĞŶĚĂƟŽŶŽĨŵĂŶĂŐĞŵĞŶƚ͕ƚŚĞĂƉƉŽŝŶƚŵĞŶƚŽĨ,ĞĂĚ ƌĞůĞĂƐĞĂŶĚĐŽŶƐŝĚĞƌƐǁŚĞƚŚĞƌƚŚĞŝŶĨŽƌŵĂƟŽŶŝƐƵŶĚĞƌƐƚĂŶĚĂďůĞ ŽĨ/ŶƚĞƌŶĂůƵĚŝƚ͘dŚĞĐŽŵŵŝƩĞĞŵĞĞƚƐƌĞŐƵůĂƌůLJǁŝƚŚ,ĞĂĚŽĨ ĂŶĚĐŽŶƐŝƐƚĞŶƚǁŝƚŚŵĞŵďĞƌƐ͛ŬŶŽǁůĞĚŐĞĂďŽƵƚƚŚĞďĂŶŬ /ŶƚĞƌŶĂůƵĚŝƚ͘ ĂŶĚŝƚƐŽƉĞƌĂƟŽŶƐ͖ ͻ ƐĂƟƐĮĞƐŝƚƐĞůĨĂƐƚŽƚŚĞĂĐĐƵƌĂĐLJŽĨƚŚĞĮŶĂŶĐŝĂůĂĐĐŽƵŶƚƐ͕ ZĞǀŝĞǁƐĂƌĞƵŶĚĞƌƚĂŬĞŶŽĨƚŚĞƐĐŽƉĞŽĨƚŚĞǁŽƌŬŽĨƚŚĞŝŶƚĞƌŶĂů ƌĞĐŽŶĐŝůĞƐƚŚĞŵǁŝƚŚŵĂŶĂŐĞŵĞŶƚĂĐĐŽƵŶƚƐƉƌĞƐĞŶƚĞĚƚŽ ĂƵĚŝƚĨƵŶĐƟŽŶƚŽĞŶƐƵƌĞŶŽƵŶũƵƐƟĮĞĚƌĞƐƚƌŝĐƟŽŶƐŽƌůŝŵŝƚĂƟŽŶƐ ƚŚĞĐŽŵŵŝƩĞĞ͕ĂŶĚƐŝŐŶƐŽīŽŶƚŚĞĮŶĂŶĐŝĂůĂĐĐŽƵŶƚƐŽĨƚŚĞ ŚĂǀĞďĞĞŶƉůĂĐĞĚƵƉŽŶƵĚŝƚĂŶĚZŝƐŬĞƉĂƌƚŵĞŶƚƐ͘dŚĞƵĚŝƚ ďĂŶŬďĞĨŽƌĞƚŚĞLJĂƌĞƐƵďŵŝƩĞĚƚŽƚŚĞŽĂƌĚ͘ ZŝƐŬĂŶĚŽŵƉůŝĂŶĐĞŽŵŵŝƩĞĞĂůƐŽƌĞǀŝĞǁƐƚŚĞƋƵĂůŝĮĐĂƟŽŶƐ ŽĨŝŶƚĞƌŶĂůĂƵĚŝƚƉĞƌƐŽŶŶĞůĂŶĚĞŶĚŽƌƐĞƐƚŚĞĂƉƉŽŝŶƚŵĞŶƚ͕ ƌĞƉůĂĐĞŵĞŶƚ͕ƌĞĂƐƐŝŐŶŵĞŶƚŽƌĚŝƐŵŝƐƐĂůŽĨƚŚĞŝŶƚĞƌŶĂůĂƵĚŝƚŽƌƐ͘ BSP Annual Report 2014 29 &25325$7(*29(51$1&( ŶŝŶĚĞƉĞŶĚĞŶƚƌĞǀŝĞǁďLJĂŶĞdžƉĞƌƚĐŽŶƐƵůƚĂŶƚŝƐŵĂĚĞƌĞŐƵůĂƌůLJ ͻ ŝĚĞŶƟĨLJĂŶĚŵĂŝŶƚĂŝŶĂĐůĞĂƌƐƵĐĐĞƐƐŝŽŶƉůĂŶĨŽƌƚŚĞ džĞĐƵƟǀĞ ĂƐƚŽƚŚĞĞīĞĐƟǀĞŶĞƐƐŽĨƚŚĞŝŶƚĞƌŶĂůĂƵĚŝƚĂŶĚƌŝƐŬĨƵŶĐƟŽŶ͘ DĂŶĂŐĞŵĞŶƚdĞĂŵ͕ĞŶƐƵƌŝŶŐĂŶĂƉƉƌŽƉƌŝĂƚĞŵŝdžŽĨƐŬŝůůƐĂŶĚ ĞdžƉĞƌŝĞŶĐĞĂƐǁĞůůĂƐĂƉƉƌŽƉƌŝĂƚĞƌĞŵƵŶĞƌĂƟŽŶĂŶĚďĞŶĞĮƚƐ dŚĞƐĞƌĞƉŽƌƚƐĂƌĞƉƌĞƐĞŶƚĞĚƚŽƚŚĞƵĚŝƚZŝƐŬĂŶĚŽŵƉůŝĂŶĐĞ ƉĂĐŬĂŐĞƐĂƌĞŝŶƉůĂĐĞĂŶĚƌĞǀŝĞǁĞĚƌĞŐƵůĂƌůLJ͖ ŽŵŵŝƩĞĞ͕ĂŶĚƚŚĞŽĂƌĚ͘ ͻ ĞŶƐƵƌĞƚŚĂƚƚŚĞŽĂƌĚŝƚƐĞůĨŵĂŝŶƚĂŝŶƐĂŶĂƉƉƌŽƉƌŝĂƚĞŵŝdžŽĨƐŬŝůůƐ ĂŶĚĞdžƉĞƌŝĞŶĐĞŶĞĐĞƐƐĂƌLJƚŽĨƵůĮůŝƚƐƌĞƐƉŽŶƐŝďŝůŝƟĞƐƚŽƐŚĂƌĞŚŽůĚĞƌƐ dŚĞƵĚŝƚZŝƐŬĂŶĚŽŵƉůŝĂŶĐĞŽŵŵŝƩĞĞŵĞĞƚƐƐĞƉĂƌĂƚĞůLJǁŝƚŚ ǁŚŝůĞŵĂŝŶƚĂŝŶŝŶŐĂǁŽƌůĚĐůĂƐƐŽƌƉŽƌĂƚĞ'ŽǀĞƌŶĂŶĐĞƌĞŐŝŵĞ͖ ƚŚĞŝŶƚĞƌŶĂůĂƵĚŝƚŽƌƐƚŽĚŝƐĐƵƐƐĂŶLJŵĂƩĞƌƐƚŚĂƚƚŚĞĐŽŵŵŝƩĞĞ͕ ƌĞĐĞŝǀĞĂŶĚĞŶĚŽƌƐĞƉŽƐŝƟŽŶƐͬƟƚůĞƐƌĞĐŽŵŵĞŶĚĞĚďLJƚŚĞ ŽƌƚŚĞŝŶƚĞƌŶĂůĂƵĚŝƚŽƌƐ͕ďĞůŝĞǀĞƐŚŽƵůĚďĞĚŝƐĐƵƐƐĞĚƉƌŝǀĂƚĞůLJ͘ ŚŝĞĨ džĞĐƵƟǀĞKĸĐĞƌĨƌŽŵƟŵĞƚŽƟŵĞĂƐĂƉƉůLJŝŶŐƚŽ dŚĞ/ŶƚĞƌŶĂůƵĚŝƚŽƌŚĂƐĚŝƌĞĐƚĂĐĐĞƐƐƚŽƚŚĞƵĚŝƚZŝƐŬĂŶĚ ĚĞƐŝŐŶĂƚĞĚ^ĞŶŝŽƌ džĞĐƵƟǀĞDĂŶĂŐĞŵĞŶƚƉŽƐŝƟŽŶƐ͖ ŽŵƉůŝĂŶĐĞŽŵŵŝƩĞĞĂŶĚƚŽƚŚĞĨƵůůŽĂƌĚ͘dŚĞĐŽŵŵŝƩĞĞ ͻ ƌĞǀŝĞǁƚŚĞƉƌŽĐĞĚƵƌĞƐŝŶƉůĂĐĞƚŽĞŶƐƵƌĞƚŚĂƚĂůůŶĞǁ^ĞŶŝŽƌ ĞŶƐƵƌĞƐƚŚĂƚƐŝŐŶŝĮĐĂŶƚĮŶĚŝŶŐƐĂŶĚƌĞĐŽŵŵĞŶĚĂƟŽŶƐŵĂĚĞďLJ džĞĐƵƟǀĞĂƉƉŽŝŶƚĞĞƐĂƌĞĂĚĞƋƵĂƚĞůLJƋƵĂůŝĮĞĚĂŶĚĞdžƉĞƌŝĞŶĐĞĚ͕ ƚŚĞŝŶƚĞƌŶĂůĂƵĚŝƚŽƌƐĂƌĞƌĞĐĞŝǀĞĚĂŶĚĚŝƐĐƵƐƐĞĚƉƌŽŵƉƚůLJ͕ĂŶĚ ĂŶĚƚŚĂƚƉƌŽƉĞƌƌĞĐƌƵŝƚŵĞŶƚƉƌŽĐĞĚƵƌĞƐĂƌĞĨŽůůŽǁĞĚ͖ ƚŚĂƚŵĂŶĂŐĞŵĞŶƚƌĞƐƉŽŶĚƐƚŽƌĞĐŽŵŵĞŶĚĂƟŽŶƐďLJƚŚĞŝŶƚĞƌŶĂů ͻ ƌĞǀŝĞǁĂŶĚŵĂŬĞƌĞĐŽŵŵĞŶĚĂƟŽŶƐƚŽƚŚĞŽĂƌĚŽŶƚŚĞ ĂƵĚŝƚŽƌƐŽŶĂƟŵĞůLJďĂƐŝƐ͘ ĂƉƉŽŝŶƚŵĞŶƚĂŶĚƚĞƌŵƐĂŶĚĐŽŶĚŝƟŽŶƐŽĨĞŵƉůŽLJŵĞŶƚƚŽ Ăůů^ĞŶŝŽƌ džĞĐƵƟǀĞDĂŶĂŐĞŵĞŶƚƉŽƐŝƟŽŶƐ͖ /ŶƚĞƌŶĂůƵĚŝƚŵĞĞƚƐǁŝƚŚƚŚĞĞdžƚĞƌŶĂůĂƵĚŝƚŽƌƐŚĂůĨLJĞĂƌůLJ͕ƚŽ ͻ ƌĞǀŝĞǁĂŶĚĂƉƉƌŽǀĞĂůůƚĞƌŵŝŶĂƟŽŶĂƌƌĂŶŐĞŵĞŶƚƐĨŽƌƐƵĐŚ ƌĞǀŝĞǁƚŚĞƐĐŽƉĞĂŶĚĮŶĚŝŶŐƐŽĨŝŶƚĞƌŶĂůĂƵĚŝƚ͛ƐĂŶŶƵĂůĂƵĚŝƚ ^ĞŶŝŽƌ džĞĐƵƟǀĞƐ͖ ƉůĂŶ͕ĂŶĚƚŚĞĞdžƚĞŶƚŽĨƚŚĞĞdžƚĞƌŶĂůĂƵĚŝƚƉůĂŶ͕ŚĂǀŝŶŐƌĞŐĂƌĚƚŽ ͻ ƌĞǀŝĞǁƚƌĂŶƐĂĐƟŽŶƐďĞƚǁĞĞŶƚŚĞ'ƌŽƵƉĂŶĚĂŶLJŽĨƚŚĞ ŝŶƚĞƌŶĂůĂƵĚŝƚ͛ƐĮŶĚŝŶŐƐ͘ ŝƌĞĐƚŽƌƐŽƌƌĞůĞǀĂŶƚ^ĞŶŝŽƌ džĞĐƵƟǀĞƐ͖ ͻ ƌĞǀŝĞǁĂŶĚŵĂŬĞƌĞĐŽŵŵĞŶĚĂƟŽŶƐƚŽƚŚĞŽĂƌĚŽŶĞŵƉůŽLJĞĞ Compliance ƌĞŵƵŶĞƌĂƟŽŶĂŶĚďĞŶĞĮƚƐƉŽůŝĐŝĞƐĂŶĚƉƌĂĐƟĐĞƐŐĞŶĞƌĂůůLJ͖ ͻ ĞŶŐĂŐĞĞdžƚĞƌŶĂůĐŽŶƐƵůƚĂŶƚƐĂƐĂŶĚǁŚĞŶĚĞĞŵĞĚĂƉƉƌŽƉƌŝĂƚĞ ƚŽďĞŶĐŚŵĂƌŬƌĞŵƵŶĞƌĂƟŽŶƉĂĐŬĂŐĞƐĨŽƌ džĞĐƵƟǀĞƐĂŶĚ dŚĞƵĚŝƚZŝƐŬĂŶĚŽŵƉůŝĂŶĐĞŽŵŵŝƩĞĞƌĞǀŝĞǁƐƚŚĞĞīĞĐƟǀĞŶĞƐƐ ^ĞŶŝŽƌDĂŶĂŐĞŵĞŶƚ͖ ŽĨƚŚĞƐLJƐƚĞŵƐĨŽƌŵŽŶŝƚŽƌŝŶŐĐŽŵƉůŝĂŶĐĞǁŝƚŚĂůůůĞŐĂůĂŶĚ ͻ ƌĞǀŝĞǁŽĂƌĚƉĞƌĨŽƌŵĂŶĐĞ͕ƚĞŶƵƌĞ͕ĂŶĚƐƵĐĐĞƐƐŝŽŶƉůĂŶŶŝŶŐ͘ ƌĞŐƵůĂƚŽƌLJŽďůŝŐĂƟŽŶƐĂŶĚƚŚĞŽŶƐƟƚƵƟŽŶŽĨ^W͘/ƚĂůƐŽƌĞǀŝĞǁƐ ƚŚĞƌĞƐƵůƚƐŽĨŵĂŶĂŐĞŵĞŶƚ͛ƐŝŶǀĞƐƟŐĂƟŽŶĂŶĚĨŽůůŽǁͲƵƉ;ŝŶĐůƵĚŝŶŐ dŚĞŽĂƌĚŚĂƐŝŶƉůĂĐĞĂƌĞǀŝĞǁƉƌŽĐĞƐƐ͕ůĞĚďLJƚŚĞŚĂŝƌŵĂŶ͕ ĚŝƐĐŝƉůŝŶĂƌLJĂĐƟŽŶͿŽĨĂŶLJĨƌĂƵĚƵůĞŶƚĂĐƚƐ͕ŽƌŶŽŶͲĐŽŵƉůŝĂŶĐĞ͘ ƚŚĂƚŝŶǀŽůǀĞƐĂƉĞĞƌƌĞǀŝĞǁŽĨƉĞƌĨŽƌŵĂŶĐĞďĂƐĞĚŽŶĂďƌŽĂĚ ƌĂŶŐĞŽĨĐƌŝƚĞƌŝĂ͘ƉĞƌĨŽƌŵĂŶĐĞƌĞǀŝĞǁŚĂƐďĞĞŶƉĞƌĨŽƌŵĞĚ dŚĞĐŽŵŵŝƩĞĞŽďƚĂŝŶƐƌĞŐƵůĂƌƵƉĚĂƚĞƐĨƌŽŵŵĂŶĂŐĞŵĞŶƚĂŶĚ ĞǀĞƌLJLJĞĂƌƐŝŶĐĞϮϬϭϬ͘ ƚŚĞďĂŶŬ͛ƐůĞŐĂůŽĸĐĞƌƐƌĞŐĂƌĚŝŶŐĐŽŵƉůŝĂŶĐĞŵĂƩĞƌƐ͕ĂŶĚ ƐĂƟƐĮĞƐŝƚƐĞůĨƚŚĂƚĂůůƌĞŐƵůĂƚŽƌLJĐŽŵƉůŝĂŶĐĞŵĂƩĞƌƐŚĂǀĞďĞĞŶ ĐŽŶƐŝĚĞƌĞĚŝŶƚŚĞƉƌĞƉĂƌĂƟŽŶŽĨƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘ RISK MANAGEMENT ZĞǀŝĞǁƐ ŽĨ ƚŚĞ ĮŶĚŝŶŐƐ ŽĨ ĂŶLJ ĞdžĂŵŝŶĂƟŽŶƐ ďLJ ƌĞŐƵůĂƚŽƌLJ Approach to Risk Management ĂŐĞŶĐŝĞƐĂƌĞƵŶĚĞƌƚĂŬĞŶĂŶĚƚŚĞŚĂŝƌŵĂŶŽĨƚŚĞƵĚŝƚZŝƐŬĂŶĚ ŽŵƉůŝĂŶĐĞŽŵŵŝƩĞĞŚĂƐƚŚĞƌŝŐŚƚƚŽĂƉƉƌŽĂĐŚĂƌĞŐƵůĂƚŽƌ dŚĞ'ƌŽƵƉ͛ƐZŝƐŬDĂŶĂŐĞŵĞŶƚĂĐƟǀŝƟĞƐĂƌĞĂůŝŐŶĞĚƚŽƚŚĞ ĚŝƌĞĐƚůLJŝŶƚŚĞĞǀĞŶƚŽĨĂƉƌƵĚĞŶƟĂůŝƐƐƵĞĂƌŝƐŝŶŐ͘ ĂĐŚŝĞǀĞŵĞŶƚŽĨƚŚĞ'ƌŽƵƉ͛ƐKďũĞĐƟǀĞƐ͕'ŽĂůƐĂŶĚ^ƚƌĂƚĞŐLJ͘dŚĞ ŽĂƌĚ͕ŝŶĐŽŶƐƵůƚĂƟŽŶǁŝƚŚƚŚĞ džĞĐƵƟǀĞŽŵŵŝƩĞĞ͕ĚĞƚĞƌŵŝŶĞƐ ƚŚĞ'ƌŽƵƉ͛ƐƌŝƐŬĂƉƉĞƟƚĞĂŶĚƌŝƐŬƚŽůĞƌĂŶĐĞ͘dŚĞƐĞďĞŶĐŚŵĂƌŬƐ Risk Management ĂƌĞƵƐĞĚŝŶƚŚĞƌŝƐŬŝĚĞŶƟĮĐĂƟŽŶ͕ĂŶĂůLJƐŝƐĂŶĚƌŝƐŬĞǀĂůƵĂƟŽŶ ƉƌŽĐĞƐƐĞƐ͘ dŚĞĐŽŵŵŝƩĞĞ͛ƐƌŽůĞŝŶƚŚĞďĂŶŬ͛ƐƌŝƐŬŵĂŶĂŐĞŵĞŶƚƉƌŽĐĞƐƐĞƐ ĂƌĞĚĞƚĂŝůĞĚŝŶϯ;ďͿ͘ ^WĚŝƐƟŶŐƵŝƐŚĞƐƚŚĞĨŽůůŽǁŝŶŐŵĂũŽƌƌŝƐŬƐ͗ Board Remuneration and Nomination Committee Credit Risk: dŚĞƉŽƚĞŶƟĂůĨŽƌĮŶĂŶĐŝĂůůŽƐƐǁŚĞƌĞĂĐƵƐƚŽŵĞƌŽƌ ĐŽƵŶƚĞƌƉĂƌƚLJĨĂŝůƐƚŽŵĞĞƚƚŚĞŝƌĮŶĂŶĐŝĂůŽďůŝŐĂƟŽŶƚŽƚŚĞ'ƌŽƵƉ͘ dŚĞZĞŵƵŶĞƌĂƟŽŶĂŶĚEŽŵŝŶĂƟŽŶŽŵŵŝƩĞĞŚĂƐďĞĞŶĞƐƚĂďůŝƐŚĞĚ ƚŽĂƐƐŝƐƚƚŚĞŽĂƌĚŝŶĨƵůĮůůŝŶŐŝƚƐŽǀĞƌƐŝŐŚƚƌĞƐƉŽŶƐŝďŝůŝƟĞƐŝŶ Market Risk: dŚĞƉŽƚĞŶƟĂůĮŶĂŶĐŝĂůůŽƐƐĂƌŝƐŝŶŐĨƌŽŵƚŚĞ'ƌŽƵƉ͛Ɛ ĂĐƟǀŝƟĞƐŝŶĮŶĂŶĐŝĂů͕ŝŶĐůƵĚŝŶŐĨŽƌĞŝŐŶĞdžĐŚĂŶŐĞ͕ŵĂƌŬĞƚƐ͘DŽƌĞ ƌĞƐƉĞĐƚŽĨŽĂƌĚĂŶĚ^ĞŶŝŽƌ džĞĐƵƟǀĞDĂŶĂŐĞŵĞŶƚƐĞůĞĐƟŽŶ͕ ĚĞƚĂŝůĞĚĐŽŵŵĞŶƚĂƌLJŽŶĮŶĂŶĐŝĂůƌŝƐŬŵĂŶĂŐĞŵĞŶƚŝƐƉƌŽǀŝĚĞĚ ĂƉƉŽŝŶƚŵĞŶƚ͕ƌĞǀŝĞǁĂŶĚƌĞŵƵŶĞƌĂƟŽŶ͘ ŝŶƚŚĞEŽƚĞƐƚŽƚŚĞ&ŝŶĂŶĐŝĂůĐĐŽƵŶƚƐ͘ dŚĞƌĞƐƉŽŶƐŝďŝůŝƟĞƐŽĨƚŚĞZĞŵƵŶĞƌĂƟŽŶĂŶĚEŽŵŝŶĂƟŽŶ Liquidity Risk͗dŚĞƌŝƐŬŽĨĨĂŝůƵƌĞƚŽĂĚĞƋƵĂƚĞůLJŵĞĞƚĐĂƐŚĚĞŵĂŶĚ ŽŵŵŝƩĞĞĂƌĞ͗ ŝŶƚŚĞƐŚŽƌƚƚĞƌŵ͘ ͻ ŽǀĞƌƐĞĞƚŚĞƐĞůĞĐƟŽŶĂŶĚĂƉƉŽŝŶƚŵĞŶƚŽĨĂŚŝĞĨ džĞĐƵƟǀĞ Interest Risk:ZŝƐŬƚŽĞĂƌŶŝŶŐƐĨƌŽŵŵŽǀĞŵĞŶƚŝŶŝŶƚĞƌĞƐƚƌĂƚĞƐ͘ KĸĐĞƌĂŶĚƌĞĐŽŵŵĞŶĚĂŶĂƉƉƌŽƉƌŝĂƚĞƌĞŵƵŶĞƌĂƟŽŶĂŶĚ ďĞŶĞĮƚƐƉĂĐŬĂŐĞƚŽƚŚĞĨƵůůŽĂƌĚ͖ KƉĞƌĂƟŽŶĂůZŝƐŬ͗dŚĞƌŝƐŬŽĨůŽƐƐƌĞƐƵůƟŶŐĨƌŽŵŝŶĂĚĞƋƵĂƚĞ ͻ ĚĞƚĞƌŵŝŶĞĂŶĚƌĞǀŝĞǁĂƉƉƌŽƉƌŝĂƚĞƌĞŵƵŶĞƌĂƟŽŶĂŶĚďĞŶĞĮƚƐ ŽƌĨĂŝůĞĚŝŶƚĞƌŶĂůƉƌŽĐĞƐƐĞƐ͕ƉĞŽƉůĞ͕ŽƌĨƌŽŵĞdžƚĞƌŶĂůĞǀĞŶƚƐ͕ ŽĨŝƌĞĐƚŽƌƐĨŽƌƌĞĐŽŵŵĞŶĚĂƟŽŶƚŽƚŚĞĨƵůůŽĂƌĚ͕ĂŶĚ ŝŶĐůƵĚŝŶŐůĞŐĂůĂŶĚĐŽŵƉůŝĂŶĐĞƌŝƐŬ͘ ƐƵďƐĞƋƵĞŶƚůLJƚŽƚŚĞƐŚĂƌĞŚŽůĚĞƌƐ͖ 30 BSP Annual Report 2014 &25325$7(*29(51$1&( ^ƚĂīĂƚWŽƌƚDŽƌĞƐďLJďƌĂŶĐŚĚƵƌŝŶŐƚŚĞ/ŶĚĞƉĞŶĚĞŶĐĞĚĂLJŇĂŐƌĂŝƐŝŶŐ͘ dŚĞ'ƌŽƵƉ͛ƐƐƐĞƚΘ>ŝĂďŝůŝƚLJŽŵŵŝƩĞĞŵŽŶŝƚŽƌƐŵĂƌŬĞƚƌŝƐŬ͕ ͻ ĞƐƚĂďůŝƐŚŝŶŐĂƉƉƌŽƉƌŝĂƚĞŵĂŶĂŐĞŵĞŶƚƌĞƉŽƌƟŶŐƐLJƐƚĞŵƐ ŝŶƚĞƌĞƐƚƌŝƐŬ͕ĂŶĚůŝƋƵŝĚŝƚLJƌŝƐŬ͕ĂŶĚƚŚĞƌĞĚŝƚŽŵŵŝƩĞĞŵŽŶŝƚŽƌƐ ƌĞŐĂƌĚŝŶŐƚŚĞƐĞƌŝƐŬƐƐŽŝŶĚŝǀŝĚƵĂůŵĂŶĂŐĞƌƐĂƌĞƉƌŽǀŝĚĞĚ ĐƌĞĚŝƚƌŝƐŬ͘KƉĞƌĂƟŽŶĂůƌŝƐŬŝƐŵŽŶŝƚŽƌĞĚďLJƚŚĞKƉĞƌĂƟŽŶĂůZŝƐŬ ǁŝƚŚĂƐƵĸĐŝĞŶƚůĞǀĞůŽĨĚĞƚĂŝůƚŽĂĚĞƋƵĂƚĞůLJŵĂŶĂŐĞĂŶĚ ŽŵŵŝƩĞĞ͕ŝŶĐůƵĚŝŶŐƚŚĞŵĂŝŶƚĞŶĂŶĐĞŽĨĂƌŝƐŬƌĞŐŝƐƚĞƌƐLJƐƚĞŵ ĐŽŶƚƌŽůƚŚĞ'ƌŽƵƉ͛ƐƌŝƐŬĞdžƉŽƐƵƌĞƐ͘ ƚŚĂƚŚĂƐďĞĞŶŝŵƉůĞŵĞŶƚĞĚĂĐƌŽƐƐƚŚĞ'ƌŽƵƉ͘dŚĞ džĞĐƵƟǀĞ ŽŵŵŝƩĞĞĂŶĚƚŚĞŽĂƌĚŽǀĞƌǀŝĞǁƚŚĞŚŝŐŚĞƐƚƟĞƌŽĨƌŝƐŬƐǁŝƚŚŝŶ Risk Management Roles & Responsibilities ƚŚĞƐĞƌŝƐŬƌĞŐŝƐƚĞƌƐ͘ dŚĞŽĂƌĚĂĐĐĞƉƚƐƌĞƐƉŽŶƐŝďŝůŝƚLJĨŽƌĞŶƐƵƌŝŶŐŝƚŚĂƐĂĐůĞĂƌ dŚĞ'ƌŽƵƉ͛ƐƌŝƐŬŵĂŶĂŐĞŵĞŶƚƉŽůŝĐLJĞŶƐƵƌĞƐƚŚĂƚƚŚĞ'ƌŽƵƉŚĂƐ ƵŶĚĞƌƐƚĂŶĚŝŶŐŽĨƚŚĞƚLJƉĞƐŽĨƌŝƐŬƐŝŶŚĞƌĞŶƚŝŶƚŚĞ'ƌŽƵƉ͛Ɛ ŝŶƉůĂĐĞĂĐĐĞƉƚĂďůĞůŝŵŝƚƐĨŽƌƚŚĞƌŝƐŬƐŝĚĞŶƟĮĞĚďLJƚŚĞ'ƌŽƵƉ͛Ɛ ĂĐƟǀŝƟĞƐ͘dŚĞƌĞĨŽƌĞƌĞƐƉŽŶƐŝďŝůŝƚLJĨŽƌŽǀĞƌĂůůƌŝƐŬŵĂŶĂŐĞŵĞŶƚ ĞŵƉůŽLJĞĞƐ͘dŚĞƌŝƐŬŵĂŶĂŐĞŵĞŶƚĂƉƉƌŽĂĐŚĞŶĐŽŵƉĂƐƐĞƐƚŚĞ ŝŶ^WŝƐǀĞƐƚĞĚǁŝƚŚƚŚĞŽĂƌĚ͘,ŽǁĞǀĞƌĞǀĞƌLJĞŵƉůŽLJĞĞĨƌŽŵ ĨŽůůŽǁŝŶŐ͗ džĞĐƵƟǀĞDĂŶĂŐĞŵĞŶƚƚŽƚŚĞŶĞǁĞƐƚƌĞĐƌƵŝƚŚĂƐĂƌĞƐƉŽŶƐŝďŝůŝƚLJ ĂŶĚĂƉĂƌƚƚŽƉůĂLJŝŶƚŚĞƉƌŽĐĞƐƐ͘ ͻ ĚĞĮŶŝŶŐƚŚĞƚLJƉĞƐŽĨƌŝƐŬƐƚŚĂƚǁŝůůďĞĂĚĚƌĞƐƐĞĚďLJĞĂĐŚ ĨƵŶĐƟŽŶĂůŽƌƉŽůŝĐLJĂƌĞĂ;ŝ͘Ğ͘ĐƌĞĚŝƚƌŝƐŬ͕ŝŶƚĞƌĞƐƚƌĂƚĞƌŝƐŬ͕ dŚĞƌĞŝƐĂĨŽƌŵĂůƐLJƐƚĞŵŽĨĮŶĂŶĐŝĂůĂŶĚŽƉĞƌĂƟŽŶĂůĚĞůĞŐĂƟŽŶƐ ůŝƋƵŝĚŝƚLJƌŝƐŬ͕ŽƉĞƌĂƟŽŶĂůƌŝƐŬ͕ĞƚĐ͘Ϳ͖ ĨƌŽŵƚŚĞŽĂƌĚƚŽƚŚĞŚŝĞĨ džĞĐƵƟǀĞKĸĐĞƌ͕ĂŶĚĨƌŽŵƚŚĞŚŝĞĨ ͻ ĞŶƐƵƌŝŶŐƚŚĂƚŵĞĐŚĂŶŝƐŵƐĨŽƌŵĂŶĂŐŝŶŐ;ŝĚĞŶƟĨLJŝŶŐ͕ŵĞĂƐƵƌŝŶŐ͕ džĞĐƵƟǀĞKĸĐĞƌƚŽƚŚĞ'ĞŶĞƌĂůDĂŶĂŐĞƌƐ͘dŚĞƐĞĚĞůĞŐĂƟŽŶƐƌĞŇĞĐƚ ĂŶĚĐŽŶƚƌŽůůŝŶŐͿƌŝƐŬĂƌĞŝŵƉůĞŵĞŶƚĞĚĂŶĚŵĂŝŶƚĂŝŶĞĚƚŽ ƚŚĞ'ƌŽƵƉ͛ƐƌŝƐŬĂƉƉĞƟƚĞ͕ĂŶĚĂƌĞĐĂƐĐĂĚĞĚĚŽǁŶƚŽŵĂŶĂŐĞƌƐ ƉƌŽǀŝĚĞĨŽƌŽƌŐĂŶŝƐĂƟŽŶͲǁŝĚĞƌŝƐŬŵĂŶĂŐĞŵĞŶƚ͖ ǁŚŽŚĂǀĞƐŬŝůůƐĂŶĚĞdžƉĞƌŝĞŶĐĞƚŽĞdžĞƌĐŝƐĞƚŚĞŵũƵĚŝĐŝŽƵƐůLJ͘ ͻ ĚĞǀĞůŽƉŝŶŐŝŶĨŽƌŵĂƟŽŶƐLJƐƚĞŵƐƚŽƉƌŽǀŝĚĞĞĂƌůLJǁĂƌŶŝŶŐ͕ ŽƌŝŵŵĞĚŝĂƚĞĂůĞƌƚ͕ŽĨĞǀĞŶƚƐŽƌƐŝƚƵĂƟŽŶƐƚŚĂƚŵĂLJŽĐĐƵƌ͕ dŚĞŽĂƌĚĚĞĮŶĞƐƚŚĞĂĐĐŽƵŶƚĂďŝůŝƟĞƐ;ŝŶĐůƵĚŝŶŐĚĞůĞŐĂƚĞĚ ŽƌĂůƌĞĂĚLJĞdžŝƐƚ͕ƚŚĂƚĐŽƵůĚĐƌĞĂƚĞŽŶĞŽƌŵŽƌĞƚLJƉĞƐŽĨƌŝƐŬ ĂƉƉƌŽǀĂůͬĐŽŶƚƌŽůĂƵƚŚŽƌŝƟĞƐͬůŝŵŝƚƐͿĂŶĚƌĞƉŽƌƟŶŐͬŵŽŶŝƚŽƌŝŶŐ ĨŽƌƚŚĞ'ƌŽƵƉ͖ ƌĞƋƵŝƌĞŵĞŶƚƐĨŽƌƚŚĞƌŝƐŬŵĂŶĂŐĞŵĞŶƚƉƌŽĐĞƐƐ͘dŚĞƐĞǀĞƌŝƚLJŽĨ ͻ ĐƌĞĂƟŶŐĂŶĚŵĂŝŶƚĂŝŶŝŶŐƌŝƐŬŵĂŶĂŐĞŵĞŶƚƚŽŽůƐ͕ŝŶĐůƵĚŝŶŐ ƌŝƐŬƐŝĚĞŶƟĮĞĚŝŶƚŚĞƌŝƐŬŝĚĞŶƟĮĐĂƟŽŶ͕ĂŶĂůLJƐŝƐĂŶĚĞǀĂůƵĂƟŽŶ ƚŚŽƐĞƌĞƋƵĞƐƚĞĚďLJƚŚĞŽĂƌĚ͕ƐƵĐŚĂƐƉŽůŝĐŝĞƐ͕ƉƌŽĐĞĚƵƌĞƐ͕ ƉƌŽĐĞƐƐĞƐ͕ĂŶĚŶŽƚĞĚŝŶƚŚĞ^ƚƌĂƚĞŐŝĐƵƐŝŶĞƐƐhŶŝƚZŝƐŬZĞŐŝƐƚĞƌƐ͕ ƌŝƐŬƌĞŐŝƐƚĞƌƐ͕ĐŽŶƚƌŽůƐĂŶĚŝŶĚĞƉĞŶĚĞŶƚƚĞƐƟŶŐ͕ƉĞƌƐŽŶŶĞů ŝƐƵƐĞĚƚŽĚĞƚĞƌŵŝŶĞƚŚĞĂƉƉƌŽǀĂůͬĐŽŶƚƌŽůĂƵƚŚŽƌŝƟĞƐͬůŝŵŝƚƐ͘dŚĞ ŵĂŶĂŐĞŵĞŶƚĂŶĚƚƌĂŝŶŝŶŐ͕ĂŶĚƉůĂŶŶŝŶŐ͖ ŽĂƌĚƌĞǀŝĞǁƐƚŚĞƐĞƌŝƐŬůŝŵŝƚƐĂŶŶƵĂůůLJĂůŽŶŐǁŝƚŚĂŶĂŶŶƵĂů ͻ ŝŶƐƟƚƵƟŶŐĂŶĚƌĞǀŝĞǁŝŶŐƌŝƐŬŵĞĂƐƵƌĞŵĞŶƚƚĞĐŚŶŝƋƵĞƐƚŚĂƚ ƌĞǀŝĞǁŽĨƚŚĞ'ƌŽƵƉ͛ƐƐŝŐŶŝĮĐĂŶƚƌŝƐŬƐ͘ ŝƌĞĐƚŽƌƐĂŶĚŵĂŶĂŐĞŵĞŶƚŵĂLJƵƐĞƚŽĞƐƚĂďůŝƐŚƚŚĞ'ƌŽƵƉ͛Ɛ ƌŝƐŬƚŽůĞƌĂŶĐĞ͕ƌŝƐŬŝĚĞŶƟĮĐĂƟŽŶĂƉƉƌŽĂĐŚĞƐ͕ƌŝƐŬƐƵƉĞƌǀŝƐŝŽŶ dŚĞŽĂƌĚŚĂƐĂĚŽƉƚĞĚŐƵŝĚĞůŝŶĞƐ͕ǁŝƚŚƚŚĞŚĞůƉŽĨŵĂŶĂŐĞŵĞŶƚ ŽƌĐŽŶƚƌŽůƐ͕ĂŶĚƌŝƐŬŵŽŶŝƚŽƌŝŶŐƉƌŽĐĞƐƐĞƐ͖ ĂŶĂůLJƐŝƐ͕ĐŽǀĞƌŝŶŐƚŚĞŵĂdžŝŵƵŵůŽƐƐĞdžƉŽƐƵƌĞƚŚĞ'ƌŽƵƉŝƐĂďůĞ ͻ ĚĞǀĞůŽƉŝŶŐƉƌŽĐĞƐƐĞƐĨŽƌƚŚŽƐĞĂƌĞĂƐƚŚĂƚƌĞƉƌĞƐĞŶƚƉŽƚĞŶƟĂů ĂŶĚǁŝůůŝŶŐƚŽĂƐƐƵŵĞ͘dŚĞƐĞŐƵŝĚĞůŝŶĞƐĂƌĞĚĞƚĂŝůĞĚŝŶƚŚĞ'ƌŽƵƉ͛Ɛ ƌŝƐŬƐ͖ ZŝƐŬWŽůŝĐLJĂŶĚWƌŽĐĞĚƵƌĞƐDĂŶƵĂůǁŚŝĐŚŚĂƐďĞĞŶĞdžƚĞƌŶĂůůLJ ƌĞǀŝĞǁĞĚĂŶĚĂƉƉƌŽǀĞĚďLJƚŚĞŽĂƌĚ͘ BSP Annual Report 2014 31 &25325$7(*29(51$1&( dŚĞŽĂƌĚŚĂƐĂůƐŽĚĞůĞŐĂƚĞĚƚŽƚŚĞƵĚŝƚZŝƐŬĂŶĚŽŵƉůŝĂŶĐĞ dŽĞŶƐƵƌĞƚŚĞŵĂŝŶƚĞŶĂŶĐĞŽĨŚŝŐŚƐƚĂŶĚĂƌĚƐŽĨĐŽƌƉŽƌĂƚĞ ŽŵŵŝƩĞĞƌĞƐƉŽŶƐŝďŝůŝƚLJĨŽƌŽǀĞƌǀŝĞǁŽĨůŽƐƐĐŽŶƚƌŽůĂŶĚĨŽƌ ďĞŚĂǀŝŽƵƌŽŶĂŶŽŶŐŽŝŶŐďĂƐŝƐ͕ƚŚĞŽĂƌĚĨƵƌƚŚĞƌƐƟƉƵůĂƚĞƐ ŽǀĞƌƐĞĞŝŶŐƚŚĞƌŝƐŬŵĂŶĂŐĞŵĞŶƚĨƵŶĐƟŽŶ͘ ƚŚĂƚƐĞŶŝŽƌŵĂŶĂŐĞŵĞŶƚƉĞƌŝŽĚŝĐĂůůLJƵŶĚĞƌƚĂŬĞĂŶĂƉƉƌŽƉƌŝĂƚĞ ĐŽŵŵƵŶŝĐĂƟŽŶƉƌŽŐƌĂŵŵĞƚŽƌĞŝŶĨŽƌĐĞďŽƚŚƚŚĞŽĚĞĂŶĚŽƌĞ dŚĞƵĚŝƚZŝƐŬĂŶĚŽŵƉůŝĂŶĐĞŽŵŵŝƩĞĞŝƐƌĞƐƉŽŶƐŝďůĞĨŽƌ sĂůƵĞƐ^ƚĂƚĞŵĞŶƚƐ͘ůůŝƌĞĐƚŽƌƐĂƌĞĞŶĐŽƵƌĂŐĞĚƚŽŵĂŝŶƚĂŝŶ ƉƌŽǀŝĚŝŶŐƌĞŐƵůĂƌƌĞƉŽƌƚƐĂŶĚƌĞĐŽŵŵĞŶĚĂƟŽŶƐƚŽƚŚĞŽĂƌĚŽŶ ŵĞŵďĞƌƐŚŝƉŽĨĂŶĂƉƉƌŽƉƌŝĂƚĞŝƌĞĐƚŽƌƐ͛ƐƐŽĐŝĂƟŽŶƚŽŬĞĞƉ ƚŚĞƌŝƐŬŵĂŶĂŐĞŵĞŶƚĂĐƟǀŝƟĞƐŽĨƚŚĞ'ƌŽƵƉ͕ĞƐƉĞĐŝĂůůLJƌĞůĂƟŶŐ ĂďƌĞĂƐƚŽĨĐƵƌƌĞŶƚƚƌĞŶĚƐŝŶŝƌĞĐƚŽƌƐ͛ĚƵƟĞƐ͕ƌĞƐƉŽŶƐŝďŝůŝƟĞƐĂŶĚ ƚŽƌŝƐŬŝƐƐƵĞƐƚŚĂƚĂƌĞŽƵƚƐŝĚĞŽĨƚŚĞĂƵƚŚŽƌŝƚLJŽĨƚŚĞ'ƌŽƵƉ͛Ɛ ĐŽƌƉŽƌĂƚĞŐŽǀĞƌŶĂŶĐĞŝƐƐƵĞƐ͘ džĞĐƵƟǀĞŽŵŵŝƩĞĞƚŽĂƉƉƌŽǀĞ͘ ^WŝƐĐŽŵŵŝƩĞĚƚŽĂĐƵůƚƵƌĞŝŶǁŚŝĐŚŝƚŝƐƐĂĨĞĂŶĚĂĐĐĞƉƚĂďůĞ dŚĞ'ƌŽƵƉ͛Ɛ džĞĐƵƟǀĞŽŵŵŝƩĞĞŝƐƌĞƐƉŽŶƐŝďůĞĨŽƌĚĞůŝďĞƌĂƟŶŐ ĨŽƌĞŵƉůŽLJĞĞƐ͕ĐƵƐƚŽŵĞƌƐĂŶĚƐƵƉƉůŝĞƌƐƚŽƌĂŝƐĞĐŽŶĐĞƌŶƐĂďŽƵƚ ŽŶƌŝƐŬŵĂŶĂŐĞŵĞŶƚŝƐƐƵĞƐǁŚŝĐŚĂƌĞŽƵƚƐŝĚĞŽĨƚŚĞĚĞůĞŐĂƚĞĚ ƉŽŽƌŽƌƵŶĂĐĐĞƉƚĂďůĞƉƌĂĐƟĐĞƐ͕ŝƌƌĞŐƵůĂƌŝƟĞƐ͕ĐŽƌƌƵƉƟŽŶ͕ĨƌĂƵĚ ĂƵƚŚŽƌŝƟĞƐͬůŝŵŝƚƐŽĨƚŚĞƌĞĚŝƚŽŵŵŝƩĞĞ͕ƐƐĞƚĂŶĚ>ŝĂďŝůŝƚLJ ĂŶĚŵŝƐĐŽŶĚƵĐƚ͘ ŽŵŵŝƩĞĞ;>KͿĂŶĚ'ĞŶĞƌĂůDĂŶĂŐĞƌƐ͕ǁŝƚŚĞƐĐĂůĂƟŽŶŽĨ ƚŚĞƐĞŝƐƐƵĞƐƚŽƚŚĞƵĚŝƚZŝƐŬĂŶĚŽŵƉůŝĂŶĐĞŽŵŵŝƩĞĞ͕ĂŶĚ dŚĞ'ƌŽƵƉŚĂƐĂĚŽƉƚĞĚĂǁŚŝƐƚůĞͲďůŽǁŝŶŐƉŽůŝĐLJƚŚĂƚŝƐĚĞƐŝŐŶĞĚ ƚŚĞŽĂƌĚŝƚƐĞůĨ͕ŝŶĐĂƐĞŽĨŶĞĞĚ͘ ƚŽƐƵƉƉŽƌƚĂŶĚĞŶĐŽƵƌĂŐĞƐƚĂīƚŽƌĞƉŽƌƚŝŶŐŽŽĚĨĂŝƚŚŵĂƩĞƌƐ ƐƵĐŚĂƐ͗ Management Assurance ͻ ƵŶĂĐĐĞƉƚĂďůĞƉƌĂĐƟĐĞƐ͖ ͻ ŝƌƌĞŐƵůĂƌŝƟĞƐŽƌĐŽŶĚƵĐƚǁŚŝĐŚŝƐĂŶŽīĞŶĐĞŽƌĂďƌĞĂĐŚŽĨ dŚĞŽĂƌĚŝƐƉƌŽǀŝĚĞĚǁŝƚŚƌĞŐƵůĂƌƌĞƉŽƌƚƐĂďŽƵƚ^W͛ƐĮŶĂŶĐŝĂů ůĂǁƐŽĨƚŚĞĐŽƵŶƚƌŝĞƐŝŶǁŚŝĐŚ^WŽƉĞƌĂƚĞƐŝŶ;ĂĐƟŽŶƐĂŶĚ ĐŽŶĚŝƟŽŶĂŶĚŝƚƐŽƉĞƌĂƟŶŐƉĞƌĨŽƌŵĂŶĐĞ͘ŶŶƵĂůůLJ͕ƚŚĞŚŝĞĨ ĚĞĐŝƐŝŽŶƐĂŐĂŝŶƐƚƚŚĞůĂǁƐŽĨƌĞůĞǀĂŶƚĐŽƵŶƚƌŝĞƐŝŶĐůƵĚŝŶŐ džĞĐƵƟǀĞKĸĐĞƌĂŶĚƚŚĞŚŝĞĨ&ŝŶĂŶĐŝĂůKĸĐĞƌĐĞƌƟĨLJƚŽƚŚĞ ŶŽŶͲĐŽŵƉůŝĂŶĐĞͿ͖ ŽĂƌĚƚŚĂƚ͗ ͻ ĐŽƌƌƵƉƟŽŶ͖ ͻ ĨƌĂƵĚ͖ ͻ ƚŚĞĮŶĂŶĐŝĂůƌĞĐŽƌĚƐŽĨƚŚĞ'ƌŽƵƉŚĂǀĞďĞĞŶƉƌŽƉĞƌůLJ ŵĂŝŶƚĂŝŶĞĚĂŶĚƚŚĂƚƚŚĞLJĂĐĐƵƌĂƚĞůLJƌĞĐŽƌĚƚŚĞƚƌƵĞĮŶĂŶĐŝĂů ͻ ŵŝƐƌĞƉƌĞƐĞŶƚĂƟŽŶŽĨĨĂĐƚƐ͖ ƉŽƐŝƟŽŶŽĨƚŚĞ'ƌŽƵƉ͖ ͻ ĚĞĐŝƐŝŽŶƐŵĂĚĞĂŶĚĂĐƟŽŶƐƚĂŬĞŶŽƵƚƐŝĚĞĞƐƚĂďůŝƐŚĞĚ^W ͻ ƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂŶĚŶŽƚĞƐŵĞĞƚĂůůĂƉƉƌŽƉƌŝĂƚĞ ƉŽůŝĐŝĞƐΘƉƌŽĐĞĚƵƌĞƐ͖ ĂĐĐŽƵŶƟŶŐƐƚĂŶĚĂƌĚƐ͖ ͻ ƐĞdžƵĂůŚĂƌĂƐƐŵĞŶƚ͖ ͻ ƚŚĞƌĞĂƌĞƐŽƵŶĚƐLJƐƚĞŵƐŽĨƌŝƐŬŵĂŶĂŐĞŵĞŶƚĂŶĚĐŽŶƚƌŽů ͻ ĂďƵƐĞŽĨĞůĞŐĂƚĞĚƵƚŚŽƌŝƟĞƐ͖ ƚŚĂƚĂƌĞŽƉĞƌĂƟŶŐĞīĞĐƟǀĞůLJ͖ ͻ ŵŝƐƵƐĞŽĨ'ƌŽƵƉĂƐƐĞƚƐ͖ ͻ ĚŝƐĐůŽƐƵƌĞƐƌĞůĂƚĞĚƚŽŵŝƐĐĂƌƌŝĂŐĞƐŽĨũƵƐƟĐĞ͖ ĚĚŝƟŽŶĂůůLJĂůů'ĞŶĞƌĂůDĂŶĂŐĞƌƐƉƌŽǀŝĚĞďŝͲĂŶŶƵĂůƐƚĂƚĞŵĞŶƚƐ ͻ ŚĞĂůƚŚĂŶĚƐĂĨĞƚLJƌŝƐŬƐ͕ŝŶĐůƵĚŝŶŐƌŝƐŬƐƚŽƚŚĞƉƵďůŝĐĂƐǁĞůů ĂƩĞƐƟŶŐƚŚĂƚ͖ ĂƐŽƚŚĞƌĞŵƉůŽLJĞĞƐ͖ ͻ ĚĂŵĂŐĞƚŽƚŚĞĞŶǀŝƌŽŶŵĞŶƚ͖ ͻ ƚŚĞLJŚĂǀĞĂƐƐĞƐƐĞĚĂŶĚĚŽĐƵŵĞŶƚĞĚƚŚĞƌŝƐŬƐĂŶĚŝŶƚĞƌŶĂů ĐŽŶƚƌŽůƉƌŽĐĞĚƵƌĞƐŝŶƚŚĞŝƌ^ƚƌĂƚĞŐŝĐƵƐŝŶĞƐƐhŶŝƚ͖ ͻ ŽƚŚĞƌƵŶĞƚŚŝĐĂůĐŽŶĚƵĐƚ͖ ͻ ƚŚĞLJŚĂǀĞŝĚĞŶƟĮĞĚĂŶLJĐŚĂŶŐĞƐŝŶďƵƐŝŶĞƐƐ͕ŽƉĞƌĂƟŽŶƐ ͻ ĨĂŝůƵƌĞƚŽĐŽŵƉůLJǁŝƚŚĂƉƉƌŽƉƌŝĂƚĞƉƌŽĨĞƐƐŝŽŶĂůƐƚĂŶĚĂƌĚƐ͖ ĂŶĚĐŽŵƉƵƚĞƌƐLJƐƚĞŵƐĂŶĚƚŚĞƌŝƐŬƐƚŚĂƚŵĂLJĂƌŝƐĞĨƌŽŵ ͻ ĂďƵƐĞŽĨƉŽǁĞƌ͕ŽƌƵƐĞŽĨƚŚĞ'ƌŽƵƉ͛ƐƉŽǁĞƌƐĂŶĚĂƵƚŚŽƌŝƚLJ ƚŚŽƐĞĐŚĂŶŐĞƐ͖ ĨŽƌĂŶLJƵŶĂƵƚŚŽƌŝƐĞĚƉƵƌƉŽƐĞŽƌƉĞƌƐŽŶĂůŐĂŝŶ͖ ͻ ƚŚĞƌŝƐŬŵĂŶĂŐĞŵĞŶƚĂŶĚŝŶƚĞƌŶĂůĐŽŵƉůŝĂŶĐĞĂŶĚĐŽŶƚƌŽů ͻ ďƌĞĂĐŚŽĨƐƚĂƚƵƚŽƌLJĐŽĚĞƐŽĨƉƌĂĐƟĐĞ͘ ƐLJƐƚĞŵƐĂƌĞĂƉƉƌŽƉƌŝĂƚĞĂŶĚŽƉĞƌĂƟŶŐĞĸĐŝĞŶƚůLJĂŶĚĞīĞĐƟǀĞůLJ͖ ͻ ĂŶLJǁĞĂŬŶĞƐƐĞƐŝŶƚŚĞƌŝƐŬŵĂŶĂŐĞŵĞŶƚĂŶĚŝŶƚĞƌŶĂů ŝƌĞĐƚŽƌƐĂŶĚŵĂŶĂŐĞŵĞŶƚŽĨƚŚĞ'ƌŽƵƉĂƌĞƐƵďũĞĐƚƚŽ^ĞĐƵƌŝƟĞƐĐƚ ĐŽŵƉůŝĂŶĐĞĂŶĚĐŽŶƚƌŽůƐLJƐƚĞŵƐŚĂǀĞďĞĞŶŝĚĞŶƟĮĞĚĂŶĚ ϭϵϵϳƌĞƐƚƌŝĐƟŽŶƐĨŽƌďƵLJŝŶŐ͕ƐĞůůŝŶŐŽƌƐƵďƐĐƌŝďŝŶŐĨŽƌƐĞĐƵƌŝƟĞƐŝŶƚŚĞ ƌĞŵĞĚŝĂůĂĐƟŽŶƚĂŬĞŶ͘ 'ƌŽƵƉŝĨƚŚĞLJĂƌĞŝŶƉŽƐƐĞƐƐŝŽŶŽĨŝŶƐŝĚĞŝŶĨŽƌŵĂƟŽŶ͕ŝ͘Ğ͘ŝŶĨŽƌŵĂƟŽŶ ǁŚŝĐŚŝƐŶŽƚŐĞŶĞƌĂůůLJĂǀĂŝůĂďůĞĂŶĚ͕ŝĨŝƚǁĞƌĞŐĞŶĞƌĂůůLJĂǀĂŝůĂďůĞ͕ ETHICAL BEHAVIOUR ĂƌĞĂƐŽŶĂďůĞƉĞƌƐŽŶǁŽƵůĚĞdžƉĞĐƚƚŽŚĂǀĞĂŵĂƚĞƌŝĂůĞīĞĐƚŽŶƚŚĞ ƉƌŝĐĞŽƌǀĂůƵĞŽĨƚŚĞƐĞĐƵƌŝƟĞƐŽĨƚŚĞ'ƌŽƵƉ͘ ^WĂĐŬŶŽǁůĞĚŐĞƐƚŚĞŶĞĞĚĨŽƌŝƌĞĐƚŽƌƐĂŶĚĞŵƉůŽLJĞĞƐĂƚĂůů &ƵƌƚŚĞƌ͕ŝƌĞĐƚŽƌƐĂŶĚŵĂŶĂŐĞŵĞŶƚŵĂLJŽŶůLJƚƌĂĚĞŝŶƚŚĞƐĞĐƵƌŝƟĞƐ ůĞǀĞůƐƚŽŽďƐĞƌǀĞƚŚĞŚŝŐŚĞƐƚƐƚĂŶĚĂƌĚƐŽĨĞƚŚŝĐĂůďĞŚĂǀŝŽƵƌǁŚĞŶ ŽĨƚŚĞ'ƌŽƵƉ͕ƐƵďũĞĐƚƚŽƚŚĞĨŽƌĞŐŽŝŶŐŝŶƐŝĚĞƌƚƌĂĚŝŶŐƌĞƐƚƌŝĐƟŽŶƐ͕ ƵŶĚĞƌƚĂŬŝŶŐ^WďƵƐŝŶĞƐƐ͘dŽƚŚŝƐĞŶĚ͕ƚŚĞŽĂƌĚŚĂƐĂĚŽƉƚĞĚ͗ ĚƵƌŝŶŐĞĂĐŚŽĨƚŚĞĞŝŐŚƚǁĞĞŬƐĨŽůůŽǁŝŶŐƚŚĞĂŶŶŽƵŶĐĞŵĞŶƚƐŽĨŚĂůĨ LJĞĂƌůLJƉƌŽĮƚĂŶĚLJĞĂƌůLJƉƌŽĮƚŽƌƚŚĞĚĂƚĞŽĨŝƐƐƵĞŽĨĂƉƌŽƐƉĞĐƚƵƐ͘ ͻ ĂŽĚĞŽĨŽŶĚƵĐƚĨŽƌďŽƚŚŝƌĞĐƚŽƌƐĂŶĚŵĞŵďĞƌƐŽĨƚŚĞ DĂŶĂŐĞŵĞŶƚƐŚŽƵůĚĚŝƐĐƵƐƐƉƌŽƉŽƐĞĚƐŚĂƌĞƚƌĂĚĞƐǁŝƚŚƚŚĞŚŝĞĨ džĞĐƵƟǀĞDĂŶĂŐĞŵĞŶƚƚĞĂŵŽĨƚŚĞ'ƌŽƵƉĂŶĚƐƟƉƵůĂƚĞĚƚŚĂƚ džĞĐƵƟǀĞKĸĐĞƌŝŶĂĚǀĂŶĐĞ͕ǁŚŽŝŶƚƵƌŶǁŝůůŬĞĞƉƚŚĞŚĂŝƌŵĂŶ ĞĂĐŚŝƌĞĐƚŽƌ͕ĂŶĚƌĞůĞǀĂŶƚĞŵƉůŽLJĞĞƐ͕ĂĐŬŶŽǁůĞĚŐĞŝŶǁƌŝƟŶŐ ŽĨƚŚĞŽĂƌĚĂƉƉƌĂŝƐĞĚŽĨŵĂŶĂŐĞŵĞŶƚĂĐƟǀŝƟĞƐ͘ŝƌĞĐƚŽƌƐƐŚŽƵůĚ ŚĂǀŝŶŐƌĞĂĚ͕ƵŶĚĞƌƐƚŽŽĚĂŶĚĂŐƌĞĞĚƚŽĂďŝĚĞďLJƚŚĞŽĚĞ͖ĂŶĚ ĚŝƐĐƵƐƐƉƌŽƉŽƐĞĚƐŚĂƌĞƚƌĂĚĞƐǁŝƚŚƚŚĞŚĂŝƌŵĂŶŝŶĂĚǀĂŶĐĞ͘ ͻ ĂŽƌƉŽƌĂƚĞDŝƐƐŝŽŶ͕KďũĞĐƟǀĞƐ͕ĂŶĚŽƌĞsĂůƵĞƐ^ƚĂƚĞŵĞŶƚ /ŶĂĚĚŝƟŽŶŝƌĞĐƚŽƌƐĂŶĚŵĂŶĂŐĞŵĞŶƚŵƵƐƚŶŽƚƚƌĂĚĞŝŶĂŶLJŽƚŚĞƌ ǁŚŝĐŚĞƐƚĂďůŝƐŚĞƐƉƌŝŶĐŝƉůĞƐƚŽŐƵŝĚĞĂůůĞŵƉůŽLJĞĞƐŝŶƚŚĞ ĞŶƟƚLJŝĨŝŶƐŝĚĞŝŶĨŽƌŵĂƟŽŶŽŶƐƵĐŚĞŶƟƚLJĐŽŵĞƐƚŽƚŚĞĂƩĞŶƟŽŶ ĚĂLJƚŽĚĂLJƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚĞŝƌŝŶĚŝǀŝĚƵĂůĨƵŶĐƟŽŶƐǁŝƚŚŝŶ ŽĨƚŚĞŝƌĞĐƚŽƌŽƌŵĂŶĂŐĞŵĞŶƚďLJǀŝƌƚƵĞŽĨŚŽůĚŝŶŐŽĸĐĞĂƐĂŶ ƚŚĞ'ƌŽƵƉ͘ KĸĐĞƌŽĨƚŚĞ'ƌŽƵƉ͘ 32 BSP Annual Report 2014 &25325$7(*29(51$1&( ^WŝƐĐŽŵŵŝƩĞĚƚŽĂĐƵůƚƵƌĞŝŶǁŚŝĐŚŝƚŝƐƐĂĨĞĂŶĚ ĂĐĐĞƉƚĂďůĞĨŽƌĞŵƉůŽLJĞĞƐ͘ďŽǀĞ͗ƌĂŶĐŚůĞƐƐĂŶŬŝŶŐƚĞĂŵ͘ MARKET DISCLOSURE SHAREHOLDER COMMUNICATIONS dŚĞ'ƌŽƵƉ͛ƐĐŽŶƟŶƵŽƵƐĚŝƐĐůŽƐƵƌĞƌĞŐŝŵĞŝƐĨƵŶĚĂŵĞŶƚĂůƚŽƚŚĞ ^W͛ƐŽĚĞŽĨŽŶĚƵĐƚƌĞƋƵŝƌĞƐŝƚƐĞŵƉůŽLJĞĞƐƚŽĂĐƚǁŝƚŚŚŝŐŚ ƌŝŐŚƚƐŽĨƐŚĂƌĞŚŽůĚĞƌƐƚŽƌĞĐĞŝǀĞŝŶĨŽƌŵĂƟŽŶĐŽŶĐĞƌŶŝŶŐƚŚĞŝƌ ƐƚĂŶĚĂƌĚƐŽĨŚŽŶĞƐƚLJ͕ŝŶƚĞŐƌŝƚLJ͕ĨĂŝƌŶĞƐƐĂŶĚĞƋƵŝƚLJŝŶĂůůĂƐƉĞĐƚƐ ƐĞĐƵƌŝƟĞƐ͘dŚĞŵŽƐƚŝŵƉŽƌƚĂŶƚĂƐƉĞĐƚŽĨƚŚĞ'ƌŽƵƉ͛ƐƐŚĂƌĞŚŽůĚĞƌ ŽĨƚŚĞŝƌĞŵƉůŽLJŵĞŶƚǁŝƚŚ^W͘ ĐŽŵŵƵŶŝĐĂƟŽŶƉŽůŝĐLJŝƐƚŽĐŽŵƉůLJǁŝƚŚƚŚĞĐŽŶƟŶƵŽƵƐĚŝƐĐůŽƐƵƌĞ ƌĞŐŝŵĞĂŶĚƚŽŝŵƉůĞŵĞŶƚďĞƐƚƉƌĂĐƟĐĞĚŝƐĐůŽƐƵƌĞƉŽůŝĐLJ͘ tŝƚŚƚŚŝƐŝŶŵŝŶĚ͕^WĐŽŵŵŝƚƐƚŽĚĞĂůŝŶŐĨĂŝƌůLJ͕ƚƌĂŶƐƉĂƌĞŶƚůLJ ĂŶĚŽƉĞŶůLJǁŝƚŚďŽƚŚĐƵƌƌĞŶƚĂŶĚƉƌŽƐƉĞĐƟǀĞƐŚĂƌĞŚŽůĚĞƌƐƵƐŝŶŐ DĂƌŬĞƚĂŶŶŽƵŶĐĞŵĞŶƚƐĂƌĞƉŽƐƚĞĚƚŽ^W͛ƐǁĞďƐŝƚĞŝŵŵĞĚŝĂƚĞůLJ ĂǀĂŝůĂďůĞĐŚĂŶŶĞůƐĂŶĚƚĞĐŚŶŽůŽŐŝĞƐƚŽĐŽŵŵƵŶŝĐĂƚĞǁŝĚĞůLJĂŶĚ ĂŌĞƌƌĞůĞĂƐĞƚŽƚŚĞŵĂƌŬĞƚ͘ůůŵĂƌŬĞƚĂŶŶŽƵŶĐĞŵĞŶƚƐŵĂĚĞďLJ ƉƌŽŵƉƚůLJ͘^WĐŽŵŵŝƚƐƚŽĨĂĐŝůŝƚĂƟŶŐƉĂƌƟĐŝƉĂƟŽŶŝŶƐŚĂƌĞŚŽůĚĞƌ ƚŚĞďĂŶŬƐŝŶĐĞŝƚƐůŝƐƟŶŐŝŶƵŐƵƐƚϮϬϬϯĂƌĞĐƵƌƌĞŶƚůLJĂǀĂŝůĂďůĞ ŵĞĞƟŶŐƐ͕ĂŶĚĚĞĂůŝŶŐƉƌŽŵƉƚůLJǁŝƚŚƐŚĂƌĞŚŽůĚĞƌĞŶƋƵŝƌŝĞƐ͘ ŽŶƚŚĞǁĞďƐŝƚĞ͘tŚĞƌĞ^WƉƌŽǀŝĚĞƐĮŶĂŶĐŝĂůƌĞƐƵůƚƐ͛ďƌŝĞĮŶŐƐƚŽ ĂŶĂůLJƐƚƐŽƌŵĞĚŝĂ͕ƚŚĞƐĞďƌŝĞĮŶŐƐĂƌĞƉƵďůŝƐŚĞĚŽŶƚŚĞǁĞďƐŝƚĞ KƵƌƐŚĂƌĞŚŽůĚĞƌĐŽŵŵƵŶŝĐĂƟŽŶƉŽůŝĐLJŝƐďƵŝůƚĂƌŽƵŶĚĐŽŵƉůŝĂŶĐĞ ĂƐƐŽŽŶĂƐƉŽƐƐŝďůĞĂŌĞƌƚŚĞĞǀĞŶƚ͘/ŶĂŶLJĞǀĞŶƚ͕ŶŽŵĂƚĞƌŝĂů ǁŝƚŚĚŝƐĐůŽƐƵƌĞŽďůŝŐĂƟŽŶƐĂŶĚĂƐƉŝƌŝŶŐƚŽďĞĂƚƚŚĞĨŽƌĞĨƌŽŶƚŽĨ ŝŶĨŽƌŵĂƟŽŶǁŚŝĐŚŚĂƐŶŽƚďĞĞŶƉƌĞǀŝŽƵƐůLJƌĞůĞĂƐĞĚƚŽƚŚĞŵĂƌŬĞƚ ďĞƐƚƉƌĂĐƟĐĞŝŶĚŝƐĐůŽƐƵƌĞ͘KƵƌĨƌĂŵĞǁŽƌŬĨŽƌĐŽŵŵƵŶŝĐĂƟŶŐ ŝƐĐŽǀĞƌĞĚŝŶƐƵĐŚďƌŝĞĮŶŐƐ͘dŚĞŵĂƚĞƌŝĂůƵƉŽŶǁŚŝĐŚƚŚĞďƌŝĞĮŶŐ ǁŝƚŚƐŚĂƌĞŚŽůĚĞƌƐŝƐƚŽĐŽŶĐŝƐĞůLJĂŶĚĂĐĐƵƌĂƚĞůLJĐŽŵŵƵŶŝĐĂƚĞ͗ ŝƐďĂƐĞĚ;ƐƵĐŚĂƐƐůŝĚĞƐŽƌƉƌĞƐĞŶƚĂƟŽŶƐͿŝƐƌĞůĞĂƐĞĚƚŽƚŚĞŵĂƌŬĞƚ 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ŽĨƐŚŽƌƚƚĞƌŵƌĞǁĂƌĚƐĂŶĚůŽŶŐƚĞƌŵŝŶĐĞŶƟǀĞƐ͘dŚĞƌĞŵƵŶĞƌĂƟŽŶƉĂĐŬĂŐĞƐŽĨ'ĞŶĞƌĂůDĂŶĂŐĞƌƐĂŶĚƚŚĞŚŝĞĨ džĞĐƵƟǀĞKĸĐĞƌ ĂƌĞĂƉƉƌŽǀĞĚďLJƚŚĞZĞŵƵŶĞƌĂƟŽŶĂŶĚEŽŵŝŶĂƟŽŶŽŵŵŝƩĞĞ͕ĂŶĚĚĞƚĂŝůƐĂƌĞƉƌŽǀŝĚĞĚďLJƚŚĞĐŽŵŵŝƩĞĞƚŽƚŚĞŽĂƌĚ͘ &ŝdžĞĚƌĞŵƵŶĞƌĂƟŽŶŽĨƐĞŶŝŽƌŵĂŶĂŐĞŵĞŶƚŝƐƌĞǀŝĞǁĞĚĂƚƚŚĞƟŵĞŽĨĐŽŶƚƌĂĐƚƌĞŶĞǁĂůƚĂŬŝŶŐŝŶƚŽĂĐĐŽƵŶƚƚŚĞŶĂƚƵƌĞŽĨƚŚĞƌŽůĞ͕ ƚŚĞƉĂLJƉŽƐŝƟŽŶƌĞůĂƟǀĞƚŽĐŽŵƉĂƌĂďůĞŵĂƌŬĞƚƉĂLJůĞǀĞůƐ͕ĂŶĚŝŶĚŝǀŝĚƵĂůĂŶĚďƵƐŝŶĞƐƐƉĞƌĨŽƌŵĂŶĐĞ͘ EŽŶͲĞdžĞĐƵƟǀĞŝƌĞĐƚŽƌƐĂƌĞƌĞŵƵŶĞƌĂƚĞĚŽŶĂĮdžĞĚďĂƐŝƐǁŝƚŚŝŶĂŶĂŐŐƌĞŐĂƚĞŝƌĞĐƚŽƌƐ͛ĨĞĞƉŽŽůĂƉƉƌŽǀĞĚƉĞƌŝŽĚŝĐĂůůLJďLJ ƐŚĂƌĞŚŽůĚĞƌƐ͘dŚĞƐŚĂƌĞŚŽůĚĞƌƐŝŶϮϬϭϮĂƉƉƌŽǀĞĚĂŶŝŶĐƌĞĂƐĞŝŶƚŚĞƉŽŽůƚŽ<Ϯ͘ϬϬŵŝůůŝŽŶ͘ƵƌŝŶŐϮϬϭϰ<ϭ͘ϲϲŵŝůůŝŽŶŽĨƚŚĞƉŽŽů ǁĂƐƵƟůŝƐĞĚ;ϮϬϭϯ͗<ϭ͘ϯϳŵŝůůŝŽŶͿ͘ ƚĂďůĞŽĨĨĞĞƐƉĂŝĚƚŽŝƌĞĐƚŽƌƐĚƵƌŝŶŐϮϬϭϰŝƐƉƌŽĚƵĐĞĚŽŶƉĂŐĞϳϭ͘EŽŶͲĞdžĞĐƵƟǀĞŝƌĞĐƚŽƌƐĂƌĞŶŽƚƉĂŝĚĂŶLJƌĞƟƌĞŵĞŶƚŽƌ ƐƵƉĞƌĂŶŶƵĂƟŽŶďĞŶĞĮƚƐ͕ŶŽƌĚŽƚŚĞLJƉĂƌƟĐŝƉĂƚĞŝŶĂŶLJƐŚĂƌĞŽƉƟŽŶƉƌŽŐƌĂŵŵĞƐ͘ 34 BSP Annual Report 2014 +,6725,&$/6800$5< Historical Summary 2014 WƌŽĮƚĂŶĚ>ŽƐƐ;<͛ϬϬϬͿ 2009 2010 2011 2012 2013 2014 EĞƚŝŶƚĞƌĞƐƚŝŶĐŽŵĞ ϰϳϯ͕ϵϲϵ ϱϰϰ͕ϬϬϮ ϱϵϳ͕ϰϳϵ ϲϴϭ͕ϱϱϰ ϳϰϬ͕ϴϱϳ ϴϱϮ͕ϴϴϲ EŽŶŝŶƚĞƌĞƐƚŝŶĐŽŵĞ Ϯϱϭ͕ϳϰϯ ϰϭϬ͕ϵϳϯ ϱϴϰ͕ϴϲϳ ϲϳϭ͕ϴϳϬ ϳϴϭ͕Ϯϭϳ ϳϮϵ͕ϴϰϰ ĂĚĂŶĚĚŽƵďƞƵůĚĞďƚ;ĞdžƉĞŶƐĞͿͬ ;ϭϱ͕ϬϮϬͿ ;ϮϬ͕ϱϴϭͿ ;Ϯϱ͕ϮϯϰͿ ;ϳϬ͕ϵϱϮͿ ;ϳϴ͕ϱϳϯͿ ;ϳϲ͕ϳϵϲͿ ƌĞĐŽǀĞƌLJ KƚŚĞƌŽƉĞƌĂƟŶŐĞdžƉĞŶƐĞƐ ;ϯϯϱ͕ϭϰϲͿ ;ϱϮϮ͕ϴϮϳͿ ;ϲϴϴ͕ϲϮϭͿ ;ϳϰϴ͕ϯϰϲͿ ;ϴϯϯ͕ϴϰϵͿ ;ϳϵϳ͕ϯϭϳͿ KƉĞƌĂƟŶŐWƌŽĮƚ ϯϳϱ͕ϱϰϲ ϰϭϭ͕ϱϲϲ ϰϲϴ͕ϰϵϬ ϱϯϰ͕ϭϮϲ ϲϬϵ͕ϲϱϮ ϳϬϴ͕ϲϭϳ /ŵƉĂŝƌŵĞŶƚŽĨŶŽŶͲĐƵƌƌĞŶƚĂƐƐĞƚ Ϯ͕ϱϵϳ Ͳ Ͳ Ͳ ;ϭϰ͕ϵϲϳͿ Ͳ ^ŚĂƌĞŽĨƉƌŽĮƚƐĨƌŽŵĂƐƐŽĐŝĂƚĞƐ Ͳ ;ϳϲϮͿ ϲ͕ϰϵϲ ϭϭ͕ϭϳϬ ϭϮ͕ϮϳϬ ϭϬ͕Ϯϯϯ WƌŽĮƚďĞĨŽƌĞƚĂdž ϯϳϴ͕ϭϰϯ ϰϭϬ͕ϴϬϰ ϰϳϰ͕ϵϴϲ ϱϰϱ͕Ϯϵϲ ϲϬϲ͕ϵϱϱ ϳϭϴ͕ϴϱϬ /ŶĐŽŵĞƚĂdž;ĞdžƉĞŶƐĞͿ ;ϭϮϭ͕ϬϮϱͿ ;ϭϮϳ͕ϲϱϳͿ ;ϭϭϵ͕ϬϯϵͿ ;ϭϯϳ͕ϱϱϮͿ ;ϭϳϬ͕ϭϮϳͿ ;Ϯϭϭ͕ϱϭϭͿ WƌŽĮƚͬ;ůŽƐƐͿĂŌĞƌƚĂdž Ϯϱϳ͕ϭϭϴ Ϯϴϯ͕ϭϰϳ ϯϱϱ͕ϵϰϳ ϰϬϳ͕ϳϰϰ ϰϯϲ͕ϴϮϴ ϱϬϳ͕ϯϯϵ Dividends (toea) ŝǀŝĚĞŶĚƐƉĂŝĚƉĞƌƐŚĂƌĞϭ Ϯ͘Ϯ ϱ͘ϰ ϰϳ͘ϯ ϱϱ͘Ϭ ϱϴ͘Ϭ ϲϲ͘Ϭ Balance Sheet (K’000) EĞƚůŽĂŶƐĂŶĚĂĚǀĂŶĐĞƐ ϯ͕ϲϯϴ͕ϱϲϮ ϰ͕Ϭϵϭ͕Ϯϵϳ ϰ͕ϯϬϬ͕ϵϭϯ ϰ͕ϴϬϰ͕ϲϮϲ ϱ͕ϯϬϲ͕ϯϲϮ ϲ͕ϴϭϳ͕ϯϵϲ dŽƚĂůĂƐƐĞƚƐ ϵ͕ϯϵϳ͕ϴϮϭ ϭϬ͕ϬϮϳ͕ϮϵϬ ϭϭ͕ϲϴϭ͕Ϯϵϯ ϭϯ͕ϯϯϯ͕ϭϬϮ ϭϱ͕ϳϲϭ͕ϰϮϬ ϭϱ͕ϴϳϲ͕ϵϬϲ ĞƉŽƐŝƚƐ ϳ͕ϰϵϯ͕ϳϳϵ ϳ͕ϵϴϰ͕ϲϱϳ ϵ͕ϯϲϲ͕Ϯϴϭ ϭϬ͕ϴϲϬ͕ϱϮϮ ϭϮ͕ϮϬϬ͕ϵϵϵ ϭϮ͕ϳϬϴ͕ϯϴϯ ĂƉŝƚĂů ϵϯϰ͕Ϭϵϳ ϭ͕ϭϯϰ͕ϯϵϳ ϭ͕ϯϰϰ͕ϭϴϴ ϭ͕ϰϲϱ͕ϴϵϯ ϭ͕ϲϭϵ͕ϬϲϬ ϭ͕ϴϬϬ͕ϭϵϯ WĞƌĨŽƌŵĂŶĐĞZĂƟŽƐ ZĞƚƵƌŶŽŶƐƐĞƚƐ ϯ͘Ϯй Ϯ͘ϵй ϯ͘ϯй ϯ͘ϯй Ϯ͘ϴй ϯ͘Ϯй ZĞƚƵƌŶŽŶ ƋƵŝƚLJ ϯϬ͘ϲй Ϯϳ͘ϰй Ϯϴ͘ϳй Ϯϵ͘Ϭй Ϯϴ͘ϯй Ϯϵ͘ϳй džƉĞŶƐĞͬ/ŶĐŽŵĞ ϰϲ͘Ϯй ϱϰ͘ϳй ϱϴ͘Ϯй ϱϱ͘ϯй ϱϰ͘ϴй ϱϬ͘ϰй <ĞLJWƌƵĚĞŶƟĂůZĂƟŽƐ ĂƉŝƚĂůĂĚĞƋƵĂĐLJ ϮϮ͘ϭй Ϯϯ͘ϲй Ϯϰ͘Ϯй ϮϮ͘ϯй ϭϴ͘Ϭй Ϯϰ͘Ϭй >ŝƋƵŝĚƐƐĞƚZĂƟŽ ϱϬ͘ϭй ϰϯ͘Ϭй ϰϯ͘ϲй ϯϴ͘ϵй ϰϭ͘ϴй ϯϰ͘ϯй >ĞǀĞƌĂŐĞƌĂƟŽ ϵ͘ϭй ϭϬ͘ϱй ϭϬ͘Ϭй ϵ͘Ϭй ϳ͘ϲй ϵ͘Ϭй Exchange rates (One (1) PNG Kina buys): h^ŽůůĂƌ Ϭ͘ϯϳϬϬ Ϭ͘ϯϳϴϱ Ϭ͘ϰϲϲϱ Ϭ͘ϰϳϱϱ Ϭ͘ϯϵϬϱ Ϭ͘ϯϴϱϱ h^ŽůůĂƌ Ϭ͘ϰϭϮϳ Ϭ͘ϯϳϮϰ Ϭ͘ϰϱϵϭ Ϭ͘ϰϱϴϬ Ϭ͘ϰϯϲϵ Ϭ͘ϰϳϬϴ ;^ŽƵƌĐĞͲĂŶŬŽĨWĂƉƵĂEĞǁ'ƵŝŶĞĂYƵĂƌƚĞƌůLJ ĐŽŶŽŵŝĐƵůůĞƟŶͿ ϭ/ŶϮϬϭϬ͕^WƉĂŝĚĂĨƵůůĂŶĚĮŶĂůĚŝǀŝĚĞŶĚĨŽƌƚŚĞϮϬϬϵLJĞĂƌŝŶ:ƵůLJ͕ĂŶĚĂŶŝŶƚĞƌŝŵĚŝǀŝĚĞŶĚĨŽƌϮϬϭϬLJĞĂƌ͕ŝŶEŽǀĞŵďĞƌ͘ŝǀŝĚĞŶĚƐƉĞƌƐŚĂƌĞ ŚĂƐďĞĞŶĂĚũƵƐƚĞĚĨŽƌϭϬͬϭƐŚĂƌĞĐŽŶƐŽůŝĚĂƟŽŶŝŶϮϬϭϭ͘/ŶϮϬϭϭ͕^WƉĂŝĚĂĨƵůůĂŶĚĮŶĂůĚŝǀŝĚĞŶĚĨŽƌƚŚĞϮϬϭϬLJĞĂƌŝŶ:ƵŶĞ͕ĂŶĚĂŶŝŶƚĞƌŝŵ ĚŝǀŝĚĞŶĚĨŽƌϮϬϭϭLJĞĂƌ͕ŝŶKĐƚŽďĞƌ͘/ŶϮϬϭϮ͕^WƉĂŝĚĂĮŶĂůĚŝǀŝĚĞŶĚĨŽƌƚŚĞϮϬϭϭLJĞĂƌŝŶ:ƵŶĞ͕ĂŶĚĂŶŝŶƚĞƌŝŵĚŝǀŝĚĞŶĚĨŽƌϮϬϭϮLJĞĂƌŝŶ KĐƚŽďĞƌ͘/ŶϮϬϭϯ͕^WƉĂŝĚĂĮŶĂůĚŝǀŝĚĞŶĚĨŽƌƚŚĞϮϬϭϮLJĞĂƌŝŶ:ƵŶĞ͕ĂŶĚĂŶŝŶƚĞƌŝŵĚŝǀŝĚĞŶĚĨŽƌϮϬϭϯLJĞĂƌŝŶKĐƚŽďĞƌ͘/ŶϮϬϭϰ͕^WƉĂŝĚĂĮŶĂů ĚŝǀŝĚĞŶĚĨŽƌƚŚĞϮϬϭϯLJĞĂƌŝŶ:ƵŶĞ͕ĂŶĚĂŶŝŶƚĞƌŝŵĚŝǀŝĚĞŶĚĨŽƌϮϬϭϰLJĞĂƌŝŶKĐƚŽďĞƌ͘ BSP Annual Report 2014 35 &2175,%87,21 E\%63WR31* Contributions by BSP to PNG ůůŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<ΖϬϬϬ 2010 2011 2012 2013 2014 ŽŵƉĂŶLJŝŶĐŽŵĞƚĂdžĞƐƉĂŝĚƚŽWE' Ϯϭϯ͕ϳϳϭ ϭϭϵ͕ϱϵϬ ϮϭϮ͕Ϭϴϭ ϭϱϱ͕ϯϵϭ ϭϴϴ͕ϲϮϳ 'ŽǀĞƌŶŵĞŶƚ KƚŚĞƌƚĂdžĞƐƉĂŝĚƚŽWE''ŽǀĞƌŶŵĞŶƚ ϵ͕ϳϴϬ ϭϬ͕Ϭϵϭ ϲ͕ϮϬϰ ϰ͕ϵϴϵ Ϯ͕ϱϲϴ ;/td͕&td͕tdͿ '^dƉĂŝĚĂŶĚŶŽƚĂďůĞƚŽďĞƌĞĐŽƵƉĞĚ ϭϰ͕ϰϯϴ ϭϬ͕ϳϬϯ ϭϮ͕ϴϯϲ ϭϰ͕ϬϴϮ ϭϭ͕ϬϮϰ ŝǀŝĚĞŶĚƐWĂŝĚ Ϯϰϳ͕ϵϱϵ ϮϮϯ͕ϱϮϲ Ϯϱϴ͕ϵϳϱ Ϯϳϭ͕ϲϴϲ ϯϬϵ͕ϭϰϭ WĂLJŵĞŶƚƐƚŽWE'ĂƐĞĚ^ƵƉƉůŝĞƌƐͬƌĞĚŝƚŽƌƐ ϭϱϯ͕ϮϬϬ ϮϰϬ͕ϰϬϮ ϰϴϵ͕ϳϱϰ ϰϰϬ͕ϯϯϭ ϯϭϰ͕ϲϵϵ WĂLJŵĞŶƚƐƚŽWE'dƌĂŝŶŝŶŐ/ŶƐƟƚƵƟŽŶƐ Ϯ͕ϵϬϴ Ϯ͕ϭϯϯ ϴ͕Ϭϳϲ ϲ͕Ϭϳϲ ϯ͕ϳϴϳ ^ƵƉĞƌĂŶŶƵĂƟŽŶWĂLJŵĞŶƚƐ ϰ͕ϯϯϲ ϱ͕ϭϳϲ ϱ͕ϴϳϯ ϲ͕ϱϬϵ ϲ͕ϰϳϱ ^ĂůĂƌŝĞƐ͕ďŽŶƵƐĞƐĂŶĚĂůůŽǁĂŶĐĞƐƉĂŝĚ ϭϭϴ͕ϯϲϲ ϭϰϰ͕ϴϬϴ ϭϲϲ͕Ϭϲϰ ϭϳϰ͕ϯϰϵ ϭϲϮ͕ϳϯϱ ŽŵŵĞƌĐŝĂůZĞŶƚĂůWĂLJŵĞŶƚƐ ϭϱ͕Ϭϯϴ ϭϯ͕Ϭϵϰ ϭϮ͕ϲϮϭ ϭϮ͕ϲϯϳ ϭϲ͕ϭϱϵ ZĞƐŝĚĞŶƟĂůZĞŶƚĂůWĂLJŵĞŶƚƐ Ϯ͕ϳϰϱ ϭϬ͕ϯϵϲ ϯϯ͕ϰϰϱ ϯϲ͕Ϯϭϵ Ϯϴ͕Ϯϵϰ tĂƚĞƌ ϭϲϵ ϭϰϰ ϲϵϯ ϭ͕Ϭϲϵ ϳϮϭ WŽǁĞƌ ϱ͕Ϭϲϳ ϱ͕ϱϰϰ ϴ͕ϳϳϭ ϭϬ͕ϱϭϳ ϴ͕ϱϯϵ dĞůĞĐŽŵŵƵŶŝĐĂƟŽŶ ϴ͕ϵϴϲ ϴ͕ϱϬϳ ϭϯ͕ϰϵϴ ϭϳ͕Ϭϭϲ ϭϱ͕Ϯϰϯ ŽŶĂƟŽŶƐĂŶĚ^ƉŽŶƐŽƌƐŚŝƉƐ ϯϭϳ ϯ͕ϴϳϵ ϰ͕ϭϵϮ ϵ͕Ϯϲϳ ϵ͕ϯϱϴ dŽƚĂů ϳϵϳ͕ϬϴϬ ϳϵϳ͕ϵϵϯ ϭ͕Ϯϯϯ͕Ϭϴϯ ϭ͕ϭϲϬ͕ϭϯϴ ϭ͕Ϭϳϳ͕ϯϳϬ 36 BSP Annual Report 2014 dD͛Ɛ͕ &dWŽ^͕^D^ĂŶŬŝŶŐΘ/ŶƚĞƌŶĞƚĂŶŬŝŶŐĐŽŶƟŶƵĞƚŽŐƌŽǁ͘ DŽĂůĂ/ƐůĂŶĚĞƌƐĨƌŽŵ&ŝũŝƉƌŽƵĚůLJƐŚŽǁŝŶŐƚŚĞŝƌŶĞǁ ĂƐLJĂƌĚ͘ OVERSEAS CHAIRMAN’S BRANCHES & SUBSIDIARIESREPORT BSP Annual Report 2014 37 29(56($6%5$1&+(6 68%6,',$5,(6 SUMMARY FINANCIAL INFORMATION /ŶϮϬϭϰĂƉƌŽũĞĐƚƚĞĂŵǁŝƚŚƌĞƐŽƵƌĐĞƐĨƌŽŵ&ŝũŝΘWE'ƐƵĐĐĞƐƐĨƵůůLJ ůůĂŵŽƵŶƚƐĞdžƉƌĞƐƐĞĚŝŶ<͛ϬϬϬ ŽƉĞŶĞĚƚŚĞĮƌƐƚ^W&ŝŶĂŶĐĞ;&ŝũŝͿ>ŝŵŝƚĞĚŽĸĐĞŝŶŽƵƌĞdžŝƐƟŶŐ Total Assets Total Turnover EĞƚWƌŽĮƚ ƉƌĞŵŝƐĞƐŝŶ^ĂŵĂďƵůĂ͘dŚŝƐĞdžĐŝƟŶŐĚĞǀĞůŽƉŵĞŶƚǁŝůůƐĞĞƚŚĞ >ŝĂďŝůŝƟĞƐ ŌĞƌdĂdž ^W'ƌŽƵƉďĞŝŶŐĂďůĞƚŽůŽŽŬĂŌĞƌĂĨĂƌďƌŽĂĚĞƌƌĂŶŐĞŽĨĐůŝĞŶƚƐ͘ ^ŽůŽŵŽŶ/ƐůĂŶĚƐ ϱϯϰ͕ϭϵϭ ϰϯϮ͕ϴϬϳ ϯϱ͕ϭϵϮ ϭϭ͕ϯϵϴ ƐƉĂƌƚŽĨƚŚŝƐĚĞǀĞůŽƉŵĞŶƚ͕ƚŚĞĞdžŝƐƟŶŐ^ĂŵĂďƵůĂďƌĂŶĐŚǁĂƐ &ŝũŝƌĂŶĐŚĞƐ Ϯ͕ϭϴϴ͕ϬϮϭ Ϯ͕Ϭϭϳ͕ϵϭϱ ϭϰϵ͕Ϭϳϵ Ϯϳ͕ϬϴϮ ^W>ŝĨĞ ϲϰϳ͕ϳϴϭ ϱϮϱ͕ϱϱϱ ϭϬϬ͕ϭϭϯ ϭϯ͕ϭϲϭ ƌĞĨƵƌďŝƐŚĞĚĂŶĚĐŽŶǀĞƌƚĞĚƚŽĂ^ĂůĞƐΘƵƐŝŶĞƐƐĞŶƚƌĞ͘ ^WĂƉŝƚĂů Ϯϰ͕ϯϴϯ ϭϳ͕ϯϮϮ ϴ͕ϱϰϬ ;ϴϭϬͿ ^WŽŶǀĞƌƟďůĞEŽƚĞ ϮϬ͕ϰϲϵ ϭϲ Ϯ͕ϭϲϭ Ϯ͕ϭϮϱ 2015 Initiatives and Challenges ^W&ŝŶĂŶĐĞ;WE'Ϳ ϱ͕ϰϴϬ ϲϲϬ Ϭ ;ϰϴϬͿ ^W&ŝŶĂŶĐĞ;&ŝũŝͿ ϱ͕ϳϲϬ ϴϰϰ Ϯϴ ;ϯϮϳͿ DƵĐŚŽĨƚŚĞďĂŶŬ͛ƐĨŽĐƵƐǁŝůůďĞĞŶƐƵƌŝŶŐƚŚĂƚŽƵƌĐŽƌĞďĂŶŬŝŶŐ ƵƉŐƌĂĚĞŝƐƐƵĐĐĞƐƐĨƵůĂƐƚŚŝƐǁŝůůƚƌĂŶƐĨŽƌŵŚŽǁƚŚĞďĂŶŬŽƉĞƌĂƚĞƐ FIJI BRANCH ĂŶĚƉƌŽǀŝĚĞƐĐƵƐƚŽŵĞƌƐĞƌǀŝĐĞ͘tĞǁŝůůĞŶƐƵƌĞƚŚĂƚƚŚŝƐĚŽĞƐŶŽƚ ĐŽŵƉƌŽŵŝƐĞŽƵƌĂďŝůŝƚLJƚŽĐŽŶƟŶƵĞƚŽƉƌŽǀŝĚĞŐƌĞĂƚƉƌŽĚƵĐƚƐ Economic Conditions ĂŶĚĐƵƐƚŽŵĞƌƐĞƌǀŝĐĞĂƐǁĞďƵŝůĚƚŽďĞŝŶŐƚŚĞďĞƐƚďĂŶŬŝŶ&ŝũŝ͘ &ŽůůŽǁŝŶŐĂďƵŽLJĂŶƚϮϬϭϯǁŚĞŶĂ'WŐƌŽǁƚŚƌĂƚĞŽĨϰ͘ϲйǁĂƐ SOLOMON ISLANDS BRANCH ĂĐŚŝĞǀĞĚ͕ϮϬϭϰŝƐĞdžƉĞĐƚĞĚƚŽĐŽŶƟŶƵĞƚŚĂƚŵŽŵĞŶƚƵŵǁŝƚŚ ĂĨŽƌĞĐĂƐƚŐƌŽǁƚŚƌĂƚĞŽĨϰ͘Ϯй͘dŚŝƐŐƌŽǁƚŚŝƐĞdžƉĞĐƚĞĚƚŽďĞ /ƚŐŝǀĞƐŵĞŐƌĞĂƚƉůĞĂƐƵƌĞƚŽƌĞƉŽƌƚƚŚĂƚϮϬϭϰŚĂƐďĞĞŶĂŶŽƚŚĞƌ ďƌŽĂĚůLJďĂƐĞĚǁŝƚŚƐƵŐĂƌ͕ƚŽƵƌŝƐŵĂŶĚǁŽŽĚĐŚŝƉƐĐŽŶƚƌŝďƵƟŶŐ͘ ƐƵĐĐĞƐƐĨƵůLJĞĂƌĨŽƌ^W^ŽůŽŵŽŶ/ƐůĂŶĚƐĂŶĚŝƚŝƐĞƐƉĞĐŝĂůůLJƚŚĞ ŽŶƐƵŵƉƟŽŶƐƉĞŶĚŝŶŐĂŶĚŝŶǀĞƐƚŵĞŶƚŝŶĚŝĐĂƚŽƌƐĂƉƉĞĂƌƚŽďĞ ĐĂƐĞĂŌĞƌƐŽŵĞŽĨƚŚĞĐŚĂůůĞŶŐĞƐƚŚĞĐŽƵŶƚƌLJŚĂƐĨĂĐĞĚĚƵƌŝŶŐ ǀĞƌLJƐƚƌŽŶŐ͘ ƚŚĞLJĞĂƌ͘ /ŶŇĂƟŽŶƌĞŵĂŝŶƐůŽǁĂƚϭ͘ϱй͘dŚŝƐŝƐƉĂƌƟĂůůLJĚƵĞƚŽƚŚĞŝŶƚƌŽĚƵĐƟŽŶ 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ƚŽƉƌŽǀŝŶĐŝĂůĂƌĞĂƐŽĨƚŚĞ^ŽůŽŵŽŶ/ƐůĂŶĚƐƚŚŝƐŶƵŵďĞƌǁŝůů ůĂƚĞƐƚǀĞƌƐŝŽŶŝƐƉƌŽŐƌĞƐƐŝŶŐǁĞůů͘dŚŝƐǁŝůůƉƌŽǀŝĚĞŵŽƌĞĞĸĐŝĞŶƚ ŐƌŽǁ͘ ƐĞƌǀŝĐĞƐĨŽƌŽƵƌĐůŝĞŶƚƐĂŶĚŵŽƌĞŇĞdžŝďůĞƉƌŽĚƵĐƚƐ͘dŚŝƐƵƉŐƌĂĚĞ ŝƐŶŽǁĞdžƉĞĐƚĞĚƚŽďĞĨƵůůLJĐŽŵƉůĞƚĞĚŝŶKĐƚŽďĞƌ͕ϮϬϭϱ͘ 38 BSP Annual Report 2014 29(56($6%5$1&+(6 68%6,',$5,(6 /ŶϮϬϭϰĂƉƌŽũĞĐƚƚĞĂŵǁŝƚŚƌĞƐŽƵƌĐĞƐĨƌŽŵ&ŝũŝΘWE'ƐƵĐĐĞƐƐĨƵůůLJŽƉĞŶĞĚ ƚŚĞĮƌƐƚ^W&ŝŶĂŶĐĞ;&ŝũŝͿ>ŝŵŝƚĞĚŽĸĐĞŝŶŽƵƌĞdžŝƐƟŶŐƉƌĞŵŝƐĞƐŝŶ^ĂŵĂďƵůĂ͘ /ĂŵĂůƐŽƉůĞĂƐĞĚƚŽĂĚǀŝƐĞƚŚĞĐŽŵŵƵŶŝƚLJŝŶǀŽůǀĞŵĞŶƚŽĨƚŚĞ Share Broking ^WƐƚĂī͘ ĂĐŚďƌĂŶĐŚƐĞůĞĐƚĞĚĂůŽĐĂůĐŽŵŵƵŶŝƚLJƉƌŽũĞĐƚƚŽ ĂƐƐŝƐƚƚŚŝƐLJĞĂƌĂŶĚƚŚĞƐĞƉƌŽũĞĐƚƐǀĂƌŝĞĚĨƌŽŵtĂƚĞƌ^ƚŽƌĂŐĞĂŶĚ ͻ tĞŚĂǀĞƌĞƚĂŝŶĞĚŽƵƌĚŽŵŝŶĂŶƚŵĂƌŬĞƚƉŽƐŝƟŽŶůŽĐĂůůLJĂŶĚ ^ĂŶŝƚĂƌLJĂƐƐŝƐƚĂŶĐĞƚŽůŽĐĂůƐĐŚŽŽůƐ͕ĂŶĚĂƐƐŝƐƚĂŶĐĞƚŽƐƉŽƌƟŶŐ ǁĞƌĞƐĞůĞĐƚĞĚďLJKŝů^ĞĂƌĐŚƚŽŵĂŶĂŐĞƚŚĞŝƌ^ŚĂƌĞWƵƌĐŚĂƐĞ ĐŽŵŵƵŶŝƟĞƐ͘ WůĂŶŝŶϮϬϭϯ͘ĚĚŝƟŽŶĂůůLJǁĞŚĂǀĞĚŽŵŝŶĂƚĞĚƚŚĞǀŽůƵŵĞŽĨ ƚƌĂĚĞŝŶƚŚĞŽŶŐŽŝŶŐ^W^ŚĂƌĞƵLJͲĂĐŬƐĐŚĞŵĞ͘ dŚŝƐĂƐƐŝƐƚĂŶĐĞǁĂƐŐƌĞĂƚůLJĂƉƉƌĞĐŝĂƚĞĚďLJĂůůƚŚĂƚƌĞĐĞŝǀĞĚŝƚ͘ ͻ KƵƌƚŽƚĂůďƌŽŬĞƌĂŐĞĨĞĞƐŐƌĞǁďLJϱϳйŝŶϮϬϭϰĐŽŵƉĂƌĞĚƚŽ ůƐŽƉůĞĂƐŝŶŐƚŚŝƐLJĞĂƌǁĂƐƚŚĂƚ^WƐƚĂīĐŽŶĚƵĐƚĞĚƚŚĞŝƌŽǁŶ ƚŚĞƉƌĞǀŝŽƵƐLJĞĂƌ͘ ĨƵŶĚƌĂŝƐŝŶŐĂŶĚũŽŝŶƚůLJĂƐƐŝƐƚĞĚƚŚĞZĞĚƌŽƐƐ,ĂŶĚŝĐĂƉƉĞĚ^ĐŚŽŽů ͻ dŚĞƐƚƌĂƚĞŐLJƚŽĞŶŐĂŐĞǁŝƚŚŵŽƌĞĐŽƌƉŽƌĂƚĞĐƵƐƚŽŵĞƌƐŚĂƐ ŝŶ,ŽŶŝĂƌĂǁŝƚŚĂĚĚŝƟŽŶĂůtĂƚĞƌ^ƚŽƌĂŐĞĂŶĚĐŽŶĐƌĞƚĞƉĂƚŚƐ͘ ǁŽƌŬĞĚ͕ǁŚĞƌĞǁĞŵĂŶĂŐĞĚǀĞƌLJůĂƌŐĞůŝŶĞƐŽĨƐŚĂƌĞƐĨŽƌďŽƚŚ ĚŽŵĞƐƟĐĂŶĚŽīƐŚŽƌĞŝŶǀĞƐƚŽƌƐĂƚǀĂƌŝŽƵƐƟŵĞƐĚƵƌŝŶŐƚŚĞLJĞĂƌ͘ ϮϬϭϰƐĂǁĂŶƵŵďĞƌŽĨƐƚĂīĐŚĂŶŐĞƐĂŶĚƐĂǁƚŚĞĂƉƉŽŝŶƚŵĞŶƚ KĨƐŝŐŶŝĮĐĂŶĐĞǁĂƐƚŚĂƚǁĞŵĂŶĂŐĞĚƚƌĂŶƐĂĐƟŽŶƐĨŽƌŝŶƐƟƚƵƟŽŶƐ ĂŶĚƉƌŽŵŽƟŽŶŽĨϯŶĞǁĂŶŬDĂŶĂŐĞƌƐ͘ ĂƐĨĂƌĂǁĂLJĂƐ>ŽŶĚŽŶĂŶĚEĞǁzŽƌŬ͘/ƚŝƐŽƵƌŝŶƚĞŶƟŽŶƚŽŐƌŽǁ ƚŚŝƐƉĂƌƚŽĨŽƵƌďƵƐŝŶĞƐƐŐŽŝŶŐĨŽƌǁĂƌĚ͘ ƐǁĞŵŽǀĞŝŶƚŽϮϬϭϱŽƵƌĨŽĐƵƐǁŝůůďĞŽŶĚĞǀĞůŽƉŝŶŐŽƵƌ ͻ WƌŝĐĞĐŽŵƉĞƟƟŽŶǁĂƐĂƚƟŵĞƐĮĞƌĐĞĚƵƌŝŶŐƚŚĞLJĞĂƌĂŶĚŝƚƐ ƌĞůĂƟŽŶƐŚŝƉƐǁŝƚŚŽƵƌƵƐŝŶĞƐƐĐƵƐƚŽŵĞƌƐ͕ŝŵƉƌŽǀŝŶŐĐƵƐƚŽŵĞƌ ĞdžƉĞĐƚĞĚƚŽƌĞŵĂŝŶĂĨĞĂƚƵƌĞĨŽƌƚŚĞLJĞĂƌĂŚĞĂĚ͘ ƐĞƌǀŝĐĞƚŽĂůůĂŶĚĞdžƉĂŶĚŝŶŐĂŶĚŝŶƚƌŽĚƵĐŝŶŐŽƵƌDŽďŝůĞĂŶŬŝŶŐ ƐĞƌǀŝĐĞƐƚŽĂƐŵĂŶLJĐƵƐƚŽŵĞƌƐĂƐƉŽƐƐŝďůĞ͘/ĂŵƐƵƌĞŝƚǁŝůůďĞ Funds Management ĂŶŽƚŚĞƌĞdžĐŝƟŶŐĂŶĚƐƵĐĐĞƐƐĨƵůLJĞĂƌ͘ ͻ dŽƚĂů;&hDͿ&ƵŶĚƐhŶĚĞƌDĂŶĂŐĞŵĞŶƚŐƌĞǁďLJϲϯйĚƵƌŝŶŐ BSP CAPITAL LIMITED ϮϬϭϰŝŶĐƌĞĂƐŝŶŐĨƌŽŵ<ϳϮϵŵŝůůŝŽŶĂƚLJĞĂƌĞŶĚϮϬϭϯƚŽ<ϭ͘ϭϵ ďŝůůŝŽŶĂƐĂƚĞŶĚĞĐĞŵďĞƌϮϬϭϰ͘ dŚĞƌĞƐƵůƚƐĨŽƌϮϬϭϰǁĞƌĞĂŶŝŵƉƌŽǀĞŵĞŶƚĨƌŽŵƉƌŝŽƌLJĞĂƌ͘ĐƌŽƐƐ ͻ dŚĞŵŝdžŽĨ&hDŝƐďƌŽŬĞŶĚŽǁŶŝŶƚŽ/ŶƐƟƚƵƟŽŶĂů;ϵϭйŽĨ ĂůůϯŽĨŽƵƌŵĂũŽƌďƵƐŝŶĞƐƐĞƐ;^ŚĂƌĞƌŽŬŝŶŐ͕&ƵŶĚƐDĂŶĂŐĞŵĞŶƚ &hDͿĂŶĚZĞƚĂŝůĐƵƐƚŽŵĞƌƐ;ϵйŽĨ&hDͿ͘tŚŝůƐƚƚŚĞ/ŶƐƟƚƵƟŽŶĂů ĂŶĚŽƌƉŽƌĂƚĞĚǀŝƐŽƌLJͿǁĞƐĂǁǀĞƌLJƐƚƌŽŶŐĂŶĚƉŽƐŝƟǀĞŐƌŽǁƚŚ ƐĞŐŵĞŶƚŐƌĞǁĂƚĂĨĂƐƚĞƌƌĂƚĞ͕ŝƚǁĂƐǀĞƌLJƉůĞĂƐŝŶŐƚŽƐĞĞ ƌĞůĂƟǀĞƚŽϮϬϭϯ͘dŚŝƐŝƐĞƐƉĞĐŝĂůůLJƉůĞĂƐŝŶŐŐŝǀĞŶƚŚĞĚŝĸĐƵůƚŵĂƌŬĞƚ ŐƌŽǁƚŚŝŶďŽƚŚĐƵƐƚŽŵĞƌƐĞŐŵĞŶƚƐ͘ ĐŽŶĚŝƟŽŶƐĂŶĚŝŶƐŽŵĞĐĂƐĞƐƚŚĞŝŶƚĞŶƐŝƚLJŽĨƚŚĞĐŽŵƉĞƟƟŽŶ ͻ dŚĞŵĂƌŬĞƚĐŽŶƟŶƵĞƐƚŽďĞǀĞƌLJĐŽŵƉĞƟƟǀĞ͕ŚŽǁĞǀĞƌŽƵƌ ƚŚƌŽƵŐŚŽƵƚƚŚĞLJĞĂƌ͘ ĞdžƉĞƌƟƐĞ͕ŚŝŐŚĞŶĚŽƉĞƌĂƟŶŐƐLJƐƚĞŵƐĂŶĚƌŽďƵƐƚĐƵƐƚŽŵĞƌ ĐŽŵŵƵŶŝĐĂƟŽŶŵĞĂŶƐǁĞĐĂŶĞdžƉĞĐƚĨƵƌƚŚĞƌŐƌŽǁƚŚĚƵƌŝŶŐ ^WĂƉŝƚĂů͛ƐƌĞƉƵƚĂƟŽŶĂŶĚƚŚĂƚŽĨŝƚƐƐƚĂīĐŽŶƟŶƵĞƐƚŽŐƌŽǁ͕ ϮϬϭϱ͘ ĂŶĚǁĞĂƌĞŝŶĐƌĞĂƐŝŶŐůLJĂƐŬĞĚƚŽƉĂƌƟĐŝƉĂƚĞŝŶŵŽƌĞĂŶĚŵŽƌĞ ƚƌĂŶƐĂĐƟŽŶƐŝŶWE'ĂŶĚŝŶƚŚĞƌĞŐŝŽŶ͘ Corporate Advisory KƵƌĂďŝůŝƚLJƚŽĚĞůŝǀĞƌĂƐĂƐƚĂŶĚͲĂůŽŶĞŝŶǀĞƐƚŵĞŶƚďĂŶŬŽƌĂƐ ƉĂƌƚŽĨƚŚĞǁŝĚĞƌ^W'ƌŽƵƉĂůůŽǁƐƵƐƚŽƚĂŝůŽƌƐŽůƵƟŽŶƐĨŽƌĂůů ͻ tĞŚĂĚĂŶŽƵƚƐƚĂŶĚŝŶŐLJĞĂƌŝŶϮϬϭϰǁŚĞƌĞƌĞǀĞŶƵĞǁĂƐƵƉ ŽƵƌĐƵƐƚŽŵĞƌƐ͘ ďLJϯϳϬйŽŶƚŚĞƉƌĞǀŝŽƵƐLJĞĂƌ͛ƐƌĞƐƵůƚƐ͘ ͻ KĨƐŝŐŶŝĨŝĐĂŶĐĞĚƵƌŝŶŐϮϬϭϰǁĞǁĞƌĞŵĂŶĚĂƚĞĚƚŽĂĐƚĂƐ ĐŽͲĂĚǀŝƐĞƌƚŽ/ŶƚĞƌKŝůŽŶƚŚĞƐƵĐĐĞƐƐĨƵůƐĂůĞŽĨƚŚĞŝƌŵŝĚƐƚƌĞĂŵ ĂŶĚĚŽǁŶƐƚƌĞĂŵĂƐƐĞƚƐŝŶWE'ƚŽWƵŵĂ ŶĞƌŐLJ͘dŚŝƐƚƌĂŶƐĂĐƟŽŶ ǁĂƐǀĂůƵĞĚĂƚh^ΨϱϮϱ͘ϲŵŝůůŝŽŶĂŶĚǁĂƐĐŽŵƉůĞƚĞĚŽŶ:ƵŶĞϮϬϭϰ͘ BSP Annual Report 2014 39 29(56($6%5$1&+(6 68%6,',$5,(6 ͻ dŚĞĐƵƌƌĞŶƚďƵƐŝŶĞƐƐĞŶǀŝƌŽŶŵĞŶƚŝƐƉŽƐŝƟǀĞĨŽƌDΘĂŶĚ Insurance Market ĚǀŝƐŽƌLJǁŽƌŬ͘^WĂƉŝƚĂůŚĂƐĂƐƚƌŽŶŐƌĞƉƵƚĂƟŽŶĂŶĚŝƐǁĞůů ƉůĂĐĞĚǁŝƚŚĂƌŽďƵƐƚŶĞǁďƵƐŝŶĞƐƐƉŝƉĞůŝŶĞĨŽƌƚŚĞLJĞĂƌĂŚĞĂĚ͘ dŚĞ>ŝĨĞŝŶƐƵƌĂŶĐĞŵĂƌŬĞƚĐŽŶƟŶƵĞƐƚŽďĞĚŽŵŝŶĂƚĞĚďLJĞŶĚŽǁŵĞŶƚ ƉƌŽĚƵĐƚƐ͘dŚĞƌĞĂƌĞƚǁŽŵĂũŽƌƉůĂLJĞƌƐ͘^W>ŝĨĞŵĂƌŬĞƚƐŚĂƌĞŽŶ BSP LIFE LIMITED ŝŶĨŽƌĐĞĂŶŶƵĂůƉƌĞŵŝƵŵďĂƐŝƐ;ĞdžĐůƵĚŝŶŐƐŝŶŐůĞƉƌĞŵŝƵŵƐͿǁĂƐĂƚ ϱϴйĂƚƚŚĞĞŶĚŽĨϮϬϭϯ͘dŚĞĨŽĐƵƐŽŶŽƵƌƐLJƐƚĞŵĐŚĂŶŐĞŝŶϮϬϭϰ Overview ŵĞĂŶƚƚŚĂƚǁĞŚĂĚƚŽƉƌŽƉĞƌůLJƉƌŝŽƌŝƟƐĞŽƵƌƉƌŽĚƵĐƚŝŶŝƟĂƟǀĞƐ ĂƐǁĞƉƵƐŚƚŽůĞĂĚŝŶƉƌŽĚƵĐƚŝŶŶŽǀĂƟŽŶ͘ dŚĞϮϬϭϰƌĞƐƵůƚƐŝŶďŽƚŚĮŶĂŶĐŝĂůĂŶĚƐƚƌĂƚĞŐŝĐĂĐƟŽŶƐƚŚĂƚ dŚĞŚĞĂůƚŚŝŶƐƵƌĂŶĐĞŵĂƌŬĞƚƌĞŵĂŝŶƐǀĞƌLJĐŽŵƉĞƟƟǀĞǁŝƚŚ ǁĞƌĞƵŶĚĞƌƚĂŬĞŶǁĞƌĞŵŝdžĞĚďƵƚƉůĞĂƐŝŶŐ͘KƵƌƐƚƌŽŶŐĮŶĂŶĐŝĂů ĨŽƵƌĂĐƟǀĞĐŽŵƉĞƟƚŽƌƐ͘^W,ĞĂůƚŚdĞƌŵ>ŝĨĞŵĂƌŬĞƚƐŚĂƌĞŽŶ ƉĞƌĨŽƌŵĂŶĐĞƌĞĐŽƌĚĞĚŝŶϮϬϭϯŝŶŽƵƌ>ŝĨĞďƵƐŝŶĞƐƐĐŽŶƟŶƵĞĚ ƉƌĞŵŝƵŵŝŶĐŽŵĞǁĂƐϰϳйǁŚŝůĞƚŚĞDĞĚŝĐĂůŵĂƌŬĞƚƐŚĂƌĞǁĂƐ ŝŶƚŽϮϬϭϰǁŝƚŚƌĞƐƵůƚƐĞdžĐĞĞĚŝŶŐƚĂƌŐĞƚƐ͘dŚĞ,ĞĂůƚŚďƵƐŝŶĞƐƐ ϯϰйŝŶϮϬϭϰ͖ŵĞĚŝĐĂůĞdžƉĞƌŝĞŶĐŝŶŐŐƌŽǁƚŚŽĨϱйŽǀĞƌϮϬϭϮǁŚŝůĞ ŚŽǁĞǀĞƌĞdžƉĞƌŝĞŶĐĞĚĐŚĂůůĞŶŐĞƐĂŶĚǁĂƐĂīĞĐƚĞĚďLJŽŶĞͲŽī dĞƌŵ>ŝĨĞĚĞĐůŝŶĞĚďLJϮйďƵƚƐƟůůĚŽŵŝŶĂƟŶŐƚŚĞŵĂƌŬĞƚ͘ ŚŝŐŚĐůĂŝŵƐĞǀĞŶƚƐ͘^ŝŐŶŝĮĐĂŶƚĚĞǀĞůŽƉŵĞŶƚƐǁĞƌĞĂůƐŽŶŽƚĞĚŝŶ ŽƵƌŬĞLJƐƚƌĂƚĞŐŝĐŝŶŝƟĂƟǀĞƐ͘ Strategic Initiatives ϮϬϭϰƐĂǁƚŚĞŝŵƉůĞŵĞŶƚĂƟŽŶĂŶĚŽŶͲŐŽŝŶŐĞdžĞĐƵƟŽŶŽĨŵĂũŽƌ ŝŶŝƟĂƟǀĞƐƉůĂŶŶĞĚĨŽƌƚŚĞLJĞĂƌŝŶĐůƵĚŝŶŐ͗ /ŶϮϬϭϱ͕^W>ŝĨĞǁŝůůĐŽŶƟŶƵĞƚŽďƵŝůĚŽŶƚŚĞƐƚƌŽŶŐƌĞƐƵůƚƐ ĂĐŚŝĞǀĞĚŝŶƚŚĞƌĞĐĞŶƚLJĞĂƌƐ͘^ƚƌĂƚĞŐŝĐ/ŶŝƟĂƟǀĞƐƵŶĚĞƌǁĂLJŝŶĐůƵĚĞ͗ ͻ dŚĞŝŵƉůĞŵĞŶƚĂƟŽŶŽĨƚŚĞ,ĞĂůƚŚĨƵŶĐƟŽŶĂůŝƟĞƐŽĨŽƵƌŶĞǁ ŽƌĞ/ŶƐƵƌĂŶĐĞ^LJƐƚĞŵŝŶ:ƵŶĞϮϬϭϰ͘ ͻ /ŵƉůĞŵĞŶƚĂƟŽŶŽĨŽƵƌŶĞǁĐŽƌĞŝŶƐƵƌĂŶĐĞƐLJƐƚĞŵƐĨŽƌŽƵƌ>ŝĨĞ ͻ dŚĞĐŽŶƟŶƵĞĚĂŐŐƌĞƐƐŝǀĞŐƌŽǁƚŚƐƚĂŶĐĞŽŶďŽƚŚ>ŝĨĞĂŶĚ,ĞĂůƚŚ ďƵƐŝŶĞƐƐ͘dŚĞŽƌĞ^LJƐƚĞŵƐŚĂŶŐĞĞdžĞƌĐŝƐĞǁŝůůƌĞƐƵůƚŝŶ EĞǁƵƐŝŶĞƐƐƚŚƌŽƵŐŚŐĞŶĐLJ͕ƌŽŬĞƌƐĂŶĚĚŝƐƚƌŝďƵƟŽŶƚŚƌŽƵŐŚ ƐŝŐŶŝĮĐĂŶƚĐŚĂŶŐĞƐƚŽŽƵƌĐŽƌĞŝŶƐƵƌĂŶĐĞďƵƐŝŶĞƐƐƉƌŽĐĞƐƐĞƐ ƚŚĞĂŶŬ͘dŚĞ ĂƐLJhŶƐĞĐƵƌĞĚWĞƌƐŽŶĂů>ŽĂŶƉƌŽĚƵĐƚůĂƵŶĐŚĞĚ ŝŵƉĂĐƟŶŐŽŶŽƌŐĂŶŝƐĂƟŽŶƐƚƌƵĐƚƵƌĞĂŶĚŚƵŵĂŶƌĞƐŽƵƌĐĞƐ͘ ƚŚƌŽƵŐŚƚŚĞĂŶŬĐŚĂŶŶĞůĚŝĚǁĞůůǁŝƚŚŝŶĨŽƌĐĞĂƚΨϬ͘ϴŵǁŝƚŚ ĸĐŝĞŶĐLJŐĂŝŶƐĂƌĞƚŽďĞƌĞĂůŝƐĞĚ͘ ŽƉƉŽƌƚƵŶŝƟĞƐƚŽŐƌŽǁƚŚŝƐĨƵƌƚŚĞƌ͘ ͻ ŽŶƟŶƵŝŶŐƚŽŵĂŝŶƚĂŝŶƚŚĞĐƵƌƌĞŶƚĂŐŐƌĞƐƐŝǀĞŐƌŽǁƚŚƐƚĂŶĐĞ ͻ dŚĞĨŽĐƵƐŽŶďƵƐŝŶĞƐƐƋƵĂůŝƚLJĂŶĚĐŽŶƐĞƌǀĂƟŽŶĞīŽƌƚƐǁŚŝĐŚ ŽŶďŽƚŚ>ŝĨĞĂŶĚ,ĞĂůƚŚŶĞǁďƵƐŝŶĞƐƐƚŚƌŽƵŐŚƉƌŽĚƵĐƚŝŶŶŽǀĂƟŽŶ ƐĂǁƐƚƌŽŶŐŐƌŽǁƚŚŝŶŝŶĨŽƌĐĞĂŶĚƚŚĞĂĐŚŝĞǀĞŵĞŶƚŽĨĂŶĂůůͲƟŵĞ ĂŶĚŽŶͲŐŽŝŶŐĐŚĂŶŶĞůĚĞǀĞůŽƉŵĞŶƚǁŝƚŚĨŽĐƵƐŽŶďƵƐŝŶĞƐƐ ŚŝŐŚƉĞƌƐŝƐƚĞŶĐLJƌĂƚĞ͘ ƋƵĂůŝƚLJĂŶĚďƵƐŝŶĞƐƐƌĞƚĞŶƟŽŶƚŽĞŶƐƵƌĞƚŚĂƚǁĞƉƌŽƚĞĐƚŽƵƌ ͻ dŚĞĐŽŵŵĞŶĐĞŵĞŶƚŽĨƚŚĞΨϭϬŵĞŶŝƐŽŶͬƵŶĐĂŶŐĂƚĞĚ ŵĂƌŬĞƚůĞĂĚĞƌƐŚŝƉƉŽƐŝƟŽŶ͘ ĐŽŵŵƵŶŝƚLJĂĐĐŽŵŵŽĚĂƟŽŶƉƌŽũĞĐƚǁŚŝĐŚŝƐƉƌŽŐƌĞƐƐŝŶŐǁĞůů ͻ dŚĞƌŽůůŽƵƚŽĨǀĂƌŝŽƵƐŝŶŝƟĂƟǀĞƐƚŽŝŵƉƌŽǀĞƚŚĞĮŶĂŶĐŝĂů ǁŝƚŚŽƵƚĂŶLJŵĂũŽƌƐĞƚďĂĐŬƐ͕ǁŝƚŚǁŽƌŬƐƚŽďĞĐŽŵƉůĞƚĞĚďLJ ƉĞƌĨŽƌŵĂŶĐĞŽĨŽƵƌ,ĞĂůƚŚďƵƐŝŶĞƐƐ͘ :ƵůLJϮϬϭϱ͘ ͻ dŚĞůŽǁŝŶƚĞƌĞƐƚƌĂƚĞĞŶǀŝƌŽŶŵĞŶƚĐŽŶƟŶƵĞƐƚŽŶĞŐĂƟǀĞůLJ ͻ dŚĞƌĞƐƚƌƵĐƚƵƌŝŶŐŽĨƚŚĞƌĞŐŝŽŶĂůďƵƐŝŶĞƐƐǁŚĞƌĞďLJĂůůƌĞŐŝŽŶĂů ŝŵƉĂĐƚƚŚĞŝŶǀĞƐƚŵĞŶƚƌĞƚƵƌŶŽŶĂůĂƌŐĞĐŚƵŶŬŽĨŽƵƌŝŶǀĞƐƚŵĞŶƚ ďĂůĂŶĐĞƐ;ƐƚĂƚƵƚŽƌLJĨƵŶĚ;^&ͿϮƉŽůŝĐŝĞƐͿǁĞƌĞƚƌĂŶƐĨĞƌƌĞĚƚŽ&ŝũŝ ƉŽƌƞŽůŝŽƚŚĂƚŝƐŝŶĮdžĞĚŝŶƚĞƌĞƐƚƐĞĐƵƌŝƟĞƐ͘tĞǁŝůůĐŽŶƟŶƵĞ ĨƵŶĚƐĂƐƉĞƌƚŚĞZĞŐŝŽŶĂů džŝƚƐƚƌĂƚĞŐLJĂƉƉƌŽǀĞĚďLJƚŚĞďŽĂƌĚ͘ ƚŽƉƵƌƐƵĞŐƌŽǁƚŚĂƐƐĞƚƐŽƉƉŽƌƚƵŶŝƟĞƐǁŚŝůĞŵĂdžŝŵŝƐŝŶŐƌĞƚƵƌŶƐ ͻ dŚĞĐŽŶƟŶƵĞĚĨŽĐƵƐŽŶŝŶǀĞƐƚŵĞŶƚƐƐƵďƐŝĚŝĂƌŝĞƐ͛ƉĞƌĨŽƌŵĂŶĐĞƐ ĨƌŽŵŽƵƌĞdžŝƐƟŶŐŵĂũŽƌƉƌŝǀĂƚĞĞƋƵŝƚLJŝŶǀĞƐƚŵĞŶƚƐ͘ ƌĞƐƵůƟŶŐŝŶƚŚĞŵĂƌŬĞĚŝŵƉƌŽǀĞŵĞŶƚŝŶƚŚĞŝƌǀĂůƵĞƐ͘ ͻ ŽŶƟŶƵŝŶŐƚŽŝŵƉƌŽǀĞŽƵƌƌŝƐŬŵĂŶĂŐĞŵĞŶƚƉƌĂĐƟĐĞƐĂŶĚƚŚĞ ĚĞǀĞůŽƉŵĞŶƚŽĨƐŬŝůůƐĂŶĚĞdžƉĞƌƟƐĞǁŝƚŚŝŶƚŚĞ/ŶƐƵƌĂŶĐĞ tĞŚĂĚĂƐƚƌŽŶŐϭϬйŐƌŽǁƚŚŝŶ,ĞĂůƚŚŶĞǁďƵƐŝŶĞƐƐĂŶĚĂϱй ďƵƐŝŶĞƐƐĞŶƐƵƌŝŶŐƚŚĂƚĂƉƉƌŽƉƌŝĂƚĞůLJƐŬŝůůĞĚƐƚĂīƉƌŽǀŝĚĞƐĞƌǀŝĐĞ ŐƌŽǁƚŚŝŶ>ŝĨĞŶĞǁďƵƐŝŶĞƐƐ͘dŚĞĨŽĐƵƐŽŶĐŽŶƐĞƌǀĂƟŽŶƐĂǁ ŝŶĐƌŝƟĐĂůĂƌĞĂƐ͘ ƚŚĞ>ŝĨĞŝŶĨŽƌĐĞƉŽƌƞŽůŝŽŝŶĐƌĞĂƐŝŶŐďLJ&Ψϯ͘ϰŵ͘dŚĞϭϯƚŚŵŽŶƚŚ ͻ ŽŶƟŶƵŝŶŐƚŽŝŵƉƌŽǀĞĐƵƐƚŽŵĞƌĞdžƉĞƌŝĞŶĐĞ;ƌĞƚĞŶƟŽŶĂŶĚ ƉĞƌƐŝƐƚĞŶĐLJƌĂƚĞŽĨϳϱйƐůŝŐŚƚůLJŝŵƉƌŽǀĞĚŽǀĞƌƚŚĞLJĞĂƌĂŶĚǁĂƐ ůŽLJĂůƚLJͿ͘WƌŽƚĞĐƚĂŶĚŝŵƉƌŽǀĞ^W>ŝĨĞ͛ƐďƌĂŶĚƉŽƐŝƟŽŶ͘ŽŶƟŶƵĂůůLJ ĂŶĂůůͲƟŵĞŚŝŐŚĂĐŚŝĞǀĞŵĞŶƚ͘ ĐŚĂůůĞŶŐĞĂŶĚŝŵƉƌŽǀĞŝŶƚĞƌŶĂůƉƌŽĐĞƐƐĞƐĂƐƚŽƌĞĚƵĐĞďƵƐŝŶĞƐƐ ƌŝƐŬ͕ŝŵƉƌŽǀĞƐĞƌǀŝĐĞĂŶĚƌĞĚƵĐĞĐŽƐƚƐ͘ Financial Performance ͻ ZĞƚĂŝŶŝŶŐ͕ĂƩƌĂĐƟŶŐĂŶĚĚĞǀĞůŽƉŝŶŐŬĞLJĞŵƉůŽLJĞĞƐ͘ůŝŐŶŝŶŐ ũŽďƐƚŽƌĞǀĞŶƵĞŐĞŶĞƌĂƟŽŶ͕ƐĞƌǀŝĐĞŽƌĐŽƐƚĨŽĐƵƐ͘ĞůŝǀĞƌ ĨƵŶĚĂŵĞŶƚĂůŝŶƐƵƌĂŶĐĞŬŶŽǁůĞĚŐĞĂŶĚƐŬŝůůƐ͕ƵƉŐƌĂĚĞŬŶŽǁůĞĚŐĞ dŚĞ/ŶƐƵƌĂŶĐĞ'ƌŽƵƉEWdĨŽƌϮϬϭϰǁĂƐ&Ψϵ͘ϵŵ͕&ΨϬ͘ϲŵĂďŽǀĞ ŝŶƐĂůĞƐĂŶĚƐĞƌǀŝĐĞĂŶĚĨŽƐƚĞƌŝŶŐĂĐƵůƚƵƌĞĐŽŵŵŝƩĞĚƚŽ ďƵĚŐĞƚ͘ŌĞƌĂĚũƵƐƚŵĞŶƚĨŽƌŶŽŶͲŽƉĞƌĂƟŶŐŝƚĞŵƐEWdŝƐ&Ψϭϭŵ͕ ƚĞĂŵǁŽƌŬĂŶĚĂĐĐŽƵŶƚĂďŝůŝƚLJ͘ &Ψϭ͘ϳŵĂďŽǀĞďƵĚŐĞƚ͘dŚĞ>ŝĨĞďƵƐŝŶĞƐƐEWdǁĂƐ&ΨϭϬ͘ϲŵ ĂŐĂŝŶƐƚĂďƵĚŐĞƚŽĨ&Ψϵ͘ϭŵǁŚŝůĞƚŚĞ,ĞĂůƚŚďƵƐŝŶĞƐƐƐŚŽǁĞĚ ĂůŽƐƐŽĨ&ΨϲϳϴŬĂŐĂŝŶƐƚĂďƵĚŐĞƚĞĚƉƌŽĮƚŽĨ&ΨϮϲϱŬ͘dŚĞŚŝŐŚ ĐůĂŝŵƐĞdžƉĞƌŝĞŶĐĞĚƌŽǀĞƚŚĞ,ĞĂůƚŚďƵƐŝŶĞƐƐůŽƐƐĞƐ͘ 40 BSP Annual Report 2014 29(56($6%5$1&+(6 68%6,',$5,(6 BSP LIFE MANAGEMENT TEAM Seated (L-R):DƵŶĞŶĚƌĂEĂŝĚƵŚŝĞĨ&ŝŶĂŶĐŝĂůKĸĐĞƌ DĂůĂŬĂŝEĂŝLJĂŐĂDĂŶĂŐŝŶŐŝƌĞĐƚŽƌ'ůĞŶŝƐzĞĞ'D>ĞŐĂů Standing (L-R): DŝĐŚĂĞůEĂĐŽůĂ'DŝƐƚƌŝďƵƟŽŶΘ^ĂůĞƐ ĂŶĚWƌĂŵĞƐŚ^ŚĂƌŵĂ'D/ŶǀĞƐƚŵĞŶƚƐ BSP FIJI MANAGEMENT TEAM Seated (L - R):ƐŚůĞŝŐŚDĂƚŚĞƐŽŶŚŝĞĨZŝƐŬKĸĐĞƌůǀŝŶĂůŝ 'D>ĞŐĂů<ĞǀŝŶDĐĂƌƚŚLJŽƵŶƚƌLJDĂŶĂŐĞƌĞĐŝůƌŽǁŶĞ 'DŽƌƉŽƌĂƚĞΘ/ŶƚĞƌŶĂƟŽŶĂů͘ Standing (L - R): ZĂǀŝŶĚƌĂ^ŝŶŐŚ'DZĞƚĂŝůĂŶŬ,ŽǁĂƌĚ WŽůŝƟŶŝ'D,ƵŵĂŶZĞƐŽƵƌĐĞƐtŝůůŝĂŵtĂŬĞŚĂŵŚŝĞĨ KƉĞƌĂƟŶŐKĸĐĞƌKŵŝĚ^ĂďĞƌŝŚŝĞĨ/ŶĨŽƌŵĂƟŽŶKĸĐĞƌ ZĂũĞƐŚ^ŝŶŐŚŚŝĞĨ&ŝŶĂŶĐŝĂůKĸĐĞƌ͘ BSP FINANCE - FIJI MANAGEMENT TEAM Standing (L - R): ^ƵĚĞƐŚǁĂƌZĂŵ^ĞŶŝŽƌ>ĞŶĚŝŶŐKĸĐĞƌZŽŚŝƚ EĂŝĚƵ^ĞŶŝŽƌ>ĞŶĚŝŶŐKĸĐĞƌ<ƌŝƐŚŶĂZĂũƵ'ĞŶĞƌĂůDĂŶĂŐĞƌ ŶŝŵƵů^ŚĞƌLJŶ<ŚĂŶ>ĞŐĂůŽŶǀĞLJĂŶĐŝŶŐKĸĐĞƌ>ĂůĞƐŚ<ƵŵĂƌ &ƵŶĚƐDĂŶĂŐĞƌͬĐĐŽƵŶƚĂŶƚ BSP SOLOMON ISLANDS MANAGEMENT TEAM Seated (L - R):ŚƌŝƐƚŽƉŚĞƌZŽďĞƌƚƐŽŶ,ĞĂĚŽĨZĞůĂƟŽŶƐŚŝƉĂŶŬŝŶŐ dƵƉŽƵ,ĂůŽĨĂŬŝDĂŶĂŐĞƌZĞƚĂŝůĂŶŬŝŶŐ^ĞƌǀŝĐĞƐĂǀŝĚŶĚĞƌƐŽŶ ŽƵŶƚƌLJDĂŶĂŐĞƌZŽƐĞDƵƌƌĂLJDĂŶĂŐĞƌŽŵŵĞƌĐŝĂůĂŶŬŝŶŐ Standing (L-R): ĞŶŶŝƐ^ƵŝĂZŝƐŬΘŽŵƉůŝĂŶĐĞKĸĐĞƌ'ĞŶĞǀŝĞǀĞ ƉƵƐĂĞ&ŝŶĂŶĐŝĂůŽŶƚƌŽůůĞƌ:ŽĂŶZĂŵŽDĂŶĂŐĞƌ/ŶƚĞƌŶĂƟŽŶĂů KƉĞƌĂƟŽŶƐůƉŚŽŶƐĞdĂŽƟDĂŶĂŐĞƌ ůĞĐƚƌŽŶŝĐΘƌĂŶĐŚůĞƐƐ ĂŶŬŝŶŐ'ŝĚĚŝŶŐƐYŝƋŽDĂŶĂŐĞƌKƉĞƌĂƟŽŶƐΘ/ŶƚĞƌŶĂƟŽŶĂůƵƐŝŶĞƐƐ >LJŶŶĞƩĞdĂŽƟDĂŶĂŐĞƌƌĞĚŝƚĚŵŝŶŝƐƚƌĂƟŽŶtŝŶƚĞƌĨŽƌĚDĂĞŚĂƵ DĂŶĂŐĞƌ/ŶĨŽƌŵĂƟŽŶ^ĞƌǀŝĐĞƐ>ĂƵƌŝƐŚWŝŽ^ĞŶŝŽƌƵĚŝƚKĸĐĞƌ Missing: :ĂŶĞƚDĂƌĂƵDĂŶĂŐĞƌZĞƚĂŝůĂŶŬŝŶŐKƉĞƌĂƟŽŶƐ BSP Annual Report 2014 41 dŚĞĂůůŶĞǁ>ĂĞŽŵŵĞƌĐŝĂůĞŶƚƌĞĂůŽŶŐDĂƌŬŚĂŵZŽĂĚ͕ >ĂĞ͕DŽƌŽďĞWƌŽǀŝŶĐĞ͘ CONSOLIDATED CHAIRMAN’S FINANCIAL STATEMENTSREPORT 42 BSP Annual Report 2014 ',5(&7256·5(3257 for the Year Ended 31 December 2014 dŚĞŝƌĞĐƚŽƌƐƚĂŬĞƉůĞĂƐƵƌĞŝŶƉƌĞƐĞŶƟŶŐƚŚĞ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐŽĨƚŚĞĂŶŬŽĨ^ŽƵƚŚWĂĐŝĮĐ>ŝŵŝƚĞĚĂŶĚŝƚƐƐƵďƐŝĚŝĂƌŝĞƐ;ĂŶŬ ĂŶĚƚŚĞ'ƌŽƵƉͿĨŽƌƚŚĞLJĞĂƌĞŶĚĞĚϯϭĞĐĞŵďĞƌϮϬϭϰ͘/ŶŽƌĚĞƌƚŽĐŽŵƉůLJǁŝƚŚƚŚĞƉƌŽǀŝƐŝŽŶŽĨƚŚĞŽŵƉĂŶŝĞƐĐƚϭϵϵϳ͕ƚŚĞ ŝƌĞĐƚŽƌƐZĞƉŽƌƚĂƐĨŽůůŽǁƐ͗ Principal activities dŚĞƉƌŝŶĐŝƉĂůĂĐƟǀŝƚLJŽĨƚŚĞĂŶŬŽĨ^ŽƵƚŚWĂĐŝĮĐ>ŝŵŝƚĞĚ;^WͿŝƐƚŚĞƉƌŽǀŝƐŝŽŶŽĨĐŽŵŵĞƌĐŝĂůďĂŶŬŝŶŐĂŶĚĮŶĂŶĐĞƐĞƌǀŝĐĞƐ͘dŚĞ 'ƌŽƵƉ͛ƐĂĐƟǀŝƟĞƐĂůƐŽŝŶĐůƵĚĞƐƚŽĐŬďƌŽŬŝŶŐĂŶĚĨƵŶĚŵĂŶĂŐĞŵĞŶƚĂŶĚůŝĨĞďƵƐŝŶĞƐƐƐĞƌǀŝĐĞƐƚŚƌŽƵŐŚŽƵƚWĂƉƵĂEĞǁ'ƵŝŶĞĂĂŶĚ ƚŚĞWĂĐŝĮĐƌĞŐŝŽŶ͘^WŝƐĂĂŶŬůŝƐƚĞĚŽŶƚŚĞWŽƌƚDŽƌĞƐďLJ^ƚŽĐŬ džĐŚĂŶŐĞ;WKD^ŽyͿ͕ŝŶĐŽƌƉŽƌĂƚĞĚƵŶĚĞƌƚŚĞŽŵƉĂŶŝĞƐĐƚŽĨ WĂƉƵĂEĞǁ'ƵŝŶĞĂ͕ĂŶĚŝƐĂŶĂƵƚŚŽƌŝƐĞĚĂŶŬƵŶĚĞƌƚŚĞĂŶŬƐĂŶĚ&ŝŶĂŶĐŝĂů/ŶƐƟƚƵƟŽŶƐĐƚŽĨWĂƉƵĂEĞǁ'ƵŝŶĞĂ͘dŚĞĂŶŬĂŶĚ ƚŚĞ'ƌŽƵƉĂƌĞůŝĐĞŶƐĞĚƚŽŽƉĞƌĂƚĞŝŶƚŚĞ^ŽůŽŵŽŶ/ƐůĂŶĚƐĂŶĚ&ŝũŝ/ƐůĂŶĚƐ͘dŚĞƌĞŐŝƐƚĞƌĞĚŽĸĐĞŝƐĂƚŽƵŐůĂƐ^ƚƌĞĞƚ͕WŽƌƚDŽƌĞƐďLJ͘ Review of operations &ŽƌƚŚĞLJĞĂƌĞŶĚĞĚϯϭĞĐĞŵďĞƌϮϬϭϰ͕'ƌŽƵƉ͛ƐƉƌŽĮƚĂŌĞƌƚĂdžǁĂƐ<ϱϬϳ͘ϯϯϵŵŝůůŝŽŶ;ϮϬϭϯ͗<ϰϯϲ͘ϴϮϴŵŝůůŝŽŶͿ͘dŚĞĂŶŬ͛ƐƉƌŽĮƚ ĂŌĞƌƚĂdžǁĂƐ<ϱϭϮ͘ϴϵϮŵŝůůŝŽŶ;ϮϬϭϯ͗<ϰϮϰ͘ϳϲϮŵŝůůŝŽŶƉƌŽĮƚͿĂŶĚŝŶĐůƵĚĞĚĂĚŝǀŝĚĞŶĚŝŶĐŽŵĞŽĨ<ϭϵ͘ϮϮϭŵŝůůŝŽŶƌĞĐĞŝǀĞĚĨƌŽŵ ^W>ŝĨĞ;&ŝũŝͿ>ŝŵŝƚĞĚĚƵƌŝŶŐƚŚĞLJĞĂƌ͘ Dividends ŝǀŝĚĞŶĚƉĂLJŵĞŶƚƚŽƚĂůŝŶŐ<ϯϬϵ͘ϭϰϭŵŝůůŝŽŶǁĂƐƉĂŝĚŝŶϮϬϭϰ;ϮϬϭϯ͗<Ϯϳϭ͘ϲϴϲŵŝůůŝŽŶͿ͘ĚĞƚĂŝůĞĚďƌĞĂŬƵƉŽĨƚŚŝƐŝƐƉƌŽǀŝĚĞĚŝŶ EŽƚĞϮϯ͘ Directors and officers dŚĞĨŽůůŽǁŝŶŐǁĞƌĞĚŝƌĞĐƚŽƌƐŽĨƚŚĞĂŶŬŽĨ^ŽƵƚŚWĂĐŝĮĐ>ŝŵŝƚĞĚĂƚϯϭĞĐĞŵďĞƌϮϬϭϰ͗ Dƌ͘<ŽŶƐƚĂŶƟŶŽƵ͕K Dƌ͘Z&ůĞŵŝŶŐ Dƌ͘'ZŽďď͕KD Dƌ͘'ŽƉŝ͕ Dƌ͘d &Ždž͕K DƐ͘&dĂůĂŽ ^ŝƌ͘EŽŐĂŶ͕< Dƌ͘DĂŶŽ ƌ͘/dĞŵƵ Dƌ͘ 'ĂŶŐůŽī ĞƚĂŝůƐŽĨĚŝƌĞĐƚŽƌƐ͛ƚĞŶƵƌĞĂŶĚĚŝƌĞĐƚŽƌƐĂŶĚĞdžĞĐƵƟǀĞƐ͛ƌĞŵƵŶĞƌĂƟŽŶĚƵƌŝŶŐƚŚĞLJĞĂƌĂƌĞƉƌŽǀŝĚĞĚŝŶEŽƚĞϮϳŽĨƚŚĞEŽƚĞƐƚŽƚŚĞ ŽŶƐŽůŝĚĂƚĞĚ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐ͘dŚĞ KZŽďŝŶ&ůĞŵŝŶŐƌĞŵĂŝŶƐƚŚĞŽŶůLJĞdžĞĐƵƟǀĞĚŝƌĞĐƚŽƌ͘ dŚĞĐŽŵƉĂŶLJƐĞĐƌĞƚĂƌLJŝƐDĂƌLJ:ŽŚŶƐ͘ Independent Audit Report dŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŚĂǀĞďĞĞŶĂƵĚŝƚĞĚĂŶĚƐŚŽƵůĚďĞƌĞĂĚŝŶĐŽŶũƵŶĐƟŽŶǁŝƚŚƚŚĞŝŶĚĞƉĞŶĚĞŶƚĂƵĚŝƚƌĞƉŽƌƚŽŶƉĂŐĞϴϳ͘ ĞƚĂŝůƐŽĨĂŵŽƵŶƚƐƉĂŝĚƚŽƚŚĞĂƵĚŝƚŽƌƐĨŽƌĂƵĚŝƚĂŶĚŽƚŚĞƌƐĞƌǀŝĐĞƐĂƌĞƐŚŽǁŶŝŶEŽƚĞϰϭŽĨƚŚĞEŽƚĞƐƚŽƚŚĞŽŶƐŽůŝĚĂƚĞĚ&ŝŶĂŶĐŝĂů ^ƚĂƚĞŵĞŶƚƐ͘ Donations & Sponsorships ŽŶĂƟŽŶƐĂŶĚƐƉŽŶƐŽƌƐŚŝƉďLJƚŚĞ'ƌŽƵƉĚƵƌŝŶŐƚŚĞLJĞĂƌĂŵŽƵŶƚĞĚƚŽ<ϵ͕ϯϱϳ͕ϱϲϰ;ϮϬϭϯ͗<ϵ͕Ϯϲϳ͕ϭϰϭͿ͘ BSP Annual Report 2014 43 ',5(&7256·5(3257 for the Year Ended 31 December 2014 Change in accounting policies EŽĐŚĂŶŐĞƐŝŶĂĐĐŽƵŶƟŶŐƉŽůŝĐŝĞƐƐŝŐŶŝĮĐĂŶƚůLJŝŵƉĂĐƚĞĚƚŚĞ'ƌŽƵƉĚƵƌŝŶŐƚŚĞLJĞĂƌ͘ &Žƌ͕ĂŶĚŽŶďĞŚĂůĨŽĨ͕ƚŚĞŝƌĞĐƚŽƌƐ͘ ĂƚĞĚĂŶĚ^ŝŐŶĞĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚĂƌĞƐŽůƵƟŽŶŽĨƚŚĞŝƌĞĐƚŽƌƐŝŶWŽƌƚDŽƌĞƐďLJƚŚŝƐϭϯthĚĂLJŽĨDĂƌĐŚϮϬϭϱ͘ <ŽƐƚĂƐŽŶƐƚĂŶƟŶŽƵ͕K Robin Fleming ŚĂŝƌŵĂŶŚŝĞĨ džĞĐƵƟǀĞKĸĐĞƌͬŝƌĞĐƚŽƌ 44 BSP Annual Report 2014 67$7(0(17%< 7+(',5(&7256 for the Year Ended 31 December 2014 dŚĞŝƌĞĐƚŽƌƐĚĞĐůĂƌĞƚŚĂƚ͗ ;ĂͿ ŝŶƚŚĞŝƌĞĐƚŽƌƐ͛ŽƉŝŶŝŽŶ͕ƚŚĞƌĞĂƌĞƌĞĂƐŽŶĂďůĞŐƌŽƵŶĚƐƚŽďĞůŝĞǀĞƚŚĂƚƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉǁŝůůďĞĂďůĞƚŽƉĂLJƚŚĞŝƌ ĚĞďƚƐĂƐĂŶĚǁŚĞŶƚŚĞLJďĞĐŽŵĞĚƵĞĂŶĚƉĂLJĂďůĞ͖ĂŶĚ ;ďͿ ŝŶ ƚŚĞ ŝƌĞĐƚŽƌƐ͛ ŽƉŝŶŝŽŶ͕ ƚŚĞ ĂƩĂĐŚĞĚ ĮŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ĂŶĚ ŶŽƚĞƐ ƚŚĞƌĞƚŽ ĂƌĞ ŝŶ ĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ ƚŚĞ WE' ŽŵƉĂŶŝĞƐĐƚϭϵϵϳ͕ŝŶĐůƵĚŝŶŐĐŽŵƉůŝĂŶĐĞǁŝƚŚĂĐĐŽƵŶƟŶŐƐƚĂŶĚĂƌĚƐĂŶĚŐŝǀĞĂƚƌƵĞĂŶĚĨĂŝƌǀŝĞǁŽĨƚŚĞĮŶĂŶĐŝĂů ƉŽƐŝƟŽŶĂŶĚƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉ͘ Additional Statutory Information dŚĞƌĞƐƵůƚƐ ŽĨƚŚĞĂŶŬĂŶĚ ƚŚĞ'ƌŽƵƉ͛ƐŽƉĞƌĂƟŽŶƐ ĚƵƌŝŶŐ ƚŚĞĮŶĂŶĐŝĂů LJĞĂƌŚĂǀĞ͕ŝŶ ƚŚĞŽƉŝŶŝŽŶ ŽĨƚŚĞŝƌĞĐƚŽƌƐ͕ŶŽƚ ďĞĞŶ ŵĂƚĞƌŝĂůůLJĂīĞĐƚĞĚďLJŝƚĞŵƐŽĨĂŶĂďŶŽƌŵĂůŶĂƚƵƌĞ͕ŽƚŚĞƌƚŚĂŶƚŚŽƐĞĚŝƐĐůŽƐĞĚŝŶƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘ /ŶƚŚĞŽƉŝŶŝŽŶŽĨƚŚĞŝƌĞĐƚŽƌƐ͕ŶŽĐŝƌĐƵŵƐƚĂŶĐĞƐŚĂǀĞĂƌŝƐĞŶƚŚĂƚŵĂŬĞĂĚŚĞƌĞŶĐĞƚŽƚŚĞĞdžŝƐƟŶŐŵĞƚŚŽĚŽĨǀĂůƵĂƟŽŶŽĨĂƐƐĞƚƐŽƌ ůŝĂďŝůŝƟĞƐŽĨƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉŵŝƐůĞĂĚŝŶŐŽƌŝŶĂƉƉƌŽƉƌŝĂƚĞ͘ ƚƚŚĞĚĂƚĞŽĨƚŚŝƐƌĞƉŽƌƚƚŚĞŝƌĞĐƚŽƌƐĂƌĞŶŽƚĂǁĂƌĞŽĨĂŶLJĐŝƌĐƵŵƐƚĂŶĐĞƐƚŚĂƚǁŽƵůĚƌĞŶĚĞƌƚŚĞǀĂůƵĞƐĂƩƌŝďƵƚĞĚƚŽĐƵƌƌĞŶƚ ĂƐƐĞƚƐŝŶƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŵŝƐůĞĂĚŝŶŐ͘ EŽĐŽŶƟŶŐĞŶƚůŝĂďŝůŝƚLJŽƚŚĞƌƚŚĂŶƚŚĂƚĚŝƐĐůŽƐĞĚŝŶƚŚĞŶŽƚĞƐƚŽƚŚĞĂƩĂĐŚĞĚĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŚĂƐďĞĐŽŵĞĞŶĨŽƌĐĞĂďůĞ͕ŽƌŝƐ ůŝŬĞůLJƚŽďĞĐŽŵĞĞŶĨŽƌĐĞĂďůĞ͕ǁŝƚŚŝŶĂƉĞƌŝŽĚŽĨƚǁĞůǀĞŵŽŶƚŚƐĨƌŽŵƚŚĞĚĂƚĞŽĨƚŚŝƐƌĞƉŽƌƚ͕ƚŚĂƚǁŝůůŵĂƚĞƌŝĂůůLJĂīĞĐƚƚŚĞĂŶŬĂŶĚ ƚŚĞ'ƌŽƵƉŝŶŝƚƐĂďŝůŝƚLJƚŽŵĞĞƚŽďůŝŐĂƟŽŶƐĂƐĂŶĚǁŚĞŶƚŚĞLJĨĂůůĚƵĞ͘ ĂƚĞĚĂŶĚƐŝŐŶĞĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚĂƌĞƐŽůƵƟŽŶŽĨƚŚĞŝƌĞĐƚŽƌƐĂƚWŽƌƚDŽƌĞƐďLJƚŚŝƐϭϯthĚĂLJŽĨDĂƌĐŚϮϬϭϱ͘ <ŽƐƚĂƐŽŶƐƚĂŶƟŶŽƵ͕K ZŽďŝŶ&ůĞŵŝŶŐ ŚĂŝƌŵĂŶŚŝĞĨ džĞĐƵƟǀĞKĸĐĞƌͬŝƌĞĐƚŽƌ BSP Annual Report 2014 45 67$7(0(172) &2035(+(16,9(,1&20( for the Year Ended 31 December 2014 Note Consolidated Bank All amounts are expressed in K’000 2014 2013 2014 2013 /ŶƚĞƌĞƐƚŝŶĐŽŵĞ Ϯ ϵϭϱ͕ϰϲϱ ϳϵϰ͕ϴϬϳ ϵϭϱ͕ϰϯϰ ϳϵϯ͕ϴϳϳ /ŶƚĞƌĞƐƚĞdžƉĞŶƐĞ Ϯ ;ϲϮ͕ϱϳϵͿ ;ϱϯ͕ϵϱϬͿ ;ϲϯ͕ϲϰϬͿ ;ϱϯ͕ϰϳϰͿ EĞƚŝŶƚĞƌĞƐƚŝŶĐŽŵĞ ϴϱϮ͕ϴϴϲ ϳϰϬ͕ϴϱϳ ϴϱϭ͕ϳϵϰ ϳϰϬ͕ϰϬϯ &ĞĞĂŶĚĐŽŵŵŝƐƐŝŽŶŝŶĐŽŵĞ ϯ ϯϭϭ͕ϯϯϲ Ϯϴϱ͕ϱϵϰ ϯϬϯ͕Ϭϳϴ Ϯϴϭ͕ϬϮϴ KƚŚĞƌŝŶĐŽŵĞ ϰ ϰϭϰ͕ϲϳϭ ϰϵϱ͕ϭϲϲ ϯϯϴ͕Ϭϰϳ ϰϬϬ͕ϯϭϭ EĞƚďĂŶŬŝŶŐŽƉĞƌĂƟŶŐŝŶĐŽŵĞ ϭ͕ϱϳϴ͕ϴϵϯ ϭ͕ϱϮϭ͕ϲϭϳ ϭ͕ϰϵϮ͕ϵϭϵ ϭ͕ϰϮϭ͕ϳϰϮ EĞƚŝŶƐƵƌĂŶĐĞƉƌĞŵŝƵŵŝŶĐŽŵĞ ϵϮ͕ϳϬϯ ϴϰ͕ϯϮϯ Ͳ Ͳ /ŶĐƌĞĂƐĞ;ĚĞĐƌĞĂƐĞͿŝŶƉŽůŝĐLJůŝĂďŝůŝƟĞƐ ;ϭϲ͕ϱϭϮͿ ;ϮϮ͕ϬϮϱͿ Ͳ Ͳ ůĂŝŵƐ͕ƐƵƌƌĞŶĚĞƌĂŶĚŵĂƚƵƌŝƟĞƐ ;ϳϮ͕ϯϱϰͿ ;ϲϭ͕ϴϰϭͿ Ͳ Ͳ EĞƚŝŶƐƵƌĂŶĐĞŽƉĞƌĂƟŶŐŝŶĐŽŵĞ ϯ͕ϴϯϳ ϰϱϳ Ͳ Ͳ dŽƚĂůŶĞƚŽƉĞƌĂƟŶŐŝŶĐŽŵĞďĞĨŽƌĞŝŵƉĂŝƌŵĞŶƚ ĂŶĚŽƉĞƌĂƟŶŐĞdžƉĞŶƐĞƐ ϭ͕ϱϴϮ͕ϳϯϬ ϭ͕ϱϮϮ͕Ϭϳϰ ϭ͕ϰϵϮ͕ϵϭϵ ϭ͕ϰϮϭ͕ϳϰϮ /ŵƉĂŝƌŵĞŶƚĞdžƉĞŶƐĞ ϭϯ ;ϳϲ͕ϳϵϲͿ ;ϳϴ͕ϱϳϯͿ ;ϳϲ͕ϳϵϲͿ ;ϳϴ͕ϱϳϯͿ /ŵƉĂŝƌŵĞŶƚŽŶƐƵďƐŝĚŝĂƌLJ ϴ Ͳ ;ϭϰ͕ϵϲϳͿ Ͳ ;ϭϰ͕ϵϲϳͿ KƉĞƌĂƟŶŐĞdžƉĞŶƐĞƐ ϱ ;ϳϵϳ͕ϯϭϳͿ ;ϴϯϯ͕ϴϰϵͿ ;ϲϵϯ͕ϲϳϭͿ ;ϳϯϱ͕ϯϮϲͿ ^ŚĂƌĞŽĨƉƌŽĮƚƐĨƌŽŵĂƐƐŽĐŝĂƚĞƐĂŶĚũŽŝŶƚůLJ ϵ ϭϬ͕Ϯϯϯ ϭϮ͕ϮϳϬ Ͳ Ͳ ĐŽŶƚƌŽůůĞĚĞŶƟƟĞƐ WƌŽĮƚďĞĨŽƌĞŝŶĐŽŵĞƚĂdž 718,850 606,955 722,452 592,876 /ŶĐŽŵĞƚĂdžĞdžƉĞŶƐĞ ϲ ;Ϯϭϭ͕ϱϭϭͿ ;ϭϳϬ͕ϭϮϳͿ ;ϮϬϵ͕ϱϲϬͿ ;ϭϲϴ͕ϭϭϰͿ EĞƚƉƌŽĮƚĨŽƌƚŚĞLJĞĂƌ 507,339 436,828 512,892 424,762 Other comprehensive income /ƚĞŵƐƚŚĂƚŵĂLJďĞƐƵďƐĞƋƵĞŶƚůLJƌĞĐůĂƐƐŝĮĞĚ ƚŽƉƌŽĮƚŽƌůŽƐƐ dƌĂŶƐůĂƟŽŶŽĨĮŶĂŶĐŝĂůŝŶĨŽƌŵĂƟŽŶŽĨĨŽƌĞŝŐŶŽƉĞƌĂƟŽŶƐ Ϯϰ ;Ϯϰ͕ϯϱϰͿ ;ϰ͕ϭϯϯͿ ;ϭϴ͕ϬϴϮͿ ;ϲ͕ϳϰϭͿ ƚŽƉƌĞƐĞŶƚĂƟŽŶĐƵƌƌĞŶĐLJ /ƚĞŵƐƚŚĂƚǁŝůůŶŽƚďĞƌĞĐůĂƐƐŝĮĞĚƚŽƉƌŽĮƚŽƌůŽƐƐ͗ džƉŝƌĂƟŽŶŽĨƚŚĞƵŶĞdžĞƌĐŝƐĞƐŚĂƌĞŽƉƟŽŶƐ Ͳ ;ϰ͕ϱϮϲͿ Ͳ ;ϰ͕ϱϮϲͿ ZĞĐŽŐŶŝƟŽŶŽĨĚĞĨĞƌƌĞĚƚĂdžŽŶĂƐƐĞƚƌĞǀĂůƵĂƟŽŶƌĞƐĞƌǀĞ Ϯϰ ;ϯϱ͕ϳϲϮͿ Ͳ ;ϯϱ͕ϳϲϮͿ Ͳ EĞƚŵŽǀĞŵĞŶƚŝŶĂƐƐĞƚƌĞǀĂůƵĂƟŽŶ Ϯϰ ϰϰ͕ϯϯϬ Ͳ ϰϰ͕ϯϯϬ Ͳ Other comprehensive income for the year, net of tax (15,786) (8,659) (9,514) (11,267) Total comprehensive income for the year 491,553 428,169 503,378 413,495 Earnings per share - basic & diluted (toea) 23 108.3 93.1 109.5 90.5 dŚĞĂƩĂĐŚĞĚŶŽƚĞƐĨŽƌŵĂŶŝŶƚĞŐƌĂůƉĂƌƚŽĨƚŚĞƐĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘ 46 BSP Annual Report 2014 67$7(0(172) ),1$1&,$/326,7,21 as at 31 December 2014 Note Consolidated Bank All amounts are expressed in K’000 2014 2013 2014 2013 ASSETS ĂƐŚĂŶĚďĂůĂŶĐĞƐǁŝƚŚĞŶƚƌĂůĂŶŬ ϭϬ ϭ͕ϯϱϱ͕ϰϲϵ ϵϲϰ͕ϮϮϬ ϭ͕ϮϲϮ͕ϯϬϲ ϵϮϲ͕ϯϵϬ dƌĞĂƐƵƌLJΘĞŶƚƌĂůĂŶŬďŝůůƐ ϭϭ Ϯ͕ϭϴϯ͕Ϯϯϳ ϯ͕Ϯϴϯ͕ϰϯϮ Ϯ͕ϭϴϯ͕Ϯϯϳ ϯ͕Ϯϴϯ͕ϰϯϮ ŵŽƵŶƚƐĚƵĞĨƌŽŵŽƚŚĞƌďĂŶŬƐ ϭϮ ϯϴϬ͕ϲϱϯ ϭ͕ϰϰϱ͕ϭϵϵ ϯϴϬ͕ϲϱϯ ϭ͕ϰϰϱ͕ϭϵϵ ^ƚĂƚƵƚŽƌLJĚĞƉŽƐŝƚƐǁŝƚŚĞŶƚƌĂůĂŶŬ Ϯϱ ϭ͕Ϯϱϭ͕ϱϴϮ ϭ͕Ϭϲϲ͕ϱϴϬ ϭ͕Ϯϱϭ͕ϱϴϮ ϭ͕Ϭϲϲ͕ϱϴϬ KƚŚĞƌĮŶĂŶĐŝĂůĂƐƐĞƚƐ ϭϲ Ϯ͕ϯϲϭ͕ϲϰϵ Ϯ͕ϭϳϬ͕ϳϵϴ Ϯ͕ϭϴϴ͕Ϭϲϳ ϭ͕ϵϮϰ͕ϱϯϲ >ŽĂŶƐ͕ĂĚǀĂŶĐĞƐΘŽƚŚĞƌƌĞĐĞŝǀĂďůĞƐĨƌŽŵ ĐƵƐƚŽŵĞƌƐ ϭϯ ϲ͕ϴϭϳ͕ϯϵϲ ϱ͕ϯϬϲ͕ϯϲϮ ϲ͕ϳϰϴ͕ϱϰϲ ϱ͕Ϯϰϰ͕ϭϴϴ ƐƐĞƚŚĞůĚĨŽƌƐĂůĞ ϭϰ ϲϱ͕ϬϱϮ Ͳ ϲϱ͕ϬϱϮ Ͳ WƌŽƉĞƌƚLJ͕ƉůĂŶƚĂŶĚĞƋƵŝƉŵĞŶƚ ϭϰ ϲϲϮ͕ϯϭϯ ϲϮϯ͕ϯϲϬ ϲϮϵ͕ϲϴϮ ϱϴϵ͕ϲϮϯ ƐƐĞƚƐƐƵďũĞĐƚƚŽŽƉĞƌĂƟŶŐůĞĂƐĞ ϭϰ ϱϯ͕ϳϴϯ ϲϭ͕ϱϬϱ ϱϯ͕ϳϴϯ ϲϭ͕ϱϬϱ /ŶǀĞƐƚŵĞŶƚŝŶĂƐƐŽĐŝĂƚĞƐΘũŽŝŶƚǀĞŶƚƵƌĞƐ ϵ ϭϭϴ͕ϯϴϵ ϭϭϲ͕ϴϮϭ ϯϴ͕ϱϮϬ ϰϯ͕ϲϵϬ /ŶǀĞƐƚŵĞŶƚŝŶƐƵďƐŝĚŝĂƌŝĞƐ ϴ Ͳ Ͳ ϭϬϴ͕ϲϯϱ ϵϲ͕ϵϮϵ /ŶƚĂŶŐŝďůĞƐ ϳ ϭϭϬ͕ϯϳϰ ϭϱϲ͕Ϭϰϵ ϭϬϰ͕ϮϭϬ ϭϱϭ͕ϰϲϱ /ŶǀĞƐƚŵĞŶƚƉƌŽƉĞƌƟĞƐ ϭϱ ϳϬ͕ϲϴϰ ϲϱ͕ϰϮϵ Ͳ Ͳ ĞĨĞƌƌĞĚƚĂdžĂƐƐĞƚƐ ϲ ϭϭϭ͕ϲϳϳ ϴϳ͕ϬϬϮ ϭϭϱ͕ϱϱϮ ϴϴ͕ϰϱϯ KƚŚĞƌĂƐƐĞƚƐ ϭϳ ϯϯϰ͕ϲϰϴ ϰϭϰ͕ϲϲϯ Ϯϴϱ͕Ϭϵϯ ϯϲϯ͕ϰϳϬ Total assets 15,876,906 15,761,420 15,414,918 15,285,460 LIABILITIES ŵŽƵŶƚƐĚƵĞƚŽŽƚŚĞƌďĂŶŬƐ ϭϴ Ϯϱϵ͕ϴϵϮ ϳϴϲ͕Ϭϯϱ Ϯϱϵ͕ϴϳϵ ϳϴϲ͕Ϭϯϱ ƵƐƚŽŵĞƌĞƉŽƐŝƚƐ ϭϵ ϭϮ͕ϳϬϴ͕ϯϴϯ ϭϮ͕ϮϬϬ͕ϵϵϵ ϭϮ͕ϴϬϰ͕ϱϱϱ ϭϮ͕Ϯϵϲ͕ϮϮϲ ^ƵďŽƌĚŝŶĂƚĞĚĚĞďƚƐĞĐƵƌŝƟĞƐ ϮϬ ϳϱ͕ϱϮϱ ϳϱ͕ϱϮϱ ϳϱ͕ϱϮϱ ϳϱ͕ϱϮϱ KƚŚĞƌůŝĂďŝůŝƟĞƐ Ϯϭ ϴϭϲ͕ϵϰϳ ϵϯϲ͕ϯϲϵ ϯϭϴ͕Ϭϳϯ ϰϯϱ͕ϭϮϰ WƌŽǀŝƐŝŽŶĨŽƌŝŶĐŽŵĞƚĂdž ϲ ϲϯ͕ϬϮϮ ϯϯ͕ϯϵϱ ϲϮ͕ϳϯϴ ϯϯ͕ϮϮϮ KƚŚĞƌƉƌŽǀŝƐŝŽŶƐ ϮϮ ϭϱϮ͕ϵϰϰ ϭϭϬ͕Ϭϯϳ ϭϰϳ͕ϴϬϬ ϭϬϱ͕Ϭϭϲ dŽƚĂůůŝĂďŝůŝƟĞƐ 14,076,713 14,142,360 13,668,570 13,731,148 SHAREHOLDERS EQUITY KƌĚŝŶĂƌLJƐŚĂƌĞƐ Ϯϯ ϯϳϵ͕Ϯϵϳ ϯϴϭ͕ϰϵϴ ϯϳϵ͕Ϯϵϳ ϯϴϭ͕ϰϵϴ ZĞƚĂŝŶĞĚĞĂƌŶŝŶŐƐ Ϯϰ ϭ͕Ϯϭϵ͕ϰϯϲ ϭ͕Ϭϯϱ͕ϮϵϬ ϭ͕ϭϴϯ͕ϱϬϱ ϵϵϭ͕ϯϲϴ KƚŚĞƌƌĞƐĞƌǀĞƐ Ϯϰ ϮϬϭ͕ϰϲϬ ϮϬϮ͕ϮϳϮ ϭϴϯ͕ϱϰϲ ϭϴϭ͕ϰϰϲ Total shareholders’ equity 1,800,193 1,619,060 1,746,348 1,554,312 dŽƚĂůĞƋƵŝƚLJĂŶĚůŝĂďŝůŝƟĞƐ 15,876,906 15,761,420 15,414,918 15,285,460 dŚĞĂƩĂĐŚĞĚŶŽƚĞƐĨŽƌŵĂŶŝŶƚĞŐƌĂůƉĂƌƚŽĨƚŚĞƐĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘ BSP Annual Report 2014 47 67$7(0(172)&+$1*(6 ,16+$5(+2/'(56·(48,7< for the Year Ended 31 December 2014 Bank Notes Share capital Reserves Retained Total ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<͛ϬϬϬ earnings ĂůĂŶĐĞĂƐĂƚϭ:ĂŶƵĂƌLJϮϬϭϯ ϯϴϰ͕ϴϭϰ ϭϵϮ͕ϳϭϯ ϴϯϴ͕ϮϵϮ ϭ͕ϰϭϱ͕ϴϭϵ EĞƚƉƌŽĮƚ Ϯϯ Ͳ Ͳ ϰϮϰ͕ϳϲϮ ϰϮϰ͕ϳϲϮ KƚŚĞƌĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ Ϯϰ Ͳ ;ϭϭ͕ϮϲϳͿ Ͳ ;ϭϭ͕ϮϲϳͿ ϮϬϭϮĮŶĂůĚŝǀŝĚĞŶĚƉĂŝĚ Ϯϯ Ͳ Ͳ ;ϭϳϴ͕ϬϬϭͿ ;ϭϳϴ͕ϬϬϭͿ ϮϬϭϯŝŶƚĞƌŝŵĚŝǀŝĚĞŶĚƉĂŝĚ Ϯϯ Ͳ Ͳ ;ϵϯ͕ϲϴϱͿ ;ϵϯ͕ϲϴϱͿ ^ŚĂƌĞďƵLJďĂĐŬ Ϯϯ ;ϯ͕ϯϭϲͿ Ͳ Ͳ ;ϯ͕ϯϭϲͿ Balance at 31 December 2013 23&24 381,498 181,446 991,368 1,554,312 EĞƚƉƌŽĮƚ Ϯϯ Ͳ Ͳ ϱϭϮ͕ϴϵϮ ϱϭϮ͕ϴϵϮ ϮϬϭϯĮŶĂůĚŝǀŝĚĞŶĚƉĂŝĚ Ϯϯ Ͳ Ͳ ;Ϯϭϱ͕ϰϳϲͿ ;Ϯϭϱ͕ϰϳϲͿ ϮϬϭϰŝŶƚĞƌŝŵĚŝǀŝĚĞŶĚƉĂŝĚ Ϯϯ Ͳ Ͳ ;ϵϯ͕ϲϲϱͿ ;ϵϯ͕ϲϲϱͿ ^ŚĂƌĞďƵLJďĂĐŬ Ϯϯ ;Ϯ͕ϮϬϭͿ Ͳ Ͳ ;Ϯ͕ϮϬϭͿ ^W>ŝĨĞWŽůŝĐLJZĞƐĞƌǀĞ Ϯϰ Ͳ Ϯϰ͕Ϭϱϱ ;Ϯϰ͕ϬϱϱͿ Ͳ dƌĂŶƐĨĞƌĨƌŽŵƐƐĞƚZĞǀĂůƵĂƟŽŶZĞƐĞƌǀĞ Ϯϰ Ͳ ;ϭϮ͕ϰϰϭͿ ϭϮ͕ϰϰϭ Ͳ KƚŚĞƌĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ Ϯϰ Ͳ ;ϵ͕ϱϭϰͿ Ͳ ;ϵ͕ϱϭϰͿ Balance at 31 December 2014 379,297 183,546 1,183,505 1,746,348 Group ĂůĂŶĐĞĂƐĂƚϭ:ĂŶƵĂƌLJϮϬϭϯ ϯϴϰ͕ϴϭϰ ϮϭϬ͕ϵϯϭ ϴϳϬ͕ϭϰϴ ϭ͕ϰϲϱ͕ϴϵϯ EĞƚƉƌŽĮƚ Ϯϯ Ͳ Ͳ ϰϯϲ͕ϴϮϴ ϰϯϲ͕ϴϮϴ ϮϬϭϯĮŶĂůĚŝǀŝĚĞŶĚƉĂŝĚ Ϯϯ Ͳ Ͳ ;ϭϳϴ͕ϬϬϭͿ ;ϭϳϴ͕ϬϬϭͿ ϮϬϭϰŝŶƚĞƌŝŵĚŝǀŝĚĞŶĚƉĂŝĚ Ϯϯ Ͳ Ͳ ;ϵϯ͕ϲϴϱͿ ;ϵϯ͕ϲϴϱͿ ^ŚĂƌĞďƵLJďĂĐŬ Ϯϯ ;ϯ͕ϯϭϲͿ Ͳ Ͳ ;ϯ͕ϯϭϲͿ KƚŚĞƌĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ Ϯϰ Ͳ ;ϴ͕ϲϱϵͿ Ͳ ;ϴ͕ϲϱϵͿ Balance at 31 December 2013 23&24 381,498 202,272 1,035,290 1,619,060 EĞƚƉƌŽĮƚ Ϯϯ Ͳ Ͳ ϱϬϳ͕ϯϯϵ ϱϬϳ͕ϯϯϵ ϮϬϭϯĮŶĂůĚŝǀŝĚĞŶĚƉĂŝĚ Ϯϯ Ͳ Ͳ ;Ϯϭϱ͕ϰϳϲͿ ;Ϯϭϱ͕ϰϳϲͿ ϮϬϭϰŝŶƚĞƌŝŵĚŝǀŝĚĞŶĚƉĂŝĚ Ϯϯ Ͳ Ͳ ;ϵϯ͕ϲϲϱͿ ;ϵϯ͕ϲϲϱͿ ^ŚĂƌĞďƵLJďĂĐŬ Ϯϯ ;Ϯ͕ϮϬϭͿ Ͳ Ͳ ;Ϯ͕ϮϬϭͿ ^W>ŝĨĞƉŽůŝĐLJƌĞƐĞƌǀĞ Ϯϰ Ͳ Ϯϰ͕Ϭϱϱ ;Ϯϰ͕ϬϱϱͿ Ͳ WƌŝŽƌLJĞĂƌĐŽŶƐŽůŝĚĂƟŽŶĂĚũƵƐƚŵĞŶƚ Ͳ ϯ͕ϯϲϬ ;Ϯ͕ϰϯϴͿ ϵϮϮ dƌĂŶƐĨĞƌĨƌŽŵƐƐĞƚZĞǀĂůƵĂƟŽŶZĞƐĞƌǀĞ Ϯϰ Ͳ ;ϭϮ͕ϰϰϭͿ ϭϮ͕ϰϰϭ Ͳ KƚŚĞƌŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ Ϯϰ Ͳ ;ϭϱ͕ϳϴϲͿ Ͳ ;ϭϱ͕ϳϴϲͿ Balance at 31 December 2014 379,297 201,460 1,219,436 1,800,193 dŚĞĂƩĂĐŚĞĚŶŽƚĞƐĨŽƌŵĂŶŝŶƚĞŐƌĂůƉĂƌƚŽĨƚŚĞƐĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘ 48 BSP Annual Report 2014 67$7(0(172)&$6+)/2: for the Year Ended 31 December 2014 Notes Consolidated Banks ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<͛ϬϬϬ 2014 2013 2014 2013 CASH FLOW FROM OPERATING ACTIVITIES /ŶƚĞƌĞƐƚƌĞĐĞŝǀĞĚ ϵϭϭ͕Ϯϯϲ ϳϵϯ͕ϯϯϴ ϵϭϭ͕Ϯϯϲ ϳϵϮ͕ϮϳϮ &ĞĞƐĂŶĚŽƚŚĞƌŝŶĐŽŵĞ ϴϭϲ͕ϴϵϴ ϴϮϰ͕ϳϮϵ ϲϯϴ͕ϳϴϲ ϲϴϬ͕ϲϱϬ /ŶƚĞƌĞƐƚƉĂŝĚ ;ϲϭ͕ϭϴϱͿ ;ϲϰ͕ϮϯϮͿ ;ϲϭ͕ϴϰϰͿ ;ϲϯ͕ϲϭϱͿ ŵŽƵŶƚƐƉĂŝĚƚŽƐƵƉƉůŝĞƌƐĂŶĚĞŵƉůŽLJĞĞƐ ;ϲϲϮ͕ϬϰϱͿ ;ϲϱϯ͕ϳϭϮͿ ;ϰϵϳ͕ϰϯϭͿ ;ϰϴϵ͕ϳϰϱͿ KƉĞƌĂƟŶŐĐĂƐŚŇŽǁďĞĨŽƌĞĐŚĂŶŐĞƐŝŶŽƉĞƌĂƟŶŐĂƐƐĞƚƐ 28 1,004,904 900,123 990,747 919,562 /ŶĐƌĞĂƐĞŝŶůŽĂŶƐ͕ĂĚǀĂŶĐĞƐĂŶĚŽƚŚĞƌƌĞĐĞŝǀĂďůĞƐĨƌŽŵ ĐƵƐƚŽŵĞƌƐ ;ϭ͕ϱϲϯ͕ϮϵϭͿ ;ϱϱϴ͕ϳϰϲͿ ;ϭ͕ϱϱϱ͕ϲϱϳͿ ;ϱϳϭ͕ϵϲϵͿ ;/ŶĐƌĞĂƐĞͿŝŶƐƚĂƚƵƚŽƌLJĚĞƉŽƐŝƚƐǁŝƚŚƚŚĞĞŶƚƌĂůĂŶŬ ;ϭϴϱ͕ϬϬϮͿ ;ϭϵϯ͕ϯϴϮͿ ;ϭϴϱ͕ϬϬϮͿ ;ϭϵϯ͕ϯϴϮͿ ĞĐƌĞĂƐĞŝŶďŝůůƐƌĞĐĞŝǀĂďůĞĂŶĚŽƚŚĞƌĂƐƐĞƚƐ ϰϮ͕ϲϰϵ ϴ͕ϯϲϭ ϰϭ͕ϱϰϬ ϭϯ͕ϱϯϮ /ŶĐƌĞĂƐĞŝŶĐƵƐƚŽŵĞƌĚĞƉŽƐŝƚƐ ϰϲϴ͕ϯϱϭ ϭ͕ϮϴϬ͕ϳϯϭ ϱϬϴ͕ϯϮϵ ϭ͕ϯϳϱ͕ϱϯϲ ;ĞĐƌĞĂƐĞͿͬŝŶĐƌĞĂƐĞŝŶďŝůůƐƉĂLJĂďůĞĂŶĚŽƚŚĞƌůŝĂďŝůŝƟĞƐ ;ϭϮϯ͕ϵϲϬͿ ϭϴϵ͕ϭϬϲ ;ϭϮϭ͕ϬϴϲͿ ϭϰϳ͕Ϭϭϲ EĞƚĐĂƐŚŇŽǁĨƌŽŵŽƉĞƌĂƟŽŶƐďĞĨŽƌĞŝŶĐŽŵĞƚĂdž (356,349) 1,626,193 (321,129) 1,690,295 /ŶĐŽŵĞƚĂdžĞƐƉĂŝĚ ;ϮϭϮ͕ϴϳϬͿ ;ϭϱϲ͕ϵϱϯͿ ;ϮϭϮ͕ϱϱϲͿ ;ϭϱϲ͕ϲϯϰͿ EĞƚĐĂƐŚŇŽǁĨƌŽŵŽƉĞƌĂƟŶŐĂĐƟǀŝƟĞƐ (569,219) 1,469,240 (533,685) 1,533,661 CASH FLOW FROM INVESTING ACTIVITIES ĞĐƌĞĂƐĞͬ;ŝŶĐƌĞĂƐĞͿŝŶŐŽǀĞƌŶŵĞŶƚƐĞĐƵƌŝƟĞƐ ϵϭϱ͕ϮϮϲ ;ϱϵϵ͕ϱϱϯͿ ϴϯϲ͕ϲϲϰ ;ϲϭϱ͕ϳϵϰͿ džƉĞŶĚŝƚƵƌĞŽŶƉƌŽƉĞƌƚLJ͕ƉůĂŶƚΘĞƋƵŝƉŵĞŶƚ ;ϭϵϮ͕ϮϲϵͿ ;ϮϭϮ͕ϲϰϳͿ ;ϭϴϲ͕ϭϲϮͿ ;ϮϬϯ͕ϰϴϰͿ WƌŽĐĞĞĚƐĨƌŽŵĚŝƐƉŽƐĂůŽĨƉƌŽƉĞƌƚLJ͕ƉůĂŶƚΘĞƋƵŝƉŵĞŶƚ ϭϯ͕ϵϬϬ ϳ͕ϳϲϬ ϭϰ͕Ϯϭϴ ϳ͕ϲϭϱ WƌŽĐĞĞĚƐĨƌŽŵŽƚŚĞƌŝŶǀĞƐƚŵĞŶƚƐ ϵ͕ϴϵϱ ϯϰ͕ϲϱϯ Ͳ Ͳ ĚĚŝƟŽŶĂůĨƵŶĚŝŶŐŽĨƐƵďƐŝĚŝĂƌŝĞƐ Ͳ Ͳ ;ϭϭ͕ϳϬϲͿ Ͳ EĞƚĐĂƐŚŇŽǁĨƌŽŵŝŶǀĞƐƟŶŐĂĐƟǀŝƟĞƐ 746,752 (769,787) 653,014 (811,663) CASH FLOW FROM FINANCING ACTIVITIES ^ŚĂƌĞͲďƵLJďĂĐŬ Ϯϯ ;Ϯ͕ϮϬϭͿ ;ϯ͕ϯϭϲͿ ;Ϯ͕ϮϬϭͿ ;ϯ͕ϯϭϲͿ ŝǀŝĚĞŶĚƐƉĂŝĚ Ϯϯ ;ϯϬϵ͕ϭϰϭͿ ;Ϯϳϭ͕ϲϴϲͿ ;ϯϬϵ͕ϭϰϭͿ ;Ϯϳϭ͕ϲϴϲͿ EĞƚĐĂƐŚŇŽǁĨƌŽŵĮŶĂŶĐŝŶŐĂĐƟǀŝƟĞƐ (311,342) (275,002) (311,342) (275,002) Net Increase/(decrease) in cash and cash equivalents (133,809) 424,451 (192,013) 446,996 īĞĐƚŽĨĞdžĐŚĂŶŐĞƌĂƚĞŵŽǀĞŵĞŶƚƐŽŶĐĂƐŚĂŶĚĐĂƐŚ ;ϭϯ͕ϯϰϱͿ ϭϬ͕ϳϰϲ ;ϭϬ͕ϰϲϭͿ ϭϬ͕ϳϰϲ ĞƋƵŝǀĂůĞŶƚƐ ĂƐŚĂŶĚĐĂƐŚĞƋƵŝǀĂůĞŶƚƐĂƚƚŚĞďĞŐŝŶŶŝŶŐŽĨƚŚĞLJĞĂƌ ϭ͕ϲϮϯ͕ϯϴϰ ϭ͕ϭϴϴ͕ϭϴϳ ϭ͕ϱϴϱ͕ϱϱϰ ϭ͕ϭϮϳ͕ϴϭϮ Cash and Cash Equivalents at the end of the year 28 1,476,230 1,623,384 1,383,080 1,585,554 dŚĞĂƩĂĐŚĞĚŶŽƚĞƐĨŽƌŵĂŶŝŶƚĞŐƌĂůƉĂƌƚŽĨƚŚĞƐĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘ BSP Annual Report 2014 49 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 1. ACCOUNTING POLICIES Standards and amendments issued but not yet effective for the year ended 31 December 2014 or not adopted dŚĞ ƉƌŝŶĐŝƉĂů ĂĐĐŽƵŶƟŶŐ ƉŽůŝĐŝĞƐ ĂĚŽƉƚĞĚ ŝŶ ƚŚĞ ƉƌĞƉĂƌĂƟŽŶ early: ŽĨƚŚĞƐĞĐŽŶƐŽůŝĚĂƚĞĚĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂƌĞƐĞƚŽƵƚďĞůŽǁ͘ dŚĞƐĞƉŽůŝĐŝĞƐŚĂǀĞďĞĞŶĐŽŶƐŝƐƚĞŶƚůLJĂƉƉůŝĞĚƚŽĂůůƚŚĞƉĞƌŝŽĚƐ ŶƵŵďĞƌ ŽĨ ŶĞǁ ƐƚĂŶĚĂƌĚƐ ĂŶĚ ĂŵĞŶĚŵĞŶƚƐ ƚŽ ƐƚĂŶĚĂƌĚƐ ƉƌĞƐĞŶƚĞĚ ƵŶůĞƐƐ ŽƚŚĞƌǁŝƐĞ ƐƚĂƚĞĚ͘ dŚĞ ĂƐƐĞƚƐ ĂŶĚ ůŝĂďŝůŝƟĞƐ ĂŶĚ ŝŶƚĞƌƉƌĞƚĂƟŽŶƐ ĂƌĞ ĞīĞĐƟǀĞ ĨŽƌ ĂŶŶƵĂů ƉĞƌŝŽĚƐ ďĞŐŝŶŶŝŶŐ ĂƌĞƉƌĞƐĞŶƚĞĚŝŶŽƌĚĞƌŽĨůŝƋƵŝĚŝƚLJŽŶƚŚĞƐƚĂƚĞŵĞŶƚŽĨĮŶĂŶĐŝĂů ĂŌĞƌ ϭ :ĂŶƵĂƌLJ ϮϬϭϰ͕ ĂŶĚ ŚĂǀĞ ŶŽƚ ďĞĞŶ ĂƉƉůŝĞĚ ŝŶ ƉƌĞƉĂƌŝŶŐ ƉŽƐŝƟŽŶ͘ ƚŚĞƐĞ ĐŽŶƐŽůŝĚĂƚĞĚ ĮŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ͘ EŽŶĞ ŽĨ ƚŚĞƐĞ ĂƌĞ ĞdžƉĞĐƚĞĚƚŽŚĂǀĞĂƐŝŐŶŝĮĐĂŶƚĞīĞĐƚŽŶƚŚĞĐŽŶƐŽůŝĚĂƚĞĚĮŶĂŶĐŝĂů A. Basis of Presentation & General ƐƚĂƚĞŵĞŶƚƐŽĨƚŚĞ'ƌŽƵƉ͕ĞdžĐĞƉƚƚŚĞĨŽůůŽǁŝŶŐƐĞƚŽƵƚďĞůŽǁ͗ Accounting Policies ͻ /&Z^ ϵ͕ ͚&ŝŶĂŶĐŝĂů /ŶƐƚƌƵŵĞŶƚƐ͟ ;ĞīĞĐƟǀĞ ϭ :ĂŶƵĂƌLJ ϮϬϭϴͿ dŚĞ ĐŽŶƐŽůŝĚĂƚĞĚ ĮŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ŽĨ ƚŚĞ ĂŶŬ ŽĨ ^ŽƵƚŚ ĂĚĚƌĞƐƐĞƐƚŚĞĐůĂƐƐŝĮĐĂƟŽŶ͕ŵĞĂƐƵƌĞŵĞŶƚĂŶĚƌĞĐŽŐŶŝƟŽŶ WĂĐŝĮĐ >ŝŵŝƚĞĚ ;ƚŚĞ ĂŶŬͿ ĂŶĚ ƚŚĞ 'ƌŽƵƉ ĂƌĞ ƉƌĞƉĂƌĞĚ ŝŶ ŽĨ ĮŶĂŶĐŝĂů ĂƐƐĞƚƐ ĂŶĚ ĮŶĂŶĐŝĂů