Annual Report // 2012 Highlights of Consolidated Position
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ANNUAL REPORT // 2012 HIGHLIGHTS OF CONSOLIDATED POSITION 2012 2011 2010 Total Assets NAf * 6,043,585,000 5,806,865,000 5,983,557,000 Total Customers’ Deposits 5,135,810,000 4,946,880,000 5,192,685,000 Total Loans and Advances 3,851,159,000 3,646,337,000 3,400,740,000 Capital Funds 652,295,000 588,449,000 535,283,000 Net result after tax 143,676,000 137,125,000 135,043,000 Staff 1500 1485 1473 * Netherlands Antilles Guilders NAf. 1.79 = US$ 1.00 Affiliated with The Bank of Nova Scotia Toronto, Canada 1 MANAGEMent’s RepoRT In 2012, the saying “May you live in interesting times” was in the year 2013, when our communities commence the often used in one way or the other in our communities. commemoration of two hundred years since the formal And the year 2012 was certainly very interesting for our establishment of the Kingdom of the Netherlands. Bank, our country and several of the countries that we do a great deal of business with. In both Venezuela and the United States, the incumbent Presidents won the elections which hopefully will result Not only were there elections in Curaçao for the first in greater stability. But time will tell if this is the case. time since the constitutional restructuring that took place in our Kingdom in 2010, but there were also For our Bank the year 2012 was very interesting, if not elections in The Netherlands, the United States and in challenging, as was expected. The Bank adjusted to Venezuela. the environments in its three different jurisdictions and introduced some exciting new products and services in After much internal debate, in Curaçao the ruling all markets. It was also the year in which we officially coalition since October 10, 2010 could not count on a opened our beautiful new Lio Capriles Banking Center in majority in Parliament anymore and came to an end Curaçao and in which we did some major maintenance in August of the year. It was replaced by a temporary on the Group’s head office in Punda. Also during 2012 interim Government, which was supported by a new the first part of the major renovation and construction of majority in Parliament. After the elections of October our head office in Sint Maarten was completed and the 19th a new coalition Government was formed that decision was taken for the construction of a new building assumed its responsibility on December 31st of the year. in Oranjestad, Aruba. The planning and work on these Together with the Curaçao community, we hope that buildings have once again made us aware and confirmed this Government will tackle some very long outstanding that our Bank is a bank anchored in our historic and issues and will bring stability and much needed new always lively inner cities. While other companies have prosperity to our country, despite serious financial moved their main offices out of our cities, our Bank has difficulties. In The Netherlands, elections were held in remained in the bustling capitals of our countries. In this September after the reigning coalition government fell Annual Report, we tell the stories of the life and times in in April because of disagreements on the budget deficit. and of these cities since being established. Shortly after the elections a new coalition government was formed, which immediately had to face the During the year, we saw only one change in our Board challenging financial situation there. of Supervisory Directors. Our longest tenured member, Eduardo de Veer regretfully gave us notice of his wish to The two new governments in the two largest countries in retire from the Supervisory Board. During the fourteen the Kingdom have stated their intentions in strengthening years on the Board, Eduardo was an entrepreneurial, the relationships between the two countries, especially stabilizing and very knowledgeable member and we 2 3 will surely miss his commitment and very insightful and According to data of the Centrale Bank van Curaçao en the Dutch under-minister of Finance together with the concept was also introduced with the opening of the valuable contributions. We wish him all the best! Sint Maarten (CBCS), the Curaçao economy contracted In May the local currency Kompa governments of the three islands reached an agreement branch at Mangusá Hypermarket at the end of 2011. This with 0.1% during 2012 after a modest growth of 0.6% on ways to give the economies a boost and reduce some “non-cash branch” has already proven to be a modern Leon-Fun Miles card was launched After 45 years working for our bank in Bonaire, and in 2011. The contraction was caused especially by a of the key tax rates. After inflation figures between 5.4% way of going forward in optimizing service to our clients. managing it since 1977, Evert Piar went on a well-earned decline in domestic demand