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DSB | Annual Report 2012
Julianastraat 56
DSB | Annual Report 2012
DSB | Annual Report 2012 3
Involved
Involved, this corporate value reflects our deep and geniune interest in our society, nature and environ-ment.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 pre-serve 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 gene-rations 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
4 DSB | Annual Report 2012
Contents
Vision, Mission en Corporate Values 7
Powers of signature 8
Organisational chart 11
Report of the Supervisory Board 13
Five-year consolidated key figures 16
Report of the Managing Board
Macro-economic review 18
Exchange rates 23
The bank's operations 26
Financial statement 2012
Company balance sheet before profit appropriation as at 31 december 2012 46
Company balance sheet after profit appropriation as at 31 December 2012 47
Company profit and loss account for the year 2012 48
Consolidated balance sheet before profit appropriation as at 31 December 2012 49
Consolidated balance sheet after profit appropriation as at 31 December 2012 50
Consolidated profit and loss account for the year 2012 51
Notes to the financial statements 2012 52
Assets, company and consolidated balance sheet after profit appropriation 58
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 64
Addresses 66
DSB | Annual Report 2012 5
Plantation Peperpot
6 DSB | Annual Report 2012
DSB | VisionDe Surinaamsche Bank is the best bank for Suriname.
DSB | MissionWith deep roots in the Surinamese community, De Surinaamsche Bank is a customer-focused bank that of-fers 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
InvolvementBeing 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 fa-mily member, involved with colleagues, customers and the community, caring about nature and the envi-ronment. 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.
AmbitionChallenge 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 soluti-ons within the bank and in the market.
IntegrityIntegrity 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 regula-tions. It also means doing what you say.
ProfessionalismThe 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. Acknowled-ging your own limitations and expressing yourself respectfully. Keeping calm and explaining what is pos-sible 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 awarenessYou 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 awa-reness 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 ser-vice provision. Being alert in your thinking and action, reviewing the neatness, accuracy and speed of your work.
DSB | Annual Report 2012 7
1 Amatnoerngalim U.S. Ms Senior Customer Representative C2 Amatsoemarto A.S. Ms Section Head Processing Contract Handling B3 Atmidi-Djasmadie E.S. Ms Customer Representative C4 Bakboord-Satimin P.R. Ms Customer Representative C5 Bel P.M. Senior Relationship Manager B6 Bendt G.E. Branch Manager Moengo B7 Berenos-Bishesar S. Ms Customer Representative Nickerie C8 Bergraaf-Tan A Kiam M.B. Ms Branch Manager Kwatta B9 Bhagwandin P.A. Department Manager Compliance A10 Bhola-Raghoebarsing A. Ms Department Manager Suritrust A11 Blount J. Ms Customer Representative C12 Brussel van J. Senior Customer Representative C13 Chang-Sim A Sjoei I.G. Ms Branch Manager Kasabaholo B14 Colli S.M. Section Head Insurance C15 Debs Y. Ms Section Head Salary Administration & Compensation A16 Diepenbos van S. Ms Department Manager Marketing B17 Djajadi P. Sector Head Transfers C18 Edam-Morsen S.A. Ms Branch Manager Nieuwe Haven B19 Elshot M.H.G. Ms Branch Manager Bankshop Hermitage mall C20 Flu-Blom, N. Ms Branch Manager Lelydorp B21 Fung A Loi L. Custody Employee C22 Ghisaidoobe A. Section Head Card Services C23 Gordon-Dover C.A.M. Ms Senior Customer Representative C24 Heerenveen P.I. Ms Department Manager Contract Handling A25 Helstone S.H. Senior Customer Representative C26 Henar H.L. Chief Commercial Officer A27 Hijlaard I. Section Head Support & Services-ICT B28 Hijlaard-Chin D.S. Ms Section Head Customer Desk Retail Banking A29 Kaliar R.A. Branch Manager Nickerie A30 Kalipersad M. Senior Relationship Manager Nickerie B31 Kallan N.F.A. Senior Relationship Manager B32 Karimbux J. Section Head Foreign Transfer C33 Kartopawiro-Arsomedjo S. Ms Customer Representative C34 Kartomoehamat-Amatdjimirin F.M. Ms Customer Representative C35 Kartoredjo C. Ms Senior Customer Representative C36 Kasnawi-Kasanpawiro W.F. Ms Senior Customer Representative C37 Kasto-Notopawiro S. Ms Senior Relationship Manager A38 Kertodikromo M.L. Ms Relationship Manager B39 Ketwaru-Boedhoe U. Ms Department Manager Corporate Banking A40 Kom de J.M. Ms Customer Representative C
DSB | Power of signature 1)
8 DSB | Annual Report 2012
41 Koosman M.M.S. Section Head Treasury B42 Li Fo Sjoe-Lion Sjin Tjoe A. Ms. Legal Officer B43 Lie Tjauw J. H. Chief Operating Officer A44 Lie-Ten S.C. Ms Customer Representative C45 Lo Fo Wong G.H. Ms Assistant Treasurer B46 Loor M.P. Chief Financial Officer A47 Mahindre Singh J.M.M. Ms Customer Representative C48 Marjanom-Tjokrosentono J. Ms Senior Customer Representative C49 Martodimedjo E.M. Branch Manager A50 Mentowidjojo V.N. Ms Customer Representative C51 Moerasim A.S. Ms Insurance Employee C52 Oostburg A.C.M. Department Manager Retail Banking A53 Pawiroredjo-Tjon A Pauw G.A. Ms Department Manager Payments & Settlements A54 Peneux M.S.A. Ms Human Resources Officer B55 Persad-Mohan S.L. Ms Relationship Manager B56 Proeve S.L.J. Chief Executive Officer, CEO A57 Pultoo D.M. Senior Relationship Manager B58 Ramnath H.S. Senior Relationship Manager A59 Redmount-Perk H.C. Ms Customer Representative C60 Reigman-Lieveld R.T. Ms Customer Representative C61 Rellum H.A.J. Ms Department Manager General Affairs A62 Rosheuvel R.G.J. Senior Relationship Manager B63 Setrokarijo W. Ms Senior Customer Representative C64 Sewberath Misser H.H. Senior Relationship Manager A65 Sodirijo-Lalji M.J. Ms Senior Customer Representative C66 Soesman-Blinker M.M. Ms Senior Customer Representative C67 Soesman-Chelius K.B. Ms Senior Customer Representative C68 Stolk G.M. Ms Senior Customer Representative C69 Sylvester H.W. Branch Manager Ma Retraite B70 Tan A Kiam M.E. Ms Senior Customer Representative C71 Tijndaal M.R. Customer Representative C72 Vaseur K.C.A. Ms Department Manager Human Resources A73 Veira-Klosteren B. Ms Head Teller Front Office C74 Waidoe W. Relationship Manager Nickerie B75 Waterval-Benjamin, D. Ms Senior Customer Representative C76 Wiroredjo D.I. Ms Senior Customer Representative C77 Wolff A.E. Section Head Cash Retail Banking B78 Wong Chung I.H. Department Manager Financial Restructuring & Recovery A79 Wouden E. Section Head Bills C
1) Situation as at 22 March 2013A = General power of signatureB = Limited power of signatureC = Limited power of signature for specific products
DSB | Annual Report 2012 9
DSB | Managementteam
10 DSB | Annual Report 2012
DSB | Organisational chart 1)
1) Situation as at 22 March 20132) Presently in charge of the department.A= General power of signatureB= Limited power of signature
Chief Operating Officer Chief Commercial OfficerChief Financial Officer
J.H. Lie-Tjauw MBA (A) H.L. Henar (A)M.P. Loor MA (A)
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
Human Resources Internal Audit
Secretariat
Suritrust
Legal Affairs & Compliance
Branch Nieuw Nickerie
S.L.J. Proeve (A)
Mrs K.C.A. Vaseur (A) A.C. Martopawiro
Mrs S. Boetius
Mrs A. Bhola - Raghoebarsingh MBA (A)
P.A. Bhagwandin CAMS (A)
R. Kaliar (A)
Corporate Banking
Retail Banking
Marketing
Mrs U. Ketwaru - Boedhoe MBA (A)
A.C.M. Oostburg (A)
Mrs S. van Diepenbos B.HA (B)
Financial Restructuring& Recovery
I. H. Wong Chung MBA (A)
Contract Handling
Payments & Settlements
ICT
Mrs P. I. Heerenveen MBA (A)
Mrs G.A. Pawiroredjo - Tjon A Pauw (A)
J. Chen Poun Joe
Accounting & Reporting
Risk Management
General Affairs
Treasury
Mrs W. Slagveer-Ramautarsing MBA
A.A. Sabiran B.Sc.
