DSB | Annual Report 2012

Transcription

Julianastraat 56
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Involved
Involved, this corporate value reflects our deep and geniune interest in our society, nature and environment.
We are rooted in Suriname society and want to make a contribution in our own way.
Suriname boasts a wealth of architectural heritage; a heritage we want to preserve for ourselves and future
generations. To give constructive shape to this aspiration, De Surinaamsche Bank, together with Stichting
Gebouwd Erfgoed Suriname and Stadsherstel Amsterdam N.V., has taken the initiative to set up Stichting
Stadsherstel Paramaribo.
Stichting Stadsherstel Paramaribo has set itself the objective of preserving Suriname's architectural heritage
wherever possible and of safeguarding and expanding the social significance of that heritage for the benefit
of both present and future generations in Suriname. The protection of Suriname's heritage is crucial to preserve the history of Suriname and also creates a sourceof income for our future in view of the added value
of conservation. Heritage is interesting for visitors and atracts tourists. This recreational value offers many
benefits for Suriname society, not least in the form of spin-offs to various economic sectors and particularly
the tourism sector. A further consideration is the importance of handing on our heritage to the next generations so that they know how their parents, grandparents and more distant forefathers lived; the universal
and timeless value of passing on our heritage is also expressed in the fact that Paramaribo has been placed
on the unesco world heritage list. Finally, our architectural heritage with its unique historical features
serves to enhance and embellish life in Suriname.
Stichting Stadsherstel Paramaribo received financial support from various Suriname companies, including De
Surinaamsche Bank N.V., Assuria Beleggingsmaatschappij N.V., Hakrinbank n.v., De Surinaamsche Assurantie
Maatschappij N.V. 'Self Reliance', Suriname Yellow Pages N.V., Sosu N.V. and Beyrouth Bazaar N.V. as well as
technical support from stadsherstel Amsterdam N.V.
The first building purchased under this initiative is huize L.H.J. Berkenveld; a timber house built in 1922 and
situated on Julianastraat 56, Paramaribo, see pages 56 and 57, which has preserved its unique character
througout the years.
To safeguard the continiuty of the initiative, the ppurchased properties will be renovated while retaining
their historical character and rented out in the commercial market. Within the foreseeable future a public
limited company, named Stadsherstel Paramaribo N.V., will be incorporated to take over the activities from
the foundation.
Plantation Peperpot
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Contents
Vision, Mission en Corporate Values
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Powers of signature
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Organisational chart
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Report of the Supervisory Board
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Five-year consolidated key figures
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Report of the Managing Board
Macro-economic review
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Exchange rates
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The bank's operations
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Financial statement 2012
Company balance sheet before profit appropriation as at 31 december 2012
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Company balance sheet after profit appropriation as at 31 December 2012
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Company profit and loss account for the year 2012
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Consolidated balance sheet before profit appropriation as at 31 December 2012
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Consolidated balance sheet after profit appropriation as at 31 December 2012
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Consolidated profit and loss account for the year 2012
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Notes to the financial statements 2012
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Assets, company and consolidated balance sheet after profit appropriation
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Liabilities, company and consolidated balance sheet after profit appropriation
60
Company and consolidated profit and loss account
61
Other information
Consolidated cash flow statement for 2012
63
Independent auditors' report
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Addresses
66
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Plantation Peperpot
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DSB | Vision
De Surinaamsche Bank is the best bank for Suriname.
DSB | Mission
With deep roots in the Surinamese community, De Surinaamsche Bank is a customer-focused bank that offers the best financial services to consumers, businesses, institutions and government bodies. This customer
focus derives from our core values and is proudly exhibited by our dedicated staff. In all our activities, we
seek to add value to Surinamese society in general and to our customers, employees and shareholders in
particular.
DSB | Corporate Values
Involvement
Being involved means taking a genuine interest. Caring about what is happening. Being rooted in and part
of the Surinamese community and identifying with the lives of the people around you. Being an active family member, involved with colleagues, customers and the community, caring about nature and the environment. Involvement implies being integrated with your surroundings, both within the bank and beyond
it. That results in respect, trust and team spirit. The things that you have in common are made apparent,
and you always take an interest in the welfare of others.
Ambition
Challenge provides the incentive and desire to grow, as a bank and as a person. Feeling motivated to try
and make a difference to others. Building on your existing strengths leads to professionalism. Setting
trends by always looking for innovative solutions. Every enquiry from a colleague or customer is translated
into innovative ideas. Being ambitious is about making things happen and acting decisively. About being
energetic and sharing your energy with a dynamic team. Ambition means always pursuing the best solutions within the bank and in the market.
Integrity
Integrity begins with sincerity and honest conduct. Doing the right thing, not because you have to, but
because that’s the way you are. Showing respect for each other, for truth and justice. Always being open.
Reliably adhering to clear, unequivocal and visible standards and values. Distancing yourself from prejudice
and unfairness. Integrity implies demonstrating respect for and acting in accordance with laws and regulations. It also means doing what you say.
Professionalism
The ability to approach issues from all perspectives. Listening and putting oneself in other people’s position
as a basis for balanced decision-making. Looking ahead and appreciating what may happen. Acknowledging your own limitations and expressing yourself respectfully. Keeping calm and explaining what is possible and what is not. Professionals are networkers who can identify and develop sources of support. Not
for their personal benefit, but to aid the team, the customer and the community. Being professional also
means showing integrity towards colleagues and customers.
Quality awareness
You know what standards your work must meet and you conduct yourself accordingly. You consider how
quality can be improved, for example by picking up signals from customers and colleagues. Quality awareness finds expression in speed and accuracy. Establishing and recognising what is wanted, expected and
really needed to ensure customer satisfaction. Listening and picking up on what others say. Appreciating
that bespoke services translate into satisfied customers. In dealings with colleagues, quality awareness
implies doing things properly straight away. Understanding that you are part of the process of optimal service provision. Being alert in your thinking and action, reviewing the neatness, accuracy and speed of your
work.
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DSB | Power of signature 1)
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Amatnoerngalim U.S. Ms
Amatsoemarto A.S. Ms
Atmidi-Djasmadie E.S. Ms
Bakboord-Satimin P.R. Ms
Bel P.M.
Bendt G.E.
Berenos-Bishesar S. Ms
Bergraaf-Tan A Kiam M.B. Ms
Bhagwandin P.A.
Bhola-Raghoebarsing A. Ms
Blount J. Ms
Brussel van J.
Chang-Sim A Sjoei I.G. Ms
Colli S.M.
Debs Y. Ms
Diepenbos van S. Ms
Djajadi P.
Edam-Morsen S.A. Ms
Elshot M.H.G. Ms
Flu-Blom, N. Ms
Fung A Loi L.
Ghisaidoobe A.
Gordon-Dover C.A.M. Ms
Heerenveen P.I. Ms
Helstone S.H.
Henar H.L.
Hijlaard I.
Hijlaard-Chin D.S. Ms
Kaliar R.A.
Kalipersad M.
Kallan N.F.A.
Karimbux J.
Kartopawiro-Arsomedjo S. Ms
Kartomoehamat-Amatdjimirin F.M. Ms
Kartoredjo C. Ms
Kasnawi-Kasanpawiro W.F. Ms
Kasto-Notopawiro S. Ms
Kertodikromo M.L. Ms
Ketwaru-Boedhoe U. Ms
Kom de J.M. Ms
Senior Customer Representative
Section Head Processing Contract Handling
Customer Representative
Senior Relationship Manager
Branch Manager Moengo
Customer Representative Nickerie
Branch Manager Kwatta
Department Manager Compliance
Department Manager Suritrust
Branch Manager Kasabaholo
Section Head Insurance
Section Head Salary Administration & Compensation
Department Manager Marketing
Sector Head Transfers
Branch Manager Nieuwe Haven
Branch Manager Bankshop Hermitage mall
Branch Manager Lelydorp
Custody Employee
Section Head Card Services
Department Manager Contract Handling
Chief Commercial Officer
Section Head Support & Services-ICT
Section Head Customer Desk Retail Banking
Branch Manager Nickerie
Senior Relationship Manager Nickerie
Section Head Foreign Transfer
Relationship Manager
Department Manager Corporate Banking
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Koosman M.M.S.
Li Fo Sjoe-Lion Sjin Tjoe A. Ms.
Lie Tjauw J. H.
Lie-Ten S.C. Ms
Lo Fo Wong G.H. Ms
Loor M.P.
Mahindre Singh J.M.M. Ms
Marjanom-Tjokrosentono J. Ms
Martodimedjo E.M.
Mentowidjojo V.N. Ms
Moerasim A.S. Ms
Oostburg A.C.M.
Pawiroredjo-Tjon A Pauw G.A. Ms
Peneux M.S.A. Ms
Persad-Mohan S.L. Ms
Proeve S.L.J.
Pultoo D.M.
Ramnath H.S.
Redmount-Perk H.C. Ms
Reigman-Lieveld R.T. Ms
Rellum H.A.J. Ms
Rosheuvel R.G.J.
Setrokarijo W. Ms
Sewberath Misser H.H.
Sodirijo-Lalji M.J. Ms
Soesman-Blinker M.M. Ms
Soesman-Chelius K.B. Ms
Stolk G.M. Ms
Sylvester H.W.
Tan A Kiam M.E. Ms
Tijndaal M.R.
Vaseur K.C.A. Ms
Veira-Klosteren B. Ms
Waidoe W.
Waterval-Benjamin, D. Ms
Wiroredjo D.I. Ms
Wolff A.E.
Wong Chung I.H.
Wouden E.
Section Head Treasury
Legal Officer
Chief Operating Officer
Assistant Treasurer
Chief Financial Officer
Branch Manager
Insurance Employee
Department Manager Retail Banking
Department Manager Payments & Settlements
Human Resources Officer
Relationship Manager
Chief Executive Officer, CEO
Department Manager General Affairs
Branch Manager Ma Retraite
Department Manager Human Resources
Head Teller Front Office
Relationship Manager Nickerie
Section Head Cash Retail Banking
Department Manager Financial Restructuring & Recovery
Section Head Bills
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1) Situation as at 22 March 2013
A = General power of signature
B = Limited power of signature
C = Limited power of signature for specific products
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DSB | Managementteam
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DSB | Organisational chart 1)
Supervisory Board
S. Smit, chairman
J.J. Healy Jr.
M.J.A. Brahim
Mrs. R. Sohansingh
D.M.R. Currie
R. Blufpand
Chief Executive Officer
S.L.J. Proeve (A)
Human Resources
Internal Audit
Mrs K.C.A. Vaseur (A)
A.C. Martopawiro
Legal Affairs & Compliance
Secretariat
P.A. Bhagwandin CAMS (A)
Mrs S. Boetius
Branch Nieuw Nickerie
Suritrust
R. Kaliar (A)
Mrs A. Bhola - Raghoebarsingh MBA (A)
Chief Financial Officer
Chief Operating Officer
Chief Commercial Officer
M.P. Loor MA (A)
J.H. Lie-Tjauw MBA (A)
H.L. Henar (A)
Accounting & Reporting
Contract Handling
Mrs W. Slagveer-Ramautarsing2) MBA
Mrs P. I. Heerenveen MBA (A)
Corporate Banking
Mrs U. Ketwaru - Boedhoe MBA (A)
Risk Management
Payments & Settlements
Retail Banking
A.A. Sabiran B.Sc.
Mrs G.A. Pawiroredjo - Tjon A Pauw (A)
A.C.M. Oostburg (A)
General Affairs
ICT
Mrs. H.A.J. Rellum (A)
J. Chen Poun Joe
Treasury
Mrs G.H. Lo Fo Wong2) (B)
Marketing
Mrs S. van Diepenbos B.HA (B)
Financial Restructuring
& Recovery
I. H. Wong Chung MBA (A)
2) Presently in charge of the department.
A= General power of signature
B= Limited power of signature
11
DSB | Supervisory Board
J.J. Healy Jr.
12
Mrs R. Sohansingh
S. Smit, chairman
R. Blufpand
D.M.R. Currie
M.J.A. Brahim
DSB | Report of the Supervisory Board
General
Corporate Governance
Within the framework of sound Corporate Governance, a company is defined as a long-term partnership between the most important management and supervisory bodies. At DSB these bodies consist of
the Managing Board, the Supervisory Board and the General Meeting of Shareholders. The Managing
Board is tasked with safeguarding the continuity of the company within the frameworks of the interests
of the bank’s shareholders, customers and other stakeholders. The fulfilment of this task is supervised
by the Supervisory Board. In the opinion of the Supervisory Board, a sound governance structure results
in efficient and effective decision making which adds value for the shareholders, while simultaneously
ensuring that DSB is able to preserve its culture of integrity, transparency and trust in the interests of
the various stakeholders and, in particular, its customers.
In 2011 the Managing Board and the Supervisory Board started up a project with the support of BDO
consultants. The project comprised the development and effectuation of a Corporate Governance
Code for DSB. The Code contains principles and best practice provisions that regulate the relationships
between the Managing Board, the Supervisory Board and the Shareholders.
In 2012 the initial Corporate Governance Code was further tightened up and the best practice provisions
were expanded in substance and detail. The resulting sound corporate governance principles have now
been largely adopted as definite. These principles relate to:
I.
II.
III.
IV.
V.