that was felt in the retail which rewards our personal clients and 10% in 2011, the inflation in 2012 “normalized” to a The process started in 2011 to completely re-style our retirement. Evert was the face of the Bank in Bonaire and wholesale sectors. Annual inflation reached 3.2% as with FunMiles points when using modest 2.9% on Bonaire, 5.2% on Sint Eustatius and 3.7% Bankomatiko/ATM sites was continued during 2012 and and very well known in the community, not only for a result of both local and international factors. For the on Saba. this has improved their accessibility and security for our his services to our clients, but also for his numerous year 2013, the CBCS expects a further contraction by the card. At the end of the year clients. activities for and with the community. We welcome 1.6% due to further decrease in local private and public our Bank introduced the USD On Aruba the Centrale Bank van Aruba (CBA) reports a Leonard Domacassé, who assumed the responsibilities spending as well as a decline in net foreign demand. denominated MasterCard Black contraction of the economy in 2012 of 1.2% after a period We started the year with the launch of a new car loan which Evert held. of healthy growth in 2011. The economy was heavily product VROOOM, with special features and whereby In November Standard & Poor’s Rating Services followed Business card especially for the impacted by uncertainty regarding the future of the oil clients receive a special VROOOM gift card that can be We enter 2013 with new hope, new opportunities and up on their 2011 credit rating report for Curaçao (‘A-‘ business community. We are proud refinery and termination of the contracts with most of its used at more than 4000 stores. It was also the year in strengthened commitment to be able to continue the long-term and ‘A-2’ short-term) and downgraded the and grateful that both these cards employees at the end of the year. This negative effect which, after years of development, we proudly introduced growth of our Bank for our employees, shareholders and outlook to negative, because of a deterioration in budget was partly compensated by buoyant tourism. According two more (credit) cards. In May the local currency Kompa the communities we serve and we have confidence that discipline and the pension and public health funds. have attracted much demand from to the CBA, the government finances require continuous Leon-Fun Miles card was launched which rewards our we are well prepared for the next “interesting times”. our clients. prudent fiscal management. personal clients with FunMiles points when using the After a weak economy in 2011 that contracted by 1.5%, card. In 2010 our Bank joined the FunMiles program, OUR COUNTRIES AND ECONOMIES in 2012 the economy of Sint Maarten showed signs of OUR BANK which is the largest loyalty organization in the Dutch Because of the uncertainties, among others in the recovery by growing a modest 0.8% with an inflation For the Bank, 2012 again was a very interesting and Caribbean. At the end of the year our Bank introduced political arena, it was not surprising that the year rate of 4.0%. The growth was mainly due to increased busy year. Many initiatives, started in years before, were the USD denominated MasterCard Black Business card 2012 was challenging in terms of economic growth in stay-over and cruise tourism which also contributed finalized and the year gave birth to the implementation especially for the business community. This card rewards all our markets. Especially in Curaçao investors and to favorable developments at the airport and harbor, of several new plans. As mentioned above, in Curaçao our clients with miles from another longstanding partner business people adjusted, cancelled or at least slowed in wholesale and in retail sectors. For 2013, the CBCS we officially opened the beautiful and centrally located of our Bank: American Airlines AAdvantage miles. We are the pace of their plans and developments for many expects a growth of 1%, based on a further increase in Lio Capriles Banking Center (LCBC) in February. It is proud and grateful that both these cards have attracted projects. In Aruba, there were uncertainties regarding tourism, driven by a measured recovery of the world now the place where about 200 of our colleagues work much demand from our clients. the continuation of the Valero Refinery, which slowed economy. in modern and state-of-the-art working surroundings. the growth of the economy while Sint Maarten showed With a spacious branch on the ground floor and several Our state of the art Contact Center was instrumental in signs of recovery after the financial crisis thanks to In Caribbean Netherlands the citizens still are looking for major departments on the upper floors, LCBC has assisting the activation of the cards and has also showed strong growth of tourism.