Mrs. H.A.J. Rellum (A)
Mrs G.H. Lo Fo Wong 2) (B)
2)
DSB | Annual Report 2012 11
DSB | Supervisory Board
S. Smit, chairmanJ.J. Healy Jr. M.J.A. BrahimMrs R. Sohansingh D.M.R. CurrieR. Blufpand
12 DSB | Annual Report 2012
General
Corporate GovernanceWithin the framework of sound Corporate Governance, a company is defined as a long-term partner-ship 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. Compliance with and enforcement of the code This comprises principles relating to the assurance of compliance and enforcement,II. 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,III. 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,IV. The General Meeting of Shareholders This comprises principles relating to, among other things, the powers of and the provision of information to shareholders,V. 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 deter-mining 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 manage-ment 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 involve-ment 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.
DSB | Report of the Supervisory Board
DSB | Annual Report 2012 13
Consultation and decision-makingThe 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 let-ter, 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 expendi-ture 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 CommitteeThe 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 mi-nutes of the meetings.
The Audit Committee meets at least once every quarter to discuss diverse topics including: Risk Ma-nagement, Internal Controls, Compliance, Asset Management, IT Governance & Controls, Enterprise-wide Risk Management, and the year plans of the Internal Audit, Risk Management and Legal & Com-pliance Departments.
The audit reports of the Internal Audit Department were dealt with and the staffing of the audit de-partments 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 BoardThe 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:
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 ena-bles 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%.
14 DSB | Annual Report 2012
Financial statements and proposal for profit appropriationIn 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 ac-companying 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 state-ments will serve to discharge the members of the Managing Board for their management of the com-pany’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.
AppointmentsMessrs M.J.A. Brahim and D.M.R. Currie are due to step down by rotation in accordance with the reti-rement 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 remu-neration is SRD 102,383 per year and was last adopted on 29 March 2012.
Expression of thanksWe 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 BoardS. Smit, chairmanJ.J. Healy Jr.M.J.A. BrahimMs R. SohansinghD.M.R. CurrieR. Blufpand
DSB | Annual Report 2012 15
DSB | Five-year consolidated key figures(in SRD thousands except per share data and employees)
Net interest income
Other income
Total income
Operating expenses
Provision for loan losses
Operating profit before taxes
Net profit after taxation
Dividend
Balance sheet
Cash
Banks (receivables)
Loans and advances
Other assets
Shareholder’s equity
Banks (liabilities)
Customer accounts
Other liabilities
Balance sheet total
Key ratio’s (in %)
Return on Equity
Return on Assets
Exploitation ratio
Capital ratio
BIS-ratio
Net profit per share Dividend per share: cash
stock
Per share data
Dividend pay out ratio (%)
Price/earnings ratio
Employees
Personnel expenses/total income
Personnel expenses/total expenses
Profit ratio
Shareholder’s equity
Market price
2008
70,086
24,726
94,812
52,519
6,460
22,734
8,006
133,832
721,359
129,283
111,015
15,174
1,256,679
1,451,903
22.1
1.6
9.9
2.6
0.9
-
7.7
181
35,833
69,035
467,429
34.5
55.4
44.6
35.2
12.8
20.0
7.7
353
2009
68,531
26,486
95,017
56,009
7,682
20,904
8,006
319,064
838,313
135,599
125,395
58,987
1,692,376
1,946,798
17.7
1.2
9.8
2.4
0.9
-
6,4
170
31,326
70,040
653,822
36.2
54.1
41.1
38.3
14.4
25.5
10.6
349
33,326
76,847
98,944
2011
111,051
144,377
12,551
35,713
12,530
383,891
1,214,286
235,575
180,148
61,757
2,201,034
2,541,883
21.6
1.5
10.5
4.1
1.4
-
7.1
188
54,979
708,131
34.0
54.8
46.8
35.1
20.7
71.0
17.3
371
2012
130,126
37,617
167,743
90,639
16,050
38,903
13,923
536,654
1,493,344
279,282
218,696
43,905
2,741,311
3,150,054
19.51
1.37
10.31
4.47
1.60
-
6.94
185
61,054
146,142
840,774
35.56
55.91
45.97
35.79
25.13
96.75
21.55
382
2010
89,120
26,977
116,097
62,610
10,875
27,414
9,572
377,069
935,770
190,603
150,111
35,323
1,835,864
2,115,790
19.9
1.4
10.7
3.2
1.1
-
7.1
185
42,612
94,492
612,348
34.8
54.9
46.1
34.9
17.3
40.0
12,7
358
Results
16 DSB | Annual Report 2012
DSB | Report of the Managing Board
M.P. Loor S.L.J. Proeve J.H. Lie-Tjauw H.L. Henar
DSB | Annual Report 2012 17
Report of the Managing BoardWe 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 developmentsThe 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 consequen-ces of the economic recession.