Compliance with and enforcement of the code
This comprises principles relating to the assurance of compliance and enforcement,
The Managing Board
This comprises principles relating to, among other things, duties and practices of the members
of the Managing Board as well as dealing with any conflicts of interests concerning members of
the Managing Board,
The Supervisory Board
This comprises principles relating to, among other things, the duties and practices of the
members of the Supervisory Board, the composition and role of its committees and dealing
with any conflicts of interest concerning the members of the Managing Board,
The General Meeting of Shareholders
This comprises principles relating to, among other things, the powers of and the provision of
information to shareholders,
The audit of the financial reporting, the position and functioning of both the internal audit
function and that of the external auditor, and disclosure and transparency
In 2012 we also started with the development of a monitoring and evaluation system that is capable
not only of demonstrating the design and actual existence of Corporate Governance, but also of determining the effectiveness and efficiency of the Corporate Governance structure. The ‘3 Lines of Defence’
model is the internationally accepted standard model used by modern organisations for the management of uncertainties and the prevention of unnecessary risks. The monitoring and evaluation system
will be closely aligned and brought into accordance with the manner in which DSB has embedded the
‘3 Lines of Defence’ within its organisation.
As planned, the monitoring and evaluation system will be further developed and implemented and the
Corporate Governance Code of DSB will be approved and published in 2013. To this end, the involvement of diverse departments, including Legal and Compliance and Risk Management, in the monitoring
of the operation of the Code as well as the related assessment by the Internal Audit Department and
the external auditor will be worked out in more detail and adopted. These efforts will result in the full
implementation, acceptance and assurance of the effective operation of the Corporate Governance Code
and Governance structure.
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Consultation and decision-making
The Supervisory Board held twelve meetings in 2012. Topics regularly discussed in these meetings were
the financial and credit reports, the sector limits, the non-accrual receivables, solvency and funding.
Other matters that came up for discussion were safety and security, the auditor’s management letter, legal & compliance, enterprise risk management and the IT audit. Special attention was devoted
to Corporate Governance. In the Supervisory Board meeting on 6 December 2012, the business plans for
2013 were presented by the Managing Board and the Supervisory Board approved the capital expenditure for 2013.
The remuneration of the Managing Board was evaluated and on 17 August 2012 the Chairman of the
Supervisory Board awarded an inflation adjustment.
Towards the end of 2012 a Remuneration and Appointment Committee was set up consisting of the
members S. Smit and R. Sohansing. This committee will commence its activities in 2013.
Audit Committee
The Audit Committee of the Supervisory Board consists of M.J.A. Brahim, chairman, and J.J. Healy Jr.,
member. The Chief Executive Officer and the Department Manager (DM) Internal Audit take part in the
meetings of the Audit Committee, where the DM Internal Audit operates as secretary and takes the minutes of the meetings.
The Audit Committee meets at least once every quarter to discuss diverse topics including: Risk Management, Internal Controls, Compliance, Asset Management, IT Governance & Controls, Enterprisewide Risk Management, and the year plans of the Internal Audit, Risk Management and Legal & Compliance Departments.
The audit reports of the Internal Audit Department were dealt with and the staffing of the audit departments was specifically assessed.
A renewed IT Audit was carried out in November 2012; the report of the external IT auditors was also
discussed within the Audit Committee. The Supervisory Board attended a presentation of the external IT
auditor about Enterprise-wide Risk Management.
On 15 February 2012 consultation took place with the external auditor about issues arising from the 2011
audit; the 2012 audit was discussed with them on 11 February 2013.
Functioning of the Supervisory Board and the Managing Board
The supervisory board meetings were well attended and the members of the Supervisory Board actively
participated in the decision-making process.
The Supervisory Board is satisfied with its functioning and that of the Managing Board.
December 2011 saw the adoption of the 2012-2016 Multiyear Plan, which sets out the strategic objectives
for the 2012-2016 period. These are:
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The risks are managed at various levels within the bank. The Managing Board has set itself the task of
formulating and, after the approval of the Supervisory Board, implementing the enterprise-wide risk
management policy with a view to improving the existing management structure.
Dividendpolicy
The company’s policy is to pay out a dividend amounting to approximately 35% of net profit. This enables the company to use the retained profits to maintain the bank’s risk capital at a level that should
allow the bank to meet demand for lending in a growing economy in a responsible manner.
The dividend is determined, taking account of the need to maintain the bank’s risk capital at a level
that should allow the bank to meet demand for lending in a growing economy in a responsible manner
(BIS ratio). The Bank aims for a BIS ratio of at least 10%. At the end of December 2012 the BIS ratio was
10.31%.
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Financial statements and proposal for profit appropriation
In accordance with the provisions of article 22 of the Articles of Association, we are privileged to inform
you as follows in relation to the 2012 financial statements of De Surinaamsche Bank N.V.
The company and consolidated balance sheets as at 31 December 2012, the company and consolidated
profit and loss accounts for 2012, and the consolidated cash flow statement, together with the accompanying notes, have been audited at our request. We recommend that you adopt these financial
statements as presented for your consideration by the management of the company together with the
accompanying independent auditors’ report by BDO Assurance N.V. Approval of these financial statements will serve to discharge the members of the Managing Board for their management of the company’s affairs and the members of the Supervisory Board for their supervision thereof.
The consolidated pre-tax profit was SRD 61,053,816. After deduction of taxes amounting to SRD
22,150,884, the profit available for appropriation was SRD 38,902,932. On approval of the financial
statements and approval of the proposed profit appropriation as incorporated therein, a cash dividend
of SRD 13,923,359 or SRD 1.60 per share of SRD 0.10 will be distributed for the 2012 financial year. Part of
the cash dividend, namely SRD 0.68 per share was made available for payment as interim dividend on
28 August 2012. This means that a final dividend of SRD 0.92 per share will be distributed in cash.
The remaining net profit totalling SRD 24,979,573 will be added to the reserves. We concur with these
proposals by the Managing Board and recommend their approval by the Meeting.
Appointments
Messrs M.J.A. Brahim and D.M.R. Currie are due to step down by rotation in accordance with the retirement rota drawn up by the Supervisory Board pursuant to Article 17 of the Articles of Association. We
propose that the retiring Supervisory Board members, who are offering themselves for re-election, be
reappointed.
Remuneration of the Supervisory Board
The General Meeting of Shareholders determines the remuneration of the Supervisory Board. This remuneration is SRD 102,383 per year and was last adopted on 29 March 2012.
Expression of thanks
We thank the Managing Board and all other members of staff for their hard work and dedication in the
financial year.
Paramaribo, 22 March 2013
Supervisory Board
S. Smit, chairman
J.J. Healy Jr.
M.J.A. Brahim
Ms R. Sohansingh
D.M.R. Currie
R. Blufpand
15
DSB | Five-year consolidated key figures
(in SRD thousands except per share data and employees)
2012
2011
2010
130,126
111,051
33,326
2009
2008
89,120
68,531
70,086
26,977
26,486
24,726
Results
Net interest income
Other income
37,617
Total income
167,743
95,017
94,812
90,639
144,377
76,847
116,097
Operating expenses
62,610
56,009
52,519
Provision for loan losses
16,050
12,551
10,875
7,682
6,460
Operating profit before taxes
61,054
54,979
42,612
31,326
35,833
Net profit after taxation
38,903
35,713
27,414
20,904
22,734
Dividend
13,923
12,530
9,572
8,006
8,006
536,654
840,774
383,891
708,131
377,069
612,348
319,064
653,822
133,832
467,429
Other liabilities
1,493,344
279,282
218,696
43,905
2,741,311
146,142
1,214,286
235,575
180,148
61,757
2,201,034
98,944
935,770
190,603
150,111
35,323
1,835,864
94,492
838,313
135,599
125,395
58,987
1,692,376
70,040
721,359
129,283
111,015
15,174
1,256,679
69,035
Balance sheet total
3,150,054
2,541,883
2,115,790
1,946,798
1,451,903
19.51
1.37
185
35.56
55.91
45.97
6.94
10.31
21.6
1.5
188
34.0
54.8
46.8
7.1
10.5
19.9
1.4
185
34.8
54.9
46.1
7.1
10.7
17.7
1.2
170
36.2
54.1
41.1
6,4
9.8
22.1
1.6
181
34.5
55.4
44.6
7.7
9.9
4.47
1.60
4.1
1.4
3.2
1.1
2.4
0.9
2.6
0.9
stock
-
-
-
-
-
Dividend pay out ratio (%)
Market price
35.79
25.13
96.75
35.1
20.7
71.0
34.9
17.3
40.0
38.3
14.4
25.5
35.2
12.8
20.0
Price/earnings ratio
21.55
17.3
12,7
10.6
7.7
382
371
358
349
353
Balance sheet
Cash
Banks (receivables)
Loans and advances
Other assets
Shareholder’s equity
Banks (liabilities)
Customer accounts
Key ratio’s (in %)
Return on Equity
Return on Assets
Exploitation ratio
Personnel expenses/total income
Personnel expenses/total expenses
Profit ratio
Capital ratio
BIS-ratio
Per share data
Net profit per share
Dividend per share: cash
Shareholder’s equity
Employees
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DSB | Report of the Managing Board
M.P. Loor
S.L.J. Proeve
J.H. Lie-Tjauw
H.L. Henar
17
DSB | Macro-economic review
Report of the Managing Board
We take pleasure in presenting to you the macroeconomic developments at global level as well as the most
important economic developments that occurred in Suriname in the year under review. This analysis, in our
view, is important to place the development and progress of our institution in the proper context.
International developments
The global economic turbulence that took its toll in 2011 continued to make itself felt in many respects in
2012. The situation in the eurozone failed to improve in the year under review. At one point there were even
growing doubts about whether the euro would survive as the currency for the European countries falling
within the monetary regime of the European Central Bank. The effectiveness of the various bodies within
the European Monetary System was a frequent topic of discussion.
The US economy is still struggling with the problems of a towering budget deficit and stagnation in real
production. The United States of America is increasingly dependent on China for funding its debt burden,
a development which, among other things, could put the exchange rate of the US dollar versus the Yuan
under pressure.
On the whole the economies in Latin America and the Caribbean continued the trend of positive real
growth, although most island economies contended with a severe slump in tourism due to the consequences of the economic recession.
National developments
In 2012 the Suriname economy sustained the upward trend. Largely due to the rising prices of our country’s
most important export products, the share of notably gold and oil in our gross domestic product increased.
The ratings issued by the international ratings agencies and the International Monetary Fund for the Suriname economy reflect the improvement in our country’s monetary situation and state finances.
In 2012 the Suriname government continued the negotiations with foreign mining companies. The ultimate
aim of these negotiations is to set up new production facilities for the gold extraction activities of the Newmont company, while also expanding the IAMGOLD mining operations in Suriname of Rosebel Gold Mines.
The information in this part of our annual report is based on documentation from the Central Bank of
Suriname, the Ministry of Finance, the General Office of Statistics and the Suriname Bauxite Institute. In
addition, reports of the International Monetary Fund, the Inter-American Development Bank and the rating
agencies were consulted.
Below we will cast light on the following subjects:
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EFWFMPQNFOUTJOUIFQSPEVDUJPOTFDUPS
International payments and exchange rate developments
The calm in the foreign exchange market as observed in 2011 continued in 2012. The Central Bank of Suriname was not required to carry out any interventions in the year under review. The Central Bank of Suriname was thus able to devote more attention to tightening up its monetary policy, leading to a further
improvement in the regulatory transparency in this area. At the time of writing this report, the Central Bank
of Suriname was confronted with the need to assist the banks in connection with the demand for foreign
currency.
Monetary developments
At year-end 2012 the domestic liquidity volume had increased by over 21% to SRD 8,128.5 million. One
striking development was the deceleration of the growth in savings deposits and term deposits; the investments in local currency, by contrast, did show an increase. This same picture presented itself with demand
deposits.
18
Table 1
CBvS selling rate for USD banknotes in SRD in 2012
Selling rate
1/1
31/3
30/6
30/9
3.350
3.350
3.350
3.350
31/12
3.350
Source: Centrale Bank van Suriname
Monetary depreciation
Table 2
Desription
Domestic money supply
2012*
8,128.5
2011
6,710.0
2010
5,525.2
2009
4,994.8
2008
4,336.6
2007
3,595.2
(x SRD mln.)
Inflation in %
Average USD rate (free market)
4.4
3.35
0
Relative exchange rate movement
10.3
2.775
15.3
3.35
0
20.7%
1.3
2.775
9.4
2.775
8.3
2.775
0
0
0
General bureau of statistics
* Provisional figures
In line with Article 21 of the Banking Act, the Central Bank of Suriname has designed its policy to ensure that
advances to the state are limited in so far as possible and in all events remain below the statutory ceiling.
Regarding the relationship of the Central Bank of Suriname and the financial institutions, we can note that
the interest rate on advances has been raised from 7.5% to 9%, while the interest rate on credit line overdrafts has been raised by 1 percentage point to 12%.
The development of the international reserve of Suriname is clear from table 3 below. At the end of December 2012 the international reserve of Suriname amounted to USD 1,008.4 million. At year-end 2011 this
reserve position was USD 816.9 million, entailing an improvement of over 24%.
Developments in the balance of payments
At the end of December 2012 the current account balance was USD 241.3 million. The total balance of payments account was USD 191.5 million on that same date. As a result, our country’s import cover remained
well above the internationally accepted norm of three months.
Table 3
Value and composition of the monetary reserve (in USD mln.)
2012*
2011
2010
2009
2008
834.9
578.2
491.4
479.6
486.9
Gold
123.3
108.5
89.1
60.4
40.6
Other
50.2
130.2
110.3
117.0
75.0
1,008.4
816.9
690.8
657.0
602.5
Description
Foreign exchange exposure
Total
* Provisional figures to end December 2012
Table 4
Domestic money supply (in SRD mln.)
Description
2012*
2011
2010
2009
2008
2007
Notes and coins
864.1
707.9
687,1
587,2
485.1
432.6
1,504.6
Demands and deposits
3,459.1
2,838.6
2,315,7
2,087,9
1,946.4
(of which foreign currency)
1,686.2
1,467.2
1,034,4
1,001,0
1,090.1
768.0
Total primary liquidities (M1)
4,305.3
3,546.5
3,002,9
2,675,1
2,431.4
1,937.2
3,701.2
122.1
3,055.6
108
2,441,3
80
2,255,8
Securities
61,1
1,855.0
47.5
1,613.8
44.2
Domestic money supply (M2)
8,128.5
6,710.0
5,524,2
4,992,0
4,333.9
3,595.2
23
12
23
12
25
14
27
14
27
15
23
12
Other deposits
Monetary reserve in % of
M1
M2
* Provisional figures to end of December 2012
19
Table 5
Balance of payments on a cash basis (in USD mln.)
2012*
2011
2010
Export of goods
2,563.4
2,466.7
2,084.1
Import of goods
1,782.4
1,679.1
781.1
787.6
-539.8
Current account balance
Capital account balance
Description
Trade balance
Balance invisible ¹)
Items still to be published ²)
Movements international reserves )
3
2008
2009
1,401,.8
1,743.5
1,397.9
1,390.7
1,406.7
686.2
11.1
336.8
-536.5
-35.4
100.2
-12.1
241.3
251.1
650.8
111.3
324.7
-988.4
-578.4
-820.1
-88.4
-433.9
555.6
201.2
203.1
57.4
308.4
191.5
-126.1
33.8
88.3
199.2
*Provisional figures
1) comprises services, primary incomes and income transfers
2) includes purchases and sales of foreign currency by and to residents and movements in foreign currency acounts of residents.
3) excludes revaluation of monetary gold and SRD a minus indicates an increase in reserves
en.
Government finances
The Financial Statement for the 2013 budget year was presented in the National Assembly on 27 September
2012. In this budget the total public revenues are estimated at SRD 5.1 billion, while the public expenditures
are estimated at SRD 5.8 billion. As in previous years, the authorities assume the consistent application of
budgetary discipline and strict adherence to the National Debt Act (SB 2002 no.27), so that both the domestic and the foreign debt position of the state shall remain within the applicable limits. Moreover, the budget assumes that the government policy will be aimed at minimising any undesirable inflationary effects
from the public finances on the rest of the economy. In addition, the Minister of Finance announces in this
memo that the reform of the tax system will be continued and that the Tax Department will be reorganised.
Table 6
The draft budget (in mln. SRD)
Description
2013¹)
2012*
2011*
3,851.7
3,232.6
4,646.5
3,737.3
2,870.5
3,457.2
2,833.8
2,196.1
- Direct taxes
1,687.0
1,432.1
1,080.5
- Indirect taxes
1,770.2
1,401.7
1,115.6
Non-tax revenues
1,189.3
903.6
674.4
7.8
114.4
362.1
Expenditures and loans
5,659.3
5,312.6
4,734.6
Current expenditures
4,387.0
3,609.4
3,251.1
- Wages and salaries
1,437.1
1,437.1
1,423.6
Revenues and gifts
4,654.3
Current revenues
Total tax revenues
Gifts
- Other goods and services
1,478.8
894.9
764.6
- Subsidies and grants
1,401.1
1,123.9
875.6
70.0
153.5
187.3
- Interest
Loans
Total capital expenditures
1,272.3
1,703.2
1,483.5
Capital expenditures
1,264.5
1,588.8
1,121.4
7.8
114.4
362.1
259.5
128.0
-380.6
Total defecit/surplus (incl. redemp.)
-1,005.0
-1,460.9
-1,502.0
GDP (x SRD 1 mln.)
16,000.2
14,526.7
12,775.0
-6.3
-10.1
-11.8
Gifts
Current account defecit/surplus
Current a/c defecit/surplus as %GDP
Source: Ministry of Finance, Financial Memorandum 2013
*adjusted figures
¹) provisional figures
20
Tabel 7
Gross domestic debt by different debt components from 2007-june 2012 (in SRD mln.)
Description
june 2012*
2011*
2010*
2009
2008
2007
219.8
209.0
221.6
112.9
132.7
230.6
842.6
744.4
761.2
527.5
266.7
243.4
111.6
113.9
119.5
125.0
130.6
138.9
5.1
5.1
5.5
6.6
7.8
0.0
282.6
273.5
186.6
140.8
92.5
89.1
Payments arrears to companies
n.b.
0.9
0.7
n.b.
7.1
n.b.
Claimed guarantees
0.8
0.8
0.8
3.1
3.1
3.1
25.2
27.0
22.6
22.9
22.6
21
116.4
140.7
174.9
195.6
257.2
29
9.6
7.9
6.6
10.1
1.6
0
1,613.7
1,522.3
1,499.3
1,144.5
914.7
765.2
Treasury paper
Loans
Of which advances (ex. Art. 21
of the Banking Act) and other shotterm debts
with the CBvS
of which consolidated debt with CBvS
of which shotterm loans with
banks
Debts to domestic companies
Unclaimed government guarantees
Undrawn commitments on loans
Undrawn commitments on guarantees
Total domestic debt x SRD million
according to the definition in the National Debt Act
n.a. = not available
National debt
The National Debt Act (SB 2002 no. 27) sets out how the government is required to classify domestic and foreign debt components. The National Debt Act also stipulates the following statutory ceilings for borrowing:
t
t
t
PG(%1GPSUIFUPUBMEFCU
PG(%1GPSUIFGPSFJHOEFCU
PG(%1GPSUIFEPNFTUJDEFCU
At the end of June 2012 the total debt/GDP ratio was 27.5, while that of the domestic and foreign debt components amounted to, respectively, 11.5 and 16. These ratios assume the GDP figure at market prices for 2011
as issued in July 2012 by the General Office of Statistics.
Total gross domestic and foreign debt in USD million
on a cash basis according to the National Debt act
Table 8
2010*
Description
2012*
2011*
Domestic debt
Foreign debt
481.7
454.4
539.9
411.7
329
227.7
671.5
701.7
648.8
645.7
643.4
438.6
1,153.2
1,156.1
1,188.7
1,057.4
972.3
666.3
3.35
3.35
2.78
2.78
2.78
2.78
Total
2009
2008
2007
Exchange rates
* Provisional figures
21
Other economic developments
Oil
Staatsolie Maatschappij Suriname continued to grow in 2012 and its turnover crossed the USD 1 billion
threshold. Provisional information from this company indicates that its contribution to GDP is around 12%,
which makes Staatsolie a major driver of the Suriname economy. In the year under review, the refinery
enlargement project also made further progress and the sugar cane cultivation trials for the production of
ethanol were continued.
In the retail market Staatsolie further expanded its commercial activities with the takeover of the Chevron/
Texaco chain in September 2011. These activities will for the time being be conducted under the company
name Suritex.
Gold
The negotiations with Newmont and Iamgold/Rosebel Gold Mines proceeded in the year under review and
we can currently report that the draft legislation for enabling these crucial investments for Suriname has
been presented to the National Assembly for assessment and approval. We welcome this development, but
reiterate our wish that these economic activities should be conducted in such a manner that any damage
to the environment is minimised. We also consider it highly noteworthy that a reputable company from
Dubai, together with several Suriname entrepreneurs, has taken the initiative to set up a minthouse. The
first stone of the “Kaloti Suriname Minthouse” was laid on Friday 1 March 2013. This initiative to set up a
production facility in Suriname demonstrates that it is possible to convert a trading activity into a direct
investment, provided this is properly prepared and supported by the authorities,. The Kaloti company has
been active in the Suriname market as an importer of gold for almost twenty years, and the creation of the
minthouse marks its first steps as an investor in the Suriname economy. This facility will serve to determine
the value of the gold from Suriname and surrounding countries, thus guaranteeing a standardisation of the
export quality. In addition, this facility will create the possibility of producing gold bars that can be offered
as an investment in the market. The intention is for our bank to play a role in these sales activities.
Bauxite
We gratefully made use of the figures of the Suriname Bauxite Institute in this report. The figures at yearend 2012 show a continuing decline in the export value of alumina. In 2012 these exports decelerated
by about 25%. We see this as a worrying development and it reaffirms the need for the policymakers to
encourage further diversification of the Suriname economy, so that any adverse consequences of a continuation of this trend can be absorbed.
Table 9
Production and export data for the bauxite sector
Description
Production in metric tonnes
2012*
2011
2010
Bauxite
2,908,426
3,223,888
3,103,588
Alumina
1,202,805
1,421,464
1,486,449
Export in metric tonnes
2012*
0
1,202,236
2011
0
1,411,436
2010
Export in USD mln.
2012*
2011
2010
0
0
0
0
1,505,868
364.9
490.9
440.4
Source: Bauxite Institute Suriname
Agriculture
As no recent statistical data were available at the time of writing this report, we were not able to make an
analysis based on numerical material. We regret this as we feel that, due to this absence of information,
insufficient recognition is given to the important role that agriculture should play in our economy.
Other sectors
Finally, we can mention that the initiated construction of a power station on Saramaccastraat in Paramaribo will make it possible to meet the urgent need for energy within a year. The resulting expansion with 63
megawatt will double the existing generation capacity of the energy company De Energie Bedrijven Suriname.
As a corollary of the real growth that the Suriname economy is currently undergoing, we noticed a remarkable increase in investments in the transport, construction and the industrial sectors in 2012.
22
DSB | Currency information
Exchange rates
Centrale Bank van Suriname
as at 31 December 2012
Bills, cheques and transfers
Foreign currency
Bank notes
buying
selling
buying
selling
US Dollar (USD)
3.250
3.350
3.250
3.350
Euro (EUR)
4.284
4.416
4.272
4.426
Pond Sterling (GBP)
5.244
5.406
5.208
5.416
Neth. Ant. Guilder (ANG)
1.807
1.884
1.807
1.884
Aruban Florin (AWG)
1.807
1.884
1.807
1.884
Brazilian Real (BRL)
1.567
1.640
1.562
1.640
Trinidad & Tobago Dollar (TTD)
0.501
0.522
0.496
0.522
Barbados Dollar (BBD)
1.614
1.675
1.609
1,675
Eastern Caribbean Dollar (XCD)
1.194
1.240
1.189
1.240
Guyana Dollar (per 100 GYD)
1.558
1.630
1.553
1.630
The above rates are recommended rates
Price trend on the free currency market in 2012 (at the end of the month)
Selling rate
Selling rate
Month
USD
EURO
January
3.350
4.338
February
3.350
4.437
March
3.350
4.394
April
3.350
4.423
May
3.350
4.309
June
3.350
4.195
July
3.350
4.130
August
3.350
4.158
September
3.350
4.310
October
3.350
4.358
November
3.350
4.313
December
3.350
4.408
Source: De Surinaamsche Bank N.V.
Sales/repurchase value of Powisi gold certificates at 31 December 2012
Denomination
5 gram
Sur. Dollar (SRD)
1,688.63
10 gram
3,377.26
50 gram
16,886.11
100 gram
33,772.23
500 gram
168,861.14
1,000 gram
337,722.46
Goldprice LME: 1,657.50 USD per troy oz. (31,1035 gr.)
Contribution printing and administration costs: one-off SRD 0,80 per certificate.
23
24
DSB | The bank's operations
25
DSB | The bank's operations
To our shareholders
General
In the past financial year our bank increased its consolidated net profit by 8.9% compared to 2011 to the
amount of SRD 38,903,000. This result has further reinforced our market position.
The consolidated balance sheet total at the end of the year under review also rose to SRD 3,150,054,000; an
increase of 23.9% relative to the previous year.
In 2012 the finishing touches were put on the design and production of the external signage of our office
buildings in conformity with the new house style introduced in 2011. This signage, which includes new columns, lettering, banners and redesigned ATMs, was implemented in February at our Nieuwe Haven branch.
The other branches will also be taken in hand in 2013.
The developments in the bank’s operations are presented in the following financial statements and notes.
The financial statements
As in previous years, we describe below the developments in our bank’s operations that took place in the
year under review. The description is based upon the consolidated balance sheets, the consolidated profit
and loss account and developments in the bank’s operations recorded in the five-year consolidated key
figures. The main developments affecting each department during the year under review are also described.
Balance sheet after profit appropriation
On the asset side, loans and deposits – a heading that covers lending and investments in Suriname treasury paper – accounted for 51.8% of the balance sheet total. Expressed in SRD, net lending increased by
22.98% to SRD 1,493,344,000. Foreign currency assets made up 48.0% of the credit portfolio at end-2012;
this means that the dollarisation level had decreased slightly (from 50.8% at end-2011). The value of the
treasury paper portfolio at end-2012 was SRD 80,781,000, which was slightly lower than the value at end2011. The bank’s liabilities consist mainly of assets entrusted to the bank by its customers (‘customer deposits’) and the bank’s equity capital.
At the end of 2012, customer deposits had risen by 24.55% to SRD 2,741.311.000; the foreign currency component was 57.96%. Savings deposits accounted for 34.69% in 2012, while the share of demand deposits
decreased from 48.0% in 2011 to 44.9% in 2012. The share of term deposits increased from 14.2% at end2011 to 20.41% (i.e. SRD 559,455 million) in 2012.
Our bank’s equity capital grew from SRD 180.1 million to SRD 218.6 million in the year under review, an
increase of 21.35%. In line with our objective of improving the solidity of our bank, the policy has been aimed at adding a substantial part of the net profit to the reserves. The reserves serve as a buffer against the
many risks that businesses such as ours face. At end-2012, the capital adequacy ratio was 10.3%. The bank
was thus in compliance with the minimum international BIS standard of 8%. We also satisfy the liquidity
requirements laid down by the Central Bank of Suriname.
26
Consolidated balance sheet (x SRD 1,000)
3,150,054
3,500,000
250,000
218,614
2,541,883
3,000,000
180,148
200,000
2,115,790
2,500,000
2,000,000
Capital and reserves (x SRD 1,000)
1,946,798
150,111
150,000
1,451,903
1,500,000
111,015
125,395
100,000
1,000,000
50,000
500,000
0
0
2008
2009
2010
2011
2008
2012
2009
2010
2011
2012
Consolidated profit and loss account
In the year under review, the consolidated net interest income grew by SRD 19.075 million to SRD 130.126
million, an increase of 17.2%. This rise is attributable mainly to higher interest income from lending. Fee
and commission income increased by 16.8% to SRD 30.067 million. The results from financial transactions
decreased in the year under review by 3.54% to SRD 6.426 million, partly as a result of the one-off positive
result in 2011 of about SRD 900,000 due to the devaluation that year.
The consolidated pre-tax operating profit rose by 11.1% (SRD 3.190 million) to SRD 38.903 million in the year
under review. Income was 16.2% up on 2011, while overall expenditure increased by 19.3%; the operating
ratio was 185%.
Although the share of non-performing loans in the credit portfolio was smaller than in 2011, the net addition to the credit risk provisions rose in the year under review. This was due to the rules of the Central Bank
of Suriname, which stipulate that the provisions for these loans must be increased according to the length
of their non-performing status.
The following sections deal first with the bank’s Lines of business, then with the departments responsible
for the implementation of enterprise-wide risk management and thereafter the other departments.
Net profits (x SRD 1,000)
38,903
35,713
40,000
35,000
27,414
30,000
25,000
22,734
20,904
20,000
15,000
10,000
5,000
0
2008
2009
2010
2011
2012
27
CORPORATE BANKING
Corporate Banking has given further shape to its professional approach by expanding and improving its
services to large corporates as well as medium-sized and small businesses. We offer high-quality advice
and customised products to our customers. The services extend from the provision of financial advice to
assisting customers with international trade transactions, making use of facilities from the World Bank (IFC)
and the Inter-American Development Bank (IDB).
In their role as financial adviser, our Relationship Managers offer a comprehensive range of business products alongside the traditional credit products. As a result, all our customers from the various sectors are
assured of comparable banking services at an international level.
Lending
Lending has grown in conformity with our expectations, which is partly a reflection of the economic upturn and partly the result of several interesting acquisitions. We are satisfied to note a 22% increase in our
lending portfolio in 2012. This development was driven by growth, notably in the construction sector and
related services such as transport, storage and communication.
The previously cited cooperation with the IFC and IDB has proven its worth in helping to facilitate international payment transactions for our clients.
The chart below indicates the share of the various sectors in the credit portfolio, including treasury paper.
SƉƌĞĂĚŽĨƚŚĞƉŽƌƞŽůŝŽ
(ĐƌĞĚŝƚĂŶĚƚƌĞĂƐƵƌǇƉĂƉĞƌ) ĂƐ Ăƚ 31 December 2012
Agricultural sector 2%
(2011:2%)
Public sector 0%
(2011: 0%)
Treasury Paper 5%
(2011:6%)
Fisheries 0% (2011: 0%)
Mining 3% (2011:2%)
Industry 12% (2011:13%)
Other 14%
(2011: 14%)
ConstrucƟon 4% (2011:3%)
Housing 7%
(2011:8%)
Services 14%
(2011: 13%)
Electricity/Gas en Water 1%
(2011: 1%)
Transport/ storage and
communicaƟon 5%
(2011: 3%)
Trade 33%
(2011: 34%)
Organisation
We are committed to putting our customers first and always seek to form an accurate picture of their needs.
Accordingly, our relationship managers are specifically trained and positioned to fulfil our mission. By
remaining in continuous contact with our customers, we are able to respond in time to new developments,
which also serves to enhance the quality of our management and monitoring.
Interest rate developments
Our operations and our market position have enabled us to pursue an interest rate policy that allows us in
a general sense to offer lower interest rates in the SRD lending market. This development was met with a
positive reception.
28
Prospects
Various national and international organisations and institutions have expressed positive expectations
regarding the economic development of Suriname. We have set up the services for the business market so
as to ensure that we can respond in a positive manner to this expected expansion. Apart from our further
professionalisation, our organisation will focus strongly on extending its ranges of services for the business
market. Our institution is ready to support the accelerated economic growth of our country, particularly in
the agriculture, construction and installation, and mining sectors.
RETAIL BANKING
Our services to consumers are primarily provided via the Retail Banking Department. Expansion and reinforcement of both the physical and electronic distribution network received a lot of attention in the year
under review.
New-build developments
The construction of our new office (at the current location) at Kwatta is now under way. The new office
will be taken into use in mid-2013. The preparations for a new outlet in the Para District have reached an
advanced stage.
Electronic distribution channels
Regarding the electronic distribution channels, we note an increase in the use of DSB Internet Banking and
Point of Sale (POS) payments. Our ATM network has also undergone further expansion – so much so, that
we can now offer our customers ATM services far beyond the urban boundaries. The DSB ATM has long since
ceased to be a medium that is exclusively used to get money out of a ‘hole-in-the-wall’. The multiple uses
of our ATMs now include applying for personal loans, paying energy bills, purchasing phone credit (from
Telesur, Digicel and Uniqa) and changing the PIN of debit and credit cards.
Targeting young people
To continue expanding our market position, we regularly take part in public events that are targeted at
specific market segments. In the year under review, for instance, we focused on young people, particularly
those in the older age group. By participating in education & career fairs for young people and information
days of institutions for higher vocational education, we sought to establish deeper contacts with this target
group. The development of a specific loan product to help this group pay their educational expenses deserves special mention. And given the well-known popularity of the internet among young people, we have
also specifically called this target group’s attention to our DSB Internet Banking service. The introduction of
the I-Signer, a device that makes internet banking even safer, was also received by them with enthusiasm.
Southern Commercial Bank
The cooperation with the Southern Commercial Bank in the field of consumer services made good progress
in 2012. Other areas of cooperation reached an advanced stage of development.
Creditcard
Our credit card services were raised to a higher level when we became the only bank in Suriname that carries out the full production and processing in-house. One great advantage of this is that a DSB credit card
can be issued to customers within only one working day. We also introduced various new options, both for
the business and the personal customer segment. From 19 October 2012 Classic and Gold credit card holders
can be alerted by text message or e-mail as soon as a transaction above a certain amount (as specified
by the customer himself) is carried out via their credit card. To make use of this service, the customer only
needs to sign up via the DSB Internet Banking package. All processed transactions as well as other information can be viewed at all times via these electronic distribution channels and via Phone Banking.
Safe-deposit boxes
The previously-initiated expansion and replacement programme for our safe-deposit boxes was completed.
In the coming period, more emphasis will be placed on drawing the general public’s attention to the implemented innovations in this area.
29
Nickerie
In the year under review the DSB team in Nickerie focused on a further improvement of its services. Both
the corporate and retail portfolio showed growth relative to the previous year. The strongly agricultural
character of the economic activities in this district demands specific knowledge. By providing the right education and training, we can ensure that the staff in Nickerie have the necessary sector knowledge for the
proper performance of their duties. We once again succeeded in adequately fulfilling our advisory task for
agricultural entrepreneurs. The risks attendant on farming need to be properly assessed. Alongside the risks
at management level, other significant risks concern the state of the infrastructure, water management and
the weather conditions. Meanwhile, the government has started up various activities aimed at improving
the infrastructure. We therefore foresee a positive development for Nickerie in 2013.
Moengo
Our bank’s most eastern branch is situated in Moengo, the former bauxite-dominated town. The people
living in and around Moengo are no longer almost exclusively employed by bauxite-related businesses.
After almost 100 years of mining activity, the bauxite stocks in and around Moengo have become virtually
exhausted. In the meantime various initiatives are being taken to get other economic activities off the
ground. Though some concrete steps have been made in this connection, the pace of progress so far is
unsatisfactory.
Taking this circumstance into account, we are content with the result achieved by our branch in Moengo in
2012.
PAYMENTS & SETTLEMENTS
The Payments & Settlements (P&S) Department is responsible for processing all local and international
transfers as well as documentary credits and direct debit collections. All operational activities and the
management of the electronic services and distribution channels also come under the responsibility of this
department.
Current domestic and international payments
In 2012 the number of processed transfers to abroad increased by 20% compared to 2011. The transfers from
abroad once again showed a fractional increase this year. With the implementation of the new system for
foreign transfers, we are now able to offer same-day processing for all accepted foreign payment instructions.
We can now also send bank statements via SW IFT for our business customers who form part of a multinational that is connected to the SWIFT system.
GBD is the Cashless Payment Service with which business customers can digitally deliver their salary and
creditor payments to us. In 2012 all customers who use our GBD application where provided with a renewed version. Business customers can offer their payment transactions in all currencies for processing to all
branches in Paramaribo as well as in Lelydorp. Not surprisingly, the number of business customers making
use of this extremely convenient service has greatly increased.
The cashless payments in the form of funds transfers and cheque deposits remained constant in 2012 compared to 2011, and there were also no other noteworthy developments. Customers are recommended to use
DSB Internet Banking for their cashless transfers because of its convenience and 24/7 availability.
The use of Letters of Credit and Direct Debits for the settlement of international trade transactions displayed
no noteworthy changes compared to 2011.
We recommend the use of these payment instruments to business customers who, as importers or exporters, want extra security regarding the delivery of goods by the supplier or payment by the customer.
30
Electronic distribution channels and services
Our electronic distribution channels and services increase the effectiveness and efficiency of our bank’s
operations and thus the ‘Banking when I want, how I want with my bank' principle. As at ICT, these distribution channels and services play a particularly central role at P&S.
At present there are 70 ATMs and more than 1,000 POS terminals serving our customers as an electronic
distribution channel. In 2012 the transactions via our ATMs (including non-customer use) increased by over
10% compared to 2011. The payment transactions via our POS terminals showed a rise of over 15%.
Since the implementation of a new credit card processing system in October of this year, the customer can
choose between several self-service options, including blocking a credit card, requesting a list of transactions and making extra credit card repayments. This system offers debit and credit cardholders who also use
DSB Internet Banking the option of setting text or email alerts according to their own wishes. If desired, a
customer can immediately receive a text or email message informing them of all debits (by debit or credit
card) and credits to their account.
2012 also saw the introduction of the I-Signer involving the application of token-based ’multi factor authentication’ for our Internet Banking facility. This offers our customers greater security when banking
online. In this light, it is good to note that the use of our Internet Banking facility increased by over 20% in
2012 compared to 2011. Customers can use this distribution channel to independently perform local transactions and thus experience the convenience of being able to arrange their banking via their computer at any
time of day.
The number of Mobile Banking users is also steadily growing, while the use of Phone Banking declined in
2012 relative to 2011. Given the increase in the number of users as well as the frequency of usage, mobile
banking has been well-received by our customers. The available Mobile Banking options include making
balance enquiries for payment, savings, loan and term deposit accounts. In addition, it is also possible to
request a list of transactions for payment, savings and loan accounts.
TREASURY
Given the persistently worrying economic developments in Europe and the USA, as well as the downgrading
of several financial institutions and countries, there is still no clear prospect of better times.
In contrast with the stability in the local currency market, the international economy and international currency market remain highly volatile.
In the second half of the year under review, the overnight interest rate for European banks was set at zero.
In some cases the interest rate even turned negative. This once again had an adverse effect on the return
on the international investment portfolio.
The local currency market was able to stabilise further in the year under review. Discrepancies in quoted
exchange rates remained within the bandwidth indicated by the Central Bank of Suriname. Partly thanks to
this equilibrium, our bank achieved growth in the number of foreign currency transactions. New strategies
will enable the bank to further reinforce its position in the coming year.
The aim of the monetary authorities to reduce the level of dollarisation within the economy prompted the
Central Bank of Suriname to implement a further tightening of the cash reserve guideline from 2 January
2013. The norm was raised with effect from 2 January 2013 from 40% to 45%; the norm for the cash reserve
in SRD was maintained at 25%.
The tighter foreign currency norm will make lending more expensive. Constant and adequate monitoring
therefore remains crucial.
The cash reserve policy of the Central Bank of Suriname is aimed, among other things, at reducing the level
of lending in foreign currency. We have supported this policy by pursuing a targeted interest rate policy.
This translated in 2012 into a reduction of the dollarisation level of the lending portfolio.
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Composition of funds raised as at 31 December 2012
Saving accounts
34.7%
(2011: 37.7%
Demand deposits
44.9%
(2011: 48.1%)
Term deposits
20.4%
(2011: 14.2%)
Composition of credit portfolio in SRD and foreign
currency as at 31 December 2012
SRD 52.0 %
(2011: 49.2%)
foreign currency 48.0%
(2011:50.8%)
SURITRUST
Surinaamse Trust Maatschappij N.V. is a wholly owned subsidiary of our bank and is known by the name
Suritrust. It specialises in services such as asset management for (wealthy) private individuals and institutional investors. The type of investment that the customer chooses depends on his risk appetite and desired
return. Suritrust provides advice to help the customer make the right choice.
If the customer chooses to invest in mortgage loans, Suritrust takes care of the technical credit screening
and administrative handling of the mortgage application. The assessment is based on a specific assessment
framework that was specially developed by Suritrust for this purpose.
The mortgage loan is extended at the investor’s expense and risk. This entails that Suritrust carries out the
administrative handling on the investor’s behalf and also acts on the investor’s instructions. Any income
from mortgage-based investments goes to the investor. Suritrust exclusively receives a management fee.
This expressly takes place on a ‘no cure no pay’ basis. In other words: If, for whatever reason, the mortgage
is not repaid and no interest is earned, Suritrust receives no management fee.
