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TUESDAY, APRIL 28, 2020
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PRIME Minister Dr Hubert Minnis. PHOTO: Yontalay Bowe/BIS
PM: ‘No timetable’ for phased re-open By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE prime minister yesterday declined to give timelines for re-opening the Bahamian economy as he unveiled a six-phase strategy for achieving this objective. Dr Hubert Minnis, in unveiling the staged approach recommended by the National COVID-19 co-ordinating committee, said The Bahamas’ progress through the six stages will be determined by “metrics and advice by the healthcare professionals”. His plan showed that The Bahamas has a long way to go to achieve the full re-opening of its economy as, based on the details unveiled by the prime minister, it remains firmly in Phase 1A - the first of the six phases, or curfew/lockdown mode. Reaching 1B, the next phase of the re-opening strategy, would permit businesses to offer pick-up and delivery services if they are able to do so. Home, hardware and auto parts stores will be able to open for five days per week via online and “curbside” services, while New Providence’s construction industry would also be allowed to re-open. Phase 2, involving “expanding operations”, would allow all businesses to open on Family Islands where COVID-19 is not present. Businesses that “can scale up” to offer delivery and pick-up services will also open, along with services, healthcare and manufacturing companies that can maintain social distancing. The third phase, described as “beginning the new normal”, would allow “non-essential” retail stores to open with critical staff only, and all necessary
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Spending ‘explosion’ with SOE losses squeeze govt By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net MOUNTING losses at troubled state-owned enterprises (SOEs) are squeezing the government amid “exploding” welfare demands, a Cabinet minister adding: “All arrows are pointing the wrong way.” Dionisio D’Aguilar, minister of tourism and aviation, told Tribune Business that the COVID-19 lockdown had exacerbated the “cash haemorrhaging” at longstanding loss makers that are grounded without any revenue income - such as Bahamasair. Revealing that the government is facing an “increasingly negative cash flow” position at many SOEs, Mr D’Aguilar said it was seeking to maintain employment levels despite the growing drain they pose to an already over-burdened Public Treasury that is struggling to cope with the demands imposed by the pandemic. And, while the government has yet to develop a solution for its SOE headache, he argued it was “a dream” to believe it simply borrow $2bn to address all the country’s
• Would have placed increased burden on itself • By making non-profits ‘incapable’ of operating • Sector’s society services faced cut-back
DIONISIO D’AGUILAR woes given the debt this would load on future Bahamian generations. “The government has not decided at this time to alter the cost structure of these entities,” Mr D’Aguilar told this newspaper, “but in so doing your expenses are remaining virtually the same with no revenues coming in to offset those expenses. “Your losses are mounting, and you cash flow is growing more negative by
the minute. That’s forcing these entities to lean on what they deem their lender of last resort, which is the Government of The Bahamas. “We have a drastically reduced amount of tax revenues coming in, but the losses from these SOEs are mounting and it’s presenting a cash flow problem for the Ministry of Finance to have to address. Nobody wants to be in this situation. It’s an
THE Downtown Nassau Partnership’s (DNP) co-chair yesterday said the $250m cruise port developer’s decision to push ahead will provide a major confidence boost in “the darkest stages” of COVID-19. Charles Klonaris told Tribune Business that despite the “quite bleak” outlook, with Bay Street and the city of Nassau “completely shutdown” due to the government-imposed nationwide lockdown, it was “only a matter of time” before tourism and commerce returned. Arguing that it was critical to launch Prince George Wharf’s transformation before the cruise industry revives, Mr Klonaris said the departure of many international banks and trust companies to office
unfortunate situation, but in the business world you would characterise something like this as a situation where you are haemorrhaging cash.” The government collectively allocated almost $414m in subsidies to SOEs in the 2019-2020 budget. Although more than 50 percent, or $223.445m, was given to the Public Hospitals Authority (PHA), the likes of Bahamasair ($23.293m); Water & Sewerage ($25m); Broadcasting Corporation of The Bahamas ($7.578m) continue to bleed Bahamian taxpayers and the Public Treasury. Mr D’Aguilar said tourism-dependent SOEs such as Bahamasair and Nassau Flight Services, which itself was due a $1.8m subsidy, have shut down but still have their pre-COVID-19 cost structures given that no temporary lay-offs or other expense-cutting measures have occurred.
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Ramp-up COVID-19 testing to stop ‘economic damage’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas is in danger of “doing considerably more damage to the economy than it needs to” unless COVID-19 testing is massively ramped-up, a well-known businessman warned yesterday. Robert Myers told Tribune Business that the government was locking down the country for another month on the basis of insufficient data due to the fact not enough Bahamians and residents have been tested to see whether they are carrying the potentially deadly virus. Speaking before Dr Duane Sands, minister of health, confirmed to the House of Assembly that less than a quarter of one percent of the Bahamian population have been tested, Mr Myers argued that decisions were being taken using incomplete data that was “heavily skewed”
• Fears lock down based on insufficient data • ‘Won’t re-open any time soon’ if no testing • Investment less than ‘millions’ in losses
ROBERT MYERS because the sample size is so small. While The Bahamas’ COVID-19 death rate appeared “awfully high”, this is based on 11 fatalities out of the 80 cases detected so far. However, the businessman argued that COVID-19 was likely to be far more widespread
than these statistics indicated through asymptomatic carriers of the virus who show no signs of ill-health whatsoever. It was reported yesterday that almost 25 percent of New York residents have tested positive for COVID19 antibodies. While this suggests more than 2m of the city’s 8.4m population may have become infected by COVID-19 at some point, it also places the mortality rate at 0.5 percent (11,460 confirmed deaths), and Mr Myers said rampedup testing would likely produce similar results in The Bahamas. While praising the prime minister’s six-phase economy re-opening plan as “fine” and “looking good” (see other article on Page
Port’s confidence boost in COVID-19 ‘darkest stages’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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• DNP co-chair looks to future amid ‘bleak’ present • ‘No quick turnaround’ for downtown post-virus • Hopes lower rental rates can aid diversifying
PROPOSED development of Nassau Cruise Port. locations in western New Providence had left downtown Nassau reliant on tourism as its sole economic engine. He suggested, though, that the area’s lower rental rates will help attract law firms and small businesses back to the city in the
pandemic’s aftermath due to the lower rental rates on offer compared to areas such as Albany, Lyford Cay and Old Fort Bay. “It’s really important we get this new port underway,” Mr Klonaris said, after Tribune Business revealed that Nassau Cruise
Port is planning to raise up to $150m next month via a bond issue to finance construction activities. “I think that should play a major role in the redevelopment of the city. “I feel they should be able to get the $150m they’re trying to raise. We’re in the darkest stages of this virus, and looking around it appears quite bleak, but I think we have to take the long-term perspective. I think bringing back confidence is key, and I think a shrewd investor will look at this long-term; not just for six months or a year. “It’s only a matter of time, I believe, before the
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1B), Mr Myers said its release had not done enough to instill hope and confidence into the private sector that better days lie ahead in the absence of increased testing to give a better idea of when this will happen. “I’m telling you right now that I don’t believe we’ve done enough to understand the reality of what’s happening,” Mr Myers told Tribune Business. “I don’t have enough hope that if we don’t start doing that, and don’t start testing more intensely, that we’re going to open up any time soon. “My biggest concern is by not doing that we continue to shut down the economy and do considerably more damage for a longer period
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$3.28 Heart doctor heads to Privy Council on RoyalFidelity claim By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A TOP Bahamian heart doctor has been given conditional leave to appeal to the Privy Council in his dispute with a local merchant bank over a margin loan. The Court of Appeal granted Dr Conville Brown permission to take his case to the highest court in the Bahamian judicial system provided he lodges a $2,861 security to cover costs and send the necessary legal papers to the UK. He is appealing a Court of Appeal ruling ordering him to pay almost $300,000 to RoyalFidelity Merchant Bank & Trust after losing his “negligent/fraudulent misrepresentation” claim against it. The Court of Appeal had found Dr Brown “was in breach” of a near two decade-old agreement he made to borrow money from the Bahamas-based investment bank. The loan, which was secured against the value of the stocks and securities in his brokerage account at RoyalFidelity, stipulated that the sum borrowed must never exceed 50 percent of these investments’ collective value otherwise it would fall into default. These securities were valued at $329,751 when the loan was agreed on February 17, 2000, and RoyalFidelity agreed to advance a margin facility of $164,875 that was worth 50 percent of the collateral pledged. However, the Bahamian stock market - and value of the securities in Dr Brown’s brokerage account - plummeted after the September 11, 2001, terror attacks and failed to recover. This placed the loan facility in default, and caused RoyalFidelity to make a “margin call” on October 4, 2002. It warned the well-known cardiologist that his securities investments “had so declined in value” that he was now only eligible for a $98,111 margin loan, and had accumulated a $179,773 overdraft. Offsetting the two sums, Royal Fidelity told Dr Brown he either had to increase the amount of securities in the brokerage account or pay the $81,662 difference to bring the margin loan back into compliance with the 50 percent threshold. While some of this sum was paid, RoyalFidelity initiated legal proceedings
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PAGE 2, Tuesday, April 28, 2020
THE TRIBUNE
Pandemic drives growing estate planning interest
COVID-19 Relief: We are here for you Bahamas As we cope with the effects of the COVID-19 virus, we want to help affected customers with our Customer Assistance Program (CAP). We are offering deferrals on loan payments for personal and small business customers (SMEs) for up to 6 months* (payments will be deferred for a period of 3 months with the possibility of extension for a further 3 months). Customers will now get automatic suspensions on loan payments including:
Personal Loans
Auto Loans
Line of Credit
Credit Card holders including SMEs will also receive automatic payment deferrals until July 2020. Card holders will not be required to make any minimum payments and will not be charged late or non-payment fees during this time. Mortgage payment suspensions can be specially requested for up to 6 months*. If you are a Private Banking or Commercial customer, please contact your Relationship Officer immediately so we can work with you on solutions to meet your needs during this challenging period. Although no payments may be due during the deferral period, interest will continue to accrue and will be payable at a later point in the loan’s cycle. This offer will be available until September 2020. To submit a deferral request of your Scotiabank Mortgage loan,
Sign in to Online Banking at bs.scotiabank.com or call 242-356-1697
THE COVID-19 pandemic has sparked increased interest in estate planning among Bahamians, a longserving trust professional says. Dianne Bingham, Leno Trust’s managing director, said she is receiving a record number of inquiries from persons “wanting to have a plan in place” for the transfer of assets to children, spouses and others they wish to legally protect. Explaining that the COVID-19 pandemic is forcing persons to focus on their vulnerability and mortality, she said: “Though always a factual reality, COVID 19 has pushed the reality of our vulnerability and mortality to the forefront once again. “People of all ages and income levels are inquiring about structured planning and taking action to legally protect loved ones should something happen to them as a result of COVID19. We have experienced episodes of rampant diseases, hurricanes, natural disasters and each one forces persons to stop and reflect on their vulnerability and mortality. “This current pandemic, which has again highlighted the need to always be prepared, has manifested into inquiries by Bahamians from all levels of society reaching out to discuss succession planning. We are hearing a sense of relief in learning that there are solutions including trusts and other asset holding structures available to successfully address this concern.” The increased interest in estate planning as a result of COVID-19 is not limited to The Bahamas.
DIANNE BINGHAM, Leno Trust’s managing director. Concern with preparing for the future has driven activity to websites, with one US-based estate planning platform reporting a better than 120 percent jump in inquiries in just a few weeks. The virus, which still has no known preventative vaccine, has already taken more than 200,000 lives worldwide since it was first reported in Wuhan, China, in late September. There have been some 3m confirmed cases world. Mrs Bingham, meanwhile, warned against Bahamians rushing into poor choices in the haste to protect their hard-earned assets for future generations. “While I am pleased that millennials, who normally give little or no thought to asset planning, are now taking it seriously, I encourage them to take time to understand the trust concept and the important difference between naming a friend you believe will do the right thing after you are gone versus the benefits of appointing a corporate trustee,” she said. “The corporate trustee, in addition to having professional experience, provides guarantee of continuity and regulation, being held to a
higher standard. There is a reason why those who have substantial assets to protect do so through a corporate trustee. “Sadly, many with fewer assets turn to a friend or relative with no training or experience managing assets, who may not survive for the required period,” Mrs Bingham explained. “Strange things happen to people when they suddenly get their hands on money they did not earn themselves. Many who have the best intentions initially end up not protecting the ones they were charged with looking after.” Oversight for the individual is his or her own integrity, she explained, while oversight for the corporate trustee is through internal and external regulation. Layers of internal control create checks and balances for the corporate trustee, who must also fulfill reporting and transparency requirements. “Bahamians, by and large, are far more aware these days of the value of a trust, which avoids the lengthy process of probation, allowing transfer of assets to loved ones the way the creator of the trust intended,” said Mrs Bingham. “There is still a way to go in educating the public about the difference between naming a friend or relative and appointing a corporate trustee. You can think of it this way. When you need your vehicle repaired or dental work, you turn to the trained professional. Why would you do any less when it comes to something as important as your family or loved ones’ financial future?”
Scotiabank reiterates warning on fraudsters SCOTIABANK (Bahamas) yesterday repeated warnings that fraudsters are trying to deceive customer into parting with their private financial information. The bank again said it had received reports of customers receiving phone calls and text messages claiming there is an issue with their account. It added that the number 242
356-1560 was not a Scotiabank number, and any calls received from it were not coming from the bank. Scotiabank described such calls and messages as “phishing”, which is a fraudulent technique where criminals bait customers into handing over bank account details, passwords and access codes using scare tactics and
fake information. Urging customers not to respond, Scotiabank (Bahamas) said it will never contact them asking for confidential information such as their Automated Teller Machine (ATM) PIN or any passwords. The bank reminded clients that PINs and passwords must be kept confidential and not shared with anyone.
Spending ‘explosion’ with SOE losses squeeze govt FROM PAGE ONE “This is an issue that has to be addressed at some stage if the revenue situation doesn’t improve,” the minister reiterated. “What the solution is, I don’t know, but the government would obviously like to maintain headcount as best as possible. “Let me be painfully clear: The government has not come up with a solution to address the increasingly negative cash flow situation. It’s concern. It doesn’t take a brain surgeon to figure that out. Bahamasair’s planes are parked. You have no revenue coming in but your cost structure remains unchanged; the fixed costs you incur when you fly. “This is a problem. The business model has changed. You’ve got no revenue, and the signs are that tourism is going to take a while - first of all, to come back, and then ramp up. Some are saying it will take two to three years to ramp up to pre-COVID-19 levels,” Mr D’Aguilar continued. “You have a cost structure and business base that
already operates at a loss pre-COVID-19, and now you will have reduced business after the pandemic. That inevitably leads to increased losses just at a time when demand on the public purse for social assistance and the like has exploded. “You have all these arrows heading in the wrong direction; revenues going down and expenses going up. It’s indicative of the entire business of government.” Mr D’Aguilar said the tourism shutdown, and subsequent economic lockdown post-COVID-19, had created “a massive hole” in the government’s available resources as the lack of activity meant all tax revenue streams had slowed to a trickle. Noting that the government had initially projected a $137m deficit for 20192020, the minister said it was simply impossible to go out and borrow $2bn - as suggested by the opposition’s deputy leader, Chester Cooper - to both cover its own financial “red ink” and stimulate the economy. “It’s not like you can adapt your cost structure to a new
reality with far less revenue whatever that number may be, $500m less or $1bn less,” Mr D’Aguilar said. “Just to maintain the status quo and keep people employed may require you to find $1bn to close the revenue gap. “There’s no way you can borrow $2bn. That’s a dream. You may have to borrow half of that amount just to keep the status quo. The private sector is a lot more nimbler, so they just lay everybody off. If the government adopts the same approach, it would be catastrophic. “This is a very difficult situation. You cannot print money. You have to try as best as possible to live within your means, and if you have to borrow something they will only lend you money if you can demonstrate how to pay it back,” the minister continued. “The great unknown is when this will end. It may take a number of years for people to come back. The COVID-19 scenario is a double whammy: Nobody is travelling and the domestic economy is on lockdown. Economies thrive on activity.”
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THE TRIBUNE
Tuesday, April 28, 2020, PAGE 3
NIB: 20K JOBLESS CLAIMS PROCESSED
By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net
THE National Insurance Board (NIB) has paid out $16m in benefits, and processed more than 20,000 unemployment benefit claims, during the first month of the COVID-19 lockdown. Brensil Rolle, minister of the public service and national insurance, told the House of Assembly, though, that “duplicate applications” had impacted the self-employed benefit initiative being administered by NIB. Of 8,800 claims, only 7,200 or 81.8 percent were determined to be original submissions. “In terms of the unemployment benefit programme, NIB has - from March 20 to April, 25 that’s one month - processed over 20,000 unemployment claims and paid out approximately $16m during this time period,” Mr Rolle said. “Many of these claims have been settled through innovative arrangements with employers where NIB pays the employees the unemployment benefit payments through the employer. In return, some employers have opted to
BRENSIL ROLLE receive a credit on their contribution accounts or, as in most cases, NIB pays the employer upfront. In other cases, NIB processes the payments directly.” However, Mr Rolle added: “NIB continues to have about 2,500 claims who are either awaiting contributions statements from employers or the posting of those contributions. We continue to ask employers to send in their C10s for March 2020 in a timely manner, and in the prescribed form, which will allow the NIB staff to quickly post the contributions credits to employee accounts.” Turning to the unemployment assistance made available to selfemployed Bahamians, the minister said the
“application process has been moving steadily”. He added: “While NIB has received over 8,800 applications, many of these have been duplicate applications. NIB’s analysts ascertain that there were 7,200 unique applicants. “Of these, approximately 5,000 have been approved and paid, or are in process to pay. Some $2.7m has been disbursed with the majority going to bank accounts. About 1,800 have been denied mainly due to the lack of required information, including a business licence in the case of the non-tourism related self-employed applicants. There are about 400 applications pending adjudication.” Mr Rolle said NIB was “seeing a decline in the number of new applications, indicating that those who fall into the various categories covered by this programme have already applied”. He added that employer use of NIB’s selfservice (ESS) portal was increasing, and said: “Since March 20, 2020, when the emergency orders took effect, some 283 additional employers have registered for the ESS online portal, added to the 125 already enrolled in it. Again, this
Govt in $455k packing house upgrade project By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE government will spend $455,000 to renovate Family Island packing houses in an initiative set to start on May 1, a Cabinet minister said yesterday. Michael Pintard, minister for agriculture and marine resources, told the House of Assembly: “The long overdue renovations to packing houses in San Andros, Clarence Town and Lower Bogue, Eleuthera, will commence May 1, 2020. Contracts have already been initiated in the amount of $454,840.” “We intend, in the new Budget cycle, to complete the renovations of the other packing houses and, as signalled in previous contributions in this House, we are expecting that we will be able to come with an RFP (request for proposal) to give Bahamians who have an interest in a public-private partnership with government to operate such packing houses. That is something that can take place. “We believe that there are
CONTRACTORS ‘DISAPPOINTED’ NOT ON RECOVERY COMMITTEE By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE Bahamian Contractors Association (BCA) yesterday said it was “disappointed” that itself and the construction industry are not represented on the Prime Minister’s Economic Recovery Committee. Michael Pratt, the BCA’s president, told Tribune Business: “The prime minister must be commended for his efforts in fighting this pandemic. The new appointments are applauded, but I’m disappointed that the construction industry is not at the table. “Construction is the third pillar in our society, and is scheduled to be included in the second tier to be opened. Post COVID-19 pandemic, we recognise the mobilisation of our workforce is critical to restoring our economy. “Therefore we must be extremely careful when we consider our already stressed-out healthcare system upon reopening. It’s great to access academia, but we must use the engineers, architects and contractors who sit at the front of this industry. This industry is
MICHAEL PINTARD agri-business persons as well as cooperatives of Bahamian farmers who have the capacity to effectively operate the feed mill, the packing houses, without disadvantaging the people we presently serve.” Mr Pintard added that he expects the abattoir to re-open today, while telemedicine will be made available for New Providence farmers to discuss issues with their livestock. The Ministry of Agriculture and Marine Resources, meanwhile, is still facilitating import and export permits for livestock. To combat the “threat” to the fisheries industry, Mr Pintard said he will “continue to police” the sector. His ministry is pledging $254,520 too important to be left to a sub-committee.” Mr Pratt added that the last BCA Board meeting adopted the position to work towards opening the industry under the guidelines of health officials. “Post COVID-19, we do recognise that the mobilisation of forces and work projects is critical to restoring our economy. When we consider our already-stressed out healthcare system we must be extremely careful,” he added. “We cannot make thoughtless or reckless decisions regarding our precious human resource of workers. We not only need construction crews and workers to continue the reconstruction post-Dorian, but also to restore this economy on its way back to a healthy state after the sector is reopened. “There are serious questions and training that have to be addressed when considering the opening of construction in Nassau. We must ensure the continued healthy state of our construction workforce. We believe that we must do the best research we can, but we must follow the lead of our health officials to properly open the construction industry. “ Mr Pratt said the BCA stands ready to assist the Prime Minister with the phased re-opening of the Bahamian economy. “In Abaco and Freeport, according to a board member, significant construction is advancing under the guidelines of the Ministry of Health,” he added.
in an effort to secure an additional three vessels for Abaco, Bimini and Grand Bahama to help the ministry deal with “threats from the north and south”, along with “threats from within” caused by persons who use inappropriate fishing practices. Mr Pintard reiterated that “farmers and fishers are essential for food security in The Bahamas”. Once all medical protocols have been put in place, he aims to create fish markets in addition to encouraging persons to buy Bahamian. He added that private and public resources will be channelled to local producers who manufactuer various canned preservatives, in addition to funding livestock producers who have “the capacity to cut meats to the specification that have been outlined by wholesalers and retailers”.
allows employers to easily manage their contributions payment accounts with NIB.” Mr Rolle, meanwhile, said the National Insurance Board (NIB) legislation will have to be amended
if the government decides to increase the period during which Bahamians can receive unemployment benefits from 13 weeks to 26 weeks. He was responding to the Chamber of Commerce and Employers
Confederation director responsible for labour matters, Peter Goudie, who said was he hoping the Government will extend the unemployment benefits from 13 weeks to 26 weeks as they did after Hurricane Dorian.
