Annual Report 2014 Annual Report 2014
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Annual Report 2014 Annual Report 2014 EMANCIPATION of the PaPIAMENTU LANGUAGE Highlights of consolidated position ANG* 2014 2013 2012 2011 2010 Total Assets 6,665,539,000 6,180,250,000 6,043,585,000 5,806,865,000 5,983,557,000 Customers' Deposits 5,670,196,000 5,210,446,000 5,135,810,000 4,946,880,000 5,192,685,000 Loans and Advances 4,075,961,000 4,039,288,000 3,851,159,000 3,646,337,000 3,400,740,000 to customers Equity 716,516,000 670,912,000 650,633,000 588,449,000 535,283,000 Net result after tax 140,313,000 146,575,000 143,676,000 137,125,000 135,043,000 Staff 1,502 1,494 1,500 1,485 1,473 * Netherlands Antilles Guilders ANG 1.79 = US$ 1.00 Affiliated with The Bank of Nova Scotia Toronto, Canada [ 1 ] The environments and risks in which our Group operates continue to Management’s report evolve and are becoming more complex resulting in higher regulatory standards to which the Group should comply. At first sight, the year 2014 could be described The economic growth of Aruba and Sint initiating our “state of the art” Contact Center, island can hopefully trigger this confidence as a calm and uneventful year, but beneath the Maarten could not compensate for the developing the shared services concept, in Curaçao. Both in Curaçao as well as Sint surface there was much activity and changes in continued slow economic activities in Curaçao assisting with the planning and construction of Maarten, because of the lack in credit demand, our business surroundings as well as within the and Bonaire. As a result of that, the year two beautiful new offices and starting with the a contraction of credit to the private sector MCB Group itself. 2014 was again a challenging year for our IT-Roadmap, to name just a few achievements. was observed in 2014. The Sint Maarten islands and for our MCB Group. Nevertheless, Joe’s direct way of communicating and his dry economy continued to grow, mainly caused On the world stage there were several shocks, we continued preparing the Bank for the sense of humor will not be forgotten either. We by an increase in activities in the hotels and with possible political as well as economical exciting future, by re-opening our completely wish him a great retirement. restaurants sector due to increase in tourism consequences for our islands. The price of modernized and new look Colon branch volumes. In Aruba, the growth of the economy crude oil decreased sharply since the middle in Curaçao after the fire in 2013. We also Since July our Group welcomed Ian de Silva slowed down, mainly because of a decrease in of 2014 from above USD 100 per barrel to continued with our “IT-roadmap”, initiated in as Managing Director. In the six months since public investment and consumption. around USD 50 per barrel at the end of the 2012 to have a 21st century IT platform that will his arrival Ian has already marked his presence year. Especially for our neighbors in Venezuela enable us to enhance our clients’ experiences, and will continue the developments and also The Centrale Bank van Curaçao en Sint this has a devastating and destabilizing effect have more innovations and efficiency and give bring new insights and direction to the Bank. Maarten (CBCS), estimates that the Curaçao and besides a lower price for gasoline at the gas our colleagues an improved work environment. As banking is a “people business”, communi- economy contracted for the third year in a row stations, it could have further consequences for cation with our colleagues, supervisors, with 0.5% during 2014 after contractions of Curaçao’s refinery and energy sector. The other In our Board of Supervisory Directors several regulators, shareholders and especially our 0.8% in 2013 and 0.1% in 2012. This contraction big change in the financial world with possible changes took place. Some Board members clients is the most essential element in building was caused by a continued decline in domestic mid-term effects for our islands was the sharp retired, others were welcomed and the the relationships. In this modern age there are demand in the private sector due to the reasons decrease in the value of the Euro against the Chairperson and Vice-Chairman of the Board many ways to communicate through more and mentioned above. Annual inflation remained USD Dollar and thus the pegged Antillean changed. Our esteemed Board member Tony more sophisticated electronic means. But the at a very acceptable 1.3%, mainly because Guilder and Aruban Florins. From a high of Allen retired after many years on the Board. most important factor in communication is of the decrease