Asset management
2012
2011
2010
Number of asset management customers
186
208
201
Assets under management (x SRD 1,000)
Average per client (x SRD 1,000)
Number of debtors
Outstanding deb. amount (x SRD 1,000)
474,004
2,548
4,441
410,749
438,031
2,106
4,447
400,873
374,109
1,861
4,075
344,802
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The total value of the assets under management rose by more than SRD 36 million in 2012, representing an
increase of 8% compared to 2011. This growth was mainly achieved in the SRD-denominated assets under management. The total value of the assets under management denominated in EUR and US dollars
remained at virtually the same level as at end-2011. The capital invested in mortgage lending, expressed
in SRD, rose in the year under review to the level of SRD 411 million (2011: SRD 401 million), representing a
marginal increase of 2%. This is the consequence of a somewhat more stringent assessment of applications
and the need to meet the specific (interest rate) requirements of the investors.
7% home-building programme
The general banks in Suriname are obliged to maintain a portion of their received funding on an interest
rate-free basis at the Central Bank of Suriname. The Central Bank of Suriname allows banks to use part of
the prescribed cash reserve for mortgage loans to promote home construction. This programme is therefore
funded from the cash reserve.
The interest rate on these mortgage loans is 7% per annum, the maximum loan is SRD 100,000 and the
maximum term is 25 years. This programme was continued in 2012 and the value of the outstanding loans
was SRD 75.6 million at end-2012 (2011: SRD 72.6 million), an increase of 4.13%. At the end of December
2012, the number of families we assisted with this financing facility was 1,678 – an increase of almost 6%.
Government house-building programme
After the launch of the government’s ambitious house-building programme in October 2011 at Hanna’s Lust,
various initiatives were undertaken in 2012 to give this programme more structure. The adoption of the
Housing Plan 2012-2016 in parliament deserves to be mentioned in this connection. One important change
was made to the approach in order to safeguard the smooth and speedy progress of the programme.
Whereas the initial intention was to let homeseekers choose one of the model homes at Hanna’s Lust and
then start up the financing process, now it has been decided to allocate the homes on the basis of the
homeseeker’s financial means. In the meantime, several contractors have been instructed to build series of
homes and deliver these on a turn-key basis to the homeseekers. The financing process is completed with
the buyer during the construction process. Suritrust, together with Surinaamse Postspaarbank, plays an
important role in this process.
Trademark registrations
The exclusive right to carry a trademark is obtained by registering this trademark at the appropriate authority, the Intellectual Property Office. In Suriname this authority is placed within a department of the
Ministry of Justice & Police. The trademarks can be registered at the Intellectual Property Office. On request,
Suritrust can assist with the registration process.
Low Income Shelter Program
The Low Middle Income Shelter Programme (LMISP) is a home-building finance programme that offers loans
at an annual interest rate of 6% per annum to families with gross household monthly incomes of between
SRD 1,200 and SRD 2,400 who need capital to build new homes or to renovate or extend existing homes.
The maximum loan is SRD 50,000, and applicants are obliged to contribute at least 5% of their financing
requirement. By the close of 2012, twenty-four families had been assisted and the total amount lent was
SRD 739,400.
Implementation of the second Low Income Shelter Programme (LISP-2) continued in the year under review.
This programme is intended to further support the government in its efforts to improve housing and general living conditions for low-income groups in particular. LISP-2 is a subsidised home building programme
for families with a monthly household income of between SRD 675 and SRD 1,575, depending on the number of household members. Grants are available for building or finishing new homes or for renovating or
extending existing homes, and applicants are obliged to make a personal contribution equal to 10% of the
subsidy of up to SRD 9,750. In 2012 we provided loans for 245 families under this programme (2011:158).
33
Support Foundation for Private Employees in Suriname
At year-end 2012 we observed a modest increase in the number of participating companies. In addition,
within the existing companies, a total of 98 new participants joined, leading to a corresponding increase in
the managed capital.
Microloans Programme
Suritrust has been appointed as the manager of the Microloans Programme (MKP). The implementation of
this programme incurred a delay in its third year. Due to some confusion about the availability of donor
funding, there were fewer expenditures. We are delighted to report that the Ministry of Finance took over
the funding of this programme at the end of 2012, thus securing the further implementation of the programme.
In order to achieve a sustainable development of the microloans sector , we also undertook efforts in the
year under review to strengthen our staffing capacity within the available resources. Among other things,
we initiated targeted training courses for the Micro Finance Institutions (MFIs) which were tailored to the
employees’ needs as identified during earlier research.
All five MFIs participating in the programme attended a three-day workshop which dealt with such themes
as risk management and delinquency management.
In the year under review we also received two business plans from organisations that want to operate as
MFIs. The applications are currently under consideration and a decision on the admission of these organisations will be taken after an intensive assessment in the course of 2013.
To date, our programme has mainly been introduced in the coastal area of Suriname. Most of the loans took
place in the Nickerie, Paramaribo and Wanica districts. Actions are also being undertaken to raise interest
for the microloans programme among the inhabitants of the inland area of Suriname.
Suritrust, in its capacity as manager, participated together with the MKP Board and the MFIs (Spaar- en
kredietcoöperatie de Schakel, Coöperatieve Bank Godo, Finatrust-de Trustbank N.V. and SEVA) in the conference of the Caribbean Micro Finance Alliance on Barbados. On this occasion, they secured the appointment
of Suriname as host country of this annual Caribbean Micro-Finance Conference in 2013.
In the year under review, expenditures on the programme totalled SRD 640,186.31, of which SRD 189,142.36
was spent on strengthening the staffing capacity.
DSB ASSURIA VASTGOED MAATSCHAPPIJ N.V.
DSB Assuria Vastgoed Maatschappij is our property development company in which our bank holds a 50%
stake. Assuria N.V. is the other shareholder and also holds a 50% stake in the share capital.
The most important activity consists of the acquisition of locations that are suitable for property development, making the land ready for construction, partitioning it into plots, and then offering it for sale.
In a few cases, turn-key homes are built and offered for sale on plots of construction-ready land, either
independently or in partnership with other relevant companies.
In the year under review we continued the preparations for developing our prestigious Woonoord Concordia
project at Acaribo. Concordia is being developed as a sustainable, lively and modern neighbourhood where
many people can live, work and relax in an enjoyable manner. Covering about 550 ha, the area is situated
to the east of Maarten Luther Kingweg (Highway), about 20 km to the south of Paramaribo. One key feature
of the area is its location around a large lake (150 ha) and the presence of abundant greenery.
In the year under review, the sale of the initial 46 building plots within the Leiding 9A project was continued and almost 70% had been sold at the end of 2012.
In addition, 90% of a project at Lelydorp was technically completed at the end of 2012. The sale of the
construction-ready plots will start in the first quarter of 2013.
34
RISK MANAGEMENT
The management of credit risks was further intensified in the year under review. Extensive attention was
devoted to the quality of the credit portfolio in order to keep this within manageable and permitted proportions. The portfolio thus also met the Central Bank of Suriname's guideline which permits a maximum of
5% non-performing loans.
Regarding the market risks, there was an extra focus on the risk/reward ratio for the foreign investment-related part of the Treasury activities. The global development of disproportionately falling returns alongside
rising risk profiles compelled a re-evaluation of the foreign investment policy. The applied risk management measures included the overweighting of other investment instruments and the mitigation of concentration risks at foreign banks.
As for the operational risks, we can specifically report that the implementation of our in-house credit card
processing received extra attention in the year under review. The attendant risks were carefully identified
and analysed. The Risk Committee played an important role in this respect.
Much attention was also given to the organisational role of Risk Management in 2012, with a particular focus on the risk policy and the organisation of the risk management. The Risk Committee is the body where
the preparation of the policy on risk management takes place. This body is chaired by the CFO who also
carries the highest responsibility for the Risk Management activities within the bank. The deputy chairman
of this body is the COO. The other members of the Risk Committee are the department managers of Legal &
Compliance, Internal Audit and Risk Management. The minutes of Risk Committee meetings go to the Managing Board and the Audit Committee.
The policy on Enterprise-wide Risk Management was developed further by deepening the ‘3 Lines of Defence’ model. The specific outcome of this process is the alignment of Risk Management, Legal & Compliance and Internal Audit for all risk management activities, both in terms of planning and implementation.
The 3 Lines of Defence principle means that the line managers constitute the 1st Line of Defence. The line
managers are the risk owners and, as such, responsible for the first risk management line of defence. The
2nd Line of Defence consists of Risk Management and Legal & Compliance. These two departments are also
referred to as the risk management organisers of the bank. This 2nd Line has the task of ensuring, together
with the 1st Line, that sufficient risk management systems are in operation and that continuous monitoring takes place to guarantee the timely and adequate resolution of any shortcomings in this respect. The
3rd Line of Defence has been entrusted to Internal Audit which is tasked with assessing the activities of the
1st and 2nd Lines and providing assurance on their adequate operation. In conclusion, a lot of attention is
devoted to maintaining knowledge at a sufficient level and applying the latest methods and technologies
for enhancing the efficiency of the risk management procedures within our bank. The provision of various
training courses as well as the implementation of diverse applications to support our risk management also
deserve mention in this connection.
LEGAL & COMPLIANCE
In the year under review we continued to tighten our policy rules and procedures aimed at the strict observance of all relevant laws and regulations, including in the field of Anti Money Laundering and Anti Terrorist
Financing.
In the year under review, the Disclosure of Unusual Transactions Act and the Identification (Financial Services) Act underwent an adjustment at national level. As a result, these now provide a broader statutory
basis for the further intensification of our bank’s integrity policy, particularly concerning the acceptance of
new customers, continuous checking of existing customers, the monitoring of financial transactions and the
prevention of money laundering and terrorist financing activities.
In the year under review, preparations were also made for the implementation of the consequences of the
Foreign Account Tax Compliance Act (FATCA). FATCA was introduced by the United States of America in order
to prevent US taxpayers evading tax via bank accounts outside the USA. Amongs other things, FATCA obliges
foreign banks to report on any US taxpayers in their books.
35
INTERNAL AUDIT DEPARTMENT
The principal task of the Internal Audit Department (IAD) within our banking institution is to provide assurance on our internal (risk) management to the Managing Board, the operational management and the
overseeing Audit Committee of the Supervisory Board. The external auditor also falls within this target group
in connection with the half-year and annual audit of our banking institution.
The principal aim of this assurance process is to bring about a cyclically-driven process for the continuous
improvement of the quality of the internal control of the processes and their attendant risks within our
banking institution. In this connection, the IAD’s tasks comprise the performance of diverse types of audits
including operational, compliance and financial audits.
One part of the IAD’s previously-mentioned assurance role consists of the performance of the EDP audit
(Electronic Data Processing). Until now, the implementation of both the general and the technical EDP audit
was outsourced to an external EDP auditor. At the end of the year under review, the first steps were made
towards the phased introduction of the cyclical in-house implementation of the general EDP audit in the
coming reporting period.
The technical EDP-Audit will remain outsourced to the external EDP Auditor for the time being. In January
2013 an EDP auditor was engaged to strengthen the audit team.
The progressive implementation of the ERM framework within our banking institution is also expected to
have an impact on the IAD’s existing assurance role. In contrast with the current situation, the IAD is expected to become the 3rd and final Line of Defence in this assurance framework. For the coming period, the
first steps have been made via the 2nd Line of Defence to create a broader basis for the provision of assurance to the Managing Board and the overseeing Audit Committee.
As part of our integration within the Caribbean region, the IAD-Manager was elected for a second period
of office (July 2012 to July 2013) as a board member of this regional body during the sixth annual CAACM
meeting (Caribbean Association of Audit Committees Members Inc.) at Castries, the capital of the island of
St. Lucia.
INFORMATION & COMMUNICATION TECHNOLOGY
In 2012 the effort to increase the effectiveness and efficiency of our banking operations and thus facilitate
’Banking in my time, in my way with my bank' continued to play a central role at Information & Communication Technology (ICT).
As announced in 2011 the Multi-Factor Authentication facility was introduced under the product name ISigner in order to enhance the security level of Internet Banking. Thanks to the I-Signer our clients are able
to perform their Internet Banking transactions more safely and securely and are also able to digitally sign
these transactions.
DSB Mobile Banking, which was introduced in November 2011, is showing tremendous growth. Many customers already use this service to make balance enquiries, with peaks occurring at the end of the month
when many people want information on their salary payments.
The introduction of the renewed credit card system has also improved the accessibility via Phone Banking.
Our customers who have a Mastercard credit card can now reach our support staff 24/7 via the support number.
Our EasyCell product, which was launched in 2005 to enable customers to charge phone credit in USD to
their SRD account via the ATM, underwent a modification in the year under review, so that it is now possible to buy phone credit in SRD. In addition, EasyCell vouchers can now also be purchased over the counter
at our branch in the arrival hall of the Johan Adolf Pengel Airport at Zanderij.
Finally, thanks to a technical modification at the end of 2012 all our ATMs are now not only able to accept
international Mastercard credit cards and Maestro debit cards but also China Union Pay cards (CUP) as well
as debit cards of Godo, Landbouwbank and Finabank.
36
ACCOUNTING & REPORTING
In the year under review, major steps forwards were made in our preparations to be ‘in compliance’ with
the International Financial Reporting Standards (IFRS) by 2015. This is necessary because to report according
to IFRS in the year 2015, the comparative figures for the 2014 financial year must also be adapted to IFRS
standards. The bank is currently implementing this change in the accounting policies in close cooperation
with the auditor.