PAGE 4, Tuesday, April 28, 2020
Deloitte & Touche Chartered Accountants and Management Consultants 2nd Terrace Centreville P.O Box N-7120 Nassau, Bahamas Deloitte & Touche Tel: +1 (242) 302 4800 Chartered Accountants Fax: +1 (242) 322 3101 and Management Consultants www.deloitte.com/bs 2nd Terrace Centreville P.O Box N-7120 Nassau, Bahamas Tel: +1 (242) 302 4800 Fax: +1 (242) 322 3101 www.deloitte.com/bs
INDEPENDENT AUDITORS’ REPORT To the Board of Directors of Citco Bank and Trust Company (Bahamas) Limited INDEPENDENT AUDITORS’ REPORT Opinion To Board of Directors of Wethe have audited the consolidated statement of financial position of Citco Bank and Trust Company Citco Bank and Trust (Bahamas) Limitedas at December 31, 2019. (Bahamas) Limited andCompany its subsidiaries (the Group)
Opinion In our opinion, the accompanying consolidated statement of financial position present fairly, in all We have respects, audited the statement of position financial of position of Citco and Trust31, Company material theconsolidated consolidated financial the Group as Bank at December 2019 in (Bahamas) and its subsidiaries Group) Standards as at December 31, 2019. accordanceLimited with International Financial(the Reporting (IFRSs). In ourof opinion, the accompanying consolidated statement of financial position present fairly, in all Basis Opinion material respects, the consolidated financial position of the Group as at December 31, 2019 in We conducted audit in Financial accordance with International Standards on Auditing (“ISAs”). Our accordance with our International Reporting Standards (IFRSs). responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of consolidated statement of financial position section of our report. We are independent of Basis of the Opinion the Group in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (“IESBA” Code), and we have fulfilled ouronother ethical(“ISAs”). responsibilities We conducted our audit in accordance with International Standards Auditing Our in accordance with thethose IESBA Code. We the audit we have obtained is sufficient responsibilities under standards arebelieve further that described in evidence the Auditor’s Responsibilities for the and appropriate to provide a basis for opinion. audit of the consolidated statement of our financial position section of our report. We are independent of the Group in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics Emphasis of Matter for Professional Accountants (“IESBA” Code), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient Without qualifying our opinion, that the consolidated statement of financial position do and appropriate to provide a basiswe foremphasize our opinion. not comprise a complete set of consolidated financial statements in accordance with International Financial Reporting Emphasis of Matter Standards. Information on the consolidated income statement, cash flows, changes in equity and a summary of significant accounting policies and other explanatory information are necessary to obtainour a complete understanding of the position, performance andposition changes Without qualifying opinion, we emphasize that the financial consolidated statement of financial doin financial position of the Group. not comprise a complete set of consolidated financial statements in accordance with International Financial Reporting Standards. Information on the consolidated income statement, cash flows, changes Responsibilities of Management and accounting Those Charged with for the Consolidated in equity and a summary of significant policies andGovernance other explanatory information are Statement of Financial Position necessary to obtain a complete understanding of the financial position, performance and changes in financial position of the Group. Management is responsible for the preparation and fair presentation of the consolidated statement of financial position in accordance with IFRSs, and for such internal control as management determines Responsibilities of Management and Those Charged with Governance for the Consolidated is necessary to enable the preparation of the consolidated statement of financial position that is free Statement of Financial Position from material misstatement, whether due to fraud or error. Management is responsible forstatement the preparation and fair presentation of the is consolidated of In preparing the consolidated of financial position, management responsiblestatement for assessing financial position with IFRSs, and for disclosing, such internal as management determines the Group’s abilityintoaccordance continue as a going concern, as control applicable, matters related to going Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related is necessary to thearepreparation ofindependent the consolidated statement of financial that isclients. free concern and thefirms going concern of accounting unless either to liquidate entities. DTTL and each using of itsenable member legally separate basis and entities. DTTL (also referredmanagement to as “Deloitte Global”) doesposition notintends provide services to Please see www.deloitte.com/about or a more detailed description of DTTL and its member firms. Deloitte & Touche is an affiliate of DCB Holding Ltd., a member firm of from material misstatement, whether dueno to realistic fraud or alternative error. the Group or to cease operations, or has but to do so. Deloitte Touche Tohmatsu Limited. Those charged with governance are responsible for overseeing the Group’s financial reporting process. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about or a more detailed description of DTTL and its member firms. Deloitte & Touche is an affiliate of DCB Holding Ltd., a member firm of Deloitte Touche Tohmatsu Limited.
Auditor’s Responsibilities for the Audit of the Consolidated Statement of Financial Position
Our objectives are to obtain reasonable assurance about whether the consolidated statement of financial In preparing consolidated statement financial position, management is responsible fortoassessing position as a the whole is free from materialofmisstatement, whether due to fraud or error, and issue an the Group’s ability continue a goingReasonable concern, disclosing, relatedbut to going auditor’s report thatto includes ourasopinion. assuranceasisapplicable, a high levelmatters of assurance, is not concern andthat using going concerninbasis of accounting unless either intends to liquidate a guarantee an the audit conducted accordance with ISAs willmanagement always detect a material misstatement when it exists. can or arise fraud oralternative error and are the Group or toMisstatements cease operations, hasfrom no realistic but considered to do so. material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis the consolidated statementfor of financial position. Those charged withofgovernance are responsible overseeing the Group’s financial reporting process. As part ofResponsibilities an audit in accordance with ofISAs, we exercise Statement professionalofjudgment maintain Auditor’s for the Audit the Consolidated Financialand Position professional skepticism throughout the audit. We also: Our objectives are to obtain reasonable assurance about whether the consolidated statement of financial • Identify and assess of material misstatement ofdue the to consolidated financial position as a whole is free the fromrisks material misstatement, whether fraud or error, and toposition, issue an whether fraud orour error, designReasonable and performassurance audit procedures to those risks, auditor’s reportdue thattoincludes opinion. is a highresponsive level of assurance, but is and not obtainthat audit that is in sufficient and with appropriate to always providedetect a basis for our opinion. The a guarantee an evidence audit conducted accordance ISAs will a material misstatement risk of not detecting a material misstatement resulting from fraud is higher than for one resulting when it exists. Misstatements can arise from fraud or error and are considered material if, individually from error, as they fraudcould may involve collusion, forgery, intentionalthe omissions, or in the aggregate, reasonably be expected to influence economicmisrepresentations, decisions of users or the override of internal control. taken on the basis of the consolidated statement of financial position. • Obtain an understanding of internal control relevant to the audit in order to design audit As part of an audit in accordance with ISAs, we exercise professional judgment and maintain procedures that are appropriate in the circumstances, but not for the purpose of expressing an professional throughoutof thethe audit. We also: opinionskepticism on the effectiveness Group’s internal control.
Identify and assess the risks of of accounting material misstatement thethe consolidated financial position, •• Evaluate the appropriateness policies usedofand reasonableness of accounting whether due fraud or error, design andbyperform audit procedures responsive to those risks, and estimates andtorelated disclosures made management. obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not on detecting a material misstatement resulting fraud is higher than forof one resulting • Conclude the appropriateness of management’s usefrom of the going concern basis accounting frombased error,on as the fraud may involveobtained, collusion, forgery, intentional omissions, misrepresentations, and, audit evidence whether a material uncertainty exists related to events or the overridethat of internal control. or conditions may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in • our Obtain an understanding of internal controlinrelevant to the audit in order to design audit auditors’ report to the related disclosures the consolidated statement of financial position procedures that are appropriate in the to circumstances, but not Our for the purpose of an or, if such disclosures are inadequate, modify our opinion. conclusions areexpressing based on the opinion on the effectiveness control. report. However, future events or audit evidence obtained up oftothe theGroup’s date ofinternal our auditors’ conditions may cause the Group to cease to continue as a going concern. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting • Evaluate structure and content of the consolidated statement of financial estimatesthe andoverall relatedpresentation, disclosures made by management. position and whether the consolidated statement of financial position represent the underlying in a manner that achieves fair • transactions Conclude onand the events appropriateness of management’s usepresentation. of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events • Obtain sufficient appropriate audit evidence regarding the financial information of the entities or or conditions that may cast significant doubt on the Group’s ability to continue as a going business activities within the Group to express an opinion on the consolidated statement of' concern. we conclude that aLimited, material uncertainty exists, we(“DTTL”), are required draw attention in Deloitte refers to one or If more of Deloitte Touche Tohmatsu a UK private company limited by guarantee its network ofto member firms, and their position. We are responsible forindependent the direction, supervision and Global”) performance of the related financial entities. DTTL and each of its member firms are legally separate and entities. DTTL (also referred to as “Deloitte does not provide auditors’ to the related disclosures inofthe ofis an financial position services our to clients. Please seereport www.deloitte.com/about or a more detailed description DTTL consolidated and its member firms.statement Deloitte & Touche affiliate of DCB group audit. We remain responsible for our audit opinion. Holding Ltd., a member firm of Deloitte Touche solely Tohmatsu Limited. or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence up to with the date of our auditors’ futuretheevents or We communicate withobtained those charged governance regarding,report. amongHowever, other matters, planned conditions may cause the Group to cease to continue as a going concern. scope and timing or the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit. • Evaluate the overall presentation, structure and content of the consolidated statement of financial position and whether the consolidated statement of financial position represent the underlying transactions and events in a manner that achieves fair presentation. Nassau, Bahamas April 28, 2020 Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about or a more detailed description of DTTL and its member firms. Deloitte & Touche is an affiliate of DCB Holding Ltd., a member firm of Deloitte Touche Tohmatsu Limited.
ANNUAL REPORT 2019 ANNUAL REPORT 2019
ANNUAL REPORT 2019
Consolidated statement of financial position as at December 31, Consolidated statement of financial position as at December 31, Note
2019
2018
USD 000
USD 000
USD2019 000 December USD 000 Note 2018 Consolidated statement of financial position as at 31, Assets: Assets: Non-current assets Non-current assets Assets: Plant and equipment Rights-of-use assets Plant and equipment Non-current assets Rights-of-use assets
Plant and equipment Current assets Rights-of-use assets Current assets Trade receivables Other receivables receivables and accrued income Trade Current assets Receivables from affiliated companies Other receivables and accrued income Financial assets amortised cost Receivables fromataffiliated companies Trade receivables Financial assets assets at at amortised fair value through Financial cost other Other receivables and accrued income comprehensive Financial assets income at fair value through other Receivables from affiliated companies Cash and cash equivalents comprehensive income Financial at amortised cost Cash and assets cash equivalents Financial assets at fair value through other Total assets comprehensive income Total assets Cash and equivalents Equity andcash liabilities:
Note 2.9 2.10 2.9 2.10
17 225 17 225
2.9 2.10
17 225
2.11 2.12 2.11 2.19 2.12 2.13 2.19 2.11 2.13 2.12 2.14 2.19 2.15 2.14 2.13 2.15
623 546 623 140 546 7,461 140 623 7,461 546 99,993 140 72,711 99,993 7,461 72,711
2.14 2.15
99,993 72,711
2019
2018
USD 000
USD 000
242 242
242
181,474 181,474 181,716 181,716 181,474
22 – 22
22
–
22
22 –
22
704 498 704 95 498 3,326 95 704 3,326 498 – 95 315,839 – 3,326 315,839
– 315,839
320,462 320,462 320,484 320,484 320,462
Equity and liabilities: Total assets 181,716 320,484 Share capital 2.16 5,000 5,000 Retained earnings 55,370 53,039 Share capital 2.16 5,000 5,000 Equity andearnings liabilities: Total equity attributable to shareholder Retained 55,370 53,039 of theequity Company 60,370 58,039 Total attributable to shareholder Share 2.16 5,000 5,000 of the capital Company 60,370 58,039 Non-current liabilities Retained earnings 55,370 53,039 Total equity attributable Non-current liabilities to shareholder Lease 2.22 15 15 – – of the liabilities Company 60,370 58,039 Lease liabilities 2.22 15 15 – – Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their Current liabilities Non-current liabilities related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about or a more detailed description of DTTL and its member firms. Deloitte & Touche is an affiliate of DCB Current liabilities Holding Ltd., a member firm of Deloitte Touche Tohmatsu Limited. Other payables and accrued expenses 2.20 186 338 Lease liabilities 2.22 15 15 – – Payables to affiliated companies 2.21 274 109 Other payables and accrued expenses 2.20 186 338 Current portion of lease liabilities 2.22 215 – Current liabilities Payables to affiliated companies 2.21 274 109 Deferred incomeof lease liabilities 2.23 621 630 Current portion 2.22 215 – Amount owed to depositors 2.24 120,035 121,331 261,368 262,445 Other payables and accrued expenses 2.20 186 338 Deferred income 2.23 621 630 Payablesowed to affiliated companies 2.21 274 109 Amount to depositors 2.24 120,035 121,331 261,368 262,445 Total equity and of liabilities 181,716 320,484 Current portion lease liabilities 2.22 215 – Total equity and liabilities Deferred income Amount owed to depositors
2.23 2.24
621 120,035
181,716 121,331
630 261,368
320,484 262,445
Total equity and liabilities 320,484 Interested parties can obtain a full set of the consolidated financial statements at181,716 Citco Bank and Trust Company
(Bahamas) Limited,can One Montague Place 1st Floor, East Bay Street, Nassau, Bahamas. InterestedBank parties obtain a full set of the consolidated financial statements at Citco Bank and Trust Company Citco and Trust (Company) Limited (Bahamas) Limited, One Montague Place 1st Floor, East Bay Street, Nassau, Bahamas. Citco Bank and Trust (Company) Limited Citco and Trust Nassau, Bahamas InterestedBank parties can obtain a full set(Company) of the consolidatedLimited financial statements at Citco Bank and Trust Company (Bahamas) Limited, One Montague Place 1st Floor, East Bay Street, Nassau, Bahamas. Nassau, Bahamas Nassau, Bahamas Signing of the consolidated Financial Statements
Signing of the consolidated Financial Statements The consolidated financial statements were approved by the Board of Directors and authorized for issuance on April 20, Signing of are the signed consolidated Financial 2020 and on its behalf by: Statements The consolidated financial statements were approved by the Board of Directors and authorized for issuance on April 20, 2020Board and are signed on its statements behalf by: were approved by the Board of Directors and authorized for issuance on April 20, consolidated financial The of Directors: 2020 and are signed on its behalf by: The Board of Directors: ______________________ ______________________ The Board of Directors: Director Director
______________________ ______________________ Director Director
______________________
______________________ Director Director
THE TRIBUNE
Ramp-up COVID-19 testing to stop ‘economic damage’ FROM PAGE ONE of time than we otherwise need to. That’s my gravest concern; by not doing the testing and not getting the right data, you’re going to do much more damage to the economy and people’s lives. “Another 30 days of this is concerning; I’m sure it is for them [the government] but they have to do more work. The testing kits cannot be half as expensive as the meal plans, feeding plans and loss of jobs. If we need to spend money on testing kits let’s get them here because closing the economy for another month has to be costing hundreds of millions of dollars.” Dr Sands yesterday admitted The Bahamas was challenged to expand COVID-19 testing to anyone requesting it due to limitations on the availability of testing kits and swabs amid intense global demand/competition for these products and devices. He added that the country currently possesses some 4,000 RT PCR test kits, which determine whether someone is positive or negative for COVID-19, as well as 1,100 swabs. Dr Sands said The Bahamas was exploring several avenues to expand its swab inventory. Ministry of Health data shows that around 1,100 to 1,200 COVID-19 tests have been performed to date, with testing ramping up over the past weekend as healthcare workers were checked for exposure to the virus following an incident where a Sandilands patient infected several others when they were admitted to Princess Margaret Hospital (PMH). The data showed that The
Bahamas had tested 250 persons out of every 100,000 of its population as at April 25, 2020. While this rate was higher than Jamaica and Trinidad & Tobago’s, it lagged the likes of Barbados and Panama who are at 463 and 563, respectively. Mr Myers said The Bahamas had to rapidly expand testing beyond persons who were “really sick” and be “more transparent” over associated data - detailing who it was testing, where and how many. He also urged the country to begin serological testing, which detects antibodies to COVID-19, thereby determining who has - or may have had - the virus but been completely asymptomatic with no signs of ill-health. “It’s a Phase 1A based on no transparency in testing and data,” Mr Myers argued, referring to the Bahamian economy’s current state based on the Prime Minister’s re-opening plan. “Let’s have some transparency in data and testing. If you’re going to shut down the economy for the next 30 days, be transparent in the data you’re using. “I’m not at all convinced, and I don’t think anybody in the private sector and public is convinced, that the [death rate] numbers are anywhere close to where they say they are. We don’t have enough testing, and don’t have enough test kits. If all we’re testing is people who are really sick, then you’re going to have bad data, skewed data.... “If we go on their data, yes, we’ll be closed. If we go on data that isn’t broad enough, with an insufficient testing sample, yes, we could be months away from opening the economy back
up. The numbers of people infected are likely to be considerably higher because of the asymptomatic nature of the disease,” he continued. “Most countries are at ten percent, 20 percent of the population tested, and we’re just over one-quarter of 1 percent. It’s a problem, and we’re spending millions of dollars on feeding people and don’t have sufficient data to forecast. It’s like saying there’s a hurricane out there, shutter up your homes, but we don’t know if it will hit or how bad it will be. “We need to get enough information so that we don’t kill a fly with a sledgehammer. Considering the measures being taken, it’s like putting us on hurricane warning without any data. We’re spending tens of millions of dollars supporting people and don’t necessarily have the right forecast.” Mr Myers, emphasising that he was not trying to minimise the importance of wearing face masks, social distancing and other antiCOVID-19 measures, added of the prime minister’s phased re-opening strategy: “We’ve got to do better to understand where the threshold is to get to Phase 1B, 2, 3, 4. “If that’s going to be the driver for when we open back up, we’re got to put the testing in place to do that otherwise we’re only cutting off our nose to spite our face.” Mr Myers, who is also the Organisation for Responsible Governance’s (ORG) principal, said COVID-19 testing weaknesses had prompted the civil society group to partner with Think Simple and develop Bahamas Together, a web-based screening tool that can be used to identify where risks and “hot spots” related to the virus are and deal with them.