National developmentsIn 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 Suri-name 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 New-mont 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:
International payments and exchange rate developmentsThe calm in the foreign exchange market as observed in 2011 continued in 2012. The Central Bank of Suri-name was not required to carry out any interventions in the year under review. The Central Bank of Su-riname 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 developmentsAt 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 invest-ments in local currency, by contrast, did show an increase. This same picture presented itself with demand deposits.
DSB | Macro-economic review
18 DSB | Annual Report 2012
Table 1 CBvS selling rate for USD banknotes in SRD in 2012
1/1 31/3 30/6 30/9 31/12
3.350 3.350 3.350 3.350 3.350
Desription 2010
Table 2
Domestic money supply
Selling rate
Inflation in % 10.3
Average USD rate (free market) 2.775
Relative exchange rate movement 0
(x SRD mln.)
2007
3,595.2
8.3
2.775
0
2008
9.4
2.775
0
2009
1.3
2.775
0
2011
3.35
20.7%
Source: Centrale Bank van Suriname
General bureau of statistics
* Provisional figures
Source: Centrale Bank van Suriname
6,710.0 5,525.2 4,994.8 4,336.6
Monetary depreciation
2012*
3.35
8,128.5
4.4
0
15.3
Table 3 Value and composition of the monetary reserve (in USD mln.)
Description
Foreign exchange exposure
Gold
Other
Source: Centrale Bank van Suriname* Provisional figures to end December 2012
Total
2012*
834.9
123.3
50.2
1,008.4
2008
486.9
40.6
75.0
602.5
2009
479.6
60.4
117.0
657.0
2010
491.4
89.1
110.3
690.8
2011
578.2
108.5
130.2
816.9
Source: Centrale Bank van Suriname* Provisional figures to end of December 2012
Table 4 Domestic money supply (in SRD mln.)
Description
Notes and coins
(of which foreign currency)
Total primary liquidities (M1)
Other deposits
Securities
Domestic money supply (M2)
Monetary reserve in % of
M1
M2
2012*
864.1
3,459.1
1,686.2
4,305.3
3,701.2
23
8,128.5
2008
485.1
1,946.4
1,090.1
2,431.4
1,855.0
27
4,333.9
2009
587,2
2,087,9
1,001,0
2,675,1
2,255,8
27
4,992,0
2010
687,1
2,315,7
1,034,4
3,002,9
2,441,3
25
5,524,2
2011
707.9
2,838.6
1,467.2
3,546.5
3,055.6
2312 15141412
6,710.0
122.1 47.561,180108
Demands and deposits
2007
432.6
1,504.6
768.0
1,937.2
1,613.8
23
3,595.2
12
44.2
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 over-drafts 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 De-cember 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 paymentsAt the end of December 2012 the current account balance was USD 241.3 million. The total balance of pay-ments 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.
DSB | Annual Report 2012 19
Government financesThe 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 domes-tic and the foreign debt position of the state shall remain within the applicable limits. Moreover, the bud-get 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 5 Balance of payments on a cash basis (in USD mln.)
Description
Export of goods
Import of goods
Balance invisible ¹)
Current account balance
Capital account balance
Items still to be published ²)
Movements international reserves 3)
Trade balance
Source: Centrale Bank van Suriname *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. en. 3) excludes revaluation of monetary gold and SRD a minus indicates an increase in reserves
2008
1,743.5
1,406.7
336.8
-12.1
324.7
-433.9
308.4
199.2
2009
1,401,.8
1,390.7
11.1
100.2
111.3
-88.4
57.4
88.3
2010
2,084.1
1,397.9
686.2
-35.4
650.8
-820.1
203.1
33.8
2011
2,466.7
1,679.1
787.6
-536.5
251.1
-578.4
201.2
2012*
2,563.4
1,782.4
781.1
-539.8
241.3
191.5 -126.1
-988.4
555.6
Description
Revenues and gifts
Current revenues
Total tax revenues
- Direct taxes
- Indirect taxes
Non-tax revenues
Gifts
Expenditures and loans
Current expenditures
- Wages and salaries
- Other goods and services
- Subsidies and grants
- Interest
Total capital expenditures
Capital expenditures
Gifts
Current account defecit/surplus
Total defecit/surplus (incl. redemp.)