In the year under review, the phases that need to be completed in order to be fully IFRS compliant in 2015
were identified. In the first phase the main emphasis will be on administrative organisational matters such
as the installation of a project group and the determination of the effects on the organisation. The second
phase will centre on the planning, with close attention being given to specific tasks. In the third phase,
the consequences of the application of IFRS standards will be identified at process level. In the penultimate
phase, which is dedicated to the implementation, the bank-wide impact will manifest itself as the changes
in processes, procedures, systems and reports will then become visible. Ultimately, the 2015 annual report
will be entirely compliant with the IFRS standards. The final phase concerns the evaluation to identify and
remedy any gaps.
One of the first steps in the process involves training the employees in understanding and applying the IFRS
standards to the bank’s various operations.
As a result of the bank’s decision to obtain insight into the profitability of individual branches, more concrete information and input is now available to control the specific business processes in a more efficient
and effective manner. The efforts in the year under review were concentrated on the allocation of the costs
of the support departments. This provides insight into what the other indirect costs are as well as into the
share of each individual branch in these costs. The next challenge is to create more insight into the profitability per product. This implicitly also entails the initiation of the transition from financial accounting to
management accounting, where more detailed information at tactical and operational level is required for
control and decision-making purposes. The Accounting & Reporting Department where all data are shown
at aggregated level plays an important role in the provision of information to the business. In this connection, the A&R department assumed the role of business partner. Its challenge now is to continue fulfilling
and expanding this role in the future.
GENERAL AFFAIRS
In the year under review the maintenance, renovation, modernisation and construction of our offices continued according to plan.
As previously announced, the first stone of the new and modernised office at Kwatta was ceremonially laid
on 21 June. The opening of this office on the Washingtonstraat and the accompanying newly constructed car
parking facility is expected in the third quarter of 2013.
In the year under review the construction of our bankshop in the Commercial Activity Center of N.V. Luchthavenbeheer at the Johan Adolf Pengel Airport got under way after some delay. This bankshop will not only
serve arriving and departing passengers, but also local customers from the surrounding area. We expect to
open this bankshop in the second quarter of 2013.
Just like our old office at Kwatta, our office at Ma Retraite was built in 1972. We also want to take this building in hand and bring it into line with present-day requirements in order to meet our customers’ needs.
The preparations for this new-build project are in an advanced stage and construction will start soon.
In February 2013 our office at Nieuwe Haven was provided with external signage in conformity with the
new house style introduced in 2011. This signage comprises, amongst other things, new pillars, lettering
and banners. After our branch at Nieuwe Haven, the other branches and the adaptation of the ATMs will be
taken in hand.
In the year under review, the safe-deposit box area at the head office was refurbished, taking account of
present-day requirements. Apart from the existing safe-deposit box holders, who were requested to exchange their old safe-deposit box for a new one, we can now also meet the strong demand for new safedeposit boxes.
37
In order to cater to the growing demand for sufficient parking space, we have since May 2012 rented the car
park next to the Cathedral from the Roman Catholic Bishopric. Our customers and guests who visit the head
office at the Henck Arronstraat can make use of this facility.
De Surinaamsche Bank is a committed supporter of the arts. Our offices and the workspaces of our employees are embellished with works of art. In the year under review, various works were purchased both at
individual and group exhibitions, as well as at the National Art Exhibition.
CONTRACT HANDLING
As its name already indicates, this department specialises in the handling – in the broadest sense of the
word – of the many types of contracts that the bank enters into with both business and private individuals.
In 2012 the central focus was on improving the efficiency of the associated processes for both external and
internal customers. Specific aspects of these processes were put under the microscope. Wherever possible and necessary, these are to be further automated, reorganised, redesigned and/or complemented and
completed.
MARKETING
Young people
Young people were central to the marketing activities in the year under review. To acquaint young people with DSB and make them more aware of our products and services, we took part in various activities
aimed at this specific target group. In addition, we took advantage of opportunities to interest them in a
career with the bank. Particularly noteworthy was our participation in the Virtual Educa International Fair,
the Information Fair for Young People in the first half of the year, and in various open days held by Higher
Vocational Educational Institutions.
In this connection, we also launched the student credit in 2012. The student credit is a financing modality
aimed at working students who are unable to pay their tuition fees in one go.
DSB I-Signer
On 10 April we launched the I-Signer. The I-Signer is a card reader that makes Internet Banking even safer.
Apart from keying in the user’s name and password, the customer must now also be in possession of the ISigner in order to make use of DSB Internet Banking. With this card reader with multi-factor authentication,
we became the first bank in Suriname to raise Internet Banking to a security level that meets the latest
international standards.
Cooperation programme
On 21 March the Trade Finance Facilitation Program (TFFP) agreement was signed between DSB and the
Inter-American Development Bank in the presence of the Governor of the Central Bank of Suriname, Mr G.
Hoefdraad. This TFFP programme is an effective instrument for stimulating economic growth by guaranteeing stable and reliable sources of trade finance. With this agreement the Inter-American Development Bank
offers our bank the opportunity to facilitate trade finance and stimulate the sale of international commercial banking products.
On 12 April DSB signed the first agreement with the International Finance Corporation. The International
Finance Corporation is part of the World Bank. The aim of this agreement is to facilitate the financing of
international trade transactions together with IFC and thus give an impulse to economic development. As
a result of the deal, DSB will receive a trade credit of USD 5 million from the IFC as part of the Global Trade
Finance Program (GTFP).
Renewed credit card
From 19 October our customers can benefit from the many new options of the DSB Classic or Gold MasterCard. Customers can now perform various DSB credit card operations via DSB ATMs, Phone Banking and
Internet Banking, while also benefiting from the special promotion programmes of MasterCard.
38
Public Relations
Our sponsoring and community development policy is notably aimed at supporting organisations dedicated
to promoting sports, art and culture, education and the environment. These organisations carry out projects
in the aforementioned areas, partly with the aid of our financial contribution. In addition, we also provided appropriate assistance to disadvantaged groups and elderly people in our society on several occasions
throughout the year.
DSB Christmas Concert
Our traditional Christmas concert was held on 21 December. This year the concert, which was also transmitted live by the TV broadcaster Apintie, was once again very well-attended, attracting about 5,500 music
lovers. The evening was a success.
HUMAN RESOURCES
In 2012 DSB employees once again put in a great effort to realise the objectives of Surinaamsche Bank N.V.
The Human Resources (HR) policy supported the objectives of our bank in various ways, including the programme to improve our services and give further shape to the desired customer experience. Extensive attention was given in this connection to the longer opening hours. In addition, HR played a prominent role
in the preservation and further development of our bank as a leading financial services provider, notably by
offering targeted training to the employees.
The workforce
18 new staff members joined the bank in 2012. The employment of seven staff members ended due to five
retirements, one departure and one death. At end-2012 the bank had 382 staff members (excl. 30 agency
personnel).
New DSB staff
In 2012 DSB welcomed the following new staff:
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Elton Chin See Hoo
Clifton Kartodikromo
Stephanie Martosoewiknjo-van Russel
Sherina Koosman
Deborah Conraad
Radha Boedhoe
Astrid Adhien
Arjan Alimoenadi
Sheraisa Ghazi
Seresia Sukhai
Graciano Tjin Kon Foek
Renato Kromowidjojo
Pravish Harangi
Jennifer Lauwerends
Jurgen Leter
Tasiana Liefen
Anoeradhadebie Biharie
Alexander van Petten
01.01.2012
01.01.2012
01.02.2012
07.05.2012
16.05.2012
01.07.2012
01.08.2012
15.11.2012
01.12.2012
01.12.2012
01.12.2012
01.12.2012
01.12.2012
01.12.2012
01.12.2012
01.12.2012
01.12.2012
01.12.2012
ICT
ICT
Risk Management
Payments & Settlements
Retail Banking
Contract Handling
Contract handling
ICT
Retail Banking
Retail Banking
Retail Banking
Retail Banking
Retail Banking
Retail Banking
Retail Banking
Retail Banking
Retail Banking
Internal Audit
Long-serving personnel
At DSB we are proud of our loyal personnel. In 2012 16 employees reached long-service milestones. Celebrations were held for the 16 employees who completed 12 1/2, 25, 30, 35 and 40 years of service with the bank.
Two persons celebrated their fortieth anniversary: Eduard Julen and Letitia Bakboord.
39
Appointments
On 1 August 2012 Mr Nawien Ghisiawan was appointed as Relationship Manager at the Corporate Banking
Department. Somewhat later in the year under review, on 1 December 2012, Ms Tirzah Keyzer was also appointed as Relationship Manager at this department. On that same date Mr Wayne Fong Ten Jing was appointed as Supervisor Retail Banking.
We congratulate these members of staff and wish them every success in their new position.
Powers of signature
In 2012 three members of staff were given A-category powers of signature, two were given C-category powers of signature and four were given the Suritrust N.V. powers of signature.
A list of the members of staff with powers of signature for the bank is contained on page 8 of this annual
report.
Training courses
Training is vital in view of the continuous growth of our bank and, as in previous years, the knowledge and
skills of our staff again received considerable attention in 2012.
In 2012 68 members of staff obtained a diploma or certificate for a specific course or training at intermediate vocational (MBO), higher vocational (HBO), post-higher vocational (post-HBO), university or postuniversity level. One member of staff received the Master of Business Administration Diploma in Management & Finance, two achieved their Bachelor of Science in Public Administration and one completed the
HBO Business Administration course. One member of staff successfully completed the Archive Conservation
Course. The aforementioned course was made possible by the National Archive of Suriname in cooperation
with the Dutch embassy. Moreover, nineteen members of staff achieved various NIBE diplomas.
Courses in Business English and Mandarin Chinese were completed by, respectively, 34 and 9 employees.
One ICT employee obtained the qualification of Microsoft Certified System Administrator. At the end of the
year under review, one member of staff also became certified as a Computer Hacking Forensic Investigator
(CHFI) for the prevention and investigation of computer crime.
Community/ Our role in society
Our role in society in providing support to young Surinamers can be illustrated as follows:
t
0OFTUVEFOUPGUIF"NTUFSEBN6OJWFSTJUZPG"QQMJFE4DJFODFT)7"
DPNQMFUFEIFSHSBEVBUJPOBTsignment with us. Two Business Administration students of the ADEK University of Suriname started on their
2-year practical business training in November. In the month of July, three IMEAO students were once again
given an opportunity to complete their one-month graduation internship at various departments.
t
'SPN.BZ%4#QBSUJDJQBUFEJOUIF&EVDBUJPOBOE$BSFFS*OGPSNBUJPO'BJSGPS:PVOH1FPQMFJO
the Flamboyant Park where information was provided to young Surinamers about the various job opportunities within our bank.
t
%VSJOHUIFTVNNFSIPMJEBZTJOTUVEFOUTXFSFPODFBHBJOPGGFSFEBOPQQPSUVOJUZUPFBSOTPmething on the side. During a two-week period 80 holiday workers performed valuable work for us.
Pension
In the course of the year under review a number of employees ended their long careers with the bank. Mr
Arthur Groenhart (Authorisation Officer) started his well-earned retirement in January 2012, followed by Mr
Wilfred Tjin A Tam (Department Manager Suritrust) and Mr Seno Tjokrosentono (Branch Manager Nickerie)
who retired in February 2012. Finally, Ms Hillary Thijm (Section Head Administration/General Affairs) retired
in October 2012. The bank thanks these loyal members of staff for their many years of service.
Collective Agreement (cao)
In 2012 the wage negotiations held between the Managing Board and De Surinaamsche Bank Workers Organisation (DSBWO) ended, after intervention of the Arbitration Council, with a wage increase of 14.5% for
the whole of Suriname. In 2013 a new Collective Agreement will be negotiated as the current agreement has
expired.
40
In memoriam
We regret to note the passing in 2012 of one colleague, Ms Leberta Karsowidjojo-Grep (5 September 2012),
and five retirees: Mr Ronald Ligeon (24 April 2012), Ms Lucie Kioe A Sen (1 May 2012), Mr Dwarkapersad Debisarun (30 July 2012), Ms Theresia Mac Donald-Tjon Sien Kie (2 November 2012) and Mr Ralph van Eer (10
December 2012).
Word of appreciation
We wish to express our gratitude and appreciation for the work that all employees of De Surinaamsche Bank
performed in the past year. We also thank our customers and associates for placing their faith in us.
Managing Board
S.L.J. Proeve
41
Waterkant 4
42
Waaggebouw
43
44
DSB | Financial statements 2012
45
Company Balance sheet at 31 December 2012 before profit appropriation
(In SRD thousands)
2012
2011
Cash
536,610
383,855
Banks
840,774
708,131
80,781
80,779
1,606
2,007
ASSETS
Treasury papers
Loans and advances:
- public sector
- private sector
1,491,738
1,212, 279
Shares
57,252
35,810
Participating interests
20,831
7,557
Property and equipments
Other assets
70,376
11,193
11,405
66,360
10,151
9,358
3,122,566
2,516,287
Prepayments and accrued income
LIABILITIES
43,905
Banks
61,757
------------------
------------------
- saving accounts
951,079
830.628
- deposits customers accounts
559,455
311,326
- customer accounts
1,230,777
1,059,080
Customers accounts:
Other liabilities
40,181
20,431
Accruals and deferred income
17,042
10,984
Provisions
47,508
29,402
2,846,042
2,261,851
-----------------Share Capital
Reserve
------------------
871
871
121,945
98,539
28
28
Revaluation reserve
70,872
57,528
38,903
35,713
192,679
Share premium reserve
232,619
---------------
3,122,566
-----------------2,516,287
Guarantees issued
74,605
46,434
Letter of credit
19,866
14,173
Managing Board
S.L.J. Proeve
Supervisory Board
S. Smit, chairman
J.J. Healy Jr.