Port’s confidence boost in COVID-19 ‘darkest stages’ FROM PAGE ONE city of Nassau re-opens. I can’t say exactly when, whether it will be July or the end of the year, but our destination being the nearest will give cruise passengers more confidence knowing they’re closer to the US,” he continued. “It’s not going to be a quick turnaround; more a gradual process, but in the end the city will come back and in a better position than before.” Besides the cruise port transformation by Nassau Cruise Port Ltd and its Global Ports Holding parent, Mr Klonaris said completion of The Pointe resort, construction of the new US Embassy, and the harbourfront boardwalk will all improve the downtown product. “There’s a lot in the air,”
PM: ‘No timetable’ for phased re-open FROM PAGE ONE
health measures - masks and social distancing - in place. Restrictions on weddings, funerals and social gatherings would also be relaxed. Hair care and beauty salons would re-open in phase four, provided they have the necessary protective equipment, along with offices. Restaurants, gyms, movie theatres and entertainment centres will also be permitted to open with the necessary social distancing and wearing of masks. Domestic travel will also resume. The fifth and final phase would see The Bahamas’ borders open for international travel and tourism
he added. “How quickly everything co-ordinates and comes together, I don’t have the timeline for that, but these are gratifying and important developments that bring more confidence to the city. “It’s a long road. The city’s been shut down so there’s nothing there at the moment. There’s nothing in operation; it’s a complete shutdown.” Mr Klonaris said downtown Nassau had arguably been hit harder than most sectors of the Bahamian economy due the departure of many financial services institutions to western New Providence, which had left the area almost totally reliant on cruise ship passengers and other visitors for commerce. “The fact that the financial industry left the city has made it totally dependent
on tourism and the cruise ships as the major contributor to the lifeblood of the city, leaving it without a more diverse business sector,” he added. “I believe that, down the road, you’re not going to see so many foreign banks occupying office space but you may see more locals coming in whether it’s small law firms, individual attorneys and start-up businesses owned by locals. “They’re going to see the city as more attractive because rental rates will be lower than Albany, Lyford Cay and Cable Beach. The rates there are incredibly expensive. There is an opportunity for downtown Nassau, especially if we get the port going again, to be a brighter spot with a more diverse, more stable and more local group of entrepreneurs.”
resume. Public transportation will also restart. However, Dr Minnis warned: “As we look and plan to open back up we cannot establish fixed timetables that say: ‘We will do this thing on a particular date, and that thing on another date’. The timetable depends on metrics and advice by healthcare professionals.” Acknowledging that The Bahamas will have to live with the threat posed by the COVID-19 virus, he added: “The reality is that COVID19 will be with us for the foreseeable future even as our number of cases - and those around the world - begin to stabilise and even decline. “For the immediate term at least, we will need protocols and a strategy that will allow us to re-open our society and our economy in a way that protects the health and well- being of Bahamians and residents. We must establish and adhere to a way of doing things that will allow us to open back up in a responsible manner.
“Such re-opening will be gradual and deliberate. At each step, proper health and physical distancing protocols will be mandatory and will be enforced.” Dr Minnis reiterated his call to the newly-appointed Economic Recovery Committee, co-chaired by acting financial secretary, Marlon Johnson, and Providence Advisors chief executive, Kenwood Kerr, to think “boldly and creatively” in charting a new course for the Bahamian economy. “This is not the time to be timid. This is the time to be bold. This is the time to be courageous,” he charged. “We are in a new era, so we must think in new ways and think outside of the narrow confines of what is necessary or possible. “What are needed are ideas that can generate economic activity and trade, and a pathway to those ideas that is doable.” Dr Minnis promised to protect local manufacturing, adding that the local face mask industry could be worth some $6m to $9m per year.
THE TRIBUNE
Tuesday, April 28, 2020, PAGE 5
Heart doctor heads to Privy Council on RoyalFidelity claim
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DR CONVILLE BROWN FROM PAGE ONE against Dr Brown after it failed to receive the full amount. The doctor accused the merchant bank of “deceiving him into entering” the margin loan deal by suggesting it was “a market maker, and would so manage his securities in his brokerage account that he would never have to provide any additional funds to secure his loan facility”. This formed the basis of Dr Brown’s defence and counterclaim, whereby he alleged that RoyalFidelity induced him into the margin loan deal by allegedly promoting itself as a “market maker” able to buy and sell securities at will to keep his facility current.
Arguing that this claim was “made fraudulently” and “recklessly”, the doctor sought damages himself for purported negligence and fraudulent misrepresentation. But the Court of Appeal’s judgment, backing the earlier Supreme Court verdict, found that Dr Brown had not provided sufficient evidence to support his claims. The Bahamas Heart Centre principal now faces having to repay some $86,113 in principal to RoyalFidelity, together with 14.25 percent interest on this sum for a period of 17 years and counting. The Court of Appeal ruled that the interest clock started running on October 4, 2002, when the investment bank first made its demand for payment to
bring the margin loan deal back into compliance. Tribune Business’s calculations showed the interest bill is currently almost two-anda-half times’ the principal Dr Brown must pay. The annual interest cost at 14.25 percent is some $12,271, and multiplying that by the 17 years’ gives a cumulative figure of $209,609. When added to the principal sum this takes RoyalFidelity’s total award to some $296,000, and the Court of Appeal’s finding that Dr Brown must pay the legal costs incurred by the investment bank before both itself and the Supreme Court will likely push the latter’s total compensation towards $400,000-$500,000. Unless, that is, the Privy Council overturns the verdict.
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CBH BAHAMAS LTD.
Consolidated Statement of Financial Position December 31, 2019, with corresponding figures for 2018 (Expressed in Swiss Francs)
Assets Cash Due from banks Financial investments Derivatives Due from customers Prepaid expenses and other assets Property and equipment Total Assets
Note
6 6, 13 6, 17 6, 13, 17 4, 6, 13 6, 9, 13 5
CHF
CHF
2019
2018
34,023 221,819,929 19,334,867 534,817 170,841,483 430,357 596,494 413,591,970
42,389 164,217,975 − 307,916 182,886,208 225,171 617,266 348,296,925
324,932,149 22,503,663 504,772 3,852,808 1,500,000 353,293,392
271,549,359 14,132,291 300,423 4,044,145 1,500,000 291,526,218
30,000,000 30,298,578 60,298,578
30,000,000 26,770,707 56,770,707
413,591,970
348,296,925
Liabilities and Equity Liabilities Due to customers Due to banks Derivatives Accounts payable and accrued liabilities Provision for contingent liability Total liabilities Equity Share capital: Authorized, issued and fully paid 300,000 shares of CHF 100 each (2018 – 300,000 shares of CHF 100 each Retained earnings Total equity Commitments and contingencies
6, 13 6, 13 6, 13, 17 6, 10, 13 12
CHF
6, 15
6, 12
Total Liabilities and Equity
CHF
See accompanying notes to consolidated financial statements. These consolidated financial statements were approved on behalf of the Board of Directors on April 22, 2020 by the following:
CBH BAHAMAS LTD.
Notes to Consolidated Financial Statements Year ended December 31, 2019 (Expressed in thousands of Swiss Francs)
3
1. General information CBH Bahamas Ltd. (“the Bank”), formerly CBH (Bahamas) Ltd., was incorporated under the laws of the Commonwealth of The Bahamas on December 19, 1994. The Bank is licensed under The Bahamas Banks and Trust Companies Regulations Act and holds a public banking license to provide a full range of banking, trust and corporate management services. On October 29, 2009 the name of the Bank was changed from Banque SCS Alliance (Nassau) Ltd. to CBH (Bahamas) Ltd. to align with its parent’s name change. The Bank is a wholly-owned subsidiary of CBH Compagnie Bancaire Helvétique S.A., Geneva, Switzerland (“the Parent”). The Bank has four wholly-owned subsidiaries, Remus Investments Ltd., Romulus Investments Ltd., Castor Management Ltd. and Pollux Corporate Services Ltd. (collectively described as nominee companies), all of which were incorporated and licensed under the laws of the Commonwealth of The Bahamas. The subsidiaries act as nominee companies for the Bank and its clients and carry on no other trust business. The consolidated financial statements include the accounts of the Bank and its wholly owned subsidiaries (together, “the Group”). The registered office of the Bank is located at CBH House, East Bay Street, P.O. Box N-1724, Nassau, Bahamas. The accompanying consolidated statement of financial position is an extract from the Bank’s consolidated financial statements. The auditors’ report included herewith should be read in conjunction with the full set of consolidated financial statements, which can be obtained at, or requested in writing from, the Bank’s registered office, CBH House, East Bay Street, Nassau Bahamas.
PAGE 6, Tuesday, April 28, 2020
THE TRIBUNE
Questions swirl as Fed meets amid deepening economic crisis WASHINGTON Associated Press THE Federal Reserve has largely calmed turbulent financial markets. Yet a far tougher task remains: Helping rescue an economy and job market that appear to be free-falling into the worst catastrophe since the Great Depression. Fed policymakers will meet today and tomorrow against a backdrop of dismal data: More than 26 million Americans have applied for unemployment benefits since the coronavirus forced widespread business closures. Retail sales have dropped by a record pace. Home sales have plunged. In the meantime, inflation has started to fall amid the collapse in economic activity and is sure to sink further below the Fed’s 2% target level. With beleaguered hotels, airlines and retailers slashing prices, inflation could fall to 1% or less by year’s end. That poses another problem for the Fed: Declining prices can eventually lead consumers to delay spending, thereby slowing the economy further. In response, the Fed has slashed its benchmark interest rate to near zero in two emergency moves and launched an alphabet soup of lending programmes — nine in total — to pump cash into financial markets. The central bank has also bought about $1.4tn in Treasury securities to ensure that banks can swap Treasurys for cash and keep rates low. Chairman Jerome Powell isn’t expected to announce any major new initiatives when the Fed’s meeting ends tomorrow. The central bank may provide more details on its lending programs and may also fill in some specifics about its Treasury-buying programme, which is now essentially unlimited. Economists will also look for any changes the Fed may
FEDERAL Reserve Chair Jerome Powell pauses during a news conference in Washington. The Federal Reserve is taking additional steps to provide up to $2.3tn in loans to suport American households and businesses as well as local governments as they deal with the coronavirus. The Fed said on Thursday, April 9, among the actions it is taking is the activation of a Main Street Lending Program that was authorised by the $2.3tn economic relief bill pass by Congress last month. Photo: Manuel Balce Ceneta/AP make to where it stands on interest rates. At its meeting last month the Fed said it will keep rates at near zero “until it is confident that the economy has weathered recent events”. In the past, the Fed has sometimes set a time frame for future rate hikes, and in other cases has set out conditions, such as the unemployment rate falling to a certain level. But few analysts forecast anything specific tomorrow. Economists at Bank of America said they expect the central bank to simply acknowledge that rates will remain ultra-low for “an extended period”. Powell will also likely face questions about the extraordinary actions the Fed has taken during this crisis, including unleashing lending programmes that
will directly aid individual cities and businesses, a step beyond its usual assistance to banks and credit markets. These interventions have exposed the central bank to concerns that it will inevitably favour some companies or municipalities over others. The Fed, whose independence is seen as vital to its role in the financial system, has always steered clear of such potentially politicised actions. “That’s a very big step,” said Kathy Bostjancic, chief US financial economist at Oxford Economics, a consulting firm. “The Fed hasn’t necessarily moved out of their lane, but they certainly have widened the lane.” The Fed has also said it will buy up to $750bn in corporate bonds, including riskier debt bearing higher yields — a “bit of a
precarious step”, Bostjancic said, because the Fed normally avoids taking on credit risk. Two weeks ago, as part of a $2.3tn lending programme, the Fed said it would, for the first time, buy municipal bonds issued by state and local governments, up to $500bn. It also unveiled a Main Street Lending Program, which will also for the first time lend $600bn to medium-sized companies of up 10,000 employees. The loans are intended to support mostly companies that are too large for the government’s small business lending programme, which targets those with fewer than 500 workers. Companies that borrow from the Main Street programme must “make reasonable efforts” to retain their workers, the Fed says, and cannot repurchase their
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SECURITY Fidelity Bank Note 22 (Series B) +
SYMBOL FBB22
Bahamas Note 6.95 (2029) BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y
BAH29 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407
BAHAMAS GOVERNMENT STOCK - (percentage pricing)
LAST CLOSE 3.55 17.43 6.00 6.68 2.10 1.62 2.99 11.26 6.00 4.01 6.01 2.97 4.90 9.44 8.15 14.15 8.97 4.10 15.20
CLOSE 3.55 17.43 6.00 6.68 2.10 1.62 2.99 11.26 6.00 4.01 6.01 3.07 4.90 9.79 8.15 14.15 8.97 4.10 15.20
CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.10 0.00 0.35 0.00 0.00 0.00 0.00 0.00
1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00
1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00
CLOSE 100.00
CHANGE 0.00
107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
LAST SALE 100.00 107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
LEGAL NOTICE
NOTICE
Squidley Land Ltd. In Voluntary Liquidation
Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, Squidley Land Ltd.is in dissolution as of April 16, 2020 International Liquidator Services Inc. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.
MARKET REPORT MONDAY, 27 APRIL 2020
shares or pay dividends. The Fed has said it will disclose the recipients of its Main Street loans. Still, most of these programs haven’t formally launched. The Fed has yet to buy any municipal securities or corporate debt. Even so, just the announcements that it will do so have smoothed markets.
The announcements have also generated concerns about who will end up benefiting and who will not. As part of its new Municipal Liquidity Facility, the Fed said it would buy muni bonds from all 50 states and some large cities. But at first, only those cities with populations above one million and counties with populations of more than two million were eligible. That grouping included just ten cities and 16 counties and excluded the 35 cities with the highest proportion of African-Americans, according to a report by the Brookings Institution. Detroit and Atlanta, for example, failed to make the cutoff. “The further the Fed pushes, the more issues it is likely to unearth,” said Mark Vitner, an economist at Wells Fargo. Yesterday, partly in response to such criticisms, the Fed expanded the facility to cover roughly 80 cities and more than 100 counties, by lowering the population cutoffs. Vitner noted that the Fed’s initial announcement of the facility helped reduce rates for muni bonds broadly, thereby supporting all issuers. “What the Fed is doing is more holistic, and they are trying to support the whole economy,” he said. “And they’re doing that by attacking specific pressure points.”
VOLUME
1,000
1,000
VOLUME
EPS$ 0.239 0.932 1.760 0.369 0.070 0.000 -0.438 0.722 0.449 0.184 0.140 0.102 0.467 0.646 0.728 0.816 0.939 0.203 0.631
DIV$ 0.170 1.260 0.000 0.260 0.000 0.020 0.000 0.720 0.220 0.120 0.000 0.434 0.060 0.328 0.240 0.540 0.200 0.120 0.610
P/E 14.9 18.7 N/M 18.1 N/M N/M -6.8 15.6 13.4 21.8 42.9 30.1 10.5 15.2 11.2 17.3 9.6 20.2 24.1
0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.0 0.0 0.0 0.0 0.0 0.0 0.0
YIELD 4.79% 7.23% 0.00% 3.89% 0.00% 1.23% 0.00% 6.39% 3.67% 2.99% 0.00% 14.14% 1.22% 3.35% 2.94% 3.82% 2.23% 2.93% 4.01% 0.00% 0.00% 0.00% 0.00% 6.25% 7.00% 6.50%
INTEREST Prime + 1.75%
MATURITY 19-Oct-2022
6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%
20-Nov-2029 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022
YTD% 12 MTH% 0.37% 3.81% 0.24% 4.38% 0.23% 2.75% 5.76% 5.76% 12.81% 12.81% 0.94% 3.72% -3.46% 2.09% -0.11% 3.43% -3.33% 1.53% -0.32% 10.20% -1.58% 15.37% 0.88% 5.22% -4.91% 10.77% 1.89% 6.75% -1.95% 0.38% N/A N/A 10.80% 2.60% 10.40% -4.00%
NAV Date 31-Jan-2020 31-Jan-2020 31-Jan-2020 31-Dec-2019 31-Dec-2019 31-Mar-2020 31-Mar-2020 31-Mar-2020 31-Mar-2020 29-Feb-2020 29-Feb-2020 29-Feb-2020 29-Feb-2020 29-Feb-2020 29-Feb-2020
LIQUIDATOR ______________________
LEGAL NOTICE
NOTICE
ICON PORTFOLIO INC. In Voluntary Liquidation
Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, ICON PORTFOLIO INC. is in dissolution as of April 16, 2020 International Liquidator Services Inc. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.
LIQUIDATOR ______________________
MUTUAL FUNDS 52WK HI 2.30 4.38 2.09 195.13 166.73 1.67 1.85 1.76 1.24 8.34 10.26 7.00 12.15 12.58 10.81 10.00 8.98 11.79
52WK LOW 1.67 3.30 1.68 164.74 116.70 1.61 1.75 1.70 1.14 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20
FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund Leno Preferred Income Fund Leno Growth Fund Leno Diversified Fund Leno Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F
NAV 2.30 4.38 2.09 195.13 166.73 1.67 1.79 1.75 1.16 8.31 10.07 7.00 11.42 12.58 10.52 N/A 8.98 11.40
MARKET TERMS
BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings
YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful
30-Sep-2019 30-Sep-2019 30-Sep-2019
LEGAL NOTICE
NOTICE
ORDIPHARMA CORP. In Voluntary Liquidation
Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, ORDIPHARMA CORP.is in dissolution as of April 16, 2020 International Liquidator Services Inc. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.
LIQUIDATOR ______________________ TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | COLONIAL 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333
THE TRIBUNE
Tuesday, April 28, 2020, PAGE 7
PRIVATE INVESTMENT BANK LIMITED Notes to Consolidated Financial Statements
KPMG. PO Box N 123 Montague Sterling Centre East Bay Street Nassau, Bahamas
Telephone Fax Internet
(242) 393-2007 (242) 393-1772 www.kpmg.com.bs
Year ended December 31, 2019 (Expressed in United States dollars)
INDEPENDENT AUDITORS’ REPORT
1. General
To the Shareholders of Private Investment Bank Limited Opinion We have audited the accompanying consolidated financial statements of Private Investment Bank Limited (“the Bank”) and its subsidiaries (together, “the Group”), which comprise the consolidated statement of financial position as of December 31, 2019, and the consolidated statements of comprehensive income, changes in shareholders’ equity and cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information. In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Group as of December 31, 2019, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (“IFRS”). Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (“ISAs”). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (“IESBA Code”), and we have fulfilled our ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with IFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Group’s financial reporting process. Auditors’ Responsibility for the Audit of the Consolidated Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. ‘Reasonable assurance’ is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. As part of an audit in accordance with ISAs, we exercise professional judgement and maintain Auditors’ Responsibility for the Audit the Consolidated Financial Statements (continued) professional scepticism throughout theofaudit. We also:
- Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive 1 to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis KPMG a Bahamian company and member firm of the KPMG for our opinion. The risknetwork of not detecting material misstatement resulting from fraud is of independent member a firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.
Private Investment Bank Limited (“the Bank”) is incorporated under the Companies Act, 1992 of the Commonwealth of The Bahamas (“The Bahamas”) and is licensed under the Banks and Trust Companies Regulation Act, 2000 to conduct banking and trust business, including the provision of portfolio management services, from within The Bahamas. The Bank is also licensed with the Securities Commission of The Bahamas under The Investment Funds Act, 2003 as an Unrestricted Fund Administrator, and under the Securities Industries Act, 2011 and Securities Industry Regulations, 2012 under the categories Dealing in Securities as Agent, Managing Securities, and Advising on Securities. Prior to April 17, 2018, the Bank was a wholly owned subsidiary of Banque Cramer & Cie SA (“the former Parent Company” or “BCC”), a Swiss bank. The Bank’s Ultimate Parent Company was Norinvest Holding SA. Norinvest Holding SA was a public company domiciled in Switzerland and was delisted on April 28, 2017. On April 17, 2018, the former Parent Company sold 85% of its shares to IPG Securities Asset Management Limited (“the Parent Company” or “IPG”), a Bahamian incorporated company. The former Parent Company continues to hold the remaining 15% of its shares in the Bank. All balances and transactions with the Parent Company, the former Parent Company, the shareholders and directors of the Parent Company and the former Parent Company, the directors and officers of the Bank, and the Bank’s subsidiaries are disclosed as being with related parties. The Bank’s Ultimate Parent Company is IPG Securities Asset Management, SA, a licenced limited company domiciled in Switzerland. Pursuant to a Share Sale and Purchase Agreement (“SPA”) and the related Pledge Agreement (the “Pledge Agreement”), both dated April 17, 2018 between the former Parent Company
and IPG, regarding the Bank, and following an Event of Default by IPG on January 29, 2020, The Parent Company’s voting rights relating to the shares of the Bank (the “Pledged Shares”), were suspended and the former Parent Company now has the right, but not an obligation, to take ownership of the Pledged Shares. On March 25, 2020, the former Parent Company gave notification regarding exercise of the voting rights according to the SPA and the Pledge Agreement and will exercise the voting rights relating to the Pledged Shares from now on until an enforcement of the Pledge has taken place. As a result the former Parent Company holds as of March 25, 2020 the 90.90% of the voting rights of the Bank.
The registered office of the Bank BANK is located LIMITED at Devonshire House, Queen Street, Nassau, The PRIVATE INVESTMENT
Bahamas. Notes to Consolidated Financial Statements The Bank has two wholly owned subsidiaries, Pine Limited and Teak Limited, both of which Year December 31, 2019 areended international business companies incorporated in The Bahamas, which provide nominee (Expressed in United States services to the customersdollars) of the Bank. The Bank and its subsidiaries are referred to in these financial statements as the Group.
