June 18, 2007

REVIEW OF 2006 AUDITED FINANCIAL PERFORMANCE

Balance Sheet

CIB’s total assets increased by 27.8% during 2006 to end the financial year at $12.2 billion. Leading the growth in assets was the investment portfolio, which expanded by 28.8%, while loans and advances increased by only 7.3% to close the year at $1.36 billion. The Bank’s investment assets increased by $2.56 billion for the year.

Sundry debtors and prepayments also showed relatively strong growth of 38.2% for the year to stand at $646.6 million as at 2006 December 31.

Total liabilities grew by $2.48 billion or 28.5% to record a balance of $11.2 billion for the year. In nominal terms, fixed deposits was the biggest contributor ending the year at $5.35 billion, an increase of 17% or $779.2 million over the previous year. Short- and medium-term borrowing increased by 40.6%, while creditors and accruals expanded moderately by 13.1%.

Issued share capital remained unchanged during the year 2006 at $286 million. Total shareholders' equity increased by 24.7% during the period to end December 2006 at $1.02 billion.

Income Statement

Total income for the year ended 2006 December 31 was $513.4 million, which represents a year-on-year increase of 4.6%. Investment income remained the key revenue driver, growing by 55% or $125.4 million. Interest income showed moderate growth of $9.2 million, a year-on-year increase of 11.4%. Other income declined by $56 million from the previous year to settle at $125.6 million.

Total expenses for 2006 were $533.6 million, which represent a growth of 15.6%. Interest expense increased by 23.2% during the period, while other operating expenses recorded an almost 11% decline.

The net effect of the Bank’s performance for 2006 was an after tax profit of $169.9 million, a decline of 45.3% from its previous year’s position.

Financial Ratios

As at 2006 December 31, the Return on Assets and the Return on Shareholders’ Equity were estimated at 1.25% and 15.02% respectively, compared to the 3.2% and 36.6% reported as at 2005 December 31.