M.J.A. Brahim
Mrs. Mr. R. Sohansingh
D.M.R. Currie
R. Blufpand
46
Company balance sheet at 31 December 2012 after profit appropriation
(In SRD thousands)
2012
2011
Cash
536,610
383,855
Banks
840,774
708,131
80,781
80,779
1,606
2,007
ASSETS
Treasury papers
Loans and advances:
- public sector
- private sector
1,491,738
1,212, 279
Shares
57,252
35,810
20,831
7,557
Property and equipment
70,376
66,360
Other assets
11,193
10,151
11,405
9,358
3,122,566
2,516,287
LIABILITIES
Banks
Customers accounts:
43,905
------------------
61,757
-----------------830,628
- saving accounts
951,079
- deposits
559,455
311,326
1,230,777
1,059,080
- customer account
Other liabilities
54,104
32,962
17,042
10,984
Provisions
47,508
29,402
2,859,965
2,274,382
-----------------Share Capital
Reserve
Share premium account
Revaluations reserve
------------------
871
871
146,925
121,721
28
28
70,872
57,528
218,696
-----------------3,122,566
180,148
-----------------2,516,287
Guarantees issued
74,605
46,434
Letters of credit
19,866
14,173
Managing Board
S.L.J. Proeve
Supervisory Board
S. Smit, chairman
J.J. Healy Jr.
M.J.A. Brahim
D.M.R. Currie
R. Blufpand
47
Company profit and loss accounts for 2012
(In SRD thousands)
2012
2011
Interest income
176,746
145,523
Interest expense
46,898
34,842
Interest margin
129,848
110,681
INCOME
Income from shares and participating interest
Commission income
3,810
4,084
21,841
17,683
6,406
6,296
161,905
138,744
Staff costs
57,249
46,829
Other administrative expenses
24,392
21,566
Results from financial transactions
Total income
EXPENSES
Depreciation
6,078
5,841
Operating expenses
87,719
74,236
14,713
11,390
Total expenses
102,432
85,626
Pre-tax profit
59,473
53,118
Taxes
20,570
17,405
Profit after taxes
38,903
35,713
5,917
5,221
PROFIT APPROPRIATION
Cash:
Interim-dividend
Final dividend
Addition to reserve
8,006
7,309
24,980
23,183
35,713
38,903
Managing Board
S.L.J. Proeve
Supervisory Board
S. Smit, chairman
J.J. Healy Jr.
M.J.A. Brahim
D.M.R. Currie
R. Blufpand
48
Consolidated balance sheet at 31 December 2012 before profit appropriation
(In SRD thousands)
2012
2011
Cash
536,654
383,891
Banks
840,774
708,131
80,781
80,779
ASSETS
Treasury papers
Loans and advances:
- public sector
- private sector
Shares
1,606
2,007
1,491,738
1,212,279
57,252
35,810
116,057
97,934
Other assets
12,232
10,239
12,960
10,813
3,150,054
2,541,883
LIABILITIES
Banks
Customer accounts:
43,905
------------------
61,757
------------------
951,079
830,628
559,455
1,230,777
1,059,080
15,476
15,231
Other liabilities
40,313
26,622
23,864
11,858
Provisions
52,566
32,702
- saving accounts
- deposits
- customer accounts
Longterm loans
2,873,530
-----------------Share capital
Reserve
Revaluation reserve
Letters of credits
2,287,447
------------------
871
871
121,945
98,539
28
28
70,872
57,528
38,903
232,619
-----------------3,150,054
Guarantees issued
311,326
74,605
19,866
35,713
192,679
-----------------2,541,883
46,434
14,173
Managing Board
S.L.J. Proeve
Supervisory Board
S. Smit, chairman
J.J. Healy Jr.
M.J.A. Brahim
D.M.R. Currie
R. Blufpand
49
Consolidated balance sheet at 31 December 2012 after profit appropriation
(In SRD thousands)
2012
2011
Cash
536,654
383,891
Banks
840,774
708,131
80,781
80,779
ASSETS
Treasury papers
Loans and advances:
- public sector
- private sector
Shares
1,606
2,007
1,491,738
1,212,279
57,252
35,810
Other assets
116,057
12,232
97,934
10,239
12,960
10,813
3,150,054
2,541,883
LIABILITIES
Banks
43,905
Customer accounts:
- saving accounts
-----------------951,079
61,757
-----------------830,628
- deposits
559,455
311,326
- customer accounts
1,230,777
1,059,080
Longterm loans
15.476
15,231
Other liabilities
54,236
39,153
23,864
11,858
Provisions
52,566
32,702
2,887,453
2,299,978
-----------------Share capital
Reserve
Revaluation reserve
------------------
871
871
146,925
121,721
28
28
70,872
57,528
218,696
-----------------3,150,054
180,148
-----------------2,541,883
Guarantees issued
74,605
46,434
Letters of credit
19,866
14,173
Managing Board
S.L.J. Proeve
Supervisory Board
S. Smit, chairman
J.J. Healy Jr.
M.J.A. Brahim
D.M.R. Currie
R. Blufpand
50
Consolidated profit and loss account for 2012
(In SRD thousands)
2012
2011
Interest income
176,746
145,523
Interest expense
46,620
34,472
Interest margin
130,126
111,051
INCOME
Income from shares
1,124
923
Commission income
30,067
25,743
6,426
6,660
167,743
144,377
Staff costs
59,649
48,970
Other administrative expenses
24,895
22,021
Results from financial transactions
Total income
EXPENSES
Depreciation
Operating expenses
6,095
5,856
90,639
76,847
16,050
12,551
106,689
89,398
Pre-tax profit
61,054
54,979
Taxes
22,151
38,903
19,266
35,713
Total exspenses
Profit after taxes
PROFIT APPROPRIATION
Cash:
Interim-dividend
Final dividend
Addition to reserve
5,917
5,221
8,006
7,309
24,980
23,183
38,903
35,713
Managing Board
S.L.J. Proeve
Supervisory Board
S. Smit, chairman
J.J. Healy Jr.
M.J.A. Brahim
D.M.R. Currie
R. Blufpand
51
Notes to the 2012 financial statements
Adoption of the financial statements
The consolidated financial statements of De Surinaamsche Bank N.V. for the year ended on 31 December 2012
were released for publication by the Managing Board after approval of the Supervisory Board on 22 March
2013. The financial statements will be presented to the General Meeting of Shareholders for adoption on
Tuesday 23 April 2013.
General information
De Surinaamsche Bank N.V., incorporated and established in Suriname, is a public limited company under
Suriname law. The address of the registered office of De Surinaamsche Bank N.V. is Henk Arronstraat 26-30.
De Surinaamsche Bank N.V is the parent organisation of Surinaamse Trustmaatschappij N.V., Surinaamse
Computer Maatschappij N.V. and Financieringsmaatschappij Paramaribo N.V. In addition, a 50% stake is
held in the joint venture DSB-Assuria Vastgoed Maatschappij N.V.
These notes relate to both the company financial statements and the consolidated financial statements.
Basis for consolidation
The consolidated balance sheet and profit and loss account include the figures of the companies in which
DSB Bank has a participating interest of 50% or more. Accordingly, the consolidation comprises the 100%
participating interests in Surinaamse Trustmaatschappij N.V., Financieringsmaatschappij Paramaribo N.V.
and Surinaamse Computer Maatschappij N.V. The assets and liabilities as well as the results of these participating interests are included in full in the consolidated balance sheet or the consolidated profit and loss
account, respectively, after elimination of inter-group relations.
The consolidation includes 50% of the figures of DSB Assuria Vastgoed Maatschappij N.V., a joint controlled
entity. The net asset value of this company at year-end 2012 was SRD 3,999,664 (2011: SRD 3,874,000).
Principle of currency translation
Receivables and debts denominated in foreign currency are translated at the Central Bank of Suriname rates
applicable on 31 December 2012. Exchange rate differences arising from the valuation of currency positions
and the results from the purchase and sale of foreign currencies are recognised in the profit and loss account under ‘Result from financial transactions’.
Principles of valuation
ASSETS
Cash
This includes legal tender in both local and foreign currencies and receivables from the Central Bank of
Suriname (CBvS). Cash is stated at nominal value.
Treasury paper
The treasury promissory notes issued by the government included in this item are stated at nominal value.
The term has been set at a maximum of 12 months, at interest rates of 8% and 9%.
Loans and advances
This item comprises corporate and consumer loans, including current account credits, hire-purchase loans
and personal loans. Where necessary, a specific provision is formed against the bad debt risk. This provision
for specific debtors is deducted from the ‘Loans and advances’ item in the balance sheet.
52
Shares
These are shares in local companies which are stated at fair value, being the stock market value taking an
impairment of 10% into account. The gain resulting from the recognition at stock market value is taken to
shareholders’ equity (Revaluation reserve), less a provision for deferred taxation. The BNETS N.V. and Multiplex N.V. shares are stated at acquisition cost.
Participating interests are stated at the net asset value as at 31 December of the financial year. Receivables
from and amounts owed to participating interests, which are also included in this item, are stated at nominal value.
The bank buildings including land are stated at fair value, based on an external appraisal made in December 2011. Depreciation is applied to bank buildings on a straight-line basis over a useful life of 40 years
(2.5% per year).
Changes in the current value of buildings and land are added/charged to the Revaluation reserve after deduction of a provision for deferred taxes on buildings at the nominal rate of tax. The Revaluation reserve is
stated separately under shareholders’ equity.
Equipments are stated at acquisition cost less straight-line depreciation on the basis of estimated useful
life, namely five years for furniture and fittings, three years for vehicles and personal computers and four
years for other computer equipment. Some of the assets shown as at balance sheet date under ‘Property
and equipment’ have been pledged to Central Bank of Suriname as mortgage security in connection with
the legal actions against our bank and the then resulting attachments. As at balance sheet date the registration of this mortgage had not been cancelled.
LIABILITIES
Customer accounts
This includes the liabilities in current account, savings and deposits. These are recognised at nominal value.
Long-term loans
Two long-term loans have been concluded by DSB Assuria Vastgoed Maatschappij N.V. for the purchase of
property. One of them concerns the site at Acaribo described previously in the report.
Provisions
This comprises provisions for deferred tax liabilities, medical costs of retired employees, liabilities towards
out-of-work former employees in connection with employment disputes and other specific risks, including
fraud risk.
The provision for deferred tax liabilities relates to the difference between the commercial and fiscal valuation of the bank buildings and shares. No deferred tax liability arises in respect of differences in the valuation of land. The deferred tax liability is calculated at the applicable nominal tax rate.
The provision for medical costs for retirees was formed to cover existing obligations to refund the health
costs of retired employees. The actuarial firm Lo Fo Wong has calculated the level of the medical costs provision which will be accrued over a number of future years bearing in mind further actuarial developments.
Staff pensions are arranged through the Stichting Pensioenfonds pension fund of De Surinaamsche Bank
N.V. The provision for pension obligations is calculated under responsibility of the actuarial firm Lo Fo
Wong. The pensionable salary is set at the start of membership and reviewed each subsequent year on 1
January. The pension liabilities are funded by means of monthly payments by DSB Bank in proportion to a
fixed percentage of 20% of the salaries. In addition, the pension fund itself contributes to this funding. A
change in the system was introduced on 1 January 2006, as a result of which employees now also make a
personal contribution of 7% of their salaries.
53
The provision for liabilities towards out-of-work former employees has been made to cover any liabilities
that might arise out of employment disputes.
The provision for fraud risk was formed to cover the excess payable in relation to, among other things,
claims in the event of fraudulent acts.
Swaps
As at 31 December 2012, De Surinaamsche Bank N.V. had outstanding currency swaps for an amount of USD
4,820,000. The obligations and liabilities in respect of the swap deals correspond in terms of amount and
maturity; these positions have accordingly been netted in the financial statements. The exchange differences relating to the currency obligation of the bank have been included under ‘Other liabilities’.
Other assets, prepayments and accrued income and liabilities
Unless stated otherwise above, assets and liabilities are stated at nominal value.
Guarantees and documentary credits
This concerns contingent liabilities that are not included in the balance sheet as their existence is contingent on the occurrence or non-occurrence of one or more uncertain events in the future without the bank
being able to exercise any significant control in this respect.
Principles for determining the result
The income and expenses are determined on the basis of the aforementioned valuation principles. Income
is recognised in the year in which the services were rendered. Expenses are recognised in the year in which
they are foreseeable.
Tax is calculated on the basis of the pre tax result at the applicable nominal tax rates, taking account of
non-tax-deductible expenses and tax-exempt income.
54
Maagdenstraat 38
55
56
Julianastraat 56
57
Company and consolidated assets after profit appropriation
Company balance sheet
(In SRD thousands)
Cash
Consolidated balance sheet
2012
2011
2012
2011
536,610
383,855
536,654
383,891
this includes legal tender and demand
deposits with the Centrale Bank of Suriname
bij de Centrale Bank van Suriname.
Analysis:
Cash in hands
103,234
110,937
103,278
110,973
Demand deposits with the Centrale Bank van Suriname
433,376
272,918
433,376
272,918
536,610
383,855
536,654
383,891
840,774
708,131
840,774
708,131
1,493,344
1,214,286
1,493,344
1,214,286
Banks
This includes receivables
from domestic and foreign banks.
Banks
This includes receivables from loans
and advances.