2. Basis of preparation (a) Statement of compliance The Group’s consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”). The accounting policies set out below have been applied consistently to all periods presented in these consolidated 4 financial statements, unless otherwise stated.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
(b) Basis of measurement
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
(c) Functional and presentation currency
- Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, then we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. - Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and where applicable, related safeguards.
April 17, 2020 Nassau, Bahamas
PRIVATE INVESTMENT BANK LIMITED December 31, 2019, with corresponding figures 2for 2018 (Expressed in United States dollars) 2019
2018
4, 5, 16, 19 & 21 $ 71,661,410 4, 16, 19, 20 & 21 88,930 4, 6, 7, 16 & 19 38,812,255 4, 10 &19 6,343,922 4, 11, 16 &19 692,710 16 & 19 347,873 12 & 19 2,400,000 8 & 19 10,683,837 9 & 19 1,693,455 $ 132,724,392
94,055,130 125,099 36,967,354 6,377,797 2,554,909 457,491 – 12,761,336 1,144,669 154,443,785
ASSETS Due from banks – demand and call Derivative financial instruments Loans and advances Investment participation Other assets and receivables - net Prepaid expenses Asset held-for-sale Property and equipment Intangibles Total Assets
Liabilities 4, 5, 16, & 19 $ 65,243 4, 16, 19 & 21 113,771,037 4, 16, 19, 20 &21 53,753 4, 12, 13, 16 & 19 4,611,742 118,501,775
Shareholders’ Equity Share capital Additional paid-in capital Property revaluation reserve Retained earnings Total Shareholders’ Equity
18 & 23 18 & 23 8
Commitments and contingent liabilities
17
Total Liabilities and Shareholders’ Equity
(d) Use of estimates and judgments The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the amounts reported in the consolidated financial statements and the accompanying notes. These estimates are based on relevant information available at the reporting date and, as such, actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. Key sources of estimation uncertainty are discussed in notes 3(e) and 3(f). (e) New and amended IFRS Standards that are effective for the current year Impact of initial application of IFRS 16 Leases IFRS 16 introduces new or amended requirements with respect to lease accounting. It introduces significant changes to lessee accounting by removing the distinction between operating and finance lease and requiring the recognition of a right-of-use asset and a lease liability at commencement for all leases, except for short-term leases and leases of low value assets. In contrast to lessee accounting, the requirements for lessor accounting have remained largely unchanged. The date of initial application of IFRS 16 is January 1, 2019. Based on the assessment performed of the impact of this new standard, interpretations and amendments to published standards, the Group conculuded that their adoption does not PRIVATE INVESTMENT BANK LIMITED have a significant impact on the Group’s consolidated financial statements. Notes to Consolidated Financial Statements (f) New standards, amendments and interpretations not yet adopted by the Group Year ended 31, new 2019standards, amendments, and interpretations that are not yet effective TheDecember following are (Expressed in United States dollars) and have not been effective:
Amendments to IAS 1 and IAS 8 Definition of material Conceptual Framework Amendments to References to the Conceptual Framework in IFRS Standards The Bank does not expect that the adoption of the Standards listed above will have a material impact on the consolidated financial statements of the Group in future periods. 3. Summary of significant accounting policies (a) Basis of consolidation Subsidiaries are those enterprises controlled by the Group. The Group controls an entity when it is exposed to, or has the right to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date on which control ceases. The results of the subsidiaries acquired or disposed of during the year are included in the consolidated statement of comprehensive income from the effective acquisition date or up to the effective date on which control ceases, as appropriate.
LIABILITIES AND SHAREHOLDERS’ EQUITY
Due to banks – demand Due to customers – demand Derivative financial instruments Accrued expenses and other liabilities Total Liabilities
The consolidated financial statements are presented in United States dollars (“US$”), which is the Group’s functional currency.
IFRS 17 Insurance Contracts 2. Basis of preparation (continued) IFRS 10 and IAS 28 (amendments) Sale or Contribution of Assets between an (f) New standards, and interpretations not yet adopted by the Group (continued) Investoramendments and its Associate or Joint Venture 5 Amendments to IFRS 3 Definition of a business
Consolidated Statement of Financial Position
Notes
The consolidated financial statements have been prepared on the historical cost basis, except as otherwise noted below.
101,620 134,295,892 143,422 2,492,988 137,033,922
3,000,000 4,000,000 2,091,379 5,131,238 14,222,617
3,000,000 4,000,000 2,107,449 8,302,414 17,409,863
–
–
$ 132,724,392
154,443,785
Inter-company transactions, balances and intra-group gains on transactions between group companies are eliminated. Intra-group losses are also eliminated unless the transaction provides evidence of impairment of the asset transferred. The integration of the subsidiaries into the consolidated financial statements is based on consistent accounting and valuation methods for similar transactions and other occurrences under similar circumstances. The accompanying consolidated financial statements include the accounts of the Bank and its subsidiaries at year end. (b) Translation of foreign currencies Transactions in foreign currencies are translated at exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities in currencies other than the United States dollar are translated at rates of exchange prevailing at the year-end. Income and expenses in currencies other than the United States dollar are translated at rates of exchange existing at the dates of the transactions. Foreign exchange gains and losses resulting from PRIVATE INVESTMENT BANK LIMITED settlement Financial of such transactions Notes tothe Consolidated Statements and from the translation at year-end rates of monetary assets and liabilities denominated in foreign currencies are recognised under foreign exchange gain/(loss) account in the consolidated statement of comprehensive income. Year ended December 31, 2019 (Expressed in United States dollars) (c) Interest Interest income and expense are recognised in the consolidated statement of comprehensive incomeofusing the effective interest method. The effective interest rate is the rate that 3. Summary significant accounting policies (continued) exactly discounts the estimated future cash payments and receipts through the expected life (c) Interest (continued) of the financial instrument to the gross carrying amount of the financial asset or the amortised cost of the financial liability. The effective interest rate is established on initial recognition of the financial asset and liability and is not revised subsequently. 6 The calculation of the effective interest rate includes all fees and commissions paid or received, transaction costs, and discounts or premiums that are an integral part of the effective interest rate. Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of a financial asset or liability. (d) Fees and commissions
3
The Group earns commissions on investment activities undertaken on behalf of its
The calculation of 2020 the effective interest rate includes all fees and commissions paid or PAGE 8, Tuesday, April 28,
received, transaction costs, and discounts or premiums that are an integral part of the effective interest rate. Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of a financial asset or liability.
(d) Fees and commissions The Group earns commissions on investment activities undertaken on behalf of its customers. Commission income from these transactions is recorded on completion of the underlying transaction. The Group shares a portion of these commissions with third parties and the commission expense is recorded on a quarterly basis. (e) Financial instruments Classification and measurement The Group classifies its financial instruments in the following measurement categories: • Fair value through profit or loss (“FVTPL”); • Fair value through other comprehensive income (“FVOCI”); or • Amortised cost. Financial assets classified at FVTPL includes precious metal currency accounts and derivative financial instruments. Financial assets classified at amortised cost includes cash and cash equivalents, loans and advances and investment participation. i) Precious metal currency accounts Precious metal currency accounts are initially recognised at fair value on the value date. These financial instruments are subsequently re-measured at their fair value. Fair values are determined based on quoted prices in active markets. Gains and losses arising from settlement or changes in fair value are recognised in foreign exchange trading gains or losses in the consolidated statement of comprehensive income.
PRIVATE INVESTMENT BANK LIMITED Precious metal currency accounts established with banks are included in due from banks
Notes to Consolidated Financial Statements on demand and call, and precious metal currency accounts established with the Bank by customers are included in due to customers. Year ended December 31, 2019 financial instruments (Expressedii)inDerivative United States dollars) Derivatives are recognised initially at fair value. Attributable transaction costs are recognised in profit or loss as incurred. Subsequent to initial recognition, derivatives are 3. Summary of significant accounting policies (continued) measured at fair value, and changes in fair value are recognised immediately in profit or loss when a derivative financial instrument is not designated in a hedge relationship that (e) Financial instruments (continued) qualifies for hedge accounting. Classification and measurement (continued) Derivative financial instruments comprise forward currency contracts that are carried at ii) Derivative financial instruments (continued) estimated fair value based on the forward rate for the remaining period to maturity at the reporting date. Realised and unrealised gains and losses on such forward currency 7 contracts have been included within foreign exchange gains in the consolidated statement of comprehensive income. iii)Cash and cash equivalents Cash and cash equivalents include highly liquid financial assets with original maturities of three months or less, which are subject to insignificant risk of changes in their fair value. Cash and cash equivalents are carried at amortised cost in the consolidated statement of financial position. Cash and cash equivalents consist of due from banks, including demand and time deposits, less due to banks. iv) Loans and advances Loans and advances are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, loans and advances are measured at amortised cost using the effective interest method, less any impairment losses. Loans and advances are carried at the principal amount outstanding plus accrued interest less any provision for impairment and uncollectibility. All outstanding loans and advances are originally granted by the Group and are recognised when cash is advanced to the borrowers. All loans and advances to customers are collateralised by investment securities and deposits held by the Group on behalf of the borrowers. v) Investment participation Investment participation is a financial asset with fixed or determinable payments that is not quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, investment participations are measured at amortised cost using the effective interest method, less PRIVATE INVESTMENT BANK LIMITED any impairment losses. Notes to Consolidated Financial Statements Investment participation is carried at the principal amount outstanding plus accrued interest less any provision for impairment and uncollectibility. All outstanding Year ended December 31, 2019 investment participations are originally granted by the Group and are recognised when (Expressed in United States dollars) cash is advanced for the Bank’s participation in the investment. All investment participations are highly collaterialised with real estate and are short-term in nature. 3. Summary of significant accounting (continued) Debt instruments are described as policies those instruments that meet the definition of a financial liability from the issuer’s perspective, such as loans, government and corporate bonds and (e) Financial instruments (continued) trade receivables. Classification and subsequent measurement of debt instruments depend Classification and measurement (continued) on: i) The Group’s business model for managing the assets; and ii) The cash flow characteristics8 of the asset. Based on these factors, the Group classifies its debt instruments into one of the following three measurement categories: • Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest (‘SPPI’), and that are not designated at FVTPL are measurement at amortised cost. The carrying amount of these assets is adjusted by any expected credit loss (“ECL”) allowance. Interest income from these financial assets is included in ‘Interest Income’ using the effective interest rate method. • Fair value through other comprehensive income (“FVOCI”): The Group measures debt instruments at FVOCI if both of the following conditions are met: i) the financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling and; ii) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. For debt instruments at FVOCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognised in net income in the consolidated statement of comprehensive income and computed in the same manner as for financial assets measured at amortised cost. The remaining fair value changes are recognised in other comprehensive income (“OCI”). Upon derecognition, the cumulative fair value change recognised in OCI is recycled to profit or loss. Financial assets at FVTPL include financial assets held for trading, financial assets designated upon initial recognition at FVTPL, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading. Financial assets with cash flows that are not solely payments of principal and interest are classified and measured at PRIVATE INVESTMENT BANK LIMITED FVTPL, irrespective of the business model. Notwithstanding the criteria for debt Notes to Consolidated Financial Statements instruments to be classified at amortised cost or at FVOCI, as described above, debt instruments may be designated at FVTPL on initial recognition if doing so eliminates, or Year ended December 31, 2019 significantly reduces, an accounting mismatch. (Expressed in United States dollars) Financial assets at FVTPL are carried in the statement of financial position at fair value with net changes in fair value recognised in net income in the statement of comprehensive 3. Summary significant policiesinstruments, (continued) and listed equity investments which income.ofThis categoryaccounting includes derivative the Group has not irrevocably elected to classify at FVOCI. Dividends on listed equity (e) Financial instruments (continued) investments are also recognised as other income in net income in the statement of comprehensive income when the(continued) right of payment has been established. Classification and measurement For derivative financial instruments and 9precious metal currency accounts, there were no changes in the classification and measurement of these financial assets with the application of IFRS 9. Write offs The Group writes off financial assets, in whole or in part, when it has exhausted all practical recovery efforts and has concluded there is no reasonable expectation of recovery. The write offs represents a derecognition event. Indicators that there is no reasonable expectation of recovery include (i) ceasing enforcement activity, and (ii) where the Group’s recovery method is foreclosing on collateral and the value of the collateral is such that there is no reasonable expectation of recovering in full. Derecognition The Group derecognises a financial asset when the contractual rights to the cash flows from that asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the Group is recognised as a separate asset or liability. The Group derecognises a financial liability when its contractual obligations are discharged, cancelled or expired. Financial assets and liabilities are offset and the net amount presented in the consolidated statement of financial position when, and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.
Financial assets and liabilities are offset and the net amount presented in theTHE consolidated TRIBUNE statement of financial position when, and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. Impairment The Group assesses, on a forward looking basis, the expected credit loss (“ECL”) for debt instruments measured at amortised cost and FVOCI and for the exposures arising from loan commitments and financial guarantee contracts. The Group measures ECL and recognises credit loss allowance at each reporting date. The measurement of ECL reflects: (i) an PRIVATE BANK LIMITED unbiasedINVESTMENT and probability weighted amount that is determined by evaluating a range of outcomes, (ii) time value of money and (iii) all reasonable and supportable Notes topossible Consolidated Financial Statements information that is available without undue cost and effort at the end of each reporting period Year ended 31,current 2019 conditions and forecasts of future conditions. aboutDecember past events, (Expressed in United States dollars) Debt instruments measured at amortised cost are presented in the consolidated statement of financial position net of the allowance for ECL. For loan commitments and financial guarantees, a separateaccounting provision for ECL (continued) is recognised as a liability in the consolidated 3. Summary of significant policies statement of financial position. For debt instruments at FVOCI, changes in amortised cost, (e) net Financial instruments (continued) of allowance for ECL, are recognised in profit or loss and other changes in carrying value are recognised in Impairment (continued)OCI as gains less losses on debt instruments at FVOCI. The Group applies a three stage model for impairment, based on changes in credit quality since initial recognition. A financial instrument that is not credit-impaired on initial 10 assets in Stage 1 have their ECL measured at recognition is classified in Stage 1. Financial an amount equal to the portion of lifetime ECL that results from default events possible within the next 12 months or until contractual maturity, if shorter (“12 Months ECL”). If the Group identifies a significant increase in credit risk (“SICR”) since initial recognition, the asset is transferred to Stage 2 and its ECL is measured based on ECL on a lifetime basis, that is, up until contractual maturity but considering expected prepayments, if any. If the Group determines that a financial asset is credit-impaired, the asset is transferred to Stage 3 and its ECL is measured as a Lifetime ECL. For financial assets that are purchased or originated credit-impaired (“POCI Assets”), the ECL is always measured as a Lifetime ECL. Note 19 provides information about inputs, assumptions and estimation techniques used in measuring ECL, including an explanation of how the Group incorporates forward-looking information in the ECL models. Financial guarantee contracts and loan commitments Financial guarantee contracts are contracts that require the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due, in accordance with the terms of a debt instrument. Such financial guarantees are given to banks, financial institutions and others on behalf of customers to secure loans, overdrafts and other banking facilities. Financial guarantee contracts are initially measured at fair value and subsequently measured at the higher of: • •
the amount of the loss allowance; and the premium received on initial recognition less income recognised in accordance with the principles of IFRS 15 Revenue from Contracts with Customers.
(f) Property and equipment Land and buildings are shown at fair value, based on valuations by an independent
appraiser, less subsequent depreciation for buildings. Any accumulated depreciation at the PRIVATE INVESTMENT BANK LIMITED
of revaluation is eliminated against the gross carrying amount of the asset, and the net Notes todate Consolidated Financial Statements amount is restated to the revalued amount of the asset. Revaluations are performed with sufficient regularity such that the carrying amount does not differ materially from that Year ended December 31, 2019 which would States be determined (Expressed in United dollars) at the balance sheet date. Additions to land and building are carried at cost (which is assumed to be the transaction date fair value) until the next revaluation is performed. 3. Summary of significant accounting policies (continued) All other property and equipment are carried at cost less accumulated depreciation and accumulated loss. (f) Property and impairment equipment (continued) Cost includes expenditure that is directly attributable to the acquisition of the assets. Subsequent costs are included in the asset’s carrying amount or are recognised as a separate 11 that future economic benefits associated with asset, as appropriate, only when it is probable the item will flow to the Group and the cost of the item can be measured reliably. All repairs and maintenance are charged to general and administrative expenses during the financial period in which they are incurred. Land is not depreciated. Depreciation on other property and equipment is recognised in the consolidated statement of comprehensive income and is calculated using the straight-line method to allocate their costs over their estimated useful lives, as follows: Building Building improvements Land improvements Computer hardware and software Furniture & equipment Vehicles
20 years 20 years 20 years 3 years 5 years 5 years
Gains and losses on disposal of items of property and equipment are determined by comparing the proceeds from disposal with the carrying amount of the items of property and equipment, and are recognised in the consolidated statement of comprehensive income. The carrying amounts of the Group’s property and equipment are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. Impairment losses are recognised in the consolidated statement of comprehensive income. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. (g) Intangible assets Intangible assets acquired separately are reported at cost less accumulated amortisation (where they have finite useful lives) and accumulated impairment losses. Intangible assets with finite useful lives are amortised on a straight-line basis over their estimated useful PRIVATE INVESTMENT BANK LIMITED lives. The estimated useful life and amortisation method are reviewed at the end of each Notes toannual Consolidated Financial Statements reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Year ended December 31, 2019 Expenditure internally developed software is recognised as an asset when the Group is (Expressed in Unitedon States dollars) able to demonstrate: that the product is technically feasible, its intention and ability to complete the development and use the software in a manner that will generate future economic benefits, and that it can policies reliably measure the costs to complete the development. 3. Summary of significant accounting (continued) The capitalised costs of internally developed software include all costs directly attributable (g) to Intangible assets developing the (continued) software and capitalised borrowing costs, and are amortised over its useful life. Internally developed software is stated at capitalised cost less accumulated amortisation and any impairment losses.12 Subsequent expenditure on software assets is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is expensed as incurred. The carrying amounts of the Group’s intangible assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. Impairment losses are recognised in the consolidated statement of comprehensive income. (h) Assets held-for-sale Non-current assets, or disposal groups comprising assets and liabilities, are classified as held-for-sale if it is highly probable that they will be recovered primarily through sale rather than thorugh continuing use. Such assets, or disposal groups, are generally measured at the lower of their carrying amount and fair value less costs to sell. Impairment losses on initial classification as heldfor-sale and subsequent gains and losses on remeasurement are recognised in the consolidated statement of comprehensive income. Once classified as held-for-sale, intangible assets and property and equipment are no longer amortised or depreciated. (i) Fiduciary accounts and assets under administration No account is taken in these consolidated financial statements of fiduciary accounts or assets and liabilities of clients administered by the Bank, other than those assets and liabilities which relate to the banking services provided by the Bank for its clients. (j) Defined contribution pension scheme The Group has a defined contribution pension scheme for all eligible employees. Pension contributions are reflected in staff costs in the consolidated statement of comprehensive income on an accrual basis. (k) Dividends Dividend distribution to the Group’s shareholders is recognised as a dividend paid in the consolidated statement of changes in shareholders’ equity in the Group’s financial statement in the period in which the dividends are approved and declared by the Group’s shareholders. Dividends proposed or declared after the reporting date, are not recognised in the consolidated financial statements. (l) Income and expenditure Income and expenditure are accounted for on an accrual basis.