in prices of food and crude ANG 2.53 per Euro in May to a low of ANG 2.20 Tony’s input and down to earth, common sense still the language of communication for people oil. For 2015, the Central Bank expects the in December 2014. In the mid-term, this could knowledge and experience in banking will be to understand each other. The three islands world economy to grow thanks to accelerated have especially consequences for Curaçao, greatly missed. We wish him all the best. We of Aruba, Bonaire and Curaçao have a unique production growth and that this will result in a whose fledging tourism sector is dependent also said goodbye to Kevin Teslyk, who took language called Papiamentu(o), of which more small growth of 0.4% for the Curaçao economy. largely from European visitors. another challenge within Scotiabank and and more is known. In this Annual Report, resigned as Supervisory Board member. On we have one of the islands’ linguists give his Contrary to Curaçao, the Sint Maarten In Curaçao, 2014 marked the first full year the other hand, we welcomed Steve Cozier and findings and comments on the development of economy grew for the third year in a row, of the reigning government coalition after a Bruce Bowen to our Board. Both Steve and our Papiamentu language. with 1.7% (0.9% in 2013 and 1.5% in 2012). tumultuous 2013 with several changes. This Bruce are seasoned bankers and we are sure The inflation rate decreased somewhat from gave the citizens of Curaçao some sense of they will bring new insights and experiences What the year 2015 will bring, nobody 2.5% in 2013 to 2.1% in 2014; both are very stability and continuity, although there were to our Bank. In our March meeting the knows, but we do know that our Group is acceptable rates. The growth in Sint Maarten the usual political discussions. During the shareholders approved for Claude Norfolk to well prepared for any challenge awaiting us was mainly caused by the hotel and restaurant year, the discussions about the government become chairman and Ron Gomes Casseres and we will continue to pro-actively seek sectors, because of the increase in stay-over budget and the government debt in Aruba to become vice-chairman of our Bank. We new opportunities for growth for all our and cruise tourism. The Central Bank expects escalated to the level of our Kingdom whereby appreciate Claude and Ron taking the challenge stakeholders and the communities we serve. the economy in Sint Maarten to grow further the disagreements reached a pinnacle with to lead our Group and their experience and to 1.9% in 2015, driven by developments in the the Aruban Prime Minister going on a hunger knowledge will be very much needed. We thank our countries and economies tourism and transport sectors. strike. Fortunately the Aruban and Dutch Nicole Henriquez for the more than 10 years In Curaçao, the changes in governments since governments reached an agreement to improve she served as chairperson of our Bank and 2010 and the different measures taken, caused The three islands of Caribbean Netherlands the Aruban public finances and balance the helped lead us through all the challenges. We the private sector to in 2014 again postpone also experienced decreases in their inflation budget. August elections in Sint Maarten are very glad that she will remain on the Board. large investments and even some consumption. rates at the end of the year after initial resulted in a large victory for the United Now that the government’s budget seems to increases. The Dutch government, together People’s Party (UP), taking seven of the fifteen After a long career within Scotiabank in eight be balanced for 2 years in a row, it is expected with the local governments, continues to seats in parliament. After working out some countries and six eventful years with our MCB that the confidence to invest will come back in work on improvement of the local economies issues, in December a new government was Group, Joe van Dongen retired as Managing the private sector. The start of construction of and infrastructures to the advantage of all its installed by the Governor. Director in June. Joe was instrumental in a brand new ANG 400 million hospital on the citizens. [ 2 ] [ 3 ] MCB Group’s total assets increased with a strong 8% or ANG 485 million, and reached ANG 6,665 million and thus for the first time passed the ANG 6.5 billion mark! According to the Central Bank of Aruba, the first time ever in Curaçao a private label credit Gross Domestic Product of Aruba grew a card was launched. This Goisco Elite credit card modest 1.6% in 2014 after a robust growth of was an initiative of Goisco Wholesale Club and 4.8% in 2013.