Analysis:
Public sector loans and advances
Private sector loans and advances
1,606
2,007
1,606
2,007
1,491,738
1,212,279
1,491,738
1,212, 279
1,493,344
1,214,286
1,493,344
1,214,286
1,606
2,007
1,606
2,007
818,499
751,660
818,499
751,660
Analysis of collaterals provided for loans
and advances:
Government guarantees
Mortgages
Shares pledged
20,034
20,042
20,034
20,042
Other collaterals
653,205
440,577
653,205
440,577
1,493,344
1,214,286
1,493,344
1,214,286
Government
0.1%
0.2%
0.1%
0.2%
Agriculture, horticulture and fisheries
2.9%
2.6%
2.9%
2.6%
Industry, forestry and mining
15.0%
15.7%
15.0%
15.7%
Trade and services
48.2%
49.0%
48.2%
49.0%
4.3%
3.7%
4.3%
3.7%
1.4%
Sector analysis of loans and advances:
Construction and installations
Transport, storage and communications
4.9%
1.4%
4.9%
House building
Other
7.1%
17.5%
8.8%
18.6%
7.1%
17.5%
8.8%
18.6%
100.0%
100.0%
100.0%
100.0%
57,252
35,810
57,252
35,810
Shares¹
¹ This concerns shares held in local companies
58
(In SRD thousands)
2012
2011
20,831
7,557
2012
2011
The company balance sheets include subsidiaries
which include participation in capital,
as well as the balance of accounts
receivables and payables on subsidiaries.
Surinaamse Trustmaatschappij N.V.,
Financierings maatschappij Paramaribo N.V.,
Surinaamse Computer Maatschappij N.V. en
DSB Assuria Vastgoed Maatschappij N.V.
(50% joint venture)
4,625
4,996
16,206
2,561
20,831
7,557
70,376
66,360
116,057
97,934
Property
59,316
57,600
104,968
89,149
Equipment
11,060
8,760
11,089
8, 785
70,376
66,360
116,057
97,934
Value on 1 january
21,954
15,507
54,046
18,182
Investments
3,099
6,447
16,661
35, 323
Revaluations
44,509
44,509
44,507
44, 507
69,562
66,463
115,214
98 , 012
(10,246)
(8,863)
(10,246)
(8, 863)
Analysis:
Share capital and reserves
Payables / Receivables
Analysis:
Property:
Deprecations
59,316
57,600
104,968
89,149
Bookvalue on 1 januari
8,760
7,925
8,785
7,961
Investments
6,995
5,412
7,016
5, 416
15,755
13,337
15,801
13, 377
(4,695)
(4,577)
(4,712)
(4, 592)
11,060
8,760
11,089
8, 785
11,193
10,151
12,232
10, 239
11,405
9,358
12,960
10, 813
Equipment:
Deprecations
Other assets
This item includes amounts which are not of
an accrued nature or which cannot be classified
under other balance sheet item. This concerns for
example, the balances of Payment transactions
still to be settled and income tax receivable.
this includes prepaid expenses
and interest receivables
59
Company and consolidated liabilities after profit appropriation
(In SRD thousands)
2012
2011
2012
2011
43,905
61,757
43,905
61,757
2,741,311
2,201,034
2,741,311
2,201,034
Savings account
951,079
830,628
951,079
830,628
Deposits
559,455
311,326
559,455
311,326
1,230,777
1,059,080
1,230,777
1,059,080
2,741,311
2,201,034
2,741,311
2,201,034
Longterm debts
--
--
15,476
15,231
Ot her liabilities
54,104
32,962
54,236
39,153
17,042
10,984
23,864
11,858
52,566
32,7 02
Banks
Comprises debts to domestic and foreign banks.
Customer accounts
includes total customer balances
held by way of current accounts,
savings accounts and deposits
Analysis:
Current account
This item consists of expenses and interest
payable at year-end
47,508
29,402
Analysis:
Provision for deferred taxation
22,575
14,981
23,113
14,984
Provision for medical expenses
24,283
13,748
24,283
13,748
500
150
286
387
500
150
286
387
Provisions
Provision for fraud risk
Provision for desputes former employees
Provision for reputation risk
Shareholder equity
--
4,520
3,297
47,508
29,402
52,566
32,7 02
218,696
180,148
218,696
--
180,148
Analysis:
Share capital
Reserves :
Revaluation reserve
Other reserve
871
871
871
871
70,872
57,528
70,872
57,528
146,953
121,749
146,953
121,749
218,696
180,148
218,696
180,148
871
871
871
871
0
0
0
0
871
871
871
871
Movements in the share capital:
Balance on 1 January
Stock didvidend from profit appropriation
Movement in reserves:
Balance on 1 January
Revaluation reserve
Addition from profit appropriation
179,277
179,277
149,240
13,568
6,854
13,568
6,854
24,980
23,183
24,980
23,183
218,696
179,277
218,696
179,277
Participants in the share capital are ASSURIA with 49%, the Republic of Suriname
with 10% and institutional and private investors with 41%.
60
149,240
Company and consolidated profit and loss account
Company
profit & loss account
(In SRD thousands)
Consolidated
2012
2011
129,848
110,681
2012
130,126
111,051
3,810
4,084
1,124
923
1,124
2,686
923
3,161
1,124
-
923
-
3,810
4,084
1,124
923
21,841
17,683
30,067
25,743
Payments
17,228
14,100
17,235
14,108
Insurance
1,377
1,295
1,790
Other services
3,236
2,288
11,042
1,664
9,971
21,841
17,683
30,067
25,743
6,406
6,296
6,426
6,660
57,249
46,829
59,649
48,970
35,111
34,170
Interest margin
2011
This item includes interest income from loans and advances,
investments and other lending and interests expense on
borrowings by the bank and customer accounts.
Income from shares and participating interests
This includes dividends received from shares in local
companies. The company P&L Account also comprises
net profit of participating interests
Analysis:
Shares
Commission income
This includes from domestic
and foreign payments, insurance and other services
Breakdown:
Results from financial transaction
This includes the results achieved
on foreign exchange dealing and
revaluation of assets/liabilities
denominated in foreign currencies.
Staff costs:
This item comprises salaries, bonuses,
social security contributions, pension
and other provisions for staff.
32,438
37,045
Pension contributions
4,187
3,307
4,400
Social security contributions and other staff costs
7,019
7,584
7,272
7,850
10,932
3,500
10,932
3,500
57,249
46,829
59,649
48,970
Breakdown: Salaries (includes bonuses etc.)
Other provisions
3,450
61
Company
(In SRD thousands)
Other administrative expenses:
Consolidated
2012
2011
2012
2011
24,392
21,566
24,895
22,021
This comprises office overheads, stationary,
automation costs, advertising costs and other general expenses.
breakdown:
6,116
5,501
6,355
Stationary
1,958
1,609
1,989
1,635
Automation costs
4,331
2,592
4,335
2,602
Communication and transport costs
2,371
2,124
2,413
2,170
9,616
9,740
9,803
9,910
24,392
21,566
24,895
22,021
6,078
5,841
6,095
5,856
Office overheads
Other
Deprecation
5,704
This item is made up of deprecation of
property and equipment.
Breakdown:
Property
1,382
1,264
1,382
1,264
Equipment
4,696
4,577
4,713
4,592
6,078
5,841
6,095
5,856
14,713
11,390
16,050
12,551
23,152
This concerns movements
in the provision for loans and advances
Breakdown:
Addition to specific provisions
21,815
24,094
Release of specific provisions
(7,102)
(12,704)
(7,102)
(12,703)
Provision for loans and advances
14,713
11,390
16,050
12,551
20,570
17,405
22,151
19,266
Taxes
This includes income tax on the pre tax result.
Tax payable on non-deductible deprecation
is charged to the provision for deferred taxation.
62
25,254
Other information
Consolidated cash flow statement 2012
(In SRD thousands)
2012
2011
Movements in cash assets
are illustrated by the cash flow statement below
Cash flow from operations
61,054
54,979
Taxation on profit
(22,151)
(19,266)
Profit after tax
38,903
35,713
Profit before tax
Deprecation
6,095
5,856
Provisions
11,990
3,029
44,598
(Increase) / decrease in receivables from banks
56,988
(132,643)
(95,783)
Increase loans and advances
Decrease / (increase) in treasury paper
(279,058)
(2)
(278,516)
659
Decrease / (increase) in other assets, prepayments and accrued income
Increase in customer accounts
(4,140)
524
540,277
365,170
Increase / (decrease) in debts to banks
(17,852)
26,434
Decrease / (decrease) in other liabilities, accruals and deferred income
27,089
(16,901)
190,659
---------------------
46,185
---------------------
(24,218)
--------------------(24,218)
(41,301)
--------------------(41,301)
Cash flow from investment activities
Investments in property and equipment
Cash flow from financing activities
Longterm loans
Cash dividend
Movement in cash assets
Cash assets at the end of the year
Cash assets at the beginning of the year
245
(13,923)
(13,678)
--------------------152,763
383,891
536,654
14,468
(12,530)
1,938
--------------------6,822
377,069
383,891
The cash flow statement had been prepared according to the indirect method. Only movements resulting in a change in the cash assets are taken
into consideration. Currency translation differences on cash assets balances in foreign currency are stated in the cash flow statement in the profit
before tax.
63
DSB | Auditor's Report
To: the General Meeting of Shareholders of De Surinaamsche Bank N.V.
AUDITOR’S REPORT
Introduction
We have audited the accompanying financial statements 2012 of De Surinaamsche Bank N.V., included on
page 46 up to and inclusive of page 63 of the annual report which comprise the company balance sheet as
at December 31, 2012, the company profit and loss account and the notes. The consolidated financial statements comprise the consolidated balance sheet as at December 31, 2012, the consolidated profit and loss
account for the year ended December 31, 2012 and the notes, comprising a summary of the accounting policies and other explanatory information.
Management’s responsibility
Management is responsible for the preparation and fair presentation of these financial statements and for
the preparation of the management board report in accordance with generally accepted accounting principles. Furthermore management is responsible for such internal control as it determines is necessary to
enable the preparation of the financial statements that are free from material misstatements, whether due
to fraud or error.
Auditors’ responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. These standards require that
we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditors’ judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error.
64
In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation
and fair presentation of the financial statements 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 entity’s
internal control. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion with respect to the financial statements
In our opinion, the financial statements give a true and fair view of the financial position of De Surinaamsche Bank N.V., as at December 31, 2012, and of its result and cash flows for the year then ended in accordance with generally accepted accounting principles.
For BDO Assurance N.V.
W.K. Achthoven RA
Partner
R. Abrahams RA
Partner
65
DSB | Addresses
Paramaribo
Hermitage
Head Office
DSB Bankshop Hermitage Mall
Henck Arronstraat 26-30
hk.Estreliastraat/ TBL Cinemas
Surinaamse Trustmaatschappij N.V.
P.O. Box 1806
Unit 27-28
(SURITRUST)
Telephone: (597) 471100
Telephone: (597) 493131
Henck Arronstraat 32
Fax:
Manager 1): Ms M.H.G. Elshot
Paramaribo
(597) 411750
(597) 477835
E-mail:
[email protected]
Website:
www.dsbbank.sr
Swift:
SURBSRPA
Subsidiaries
Telephone: (597) 420033
(597) 471100
Marowijne District
Fax:
(597) 420050
Manager:
Ms A. Bhola - Raghoebarsing
Moengo
Kwatta
Kwattaweg 226 - Hoek Washingtonstraat
Kapitein Chris Silosweg 3
Telephone: (597) 0341245/0341220
Manager:
G.E. Bendt
Dr. J.F. Nassylaan 53-55
Telephone: (597) 440468 / 471100
Manager 1): Ms M. Bergraaf-Tan a Kiam
Nieuwe Haven
Nickerie District
Paramaribo
Telephone: (597) 471100 / 424186
Nieuw Nickerie
Fax:
(597) 472132
Landingstraat 6
Manager:
Mr J. Chen Poun Joe
P.O. Box 11
Van ‘t Hogerhuysstraat 62
Telephone: (597) 0231381 / 0231311
Telephone: (597) 402100 / 471100
Fax:
(597) 0231884
Manager 1):Ms S. Edam - Morsen
Manager:
R. A. Kaliar
Ma Retraite
Surinaamse Computer
Maatschappij N.V.
Para District
Zanderij
DSB Assuria Vastgoed
Maatschappij N.V. (jointcontrol)
Henck Arronstraat 32
Paramaribo
Telephone:
(597) 420033
Coronastraat 4 - Hoek Plutostraat
Arrival hall Johan Adolf Pengel Luchthaven
Telephone: (597) 451345 / 471100
Telephone: (597) 0325308
Fax:
(597) 420050
Manager 1):Mr H. Sylvester
Fax:
Manager:
Mr L.A.E. Budel
Website:
www.dsbbank.sr
Internet Banking:
https://my.dsbbank.sr
(597) 0325307
(597) 471100
Manager 1): Ms L. Koenders
Kasabaholo
Kasabaholoweg 29
Wanica District
Telephone: (597) 431541 / 431788 / 471100
Lelydorp
Phone Banking:
900 - MYDSB (69372)
Manager 1):Ms J. Chang - Sim A Sjoei
Indira Gandhiweg 506
Callcenter:
471100 ext. 279, 307, 321
Telephone: (597) 0366112
Fax:
(597) 0368647
Manager:
Mevr. N. Flu-Blom
66
Edited:
Marketing De Surinaamsche Bank N.V.
Design :
Stradius
Offsetdrukkerij Westfort N.V.
Graphic design:
Drukkerij Leo Victor
Photograhy:
Offsetdrukkerij Westfort N.V.
Dhr. R. Chan
Stichting Stadsherstel Paramaribo
Horacio Stuart ( www.thisisjohndoe.com)
Dhr. C. van der Vossen
Translation:
Bosch & Bosch Translation and Copy, Amsterdam
With thanks to:
Mr T. Smit
Mr S. Fokké
Ms F. Kuenen
Mr M. Bang A Foe
Mr C. van der Vossen
Ms M. Elias-Chang
Ms K. Moniz
Stichting Gebouwd Erfgoed Suriname
Stichting Waaggebouw
Nola Hatterman Art Academy

DSB | Annual Report 2012

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