Impairment The Group assesses, on a forward looking basis, the expected credit loss (“ECL”) for debt
13
in United States dollars) THE (Expressed TRIBUNE 3. Summary of significant accounting policies (continued) (m) Related parties
9. Intangibles
Related parties include entities that the Bank controls or exercises significant influence over and individuals who have the authority and responsibility for planning, directing and controlling the activities of the Group in making financial and operating decisions. These include, but are not limited to, the Ultimate Parent Company, the Parent Company, the former Parent Company, subsidiaries, affiliated companies and officers and directors of the Group. A party is related to the Bank if: (i)
Directly or indirectly the party controls, is controlled by, or is under common control with the Bank; or has an interest in the Group that gives it significant influence over the Bank. (ii) The party is a member of the key management personnel of the Bank. (iii) The party is a close member of the family of any individual referred to in (i) and (ii) above. A related party transaction is a transfer of resources, services or obligations between the reporting entity and a related party, regardless of whether a price is charged. (n) Taxation No income taxes are levied in The Commonwealth of The Bahamas. 4. Classification of financial assets and financial liabilities The following table provides the carrying values of line items in the consolidated statement of financial position along with their categories of financial instruments: Financial assets Due from banks – demand and call Cash and cash equivalents Precious metal currency accounts Derivative financial instruments Loans and advances Investment participation Other assets and receivables Total financial assets
Measurement category Amortised cost Fair value through profit or loss Fair value through profit or loss Amortised cost Amortised cost Amortised cost
Financial liabilities Due to banks Amortised cost Due to customers Amortised cost PRIVATE INVESTMENT Due to customers - Precious metal BANK Fair LIMITED value through Notescurrency to Consolidated accounts Financial Statements profit or loss Derivative financial instruments Fair value through profit or loss Year ended December 31, 2019 Accruedin expenses other liabilities Amortised cost (Expressed Unitedand States dollars) Total financial liabilities
5. Due from and to banks
$
$ $
$
2019
2018
62,613,756
84,477,177
9,047,654
9,577,953
88,930 38,812,255 6,343,922 692,710 117,599,227
125,009 36,967,354 6,377,797 2,554,909 140,080,199
65,243 104,723,389
101,620 124,755,230
9,047,648
9,540,662
53,573 4,611,742 118,501,595
143,422 2,492,988 137,033,922
14
Due from and to banks are comprised of current and time deposit accounts bearing interest at rates ranging from 0.50% to 0.75% (2018: 0.50% to 0.75%) per annum. 6. Loans and advances
Computer software Cost: Balance at January 1, 2018 Additions Transfers Disposal (Note 11) December 31, 2018 Additions Transfers December 31, 2019
$
Loans and advances Provision for expected credit loss (note 7)
$ $
36,967,354 – 36,967,354
Loans and advances include secured loans and advances granted to customers and are repayable in less than a year. Secured loans and advances are collateralised primarily by assets managed by the Bank on behalf of its customers. The balance also includes $1,903,281 of overdrafts with a customer relating to their custody and administration fees, which have been fully provided for. Interest rates applicable on fixed term loans range from 2.5% to 3.26% (2018: 1.00% to 3.94%). Interest rates applicable on overdrawn customer accounts range from 1.00% to 5.65% (2018: 1.00% to 9.05%). 7. Provision for expected credit loss Balance at beginning of the year Provision for ECL for doubtful debts (note 6) Provision for ECL for related party balances (note 16) Write-off of provision
$
$
2019
2018
– 1,903,281 690,624 – 2,593,905
70,545 – – (70,545) –
During 2019, the Bank established provisions for an overdraft position with a customer of the Bank and for related party balances. The provisions established are in accordance with the Bank’s methodology for the measurement and recognition of ECL and falls within the definition of default as follows: - an obligor who has selectively defaulted on a specific issue or class of obligations but it will continue to meet its payment obligations on other issues or classes of obligation in a timely manner; and - an obligor has failed to pay one or more of its financial obligations (rated or unrated) - if the exposure is more or equal to 90 days past due it is automatically assessed as defaulted, respectively.
PRIVATE INVESTMENT BANK LIMITED During 2018, in light of the adoption of IFRS 9, The Central Bank of The Bahamas no longer
Notes to Consolidated FinancialofStatements required the establishment a general provision of 1% of the Group’s non cash-secured credit exposures. This removed any obligations to record provisions for loan losses besides what is Yearrequired ended December by IFRS 31, 9. 2019 Prior to 2018, the general provision was accounted for in other (Expressed in United States comprehensive income dollars) as an appropriation of retained earnings within the consolidated statement of shareholders equity. 8. Property and equipment
15
Land Building & Computer & land building hardware & improvements improvements equipment
$ 1,081,064 198,007 4,972 $ 1,284,043
Additions – Transfers (4,972) Reclassification to asset held-for-sale (note 12) (24,930) Disposal – December 31, 2019 $ 1,254,141 Accumulated depreciation: Balance at January 1, 2018 $ 5,133 Revaluation – Depreciation expense 3,351 December 31, 2018 $ 8,484 Depreciation expense Reclassification to asset held-for-sale (note 12) Disposal December 31, 2019 $
622 (3,476) – 5,630
4,249,673 (14,196) 7,417,308 11,652,785
Furniture Vehicles
Total
557,884 – 190,970 748,854
1,324,933 – 16,567 1,341,500
41,512 –
4,697 –
(2,883,387) – 9,369,818
– – 790,366
– – 1,346,197
– (2,908,317) (32,000) (32,000) 372,126 13,132,648
597,489 (321,392) 226,321 502,418
533,637 – 45,746 579,383
1,165,069 – 65,937 1,231,006
306,599 – 42,082 348,681
2,607,927 (321,392) 383,437 2,669,972
109,513
94,215
51,190
27,428
282,968
(485,720) – 126,211
– – 673,598
– – 1,282,196
600,420 –
394,681 7,608,235 – 183,811 9,445 7,639,262 404,126 15,431,308 – –
– (14,933) 361,176
646,629 (4,972)
(489,196) (14,933) 2,448,811
Net Book Value 2019 $ 1,248,511
9,243,607
116,768
64,001
10,950 10,683,837
Net Book Value 2018 $ 1,275,559
11,150,367
169,471
110,494
55,445 12,761,336
The Group’s land and building, other than additions, were last revalued on August 17, 2018 by an independent appraiser with an effective date of August 17, 2018. Valuations were made on the basis of recent market transactions on arm’s length terms. As of December 31, 2018, as a result of the revaluation, a gain on revaluation of land and building amounting to $505,203 was credited to other comprehensive income under “property revaluation reserve” in the consolidated statement of changes in shareholders’ equity. During the year, $16,070 (2018: $3,840) of the gain was transferred to retained earnings. As a result of the sale of the Venetian property to Cart Holdings & Investment Co. Ltd (the “Purchaser”) on March 29, 2019 for $2,400,000, the net book value of the property in the amount of $2,419,121 was transferred from property and equipment to asset held-for-sale (see note 11).
Total
$
– 2,577,146 (349,507) (1,497,159) 730,480 1,086,054 (1,626,552) 189,982
663,764 2,577,146 – (1,497,159) 1,743,751 1,086,054 – 2,829,805
Accumulated amortisation: Balance at January 1, 2018 $ Amortisation expense December 31, 2018 $
421,199 177,883 599,082
– – –
421,199 177,883 599,082
$
Amortisation expense December 31, 2019
$
537,268 1,136,350
– –
537,268 1,136,350
Net carrying amount 2019
$
1,503,472
189,982
1,693,455
Net carrying amount 2018
$
414,189
730,480
1,144,669
Intangible assets under development include direct costs incurred in the development of computer software related to enhancements in the Bank’s banking platform, credit module and e-banking. Based on a Board of Directors decision, on December 31, 2018, undeveloped intangible assets, namely the development costs incurred for the on-line onboarding tool, were transferred to PIB Technology Limited (“PIB Technology”), a related party by way of common ownership, because the development, owning, licencing and operating of various intangible assets is not part of the long-term strategy of the Bank. 10. Investment participation Investment participation includes the Bank’s investments in asset-backed mortgage
PRIVATE LIMITED investmentsINVESTMENT by way of purchasingBANK participation interests from counterparties who owns 100%
Notes Financial Statements of to theConsolidated mortgage-backed investments, including any applicable collateral. As of December 31, 2019, interest rates applicable on these investments are 5% (2018: 5%) . The investments are Yearhighly endedcollateralised December 31,with 2019 real estate and are short-term in nature. (Expressed in United States dollars) All investment participations were repaid subsequent to the balance sheet date. 11. Other assets and receivables As of December 31, 2019, other assets and receivables include: Deposits and guarantees Balances due from related parties Other assets and receivables
17
2018
40,715,536 (1,903,281) 38,812,255
Intangible assets under development
663,764 – 349,507 – 1,013,271 – 1,626,552 2,639,823
Provision for ECL for related party balances (note 16)
2019
Cost: Balance at January 1, 2018 Revaluation Additions December 31, 2018
Tuesday, April 28, 2020, PAGE 9
Year ended December 31, 2019 (Expressed in United States dollars)
1,397,159
$
2019 225,000 1,051,862 106,473 1,383,335
$
690,625 692,710
– 2,554,909
$
2018 225,000
932,750 2,554,909
Receivables amounting to $361,237 (2018: $1,397,159), related to the transfer of a portion of the Group’s investment related to the development of an automated on-boarding tool to PIB Technology. The Board approved the transfer on December 14, 2018, and the Assignment and Assumption Agreement, which outlines the terms and conditions of the transfer, was signed effective December 31, 2018. The automated on-boarding tool was still in development at the time of the transfer. PIB Technology’s parent company, TGV Gone Ltd., issued a Comfort Lettter expressing its willingness to provide immediate financial support to PIB Technology in the event of financial difficulties to ensure that it meets its contractual obligations and its compliance with the agreement, specifically as it relates to the above receivable. A material portion of the receivable was repaid within 30 days from the reporting date. Receivables amounting to 690,625 (2018: $NIL), which are due from shareholders of the Parent Company, were fully provided for with a provision of $690,625 (2018: $NIL). 12. Asset held-for-sale On March 29, 2019, the Bank entered into a Final Agreement (the “Agreement”) for the sale of the Venetian property to Cart Holdings & Investment Co. Ltd (the “Purchaser”) at a purchase price of $2,400,000 (the “Purchase Price”). The Purchase Price was due as follows: (a) $240,000, representing a 10% deposit, was paid at signing of the Agreement; (b) monthly instalments of $5,500 each were paid on the first day of each month commencing April 1, 2019 through November 1, 2019; (c) monthly instalments of $11,000 are due on the the first day of each month commencing December 1, 2019 through November 1, 2020, or an earlier date if the sale is completed prior to that date; and (d) the remaining balance of the Purchase Price, after deducting the deposit and the monthly instalments paid up to the date of final closing. If any of the monthly payments are not paid within 90 days of the date due, the Bank is entitled to cancel the Agreement and to retain all payments received prior to the date of cancellation. The final closing of the Agreement is the earlier of : (a) December 1, 2019 or (b) such other time as the Purchaser is able to procure a sales agreement and complete the sale of its other property, but in any event no laterBANK than November 30, 2020. PRIVATE INVESTMENT LIMITED
Notes to Asset Consolidated Financial Statements The held-for-sale is carried at fair value which is the agreed purchase price per the Agreement. Impairment loss on initial classification as held-for-sale amounted to $19,121 (see YearNote ended December 31, 2019 15). The deposit and monthly instalments received to date have been included in other (Expressed in as United Statesconsideration dollars) liabilities purchase received in advance, and will be offset against the book value of the Asset held-for-sale when the transaction closes. 18 13. Accrued expenses and other liabilities Accrued expenses Salaries and staff expenses Retrocession Other accruals Other liabilities
$
$
2019 1,146,858 311,499 696,825 696,294 1,760,266 4,611,742
2018 737,524 602,557 551,509 214,217 387,181 2,492,988
As of December 31, 2019, other liabilities include unsettled outgoing payments in the amount $1,371,469. The funds were subsequently settled. Accrued expenses and other liabilities relating to the Med Diversified matter amount to $30,000 (2018: $30,000) representing the amount accrued to cover administrative costs relating to the final closing activities with the Group’s attorney. As of December 31, 2019, the Bank was unaware of any potential recoveries or unresolved claims and, as such, the matter was concluded as closed. 14. Fee and commission income and expense Income: Administration fee Custody fee Retrocession fee Management, commission and other fees
$
Expense: Retrocession Custody fee Commission Net fee and commission income
$
2019
2018
4,322,285 1,920,643 4,518 4,732,269 10,979,715
1,958,713 2,039,009 6,292 3,788,996 7,793,010
1,694,595 1,062,778 210,148 2,967,521
944,363 1,476,499 225,481 2,646,343
8,012,194
5,146,667
2019
2018
5,961,072 3,757,488 2,593,905 548,063 19,121 12,879,649
6,084,965 4,071,560
15. General and administrative expenses
PRIVATE INVESTMENT BANK LIMITED
Notes to Consolidated Financial Statements Staff costs Operating and administrative expenses YearProvisions ended December 31, 2019 for expected credit loss (Expressed in United Statesfees dollars) Legal and professional Loss on impairment on asset held-for-sale
15. General and administrative expenses (continued)
$
$
–
776,884 –
10,933,409
The Bank operates a voluntary defined contribution pension plan for its employees. The pension plan is available to all permanent employees between the ages of eighteen and sixtyfive. The Bank contributes 9% and employees contribute a minimum of 6% of annual salaries. Certain other employees of the Bank participate in a defined contribution pension plan established by the former Parent Company.19The aggregate contributions to these plans was $358,507 (2018: $233,528), and are included in general and administrative expenses in the consolidated statement of comprehensive income. Staff costs include $1,171,593 (2018: $778,044) of key management personnel compensation. 16. Related party balances and transactions The Bank enters into various transactions with the Parent Company, the former Ultimate Parent
established by the former Parent Company. The aggregate contributions to these plans was
PAGE 10, Tuesday, April 28, 2020 $358,507 (2018: $233,528), and are included in general and administrative expenses in the consolidated statement of comprehensive income.
Staff costs include $1,171,593 (2018: $778,044) of key management personnel compensation.
the default occurs over the remaining expected lifetime of the loan;
The ECL for all products above are estimated via three components:
16. Related party balances and transactions The Bank enters into various transactions with the Parent Company, the former Ultimate Parent Company, the former Parent Company, and other parties related by virtue of common control in the normal course of business. The consolidated financial statements include the following related party balances and transactions not separately classified as such on the consolidated statement of financial position and consolidated statement of comprehensive income: Assets/(Liabilities): Due from banks – demand Loans and advances (note 11) Prepaid expenses Other receivables (note 11) Provision for ECL – other receivables (notes 7 and 11) Due to banks – demand Due to customers – demand Accrued expenses and other liabilities Receivable/ (payable) on derivative financial instruments - net
2019 $
65,986,380 15,491 10,333 1,036,371 (690,625) (63,098) (59,566) (25,000) 52,783
Income/ (Expenses): Commission expense Directors fees Interest expense General and administrative expenses Consultancy expense Professional expense
(832,651) (599,153) (299,377) (262,500) (37,500) (25,000)
-
EAD: Depends on the IFRS 9 asset classification. The EAD for cash and due from banks is the carrying amount on the consolidated statement of financial position an for investments in debt securities measured at FVOCI, the instrument’s cost adjusted the unamortised discount;
2018
PD: The estimated 12-month and lifetime PD is based on credit risk ratings published by external credit rating agencies such as Moody’s and S&P;
91,188,918 250,000 154,602 1,397,159
LGD: For Stage 1 and Stage 2 assets, LGD for sovereigns and corporates (banks) are aligned with default studies published by external rating agencies. In case of Stage 3 assets, LGD value is determined an individual basis for sovereign, bank and PRIVATE INVESTMENT BANK on LIMITED corporate exposure. Notes to Consolidated Financial Statements
(98,808) (2,490,005) (178,874)
Estimation techniques Year ended December 31, 2019 Macroeconomic expectations (Expressed in United States dollars) for sovereign securities and corporate debt are incorporated via their respective ratings obtained from Moody’s as part of their assessment of counterparty credit risk. For banks and corporate counterparties, the PD and related transition matrices are impacted on the basis of the Bank’s macroeconomic expectations. 19. Financial risk management (continued)
–
(15,850) (1,258,682) (453,135) (412,316) (837,370) (333,880) (201,326)
Consultancy expense includes advisory consulting services PRIVATE INVESTMENT BANKand LIMITED
provided by the Ultimate Parent and a director. Professional expense includes legal expenses paid to the Bank’s external Notes to Consolidated Financial Statements legal counsel who is also a director. YearDuring ended an December 31, 2019 Extraordinary Meeting of the Shareholders held on April 24, 2018, the Shareholders (Expressed dollars) resolvedintoUnited pay a States one-time payment to the Chairman of the Board of Directors in the amount of $500,000. This amount was included in general and administrative expenses in 2018.
in credit risk (b) Significant Credit risk increase (continued) An internal credit risk monitoring (continued) team performs a quarterly assessment to determine if an Expected credit loss measurement asset is subject to a significant increase in credit risk (“SICR”). A significant deterioration Significant increase in credit risk (continued) in credit quality represented by a financial asset’s credit rating migrating from investment grade to non-investment grade is defined as an SICR. In addition, indicators derived from the existing credit risk management function23within the Bank are also used to identify whether the credit risk of financial assets have significantly increased including the obligor being added to a credit watch list or payments being 30 days or more overdue or in forbearance. Definition of default The definition of default for the purpose of determining expected credit losses is consistent with the regulatory definition of default which considers the following indicators: - an obligor is highly vulnerable to non-payment, e.g. a bankruptcy petition has been filed;
17. Commitments and contingent liabilities The Bank is a party to certain financial instruments with off-balance sheet risk in the normal 20 of its customers. These financial instruments course of business to meet the financing needs include acceptances and guarantees, commitments to extend credit under lines of credit and commitments to originate loans and mortgages. Exposure to loss is represented by the contractual amount of those instruments. However, the Bank uses the same credit and hypothecation criteria when entering into these commitments and conditional obligations as it does for loans and advances. Contingent liabilities under acceptances and guarantees entered into on behalf of customers in respect of which there are corresponding obligations by customers, amounted to $111,605 (2018: $149,190) and are not included in the consolidated statement of financial position. Management has assessed all pending legal matters affecting the Group and is of the opinion that no provision is necessary in these consolidated financial statements. 18. Share capital and additional paid-in capital Share capital: Authorised, issued and fully paid-up: 3,000,000 ordinary shares of $1 each
$
2019
2018
3,000,000
3,000,000
Additional paid-in capital represents the excess of the issue price for the Bank’s shares over their par value and any contributions received from the Parent Company for which no shares have been issued. During the year, the Bank did not declare dividends (2018: $Nil). 19. Financial risk management By its nature, the Bank’s activities are principally related to the use of financial instruments, including derivatives. The Bank accepts deposits from its customers at fixed rates and for various periods and seeks to earn a better return by consolidating short-term funds and investing for longer periods in making collateralised loans to customers and placing bank deposits, whilst maintaining sufficient liquidity to meet all claims that might fall due. The Bank also enters into forward currency contracts as part of its client-related activities and manages the risks of these positions by taking offsetting positions with the former Parent Company. The Bank’s activities expose it to a variety of financial risks in the normal course of business. These risks include fiduciary, credit, market risk and liquidity risks. The Bank’s financial performance is dependent on its ability to understand and effectively manage these risks. PRIVATE INVESTMENT BANK LIMITED
- an obligor has selectively defaulted on a specific issue or class of obligations but it will continue to meet its payment obligations on other issues or classes of obligations in a timely manner; - an obligor has failed to pay one or more of its financial obligations (rated or unrated) - if the exposure is more or equal to 90 days past due it is automatically assessed as defaulted. - financial asset has “defaulted” external rating. Forward-looking information incorporated in ECL model An assessment of SICR incorporates all relevant, reasonable and supportable information, including forward looking information that is available without undue cost or effort. With these financial instruments, there is understandably limited in-house data available, as for example, the Bank would not always have access to the most recent financial information or performance indicator of an instrument issuer. As a result, staging is based largely on external credit rating from Moody’s, S&P and/or other rating scale. If no external rating is available, internal rating is applied. By definition, credit rating is an evaluation of the credit risk of the issuer, predicting its ability to pay back obligation, and an implicit forecast of the likelihood of the issuer defaulting. This makes credit rating the appropriate measure to PRIVATE INVESTMENT BANK LIMITED assess the increase in default risk. Notes to Consolidated Financial Statements Based on the management’s decision, the Bank will apply “low credit risk expedient” as defined in IFRS31, 9, 2019 which is considered a simplified approach to assessing whether or not Year ended December thereinhas been States a significant (Expressed United dollars)increase in credit risk from the date of initial recognition. As an exception to the general model, if the credit risk of a financial instrument is low at the reporting date, the Bank can presume that no significant increase has arisen and as a result, it can measure impairment(continued) using 12-month ECL. In order for this operational simplification 19. Financial risk management to apply, the financial instrument has to meet the following requirements: (b) Credit risk (continued) • It has a low risk of default. Expected credit loss measurement (continued) • The borrower is considered, in the short term, to have strong capacity to meet its Forward-looking information incorporated in ECL model (continued) obligations. •
The lender expects, in the longer term, that adverse changes in economic and business conditions might, but will not necessarily reduce the ability of the borrower to fulfil its obligations. 24
ECL Staging
Notes Consolidated Financial Statements (a)toFiduciary
The Group provides significant asset management, custody and trustee services to third Year ended December 31, 2019 parties. TheseStates activities give rise to operational risk, which is the risk that the Group may (Expressed in United dollars) fail in carrying out certain mandates in accordance with the wishes of its customers. To manage this exposure, the Group generally takes a conservative approach in its fiduciary undertakings for customers. 19. Financial risk management (continued) 21
(b) Credit risk
Credit risk arises from the potential for failure of a counterparty to perform according to the terms of the contract. The Bank’s exposure to credit risk is primarily in the form of demand balances with banks, time deposits with banks, loans and advances to customers and investment participation. The Bank only places demand and time deposits with high quality international financial institutions, including the former Parent Company. The loans and advances are short-term and are collateralised by assets managed by the Bank on behalf of its customers. The Bank also uses other methods, such as credit monitoring techniques, including collateral and credit exposure limit policies. The table below sets out the total credit risk and significant concentrations of financial assets by geographical location of the counterparty.