ůŝĂďŝůŝƟĞƐ͘ dŚĞ ĐŽŵƉůĞƚĞ ĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ /ŶƚĞƌŶĂƟŽŶĂů &ŝŶĂŶĐŝĂů ZĞƉŽƌƟŶŐ ^ƚĂŶĚĂƌĚƐ ǀĞƌƐŝŽŶ ŽĨ /&Z^ ϵ ǁĂƐ ŝƐƐƵĞĚ ŝŶ :ƵůLJ ϮϬϭϰ͘ /ƚ ƌĞƉůĂĐĞƐ ĂƐŝƐƐƵĞĚďLJƚŚĞ/ŶƚĞƌŶĂƟŽŶĂůĐĐŽƵŶƟŶŐ^ƚĂŶĚĂƌĚƐŽĂƌĚĂŶĚ ƚŚĞ ŐƵŝĚĂŶĐĞ ŝŶ /^ ϯϵ ƚŚĂƚ ƌĞůĂƚĞƐ ƚŽ ƚŚĞ ĐůĂƐƐŝĮĐĂƟŽŶ ŝŶƚĞƌƉƌĞƚĂƟŽŶƐŽĨƚŚĞƐĞƐƚĂŶĚĂƌĚƐŝƐƐƵĞĚďLJƚŚĞ/ŶƚĞƌŶĂƟŽŶĂů ĂŶĚŵĞĂƐƵƌĞŵĞŶƚŽĨĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐ͘/&Z^ϵƌĞƚĂŝŶƐ &ŝŶĂŶĐŝĂůZĞƉŽƌƟŶŐ/ŶƚĞƌƉƌĞƚĂƟŽŶƐŽŵŵŝƩĞĞ͘ ďƵƚƐŝŵƉůŝĮĞƐƚŚĞŵŝdžŵĞĂƐƵƌĞŵĞŶƚŵŽĚĞůĂŶĚĞƐƚĂďůŝƐŚĞƐ ƚŚƌĞĞƉƌŝŵĂƌLJŵĞĂƐƵƌĞŵĞŶƚĐĂƚĞŐŽƌŝĞƐĨŽƌĮŶĂŶĐŝĂůĂƐƐĞƚƐ͗ dŚĞLJĂƌĞƉƌĞƉĂƌĞĚŽŶƚŚĞďĂƐŝƐŽĨƚŚĞŚŝƐƚŽƌŝĐĂůĐŽƐƚĐŽŶǀĞŶƟŽŶ͕ ĂŵŽƌƟƐĞĚ ĐŽƐƚ͕ ĨĂŝƌ ǀĂůƵĞ ƚŚƌŽƵŐŚ ŽƚŚĞƌ ĐŽŵƉƌĞŚĞŶƐŝǀĞ ĂƐ ŵŽĚŝĮĞĚ ďLJ ƚŚĞ ƌĞǀĂůƵĂƟŽŶ ŽĨ ĐĞƌƚĂŝŶ ŶŽŶͲĐƵƌƌĞŶƚ ĂƐƐĞƚƐ͕ ŝŶĐŽŵĞ;K/ͿĂŶĚĨĂŝƌǀĂůƵĞƚŚƌŽƵŐŚƉƌŽĮƚŽƌůŽƐƐ͘dŚĞďĂƐŝƐ ĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐĂŶĚůŝĂďŝůŝƟĞƐ͘ ŽĨĐůĂƐƐŝĮĐĂƟŽŶĚĞƉĞŶĚƐŽŶƚŚĞĞŶƟƚLJ͛ƐďƵƐŝŶĞƐƐŵŽĚĞůĂŶĚ ƚŚĞ ĐŽŶƚƌĂĐƚƵĂů ĐĂƐŚ ŇŽǁ ĐŚĂƌĂĐƚĞƌŝƐƟĐƐ ŽĨ ƚŚĞ ĮŶĂŶĐŝĂů ƐƟŵĂƚĞƐ ĂŶĚ ĂƐƐƵŵƉƟŽŶƐ ŚĂǀĞ ďĞĞŶ ƵƐĞĚ ƚŽ ĂĐŚŝĞǀĞ ĂƐƐĞƚ͘/ŶǀĞƐƚŵĞŶƚŝŶĞƋƵŝƚLJŝŶƐƚƌƵŵĞŶƚƐĂƌĞƌĞƋƵŝƌĞĚƚŽďĞ ĐŽŶĨŽƌŵŝƚLJǁŝƚŚŐĞŶĞƌĂůůLJĂĐĐĞƉƚĞĚĂĐĐŽƵŶƟŶŐƉƌŝŶĐŝƉůĞƐŝŶƚŚĞ ŵĞĂƐƵƌĞĚ Ăƚ ĨĂŝƌ ǀĂůƵĞ ƚŚƌŽƵŐŚ ƉƌŽĮƚ Žƌ ůŽƐƐ ǁŝƚŚ ƚŚĞ ƉƌĞƉĂƌĂƟŽŶŽĨƚŚĞƐĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘ ŝƌƌĞǀŽĐĂďůĞ ŽƉƟŽŶ Ăƚ ŝŶĐĞƉƟŽŶ ƚŽ ƉƌĞƐĞŶƚ ĐŚĂŶŐĞƐ ŝŶ ĨĂŝƌ ǀĂůƵĞƚŚƌŽƵŐŚK/ǁŝƚŚŽƵƚƌĞĐLJĐůŝŶŐ͘dŚĞƌĞŝƐŶŽǁĂŶĞǁ dŚĞƐĞ ĂƐƐƵŵƉƟŽŶƐ ĂŶĚ ĞƐƟŵĂƚĞƐ ĂīĞĐƚ ďĂůĂŶĐĞƐ ŽĨ ĂƐƐĞƚƐ ĞdžƉĞĐƚĞĚĐƌĞĚŝƚůŽƐƐĞƐŵŽĚĞůƚŚĂƚƌĞƉůĂĐĞƐƚŚĞŝŶĐƵƌƌĞĚůŽƐƐ ĂŶĚ ůŝĂďŝůŝƟĞƐ͕ ĐŽŶƟŶŐĞŶƚ ůŝĂďŝůŝƟĞƐ ĂŶĚ ĐŽŵŵŝƚŵĞŶƚƐ Ăƚ ƚŚĞ ŝŵƉĂŝƌŵĞŶƚ ŵŽĚĞů ƵƐĞĚ ŝŶ /^ ϯϵ͘ &Žƌ ĮŶĂŶĐŝĂů ůŝĂďŝůŝƟĞƐ ĞŶĚ ŽĨ ƚŚĞ ƌĞƉŽƌƟŶŐ ƉĞƌŝŽĚ͕ ĂŶĚ ĂŵŽƵŶƚƐ ŽĨ ƌĞǀĞŶƵĞƐ ĂŶĚ ƚŚĞƌĞǁĞƌĞŶŽĐŚĂŶŐĞƐƚŽĐůĂƐƐŝĮĐĂƟŽŶĂŶĚŵĞĂƐƵƌĞŵĞŶƚ ĞdžƉĞŶƐĞƐ ĚƵƌŝŶŐ ƚŚĞ ƌĞƉŽƌƟŶŐ ƉĞƌŝŽĚ͘ tŚŝůƐƚ ƚŚĞ ĞƐƟŵĂƚĞƐ ĞdžĐĞƉƚĨŽƌƌĞĐŽŐŶŝƟŽŶŽĨĐŚĂŶŐĞƐŝŶŽǁŶĐƌĞĚŝƚƌŝƐŬŝŶŽƚŚĞƌ ĂƌĞďĂƐĞĚŽŶŵĂŶĂŐĞŵĞŶƚ͛ƐďĞƐƚŬŶŽǁůĞĚŐĞŽĨĐƵƌƌĞŶƚĞǀĞŶƚƐ ĐŽŵƉƌĞŚĞŶƐŝǀĞ ŝŶĐŽŵĞ͕ ĨŽƌ ůŝĂďŝůŝƟĞƐ ĚĞƐŝŐŶĂƚĞĚ Ăƚ ĨĂŝƌ ĂŶĚĐŽŶĚŝƟŽŶƐ͕ĂĐƚƵĂůƌĞƐƵůƚƐŵĂLJƵůƟŵĂƚĞůLJĚŝīĞƌĨƌŽŵƚŚŽƐĞ ǀĂůƵĞƚŚƌŽƵŐŚƉƌŽĮƚŽƌůŽƐƐ͘dŚĞ'ƌŽƵƉŝƐLJĞƚƚŽĂƐƐĞƐƐ/&Z^ ĞƐƟŵĂƚĞƐ͘ ϵ͛ƐĨƵůůŝŵƉĂĐƚ͘ dŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂƌĞƉƌĞƐĞŶƚĞĚŝŶWĂƉƵĂEĞǁ'ƵŝŶĞĂ ͻ /&Z^ϭϱ͕ZĞǀĞŶƵĞĨƌŽŵĐŽŶƚƌĂĐƚƐǁŝƚŚĐƵƐƚŽŵĞƌƐ͛ĚĞĂůƐǁŝƚŚ <ŝŶĂ͕ ĞdžƉƌĞƐƐĞĚ ŝŶ ƚŚŽƵƐĂŶĚƐ ŽĨ <ŝŶĂ͕ ĂƐ ƉĞƌŵŝƩĞĚ ďLJ WĂƉƵĂ ƌĞǀĞŶƵĞƌĞĐŽŐŶŝƟŽŶĂŶĚĞƐƚĂďůŝƐŚĞƐƉƌŝŶĐŝƉůĞƐĨŽƌƌĞƉŽƌƟŶŐ EĞǁ'ƵŝŶĞĂĐĐŽƵŶƟŶŐ^ƚĂŶĚĂƌĚƐ͘ ƵƐĞĨƵů ŝŶĨŽƌŵĂƟŽŶ ƚŽ ƵƐĞƌƐ ŽĨ ĮŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ĂďŽƵƚ ƚŚĞŶĂƚƵƌĞ͕ĂŵŽƵŶƚ͕ƟŵŝŶŐĂŶĚƵŶĐĞƌƚĂŝŶƚLJŽĨƌĞǀĞŶƵĞĂŶĚ Standards, amendments and interpretations ĐĂƐŚŇŽǁƐĂƌŝƐŝŶŐĨƌŽŵĂŶĞŶƟƚLJ͛ƐĐŽŶƚƌĂĐƚƐǁŝƚŚĐƵƐƚŽŵĞƌƐ͘ effective in the year ended 31 December 2014: ZĞǀĞŶƵĞ ŝƐ ƌĞĐŽŐŶŝƐĞĚ ǁŚĞŶ Ă ĐƵƐƚŽŵĞƌ ŽďƚĂŝŶƐ ĐŽŶƚƌŽů ŽĨĂŐŽŽĚŽƌƐĞƌǀŝĐĞĂŶĚƚŚƵƐŚĂƐƚŚĞĂďŝůŝƚLJƚŽĚŝƌĞĐƚƚŚĞƵƐĞ dŚĞ ďĞůŽǁŶĞǁĂŵĞŶĚŵĞŶƚǁĂƐĂƉƉůŝĐĂďůĞ ĨŽƌƚŚĞĮƌƐƚƟŵĞ ĂŶĚ ŽďƚĂŝŶ ƚŚĞ ďĞŶĞĮƚƐ ĨƌŽŵ ƚŚĞ ŐŽŽĚ Žƌ ƐĞƌǀŝĐĞ͘ dŚĞ ĚƵƌŝŶŐƚŚĞĂĐĐŽƵŶƟŶŐƉĞƌŝŽĚďĞŐŝŶŶŝŶŐϭ:ĂŶƵĂƌLJϮϬϭϰ͘ ƐƚĂŶĚĂƌĚƌĞƉůĂĐĞƐ/^ϭϴ͚ZĞǀĞŶƵĞ͛ĂŶĚ/^ϭϭ͚ŽŶƐƚƌƵĐƟŽŶ ĐŽŶƚƌĂĐƚƐ͛ ĂŶĚ ƌĞůĂƚĞĚ ŝŶƚĞƌƉƌĞƚĂƟŽŶƐ͘ dŚĞ ƐƚĂŶĚĂƌĚ ŝƐ ͻ ŵĞŶĚŵĞŶƚƐƚŽ/^ϯϲ͞/ŵƉĂŝƌŵĞŶƚŽĨĂƐƐĞƚƐ͟;ĞīĞĐƟǀĞϭ ĞīĞĐƟǀĞĨŽƌĂŶŶƵĂůƉĞƌŝŽĚƐďĞŐŝŶŶŝŶŐŽŶŽƌĂŌĞƌϭ:ĂŶƵĂƌLJ :ĂŶƵĂƌLJ ϮϬϭϰͿ ŽŶ ƚŚĞ ƌĞĐŽǀĞƌĂďůĞ ĂŵŽƵŶƚ ĚŝƐĐůŽƐƵƌĞƐ ϮϬϭϳ ĂŶĚ ĞĂƌůŝĞƌ ĂƉƉůŝĐĂƟŽŶ ŝƐ ƉĞƌŵŝƩĞĚ͘ dŚĞ ŐƌŽƵƉ ŝƐ ĨŽƌŶŽŶͲĮŶĂŶĐŝĂůĂƐƐĞƚƐ͘dŚŝƐĂŵĞŶĚŵĞŶƚƌĞŵŽǀĞĚĐĞƌƚĂŝŶ ĂƐƐĞƐƐŝŶŐƚŚĞŝŵƉĂĐƚŽĨ/&Z^ϭϱ͘ ĚŝƐĐůŽƐƵƌĞƐŽĨƚŚĞƌĞĐŽǀĞƌĂďůĞĂŵŽƵŶƚŽĨ'hƐǁŚŝĐŚŚĂĚ ďĞĞŶŝŶĐůƵĚĞĚŝŶ/^ϯϲďLJƚŚĞŝƐƐƵĞŽĨ/&Z^ϭϯ͘dŚĞ'ƌŽƵƉ B. Consolidation ŚĂƐŶŽƐƵĐŚŝŵƉĂŝƌĞĚĂƐƐĞƚƐ͘ dŚĞ ĐŽŶƐŽůŝĚĂƚĞĚ ĮŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ŝŶĐŽƌƉŽƌĂƚĞ ƚŚĞ ĂƐƐĞƚƐ KƚŚĞƌƐƚĂŶĚĂƌĚƐ͕ĂŵĞŶĚŵĞŶƚƐĂŶĚŝŶƚĞƌƉƌĞƚĂƟŽŶƐǁŚŝĐŚǁĞƌĞ ĂŶĚ ůŝĂďŝůŝƟĞƐ ŽĨ Ăůů ĐŽŶƚƌŽůůĞĚ ĞŶƟƟĞƐ ŽĨ ƚŚĞ ĂŶŬ ĂŶĚ ƚŚĞ ƌĞůĞĂƐĞĚ ĚƵƌŝŶŐ ƚŚĞ ĂĐĐŽƵŶƟŶŐ ƉĞƌŝŽĚ ďĞŐŝŶŶŝŶŐ ϭ :ĂŶƵĂƌLJ 'ƌŽƵƉĂƐĂƚϯϭĞĐĞŵďĞƌϮϬϭϰ͕ĂŶĚƚŚĞŝƌƌĞƐƵůƚƐĨŽƌƚŚĞLJĞĂƌ ϮϬϭϰĂƌĞŶŽƚƌĞůĞǀĂŶƚŽƌŵĂƚĞƌŝĂůƚŽƚŚĞ'ƌŽƵƉ͘ ƚŚĞŶĞŶĚĞĚ͘ 50 BSP Annual Report 2014 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 ŽŶƚƌŽůůĞĚ ĞŶƟƟĞƐ ĂƌĞ ƚŚŽƐĞ ŽǀĞƌ ǁŚŝĐŚ ƚŚĞ 'ƌŽƵƉ ŚĂƐ ƚŚĞ D. Revenue ƉŽǁĞƌ ƚŽ ŐŽǀĞƌŶ ĮŶĂŶĐŝĂů ĂŶĚ ŽƉĞƌĂƟŶŐ ƉŽůŝĐŝĞƐ͕ ŐĞŶĞƌĂůůLJ ĂĐĐŽŵƉĂŶŝĞĚ ďLJ Ă ƐŚĂƌĞŚŽůĚŝŶŐ ƚŚĂƚ ĐŽŵŵĂŶĚƐ ƚŚĞ ŵĂũŽƌŝƚLJ Interest income and expense ŽĨǀŽƟŶŐƌŝŐŚƚƐ͕ĂŶĚĂƌĞĐŽŵŵŽŶůLJƌĞĨĞƌƌĞĚƚŽĂƐƐƵďƐŝĚŝĂƌŝĞƐ͘ /ŶƚĞƌĞƐƚŝŶĐŽŵĞĂŶĚĞdžƉĞŶƐĞĂƌĞƌĞĐŽŐŶŝƐĞĚŝŶƚŚĞƐƚĂƚĞŵĞŶƚŽĨ ^ƵďƐŝĚŝĂƌŝĞƐ ĂƌĞ ĂĐĐŽƵŶƚĞĚ ĨŽƌ Ăƚ ĂĐƋƵŝƐŝƟŽŶ ƵŶĚĞƌ ƚŚĞ ĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞŽŶĂŶĂĐĐƌƵĂůďĂƐŝƐƵƐŝŶŐƚŚĞĞīĞĐƟǀĞ ĂĐƋƵŝƐŝƟŽŶĐŽƐƚŵĞƚŚŽĚŽĨĂĐĐŽƵŶƟŶŐ͕ǁŚĞƌĞ͗ LJŝĞůĚŵĞƚŚŽĚ͘dŚĞŝŶĐŽŵĞĂƌŝƐŝŶŐĨƌŽŵƚŚĞǀĂƌŝŽƵƐĨŽƌŵƐŽĨ ŝŶƐƚĂůůŵĞŶƚ ĐƌĞĚŝƚ ŚĂƐ ďĞĞŶ ĚĞƚĞƌŵŝŶĞĚ ƵƐŝŶŐ ƚŚĞ ĞīĞĐƟǀĞ ͻ ĂĐƋƵŝƐŝƟŽŶ ĐŽƐƚ ŝƐ ŵĞĂƐƵƌĞĚ Ăƚ ĨĂŝƌ ǀĂůƵĞ ŽĨ ĂƐƐĞƚƐ ŝŶƚĞƌĞƐƚŵĞƚŚŽĚ͘/ŶƚĞƌĞƐƚŝŶĐŽŵĞŝŶĐůƵĚĞƐĐŽƵƉŽŶƐĞĂƌŶĞĚŽŶ ƚƌĂŶƐĨĞƌƌĞĚ͕ ĞƋƵŝƚLJ ŝƐƐƵĞĚ͕ ůŝĂďŝůŝƟĞƐ ĂƐƐƵŵĞĚ ĂŶĚ ĂŶLJ ŝŶƐĐƌŝďĞĚƐƚŽĐŬ͕ĂĐĐƌƵĞĚĚŝƐĐŽƵŶƚĂŶĚƉƌĞŵŝƵŵŽŶdƌĞĂƐƵƌLJĂŶĚ ĚŝƌĞĐƚůLJĂƩƌŝďƵƚĂďůĞĐŽƐƚƐŽĨƚŚĞƚƌĂŶƐĂĐƟŽŶ͖ ĞŶƚƌĂůĂŶŬďŝůůƐ͘ ͻ ŝĚĞŶƟĮĂďůĞŶĞƚĂƐƐĞƚƐĂƌĞƌĞĐŽƌĚĞĚŝŶŝƟĂůůLJĂƚĂĐƋƵŝƐŝƟŽŶ͕Ăƚ ƚŚĞŝƌĨĂŝƌǀĂůƵĞƐ͖ Short term insurance contracts ͻ ĂŶLJĞdžĐĞƐƐŽĨƚŚĞĂĐƋƵŝƐŝƟŽŶĐŽƐƚŽǀĞƌƚŚĞƌĞůĞǀĂŶƚƐŚĂƌĞ dŚĞƐĞĐŽŶƚƌĂĐƚƐĂƌĞƚŚĞdĞƌŵ>ŝĨĞ͕DĞĚŝĐĂůĂŶĚdƌĂǀĞůƉŽůŝĐŝĞƐ ŽĨ ŝĚĞŶƟĮĂďůĞ ŶĞƚ ĂƐƐĞƚƐ ĂĐƋƵŝƌĞĚ ŝƐ ƚƌĞĂƚĞĚ ĂƐ ŐŽŽĚǁŝůů͕ ƐŽůĚĂŶĚƵŶĚĞƌǁƌŝƩĞŶďLJ^W,ĞĂůƚŚĂƌĞ;&ŝũŝͿ>ŝŵŝƚĞĚ͘ ĂŶĚĂŶLJĚĞĮĐŝĞŶĐLJŝƐƌĞĐŽŐŶŝƐĞĚĚŝƌĞĐƚůLJŝŶƚŚĞƐƚĂƚĞŵĞŶƚŽĨ ĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ͖ dŚĞƐĞ ĐŽŶƚƌĂĐƚƐ ƉƌŽƚĞĐƚ ƚŚĞ 'ƌŽƵƉ͛Ɛ ĐƵƐƚŽŵĞƌƐ ĨƌŽŵ ƚŚĞ ͻ ůůŝŶƚĞƌĐŽŵƉĂŶLJƚƌĂŶƐĂĐƟŽŶƐĂŶĚďĂůĂŶĐĞƐĂƌĞĞůŝŵŝŶĂƚĞĚ͘ ĐŽŶƐĞƋƵĞŶĐĞƐŽĨĞǀĞŶƚƐƐƵĐŚĂƐĚĞĂƚŚ͕ŵĞĚŝĐĂůĞŵĞƌŐĞŶĐLJŽƌ ůŽƐƐŽŶƚƌĂǀĞů͘'ƵĂƌĂŶƚĞĞĚďĞŶĞĮƚƐƉĂŝĚŽŶŽĐĐƵƌƌĞŶĐĞŽĨƚŚĞ C. Investment in Associates and Joint ƐƉĞĐŝĮĞĚŝŶƐƵƌĂŶĐĞĞǀĞŶƚĂƌĞĞŝƚŚĞƌĮdžĞĚŽƌůŝŶŬĞĚƚŽƚŚĞĞdžƚĞŶƚ Arrangements ŽĨƚŚĞĞĐŽŶŽŵŝĐůŽƐƐƐƵīĞƌĞĚďLJƚŚĞƉŽůŝĐLJŚŽůĚĞƌ͘dŚĞƌĞĂƌĞŶŽ ŵĂƚƵƌŝƚLJŽƌƐƵƌƌĞŶĚĞƌďĞŶĞĮƚƐ͘ Investments in Associates ƐƐŽĐŝĂƚĞƐ ĂƌĞ ĞŶƟƟĞƐ ŽǀĞƌ ǁŚŝĐŚ ƚŚĞ 'ƌŽƵƉ ŚĂƐ ƐŝŐŶŝĮĐĂŶƚ͕ &Žƌ Ăůů ƚŚĞƐĞ ĐŽŶƚƌĂĐƚƐ͕ ƉƌĞŵŝƵŵƐ ĂƌĞ ƌĞĐŽŐŶŝƐĞĚ ĂƐ ƌĞǀĞŶƵĞ ďƵƚ ŶŽƚ ĐŽŶƚƌŽůůŝŶŐ ŝŶŇƵĞŶĐĞ͕ ŐĞŶĞƌĂůůLJ ĂĐĐŽŵƉĂŶŝĞĚ ďLJ Ă ;ĞĂƌŶĞĚƉƌĞŵŝƵŵƐͿƉƌŽƉŽƌƟŽŶĂůůLJŽǀĞƌƚŚĞƉĞƌŝŽĚŽĨĐŽǀĞƌĂŐĞ͘ ƐŚĂƌĞŚŽůĚŝŶŐ ĐŽŶĨĞƌƌŝŶŐ ďĞƚǁĞĞŶ ϮϬ ƉĞƌĐĞŶƚ Ͳ ϱϬ ƉĞƌĐĞŶƚ ŽĨ dŚĞ ƉŽƌƟŽŶ ŽĨ ƉƌĞŵŝƵŵ ƌĞĐĞŝǀĞĚ ŽŶ ŝŶͲĨŽƌĐĞ ĐŽŶƚƌĂĐƚƐ ƚŚĂƚ ǀŽƟŶŐƌŝŐŚƚƐ͘ ƌĞůĂƚĞƐƚŽƵŶĞdžƉŝƌĞĚƌŝƐŬƐĂƚƚŚĞ^ƚĂƚĞŵĞŶƚŽĨ&ŝŶĂŶĐŝĂůWŽƐŝƟŽŶ ĚĂƚĞŝƐƌĞƉŽƌƚĞĚĂƐƚŚĞƵŶĞĂƌŶĞĚƉƌĞŵŝƵŵůŝĂďŝůŝƚLJ͘WƌĞŵŝƵŵƐ /ŶƚŚĞĐŽŶƐŽůŝĚĂƚĞĚĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͕ƚŚĞƐĞŝŶǀĞƐƚŵĞŶƚƐĂƌĞ ĂƌĞƐŚŽǁŶďĞĨŽƌĞĚĞĚƵĐƟŽŶŽĨĐŽŵŵŝƐƐŝŽŶ͘ ĂĐĐŽƵŶƚĞĚĨŽƌƵŶĚĞƌƚŚĞĞƋƵŝƚLJŵĞƚŚŽĚ͕ǁŚĞƌĞ͗ ͻ dŚĞŝŶǀĞƐƚŵĞŶƚŝƐŝŶŝƟĂůůLJƌĞĐŽŐŶŝƐĞĚĂƚĐŽƐƚ͖ ůĂŝŵƐ ĂŶĚ ůŽƐƐ ĂĚũƵƐƚŵĞŶƚ ĞdžƉĞŶƐĞƐ ĂƌĞ ĐŚĂƌŐĞĚ ƚŽ ŝŶĐŽŵĞ ͻ dŚĞ'ƌŽƵƉ͛ƐƐŚĂƌĞŽĨƉƌŽĮƚƐŽƌůŽƐƐĞƐĂƌĞƌĞĐŽŐŶŝƐĞĚŝŶƚŚĞ ĂƐŝŶĐƵƌƌĞĚďĂƐĞĚŽŶƚŚĞĞƐƟŵĂƚĞĚůŝĂďŝůŝƚLJĨŽƌĐŽŵƉĞŶƐĂƟŽŶ ƐƚĂƚĞŵĞŶƚŽĨĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ͘ ŽǁĞĚƚŽĐŽŶƚƌĂĐƚŚŽůĚĞƌƐŽƌďĞŶĞĮĐŝĂƌLJ͘dŚĞLJŝŶĐůƵĚĞĚŝƌĞĐƚĂŶĚ ŝŶĚŝƌĞĐƚĐůĂŝŵƐƐĞƩůĞŵĞŶƚĐŽƐƚƐĂŶĚĂƌŝƐĞĨƌŽŵĞǀĞŶƚƐƚŚĂƚŚĂǀĞ Interests In Joint Arrangements ŽĐĐƵƌƌĞĚƵƉƚŽƚŚĞ^ƚĂƚĞŵĞŶƚŽĨ&ŝŶĂŶĐŝĂůWŽƐŝƟŽŶĚĂƚĞĞǀĞŶ dŚĞ'ƌŽƵƉĂƉƉůŝĞƐ/&Z^ϭϭƚŽĂůůũŽŝŶƚǀĞŶƚƵƌĞƐ͘hŶĚĞƌ/&Z^ϭϭ ŝĨ ƚŚĞLJ ŚĂǀĞ ŶŽƚ LJĞƚ ďĞĞŶ ƌĞƉŽƌƚĞĚ ƚŽ ƚŚĞ 'ƌŽƵƉ͘ dŚĞ 'ƌŽƵƉ ŝŶǀĞƐƚŵĞŶƚƐŝŶũŽŝŶƚĂƌƌĂŶŐĞŵĞŶƚƐĂƌĞĐůĂƐƐŝĮĞĚĂƐĞŝƚŚĞƌũŽŝŶƚ ĚŽĞƐŶŽƚĚŝƐĐŽƵŶƚŝƚƐůŝĂďŝůŝƟĞƐĨŽƌƵŶƉĂŝĚĐůĂŝŵƐ͘>ŝĂďŝůŝƟĞƐĨŽƌ ǀĞŶƚƵƌĞƐ Žƌ ũŽŝŶƚ ŽƉĞƌĂƟŽŶƐ ĚĞƉĞŶĚŝŶŐ ŽŶ ƚŚĞ ĐŽŶƚƌĂĐƚƵĂů ƵŶƉĂŝĚĐůĂŝŵƐĂƌĞĞƐƟŵĂƚĞĚƵƐŝŶŐƚŚĞŝŶƉƵƚŽĨĂƐƐĞƐƐŵĞŶƚƐĨŽƌ ƌŝŐŚƚƐĂŶĚŽďůŝŐĂƟŽŶƐŽĨĞĂĐŚŝŶǀĞƐƚŽƌ͘ ŝŶĚŝǀŝĚƵĂůĐĂƐĞƐƌĞƉŽƌƚĞĚƚŽƚŚĞ'ƌŽƵƉĂŶĚƐƚĂƟƐƟĐĂůĂŶĂůLJƐĞƐ ĨŽƌƚŚĞĐůĂŝŵƐŝŶĐƵƌƌĞĚďƵƚŶŽƚƌĞƉŽƌƚĞĚ͕ĂŶĚƚŽĞƐƟŵĂƚĞƚŚĞ :ŽŝŶƚǀĞŶƚƵƌĞƐĂƌĞĂĐĐŽƵŶƚĞĚĨŽƌƵƐŝŶŐƚŚĞĞƋƵŝƚLJŵĞƚŚŽĚŝŶƚŚĞ ĞdžƉĞĐƚĞĚ ƵůƟŵĂƚĞ ĐŽƐƚ ŽĨ ŵŽƌĞ ĐŽŵƉůĞdž ĐůĂŝŵƐ ƚŚĂƚ ŵĂLJ ďĞ ĐŽŶƐŽůŝĚĂƚĞĚĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘hŶĚĞƌƚŚĞĞƋƵŝƚLJŵĞƚŚŽĚŽĨ ĂīĞĐƚĞĚďLJĞdžƚĞƌŶĂůĨĂĐƚŽƌƐ;ƐƵĐŚĂƐĐŽƵƌƚĚĞĐŝƐŝŽŶƐͿ͘ ĂĐĐŽƵŶƟŶŐ͕ŝŶƚĞƌĞƐƚƐŝŶũŽŝŶƚǀĞŶƚƵƌĞƐĂƌĞŝŶŝƟĂůůLJƌĞĐŽŐŶŝƐĞĚĂƚ ĐŽƐƚĂŶĚĂĚũƵƐƚĞĚƚŚĞƌĞĂŌĞƌƚŽƌĞĐŽŐŶŝƐĞƚŚĞ'ƌŽƵƉ͛ƐƐŚĂƌĞŽĨ Long term insurance contracts ƚŚĞƉŽƐƚͲĂĐƋƵŝƐŝƟŽŶƉƌŽĮƚƐŽƌůŽƐƐĞƐĂŶĚŵŽǀĞŵĞŶƚƐŝŶŽƚŚĞƌ ĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ͘tŚĞŶƚŚĞ'ƌŽƵƉ͛ƐƐŚĂƌĞŽĨůŽƐƐĞƐŝŶĂ dŚĞƐĞĐŽŶƚƌĂĐƚƐŝŶƐƵƌĞŚƵŵĂŶůŝĨĞĞǀĞŶƚƐ;ĨŽƌĞdžĂŵƉůĞĚĞĂƚŚ͕ ũŽŝŶƚǀĞŶƚƵƌĞĞƋƵĂůƐŽƌĞdžĐĞĞĚƐŝƚƐŝŶƚĞƌĞƐƚƐŝŶƚŚĞũŽŝŶƚǀĞŶƚƵƌĞƐ ƐƵƌǀŝǀĂů͕ ĚŝƐĂďŝůŝƚLJ Žƌ ĐƌŝƟĐĂů ŝůůŶĞƐƐͿ ŽǀĞƌ Ă ůŽŶŐ ĚƵƌĂƟŽŶ͘ ;ǁŚŝĐŚŝŶĐůƵĚĞƐĂŶLJůŽŶŐͲƚĞƌŵŝŶƚĞƌĞƐƚƐƚŚĂƚ͕ŝŶƐƵďƐƚĂŶĐĞ͕ĨŽƌŵ 'ƵĂƌĂŶƚĞĞĚ ďĞŶĞĮƚƐ ƉĂŝĚ ŽŶ ŽĐĐƵƌƌĞŶĐĞ ŽĨ ƚŚĞ ƐƉĞĐŝĮĞĚ ƉĂƌƚŽĨƚŚĞŐƌŽƵƉ͛ƐŶĞƚŝŶǀĞƐƚŵĞŶƚŝŶƚŚĞũŽŝŶƚǀĞŶƚƵƌĞƐͿ͕ƚŚĞ ŝŶƐƵƌĂŶĐĞĞǀĞŶƚĂƌĞĮdžĞĚŽƌůŝŶŬĞĚƚŽƚŚĞůĞǀĞůŽĨďŽŶƵƐĚĞĐůĂƌĞĚ 'ƌŽƵƉĚŽĞƐŶŽƚƌĞĐŽŐŶŝƐĞĨƵƌƚŚĞƌůŽƐƐĞƐ͕ƵŶůĞƐƐŝƚŚĂƐŝŶĐƵƌƌĞĚ ŽŶƚŚĞƉŽůŝĐLJ͘DŽƐƚŽĨƚŚĞƉŽůŝĐŝĞƐŚĂǀĞŵĂƚƵƌŝƚLJĂŶĚƐƵƌƌĞŶĚĞƌ ŽďůŝŐĂƟŽŶƐŽƌŵĂĚĞƉĂLJŵĞŶƚƐŽŶďĞŚĂůĨŽĨƚŚĞũŽŝŶƚǀĞŶƚƵƌĞƐ ďĞŶĞĮƚƐ͘&ŽƌĂůůƚŚĞƐĞĐŽŶƚƌĂĐƚƐ͕ƉƌĞŵŝƵŵƐĂƌĞƌĞĐŽŐŶŝƐĞĚĂƐ ƌĞǀĞŶƵĞ ǁŚĞŶ ƚŚĞLJ ďĞĐŽŵĞ ƉĂLJĂďůĞ ďLJ ƚŚĞ ĐŽŶƚƌĂĐƚ ŚŽůĚĞƌ͘ /ŶƚĞƌĞƐƚƐ ŝŶ ũŽŝŶƚ ǀĞŶƚƵƌĞƐ ĐůĂƐƐŝĮĞĚ ĂƐ ŚĞůĚ ĨŽƌ ƐĂůĞ ĂƌĞ WƌĞŵŝƵŵƐĂƌĞƐŚŽǁŶďĞĨŽƌĞĚĞĚƵĐƟŽŶŽĨĐŽŵŵŝƐƐŝŽŶ͘ ĂĐĐŽƵŶƚĞĚ ĨŽƌ ƵŶĚĞƌ /&Z^ ϱ EŽŶͲĐƵƌƌĞŶƚ ƐƐĞƚƐ ,ĞůĚ ĨŽƌ ^ĂůĞ ĂŶĚŝƐĐŽŶƟŶƵĞĚKƉĞƌĂƟŽŶƐ͘ ƉƉƌŽdžŝŵĂƚĞůLJ ϵϬй ŽĨ ƚŚĞ ĂďŽǀĞ ĐŽŶƚƌĂĐƚƐ ŝŶ ƚŚĞ 'ƌŽƵƉ͛Ɛ ƉŽƌƞŽůŝŽ ĐŽŶƚĂŝŶ Ă ŝƐĐƌĞƟŽŶĂƌLJ WĂƌƟĐŝƉĂƟŽŶ &ĞĂƚƵƌĞ ;W&Ϳ͘ dŚŝƐ ĨĞĂƚƵƌĞ ĞŶƟƚůĞƐ ƚŚĞ ŚŽůĚĞƌ ƚŽ ƌĞĐĞŝǀĞ͕ ĂƐ Ă ƐƵƉƉůĞŵĞŶƚ ƚŽ ŐĞŶĞƌĂƚĞĚ ďĞŶĞĮƚƐ͕ ĂĚĚŝƟŽŶĂů ďĞŶĞĮƚƐ ŝŶ ƚŚĞ ĨŽƌŵ ŽĨ ƌĞǀĞƌƐŝŽŶĂƌLJďŽŶƵƐĞƐ͘ BSP Annual Report 2014 51 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 dŚĞůŝĂďŝůŝƚLJĨŽƌůŽŶŐƚĞƌŵŝŶƐƵƌĂŶĐĞĐŽŶƚƌĂĐƚƐ;ƉƌŝŶĐŝƉĂůůLJ>ŝĨĞ dŚĞƉƌŽǀŝƐŝŽŶƐĂƌĞĚĞƚĞƌŵŝŶĞĚŚĂǀŝŶŐƌĞŐĂƌĚƚŽƚŚĞůĞǀĞůŽĨƌŝƐŬ /ŶƐƵƌĂŶĐĞͿŚĂƐďĞĞŶĚĞƚĞƌŵŝŶĞĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ>W^ϭ͘Ϭϰ ǁĞŝŐŚƚĞĚ ĂƐƐĞƚƐ͕ ĞĐŽŶŽŵŝĐ ĐŽŶĚŝƟŽŶƐ͕ ƚŚĞ ŐĞŶĞƌĂů ƌŝƐŬ ƉƌŽĮůĞ sĂůƵĂƟŽŶŽĨWŽůŝĐLJ>ŝĂďŝůŝƟĞƐ͕ŝƐƐƵĞĚďLJƚŚĞƵƐƚƌĂůŝĂŶWƌƵĚĞŶƟĂů ŽĨƚŚĞĐƌĞĚŝƚƉŽƌƞŽůŝŽ͕ƉĂƐƚůŽƐƐĞdžƉĞƌŝĞŶĐĞĂŶĚĂƌĂŶŐĞŽĨŽƚŚĞƌ ZĞŐƵůĂƟŽŶƵƚŚŽƌŝƚLJ͘ ĐƌŝƚĞƌŝĂ͘dŚĞĂŵŽƵŶƚŶĞĐĞƐƐĂƌLJƚŽďƌŝŶŐƚŚĞƉƌŽǀŝƐŝŽŶƐƚŽƚŚĞŝƌ ĂƐƐĞƐƐĞĚůĞǀĞůƐ͕ĂŌĞƌǁƌŝƚĞͲŽīƐ͕ŝƐĐŚĂƌŐĞĚƚŽƚŚĞƐƚĂƚĞŵĞŶƚŽĨ dŚĞ ƉŽůŝĐLJ ůŝĂďŝůŝƚLJ ŝƐ ĐĂůĐƵůĂƚĞĚ ŝŶ Ă ǁĂLJ ƚŚĂƚ ĂůůŽǁƐ ĨŽƌ ƚŚĞ ĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ͘ ƐLJƐƚĞŵĂƟĐ ƌĞůĞĂƐĞ ŽĨ ƉůĂŶŶĞĚ ƉƌŽĮƚ ŵĂƌŐŝŶƐ ĂƐ ƐĞƌǀŝĐĞƐ ĂƌĞ ƉƌŽǀŝĚĞĚƚŽƉŽůŝĐLJŽǁŶĞƌƐĂŶĚƚŚĞƌĞǀĞŶƵĞƐƌĞůĂƟŶŐƚŽƚŚŽƐĞ H. Goodwill ƐĞƌǀŝĐĞƐ ĂƌĞ ƌĞĐĞŝǀĞĚ ;DĂƌŐŝŶ ŽŶ ^ĞƌǀŝĐĞƐ ŵĞƚŚŽĚŽůŽŐLJͿ͘ ^ĞƌǀŝĐĞƐ ƵƐĞĚ ƚŽ ĚĞƚĞƌŵŝŶĞ ƉƌŽĮƚ ƌĞĐŽŐŶŝƟŽŶ ŝŶĐůƵĚĞ ƚŚĞ 'ŽŽĚǁŝůůƌĞƉƌĞƐĞŶƚƐƚŚĞĞdžĐĞƐƐŽĨƚŚĞĐŽƐƚŽĨĂŶLJĂĐƋƵŝƐŝƟŽŶ ĐŽƐƚŽĨĞdžƉĞĐƚĞĚŝŶƐƵƌĂŶĐĞĐůĂŝŵƐĂŶĚƚŚĞĂůůŽĐĂƟŽŶŽĨĨƵƚƵƌĞ ŽǀĞƌƚŚĞĂĐƋƵŝƌĞƌ͛ƐŝŶƚĞƌĞƐƚŝŶƚŚĞĨĂŝƌǀĂůƵĞŽĨƚŚĞŝĚĞŶƟĮĂďůĞ ďŽŶƵƐĞƐ͘ dŚĞ ůŝĂďŝůŝƚLJ ŝƐ ŐĞŶĞƌĂůůLJ ĚĞƚĞƌŵŝŶĞĚ ĂƐ ƚŚĞ ƉƌĞƐĞŶƚ ĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐĂĐƋƵŝƌĞĚĂƐĂƚƚŚĞĞdžĐŚĂŶŐĞƚƌĂŶƐĂĐƟŽŶ͘ ǀĂůƵĞ ŽĨ Ăůů ĨƵƚƵƌĞ ĞdžƉĞĐƚĞĚ ƉĂLJŵĞŶƚƐ͕ ĞdžƉĞŶƐĞƐ͕ ƚĂdžĞƐ ĂŶĚ 'ŽŽĚǁŝůůŝƐƌĞƉŽƌƚĞĚŝŶƚŚĞƐƚĂƚĞŵĞŶƚŽĨĮŶĂŶĐŝĂůƉŽƐŝƟŽŶĂƐĂŶ ƉƌŽĮƚ ŵĂƌŐŝŶƐ ƌĞĚƵĐĞĚ ďLJ ƚŚĞ ƉƌĞƐĞŶƚ ǀĂůƵĞ ŽĨ Ăůů ĨƵƚƵƌĞ ŝŶƚĂŶŐŝďůĞĂƐƐĞƚ͘ ĞdžƉĞĐƚĞĚ ƉƌĞŵŝƵŵƐ ĂŶĚ ƚĂŬĞ ŝŶƚŽ ĐŽŶƐŝĚĞƌĂƟŽŶ ƉƌŽũĞĐƚĞĚ ĨƵƚƵƌĞďŽŶƵƐĞƐ͘dŚĞůŝĂďŝůŝƟĞƐĂƌĞƌĞĐĂůĐƵůĂƚĞĚĂƚĞĂĐŚďĂůĂŶĐĞ /Ŷ ĚĞƚĞƌŵŝŶŝŶŐ ƚŚĞ ĞƐƟŵĂƚĞĚ ƵƐĞĨƵů ůŝĨĞ ŽĨ ŐŽŽĚǁŝůů͕ ĚĂƚĞ ƵƐŝŶŐ ďĞƐƚ ĞƐƟŵĂƚĞ ĂƐƐƵŵƉƟŽŶƐ͘ dŚĞƐĞ ĂƐƐƵŵƉƟŽŶƐ ŵĂŶĂŐĞŵĞŶƚ ĐŽŶƐŝĚĞƌƐ ǀĂƌŝŽƵƐ ĨĂĐƚŽƌƐ ŝŶĐůƵĚŝŶŐ ŶĞƚ ƐĞůůŝŶŐ ĂƌĞƌĞǀŝƐŝƚĞĚƌĞŐƵůĂƌůLJĂŶĚĂĚũƵƐƚĞĚĨŽƌĂĐƚƵĂůĞdžƉĞƌŝĞŶĐĞƐŽŶ ƉƌŝĐĞŽĨƚŚĞĂĐƋƵŝƌĞĚďƵƐŝŶĞƐƐ͕ĞdžŝƐƟŶŐŵĂƌŬĞƚƐŚĂƌĞ͕ƉŽƚĞŶƟĂů ĐůĂŝŵƐ͕ĞdžƉĞŶƐĞ͕ŵŽƌƚĂůŝƚLJĂŶĚŝŶǀĞƐƚŵĞŶƚƌĞƚƵƌŶƐ͘dŚĞƉŽůŝĐLJ ŐƌŽǁƚŚŽƉƉŽƌƚƵŶŝƟĞƐ͕ĂŶĚŽƚŚĞƌĨĂĐƚŽƌƐŝŶŚĞƌĞŶƚŝŶƚŚĞĂĐƋƵŝƌĞĚ ůŝĂďŝůŝƚLJĂůƐŽŝŶĐůƵĚĞƐƉŽůŝĐLJŽǁŶĞƌƌĞƚĂŝŶĞĚĞĂƌŶŝŶŐƐ͘ ďƵƐŝŶĞƐƐ͘ dŚŝƐ ĂƐƐĞƐƐŵĞŶƚ ŝƐ ƌĞǀŝĞǁĞĚ Ăƚ ĞĂĐŚ ďĂůĂŶĐĞ ĚĂƚĞ͕ ƐŽƚŚĂƚĂŶLJŝŶĚŝĐĂƟŽŶŽĨŝŵƉĂŝƌŵĞŶƚǁŝƚŚŝŵƉůŝĐĂƟŽŶƐĨŽƌƚŚĞ /ŶƐƵƌĂŶĐĞƉŽůŝĐLJůŝĂďŝůŝƟĞƐĂƌĞĨƵƌƚŚĞƌĚĞƚĂŝůĞĚŝŶEŽƚĞϯϵ͘ ƌĞĐŽǀĞƌĂďŝůŝƚLJŽĨŐŽŽĚǁŝůůĐĂŶďĞƚĞƐƚĞĚ͕ĂŶĚĂĚũƵƐƚŵĞŶƚƐƚŽƚŚĞ ĐĂƌƌLJŝŶŐǀĂůƵĞŽĨŐŽŽĚǁŝůůŵĂĚĞŝĨŶĞĐĞƐƐĂƌLJ͘ E. Fee and commission income I. Computer systems development costs &ĞĞƐĂŶĚĐŽŵŵŝƐƐŝŽŶƐĂƌĞŐĞŶĞƌĂůůLJƌĞĐŽŐŶŝƐĞĚŽŶĂŶĂĐĐƌƵĂů ďĂƐŝƐǁŚĞŶƚŚĞƐĞƌǀŝĐĞŚĂƐďĞĞŶƉƌŽǀŝĚĞĚ͘ůůŽƚŚĞƌƌŝƐŬƌĞůĂƚĞĚ ŽƐƚƐŝŶĐƵƌƌĞĚƚŽĚĞǀĞůŽƉĂŶĚĞŶŚĂŶĐĞƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉ͛Ɛ ĨĞĞƐ ƚŚĂƚ ĐŽŶƐƟƚƵƚĞ ĐŽƐƚ ƌĞĐŽǀĞƌLJ ĂƌĞ ƚĂŬĞŶ ƚŽ ŝŶĐŽŵĞ ǁŚĞŶ ĐŽŵƉƵƚĞƌƐLJƐƚĞŵƐĂƌĞĐĂƉŝƚĂůŝƐĞĚƚŽƚŚĞĞdžƚĞŶƚƚŚĂƚďĞŶĞĮƚƐĚŽ ůĞǀŝĞĚ͘EŽŶͲƌĞĨƵŶĚĂďůĞĨƌŽŶƚͲĞŶĚůŽĂŶĨĞĞƐĂƌĞĐĂƉŝƚĂůŝƐĞĚĂŶĚ ŶŽƚƌĞůĂƚĞƐŽůĞůLJƚŽƌĞǀĞŶƵĞƚŚĂƚŚĂƐĂůƌĞĂĚLJďĞĞŶďƌŽƵŐŚƚƚŽ ĚĞĨĞƌƌĞĚŽǀĞƌƚŚĞĞdžƉĞĐƚĞĚƚĞƌŵŽĨƚŚĞĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚ͘ ĂĐĐŽƵŶƚĂŶĚǁŝůůĐŽŶƚƌŝďƵƚĞƚŽƚŚĞĨƵƚƵƌĞĞĂƌŶŝŶŐĐĂƉĂĐŝƚLJŽĨ ƚŚĞĞĐŽŶŽŵŝĐĞŶƟƚLJ͘ F. Borrowing expenses dŚĞƐĞĐŽƐƚƐĂƌĞĂŵŽƌƟƐĞĚŽǀĞƌƚŚĞĞƐƟŵĂƚĞĚĞĐŽŶŽŵŝĐůŝĨĞŽĨ džƉĞŶƐĞƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞďŽƌƌŽǁŝŶŐŽĨĨƵŶĚƐĂƌĞĐŚĂƌŐĞĚƚŽ ĨŽƵƌLJĞĂƌƐƵƐŝŶŐƚŚĞƐƚƌĂŝŐŚƚͲůŝŶĞŵĞƚŚŽĚ͘ŽƐƚƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚ ƚŚĞƐƚĂƚĞŵĞŶƚŽĨĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞŝŶƚŚĞƉĞƌŝŽĚŝŶǁŚŝĐŚ ŵĂŝŶƚĂŝŶŝŶŐĐŽŵƉƵƚĞƌƐŽŌǁĂƌĞƉƌŽŐƌĂŵƐĂƌĞƌĞĐŽŐŶŝƐĞĚĂƐĂŶ ƚŚĞLJĂƌĞŝŶĐƵƌƌĞĚ͘ ĞdžƉĞŶƐĞǁŚĞŶŝŶĐƵƌƌĞĚ͘ G. Provision for loan impairment J. Property, plant and equipment >ŽĂŶƐĂƌĞŽƌŝŐŝŶĂƚĞĚďLJƉƌŽǀŝĚŝŶŐĨƵŶĚƐĚŝƌĞĐƚůLJƚŽƚŚĞďŽƌƌŽǁĞƌ >ĂŶĚ ĂŶĚ ďƵŝůĚŝŶŐƐ ĂƌĞ ŵĞĂƐƵƌĞĚ Ăƚ ĨĂŝƌ ǀĂůƵĞ͘ &Ăŝƌ ǀĂůƵĞ ŝƐ ĂŶĚĂƌĞƌĞĐŽŐŶŝƐĞĚǁŚĞŶĐĂƐŚŝƐĂĚǀĂŶĐĞĚƚŽďŽƌƌŽǁĞƌƐ͘ ĚĞƚĞƌŵŝŶĞĚ ŽŶ ƚŚĞ ďĂƐŝƐ ŽĨ ƌĞŐƵůĂƌ ŝŶĚĞƉĞŶĚĞŶƚ ǀĂůƵĂƟŽŶ ƉƌĞƉĂƌĞĚ ďLJ ĞdžƚĞƌŶĂů ǀĂůƵĂƟŽŶ ĞdžƉĞƌƚƐ͕ ďĂƐĞĚ ŽŶ ĚŝƐĐŽƵŶƚĞĚ ůů ůŽĂŶƐ͕ ĂĚǀĂŶĐĞƐ ĂŶĚ ŽƚŚĞƌ ƌĞĐĞŝǀĂďůĞƐ ĨƌŽŵ ĐƵƐƚŽŵĞƌƐ ĂƌĞ ĐĂƐŚ ŇŽǁƐ Žƌ ĐĂƉŝƚĂůŝƐĂƟŽŶ ŽĨ ŶĞƚ ŝŶĐŽŵĞ ;ĂƐ ĂƉƉƌŽƉƌŝĂƚĞͿ͘ ƐƵďũĞĐƚƚŽĐŽŶƟŶƵŽƵƐŵĂŶĂŐĞŵĞŶƚƌĞǀŝĞǁ͘ƐƉĞĐŝĮĐƉƌŽǀŝƐŝŽŶ dŚĞ ĨĂŝƌ ǀĂůƵĞƐ ĂƌĞ ƌĞĐŽŐŶŝƐĞĚ ŝŶ ƚŚĞ ĐŽŶƐŽůŝĚĂƚĞĚ ĮŶĂŶĐŝĂů ĨŽƌůŽĂŶŝŵƉĂŝƌŵĞŶƚŝƐĞƐƚĂďůŝƐŚĞĚŝĨƚŚĞƌĞŝƐŽďũĞĐƟǀĞĞǀŝĚĞŶĐĞ ƐƚĂƚĞŵĞŶƚƐŽĨƚŚĞĐŽŶƐŽůŝĚĂƚĞĚĞŶƟƚLJ͕ĂŶĚĂƌĞƌĞǀŝĞǁĞĚĂƚƚŚĞ ƚŚĂƚƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉǁŝůůŶŽƚďĞĂďůĞƚŽĐŽůůĞĐƚĂůůĂŵŽƵŶƚƐ ĞŶĚŽĨĞĂĐŚƌĞƉŽƌƟŶŐƉĞƌŝŽĚƚŽĞŶƐƵƌĞƚŚĂƚƚŚĞĐĂƌƌLJŝŶŐǀĂůƵĞ ĚƵĞ ƵŶĚĞƌ ƚŚĞ ƚĞƌŵƐ ŽĨ ůŽĂŶƐ͘ dŚĞ ĂŵŽƵŶƚ ŽĨ ƚŚĞ ƉƌŽǀŝƐŝŽŶ ŽĨůĂŶĚĂŶĚďƵŝůĚŝŶŐƐŝƐŶŽƚŵĂƚĞƌŝĂůůLJĚŝīĞƌĞŶƚĨƌŽŵƚŚĞŝƌĨĂŝƌ ĂƉƉƌŽdžŝŵĂƚĞƐƚŚĞĚŝīĞƌĞŶĐĞďĞƚǁĞĞŶƚŚĞĐĂƌƌLJŝŶŐĂŵŽƵŶƚĂŶĚ ǀĂůƵĞƐ͘ ƚŚĞƌĞĐŽǀĞƌĂďůĞĂŵŽƵŶƚ͕ǁŚŝĐŚŝƐƚŚĞĐƵƌƌĞŶƚďĞƐƚĞƐƟŵĂƚĞŽĨ ƚŚĞƉƌĞƐĞŶƚǀĂůƵĞŽĨĞdžƉĞĐƚĞĚĨƵƚƵƌĞĐĂƐŚŇŽǁƐĂƌŝƐŝŶŐĨƌŽŵƚŚĞ ŶLJƌĞǀĂůƵĂƟŽŶŝŶĐƌĞĂƐĞĂƌŝƐŝŶŐŽŶƚŚĞƌĞǀĂůƵĂƟŽŶŽĨůĂŶĚĂŶĚ ĂƐƐĞƚ͘ůůďĂĚĚĞďƚƐĂƌĞǁƌŝƩĞŶŽīĂŐĂŝŶƐƚƚŚĞƐƉĞĐŝĮĐƉƌŽǀŝƐŝŽŶ ďƵŝůĚŝŶŐƐ ŝƐ ĐƌĞĚŝƚĞĚ ƚŽ ƚŚĞ ĂƐƐĞƚ ƌĞǀĂůƵĂƟŽŶ ƌĞƐĞƌǀĞ͕ ĞdžĐĞƉƚ ĨŽƌůŽĂŶŝŵƉĂŝƌŵĞŶƚŝŶƚŚĞƉĞƌŝŽĚŝŶǁŚŝĐŚƚŚĞLJĂƌĞĐůĂƐƐŝĮĞĚĂƐ ƚŽ ƚŚĞ ĞdžƚĞŶƚ ƚŚĂƚ ŝƚ ƌĞǀĞƌƐĞƐ Ă ƌĞǀĂůƵĂƟŽŶ ĚĞĐƌĞĂƐĞ ĨŽƌ ƚŚĞ ŝƌƌĞĐŽǀĞƌĂďůĞ͘^ƵďƐĞƋƵĞŶƚƌĞĐŽǀĞƌŝĞƐĂƌĞĐƌĞĚŝƚĞĚƚŽƚŚĞƉƌŽǀŝƐŝŽŶ ƐĂŵĞ ĂƐƐĞƚ ƉƌĞǀŝŽƵƐůLJ ƌĞĐŽŐŶŝƐĞĚ ĂƐ ĂŶ ĞdžƉĞŶƐĞ ŝŶ ƉƌŽĮƚ Žƌ ĨŽƌůŽĂŶůŽƐƐĞƐŝŶƚŚĞƐƚĂƚĞŵĞŶƚŽĨĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ͘ ůŽƐƐ͕ ŝŶ ǁŚŝĐŚ ĐĂƐĞ ƚŚĞ ŝŶĐƌĞĂƐĞ ŝƐ ĐƌĞĚŝƚĞĚ ƚŽ ƚŚĞ ƐƚĂƚĞŵĞŶƚ ŽĨ ĐŽŵƉƌĞŚĞŶƐŝǀĞ ŝŶĐŽŵĞ ƚŽ ƚŚĞ ĞdžƚĞŶƚ ŽĨ ƚŚĞ ĚĞĐƌĞĂƐĞ 'ĞŶĞƌĂůƉƌŽǀŝƐŝŽŶƐĨŽƌŝŵƉĂŝƌŵĞŶƚĂƌĞŵĂŝŶƚĂŝŶĞĚƚŽĐŽǀĞƌŝŶĐƵƌƌĞĚ ƉƌĞǀŝŽƵƐůLJĐŚĂƌŐĞĚ͘ĚĞĐƌĞĂƐĞŝŶĐĂƌƌLJŝŶŐĂŵŽƵŶƚĂƌŝƐŝŶŐŽŶ ůŽƐƐĞƐ ƵŶŝĚĞŶƟĮĞĚ Ăƚ ďĂůĂŶĐĞ ĚĂƚĞ ŝŶ ƚŚĞ ŽǀĞƌĂůů ƉŽƌƞŽůŝŽ ŽĨ ƚŚĞƌĞǀĂůƵĂƟŽŶŽĨůĂŶĚĂŶĚďƵŝůĚŝŶŐƐŝƐĐŚĂƌŐĞĚĂƐĂŶĞdžƉĞŶƐĞ ůŽĂŶƐ͕ĂĚǀĂŶĐĞƐĂŶĚŽƚŚĞƌƌĞĐĞŝǀĂďůĞƐĨƌŽŵĐƵƐƚŽŵĞƌƐ͘ ŝŶ ƐƚĂƚĞŵĞŶƚ ŽĨ ĐŽŵƉƌĞŚĞŶƐŝǀĞ ŝŶĐŽŵĞ ƚŽ ƚŚĞ ĞdžƚĞŶƚ ƚŚĂƚ ŝƚ 52 BSP Annual Report 2014 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 ĞdžĐĞĞĚƐƚŚĞďĂůĂŶĐĞ͕ŝĨĂŶLJ͕ŚĞůĚŝŶƚŚĞĂƐƐĞƚƌĞǀĂůƵĂƟŽŶƌĞƐĞƌǀĞ >ĞĂƐĞŝŶĐŽŵĞŝƐƌĞĐŽŐŶŝƐĞĚŽŶĂƐƚƌĂŝŐŚƚůŝŶĞďĂƐŝƐŽǀĞƌƚŚĞƚĞƌŵ ƌĞůĂƟŶŐƚŽĂƉƌĞǀŝŽƵƐƌĞǀĂůƵĂƟŽŶŽĨƚŚĂƚĂƐƐĞƚ͘ ŽĨƚŚĞůĞĂƐĞ͘ ƵŝůĚŝŶŐƵŶĚĞƌĐŽŶƐƚƌƵĐƟŽŶƐĂƌĞƌĞĨĞƌƌĞĚƚŽĂƐǁŽƌŬŝŶƉƌŽŐƌĞƐƐ L. Cash and cash equivalents ĂŶĚĂƌĞĂĐĐŽƵŶƚĞĚĨŽƌĂƚĐŽƐƚĂŶĚƐƵďƐĞƋƵĞŶƚůLJƌĞĐůĂƐƐŝĮĞĚƚŽ ďƵŝůĚŝŶŐ;WƌĞŵŝƐĞƐͿƵƉŽŶĐŽŵƉůĞƟŽŶ͘ &Žƌ ƚŚĞ ƉƵƌƉŽƐĞ ŽĨ ƚŚĞ ĐĂƐŚ ŇŽǁ ƐƚĂƚĞŵĞŶƚ͕ ĐĂƐŚ ĂŶĚ ĐĂƐŚ ĞƋƵŝǀĂůĞŶƚƐĐŽŵƉƌŝƐĞŶŽƚĞƐĂŶĚĐŽŝŶƐ͕ĂŶĚďĂůĂŶĐĞƐĚƵĞƚŽĂŶĚ ĞƉƌĞĐŝĂƟŽŶ ŝƐ ƉƌŽǀŝĚĞĚ ŽŶ ƉƌŽƉĞƌƚLJ͕ ƉůĂŶƚ ĂŶĚ ĞƋƵŝƉŵĞŶƚ͕ ĨƌŽŵ ŽƚŚĞƌ ďĂŶŬƐ ǁŝƚŚ ŽƌŝŐŝŶĂů ŵĂƚƵƌŝƟĞƐ ŽĨ ůĞƐƐ ƚŚĂŶ ƚŚƌĞĞ ŝŶĐůƵĚŝŶŐĨƌĞĞŚŽůĚďƵŝůĚŝŶŐƐďƵƚĞdžĐůƵĚŝŶŐůĂŶĚ͘ĞƉƌĞĐŝĂƟŽŶŝƐ ŵŽŶƚŚƐ͘ ĐĂůĐƵůĂƚĞĚŽŶĂƐƚƌĂŝŐŚƚůŝŶĞďĂƐŝƐƐŽĂƐƚŽǁƌŝƚĞŽīƚŚĞŶĞƚĐŽƐƚ ŽƌŽƚŚĞƌƌĞǀĂůƵĞĚĂŵŽƵŶƚŽĨĞĂĐŚĂƐƐĞƚŽǀĞƌŝƚƐĞdžƉĞĐƚĞĚƵƐĞĨƵů M. Financial assets ůŝĨĞƚŽŝƚƐĞƐƟŵĂƚĞĚƌĞƐŝĚƵĂůǀĂůƵĞ͘>ĞĂƐĞŚŽůĚŝŵƉƌŽǀĞŵĞŶƚƐĂƌĞ ĚĞƉƌĞĐŝĂƚĞĚ ŽǀĞƌ ƚŚĞ ƉĞƌŝŽĚ ŽĨ ƚŚĞ ůĞĂƐĞ Žƌ ĞƐƟŵĂƚĞĚ ƵƐĞĨƵů dŚĞ'ƌŽƵƉĐůĂƐƐŝĮĞƐŝƚƐĮŶĂŶĐŝĂůĂƐƐĞƚƐŝŶƚŚĞĨŽůůŽǁŝŶŐĐĂƚĞŐŽƌŝĞƐ͗ ůŝĨĞ͕ǁŚŝĐŚĞǀĞƌŝƐƚŚĞƐŚŽƌƚĞƌ͕ƵƐŝŶŐƚŚĞƐƚƌĂŝŐŚƚůŝŶĞŵĞƚŚŽĚ͘dŚĞ Ăƚ ĨĂŝƌ ǀĂůƵĞ ƚŚƌŽƵŐŚ ƉƌŽĮƚ Žƌ ůŽƐƐ͕ ůŽĂŶƐ ĂŶĚ ƌĞĐĞŝǀĂďůĞƐ͕ ĂŶĚ ĞƐƟŵĂƚĞĚƵƐĞĨƵůůŝĨĞ͕ƌĞƐŝĚƵĂůǀĂůƵĞĂŶĚĚĞƉƌĞĐŝĂƟŽŶŵĞƚŚŽĚŝƐ ĂǀĂŝůĂďůĞĨŽƌƐĂůĞ͘dŚĞĐůĂƐƐŝĮĐĂƟŽŶĚĞƉĞŶĚƐŽŶƚŚĞƉƵƌƉŽƐĞĨŽƌ ƌĞǀŝĞǁĞĚĂƚƚŚĞĞŶĚŽĨĞĂĐŚĂŶŶƵĂůƌĞƉŽƌƟŶŐƉĞƌŝŽĚ͘ ǁŚŝĐŚƚŚĞĮŶĂŶĐŝĂůĂƐƐĞƚƐǁĞƌĞĂĐƋƵŝƌĞĚ͘ dŚĞĨŽůůŽǁŝŶŐďĂƐŝƐĂŶĚŵĞƚŚŽĚŽĨĚĞƉƌĞĐŝĂƟŽŶŝƐƵƐĞĚ͗ DĂŶĂŐĞŵĞŶƚĚĞƚĞƌŵŝŶĞƐƚŚĞĐůĂƐƐŝĮĐĂƟŽŶŽĨŝƚƐĮŶĂŶĐŝĂůĂƐƐĞƚƐ ĂƚŝŶŝƟĂůƌĞĐŽŐŶŝƟŽŶ͘ ůĂƐƐŽĨĂƐƐĞƚ DĞƚŚŽĚ ZĂƚĞ ͻFinancial assets at fair value through profit or loss. WƌŽƉĞƌƚLJ ^ƚƌĂŝŐŚƚůŝŶĞďĂƐŝƐ ϮͲϯйƉ͘Ă &ŝŶĂŶĐŝĂů ĂƐƐĞƚƐ Ăƚ ĨĂŝƌ ǀĂůƵĞ ƚŚƌŽƵŐŚ ƉƌŽĮƚ Žƌ ůŽƐƐ ĂƌĞ ;ĞdžĐůƵĚŝŶŐůĂŶĚͿ ĮŶĂŶĐŝĂůĂƐƐĞƚƐŚĞůĚĨŽƌƚƌĂĚŝŶŐ͘ĮŶĂŶĐŝĂůĂƐƐĞƚŝƐĐůĂƐƐŝĮĞĚ WůĂŶƚĂŶĚ ^ƚƌĂŝŐŚƚůŝŶĞďĂƐŝƐ ϭϬͲϮϱйƉĂ ŝŶƚŚŝƐĐĂƚĞŐŽƌLJŝĨĂĐƋƵŝƌĞĚƉƌŝŶĐŝƉĂůůLJĨŽƌƚŚĞƉƵƌƉŽƐĞŽĨ ĞƋƵŝƉŵĞŶƚ ƐĞůůŝŶŐŝŶƚŚĞƐŚŽƌƚƚĞƌŵ͘ĞƌŝǀĂƟǀĞƐĂƌĞĂůƐŽĐĂƚĞŐŽƌŝƐĞĚĂƐ ƋƵŝƉŵĞŶƚƵŶĚĞƌ ^ƚƌĂŝŐŚƚůŝŶĞďĂƐŝƐ ϲͲϮϬйƉĂ ŚĞůĚĨŽƌƚƌĂĚŝŶŐƵŶůĞƐƐƚŚĞLJĂƌĞĚĞƐŝŐŶĂƚĞĚĂƐŚĞĚŐĞƐ͘ƐƐĞƚƐ ŽƉĞƌĂƟŶŐůĞĂƐĞ ŝŶƚŚŝƐĐĂƚĞŐŽƌLJĂƌĞĐůĂƐƐŝĮĞĚĂƐĐƵƌƌĞŶƚĂƐƐĞƚƐŝĨĞdžƉĞĐƚĞĚ ƚŽďĞƐĞƩůĞĚǁŝƚŚŝŶϭϮŵŽŶƚŚƐ͕ŽƚŚĞƌǁŝƐĞƚŚĞLJĂƌĞĐůĂƐƐŝĮĞĚ ĂƐŶŽŶͲĐƵƌƌĞŶƚ͘dŚĞ'ƌŽƵƉ͛ƐĮŶĂŶĐŝĂůĂƐƐĞƚƐĂƚĨĂŝƌǀĂůƵĞ 'ĂŝŶƐŽƌůŽƐƐĞƐŽŶĚŝƐƉŽƐĂůƐ;ďĞŝŶŐƚŚĞĚŝīĞƌĞŶĐĞďĞƚǁĞĞŶƚŚĞ ƚŚƌŽƵŐŚƉƌŽĮƚŽƌůŽƐƐĐŽŵƉƌŝƐĞĐĞƌƚĂŝŶĞƋƵŝƚLJƐĞĐƵƌŝƟĞƐ ĐĂƌƌLJŝŶŐǀĂůƵĞĂƚƚŚĞƟŵĞŽĨƐĂůĞŽƌĚŝƐƉŽƐĂůĂŶĚƚŚĞƉƌŽĐĞĞĚƐ ŝŶĐůƵĚĞĚƵŶĚĞƌŽƚŚĞƌĮŶĂŶĐŝĂůĂƐƐĞƚƐŝŶƚŚĞƐƚĂƚĞŵĞŶƚŽĨ ƌĞĐĞŝǀĞĚͿ ĂƌĞ ƚĂŬĞŶ ŝŶƚŽ ĂĐĐŽƵŶƚ ŝŶ ĚĞƚĞƌŵŝŶŝŶŐ ŽƉĞƌĂƟŶŐ ĮŶĂŶĐŝĂůƉŽƐŝƟŽŶ͘ ƉƌŽĮƚ ĨŽƌ ƚŚĞ LJĞĂƌ͘ tŚĞƌĞ ƚŚĞ ĐĂƌƌLJŝŶŐ ǀĂůƵĞ ŽĨ ĂŶ ĂƐƐĞƚ ŝƐ ŐƌĞĂƚĞƌ ƚŚĂŶ ŝƚƐ ĞƐƟŵĂƚĞĚ ƌĞĐŽǀĞƌĂďůĞ ĂŵŽƵŶƚ͕ ŝƚ ŝƐ ǁƌŝƩĞŶ ͻ Loans and receivables ĚŽǁŶ ŝŵŵĞĚŝĂƚĞůLJ ƚŽ ŝƚƐ ƌĞĐŽǀĞƌĂďůĞ ĂŵŽƵŶƚ͘ ZĞƉĂŝƌƐ ĂŶĚ >ŽĂŶƐĂŶĚƌĞĐĞŝǀĂďůĞƐĂƌĞŶŽŶͲĚĞƌŝǀĂƟǀĞĮŶĂŶĐŝĂůĂƐƐĞƚƐ ŵĂŝŶƚĞŶĂŶĐĞĂƌĞƚĂŬĞŶŝŶƚŽĂĐĐŽƵŶƚŝŶĚĞƚĞƌŵŝŶŝŶŐŽƉĞƌĂƟŶŐ ǁŝƚŚĮdžĞĚŽƌĚĞƚĞƌŵŝŶĂďůĞƉĂLJŵĞŶƚƐƚŚĂƚĂƌĞŶŽƚƋƵŽƚĞĚ ƉƌŽĮƚǁŚĞŶƚŚĞĞdžƉĞŶĚŝƚƵƌĞŝƐŝŶĐƵƌƌĞĚ͘ ŝŶĂŶĂĐƟǀĞŵĂƌŬĞƚ͘dŚĞLJĂƌĞŝŶĐůƵĚĞĚŝŶĐƵƌƌĞŶƚĂƐƐĞƚƐ͕ ĞdžĐĞƉƚĨŽƌŵĂƚƵƌŝƟĞƐŐƌĞĂƚĞƌƚŚĂŶϭϮŵŽŶƚŚƐĂŌĞƌƚŚĞĞŶĚŽĨ K. Leases ƚŚĞƌĞƉŽƌƟŶŐƉĞƌŝŽĚ͘dŚĞƐĞĂƌĞĐůĂƐƐŝĮĞĚĂƐŶŽŶͲĐƵƌƌĞŶƚ ĂƐƐĞƚƐ͘dŚĞ'ƌŽƵƉ͛ƐůŽĂŶƐĂŶĚƌĞĐĞŝǀĂďůĞƐĐŽŵƉƌŝƐĞ͚ƚƌĂĚĞ Bank is lessee ĂŶĚŽƚŚĞƌƌĞĐĞŝǀĂďůĞƐ͛ĂŶĚ͚ĐĂƐŚĂŶĚĐĂƐŚĞƋƵŝǀĂůĞŶƚƐ͛ŝŶƚŚĞ ůůůĞĂƐĞƐĞŶƚĞƌĞĚŝŶƚŽďLJƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉĂƌĞŽƉĞƌĂƟŶŐ ƐƚĂƚĞŵĞŶƚŽĨĮŶĂŶĐŝĂůƉŽƐŝƟŽŶ ůĞĂƐĞƐ͘ dŽƚĂů ƉĂLJŵĞŶƚƐ ŵĂĚĞ ĂƌĞ ĐŚĂƌŐĞĚ ƚŽ ƚŚĞ ƐƚĂƚĞŵĞŶƚ ŽĨ ĐŽŵƉƌĞŚĞŶƐŝǀĞ ŝŶĐŽŵĞ ƌĞŇĞĐƟŶŐ ƚŚĞ ƉĂƩĞƌŶ ŽĨ ďĞŶĞĮƚƐ ͻ Held to maturity investments ĚĞƌŝǀĞĚĨƌŽŵƚŚĞůĞĂƐĞĚĂƐƐĞƚƐ͘ ,ĞůĚ ƚŽ ŵĂƚƵƌŝƚLJ ŝŶǀĞƐƚŵĞŶƚƐ ŝŶĐůƵĚĞƐ ŶŽŶͲĚĞƌŝǀĂƟǀĞ ĮŶĂŶĐŝĂů ĂƐƐĞƚƐ ǁŝƚŚ ĮdžĞĚ Žƌ ĚĞƚĞƌŵŝŶĂďůĞ ƉĂLJŵĞŶƚƐ Bank is lessor ĂŶĚĮdžĞĚŵĂƚƵƌŝƟĞƐƚŚĂƚƚŚĞ'ƌŽƵƉŚĂƐďŽƚŚƚŚĞŝŶƚĞŶƟŽŶ &ŝŶĂŶĐĞ ůĞĂƐĞƐ ĂƌĞ ŝŶĐůƵĚĞĚ ŝŶ >ŽĂŶƐ͕ ĚǀĂŶĐĞƐ ĂŶĚ ŽƚŚĞƌ ĂŶĚĂďŝůŝƚLJƚŽŚŽůĚƚŽŵĂƚƵƌŝƚLJ͘ ƌĞĐĞŝǀĂďůĞƐĨƌŽŵƵƐƚŽŵĞƌƐĂŶĚĂƌĞĂĐĐŽƵŶƚĞĚĨŽƌƵŶĚĞƌƚŚĞ ĮŶĂŶĐĞŵĞƚŚŽĚǁŚĞƌĞďLJŝŶĐŽŵĞŝƐƚĂŬĞŶƚŽĂĐĐŽƵŶƚŽǀĞƌƚŚĞ DĂŶĂŐĞŵĞŶƚĚĞƚĞƌŵŝŶĞƐƚŚĞĐůĂƐƐŝĮĐĂƟŽŶŽĨŝŶǀĞƐƚŵĞŶƚ ůŝĨĞ ŽĨ ƚŚĞ ůĞĂƐĞ ŝŶ ƉƌŽƉŽƌƟŽŶ ƚŽ ƚŚĞ ŽƵƚƐƚĂŶĚŝŶŐ ŝŶǀĞƐƚŵĞŶƚ ƐĞĐƵƌŝƟĞƐŚĞůĚƚŽŵĂƚƵƌŝƚLJĂƚƚŚĞŝƌŝŶŝƟĂůƌĞĐŽŐŶŝƟŽŶĂŶĚ ďĂůĂŶĐĞ͘ ƐƐĞƚƐ ƐƵďũĞĐƚ ƚŽ ŽƉĞƌĂƟŶŐ ůĞĂƐĞƐ ĂƌĞ ƐĞƉĂƌĂƚĞůLJ ƌĞĂƐƐĞƐƐĞƐ ƚŚĞ ĂƉƉƌŽƉƌŝĂƚĞŶĞƐƐ ŽĨ ƚŚĂƚ ĐůĂƐƐŝĮĐĂƟŽŶ Ăƚ ĚŝƐĐůŽƐĞĚŝŶƚŚĞƐƚĂƚĞŵĞŶƚŽĨĮŶĂŶĐŝĂůƉŽƐŝƟŽŶ͕ĂĐĐŽƌĚŝŶŐƚŽƚŚĞ ƚŚĞ ĞŶĚ ŽĨ ĞĂĐŚ ƌĞƉŽƌƟŶŐ ƉĞƌŝŽĚ͘ /ŶǀĞƐƚŵĞŶƚ ŶĂƚƵƌĞŽĨƚŚĞĂƐƐĞƚ͘ ƐĞĐƵƌŝƟĞƐŚĞůĚƚŽŵĂƚƵƌŝƚLJĂƌĞĐĂƌƌŝĞĚĂƚĂŵŽƌƟƐĞĚĐŽƐƚ͘ dŚĞ 'ƌŽƵƉ͛Ɛ ŚĞůĚ ƚŽ ŵĂƚƵƌŝƚLJ ŝŶǀĞƐƚŵĞŶƚƐ ĐŽŵƉƌŝƐĞ dŚĞƐĞ ĂƐƐĞƚƐ ĂƌĞ ƐƚĂƚĞĚ Ăƚ ĐŽƐƚ Žƌ ƌĞǀĂůƵĞĚ ĂŵŽƵŶƚ ůĞƐƐ dƌĞĂƐƵƌLJ ĂŶĚ ĞŶƚƌĂů ĂŶŬ ďŝůůƐ ĂŶĚ ĐĞƌƚĂŝŶ ĚĞďƚ ĂĐĐƵŵƵůĂƚĞĚ ĚĞƉƌĞĐŝĂƟŽŶ͘ dŚĞ ĂƐƐĞƚƐ ĂƌĞ ĚĞƉƌĞĐŝĂƚĞĚ ŽŶ Ă ƐĞĐƵƌŝƟĞƐ ŝŶĐůƵĚĞĚ ƵŶĚĞƌ ŽƚŚĞƌ ĮŶĂŶĐŝĂů ĂƐƐĞƚƐ ŝŶ ƚŚĞ ƐƚƌĂŝŐŚƚůŝŶĞďĂƐŝƐŽǀĞƌƚŚĞůŝĨĞŽĨƚŚĞŽƉĞƌĂƟŶŐůĞĂƐĞ͘ ƐƚĂƚĞŵĞŶƚŽĨĮŶĂŶĐŝĂůƉŽƐŝƟŽŶ͘ BSP Annual Report 2014 53 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 Recognition and measurement O. Employee benefits ZĞŐƵůĂƌƉƵƌĐŚĂƐĞƐĂŶĚƐĂůĞƐŽĨĮŶĂŶĐŝĂůĂƐƐĞƚƐĂƌĞƌĞĐŽŐŶŝƐĞĚ ŽŶƚŚĞƚƌĂĚĞͲĚĂƚĞʹƚŚĞĚĂƚĞŽŶǁŚŝĐŚƚŚĞŐƌŽƵƉĐŽŵŵŝƚƐƚŽ ůŝĂďŝůŝƚLJ ŝƐ ƌĞƋƵŝƌĞĚ ĨŽƌ ďĞŶĞĮƚƐ ĂĐĐƌƵŝŶŐ ƚŽ ĞŵƉůŽLJĞĞƐ ŝŶ ƉƵƌĐŚĂƐĞŽƌƐĞůůƚŚĞĂƐƐĞƚ͘/ŶǀĞƐƚŵĞŶƚƐĂƌĞŝŶŝƟĂůůLJƌĞĐŽŐŶŝƐĞĚ ƌĞƐƉĞĐƚŽĨǁĂŐĞƐĂŶĚƐĂůĂƌŝĞƐ͕ĂŶŶƵĂůůĞĂǀĞ͕ĂŶĚůŽŶŐƐĞƌǀŝĐĞ Ăƚ ĨĂŝƌ ǀĂůƵĞ ƉůƵƐ ƚƌĂŶƐĂĐƟŽŶ ĐŽƐƚƐ ĨŽƌ Ăůů ĮŶĂŶĐŝĂů ĂƐƐĞƚƐ ŶŽƚ ůĞĂǀĞǁŚĞŶŝƚŝƐƉƌŽďĂďůĞƚŚĂƚƐĞƩůĞŵĞŶƚǁŝůůďĞƌĞƋƵŝƌĞĚĂŶĚ ĐĂƌƌŝĞĚĂƚĨĂŝƌǀĂůƵĞƚŚƌŽƵŐŚƉƌŽĮƚŽƌůŽƐƐ͘ ƚŚĞLJĂƌĞĐĂƉĂďůĞŽĨďĞŝŶŐŵĞĂƐƵƌĞĚƌĞůŝĂďůLJ͘ &ŝŶĂŶĐŝĂů ĂƐƐĞƚƐ ĐĂƌƌŝĞĚ Ăƚ ĨĂŝƌ ǀĂůƵĞ ƚŚƌŽƵŐŚ ƉƌŽĮƚ Žƌ ůŽƐƐ >ŝĂďŝůŝƟĞƐƌĞĐŽŐŶŝƐĞĚŝŶƌĞƐƉĞĐƚŽĨĞŵƉůŽLJĞĞďĞŶĞĮƚƐĞdžƉĞĐƚĞĚ ĂƌĞ ŝŶŝƟĂůůLJ ƌĞĐŽŐŶŝƐĞĚ Ăƚ ĨĂŝƌ ǀĂůƵĞ͕ ĂŶĚ ƚƌĂŶƐĂĐƟŽŶ ĐŽƐƚƐ ƚŽďĞƐĞƩůĞĚǁŝƚŚŝŶϭϮŵŽŶƚŚƐ͕ĂƌĞŵĞĂƐƵƌĞĚĂƚƚŚĞŝƌŶŽŵŝŶĂů ĂƌĞ ĞdžƉĞŶƐĞĚ ŝŶ ƚŚĞ ŝŶĐŽŵĞ ƐƚĂƚĞŵĞŶƚ͘ &ŝŶĂŶĐŝĂů ĂƐƐĞƚƐ ĂƌĞ ǀĂůƵĞƐ ƵƐŝŶŐ ƚŚĞ ƌĞŵƵŶĞƌĂƟŽŶ ƌĂƚĞ ĞdžƉĞĐƚĞĚ ƚŽ ĂƉƉůLJ Ăƚ ƚŚĞ ĚĞƌĞĐŽŐŶŝƐĞĚǁŚĞŶƚŚĞƌŝŐŚƚƐƚŽƌĞĐĞŝǀĞĐĂƐŚŇŽǁƐĨƌŽŵƚŚĞ ƟŵĞŽĨƐĞƩůĞŵĞŶƚ͘ ŝŶǀĞƐƚŵĞŶƚƐ ŚĂǀĞ ĞdžƉŝƌĞĚ Žƌ ŚĂǀĞ ďĞĞŶ ƚƌĂŶƐĨĞƌƌĞĚ ĂŶĚ ƚŚĞ ŐƌŽƵƉ ŚĂƐ ƚƌĂŶƐĨĞƌƌĞĚ ƐƵďƐƚĂŶƟĂůůLJ Ăůů ƌŝƐŬƐ ĂŶĚ ƌĞǁĂƌĚƐ ŽĨ >ŝĂďŝůŝƟĞƐƌĞĐŽŐŶŝƐĞĚŝŶƌĞƐƉĞĐƚŽĨĞŵƉůŽLJĞĞďĞŶĞĮƚƐǁŚŝĐŚĂƌĞ ŽǁŶĞƌƐŚŝƉ͘ ŶŽƚĞdžƉĞĐƚĞĚƚŽďĞƐĞƩůĞĚǁŝƚŚŝŶϭϮŵŽŶƚŚƐĂƌĞŵĞĂƐƵƌĞĚĂƐ ƚŚĞƉƌĞƐĞŶƚǀĂůƵĞŽĨƚŚĞĞƐƟŵĂƚĞĚĨƵƚƵƌĞĐĂƐŚŽƵƞůŽǁƐƚŽďĞ ǀĂŝůĂďůĞͲĨŽƌͲƐĂůĞ ĮŶĂŶĐŝĂů ĂƐƐĞƚƐ ĂŶĚ ĮŶĂŶĐŝĂů ĂƐƐĞƚƐ Ăƚ ĨĂŝƌ ŵĂĚĞďLJƚŚĞĐŽŶƐŽůŝĚĂƚĞĚĞŶƟƚLJŝŶƌĞƐƉĞĐƚŽĨƐĞƌǀŝĐĞƐƉƌŽǀŝĚĞĚ ǀĂůƵĞ ƚŚƌŽƵŐŚ ƉƌŽĮƚ Žƌ ůŽƐƐ ĂƌĞ ƐƵďƐĞƋƵĞŶƚůLJ ĐĂƌƌŝĞĚ Ăƚ ĨĂŝƌ ďLJĞŵƉůŽLJĞĞƐƵƉƚŽƌĞƉŽƌƟŶŐĚĂƚĞ͘ ǀĂůƵĞ͘ >ŽĂŶƐ ĂŶĚ ƌĞĐĞŝǀĂďůĞƐ ĂƌĞ ƐƵďƐĞƋƵĞŶƚůLJ ĐĂƌƌŝĞĚ Ăƚ ĂŵŽƌƟƐĞĚĐŽƐƚƵƐŝŶŐƚŚĞĞīĞĐƟǀĞŝŶƚĞƌĞƐƚŵĞƚŚŽĚ͘ Post-employment benefits - defined contribution plans ĚĞĮŶĞĚĐŽŶƚƌŝďƵƟŽŶƉůĂŶŝƐĂƉĞŶƐŝŽŶƉůĂŶƵŶĚĞƌǁŚŝĐŚƚŚĞ 'ĂŝŶƐ Žƌ ůŽƐƐĞƐ ĂƌŝƐŝŶŐ ĨƌŽŵ ĐŚĂŶŐĞƐ ŝŶ ƚŚĞ ĨĂŝƌ ǀĂůƵĞ ŽĨ ƚŚĞ ĂŶŬ ĂŶĚ ƚŚĞ 'ƌŽƵƉ ƉĂLJƐ ĮdžĞĚ ĐŽŶƚƌŝďƵƟŽŶƐ ŝŶƚŽ Ă ƐĞƉĂƌĂƚĞ ͚ĮŶĂŶĐŝĂů ĂƐƐĞƚƐ Ăƚ ĨĂŝƌ ǀĂůƵĞ ƚŚƌŽƵŐŚ ƉƌŽĮƚ Žƌ ůŽƐƐ͛ ĐĂƚĞŐŽƌLJ ĨƵŶĚ͕ĂŶĚƚŚĞƌĞŝƐŶŽƌĞĐŽƵƌƐĞƚŽƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉĨŽƌ ĂƌĞƉƌĞƐĞŶƚĞĚŝŶƚŚĞŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚǁŝƚŚŝŶ͚KƚŚĞƌďĂŶŬŝŶŐ ĞŵƉůŽLJĞĞƐŝĨƚŚĞĨƵŶĚŚĂƐŝŶƐƵĸĐŝĞŶƚĂƐƐĞƚƐƚŽƉĂLJĞŵƉůŽLJĞĞ ŝŶĐŽŵĞ͛ŝŶƚŚĞƉĞƌŝŽĚŝŶǁŚŝĐŚƚŚĞLJĂƌŝƐĞ͘ŝǀŝĚĞŶĚŝŶĐŽŵĞĨƌŽŵ ďĞŶĞĮƚƐƌĞůĂƟŶŐƚŽƐĞƌǀŝĐĞƵƉƚŽƚŚĞďĂůĂŶĐĞƐŚĞĞƚĚĂƚĞ͘ ĮŶĂŶĐŝĂůĂƐƐĞƚƐĂƚĨĂŝƌǀĂůƵĞƚŚƌŽƵŐŚƉƌŽĮƚŽƌůŽƐƐŝƐƌĞĐŽŐŶŝƐĞĚ ŝŶ ƚŚĞ ŝŶĐŽŵĞ ƐƚĂƚĞŵĞŶƚ ĂƐ ƉĂƌƚ ŽĨ ŽƚŚĞƌ ŝŶĐŽŵĞ ǁŚĞŶ ƚŚĞ dŚĞ ĂŶŬ ĂŶĚ ƚŚĞ 'ƌŽƵƉ ƉĂLJƐ ĐŽŶƚƌŝďƵƟŽŶƐ ƚŽ ƉƵďůŝĐůLJ Žƌ ŐƌŽƵƉ͛ƐƌŝŐŚƚƚŽƌĞĐĞŝǀĞƉĂLJŵĞŶƚƐŝƐĞƐƚĂďůŝƐŚĞĚ͘ ƉƌŝǀĂƚĞůLJĂĚŵŝŶŝƐƚĞƌĞĚƐƵƉĞƌĂŶŶƵĂƟŽŶƉůĂŶƐŽŶĂŵĂŶĚĂƚŽƌLJ͕ ĐŽŶƚƌĂĐƚƵĂůŽƌǀŽůƵŶƚĂƌLJďĂƐŝƐŝŶƌĞƐƉĞĐƚŽĨƐĞƌǀŝĐĞƐƌĞŶĚĞƌĞĚ Offsetting financial instruments ƵƉƚŽďĂůĂŶĐĞƐŚĞĞƚĚĂƚĞďLJĂůůƐƚĂīŵĞŵďĞƌƐŽƚŚĞƌƚŚĂŶŶŽŶͲ &ŝŶĂŶĐŝĂů ĂƐƐĞƚƐ ĂŶĚ ůŝĂďŝůŝƟĞƐ ĂƌĞ ŽīƐĞƚ ĂŶĚ ƚŚĞ ŶĞƚ ĂŵŽƵŶƚ ĐŝƟnjĞŶĐŽŶƚƌĂĐƚƐƚĂīĨŽƌǁŚŽŵƚŚĞƌĞŝƐŶŽůĞŐĂůŽďůŝŐĂƟŽŶƚŽ ƌĞƉŽƌƚĞĚŝŶƚŚĞďĂůĂŶĐĞƐŚĞĞƚǁŚĞŶƚŚĞƌĞŝƐĂůĞŐĂůůLJĞŶĨŽƌĐĞĂďůĞ ĚŽƐŽ͘dŚĞĐŽŶƚƌŝďƵƟŽŶƐĂƌĞĂƚƚŚĞĐƵƌƌĞŶƚƌĂƚĞŽĨĞŵƉůŽLJĞĞƐ͛ ƌŝŐŚƚƚŽŽīƐĞƚƚŚĞƌĞĐŽŐŶŝƐĞĚĂŵŽƵŶƚƐĂŶĚƚŚĞƌĞŝƐĂŶŝŶƚĞŶƟŽŶ ŐƌŽƐƐƐĂůĂƌLJ͘KŶĐĞƚŚĞĐŽŶƚƌŝďƵƟŽŶƐŚĂǀĞďĞĞŶƉĂŝĚ͕ƚŚĞĂŶŬ ƚŽ ƐĞƩůĞ ŽŶ Ă ŶĞƚ ďĂƐŝƐ Žƌ ƌĞĂůŝƐĞ ƚŚĞ ĂƐƐĞƚ ĂŶĚ ƐĞƩůĞ ƚŚĞ ĂŶĚƚŚĞ'ƌŽƵƉŚĂǀĞŶŽĨƵƌƚŚĞƌƉĂLJŵĞŶƚŽďůŝŐĂƟŽŶƐĨŽƌƉŽƐƚͲ ůŝĂďŝůŝƚLJ ƐŝŵƵůƚĂŶĞŽƵƐůLJ͘ dŚĞ ůĞŐĂůůLJ ĞŶĨŽƌĐĞĂďůĞ ƌŝŐŚƚ ŵƵƐƚ ĞŵƉůŽLJŵĞŶƚ ďĞŶĞĮƚƐ ĨƌŽŵ ƚŚĞ ĚĂƚĞ ĂŶ ĞŵƉůŽLJĞĞ ĐĞĂƐĞƐ ŶŽƚďĞĐŽŶƟŶŐĞŶƚŽŶĨƵƚƵƌĞĞǀĞŶƚƐĂŶĚŵƵƐƚďĞĞŶĨŽƌĐĞĂďůĞ ĞŵƉůŽLJŵĞŶƚǁŝƚŚƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉ͘ ŝŶƚŚĞŶŽƌŵĂůĐŽƵƌƐĞŽĨďƵƐŝŶĞƐƐĂŶĚŝŶƚŚĞĞǀĞŶƚŽĨĚĞĨĂƵůƚ͕ ŝŶƐŽůǀĞŶĐLJŽƌďĂŶŬƌƵƉƚĐLJŽĨƚŚĞĐŽŵƉĂŶLJŽƌƚŚĞĐŽƵŶƚĞƌƉĂƌƚLJ͘ P. Income tax N. Provisions Current Tax ƵƌƌĞŶƚƚĂdžŝƐĐĂůĐƵůĂƚĞĚďLJƌĞĨĞƌĞŶĐĞƚŽƚŚĞĂŵŽƵŶƚŽĨŝŶĐŽŵĞ WƌŽǀŝƐŝŽŶƐ ĂƌĞ ƌĞĐŽŐŶŝƐĞĚ ǁŚĞŶ ƚŚĞ ŽŵƉĂŶLJ ŚĂƐ Ă ƉƌĞƐĞŶƚ ƚĂdžĞƐƉĂLJĂďůĞŽƌƌĞĐŽǀĞƌĂďůĞŝŶƌĞƐƉĞĐƚŽĨƚŚĞƚĂdžĂďůĞƉƌŽĮƚŽƌ ŽďůŝŐĂƟŽŶ ;ůĞŐĂů Žƌ ĐŽŶƐƚƌƵĐƟǀĞͿ ĂƐ Ă ƌĞƐƵůƚ ŽĨ Ă ƉĂƐƚ ĞǀĞŶƚ͕ ƚĂdžůŽƐƐĨŽƌƚŚĞƉĞƌŝŽĚ͘/ƚŝƐĐĂůĐƵůĂƚĞĚƵƐŝŶŐƚĂdžƌĂƚĞƐĂŶĚƚĂdžůĂǁƐ ŝƚŝƐƉƌŽďĂďůĞƚŚĂƚƚŚĞŽŵƉĂŶLJǁŝůůďĞƌĞƋƵŝƌĞĚƚŽƐĞƩůĞƚŚĞ ƚŚĂƚŚĂǀĞďĞĞŶĞŶĂĐƚĞĚŽƌƐƵďƐƚĂŶƟǀĞůLJĞŶĂĐƚĞĚďLJƚŚĞƌĞƉŽƌƟŶŐ ŽďůŝŐĂƟŽŶ͕ĂŶĚĂƌĞůŝĂďůĞĞƐƟŵĂƚĞĐĂŶďĞŵĂĚĞŽĨƚŚĞĂŵŽƵŶƚ ĚĂƚĞ͘ƵƌƌĞŶƚƚĂdžĨŽƌĐƵƌƌĞŶƚĂŶĚƉƌŝŽƌƉĞƌŝŽĚƐŝƐƌĞĐŽŐŶŝƐĞĚĂƐĂ ŽĨƚŚĞŽďůŝŐĂƟŽŶ͘dŚĞĂŵŽƵŶƚƌĞĐŽŐŶŝƐĞĚĂƐĂƉƌŽǀŝƐŝŽŶŝƐƚŚĞ ůŝĂďŝůŝƚLJ;ŽƌĂƐƐĞƚͿƚŽƚŚĞĞdžƚĞŶƚƚŚĂƚŝƚŝƐƵŶƉĂŝĚ;ŽƌƌĞĨƵŶĚĂďůĞͿ͘ ďĞƐƚĞƐƟŵĂƚĞŽĨƚŚĞĐŽŶƐŝĚĞƌĂƟŽŶƌĞƋƵŝƌĞĚƚŽƐĞƩůĞƚŚĞƉƌĞƐĞŶƚ ŽďůŝŐĂƟŽŶĂƚƌĞƉŽƌƟŶŐĚĂƚĞ͕ƚĂŬŝŶŐŝŶƚŽĂĐĐŽƵŶƚƚŚĞƌŝƐŬƐĂŶĚ Deferred tax ƵŶĐĞƌƚĂŝŶƟĞƐƐƵƌƌŽƵŶĚŝŶŐƚŚĞŽďůŝŐĂƟŽŶ͘tŚĞƌĞĂƉƌŽǀŝƐŝŽŶŝƐ ĞĨĞƌƌĞĚ ƚĂdž ŝƐ ĂĐĐŽƵŶƚĞĚ ĨŽƌ ƵƐŝŶŐ ƚŚĞ ďĂůĂŶĐĞ ƐŚĞĞƚ ůŝĂďŝůŝƚLJ ŵĞĂƐƵƌĞĚƵƐŝŶŐƚŚĞĐĂƐŚŇŽǁƐĞƐƟŵĂƚĞĚƚŽƐĞƩůĞƚŚĞƉƌĞƐĞŶƚ ŵĞƚŚŽĚ͘ dĞŵƉŽƌĂƌLJ ĚŝīĞƌĞŶĐĞƐ ĂƌĞ ĚŝīĞƌĞŶĐĞƐ ďĞƚǁĞĞŶ ƚŚĞ ŽďůŝŐĂƟŽŶ͕ ŝƚƐ ĐĂƌƌLJŝŶŐ ĂŵŽƵŶƚ ŝƐ ƚŚĞ ƉƌĞƐĞŶƚ ǀĂůƵĞ ŽĨ ƚŚŽƐĞ ƚĂdžďĂƐĞŽĨĂŶĂƐƐĞƚŽƌůŝĂďŝůŝƚLJĂŶĚŝƚƐĐĂƌƌLJŝŶŐĂŵŽƵŶƚŝŶƚŚĞ ĐĂƐŚŇŽǁƐ͘tŚĞŶƐŽŵĞŽƌĂůůŽĨƚŚĞĞĐŽŶŽŵŝĐďĞŶĞĮƚƐƌĞƋƵŝƌĞĚ ƐƚĂƚĞŵĞŶƚ ŽĨ ĮŶĂŶĐŝĂů ƉŽƐŝƟŽŶ͘ dŚĞ ƚĂdž ďĂƐĞ ŽĨ ĂŶ ĂƐƐĞƚ Žƌ ƚŽƐĞƩůĞĂƉƌŽǀŝƐŝŽŶĂƌĞĞdžƉĞĐƚĞĚƚŽďĞƌĞĐŽǀĞƌĞĚĨƌŽŵĂƚŚŝƌĚ ůŝĂďŝůŝƚLJŝƐƚŚĞĂŵŽƵŶƚĂƩƌŝďƵƚĞĚƚŽƚŚĂƚĂƐƐĞƚŽƌůŝĂďŝůŝƚLJĨŽƌƚĂdž ƉĂƌƚLJ͕ƚŚĞƌĞĐĞŝǀĂďůĞŝƐƌĞĐŽŐŶŝƐĞĚĂƐĂŶĂƐƐĞƚŝĨŝƚŝƐǀŝƌƚƵĂůůLJ ƉƵƌƉŽƐĞƐ͘ /Ŷ ƉƌŝŶĐŝƉůĞ͕ ĚĞĨĞƌƌĞĚ ƚĂdž ůŝĂďŝůŝƟĞƐ ĂƌĞ ƌĞĐŽŐŶŝƐĞĚ ĐĞƌƚĂŝŶƚŚĂƚƌĞŝŵďƵƌƐĞŵĞŶƚǁŝůůďĞƌĞĐĞŝǀĞĚĂŶĚƚŚĞĂŵŽƵŶƚŽĨ ĨŽƌ Ăůů ƚĂdžĂďůĞ ƚĞŵƉŽƌĂƌLJ ĚŝīĞƌĞŶĐĞƐ͘ ĞĨĞƌƌĞĚ ƚĂdž ĂƐƐĞƚƐ ĂƌĞ ƚŚĞƌĞĐĞŝǀĂďůĞĐĂŶďĞŵĞĂƐƵƌĞĚƌĞůŝĂďůLJ͘ ƌĞĐŽŐŶŝƐĞĚƚŽƚŚĞĞdžƚĞŶƚƚŚĂƚŝƚŝƐƉƌŽďĂďůĞƚŚĂƚƐƵĸĐŝĞŶƚƚĂdžĂďůĞ ĂŵŽƵŶƚƐǁŝůůďĞĂǀĂŝůĂďůĞĂŐĂŝŶƐƚǁŚŝĐŚĚĞĚƵĐƟďůĞƚĞŵƉŽƌĂƌLJ ĚŝīĞƌĞŶĐĞƐŽƌƵŶƵƐĞĚƚĂdžůŽƐƐĞƐĂŶĚƚĂdžŽīƐĞƚƐĐĂŶďĞƵƟůŝƐĞĚ͘ 54 BSP Annual Report 2014 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 ,ŽǁĞǀĞƌ͕ĚĞĨĞƌƌĞĚƚĂdžĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐĂƌĞŶŽƚƌĞĐŽŐŶŝƐĞĚ R. Share capital ŝĨƚŚĞƚĞŵƉŽƌĂƌLJĚŝīĞƌĞŶĐĞƐŐŝǀŝŶŐƌŝƐĞƚŽƚŚĞŵĂƌŝƐĞĨƌŽŵƚŚĞ ŝŶŝƟĂůƌĞĐŽŐŶŝƟŽŶŽĨĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐǁŚŝĐŚĂīĞĐƚƐŶĞŝƚŚĞƌ Share issue costs ƚĂdžĂďůĞŝŶĐŽŵĞŶŽƌĂĐĐŽƵŶƟŶŐƉƌŽĮƚ͘ džƚĞƌŶĂůĐŽƐƚƐĚŝƌĞĐƚůLJĂƩƌŝďƵƚĂďůĞƚŽƚŚĞŝƐƐƵĞŽĨŶĞǁƐŚĂƌĞƐ ĂƌĞĚĞĚƵĐƚĞĚĨƌŽŵĞƋƵŝƚLJŶĞƚŽĨĂŶLJƌĞůĂƚĞĚŝŶĐŽŵĞƚĂdžĞƐ͘ ĞĨĞƌƌĞĚƚĂdžĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐĂƌĞŵĞĂƐƵƌĞĚĂƚƚŚĞƚĂdžƌĂƚĞƐ ƚŚĂƚĂƌĞĞdžƉĞĐƚĞĚƚŽĂƉƉůLJƚŽƚŚĞƉĞƌŝŽĚ;ƐͿǁŚĞŶƚŚĞĂƐƐĞƚĂŶĚ Dividends on ordinary shares ůŝĂďŝůŝƚLJŐŝǀŝŶŐƌŝƐĞƚŽƚŚĞŵĂƌĞƌĞĂůŝƐĞĚŽƌƐĞƩůĞĚ͕ďĂƐĞĚŽŶƚĂdž ŝǀŝĚĞŶĚƐ ŽŶ ŽƌĚŝŶĂƌLJ ƐŚĂƌĞƐ ĂƌĞ ƌĞĐŽŐŶŝƐĞĚ ŝŶ ĞƋƵŝƚLJ ŝŶ ƚŚĞ ƌĂƚĞƐ ;ĂŶĚ ƚĂdž ůĂǁƐͿ ƚŚĂƚ ŚĂǀĞ ďĞĞŶ ĞŶĂĐƚĞĚ Žƌ ƐƵďƐƚĂŶƟǀĞůLJ ƉĞƌŝŽĚŝŶǁŚŝĐŚƚŚĞLJĂƌĞĚĞĐůĂƌĞĚ͘ ĞŶĂĐƚĞĚ ďLJ ƚŚĞ ƌĞƉŽƌƟŶŐ ĚĂƚĞ͘ dŚĞ ŵĞĂƐƵƌĞŵĞŶƚ ŽĨ ĚĞĨĞƌƌĞĚ ƚĂdž ůŝĂďŝůŝƟĞƐ ĂŶĚ ĂƐƐĞƚƐ ƌĞŇĞĐƚƐ ƚŚĞ ƚĂdž ĐŽŶƐĞƋƵĞŶĐĞƐ ƚŚĂƚ ŝǀŝĚĞŶĚƐĨŽƌƚŚĞLJĞĂƌ͕ĚĞĐůĂƌĞĚĂŌĞƌƚŚĞďĂůĂŶĐĞƐŚĞĞƚĚĂƚĞ͕ ǁŽƵůĚĨŽůůŽǁĨƌŽŵƚŚĞŵĂŶŶĞƌŝŶǁŚŝĐŚƚŚĞĂŶŬĞdžƉĞĐƚƐ͕ĂƚƚŚĞ ĂƌĞĚĞĂůƚǁŝƚŚŝŶƚŚĞƐƵďƐĞƋƵĞŶƚĞǀĞŶƚƐŶŽƚĞ͘ ƌĞƉŽƌƟŶŐĚĂƚĞ͕ƚŽƌĞĐŽǀĞƌŽƌƐĞƩůĞƚŚĞĐĂƌƌLJŝŶŐĂŵŽƵŶƚŽĨŝƚƐ ĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐ͘ S. Asset impairment ĞĨĞƌƌĞĚ ƚĂdž ĂƐƐĞƚƐ ĂŶĚ ůŝĂďŝůŝƟĞƐ ĂƌĞ ŽīƐĞƚ ǁŚĞŶ ƚŚĞLJ ƌĞůĂƚĞ ƚ ĞĂĐŚ ƌĞƉŽƌƟŶŐ ĚĂƚĞ͕ ƚŚĞ ĂŶŬ ĂŶĚ ƚŚĞ 'ƌŽƵƉ ƌĞǀŝĞǁƐ ƚŚĞ ƚŽŝŶĐŽŵĞƚĂdžĞƐůĞǀŝĞĚďLJƚŚĞƐĂŵĞƚĂdžĂƟŽŶĂƵƚŚŽƌŝƚLJĂŶĚƚŚĞ ĐĂƌƌLJŝŶŐ ĂŵŽƵŶƚƐ ŽĨ ŝƚƐ ƚĂŶŐŝďůĞ ĂŶĚ ŝŶƚĂŶŐŝďůĞ ĂƐƐĞƚƐ ƚŽ ĂŶŬŝŶƚĞŶĚƐƚŽƐĞƩůĞŝƚƐĐƵƌƌĞŶƚƚĂdžĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐŽŶĂ ĚĞƚĞƌŵŝŶĞ ǁŚĞƚŚĞƌ ƚŚĞƌĞ ŝƐ ĂŶLJ ŝŶĚŝĐĂƟŽŶ ƚŚĂƚ ƚŚŽƐĞ ĂƐƐĞƚƐ ŶĞƚďĂƐŝƐ͘ ŚĂǀĞƐƵīĞƌĞĚĂŶŝŵƉĂŝƌŵĞŶƚůŽƐƐ͘/ĨĂŶLJƐƵĐŚŝŶĚŝĐĂƟŽŶĞdžŝƐƚƐ͕ ƚŚĞƌĞĐŽǀĞƌĂďůĞĂŵŽƵŶƚŽĨƚŚĞĂƐƐĞƚŝƐĞƐƟŵĂƚĞĚŝŶŽƌĚĞƌƚŽ Current and deferred tax for the period ĚĞƚĞƌŵŝŶĞƚŚĞĞdžƚĞŶƚŽĨƚŚĞŝŵƉĂŝƌŵĞŶƚůŽƐƐ;ŝĨĂŶLJͿ͘tŚĞƌĞƚŚĞ ƵƌƌĞŶƚĂŶĚĚĞĨĞƌƌĞĚƚĂdžŝƐƌĞĐŽŐŶŝƐĞĚĂƐĂŶĞdžƉĞŶƐĞŽƌŝŶĐŽŵĞ ĂƐƐĞƚĚŽĞƐŶŽƚŐĞŶĞƌĂƚĞĐĂƐŚŇŽǁƐƚŚĂƚĂƌĞŝŶĚĞƉĞŶĚĞŶƚĨƌŽŵ ŝŶ ƚŚĞ ƐƚĂƚĞŵĞŶƚ ŽĨ ĐŽŵƉƌĞŚĞŶƐŝǀĞ ŝŶĐŽŵĞ͕ ĞdžĐĞƉƚ ǁŚĞŶ ŝƚ ŽƚŚĞƌĂƐƐĞƚƐ͕ƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉĞƐƟŵĂƚĞƐƚŚĞƌĞĐŽǀĞƌĂďůĞ ƌĞůĂƚĞƐƚŽŝƚĞŵƐĐƌĞĚŝƚĞĚŽƌĚĞďŝƚĞĚĚŝƌĞĐƚůLJƚŽĞƋƵŝƚLJ͕ŝŶǁŚŝĐŚ ĂŵŽƵŶƚŽĨƚŚĞĐĂƐŚͲŐĞŶĞƌĂƟŶŐƵŶŝƚƚŽǁŚŝĐŚƚŚĞĂƐƐĞƚďĞůŽŶŐƐ͘ ĐĂƐĞƚŚĞĚĞĨĞƌƌĞĚƚĂdžŝƐĂůƐŽƌĞĐŽŐŶŝƐĞĚĚŝƌĞĐƚůLJŝŶĞƋƵŝƚLJ͘ 'ŽŽĚǁŝůů͕ ŝŶƚĂŶŐŝďůĞ ĂƐƐĞƚƐ ǁŝƚŚ ŝŶĚĞĮŶŝƚĞ ƵƐĞĨƵů ůŝǀĞƐ ĂŶĚ ŝŶƚĂŶŐŝďůĞ ĂƐƐĞƚƐ ŶŽƚ LJĞƚ ĂǀĂŝůĂďůĞ ĨŽƌ ƵƐĞ ĂƌĞ ƚĞƐƚĞĚ ĨŽƌ Q. Foreign currency ŝŵƉĂŝƌŵĞŶƚĂŶŶƵĂůůLJĂŶĚǁŚĞŶĞǀĞƌƚŚĞƌĞŝƐĂŶŝŶĚŝĐĂƟŽŶƚŚĂƚ ƚŚĞĂƐƐĞƚŵĂLJďĞŝŵƉĂŝƌĞĚ͘ŶŝŵƉĂŝƌŵĞŶƚŽĨŐŽŽĚǁŝůůŝƐŶŽƚ dŚĞĐŽŶƐŽůŝĚĂƚĞĚĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŽĨƚŚĞĂŶŬĂƌĞƉƌĞƐĞŶƚĞĚ ƐƵďƐĞƋƵĞŶƚůLJƌĞǀĞƌƐĞĚ͘ ŝŶƚŚĞĐƵƌƌĞŶĐLJŽĨƚŚĞƉƌŝŵĂƌLJĞĐŽŶŽŵŝĐĞŶǀŝƌŽŶŵĞŶƚŝŶǁŚŝĐŚ ƚŚĞĞŶƟƚLJŽƉĞƌĂƚĞƐ;ŝƚƐĨƵŶĐƟŽŶĂůĐƵƌƌĞŶĐLJͿ͘&ŽƌƚŚĞƉƵƌƉŽƐĞ ZĞĐŽǀĞƌĂďůĞ ĂŵŽƵŶƚ ŝƐ ƚŚĞ ŚŝŐŚĞƌ ŽĨ ĨĂŝƌ ǀĂůƵĞ ůĞƐƐ ĐŽƐƚ ŽĨ ƚŚĞƐĞ ĐŽŶƐŽůŝĚĂƚĞĚ ĮŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ͕ ƚŚĞ ƌĞƐƵůƚƐ ĂŶĚ ŽĨ ĚŝƐƉŽƐĂů ĂŶĚ ǀĂůƵĞ ŝŶ ƵƐĞ͘ /Ŷ ĂƐƐĞƐƐŝŶŐ ǀĂůƵĞ ŝŶ ƵƐĞ͕ ƚŚĞ ĮŶĂŶĐŝĂů ƉŽƐŝƟŽŶ ŽĨ ƚŚĞ ĂŶŬ ĂƌĞ ĞdžƉƌĞƐƐĞĚ ŝŶ WĂƉƵĂ EĞǁ ĞƐƟŵĂƚĞĚ ĨƵƚƵƌĞ ĐĂƐŚ ŇŽǁƐ ĂƌĞ ĚŝƐĐŽƵŶƚĞĚ ƚŽ ƚŚĞŝƌ ƉƌĞƐĞŶƚ 'ƵŝŶĞĂ ŬŝŶĂ͕ ǁŚŝĐŚ ŝƐ ƚŚĞ ĂŶŬ͛Ɛ ĨƵŶĐƟŽŶĂů ĂŶĚ ƉƌĞƐĞŶƚĂƟŽŶ ǀĂůƵĞƵƐŝŶŐĂƉƌĞͲƚĂdžĚŝƐĐŽƵŶƚƌĂƚĞƚŚĂƚƌĞŇĞĐƚƐĐƵƌƌĞŶƚŵĂƌŬĞƚ ĐƵƌƌĞŶĐLJ͘ ĂƐƐĞƐƐŵĞŶƚƐŽĨƚŚĞƟŵĞǀĂůƵĞŽĨŵŽŶĞLJĂŶĚƚŚĞƌŝƐŬƐƐƉĞĐŝĮĐ ƚŽƚŚĞĂƐƐĞƚĨŽƌǁŚŝĐŚƚŚĞĞƐƟŵĂƚĞƐŽĨĨƵƚƵƌĞĐĂƐŚŇŽǁƐŚĂǀĞ /ŶƉƌĞƉĂƌŝŶŐƚŚĞĐŽŶƐŽůŝĚĂƚĞĚĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͕ƚƌĂŶƐĂĐƟŽŶƐ ŶŽƚďĞĞŶĂĚũƵƐƚĞĚ͘ ŝŶĐƵƌƌĞŶĐŝĞƐŽƚŚĞƌƚŚĂŶƚŚĞĞŶƟƚLJ͛ƐĨƵŶĐƟŽŶĂůĐƵƌƌĞŶĐLJ;ĨŽƌĞŝŐŶ ĐƵƌƌĞŶĐŝĞƐͿ ĂƌĞ ƌĞĐŽƌĚĞĚ Ăƚ ƚŚĞ ƌĂƚĞƐ ŽĨ ĞdžĐŚĂŶŐĞ ƉƌĞǀĂŝůŝŶŐ /ĨƚŚĞƌĞĐŽǀĞƌĂďůĞĂŵŽƵŶƚŽĨĂŶĂƐƐĞƚ;ŽƌĐĂƐŚͲŐĞŶĞƌĂƟŶŐƵŶŝƚͿ ŽŶ ƚŚĞ ĚĂƚĞƐ ŽĨ ƚŚĞ ƚƌĂŶƐĂĐƟŽŶƐ͘ ƚ ĞĂĐŚ ďĂůĂŶĐĞ ƐŚĞĞƚ ŝƐĞƐƟŵĂƚĞĚƚŽďĞůĞƐƐƚŚĂŶŝƚƐĐĂƌƌLJŝŶŐĂŵŽƵŶƚ͕ƚŚĞĐĂƌƌLJŝŶŐ ĚĂƚĞ͕ ŵŽŶĞƚĂƌLJ ŝƚĞŵƐ ĚĞŶŽŵŝŶĂƚĞĚ ŝŶ ĨŽƌĞŝŐŶ ĐƵƌƌĞŶĐŝĞƐ ĂƌĞ ĂŵŽƵŶƚ ŽĨ ƚŚĞ ĂƐƐĞƚ ;ĐĂƐŚͲŐĞŶĞƌĂƟŶŐ ƵŶŝƚͿ ŝƐ ƌĞĚƵĐĞĚ ƚŽ ŝƚƐ ƌĞƚƌĂŶƐůĂƚĞĚĂƚƚŚĞƌĂƚĞƐƉƌĞǀĂŝůŝŶŐĂƚƚŚĞďĂůĂŶĐĞƐŚĞĞƚĚĂƚĞ͘ ƌĞĐŽǀĞƌĂďůĞ ĂŵŽƵŶƚ͘ Ŷ ŝŵƉĂŝƌŵĞŶƚ ůŽƐƐ ŝƐ ƌĞĐŽŐŶŝƐĞĚ ŝŶ EŽŶͲŵŽŶĞƚĂƌLJŝƚĞŵƐĐĂƌƌŝĞĚĂƚĨĂŝƌǀĂůƵĞƚŚĂƚĂƌĞĚĞŶŽŵŝŶĂƚĞĚ ƉƌŽĮƚŽƌůŽƐƐŝŵŵĞĚŝĂƚĞůLJ͕ƵŶůĞƐƐƚŚĞƌĞůĞǀĂŶƚĂƐƐĞƚŝƐĐĂƌƌŝĞĚ ŝŶĨŽƌĞŝŐŶĐƵƌƌĞŶĐŝĞƐĂƌĞƌĞƚƌĂŶƐůĂƚĞĚĂƚƚŚĞƌĂƚĞƐƉƌĞǀĂŝůŝŶŐŽŶ ĂƚĨĂŝƌǀĂůƵĞ͕ŝŶǁŚŝĐŚĐĂƐĞƚŚĞŝŵƉĂŝƌŵĞŶƚůŽƐƐŝƐƚƌĞĂƚĞĚĂƐĂ ƚŚĞĚĂƚĞǁŚĞŶƚŚĞĨĂŝƌǀĂůƵĞǁĂƐĚĞƚĞƌŵŝŶĞĚ͘EŽŶͲŵŽŶĞƚĂƌLJ ƌĞǀĂůƵĂƟŽŶĚĞĐƌĞĂƐĞ͘ ŝƚĞŵƐƚŚĂƚĂƌĞŵĞĂƐƵƌĞĚŝŶƚĞƌŵƐŽĨŚŝƐƚŽƌŝĐĂůĐŽƐƚŝŶĂĨŽƌĞŝŐŶ ĐƵƌƌĞŶĐLJĂƌĞŶŽƚƌĞƚƌĂŶƐůĂƚĞĚ͘ tŚĞƌĞĂŶŝŵƉĂŝƌŵĞŶƚůŽƐƐƐƵďƐĞƋƵĞŶƚůLJƌĞǀĞƌƐĞƐ͕ƚŚĞĐĂƌƌLJŝŶŐ ĂŵŽƵŶƚŽĨƚŚĞĂƐƐĞƚ;ĐĂƐŚͲŐĞŶĞƌĂƟŶŐƵŶŝƚͿŝƐŝŶĐƌĞĂƐĞĚƚŽƚŚĞ Foreign operations ƌĞǀŝƐĞĚ ĞƐƟŵĂƚĞ ŽĨ ŝƚƐ ƌĞĐŽǀĞƌĂďůĞ ĂŵŽƵŶƚ͕ ďƵƚ ŽŶůLJ ƚŽ ƚŚĞ KŶĐŽŶƐŽůŝĚĂƟŽŶ͕ƚŚĞĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐŽĨƚŚĞĐŽŶƐŽůŝĚĂƚĞĚ ĞdžƚĞŶƚ ƚŚĂƚ ƚŚĞ ŝŶĐƌĞĂƐĞĚ ĐĂƌƌLJŝŶŐ ĂŵŽƵŶƚ ĚŽĞƐ ŶŽƚ ĞdžĐĞĞĚ ĞŶƟƚLJ͛Ɛ ŽǀĞƌƐĞĂƐ ŽƉĞƌĂƟŽŶƐ ĂƌĞ ƚƌĂŶƐůĂƚĞĚ Ăƚ ĞdžĐŚĂŶŐĞ ƌĂƚĞƐ ƚŚĞĐĂƌƌLJŝŶŐĂŵŽƵŶƚƚŚĂƚǁŽƵůĚŚĂǀĞďĞĞŶĚĞƚĞƌŵŝŶĞĚŚĂĚŶŽ ƉƌĞǀĂŝůŝŶŐĂƚƚŚĞƌĞƉŽƌƟŶŐĚĂƚĞ͘/ŶĐŽŵĞĂŶĚĞdžƉĞŶƐĞŝƚĞŵƐĂƌĞ ŝŵƉĂŝƌŵĞŶƚůŽƐƐďĞĞŶƌĞĐŽŐŶŝƐĞĚĨŽƌƚŚĞĂƐƐĞƚ;ĐĂƐŚͲŐĞŶĞƌĂƟŶŐ ƚƌĂŶƐůĂƚĞĚĂƚƚŚĞĂǀĞƌĂŐĞĞdžĐŚĂŶŐĞƌĂƚĞƐĨŽƌƚŚĞƉĞƌŝŽĚƵŶůĞƐƐ ƵŶŝƚͿŝŶƉƌŝŽƌLJĞĂƌƐ͘ƌĞǀĞƌƐĂůŽĨĂŶŝŵƉĂŝƌŵĞŶƚůŽƐƐŝƐƌĞĐŽŐŶŝƐĞĚ ĞdžĐŚĂŶŐĞ ƌĂƚĞƐ ŇƵĐƚƵĂƚĞ ƐŝŐŶŝĮĐĂŶƚůLJ͘ džĐŚĂŶŐĞ ĚŝīĞƌĞŶĐĞƐ ŝŶƉƌŽĮƚŽƌůŽƐƐŝŵŵĞĚŝĂƚĞůLJ͕ƵŶůĞƐƐƚŚĞƌĞůĞǀĂŶƚĂƐƐĞƚŝƐĐĂƌƌŝĞĚ ĂƌŝƐŝŶŐ͕ŝĨĂŶLJ͕ĂƌĞƌĞĐŽŐŶŝƐĞĚŝŶƚŚĞĨŽƌĞŝŐŶĐƵƌƌĞŶĐLJƚƌĂŶƐůĂƟŽŶ ĂƚĨĂŝƌǀĂůƵĞ͕ŝŶǁŚŝĐŚĐĂƐĞƚŚĞƌĞǀĞƌƐĂůŽĨƚŚĞŝŵƉĂŝƌŵĞŶƚůŽƐƐŝƐ ƌĞƐĞƌǀĞ͕ ĂŶĚ ƌĞĐŽŐŶŝƐĞĚ ŝŶ ƉƌŽĮƚ Žƌ ůŽƐƐ ŽŶ ĚŝƐƉŽƐĂů ŽĨ ƚŚĞ ƚƌĞĂƚĞĚĂƐĂƌĞǀĂůƵĂƟŽŶŝŶĐƌĞĂƐĞ͘ ĨŽƌĞŝŐŶŽƉĞƌĂƟŽŶ͘ BSP Annual Report 2014 55 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 T. Non-current assets held for sale Y. Comparatives EŽŶͲĐƵƌƌĞŶƚĂƐƐĞƚƐ;ĂŶĚĚŝƐƉŽƐĂůŐƌŽƵƉƐͿĐůĂƐƐŝĮĞĚĂƐŚĞůĚĨŽƌ ŽŵƉĂƌĂƟǀĞĮŐƵƌĞƐŚĂǀĞďĞĞŶĂĚũƵƐƚĞĚƚŽĐŽŶĨŽƌŵƚŽĐŚĂŶŐĞƐ ƐĂůĞ ĂƌĞ ŵĞĂƐƵƌĞĚ͕ ǁŝƚŚ ĐĞƌƚĂŝŶ ĞdžĐĞƉƟŽŶƐ͕ Ăƚ ƚŚĞ ůŽǁĞƌ ŽĨ ŝŶƉƌĞƐĞŶƚĂƟŽŶŝŶƚŚĞĐƵƌƌĞŶƚLJĞĂƌ͘ ĐĂƌƌLJŝŶŐĂŵŽƵŶƚĂŶĚĨĂŝƌǀĂůƵĞůĞƐƐĐŽƐƚƐƚŽƐĞůů͘ Z. Critical accounting estimates and judgments EŽŶͲĐƵƌƌĞŶƚ ĂƐƐĞƚƐ ĂŶĚ ĚŝƐƉŽƐĂů ŐƌŽƵƉƐ ĂƌĞĐůĂƐƐŝĮĞĚ ĂƐ ŚĞůĚ ĨŽƌƐĂůĞŝĨƚŚĞŝƌĐĂƌƌLJŝŶŐĂŵŽƵŶƚǁŝůůďĞƌĞĐŽǀĞƌĞĚƉƌŝŶĐŝƉĂůůLJ dŚĞĂƉƉůŝĐĂƟŽŶŽĨƚŚĞ'ƌŽƵƉ͛ƐĂĐĐŽƵŶƟŶŐƉŽůŝĐŝĞƐƌĞƋƵŝƌĞƐƚŚĞ ƚŚƌŽƵŐŚ Ă ƐĂůĞ ƚƌĂŶƐĂĐƟŽŶ ƌĂƚŚĞƌ ƚŚĂŶ ƚŚƌŽƵŐŚ ĐŽŶƟŶƵŝŶŐ ƵƐĞŽĨĞƐƟŵĂƚĞƐĂŶĚĂƐƐƵŵƉƟŽŶƐ͘/ĨĚŝīĞƌĞŶƚĂƐƐƵŵƉƟŽŶƐŽƌ ƵƐĞ͘dŚŝƐĐŽŶĚŝƟŽŶŝƐƌĞŐĂƌĚĞĚĂƐŵĞƚŽŶůLJǁŚĞŶƚŚĞĂƐƐĞƚ;Žƌ ĞƐƟŵĂƚĞƐ ǁĞƌĞ ĂƉƉůŝĞĚ͕ ƚŚĞ ƌĞƐƵůƟŶŐ ǀĂůƵĞƐ ǁŽƵůĚ ĐŚĂŶŐĞ͕ ĚŝƐƉŽƐĂů ŐƌŽƵƉͿ ŝƐ ĂǀĂŝůĂďůĞ ĨŽƌ ŝŵŵĞĚŝĂƚĞ ƐĂůĞ ŝŶ ŝƚƐ ƉƌĞƐĞŶƚ ŝŵƉĂĐƟŶŐƚŚĞŶĞƚĂƐƐĞƚƐĂŶĚŝŶĐŽŵĞŽĨƚŚĞ'ƌŽƵƉ͘ ĐŽŶĚŝƟŽŶƐƵďũĞĐƚŽŶůLJƚŽƚĞƌŵƐƚŚĂƚĂƌĞƵƐƵĂůĂŶĚĐƵƐƚŽŵĂƌLJ ĨŽƌƐƵĐŚĂƐĂůĞĂŶĚƚŚĞƐĂůĞŝƐŚŝŐŚůLJƉƌŽďĂďůĞ͘ Individually Assessed Provision WƌŽǀŝƐŝŽŶƐĨŽƌŝŵƉĂŝƌŵĞŶƚŽĨĮŶĂŶĐŝĂůĂƐƐĞƚƐĂƌĞƌĂŝƐĞĚǁŚĞƌĞ dŚĞƐĂůĞŽĨƚŚĞĂƐƐĞƚ;ŽƌĚŝƐƉŽƐĂůŐƌŽƵƉͿŵƵƐƚďĞĞdžƉĞĐƚĞĚƚŽ ƚŚĞƌĞŝƐŽďũĞĐƟǀĞĞǀŝĚĞŶĐĞŽĨŝŵƉĂŝƌŵĞŶƚĂƚĂŶŝŶĚŝǀŝĚƵĂů Žƌ ďĞĐŽŵƉůĞƚĞĚǁŝƚŚŝŶŽŶĞLJĞĂƌĨƌŽŵƚŚĞĚĂƚĞŽĨĐůĂƐƐŝĮĐĂƟŽŶ͕ ĐŽůůĞĐƟǀĞďĂƐŝƐ͕ĂƚĂŶĂŵŽƵŶƚĂĚĞƋƵĂƚĞƚŽĐŽǀĞƌĂƐƐĞƐƐĞĚĐƌĞĚŝƚ ĞdžĐĞƉƚŝŶƚŚĞĐŝƌĐƵŵƐƚĂŶĐĞƐǁŚĞƌĞƐĂůĞŝƐĚĞůĂLJĞĚďLJĞǀĞŶƚƐŽƌ ƌĞůĂƚĞĚ ůŽƐƐĞƐ͘ ƌĞĚŝƚ ůŽƐƐĞƐ ĂƌŝƐĞ ƉƌŝŵĂƌŝůLJ ĨƌŽŵ ůŽĂŶƐ͕ ďƵƚ ĐŝƌĐƵŵƐƚĂŶĐĞƐŽƵƚƐŝĚĞƚŚĞŽŵƉĂŶLJ͛ƐĐŽŶƚƌŽůĂŶĚƚŚĞŽŵƉĂŶLJ ĂůƐŽĨƌŽŵŽƚŚĞƌĐƌĞĚŝƚŝŶƐƚƌƵŵĞŶƚƐƐƵĐŚĂƐďĂŶŬĂĐĐĞƉƚĂŶĐĞƐ͕ ƌĞŵĂŝŶƐĐŽŵŵŝƩĞĚƚŽĂƐĂůĞ͘ ĐŽŶƟŶŐĞŶƚůŝĂďŝůŝƟĞƐ͕ŐƵĂƌĂŶƚĞĞƐĂŶĚŽƚŚĞƌĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐ͘ U. Fiji Class Shares Specific Provision /ŶĚŝǀŝĚƵĂůůLJ ĂƐƐĞƐƐĞĚ ƉƌŽǀŝƐŝŽŶƐ ĂƌĞ ƌĂŝƐĞĚ ǁŚĞƌĞ ƚŚĞƌĞ ŝƐ &ŝũŝůĂƐƐ^ŚĂƌĞƐŝƐƐƵĞĚďLJ^WŽŶǀĞƌƟďůĞEŽƚĞƐ;&ŝũŝͿ>ŝŵŝƚĞĚ͕ ŽďũĞĐƟǀĞ ĞǀŝĚĞŶĐĞ ŽĨ ŝŵƉĂŝƌŵĞŶƚ ;ǁŚĞƌĞ ƚŚĞ 'ƌŽƵƉ ĚŽĞƐ ĂƐƵďƐŝĚŝĂƌLJŽĨƚŚĞĂŶŬŝŶĐŽƌƉŽƌĂƚĞĚŝŶ&ŝũŝ͕ĂƌĞĐůĂƐƐŝĮĞĚĂƐ ŶŽƚĞdžƉĞĐƚƚŽƌĞĐĞŝǀĞĂůůŽĨƚŚĞĐĂƐŚŇŽǁƐĐŽŶƚƌĂĐƚƵĂůůLJĚƵĞͿ͘ ĞƋƵŝƚLJŽĨƚŚĞƐƵďƐŝĚŝĂƌLJ͘ /ŶĚŝǀŝĚƵĂůůLJ ĂƐƐĞƐƐĞĚ ƉƌŽǀŝƐŝŽŶƐ ĂƌĞ ŵĂĚĞ ĂŐĂŝŶƐƚ ŝŶĚŝǀŝĚƵĂů ƌŝƐŬƌĂƚĞĚĐƌĞĚŝƚĨĂĐŝůŝƟĞƐŽƚŚĞƌƚŚĂŶƌĞƚĂŝůƉĞƌƐŽŶĂůůŽĂŶƐ͘dŚĞ V. Derivative financial instruments and ƉƌŽǀŝƐŝŽŶƐĂƌĞĞƐƚĂďůŝƐŚĞĚďĂƐĞĚƉƌŝŵĂƌŝůLJŽŶĞƐƟŵĂƚĞƐŽĨƚŚĞ acceptances ƌĞĂůŝƐĂďůĞ;ĨĂŝƌͿǀĂůƵĞŽĨĐŽůůĂƚĞƌĂůƚĂŬĞŶĂŶĚĂƌĞŵĞĂƐƵƌĞĚĂƐ ƚŚĞĚŝīĞƌĞŶĐĞďĞƚǁĞĞŶĂĮŶĂŶĐŝĂůĂƐƐĞƚ͛ƐĐĂƌƌLJŝŶŐĂŵŽƵŶƚĂŶĚ &ŽƌǁĂƌĚ ĨŽƌĞŝŐŶ ĞdžĐŚĂŶŐĞ ĐŽŶƚƌĂĐƚƐ ĞŶƚĞƌĞĚ ŝŶƚŽ ĨŽƌ ƚƌĂĚŝŶŐ ƚŚĞƉƌĞƐĞŶƚǀĂůƵĞŽĨƚŚĞĞdžƉĞĐƚĞĚĨƵƚƵƌĞĐĂƐŚŇŽǁƐ;ĞdžĐůƵĚŝŶŐ ƉƵƌƉŽƐĞƐĂƌĞŝŶŝƟĂůůLJƌĞĐŽŐŶŝƐĞĚĂƚĐŽƐƚĂŶĚƐƵďƐĞƋƵĞŶƚůLJƌĞͲ ĨƵƚƵƌĞĐƌĞĚŝƚůŽƐƐĞƐƚŚĂƚŚĂǀĞŶŽƚďĞĞŶŝŶĐƵƌƌĞĚͿ͕ĚŝƐĐŽƵŶƚĞĚĂƚ ŵĞĂƐƵƌĞĚ Ăƚ ĨĂŝƌ ǀĂůƵĞ ďĂƐĞĚ ƵƉŽŶ ƚŚĞ ĨŽƌǁĂƌĚ ƌĂƚĞ͘ 'ĂŝŶƐ ƚŚĞĮŶĂŶĐŝĂůĂƐƐĞƚ͛ƐŽƌŝŐŝŶĂůĞīĞĐƟǀĞŝŶƚĞƌĞƐƚƌĂƚĞ͘^ŚŽƌƚƚĞƌŵ ĂŶĚ ůŽƐƐĞƐ ŽŶ ƐƵĐŚ ĐŽŶƚƌĂĐƚƐ ĂƌĞ ƚĂŬĞŶ ƚŽ ƚŚĞ ƐƚĂƚĞŵĞŶƚ ŽĨ ďĂůĂŶĐĞƐĂƌĞŶŽƚĚŝƐĐŽƵŶƚĞĚ͘ ĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ͘ Collective Assessed Provision ĐĐĞƉƚĂŶĐĞƐĐŽŵƉƌŝƐĞƵŶĚĞƌƚĂŬŝŶŐƐďLJƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉ ůů ŽƚŚĞƌ ůŽĂŶƐ ĂŶĚ ƌĞĐĞŝǀĂďůĞƐ ƚŚĂƚ ĚŽ ŶŽƚ ŚĂǀĞ ƐƉĞĐŝĮĐĂůůLJ ƚŽƉĂLJďŝůůƐŽĨĞdžĐŚĂŶŐĞĚƌĂǁŶŽŶĐƵƐƚŽŵĞƌƐ͘dŚĞĂŶŬĂŶĚƚŚĞ ĂƐƐĞƐƐĞĚ ƉƌŽǀŝƐŝŽŶ ĂƌĞ ĂƐƐĞƐƐĞĚ ĐŽůůĞĐƟǀĞůLJ ĨŽƌ ŝŵƉĂŝƌŵĞŶƚ 'ƌŽƵƉĞdžƉĞĐƚƐŵŽƐƚĂĐĐĞƉƚĂŶĐĞƐƚŽďĞƐĞƩůĞĚƐŝŵƵůƚĂŶĞŽƵƐůLJ ;ŽůůĞĐƟǀĞƐƐĞƐƐĞĚWƌŽǀŝƐŝŽŶͿ͘ ǁŝƚŚ ƚŚĞ ƌĞŝŵďƵƌƐĞŵĞŶƚ ĨƌŽŵ ƚŚĞ ĐƵƐƚŽŵĞƌƐ͘ ƵƐƚŽŵĞƌ ĂĐĐĞƉƚĂŶĐĞƐĂƌĞĂĐĐŽƵŶƚĞĚĨŽƌĂƐŽīͲďĂůĂŶĐĞƐŚĞĞƚƚƌĂŶƐĂĐƟŽŶƐ dŚĞ ĐŽůůĞĐƟǀĞ ĂƐƐĞƐƐĞĚ ŝƐ ŵĂŝŶƚĂŝŶĞĚ ƚŽ ƌĞĚƵĐĞ ƚŚĞ ĐĂƌƌLJŝŶŐ ĂŶĚĂƌĞĚŝƐĐůŽƐĞĚĂƐĐŽŶƟŶŐĞŶƚůŝĂďŝůŝƟĞƐĂŶĚĐŽŵŵŝƚŵĞŶƚƐ͘ ĂŵŽƵŶƚŽĨƉŽƌƞŽůŝŽƐŽĨƐŝŵŝůĂƌůŽĂŶƐĂŶĚƌĞĐĞŝǀĂďůĞƐƚŽƚŚĞŝƌ ĞƐƟŵĂƚĞĚ ƌĞĐŽǀĞƌĂďůĞ ĂŵŽƵŶƚƐ Ăƚ ƚŚĞ ĂůĂŶĐĞ ^ŚĞĞƚ ĚĂƚĞ͘ dŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉĚŽĞƐŶŽƚĂĐƟǀĞůLJĞŶƚĞƌŝŶƚŽŽƌƚƌĂĚĞ dŚĞ'ƌŽƵƉŚĂƐĞƐƚĂďůŝƐŚĞĚĂƌŝƐŬŐƌĂĚŝŶŐƐLJƐƚĞŵǁŚŝĐŚŐƌŽƵƉƐ ŝŶ ĐŽŵƉůĞdž ĨŽƌŵƐ ŽĨ ĚĞƌŝǀĂƟǀĞ ĮŶĂŶĐŝĂů ŝŶƐƚƌƵŵĞŶƚƐ ƐƵĐŚ ĂƐ ůŽĂŶĂĐĐŽƵŶƚƐǁŝƚŚƐŝŵŝůĂƌƌŝƐŬĐŚĂƌĂĐƚĞƌŝƐƟĐƐ͘ƉĞƌŝŽĚŝĐĐƌĞĚŝƚ ĐƵƌƌĞŶĐLJĂŶĚŝŶƚĞƌĞƐƚƌĂƚĞƐǁĂƉƐĂŶĚŽƉƟŽŶƐ͘ ƌĞǀŝĞǁ ŝƐ ƵŶĚĞƌƚĂŬĞŶ ďLJ ŵĂŶĂŐĞŵĞŶƚ ŽŶ Ă ĐŽůůĞĐƟǀĞ ĂŶĚ ŝŶĚŝǀŝĚƵĂů ďĂƐŝƐ ƚŽ ĂƐĐĞƌƚĂŝŶ ǁŚĞƚŚĞƌ ƚŚĞ ƌŝƐŬ ŐƌĂĚĞƐ ĂƌĞ ƐƟůů W. Segment reporting ĂƉƉƌŽƉƌŝĂƚĞ ŝŶ ĐŽŶƐŝĚĞƌĂƟŽŶ ŽĨ ĞĐŽŶŽŵŝĐ ĚĞǀĞůŽƉŵĞŶƚƐ͕ ŝŶĚƵƐƚƌLJ ƐƉĞĐŝĮĐ ĂŶĚ ďŽƌƌŽǁĞƌ ƐƉĞĐŝĮĐ ĐŝƌĐƵŵƐƚĂŶĐĞƐ͘ ^ĞŐŵĞŶƚƐĂƌĞƌĞƉŽƌƚĞĚŝŶĂŵĂŶŶĞƌĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞŝŶƚĞƌŶĂů ƉƌŽǀŝƐŝŽŶƌĂƚĞĂƉƉůŝĞĚĨŽƌĞĂĐŚƌŝƐŬŐƌĂĚĞƐĞŐŵĞŶƚǁŚŝĐŚƚĂŬĞƐ ŝŶƚŽ ĂĐĐŽƵŶƚ ƚŚĞ ĨƌĞƋƵĞŶĐLJ ŽĨ ĚĞĨĂƵůƚ ĂŶĚ ůŽƐƐ ŐŝǀĞŶ ĚĞĨĂƵůƚ ƌĞƉŽƌƟŶŐƉƌŽǀŝĚĞĚƚŽƚŚĞ'ƌŽƵƉ͛ƐĐŚŝĞĨŽƉĞƌĂƟŶŐĚĞĐŝƐŝŽŶŵĂŬĞƌ͘ ƌĂƚĞƐĨŽƌƚŚĞƉĂƌƟĐƵůĂƌƐĞŐŵĞŶƚ͘dŚĞƌŝƐŬŐƌĂĚŝŶŐĂŶĚƉƌŽǀŝƐŝŽŶ ƌĂƚĞƐ ƌĞƋƵŝƌĞ Ă ƐĞƌŝĞƐ ŽĨ ĞƐƟŵĂƚĞƐ ĂŶĚ ũƵĚŐŵĞŶƚƐ͘ ŚĂŶŐĞƐ X. Earnings per share ŝŶ ƚŚĞƐĞ ĞƐƟŵĂƚĞƐ ĐŽƵůĚ ŚĂǀĞ Ă ĚŝƌĞĐƚ ŝŵƉĂĐƚ ŽŶ ƚŚĞ ůĞǀĞů ŽĨ ƉƌŽǀŝƐŝŽŶ ĚĞƚĞƌŵŝŶĞĚ͘ dŚĞ ĂŵŽƵŶƚ ƌĞƋƵŝƌĞĚ ƚŽ ďƌŝŶŐ ƚŚĞ ĂƌŶŝŶŐƐƉĞƌƐŚĂƌĞŝƐĚĞƚĞƌŵŝŶĞĚďLJĚŝǀŝĚŝŶŐƚŚĞƉƌŽĮƚŽƌůŽƐƐ ĐŽůůĞĐƟǀĞƉƌŽǀŝƐŝŽŶ ƚŽƚŚĞůĞǀĞůĂƐƐĞƐƐĞĚŝƐ ƌĞĐŽŐŶŝƐĞĚ ŝŶ ƚŚĞ ĂƩƌŝďƵƚĂďůĞ ƚŽ ŽǁŶĞƌƐ ŽĨ ƚŚĞ ĂŶŬ ďLJ ƚŚĞ ǁĞŝŐŚƚĞĚ ĂǀĞƌĂŐĞ ƐƚĂƚĞŵĞŶƚŽĨĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ͘ ŶƵŵďĞƌŽĨƉĂƌƟĐŝƉĂƟŶŐƐŚĂƌĞƐŽƵƚƐƚĂŶĚŝŶŐĚƵƌŝŶŐƚŚĞƌĞƉŽƌƟŶŐ LJĞĂƌ͘ /ŶĚŝǀŝĚƵĂůůLJĂŶĚĐŽůůĞĐƟǀĞůLJĂƐƐĞƐƐĞĚƉƌŽǀŝƐŝŽŶƐĂƌĞĚĞƚĂŝůĞĚŝŶ EŽƚĞϭϯ͘ 56 BSP Annual Report 2014 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(17 for the Year Ended 31 December 2014 2. NET INTEREST INCOME Consolidated Banks ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<͛ϬϬϬ 2014 2013 2014 2013 Interest income ĂƐŚĂŶĚďĂůĂŶĐĞƐǁŝƚŚĞŶƚƌĂůĂŶŬ ϭϬ͕ϴϲϳ ϴ͕ϭϴϰ ϭϬ͕ϴϲϳ ϴ͕ϭϴϰ dƌĞĂƐƵƌLJďŝůůƐ ϲϳ͕ϯϵϮ ϰϳ͕ϭϳϲ ϲϳ͕ϯϵϮ ϰϳ͕ϭϳϲ ĞŶƚƌĂůĂŶŬŝůůƐ ϭϴ͕ϱϰϰ Ϯϳ͕ϴϱϬ ϭϴ͕ϱϰϰ Ϯϳ͕ϴϱϬ KƚŚĞƌĮŶĂŶĐŝĂůĂƐƐĞƚƐͲ/ŶƐĐƌŝďĞĚ^ƚŽĐŬ ϭϴϵ͕ϮϮϵ ϭϰϬ͕ϭϵϱ ϭϴϵ͕ϮϮϵ ϭϰϬ͕ϭϵϱ >ŽĂŶƐ͕ĂĚǀĂŶĐĞƐΘŽƚŚĞƌƌĞĐĞŝǀĂďůĞƐĨƌŽŵĐƵƐƚŽŵĞƌƐ ϲϮϲ͕ϵϯϮ ϱϲϵ͕ϮϲϮ ϲϮϲ͕ϵϬϭ ϱϲϴ͕ϯϯϮ KƚŚĞƌ Ϯ͕ϱϬϭ Ϯ͕ϭϰϬ Ϯ͕ϱϬϭ Ϯ͕ϭϰϬ 915,465 794,807 915,434 793,877 >ĞƐƐ͗ Interest expense ƵƐƚŽŵĞƌĚĞƉŽƐŝƚƐ ϯϵ͕ϰϮϬ ϯϮ͕Ϭϱϰ ϰϬ͕ϰϴϭ ϯϭ͕ϱϳϴ KƚŚĞƌďĂŶŬƐ ϭϰ͕ϴϰϱ ϭϯ͕ϱϴϵ ϭϰ͕ϴϰϱ ϭϯ͕ϱϴϵ ^ƵďŽƌĚŝŶĂƚĞĚĚĞďƚƐĞĐƵƌŝƟĞƐ ϴ͕ϯϭϰ ϴ͕ϯϬϳ ϴ͕ϯϭϰ ϴ͕ϯϬϳ 62,579 53,950 63,640 53,474 852,886 740,857 851,794 740,403 3. BANKING FEE AND COMMISSION INCOME Consolidated Banks ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<͛ϬϬϬ 2014 2013 2014 2013 Fee and commission income WƌŽĚƵĐƚƌĞůĂƚĞĚ Ϯϭϴ͕Ϯϯϭ ϮϬϴ͕ϲϮϴ Ϯϭϴ͕Ϯϯϭ ϮϬϴ͕ϲϮϴ dƌĂĚĞĂŶĚŝŶƚĞƌŶĂƟŽŶĂůƌĞůĂƚĞĚ ϭϰ͕ϲϳϱ ϭϯ͕ϰϲϳ ϭϰ͕ϲϳϱ ϭϯ͕ϰϲϳ ůĞĐƚƌŽŶŝĐďĂŶŬŝŶŐƌĞůĂƚĞĚ ϱϵ͕ϭϵϱ ϰϲ͕ϳϳϬ ϱϵ͕ϭϵϱ ϰϲ͕ϳϳϬ KƚŚĞƌ Ϯϲ͕ϴϳϲ ϭϳ͕ϰϭϵ ϭϴ͕ϲϭϴ ϭϮ͕ϴϱϯ 318,977 286,284 310,719 281,718 >ĞƐƐ͗ Fee and commission expenses ŐĞŶĐŝĞƐ ϳϯϱ ϱϬϰ ϳϯϱ ϱϬϰ /&ĨĞĞƐ ϲ͕ϵϬϲ ϭϴϲ ϲ͕ϵϬϲ ϭϴϲ 7,641 690 7,641 690 311,336 285,594 303,078 281,028 4. OTHER INCOME Consolidated Banks ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<͛ϬϬϬ 2014 2013 2014 2013 &ŽƌĞŝŐŶĞdžĐŚĂŶŐĞƌĞůĂƚĞĚ Ϯϲϳ͕ϰϵϳ ϯϱϯ͕ϰϲϯ Ϯϲϳ͕ϰϵϳ ϯϱϯ͕ϰϲϯ EŽŶͲďĂŶŬŝŶŐƐƵďƐŝĚŝĂƌLJŝŶĐŽŵĞ ϵϱ͕ϴϰϲ ϵϰ͕ϴϱϱ Ͳ Ͳ KƚŚĞƌ ϱϭ͕ϯϮϴ ϰϲ͕ϴϰϴ ϳϬ͕ϱϱϬ ϰϲ͕ϴϰϴ 414,671 495,166 338,047 400,311 &ŽƌĞŝŐŶĞdžĐŚĂŶŐĞƌĞůĂƚĞĚŝŶĐŽŵĞŝŶĐůƵĚĞƐŐĂŝŶƐĂŶĚůŽƐƐĞƐĨƌŽŵƐƉŽƚĂŶĚĨŽƌǁĂƌĚĐŽŶƚƌĂĐƚƐĂŶĚƚƌĂŶƐůĂƚĞĚĨŽƌĞŝŐŶĐƵƌƌĞŶĐLJĂƐƐĞƚƐ͘ BSP Annual Report 2014 57 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 5. OTHER OPERATING EXPENSES for the Year Ended 31 December 2014 Consolidated Banks ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<͛ϬϬϬ 2014 2013 2014 2013 5.ĚŵŝŶŝƐƚƌĂƟŽŶ OTHER OPERATING EXPENSES ϭϳϬ͕ϯϴϰ ϭϵϰ͕ϰϱϱ ϭϬϮ͕ϰϯϯ ϭϮϵ͕ϰϳϰ ƵĚŝƚŽƌƐƌĞŵƵŶĞƌĂƟŽŶ ϭ͕ϵϭϵ Ϯ͕ϳϬϳ ϭ͕ϱϲϴ Ϯ͕ϭϭϬ ŽŵƉƵƟŶŐ ϰϲ͕ϰϬϳ ϯϵ͕ϱϮϭ ϰϲ͕ϰϬϯ ϯϵ͕ϱϮϭ ĞƉƌĞĐŝĂƟŽŶ ϴϬ͕ϳϯϭ ϵϬ͕ϴϭϳ ϳϲ͕ϳϬϳ ϴϲ͕ϳϮϯ ŵŽƌƟƐĂƟŽŶŽĨĐŽŵƉƵƚĞƌĚĞǀĞůŽƉŵĞŶƚ ϰϲ͕ϭϭϲ ϴϱ͕Ϭϭϴ ϰϲ͕ϭϭϲ ϴϱ͕Ϭϭϴ EŽŶͲĞdžĞĐƵƟǀĞŝƌĞĐƚŽƌƐĐŽƐƚƐ ϭ͕ϳϳϮ ϭ͕ϰϯϰ ϭ͕ϰϰϱ ϭ͕ϮϮϰ EŽŶͲůĞŶĚŝŶŐůŽƐƐĞƐ Ϯϱ͕ϴϵϭ ϭϲ͕ϵϰϮ Ϯϱ͕Ϭϱϲ ϭϲ͕ϵϰϮ &ŝdžĞĚƐƐĞƚ/ŵƉĂŝƌŵĞŶƚ džƉĞŶƐĞƐ ϱϬ͕ϯϵϳ Ͳ ϱϬ͕ϯϵϳ Ͳ WƌĞŵŝƐĞƐĂŶĚĞƋƵŝƉŵĞŶƚ ϲϵ͕ϴϳϮ ϳϵ͕ϭϱϬ ϲϱ͕ϴϮϵ ϳϬ͕ϳϯϬ ϰϵϯ͕ϰϴϵ ϱϭϬ͕Ϭϰϰ ϰϭϱ͕ϵϱϰ ϰϯϭ͕ϳϰϮ ^ƚĂīĐŽƐƚƐ ĞĮŶĞĚĐŽŶƚƌŝďƵƟŽŶƉůĂŶƐ ϭϬ͕ϮϲϮ ϭϬ͕ϲϰϯ ϭϬ͕ϮϲϮ ϵ͕ϱϭϮ ^ƚĂƚƵƚŽƌLJďĞŶĞĮƚĐŽŶƚƌŝďƵƟŽŶƐ ϴ͕ϲϱϴ ϭϬ͕ϵϬϴ ϳ͕ϱϳϳ ϭϬ͕ϵϬϴ tĂŐĞƐĂŶĚƐĂůĂƌŝĞƐ ϮϮϰ͕ϳϲϬ ϮϮϳ͕ϭϱϬ ϮϬϮ͕ϲϵϭ ϮϭϬ͕ϰϲϭ KƚŚĞƌ ϲϬ͕ϭϰϴ ϳϱ͕ϭϬϰ ϱϳ͕ϭϴϳ ϳϮ͕ϳϬϯ 303,828 323,805 277,717 303,584 797,317 833,849 693,671 735,326 6. INCOME TAX Consolidated Banks ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<͛ϬϬϬ 2014 2013 2014 2013 Income tax expense ƵƌƌĞŶƚƚĂdž Ϯϰϳ͕ϳϱϰ ϭϴϭ͕Ϯϲϭ Ϯϰϰ͕ϵϵϭ ϭϴϬ͕ϵϱϵ ĞĨĞƌƌĞĚƚĂdž ;ϰϬ͕ϬϴϮͿ ;ϭϮ͕ϱϵϵͿ ;ϰϬ͕ϬϵϮͿ ;ϭϮ͕ϯϰϭͿ ƵƌƌĞŶƚLJĞĂƌ ϮϬϳ͕ϲϳϮ ϭϲϴ͕ϲϲϮ ϮϬϰ͕ϴϵϵ ϭϲϴ͕ϲϭϴ /ŶĐŽŵĞƚĂdžƵŶĚĞƌͬ;ŽǀĞƌͿƉƌŽǀŝĚĞĚŝŶƉƌĞǀŝŽƵƐLJĞĂƌƐ ϯ͕ϴϯϵ ϭ͕ϰϲϱ ϰ͕ϲϲϭ ;ϱϬϰͿ 211,511 170,127 209,560 168,114 dĂdžĐĂůĐƵůĂƚĞĚĂƚϯϬйŽĨƉƌŽĮƚďĞĨŽƌĞƚĂdž;ϮϬϭϯ͗ϯϬйͿ ϭϵϳ͕ϬϬϯ ϭϳϴ͕ϰϬϲ ϭϵϲ͕ϲϱϲ ϭϳϳ͕ϴϲϯ dĂdžĐĂůĐƵůĂƚĞĚĂƚϮϬйŽĨƉƌŽĮƚďĞĨŽƌĞƚĂdžͲƐƵďƐŝĚŝĂƌLJ Ϯ͕ϵϴϴ ϯ͕ϮϰϲͲ- džƉĞŶƐĞƐŶŽƚĚĞĚƵĐƟďůĞĨŽƌƚĂdž ϲ͕ϯϭϰ ;ϭϯ͕ϱϮϬͿ ϴ͕Ϯϰϯ ;ϵ͕ϮϰϱͿ /ŵƉĂĐƚŽĨĐŚĂŶŐĞŝŶƚĂdžƌĂƚĞʹ&ŝũŝƐƵďƐŝĚŝĂƌLJ Ͳ ϱϯϬ Ͳ Ͳ dĂdžůŽƐƐŶŽƚƌĞĐŽŐŶŝƐĞĚ ϭ͕ϯϰϳ Ͳ Ͳ Ͳ /ŶĐŽŵĞƚĂdžƵŶĚĞƌͬ;ŽǀĞƌͿƉƌŽǀŝĚĞĚŝŶƉƌĞǀŝŽƵƐLJĞĂƌƐ ϯ͕ϴϱϵ ϭ͕ϰϲϱ ϰ͕ϲϲϭ ;ϱϬϰͿ 211,511 170,127 209,560 168,114 Provision for income tax ƚϭ:ĂŶƵĂƌLJ ;ϯϯ͕ϯϵϱͿ ;ϭϯ͕ϭϭϮͿ ;ϯϯ͕ϮϮϮͿ ;ϭϯ͕ϬϮϮͿ /ŶĐŽŵĞƚĂdžƉƌŽǀŝƐŝŽŶ ;Ϯϰϳ͕ϳϱϰͿ ;ϭϴϭ͕ϮϲϭͿ ;Ϯϰϰ͕ϵϵϭͿ ;ϭϴϬ͕ϵϱϵͿ WƌĞǀŝŽƵƐLJĞĂƌƐŽǀĞƌͬ;ƵŶĚĞƌͿƉƌŽǀŝĚĞĚ ϱ͕Ϯϱϳ ϰ͕ϭϮϱ Ϯ͕ϵϭϵ ϰ͕ϭϮϱ &ŽƌĞŝŐŶƚĂdžƉĂŝĚ ϭϮ͕ϭϯϬ ϳ͕ϲϭϳ ϭϭ͕ϴϭϲ ϳ͕ϯϵϴ dĂdžƉĂLJŵĞŶƚƐŵĂĚĞ ϮϬϬ͕ϳϰϬ ϭϰϵ͕Ϯϯϲ ϮϬϬ͕ϳϰϬ ϭϰϵ͕Ϯϯϲ At 31 December (63,022) (33,395) (62,738) (33,222) 58 BSP Annual Report 2014 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 6. INCOME TAX FRQWLQXHG Consolidated Banks ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<͛ϬϬϬ 2014 2013 2014 2013 Deferred taxes ^ƉĞĐŝĮĐĂůůŽǁĂŶĐĞĨŽƌůŽƐƐĞƐŽŶůŽĂŶƐ͕ĂĚǀĂŶĐĞƐΘŽƚŚĞƌ ƌĞĐĞŝǀĂďůĞƐĨƌŽŵĐƵƐƚŽŵĞƌƐ ϭϭ͕ϭϳϯ ϭϭ͕ϳϬϰ ϭϭ͕ϭϳϯ ϭϭ͕ϳϬϰ 'ĞŶĞƌĂůĂůůŽǁĂŶĐĞĨŽƌůŽƐƐĞƐŽŶůŽĂŶƐ͕ĂĚǀĂŶĐĞƐΘŽƚŚĞƌ ƌĞĐĞŝǀĂďůĞƐĨƌŽŵĐƵƐƚŽŵĞƌƐ ϴϲ͕ϵϱϯ ϳϭ͕Ϭϯϯ ϴϲ͕ϵϱϯ ϳϭ͕Ϭϯϯ ŵƉůŽLJĞĞƌĞůĂƚĞĚƉƌŽǀŝƐŝŽŶƐ ϭϵ͕ϯϱϬ ϭϴ͕ϳϬϴ ϭϵ͕Ϯϲϳ ϭϴ͕ϰϱϯ WƌĞƉĂŝĚĞdžƉĞŶƐĞƐ ;ϭ͕ϮϱϯͿ ;ϭ͕ϮϴϱͿ ;ϭ͕ϮϱϯͿ ;ϭ͕ϮϴϱͿ KƚŚĞƌƉƌŽǀŝƐŝŽŶƐ ϮϮ͕ϳϭϭ ϭϳ͕Ϭϴϱ Ϯϲ͕ϭϵϭ ϭϲ͕ϱϮϳ &ŝdžĞĚƐƐĞƚƐ ;ϰϰ͕ϰϲϵͿ ;Ϯϵ͕ϮϯϰͿ ;ϰϯ͕ϵϵϭͿ ;Ϯϳ͕ϬϯϯͿ hŶƌĞĂůŝƐĞĚĨŽƌĞŝŐŶĞdžĐŚĂŶŐĞŐĂŝŶƐ ;ϵϬϴͿ ;ϭϬ͕ϰϰϰͿ ;ϵϬϴͿ ;ϭϬ͕ϯϴϭͿ ĐĐƌƵĂůƐ ϭϴ͕ϭϮϬ ϵ͕ϰϯϱ ϭϴ͕ϭϮϬ ϵ͕ϰϯϱ 111,677 87,002 115,552 88,453 Represented by: ĞĨĞƌƌĞĚƚĂdžĂƐƐĞƚ ϭϲϭ͕ϵϮϲ ϭϯϰ͕ϯϳϮ ϭϲϭ͕ϳϬϯ ϭϮϳ͕ϭϱϭ ĞĨĞƌƌĞĚƚĂdžůŝĂďŝůŝƚLJ ;ϱϬ͕ϮϰϵͿ ;ϰϳ͕ϯϳϬͿ ;ϰϲ͕ϭϱϭͿ ;ϯϴ͕ϲϵϴͿ At 31 December 111,677 87,002 115,552 88,453 Movement in deferred tax is reconciled as follows: ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<͛ϬϬϬ KƉĞŶŝŶŐ ƵƌƌĞŶƚ ĚũƵƐƚŵĞŶƚ ZĞǀĂůƵĂƟŽŶ ůŽƐŝŶŐ ďĂůĂŶĐĞ ƉĞƌŝŽĚWΘ> ďƌŽƵŐŚƚ ΘŶĞƚĂĚĚŝƟŽŶ ĂůĂŶĐĞ Consolidated - 2014 DŽǀĞŵĞŶƚƐ ĨŽƌǁĂƌĚ 'ƌŽƐƐĚĞĨĞƌƌĞĚƚĂdžůŝĂďŝůŝƟĞƐ ;ϰϳ͕ϯϳϬͿ ϳ͕ϱϱϱ ϲϭϯ ;ϭϭ͕ϬϰϴͿ ;ϱϬ͕ϮϰϵͿ 'ƌŽƐƐĚĞĨĞƌƌĞĚƚĂdžĂƐƐĞƚƐ ϭϯϰ͕ϯϳϮ ϯϮ͕ϱϮϳ ;ϰ͕ϵϳϯͿ Ͳ ϭϲϭ͕ϵϮϲ 87,002 40,082 (4,360) (11,048) 111,677 Consolidated - 2013 'ƌŽƐƐĚĞĨĞƌƌĞĚƚĂdžůŝĂďŝůŝƟĞƐ ;ϯϰ͕ϱϲϬͿ ;ϭϭ͕ϰϭϮͿ ;ϭ͕ϯϵϴͿ Ͳ ;ϰϳ͕ϯϳϬͿ 'ƌŽƐƐĚĞĨĞƌƌĞĚƚĂdžĂƐƐĞƚƐ ϭϭϭ͕ϭϰϭ Ϯϰ͕Ϭϭϭ ;ϳϴϬͿ Ͳ ϭϯϰ͕ϯϳϮͿ 76,581 12,599 (2,178) - 87,002 Bank - 2014 'ƌŽƐƐĚĞĨĞƌƌĞĚƚĂdžůŝĂďŝůŝƟĞƐ ;ϯϴ͕ϲϵϴͿ ϳ͕ϱϱϲ ;ϯ͕ϵϲϭͿ ;ϭϭ͕ϬϰϴͿ ;ϰϲ͕ϭϱϭͿ 'ƌŽƐƐĚĞĨĞƌƌĞĚƚĂdžĂƐƐĞƚƐ ϭϮϳ͕ϭϱϭ ϯϮ͕ϱϯϲ Ϯ͕Ϭϭϲ Ͳ ϭϲϭ͕ϳϬϯ 88,453 40,092 (1,945) (11,048) 115,552 Bank -2013 'ƌŽƐƐĚĞĨĞƌƌĞĚƚĂdžůŝĂďŝůŝƟĞƐ ;Ϯϴ͕ϯϱϴͿ ;ϭϭ͕ϰϲϳͿ ϭ͕ϭϮϳ Ͳ ;ϯϴ͕ϲϵϴͿ 'ƌŽƐƐĚĞĨĞƌƌĞĚƚĂdžĂƐƐĞƚƐ ϭϭϬ͕ϰϬϭ Ϯϯ͕ϴϬϴ ;ϳ͕ϬϱϴͿ Ͳ ϭϮϳ͕ϭϱϭ 82,043 12,341 (5,931) - 88,453 BSP Annual Report 2014 59 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 7. INTANGIBLE ASSET Consolidated Banks ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<͛ϬϬϬ 2014 2013 2014 2013 ϳ;ĂͿ'ŽŽĚǁŝůů Gross carrying amount 22,851 22,851 18,267 18,267 7(b) Computer development costs ƚϭ:ĂŶƵĂƌLJ ϭϯϯ͕ϭϵϴ ϯ͕ϭϮϲ ϭϯϯ͕ϭϵϴ ϯ͕ϭϮϲ ĚĚŝƟŽŶƐ ϭϴ͕ϳϴϴ ϮϬϴ͕ϭϰϳ ϭϴ͕ϳϴϴ ϮϬϴ͕ϭϰϳ ŝƐƉŽƐĂůƐ ;ϭϴ͕ϯϰϳͿ ϲ͕ϵϰϯ ;ϭϵ͕ϵϮϳͿ ϲ͕ϵϰϯ ŵŽƌƟƐĂƟŽŶĞdžƉĞŶƐĞ ;ϰϲ͕ϭϭϲͿ ;ϴϱ͕ϬϭϴͿ ;ϰϲ͕ϭϭϲͿ ;ϴϱ͕ϬϭϴͿ At 31 December 87,523 133,198 85,943 133,198 Total Intangible assets 110,374 156,049 104,210 151,465 8. INVESTMENTS IN SUBSIDIARIES ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<͛ϬϬϬ Principal WůĂĐĞŽĨ/ŶĐŽƌƉŽƌĂƟŽŶ Balance of ĂĐƟǀŝƚLJ ĂŶĚŽƉĞƌĂƟŽŶ Investment ŽǁŶĞƌƐŚŝƉ Name of Subsidiary 2014 2013 ^WĂƉŝƚĂů>ŝŵŝƚĞĚ ^ŚĂƌĞďƌŽŬĞƌĂŐĞͬ&ƵŶĚ WE'ϭϬϬй ϴ͕ϵϱϵ ϴ͕ϵϱϵ DĂŶĂŐĞŵĞŶƚͬĂƉŝƚĂůZĂŝƐŝŶŐ ^W>ŝĨĞ>ŝŵŝƚĞĚ >ŝĨĞ/ŶƐƵƌĂŶĐĞ &ŝũŝϭϬϬй ϴϳ͕ϲϱϯ ϴϳ͕ϲϱϯ ^WŽŶǀĞƌƟďůĞEŽƚĞƐ>ŝŵŝƚĞĚ ĂƉŝƚĂůZŝƐŝŶŐ &ŝũŝϭϬϬй ϯϭϳ ϯϭϳ ^W&ŝŶĂŶĐĞ;&ŝũŝͿ>ŝŵŝƚĞĚ ƌĞĚŝƚ/ŶƐƟƚƵƟŽŶ &ŝũŝϭϬϬй ϲ͕ϰϬϲ Ͳ ^W&ŝŶĂŶĐĞ;WE'Ϳ>ŝŵŝƚĞĚ ƌĞĚŝƚ/ŶƐƟƚƵƟŽŶ WE'ϭϬϬй ϱ͕ϯϬϬ Ͳ At 31 December 108,635 96,929 Provision of impairment of the investment in BSP Capital Limited /ŶϮϬϭϯ͕ƚŚĞĚŝƌĞĐƚŽƌƐĚĞƚĞƌŵŝŶĞĚƚŚĂƚƚŚĞŝŶǀĞƐƚŵĞŶƚŝŶ^WĂƉŝƚĂů>ŝŵŝƚĞĚŚĂĚďĞĞŶŵĂƚĞƌŝĂůůLJŝŵƉĂŝƌĞĚĂƐƚŚĞĐĂƌƌLJŝŶŐ ĂŵŽƵŶƚŽĨƚŚĞŝŶǀĞƐƚŵĞŶƚǁĂƐŐƌĞĂƚĞƌƚŚĂŶŝƚƐŶĞƚŬǀĂůƵĞ͘ƐŽĨƚŚĞƌĞƉŽƌƟŶŐĚĂƚĞ͕ƚŚĞŝŶǀĞƐƚŵĞŶƚĂŵŽƵŶƚŝƐǁƌŝƩĞŶĚŽǁŶ ƚŽŝƚƐŶĞƚŬǀĂůƵĞ͘ All amounts are expressed in K’000 2014 2013 KƉĞŶŝŶŐĂůĂŶĐĞ ϴ͕ϵϱϵ ϭϵ͕ϰϬϳ EĞƚDŽǀĞŵĞŶƚ Ͳ ϰ͕ϱϭϵ WƌŽǀŝƐŝŽŶĨŽƌ/ŵƉĂŝƌŵĞŶƚ Ͳ ;ϭϰ͕ϵϲϳͿ Closing Balance 8,959 8,959 60 BSP Annual Report 2014 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 9. INVESTMENTS IN ASSOCIATES & JOINT VENTURES ŶƟƚLJ Joint Venture/ WƌŝŶĐŝƉĂůĂĐƟǀŝƚLJ Place of WƌŽƉŽƌƟŽŶŽĨŽǁŶĞƌƐŚŝƉĂŶĚǀŽƟŶŐ Associate ŝŶĐŽƌƉŽƌĂƟŽŶ ƉŽǁĞƌŚĞůĚ ĂŶĚŽƉĞƌĂƟŽŶ 2014 2013 ^ƵǀĂĞŶƚƌĂů>ŝŵŝƚĞĚ :ŽŝŶƚsĞŶƚƵƌĞ WƌŽƉĞƌƚLJƌĞŶƚĂů &ŝũŝ ϱϬйΎ ϱϬйΎ ZŝĐŚŵŽŶĚ>ŝŵŝƚĞĚ :ŽŝŶƚsĞŶƚƵƌĞ ,ŽƚĞůŽƉĞƌĂƟŽŶ &ŝũŝ ϲϭ͘ϯйΎΎ͕ϱϬйΎΎΎ ϲϭ͘ϯйΎΎ͕ϱϬйΎΎΎ tŝůůŝĂŵƐĂŶĚ'ŽƐůŝŶŐ ƐƐŽĐŝĂƚĞ &ƌĞŝŐŚƚĨŽƌǁĂƌĚŝŶŐ &ŝũŝ Ϯϳ͘ϳйΎ Ϯϳ͘ϳйΎ ĂƌƉĂƌŬ>ŝŵŝƚĞĚ :ŽŝŶƚsĞŶƚƵƌĞ WƌŽƉĞƌƚLJ WE' ϯϯ͘ϯϯй ϯϯ͘ϯϯй DĂůĂŐĂŶ>ŝŵŝƚĞĚ :ŽŝŶƚsĞŶƚƵƌĞ WƌŽƉĞƌƚLJ WE' ϯϯ͘ϯϯй ϯϯ͘ϯϯй dŚĞŝŶǀĞƐƚŵĞŶƚƐĂďŽǀĞĂƌĞĂĐĐŽƵŶƚĞĚĨŽƌƵƐŝŶŐƚŚĞĞƋƵŝƚLJŵĞƚŚŽĚŝŶƚŚĞĐŽŶƐŽůŝĚĂƚĞĚĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĞdžĐĞƉƚĨŽƌĂƌƉĂƌŬ >ŝŵŝƚĞĚĂŶĚDĂůĂŐĂŶ>ŝŵŝƚĞĚǁŚŝĐŚĂƌĞĂĐĐŽƵŶƚĞĚĨŽƌĂƚĐŽƐƚůĞƐƐŝŵƉĂŝƌŵĞŶƚ͘ Consolidated Banks ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<͛ϬϬϬ 2014 2013 2014 2013 Associates /ŶǀĞƐƚŵĞŶƚŝŶĂƐƐŽĐŝĂƚĞͲĞƋƵŝƚLJ ϳϮ͕ϵϬϬ ϱϯ͕ϭϲϲ Ͳ Ͳ DŽǀĞŵĞŶƚ ;ϯ͕ϰϭϱͿ ϳ͕ϰϲϰ Ͳ Ͳ ^ŚĂƌĞŽĨƉƌŽĮƚͬ;ůŽƐƐͿĨŽƌƚŚĞLJĞĂƌ ϭϬ͕Ϯϯϯ ϭϮ͕ϮϳϬ Ͳ Ͳ Net investment in associate 79,718 72,900 - - ^ƵŵŵĂƌŝƐĞĚĮŶĂŶĐŝĂůŝŶĨŽƌŵĂƟŽŶŽĨĂƐƐŽĐŝĂƚĞ͗ dŽƚĂůĂƐƐĞƚƐ ϭϴϬ͕ϲϯϳ ϭϳϯ͕Ϯϵϯ Ͳ Ͳ dŽƚĂůůŝĂďŝůŝƟĞƐ ;ϯϰ͕ϳϬϱͿ ;ϯϴ͕ϰϭϴͿ Ͳ Ͳ Net assets 145,932 134,875 ͲͲ EĞƚƉƌŽĮƚͬ;ůŽƐƐͿ 17,085 22,316 ͲͲ ^ŚĂƌĞŽĨĂƐƐŽĐŝĂƚĞ͛ƐƉƌŽĮƚͬ;ůŽƐƐͿ 10,233 12,270 - - Joint Ventures & Associates ^ŚĂƌĞŽĨĂƐƐŽĐŝĂƚĞ͛ƐŶĞƚĂƐƐĞƚƐͲĞƋƵŝƚLJ ϳϵ͕ϳϭϴ ϳϮ͕ϵϬϬ Ͳ Ͳ ^ŚĂƌĞƐŚĞůĚŝŶũŽŝŶƚůLJŽǁŶĞĚĞŶƟƚLJʹĂƚĐŽƐƚƐůĞƐƐŝŵƉĂŝƌŵĞŶƚ ϯϴ͕ϲϳϭ ϰϯ͕ϵϮϭ ϯϴ͕ϱϮϬ ϰϯ͕ϲϵϬ Total investments in associates and joint ventures 118,389 116,821 38,520 43,690 10. CASH AND BALANCES WITH CENTRAL BANK Consolidated Banks ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<͛ϬϬϬ 2014 2013 2014 2013 EŽƚĞƐ͕ĐŽŝŶƐĂŶĚĐĂƐŚĂƚďĂŶŬ ϰϳϵ͕ϴϭϴ ϯϵϭ͕ϲϯϵ ϯϴϲ͕ϲϱϱ ϯϱϯ͕ϴϬϵ ĂůĂŶĐĞƐǁŝƚŚĞŶƚƌĂůĂŶŬŽƚŚĞƌƚŚĂŶƐƚĂƚƵƚŽƌLJĚĞƉŽƐŝƚ ϴϳϱ͕ϲϱϭ ϱϳϮ͕ϱϴϭ ϴϳϱ͕ϲϱϭ ϱϳϮ͕ϱϴϭ dŽƚĂůĐĂƐŚĂŶĚďĂůĂŶĐĞƐǁŝƚŚĞŶƚƌĂůĂŶŬ 1,355,469 964,220 1,262,306 926,390 BSP Annual Report 2014 61 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 11. TREASURY AND CENTRAL BANK BILLS Consolidated Banks ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<͛ϬϬϬ 2014 2013 2014 2013 dƌĞĂƐƵƌLJĂŶĚĞŶƚƌĂůĂŶŬďŝůůƐʹĨĂĐĞǀĂůƵĞ Ϯ͕ϮϭϬ͕ϳϰϯ ϯ͕ϯϬϵ͕ϭϭϱ Ϯ͕ϮϭϬ͕ϳϰϯ ϯ͕ϯϬϵ͕ϭϭϱ WƌĞŵŝƵŵͬ;ĚŝƐĐŽƵŶƚͿĨŽƌŝŶƚĞƌĞƐƚƌĞĐĞŝǀĂďůĞ ;Ϯϳ͕ϱϬϲͿ ;Ϯϱ͕ϲϴϯͿ ;Ϯϳ͕ϱϬϲͿ ;Ϯϱ͕ϲϴϯͿ At 31 December 2,183,237 3,283,432 2,183,237 3,283,432 dƌĞĂƐƵƌLJĂŶĚĞŶƚƌĂůĂŶŬďŝůůƐĂƌĞĚĞďƚƐĞĐƵƌŝƟĞƐŝƐƐƵĞĚďLJƚŚĞĞŶƚƌĂůĂŶŬ͘dŚĞƐĞďŝůůƐĂƌĞĐůĂƐƐŝĮĞĚĂƐĂƐƐĞƚƐŚĞůĚĨŽƌƚƌĂĚŝŶŐ ĂŶĚĐĂƌƌŝĞĚĂƚĨĂŝƌǀĂůƵĞ͘ 12. AMOUNTS DUE FROM OTHER BANKS /ƚĞŵƐŝŶƚŚĞĐŽƵƌƐĞŽĨĐŽůůĞĐƟŽŶ ϴϱ͕ϴϬϯ ϭϮϴ͕ϱϮϰ ϴϱ͕ϴϬϯ ϭϮϴ͕ϱϮϰ WůĂĐĞŵĞŶƚƐǁŝƚŚŽƚŚĞƌďĂŶŬƐ Ϯϵϰ͕ϴϱϬ ϭ͕ϯϭϲ͕ϲϳϱ Ϯϵϰ͕ϴϱϬ ϭ͕ϯϭϲ͕ϲϳϱ At 31 December 380,653 1,445,199 380,653 1,445,199 13. LOANS, ADVANCES & OTHER RECEIVABLES FROM CUSTOMERS KǀĞƌĚƌĂŌƐ ϭ͕ϰϮϯ͕ϭϮϳ ϭ͕ϮϬϯ͕Ϯϯϴ ϭ͕ϰϮϯ͕ϭϮϳ ϭ͕ϮϬϯ͕Ϯϯϳ >ĞĂƐĞĮŶĂŶĐŝŶŐ Ϯϳϯ͕ϭϵϰ Ϯϲϭ͕Ϯϳϭ Ϯϳϯ͕ϭϵϰ Ϯϲϭ͕Ϯϳϭ dĞƌŵůŽĂŶƐ ϰ͕Ϯϱϭ͕ϱϳϵ Ϯ͕ϵϱϭ͕ϭϰϰ ϰ͕ϮϮϭ͕ϵϴϰ Ϯ͕ϵϯϭ͕ϭϲϴ DŽƌƚŐĂŐĞƐ ϭ͕ϭϱϳ͕ϴϱϱ ϭ͕ϭϮϰ͕ϳϳϳ ϭ͕ϭϱϳ͕ϯϮϴ ϭ͕ϭϮϰ͕ϯϬϬ WŽůŝĐLJůŽĂŶƐ ϯϵ͕ϲϳϴ ϰϯ͕Ϭϭϯ Ͳ Ͳ Gross loans, advances & other receivables from customers net of reserved interest 7,145,433 5,583,443 7,075,633 5,519,976 >ĞƐƐĂůůŽǁĂŶĐĞĨŽƌůŽƐƐĞƐŽŶůŽĂŶƐ͕ĂĚǀĂŶĐĞƐĂŶĚŽƚŚĞƌ ƌĞĐĞŝǀĂďůĞƐĨƌŽŵĐƵƐƚŽŵĞƌƐ ;ϯϮϴ͕ϬϯϳͿ ;Ϯϳϳ͕ϬϴϭͿ ;ϯϮϳ͕ϬϴϳͿ ;Ϯϳϱ͕ϳϴϴͿ 6,817,396 5,306,362 6,748,546 5,244,188 dŚĞƐƉƌĞĂĚŽĨƚŚĞůŽĂŶƐĂƌĞĚĞƚĂŝůĞĚŝŶƚŚĞŵĂƚƵƌŝƚLJĂŶĂůLJƐŝƐƚĂďůĞŽŶEŽƚĞϯϰ͘dŚĞůŽĂŶƐĂƌĞǁĞůůͲĚŝǀĞƌƐŝĮĞĚĂĐƌŽƐƐǀĂƌŝŽƵƐ ƐĞĐƚŽƌƐĂŶĚƌĞŐŝŽŶĂŶĚĂƌĞĨƵƌƚŚĞƌĂŶĂůLJƐĞĚŽŶEŽƚĞϯϯ͘ >ĞĂƐĞĮŶĂŶĐŝŶŐ dŚĞ'ƌŽƵƉĂŶĚƚŚĞďĂŶŬƉƌŽǀŝĚĞĮŶĂŶĐĞůĞĂƐĞƐƚŽĂďƌŽĂĚƌĂŶŐĞŽĨĐůŝĞŶƚƐƚŽƐƵƉƉŽƌƚĮŶĂŶĐŝŶŐŶĞĞĚƐŝŶĂĐƋƵŝƌŝŶŐŵŽǀĂďůĞ ĂƐƐĞƚƐƐƵĐŚĂƐŵŽƚŽƌǀĞŚŝĐůĞƐĂŶĚƉůĂŶƚĂŶĚĞƋƵŝƉŵĞŶƚ͘&ŝŶĂŶĐĞůĞĂƐĞƌĞĐĞŝǀĂďůĞƐĂƌĞŝŶĐůƵĚĞĚǁŝƚŚŝŶůŽĂŶƐ͕ĂĚǀĂŶĐĞƐĂŶĚŽƚŚĞƌ ƌĞĐĞŝǀĂďůĞƐĨƌŽŵĐƵƐƚŽŵĞƌƐĂŶĚĂƌĞĂŶĂůLJƐĞĚĂƐĨŽůůŽǁƐ͗ 62 BSP Annual Report 2014 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 13. LOANS, ADVANCES & OTHER RECEIVABLES FROM CUSTOMERS FRQWLQXHG Consolidated Banks ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<͛ϬϬϬ 2014 2013 2014 2013 'ƌŽƐƐŝŶǀĞƐƚŵĞŶƚŝŶĮŶĂŶĐĞůĞĂƐĞƌĞĐĞŝǀĂďůĞ EŽƚůĂƚĞƌƚŚĂŶϭLJĞĂƌ ϮϬ͕ϱϮϯ Ϯϴ͕Ϯϲϴ ϮϬ͕ϱϮϯ Ϯϴ͕Ϯϲϴ >ĂƚĞƌƚŚĂŶϭLJĞĂƌĂŶĚŶŽƚůĂƚĞƌƚŚĂŶϱLJĞĂƌƐ ϮϴϮ͕ϭϲϴ Ϯϲϲ͕ϰϮϵ ϮϴϮ͕ϭϲϴ Ϯϲϲ͕ϰϮϵ ϯϬϮ͕ϲϵϭ Ϯϵϰ͕ϲϵϳ ϯϬϮ͕ϲϵϭ Ϯϵϰ͕ϲϵϳ hŶĞĂƌŶĞĚĨƵƚƵƌĞĮŶĂŶĐĞŝŶĐŽŵĞ EŽƚůĂƚĞƌƚŚĂŶϭLJĞĂƌ ;ϭϰ͕ϮϵϭͿ ;ϭϭ͕ϴϵϱͿ ;ϭϰ͕ϮϵϭͿ ;ϭϭ͕ϴϵϱͿ >ĂƚĞƌƚŚĂŶϭLJĞĂƌĂŶĚŶŽƚůĂƚĞƌƚŚĂŶϱLJĞĂƌƐ ;ϭϱ͕ϮϬϲͿ ;Ϯϭ͕ϱϯϭͿ ;ϭϱ͕ϮϬϲͿ ;Ϯϭ͕ϱϯϭͿ ;Ϯϵ͕ϰϵϳͿ ;ϯϯ͕ϰϮϲͿ ;Ϯϵ͕ϰϵϳͿ ;ϯϯ͕ϰϮϲͿ Present value of minimum lease payment receivable 273,194 261,271 273,194 261,271 WƌĞƐĞŶƚǀĂůƵĞŽĨŵŝŶŝŵƵŵůĞĂƐĞƉĂLJŵĞŶƚƌĞĐĞŝǀĂďůĞŝƐ ĂŶĂůLJƐĞĚĂƐĨŽůůŽǁƐ͗ EŽƚůĂƚĞƌƚŚĂŶϭLJĞĂƌ ϮϬ͕ϱϮϯ ϭϲ͕ϯϳϯ ϮϬ͕ϱϮϯ ϭϲ͕ϯϳϯ >ĂƚĞƌƚŚĂŶϭLJĞĂƌĂŶĚŶŽƚůĂƚĞƌƚŚĂŶϱLJĞĂƌƐ ϮϱϮ͕ϲϳϭ Ϯϰϰ͕ϴϵϴ ϮϱϮ͕ϲϳϭ Ϯϰϰ͕ϴϵϴ 273,194 261,271 273,194 261,271 Provision for impairment DŽǀĞŵĞŶƚŝŶĂůůŽǁĂŶĐĞĨŽƌůŽƐƐĞƐŽŶůŽĂŶƐ͕ĂĚǀĂŶĐĞƐ ĂŶĚŽƚŚĞƌƌĞĐĞŝǀĂďůĞƐĨƌŽŵĐƵƐƚŽŵĞƌƐ͗ ĂůĂŶĐĞĂƚϭ:ĂŶƵĂƌLJ Ϯϳϳ͕Ϭϴϭ ϮϮϬ͕ϱϱϯ Ϯϳϱ͕ϳϴϴ Ϯϭϰ͕ϳϮϭ EĞƚŶĞǁĂŶĚŝŶĐƌĞĂƐĞƉƌŽǀŝƐŝŽŶŝŶŐ ϲϮ͕Ϭϵϲ ϲϵ͕ϯϮϬ ϲϮ͕Ϭϵϲ ϲϵ͕ϯϮϬ >ŽĂŶƐǁƌŝƩĞŶŽīĂŐĂŝŶƐƚƉƌŽǀŝƐŝŽŶƐͬ;tƌŝƚĞďĂĐŬŽĨ ƉƌŽǀŝƐŝŽŶƐŶŽůŽŶŐĞƌƌĞƋƵŝƌĞĚͿ ;ϭϭ͕ϭϰϬͿ ;ϭϮ͕ϳϵϮͿ ;ϭϬ͕ϳϵϳͿ ;ϴ͕ϮϱϯͿ Balance at 31 December 328,037 277,081 327,087 275,788 WƌŽǀŝƐŝŽŶĨŽƌŝŵƉĂŝƌŵĞŶƚŝƐƌĞƉƌĞƐĞŶƚĞĚďLJ͗ ŽůůĞĐƟǀĞƉƌŽǀŝƐŝŽŶ ϮϵϬ͕ϮϬϬ Ϯϯϳ͕ϰϬϬ Ϯϴϵ͕ϴϰϱ Ϯϯϲ͕ϳϳϲ /ŶĚŝǀŝĚƵĂůůLJĂƐƐĞƐƐĞĚŽƌƐƉĞĐŝĮĐƉƌŽǀŝƐŝŽŶ ϯϳ͕ϴϯϳ ϯϵ͕ϲϴϭ ϯϳ͕ϮϰϮ ϯϵ͕ϬϭϮ Balance at 31 December 328,037 277,081 327,087 275,788 Loan impairment expense EĞƚĐŽůůĞĐƟǀĞƉƌŽǀŝƐŝŽŶĨƵŶĚŝŶŐ ;ϱϬ͕ϴϭϮͿ ;ϱϳ͕ϰϰϵͿ ;ϱϬ͕ϴϭϮͿ ;ϱϳ͕ϰϰϵͿ EĞƚŶĞǁĂŶĚŝŶĐƌĞĂƐĞŝŶĚŝǀŝĚƵĂůůLJĂƐƐĞƐƐĞĚƉƌŽǀŝƐŝŽŶŝŶŐ ;ϭϭ͕ϮϴϰͿ ;ϭϭ͕ϴϳϭͿ ;ϭϭ͕ϮϴϰͿ ;ϭϭ͕ϴϳϭͿ dŽƚĂůŶĞǁĂŶĚŝŶĐƌĞĂƐĞƉƌŽǀŝƐŝŽŶŝŶŐ (62,096) (69,320) (62,096) (69,320) ZĞĐŽǀĞƌŝĞƐĚƵƌŝŶŐƚŚĞLJĞĂƌ ϯϯ͕ϮϬϰ Ϯϲ͕Ϯϯϵ ϯϯ͕ϮϬϰ Ϯϲ͕Ϯϯϵ EĞƚǁƌŝƚĞďĂĐŬͬ;ǁƌŝƚĞŽīͿ ;ϰϳ͕ϵϬϰͿ ;ϯϱ͕ϰϵϮͿ ;ϰϳ͕ϵϬϰͿ ;ϯϱ͕ϰϵϮͿ (76,796) (78,573) (76,796) (78,573) BSP Annual Report 2014 63 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 14. PROPERTY, PLANT & EQUIPMENT Consolidated Banks ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<͛ϬϬϬ 2014 2013 2014 2013 Carrying value ĂƉŝƚĂůtŽƌŬŝŶWƌŽŐƌĞƐƐ ϭϴϬ͕ϲϵϰ ϭϭϳ͕Ϯϱϯ ϭϳϲ͕ϳϭϵ ϭϭϯ͕ϳϰϰ WƌĞŵŝƐĞƐ ϱϰϲ͕ϲϬϬ ϰϵϬ͕ϳϬϰ ϱϮϮ͕ϳϲϵ ϰϲϱ͕ϵϲϲ ĐĐƵŵƵůĂƚĞĚĚĞƉƌĞĐŝĂƟŽŶ ;ϵϮ͕ϵϮϯͿ ;ϭϬϱ͕ϱϬϵͿ ;ϴϱ͕ϴϭϮͿ ;ϵϳ͕ϴϳϱͿ 453,677 385,195 436,957 368,091 ƋƵŝƉŵĞŶƚ Ϯϱϲ͕ϴϯϮ ϰϳϭ͕ϭϬϴ ϮϮϭ͕ϳϰϵ ϰϯϲ͕ϭϲϴ ĐĐƵŵƵůĂƚĞĚĚĞƉƌĞĐŝĂƟŽŶ ;ϭϲϯ͕ϴϯϴͿ ;ϯϱϬ͕ϭϵϲͿ ;ϭϰϬ͕ϲϵϭͿ ;ϯϮϴ͕ϯϴϬͿ 92,994 120,912 81,058 107,788 At 31 December 727,365 623,360 694,734 589,623 ZĞĐŽŶĐŝůŝĂƟŽŶŽĨĐĂƌƌLJǀĂůƵĞŽĨƉƌŽƉĞƌƚLJ͕ƉůĂŶƚĂŶĚĞƋƵŝƉŵĞŶƚŝƐƐĞƚŽƵƚďĞůŽǁ͗ Capital Work in Progress ƚϭ:ĂŶƵĂƌLJ ϭϭϳ͕Ϯϱϯ ϯϮϱ͕ϴϮϭ ϭϭϯ͕ϳϰϰ ϯϮϰ͕ϵϴϮ ĚĚŝƟŽŶƐ ϭϳϮ͕ϴϮϲ ϭϳϭ͕ϭϳϬ ϭϲϵ͕Ϯϵϳ ϭϲϳ͕ϬϬϲ dƌĂŶƐĨĞƌƐ ;ϭϬϵ͕ϯϴϱͿ ;ϯϳϵ͕ϳϯϴͿ ;ϭϬϲ͕ϯϮϮͿ ;ϯϳϴ͕ϮϰϰͿ At 31 December 180,694 117,253 176,719 113,744 Premises ƚϭ:ĂŶƵĂƌLJ ϯϴϱ͕ϭϵϱ ϯϯϬ͕ϳϮϬ ϯϲϴ͕Ϭϵϭ ϯϭϲ͕ϳϬϯ ĚĚŝƟŽŶƐ ϵϬ͕ϭϬϴ ϵϬ͕ϰϴϵ ϴϵ͕ϴϲϬ ϴϲ͕ϳϰϱ ŝƐƉŽƐĂůƐ ;ϯϱ͕ϱϳϯͿ ;ϳ͕ϴϳϳͿ ;ϯϱ͕ϱϳϯͿ ;ϳ͕ϴϳϳͿ ZĞǀĂůƵĂƟŽŶŐĂŝŶƐͬ;ůŽƐƐĞƐͿ ϯϲ͕ϴϮϵ Ͳ ϯϲ͕ϴϮϵ Ͳ ĞƉƌĞĐŝĂƟŽŶĞdžƉĞŶƐĞ ;ϮϮ͕ϴϴϮͿ ;Ϯϴ͕ϭϯϳͿ ;ϮϮ͕ϮϱϬͿ ;Ϯϳ͕ϰϴϬͿ At 31 December 453,677 385,195 436,957 368,091 Equipment ƚϭ:ĂŶƵĂƌLJ ϭϮϬ͕ϵϭϮ ϴϳ͕ϳϱϭ ϭϬϳ͕ϳϴϴ ϳϲ͕ϱϵϰ ĚĚŝƟŽŶƐ Ϯϵ͕ϭϵϮ ϴϴ͕ϵϬϵ Ϯϲ͕Ϭϵϳ ϴϯ͕ϯϲϬ ŝƐƉŽƐĂůƐ ;ϲ͕ϵϴϯͿ ;ϳϴϵͿ ;ϲ͕ϬϵϮͿ ;ϲϰϰͿ ĞƉƌĞĐŝĂƟŽŶĞdžƉĞŶƐĞ ;ϱϬ͕ϭϮϳͿ ;ϱϰ͕ϵϱϵͿ ;ϰϲ͕ϳϯϱͿ ;ϱϭ͕ϱϮϮͿ At 31 December 92,994 120,912 81,058 107,788 ƐĂƚĞŶĚŽĨϯϭĞĐĞŵďĞƌϮϬϭϰ͕ƚŚĞƌĞǁĞƌĞƚŚƌĞĞƉƌŽƉĞƌƟĞƐŚĞůĚĨŽƌƐĂůĞ͘dŚĞĐĂƌƌLJŝŶŐĂŵŽƵŶƚĂƚƚŚĞƟŵĞŽĨƚƌĂŶƐĨĞƌǁĂƐ <ϲϱ͘ϬϱϮŵ͘EŽŝŵƉĂŝƌŵĞŶƚůŽƐƐĞƐŚĂǀĞďĞĞŶƌĞĐŽŐŶŝƐĞĚĨƌŽŵƚŚĞƐĞĂƐƐĞƚƐ͘ 64 BSP Annual Report 2014 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 14. PROPERTY, PLANT & EQUIPMENT FRQWLQXHG Consolidated Banks ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<͛ϬϬϬ 2014 2013 2014 2013 ƐƐĞƚƐƐƵďũĞĐƚƚŽŽƉĞƌĂƟŶŐůĞĂƐĞ Carrying value ŝƌĐƌĂŌ ϭϮϯ͕ϯϮϲ ϭϮϯ͕ϯϮϲ ϭϮϯ͕ϯϮϲ ϭϮϯ͕ϯϮϲ ĐĐƵŵƵůĂƚĞĚĚĞƉƌĞĐŝĂƟŽŶ ;ϲϵ͕ϱϰϯͿ ;ϲϭ͕ϴϮϭͿ ;ϲϵ͕ϱϰϯͿ ;ϲϭ͕ϴϮϭͿ At 31 December 53,783 61,505 53,783 61,505 ZĞĐŽŶĐŝůŝĂƟŽŶŽĨĐĂƌƌLJǀĂůƵĞŽĨĂŝƌĐƌĂŌŝƐƐĞƚŽƵƚ ďĞůŽǁ͗ ŝƌĐƌĂŌ ƚϭ:ĂŶƵĂƌLJ ϲϭ͕ϱϬϱ ϲϵ͕ϮϮϲ ϲϭ͕ϱϬϱ ϲϵ͕ϮϮϲ ĞƉƌĞĐŝĂƟŽŶ ;ϳ͕ϳϮϮͿ ;ϳ͕ϳϮϭͿ ;ϳ͕ϳϮϮͿ ;ϳ͕ϳϮϭͿ At 31 December 53,783 61,505 53,783 61,505 Future minimum lease payments EŽƚůĂƚĞƌƚŚĂŶϭLJĞĂƌ ϭϬ͕ϭϬϰ ϭϬ͕ϭϬϰ ϭϬ͕ϭϬϰ ϭϬ͕ϭϬϰ >ĂƚĞƌƚŚĂŶϭLJĞĂƌĂŶĚŶŽƚůĂƚĞƌƚŚĂŶϱLJĞĂƌƐ ϭϱ͕ϯϮϯ Ϯϱ͕ϰϮϳ ϭϱ͕ϯϮϯ Ϯϱ͕ϰϮϳ 25,427 35,531 25,427 35,531 dŚĞĐĂƌƌLJŝŶŐĂŵŽƵŶƚŽĨůĂŶĚĂŶĚďƵŝůĚŝŶŐƐĂŶĚĂŝƌĐƌĂŌŚĂĚƚŚĞLJďĞĞŶƌĞĐŽŐŶŝƐĞĚƵŶĚĞƌƚŚĞĐŽƐƚŵŽĚĞůĂƌĞĂƐĨŽůůŽǁƐ͗ &ƌĞĞŚŽůĚůĂŶĚ Ϯϰ͕ϯϬϭ ϭϰ͕ϵϯϮ Ϯϰ͕ϯϬϭ ϭϭ͕ϴϯϮ ƵŝůĚŝŶŐƐ ϭϬϴ͕ϴϰϰ ϭϬϬ͕ϴϲϰ ϭϬϴ͕ϴϰϰ ϴϲ͕ϮϰϬ ŝƌĐƌĂŌ ϱϯ͕ϳϴϯ ϲϭ͕ϱϬϴ ϱϯ͕ϳϴϯ ϲϭ͕ϱϬϴ At 31 December 186,928 177,304 186,928 159,580 Freehold land and buildings carried at fair value ŶŝŶĚĞƉĞŶĚĞŶƚǀĂůƵĂƟŽŶŽĨƚŚĞĂŶŬ͛ƐůĂŶĚĂŶĚďƵŝůĚŝŶŐƐǁĂƐƉĞƌĨŽƌŵĞĚďLJŽƵŶƚƌLJǁŝĚĞZĞĂůƚLJ>ŝŵŝƚĞĚĂŶĚdŚĞWƌŽĨĞƐƐŝŽŶĂů sĂůƵĞƌƐŽĨWE'>ŝŵŝƚĞĚƚŽĚĞƚĞƌŵŝŶĞƚŚĞĨĂŝƌǀĂůƵĞŽĨƚŚĞůĂŶĚĂŶĚďƵŝůĚŝŶŐƐ͘dŚĞǀĂůƵĂƟŽŶ͕ǁŚŝĐŚĐŽŶĨŽƌŵƐƚŽ/ŶƚĞƌŶĂƟŽŶĂů sĂůƵĂƟŽŶ^ƚĂŶĚĂƌĚƐ͕ǁĂƐĚĞƚĞƌŵŝŶĞĚďLJƌĞĨĞƌĞŶĐĞƚŽĐĂƉŝƚĂůŝƐĂƟŽŶŽĨƚŚĞŶŽƟŽŶĂůŝŶĐŽŵĞƐƚƌĞĂŵĂƉƉƌŽĂĐŚŽŶƚŚĞDĂƌŬĞƚsĂůƵĞ ďĂƐŝƐ͘dŚĞƌĞĐĞŶƚǀĂůƵĂƟŽŶǁĂƐĚĂƚĞĚϯϭĞĐĞŵďĞƌϮϬϭϰ͘ ƐƐĞƚƐƐƵďũĞĐƚƚŽŽƉĞƌĂƟŶŐůĞĂƐĞͲĂŝƌĐƌĂŌ ŶŝŶĚĞƉĞŶĚĞŶƚǀĂůƵĂƟŽŶŽĨƚŚĞĂŶŬ͛ƐĂŝƌĐƌĂŌƐǁĂƐƉĞƌĨŽƌŵĞĚďLJŚĂƌůĞƐdĂLJůŽƌǀŝĂƟŽŶƚŽĚĞƚĞƌŵŝŶĞƚŚĞĐƵƌƌĞŶƚƌĞĂůŝƐƟĐĨĂŝƌ ǀĂůƵĞĨŽƌĞĂĐŚŽĨƚŚĞĂŝƌĐƌĂŌ͘dŚĞǀĂůƵĂƟŽŶ͕ǁŚŝĐŚĐŽŶĨŽƌŵƐƚŽ/ŶƚĞƌŶĂƟŽŶĂůsĂůƵĂƟŽŶ^ƚĂŶĚĂƌĚƐ͕ƚĂŬĞƐŝŶƚŽĐŽŶƐŝĚĞƌĂƟŽŶƚŚĞ ĐƵƌƌĞŶƚŐůŽďĂůŵĂƌŬĞƚǀĂƌŝĂƟŽŶƐĨŽƌƚŚĞƐƉĞĐŝĮĐƚLJƉĞƐŽĨĂŝƌĐƌĂŌƐ͘dŚĞĞīĞĐƟǀĞĚĂƚĞŽĨƚŚĞǀĂůƵĂƟŽŶŝƐϯϭDĂLJϮϬϭϮ͘ BSP Annual Report 2014 65 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 15. INVESTMENT PROPERTIES Consolidated Banks ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<͛ϬϬϬ 2014 2013 2014 2013 KƉĞŶŝŶŐŶĞƚŬǀĂůƵĞ ϲϱ͕ϰϮϵ ϱϲ͕ϳϱϱ Ͳ Ͳ EĞƚŵŽǀĞŵĞŶƚ ϭ͕ϴϬϯ ϴ͕Ϯϱϭ Ͳ Ͳ 'ĂŝŶͬ;ůŽƐƐͿŽŶƌĞǀĂůƵĂƟŽŶ ϯ͕ϰϱϮ ϰϮϯ Ͳ Ͳ At 31 December 70,684 65,429 - - 16. OTHER FINANCIAL ASSETS ^ĞĐƵƌŝƟĞƐʹŚĞůĚƚŽͲŵĂƚƵƌŝƚLJ͗ /ŶƐĐƌŝďĞĚƐƚŽĐŬʹŝƐƐƵĞĚďLJĞŶƚƌĂůĂŶŬ Ϯ͕Ϯϵϳ͕ϵϯϱ Ϯ͕ϭϮϭ͕ϲϱϰ Ϯ͕ϭϴϴ͕Ϭϲϳ ϭ͕ϵϮϰ͕ϱϯϲ &ŝŶĂŶĐŝĂůĂƐƐĞƚƐĐĂƌƌŝĞĚĂƚĨĂŝƌǀĂůƵĞƚŚƌŽƵŐŚƉƌŽĮƚ and loss: ƋƵŝƚLJƐĞĐƵƌŝƟĞƐ ϲϯ͕ϳϭϰ ϰϵ͕ϭϰϰ Ͳ Ͳ At 31 December 2,361,649 2,170,798 2,188,067 1,924,536 17. OTHER ASSETS /ƚĞŵƐŝŶƚƌĂŶƐŝƚĂŶĚŽƚŚĞƌĂƐƐĞƚƐ ϮϬϴ͕Ϭϲϵ ϮϴϮ͕ϱϯϰ ϭϴϳ͕Ϭϯϱ ϮϳϮ͕ϳϮϴ ĐĐƌƵĞĚŝŶĐŽŵĞ ϳϴ͕ϯϭϭ ϳϱ͕ϴϴϮ ϳϴ͕ϯϭϭ ϳϱ͕ϴϴϮ /ŶƚĞƌĐŽŵƉĂŶLJĂĐĐŽƵŶƚ Ͳ Ͳ ϲ͕ϰϳϴ ϰϵϰ KƵƚƐƚĂŶĚŝŶŐƉƌĞŵŝƵŵƐ Ϯϭ͕ϰϰϳ Ϯϲ͕ϬϱϬ Ͳ Ͳ /ŶǀĞŶƚŽƌLJ ϲ͕ϴϯϬ ϳ͕ϴϲϭ Ͳ Ͳ WƌĞƉĂLJŵĞŶƚƐ ϭϮ͕ϮϮϰ ϭϯ͕ϵϰϯ ϭϮ͕ϮϮϰ ϭϯ͕ϵϰϯ ĐĐŽƵŶƚƐƌĞĐĞŝǀĂďůĞ ϳ͕ϳϲϳ ϴ͕ϯϵϯ ϭ͕Ϭϰϱ ϰϮϯ At 31 December 334,648 414,663 285,093 363,470 18. AMOUNTS DUE TO OTHER BANKS sŽƐƚƌŽĂĐĐŽƵŶƚďĂůĂŶĐĞƐ ϮϬϭ͕ϭϵϮ ϯϱϴ͕ϲϯϯ ϮϬϭ͕ϭϳϵ ϯϱϴ͕ϲϯϯ KƚŚĞƌďŽƌƌŽǁŝŶŐ ϱϴ͕ϳϬϬ ϰϮϳ͕ϰϬϮ ϱϴ͕ϳϬϬ ϰϮϳ͕ϰϬϮ At 31 December 259,892 786,035 259,879 786,035 19. CUSTOMER DEPOSITS KŶĚĞŵĂŶĚĂŶĚƐŚŽƌƚƚĞƌŵĚĞƉŽƐŝƚƐ ϭϬ͕ϳϮϱ͕ϬϲϬ ϭϬ͕ϮϯϮ͕ϲϲϳ ϭϬ͕ϳϲϱ͕Ϭϯϴ ϭϬ͕ϯϮϲ͕ϵϲϮ dĞƌŵĚĞƉŽƐŝƚƐ ϭ͕ϵϴϯ͕ϯϮϯ ϭ͕ϵϲϴ͕ϯϯϮ Ϯ͕Ϭϯϵ͕ϱϭϳ ϭ͕ϵϲϵ͕Ϯϲϰ At 31 December 12,708,383 12,200,999 12,804,555 12,296,226 dŚĞŵĂũŽƌŝƚLJŽĨƚŚĞĂŵŽƵŶƚƐĂƌĞĚƵĞƚŽďĞƐĞƩůĞĚǁŝƚŚŝŶƚǁĞůǀĞŵŽŶƚŚƐŽĨƚŚĞďĂůĂŶĐĞƐŚĞĞƚĚĂƚĞĂƐƐŚŽǁŶŝŶƚŚĞŵĂƚƵƌŝƚLJ ĂŶĂůLJƐŝƐƚĂďůĞŽŶŶŽƚĞϯϰ͘dŚĞĚĞƉŽƐŝƚƐĂƌĞǁĞůůͲĚŝǀĞƌƐĞĚĂĐƌŽƐƐŝŶĚƵƐƚƌŝĞƐĂŶĚƌĞŐŝŽŶ͘ 66 BSP Annual Report 2014 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 20. SUBORDINATED DEBT SECURITIES ƚϯϭĞĐĞŵďĞƌ͕ƚŚĞƌĞŝƐ<ϳϱ͘ϱϮϱŵŝůůŝŽŶŽĨĚĞďƚƐĞĐƵƌŝƟĞƐŽƵƚƐƚĂŶĚŝŶŐ͕ĞdžƉĞĐƚĞĚƚŽďĞƐĞƩůĞĚŵŽƌĞƚŚĂŶϭϮŵŽŶƚŚƐĂŌĞƌƚŚĞ ďĂůĂŶĐĞƐŚĞĞƚĚĂƚĞ͘dŚĞŶŽƚĞƐǁĞƌĞŝƐƐƵĞĚĚƵƌŝŶŐϮϬϬϵ͕ǁŝƚŚĂŵĂƚƵƌŝƚLJĚĂƚĞŝŶϮϬϭϵ͕ĂŶĚŝŶƚĞƌĞƐƚŝƐƉĂLJĂďůĞƐĞŵŝͲĂŶŶƵĂůůLJĂƚϭϭй ƉĞƌĂŶŶƵŵ͘dŚĞLJĂƌĞǀĂůƵĞĚĂƚĂŵŽƌƟƐĞĚĐŽƐƚ͘dŚĞƌĞŚĂǀĞďĞĞŶŶŽĚĞĨĂƵůƚƐŽĨŝŶƚĞƌĞƐƚŽƌŽƚŚĞƌďƌĞĂĐŚĞƐǁŝƚŚƌĞƐƉĞĐƚƚŽƚŚĞƐĞ ĚĞďƚƐĞĐƵƌŝƟĞƐƐŝŶĐĞŝƐƐƵĞ͘ 21. OTHER LIABILITIES Consolidated Banks ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<͛ϬϬϬ 2014 2013 2014 2013 ƌĞĚŝƚŽƌƐĂŶĚĂĐĐƌƵĂůƐ ϵϰ͕ϴϬϰ ϳϲ͕ϱϴϰ ϲϲ͕ϵϮϱ ϲϯ͕ϴϭϮ /ƚĞŵƐŝŶƚƌĂŶƐŝƚĂŶĚĂůůŽƚŚĞƌůŝĂďŝůŝƟĞƐ Ϯϯϲ͕Ϯϰϴ ϯϲϮ͕ϴϳϱ Ϯϱϭ͕ϭϰϴ ϯϳϭ͕ϯϭϮ WŽůŝĐLJůŝĂďŝůŝƟĞƐ ϰϳϯ͕ϳϱϯ ϰϴϭ͕Ϭϴϳ Ͳ Ͳ WƌĞŵŝƵŵƐƌĞĐĞŝǀĞĚŝŶĂĚǀĂŶĐĞ Ϯϵϯ ϯ͕ϵϴϱ Ͳ Ͳ KƵƚƐƚĂŶĚŝŶŐĐůĂŝŵƐ ϭϬ͕ϱϯϰ ϭϬ͕ϯϵϴ Ͳ Ͳ ůĂŝŵƐŝŶĐƵƌƌĞĚďƵƚŶŽƚƌĞƉŽƌƚĞĚ;/EZͿ ϭ͕ϯϭϱ ϭ͕ϰϰϬ Ͳ Ͳ At 31 December 816,947 936,369 318,073 435,124 22. OTHER PROVISIONS ^ƚĂīƌĞůĂƚĞĚ ϲϳ͕ϲϲϱ ϲϮ͕ϭϵϭ ϲϮ͕ϱϰϳ ϱϳ͕ϭϳϬ WƌŽǀŝƐŝŽŶĨŽƌŶŽŶͲůĞŶĚŝŶŐůŽƐƐ ϰϭ͕ϲϵϭ ϯϬ͕ϵϰϳ ϰϭ͕ϲϲϲ ϯϬ͕ϵϰϳ WƌŽǀŝƐŝŽŶƐʹŽƚŚĞƌ ϰϯ͕ϱϴϴ ϭϲ͕ϴϵϵ ϰϯ͕ϱϴϳ ϭϲ͕ϴϵϵ At 31 December 152,944 110,037 147,800 105,016 ^ƚĂīƌĞůĂƚĞĚƉƌŽǀŝƐŝŽŶƐ͗ ƚϭ:ĂŶƵĂƌLJ ϲϮ͕ϭϵϭ ϱϳ͕Ϭϲϵ ϱϳ͕ϭϳϬ ϱϮ͕Ϯϴϳ WƌŽǀŝƐŝŽŶƐĐŚĂƌŐĞ ϭϯ͕ϵϲϳ Ϯϯ͕ϳϬϱ ϭϯ͕ϴϳϬ Ϯϭ͕ϲϱϱ WĂLJŽƵƚƐ ;ϴ͕ϰϵϯͿ ;ϭϴ͕ϱϴϯͿ ;ϴ͕ϰϵϯͿ ;ϭϲ͕ϳϳϮͿ At 31 December 67,665 62,191 62,547 57,170 BSP Annual Report 2014 67 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 23. ORDINARY SHARES EƵŵďĞƌŽĨƐŚĂƌĞƐŝŶΖϬϬϬƐ͕ŽŽŬǀĂůƵĞŝŶ<ΖϬϬϬ Number of shares Book value At 31 December 2012/1 January 2013 469,201 384,814 ^ŚĂƌĞďƵLJďĂĐŬ ;ϳϳϳͿ ;ϯ͕ϯϭϲͿ At 31 December 2013 / 1 January 2014 468,424 381,498 ^ŚĂƌĞďƵLJďĂĐŬ ;ϮϵϮͿ ;Ϯ͕ϮϬϭͿ At 31 December 468,132 379,297 /ŶDĂLJϮϬϭϰ͕ƚŚĞŝƌĞĐƚŽƌƐĂŐƌĞĞĚƚŽŝŶƚƌŽĚƵĐĞĂƐŚĂƌĞͲďƵLJďĂĐŬƐĐŚĞŵĞŽĨƵƉƚŽ<ϭϱŵŝůůŝŽŶ͘dŚĞƐŚĂƌĞͲďƵLJďĂĐŬĐŽŵŵĞŶĐĞĚŝŶ :ƵůLJϮϬϭϰ͘ 2014 2013 2014 2013 Earnings per ordinary share EĞƚƉƌŽĮƚĂƩƌŝďƵƚĂďůĞƚŽƐŚĂƌĞŚŽůĚĞƌƐ;<͛ϬϬϬͿ ϱϬϳ͕ϯϯϵ ϰϯϲ͕ϴϮϴ ϱϭϮ͕ϴϵϮ ϰϮϰ͕ϳϲϮ tĞŝŐŚƚĞĚĂǀĞƌĂŐĞŶƵŵďĞƌŽĨŽƌĚŝŶĂƌLJƐŚĂƌĞƐŝŶƵƐĞ ϰϲϴ͕Ϯϳϴ ϰϲϵ͕ϭϯϲ ϰϲϴ͕Ϯϳϴ ϰϲϵ͕ϭϯϲ ;͚ϬϬϬͿ Basic and diluted earnings /(loss) per share (expressed in toea) 108.3 93.1 109.5 90.5 ĂƐŝĐĞĂƌŶŝŶŐƐƉĞƌŽƌĚŝŶĂƌLJƐŚĂƌĞŝƐĐĂůĐƵůĂƚĞĚďLJĚŝǀŝĚŝŶŐƚŚĞŶĞƚƉƌŽĮƚĂƩƌŝďƵƚĂďůĞƚŽƐŚĂƌĞŚŽůĚĞƌƐďLJƚŚĞǁĞŝŐŚƚĞĚĂǀĞƌĂŐĞ ŶƵŵďĞƌŽĨŽƌĚŝŶĂƌLJƐŚĂƌĞƐŝŶŝƐƐƵĞĚƵƌŝŶŐƚŚĞLJĞĂƌ͘ĂŶŬŽĨ^ŽƵƚŚWĂĐŝĮĐ>ŝŵŝƚĞĚŚĂƐŶŽĚŝůƵƟǀĞƉŽƚĞŶƟĂůŽƌĚŝŶĂƌLJƐŚĂƌĞƐ͘ ŽŶƐĞƋƵĞŶƚůLJ͕ďĂƐŝĐĞĂƌŶŝŶŐƐƉĞƌŽƌĚŝŶĂƌLJƐŚĂƌĞĞƋƵĂůƐĚŝůƵƚĞĚĞĂƌŶŝŶŐƐƉĞƌƐŚĂƌĞ͘ Dividend paid on ordinary shares /ŶƚĞƌŝŵŽƌĚŝŶĂƌLJĚŝǀŝĚĞŶĚ ;ϮϬϭϰ͗ϮϬƚŽĞĂ͖ϮϬϭϯ͗ϮϬƚŽĞĂͿ ϵϯ͕ϲϲϱ ϵϯ͕ϲϴϱ ϵϯ͕ϲϲϱ ϵϯ͕ϲϴϱ &ŝŶĂůŽƌĚŝŶĂƌLJĚŝǀŝĚĞŶĚ ;ϮϬϭϯ͗ϰϲƚŽĞĂ͖ϮϬϭϮ͗ϯϴƚŽĞĂͿ Ϯϭϱ͕ϰϳϲ ϭϳϴ͕ϬϬϭ Ϯϭϱ͕ϰϳϲ ϭϳϴ͕ϬϬϭ 309,141 271,686 309,141 271,686 68 BSP Annual Report 2014 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 24. RESERVES & RETAINED EARNINGS Consolidated Banks ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<͛ϬϬϬ 2014 2013 2014 2013 Retained earnings ƚϭ:ĂŶƵĂƌLJ ϭ͕Ϭϯϱ͕ϮϵϬ ϴϳϬ͕ϭϰϴ ϵϵϭ͕ϯϲϴ ϴϯϴ͕ϮϵϮ EĞƚƉƌŽĮƚĨŽƌƚŚĞLJĞĂƌ ϱϬϳ͕ϯϯϵ ϰϯϲ͕ϴϮϴ ϱϭϮ͕ϴϵϮ ϰϮϰ͕ϳϲϮ ŝǀŝĚĞŶĚƉĂŝĚ ;ϯϬϵ͕ϭϰϭͿ ;Ϯϳϭ͕ϲϴϲͿ ;ϯϬϵ͕ϭϰϭͿ ;Ϯϳϭ͕ϲϴϲͿ ŝƐƉŽƐĂůŽĨĂƐƐĞƚƐʹƐƐĞƚƌĞǀĂůƵĂƟŽŶ ϭϮ͕ϰϰϭ Ͳ ϭϮ͕ϰϰϭ Ͳ WƌŝŽƌLJĞĂƌĐŽŶƐŽůŝĚĂƟŽŶĂĚũƵƐƚŵĞŶƚ ;Ϯ͕ϰϯϴͿ Ͳ Ͳ Ͳ ^W>ŝĨĞƉŽůŝĐLJƌĞƐĞƌǀĞ ;Ϯϰ͕ϬϱϱͿ Ͳ ;Ϯϰ͕ϬϱϱͿ Ͳ At 31 December 1,219,436 1,035,290 1,183,505 991,368 Reserves comprise ZĞǀĂůƵĂƟŽŶƌĞƐĞƌǀĞ ϭϲϲ͕ϮϯϬ ϭϳϬ͕ϭϬϯ ϭϲϲ͕ϮϯϬ ϭϳϬ͕ϭϬϯ ĂƉŝƚĂůƌĞƐĞƌǀĞ ϲϯϱ ϲϯϱ ϲϯϱ ϲϯϱ ƋƵŝƚLJĐŽŵƉŽŶĞŶƚŽĨ&ŝũŝůĂƐƐ^ŚĂƌĞƐ Ϯϭ͕ϱϳϴ ϭϴ͕Ϯϭϴ Ͳ Ͳ 'ĞŶĞƌĂůƌĞƐĞƌǀĞ Ϯϲ͕ϵϯϬ Ϯ͕ϴϳϱ Ϯϲ͕ϵϯϬ Ϯ͕ϴϳϱ džĐŚĂŶŐĞƌĞƐĞƌǀĞ ;ϭϯ͕ϵϭϯͿ ϭϬ͕ϰϰϭ ;ϭϬ͕ϮϰϵͿ ϳ͕ϴϯϯ At 31 December 201,460 202,272 183,546 181,446 Movement in reserves for the year: ZĞǀĂůƵĂƟŽŶƌĞƐĞƌǀĞ ƚϭ:ĂŶƵĂƌLJ ϭϳϬ͕ϭϬϯ ϭϳϬ͕ϭϬϯ ϭϳϬ͕ϭϬϯ ϭϳϬ͕ϭϬϯ ƐƐĞƚƌĞǀĂůƵĂƟŽŶŝŶĐƌĞŵĞŶƚ ϰϰ͕ϯϯϬ Ͳ ϰϰ͕ϯϯϬ Ͳ dƌĂŶƐĨĞƌĂƐƐĞƚƐƌĞǀĂůƵĂƟŽŶƌĞƐĞƌǀĞƚŽƌĞƚĂŝŶĞĚĞĂƌŶŝŶŐƐ ;ϭϮ͕ϰϰϭͿ Ͳ ;ϭϮ͕ϰϰϭͿ Ͳ ĞĨĞƌƌĞĚƚĂdžŽŶĂƐƐĞƚƌĞǀĂůƵĂƟŽŶʹƉƌŝŽƌLJĞĂƌ ;Ϯϯ͕ϬϱϭͿ Ͳ ;Ϯϯ͕ϬϱϭͿ Ͳ ĞĨĞƌƌĞĚƚĂdžŽŶĂƐƐĞƚƌĞǀĂůƵĂƟŽŶʹĐƵƌƌĞŶƚLJĞĂƌ ;ϭϮ͕ϳϭϭͿ Ͳ ;ϭϮ͕ϳϭϭͿͲ At 31 December 166,230 170,103 166,230 170,103 Capital reserve ƚϭ:ĂŶƵĂƌLJ ϲϯϱ ϲϯϱ ϲϯϱ ϲϯϱ At 31 December 635 635 635 635 General reserve ƚϭ:ĂŶƵĂƌLJ Ϯ͕ϴϳϱ Ϯ͕ϴϳϱ Ϯ͕ϴϳϱ Ϯ͕ϴϳϱ ^W>ŝĨĞƉŽůŝĐLJƌĞƐĞƌǀĞ Ϯϰ͕Ϭϱϱ Ͳ Ϯϰ͕Ϭϱϱ Ͳ At 31 December 26,930 2,875 26,930 2,875 BSP Annual Report 2014 69 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 24. RESERVES & RETAINED EARNINGS FRQWLQXHG Consolidated Banks ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<͛ϬϬϬ 2014 2013 2014 2013 Exchange reserve ƚϭ:ĂŶƵĂƌLJ ϭϬ͕ϰϰϭ ϭϰ͕ϱϳϰ ϳ͕ϴϯϯ ϭϰ͕ϱϳϰ DŽǀĞŵĞŶƚĚƵƌŝŶŐƚŚĞLJĞĂƌ ;Ϯϰ͕ϯϱϰͿ ;ϰ͕ϭϯϯͿ ;ϭϴ͕ϬϴϮͿ ;ϲ͕ϳϰϭͿ At 31 December (13,913) 10,441 (10,249) 7,833 ƋƵŝƚLJĐŽŵƉŽŶĞŶƚŽĨĐŽŶǀĞƌƟďůĞŶŽƚĞƐ KŶϮϬƉƌŝůϮϬϭϬ͕ƚŚĞ'ƌŽƵƉŝƐƐƵĞĚϯ͕Ϭϲϰ͕ϵϲϳ&ŝũŝŽůůĂƌƐ;&:ͿĚĞŶŽŵŝŶĂƚĞĚŵĂŶĚĂƚŽƌLJĐŽŶǀĞƌƟďůĞŶŽƚĞƐƚŚƌŽƵŐŚŝƚƐǁŚŽůůLJ ŽǁŶĞĚƐƵďƐŝĚŝĂƌLJ^WŽŶǀĞƌƟďůĞEŽƚĞƐ>ŝŵŝƚĞĚ;^WEͿĂƚĂŶŝƐƐƵĞƉƌŝĐĞŽĨ&:ϱ͘Ϯϱ;<ϳ͘ϯϬͿƉĞƌŶŽƚĞ͘ dŚĞŶŽƚĞƐŵĂŶĚĂƚŽƌŝůLJĐŽŶǀĞƌƚĞĚƚŽ&ŝũŝůĂƐƐ^ŚĂƌĞƐŽŶϮϬƉƌŝůϮϬϭϯďĂƐĞĚŽŶĂĐŽŶǀĞƌƐŝŽŶƌĂƟŽŽĨϭ͘ϭ͘<ĞLJƌŝŐŚƚƐŽĨ&ŝũŝůĂƐƐ ^ŚĂƌĞŚŽůĚĞƌƐĂƌĞĂƐĨŽůůŽǁƐ͗ ;ŝͿ dŚĞƌŝŐŚƚƚŽƌĞĐĞŝǀĞĚŝǀŝĚĞŶĚĞƋƵĂůƚŽƚŚĞĂŵŽƵŶƚŽĨĚŝǀŝĚĞŶĚƚŽďĞƉĂŝĚŽŶ^WKƌĚŝŶĂƌLJ^ŚĂƌĞ͘ ;ŝŝͿ dŚĞƐĂŵĞǀŽƟŶŐƌŝŐŚƚƐĂƐĂ^WKƌĚŝŶĂƌLJ^ŚĂƌĞĂŶĚĞīĞĐƚĞĚƚŚƌŽƵŐŚĂƐƉĞĐŝĂůǀŽƟŶŐƐŚĂƌĞŚĞůĚďLJƚŚĞŚĂŝƌŵĂŶŽĨ^W͘ ;ŝŝŝͿ dŚĞ&ŝũŝůĂƐƐ^ŚĂƌĞŵĂLJďĞĞdžĐŚĂŶŐĞĚŽŶĂŽŶĞĨŽƌŽŶĞďĂƐŝƐŝŶƚŽ^WKƌĚŝŶĂƌLJ^ŚĂƌĞƐĂƚĂƐƵďƐĞƋƵĞŶƚĚĂƚĞĂŶĚĂƚƚŚĞ ŽƉƟŽŶŽĨ^WŽŶƚŚĞŽĐĐƵƌƌĞŶĐĞŽĨĐĞƌƚĂŝŶƉƌĞƐĐƌŝďĞĚĞǀĞŶƚƐ͘ 25. CONTINGENT LIABILITIES & COMMITMENTS KīďĂůĂŶĐĞƐŚĞĞƚĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐ 'ƵĂƌĂŶƚĞĞƐĂŶĚŝŶĚĞŵŶŝƟĞƐŝƐƐƵĞĚ Ϯϵϯ͕ϴϱϯ ϱϱϲ͕ϭϲϲ ϮϵϮ͕ϰϴϵ ϱϰϱ͕Ϭϱϴ ^ƚĂŶĚďLJůĞƩĞƌƐŽĨĐƌĞĚŝƚ Ϯϰ͕ϳϵϳ ϰϳ͕ϲϵϮ Ϯϰ͕ϳϵϳ ϰϳ͕ϲϵϮ ŽŵŵŝƚŵĞŶƚƐƚŽĞdžƚĞŶĚĐƌĞĚŝƚ ϭ͕ϬϬϵ͕ϵϰϯ ϴϲϬ͕ϰϱϯ ϭ͕ϬϬϴ͕ϵϱϮ ϲϵϱ͕Ϯϯϯ dƌĂĚĞůĞƩĞƌƐŽĨĐƌĞĚŝƚ ϮϬ͕Ϭϵϭ ϰϳ͕ϲϵϭ ϮϬ͕Ϭϵϭ Ϯϱ͕ϲϭϵ At 31 December 1,348,684 1,512,002 1,346,329 1,313,602 Legal Proceedings ŶƵŵďĞƌŽĨůĞŐĂůƉƌŽĐĞĞĚŝŶŐƐĂŐĂŝŶƐƚƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉǁĞƌĞŽƵƚƐƚĂŶĚŝŶŐĂƐĂƚϯϭĞĐĞŵďĞƌϮϬϭϰ͘ĂƐĞĚŽŶ ŝŶĨŽƌŵĂƟŽŶĂǀĂŝůĂďůĞĂƚϯϭĞĐĞŵďĞƌϮϬϭϰ͕ƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉĞƐƟŵĂƚĞƐĂĐŽŶƟŶŐĞŶƚůŝĂďŝůŝƚLJŽĨ<ϯϳ͘ϰŵŝůůŝŽŶ;ϮϬϭϯ͗ <ϳϰ͘ϳϴϬŵŝůůŝŽŶͿŝŶƌĞƐƉĞĐƚŽĨƚŚĞƐĞƉƌŽĐĞĞĚŝŶŐƐ͘ ^ƚĂƚƵƚŽƌLJĚĞƉŽƐŝƚƐǁŝƚŚƚŚĞĞŶƚƌĂůĂŶŬ ĂƐŚƌĞƐĞƌǀĞƌĞƋƵŝƌĞŵĞŶƚͲϭϬйŽĨĂůůĂŵŽƵŶƚƐĚƵĞƚŽ ĐƵƐƚŽŵĞƌƐ;ϮϬϭϯ͗ϵйͿ ϭ͕Ϯϱϭ͕ϱϴϮ ϭ͕Ϭϲϲ͕ϱϴϬ ϭ͕Ϯϱϭ͕ϱϴϮ ϭ͕Ϭϲϲ͕ϱϴϬ Commitments for capital expenditure ŵŽƵŶƚƐǁŝƚŚĮƌŵĐŽŵŵŝƚŵĞŶƚƐ͕ĂŶĚŶŽƚƌĞŇĞĐƚĞĚŝŶ ƚŚĞĂĐĐŽƵŶƚƐ ϳϰ͕ϭϬϱ ϭϱϰ͕ϯϰϰ ϲϱ͕ϯϭϱ ϭϱϰ͕ϯϰϰ KƉĞƌĂƟŶŐůĞĂƐĞĐŽŵŵŝƚŵĞŶƚƐ EŽƚůĂƚĞƌƚŚĂŶϭLJĞĂƌ ϭϰ͕ϱϯϳ ϰϬ͕Ϭϳϵ ϭϰ͕ϯϮϯ ϰϬ͕Ϭϳϵ >ĂƚĞƌƚŚĂŶϭLJĞĂƌĂŶĚŶŽƚůĂƚĞƌƚŚĂŶϱLJĞĂƌƐ Ϯϭ͕ϯϰϴ ϯϳ͕ϱϱϲ ϮϬ͕ϳϭϴ ϯϳ͕ϱϱϲ >ĂƚĞƌƚŚĂŶϱLJĞĂƌƐ Ͳ Ͳ Ͳ 35,885 77,635 35,041 77,635 70 BSP Annual Report 2014 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 26. FIDUCIARY ACTIVITIES dŚĞ 'ƌŽƵƉ ĞƐƉĞĐŝĂůůLJ ƚŚƌŽƵŐŚ ^W ĂƉŝƚĂů >ŝŵŝƚĞĚ ĐŽŶĚƵĐƚƐ ŝŶǀĞƐƚŵĞŶƚ ĨƵŶĚ ŵĂŶĂŐĞŵĞŶƚ͕ ƐƚŽĐŬ ďƌŽŬŝŶŐ ĂŶĚ ŽƚŚĞƌ ĮĚƵĐŝĂƌLJ ĂĐƟǀŝƟĞƐĂƐƌĞƐƉŽŶƐŝďůĞĞŶƟƚLJ͕ƚƌƵƐƚĞĞ͕ĐƵƐƚŽĚŝĂŶŽƌŵĂŶĂŐĞƌĨŽƌŝŶǀĞƐƚŵĞŶƚĨƵŶĚƐĂŶĚƚƌƵƐƚƐ͕ŝŶĐůƵĚŝŶŐƐƵƉĞƌĂŶŶƵĂƟŽŶ͘dŚĞƐĞ ĨƵŶĚƐĂƌĞŶŽƚĐŽŶƐŽůŝĚĂƚĞĚĂƐƚŚĞ'ƌŽƵƉĚŽĞƐŶŽƚŚĂǀĞĚŝƌĞĐƚŽƌŝŶĚŝƌĞĐƚĐŽŶƚƌŽů͘tŚĞƌĞƚŚĞĨƵŶĚƐŝŶĐƵƌƐůŝĂďŝůŝƟĞƐŝŶƌĞƐƉĞĐƚŽĨ ƚŚĞƐĞĂĐƟǀŝƟĞƐ͕ĂŶĚƚŚĞƉƌŝŵĂƌLJŽďůŝŐĂƟŽŶŝƐŝŶĐƵƌƌĞĚŝŶĂŶĂŐĞŶĐLJĐĂƉĂĐŝƚLJ͕ĨŽƌƚŚĞĨƵŶĚŽƌĐůŝĞŶƚƐƌĂƚŚĞƌƚŚĂŶŝƚƐŽǁŶĂĐĐŽƵŶƚ͕Ă ƌŝŐŚƚŽĨŝŶĚĞŵŶŝƚLJĞdžŝƐƚƐĂŐĂŝŶƐƚƚŚĞĂƐƐĞƚƐŽĨƚŚĞĂƉƉůŝĐĂďůĞĨƵŶĚŽƌƚƌƵƐƚ͘ƐƚŚĞƐĞĂƐƐĞƚƐĂƌĞƐƵĸĐŝĞŶƚƚŽĐŽǀĞƌƚŚĞůŝĂďŝůŝƟĞƐĂŶĚ ŝƚŝƐƚŚĞƌĞĨŽƌĞŶŽƚƉƌŽďĂďůĞƚŚĂƚƚŚĞ'ƌŽƵƉǁŝůůďĞƌĞƋƵŝƌĞĚƚŽƐĞƩůĞƚŚĞůŝĂďŝůŝƟĞƐ͕ƚŚĞŝŶǀĞƐƚŵĞŶƚƐŝŶƚŚĞĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐŽĨ ƚŚĞƐĞĂĐƟǀŝƟĞƐĂƌĞŶŽƚŝŶĐůƵĚĞĚŝŶƚŚĞĐŽŶƐŽůŝĚĂƚĞĚĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘ 27. DIRECTORS & EXECUTIVE REMUNERATION ŝƌĞĐƚŽƌƐƌĞŵƵŶĞƌĂƟŽŶ ŝƌĞĐƚŽƌƐŽĨƚŚĞĐŽŵƉĂŶLJƌĞĐĞŝǀĞĚƌĞŶƵŵĞƌĂƟŽŶŝŶĐůƵĚŝŶŐďĞŶĞĮƚƐĚƵƌŝŶŐƚŚĞϮϬϭϰĂƐĚĞƚĂŝůĞĚďĞůŽǁ͖ ůůĂŵŽƵŶƚƐŝŶ<ŝŶĂ dŽƚĂůƌĞŵƵŶĞƌĂƟŽŶ EĂŵĞŽĨŝƌĞĐƚŽƌ DĞĞƟŶŐƐĂƩĞŶĚĞĚ ƉƉŽŝŶƚĞĚͬ ĂƐĞ ŽŶƵƐ ϮϬϭϰ ϮϬϭϯ ͬƚŽƚĂůŚĞůĚ ;ZĞƐŝŐŶĞĚͿ ĞŵŽůƵŵĞŶƚ ƐŚĂƌĞƐ <͘ŽŶƐƚĂŶƟŶŽƵ͕K ϳͬϳ Ͳ Ϯϳϳ͕ϳϱϵ Ͳ Ϯϳϳ͕ϳϱϵ ϮϮϮ͕ϱϯϵ d͘ ͘&Ždž͕K ϳͬϳ Ͳ Ϯϰϯ͕ϰϵϮ Ͳ Ϯϰϯ͕ϰϵϮ Ϯϭϯ͕ϱϰϮ ƌ͘/͘dĞŵƵ ϳͬϳ Ͳ ϭϮϯ͕ϵϬϰ Ͳ ϭϮϯ͕ϵϬϰ ϭϭϮ͕Ϭϭϰ ͘͘WƌŽĐƚĞƌ ϮͬϮ ;ϮϰͬϬϱͬϭϰͿ ϭϰϰ͕Ϭϭϭ Ͳ ϭϰϰ͕Ϭϭϭ Ϯϭϳ͕ϯϴϴ ^ŝƌE͘ŽŐĂŶ ϱͬϳ Ͳ ϭϮϳ͕Ϭϴϯ Ͳ ϭϮϳ͕Ϭϴϯ ϭϬϰ͕ϵϲϳ Z͘&ůĞŵŝŶŐΎ ϳͬϳ Ͳ Ͳ Ͳ Ͳ Ͳ '͘ŽƉŝ͕ ϲͬϳ Ͳ ϭϮϲ͕ϵϯϰ Ͳ ϭϮϲ͕ϵϯϰ ϭϭϱ͕ϰϱϲ '͘ZŽďď͕KD ϲͬϳ Ͳ ϯϲϯ͕Ϯϴϯ Ͳ ϯϲϯ͕Ϯϴϯ ϮϴϬ͕ϲϭϯ &͘dĂůĂŽ ϳͬϳ Ͳ ϭϭϱ͕ϭϮϭ Ͳ ϭϭϱ͕ϭϮϭ ϭϬϰ͕ϴϳϱ ͘'ĂŶŐůŽī ϲͬϳ Ͳ ϭϭϲ͕ϳϳϭ Ͳ ϭϭϲ͕ϳϳϭ Ͳ ͘DĂŶŽ ϮͬϮ ϮϵͬϬϴͬϭϰ Ϯϲ͕ϮϱϬ Ͳ Ϯϲ͕ϮϱϬ Ͳ 1,664,608 1,664,608 1,371,394 ŝƌĞĐƚŽƌƐ^ŝƌEĂŐŽƌĂŽŐĂŶĂŶĚ'ĞƌĞĂŽƉŝƌĞƟƌĞĚďLJƌŽƚĂƟŽŶŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚůĂƵƐĞϭϱ͘ϯŽĨƚŚĞŽŵƉĂŶLJ͛ƐŽŶƐƟƚƵƟŽŶĂŶĚ ďĞŝŶŐĞůŝŐŝďůĞ͕ŽīĞƌĞĚƚŚĞŵƐĞůǀĞƐĨŽƌƌĞͲĞůĞĐƟŽŶďLJƚŚĞƐŚĂƌĞŚŽůĚĞƌƐŽŶϮϰƚŚDĂLJϮϬϭϰŶŶƵĂů'ĞŶĞƌĂůDĞĞƟŶŐ͘ĂƌůŝƐůĞWƌŽĐƚĞƌ ƌĞƐŝŐŶĞĚĂƐĂŝƌĞĐƚŽƌŽĨƚŚĞ^WŽĂƌĚŽŶϮϰƌĚDĂLJϮϬϭϰ͘ƵŐƵƐƟŶĞDĂŶŽũŽŝŶĞĚƚŚĞďŽĂƌĚŽŶϮϵƵŐƵƐƚϮϬϭϰĂŶĚǁŝůůŽīĞƌ ŚŝŵƐĞůĨĨŽƌĞůĞĐƟŽŶďLJƚŚĞƐŚĂƌĞŚŽůĚĞƌƐĂƚƚŚĞŶŶƵĂůDĞĞƟŶŐŝŶDĂLJϮϬϭϱ͘ EŽŶͲĞdžĞĐƵƟǀĞŽĂƌĚDĞŵďĞƌƐŽĨƚŚĞŽĂƌĚʹŽŶƐƚĂŶƟŶŽƵ͕&ŽdžĂŶĚZŽďďƌĞĐĞŝǀĞĚĂŶĂůůŽǁĂŶĐĞŽĨ<ϲϬ͕ϬϬϬĂƐŽĂƌĚŽĨŝƌĞĐƚŽƌƐ ŽĨ^WĂƉŝƚĂů>ƚĚǁŚŝĐŚĨŽƌŵƐƉĂƌƚŽĨƚŚĞ'ƌŽƵƉ͘ĂƌůŝƐůĞWƌŽĐƚĞƌƌĞƐŝŐŶĞĚĂƐŝƌĞĐƚŽƌŽĨƚŚĞŽĂƌĚŽĨ^WĂƉŝƚĂů>ƚĚĂŶĚƌĞĐĞŝǀĞĚ ƚŚŝƐŝƌĞĐƚŽƌƐĨĞĞŽĨ<ϰϱ͕ϬϬϬƉĞƌĂŶŶƵŵ͘ ΎDĂŶĂŐŝŶŐŝƌĞĐƚŽƌͬŚŝĞĨ džĞĐƵƟǀĞKĸĐĞƌƌĞĐĞŝǀĞƐŶŽĨĞĞƐĨŽƌŚŝƐƐĞƌǀŝĐĞƐĂƐŝƌĞĐƚŽƌĚƵƌŝŶŐƚŚĞLJĞĂƌ͘KƚŚĞƌŵĞŵďĞƌƐŽĨ^W ĞdžĞĐƵƟǀĞŵĂŶĂŐĞŵĞŶƚǁŚŽƐĞƌǀĞĂƐĚŝƌĞĐƚŽƌƐŽĨƐƵďƐŝĚŝĂƌŝĞƐŽĨ^W'ƌŽƵƉ͕ƌĞĐĞŝǀĞŶŽĨĞĞƐĨŽƌƚŚĞŝƌƐĞƌǀŝĐĞƐĂƐŝƌĞĐƚŽƌ͘ BSP Annual Report 2014 71 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 27. DIRECTORS & EXECUTIVE REMUNERATION FRQWLQXHG džĞĐƵƟǀĞƌĞŵƵŶĞƌĂƟŽŶ dŚĞŶƵŵďĞƌŽĨĞŵƉůŽLJĞĞƐŽƌĨŽƌŵĞƌĞŵƉůŽLJĞĞƐǁŚŽƐĞŝŶĐŽŵĞĨƌŽŵƚŚĞĂŶŬǁĂƐĞƋƵĂůƚŽŽƌŐƌĞĂƚĞƌƚŚĂŶ<ϭϬϬ͕ϬϬϬĚƵƌŝŶŐƚŚĞ LJĞĂƌ͕ĂƌĞĐůĂƐƐŝĮĞĚŝŶŝŶĐŽŵĞďĂŶĚƐŽĨ<ϭϬ͕ϬϬϬĂƐĨŽůůŽǁƐ͗ ZĞŵƵŶĞƌĂƟŽŶ 2014 2013 ZĞŵƵŶĞƌĂƟŽŶ 2014 2013 ZĞŵƵŶĞƌĂƟŽŶ 2014 2013 K’000 No. No. K’000 No. No. K’000 No. No. ϭϬϬʹϭϭϬ ϯϱ ϯϰ ϰϭϬͲϰϭϬ Ϯ ϰ ϳϰϬͲϳϱϬ Ͳ ϭ ϭϭϬʹϭϮϬ Ϯϱ ϭϲ ϰϭϬͲϰϮϬ Ϯ Ͳ ϳϱϬʹϳϲϬ ϯ Ϯ ϭϮϬͲϭϯϬ ϮϮ Ϯϭ ϰϮϬͲϰϯϬ ϭ Ϯ ϳϲϬʹϳϳϬ Ͳ Ϯ ϭϯϬͲϭϰϬ Ϯϱ Ϯϭ ϰϯϬʹϰϰϬ ϭ Ϯ ϳϳϬʹϳϴϬ ϭ ϭ ϭϰϬͲϭϱϬ ϭϲ Ϯϰ ϰϰϬʹϰϱϬ Ϯ Ͳ ϳϴϬʹϳϵϬ ϴ ϭ ϭϱϬͲϭϲϬ ϴ ϭϭ ϰϱϬʹϰϲϬ ϭ Ϯ ϴϬϬͲϴϭϬ Ͳ ϭ ϭϲϬʹϭϳϬ ϵ ϭϬ ϰϲϬʹϰϳϬ ϭ Ͳ ϴϮϬʹϴϯϬ Ͳ ϭ ϭϳϬʹϭϴϬ ϳ ϭϯ ϰϴϬʹϰϵϬ Ͳ Ͳ ϴϯϬʹϴϰϬ Ϯ ϭ ϭϴϬʹϭϵϬ Ϯ ϴ ϰϵϬʹϱϬϬ Ͳ ϭ ϴϱϬʹϴϲϬ ϯ ϭ ϭϵϬʹϮϬϬ Ϯ ϵ ϱϬϬʹϱϭϬ ϭ ϭ ϴϴϬʹϴϵϬ Ͳ ϭ ϮϬϬʹϮϭϬ ϰ ϭ ϱϭϬʹϱϮϬ Ͳ ϯ ϴϵϬʹϵϬϬ ϭ ϭ ϮϭϬʹϮϮϬ ϯ ϳ ϱϮϬʹϱϯϬ Ͳ Ϯ ϵϭϬʹϵϮϬ Ͳ ϭ ϮϮϬʹϮϯϬ ϰ ϰ ϱϯϬʹϱϰϬ Ͳ Ϯ ϵϱϬͲϵϲϬ ϭ Ͳ ϮϯϬʹϮϰϬ ϳ ϰ ϱϰϬʹϱϱϬ ϭ ϯ ϵϲϬͲϵϳϬ Ͳ ϭ ϮϰϬʹϮϱϬ ϴ ϵ ϱϲϬʹϱϳϬ ϭ Ϯ ϵϴϬͲϵϵϬ Ͳ Ϯ ϮϱϬʹϮϲϬ ϱ ϳ ϱϳϬͲϱϴϬ ϭ ϰ ϭϬϵϬͲϭϭϬϬ Ͳ ϭ ϮϲϬʹϮϳϬ Ϯ ϲ ϱϵϬͲϲϬϬ Ϯ ϯ ϭϭϬϬʹϭϭϬϬ ϭ ϭ ϮϳϬʹϮϴϬ ϱ ϰ ϲϬϬʹϲϭϬ Ϯ ϱ ϭϭϳϬͲϭϭϴϬ ϭ Ͳ ϮϴϬʹϮϵϬ ϴ ϯ ϲϭϬͲϲϮϬ Ϯ Ϯ ϭϭϵϬͲϭϮϬϬ ϭ Ͳ ϮϵϬʹϯϬϬ ϯ Ͳ ϲϮϬʹϲϯϬ ϰ ϭ ϭϮϯϬͲϭϮϰϬ ϭ Ͳ ϯϬϬͲϯϭϬ Ϯ ϯ ϲϯϬʹϲϰϬ Ϯ Ϯ ϭϮϲϬʹϭϮϳϬ Ͳ ϭ ϯϭϬʹϯϮϬ ϱ ϰ ϲϰϬʹϲϱϬ Ϯ Ϭ ϭϮϳϬͲϭϮϴϬ ϭ Ͳ ϯϮϬʹϯϯϬ ϯ ϭ ϲϱϬʹϲϲϬ ϭ ϯ ϭϲϯϬͲϭϲϰϬ ϭ Ͳ ϯϯϬʹϯϰϬ ϭ Ϯ ϲϲϬʹϲϳϬ ϭ Ͳ ϭϲϲϬͲϭϲϳϬ Ͳ ϭ ϯϰϬʹϯϱϬ ϭ Ϯ ϲϴϬͲϲϵϬ ϯ ϭ ϭϳϯϬͲϭϳϰϬ Ͳ ϭ ϯϱϬʹϯϲϬ Ϯ Ϯ ϲϵϬͲϳϬϬ Ϯ ϯ ϭϳϵϬʹϭϴϬϬ Ͳ ϭ ϯϲϬʹϯϳϬ ϱ ϯ ϳϬϬͲϳϭϬ Ͳ ϭ ϭϴϰϬͲϭϴϱϬ ϭ Ͳ ϯϳϬʹϯϴϬ ϭ Ϯ ϳϭϬͲϳϮϬ ϭ ϭ ϮϰϯϬʹϮϰϰϬ Ͳ ϭ ϯϴϬͲϯϵϬ Ͳ Ϯ ϳϮϬͲϳϯϬ Ͳ Ͳ ϯϱϲϬͲϯϱϳϬ ϭ Ͳ ϯϵϬͲϰϬϬ ϱ ϯ ϳϯϬͲϳϰϬ ϯ ϭ ϲϴϬϬͲϲϴϭϬ Ͳ ϭ Total 291 312 ϮϬϭϯĞdžĞĐƵƟǀĞƌĞŵƵŶĞƌĂƟŽŶŝŶĐůƵĚĞƐĞdžĞƌĐŝƐĞĚŽƉƟŽŶƐ͘ 72 BSP Annual Report 2014 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 27. DIRECTORS & EXECUTIVE REMUNERATION FRQWLQXHG dŚĞƐƉĞĐŝĮĞĚĞdžĞĐƵƟǀĞƐĚƵƌŝŶŐƚŚĞLJĞĂƌǁĞƌĞ͗ ZŽďŝŶ&ůĞŵŝŶŐ ZŽďĞƌƚ>ŽŐŐŝĂ ,ĂƌŽŽŶůŝ ZŝĐŚĂƌĚŽƌLJƐŝĞǁŝĐnj :ŽŚŶƐŽŶ<ĂůŽ WĞƚĞƌĞƐǁŝĐŬ WĂƵůdŚŽƌŶƚŽŶ ĚǁĂƌĚZƵŚĂ ŚŽĂůŝŬŝ 'ŝĂƵƵƌƵďĂ DĂƌŬZĂŝůƐƚŽŶ ^ƉĞĐŝĮĞĚĞdžĞĐƵƟǀĞƐ͛ƌĞŵƵŶĞƌĂƟŽŶŝŶĂŐŐƌĞŐĂƚĞ;<͛ϬϬϬͿ Primary Non- Post-employment Equity Other Year Salary Bonus monetary Super WƌĞƐĐƌŝďĞĚďĞŶĞĮƚƐ Other ŽƉƟŽŶƐ ĞŶĞĮƚƐ Total ϮϬϭϰ ϭϭ͕ϯϬϮ ϯ͕ϭϮϴ ϮϬϳ ϭϵϯ Ͳ Ͳ Ͳ ϳϭϬ ϭϱ͕ϱϰϬ ϮϬϭϯ ϭϯ͕ϭϰϯ ϰ͕Ϯϱϭ ϮϬϭ ϭϵϭ Ͳ Ͳ ϭ͕ϯϯϵ ϳϱϱ ϭϵ͕ϴϴϬ 28. RECONCILIATION OF OPERATING CASH FLOW Consolidated Banks ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<͛ϬϬϬ 2014 2013 2014 2013 ZĞĐŽŶĐŝůŝĂƟŽŶŽĨŽƉĞƌĂƟŶŐƉƌŽĮƚͬ;ůŽƐƐͿĂŌĞƌƚĂdžƚŽ ŽƉĞƌĂƟŶŐĐĂƐŚŇŽǁďĞĨŽƌĞĐŚĂŶŐĞƐŝŶŽƉĞƌĂƟŶŐĂƐƐĞƚƐ KƉĞƌĂƟŶŐƉƌŽĮƚͬ;ůŽƐƐͿĂŌĞƌƚĂdž ϱϬϳ͕ϯϯϵ ϰϯϲ͕ϴϮϴ ϱϭϮ͕ϴϵϮ ϰϮϰ͕ϳϲϮ ĚĚ͗dĂdž džƉĞŶƐĞ Ϯϭϭ͕ϱϭϭ ϭϳϬ͕ϭϮϳ ϮϬϵ͕ϱϲϬ ϭϲϴ͕ϭϭϰ KƉĞƌĂƟŶŐƉƌŽĮƚďĞĨŽƌĞŝŶĐŽŵĞƚĂdž 718,850 606,955 722,452 592,876 Major non cash amounts ĞƉƌĞĐŝĂƟŽŶ ϴϬ͕ϳϯϭ ϵϬ͕ϴϭϳ ϳϲ͕ϳϬϳ ϴϲ͕ϳϮϯ ŵŽƌƟƐĂƟŽŶŽĨĚĞĨĞƌƌĞĚĂĐƋƵŝƐŝƟŽŶĂŶĚĐŽŵƉƵƚĞƌ ĚĞǀĞůŽƉŵĞŶƚĐŽƐƚƐ ϰϲ͕ϭϭϲ ϴϱ͕Ϭϭϴ ϰϲ͕ϭϭϲ ϴϱ͕Ϭϭϴ EĞƚ;ƉƌŽĮƚͿͬůŽƐƐŽŶƐĂůĞŽĨĮdžĞĚĂƐƐĞƚƐ ϭ͕ϮϭϬ ϵϬϲ ϭ͕ϮϭϬ ϵϬϲ DŽǀĞŵĞŶƚŝŶĨŽƌĞdžŝŶĐŽŵĞĂĐĐƌƵĂů ;ϭϯ͕ϯϰϰͿ ϭϬ͕ϳϰϲ ;ϭϬ͕ϰϲϭͿ ϭϬ͕ϳϰϲ DŽǀĞŵĞŶƚŝŶƉƌŽǀŝƐŝŽŶĨŽƌĚŽƵďƞƵůĚĞďƚƐ ϭϭϮ͕Ϭϳϲ ϭϬϰ͕ϴϭϮ ϭϭϮ͕Ϭϳϲ ϭϬϰ͕ϴϭϮ DŽǀĞŵĞŶƚŝŶƉĂLJƌŽůůƉƌŽǀŝƐŝŽŶƐ Ϯ͕ϴϮϭ ϱ͕ϳϳϴ Ϯ͕ϴϮϭ ϱ͕ϳϳϴ EĞƚĞīĞĐƚŽĨŽƚŚĞƌĂĐĐƌƵĂůƐ ϱϲ͕ϰϰϰ ;ϰ͕ϵϬϵͿ ϯϵ͕ϴϮϲ ϯϮ͕ϳϬϯ KƉĞƌĂƟŶŐĐĂƐŚŇŽǁďĞĨŽƌĞĐŚĂŶŐĞƐŝŶŽƉĞƌĂƟŶŐĂƐƐĞƚƐ 1,004,904 900,123 990,747 919,562 Cash and cash equivalents &ŽƌƚŚĞƉƵƌƉŽƐĞƐŽĨƚŚĞĐĂƐŚŇŽǁƐƚĂƚĞŵĞŶƚ͕ĐĂƐŚĂŶĚĐĂƐŚĞƋƵŝǀĂůĞŶƚƐĐŽŵƉƌŝƐĞƚŚĞĨŽůůŽǁŝŶŐďĂůĂŶĐĞƐǁŝƚŚůĞƐƐƚŚĂŶϵϬĚĂLJƐ ŵĂƚƵƌŝƚLJ͘ ĂƐŚĂŶĚďĂůĂŶĐĞƐǁŝƚŚĞŶƚƌĂůĂŶŬ;ŶŽƚĞϭϬͿ ϭ͕ϯϱϱ͕ϰϲϵ ϵϲϰ͕ϮϮϬ ϭ͕ϮϲϮ͕ϯϬϲ ϵϮϲ͕ϯϵϬ ŵŽƵŶƚƐĚƵĞĨƌŽŵŽƚŚĞƌďĂŶŬƐ;ŶŽƚĞϭϮͿ ϯϴϬ͕ϲϱϯ ϭ͕ϰϰϱ͕ϭϵϵ ϯϴϬ͕ϲϱϯ ϭ͕ϰϰϱ͕ϭϵϵ ŵŽƵŶƚƐĚƵĞƚŽŽƚŚĞƌďĂŶŬƐ;ŶŽƚĞϭϴͿ ;Ϯϱϵ͕ϴϵϮͿ ;ϳϴϲ͕ϬϯϱͿ ;Ϯϱϵ͕ϴϳϵͿ ;ϳϴϲ͕ϬϯϱͿ At 31 December 1,476,230 1,623,384 1,383,080 1,585,554 BSP Annual Report 2014 73 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 29. SEGMENT INFORMATION ĂŶŬŽĨ^ŽƵƚŚWĂĐŝĮĐ>ŝŵŝƚĞĚĂŶĚ'ƌŽƵƉĐŽŵƉƌŝƐĞƐƚǁŽƐĞŐŵĞŶƚƐ͕ƚŚĞƐĞďĞŝŶŐƚŚĞƉƌŽǀŝƐŝŽŶŽĨďĂŶŬŝŶŐƐĞƌǀŝĐĞƐĂŶĚƉƌŽĚƵĐƚƐ͕ ƐƚŽĐŬďƌŽŬŝŶŐĂŶĚŝŶƐƵƌĂŶĐĞƐĞƌǀŝĐĞƐ͘&ŽƌŵĂŶĂŐĞŵĞŶƚƉƵƌƉŽƐĞƐ͕ƐĞŐŵĞŶƚŝŶĨŽƌŵĂƟŽŶĚĞƚĞƌŵŝŶĂƟŽŶŝƐďĂƐĞĚŽŶƚŚĞƌŝƐŬƐŝŶǀŽůǀĞĚ ǁŝƚŚƚŚĞƉƌŽǀŝƐŝŽŶŽĨĐŽƌĞďĂŶŬŝŶŐƐĞƌǀŝĐĞƐĂŶĚƉƌŽĚƵĐƚƐĂŶĚƚŚĞĂŶŬĂŶĚ'ƌŽƵƉ͛ƐŵĂŶĂŐĞŵĞŶƚƌĞƉŽƌƟŶŐƐLJƐƚĞŵ͘dŚĞŵĂŝŶ ďƵƐŝŶĞƐƐůŝŶĞƐĨŽƌŵĂŶĂŐĞŵĞŶƚƉƵƌƉŽƐĞƐĂƌĞĐŽƌĞďĂŶŬŝŶŐƐĞŐŵĞŶƚƐŽĨƌĞƚĂŝůďĂŶŬ͕ǁŚŽůĞƐĂůĞďĂŶŬǁŚŝĐŚŝŶĐůƵĚĞƐĐŽƌƉŽƌĂƚĞĂŶĚ ƉĂƌĂŵŽƵŶƚƐƚƌĂƚĞŐŝĐďƵƐŝŶĞƐƐƵŶŝƚƐ͕ŝŶƐƵƌĂŶĐĞŽƉĞƌĂƟŽŶƐŝŶ&ŝũŝ͕ĂŶĚ^WĂƉŝƚĂů͛ƐƐƚŽĐŬďƌŽŬŝŶŐĂŶĚĨƵŶĚŵĂŶĂŐĞŵĞŶƚĂĐƟǀŝƟĞƐ͘ dŚĞĂŶŬŽĨ^ŽƵƚŚWĂĐŝĮĐ>ŝŵŝƚĞĚĂŶĚ'ƌŽƵƉ͛ƐďƵƐŝŶĞƐƐƐĞŐŵĞŶƚƐŽƉĞƌĂƚĞƐŝŶWĂƉƵĂEĞǁ'ƵŝŶĞĂ͕&ŝũŝĂŶĚ^ŽůŽŵŽŶ/ƐůĂŶĚƐ͘/ŶƚĞƌ ƐĞŐŵĞŶƚ ĂĚũƵƐƚŵĞŶƚƐ ƌĞŇĞĐƚƐ ĞůŝŵŝŶĂƟŽŶ ĞŶƚƌŝĞƐ ŝŶ ƌĞƐƉĞĐƚ ŽĨ ŝŶƚĞƌ ƐĞŐŵĞŶƚ ŝŶĐŽŵĞ ĂŶĚ ĞdžƉĞŶƐĞ ĂůůŽĐĂƟŽŶƐ ŝŶĐůƵĚĞĚ ĨƵŶĚƐ ƚƌĂŶƐĨĞƌƉƌŝĐŝŶŐ͘ Adjust ůůĂŵŽƵŶƚƐĂƌĞŝŶ<͛ϬϬϬ Inter Retail Wholesale Fiji Bank Insurance BSP Capital Others Segments Total Analysis by segments Year ended 31 December 2014 /ŶƚĞƌĞƐƚŝŶĐŽŵĞ ϭϲϯ͕ϳϭϵ ϰϰϰ͕ϱϮϬ ϳϴ͕ϯϭϯ ϰϲϭ Ͳ ϭϲ͕ϵϰϳ ϭϰϴ͕ϵϮϲ ϴϱϮ͕ϴϴϲ KƚŚĞƌŝŶĐŽŵĞ Ϯϴϯ͕ϰϲϱ Ϯϯϳ͕ϴϱϬ ϲϴ͕ϵϬϮ ϵϴ͕ϵϳϱ ϴ͕ϱϰϬ ϭϴ͕ϯϳϳ ϭϯ͕ϳϯϱ ϳϮϵ͕ϴϰϰ dŽƚĂůŽƉĞƌĂƟŶŐŝŶĐŽŵĞ 447,184 682,370 147,215 99,436 8,540 35,324 162,661 1,582,730 KƉĞƌĂƟŶŐĞdžƉĞŶƐĞƐ ;ϯϴϭ͕ϴϳϲͿ ;ϲϭ͕ϳϮϵͿ ;ϵϭ͕ϱϲϲͿ ;ϵϰ͕ϱϮϱͿ ;ϵ͕ϲϵϳͿ ;ϭϲ͕ϵϴϯͿ ;ϭϰϬ͕ϵϰϭͿ ;ϳϵϳ͕ϯϭϳͿ /ŵƉĂŝƌŵĞŶƚĞdžƉĞŶƐĞƐ ;ϮϬ͕ϵϴϲͿ ϱ͕ϲϴϱ ;Ϯϰ͕ϬϱϯͿ Ͳ Ͳ ;ϯϲϯͿ ;ϯϳ͕ϬϳϵͿ ;ϳϲ͕ϳϵϲͿ ^ŚĂƌĞŽĨƉƌŽĮƚƐĨƌŽŵ Ͳ Ͳ Ͳ ϭϬ͕Ϯϯϯ Ͳ Ͳ Ͳ ϭϬ͕Ϯϯϯ ĂƐƐŽĐŝĂƚĞƐĂŶĚũŽŝŶƚůLJ ĐŽŶƚƌŽůůĞĚĞŶƟƟĞƐ WƌŽĮƚďĞĨŽƌĞŝŶĐŽŵĞƚĂdž 44,322 626,326 31,596 15,144 (1,157) 17,978 (15,359) 718,850 /ŶĐŽŵĞƚĂdž ;ϭϭ͕ϰϲϭͿ ;ϭϴϰ͕ϳϵϲͿ ;ϲ͕ϱϬϯͿ ;ϭ͕ϳϳϱͿ ϯϰϳ ;ϳ͕ϯϮϯͿ Ͳ ;Ϯϭϭ͕ϱϭϭͿ EĞƚƉƌŽĮƚĂŌĞƌŝŶĐŽŵĞƚĂdž 32,861 441,530 25,093 13,369 (810) 10,655 (15,359) 507,339 Year ended 31 December 2013 /ŶƚĞƌĞƐƚŝŶĐŽŵĞ ϭϱϳ͕ϰϭϬ ϰϯϯ͕ϰϳϮ ϲϭ͕ϱϳϲ Ͳ Ͳ ϭϰ͕ϱϱϳ ϳϯ͕ϴϰϮ ϳϰϬ͕ϴϱϳ KƚŚĞƌŝŶĐŽŵĞ Ϯϵϴ͕ϯϬϵ Ϯϯϲ͕ϰϯϰ ϱϬ͕ϭϰϬ ϭϳϲ͕ϭϬϬ ϯ͕ϲϴϳ ϭϲ͕ϱϰϳ Ͳ ϳϴϭ͕Ϯϭϳ dŽƚĂůŽƉĞƌĂƟŶŐŝŶĐŽŵĞ 455,719 669,906 111,716 176,100 3,687 31,104 73,842 1,522,074 KƉĞƌĂƟŶŐĞdžƉĞŶƐĞƐ ;Ϯϱϯ͕ϮϴϵͿ ;Ϯϱϲ͕ϲϯϵͿ ;ϴϯ͕ϲϮϮͿ ;ϭϳϮ͕ϰϳϱͿ ;ϲ͕ϵϮϭͿ ;ϭϲ͕ϱϬϰͿ ;ϰϰ͕ϯϵϵͿ ;ϴϯϯ͕ϴϰϵͿ /ŵƉĂŝƌŵĞŶƚĞdžƉĞŶƐĞƐ ;Ϯϱ͕ϳϰϳͿ ;ϯϵ͕ϮϯϰͿ ;ϭϯ͕ϮϬϱͿ Ͳ Ͳ ;ϯϴϳͿ ;ϭϰ͕ϵϲϳͿ ;ϵϯ͕ϱϰϬͿ ^ŚĂƌĞŽĨƉƌŽĮƚƐĨƌŽŵ Ͳ Ͳ Ͳ ϭϮ͕ϮϳϬ Ͳ Ͳ Ͳ ϭϮ͕ϮϳϬ ĂƐƐŽĐŝĂƚĞƐĂŶĚũŽŝŶƚůLJ ĐŽŶƚƌŽůůĞĚĞŶƟƟĞƐ WƌŽĮƚďĞĨŽƌĞŝŶĐŽŵĞƚĂdž 176,683 374,033 14,889 15,895 (3,234) 14,213 14,476 606,955 /ŶĐŽŵĞƚĂdž ;ϱ͕ϯϯϳͿ ;ϭϱϰ͕ϯϳϭͿ ;ϯ͕ϭϴϬͿ ;Ϯ͕ϲϱϵͿ ϭ͕ϬϬϵ ;ϱ͕ϱϴϵͿ Ͳ ;ϭϳϬ͕ϭϮϳͿ EĞƚƉƌŽĮƚĂŌĞƌŝŶĐŽŵĞƚĂdž 171,346 219,662 11,709 13,236 (2,225) 8,624 14,476 436,828 74 BSP Annual Report 2014 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 30. RELATED PARTY TRANSACTIONS ZĞůĂƚĞĚƉĂƌƟĞƐĂƌĞĐŽŶƐŝĚĞƌĞĚƚŽďĞĞŶƚĞƌƉƌŝƐĞƐŽƌŝŶĚŝǀŝĚƵĂůƐǁŝƚŚǁŚŽŵƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉŝƐĞƐƉĞĐŝĂůůLJƌĞůĂƚĞĚďĞĐĂƵƐĞ ĞŝƚŚĞƌƚŚĞLJŽƌƚŚĞĂŶŬĂƌĞŝŶĂƉŽƐŝƟŽŶƚŽƐŝŐŶŝĮĐĂŶƚůLJŝŶŇƵĞŶĐĞƚŚĞŽƵƚĐŽŵĞŽĨƚƌĂŶƐĂĐƟŽŶƐĞŶƚĞƌĞĚŝŶƚŽǁŝƚŚƚŚĞĂŶŬĂŶĚƚŚĞ 'ƌŽƵƉ͕ďLJǀŝƌƚƵĞŽĨďĞŝŶŐĂďůĞƚŽĐŽŶƚƌŽů͕ĚŽŵŝŶĂƚĞŽƌƉĂƌƟĐŝƉĂƚĞŝŶĂĮĚƵĐŝĂƌLJĐĂƉĂĐŝƚLJ͕ŝŶĚĞĐŝƐŝŽŶͲŵĂŬŝŶŐĨƵŶĐƟŽŶƐŽƌƉƌŽĐĞƐƐĞƐ͘ dŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉĐŽŶĚƵĐƚĞĚƚƌĂŶƐĂĐƟŽŶƐǁŝƚŚƚŚĞĨŽůůŽǁŝŶŐĐůĂƐƐĞƐŽĨƌĞůĂƚĞĚƉĂƌƟĞƐĚƵƌŝŶŐƚŚĞLJĞĂƌ͗ ͻ ŝƌĞĐƚŽƌƐĂŶĚͬŽƌƉĂƌƟĞƐŝŶǁŚŝĐŚƚŚĞĚŝƌĞĐƚŽƌŚĂƐƐŝŐŶŝĮĐĂŶƚŝŶŇƵĞŶĐĞ ͻ <ĞLJŵĂŶĂŐĞŵĞŶƚƉĞƌƐŽŶŶĞůĂŶĚŽƚŚĞƌƐƚĂīĂŶĚͬŽƌƉĂƌƟĞƐŝŶǁŚŝĐŚƚŚĞŝŶĚŝǀŝĚƵĂůŽĸĐĞƌŚĂƐƐŝŐŶŝĮĐĂŶƚŝŶŇƵĞŶĐĞ ŶƵŵďĞƌŽĨďĂŶŬŝŶŐƚƌĂŶƐĂĐƟŽŶƐĂƌĞĞŶƚĞƌĞĚŝŶƚŽǁŝƚŚƚŚĞƐĞƌĞůĂƚĞĚƉĂƌƟĞƐŝŶƚŚĞŶŽƌŵĂůĐŽƵƌƐĞŽĨďƵƐŝŶĞƐƐ͕ĂŶĚŝŶĐůƵĚĞůŽĂŶƐ͕ ĚĞƉŽƐŝƚƐ͕ƉƌŽƉĞƌƚLJƌĞŶƚĂůƐ͕ƐŚĂƌĞƚƌĂŶƐĨĞƌƐĂŶĚĨŽƌĞŝŐŶĐƵƌƌĞŶĐLJƚƌĂŶƐĂĐƟŽŶƐ͘dŚĞƐĞƚƌĂŶƐĂĐƟŽŶƐĂƌĞĐĂƌƌŝĞĚŽƵƚŽŶĐŽŵŵĞƌĐŝĂů ƚĞƌŵƐĂŶĚŵĂƌŬĞƚƌĂƚĞƐ͘&ŽƌƚŚĞLJĞĂƌĞŶĚĞĚϯϭĞĐĞŵďĞƌϮϬϭϰ͕ďĂůĂŶĐĞƐĂŶĚƚƌĂŶƐĂĐƟŽŶƐŽĨĂĐĐŽƵŶƚƐĨŽƌŝƌĞĐƚŽƌƐ͕ŝŶĐůƵĚŝŶŐ ĐŽŵƉĂŶŝĞƐŝŶǁŚŝĐŚĚŝƌĞĐƚŽƌƐŚŝƉƐǁĞƌĞŚĞůĚďLJ^WĚŝƌĞĐƚŽƌƐ͕ǁĞƌĞĂƐĨŽůůŽǁƐ͗ ůůĂŵŽƵŶƚƐĂƌĞŝŶ<͛ϬϬϬ 2014 2013 Customer Deposits KƉĞŶŝŶŐďĂůĂŶĐĞƐ ϭϵϮ͕ϰϰϲ ϭϯϵ͕ϱϱϳ EĞƚŵŽǀĞŵĞŶƚ ϭϲϰ͕ϴϴϰ ϱϮ͕ϴϴϵ Closing balance 357,330 192,446 /ŶƚĞƌĞƐƚƉĂŝĚ Ϯ͕ϯϱϬ ϰ͕ϬϮϮ Loans, advances & other receivables from customer KƉĞŶŝŶŐďĂůĂŶĐĞƐ ϯϴϰ͕ϯϮϬ ϭϳϮ͕ϳϮϱ >ŽĂŶƐŝƐƐƵĞĚ ϮϮϳ͕ϴϱϲ ϯϯϵ͕ϲϬϮ /ŶƚĞƌĞƐƚ ϯϵ͕ϴϴϵ ϰϬ͕ϭϮϴ ŚĂƌŐĞƐ ϭϭ͕ϱϮϭ ϭϭ͕ϱϵϬ >ŽĂŶƌĞƉĂLJŵĞŶƚƐ ;Ϯϴϭ͕ϱϱϭͿ ;ϭϳϵ͕ϳϮϱͿ Closing balance 382,035 384,320 /ŶĐĞŶƟǀĞͲďĂƐĞĚ ƚƌĂŶƐĂĐƟŽŶƐ ĂƌĞ ƉƌŽǀŝĚĞĚ ĨŽƌ ƐƚĂī͘ ^ƵĐŚ ƚƌĂŶƐĂĐƟŽŶƐ ŝŶĐůƵĚĞ ŵĂƌŐŝŶĂů ĚŝƐĐŽƵŶƚƐ ŽŶ ƌĂƚĞƐ͕ ĂŶĚ ƐƉĞĐŝĮĐ ĨĞĞ ĐŽŶĐĞƐƐŝŽŶƐ͘dŚĞƐĞŝŶĐĞŶƟǀĞƐĂƌĞŵĂŝŶůLJƉĞƌĐĞŶƚĂŐĞͲďĂƐĞĚŽŶŵĂƌŬĞƚƌĂƚĞƐĂŶĚĨĞĞƐ͕ĂŶĚĂƐƐƵĐŚ͕ƐƚĂīĂĐĐŽƵŶƚƐĂƌĞĂůǁĂLJƐ ƐƵďũĞĐƚƚŽƵŶĚĞƌůLJŝŶŐŵĂƌŬĞƚƚƌĞŶĚƐŝŶŝŶƚĞƌĞƐƚƌĂƚĞƐĂŶĚĨĞĞƐ͘ƐĂƚϯϭĞĐĞŵďĞƌϮϬϭϰ͕ƐƚĂīĂĐĐŽƵŶƚďĂůĂŶĐĞƐǁĞƌĞĂƐĨŽůůŽǁƐ͗ ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<͛ϬϬϬ 2014 2013 ,ŽƵƐŝŶŐůŽĂŶƐ ϭϰ͕ϲϱϯ ϭϴ͕ϭϭϭ KƚŚĞƌůŽĂŶƐ Ϯϲ͕ϱϵϮ ϭϲ͕ϰϰϮ 41,245 34,553 ŚĞƋƵĞĂĐĐŽƵŶƚƐ ϵ͕ϰϱϮ ϴ͕Ϭϴϯ &ŽƌĞŝŐŶĐƵƌƌĞŶĐLJĂĐĐŽƵŶƚƐ ϰϴϳ Ϯϯϳ ^ĂǀŝŶŐƐĂĐĐŽƵŶƚƐ ϱ͕ϱϭϳ ϵ͕ϵϵϭ 15,456 18,311 BSP Annual Report 2014 75 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 31. BANK OPERATIONS, RISKS & STRATEGIES IN USING FINANCIAL INSTRUMENTS ůůďƵƐŝŶĞƐƐŽƉĞƌĂƟŽŶƐŵƵƐƚĚĞĂůǁŝƚŚĂǀĂƌŝĞƚLJŽĨŽƉĞƌĂƟŽŶĂůĂŶĚĮŶĂŶĐŝĂůƌŝƐŬƐ͘dŚĞďƵƐŝŶĞƐƐĂĐƟǀŝƟĞƐŽĨĂďĂŶŬĞdžƉŽƐĞŝƚƚŽ ǀĞƌLJĐƌŝƟĐĂůĂŶĚƐƉĞĐŝĮĐƌŝƐŬƐ͕ǁŚŝĐŚĂƌĞƉƌŝŶĐŝƉĂůůLJƌĞůĂƚĞĚƚŽƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉ͛ƐƉƌŝŵĂƌLJĮŶĂŶĐŝĂůŝŶƚĞƌŵĞĚŝĂƌLJƌŽůĞŝŶƚŚĞ ĮŶĂŶĐŝĂůŵĂƌŬĞƚƐ͕ŝŶĐůƵĚŝŶŐƚŚĞƵƐĞŽĨĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐŝŶĐůƵĚŝŶŐĚĞƌŝǀĂƟǀĞƐ͘dŚĞƐĞŵĂƌŬĞƚƌŝƐŬƐ;ƌŝƐŬŽĨĂŶĂĚǀĂŶĐĞĞǀĞŶƚŝŶ ƚŚĞĮŶĂŶĐŝĂůŵĂƌŬĞƚƐƚŚĂƚŵĂLJƌĞƐƵůƚŝŶůŽƐƐŽĨĞĂƌŶŝŶŐƐͿŝŶĐůƵĚĞůŝƋƵŝĚŝƚLJƌŝƐŬ͕ĨŽƌĞŝŐŶĞdžĐŚĂŶŐĞƌŝƐŬ͕ŝŶƚĞƌĞƐƚƌĂƚĞƌŝƐŬĂŶĚĐƌĞĚŝƚ ƌŝƐŬ͘ dŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉĂĐĐĞƉƚƐĚĞƉŽƐŝƚƐĨƌŽŵĐƵƐƚŽŵĞƌƐĂƚďŽƚŚĮdžĞĚĂŶĚŇŽĂƟŶŐƌĂƚĞƐĂŶĚĨŽƌǀĂƌŝŽƵƐƉĞƌŝŽĚƐĂŶĚƐĞĞŬƐƚŽ ĞĂƌŶĂďŽǀĞĂǀĞƌĂŐĞŝŶƚĞƌĞƐƚŵĂƌŐŝŶƐďLJŝŶǀĞƐƟŶŐƚŚĞƐĞĨƵŶĚƐŝŶŚŝŐŚƋƵĂůŝƚLJĂƐƐĞƚƐ͘dŚĞƐĞŵĂƌŐŝŶƐĂƌĞĂĐŚŝĞǀĞĚĂŶĚŝŶĐƌĞĂƐĞĚ ďLJĐŽŶƐŽůŝĚĂƟŶŐƐŚŽƌƚͲƚĞƌŵĨƵŶĚƐĂŶĚůĞŶĚŝŶŐĨŽƌůŽŶŐĞƌƉĞƌŝŽĚƐĂƚŚŝŐŚĞƌƌĂƚĞƐǁŚŝůƐƚŵĂŝŶƚĂŝŶŝŶŐƐƵĸĐŝĞŶƚůŝƋƵŝĚŝƚLJƚŽŵĞĞƚĂůů ĐůĂŝŵƐƚŚĂƚŵŝŐŚƚĨĂůůĚƵĞ͘ dŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉĂůƐŽƐĞĞŬƐƚŽŽƉƟŵŝƐĞŝƚƐŝŶƚĞƌĞƐƚŵĂƌŐŝŶƐďLJŽďƚĂŝŶŝŶŐĂďŽǀĞĂǀĞƌĂŐĞƌĞƚƵƌŶƐ͕ŶĞƚŽĨƉƌŽǀŝƐŝŽŶƐ͕ƚŚƌŽƵŐŚ ůĞŶĚŝŶŐƚŽĐŽŵŵĞƌĐŝĂůĂŶĚƌĞƚĂŝůďŽƌƌŽǁĞƌƐǁŝƚŚĂƌĂŶŐĞŽĨĐƌĞĚŝƚƐƚĂŶĚŝŶŐ͘/ŶĂĚĚŝƟŽŶƚŽĚŝƌĞĐƚůLJĂĚǀĂŶĐŝŶŐĨƵŶĚƐƚŽďŽƌƌŽǁĞƌƐ͕ ƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉĂůƐŽĞŶƚĞƌƐŝŶƚŽŐƵĂƌĂŶƚĞĞƐĂŶĚŽƚŚĞƌĐŽŵŵŝƚŵĞŶƚƐƐƵĐŚĂƐůĞƩĞƌƐŽĨĐƌĞĚŝƚ͕ƉĞƌĨŽƌŵĂŶĐĞďŽŶĚƐ͕ĂŶĚ ŽƚŚĞƌďŽŶĚƐ͘ dŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉĂůƐŽĞŶƚĞƌƐŝŶƚŽƚƌĂŶƐĂĐƟŽŶƐĚĞŶŽŵŝŶĂƚĞĚŝŶĨŽƌĞŝŐŶĐƵƌƌĞŶĐŝĞƐ͘dŚŝƐĂĐƟǀŝƚLJŐĞŶĞƌĂůůLJƌĞƋƵŝƌĞƐƚŚĞĂŶŬ ĂŶĚƚŚĞ'ƌŽƵƉƚŽƚĂŬĞĨŽƌĞŝŐŶĐƵƌƌĞŶĐLJƉŽƐŝƟŽŶƐŝŶŽƌĚĞƌƚŽĞdžƉůŽŝƚƐŚŽƌƚƚĞƌŵŵŽǀĞŵĞŶƚƐŝŶƚŚĞĨŽƌĞŝŐŶĐƵƌƌĞŶĐLJŵĂƌŬĞƚ͘dŚĞ ŽĂƌĚƉůĂĐĞƐůŝŵŝƚƐŽŶƚŚĞƐŝnjĞŽĨƚŚĞƐĞƉŽƐŝƟŽŶƐ͘dŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉĂůƐŽŚĂƐĂƉŽůŝĐLJŽĨƵƐŝŶŐŽīƐĞƫŶŐĐŽŵŵŝƚŵĞŶƚƐĨŽƌ ĨŽƌĞŝŐŶĞdžĐŚĂŶŐĞĐŽŶƚƌĂĐƚƐ͕ĞīĞĐƟǀĞůLJŵŝŶŝŵŝƐŝŶŐƚŚĞƌŝƐŬŽĨůŽƐƐĚƵĞƚŽĂĚǀĞƌƐĞŵŽǀĞŵĞŶƚƐŝŶĨŽƌĞŝŐŶĐƵƌƌĞŶĐŝĞƐ͘ ZŝƐŬŝŶƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉŝƐŵĂŶĂŐĞĚƚŚƌŽƵŐŚĂƐLJƐƚĞŵŽĨĚĞůĞŐĂƚĞĚůŝŵŝƚƐ͘dŚĞƐĞůŝŵŝƚƐƐĞƚƚŚĞŵĂdžŝŵƵŵůĞǀĞůŽĨƌŝƐŬƚŚĂƚ ĐĂŶďĞĂƐƐƵŵĞĚďLJĞĂĐŚŽƉĞƌĂƟŽŶĂůƵŶŝƚĂŶĚƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉĂƐĂǁŚŽůĞ͘dŚĞůŝŵŝƚƐĂƌĞĚĞůĞŐĂƚĞĚĨƌŽŵƚŚĞŽĂƌĚŽĨ ŝƌĞĐƚŽƌƐƚŽĞdžĞĐƵƟǀĞŵĂŶĂŐĞŵĞŶƚĂŶĚŚĞŶĐĞƚŽƚŚĞƌĞƐƉĞĐƟǀĞŽƉĞƌĂƟŽŶĂůŵĂŶĂŐĞƌƐ͘ dŚĞƌŝƐŬŵĂŶĂŐĞŵĞŶƚĨƌĂŵĞǁŽƌŬĞƐƚĂďůŝƐŚĞƐƌŽůĞƐ͕ƌĞƐƉŽŶƐŝďŝůŝƟĞƐĂŶĚĂĐĐŽƵŶƚĂďŝůŝƟĞƐŽĨƚŚĞƐƐĞƚĂŶĚ>ŝĂďŝůŝƚLJŽŵŵŝƩĞĞ͕ƚŚĞ ƌĞĚŝƚŽŵŵŝƩĞĞ͕ƚŚĞKƉĞƌĂƟŽŶĂůZŝƐŬŽŵŵŝƩĞĞĂŶĚƚŚĞ džĞĐƵƟǀĞŽŵŵŝƩĞĞ͕ƚŚĞƐƉĞĐŝĮĐŵĂŶĂŐĞŵĞŶƚĐŽŵŵŝƩĞĞƐĐŚĂƌŐĞĚ ǁŝƚŚƚŚĞƌĞƐƉŽŶƐŝďŝůŝƚLJĨŽƌĞŶƐƵƌŝŶŐƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉŚĂƐĂƉƉƌŽƉƌŝĂƚĞƐLJƐƚĞŵƐ͕ƉŽůŝĐŝĞƐĂŶĚƉƌŽĐĞĚƵƌĞƐƚŽŵĞĂƐƵƌĞ͕ŵŽŶŝƚŽƌ ĂŶĚƌĞƉŽƌƚŽŶƌŝƐŬŵĂŶĂŐĞŵĞŶƚ͘dŚĞĨƌĂŵĞǁŽƌŬĂůƐŽŝŶĐůƵĚĞƐƉŽůŝĐŝĞƐĂŶĚƉƌŽĐĞĚƵƌĞƐǁŚŝĐŚĚĞƚĂŝůĨŽƌŵĂůĨĞĞĚďĂĐŬƉƌŽĐĞƐƐĞƐ ƚŽƚŚĞƐĞŵĂŶĂŐĞŵĞŶƚĐŽŵŵŝƩĞĞƐ͕ƚŽƚŚĞƵĚŝƚ͕ZŝƐŬĂŶĚŽŵƉůŝĂŶĐĞŽŵŵŝƩĞĞŽĨƚŚĞŽĂƌĚ͕ĂŶĚƵůƟŵĂƚĞůLJƚŽƚŚĞŽĂƌĚŽĨ ŝƌĞĐƚŽƌƐ͘ 32. CAPITAL ADEQUACY dŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉŝƐƌĞƋƵŝƌĞĚƚŽĐŽŵƉůLJǁŝƚŚǀĂƌŝŽƵƐƉƌƵĚĞŶƟĂůƐƚĂŶĚĂƌĚƐŝƐƐƵĞĚďLJƚŚĞĂŶŬŽĨWĂƉƵĂEĞǁ'ƵŝŶĞĂ;WE'Ϳ͕ ƚŚĞŽĸĐŝĂůĂƵƚŚŽƌŝƚLJĨŽƌƚŚĞƉƌƵĚĞŶƟĂůƐƵƉĞƌǀŝƐŝŽŶŽĨďĂŶŬƐĂŶĚƐŝŵŝůĂƌĮŶĂŶĐŝĂůŝŶƐƟƚƵƟŽŶƐŝŶWĂƉƵĂEĞǁ'ƵŝŶĞĂ͘ĚĚŝƟŽŶĂůůLJ͕ ƐƵďƐŝĚŝĂƌŝĞƐĂŶĚďƌĂŶĐŚĞƐŝŶ&ŝũŝĂŶĚ^ŽůŽŵŽŶ/ƐůĂŶĚƐĂƌĞƌĞƋƵŝƌĞĚƚŽĂĚŚĞƌĞƚŽƉƌƵĚĞŶƟĂůƐƚĂŶĚĂƌĚƐŝƐƐƵĞĚďLJƚŚĞZĞƐĞƌǀĞĂŶŬŽĨ &ŝũŝ;Z&ͿĂŶĚƚŚĞĞŶƚƌĂůĂŶŬŽĨ^ŽůŽŵŽŶ/ƐůĂŶĚƐ;^/ͿƌĞƐƉĞĐƟǀĞůLJ͘KŶĞŽĨƚŚĞŵŽƐƚĐƌŝƟĐĂůƉƌƵĚĞŶƟĂůƐƚĂŶĚĂƌĚƐŝƐƚŚĞĐĂƉŝƚĂů ĂĚĞƋƵĂĐLJƌĞƋƵŝƌĞŵĞŶƚ͘ ůůďĂŶŬƐĂƌĞƌĞƋƵŝƌĞĚƚŽŵĂŝŶƚĂŝŶĂƚůĞĂƐƚƚŚĞŵŝŶŝŵƵŵĂĐĐĞƉƚĂďůĞŵĞĂƐƵƌĞŽĨĐĂƉŝƚĂůƚŽƌŝƐŬͲǁĞŝŐŚƚĞĚĂƐƐĞƚƐƚŽĂďƐŽƌďƉŽƚĞŶƟĂů ůŽƐƐĞƐ͘dŚĞWE'ĨŽůůŽǁƐƚŚĞƉƌƵĚĞŶƟĂůŐƵŝĚĞůŝŶĞƐƐĞƚďLJƚŚĞĂŶŬŽĨ/ŶƚĞƌŶĂƟŽŶĂů^ĞƩůĞŵĞŶƚƐƵŶĚĞƌƚŚĞƚĞƌŵƐŽĨƚŚĞĂƐĞů ĐĐŽƌĚ͘dŚĞWE'ƌĞǀŝƐĞĚƉƌƵĚĞŶƟĂůƐƚĂŶĚĂƌĚϭͬϮϬϬϯ͕ĂƉŝƚĂůĚĞƋƵĂĐLJ͕ƉƌĞƐĐƌŝďĞƐƌĂŶŐĞƐŽĨŽǀĞƌĂůůĐĂƉŝƚĂůƌĂƟŽƐƚŽŵĞĂƐƵƌĞ ǁŚĞƚŚĞƌĂďĂŶŬŝƐƵŶĚĞƌ͕ĂĚĞƋƵĂƚĞůLJ͕ŽƌǁĞůůĐĂƉŝƚĂůŝƐĞĚ͕ĂŶĚĂůƐŽĂƉƉůŝĞƐƚŚĞůĞǀĞƌĂŐĞĐĂƉŝƚĂůƌĂƟŽ͘dŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉ ĐŽŵƉůŝĞƐǁŝƚŚƚŚĞƉƌĞǀĂŝůŝŶŐƉƌƵĚĞŶƟĂůƌĞƋƵŝƌĞŵĞŶƚƐĨŽƌƚŽƚĂůĐĂƉŝƚĂůĂŶĚůĞǀĞƌĂŐĞĐĂƉŝƚĂů͘ƐĂƚϯϭĞĐĞŵďĞƌϮϬϭϰ͕ƚŚĞĂŶŬ ĂŶĚƚŚĞ'ƌŽƵƉ͛ƐƚŽƚĂůĐĂƉŝƚĂůĂĚĞƋƵĂĐLJƌĂƟŽĂŶĚůĞǀĞƌĂŐĞĐĂƉŝƚĂůƌĂƟŽƐĂƟƐĮĞĚƚŚĞĐĂƉŝƚĂůĂĚĞƋƵĂĐLJĐƌŝƚĞƌŝĂĨŽƌĂ͚ǁĞůůͲĐĂƉŝƚĂůŝƐĞĚ͛ ďĂŶŬ͘dŚĞŵŝŶŝŵƵŵĐĂƉŝƚĂůĂĚĞƋƵĂĐLJƌĞƋƵŝƌĞŵĞŶƚƐƐĞƚŽƵƚƵŶĚĞƌƚŚĞƐƚĂŶĚĂƌĚĂƌĞ͗dŝĞƌϭĐĂƉŝƚĂůƌĂƟŽϴй͕ƚŽƚĂůƌŝƐŬďĂƐĞĐĂƉŝƚĂů ƌĂƟŽϭϮйĂŶĚƚŚĞůĞǀĞƌĂŐĞƌĂƟŽϲй͘ 76 BSP Annual Report 2014 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 32. CAPITAL ADEQUACY FRQWLQXHG dŚĞŵĞĂƐƵƌĞŽĨĐĂƉŝƚĂůƵƐĞĚĨŽƌƚŚĞƉƵƌƉŽƐĞƐŽĨƉƌƵĚĞŶƟĂůƐƵƉĞƌǀŝƐŝŽŶŝƐƌĞĨĞƌƌĞĚƚŽĂƐďĂƐĞĐĂƉŝƚĂů͘dŽƚĂůďĂƐĞĐĂƉŝƚĂůǀĂƌŝĞƐ ĨƌŽŵƚŚĞďĂůĂŶĐĞŽĨĐĂƉŝƚĂůƐŚŽǁŶŽŶƚŚĞƐƚĂƚĞŵĞŶƚŽĨĮŶĂŶĐŝĂůƉŽƐŝƟŽŶĂŶĚŝƐŵĂĚĞƵƉŽĨƟĞƌϭĐĂƉŝƚĂů;ĐŽƌĞͿĂŶĚƟĞƌϮĐĂƉŝƚĂů ;ƐƵƉƉůĞŵĞŶƚĂƌLJͿ͘dŝĞƌϭĐĂƉŝƚĂůŝƐŽďƚĂŝŶĞĚďLJĚĞĚƵĐƟŶŐĨƌŽŵĞƋƵŝƚLJĐĂƉŝƚĂůĂŶĚĂƵĚŝƚĞĚƌĞƚĂŝŶĞĚĞĂƌŶŝŶŐƐ;ŽƌůŽƐƐĞƐͿ͕ŝŶƚĂŶŐŝďůĞ ĂƐƐĞƚƐŝŶĐůƵĚŝŶŐĚĞĨĞƌƌĞĚƚĂdžĂƐƐĞƚƐ͘dŝĞƌϮĐĂƉŝƚĂůĐĂŶŶŽƚĞdžĐĞĞĚƚŚĞĂŵŽƵŶƚŽĨƟĞƌϭĐĂƉŝƚĂů͕ĂŶĚĐĂŶŝŶĐůƵĚĞƐƵďŽƌĚŝŶĂƚĞĚůŽĂŶ ĐĂƉŝƚĂů͕ƐƉĞĐŝĮĞĚĂƐƐĞƚƌĞǀĂůƵĂƟŽŶƌĞƐĞƌǀĞƐ͕ƵŶͲĂƵĚŝƚĞĚƉƌŽĮƚƐ;ŽƌůŽƐƐĞƐͿĂŶĚĂƐŵĂůůƉĞƌĐĞŶƚĂŐĞŽĨŐĞŶĞƌĂůůŽĂŶůŽƐƐƉƌŽǀŝƐŝŽŶƐ͘ dŚĞůĞǀĞƌĂŐĞĐĂƉŝƚĂůƌĂƟŽŝƐĐĂůĐƵůĂƚĞĚĂƐdŝĞƌϭĐĂƉŝƚĂůĚŝǀŝĚĞĚďLJƚŽƚĂůĂƐƐĞƚƐŽŶƚŚĞďĂůĂŶĐĞƐŚĞĞƚ͘ ZŝƐŬǁĞŝŐŚƚĞĚĂƐƐĞƚƐĂƌĞĚĞƌŝǀĞĚĨƌŽŵŽŶͲďĂůĂŶĐĞƐŚĞĞƚĂŶĚŽīͲďĂůĂŶĐĞƐŚĞĞƚĂƐƐĞƚƐ͘KŶďĂůĂŶĐĞƐŚĞĞƚĂƐƐĞƚƐĂƌĞǁĞŝŐŚƚĞĚĨŽƌ ĐƌĞĚŝƚƌŝƐŬďLJĂƉƉůLJŝŶŐǁĞŝŐŚƟŶŐƐ;Ϭ͕ϮϬ͕ϱϬĂŶĚϭϬϬƉĞƌĐĞŶƚͿĂĐĐŽƌĚŝŶŐƚŽƌŝƐŬĐůĂƐƐŝĮĐĂƟŽŶĐƌŝƚĞƌŝĂƐĞƚďLJƚŚĞWE'͘KīͲďĂůĂŶĐĞ ƐŚĞĞƚĞdžƉŽƐƵƌĞƐĂƌĞƌŝƐŬǁĞŝŐŚƚĞĚŝŶƚŚĞƐĂŵĞǁĂLJĂŌĞƌĐŽŶǀĞƌƟŶŐƚŚĞŵƚŽŽŶͲďĂůĂŶĐĞƐŚĞĞƚĐƌĞĚŝƚĞƋƵŝǀĂůĞŶƚƐƵƐŝŶŐWE' ƐƉĞĐŝĮĞĚĐƌĞĚŝƚĐŽŶǀĞƌƐŝŽŶĨĂĐƚŽƌƐ͘ dŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉ͛ƐĐĂƉŝƚĂůĂĚĞƋƵĂĐLJůĞǀĞůŝƐĂƐĨŽůůŽǁƐ͗ ĂůĂŶĐĞƐŚĞĞƚͬEĂƟŽŶĂů ZŝƐŬǁĞŝŐŚƚĞĚĂŵŽƵŶƚ amount ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<͛ϬϬϬ 2014 2013 2014 2013 Balance sheet assets (net of provisions) ƵƌƌĞŶĐLJ Ϯ͕ϲϬϳ͕Ϭϱϭ Ϯ͕ϬϯϬ͕ϴϬϬ Ͳ Ͳ >ŽĂŶƐ͕ĂĚǀĂŶĐĞƐΘŽƚŚĞƌƌĞĐĞŝǀĂďůĞƐĨƌŽŵĐƵƐƚŽŵĞƌƐ ϲ͕ϴϭϳ͕ϯϵϲ ϱ͕ϯϬϲ͕ϯϲϮ ϱ͕ϳϴϳ͕ϯϯϯ ϱ͕ϬϬϵ͕Ϯϲϱ /ŶǀĞƐƚŵĞŶƚƐĂŶĚƐŚŽƌƚƚĞƌŵƐĞĐƵƌŝƟĞƐ ϰ͕ϱϰϰ͕ϴϴϲ ϱ͕ϰϱϰ͕ϮϯϬ Ͳ Ͳ ůůŽƚŚĞƌĂƐƐĞƚƐ ϭ͕ϵϬϳ͕ϱϳϯ Ϯ͕ϵϳϬ͕ϬϮϴ ϭ͕ϯϬϭ͕ϴϰϬ Ϯ͕ϳϳϴ͕ϱϯϭ KīďĂůĂŶĐĞƐŚĞĞƚŝƚĞŵƐ ϭ͕ϯϰϴ͕ϲϴϰ ϭ͕ϱϭϮ͕ϬϬϮ ϭϵϰ͕ϱϰϴ ϳϭϰ͕ϰϭϰ Total 17,225,590 17,273,422 7,283,721 8,502,210 ƵĚŝƚĞĚĂƉŝƚĂůZĂƟŽƐ Capital (K’000) ĂƉŝƚĂůĚĞƋƵĂĐLJZĂƟŽ;йͿ ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<͛ϬϬϬ 2014 2013 2014 2013 ĂͿdŝĞƌϭĐĂƉŝƚĂů ϭ͕ϰϭϮ͕ϴϯϴ ϭ͕ϭϴϭ͕ϭϴϳ ϭϵ͘ϰй ϭϯ͘ϵй dŝĞƌϭнdŝĞƌϮĐĂƉŝƚĂů ϭ͕ϳϰϲ͕ϮϵϮ ϭ͕ϱϯϯ͕Ϭϵϯ Ϯϰ͘Ϭй ϭϴ͘Ϭй ďͿ>ĞǀĞƌĂŐĞĂƉŝƚĂůZĂƟŽ ϵ͘Ϭй ϳ͘ϲй BSP Annual Report 2014 77 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 33. CREDIT RISK & ASSET QUALITY dŚĞĂŶŬŝŶĐƵƌƐƌŝƐŬǁŝƚŚƌĞŐĂƌĚƐƚŽůŽĂŶƐ͕ĂĚǀĂŶĐĞƐĂŶĚŽƚŚĞƌƌĞĐĞŝǀĂďůĞƐĨƌŽŵĐƵƐƚŽŵĞƌƐĂŶĚŽƚŚĞƌŵŽŶŝĞƐŽƌŝŶǀĞƐƚŵĞŶƚƐŚĞůĚ ǁŝƚŚĮŶĂŶĐŝĂůŝŶƐƟƚƵƟŽŶƐ͘ƌĞĚŝƚƌŝƐŬŝƐƚŚĞůŝŬĞůŝŚŽŽĚŽĨĨƵƚƵƌĞĮŶĂŶĐŝĂůůŽƐƐƌĞƐƵůƟŶŐĨƌŽŵƚŚĞĨĂŝůƵƌĞŽĨĐůŝĞŶƚƐŽƌĐŽƵŶƚĞƌͲƉĂƌƟĞƐ ƚŽŵĞĞƚĐŽŶƚƌĂĐƚƵĂůŽďůŝŐĂƟŽŶƐƚŽƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉĂƐƚŚĞLJĨĂůůĚƵĞ͘ ƌĞĚŝƚƌŝƐŬŝƐŵĂŶĂŐĞĚďLJĂŶĂůLJƐŝŶŐƚŚĞƌŝƐŬƐƉƌĞĂĚĂĐƌŽƐƐǀĂƌŝŽƵƐƐĞĐƚŽƌƐŽĨƚŚĞĞĐŽŶŽŵLJĂŶĚďLJĞŶƐƵƌŝŶŐƌŝƐŬŝƐĚŝǀĞƌƐĞůLJƐƉƌĞĂĚ ďLJƉĞƌƐŽŶĂůĂŶĚĐŽŵŵĞƌĐŝĂůĐƵƐƚŽŵĞƌ͘/ŶĚŝǀŝĚƵĂůĞdžƉŽƐƵƌĞƐĂƌĞŵĞĂƐƵƌĞĚƵƐŝŶŐƌĞƉĂLJŵĞŶƚƉĞƌĨŽƌŵĂŶĐĞ͕ƌĞǀŝĞǁƐĂŶĚƐƚĂƟƐƟĐĂů ƚĞĐŚŶŝƋƵĞƐ͘ŽŵƉƌĞŚĞŶƐŝǀĞĐƌĞĚŝƚƐƚĂŶĚĂƌĚƐĂŶĚĂƉƉƌŽǀĂůůŝŵŝƚƐŚĂǀĞďĞĞŶĨŽƌŵƵůĂƚĞĚĂŶĚĂƉƉƌŽǀĞĚďLJƚŚĞƌĞĚŝƚŽŵŵŝƩĞĞ͘ dŚĞ ƌĞĚŝƚ ŽŵŵŝƩĞĞ ;ǁŚŝĐŚ ƌĞƉŽƌƚƐ ƚŽ ƚŚĞ ŽĂƌĚ ƚŚƌŽƵŐŚ ƚŚĞ džĞĐƵƟǀĞ ĂŶĚ ŚŝĞĨ džĞĐƵƟǀĞ KĸĐĞƌͿ ŝƐ ƌĞƐƉŽŶƐŝďůĞ ĨŽƌ ƚŚĞ ĚĞǀĞůŽƉŵĞŶƚĂŶĚŝŵƉůĞŵĞŶƚĂƟŽŶŽĨĐƌĞĚŝƚƉŽůŝĐLJĂŶĚůŽĂŶƉŽƌƞŽůŝŽƌĞǀŝĞǁŵĞƚŚŽĚŽůŽŐLJ͘dŚĞƌĞĚŝƚŽŵŵŝƩĞĞŝƐƚŚĞĮŶĂůĂƌďŝƚĞƌ ŽĨƌŝƐŬŵĂŶĂŐĞŵĞŶƚĂŶĚůŽĂŶƌŝƐŬĐŽŶĐĞŶƚƌĂƟŽŶ͘ ƐŝŶĚŝĐĂƚĞĚŝŶĐĐŽƵŶƟŶŐWŽůŝĐLJ'ʹ>ŽĂŶƐĂŶĚƉƌŽǀŝƐŝŽŶĨŽƌůŽĂŶŝŵƉĂŝƌŵĞŶƚ͕ƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉŚĂƐŝŶƉůĂĐĞƉƌŽĐĞƐƐĞƐƚŚĂƚ ŝĚĞŶƟĨLJ͕ĂƐƐĞƐƐĂŶĚĐŽŶƚƌŽůĐƌĞĚŝƚƌŝƐŬŝŶƌĞůĂƟŽŶƚŽƚŚĞůŽĂŶƉŽƌƞŽůŝŽ͕ƚŽĂƐƐŝƐƚŝŶĚĞƚĞƌŵŝŶŝŶŐƚŚĞĂƉƉƌŽƉƌŝĂƚĞŶĞƐƐŽĨƉƌŽǀŝƐŝŽŶƐ ĨŽƌůŽĂŶŝŵƉĂŝƌŵĞŶƚ͘dŚĞƐĞƉƌŽĐĞƐƐĞƐĂůƐŽĞŶĂďůĞĂƐƐĞƐƐŵĞŶƚƐƚŽďĞŵĂĚĞŽĨŽƚŚĞƌĐůĂƐƐĞƐŽĨĂƐƐĞƚƐƚŚĂƚŵĂLJĐĂƌƌLJĂŶĞůĞŵĞŶƚŽĨ ĐƌĞĚŝƚƌŝƐŬ͘dŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉĂƐƐŝŐŶƐƋƵĂůŝƚLJŝŶĚŝĐĂƚŽƌƐƚŽŝƚƐĐƌĞĚŝƚĞdžƉŽƐƵƌĞƐƚŽĚĞƚĞƌŵŝŶĞƚŚĞĂƐƐĞƚƋƵĂůŝƚLJƉƌŽĮůĞ͘ >ĂƌŐĞĐƌĞĚŝƚĞdžƉŽƐƵƌĞƐĂƌĞĂůƐŽŵŽŶŝƚŽƌĞĚĂƐƉĂƌƚŽĨĐƌĞĚŝƚƌŝƐŬŵĂŶĂŐĞŵĞŶƚ͘dŚĞƐĞĂƌĞĐůĂƐƐŝĮĞĚĂƐƚŚĞůĂƌŐĞƐƚϮϱŝŶĚŝǀŝĚƵĂů ĂĐĐŽƵŶƚƐŽƌŐƌŽƵƉƐŽĨƌĞůĂƚĞĚĐŽƵŶƚĞƌͲƉĂƌƟĞƐ͘ƐĂƚϯϭĞĐĞŵďĞƌϮϬϭϰ͕ƚŚĞϮϱůĂƌŐĞƐƚĞdžƉŽƐƵƌĞƐƚŽƚĂůĞĚ<ϰ͘ϭďŝůůŝŽŶ͕ĂĐĐŽƵŶƟŶŐĨŽƌ ŽǀĞƌϲϬйŽĨƚŚĞĂŶŬĂŶĚϲϬйŽĨƚŚĞ'ƌŽƵƉ͛ƐƚŽƚĂůůŽĂŶƉŽƌƞŽůŝŽ;ϮϬϭϯ͗<ϯ͘ϮďŝůůŝŽŶ͕ĂĐĐŽƵŶƟŶŐĨŽƌŽǀĞƌϱϲйĂŶĚϱϲйƌĞƐƉĞĐƟǀĞůLJͿ͘ dŚĞĂŶŬŽĨWĂƉƵĂEĞǁ'ƵŝŶĞĂŚĂƐŵĂŝŶƚĂŝŶĞĚĂƌĞǀŝƐĞĚƉƌƵĚĞŶƟĂůƐƚĂŶĚĂƌĚĨŽƌĂƐƐĞƚƋƵĂůŝƚLJƐŝŶĐĞKĐƚŽďĞƌϮϬϬϯ͘dŚĞƌĞǀŝƐĞĚ ƐƚĂŶĚĂƌĚƐƉĞĐŝĮĞƐŵŽƌĞĚĞƚĂŝůĞĚĐƌŝƚĞƌŝĂĨŽƌƚŚĞĐůĂƐƐŝĮĐĂƟŽŶŽĨůŽĂŶƐŝŶƚŽǀĂƌŝŽƵƐŐƌĂĚĞƐŽĨĚĞĨĂƵůƚƌŝƐŬĂŶĚĐŽƌƌĞƐƉŽŶĚŝŶŐůŽƐƐ ƉƌŽǀŝƐŝŽŶůĞǀĞůƐĂƐĂĐŽŶƐĞƋƵĞŶĐĞŽĨƚŚŽƐĞŐƌĂĚŝŶŐ͛Ɛ͘ ŶĂŶĂůLJƐŝƐďLJĐƌĞĚŝƚƋƵĂůŝƚLJŽĨůŽĂŶƐŽƵƚƐƚĂŶĚŝŶŐĂƚϯϭĞĐĞŵďĞƌϮϬϭϰŝƐĂƐĨŽůůŽǁƐ͗ Lease 2014 KǀĞƌĚƌĂŌƐ Term loans Mortgages ĮŶĂŶĐŝŶŐ Policy loans Total EĞŝƚŚĞƌƉĂƐƚĚƵĞŶŽƌŝŵƉĂŝƌĞĚ ϭ͕ϯϯϰ͕ϵϲϰ ϯ͕ϵϯϯ͕Ϭϯϯ ϭ͕Ϭϰϭ͕ϴϱϯ Ϯϱϭ͕ϮϱϮ ϯϵ͕ϲϳϴ ϲ͕ϲϬϬ͕ϳϴϬ Past due but not impaired Ͳ>ĞƐƐƚŚĂŶϯϬĚĂLJƐ ϳϴ͕ϯϴϴ Ϯϱϴ͕ϭϲϬ ϲϱ͕ϰϴϯ ϭϮ͕ϯϬϳ Ͳ ϰϭϰ͕ϯϯϵ ͲϯϬƚŽϵϬĚĂLJƐ Ϯ͕ϵϯϯ ϰϬ͕ϯϬϵ Ϯϲ͕ϲϭϱ ϵ͕ϭϲϱ Ͳ ϳϵ͕ϬϮϮ ͲϵϭƚŽϯϲϬĚĂLJƐ ϭ͕ϭϯϴ Ϯ͕ϱϰϭ ϳ͕ϬϴϮ ϭϰϯ Ͳ ϭϬ͕ϵϬϰ ͲDŽƌĞƚŚĂŶϯϲϬĚĂLJƐ ϭϳϳ ϭϵϭ Ͳ Ͳ Ͳ ϯϲϴ ϴϮ͕ϲϯϲ ϯϬϭ͕ϮϬϭ ϵϵ͕ϭϴϬ Ϯϭ͕ϲϭϲ Ͳ ϱϬϰ͕ϲϯϮ Individually impaired loans Ͳ>ĞƐƐƚŚĂŶϯϬĚĂLJƐ ϭ͕ϱϱϭ ϰ͕ϬϱϮ Ϯ͕Ϭϴϯ Ͳ Ͳ ϳ͕ϲϴϲ ͲϯϬƚŽϵϬĚĂLJƐ ϰ ϯ͕ϯϳϵ ϭ͕ϲϬϯ Ͳ Ͳ ϰ͕ϵϴϲ ͲϵϭƚŽϯϲϬĚĂLJƐ ϭϬϯ ϱ͕ϯϮϭ ϯ͕ϲϲϳ Ͳ Ͳ ϵ͕Ϭϵϭ ͲDŽƌĞƚŚĂŶϯϲϬĚĂLJƐ ϯ͕ϴϲϵ ϰ͕ϱϵϯ ϵ͕ϰϲϵ ϯϮϳ Ͳ ϭϴ͕Ϯϱϴ ϱ͕ϱϮϳ ϭϳ͕ϯϰϱ ϭϲ͕ϴϮϮ ϯϮϳ Ͳ ϰϬ͕ϬϮϭ Total gross loans, advances & other receivables from customers 1,423,127 4,251,579 1,157,855 273,194 39,678 7,145,433 >ĞƐƐŝŵƉĂŝƌŵĞŶƚƉƌŽǀŝƐŝŽŶƐ ϯϮϴ͕Ϭϯϳ Net Loans & Advances 6,817,396 78 BSP Annual Report 2014 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 33. CREDIT RISK & ASSET QUALITY FRQWLQXHG Credit related commitments dŚĞƐĞŝŶƐƚƌƵŵĞŶƚƐĂƌĞƵƐĞĚƚŽĞŶƐƵƌĞƚŚĂƚĨƵŶĚƐĂƌĞĂǀĂŝůĂďůĞƚŽĂĐƵƐƚŽŵĞƌĂƐƌĞƋƵŝƌĞĚ͘dŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉĚĞĂůƐƉƌŝŶĐŝƉĂůůLJ ŝŶƚŚĞĐƌĞĚŝƚƌĞůĂƚĞĚĐŽŵŵŝƚŵĞŶƚƐƐĞƚŽƵƚďĞůŽǁ͘ 'ƵĂƌĂŶƚĞĞƐĂŶĚƐƚĂŶĚďLJůĞƩĞƌƐŽĨĐƌĞĚŝƚ͕ǁŚŝĐŚƌĞƉƌĞƐĞŶƚŝƌƌĞǀŽĐĂďůĞĂƐƐƵƌĂŶĐĞƐƚŚĂƚƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉǁŝůůŵĂŬĞƉĂLJŵĞŶƚƐ ŝŶƚŚĞĞǀĞŶƚƚŚĂƚĂĐƵƐƚŽŵĞƌĐĂŶŶŽƚŵĞĞƚŝƚƐŽďůŝŐĂƟŽŶƐƚŽƚŚŝƌĚƉĂƌƟĞƐ͕ĐĂƌƌLJƚŚĞƐĂŵĞƌŝƐŬĂƐůŽĂŶƐ͘ ŽĐƵŵĞŶƚĂƌLJĂŶĚƚƌĂĚĞůĞƩĞƌƐŽĨĐƌĞĚŝƚĂƌĞǁƌŝƩĞŶƵŶĚĞƌƚĂŬŝŶŐƐďLJƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉŽŶďĞŚĂůĨŽĨĂĐƵƐƚŽŵĞƌ͕ĂƵƚŚŽƌŝƐŝŶŐ ĂƚŚŝƌĚƉĂƌƚLJƚŽĚƌĂǁĚƌĂŌƐŽŶƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉĨŽƌƐƉĞĐŝĮĞĚĂŵŽƵŶƚƐƵŶĚĞƌƐƉĞĐŝĮĞĚƚĞƌŵƐĂŶĚĐŽŶĚŝƟŽŶƐ͘dŚĞLJĂƌĞ ĐŽůůĂƚĞƌĂůŝƐĞĚďLJƚŚĞƵŶĚĞƌůLJŝŶŐƐŚŝƉŵĞŶƚƐŽĨŐŽŽĚƐƚŽǁŚŝĐŚƚŚĞLJƌĞůĂƚĞĂŶĚƚŚĞƌĞĨŽƌĞĐĂƌƌLJůĞƐƐƌŝƐŬƚŚĂŶĂĐŽŶǀĞŶƟŽŶĂůůŽĂŶ͘ ŽŵŵŝƚŵĞŶƚƐƚŽĞdžƚĞŶĚĐƌĞĚŝƚƌĞƉƌĞƐĞŶƚƵŶĚƌĂǁŶƉŽƌƟŽŶƐŽĨĂƵƚŚŽƌŝƐĂƟŽŶƐƚŽĞdžƚĞŶĚĐƌĞĚŝƚŝŶƚŚĞĨŽƌŵŽĨůŽĂŶƐ͕ŐƵĂƌĂŶƚĞĞƐŽƌ ůĞƩĞƌƐŽĨĐƌĞĚŝƚ͘tŚŝůƐƚƚŚĞƉŽƚĞŶƟĂůĞdžƉŽƐƵƌĞƚŽůŽƐƐĞƋƵĂƚĞƐƚŽƚŚĞƚŽƚĂůƵŶĚƌĂǁŶĐŽŵŵŝƚŵĞŶƚƐ͕ƚŚĞůŝŬĞůLJĂŵŽƵŶƚŽĨůŽƐƐŝƐůĞƐƐ ƚŚĂŶƚŚĞƚŽƚĂůĐŽŵŵŝƚŵĞŶƚƐŝŶĐĞƚŚĞĐŽŵŵŝƚŵĞŶƚƐƚŽĞdžƚĞŶĚĐƌĞĚŝƚĂƌĞĐŽŶƟŶŐĞŶƚƵƉŽŶĐƵƐƚŽŵĞƌƐŵĂŝŶƚĂŝŶŝŶŐƐƉĞĐŝĮĐĐƌĞĚŝƚ ƐƚĂŶĚĂƌĚƐ͘dŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉŵŽŶŝƚŽƌƐƚŚĞƚĞƌŵƚŽŵĂƚƵƌŝƚLJŽĨƚŚĞƐĞĐŽŵŵŝƚŵĞŶƚƐďĞĐĂƵƐĞůŽŶŐĞƌƚĞƌŵĐŽŵŵŝƚŵĞŶƚƐ ŐĞŶĞƌĂůůLJĐĂƌƌLJĂŐƌĞĂƚĞƌĚĞŐƌĞĞŽĨĐƌĞĚŝƚƌŝƐŬƚŚĂŶƐŚŽƌƚĞƌƚĞƌŵĐŽŵŵŝƚŵĞŶƚƐ͘ ĐŽŶŽŵŝĐƐĞĐƚŽƌƌŝƐŬĐŽŶĐĞŶƚƌĂƟŽŶƐ ĐŽŶŽŵŝĐƐĞĐƚŽƌƌŝƐŬĐŽŶĐĞŶƚƌĂƟŽŶƐǁŝƚŚŝŶƚŚĞĐƵƐƚŽŵĞƌůŽĂŶƉŽƌƞŽůŝŽĂƌĞĂƐĨŽůůŽǁƐ͗ ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<ΖϬϬϬ As at 31 December 2014 й 2013 й ŽŵŵĞƌĐĞ͕ĮŶĂŶĐĞĂŶĚŽƚŚĞƌďƵƐŝŶĞƐƐ Ϯ͕ϱϵϯ͕ϲϬϵ ϯϴ Ϯ͕ϯϵϭ͕ϬϳϮ ϰϱ WƌŝǀĂƚĞŚŽƵƐĞŚŽůĚƐ ϵϰϴ͕ϵϱϳ ϭϰ ϲϵϱ͕ϳϴϮ ϭϯ 'ŽǀĞƌŶŵĞŶƚĂŶĚƉƵďůŝĐĂƵƚŚŽƌŝƟĞƐ ϭ͕ϭϵϭ͕ϰϰϵ ϭϳ ϰϰϰ͕ϲϳϬ ϵ ŐƌŝĐƵůƚƵƌĞ ϯϮϮ͕ϱϯϮ ϱ Ϯϲϳ͕ϯϲϳ ϱ dƌĂŶƐƉŽƌƚĂŶĚĐŽŵŵƵŶŝĐĂƟŽŶ ϳϬϵ͕Ϭϵϵ ϭϬ ϱϴϯ͕ϴϱϯ ϭϭ DĂŶƵĨĂĐƚƵƌŝŶŐ ϰϬϰ͕ϵϮϱ ϲ ϯϵϰ͕Ϯϲϴ ϳ ŽŶƐƚƌƵĐƟŽŶ ϲϰϲ͕ϴϮϱ ϭϬ ϱϮϵ͕ϯϱϬ ϭϬ EĞƚůŽĂŶƉŽƌƞŽůŝŽďĂůĂŶĐĞ 6,817,396 100 5,306,362 100 34. LIQUIDITY RISK >ŝƋƵŝĚŝƚLJƌŝƐŬŝƐƚŚĞƌŝƐŬŽĨďĞŝŶŐƵŶĂďůĞƚŽŵĞĞƚĮŶĂŶĐŝĂůŽďůŝŐĂƟŽŶƐĂƐƚŚĞLJĨĂůůĚƵĞ͘dŚĞŽĂƌĚ͕ƚŚƌŽƵŐŚƚŚĞƐƐĞƚĂŶĚ>ŝĂďŝůŝƚLJ ŽŵŵŝƩĞĞ͕ƐĞƚƐůŝƋƵŝĚŝƚLJƉŽůŝĐLJƚŽĞŶƐƵƌĞƚŚĂƚƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉŚĂƐƐƵĸĐŝĞŶƚĨƵŶĚƐĂǀĂŝůĂďůĞƚŽŵĞĞƚĂůůŝƚƐŬŶŽǁŶĂŶĚ ƉŽƚĞŶƟĂůŽďůŝŐĂƟŽŶƐ͘ dŚĞ ŵĂƚĐŚŝŶŐ ĂŶĚ ĐŽŶƚƌŽůůĞĚ ŵŝƐŵĂƚĐŚŝŶŐ ŽĨ ƚŚĞ ŵĂƚƵƌŝƟĞƐ ĂŶĚ ŝŶƚĞƌĞƐƚ ƌĂƚĞƐ ŽĨ ĂƐƐĞƚƐ ĂŶĚ ůŝĂďŝůŝƟĞƐ ŝƐ ĨƵŶĚĂŵĞŶƚĂů ƚŽ ƚŚĞ ŵĂŶĂŐĞŵĞŶƚŽĨďĂŶŬŝŶŐĂĐƟǀŝƟĞƐ͘ŶƵŶŵĂƚĐŚĞĚƉŽƐŝƟŽŶƉŽƚĞŶƟĂůůLJĞŶŚĂŶĐĞƐƉƌŽĮƚĂďŝůŝƚLJ͕ďƵƚĐĂŶĂůƐŽŝŶĐƌĞĂƐĞƚŚĞƌŝƐŬŽĨ ůŽƐƐĞƐ͘ Short-term mismatch of asset and liability maturity at 31 December 2014 dŚĞŵĂƚƵƌŝƚLJƉƌŽĮůĞŽĨŵĂƚĞƌŝĂůƐƐĞƚƐĂŶĚ>ŝĂďŝůŝƟĞƐĂƐĂƚϯϭĞĐĞŵďĞƌϮϬϭϰŝƐƐŚŽǁŶŝŶƚŚĞĨŽůůŽǁŝŶŐƐĐŚĞĚƵůĞ͘dŚĞŵŝƐŵĂƚĐŚŝŶŐ ŽĨŵĂƚƵƌŝƚLJŽĨĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐŝŶĚŝĐĂƚĞƐĂŶĂƉƉĂƌĞŶƚŶĞŐĂƟǀĞŶĞƚ͞ĐƵƌƌĞŶƚ͟ĂƐƐĞƚƉŽƐŝƟŽŶ͘,ŽǁĞǀĞƌ͕ĂƐƐƚĂƚĞĚŝŶƚŚĞƉƌĞĐĞĚŝŶŐ ƉĂƌĂŐƌĂƉŚ͕ŵŝƐŵĂƚĐŚĞĚƉŽƐŝƟŽŶƐĂƌĞĞƐƚĂďůŝƐŚĞĚĂŶĚŵĂŶĂŐĞĚƚŽĂĐŚŝĞǀĞƉƌŽĮƚŽƉƉŽƌƚƵŶŝƟĞƐƚŚĂƚĂƌŝƐĞĨƌŽŵƚŚĞŵ͕ƉĂƌƟĐƵůĂƌůLJŝŶ ĂŶŽƌŵĂůLJŝĞůĚĐƵƌǀĞĞŶǀŝƌŽŶŵĞŶƚ͘ĐĐŽƌĚŝŶŐůLJ͕ƚŚŝƐŵŝƐŵĂƚĐŚĞĚŵĂƚƵƌŝƚLJƉŽƐŝƟŽŶŝƐĐŽŶƐŝĚĞƌĞĚŵĂŶĂŐĞĂďůĞďLJƚŚĞĂŶŬĂŶĚƚŚĞ 'ƌŽƵƉ͕ĂŶĚĚŽĞƐŶŽƚŝŵƉĂŝƌƚŚĞĂďŝůŝƚLJŽĨƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉƚŽŵĞĞƚŝƚƐĮŶĂŶĐŝĂůŽďůŝŐĂƟŽŶƐĂƐƚŚĞLJĨĂůůĚƵĞ͘dŚĞŝƌĞĐƚŽƌƐ ĂƌĞĂůƐŽŽĨƚŚĞǀŝĞǁƚŚĂƚƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉŝƐĂďůĞƚŽŵĞĞƚŝƚƐĮŶĂŶĐŝĂůŽďůŝŐĂƟŽŶƐĂƐƚŚĞLJĨĂůůĚƵĞĨŽƌƚŚĞĨŽůůŽǁŝŶŐĂĚĚŝƟŽŶĂů ƌĞĂƐŽŶƐ͗ BSP Annual Report 2014 79 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 34. LIQUIDITY RISK FRQWLQXHG ͻ dŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉĐŽŵƉůŝĞƐǁŝƚŚƚŚĞDŝŶŝŵƵŵ>ŝƋƵŝĚƐƐĞƚZĂƟŽ;͞D>Z͟ͿĂŶĚĂƐŚZĞƐĞƌǀĞZĞƋƵŝƌĞŵĞŶƚ;͞ZZ͟ͿƐĞƚ ďLJƚŚĞƌĞŐƵůĂƚŽƌLJĂƵƚŚŽƌŝƚLJ͕ƚŚĞĂŶŬŽĨWĂƉƵĂEĞǁ'ƵŝŶĞĂ;͞WE'͟Ϳ͘dŚĞD>ZŝƐƚŚĞŵŝŶŝŵƵŵƌĂƟŽŽĨůŝƋƵŝĚĂƐƐĞƚƐƚŽƚŽƚĂů ĐƵƐƚŽŵĞƌĚĞƉŽƐŝƚƐĐŽŶƐŝĚĞƌĞĚďLJƚŚĞƌĞŐƵůĂƚŽƌĂƐƐƵĸĐŝĞŶƚƚŽƐƵƉƉŽƌƚĞdžĐĞƉƟŽŶĂůůŝƋƵŝĚĂƟŽŶďLJĚĞƉŽƐŝƚŽƌƐ͕ŽĨƚŚĞŝƌĨƵŶĚƐ͘ dŚĞƌĞƋƵŝƌĞŵĞŶƚƚŽŚŽůĚĂŵŝŶŝŵƵŵŽĨϮϱйŽĨƚŚĞǀĂůƵĞŽĨƚŽƚĂůĐƵƐƚŽŵĞƌĚĞƉŽƐŝƚƐŝŶƚŚĞĨŽƌŵŽĨƉƌĞƐĐƌŝďĞĚůŝƋƵŝĚĂƐƐĞƚƐ ǁĂƐƌĞĚƵĐĞĚƚŽnjĞƌŽďLJƚŚĞWE'ŝŶ^ĞƉƚĞŵďĞƌϮϬϭϬ͘ƐĂƚϯϭĞĐĞŵďĞƌϮϬϭϰ͕ƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉ͛Ɛ>ŝƋƵŝĚƐƐĞƚZĂƟŽ ǁĂƐĂƉƉƌŽdžŝŵĂƚĞůLJϯϰ͘ϯϰй;ϮϬϭϯ͗ϰϭ͘ϳϴйͿ͘ ͻ dŚĞZZƐƉĞĐŝĮĞƐƚŚĂƚĂďĂŶŬŵƵƐƚŚŽůĚĂŶĂŵŽƵŶƚĞƋƵĂůƚŽϭϬйŽĨŝƚƐƚŽƚĂůĐƵƐƚŽŵĞƌĚĞƉŽƐŝƚƐŝŶƚŚĞĨŽƌŵŽĨĐĂƐŚŝŶĂŶ ĂĐĐŽƵŶƚŵĂŝŶƚĂŝŶĞĚĂƚƚŚĞWE'͘dŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉĐŽŵƉůŝĞƐǁŝƚŚƚŚŝƐĚĂŝůLJƌĞƋƵŝƌĞŵĞŶƚŽŶĂŶŽŶŐŽŝŶŐďĂƐŝƐ͘dŚĞ ďĂůĂŶĐĞŽĨƚŚĞZZĂĐĐŽƵŶƚŝƐƐŚŽǁŶŝŶEŽƚĞϭϬ͕ĂƐŚĂŶĚĂůĂŶĐĞƐǁŝƚŚĞŶƚƌĂůĂŶŬ͕ĂŶĚEŽƚĞϮϴ͕ĂƐŚΘĂƐŚ ƋƵŝǀĂůĞŶƚƐ͘ DĂƚƵƌŝƚLJŽĨĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐ ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<ΖϬϬϬ As at 31 December 2014 3-12 Over 5 Up to 1 month 1-3 months months 1-5 years years Total Assets ĂƐŚĂŶĚďĂůĂŶĐĞƐǁŝƚŚĞŶƚƌĂůĂŶŬ Ϯ͕ϲϬϳ͕Ϭϱϭ Ͳ Ͳ Ͳ Ͳ Ϯ͕ϲϬϳ͕Ϭϱϭ dƌĞĂƐƵƌLJΘĞŶƚƌĂůĂŶŬďŝůůƐ ϵϴϱ͕ϰϵϵ ϯϳϬ͕ϮϬϯ ϴϮϭ͕ϴϳϮ ϱ͕ϲϲϯ Ͳ Ϯ͕ϭϴϯ͕Ϯϯϳ ŵŽƵŶƚƐĚƵĞĨƌŽŵŽƚŚĞƌďĂŶŬƐ Ϯϳϳ͕ϰϰϭ ϭϬϯ͕ϮϭϮ Ͳ Ͳ Ͳ ϯϴϬ͕ϲϱϯ >ŽĂŶƐ͕ĂĚǀĂŶĐĞƐΘŽƚŚĞƌƌĞĐĞŝǀĂďůĞƐ ĨƌŽŵĐƵƐƚŽŵĞƌƐ ϭ͕ϴϭϵ͕ϯϬϯ ϵϬ͕ϭϲϳ ϰϴϯ͕Ϭϳϱ Ϯ͕ϭϯϴ͕ϵϲϲ Ϯ͕Ϯϴϱ͕ϴϴϱ ϲ͕ϴϭϳ͕ϯϵϲ KƚŚĞƌĮŶĂŶĐŝĂůĂƐƐĞƚƐ ϲϯ͕ϳϭϰ ϰ͕ϵϭϰ ϯϬϯ͕ϰϳϲ ϭ͕ϬϬϰ͕Ϭϲϭ ϵϴϱ͕ϰϴϰ Ϯ͕ϯϲϭ͕ϲϰϵ Total assets 5,753,008 568,496 1,608,423 3,148,690 3,271,369 14,349,986 >ŝĂďŝůŝƟĞƐ ŵŽƵŶƚƐĚƵĞƚŽŽƚŚĞƌďĂŶŬƐ Ϯϱϵ͕ϴϵϮ Ͳ Ͳ Ͳ Ͳ Ϯϱϵ͕ϴϵϮ ƵƐƚŽŵĞƌĞƉŽƐŝƚƐ ϭϭ͕ϲϮϵ͕ϯϴϱ Ϯϰϳ͕ϮϰϮ ϳϬϵ͕ϰϮϭ ϭϮϮ͕ϭϮϱ ϮϭϬ ϭϮ͕ϳϬϴ͕ϯϴϯ KƚŚĞƌůŝĂďŝůŝƟĞƐ ϴϭϲ͕ϵϰϳ Ͳ Ͳ Ͳ ϳϱ͕ϱϮϱ ϴϵϮ͕ϰϳϮ KƚŚĞƌƉƌŽǀŝƐŝŽŶƐ ϭϱϯ͕ϰϭϵ ϲϮ͕ϱϰϳ Ͳ Ͳ Ͳ Ϯϭϱ͕ϵϲϲ dŽƚĂůůŝĂďŝůŝƟĞƐ 12,859,643 309,789 709,421 122,125 75,735 14,076,713 Net liquidity gap (7,106,635) 258,707 899,002 3,026,565 3,195,634 273,273 3-12 Over 5 As at 31 December 2013 Up to 1 month 1-3 months months 1-5 years years Total dŽƚĂůĂƐƐĞƚƐ ϱ͕ϭϭϳ͕ϴϬϮ ϭ͕ϱϬϴ͕ϰϵϱ Ϯ͕ϰϯϲ͕ϰϮϬ Ϯ͕ϯϱϮ͕ϴϬϵ Ϯ͕ϴϮϭ͕Ϭϲϱ ϭϰ͕Ϯϯϲ͕ϱϵϭ dŽƚĂůůŝĂďŝůŝƟĞƐ ϭϮ͕ϯϮϱ͕Ϯϲϴ ϰϱϳ͕ϳϭϴ ϯϲϰ͕ϭϲϵ ϴϭ͕ϰϰϭ ϵϭϯ͕ϳϲϰ ϭϰ͕ϭϰϮ͕ϯϲϬ Net liquidity gap (7,207,466) 1,050,777 2,072,251 2,271,368 1,907,301 94,231 80 BSP Annual Report 2014 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 35. OPERATIONAL RISK KƉĞƌĂƟŽŶĂůƌŝƐŬŝƐƚŚĞƉŽƚĞŶƟĂůĞdžƉŽƐƵƌĞƚŽƵŶĞdžƉĞĐƚĞĚĮŶĂŶĐŝĂůŽƌŶŽŶͲĮŶĂŶĐŝĂůůŽƐƐĞƐĂƌŝƐŝŶŐĨƌŽŵƚŚĞǁĂLJŝŶǁŚŝĐŚƚŚĞĂŶŬ ĂŶĚƚŚĞ'ƌŽƵƉĐŽŶĚƵĐƚƐŝƚƐďƵƐŝŶĞƐƐ͘ džĂŵƉůĞƐŽĨŽƉĞƌĂƟŽŶĂůƌŝƐŬƐŝŶĐůƵĚĞĞŵƉůŽLJĞĞĞƌƌŽƌƐ͕ƐLJƐƚĞŵƐĨĂŝůƵƌĞƐ͕ĮƌĞ͕ŇŽŽĚƐ͕Žƌ ƐŝŵŝůĂƌ ůŽƐƐĞƐ ƚŽ ƉŚLJƐŝĐĂů ĂƐƐĞƚƐ͕ ĨƌĂƵĚ͕ Žƌ ĐƌŝŵŝŶĂů ĂĐƟǀŝƚLJ͘ KƉĞƌĂƟŽŶĂů ƌŝƐŬ ŝƐ ŵĂŶĂŐĞĚ ƚŚƌŽƵŐŚ ĨŽƌŵĂů ƉŽůŝĐŝĞƐ͕ ĚŽĐƵŵĞŶƚĞĚ ƉƌŽĐĞĚƵƌĞƐ͕ďƵƐŝŶĞƐƐƉƌĂĐƟĐĞƐĂŶĚĐŽŵƉůŝĂŶĐĞŵŽŶŝƚŽƌŝŶŐ͘ ŶŽƉĞƌĂƟŽŶĂůƌŝƐŬŵĂŶĂŐĞŵĞŶƚĨƵŶĐƟŽŶŝƐƌĞƐƉŽŶƐŝďůĞĨŽƌƚŚĞŵĂŝŶƚĞŶĂŶĐĞŽĨƚŚĞƐĞƉŽůŝĐŝĞƐ͕ƉƌŽĐĞĚƵƌĞƐƉƌĂĐƟĐĞƐĂŶĚŵŽŶŝƚŽƌŝŶŐ ƚŚĞ ŽƌŐĂŶŝƐĂƟŽŶ͛Ɛ ĐŽŵƉůŝĂŶĐĞ ǁŝƚŚ ƚŚĞŵ͘ dŚĞ KƉĞƌĂƟŽŶĂů ZŝƐŬ ŽŵŵŝƩĞĞ ĐŽŽƌĚŝŶĂƚĞƐ ƚŚĞ ŵĂŶĂŐĞŵĞŶƚ ƉƌŽĐĞƐƐ ĂĐƌŽƐƐ ƚŚĞ ŽƌŐĂŶŝƐĂƟŽŶ͘ ŶŝŶĚĞƉĞŶĚĞŶƚŝŶƚĞƌŶĂůĂƵĚŝƚĨƵŶĐƟŽŶĂůƐŽĐŽŶĚƵĐƚƐƌĞŐƵůĂƌƌĞǀŝĞǁƐƚŽŵŽŶŝƚŽƌĐŽŵƉůŝĂŶĐĞǁŝƚŚĂƉƉƌŽǀĞĚWE'ƐƚĂŶĚĂƌĚƐĂŶĚ ĞdžĂŵŝŶĞƐƚŚĞŐĞŶĞƌĂůƐƚĂŶĚĂƌĚŽĨĐŽŶƚƌŽů͘ dŚĞKƉĞƌĂƟŽŶĂůZŝƐŬŽŵŵŝƩĞĞĂŶĚƚŚĞŝŶƚĞƌŶĂůĂƵĚŝƚĨƵŶĐƟŽŶŵĂŶĚĂƚŽƌŝůLJƌĞƉŽƌƚƚŽƚŚĞŽĂƌĚƵĚŝƚ͕ZŝƐŬĂŶĚŽŵƉůŝĂŶĐĞ ŽŵŵŝƩĞĞ͘ 36. FOREIGN EXCHANGE RISK &ŽƌĞŝŐŶĞdžĐŚĂŶŐĞƌŝƐŬŝƐƚŚĞƌŝƐŬƚŽĞĂƌŶŝŶŐƐĐĂƵƐĞĚďLJĂĐŚĂŶŐĞŝŶĨŽƌĞŝŐŶĞdžĐŚĂŶŐĞƌĂƚĞƐŽŶŽƉĞŶĐƵƌƌĞŶĐLJƉŽƐŝƟŽŶƐ͘dŚĞŽďũĞĐƟǀĞ ŽĨĨŽƌĞŝŐŶĞdžĐŚĂŶŐĞƌŝƐŬŵĂŶĂŐĞŵĞŶƚǁŝƚŚŝŶƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉŝƐƚŽŵŝŶŝŵŝƐĞƚŚĞŝŵƉĂĐƚŽŶĞĂƌŶŝŶŐƐŽĨĂŶLJƐƵĐŚŵŽǀĞŵĞŶƚ͘ dŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉĂĐĐĞƉƚƐĨŽƌĞŝŐŶĐƵƌƌĞŶĐLJĚĞŶŽŵŝŶĂƚĞĚƚƌĂŶƐĂĐƟŽŶƐĂŶĚƚŚĞƌĞĨŽƌĞŚĂƐĞdžƉŽƐƵƌĞƚŽŵŽǀĞŵĞŶƚƐŝŶĨŽƌĞŝŐŶ ĐƵƌƌĞŶĐLJ͘ dŚĞ ĂŶŬ ĂŶĚ ƚŚĞ 'ƌŽƵƉ ŚĂƐ Ă ƉŽůŝĐLJ ƚŽ ŽīƐĞƚ ƚŚĞƐĞ ƚƌĂŶƐĂĐƟŽŶƐ ƚŽ ŵŝŶŝŵŝƐĞ ĚĂŝůLJ ĞdžƉŽƐƵƌĞ͘ Ɛ ĨŽƌĞŝŐŶ ĞdžĐŚĂŶŐĞ ĐŽŶƚƌĂĐƚƐŐĞŶĞƌĂůůLJĐŽŶƐŝƐƚŽĨŽīƐĞƫŶŐĐŽŵŵŝƚŵĞŶƚƐ͕ƚŚĞLJŝŶǀŽůǀĞŽŶůLJůŝŵŝƚĞĚĨŽƌĞŝŐŶĞdžĐŚĂŶŐĞƌŝƐŬƚŽƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉ ĂŶĚŵĂƚĞƌŝĂůůŽƐƐŝƐŶŽƚĞŶǀŝƐĂŐĞĚ͘ ƵƌƌĞŶĐLJĐŽŶĐĞŶƚƌĂƟŽŶŽĨĂƐƐĞƚƐ͕ůŝĂďŝůŝƟĞƐ͕ĂŶĚŽīͲďĂůĂŶĐĞƐŚĞĞƚŝƚĞŵƐ͘ ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<ΖϬϬϬ As at 31 December 2014 USD AUD EURO PGK Other Total Assets ĂƐŚĂŶĚďĂůĂŶĐĞƐǁŝƚŚĞŶƚƌĂůĂŶŬ ϯ͕Ϭϱϵ ϭ͕ϴϳϵ ϭϯϵ ϭ͕ϳϲϵ͕ϭϬϬ ϴϯϮ͕ϴϳϰ Ϯ͕ϲϬϳ͕Ϭϱϭ dƌĞĂƐƵƌLJΘĞŶƚƌĂůĂŶŬďŝůůƐ Ͳ Ͳ Ͳ Ϯ͕ϬϮϵ͕ϳϵϲ ϭϱϯ͕ϰϰϭ Ϯ͕ϭϴϯ͕Ϯϯϳ ŵŽƵŶƚƐĚƵĞĨƌŽŵŽƚŚĞƌďĂŶŬƐ ϰϵ͕ϯϭϬ Ϯϰϰ͕ϲϰϮ ϯ͕ϬϬϬ ϲϮ͕ϭϱϬ Ϯϭ͕ϱϱϭ ϯϴϬ͕ϲϱϯ >ŽĂŶƐ͕ĂĚǀĂŶĐĞƐΘŽƚŚĞƌƌĞĐĞŝǀĂďůĞƐ ĨƌŽŵĐƵƐƚŽŵĞƌƐ ϭϮϵ͕Ϯϲϱ ϳ͕ϮϮϭ Ͳ ϱ͕ϭϯϰ͕ϯϰϲ ϭ͕ϱϰϲ͕ϱϲϰ ϲ͕ϴϭϳ͕ϯϵϲ KƚŚĞƌĮŶĂŶĐŝĂůĂƐƐĞƚƐ ϮϬ͕ϴϭϬ ϮϬ͕ϱϭϰ Ͳ Ϯ͕ϭϴϴ͕Ϭϲϳ ϭϯϮ͕Ϯϱϴ Ϯ͕ϯϲϭ͕ϲϰϵ KƚŚĞƌĂƐƐĞƚƐ Ͳ Ͳ Ͳ ϭ͕ϯϳϮ͕ϴϰϮ ϭϱϰ͕Ϭϳϴ ϭ͕ϱϮϲ͕ϵϮϬ Total assets 202,444 274,256 3,139 12,556,301 2,840,766 15,876,906 >ŝĂďŝůŝƟĞƐ ŵŽƵŶƚƐĚƵĞƚŽŽƚŚĞƌďĂŶŬƐ ;ϯϵ͕ϲϵϵͿ ;ϯ͕ϲϯϯͿ Ͳ ;ϯϯϬͿ ;Ϯϭϲ͕ϮϯϬͿ ;Ϯϱϵ͕ϴϵϮͿ ƵƐƚŽŵĞƌƐĞƉŽƐŝƚ ;ϮϰϮ͕ϬϳϱͿ ;Ϯϰϴ͕ϵϯϲͿ Ͳ ;ϭϬ͕Ϯϴϴ͕ϯϭϱͿ ;ϭ͕ϵϮϵ͕ϬϱϳͿ ;ϭϮ͕ϳϬϴ͕ϯϴϯͿ KƚŚĞƌůŝĂďŝůŝƟĞƐ Ͳ Ͳ Ͳ ;ϱϴϬ͕ϳϭϮͿ ;ϱϮϳ͕ϳϮϲͿ ;ϭ͕ϭϬϴ͕ϰϯϴͿ dŽƚĂůůŝĂďŝůŝƟĞƐ (281,774) (252,569) - (10,869,357) (2,673,013) (14,076,713) EĞƚŽŶͲďĂůĂŶĐĞƐŚĞĞƚƉŽƐŝƟŽŶ (79,330) 21,687 3,139 1,686,944 167,753 1,800,193 KīͲďĂůĂŶĐĞƐŚĞĞƚŶĞƚ ŶŽƟŽŶĂůƉŽƐŝƟŽŶ 9,977 860 (2,954) - (8,619) (736) Credit commitments - - - 1,346,329 - 1,346,329 BSP Annual Report 2014 81 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 36. FOREIGN EXCHANGE RISK FRQWLQXHG ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<ΖϬϬϬ 31 December 2013 USD AUD EURO PGK Other Total dŽƚĂůƐƐĞƚƐ ϵϭϱ͕ϳϱϵ ϯϱϭ͕ϮϬϲ ϮϬ͕ϲϭϲ ϭϭ͕ϰϵϬ͕ϲϯϯ Ϯ͕ϵϴϯ͕ϮϬϲ ϭϱ͕ϳϲϭ͕ϰϮϬ dŽƚĂů>ŝĂďŝůŝƟĞƐ ;ϳϯϲ͕ϮϯϬͿ ;Ϯϴϵ͕ϮϳϵͿ ;ϭϯͿ ;ϭϬ͕ϯϳϯ͕ϲϱϯͿ ;Ϯ͕ϳϰϯ͕ϭϴϱͿ ;ϭϰ͕ϭϰϮ͕ϯϲϬͿ EĞƚŽŶͲďĂůĂŶĐĞƐŚĞĞƚƉŽƐŝƟŽŶ 179,529 61,927 20,603 1,116,980 240,021 1,619,060 KīͲďĂůĂŶĐĞƐŚĞĞƚŶĞƚ ŶŽƟŽŶĂůƉŽƐŝƟŽŶ (283,238) (59,576) (20,535) 938,667 187,067 762,385 Credit commitments - - - 1,512,002 - 1,512,002 dŚĞĨŽůůŽǁŝŶŐƚĂďůĞƉƌĞƐĞŶƚƐƐĞŶƐŝƟǀŝƟĞƐŽĨƉƌŽĮƚŽƌůŽƐƐĂŶĚĞƋƵŝƚLJƚŽƉŽƐƐŝďůĞĐŚĂŶŐĞƐŝŶĞdžĐŚĂŶŐĞƌĂƚĞƐĂƉƉůŝĞĚĂƚƚŚĞĞŶĚŽĨ ƚŚĞƌĞƉŽƌƟŶŐƉĞƌŝŽĚ͕ƌĞůĂƟǀĞƚŽƚŚĞĨƵŶĐƟŽŶĂůĐƵƌƌĞŶĐLJŽĨƚŚĞƌĞƐƉĞĐƟǀĞ'ƌŽƵƉĞŶƟƟĞƐ͕ǁŝƚŚĂůůŽƚŚĞƌǀĂƌŝĂďůĞƐŚĞůĚĐŽŶƐƚĂŶƚ͗ ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<ΖϬϬϬ At 31 December 2014 At 31 December 2013 /ŵƉĂĐƚŽŶƉƌŽĮƚ Impact on equity /ŵƉĂĐƚŽŶƉƌŽĮƚ Impact on or loss or loss equity h^ƐƚƌĞŶŐƚŚĞŶŝŶŐďLJϭй;ϮϬϭϯʹϭйͿ ϵϬϯ ϵϬϯ ϭ͕ϭϮϳ ϭ͕Ϭϱϳ h^ĚŽůůĂƌǁĞĂŬĞŶŝŶŐďLJϭй;ϮϬϭϯʹϭйͿ ;ϴϴϱͿ ;ϴϴϱͿ ;ϭ͕ϭϬϰͿ ;ϭ͕ϭϬϰͿ hƐƚƌĞŶŐƚŚĞŶŝŶŐďLJϭй;ϮϬϭϯʹϭйͿ ;ϮϱͿ ;ϮϱͿ ;ϯϮͿ ;ϯϮͿ hĚŽůůĂƌǁĞĂŬĞŶŝŶŐďLJϭй;ϮϬϭϯʹϭйͿ Ϯϰ Ϯϰ ϯϭ ϯϭ 37. INTEREST RATE RISK /ŶƚĞƌĞƐƚƌĂƚĞƌŝƐŬŝŶƚŚĞďĂůĂŶĐĞƐŚĞĞƚĂƌŝƐĞƐĨƌŽŵƚŚĞƉŽƚĞŶƟĂůĨŽƌĂĐŚĂŶŐĞŝŶŝŶƚĞƌĞƐƚƌĂƚĞƚŽŚĂǀĞĂŶĂĚǀĞƌƐĞĞīĞĐƚŽŶƚŚĞƌĞǀĞŶƵĞĞĂƌŶŝŶŐƐŝŶ ƚŚĞĐƵƌƌĞŶƚƌĞƉŽƌƟŶŐƉĞƌŝŽĚĂŶĚĨƵƚƵƌĞLJĞĂƌƐ͘ƐŝŶƚĞƌĞƐƚƌĂƚĞƐĂŶĚLJŝĞůĚĐƵƌǀĞƐĐŚĂŶŐĞŽǀĞƌƟŵĞƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉŵĂLJďĞĞdžƉŽƐĞĚƚŽĂ ůŽƐƐŝŶĞĂƌŶŝŶŐƐĚƵĞƚŽƚŚĞĞīĞĐƚƐŽĨŝŶƚĞƌĞƐƚƌĂƚĞƐŽŶƚŚĞƐƚƌƵĐƚƵƌĞŽĨƚŚĞďĂůĂŶĐĞƐŚĞĞƚ͘^ĞŶƐŝƟǀŝƚLJƚŽŝŶƚĞƌĞƐƚƌĂƚĞƐĂƌŝƐĞƐĨƌŽŵŵŝƐŵĂƚĐŚĞƐŝŶ ƚŚĞƌĞͲƉƌŝĐŝŶŐĚĂƚĞƐ͕ĐĂƐŚŇŽǁƐĂŶĚŽƚŚĞƌĐŚĂƌĂĐƚĞƌŝƐƟĐƐŽĨƚŚĞĂƐƐĞƚƐĂŶĚƚŚĞŝƌĐŽƌƌĞƐƉŽŶĚŝŶŐůŝĂďŝůŝƚLJĨƵŶĚŝŶŐ͘dŚĞƐĞŵŝƐŵĂƚĐŚĞƐĂƌĞĂĐƟǀĞůLJ ŵĂŶĂŐĞĚĂƐƉĂƌƚŽĨƚŚĞŽǀĞƌĂůůŝŶƚĞƌĞƐƚƌĂƚĞƌŝƐŬŵĂŶĂŐĞŵĞŶƚƉƌŽĐĞƐƐŐŽǀĞƌŶĞĚďLJƚŚĞƐƐĞƚƐĂŶĚ>ŝĂďŝůŝƟĞƐŽŵŵŝƩĞĞ;>KͿ͕ǁŚŝĐŚŵĞĞƚƐ ƌĞŐƵůĂƌůLJƚŽƌĞǀŝĞǁƚŚĞĞīĞĐƚƐŽĨŇƵĐƚƵĂƟŽŶƐŝŶƚŚĞƉƌĞǀĂŝůŝŶŐůĞǀĞůƐŽĨŵĂƌŬĞƚŝŶƚĞƌĞƐƚƌĂƚĞƐŽŶƚŚĞĮŶĂŶĐŝĂůƉŽƐŝƟŽŶĂŶĚĐĂƐŚŇŽǁƐŽĨƚŚĞĂŶŬ ĂŶĚƚŚĞ'ƌŽƵƉ͘dŚĞŽďũĞĐƟǀĞŽĨŝŶƚĞƌĞƐƚƌĂƚĞƌŝƐŬĐŽŶƚƌŽůŝƐƚŽŵŝŶŝŵŝƐĞƚŚĞƐĞŇƵĐƚƵĂƟŽŶƐŝŶǀĂůƵĞĂŶĚŶĞƚŝŶƚĞƌĞƐƚŝŶĐŽŵĞŽǀĞƌƟŵĞ͕ƉƌŽǀŝĚŝŶŐ ƐĞĐƵƌĞĂŶĚƐƚĂďůĞƐƵƐƚĂŝŶĂďůĞŶĞƚŝŶƚĞƌĞƐƚĞĂƌŶŝŶŐƐŝŶƚŚĞůŽŶŐƚĞƌŵ͘dŚĞƚĂďůĞďĞůŽǁŝůůƵƐƚƌĂƚĞƐƚŚĞŝŶƚĞƌĞƐƚƐĞŶƐŝƟǀŝƚLJŽĨĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐĂƚ ƚŚĞďĂůĂŶĐĞĚĂƚĞ͘ 'ŝǀĞŶƚŚĞƉƌŽĮůĞŽĨĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐĂƐĂƚϯϭĞĐĞŵďĞƌϮϬϭϰĂŶĚƉƌĞǀĂŝůŝŶŐƌĂƚĞƐŽĨŝŶƚĞƌĞƐƚ͕ĂϭйŝŶĐƌĞĂƐĞŝŶŵĂƌŬĞƚƐƌĂƚĞƐǁŝůůƌĞƐƵůƚŝŶĂ <ϮϬ͘ϬŵŝůůŝŽŶŝŶĐƌĞĂƐĞŝŶŶĞƚŝŶƚĞƌĞƐƚŝŶĐŽŵĞ͕ǁŚŝůƐƚĂϭйĚĞĐƌĞĂƐĞŝŶƌĂƚĞƐǁŝůůƌĞƐƵůƚŝŶĂ<ϯϲ͘ϲŵŝůůŝŽŶĚĞĐƌĞĂƐĞŝŶŶĞƚŝŶƚĞƌĞƐƚŝŶĐŽŵĞ͘ 82 BSP Annual Report 2014 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 37. INTEREST RATE RISK FRQWLQXHG /ŶƚĞƌĞƐƚƐĞŶƐŝƟǀŝƚLJŽĨĂƐƐĞƚƐ͕ůŝĂďŝůŝƟĞƐĂŶĚŽīďĂůĂŶĐĞƐŚĞĞƚŝƚĞŵƐʹƌĞͲƉƌŝĐŝŶŐĂŶĂůLJƐŝƐ ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<ΖϬϬϬ As at 31 December 2014 Up to 1 Non-interest month 1-3 months 3-12 months 1-5 years Over 5 years bearing Assets ĂƐŚΘĞŶƚƌĂůĂŶŬĂƐƐĞƚƐ Ͳ Ͳ Ͳ Ͳ Ͳ ϭ͕ϯϱϱ͕ϰϲϵ dƌĞĂƐƵƌLJΘĞŶƚƌĂůĂŶŬďŝůůƐ ϵϴϱ͕ϰϵϵ ϯϳϬ͕ϮϬϯ ϴϮϭ͕ϴϳϮ ϱ͕ϲϲϯ Ͳ Ͳ ŵŽƵŶƚƐĚƵĞĨƌŽŵŽƚŚĞƌďĂŶŬƐ ϯϮϬ͕ϵϵϯ Ϯϵ͕ϯϲϱ ϯϬ͕Ϯϵϱ Ͳ Ͳ Ͳ ^ƚĂƚƵƚŽƌLJĚĞƉŽƐŝƚƐͲĞŶƚƌĂůĂŶŬ Ͳ Ͳ Ͳ Ͳ Ͳ ϭ͕Ϯϱϭ͕ϱϴϮ >ŽĂŶƐ͕ĂĚǀĂŶĐĞƐΘŽƚŚĞƌ ƌĞĐĞŝǀĂďůĞƐĨƌŽŵĐƵƐƚŽŵĞƌƐ ϲ͕ϬϮϬ͕Ϭϲϳ ϭϯϴ͕ϭϲϳ ϯϯϴ͕ϰϬϲ ϯϭϳ͕ϵϭϮ Ͳ Ϯ͕ϴϰϰ /ŶǀĞƐƚŵĞŶƚƐ Ͳ Ͳ ϯϮϯ͕Ϯϭϯ ϭ͕ϭϮϲ͕ϭϯϭ ϭ͕ϬϯϬ͕ϲϵϰ Ͳ KƚŚĞƌĂƐƐĞƚƐ ϭ͕ϲϴϰ ϭ͕ϲϴϰ ϳ͕ϱϳϴ ϭϮ͕ϭϯϵ Ͳ ϭ͕ϯϴϱ͕ϰϰϲ Total assets 7,328,243 539,419 1,521,364 1,461,845 1,030,694 3,995,341 >ŝĂďŝůŝƟĞƐ ŵŽƵŶƚƐĚƵĞƚŽŽƚŚĞƌďĂŶŬƐ Ϯϱϵ͕ϴϵϮ Ͳ Ͳ Ͳ Ͳ Ͳ ƵƐƚŽŵĞƌƐĚĞƉŽƐŝƚƐ ϲ͕ϵϴϴ͕ϳϱϭ ϰϵϬ͕ϲϮϯ ϳϱϭ͕ϱϰϲ ϭϮϳ͕ϰϲϭ ϮϭϬ ϰ͕ϯϰϵ͕ϳϵϮ KƚŚĞƌůŝĂďŝůŝƟĞƐ Ͳ Ͳ Ͳ Ͳ ϳϱ͕ϱϮϱ ϴϭϲ͕ϵϰϳ KƚŚĞƌƉƌŽǀŝƐŝŽŶƐ Ͳ Ͳ Ͳ Ͳ Ͳ Ϯϭϱ͕ϵϲϲ dŽƚĂůůŝĂďŝůŝƟĞƐ 7,248,643 490,623 751,546 127,461 75,735 5,382,705 /ŶƚĞƌĞƐƚƐĞŶƐŝƟǀŝƚLJŐĂƉ 79,600 48,796 769,818 1,334,384 954,959 (1,387,364) /ŶƚĞƌĞƐƚƐĞŶƐŝƟǀŝƚLJŽĨĂƐƐĞƚƐ͕ůŝĂďŝůŝƟĞƐĂŶĚŽīďĂůĂŶĐĞƐŚĞĞƚŝƚĞŵƐʹƌĞͲƉƌŝĐŝŶŐĂŶĂůLJƐŝƐ ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<ΖϬϬϬ As at 31 December 2013 Assets ĂƐŚĂŶĚĞŶƚƌĂůĂŶŬĂƐƐĞƚƐ Ͳ Ͳ Ͳ Ͳ Ͳ ϵϲϰ͕ϮϮϬ dƌĞĂƐƵƌLJΘĞŶƚƌĂůĂŶŬŝůůƐ Ϯ͕ϰϱϯ͕ϭϳϱ ϴϮϮ͕ϲϮϮ ϳ͕ϲϯϱ Ͳ Ͳ Ͳ ŵŽƵŶƚƐĚƵĞĨƌŽŵŽƚŚĞƌďĂŶŬƐ ϭ͕ϯϱϬ͕ϱϵϬ ϵϰ͕ϲϬϵ Ͳ Ͳ Ͳ Ͳ ^ƚĂƚƵƚŽƌLJĚĞƉŽƐŝƚƐʹĞŶƚƌĂůĂŶŬ ϭ͕Ϭϲϲ͕ϱϴϬ >ŽĂŶƐ͕ĂĚǀĂŶĐĞƐΘŽƚŚĞƌ ƌĞĐĞŝǀĂďůĞƐĨƌŽŵĐƵƐƚŽŵĞƌƐ ϰ͕ϱϵϱ͕ϯϬϬ Ϯϰϴ͕ϯϳϱ ϯϳϲ͕Ϭϰϲ ϴϭ͕ϱϰϴ ϯϬϭ ϰ͕ϳϵϮ /ŶǀĞƐƚŵĞŶƚƐ ϰϭ͕ϳϭϯ ϲϭ͕ϲϰϴ ϰϱϬ͕ϭϰϱ ϱϭϴ͕ϴϯϯ ϭ͕Ϯϭϱ͕ϮϴϬ Ͳ KƚŚĞƌĂƐƐĞƚƐ ϱ͕ϴϵϰ ϱ͕ϬϱϮ ϮϬ͕ϮϬϳ ϱ͕ϯϲϯ Ͳ ϭ͕ϯϳϭ͕ϰϵϮ Total assets 8,446,672 1,232,306 854,033 605,744 1,215,581 3,407,084 >ŝĂďŝůŝƟĞƐ ŵŽƵŶƚƐĚƵĞƚŽŽƚŚĞƌďĂŶŬƐ ϳϴϲ͕Ϭϯϱ Ͳ Ͳ Ͳ Ͳ Ͳ ƵƐƚŽŵĞƌƐĚĞƉŽƐŝƚƐ ϲ͕ϲϳϰ͕ϱϰϭ Ϯϵϰ͕ϴϱϱ ϭϱϴ͕ϬϰϮ ϭϲ͕ϯϵϲ Ϯϲ ϱ͕Ϭϱϳ͕ϭϯϵ KƚŚĞƌůŝĂďŝůŝƟĞƐ Ͳ Ͳ Ͳ Ͳ ϳϱ͕ϱϮϱ ϵϯϲ͕ϯϲϵ KƚŚĞƌWƌŽǀŝƐŝŽŶƐ Ͳ Ͳ Ͳ Ͳ Ͳ ϭϰϯ͕ϰϯϮ dŽƚĂůůŝĂďŝůŝƟĞƐ 7,460,576 294,855 158,042 16,396 75,551 6,136,940 /ŶƚĞƌĞƐƚƐĞŶƐŝƟǀŝƚLJŐĂƉ 986,096 937,451 695,991 589,348 1,140,030 (2,729,856) BSP Annual Report 2014 83 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 38. FAIR VALUES OF FINANCIAL ASSETS & LIABILITIES dŚĞƌĞŝƐŶŽŵĂƚĞƌŝĂůĚŝīĞƌĞŶĐĞďĞƚǁĞĞŶƚŚĞĨĂŝƌǀĂůƵĞĂŶĚĐĂƌƌLJŝŶŐǀĂůƵĞŽĨƚŚĞĮŶĂŶĐŝĂůĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐŽĨĂŶŬŽĨ^ŽƵƚŚ WĂĐŝĮĐ>ŝŵŝƚĞĚĂŶĚƚŚĞ'ƌŽƵƉ͘dŚĞĨĂŝƌǀĂůƵĞŚŝĞƌĂƌĐŚLJŽĨƚŚĞĮŶĂŶĐŝĂůĂƐƐĞƚƐĐĂƌƌĞĚĂƚĨĂŝƌǀĂůƵĞƚŚƌŽƵŐŚƚŚĞƉƌŽĮƚĂŶĚůŽƐƐ͗ ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<ΖϬϬϬ 2014 Level 1 Level 2 Level 3 Total Financial assets ƋƵŝƚLJƐĞĐƵƌŝƟĞƐ Ͳ ϲϮ͕ϰϯϬ ϭ͕Ϯϴϰ ϲϯ͕ϳϭϰ EŽŶͲĮŶĂŶĐŝĂůĂƐƐĞƚƐ ƐƐĞƚŚĞůĚĨŽƌƐĂůĞ Ͳ Ͳ ϲϱ͕ϬϱϮ ϲϱ͕ϬϱϮ WƌŽƉĞƌƚLJ͕ƉůĂŶƚΘĞƋƵŝƉŵĞŶƚ Ͳ Ͳ ϲϲϮ͕ϯϭϯ ϲϲϮ͕ϯϭϯ Total - 62,430 728,649 791,079 &ŝŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐ WŽůŝĐLJůŝĂďŝůŝƟĞƐ - - 473,753 473,753 2013 Financial assets ƋƵŝƚLJƐĞĐƵƌŝƟĞƐ Ͳ ϰϳ͕ϴϭϭ ϭ͕ϯϯϯ ϰϵ͕ϭϰϰ EŽŶͲĮŶĂŶĐŝĂůĂƐƐĞƚƐ WƌŽƉĞƌƚLJ͕ƉůĂŶƚΘĞƋƵŝƉŵĞŶƚ Ͳ Ͳ ϲϮϯ͕ϯϲϬ ϲϮϯ͕ϯϲϬ Total - 47,811 624,693 672,504 &ŝŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐ WŽůŝĐLJůŝĂďŝůŝƟĞƐ - - 481,087 481,087 dŚĞƌĞǁĞƌĞŶŽĐŚĂŶŐĞƐŝŶǀĂůƵĂƟŽŶƚĞĐŚŶŝƋƵĞĨŽƌ>ĞǀĞůϯƌĞƋƵŝƌŝŶŐĨĂŝƌǀĂůƵĞŵĞĂƐƵƌĞŵĞŶƚƐĚƵƌŝŶŐƚŚĞLJĞĂƌĞŶĚĞĚϯϭĞĐĞŵďĞƌ ϮϬϭϰ;ϮϬϭϯʹŶŽŶĞͿ͘WƌŽƉĞƌƚLJ͕ƉůĂŶƚĂŶĚĞƋƵŝƉŵĞŶƚĂŶĚĂƐƐĞƚƐŚĞůĚĨŽƌƐĂůĞƌĞƉƌĞƐĞŶƚƐĐŽŵŵĞƌĐŝĂůůĂŶĚĂŶĚďƵŝůĚŝŶŐƐƚŚĂƚƚŚĞ 'ƌŽƵƉďĂƐĞĚŽŶǀĂůƵĂƟŽŶƐƉƌŽǀŝĚĞĚďLJŝŶĚĞƉĞŶĚĞŶƚǀĂůƵĞƌƐ͘ŝƐƉŽƐĂůĐŽƐƚĨŽƌƉƌŽƉĞƌƟĞƐĐůĂƐƐŝĮĞĚĂƐŚĞůĚĨŽƌƐĂůĞŝƐŶŽƚĞdžƉĞĐƚĞĚ ƚŽďĞŵĂƚĞƌŝĂů͘ /ŶƚŚĞŶŽƌŵĂůĐŽƵƌƐĞŽĨƚƌĂĚŝŶŐ͕ƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉĞŶƚĞƌƐŝŶƚŽĨŽƌǁĂƌĚĞdžĐŚĂŶŐĞĐŽŶƚƌĂĐƚƐ͘dŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉĚŽĞƐ ŶŽƚĂĐƟǀĞůLJĞŶƚĞƌŝŶƚŽŽƌƚƌĂĚĞŝŶ͕ĐŽŵƉůĞdžĨŽƌŵƐŽĨĚĞƌŝǀĂƟǀĞĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐƐƵĐŚĂƐĐƵƌƌĞŶĐLJĂŶĚŝŶƚĞƌĞƐƚƌĂƚĞƐǁĂƉƐĂŶĚ ŽƉƟŽŶƐ͘ džƉŽƐƵƌĞƐŝŶĨŽƌĞŝŐŶĐƵƌƌĞŶĐŝĞƐĂƌŝƐĞǁŚĞƌĞƚŚĞĂŶŬĂŶĚƚŚĞ'ƌŽƵƉƚƌĂŶƐĂĐƚƐŝŶĨŽƌĞŝŐŶĐƵƌƌĞŶĐŝĞƐ͘dŚŝƐƉƌŝĐĞƌŝƐŬŝƐ ŵŝŶŝŵŝƐĞĚďLJĞŶƚĞƌŝŶŐŝŶƚŽĐŽƵŶƚĞƌďĂůĂŶĐŝŶŐƉŽƐŝƟŽŶƐĨŽƌŵĂƚĞƌŝĂůĞdžƉŽƐƵƌĞƐĂƐƚŚĞLJĂƌŝƐĞ͘&ŽƌǁĂƌĚĂŶĚƐƉŽƚĨŽƌĞŝŐŶĞdžĐŚĂŶŐĞ ĐŽŶƚƌĂĐƚƐĂƌĞƵƐĞĚ͘ &ŽƌǁĂƌĚĞdžĐŚĂŶŐĞĐŽŶƚƌĂĐƚƐŽƵƚƐƚĂŶĚŝŶŐĂƚϯϭĞĐĞŵďĞƌϮϬϭϰƐƚĂƚĞĚĂƚƚŚĞĨĂĐĞǀĂůƵĞŽĨƚŚĞƌĞƐƉĞĐƟǀĞĐŽŶƚƌĂĐƚƐĂƌĞ͗ ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<ΖϬϬϬ As at 31 December 2014 USD AUD EURO GBP Other Total Selling &z ;ϰϮ͕ϭϰϯͿ Ͳ ;ϵϳϭͿ ;Ϯ͕ϰϱϬͿ Ͳ Ͳ Kina ϭϭϬ͕ϳϬϭ Ͳ ϰ͕Ϭϱϴ ϯ͕ϴϯϬ Ͳ ϭϭϴ͕ϱϴϵ Buying &z ϰϭ͕ϳϳϯ Ͳ Ͳ ϭ͕ϬϬϬ Ͳ Ͳ Kina ;ϭϬϴ͕ϳϵϱͿ Ͳ Ͳ ;ϰ͕ϬϱϳͿ Ͳ ;ϭϭϮ͕ϴϱϮͿ As at 31 December 2013 USD AUD EURO GBP Other Total Selling &z ;ϭϮϭ͕ϬϰϭͿ ;ϯϬ͕ϱϯϴͿ ;ϰϰͿ ;ϭ͕ϱϱϬͿ ;ϮϲϮ͕ϮϴϳͿ Ͳ Kina ϯϭϴ͕ϰϴϮ ϳϭ͕ϭϭϮ ϭϲϬ Ϯ͕ϲϯϲ ϵ͕ϴϱϯ ϰϬϮ͕Ϯϰϯ Buying &z ϭϬ͕ϭϬϬ Ͳ Ͳ Ͳ ϵϮϲ Ͳ Kina ;Ϯϯ͕ϮϰϲͿ Ͳ Ͳ Ͳ ;ϰ͕ϬϲϯͿ ;Ϯϳ͕ϯϬϵͿ 84 BSP Annual Report 2014 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 39. POLICY LIABILITIES <ĞLJĂƐƐƵŵƉƟŽŶƐƵƐĞĚŝŶĚĞƚĞƌŵŝŶŝŶŐƚŚŝƐůŝĂďŝůŝƚLJĂƌĞĂƐĨŽůůŽǁƐ͗ Discount Rates &ŽƌĐŽŶƚƌĂĐƚƐŝŶ^ƚĂƚƵƚŽƌLJ&ƵŶĚϭǁŚŝĐŚŚĂǀĞĂW&͕ƚŚĞĚŝƐĐŽƵŶƚƌĂƚĞƵƐĞĚŝƐůŝŶŬĞĚƚŽƚŚĞĂƐƐĞƚƐǁŚŝĐŚďĂĐŬƚŚŽƐĞĐŽŶƚƌĂĐƚƐ͘&Žƌ ϯϭƐƚĞĐĞŵďĞƌϮϬϭϰƚŚŝƐǁĂƐϰ͘ϴϰйƉĞƌĂŶŶƵŵ;ϯϭƐƚĞĐĞŵďĞƌϮϬϭϯ͗ϰ͘ϮϭйƉĞƌĂŶŶƵŵͿ͕ďĂƐĞĚŽŶĐƵƌƌĞŶƚϭϬLJĞĂƌŐŽǀĞƌŶŵĞŶƚ ďŽŶĚLJŝĞůĚƐĂŶĚĞdžƉĞĐƚĞĚĞĂƌŶŝŶŐƐĨƌŽŵƚŚĞŝŶǀĞƐƚŵĞŶƚƉŽƌƞŽůŝŽ͘&ŽƌĐŽŶƚƌĂĐƚƐǁŝƚŚŽƵƚW&ĂŶĚĐĐŝĚĞŶƚƵƐŝŶĞƐƐ͕ĂƌĂƚĞŽĨ ϯ͘ϵϱйƉĞƌĂŶŶƵŵǁĂƐƵƐĞĚĂƚϯϭƐƚĞĐĞŵďĞƌϮϬϭϰ;ϯϭƐƚĞĐĞŵďĞƌϮϬϭϯ͗ϯ͘ϰϲйƉĞƌĂŶŶƵŵͿ͘dŚĞƐĞƌĂƚĞƐǁĞƌĞďĂƐĞĚŽŶƚŚĞϭϬ LJĞĂƌŐŽǀĞƌŶŵĞŶƚďŽŶĚƌĂƚĞĂƐƉƵďůŝƐŚĞĚďLJƚŚĞZĞƐĞƌǀĞĂŶŬŽĨ&ŝũŝ͘ Investment and Maintenance Expenses &ƵƚƵƌĞŵĂŝŶƚĞŶĂŶĐĞĂŶĚŝŶǀĞƐƚŵĞŶƚĞdžƉĞŶƐĞƐĂƌĞďĂƐĞĚŽŶƚŚĞďƵĚŐĞƚĞĚĞdžƉĞŶƐĞƐ͘&ƵƚƵƌĞŝŶŇĂƟŽŶŚĂƐďĞĞŶĂƐƐƵŵĞĚƚŽďĞϯ͘ϱй ƉĞƌĂŶŶƵŵ;ϯϭƐƚĞĐĞŵďĞƌϮϬϭϯ͗ϯ͘ϱйƉĞƌĂŶŶƵŵͿĨŽƌĚĞƚĞƌŵŝŶŝŶŐĨƵƚƵƌĞĞdžƉĞŶƐĞƐ͘ dĂdžĂƟŽŶ dŚĞƌĂƚĞƐŽĨƚĂdžĂƟŽŶĞŶĂĐƚĞĚŽƌƐƵďƐƚĂŶƟĂůůLJĞŶĂĐƚĞĚĂƚƚŚĞĚĂƚĞŽĨƚŚĞǀĂůƵĂƟŽŶ;ŝ͘Ğ͘ϮϬйͿĂƌĞĂƐƐƵŵĞĚƚŽĐŽŶƟŶƵĞŝŶƚŽƚŚĞ ĨƵƚƵƌĞ͘ Mortality and Morbidity WƌŽũĞĐƚĞĚĨƵƚƵƌĞƌĂƚĞƐŽĨŵŽƌƚĂůŝƚLJĨŽƌŝŶƐƵƌĞĚůŝǀĞƐĂƌĞďĂƐĞĚŽŶƚŚĞ&ŝũŝDŽƌƚĂůŝƚLJ^ƚĂƟƐƟĐƐƚĂďůĞ&:ϵϬͲϵϰDĂůĞ͘dŚĞƐĞĂƌĞƚŚĞŶ ĂĚũƵƐƚĞĚĨŽƌƚŚĞ'ƌŽƵƉ͛ƐŽǁŶĞdžƉĞƌŝĞŶĐĞ͘dŚĞŵŽƌƚĂůŝƚLJƌĂƚĞƐƵƐĞĚǁĂƐϳϬйŽĨƚŚĞ&:ϵϬͲϵϰDĂůĞƚĂďůĞĨŽƌƉĂƌƟĐŝƉĂƟŶŐďƵƐŝŶĞƐƐŝŶ ^ƚĂƚƵƚŽƌLJ&ƵŶĚϭ͘ ZĂƚĞƐŽĨŝƐĐŽŶƟŶƵĂŶĐĞ ĞƐƚĞƐƟŵĂƚĞĂƐƐƵŵƉƟŽŶƐĨŽƌƚŚĞŝŶĐŝĚĞŶĐĞŽĨǁŝƚŚĚƌĂǁĂůĂŶĚĚŝƐĐŽŶƟŶƵĂŶĐĞǀĂƌLJďLJƉƌŽĚƵĐƚĂŶĚĚƵƌĂƟŽŶĂŶĚĂƌĞďĂƐĞĚŽŶƚŚĞ 'ƌŽƵƉ͛ƐĞdžƉĞƌŝĞŶĐĞǁŚŝĐŚŝƐƌĞǀŝĞǁĞĚƌĞŐƵůĂƌůLJ͘ZĂƚĞƐƵƐĞĚĨŽƌƚŚĞůŽŶŐƚĞƌŵŝŶƐƵƌĂŶĐĞĐŽŶƚƌĂĐƚƐĂƌĞĂƐĨŽůůŽǁƐ͗ 2014 2013 tŚŽůĞŽĨ>ŝĨĞĂŶĚ ŶĚŽǁŵĞŶƚ/ŶƐƵƌĂŶĐĞ ϭϱй ϭϱй dĞƌŵ/ŶƐƵƌĂŶĐĞ ϭϴй ϭϴй ĐĐŝĚĞŶƚ/ŶƐƵƌĂŶĐĞ ϭϰй ϭϰй ĂƐŝƐŽĨĂůĐƵůĂƟŽŶŽĨ^ƵƌƌĞŶĚĞƌsĂůƵĞƐ ^ƵƌƌĞŶĚĞƌǀĂůƵĞƐĂƌĞďĂƐĞĚŽŶƚŚĞƉƌŽǀŝƐŝŽŶƐƐƉĞĐŝĮĞĚŝŶƚŚĞƉŽůŝĐLJĐŽŶƚƌĂĐƚƐ͘dŚĞƌĞŚĂǀĞďĞĞŶŶŽĐŚĂŶŐĞƐƚŽƐƵƌƌĞŶĚĞƌďĂƐĞƐ ĚƵƌŝŶŐƚŚĞƉĞƌŝŽĚ;ŽƌƚŚĞƉƌŝŽƌƉĞƌŝŽĚƐͿǁŚŝĐŚŚĂǀĞŵĂƚĞƌŝĂůůLJĂīĞĐƚĞĚƚŚĞǀĂůƵĂƟŽŶƌĞƐƵůƚ͘ ŝƐĐƌĞƟŽŶĂƌLJWĂƌƟĐŝƉĂƟŶŐƵƐŝŶĞƐƐ &ŽƌŵŽƐƚƉĂƌƟĐŝƉĂƟŶŐďƵƐŝŶĞƐƐ͕ďŽŶƵƐƌĂƚĞƐĂƌĞƐĞƚƐƵĐŚƚŚĂƚ͕ŽǀĞƌůŽŶŐƉĞƌŝŽĚƐ͕ƚŚĞƌĞƚƵƌŶƐƚŽĐŽŶƚƌĂĐƚŚŽůĚĞƌƐĂƌĞĐŽŵŵĞŶƐƵƌĂƚĞ ǁŝƚŚƚŚĞŝŶǀĞƐƚŵĞŶƚƌĞƚƵƌŶƐĂĐŚŝĞǀĞĚŽŶƚŚĞƉŽŽůŽĨĂƐƐĞƚƐǁŚŝĐŚƉƌŽǀŝĚĞƐĞĐƵƌŝƚLJĨŽƌƚŚĞĐŽŶƚƌĂĐƚ͕ƚŽŐĞƚŚĞƌǁŝƚŚŽƚŚĞƌƐŽƵƌĐĞƐ ŽĨƉƌŽĮƚĂƌŝƐŝŶŐĨƌŽŵƚŚŝƐďƵƐŝŶĞƐƐ͘WƌŽĮƚƐĨƌŽŵƚŚĞƐĞƉŽůŝĐŝĞƐĂƌĞƐƉůŝƚďĞƚǁĞĞŶĐŽŶƚƌĂĐƚŚŽůĚĞƌƐĂŶĚƐŚĂƌĞŚŽůĚĞƌƐŝŶĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚƚŚĞƉŽůŝĐLJĐŽŶĚŝƟŽŶƐǁŚŝĐŚĂůůŽǁĨŽƌƐŚĂƌĞŚŽůĚĞƌƐƚŽƐŚĂƌĞŝŶĂůůŽĐĂƟŽŶƐĂƚĂŵĂdžŝŵƵŵƌĂƚĞŽĨϮϬй͘&ŽƌďƵƐŝŶĞƐƐǁƌŝƩĞŶ ďĞƚǁĞĞŶϭϵϵϱĂŶĚϭϵϵϴƚŚĞƐŚĂƌĞŚŽůĚĞƌƌĞĐĞŝǀĞƐϭϭйŽĨƉƌŽĮƚƐ͘ /ŶĂƉƉůLJŝŶŐƚŚĞĐŽŶƚƌĂĐƚŚŽůĚĞƌƐ͛ƐŚĂƌĞŽĨƉƌŽĮƚƐƚŽƉƌŽǀŝĚĞďŽŶƵƐĞƐ͕ĐŽŶƐŝĚĞƌĂƟŽŶŝƐŐŝǀĞŶƚŽĞƋƵŝƚLJďĞƚǁĞĞŶŐĞŶĞƌĂƟŽŶƐŽĨ ƉŽůŝĐLJŚŽůĚĞƌƐĂŶĚĞƋƵŝƚLJďĞƚǁĞĞŶƚŚĞǀĂƌŝŽƵƐĐůĂƐƐĞƐĂŶĚƐŝnjĞƐŽĨĐŽŶƚƌĂĐƚƐŝŶĨŽƌĐĞ͘ƐƐƵŵĞĚĨƵƚƵƌĞďŽŶƵƐƌĂƚĞƐŝŶĐůƵĚĞĚŝŶ ƚŚĞůŝĂďŝůŝƚLJĨŽƌƚŚĞůŽŶŐƚĞƌŵŝŶƐƵƌĂŶĐĞĐŽŶƚƌĂĐƚƐǁĞƌĞƐĞƚƐƵĐŚƚŚĂƚƚŚĞƉƌĞƐĞŶƚǀĂůƵĞŽĨƚŚĞůŝĂďŝůŝƟĞƐĞƋƵĂƚĞƐƚŽƚŚĞƉƌĞƐĞŶƚ ǀĂůƵĞŽĨĂƐƐĞƚƐƐƵƉƉŽƌƟŶŐƚŚĞďƵƐŝŶĞƐƐƚŽŐĞƚŚĞƌǁŝƚŚĂƐƐƵŵĞĚĨƵƚƵƌĞŝŶǀĞƐƚŵĞŶƚƌĞƚƵƌŶƐ͕ĂůůŽǁŝŶŐĨŽƌƚŚĞƐŚĂƌĞŚŽůĚĞƌ͛ƐƌŝŐŚƚƚŽ ƉĂƌƟĐŝƉĂƚĞŝŶĚŝƐƚƌŝďƵƟŽŶƐ͘ Reinsurance ŽŶƚƌĂĐƚƐĞŶƚĞƌĞĚŝŶƚŽďLJƚŚĞ'ƌŽƵƉǁŝƚŚZĞŝŶƐƵƌĞƌƐƵŶĚĞƌǁŚŝĐŚƚŚĞ'ƌŽƵƉŝƐĐŽŵƉĞŶƐĂƚĞĚĨŽƌůŽƐƐĞƐŽŶŽŶĞŽƌŵŽƌĞĐŽŶƚƌĂĐƚƐ ŝƐƐƵĞĚďLJƚŚĞ'ƌŽƵƉ͕ĂƌĞĐůĂƐƐŝĮĞĚĂƐƌĞŝŶƐƵƌĂŶĐĞĐŽŶƚƌĂĐƚƐ͘ ƐƚŚĞƌĞŝŶƐƵƌĂŶĐĞĂŐƌĞĞŵĞŶƚƐƉƌŽǀŝĚĞĨŽƌŝŶĚĞŵŶŝĮĐĂƟŽŶďLJƚŚĞZĞŝŶƐƵƌĞƌƐĂŐĂŝŶƐƚůŽƐƐŽƌůŝĂďŝůŝƚLJ͕ƌĞŝŶƐƵƌĂŶĐĞŝŶĐŽŵĞĂŶĚ ĞdžƉĞŶƐĞƐĂƌĞƌĞĐŽŐŶŝƐĞĚƐĞƉĂƌĂƚĞůLJŝŶƉƌŽĮƚŽƌůŽƐƐǁŚĞŶƚŚĞLJďĞĐŽŵĞĚƵĞĂŶĚƉĂLJĂďůĞŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞƌĞŝŶƐƵƌĂŶĐĞ ĂŐƌĞĞŵĞŶƚƐ͘ BSP Annual Report 2014 85 127(6727+(&2162/,'$7(' ),1$1&,$/67$7(0(176 for the Year Ended 31 December 2014 39. POLICY LIABILITIES FRQWLQXHG ZĞŝŶƐƵƌĂŶĐĞ ƌĞĐŽǀĞƌŝĞƐ ĂƌĞ ƌĞĐŽŐŶŝƐĞĚ ĂƐ ĐůĂŝŵ ƌĞĐŽǀĞƌŝĞƐ ƵŶĚĞƌ ƉƌŽĮƚ Žƌ ůŽƐƐ͘ dŚŝƐ ŝƐ ŶĞƩĞĚ Žī ĂŐĂŝŶƐƚ ƚŚĞ ĐůĂŝŵ ĞdžƉĞŶƐĞƐ͘ ZĞŝŶƐƵƌĂŶĐĞƉƌĞŵŝƵŵƐĂƌĞƌĞĐŽŐŶŝƐĞĚĂƐZĞŝŶƐƵƌĂŶĐĞ džƉĞŶƐĞƐ͘ ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<͛ϬϬϬ 2014 2013 WŽůŝĐLJ>ŝĂďŝůŝƟĞƐ KƉĞŶŝŶŐďĂůĂŶĐĞ ϰϴϭ͕Ϭϴϳ ϯϵϵ͕ϲϮϳ ZĞůĞĂƐĞƉƌŽǀŝƐŝŽŶƐƚŽĐůĂŝŵƐΘŽƉĞƌĂƟŶŐĞdžƉĞŶƐĞƐ ;ϭ͕ϯϵϰͿ Ͳ ZĞůĞĂƐĞƉƌŽǀŝƐŝŽŶƚŽĨƵŶĚĂĚǀĂŶĐĞƉƌĞŵŝƵŵ ;ϱͿ Ͳ ZĞůĞĂƐĞƉƌŽǀŝƐŝŽŶƚŽĨƵŶĚŶĞŐĂƟǀĞZĞŐŝŽŶĂů^ŚĂƌĞŚŽůĚĞƌƚŽZĞƚĂŝŶĞĚ ĂƌŶŝŶŐƐ ;ϴϬͿ Ͳ /ŶĐƌĞĂƐĞͬ;ĚĞĐƌĞĂƐĞͿŝŶƉŽůŝĐLJůŝĂďŝůŝƟĞƐ ;ϱ͕ϴϱϱͿ ϴϭ͕ϰϲϬ dŽƚĂůƉŽůŝĐLJůŝĂďŝůŝƟĞƐ 473,753 481,087 40. EVENTS OCCURRING AFTER BALANCE SHEET DATE KŶϮϵƚŚ:ĂŶƵĂƌLJϮϬϭϱ͕ƚŚĞĂŶŬĂŶŶŽƵŶĐĞĚƚŚĂƚŝƚŚĂĚĞŶƚĞƌĞĚŝŶƚŽĂŶĂŐƌĞĞŵĞŶƚƚŽĂĐƋƵŝƌĞƚŚĞďĂŶŬŝŶŐŽƉĞƌĂƟŽŶƐŽĨtĞƐƚƉĂĐ ĂŶŬŝŶŐŽƌƉŽƌĂƟŽŶ;tĞƐƚƉĂĐͿŝŶ^ĂŵŽĂ͕ŽŽŬ/ƐůĂŶĚƐ͕^ŽůŽŵŽŶ/ƐůĂŶĚƐ͕sĂŶƵĂƚƵĂŶĚdŽŶŐĂĨŽƌhϭϮϱŵŝůůŝŽŶ;ĂƉƉƌŽdžŝŵĂƚĞůLJ <ϮϱϴŵŝůůŝŽŶͿ͘ ŽŵƉůĞƟŽŶŽĨƚŚĞƐĂůĞŝƐĂŶƟĐŝƉĂƚĞĚďLJŵŝĚͲϮϬϭϱĂŶĚŝƐƐƵďũĞĐƚ ƚŽŽďƚĂŝŶŝŶŐŶĞĐĞƐƐĂƌLJƐƚĂƚƵƚŽƌLJ͕ƌĞŐƵůĂƚŽƌLJĂŶĚƚŚŝƌĚƉĂƌƚLJ ĂƉƉƌŽǀĂůƐ͘WƌŝŽƌƚŽĐŽŵƉůĞƟŽŶ͕tĞƐƚƉĂĐǁŝůůĐŽŶƟŶƵĞƚŽŽǁŶĂŶĚŵĂŶĂŐĞďĂŶŬŝŶŐŽƉĞƌĂƟŽŶƐŝŶƚŚĞƐĞĐŽƵŶƚƌŝĞƐĂŶĚǁŝůůĐŽŶƟŶƵĞ ƚŽŵĞĞƚŝƚƐĐƵƐƚŽŵĞƌƐ͛ĚĂŝůLJďĂŶŬŝŶŐŶĞĞĚƐ͘ 41. REMUNERATION OF AUDITORS Consolidated Banks ůůĂŵŽƵŶƚƐĂƌĞĞdžƉƌĞƐƐĞĚŝŶ<͛ϬϬϬ 2014 2013 2014 2013 &ŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚĂƵĚŝƚƐ ϭ͕ϵϭϵ Ϯ͕ϳϬϳ ϭ͕ϱϲϴ Ϯ͕ϭϭϬ KƚŚĞƌƐĞƌǀŝĐĞƐ ϵϯϲ ϰ͕ϰϭϯ ϵϮϵ ϰ͕ϰϭϯ 2,855 7,120 2,497 6,523 dŚĞĞdžƚĞƌŶĂůĂƵĚŝƚŽƌWƌŝĐĞǁĂƚĞƌŚŽƵƐĞŽŽƉĞƌƐŝƐĂůƐŽĞŶŐĂŐĞĚŝŶƉƌŽǀŝĚŝŶŐŽƚŚĞƌƐĞƌǀŝĐĞƐƚŽƚŚĞĂŶŬĂŶĚ'ƌŽƵƉĂƐƌĞƋƵŝƌĞĚĂŶĚ ĂƐƉĞƌŵŝƩĞĚďLJƉƌƵĚĞŶƟĂůƐƚĂŶĚĂƌĚƐ͘dŚĞƉƌŽǀŝƐŝŽŶŽĨŽƚŚĞƌƐĞƌǀŝĐĞƐŝŶĐůƵĚĞĚƚĂdžĂƟŽŶĂŶĚŐĞŶĞƌĂůƚƌĂŝŶŝŶŐ͘ĞůŽŝƩĞƐdŽƵĐŚĠ dŽŚŵĂƚƐƵǁĂƐƚŚĞĞdžƚĞƌŶĂůĂƵĚŝƚŽƌĨŽƌƚŚĞƉƌŝŽƌLJĞĂƌ͘ 86 BSP Annual Report 2014 Independent Auditor’s Report WRWKHVKDUHKROGHUVRI%DQNRI6RXWK3DFL¿F/LPLWHG 5HSRUWRQWKH¿QDQFLDOVWDWHPHQWV :HKDYHDXGLWHGWKHDFFRPSDQ\LQJ¿QDQFLDOVWDWHPHQWVRI%DQNRI6RXWK3DFL¿F/LPLWHG WKH&RPSDQ\ ZKLFKFRPSULVHWKHVWDWHPHQWVRI¿QDQFLDOSRVLWLRQDVDW 'HFHPEHUWKHVWDWHPHQWVRIFRPSUHKHQVLYHLQFRPHVWDWHPHQWVRIFKDQJHVLQVKDUHKROGHUV¶HTXLW\DQGVWDWHPHQWVRIFDVKÀRZVIRUWKH\HDUWKHQHQGHGDQGWKHQRWHV WRWKH¿QDQFLDOVWDWHPHQWVWKDWLQFOXGHDVXPPDU\RIVLJQL¿FDQWDFFRXQWLQJSROLFLHVDQGRWKHUH[SODQDWRU\LQIRUPDWLRQIRUERWKWKH&RPSDQ\DQGWKH*URXS7KH*URXS FRPSULVHVWKH&RPSDQ\DQGWKHHQWLWLHVLWFRQWUROOHGDW'HFHPEHURUIURPWLPHWRWLPHGXULQJWKH¿QDQFLDO\HDU 'LUHFWRUV¶UHVSRQVLELOLW\IRUWKH¿QDQFLDOVWDWHPHQWV 7KH'LUHFWRUVDUHUHVSRQVLEOHIRUWKHSUHSDUDWLRQRIWKHVH¿QDQFLDOVWDWHPHQWVVXFKWKDWWKH\JLYHDWUXHDQGIDLUYLHZLQDFFRUGDQFHZLWKJHQHUDOO\DFFHSWHGDFFRXQWLQJ SUDFWLFHLQ3DSXD1HZ*XLQHDDQGWKH&RPSDQLHV$FW DQGIRUVXFKLQWHUQDOFRQWUROVDVWKH'LUHFWRUVGHWHUPLQHDUHQHFHVVDU\WRHQDEOHWKHSUHSDUDWLRQRI¿QDQFLDO VWDWHPHQWVWKDWDUHIUHHIURPPDWHULDOPLVVWDWHPHQWZKHWKHUGXHWRIUDXGRUHUURU $XGLWRU¶VUHVSRQVLELOLW\ 2XUUHVSRQVLELOLW\LVWRH[SUHVVDQRSLQLRQRQWKHVH¿QDQFLDOVWDWHPHQWVEDVHGRQRXUDXGLW:HFRQGXFWHGRXUDXGLWLQDFFRUGDQFHZLWK,QWHUQDWLRQDO6WDQGDUGVRQ $XGLWLQJ7KHVHVWDQGDUGVUHTXLUHWKDWZHFRPSO\ZLWKUHOHYDQWHWKLFDOUHTXLUHPHQWVDQGSODQDQGSHUIRUPWKHDXGLWWRREWDLQUHDVRQDEOHDVVXUDQFHDERXWZKHWKHUWKH ¿QDQFLDOVWDWHPHQWVDUHIUHHIURPPDWHULDOPLVVWDWHPHQW $QDXGLWLQYROYHVSHUIRUPLQJSURFHGXUHVWRREWDLQDXGLWHYLGHQFHDERXWWKHDPRXQWVDQGGLVFORVXUHVLQWKH¿QDQFLDOVWDWHPHQWV7KHSURFHGXUHVVHOHFWHGGHSHQGRQ WKHDXGLWRU¶VMXGJPHQWLQFOXGLQJWKHDVVHVVPHQWRIWKHULVNVRIPDWHULDOPLVVWDWHPHQWRIWKH¿QDQFLDOVWDWHPHQWVZKHWKHUGXHWRIUDXGRUHUURU,QPDNLQJWKRVHULVN DVVHVVPHQWVWKHDXGLWRUFRQVLGHUVWKHLQWHUQDOFRQWUROVUHOHYDQWWRWKH&RPSDQ\DQGWKH*URXS¶VSUHSDUDWLRQRI¿QDQFLDOVWDWHPHQWVWKDWJLYHDWUXHDQGIDLUYLHZRI WKHPDWWHUVWRZKLFKWKH\UHODWHLQRUGHUWRGHVLJQDXGLWSURFHGXUHVWKDWDUHDSSURSULDWHLQWKHFLUFXPVWDQFHVEXWQRWIRUWKHSXUSRVHRIH[SUHVVLQJDQRSLQLRQRQWKH HIIHFWLYHQHVVRIWKH&RPSDQ\DQGWKH*URXS¶VLQWHUQDOFRQWURO$QDXGLWDOVRLQFOXGHVHYDOXDWLQJWKHDSSURSULDWHQHVVRIDFFRXQWLQJSROLFLHVXVHGDQGWKHUHDVRQDEOHQHVVRI DFFRXQWLQJHVWLPDWHVDVZHOODVHYDOXDWLQJWKHRYHUDOOSUHVHQWDWLRQRIWKH¿QDQFLDOVWDWHPHQWV :HEHOLHYHWKDWWKHDXGLWHYLGHQFHZHKDYHREWDLQHGLVVXI¿FLHQWDQGDSSURSULDWHWRSURYLGHDEDVLVIRURXUDXGLWRSLQLRQ Opinion ,QRXURSLQLRQWKHDFFRPSDQ\LQJ¿QDQFLDOVWDWHPHQWV FRPSO\ZLWK,QWHUQDWLRQDO)LQDQFLDO5HSRUWLQJ6WDQGDUGVDQGRWKHUJHQHUDOO\DFFHSWHGDFFRXQWLQJSUDFWLFHLQ3DSXD1HZ*XLQHD DQG JLYHDWUXHDQGIDLUYLHZRIWKH¿QDQFLDOSRVLWLRQRIWKH&RPSDQ\DQGWKH*URXSDVDW'HFHPEHUDQGWKHLU¿QDQFLDOSHUIRUPDQFHDQGFDVKÀRZV IRUWKH\HDUWKHQHQGHG 5HSRUWRQRWKHUOHJDODQGUHJXODWRU\UHTXLUHPHQWV 7KH&RPSDQLHV$FW UHTXLUHVWKDWLQFDUU\LQJRXWRXUDXGLWZHFRQVLGHUDQGUHSRUWRQWKHIROORZLQJPDWWHUV:HFRQ¿UPLQUHODWLRQWRRXUDXGLWRIWKH¿QDQFLDO VWDWHPHQWVIRUWKH\HDUHQGHG'HFHPEHU ZHKDYHREWDLQHGDOOWKHLQIRUPDWLRQDQGH[SODQDWLRQVWKDWZHKDYHUHTXLUHG LQRXURSLQLRQSURSHUDFFRXQWLQJUHFRUGVKDYHEHHQNHSWE\WKH&RPSDQ\DVIDUDVDSSHDUVIURPDQH[DPLQDWLRQRIWKRVHUHFRUGV DQG ZHKDYHQRUHODWLRQVKLSZLWKRULQWHUHVWVLQWKH&RPSDQ\RUDQ\RILWVVXEVLGLDULHVRWKHUWKDQLQRXUFDSDFLWLHVDVDXGLWRUWD[DWLRQDGYLVRUDQGSURYLGHURIDGYLVRU\ VHUYLFHV7KHVHVHUYLFHVKDYHQRWLPSDLUHGRXULQGHSHQGHQFHDVDXGLWRURIWKH*URXS 5HVWULFWLRQRQGLVWULEXWLRQRUXVH 7KLVUHSRUWLVPDGHVROHO\WRWKH*URXS¶VVKDUHKROGHUVDVDERG\LQDFFRUGDQFHZLWKWKH&RPSDQLHV$FW 2XUDXGLWZRUNKDVEHHQXQGHUWDNHQVRWKDWZHPLJKW VWDWHWRWKH&RPSDQ\¶VVKDUHKROGHUVWKRVHPDWWHUVZKLFKZHDUHUHTXLUHGWRVWDWHWRWKHPLQDQDXGLWRU¶VUHSRUWDQGIRUQRRWKHUSXUSRVH:HGRQRWDFFHSWRUDVVXPH UHVSRQVLELOLW\WRDQ\RQHRWKHUWKDQWKH&RPSDQ\DQGWKH&RPSDQ\¶VVKDUHKROGHUVDVDERG\IRURXUDXGLWZRUNIRUWKLVUHSRUWRUIRUWKHRSLQLRQVZHKDYHIRUPHG WƌŝĐĞǁĂƚĞƌŚŽƵƐĞŽŽƉĞƌƐ Jonathan Seeto ZĞŐŝƐƚĞƌĞĚƵŶĚĞƌƚŚĞĐĐŽƵŶƚĂŶƚƐĐƚϭϵϵϲ WĂƌƚŶĞƌ͕ŚĂƌƚĞƌĞĚĐĐŽƵŶƚĂŶƚƐ WŽƌƚDŽƌĞƐďLJ͕ϭϯthDĂƌĐŚϮϬϭϱ͘ PricewaterhouseCoopers, 6th Floor, Credit House, Cuthbertson Street. PO Box 484, Port Moresby, Papua New Guinea. Tel: (+675) 321 1500 Fax: (+675) 321 1428,www.pwc.com/pg BSP Annual Report 2014 87 ^W͛ƐDŽďŝůĞĂŶŬŝŶŐŚĂŶŶĞůǁĂƐĞŶŚĂŶĐĞĚŝŶϮϬϭϰǁŝƚŚƚŚĞůĂƵŶĐŚŽĨĂDŽďŝůĞ ƉƉůŝĐĂƟŽŶĂŶĚĐƵƐƚŽŵĞƌƵƐĂŐĞŽĨƚŚĞDŽďŝůĞĂŶŬŝŶŐ͘ SHAREHOLDERCHAIRMAN’S INFORMATION REPORT 88 BSP Annual Report 2014 6+$5(+2/'(5,1)250$7,21 7KHIROORZLQJLVDVXPPDU\RISHUWLQHQWLVVXHVUHODWLQJWRDVKDUHKROGLQJLQWKH*URXS 7KH&RQVWLWXWLRQRI%63PD\EHLQVSHFWHGGXULQJQRUPDOEXVLQHVVKRXUVDWWKH5HJLVWHUHG2IILFH RIGHTS ATTACHING TO ORDINARY SHARES Transfer of shares dŚĞ ƌŝŐŚƚƐ ĂƩĂĐŚŝŶŐ ƚŽ ƐŚĂƌĞƐ ĂƌĞ ƐĞƚ ŽƵƚ ŝŶ ĂŶŬ ŽĨ ^ŽƵƚŚ ^ƵďũĞĐƚ ƚŽ ^W͛Ɛ ĐŽŶƐƟƚƵƟŽŶ͕ ƚŚĞ ŽŵƉĂŶŝĞƐ Đƚ ĂŶĚ ƚŚĞ WĂĐŝĮĐ>ŝŵŝƚĞĚ͛ƐŽŶƐƟƚƵƟŽŶĂŶĚŝŶĐĞƌƚĂŝŶĐŝƌĐƵŵƐƚĂŶĐĞƐ͕ĂƌĞ WKD^Žy>ŝƐƟŶŐZƵůĞƐ͕ŽƌĚŝŶĂƌLJƐŚĂƌĞƐĂƌĞĨƌĞĞůLJƚƌĂŶƐĨĞƌĂďůĞ͘ ƌĞŐƵůĂƚĞĚďLJƚŚĞŽŵƉĂŶŝĞƐĐƚϭϵϵϳ͕ƚŚĞWKD^Žy>ŝƐƟŶŐZƵůĞƐ ĂŶĚŐĞŶĞƌĂůůĂǁ͘dŚĞƌĞŝƐŽŶůLJŽŶĞĐůĂƐƐŽĨƐŚĂƌĞ͘ůůƐŚĂƌĞƐŚĂǀĞ dŚĞ ƐŚĂƌĞƐ ŵĂLJ ďĞ ƚƌĂŶƐĨĞƌƌĞĚ ďLJ Ă ƉƌŽƉĞƌ ƚƌĂŶƐĨĞƌ ĞīĞĐƚĞĚ ĞƋƵĂůƌŝŐŚƚƐ͘KƚŚĞƌƌŝŐŚƚƐĂƩĂĐŚĞĚƚŽŽƌĚŝŶĂƌLJƐŚĂƌĞƐŝŶĐůƵĚĞ͗ ŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞWKD^ŽyƵƐŝŶĞƐƐZƵůĞƐ͕ďLJĂŶLJŽƚŚĞƌ ŵĞƚŚŽĚ ŽĨ ƚƌĂŶƐĨĞƌƌŝŶŐ Žƌ ĚĞĂůŝŶŐ ǁŝƚŚ ƐŚĂƌĞƐ ŝŶƚƌŽĚƵĐĞĚ ďLJ General Meeting and Notices WKD^ŽyĂŶĚĂƐŽƚŚĞƌǁŝƐĞƉĞƌŵŝƩĞĚďLJƚŚĞŽŵƉĂŶŝĞƐĐƚŽƌ ďLJĂǁƌŝƩĞŶŝŶƐƚƌƵŵĞŶƚŽĨƚƌĂŶƐĨĞƌŝŶĂŶLJƵƐƵĂůĨŽƌŵŽƌŝŶĂŶLJ ĂĐŚ ŵĞŵďĞƌ ŝƐ ĞŶƟƚůĞĚ ƚŽ ƌĞĐĞŝǀĞ ŶŽƟĐĞ ŽĨ͕ ĂŶĚ ƚŽ ĂƩĞŶĚ ŽƚŚĞƌĨŽƌŵĂƉƉƌŽǀĞĚďLJĞŝƚŚĞƌƚŚĞŝƌĞĐƚŽƌƐŽƌWKD^ŽyƚŚĂƚŝƐ ĂŶĚǀŽƚĞĂƚ͕ŐĞŶĞƌĂůŵĞĞƟŶŐƐŽĨ^WĂŶĚƚŽƌĞĐĞŝǀĞĂůůŶŽƟĐĞƐ͕ ƉĞƌŵŝƩĞĚďLJƚŚĞŽŵƉĂŶŝĞƐĐƚ͘ ĂĐĐŽƵŶƚƐĂŶĚŽƚŚĞƌĚŽĐƵŵĞŶƚƐƌĞƋƵŝƌĞĚƚŽďĞƐĞŶƚƚŽŵĞŵďĞƌƐ ƵŶĚĞƌ ^W͛Ɛ ĐŽŶƐƟƚƵƟŽŶ͕ ƚŚĞ ŽŵƉĂŶŝĞƐ Đƚ Žƌ ƚŚĞ >ŝƐƟŶŐ dŚĞŝƌĞĐƚŽƌƐŵĂLJĚĞĐůŝŶĞƚŽƌĞŐŝƐƚĞƌĂƚƌĂŶƐĨĞƌŽĨƐŚĂƌĞƐ;ŽƚŚĞƌ ZƵůĞƐ͘ ƚŚĂŶĂƉƌŽƉĞƌƚƌĂŶƐĨĞƌŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞWKD^ŽyƵƐŝŶĞƐƐ ZƵůĞƐͿ ǁŚĞƌĞ ƉĞƌŵŝƩĞĚ ƚŽ ĚŽ ƐŽ ƵŶĚĞƌ ƚŚĞ WKD^Žy >ŝƐƟŶŐ Voting rights ZƵůĞƐŽƌƚŚĞƚƌĂŶƐĨĞƌǁŽƵůĚďĞŝŶĐŽŶƚƌĂǀĞŶƟŽŶŽĨƚŚĞůĂǁ͘/Ĩ ƚŚĞŝƌĞĐƚŽƌƐĚĞĐůŝŶĞƚŽƌĞŐŝƐƚĞƌĂƚƌĂŶƐĨĞƌ͕^WŵƵƐƚŐŝǀĞŶŽƟĐĞ ƚ Ă ŐĞŶĞƌĂů ŵĞĞƟŶŐ ŽĨ ƐŚĂƌĞŚŽůĚĞƌƐ͕ ĞǀĞƌLJ ŚŽůĚĞƌ ŽĨ ĨƵůůLJ ŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞŽŵƉĂŶŝĞƐĐƚĂŶĚƚŚĞWKD^Žy>ŝƐƟŶŐ ƉĂŝĚ ŽƌĚŝŶĂƌLJ ƐŚĂƌĞƐ ƉƌĞƐĞŶƚ ŝŶ ƉĞƌƐŽŶ Žƌ ďLJ ĂŶ ĂƩŽƌŶĞLJ͕ ƌƵůĞƐ͕ŐŝǀĞƚŚĞƉĂƌƚLJůŽĚŐŝŶŐƚŚĞƚƌĂŶƐĨĞƌǁƌŝƩĞŶŶŽƟĐĞŽĨƚŚĞ ƌĞƉƌĞƐĞŶƚĂƟǀĞ Žƌ ƉƌŽdžLJ ŚĂƐ ŽŶĞ ǀŽƚĞ ŽŶ Ă ƐŚŽǁ ŽĨ ŚĂŶĚƐ ƌĞĨƵƐĂůĂŶĚƚŚĞƌĞĂƐŽŶĨŽƌƌĞĨƵƐĂů͘dŚĞŝƌĞĐƚŽƌƐŵƵƐƚĚĞĐůŝŶĞ ;ƵŶůĞƐƐĂŵĞŵďĞƌŚĂƐĂƉƉŽŝŶƚĞĚƚǁŽƉƌŽdžŝĞƐͿĂŶĚŽŶĞǀŽƚĞƉĞƌ ƚŽƌĞŐŝƐƚĞƌĂƚƌĂŶƐĨĞƌŽĨƐŚĂƌĞƐǁŚĞŶƌĞƋƵŝƌĞĚďLJůĂǁ͕ďLJƚŚĞ ƐŚĂƌĞŽŶĂƉŽůů͘ WKD^Žy>ŝƐƟŶŐZƵůĞƐŽƌďLJƚŚĞWKD^ŽyƵƐŝŶĞƐƐZƵůĞƐ͘ ƉĞƌƐŽŶǁŚŽŚŽůĚƐĂƐŚĂƌĞǁŚŝĐŚŝƐŶŽƚĨƵůůLJƉĂŝĚŝƐĞŶƟƚůĞĚ͕ŽŶ Partly paid shares ĂƉŽůů͕ƚŽĂĨƌĂĐƟŽŶŽĨĂǀŽƚĞĞƋƵĂůƚŽƚŚĞƉƌŽƉŽƌƟŽŶǁŚŝĐŚƚŚĞ ĂŵŽƵŶƚƉĂŝĚďĞĂƌƐƚŽƚŚĞƚŽƚĂůŝƐƐƵĞƉƌŝĐĞŽĨƚŚĞƐŚĂƌĞ͘ dŚĞ ŝƌĞĐƚŽƌƐ ŵĂLJ͕ ƐƵďũĞĐƚ ƚŽ ĐŽŵƉůŝĂŶĐĞ ǁŝƚŚ ^W͛Ɛ ĐŽŶƐƟƚƵƟŽŶ͕ƚŚĞŽŵƉĂŶŝĞƐĐƚĂŶĚƚŚĞWKD^Žy>ŝƐƟŶŐZƵůĞƐ͕ tŚĞƌĞƚŚĞƌĞĂƌĞƚǁŽŽƌŵŽƌĞũŽŝŶƚŚŽůĚĞƌƐŽĨĂƐŚĂƌĞĂŶĚŵŽƌĞ ŝƐƐƵĞ ƉĂƌƚůLJ ƉĂŝĚ ƐŚĂƌĞƐ ƵƉŽŶ ǁŚŝĐŚ ƚŚĞƌĞ ĂƌĞ ŽƵƚƐƚĂŶĚŝŶŐ ƚŚĂŶŽŶĞŽĨƚŚĞŵŝƐƉƌĞƐĞŶƚĂƚĂŵĞĞƟŶŐĂŶĚƚĞŶĚĞƌƐĂǀŽƚĞŝŶ ĂŵŽƵŶƚƐƉĂLJĂďůĞ͘dŚĞƐĞƐŚĂƌĞƐǁŝůůŚĂǀĞůŝŵŝƚĞĚƌŝŐŚƚƐƚŽǀŽƚĞ ƌĞƐƉĞĐƚŽĨƚŚĞƐŚĂƌĞ͕ƚŚĞŽŵƉĂŶLJǁŝůůĐŽƵŶƚŽŶůLJƚŚĞǀŽƚĞĐĂƐƚ ĂŶĚƚŽƌĞĐĞŝǀĞĚŝǀŝĚĞŶĚƐ͘ ďLJƚŚĞŵĞŵďĞƌǁŚŽƐĞŶĂŵĞĂƉƉĞĂƌƐĮƌƐƚŝŶ^W͛ƐƌĞŐŝƐƚĞƌŽĨ ŵĞŵďĞƌƐ͘ Dividends Issues of further shares dŚĞŝƌĞĐƚŽƌƐŵĂLJĨƌŽŵƟŵĞƚŽƟŵĞĚĞƚĞƌŵŝŶĞĚŝǀŝĚĞŶĚƐƚŽďĞ ĚŝƐƚƌŝďƵƚĞĚƚŽŵĞŵďĞƌƐĂĐĐŽƌĚŝŶŐƚŽƚŚĞŝƌƌŝŐŚƚƐĂŶĚŝŶƚĞƌĞƐƚƐ͘ dŚĞŝƌĞĐƚŽƌƐŵĂLJ͕ŽŶďĞŚĂůĨŽĨ^W͕ŝƐƐƵĞ͕ŐƌĂŶƚŽƉƟŽŶƐŽǀĞƌ͕ dŚĞŝƌĞĐƚŽƌƐŵĂLJĮdžƚŚĞƟŵĞĨŽƌĚŝƐƚƌŝďƵƟŽŶĂŶĚƚŚĞŵĞƚŚŽĚƐ Žƌ ŽƚŚĞƌǁŝƐĞ ĚŝƐƉŽƐĞ ŽĨ ƵŶŝƐƐƵĞĚ ƐŚĂƌĞƐ ƚŽ ĂŶLJ ƉĞƌƐŽŶ ŽŶ ŽĨĚŝƐƚƌŝďƵƟŽŶ͘^ƵďũĞĐƚƚŽƚŚĞƚĞƌŵƐŽĨŝƐƐƵĞŽĨƐŚĂƌĞƐ͕ĞĂĐŚ ƚŚĞƚĞƌŵƐ͕ǁŝƚŚƚŚĞƌŝŐŚƚƐ͕ĂŶĚĂƚƚŚĞƟŵĞƐƚŚĂƚƚŚĞŝƌĞĐƚŽƌƐ ƐŚĂƌĞŝŶĂĐůĂƐƐŽĨƐŚĂƌĞƐŝŶƌĞƐƉĞĐƚŽĨǁŚŝĐŚĂĚŝǀŝĚĞŶĚŚĂƐďĞĞŶ ĚĞĐŝĚĞ͘,ŽǁĞǀĞƌ͕ƚŚĞŝƌĞĐƚŽƌƐŵƵƐƚĂĐƚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞ ĚĞĐůĂƌĞĚǁŝůůƐŚĂƌĞŝŶƚŚĞĚŝǀŝĚĞŶĚĞƋƵĂůůLJ͘ ĂĐŚƐŚĂƌĞĐĂƌƌŝĞƐ ƌĞƐƚƌŝĐƟŽŶƐŝŵƉŽƐĞĚďLJ^W͛ƐĐŽŶƐƟƚƵƟŽŶ͕ƚŚĞWKD^Žy>ŝƐƟŶŐ ƚŚĞƌŝŐŚƚƚŽƉĂƌƟĐŝƉĂƚĞŝŶƚŚĞĚŝǀŝĚĞŶĚŝŶƚŚĞƐĂŵĞƉƌŽƉŽƌƟŽŶ ZƵůĞƐ͕ ƚŚĞ ŽŵƉĂŶŝĞƐ Đƚ ĂŶĚ ĂŶLJ ƌŝŐŚƚƐ ĨŽƌ ƚŚĞ ƟŵĞ ďĞŝŶŐ ƚŚĂƚƚŚĞĂŵŽƵŶƚĨŽƌƚŚĞƟŵĞďĞŝŶŐƉĂŝĚŽŶƚŚĞƐŚĂƌĞ;ĞdžĐůƵĚŝŶŐ ĂƩĂĐŚĞĚƚŽƚŚĞƐŚĂƌĞƐŝŶĂŶLJƐƉĞĐŝĂůĐůĂƐƐŽĨƚŚŽƐĞƐŚĂƌĞƐ͘ ĂŶLJĂŵŽƵŶƚƉĂŝĚŝŶĂĚǀĂŶĐĞŽĨĐĂůůƐͿďĞĂƌƐƚŽƚŚĞƚŽƚĂůŝƐƐƵĞ ƉƌŝĐĞŽĨƚŚĞƐŚĂƌĞ͘ Variation of rights ŝǀŝĚĞŶĚ ƉĂLJŽƵƚƐ ŽǀĞƌ ƚŚĞ ůĂƐƚ Ɛŝdž LJĞĂƌƐ ĂƌĞ ĚŝƐĐůŽƐĞĚ ŝŶ ƚŚĞ ƐĐŚĞĚƵůĞŽĨ,ŝƐƚŽƌŝĐĂů&ŝŶĂŶĐŝĂůWĞƌĨŽƌŵĂŶĐĞĞůƐĞǁŚĞƌĞŝŶƚŚŝƐ hŶůĞƐƐŽƚŚĞƌǁŝƐĞƉƌŽǀŝĚĞĚďLJ^W͛ƐĐŽŶƐƟƚƵƟŽŶŽƌďLJƚŚĞƚĞƌŵƐ ŶŶƵĂůZĞƉŽƌƚ͘ ŽĨŝƐƐƵĞŽĨĂĐůĂƐƐŽĨƐŚĂƌĞƐ͕ƚŚĞƌŝŐŚƚƐĂƩĂĐŚĞĚƚŽƚŚĞƐŚĂƌĞƐŝŶ ĂŶLJĐůĂƐƐŽĨƐŚĂƌĞƐŵĂLJďĞǀĂƌŝĞĚŽƌĐĂŶĐĞůůĞĚŽŶůLJǁŝƚŚƚŚĞ Liquidation ǁƌŝƩĞŶĐŽŶƐĞŶƚŽĨƚŚĞŚŽůĚĞƌƐŽĨĂƚůĞĂƐƚƚŚƌĞĞͲƋƵĂƌƚĞƌƐŽĨƚŚĞ ŝƐƐƵĞĚƐŚĂƌĞƐŽĨƚŚĂƚĐůĂƐƐ͕ŽƌďLJƐƉĞĐŝĂůƌĞƐŽůƵƟŽŶƉĂƐƐĞĚĂƚ ^ƵďũĞĐƚ ƚŽ ƚŚĞ ƚĞƌŵƐ ŽĨ ŝƐƐƵĞ ŽĨ ƐŚĂƌĞƐ͕ ƵƉŽŶ ůŝƋƵŝĚĂƟŽŶ ĂƐĞƉĂƌĂƚĞŵĞĞƟŶŐŽĨƚŚĞŚŽůĚĞƌƐŽĨƚŚĞŝƐƐƵĞĚƐŚĂƌĞƐŽĨƚŚĞ ĂƐƐĞƚƐǁŝůůďĞĚŝƐƚƌŝďƵƚĞĚƐƵĐŚƚŚĂƚƚŚĞĂŵŽƵŶƚĚŝƐƚƌŝďƵƚĞĚƚŽ ĂīĞĐƚĞĚĐůĂƐƐ͘ ĂƐŚĂƌĞŚŽůĚĞƌŝŶƌĞƐƉĞĐƚŽĨĞĂĐŚƐŚĂƌĞŝƐĞƋƵĂů͘/ĨƚŚĞƌĞĂƌĞ ŝŶƐƵĸĐŝĞŶƚ ĂƐƐĞƚƐ ƚŽ ƌĞƉĂLJ ƚŚĞ ƉĂŝĚͲƵƉ ĐĂƉŝƚĂů͕ ƚŚĞ ĂŵŽƵŶƚ ĚŝƐƚƌŝďƵƚĞĚŝƐƚŽďĞƉƌŽƉŽƌƟŽŶĂůƚŽƚŚĞĂŵŽƵŶƚƉĂŝĚͲƵƉ͘ BSP Annual Report 2014 89 6+$5(+2/'(5,1)250$7,21 ^WƉĂƌƚŶĞƌƐǁŝƚŚWŽƌƚDŽƌĞƐďLJEĂƚƵƌĞWĂƌŬ͘ Directors Share buy backs ^W͛ƐĐŽŶƐƟƚƵƟŽŶƐƚĂƚĞƐƚŚĂƚƚŚĞŵŝŶŝŵƵŵŶƵŵďĞƌŽĨĚŝƌĞĐƚŽƌƐ ^ƵďũĞĐƚƚŽƚŚĞƉƌŽǀŝƐŝŽŶƐŽĨƚŚĞŽŵƉĂŶŝĞƐĐƚĂŶĚƚŚĞWKD^Žy ŝƐƚŚƌĞĞĂŶĚƚŚĞŵĂdžŝŵƵŵŝƐƚĞŶ͘ >ŝƐƟŶŐZƵůĞƐ͕^WŵĂLJďƵLJďĂĐŬƐŚĂƌĞƐŝŶŝƚƐĞůĨŽŶƚĞƌŵƐĂŶĚĂƚ ƟŵĞƐĚĞƚĞƌŵŝŶĞĚďLJƚŚĞŝƌĞĐƚŽƌƐ͘ Appointment of directors Officers’ indemnities ŝƌĞĐƚŽƌƐ ĂƌĞ ĞůĞĐƚĞĚ ďLJ ƚŚĞ ƐŚĂƌĞŚŽůĚĞƌƐ ŝŶ ŐĞŶĞƌĂů ŵĞĞƟŶŐ ĨŽƌĂƚĞƌŵŽĨƚŚƌĞĞLJĞĂƌƐ͘ƚĞĂĐŚŐĞŶĞƌĂůŵĞĞƟŶŐ͕ŽŶĞƚŚŝƌĚ ^W͕ƚŽƚŚĞĞdžƚĞŶƚƉĞƌŵŝƩĞĚďLJůĂǁ͕ŝŶĚĞŵŶŝĮĞƐĞǀĞƌLJŽĸĐĞƌŽĨ ŽĨƚŚĞŶƵŵďĞƌŽĨĚŝƌĞĐƚŽƌƐ;ŽƌŝĨƚŚĂƚŶƵŵďĞƌŝƐŶŽƚĂǁŚŽůĞ ^W;ĂŶĚŵĂLJŝŶĚĞŵŶŝĨLJĂŶLJĂƵĚŝƚŽƌŽĨ^WͿĂŐĂŝŶƐƚĂŶLJůŝĂďŝůŝƚLJ ŶƵŵďĞƌ͕ƚŚĞŶĞdžƚůŽǁĞƐƚǁŚŽůĞŶƵŵďĞƌͿƌĞƟƌĞďLJƌŽƚĂƟŽŶ͘dŚĞ ŝŶĐƵƌƌĞĚďLJƚŚĞƉĞƌƐŽŶ͕ŝŶƚŚĞƌĞůĞǀĂŶƚĐĂƉĂĐŝƚLJ͕ƚŽĂŶŽƚŚĞƌƉĞƌƐŽŶ ŽĂƌĚŚĂƐƚŚĞƉŽǁĞƌƚŽĮůůĐĂƐƵĂůǀĂĐĂŶĐŝĞƐŽŶƚŚĞŽĂƌĚ͕ďƵƚ ƵŶůĞƐƐƚŚĞůŝĂďŝůŝƚLJĂƌŝƐĞƐŽƵƚŽĨĐŽŶĚƵĐƚŝŶǀŽůǀŝŶŐůĂĐŬŽĨŐŽŽĚĨĂŝƚŚ͘ ĂĚŝƌĞĐƚŽƌƐŽĂƉƉŽŝŶƚĞĚŵƵƐƚƌĞƟƌĞĂƚƚŚĞŶĞdžƚĂŶŶƵĂůŵĞĞƟŶŐ͘ ^WŵĂLJĂůƐŽŵĂŬĞĂƉĂLJŵĞŶƚŝŶƌĞůĂƟŽŶƚŽůĞŐĂůĐŽƐƚƐŝŶĐƵƌƌĞĚ Powers of the Board ďLJƚŚĞƐĞƉĞƌƐŽŶƐŝŶĚĞĨĞŶĚŝŶŐĂŶĂĐƟŽŶĨŽƌĂůŝĂďŝůŝƚLJ͕ŽƌƌĞƐŝƐƟŶŐ ŽƌƌĞƐƉŽŶĚŝŶŐƚŽĂĐƟŽŶƐƚĂŬĞŶďLJĂŐŽǀĞƌŶŵĞŶƚĂŐĞŶĐLJŽƌĂ džĐĞƉƚ ĂƐ ŽƚŚĞƌǁŝƐĞ ƌĞƋƵŝƌĞĚ ďLJ ƚŚĞ ŽŵƉĂŶŝĞƐ Đƚ͕ ĂŶLJ ůŝƋƵŝĚĂƚŽƌ͘ ŽƚŚĞƌůĂǁ͕ƚŚĞWKD^Žy>ŝƐƟŶŐZƵůĞƐŽƌ^W͛ƐĐŽŶƐƟƚƵƟŽŶ͕ƚŚĞ ŝƌĞĐƚŽƌƐŚĂǀĞƉŽǁĞƌƚŽŵĂŶĂŐĞƚŚĞďƵƐŝŶĞƐƐŽĨ^WĂŶĚŵĂLJ ĞdžĞƌĐŝƐĞĞǀĞƌLJƌŝŐŚƚ͕ƉŽǁĞƌŽƌĐĂƉĂĐŝƚLJŽĨ^WƚŽƚŚĞĞdžĐůƵƐŝŽŶ ŽĨƚŚĞŵĞŵďĞƌƐ͘ 90 BSP Annual Report 2014 6+$5(+2/'(5,1)250$7,21 Twenty largest registered fully paid ordinary shareholders ƚƚŚĞϯϭĞĐĞŵďĞƌϮϬϭϰ͕ƚŚĞƚǁĞŶƚLJůĂƌŐĞƐƚƌĞŐŝƐƚĞƌĞĚĨƵůůLJƉĂŝĚƐŚĂƌĞŚŽůĚĞƌƐŽĨƚŚĞŽŵƉĂŶLJǁĞƌĞ͗ Share Held й 1 /ŶĚĞƉĞŶĚĞŶƚWƵďůŝĐƵƐŝŶĞƐƐŽƌƉŽƌĂƟŽŶ ϴϰ͕ϯϭϭ͕ϱϵϳ ϭϴ͘Ϭϭ Ϯ EĂŵďĂǁĂŶ^ƵƉĞƌ>ŝŵŝƚĞĚ ϱϳ͕ϱϵϬ͕ϳϲϭ ϭϮ͘ϯϬ ϯ WĞƚƌŽůĞƵŵZĞƐŽƵƌĐĞƐ<ƵƚƵďƵ>ŝŵŝƚĞĚ ϰϲ͕ϭϱϯ͕ϴϰϬ ϵ͘ϴϲ ϰ EĂƟŽŶĂů^ƵƉĞƌĂŶŶƵĂƟŽŶ&ƵŶĚ ϰϱ͕ϯϭϴ͕ϰϭϳ ϵ͘ϲϴ ϱ ƌĞĚŝƚŽƌƉŽƌĂƟŽŶ;WE'Ϳ>ŝŵŝƚĞĚ ϯϲ͕Ϯϵϲ͕ϵϴϮ ϳ͘ϳϲ ϲ DŽƚŽƌsĞŚŝĐůĞƐ/ŶƐƵƌĂŶĐĞ>ŝŵŝƚĞĚ ϯϭ͕Ϯϰϯ͕ϳϯϲ ϲ͘ϲϳ ϳ WE'^ƵƐƚĂŝŶĂďůĞĞǀĞůŽƉŵĞŶƚWƌŽŐƌĂŵ>ŝŵŝƚĞĚ Ϯϵ͕ϮϬϮ͕ϳϲϳ ϲ͘Ϯϰ ϴ /&ĂƉŝƚĂůŝƐĂƟŽŶ; ƋƵŝƚLJͿ&ƵŶĚ>W ϮϮ͕ϳϵϲ͕ϲϰϰ ϰ͘ϴϳ ϵ /ŶƚĞƌŶĂƟŽŶĂů&ŝŶĂŶĐĞŽƌƉŽƌĂƟŽŶ ϮϮ͕ϳϵϲ͕ϲϰϰ ϰ͘ϴϳ ϭϬ dĞĂĐŚĞƌƐ^ĂǀŝŶŐƐĂŶĚ>ŽĂŶƐ^ŽĐŝĞƚLJ>ŝŵŝƚĞĚ ϭϱ͕ϯϭϳ͕ϯϲϲ ϯ͘Ϯϳ ϭϭ ŽŵƌĂĚĞdƌƵƐƚĞĞ^ĞƌǀŝĐĞƐ>ŝŵŝƚĞĚ ϭϰ͕ϰϱϲ͕ϬϱϮ ϯ͘Ϭϵ ϭϮ >ĂŵŝŶdƌƵƐƚ&ƵŶĚ ϯ͕ϱϭϴ͕ϭϯϮ Ϭ͘ϳϱ ϭϯ ĂƉŝƚĂůEŽŵŝŶĞĞƐ>ŝŵŝƚĞĚ ϯ͕ϭϬϰ͕ϵϴϵ Ϭ͘ϲϲ ϭϰ ƌĞĚŝƚŽƌƉŽƌĂƟŽŶ;WE'Ϳ>ƚĚ;&ŝŶĂŶĐĞ>ƚĚͿ ϯ͕ϬϬϬ͕ϬϬϬ Ϭ͘ϲϰ ϭϱ DŝŶĞƌĂůZĞƐŽƵƌĐĞƐK<dĞĚŝEŽ͘Ϯ>ŝŵŝƚĞĚ Ϯ͕ϴϵϬ͕ϬϬϬ Ϭ͘ϲϮ ϭϲ ^ŽůŽŵŽŶ/ƐůĂŶĚƐEĂƟŽŶĂůWƌŽǀŝĚĞŶƚ&ƵŶĚŽĂƌĚ Ϯ͕ϱϬϬ͕ϬϬϭ Ϭ͘ϱϯ ϭϳ EŽŵŝŶĞĞƐEŝƵŐŝŶŝ>ŝŵŝƚĞĚ Ϯ͕ϯϲϵ͕ϰϵϱ Ϭ͘ϱϭ ϭϴ ĂƚŚŽůŝĐŝŽĐĞƐĞŽĨ<ƵŶĚŝĂǁĂ Ϯ͕ϭϲϱ͕ϲϴϴ Ϭ͘ϰϲ ϭϵ ^ŽƵƚŚĞƌŶ,ŝŐŚůĂŶĚƐWƌŽǀŝŶĐŝĂů'ŽǀĞƌŶŵĞŶƚ Ϯ͕ϬϬϬ͕ϬϬϬ Ϭ͘ϰϯ ϮϬ DŝŶĞƌĂůZĞƐŽƵƌĐĞƐ^ƚĂƌDŽƵŶƚĂŝŶƐ>ƚĚ ϭ͕ϵϳϱ͕ϳϵϵ Ϭ͘ϰϮ KƚŚĞƌƐŚĂƌĞŚŽůĚĞƌƐ ϯϵ͕ϭϮϯ͕ϰϵϱ ϴ͘ϯϲ 468,132,405 100.00 Distribution of Shareholding ƚƚŚĞϯϭĞĐĞŵďĞƌϮϬϭϰ͕ƚŚĞŽŵƉĂŶLJŚĂĚϲ͕ϯϴϳƐŚĂƌĞŚŽůĚĞƌƐ͘dŚĞĚŝƐƚƌŝďƵƟŽŶŽĨƐŚĂƌĞŚŽůĚŝŶŐƐŝƐĂƐĨŽůůŽǁƐ͗ ZĂŶŐĞ;ŶƵŵďĞƌͿ Number of Shareholders Number of Shares ϭͲϭ͕ϬϬϬ ϱ͕ϯϳϱ ϭ͕ϯϲϰ͕ϴϱϱ ϭ͕ϬϬϭͲϱ͕ϬϬϬ ϲϲϱ ϭ͕ϯϲϳ͕ϭϬϰ ϱ͕ϬϬϭͲϭϬ͕ϬϬϬ ϭϬϬ ϳϬϯ͕ϲϭϬ ϭϬ͕ϬϬϭͲϭϬϬ͕ϬϬϬ ϭϲϯ ϱ͕ϴϲϴ͕ϬϭϬ ϭϬϬ͕ϬϬϭĂŶĚĂďŽǀĞ ϴϰ ϰϱϴ͕ϴϮϴ͕ϴϮϲ ϲ͕ϯϴϳ 468,132,405 BSP Annual Report 2014 91 6+$5(+2/'(5,1)250$7,21 Employee Share Scheme ^WƌĞƐŽůǀĞĚŽŶϮϳDĂLJϮϬϬϰƚŚĂƚĂŵĂdžŝŵƵŵŽĨϭйŽĨƚŚĞƚŽƚĂůŶƵŵďĞƌŽĨƐŚĂƌĞƐŚĞůĚŝŶ^WŵĂLJďĞĂůůŽĐĂƚĞĚƚŽĞŵƉůŽLJĞĞƐĞĂĐŚ LJĞĂƌĂƚĚŝƐĐƌĞƟŽŶŽĨƚŚĞŽĂƌĚ͘ Interest in shares in the Bank ŝƌĞĐƚŽƌƐŚŽůĚƚŚĞĨŽůůŽǁŝŶŐƐŚĂƌĞƐŝŶƚŚĞĂŶŬ͗ Director Shares Held % d͘ ͘&Ždž ϰϰ͕ϳϰϰ Ϭ͘ϬϬ 'ĞƌĞĂŽƉŝ ϭϬ͕ϬϬϬ Ϭ͘ϬϬ Z&ůĞŵŝŶŐ ϵϯ͕ϬϬϬ Ϭ͘ϬϬ Registered Office Share Registry Website ĂŶŬŽĨ^ŽƵƚŚWĂĐŝĮĐ>ŝŵŝƚĞĚ WE'ZĞŐŝƐƚƌŝĞƐ>ŝŵŝƚĞĚ ǁǁǁ͘ďƐƉ͘ĐŽŵ͘ƉŐ WKŽdžϳϴ͕WKŽdžϭϮϲϱ͕ WKZdDKZ ^zWKZdDKZ ^z EĂƟŽŶĂůĂƉŝƚĂůŝƐƚƌŝĐƚEĂƟŽŶĂůĂƉŝƚĂůŝƐƚƌŝĐƚ WWhE t'h/E WWhE t'h/E dĞůĞƉŚŽŶĞ͗нϲϳϱϯϮϮϵϳϬϬdĞůĞƉŚŽŶĞ͗нϲϳϱϯϮϭϲϯϳϳ Home Exchange for BSP Shares Home Exchange for BSP Convertible Notes WŽƌƚDŽƌĞƐďLJ^ƚŽĐŬ džĐŚĂŶŐĞ>ƚĚ;WKD^KyͿ ^ŽƵƚŚWĂĐŝĮĐ^ƚŽĐŬ džĐŚĂŶŐĞ WKŽdžϭϱϯϭ 'WKŽdžϭϭϲϴϵ WKZdDKZ ^z^hs EĂƟŽŶĂůĂƉŝƚĂůŝƐƚƌŝĐƚ&/:/ WWhE t'h/E dĞůĞƉŚŽŶĞ͗нϲϳϵϯϯϬϰϭϯϬ dĞůĞƉŚŽŶĞ͗нϲϳϱϯϮϬϭϵϴϬ 92 BSP Annual Report 2014 ',5(&7256·,1)250$7,21 Directors’ Information Name Nature of Interest <͘ŽŶƐƚĂŶƟŶŽƵ͕K Director ĂŶŬŽĨ^ŽƵƚŚWĂĐŝĮĐ>ƚĚϭ͕^WĂƉŝƚĂů>ƚĚϭ͕ŝƌǁĂLJƐ,ŽƚĞůΘƉĂƌƚŵĞŶƚ >ƚĚ͕>ĂŵĂŶĂ,ŽƚĞů>ƚĚ͕>ĂŵĂŶĂĞǀĞůŽƉŵĞŶƚ>ƚĚ͕,ĞďŽƵŽŶƐƚƌƵĐƟŽŶƐ >ƚĚ͕,ĞƌŝƚĂŐĞWĂƌŬ,ŽƚĞů>ƚĚ͕'ĂnjĞůůĞ/ŶƚĞƌŶĂƟŽŶĂů,ŽƚĞů>ƚĚ͕Kŝů^ĞĂƌĐŚ >ƚĚ͕ůŽƚĂƵ/ŶƚĞƌŶĂƟŽŶĂů,ŽƚĞů>ƚĚ͕<ŝŵďĞĂLJ,ŽƚĞů>ƚĚ͕'ƌĂŶĚWĂĐŝĮĐ ,ŽƚĞů>ƚĚ͕ŝƚLJĞŶƚƌĞĞǀĞůŽƉŵĞŶƚ>ƚĚ͕ŽĂƐƚǁĂƚĐŚĞƌƐŽƵƌƚ>ƚĚ͕ tĂŝŐĂŶŝƐƐĞƚƐ>ƚĚ͕^ŽƵƚŚĞƌŶ^ĞĂƐ/ŶǀĞƐƚŵĞŶƚƐ>ƚĚ͕dĞdžĂƐŚŝĐŬĞŶ^ŽƵƚŚ WĂĐŝĮĐ>ƚĚ͘^W&ŝŶĂŶĐĞ>ƚĚ͕^W&ŝŶĂŶĐĞ;WE'Ϳ>ƚĚ͘ Shareholder ŝƌǁĂLJƐ,ŽƚĞůΘƉĂƌƚŵĞŶƚ>ƚĚ͕>ĂŵĂŶĂ,ŽƚĞů>ƚĚ͕>ĂŵĂŶĞǀĞůŽƉŵĞŶƚ >ƚĚ͕dĞdžĂƐŚŝĐŬĞŶ^ŽƵƚŚWĂĐŝĮĐ>ƚĚ͘ Member ƵƐƚƌĂůŝĂŶ/ŶƐƟƚƵƚĞŽĨŽŵƉĂŶLJŝƌĞĐƚŽƌƐ͕WE'/ŶƐƟƚƵƚĞŽĨŝƌĞĐƚŽƌƐ͕ WĂĐŝĮĐ'ĂŵĞƐƵƚŚŽƌŝƚLJϭ͕ϲ͘ŶŐůŝĐĂƌĞ&ŽƵŶĚĂƟŽŶϭ͘ d͘ ͘&Ždž͕K ͕ Đ Director ĂŶŬŽĨ^ŽƵƚŚWĂĐŝĮĐ>ƚĚϮ͕^WĂƉŝƚĂů>ƚĚ͕dĞLJŽEŽ͘ϭ>ƚĚϱ͕ŬƵƌĂ>ƚĚ͕ ^W>ŝĨĞ;&ŝũŝͿ>ƚĚ͕^W&ŝŶĂŶĐĞ;&ŝũŝͿ>ƚĚ͕&ƵƚƵƌĞ&ĂƌŵƐ>ƚĚ͕&ĞĞů'ŽŽĚ /ŶǀĞƐƚŵĞŶƚƐ>ƚĚ͘ Shareholder ĂŶŬŽĨ^ŽƵƚŚWĂĐŝĮĐ>ƚĚ͕dĞLJŽEŽ͘ϭ>ƚĚ͕&ĞĞů'ŽŽĚ/ŶǀĞƐƚŵĞŶƚ>ƚĚĂŶĚ ŬƵƌĂ>ƚĚ͘ Trustee/Member /ŶƐƟƚƵƚĞŽĨEĂƟŽŶĂůīĂŝƌƐϴ͕WE'/ŶƐƟƚƵƚĞŽĨŝƌĞĐƚŽƌƐ͘ Z͘&ůĞŵŝŶŐ͕D͕DD'd Director ĂŶŬŽĨ^ŽƵƚŚWĂĐŝĮĐ>ƚĚϵ͕^WĂƉŝƚĂů>ƚĚ͕^WŽŶǀĞƌƟďůĞEŽƚĞƐ>ƚĚ͕ ^WZƵƌĂů>ƚĚ͕^W>ŝĨĞ;&ŝũŝͿ>ƚĚ͕^WĂƉŝƚĂů>ƚĚ͕^WĂƉŝƚĂů^ĞĐƵƌŝƟĞƐ >ƚĚ͕ĂƉŝƚĂůEŽŵŝŶĞĞƐ>ƚĚ͕^WEŽŵŝŶĞĞƐ>ƚĚ͕DĂůĂŐĂŶ>ƚĚ͕ĂƌƉĂƌŬ >ƚĚ͕^W&ŝŶĂŶĐĞ>ƚĚ͕^W&ŝŶĂŶĐĞ;WE'Ϳ>ƚĚ͕^W&ŝŶĂŶĐĞ;&ŝũŝͿ>ƚĚ͕^W ^ĞƌǀŝĐĞƐ;&ŝũŝͿ>ƚĚ͕^W,ĞĂůƚŚĂƌĞ;&ŝũŝͿ>ƚĚ͕ƌĞĚŝƚΘĂƚĂƵƌĞĂƵ>ƚĚ Shareholder ĂŶŬŽĨ^ŽƵƚŚWĂĐŝĮĐ>ƚĚ͘ Trustee/Member ƵƐƚƌĂůŝĂŶ/ŶƐƟƚƵƚĞŽĨŽŵƉĂŶLJŝƌĞĐƚŽƌƐ͕WE'/ŶƐƟƚƵƚĞŽĨŝƌĞĐƚŽƌƐ͕ ŶŐůŝĐĂƌĞ&ŽƵŶĚĂƟŽŶ͘ '͘ŽƉŝ͕ ͕D Director ĂŶŬŽĨ^ŽƵƚŚWĂĐŝĮĐ>ƚĚ͕Kŝů^ĞĂƌĐŚ>ƚĚϳ͕^ƚĞĂŵƐŚŝƉƐdƌĂĚŝŶŐŽ>ƚĚ͕ WKD^Žy>ƚĚ͕DĂƌƐŚ>ƚĚ͕,ŝƌĂĚ>ƚĚ͕tĂŚŝŶĞŵŽ>ƚĚ͕&DDŽƌŽďĞ>ƚĚ͕/ &ŽƵŶĚĂƟŽŶ͘ Shareholder ĂŶŬŽĨ^ŽƵƚŚWĂĐŝĮĐ>ƚĚ͕Kŝů^ĞĂƌĐŚ>ƚĚϳ͕,ŝƌĂĚ>ƚĚ͕tĂŚŝŶĞŵŽ>ƚĚ͕ EĞǁĐƌĞƐƚ>ƚĚ͕,ŝŐŚůĂŶĚƐWĂĐŝĮĐ>ƚĚ͕DĞůĂŶĞƐŝĂŶdƌƵƐƚĞĞƐ;/WE'Ϳ͕ <ƵŵƵůƐƐĞƚDĂŶĂŐĞŵĞŶƚ͘ Member/Trustee /ŶƐƟƚƵƚĞŽĨEĂƟŽŶĂůīĂŝƌƐ͕ƵƐŝŶĞƐƐŽƵŶĐŝůŽĨWE'͕WE'ŚĂŵďĞƌ ŽĨDŝŶĞƐΘWĞƚƌŽůĞƵŵ͕Kŝů^ĞĂƌĐŚ,ĞĂůƚŚ&ŽƵŶĚĂƟŽŶ͕WE'ĂŶĐĞƌ &ŽƵŶĚĂƟŽŶϭ͘ ƌ͘/͘dĞŵƵ͕WŚ͕D Đ Director ĂŶŬŽĨ^ŽƵƚŚWĂĐŝĮĐ>ƚĚ͕dĞůĞŵƵ>ƚĚ͕<ŝŶĂWĞƚƌŽůĞƵŵ>ƚĚ͕EĂƟŽŶĂů WĞƚƌŽůĞƵŵŽŵƉĂŶLJ>ƚĚ͕^ĂǀŝͲdĞĐ>ƚĚ͘ Shareholder dĞůƐƚƌĂ>ƚĚ͕EĂƵƟůƵƐDŝŶĞƌĂůƐEŝƵŐŝŶŝ>ƚĚ͘ Employee ĂƌƌŝĐŬ'ŽůĚ>ƚĚ͘ Member ŝǀŝŶĞtŽƌĚhŶŝǀĞƌƐŝƚLJ͘ ͘͘WƌŽĐƚĞƌ͕D Đ͕&&ŝŶ Director ĂŶŬŽĨ^ŽƵƚŚWĂĐŝĮĐ>ƚĚ͕^WĂƉŝƚĂů>ƚĚ͕^ƵŶ,ƵŶŐ<Ăŝ>ƚĚ͕ůůŝĞĚ ;ZĞƐŝŐŶĞĚϮϰDĂLJϮϬϭϰͿ KǀĞƌƐĞĂƐ>ƚĚ͕ ƵƌŽŐŽůĚ>ƚĚ͕dĂŶĂŵŝ'ŽůĚE>͘ Member ƵƐƚƌĂůŝĂŶ/ŶƐƟƚƵƚĞŽĨŽŵƉĂŶLJŝƌĞĐƚŽƌƐ͘ BSP Annual Report 2014 93 ',5(&7256·,1)250$7,21 Name Nature of Interest ^ŝƌE͘ŽŐĂŶ͕< ͕>> Director ĂŶŬŽĨ^ŽƵƚŚWĂĐŝĮĐ>ƚĚ͕/ŶdŽƵĐŚDĞĚŝĂ>ƚĚϭ͕ŽƉƌĞnjŽŵŵƵŶŝĐĂƟŽŶƐ >ƚĚϭ͕ŽƉƌĞnj,ŽůĚŝŶŐƐ>ƚĚ͕DĂƉĂŝdƌĂŶƐƉŽƌƚ>ƚĚ͕Śŝ,ŽůĚŝŶŐƐ>ƚĚ͘ Shareholder /ŶdŽƵĐŚDĞĚŝĂ>ƚĚ͕ŽƉƌĞnj,ŽůĚŝŶŐƐ>ƚĚ͘ Member ŚĂŶĐĞůůŽƌhŶŝǀĞƌƐŝƚLJŽĨdĞĐŚŶŽůŽŐLJ͕WE'dĂdžZĞǀŝĞǁŽŵŵŝƩĞĞϭ '͘ZŽďď͕͕D͕KD Director ĂŶŬŽĨ^ŽƵƚŚWĂĐŝĮĐ>ƚĚ͕^WĂƉŝƚĂů>ƚĚ͘ Member ƵƐƚƌĂůŝĂŶ/ŶƐƟƚƵƚĞŽĨŽŵƉĂŶLJŝƌĞĐƚŽƌƐ͘ &͘dĂůĂŽ͕>>D Director ĂŶŬŽĨ^ŽƵƚŚWĂĐŝĮĐ>ƚĚ͕^W&ŝŶĂŶĐĞ>ƚĚ͕^W&ŝŶĂŶĐĞ;WE'Ϳ>ƚĚ͘ Member džƚĞƌŶĂů^ƚĂŬĞŚŽůĚĞƌƐĚǀŝƐŽƌLJWĂŶĞůƚŽDŽƌŽďĞDŝŶŝŶŐ:ŽŝŶƚsĞŶƚƵƌĞ͕ ƵƐƚƌĂůŝĂŶ/ŶƐƟƚƵƚĞŽĨŽŵƉĂŶLJŝƌĞĐƚŽƌƐ͘ ͘͘'ĂŶŐůŽī͕W͕'/ Director ĂŶŬŽĨ^ŽƵƚŚWĂĐŝĮĐ>ƚĚ͕'ĂŶŐůŽīŽŶƐƵůƟŶŐ>ƚĚ͕>ĂƵƌĂďĂĚĂ/ŶǀĞƐƚŵĞŶƚƐ >ƚĚ͕ ŽƌŶĞŽ WŚĂƌŵĂĐĞƵƟĐĂůƐ >ƚĚ͕ EĞǁ ƌŝƚĂŝŶ WĂůŵ Kŝů >ƚĚ͕ ƵďĂƌĂ ,ŽůĚŝŶŐƐ>ƚĚ͕^ŝƌdŚĞŽƉŚŝůƵƐŽŶƐƚĂŶƟŶŽƵ&ŽƵŶĚĂƟŽŶ͘^W&ŝŶĂŶĐĞ;&ŝũŝͿ >ƚĚ͘ Member WE'/ŶƐƟƚƵƚĞŽĨŝƌĞĐƚŽƌƐ͕ĞƌƟĮĞĚWƌĂĐƟĐŝŶŐĐĐŽƵŶƚĂŶƚƐŽĨWĂƉƵĂ EĞǁ'ƵŝŶĞĂ͕ƵƐŝŶĞƐƐŽƵŶĐŝůŽĨWE'͕/ŶƐƟƚƵƚĞŽĨEĂƟŽŶĂůīĂŝƌƐ͕ ƵƐƚƌĂůŝĂŶ/ŶƐƟƚƵƚĞŽĨŽŵƉĂŶLJŝƌĞĐƚŽƌƐ͘ ͘DĂŶŽ͕ ĐŽŶ͕D^Đ͘ Director ĂŶŬŽĨ^ŽƵƚŚWĂĐŝĮĐ>ƚĚ͕DŝŶĞƌĂůZĞƐŽƵƌĐĞƐĞǀĞůŽƉŵĞŶƚŽŵƉĂŶLJ ;ƉƉŽŝŶƚĞĚϮϵƵŐƵƐƚϮϬϭϰͿ >ŝŵŝƚĞĚϯ͕WĞĂƌůZĞƐŽƌƚ;&ŝũŝͿ>ƚĚϭ͕^ƉĞĞĚLJ,ĞƌŽ>ŝŵŝƚĞĚϭ͕/ŶƐƵƌĂŶĐĞWĂĐŝĮĐ >ŝŵŝƚĞĚϭ͕ŝǀƉĂĐ>ƚĚϭ͕,ĂŶĚLJ'ƌŽƵƉ>ƚĚϭ͕^D/ŶǀĞƐƚŵĞŶƚƐ>ƚĚϭ,Ğǀŝ>ŝŌ 'ƌŽƵƉ>ŝŵŝƚĞĚ͕ŝƌůŝŶĞƐWE'>ƚĚ͕>ĞŝƐƵƌĞ,ŽůŝĚĂLJƐ>ƚĚ͕'ŽďĞ&ƌĞŝŐŚƚ >ƚĚ͕DŝŶĞƌĂůZĞƐŽƵƌĐĞKŬdĞĚŝ>ƚĚ͕DŝŶĞƌĂůZĞƐŽƵƌĐĞƐ^ƚĂƌDŽƵŶƚĂŝŶ >ƚĚ͕WĞƚƌŽůĞƵŵZĞƐŽƵƌĐĞƐ<ƵƚƵďƵ>ƚĚ͕WĞƚƌŽůĞƵŵZĞƐŽƵƌĐĞƐDŽƌĂŶ >ƚĚ͕WĞƚƌŽůĞƵŵZĞƐŽƵƌĐĞƐ'ŽďĞ>ƚĚ͕DŝŶĞƌĂůWĞƚƌŽůĞƵŵZĞƐŽƵƌĐĞƐ DĂĚĂŶŐ>ƚĚ͕DŝŶĞƌĂůZĞƐŽƵƌĐĞƐZĂŵƵ>ƚĚ͕'ĂƐZĞƐŽƵƌĐĞƐ,ŝĚĞƐ>ƚĚ͕ 'ĂƐZĞƐŽƵƌĐĞƐ,ŝĚĞƐϰ>ƚĚ͕'ĂƐZĞƐŽƵƌĐĞŶŐŽƌĞ>ƚĚ͕'ĂƐZĞƐŽƵƌĐĞ :ƵŚĂ>ƚĚ͘ Shareholder ^D/ŶǀĞƐƚŵĞŶƚƐ>ŝŵŝƚĞĚ͘/E^W>ŝŵŝƚĞĚ͘ Member DĞŶĚŝDƵƌƵŬƐZƵŐďLJ>ĞĂŐƵĞŽŵŵŝƩĞĞ͕WĂƚƌŽŶ^,WƵůƚƵƌĂů^ŚŽǁ ^ŽĐŝĞƚLJ͕ŚĂŵďĞƌŽĨDŝŶĞƐΘWĞƚƌŽůĞƵŵ͘ 1Chairman, 2Deputy Chairman, 3Managing Director, 4 džĞĐƵƟǀĞŝƌĞĐƚŽƌ͕7General Manager, 8Councillor 5ŽŵƉĂŶLJŝƐƐŚĂƌĞŚŽůĚĞƌŽĨĂŶŬŽĨ^ŽƵƚŚWĂĐŝĮĐ>ŝŵŝƚĞĚ͕ŽƌƐŚĂƌĞŚŽůĚĞƌŽĨĐŽŵƉĂŶLJƚŚĂƚŝƐƐŚĂƌĞŚŽůĚĞƌ 6ŽŵƉĂŶLJŚĂƐĐŽŵŵĞƌĐŝĂůďĂŶŬŝŶŐĨĂĐŝůŝƟĞƐǁŝƚŚĂŶŬŽĨ^ŽƵƚŚWĂĐŝĮĐ>ŝŵŝƚĞĚ͕9ŚŝĞĨ džĞĐƵƟǀĞKĸĐĞƌ 94 BSP Annual Report 2014 'ƌŽƵƉĚŝƐĐƵƐƐŝŽŶĚƵƌŝŶŐƚŚĞ>ĞĂĚĞƌƐŚŝƉ&ŽƌƵŵŝŶϮϬϭϰ͘ MANAGEMENT CHAIRMAN’S TEAMS & DIRECTORIESREPORT BSP Annual Report 2014 95 0$1$*(0(177($06 BSP SENIOR MANAGEMENT Standing (L-R): ,ĂƌŽŽŶůŝŚŝĞĨZŝƐŬKĸĐĞƌ WĂƵůdŚŽƌŶƚŽŶ'DZĞƚĂŝůĂŶŬŝŶŐ ĚǁĂƌĚZƵŚĂŚŝĞĨ&ŝŶĂŶĐŝĂůKĸĐĞƌͲWE' 'ŝĂƵƵƌƵďĂ'D,ƵŵĂŶZĞƐŽƵƌĐĞƐ WĞƚĞƌĞƐǁŝĐŬ'DŽƌƉŽƌĂƚĞĂŶŬŝŶŐ ZŝĐŚĂƌĚŽƌLJƐŝĞǁŝĐnj'D^WĂƉŝƚĂů Seated (L-R): ŚŽĂůŝŬŝ͕K 'DWĂƌĂŵŽƵŶƚ ZŽďĞƌƚ>ŽŐŐŝĂŚŝĞĨKƉĞƌĂƟŶŐKĸĐĞƌ ZŽďŝŶ&ůĞŵŝŶŐŚŝĞĨ džĞĐƵƟǀĞKĸĐĞƌ :ŽŚŶƐŽŶ<ĂůŽ KͬŚŝĞĨ&ŝŶĂŶĐŝĂůKĸĐĞƌ BSP FINANCE (PNG) Standing (L-R): ^ƚĞƉŚĞŶdĂĞƌĂ^ĞŶŝŽƌ>ĞŶĚŝŶŐKĸĐĞƌ;WKDͿ :ŽĚŝ,ĞƌďĞƌƚŽƵŶƚƌLJDĂŶĂŐĞƌ 'ĞŽƌŐĞtŝůůŝĞDĂŶĂŐĞƌ&ŝŶĂŶĐĞΘKƉĞƌĂƟŽŶƐ ĂƌďĂƌĂdŽůĂŐĞƚDĂŶĂŐĞƌ>ĞŶĚŝŶŐ^ƵƉƉŽƌƚ BSP CAPITAL Seated (L-R): 'ĞƌůŝĞdĂŶĂ^ĞŶŝŽƌ^LJƐƚĞŵƐĚŵŝŶŝƐƚƌĂƚŽƌ zŽŬŝŶ<ŝƉŝĞ,ĞĂĚŽĨKƉĞƌĂƟŽŶƐ dŚĞƌĞƐĂ<ĂůŝǀĂŬŽLJŽƵƐŝŶĞƐƐŽŶƚƌŽůůĞƌ Standing (L-R): 'ŚĞŶŽDŝŶŝĂ,ĞĂĚŽĨ ƋƵŝƟĞƐ ZŝĐŚĂƌĚŽƌLJƐŝĞǁŝĐnj'ĞŶĞƌĂůDĂŶĂŐĞƌ tŝůůŝĞ<ŽŶŐĂDĂŶĂŐĞƌ&ƵŶĚƐDĂŶĂŐĞŵĞŶƚ /ŐŽŽƵŶĂDĂŶĂŐĞƌ/d 96 BSP Annual Report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nnual Report 2014 97 31*%5$1&+0$1$*(0(17 0(&..$80 181,.8/8 58%<$5$%(//$3$78 3(7(57,.27 48,//,$1121*, 5,7$6,1*87 0RUR $UHD0DQDJHU $UDZD .LPEH /RUHQJDX .XQGLDZD 6RXWKHUQ 52%,16213$1$.2 58%(1(/,-$+ 6,%21$.(0$ 67$1(5':$, 68<$<23$+$)2 7+(5(6$3,/$03 .RNRSR $UHD0DQDJHU 9LVLRQ&LW\ $UHD0DQDJHU1&' 3RUJHUD :DEDJ +LJKODQGV 7+20$67(0%,/ 721<:$1,1*8 .LXQJD 7DEXELO 98 BSP Annual Report 2014 %5$1&+',5(&725< PAPUA NEW GUINEA ------LAE COMMERCIAL ϰϳϴϰϵϮϮ WAIGANI BANKING CENTRE ϯϬϬϵϲϬϬ AITAPE Ϯϳϲϴϲϱϵ ƌĂŶĐŚDĂŶĂŐĞƌ :ŽƐĞƉŚtĂƐ ƌĂŶĐŚDĂŶĂŐĞƌ :ĞīĞƌLJ^ŝŶŐĞƌ ƌĂŶĐŚDĂŶĂŐĞƌ ůĞdžtĂĮŵďŝ Premium Centre ϰϳϴϰϵϮϯ tĞŶĚLJWŽŬĂ Premium Centre ϯϬϬϵϲϰϱ ------BSP First ϰϳϴϰϵϮϵͬϰϳϴϰϵϯϬ ALOTAU ϲϰϭϭϮϴϰ >ŽƌƌĂŝŶĞ^ŝĂŽĂ DŽŶĂdĞůŽƟ ------ƌĂŶĐŚDĂŶĂŐĞƌ ĞŶhŵďĂ ------WAIGANI DRIVE ϯϬϮϱϯϬϭ LAE MARKET ϰϳϯϵϲϬϲ ƌĂŶĐŚDĂŶĂŐĞƌ DĂƚŚŝĂƐDĂŶŽǁŽ ARAWA ϮϳϲϵϮϰϰ ƌĂŶĐŚDĂŶĂŐĞƌ :ŽƐĞƉŚŝŶĞ<ŽŵŽƌƵ ƌĂŶĐŚDĂŶĂŐĞƌ ZƵďƵ͘WĂƚƵ ------WATERFRONT PLACE ϯϬϱϲϰϬϴ ------LIHIR ϵϴϲϰϬϱϮ BIALLA ϵϴϯϭϬϵϱ ƌĂŶĐŚDĂŶĂŐĞƌ ůĞƐĂŶĂŝŚŝ ƌĂŶĐŚDĂŶĂŐĞƌ <ĂůĂƚdŝƌŝŵĂŶ ------ƌĂŶĐŚDĂŶĂŐĞƌ DĂƌLJ<Žŝ ------WEWAK ϰϱϲϮϯϰϰ LORENGAU ϵϳϬϵϬϱϬ ƌĂŶĐŚDĂŶĂŐĞƌ ůďĞƌƚ^Ğƌŝ BOROKO ϯϬϯϰϯϮϬ ƌĂŶĐŚDĂŶĂŐĞƌ YƵŝůůĂŶEŽŶŐŝ ƌĂŶĐŚDĂŶĂŐĞƌ DĂƵƌĞĞŶtĂŶƵ ------Premium Centre ϯϬϯϰϯϱϰ MADANG ϰϮϮϮϰϳϳ SUB-BRANCHES ^ŚĞŝůĂ:ŽŚŶ ƌĂŶĐŚDĂŶĂŐĞƌ :ŽŚŶĂƐĂŶƵ AIYURA ϳϮϯϬϴϯϭϯ ------Premium Centre ϰϮϮϮϲϮϭ ƌŝďŝĂůďĞƌƚ BSP Harbour City ϯϬϱϲϭϴϵ ŚƌŝƐƟŶĞDĞƐ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ƌĂŶĐŚDĂŶĂŐĞƌ ůĞdž<ƵŶĂ ------BANZ ϳϭϬϬϵϬϳϴ Premium Centre ϯϬϱϲϭϴϵ MENDI ϱϰϵϭϬϳϬ ĂƵ<ŝƐŽƌĂŶĐŚDĂŶĂŐĞƌ ŝůůLJsĞǀĞůŽŐĂ <ĞƐƐLJ ůůLJ^ĂŵŵLJ ------ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ BSP FIRST, Harbour City ϯϬϱϲϱϬϯ MORO Ϯϳϲϭϱϲϲ BUIN ϳϭϬϬϳϴϱϱ ƌĂŶĐŚDĂŶĂŐĞƌ >ĂŵĂKƌĞĂ ƌĂŶĐŚDĂŶĂŐĞƌ DĞĐŬ<ĂƵŵ DĞůĐŚŝŽƌdĂŶŝĂ ------ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ BUKA ϵϳϯϵϬϰϮ MOTUKEA ϯϮϭϳϲϵϵ ƌĂŶĐŚDĂŶĂŐĞƌ :ĞŶŶLJ:ŽĞů CHUAVE ϳϭϵϳϲϬϬϭ ƌĂŶĐŚDĂŶĂŐĞƌ :ƵůŝĞtĂƌƌĞŶ <ŽŝLJĞ<ƵƉĂ Premium Centre ϵϳϯϵϬϴϳ ------ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ------MOUNT HAGEN ϱϰϮϭϴϳϳ BULOLO ϰϳϰϱϮϭϳ ƌĂŶĐŚDĂŶĂŐĞƌ DĂƌLJ<ƵŶĚŝ DAULO ϳϭϬϬϲϳϲϯ ƌĂŶĐŚDĂŶĂŐĞƌ :ŽĞDĂŬŝŶƚĂ Premium Centre ZƵƚŚ<ĂŐů ĞůŝůĂŚ'ĂŚĂůĞ ------ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ POPONDETTA ϲϮϵϳϭϳϭ GORDONS PREMIUM CENTRE ϯϬϮϱϮϬϮ GEMBOGL ϳϯϭϯϰϭϳϳ ƌĂŶĐŚDĂŶĂŐĞƌ ŶƚŽŶŝĂƌƵ ƌĂŶĐŚDĂŶĂŐĞƌ ŝůĞĞŶ'ŽǀŝƌŽ BSP FIRST ϯϬϮϱϮϰϱ ------tŝůůŝĂŵ<ŽŝŵĂ ƌĂŶĐŚDĂŶĂŐĞƌ ŐŶĞƐŶĚƌĞǁ POGERA ϱϰϳϲϵϬϬ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ƌĂŶĐŚDĂŶĂŐĞƌ ^ƵLJĂzŽƉĂŚĂĨŽ ------HENGANOFI ϳϭϬϬϳϴϱϵ ------DARU ϳϯϬϭϬϰϲϭ PORT MORESBY ϯϬϱϳϭϯϮ ŵŽƐ:ĂŵĞƐ ƌĂŶĐŚDĂŶĂŐĞƌ /ǀLJĂǀŝĚ ƌĂŶĐŚDĂŶĂŐĞƌ DĂƌŬ<ĂŵũƵĂ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ------Premium Centre ϯϬϱϳϵϰϯ HIGATURU ϳϬϯϭϮϲϮϳ GOROKA ϱϯϮϭϲϯϯ >ŝŶĂWŽƉĂů ^ƚĞƉŚĂŶŝĞKƌŽǀŽ ƌĂŶĐŚDĂŶĂŐĞƌ >ŝǀŝŬŽŶŝŵŽ<ŽŬŝ BSP FIRST ϯϬϱϳϳϯϭ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ------ƌĂŶĐŚDĂŶĂŐĞƌ ŵŝůLJĂƐŝů KAINANTU ϱϯϳϭϬϲϱ ------HOSKINS ϳϬϯϭϮϲϮϳ ƌĂŶĐŚDĂŶĂŐĞƌ DĂƌĐŽ,ĂŵĞŶ RABAUL ϵϴϮϭϳϴϴ ZƵĚĚLJ^ĂŵƐŽŶ ------ƌĂŶĐŚDĂŶĂŐĞƌ ĞǀŝůŽŶ,ŽŵƵŽ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ KAVIENG ϵϴϰϮϬϲϲ ------IALIBU ϳϭϵϳϲϬϬϰ ƌĂŶĐŚDĂŶĂŐĞƌ DĂĚĞůĞŝŶĞ>ĞŬĂ TABUBIL ϲϰϵϵϭϳϵ DĂƚŚĞǁ'ĂƌƵ Premium Centre ϵϴϰϮϭϬϬ ƌĂŶĐŚDĂŶĂŐĞƌ dŽŶLJtĂŶŝŶŐƵ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ------KIMBE ϵϴϯϱϭϲϲ TARI ϮϳϲϭϲϱϬ KABWUM ϳϯϰϲϭϰϮϲ ƌĂŶĐŚDĂŶĂŐĞƌ WĞƚĞƌdŝŬŽƚ ƌĂŶĐŚDĂŶĂŐĞƌ 'ĂďƌŝĞůŬ ZĂĐŚĂĞůtĂƚƵ ------ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ KIUNGA ϲϰϵϭϬϳϯ VANIMO ϰϱϳϭϮϬϵ KAMTAI ϳϮϰϯϰϲϵϱ ƌĂŶĐŚDĂŶĂŐĞƌ dŚŽŵĂƐdĞŵďŝů ƌĂŶĐŚDĂŶĂŐĞƌ <ĂƌĞŶ'ĞŽƌŐĞ ZŽďĞƌƚ<Žŵ ------KOKOPO ϵϴϮϵϬϴϴ VISION CITY ϯϬϬϵϭϬϭ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ƌĂŶĐŚDĂŶĂŐĞƌ ZŽďŝŶƐŽŶWĂŶĂŬŽ ƌĂŶĐŚDĂŶĂŐĞƌ ^ŝďŽŶĂ<ĞŵĂ KEREMA ϳϬϵϭϮϮϵϴ Premium Centre ϵϴϮϵϬϲϴ ŝƐŝƵĂ :ĞŶŶŝĨĞƌdŝŽůĂŵ Premium Centre ϯϬϬϵϭϬϯ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ------ĂŵĂƌŝƐdŽƌĂŶKEREVAT ϳϭϵϬϴϮϯϭ KUNDIAWA ϱϯϱϭϬϮϱ BSP First ϯϬϬϵϭϬϵ <ŝůĂůĂ<ŝŶĚĂƵ ƌĂŶĐŚDĂŶĂŐĞƌ ZŝƚĂ^ŝŶŐƵƚ ŝĂŶŶĞ^ĂǁĂůĂ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ------LAE TOP TOWN ϰϳϯϵϴϬϭ WABAG ϱϰϳϭϭϳϲ KEROWAGI ϳϭϬϬϵϬϳϳ ƌĂŶĐŚDĂŶĂŐĞƌ ŐŶĞƐDĂƌŬ ƌĂŶĐŚDĂŶĂŐĞƌ dŚĞƌĞƐĂWŝůĂŵƉ >ĞĂŚdĂŝĂ ------ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ BSP Annual Report 2014 99 %5$1&+',5(&725< ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ KIKORI ϳϭϲϯϬϱϵϳ TELEFOMIN ϳϮϱϱϴϰϮϭ SAVUSAVU ;ϲϳϵͿϴϴϱϬϮϮϭ >ĞĂŚ<ŝŵĂǀĞ ŽŶŶĂzĂƌŬŝŶ KĸĐĞƌŝŶŚĂƌŐĞsŝŶĞĞƚĂWƌĂƐĂĚ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ KINIM ϳϭϬϬϳϴϲϭ WAKUNAI ϳϭϬϬϳϴϱϲ SIGATOKA;ϲϳϵͿϲϲϮϳϯϯϮ DĂůĂƉƵŶĂŶŶŝĐŬ DĞůǀŝŶ<ƵƐĂ ƌĂŶĐŚDĂŶĂŐĞƌZĞŐŝŶĂůĚ<ƵŵĂƌ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ KOMO ϳϯϲϮϬϳϲϬ WALIUM ϳϭϬϲϴϯϱϳ ^hsʹ EdZ> ;ϲϳϵͿϯϮϭϰϰϱϱ >ŽďĞƌĂǁŝ ƌĞŶĚĂ/ŐƵƐĂŵ ƌĂŶĐŚDĂŶĂŐĞƌ DĞƌĞĂŶŝWĞƚĞƌƐ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ KONOS ϳϭϵϳϲϬϬϲ WAPENAMANDA ϳϭϬϬϳϴϲϮ TAVEUNI ;ϲϳϵͿϴϴϴϬϰϯϯ DĂƵƌĞĞŶEŝĐŬ 'ƌĂĐĞZĞƚŽ ƌĂŶĐŚDĂŶĂŐĞƌ DĂƌŝĐĂDĂƌĂ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ KUPIANO ϳϮϴϴϰϭϰϬ YANGORU ϳϭϮϳϬϬϬϬ TAVUA ;ϲϳϵͿϲϲϮϳϯϯϴ ŶĚƌĞǁĂŝŶĞ:Ŷƌ DŝĐŚĂĞůWĂƵů:ĂǀĂ KĸĐĞƌŝŶŚĂƌŐĞ ^ĂŶũĞĞǀ^ƵŵĞƌ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ LABA ϳϭϵϳϲϬϬϴ YONKI ϳϭϴϱϱϳϲϴ THOMSON ST ;ϲϳϵͿϯϮϭϰϲϳϭ ƵĚĂDŽƌĞĂ hƐŝĐŬƐŝŶŽ ƌĂŶĐŚDĂŶĂŐĞƌDŽŚĂŵŵĞĚƌŝĨ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ LAKURUMAU ϳϭϵϳϲϬϬϱ ZENAG ϳϯϭϴϱϴϱϱ VALELEVU ;ϲϳϵͿϯϯϰϮϯϯϯ ZŽƐĞůLJŶhŶŝŶŝ EŝĐŬŽDŽƌƌŝƐ KĸĐĞƌŝŶŚĂƌŐĞ/ůĂŝƟĂtĂƋĂ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ LOSUIA ϳϬϯϭϮϲϭϳ FIJI ;ϲϳϵͿϯϮϯϰϮϯϮ >ŽƌŶĂ^ŽůŽŵŽŶ BSP FIRST SUVAŵŝŶŝĂƐŝEĂŝĚŝŬĞ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ;ϲϳϵͿϯϯϭϰϰϬϬ WƌĞŵŝƵŵĞŶƚƌĞ^hs^ĞŶŝŵŝůŝŽŐŝŶŝǀĂůƵ LUFA ϳϭϬϬϲϳϲϭ Country Head <ĞǀŝŶDĐĂƌƚŚLJ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ sŝĚĂ<ĞŵĂƟ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ BSP FIRST NADI ;ϲϳϵͿϲϳϬϱϭϬϭ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ BA ;ϲϳϵͿϲϲϮϳϯϯϱ WƌĞŵŝƵŵĞŶƚƌĞE/DĞƌŝYƵŵŝŶĂŬĞůŽ MAPRIK ϳϭϲϴϳϴϭϱ ƌĂŶĐŚDĂŶĂŐĞƌ ŶƵƉĂ<ƵŵĂƌ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ŚƌŝƐƟĂŶdĂƚƵ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ BSP FIRST LAUTOKA ;ϲϳϵͿϲϲϲϬϭϴϬ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ DAMODAR ;ϲϳϵͿϯϮϭϰϯϭϭ WƌĞŵŝƵŵĞŶƚƌĞ>hdK< >ŝĐĞdŽŐĂ MINJ ϳϭϬϬϵϬϳϲ ƌĂŶĐŚDĂŶĂŐĞƌ DĂŶũŝůĂ'ŽƵŶĚĂƌ WĂƵůŝŶĞ<ĂƉĂů ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ SOLOMON ISLANDS ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ LABASA ;ϲϳϵͿϴϴϭϭϯϲϬ MUTZING ϳϭϬϬϮϰϴϴ ƌĂŶĐŚDĂŶĂŐĞƌ ŬĂ^ĞĚƵĂĚƵĂ ;ϲϳϳͿϮϭϴϳϰ &ƌĂŶŬ'ŽĚĨƌĞLJ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ŽƵŶƚƌLJ,ĞĂĚĂǀŝĚŶĚĞƌƐŽŶ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ LAUTOKA ;ϲϳϵͿϲϲϲϮϰϲϲ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ NAMATANAI ϳϭϵϳϲϬϬϳ ƌĂŶĐŚDĂŶĂŐĞƌ :ŽƐĞĨĂdƵŝƚƵďŽƵ AUKI ;ϲϳϳͿϰϬϰϴϰ DĂƚŚĞǁdĂďĂŬĂƐ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ƌĂŶĐŚDĂŶĂŐĞƌ'ŽƌĚŽŶ/ĨƵŝŵĂĞ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ NADI ;ϲϳϵͿϲϲϮϳϯϭϬ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ NAVO ϳϬϵϬϰϮϳϰ ƌĂŶĐŚDĂŶĂŐĞƌ ĂǀĞŶĚƌĂŶWŝůůĂLJ COMMERCIAL BANKING ;ϲϳϳͿϮϯϲϮϬ ,ĞŶŶĂŚƌƵŶŝŵ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ƌĂŶĐŚDĂŶĂŐĞƌ ZŽƐĞDƵƌƌĂLJ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ NAMAKA ;ϲϳϵͿϲϲϮϳϯϮϬ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ NINGERUM ϳϬϯϭϴϰϵϳ ƌĂŶĐŚDĂŶĂŐĞƌDĂĚŚƵƌ>ĂƚĂ<ƵŵĂƌ GIZO ;ϲϳϳͿϲϬϱϯϵ DĂƚŚĞǁdǁĂƌĞ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ƌĂŶĐŚDĂŶĂŐĞƌ ůŽƟůĚĂ>ŽŶĚĞŬĂ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ NAUSORI;ϲϳϵͿϯϰϳϴϰϵϵ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ OKAPA ϳϯϳϰϱϲϮϯ ƌĂŶĐŚDĂŶĂŐĞƌ^ŚĂŝůĞŶĚƌĂZŽLJ HONIARA ;ϲϳϳͿϮϭϴϭϰ DĞůĞƌŽŶ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ƌĂŶĐŚDĂŶĂŐĞƌ :ŽLJsĂǀĞ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ PACIFIC HARBOUR;ϲϳϵͿϯϰϱϮϬϯϬ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ PADIPADI ϳϬϵϬϰϰϲϯ KĸĐĞƌŝŶŚĂƌŐĞ:ĞŶŶŝĨĞƌDŽƌƌŝƐ MUNDA ;ϲϳϳͿϲϮϭϳϳ ZŝƚĂEŽĞů ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ƌĂŶĐŚDĂŶĂŐĞƌ sĞƌŽŶŝĐĂŶĂůĂƵ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ PACIFIC HOUSE ;ϲϳϵͿϯϮϭϰϱϴϬ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ PALMALMAL ϳϯϮϯϵϭϴϭ DĂŶĂŐĞƌ^ŚĂůŝƚ<ƵŵĂƌ NORO ;ϲϳϳͿϲϭϮϮϮ &ƌĞĚĂEĂďůƵƉ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ƌĂŶĐŚDĂŶĂŐĞƌ dĞǁŝĂ>ĂŽƌĞ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ RAKIRAKI ;ϲϳϵͿϲϲϮϳϯϰϭ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ PANGIA ϳϭϵϳϲϬϬϯ KĸĐĞƌŝŶŚĂƌŐĞZŽŶŝĐĂWƌĂŬĂƐŚ POINT CRUZ ;ϲϳϳͿϮϭϴϳϰ WŚŝůĞŵŽŶ<ĂŵďƵ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ƌĂŶĐŚDĂŶĂŐĞƌ ZŽƐĞ&ƵŶĂ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ SAMABULA;ϲϳϵͿϯϯϴϳϵϵϵ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ TAMBUL 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ŽŵŵƵŶŝƚLJ,ŝŐŚ^ĐŚŽŽů͘ In 2014, the BSP team in the Solomon dŚĞ ŶŶƵĂů 'Ž 'ƌĞĞŶ ůĞĂŶ hƉ ĂƩƌĂĐƚƐ ƚŚŽƵƐĂŶĚƐ ŽĨ Islands delivered seven (7) Community ƐƚƵĚĞŶƚƐĂŶĚĐŽŶĐĞƌŶĞĚŵĞŵďĞƌƐŽĨƚŚĞĐŽŵŵƵŶŝƚLJƚŽ Projects, including our major Annual ƵŶŝƚĞĂŶĚĐůĞĂŶƵƉƚŚĞƐƚƌĞĞƚƐ͘ Schools Go Green Clean Up which was fully funded and supported by 62/2021,6/$1'6&20081,7<352-(&76,1 the bank. hŝŵŝƚĞĚ͕ /ƐůĂŶĚ ^ƵŶ͕ zŽƵƚŚΛ Z E/ZE, /ŶƐƚĂůůĂƟŽŶŽĨϯϬϬϬůƚƌƐŽĨǁĂƚĞƌƚĂŶŬĂƚŽŶŽƐĐŽdĞĐŚ/ŶƐƟƚƵƚĞ͘ tŽƌŬ͕ WĂƚŚĮŶĚĞƌ ůƵď͕ ĂŚĂŝ zŽƵƚŚ͕ ϭϯ ƌĞŐŝƐƚĞƌĞĚ^ĐŚŽŽůƐŝŶ,ŽŶŝĂƌĂ͕ĨŽƵƌĐŽŵŵƵŶŝƚLJ ƐĐŚŽŽůƐĂĚŽƉƚĞĚďLJ^W͛ƐƉƌŽǀŝŶĐŝĂůďƌĂŶĐŚĞƐ ĂƚƵŬŝ͕'ŝnjŽ͕DƵŶĚĂĂŶĚEŽƌŽĂŶĚƐĞůĞĐƚĞĚ ƐƉŽƌƚƐŵĞŶĂŶĚǁŽŵĞŶƚŽĚĞůŝǀĞƌƚŚŝƐǁŽƌƚŚLJ ŝŶŝƟĂƟǀĞ͘ dŚŽƵƐĂŶĚƐ ŽĨ ƐƚƵĚĞŶƚƐ͕ LJŽƵƚŚƐ ĂŶĚ ŽƵƌ ƐƚĂī ĂŶĚ ƚŚĞŝƌ ĨĂŵŝůŝĞƐ ĂĐƌŽƐƐ ƚŚĞ ^ŽůŽŵŽŶƐ ƉĂƌƟĐŝƉĂƚĞĚŽǀĞƌƚǁŽĚĂLJƐ͘ϮϬϬŽĚĚƐƚƵĚĞŶƚƐ ĂŶĚ ƐƚĂī ŽĨ ^ƚ EŝĐŚŽůĂƐ ^ĞĐŽŶĚĂƌLJ ^ĐŚŽŽů ǁŝƚŶĞƐƐĞĚ ƚŚĞ ůĂƵŶĐŚ ďLJ ĂǀŝĚ ŶĚĞƌƐŽŶ͕ ŽƵƌ ^ŽůŽŵŽŶ /ƐůĂŶĚ ŽƵŶƚƌLJ DĂŶĂŐĞƌ͘ ^W ƉƌŽǀŝĚĞĚ ŵĞƌĐŚĂŶĚŝƐĞ͕ ŐĂƌďĂŐĞ ďĂŐƐ ĂŶĚ ŐůŽǀĞƐ͘dŚĞƌĞǁĂƌĚĨŽƌĞǀĞƌLJŽŶĞǁĂƐĂĐůĞĂŶĞƌ ĐŽŵŵƵŶŝƚLJ ĂŶĚ ƐƚƵĚĞŶƚƐ ĂƌĞ ŶŽǁ ŵŽƌĞ ƌĞƐƉŽŶƐŝďůĞŝŶĐĂƌŝŶŐĨŽƌƚŚĞĞŶǀŝƌŽŶŵĞŶƚ͘ &ŽƌŽƵƌŽŵŵƵŶŝƚLJWƌŽũĞĐƚƐǁĞĂƐƐŝƐƚĞĚǁŝƚŚ ƐĂŶŝƚĂƟŽŶ ĂŶĚ ǁĂƚĞƌ ƐƚŽƌĂŐĞ Ăƚ ƐĐŚŽŽůƐ ĂŶĚ ƚŚĞƉĂŝŶƟŶŐŽĨŶĞƚďĂůůĂŶĚďĂƐŬĞƚďĂůůĐŽƵƌƚƐƚŽ ĂƐƐŝƐƚůŽĐĂůƐƉŽƌƟŶŐĐůƵďƐ͘ EŽƚŽŶůLJĚŽǁĞƐƵƉƉŽƌƚůŽĐĂůƐƉŽƌƟŶŐĐůƵďƐ͕ ǁĞ ƐƵƉƉŽƌƚ ŽƌŐĂŶŝƐĂƟŽŶƐ ĂŶĚ ĞǀĞŶƚƐ ƚŚĂƚ ĐŽŶƚƌŝďƵƚĞƉŽƐŝƟǀĞůLJƚŽƚŚĞĐŽŵŵƵŶŝƚLJ͕ƐƵĐŚ ĂƐ ƚŚĞ ƵƐƚƌĂůŝĂŶ ,ŝŐŚ ŽŵŵŝƐƐŝŽŶ &ƵŶ ZƵŶ͕ ǁŚŝĐŚ ǁĞ ĂĐƟǀĞůLJ ƐƵƉƉŽƌƚĞĚ͘ ^W ŝƐ ƉƌŽƵĚ ƚŽ ĐŽŶƚƌŝďƵƚĞ ƚŽ ƐƵĐŚ ŝŶŝƟĂƟǀĞƐ ƚŚĂƚ ŚĂǀĞ Ă ƐŝŐŶŝĮĐĂŶƚŝŵƉĂĐƚŽŶƚŚĞĐŽŵŵƵŶŝƚLJ͘ BSP Annual Report 2014 111 &25325$7(62&,$/ 5(63216,%,/,7,(6 ƐKĸĐŝĂů^ƉŽŶƐŽƌŽĨƚŚĞWŽƌƚDŽƌĞƐďLJϮϬϭϱWĂĐŝĮĐ'ĂŵĞƐ^WŝƐĂƉƌŽƵĚ ƐƵƉƉŽƌƚĞƌŽĨƐǁŝŵŵŝŶŐŝŶ&ŝũŝ͘^W^ŚŽƌƚŽƵƌƐĞŐĞ'ƌŽƵƉEĂƟŽŶĂůƐ͘ DONATIONS BSP donates $10,660 for WOWS Kids 2014 campaign ^WƐƚĂīŝŶŝƟĂƟǀĞƚŽƌĂŝƐĞĨƵŶĚƐĨŽƌĐĂŶĐĞƌĂǁĂƌĞŶĞƐƐ ůĞĚƚŽĂΨϭϬ͕ϲϲϬĚŽŶĂƟŽŶƚŽtKt^<ŝĚƐ͘^ƚĂīǀŽƚĞĚƚŽ ĞŝƚŚĞƌƐĂǀĞŽƌƐŚĂǀĞĂƐƉĞĐŝĂůůLJƐĞůĞĐƚĞĚĐŽůůĞĂŐƵĞĂŶĚƚŽ 2XU)LMLWHDPDUHSDVVLRQDWHDERXW ďĂĐŬƚŚĂƚǀŽƚĞǁŝƚŚĂĐĂƐŚĚŽŶĂƟŽŶ͘/ŶƚŚĞĨƵŶĚƌĂŝƐĞƌƚŚĂƚ ´JLYLQJEDFNµWRWKHFRPPXQLWLHV SPONSORSHIPS ůĂƐƚĞĚϭϲŚŽƵƌƐŽƌϮǁŽƌŬŝŶŐĚĂLJƐ͕ƐƚĂīŵĂŶĂŐĞĚƚŽƌĂŝƐĞ DQGVXSSRUWLQJFDXVHVWKDWPDWWHU BSP Short Course Age Group Nationals Ψϱ͕ϯϯϬǁŚŝĐŚǁĂƐŵĂƚĐŚĞĚĚŽůůĂƌĨŽƌĚŽůůĂƌďLJƚŚĞďĂŶŬ͘ ZKHWKHULWLVWKURXJKDFRPPXQLW\ &ŝũŝ ^ǁŝŵŵŝŶŐ ƐƐŽĐŝĂƟŽŶ ŚŽƐƚĞĚ ƚŚĞ ^ŚŽƌƚ ŽƵƌƐĞ ŐĞ 'ƌŽƵƉ EĂƟŽŶĂůƐ ŝŶ KĐƚŽďĞƌ͕ ǁŚŝĐŚ ŚĂĚ ϮϱϬ ƐǁŝŵŵĞƌƐ SURMHFWGRQDWLRQVRUVLPSO\YROXQ BSP supports WOWS Kids 2014 walk ĂƩĞŶĚ͘ WHHULQJIRUDZRUWK\FDXVH ^WƐƵƉƉŽƌƚĞĚƚŚĞĂďŽǀĞϮǁĞĞŬĐĂŵƉĂŝŐŶǁŚŝĐŚŝŶǀŽůǀĞĚ ^WŐĂǀĞΨϱ͕ϬϬϬĂŶĚƉƌŽǀŝĚĞĚŵĂƌƋƵĞĞƐ͕ƚĞŶƚƐ͕ƚͲƐŚŝƌƚƐ /ŶϮϬϭϰ͕^W&ŝũŝďƌĂŶĐŚĞƐĚĞůŝǀĞƌĞĚŶŝŶĞ ĂŵĂŵŵŽƚŚϰϲϮŬŝůŽŵĞƚĞƌǁĂůŬĂƌŽƵŶĚsŝƟ>ĞǀƵƚŽƌĂŝƐĞ ĂŶĚ ŵĞƌĐŚĂŶĚŝƐĞ͘ dŚŝƐ ƐƉŽŶƐŽƌƐŚŝƉ ĞdžƚĞŶĚƐ ŝŶƚŽ ŽƚŚĞƌ ;ϵͿĐŽŵŵƵŶŝƚLJďĂƐĞĚƉƌŽũĞĐƚƐ͘ ĂǁĂƌĞŶĞƐƐĂŶĚĂůƐŽĐŽůůĞĐƚĚŽŶĂƟŽŶƐĨŽƌtKt^<ŝĚƐ&ŝũŝ͘ ϮϬϭϱŵĂũŽƌƐǁŝŵŵŝŶŐĐŽŵƉĞƟƟŽŶƐ͘ƐKĸĐŝĂů^ƉŽŶƐŽƌ dŚĞďƌĂŶĐŚĞƐĂŶĚƚŚĞŝƌƉƌŽũĞĐƚƐŝŶĐůƵĚĞĚ͗ dŚĞtKt^<ŝĚƐĐŽŵŵŝƩĞĞŝŶ&ŝũŝƐƵƉƉŽƌƚƐƚŚĞdĂĞ<Ăŵŝ ŽĨƚŚĞWŽƌƚDŽƌĞƐďLJϮϬϭϱWĂĐŝĮĐ'ĂŵĞƐ^WŝƐĂƉƌŽƵĚ ^ĂǀƵƐĂǀƵ͗ ^ĂǀƵƐĂǀƵ ,ĞĂůƚŚ tĂůŬ ĂŶĚ &ŽƵŶĚĂƟŽŶǁŚŝĐŚƌĂŝƐĞƐĨƵŶĚƐĨŽƌƚŚĞĐĂƌĞŽĨĐŚŝůĚĐĂŶĐĞƌ ƐƵƉƉŽƌƚĞƌŽĨƐǁŝŵŵŝŶŐŝŶ&ŝũŝ͘ ĞĂƵƟĮĐĂƟŽŶ͘ ƉĂƟĞŶƚƐ͘ ZĞƐƵůƚƐǁĞƌĞƉƌŽŵŝƐŝŶŐĨŽƌdĞĂŵ&ŝũŝĂŌĞƌĐůƵďƉĂƌƟĐŝƉĂŶƚƐ ^ŝŐĂƚŽŬĂ͗ ZĞŶŽǀĂƟŽŶ ŽĨ ƚŚĞ ZĂƚƵ &ŝůŝƐĞ ŵĂŶĂŐĞĚ ƚŽ ƐĞƚ ϰϮ ŶĂƟŽŶĂů ƐǁŝŵŵŝŶŐ ƌĞĐŽƌĚƐ ƐĞƚ ĂŶĚ Some Donations & Events supported by BSP in Fiji include: 'LJŵ͕EĂŵĂƚĂŬƵůĂsŝůůĂŐĞ͘ Q^ŝŐĂƚŽŬĂdŽǁŶĂLJ ĂŶ ĂĚĚŝƟŽŶĂů Ϯϱ KƉĞŶ ^ǁŝŵŵŝŶŐ ƌĞĐŽƌĚƐ͘ ^ǁŝŵŵŝŶŐ QZĂ^ĐŚŽŽůĨŽƌ^ƉĞĐŝĂů ĚƵĐĂƟŽŶ^ƉŽƌƚƐĂLJ ĂŵŽĚĂƌŝƚLJ͗ZĞŶŽǀĂƟŽŶĂƚƚŚĞEĂƟŽŶĂů ĨĂŶĂƟĐƐ͕ ĨĂŵŝůŝĞƐ ĂŶĚ ƐƵƉƉŽƌƚĞƌƐ ǁĞƌĞ ƚƌĞĂƚĞĚ ƚŽ ŐƌĞĂƚ QĐĐŽƌ͛ƐZĂĐĞƚŽ^ƵƌǀŝǀĞĐŚĂƌŝƚLJ dĂďůĞdĞŶŶŝƐĞŶƚƌĞ͘ ƉĞƌĨŽƌŵĂŶĐĞƐ ĨƌŽŵ ƐǁŝŵŵĞƌƐ ǁŚŽ ǁĞƌĞ ĂƐ LJŽƵŶŐ ĂƐ ϳ Q,ŝůƚŽŶ^ƉĞĐŝĂů^ĐŚŽŽů͛ƐĨƵŶĚƌĂŝƐŝŶŐ EĂƵƐŽƌŝ͗ ŽŶƐƚƌƵĐƟŽŶ ŽĨ Ă ƉůĂLJŐƌŽƵŶĚ LJĞĂƌƐŽůĚĂƚƚŚĞϮϱŵĞƚƌĞĂŵŽĚĂƌŝƚLJƋƵĂƟĐĞŶƚƌĞ͘ Q >ĂŶĚ dƌĂŶƐƉŽƌƚ ƵƚŚŽƌŝƚLJ ĨŽƌ ƚŚĞ ͞ƌŝǀŝŶŐ ^ĂĨĞ ĂŶĚ Ăƚ ŽůŽͲŝͲ^ƵǀĂ ƉĂƌŬ͘ WĂƌƚŶĞƌƐŚŝƉ ǁŝƚŚ dŚĞ ĞǀĞŶƚ ǁĂƐ Ă ƐĞůĞĐƟŽŶ ƉůĂƞŽƌŵ ƚŽ ĐŚŽŽƐĞ ĂŶ ĞůŝƚĞ ^ĞĐƵƌĞ&ŝũŝ͟ƉƌŽŐƌĂŵ ůĂŶĚŽǁŶĞƌƐĂŶĚ&ŽƌĞƐƚƌLJĞƉĂƌƚŵĞŶƚ͘ ƐƋƵĂĚƚŽƌĞƉƌĞƐĞŶƚ&ŝũŝ͘ >ĂƵƚŽŬĂĂŶĚĂ͗EĞǁŵƵůƟƉƵƌƉŽƐĞĐŽƵƌƚ͕ QZŽƚĂƌLJWĂĐŝĮĐtĂƚĞƌĨŽƌ>ŝĨĞ&ŽƵŶĚĂƟŽŶ ďĞŶĐŚĞƐ ĂŶĚ ǁĂůŬǁĂLJ Ăƚ dĂǀĂƌĂƵ WƌŝŵĂƌLJ BSP donates to Rotary Pacikc ^ĐŚŽŽů͘ Water Projects ZĂŬŝƌĂŬŝ͗hƉŐƌĂĚĞZĂŬŝƌĂŬŝdĞŶŶŝƐŽƵƌƚƚŽĂ tĞ ĐŽŶƚƌŝďƵƚĞĚ Ψϱ͕ϬϬϬ ƚŽ ŚĞůƉ ŝŵƉƌŽǀĞ &ŝũŝΖƐ ŶĂƟŽŶĂů ŵƵůƟͲƉƵƌƉŽƐĞĐŽƵƌƚ͘ ǁĂƚĞƌ ƐĂŶŝƚĂƟŽŶ ĂŶĚ ŚLJŐŝĞŶĞ ƐŝƚƵĂƟŽŶ͘ dŚĞ ĚŽŶĂƟŽŶ WĂĐŝĮĐ ,ŽƵƐĞ͗ ZĞŶŽǀĂƟŽŶ ŽĨ ŚĂƌŵĂŶ ůů ǁĂƐŵĂĚĞƚŽZŽƚĂƌLJWĂĐŝĮĐtĂƚĞƌƚŽĂƐƐŝƐƚĨƵŶĚŝŶŐĂĐƟŽŶ ZĂĐĞƐůƵď'LJŵ ƉůĂŶƐĨŽƌƚŚĞĚĞůŝǀĞƌLJŽĨǁĂƚĞƌĨŽƌůŝĨĞƉƌŽũĞĐƚƐŝŶ&ŝũŝΖƐƌƵƌĂů dĂǀƵĂ͗ hƉŐƌĂĚĞ ƚŽ ĂďŽůƵƟŽŶ ďůŽĐŬ Ăƚ ĐŽŵŵƵŶŝƟĞƐ͘ 'ĂƌǀĞLJ^ƉŽƌƚƐWĂƌŬ dŚŽŵƐŽŶ^ƚƌĞĞƚ͗EĞǁŵƵůƟͲƉƵƌƉŽƐĞĐŽƵƌƚ Some Sponsorships & Organisations supported by BSP in ĂŶĚƌĞƉĂŝƌĂĐůĂƐƐƌŽŽŵďůŽĐŬĂƚtĂŝƋĂŶĂŬĞ Fiji include: ŝƐƚƌŝĐƚ^ĐŚŽŽů͘ Q/ŶƐƟƚƵƚĞŽĨ/ŶƚĞƌŶĂůƵĚŝƚŽƌƐŶŶƵĂůŽŶĨĞƌĞŶĐĞ ƉĂƌƚ ĨƌŽŵ ĐŽŵŵƵŶŝƚLJ ƉƌŽũĞĐƚƐ ďLJ QϮϬϭϰWD džƉŽƌƚĞƌŽĨƚŚĞzĞĂƌǁĂƌĚƐ ďƌĂŶĐŚĞƐ͕ dĞĂŵ &ŝũŝ ĂůƐŽ ƐƵƉƉŽƌƚƐ ŽƚŚĞƌ QϮϬϭϰ&^EK,ĂůůŽĨ&D ǁŽƌƚŚLJĐĂƵƐĞƐ͘ Q&ŝũŝWƌŝŶĐŝƉĂůƐƐƐŽĐŝĂƟŽŶŽŶĨĞƌĞŶĐĞ KŶĞƐƵĐŚƐƵƉƉŽƌƚŝŶĐůƵĚĞĚĨƵŶĚƌĂŝƐŝŶŐĨŽƌ QWĂƌƚŶĞƌƐŚŝƉǁŝƚŚ&ŝũŝWƌŝŵĂƌLJ^ĐŚŽŽůƐEĞƚďĂůů ĐŚŝůĚƌĞŶůŝǀŝŶŐǁŝƚŚĐĂŶĐĞƌ͕ǁŚĞƌĞŽƵƌƚĞĂŵ Q&ŝũŝKƌĂů,ĞĂůƚŚtŽƌŬĞƌƐƐƐŽĐŝĂƟŽŶ ŝŶ &ŝũŝ ƌĂŝƐĞĚ ͘ KƵƌ ƚĞĂŵ ƌĂŝƐĞĚ ΨϭϬ͕ϲϲϬ QWĂĐŝĮĐ/ƐůĂŶĚƐ^ƵƌŐĞŽŶƐƐƐŽĐŝĂƟŽŶ ŽǀĞƌƚǁŽĚĂLJƐĨŽƌƚŚĞĂŶŶƵĂůtĂůŬŽŶtĂůŬ Q&ŝũŝŽƌƌĞĐƟŽŶĂů^ĞƌǀŝĐĞƐ^ƉŽƌƚƐĂLJ ^ƚƌŽŶŐĨƵŶĚƌĂŝƐŝŶŐ͘ 112 BSP Annual Report 2014 Official Sponsor of the 2015 Pacific Games