GDP (x SRD 1 mln.)
Current a/c defecit/surplus as %GDP
2011*2012*2013¹)
4,654.3
Table 6 The draft budget (in mln. SRD)
Source: Ministry of Finance, Financial Memorandum 2013
*adjusted figures
¹) provisional figures
4,646.5
3,457.2
1,687.0
1,770.2
1,189.3
7.8
5,659.3
4,387.0
1,437.1
1,478.8
1,272.3
1,264.5
7.8
259.5
-1,005.0
16,000.2
-6.3
1,401.1
70.0
3,851.7
3,737.3
2,833.8
1,432.1
1,401.7
903.6
114.4
5,312.6
3,609.4
1,437.1
894.9
1,703.2
1,588.8
114.4
128.0
-1,460.9
14,526.7
-10.1
1,123.9
153.5
3,232.6
2,870.5
2,196.1
1,080.5
1,115.6
674.4
362.1
4,734.6
3,251.1
1,423.6
764.6
1,483.5
1,121.4
362.1
-380.6
-1,502.0
12,775.0
-11.8
875.6
187.3
Loans
20 DSB | Annual Report 2012
National debtThe National Debt Act (SB 2002 no. 27) sets out how the government is required to classify domestic and fo-reign debt components. The National Debt Act also stipulates the following statutory ceilings for borrowing:
At the end of June 2012 the total debt/GDP ratio was 27.5, while that of the domestic and foreign debt com-ponents 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.
Description
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
Payments arrears to companies
Claimed guarantees
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
2007
230.6
243.4
138.9
0.0
89.1
n.b.
3.1
21
29
0
765.2
2008
132.7
266.7
130.6
7.8
92.5
7.1
3.1
22.6
257.2
1.6
914.7
2009
112.9
527.5
125.0
6.6
140.8
n.b.
3.1
22.9
195.6
10.1
1,144.5
2010*
221.6
761.2
119.5
5.5
186.6
0.7
0.8
22.6
174.9
6.6
1,499.3
Tabel 7Gross domestic debt by different debt components from 2007-june 2012 (in SRD mln.)
Source: Ministry of Finance, Financial Memorandum 2013
*Provisional figures
n.a. = not available
2011*
209.0
744.4
113.9
5.1
273.5
0.9
0.8
27.0
140.7
7.9
1,522.3
june 2012*
219.8
842.6
111.6
5.1
282.6
n.b.
0.8
25.2
116.4
9.6
1,613.7
Description 2010*
Table 8
2007 200820092011*
Source: Ministry of Finance, Financial Memorandum 2013* Provisional figures
Total gross domestic and foreign debt in USD millionon a cash basis according to the National Debt act
Domestic debt 454.4
701.7
1,156.1
3.35
539.9
648.8
1,188.7
2.78
411.7
645.7
1,057.4
2.78
329
643.4
972.3
2.78
227.7
438.6
666.3
2.78
Foreign debt
Total
Exchange rates
2012*
481.7
671.5
1,153.2
3.35
DSB | Annual Report 2012 21
Other economic developments
OilStaatsolie 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.
GoldThe 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.
BauxiteWe gratefully made use of the figures of the Suriname Bauxite Institute in this report. The figures at year-end 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 continu-ation of this trend can be absorbed.
AgricultureAs 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 sectorsFinally, we can mention that the initiated construction of a power station on Saramaccastraat in Parama-ribo 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 Suri-name.
As a corollary of the real growth that the Suriname economy is currently undergoing, we noticed a remarka-ble increase in investments in the transport, construction and the industrial sectors in 2012.
Description
Bauxite
Alumina
Production in metric tonnes Export in metric tonnes Export in USD mln.