As of December 31, 2019 ASSETS Due from banks - Demand and call $ 65,992,445 Loans and advances 10,497,459 Investment participation – $ 76,489,904
Central and South America North and the America Caribbean
Other
Total
4,068,478 1,600,487 11,253,111 16,982,158 6,343,922 – 21,665,511 18,582,645
– 79,527 – 79,527
71,661,410 38,812,255 6,343,922 116,817,587
Europe
Central and South America North and the America Caribbean
Other
Total
1,068,125 2,119,117 4,426,306 20,811,183 6,377,797 – 11,872,228 22,930,300
– 625,041 – 625,041
94,055,130 36,967,354 6,377,797 137,400,281
Europe
As of December 31, 2018 ASSETS Due from banks - Demand and call $ 90,867,888 Loans and advances 11,104,824 Investment participation – $ 101,972,712
SeventyINVESTMENT six percent (2018: Eighty six percent ) of the total loans and advances are due from PRIVATE BANK LIMITED
customersFinancial (2018: five customers) and ninety nine percent (2018: ninety nine percent) Notes tofive Consolidated Statements of due from banks are due from four banks (2018: four banks). Year ended December 2019 Expected credit31, loss measurement (Expressed in United States dollars) ECL is a probability-weighted estimate of the present value of future cash shortfalls (i.e., the weighted average of credit losses, with the respective risks of default occurring in a given risk time management period used as(continued) weights). An ECL measurement is unbiased and is determined 19. Financial by evaluating a range of possible outcomes. ECL measurement is based on four (b) Credit risk (continued) components used by the Group: Probability of Default (“PD”), Exposure at Default (“EAD”), Loss Given Default (“LGD”) and Discount Rate, defined as follows: Expected credit loss measurement (continued) Exposure at default (“EAD”) is22 an estimate of the amount the Bank expects to be owed at the time of default, over the next 12 months (12-month EAD) or over the remaining lifetime (Lifetime EAD), taking into account expected changes after the reporting period, including repayments of principal and interest, and expected drawdowns on committed facilities; Probability of default (“PD”) represents the likelihood of a borrower defaulting on its financial obligation, either over the next 12 months (12-month PD), or over the remaining lifetime (Lifetime PD) of the obligation; Loss given default (“LGD”) represents Bank’s expectation of the extent of loss on a defaulted exposure. LGD varies by type of counterparty, and availability of collateral or other credit support. LGD is expressed as a percentage loss per unit of exposure at the time of default (EAD). LGD is calculated on a 12-month or lifetime basis, where 12-month LGD is the percentage of EAD expected to be non-recoverable if the default occurs in the next 12 months and lifetime LGD is the percentage of EAD expected to be non-recoverable if the default occurs over the remaining expected lifetime of the loan; Discount rate represents the effective interest rate (“EIR”) for the financial instrument or an approximation thereof. The expected losses are discounted to present value at the end of the reporting period. The ECL for all products above are estimated via three components: -
THE TRIBUNE
Discount rate represents the effective interest rate (“EIR”) for the financial instrument or an approximation thereof. The expected losses are discounted to present value at the end of the reporting period.
EAD: Depends on the IFRS 9 asset classification. The EAD for cash and due from
Stage 1 As of December 31, 2019 Due from banks - Demand and call $ 62,613,756 Loans and advances 38,812,255 Investment participation 6,343,922 Other assets and receivables 692,710 Total on-balance sheet position $ 108,462,643
Stage 2
ECL allowance included in Fair value of Stage 3 carrying values collateral held
– – – –
– – – –
– 1,903,281 – 690,624
– 128,919,857 14,350,551 –
–
–
2,593,905
–
111,605
–
–
–
–
As of December 31, 2018 Due from banks - Demand and call $ 84,477,177 Loans and advances 36,967,354 Investment participation 6,377,797 Other assets and receivables 2,554,909 Total on-balance sheet position $ 130,377,237
– – – –
– – – –
– – – –
– 53,720,181 16,200,000 –
–
–
–
–
Financial guarantees
–
–
–
–
Financial guarantees
$
$
149,190
As with any economic forecast, the projections and likelihoods of occurrence are subject to a high degree of inherent uncertainty, and therefore the actual outcomes may be significantly different to those projected. The Group considers these forecasts to represent PRIVATE BANK LIMITED its bestINVESTMENT estimate of the possible outcomes and has analysed the non-linearities and Notes toasymmetries Consolidatedwithin Financial Statements the Group's different portfolios to establish that the chosen scenarios are appropriately representative of the range of possible scenarios. Year ended December 31, 2019 (c) Market risk States dollars) (Expressed in United Market risk encompasses interest rate risk, currency risk and other price risk, all of which arise in the normal course of business. Price risk is the risk to earnings that arises from 19. Financial risk management (continued) changes in interest rates, foreign exchange rates, equity and commodity prices, and their impliedrisk volatilities. (c) Market (continued) The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. The Group is not exposed to significant price risk as it does not invest in any marketable securities and has minimum 25 exposure to currency and interest rate risks. Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group manages its exposure to interest rate risk by matching interest bearing liabilities with assets of similar principal values, interest rates and terms. In addition, because a substantial part of the Group’s liabilities are non-interest bearing and available on demand, the Bank invests these funds in interest bearing deposits with terms up to three months. Therefore, the Group’s sensitivity exposure to reasonably possible changes in interest rates is minimal in terms of material impact to profit or loss and equity. Further, interest rate risk analysis is the subject of a specific internal guideline approved by the Board of Directors with sets limits to be complied with authority to incur interest rate risk and the controls to be carried out. The former Parent Company has charged the Bank with negative interest amounting to $299,377 (2018: $412,316) on its Swiss francs (“CHF”) and Euro (“EUR”) deposit accounts. Interest rate charged for CHF accounts held with the former Parent Company is 75 basis points (2018: 75 basis points), while interest rate charged for EUR accounts is 50 basis points (2018: 50 basis points). The Bank has, in turn, charged negative interest to customer deposits amounting to $347,408 (2018: $395,269) with the same rates charged to them by the former Parent Company. These amounts are included in Interest expense banks and Interest income - customers in the consolidated statement of comprehensive income, respectively. Currency risk The Bank takes on exposure due to the effects of fluctuations in the prevailing foreign currency exchange rates on its financial position and cash flows. The Board of Directors sets limits on the level of exposure by currency and in total for overnight positions, which are monitored daily. The table below summarises the Group’s exposure to foreign currency exchange rate risk. Included in the table are the Group’s consolidated assets and liabilities at carrying amounts,
Year ended 31,on2019 TheDecember Bank takes exposure due to the effects of fluctuations in the prevailing foreign currency exchange rates on its financial position and cash flows. The Board of Directors sets limits on the level of exposure by currency and in total for overnight positions, which are monitored daily. 19. Financial risk management (continued) The table below summarises the Group’s exposure to foreign currency exchange rate risk. (c) Market (continued) Includedrisk in the table are the Group’s consolidated assets and liabilities at carrying amounts, categorised by currency. Currency risk (continued)
THE TRIBUNE (Expressed in United States dollars)
USD
As of December 31, 2019 ASSETS Due from banks $ Loans and advances Prepaid expense Property and equipment Intangibles Asset held-for-sale Investment participation Other assets and receivables Derivative financial Instruments Total Assets $ LIABILITIES Due to banks Due to customers Derivative financial instruments Accrued expenses and other liabilities Total Liabilities
$
EUR
Other
Total
22,447,882 30,702,301 347,873 10,683,837 1,495,279 2,400,000 6,343,922 692,710
27,779,354 9,697,269 3,593,023 8,143,882 3,717,535 2,912,660 804,514 675,245 – – – – – – – – – 198,176 – – – – – – – – – – – – – –
71,661,410 38,812,255 347,873 10,683,837 1,693,455 2,400,000 6,343,922 692,710
88,930 75,202,734
– – – – 88,930 31,496,889 12,808,105 4,397,537 8,819,127 132,724,392
3,377 40,611,508
9,568 – – 52,298 65,243 45,812,995 12,767,555 4,389,695 10,189,284 113,771,037
$
Net on-balance sheet position
$
30,038,083
GBP
26
53,753 4,496,013 45,164,651
CHF
–
–
–
–
53,753
9,455 59,814 22 46,438 4,611,742 45,832,018 12,827,369 4,389,717 10,288,020 118,501,775 (14,335,129)
USD
(19,264)
EUR
PRIVATE INVESTMENT BANK LIMITED As of December 31, 2018
7,820 (1,468,893)
CHF
GBP
Other
14,222,617 Total
Notes to ASSETS Consolidated Financial Statements
Due from banks $ 23,820,634 42,488,497 14,322,464 1,698,624 11,724,911 94,055,130 Loans and advances 3,798,939 1,910,059 2,539,585 2,340,259 36,967,354 Year ended December 31, 2019 26,378,512 Prepaid expenses 457,491 – – – – 457,491 (Expressed in United States dollars) Property and equipment 12,761,336 – – – – 12,761,336 Intangibles 948,297 – 196,372 – – 1,144,669 Investment participation 6,377,797 – – – – 6,377,797 Other assets receivables (continued) 2,546,074 3,212 5,433 126 64 2,554,909 19. Financial risk and management Derivative financial instruments 125,099 – – – – 125,099 (c) Market risk (continued) Total Assets $ 73,415,240 46,290,648 16,434,328 4,238,335 14,065,234 154,443,785
Currency risk (continued)
USD
As of December 31, 2018 LIABILITIES Due to banks Due to customers Derivative financial instruments Accrued expenses and other liabilities Total Liabilities Net on-balance sheet position
$
8,613 56,837,544
EUR
2,371,581 59,361,160
$
14,054,080
As of December 31, 2019 and 2018
–
Other
Total
–
–
–
143,422
9,189 102,622 9,595 1 2,492,988 46,291,086 16,626,901 4,224,738 10,530,037 137,033,922
27
(438)
USD
Contingent liabilities under acceptances and guarantees (note 15) $
GBP
784 2,649 – 89,574 101,620 46,281,113 16,521,630 4,215,143 10,440,462 134,295,892
143,422 $
CHF
(192,573)
EUR
–
CHF
–
13,597 3,535,197
GBP
–
Other
–
–
17,409,863
Total
–
(d) Liquidity risk Liquidity risk is the risk that the Group will encounter difficulty in meeting obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group manages its liquidity by matching liabilities with assets of similar maturity periods. The table below analyses assets and liabilities of the Group into relevant maturity groupings based on the remaining period at the reporting date to the contractual maturity date. One to three months
Less than one month
As of December 31, 2019 ASSETS Due from banks – - Demand and call $ 71,661,410 Loans and advances 8,728,369 27,924,686 – Investment participation 6,343,922 LIMITED PRIVATE INVESTMENT BANK 86,733,701 27,924,686 Notes to Consolidated Financial$ Statements
Three Six months to six to one months year
Total
325,834
1,833,366
71,661,410 38,812,255 6,343,922 116,817,587
–
–
–
65,243
– – –
– – –
– – –
113,771,037
–
325,834 –
–
1,833,366 –
LIABILITIES
Year ended December 31, 2019 Due to banks (Expressed -in United States dollars) Demand $
65,243 Due to customers - Demand 113,771,037 19. Financial risk management (continued) – - Time $ 113,836,280 (c) Liquidity risk (continued)
28
Less than one month Liquidity gap
$
As of December 31, 2018 ASSETS Due from banks - Demand and call $ Loans and advances Investment participation $ LIABILITIES Due to banks - Demand Due to customers - Demand - Time Liquidity gap
(27,102,579) 27,924,686
Less than one month
One to three months
94,055,130
– – 19,267,805 – –
94,055,130 19,267,805
Three Six months to six to one months year 325,834
113,836,280
$
$ $
Level 2 USD
Level 3 USD
Total USD
9,047,654 – 9,047,654
– 88,930 88,930
– – –
9,047,654 88,930 9,136,584
9,047,648 – 9,047,648
– 53,753 53,753
– – –
9,047,648 53,753 9,101,401
Level 1
Level 2 USD
Level 3 USD
Total USD
9,577,953 – 9,577,953
– 125,099 125,099
– – –
9,577,953 125,099 9,703,052
30 USD
Level 1
Level 2 USD
Level 3 USD
Total USD
9,540,662 – 9,540,662
– 143,422 143,422
– – –
9,540,662 143,422 9,684,084
As of December 31, 2018 USD PRIVATE INVESTMENT BANK LIMITED Financial assets designated Notes to Consolidated Financial Statements at fair value
fromDecember banks YearDue ended 31, 2019 - Precious currency (Expressed in metal United States dollars) accounts Derivative financial instruments Total assets at fair value
$ $
21. Fair value of financial instruments (continued) As of December 31, 2018 Financial liabilities designated at fair value Due to customers - Precious metal currency accounts Derivative financial instruments Total liabilities at fair value
$ $
22. Assets under management The Bank provides custody, trustee, investment management and advisory services to individuals, corporations, trusts and other institutions, whereby it holds and manages assets or invests funds received in various financial instruments at the direction of the customer. The Bank receives fee income for providing these services. Assets under management (“AUM”) are not assets of the Bank and are not recognised in the consolidated statement of financial position. The Bank is not exposed to any credit risk relating to such placements, as it does not guarantee these investments. At the reporting date, the Bank had AUM amounting to $614 million (2018: $797 million), of which $6 million (2018: $5 million) was held in a fiduciary capacity. 23. Capital management The Bank’s objectives when managing capital, which is a broader concept than ‘equity’ on the face of the consolidated statement of financial position, are: • • •
To comply with the capital requirements set by the Central Bank of The Bahamas (“the Central Bank”); To safeguard the Bank’s ability to continue as a going concern so that it can continue to provide returns for its shareholders and benefits for other stakeholders; and To maintain a strong capital base to support the development of its business.
Capital adequacy and the use of regulatory capital are monitored by the Bank’s management, employing techniques designed to ensure compliance with guidelines established by the Central Bank. The required information is filed with the Central Bank on a quarterly basis. PRIVATE INVESTMENT BANK LIMITED
Notes to Central Consolidated Financialthe Statements The Bank requires Bank to: (a) have regulatory capital of at least $5,000,000 and (b) maintain a ratio of total regulatory capital to risk-weighted assets at or above a minimum Yearofended December 31, 2019 15% (2018: 15%). (Expressed in United States dollars) The table below summarises the composition of regulatory capital and shows the capital adequacy ratio of the Bank as of the reporting date. During 2019 and 2018, the Bank has compliedmanagement with all of the externally imposed capital requirements to which it was subject to. 23. Capital (continued) Tier 1 capital Share capital Retained earnings Tier 2 capital Property revaluation reserve Deductions (regulatory adjustments) Intangibles Total
$ 31
2019
2018
7,000,000 5,150,359
7,000,000 8,302,414
2,091,379
2,107,449
$
(1,693,455) 12,548,283
(1,144,669) 16,265,194
$
82,527,000
88,089,000
15%
18%
24. Subsequent events
2,981,307
Three Six months to six to one months year
During the January 16, 2020 Board of Directors meeting, management presented a Contingency Plan (the “Plan”) to the Board for their consideration and approval. The implementation of the Plan depended on whether the second payment instalment due to the former Parent Company as part of the SPA was paid when due on or before January 29, 2020.
Total
IPG did not fulfil the contractual obligation defined in the SPA and the second instalment to the former Parent Company was not paid within the cure period (ended on January 29, 2020), so IPG was put into default.
94,055,130 36,967,354 6,377,797 137,400,281
Due to the Event of Default refered to in Note 1, the Plan was implemented and seventeen (17) employees and their positions were made redundant with the Bank.
–
9,114,049
–
8,585,500 – 6,377,797 9,114,049 14,963,297
–
101,620
134,295,892
– – –
– – –
– – –
134,295,892
9,114,049 14,963,297
–
134,397,512 3,002,769
20. Derivative financial instruments The Bank enters into forward currency contracts solely as part of its client-related trading activities. Forward currency contracts are contracts to purchase and sell foreign currencies at specific rates of exchange on specific dates in the future. Risk arises from the potential inability of counterparties to perform under the terms of the contracts (credit risk) and from fluctuations in the foreign exchange rates (market risk). The Bank manages the market risks of client-related positions by taking offsetting positions with the former Parent Company, resulting in minimal market exposure. The credit risk of the client-related positions is managed by applying uniform credit standards maintained for all activities with credit risk. Collateral held generally includes PRIVATE INVESTMENT BANK LIMITED cash, cash equivalents and marketable securities. Notes to Consolidated Financial Statements The Bank had contractual commitments under open forward currency contracts as follows: Year ended December 31, 2019 2019 2018 (Expressed in United States dollars) Commitments to purchase forward currency contracts 34,335,130 25,744,821 Commitments to sell instruments forward currency contracts 20. Derivative financial (continued)
Financial liabilities designated at fair value Due to customers - Precious metal currency accounts Derivative financial instruments Total liabilities at fair value
$
Level 1 USD
1,833,366
–
134,397,512 (40,342,382) 19,267,805
As of December 31, 2019 Financial assets designated at fair value Due from banks - Precious metal currency accounts Derivative financial instruments Total assets at fair value
Capital adequacy ratio Total
–
–
IFRS 7 specifies the hierarchy of valuation techniques based on whether inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources; unobservable inputs reflect the Bank’s market assumptions. These two types of inputs have created the following fair value hierarchy levels for financial assets and liabilities:
Risk-weighted assets
101,620
$
$ $
One to three months
–
estimates. The non-derivative financial instruments utilised by the Bank are either short-term Tuesday, April 28, 2020, PAGE 11 in nature or have interest rates that automatically reset to market on a periodic basis. Accordingly, their estimated fair values are not significantly different from their carrying values.
34,299,953
25,726,499
The contract amounts of these instruments reflect the extent of the Bank’s involvement in forward currency contracts and do not represent the Bank’s risk of loss due to counterparty non-performance. The credit risk is limited to 29those contracts with a positive fair value.
21. Fair value of financial instruments
Fair value estimates are made at a specific point in time, based on market conditions and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgments and therefore, cannot be determined with precision. Nevertheless, fair values can be determined within a reasonable range of estimates. The non-derivative financial instruments utilised by the Bank are either short-term in nature or have interest rates that automatically reset to market on a periodic basis. Accordingly, their estimated fair values are not significantly different from their carrying values. IFRS 7 specifies the hierarchy of valuation techniques based on whether inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data
At the beginning of February 2020, under the new Steer-ship, the Bank launched a contingency plan with foreseeable future saving for a total amount of approximately USD 4.5 million per year. In the framework of these important cost saving measures, several employees were requested to leave the Bank and the plan for replacement of few employees was suspended. The Bank is now operating with 20 FTEs. On the other operating expenses side, the Bank decided to reduce costs as much as possible. At the same time, the Bank took several measures to optimize the current Balance sheet and the related regulatory ratios. The Bank also started an important review of its customer base and decided to implement a De-risking plan that is expected to be completed by mid-April 2020. The Novel Coronavirus (COVID-19) pandemic has presented challenges and threats both from a business perspective and economic perspective globally. The impact of the coronavirus outbreak is evolving rapidly. Many countries have imposed various measures such as travel PRIVATE INVESTMENT BANK LIMITED restrictions and quarantines that have resulted in a significant drop in demand for goods and Notes to Consolidated Financial Statements services and supply chain disruptions. This has resulted in lost revenue and disruptions in business processes and workflows. Additionally, volatility in financial markets has resulted. Year ended December 31, 2019 The Bank has considered the impact of COVID-19 on its business operations and results. In (Expressed in United States dollars) performing the assessment, key aspects were considered, including going concern and liquidity, operations and measurement of the Lombard Loans and the impact, if any, to the assessment 24. Subsequent eventslosses. (continued) of expected credit COVID-19 will impact the performance of portfolios and investments as markets continue to 32 be impacted as unemployment globally increases, economies slow down, and investors lose confidence in the markets. However, despite the Bank experiencing movements in its Assets Under Management, these movements as a result of the impact of COVID-19 can partially be considered as the consequence of the negative financial market performance on the one hand, partially because of the normal business cycles as it relates to the opening and closing of client relationships on the other. The financial overview of the Bank during the first three months of 2020 has not been directly linked to the impact of COVID-19, but rather the normal business activities. However, the Bank will continue to monitor these results given the unpredictability of the current global economic and financial markets, focusing particularly on any impact on income derived from Assets Under Management and related trading income. The Bank continues to monitor it’s financial and prudential norm ratios. The Bank’s operations remain stable with minimal disruptions of services to its clients. The Bank formed a COVID-19 Disaster Response Committee and built upon its existing business continuity program to prepare for quarantines, lockdowns and work from home scenarios. The Bank has not had to book any additional expected credit losses for clients as a result of COVID-19. The Bank monitors its credit facilities and overdrafts through its internal control measures and as of the date of this report has not identified any exposures that may lead to additional credit losses for the Bank.
PAGE 12, Tuesday, April 28, 2020
THE TRIBUNE
CARPE DIEM
➔
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JUDGE PARKER
In the following passage, the numbers 12345 represent different letters: 12514’s recipe for 32143 543 3445 and 5214 seethed in 12345 was 3452343 and 3415243 by all, even though no one actually 3243 from eating it. But once she 3412343 to 34-214 her fridge, the threat 5414343. Sadly, she then invented a 3254 dish called 35243 42345 34552454, which was even 321245.
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2 Deuts 3 4 5 6
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Solution in Monday’s puzzle pull-out
Daily Express Thursday, October 24, 2019
Puzzles
MARVIN BLONDIE
➔
34
4
SuMTHiNG Fit the missing numbers into the grid below so that all the sums are correct – reading left to right or on single lines top to bottom. There are 11 squares to fill, with one digit in each, and the 11 digits you must use are listed beneath the grid. But where do they all go? Solution in Monday’s puzzle pull-out
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+ CRUSADER PRIZE CROSSWORD 3
HAGAR THE
TIGER
CALVIN & HOBBES
acrOss 1 Leading striker rating port’s eccentric exterior (3,6) 6 Leave out a rubbish container (4) 10 A profit once more (5) 11 Slim likelihood of hefty odds (3,6) 12 Sportsman uses stealth, losing initial energy (7) 13 Enters back-to-front salaries (7) 14 Kind offer – catch HORRIBLE Edward (6-7) 17 Anticipated another visitor, so to speak (6-7) 21 Musical reduction in style (7) 22 Tail not developed altogether (2,5) 24 Group of drummers reported bargain prohibited (5,4) 25 Hidden nuisances, including boredom (5) 26 Simple point, say, to change (4) 27 Early step is original and corrupt (5,4)
1 2 3 DOWN 1 Social gathering of = We’ve given you one digit – the 3 in the middle row. Republicans (3,5) Here are the missing digits to fit in: 2 Steal, then cook 0, (5) 1, 2, 2, 3, 4, 4, 4, 5, 8, 8 ? 10 3 After meeting, order an inclusive conversation (10,4) The Daily Express Puzzled Mentathlon is in five parts, ea 4 Judge joined hers in order of our puzzles. Take the12 last letters of the answers to D to revive (7) QUIZ OF THE WEEK and the last letter of the first ans Now rearrange those into a five letter 5 Wine gets drunk, sections. in tears (7) 7 Lucrative character asking 14 15 about getting dull return (4,5) SAMurAi WorDSeArC 8 Asleep at work, if you SuDoku don’t mind 4(6) 3 5 2 8 1 6 7 9 5 3 7 4 2 6 8 9 1 17 V Q V X V W L 1 2 8 9 7 6 5 3 4 2 4 6 8 9 1 5 7 3 9 Drastic measures 6 9 7 3 4 5 8 2 1 8 9 1 7 5 3 4 6 2 B A B U O I K 7 5 2 1 6 3 9 4 8 9 2 8 5 7 4 3 1 6 broadcast about wine N E C N F B V 3 4 1 8 2 9 7 5 6 6 1 420 3 8 2 7 5 9 9 8 6 4sorted 5 7 2 1 3 (5,9)3 7 5 1 6 9 2 4 8 matter getting M O S T S Y C 8 7 3 6 1 2 4 9 5 2 8 1 7 6 3 2 1 5 9 8 4 6 9 7 3 4 1of 8 2satin 3 7 6 4 5 921 6 3 8 1 2 7 V O R Q M V C 15 Unpleasant52 quality 1 4 5 9 8 3 6 7 4 5 9 1 8 2 9 4 7 6 3 5 J H L D W G M 9 3 1 6 4 2 8 7 5 ensemble on head 7(9) 5 4 1 9 8 3 2 6 P Y U A I E M 8 2 6 7 3 5 9 4 1 16 Attendant follows lead, T O N P L C E 7 2 4 5 8 3 6 1 9 8 2 4 5 3 7 2 8 4 6 9 1 wandering 6in3 city 1 4 9 2(8) 5 7 8 9 6 3 2 1 4 6 9 5 3 7 8 G P L E W S O 9 5 8 1 7 6 2 4 3 5 1 7 6 9 8 7 1 3 5 2 4 24 18 Forty-nine per 3 4 5 cent? 8 2 7 1 9 Very 6 4 7 2 5 3 1 8 6 9 U I T E Z C L 2 1 6 3 4 9 7 8 5 3 6 5 8 7 9 4 1 2 much so (3,4) Q S W G S S O 8 9 7 6 1 5 4 3 2 9 8 1 4 2 6 7 5 3 8 9 7 6 1 3 2 4 8 5 6 1 4 2 9 3 7 L T O S Y L U 19 Old money 51has association 6 2 9 3 4 8 5 7 7 2 3 9 6 8 1 4 5 N E O R H W Y 7 3 2 5 8 9 6 1 1 4 9 3 5 7 2 8 6 with queen4 (7) K R D K E I Q 26 20 Pursued, say, for being SMALL CroSSWorD C H A B G G V pure (6) Across: 1 Neighbour, 7 Parent, 23 Can point to a form10ofRear, 12 Ate, 9 Assured, THe ALPHA 13 Freezes, 14 Ill, 15 East, ringworm (5)
17 Butcher, 19 Sacred, 20 Standards. Down: 1 Near miss, 2 Else, 3 IBS, 4 Harvested, 5 Breeze, 6 Units, 8 Theatres, 11 Return, 13 Float, 16 Send, 18 Her.
black squares: 3, 25, 28, 33, 34, 35. Across: Purse, Str Lymph, Oxidation, Injure, Jab, Deceive Down: Latent, Unif Earphone, Scampi, TArGeT cAn you crack the Alphabeater? Each Insect,grid Ibis, Gaze, T CoNFiDANT number represents a letter – or black square. acid action anion anodic anoint anon CroSS Dou Asanti in Alphapuzzle, every letter of the alphabet antic cadi cannot canon cant Across: is used. But you have complete the gridFLOWN too! canto canton cation ciaoto coat coati Down: WINGS coda containand dacoit daft squares below use theCONFIDANT given letters black fact faction factoid fain faint SuMMiT uP thedicta grid to start. the grid is ‘rotationally fiat fondant infant iota naif nation 93 and symmetrical’ – intoad other words, it looks the 85 nicad octad taco
THE ALPHABEAT
TARGET
DA i o i V t En
● The Target uses words in the main body of Chambers 21st Century Dictionary (1999 edition)
same if you turn the page upside down. Solution tomorrow
A 37 38 21 14 23 23 21 34 38 B C 20 12 37 19 10 16 4 15 14 D E 30 23 11 14 15 34 13 23 10 F G 39 18 5 3 18 20 36 38 26 H I 11 13 32 35 7 9 27 11 37 J TODAY’S TARGET K 34 40 14 21 34 18 22 2 Good 22; very good 33; excellent 44 34 (or more). Solution tomorrow L M 6 12 20 35 27 8 28 34 20 call 0907 181 2585 N for today’s target solutionBest described O 3 as a36 17 crossword, 33 21 the 3 task 34in Kakuro 35 39 number *Calls cost 80p per minute plus your telephone P the empty squares, using numbers 1 to 9, so is to fill all of company’s network access charge. 7 horizontal 11 14block 31 equals 22 the 20 number 27 3to its16 the sum of Qeach left, and theR sum of each vertical block equals the number on its top. No number same19 block24 more2 S 11 9 may 23be used 18 in 29the 18 than once. T The difficulty level of the Conceptis Kakuro increases from Monday to Sunday. U 14 13 14 10 12 22 33 34 40 FIND where the fleet of ships shown is hidden V in the grid. The numbers to the right of and W 39 8 20 17 34 40 10 34 19 below the grid indicate how many of the X squares in that row are filled in with ships orYesterday’s Yesterday’s parts of ships. The ships do not touch each Y 5 2 31 9 13 34 22 11 6 other, even diagonally. Some squares have Sudoku Kakuro Answer Z Answer HOW many words of four letters or more can you make from the letters shown here? in making a word, each letter may be used once only. Each must contain the centre letter and there must be at least one nine-letter word. no plurals or verb forms ending in “s”.
DENNIS THE MENACE Sudoku is a number-placing puzzle based on a 9x9 grid with several given numbers. The object is to place the numbers 1 to 9 in the empty squares so the each row, each column and each 3x3 box contains the same number only once. The difficulty level of the Conceptis Sudoku increases from Monday to Sunday
BATTLESHIPS
been filled in to start you off. Solution tomorrow 2
1
CRYPTIC PUZZLE 1 A communication you’ll understand when you get it (7) 5 Recipients of ear-piercing work (5) 8 Different view put in writing by a dramatist? (6,2,5) 9 Unpopular mathematician (5) 10 A breather taken under water (7) 11 Work hard with an advertising jingle (6) 12 Vessel in plot set on fire (6) 15 Work with a kind of musical note (7) 17 A store of French cannabis (5) 19 You won’t find a stowaway on it (9,4) 20 Carol’s five gold ones (5) 21 Given marks for having been observant (7)
1 Get me and two
3
4
5
6
a holy place (5) 2 What formal debaters do to
11
12
4 Possibly it goes to a selfish type (6)
16
1
E
2
F
1
G
3
H
1
I
1
J
4 2
2
7
with a ring (5)
18
21
might be (7)
13 Experience lower energy (7) 14 Rules the singer breaks (6) 16 Helps a beast in distress (5) 18 Carried to Edward (5)
Yesterday’s Easy Solution
Across: 1 Cramp, 8 Outgoing, 9 Story, 10 Straight, 11 Dregs, 12 Led, 16 Enigma, 17 Awards, 18 Pam, 23 Peron, 24 Idolatry, 25 Edith, 26 Pipe down, 27 Drays.
Across: 1 Space, 8 Karl Marx, 9 Frump, 10 Socrates, 11 Igloo, 12 Gap, 16 Native, 17 Accord, 18 Toy, 23 Hunch, 24 Trollope, 25 Faint, 26 Turgenev, 27 Snarl. Down: 2 Paraguay, 3 Cambodia, 4 Pagoda, 5 Glory, 6 Party, 7 Exist, 12 Get, 13 Pay, 14 Schumann, 15 Bruckner, 19 Osprey, 20 State, 21 Court, 22 Alley.
Across 1 Universal remedy (7) 5 Extra large (5) 8 A show-off (13) 9 Alluvial area at river mouth (5) 10 Heartfelt (7) 11 Method (6) 12 Loose from moorings (6) 15 Ignorant (7) 17 Principal (5) 19 And indeed also (3,4,6) 20 Senior (5) 21 Fault (7)
0
3
2
3
4 x submarine
11 Does it put an end to the drinking? (7)
3
2 x cruiser
19
20
2
3 x Destroyer
cause a parting (8,5) 7 Shot at you as peas
1
1 x Battleship
5 Rope in a girl 6 Where strain will
9 10
D
13
17
8
2
14 15
7
1
10
republic (7)
6
B
be logical (5,2,6) 3 Regalia thrown out by
5
C
8
9
4
4
hundred more to
Yesterday’s Cryptic Solution
Down: 2 Retiring, 3 Mortgage, 4 Bustle, 5 Ogham, 6 Dirge, 7 Agate, 12 Lap, 13 Dam, 14 Calendar, 15 Adroitly, 19 Arrows, 20 Nippy, 21 Poppy, 22 Caddy.
2
Down
EASY PUZZLE
Across
1
3
A
Down 1 Offer as excuse (5) 2 All limitations removed (2,5,6) 3 A green vegetable (7) 4 Affirm to be true (6) 5 Removed by clipping (5) 6 A head of government (5,8) 7 Place of seclusion (7) 11 Confused fight (7) 13 Speak bombastically (7) 14 Angry (6) 16 Detest (5) 18 Before anything else (5)
2
1
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5
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7
8
9
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13
14
21
22
23
24
25
26
27
28
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30 31
32
33
3
K
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● Alternatively, for six Extra Letter clues text DXBEAT to 84901. Texts cost £1 plus you
KEIJO
4
1
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1
THE TRIBUNE
Tuesday, April 28, 2020, PAGE 13
BODY AND MIND
Families that exercise together build stronger bonds New challenge seeks to crown ‘Evolve Fitness Family’ By ALESHA CADET Tribune Features Writer acadet@tribunemedia.net
T
he team at Evolve Functional Fitness has put out a call for 20 or more families to participate in a new athome fitness challenge. With whole families stuck at home together during the ongoing lockdown, Evolve said there is no better time to engage in physical exercise as a unit and help each other stay fit and healthy. The goal is for people to put their phones down for 30 minutes each day, connect with one another as a family, express gratitude for things taken for granted, and recognise exercise is possible in surprising places. Calling the initiative the “Co Fit Challenge: Revamp You Family’s Health”, participants are eligible to win fun prizes and the title of “Evolve’s Fitness Family”. “We are a family fitness gym. We work with all ages, from newborns and their parents, to 109-year-olds,” said Tangerine Curry-Dinnick, Evolve’s owner. “Fitness should be fun, and a part of our regular routine.” Before the quarantine restrictions were put in place in response to the COVID-19 pandemic, Evolve was running a successful 42-day weight loss challenge for its members. During this challenge participants were guided by fitness, nutrition and accountability coaches along the way. In coming up with a challenge to offer during lockdown, Ms CurryDinnick said they wanted to keep in mind that not everyone has a scale or measuring tape at home. “When coming up with a challenge we could promote, we wanted to keep with what we are all about: family fitness. This challenge is about getting people moving and
encouraging everyone in their house to participate. You will find that you discover so much about each other while laughing and getting that heart rate up. We will also be making families aware of what they are grateful for in this time,” she said. Participating in a challenge like this, Ms Curry-Dinnick said, can also makepeople more aware of their eating habits and help themto plan better schedules and diets. “You will get your heart rate up at least once a day through fun 30-minute workouts, all while creating a fun bond with family members,”she said. “It’s important for people to move and stay active during this pandemic and this allows my coaches to continue doing what they love and get something for it. I am looking forward to seeing how creative (the families) get in completing the mini challenges. I look forward to building a community that is posting pictures of them having together-time. “Wanting to do something to help others helps keep me motivated. Trying my best to keep a workout schedule and daily schedule helps too.” She added: “Fitness becomes a lifestyle when you start feeling and seeing the results. If you enjoy it, you will stick with it. This is the best time to get started, because we all have some extra time on our hands and it’s in the privacy of your own home with the people you love doing it, too. Once you find the love, then it becomes your routine, either at home or in a gym space.” To sign up for the family fitness challenge, check out ‘evolvebahamas’ on the Facebook events page. The challenge will be held every two weeks.
EVOLVE Functional Fitness puts the emphasis on ‘family’
Personal trainer teams up with brewery company to promote at-home fitness By JEFFARAH GIBSON | Tribune Features Writer | jgibson@tribunemedia.net
PERSONAL trainer Keith K Jae Hinsey of Physique Total Fitness
THE gyms are closed, restrictions are placed on exercising outdoors, and the country will be under a nationwide lockdown until at least May 30. As a result, many are left to figure out creative ways to exercise at home. To assist Bahamians, Commonwealth Brewery Limited (CBL) has teamed up with a local fitness expert who will give people tips on how they can keep fit and stay active at home. CBL has launched a partnership with personal trainer Keith K Jae Hinsey of Physique Total Fitness, who will feature live workouts sponsored by Vitamalt on Instagram. Tips and
workouts will be posted by Mr Hinsey every Monday, Wednesday and Friday, 7am and 6.30pm. “The partnership with Vitamalt is the perfect addition to the Physique Total Fitness brand because it exposes my brand to a wider market,” said Mr Hinsey. “A good at-home workout tip: Try to aim for at least 30 minutes of a total body exercise daily or three times weekly. Stretching before and after a workout can reduce the risk of any fitness injuries.” Mr Hinsey also touted the benefits of Vitamalt. “Vitamalt is filled with vitamin B complex, minerals, nutrients and antioxidants. It can be consumed 30 minutes before or right after
your workout to boost energy levels,” he said. Another community service initiative by CBL and Vitamalt during the pandemic was the donation of beverages to healthcare workers who have been at the front line of the fight against the coronavirus. Approximately 830 cases of Vitamalt were distributed to the Public Hospital Authority’s various branches, including the Princess Margaret Hospital, the Rand Memorial Hospital and the Sandilands Rehabilitation Centre. “Healthcare workers must work harder and longer and, due to the nature of this crisis, are putting their own lives at risk. In some small way, our company wanted to give back, even if it is an energy boost to help get them through the
day. We want them to know that we are thinking about them and are very proud that they are ready and willing to care for us, no matter what,” said Arnette Ingraham, CBL’s employee experience and corporate communications manager. CBL, through its Vitamalt brand, has also made donations to charitable organisations in the country that provide food relief to those in need. “This crisis is affecting all of us and we’ll continue to help the people and communities that have supported us over the years,” said Ms Ingraham. Vitamalt is locally brewed from malted barley, hops, and contains B vitamins and caramel flavouring. It has been manufactured and sold in the Bahamas since 1987.
PAGE 14, Tuesday, April 28, 2020
THE TRIBUNE
Low testosterone Andropause, or male menopause, is a real health condition that thousands of Bahamian men, like their counterparts worldwide, often suffer unknowingly. The symptoms - low energy levels, fatigue, memory problems, cardiac and circulatory issues, lack of stamina, heat intolerance, loss of muscle mass, osteoporosis, depression, heat intolerance, irritability, and most importantly for most Bahamian men, erectile dysfunction - are often dismissed as an inevitable part of aging. Andropause affects an estimated ten million American men and those numbers can be extrapolated to our Bahamian society. There is usually a precipitous fall in testosterone in men from mid-forties and older. A sedentary lifestyle with decreased
activity, weight gain, increased stress levels and certain medications as well as intake of alcohol and cigarettes can hasten the fall in testosterone levels. Hormonal imbalances involving thyroid imbalance, high oestrogen levels, high or low cortisol, high DHT (dihydrotestosterone), low DHEA (dehydroepiandrosterone) and the mentioned low testosterone levels can also contribute to middle-aged men feeling like a shell of their former selves. Older men often experience an extreme heat intolerance, and even hot flashes like the middleaged women, and they may sweat profusely in a cold, air-conditioned room. Growing old is a blessing and inevitable, but men can age
gracefully without all the ill health effects of hormone imbalances and gradual fall in testosterone. Bahamian men require prostate specific antigen (PSA) blood testing as part of their annual physicals starting at age 40 years old as men of African ancestry often develop a more aggressive form of prostate cancer and at an earlier age. Checking testosterone levels should also become the norm once a man is in his mid to late forties.
Late onset hypogonadism, low testosterone Andropause management should include good nutrition, proper weight management, regular exercise, stopping smoking and
THE UROLOGY DOCTOR IS IN...
Dr Greggory Pinto reduces regular alcohol intake. Testosterone has an important role in protecting cardiac and circulatory function, brain cognition,
and bone density as well as the all important erectile function. Hormone testosterone replacement in multiple international long-term studies has been shown to be safe and with immense health benefits that will increase a man’s longevity and quality of life. A 2016 well-recognised medical study involving 755 middle-aged men with severe coronary artery disease found that those who received testosterone therapy had much better outcomes than those who did not receive testosterone therapy, who were almost 80 percent more likely to experience an adverse medical event. Thousands of middle age Bahamian men often mask the erectile symptoms of low testosterone by self prescribing themselves often unregulated sexual stimulants. Testosterone supplementation may take the form of a once monthly or twice a month injection, a transdermal patch or the application of a gel. Bahamian men, you now know that male menopause is a real heath entity that could potentially have devastating health complications and may significantly reduce not only the quality of one’s life but the longevity. Live a healthier and longer life and regain your sexual libido and stamina and erections. • Dr Greggory Pinto is a board certified Bahamian urologist and laparoscopic surgeon. He has trained in Germany, South Africa and France, and is a member of the European Association of Urology. He can be contacted at The Surgical Suite, Centreville Medical Centre, #68 Collins Avenue/Sixth Terrace; telephone: 326-1929.
Skin care during lockdown Kenya MortimerMckenzie
We are living during challenging times for the skin. Such times require unique and desperate measures. What can you do for your skin during isolation? Well, you need to be prepared to do some simple at-home measures to assist your skin. Many of us have been in lockdown for more than five weeks now and are past due for our regular grooming, whether it’s a haircut, hair colouring, a facial, manicure, pedicure, or even body sugaring or waxing services. There are some things we can manage to live without, but others we can’t. Our skin care happens to be one of those areas. Some of you are struggling with facial breakouts or excessive facial or body hair growth at this time. This can be quite disheartening, especially for women. Keeping up with grooming is now a major challenge. Here are some tips that can help you while you stay safe at home.
Waxing and sugaring Waxing requires little skill and can be done relatively easy at home with a little practice (see online instructional videos). If you are the adventurous type you may have already done this. You may be able to find a small at-home kit during this time in a large pharmacy to do your waxing. However, it’s not that simple with body sugaring, as it’s a more complicated technique that requires skillful training and practice to remove hair effectively. It’s can be difficult for most to put a razor or tweezer to their skin after waxing or sugaring. Unfortunately, at this time you don’t have much of a choice because your favourite sugaring technician or waxing lady is also in isolation. So the question remains, what can you do to maintain a level of sanity when it comes to your grooming? The one thing that you are told not to do in between your
Finding inspiration Last week I saw a post on Facebook from someone which said: “I don’t want to see any more motivational posts.” My response to that would have been: “I don’t want to see any more negative posts”, because I have never once found that kind of thinking to be helpful in any situation. Whilst some may be tired of the overload of responses intended to be helpful or motivating in these difficult weeks, surely it is healthier to receive positive feedback? As a public post, some words may strike a chord, others may not, but if it helps only one or two people, surely it’s been worth it. We need to make a positive choice not to let ourselves be overly frustrated or depressed by current difficulties. It doesn’t take a genius to decide which options are more helpful (no matter how hard the challenge) to continue to carry on with our lives as best we can until the pandemic is over. Because when things do reach the point of what we accept as mostly normal, then all our energies
Life lines
Victoria Sarne individually and collectively will be needed to get ourselves, our communities and our country back on its feet. It’s something we will all need to participate in - don’t assume it’s going to be someone else’s responsibility or
hair removal treatments you will need to reconsider. You have two options: you can either let the hair grow or you can shave it. For many women, shaving and tweezing are evil. So it would be like choosing between the lesser of two evils. Not a good position to be in, right? Shaving or trimming is recommended because it will cause less damage if you only do the very minimum, and only a few times. At this point it’s better than using a depilatory cream that is filled with harsh chemicals. The depilatory cream works similar to shaving by removing hair from the surface of the skin. Tweezing would interfere more with the hair growth cycle because you are plucking hair from the follicle, and that can conflict with the results from your waxing or shaving regimen. On the other hand, we have to be mindful of a necessary process when we remove hair, and especially when we switch methods
of hair removal. That process is exfoliation.
that the government alone will be able to provide the solution. Several years ago I made myself an ‘Inspiration Board’ which I hung on the wall next to my desk but which is now unfortunately temporarily irretrievable, languishing in a suitcase in another country. So now I will make another and maybe you could, too. Mine will be similar to the original. I have always kept a notebook of quotes (the oldfashioned kind when we all wrote with pen or pencil on paper and not on a screen) . It could be a few lines from a poem, a quote from a book or a famous person, maybe something inspiring, perhaps something funny, even a picture or a cartoon - but a mix to jog me into a better attitude if I am feeling down, lacking energy or creative ideas. Whatever it is, it should be idiosyncratic, meaning personal to you - something that strikes a chord, makes you smile, remember a happy occasion or maybe motivates you to take action of some kind. One of my favourites is from Lewis Carroll’s “Alice In Wonderland”, and it may seem silly to you but it’s imbued with real meaning for me and it reminds me to aim
for nothing less than my best self; the Cheshire Cat character says: “You used to be much muchier, you’ve lost your muchness.” American Robert Frost said: “In three words I can sum up what I have learned about life: it goes on.” And Writer Louis L’Amour once said: “There will be a time when you believe everything is finished, that will be the beginning.” My last quote to share is from Sir Winston Churchill: “We make a living by what we get, but we make a life by what we give.” There are so many ways, places and people from whom to draw inspiration, look around, even carefully constructed advertising slogans such as Nike’s “Just do it” obviously have meaning. Sometimes we are so used to hearing or seeing slogans we no longer give them much regard, but if you think about those words, they could inspire you to get up and do something you care about instead of sitting around and worrying. Heaven knows, like it or not, we all have time on our hands to think, dream, plan or just get started on a project of any kind: learning to cook, bake, exercise, learn a language, plant a garden... anything which involves physical
What is exfoliation? Exfoliation is the process of removing dead skin cells from the upper level of your skin to expose healthy, new cells. Exfoliation is very crucial at this time to keep the skin soft and smooth, and free from ingrown hairs. This is not the time to have painful ingrown hairs. But with a good exfoliating routine you can survive despite the circumstances. There are two main types of exfoliation: mechanical and chemical exfoliation. Mechanical exfoliation requires a physical movement using a tool like a brush, sponge or a scrub to remove dead skin cells. When using this form of exfoliation you have to be careful, be very gentle, especially when exfoliating the face. Some granules
can be abrasive and can cut the skin, so do a patch test first and ensure that the granules are smooth enough. Examples of exfoliants you can use for the body are ground brown sugar, ground sea salt, coffee grounds, and oatmeal. However, more gentle granules would be more beneficial for the face, such as baking soda or very finely ground oatmeal. You can add any of the following ingredients to your exfoliants: honey, coconut oil, jojoba oil, olive oil, and other essential oils Chemical exfoliation on the other hand is more effective. It involves the use of acids to gently remove dead skin cells. An example of a chemical exfoliant that you may have access to at this time would be apple cider vinegar, but it should be diluted for safety. Exfoliate your face at least one to two times a week for good results and your body two to three times a week. Exfoliation is most important at this time to keep your skin smooth a soft. • Kenya Mortimer-McKenzie is an anti-aging skin care specialist at the Baha Retreat Anti-Aging Spa. Visit www.baharetreat.com or e-mail kenya@baharetreat. com. or mental activity will help keep our minds active leaving less room for negativity. Tempting as it is to sit around and binge-watch movies (I’m guilty), or a sports programme, or gaming if that’s your thing, it isn’t the solution but it can be your reward for a day well spent whether caring for your family or working from home. There is no easy Pollyanna way out of the present situation and some of us may become ill or have loved ones who are but now more than ever is the time to be strong and to keep looking forward even if we can’t see the end in sight because all individual actions count, no matter how insignificant they may seem, and they do make a difference. Remember: “We’re all walking each other back home.” (Ram Dass). • Victoria Sarne is an entrepreneur and writer. She headed a team to establish a shelter for abused women and children in Canada and was its first chairwoman. You can reach her at victoria.conversations@gmail. com, visit www.lifelineswritingservice.com or call 467-1178.
THE TRIBUNE
Tuesday, April 28, 2020, PAGE 15
THE WEATHER REPORT
5-Day Forecast
TODAY
ORLANDO
High: 82° F/28° C Low: 63° F/17° C
TAMPA
TONIGHT
WEDNESDAY
THURSDAY
FRIDAY
SATURDAY
Partly sunny, breezy and less humid
Partly cloudy
Partly sunny with a shower or two
Clouds and sun, a t‑storm in spots
A couple of showers and a t‑storm
Mostly sunny
High: 84°
Low: 73°
High: 85° Low: 73°
High: 86° Low: 74°
High: 87° Low: 73°
High: 85° Low: 72°
AccuWeather RealFeel
AccuWeather RealFeel
AccuWeather RealFeel
AccuWeather RealFeel
AccuWeather RealFeel
AccuWeather RealFeel
87° F
74° F
91°-76° F
93°-78° F
97°-79° F
94°-73° F
High: 84° F/29° C Low: 67° F/19° C
N
almanac
E
ABACO
S
N
High: 76° F/24° C Low: 73° F/23° C
8‑16 knots
S
High: 81° F/27° C Low: 72° F/22° C
8‑16 knots
FT. LAUDERDALE
FREEPORT
High: 82° F/28° C Low: 74° F/23° C
E
W S
E
W
WEST PALM BEACH
N
The higher the AccuWeather UV IndexTM number, the greater the need for eye and skin protection.
The exclusive AccuWeather RealFeel Temperature® is an index that combines the effects of temperature, wind, humidity, sunshine intensity, cloudiness, precipitation, pressure and elevation on the human body—everything that affects how warm or cold a person feels. Temperatures reflect the high and the low for the day.
W
High: 82° F/28° C Low: 70° F/21° C
MIAMI
High: 84° F/29° C Low: 73° F/23° C
7‑14 knots
Statistics are for Nassau through 2 p.m. yesterday Temperature High ................................................... 86° F/30° C Low .................................................... 73° F/23° C Normal high ....................................... 82° F/28° C Normal low ........................................ 70° F/21° C Last year’s high ................................. 88° F/31° C Last year’s low ................................... 73° F/23° C Precipitation As of 2 p.m. yesterday ................................. 0.01” Year to date ................................................. 5.98” Normal year to date ..................................... 6.12”
ELEUTHERA
Forecasts and graphics provided by AccuWeather, Inc. ©2020
High: 79° F/26° C Low: 75° F/24° C
NASSAU
High: 84° F/29° C Low: 73° F/23° C N
KEY WEST
High: 84° F/29° C Low: 75° F/24° C
High: 80° F/27° C Low: 75° F/24° C
N
S
E
W
8‑16 knots
S
Low
Ht.(ft.)
12:09 p.m. ‑‑‑‑‑
High
2.1 ‑‑‑‑‑
6:22 a.m. 6:10 p.m.
0.3 0.2
Wednesday 12:39 a.m. 1:03 p.m.
2.7 2.0
7:14 a.m. 7:06 p.m.
0.4 0.3
Thursday
1:35 a.m. 2:05 p.m.
2.7 2.1
8:11 a.m. 8:10 p.m.
0.4 0.3
Friday
2:36 a.m. 3:11 p.m.
2.7 2.3
9:12 a.m. 9:19 p.m.
0.3 0.3
Saturday
3:39 a.m. 4:16 p.m.
2.8 2.5
10:11 a.m. 0.1 10:28 p.m. 0.1
Sunday
4:41 a.m. 5:17 p.m.
2.8 2.8
11:07 a.m. ‑0.1 11:32 p.m. ‑0.1
Monday
5:39 a.m. 6:13 p.m.
2.9 3.1
12:00 p.m. ‑0.4 ‑‑‑‑‑ ‑‑‑‑‑
Today
Ht.(ft.)
sun anD moon Sunrise Sunset
6:36 a.m. 7:39 p.m.
Moonrise Moonset
10:44 a.m. none
First
Full
Last
New
Apr. 30
May 7
May 14
May 22
SAN SALVADOR
GREAT EXUMA
High: 80° F/27° C Low: 75° F/24° C
High: 82° F/28° C Low: 76° F/24° C
8‑16 knots
ANDROS
Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.
tiDes For nassau
CAT ISLAND
E
W
uV inDex toDay
N
High: 81° F/27° C Low: 77° F/25° C
E
W S
LONG ISLAND
tracking map
High: 82° F/28° C Low: 76° F/24° C
8‑16 knots
MAYAGUANA High: 84° F/29° C Low: 76° F/24° C
Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.
CROOKED ISLAND / ACKLINS RAGGED ISLAND High: 82° F/28° C Low: 77° F/25° C
H
GREAT INAGUA High: 85° F/29° C Low: 78° F/26° C
N
N E
W
E
W
H
High: 82° F/28° C Low: 76° F/24° C
S
S
7‑14 knots
7‑14 knots
marine Forecast ABACO ANDROS CAT ISLAND CROOKED ISLAND ELEUTHERA FREEPORT GREAT EXUMA GREAT INAGUA LONG ISLAND MAYAGUANA NASSAU RAGGED ISLAND SAN SALVADOR
Today: Wednesday: Today: Wednesday: Today: Wednesday: Today: Wednesday: Today: Wednesday: Today: Wednesday: Today: Wednesday: Today: Wednesday: Today: Wednesday: Today: Wednesday: Today: Wednesday: Today: Wednesday: Today: Wednesday:
WINDS NE at 8‑16 Knots ESE at 8‑16 Knots NE at 8‑16 Knots ESE at 7‑14 Knots NE at 8‑16 Knots E at 8‑16 Knots E at 7‑14 Knots E at 7‑14 Knots NE at 8‑16 Knots E at 8‑16 Knots ENE at 8‑16 Knots ESE at 7‑14 Knots NE at 8‑16 Knots E at 7‑14 Knots NE at 7‑14 Knots E at 8‑16 Knots E at 6‑12 Knots E at 7‑14 Knots E at 6‑12 Knots ESE at 7‑14 Knots NE at 8‑16 Knots E at 7‑14 Knots E at 7‑14 Knots E at 8‑16 Knots NE at 8‑16 Knots E at 8‑16 Knots
WAVES 4‑7 Feet 4‑7 Feet 2‑4 Feet 1‑3 Feet 3‑6 Feet 3‑6 Feet 1‑3 Feet 2‑4 Feet 3‑6 Feet 4‑7 Feet 3‑5 Feet 2‑4 Feet 1‑3 Feet 1‑3 Feet 1‑3 Feet 2‑4 Feet 1‑3 Feet 1‑3 Feet 3‑5 Feet 4‑7 Feet 1‑3 Feet 1‑3 Feet 1‑3 Feet 2‑4 Feet 2‑4 Feet 2‑4 Feet
To advertise ALL your LEGAL NOTICES, call The Tribune’s Sales Department
502-2394
VISIBILITY 10 Miles 10 Miles 10 Miles 10 Miles 6 Miles 6 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 6 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles
WATER TEMPS. 79° F 78° F 83° F 82° F 81° F 80° F 82° F 82° F 80° F 81° F 79° F 79° F 82° F 82° F 82° F 82° F 82° F 81° F 82° F 82° F 81° F 80° F 81° F 81° F 81° F 80° F
SECTION B
TUESDAY, APRIL 28, 2020
Mothers and single women learn harsh financial lessons during lockdown
seasons. But never did we think the hotels would close completely. This is crazy; we are struggling,” she said. “I am learning to shop smarter for my family; I am using stamps. I am buying my meat wholesale, which works out to be cheaper. We used to have fast food at least three or four times a week; now it is just a sporadic treat. We are talking with the bank about deferring our mortgage payment. When our savings are exhausted, who knows what will happen. Thankfully, we have the union, NIB and the help of family and friends so we know somehow we will be able to feed our kids. We just are trying to stay afloat as best we can until things open back up.
“I think my COVID-19 lesson will be the value of a side hustle and the value of saving. A twomonth emergency fund is nothing. I really don’t want to ever be in this kind of position again, so we will be trying to figure out how to get extra income we can rely on when the hotel industry has another low season and how to save more if we make more in a high season.” Litheria, a 25-year-old beautician with a three-year-old son, is also feeling the sting of the economic shutdown, and quite severely at that. “Not too many people are getting their hair done now and as a self-employed person I am shamed to say I didn’t do what I needed to do to be able to get assistance. I am living day by day; once my baby eats I feel better,” she said. “I am just getting groceries however I can. This church is giving today, that organisation is giving tomorrow, and adding to that the lil’ bit of money that I have been able to make. It is rough. My landlord has been as understanding as can be. I plaited her hair, her mother’s hair and her kids hair because I was short the March rent. April...I don’t know what I am going to do. I guess the lesson is that as a self-employed person I have to get myself together. I need to make sure I’m doing what I need to do to be straight. I need to get my finances together, maybe talk to someone who could help me budget and learn to save and stuff. You know what it is to look at your baby and not know if you can feed him tomorrow? I don’t want feel like this ever again.”
am also a believer and I combine my faith with my business and encourage others to do the same. I am an advocate for buying Bahamian and seeing Bahamians operate in a world-class manner. I believe you can be small but still play big.” Before the nationwide lockdown, Chelsea said she had planned to host a few in-person classes to impart her knowledge of business. But the coronavirus changed all that. “I postponed the classes. And when things really went into lockdown, I was like, ‘OK, mama, it’s time to shift gears. Get going on what you always wanted to do.’ For me, that was to get things online - DMs, text messages, WhatsApp calls, you name it. Persons always see me as a resource or the go-to. And I am not scared to share information. If I see a way you can improve on something, I am not scared to give suggestions, even if you ask me or not. So when I started this series, I just wanted to share common challenges and solutions to these challenges we all face as creative entrepreneurs. Day one, we went from 157 viewers all the way up to 1,000 plus tuning in. No makeup, no fancy set, just me sharing my war stories. The feedback was beyond what I expected. And that was what was so amazing about it. So, I am gearing up for round two,” said Chelsea. One of the main tips she shared during the first edition ofthe “Learning With Chelsea” series
was for business owners not to stop their marketing during this time of quarantine. “Go into overdrive now; get your employees on board and ask them their ideas, as this is a team effort. Get old-fashion and start using flyers and traditional means of advertising to get back to the basics; start to use video marketing to help in advertising. Ask your customers to share your products and services on their social media pages; collaborate,” she said. “As the weeks continue, I want to virtually bring in more of my professional friends who are experts in their fields from around Europe, the United States and locally, to talk about topics surrounding branding, marketing, sales and doing business internationally. Digitally, I also will be releasing more e-products like books and e-courses, and DIY kits for businesses. I will also be releasing my marketplace platform geared towards connecting Caribbean-made products and buyers from around the world. So that’s pretty exciting. Business can be a challenge at times, trust me. Lord, it’s full of curves and bumps in the road. It’s amazing that the challenges and victories I have had along the way are now helping other creatives to be motivated and inspired.” To keep up with Chelsea and her series of talks, visit www.tcbstrategist.com or ‘The Creative Business Strategist’ on Facebook.
By CARA HUNT Tribune Features Writer cbrennen@tribunemedia.net
T
he COVID-19 pandemic has affected just about every individual in the world to varying degrees when it comes to finances. While some people still have a job and receive a paycheque, others are finding it a challenge to survive. This week, Tribune Woman talked to three women who candidly discussed how the current pandemic has affected their finances and the lessons they’ve learned during this time of economic uncertainty. Jayleen, a single 33-year-old woman in the financial industry, said thankfully she can work from home and receive her full salary. “I know that I am very blessed in that the only challenge I have is obviously cabin fever and missing the outside world. I have still been able to pay my bills and my mortgage, and so financially this has not been as challenging as I know it has been for a lot of other people. For me, the big lesson I learned is just how much money I spend on my personal maintenance and social activity,” she said. “After paying my March bills I noticed that I had a significant amount of money left over. And then it hit me that the extra money is what I would usually spend going to the hairdresser every week, getting nails and lashes and facials, going shopping, having brunch and a girls’ night
out. I have to admit, it was hundreds of dollars.” Jayleen decided to make use of the extra funds to pay on her credit card bill. “I realised that this was the perfect time to knock out some of my debt. I have an account that I used for savings and I also added some money to that. So my COVID-19 lesson will be to look at how I can still look the way I want and go out, but on a budget, because it is just way too much money that I was spending and not even realising it,” she said. Meanwhile, Christine, a married 35-year-old hotel worker with three children, finds herself in a very different boat. She said her family has exhausted their savings to keep their heads above water.
“You know what it is to look at your baby and not know if you can feed him tomorrow? I don’t want feel like this ever again.” “My husband and I had good hotel jobs and we made enough for a nice life. We even had some savings, because tourism is always an industry with low and high
Chelsea to the rescue! ‘The Creative Business Strategist’ helps Bahamians launch new ventures during quarantine By ALESHA CADET Tribune Features Writer acadet@tribunemedia.net
For seven days straight, local business strategist Chelsea Johnson invited people “to pick her brain” and tune into a live Facebook stream to learn about valuable tips, tools and resources to help them grow their craft or business venture even during the current quarantine. The single mother of a 14-yearold said Bahamians responded so enthusiastically to her “Learning with Chelsea” series that she is planning another round of talks. Those participating during the first instalment, she said, proved to her and themselves that launching new brands and companies is possible during lockdown.
BUSINESS strategist Chelsea Johnson As the founder of the coaching and consulting brand The Creative Business Strategist, Chelsea is no stranger to assisting others in getting their dreams off the ground. Over the years, she told Tribune Woman, she discovered that sometimes all people need is a proper sounding board and another perspective to help them get going.
“I am a jewellery designer and manufacturer by trade; one of my many gifts is generating solutions to problems as well. I used my nine years of business experience along with my gifts and industry knowledge and turned it into a consulting company,” she said. “I wanted to help other business owners and those aspiring to to get started on the right foot...I