Source: Bauxite Institute Suriname
*Provisional figures
2011
1,421,464
3,223,888 0
1,505,868
2010
440.4
0
2010
1,486,449
3,103,588
2010
1,411,436
0
2011
490.9
0
2011
Table 9 Production and export data for the bauxite sector
2012*
2,908,426
1,202,805
0
2012*
1,202,236
2012*
0
364.9
22 DSB | Annual Report 2012
DSB | Currency information
Exchange ratesCentrale Bank van Suriname
as at 31 December 2012
Bills, cheques and transfers Bank notes
Foreign currency buying selling buying selling
US Dollar (USD)
Euro (EUR)
Pond Sterling (GBP)
Aruban Florin (AWG)
Brazilian Real (BRL)
Trinidad & Tobago Dollar (TTD)
Barbados Dollar (BBD)
Eastern Caribbean Dollar (XCD)
Guyana Dollar (per 100 GYD)
Neth. Ant. Guilder (ANG)
3.250
4.284
5.244
1.807
1.807
1.567
0.501
1.614
1.194
1.558
3.350
4.416
5.406
1.884
1.884
1.640
0.522
1.675
1.240
1.630
3.250
4.272
5.208
1.807
1.807
1.562
0.496
1.609
1.189
1.553
3.350
4.426
5.416
1.884
1.884
1.640
0.522
1,675
1.240
1.630
The above rates are recommended ratesSource: Centrale Bank van Suriname
Month
January
February
March
April
May
June
July
August
September
October
November
December
Selling rate
USD
3.350
3.350
3.350
3.350
3.350
3.350
3.350
3.350
3.350
3.350
3.350
3.350
Selling rate
EURO
Source: De Surinaamsche Bank N.V.
Denomination
1,688.63
3,377.26
16,886.11
33,772.23
168,861.14
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.
Source: Centrale Bank van Suriname
Sales/repurchase value of Powisi gold certificates at 31 December 2012
Price trend on the free currency market in 2012 (at the end of the month)
Sur. Dollar (SRD)
5 gram
10 gram
50 gram
100 gram
500 gram
1,000 gram
4.338
4.437
4.394
4.423
4.309
4.195
4.130
4.158
4.310
4.358
4.313
4.408
DSB | Annual Report 2012 23
24 DSB | Annual Report 2012
DSB | The bank's operations
DSB | Annual Report 2012 25
DSB | The bank's operationsTo our shareholders
GeneralIn 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 co-lumns, 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 statementsAs 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 appropriationOn the asset side, loans and deposits – a heading that covers lending and investments in Suriname trea-sury 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 end-2011. The bank’s liabilities consist mainly of assets entrusted to the bank by its customers (‘customer depo-sits’) 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 com-ponent 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 end-2011 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 ai-med 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 DSB | Annual Report 2012
Consolidated balance sheet (x SRD 1,000) Capital and reserves (x SRD 1,000)
Consolidated profit and loss accountIn 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 addi-tion 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.
0
50,000
100,000
150,000
200,000
250,000
2008 2009 2010 2011 2012
111,015125,395
150,111
180,148
218,614
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2008 2009 2010 2011 2012
22,734 20,904
27,414
35,713
38,903
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
2008 2009 2010 2011 2012
1,451,903
1,946,7982,115,790
2,541,883
3,150,054
Net profits (x SRD 1,000)
DSB | Annual Report 2012 27
CORPORATE BANKINGCorporate 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 pro-ducts 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.
LendingLending has grown in conformity with our expectations, which is partly a reflection of the economic up-turn 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 internati-onal payment transactions for our clients.
The chart below indicates the share of the various sectors in the credit portfolio, including treasury paper.
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 developmentsOur 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.
Agricultural sector 2%
Fisheries 0% (2011: 0%)Mining 3% (2011:2%)
Industry 12% (2011:13%)
Construc on 4% (2011:3%)
Housing 7%(2011:8%)
Electricity/Gas en Water 1%(2011: 1%)
Trade 33%(2011: 34%)
Transport/ storage and communica on 5%
(2011: 3%)
Services 14%(2011: 13%)
Other 14%(2011: 14%)
Treasury Paper 5%(2011:6%)
Public sector 0%(2011: 0%)
S( ) 31 December 2012
(2011:2%)
28 DSB | Annual Report 2012
ProspectsVarious 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 BANKINGOur services to consumers are primarily provided via the Retail Banking Department. Expansion and rein-forcement of both the physical and electronic distribution network received a lot of attention in the year under review.
New-build developmentsThe 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 channelsRegarding 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 peopleTo 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 deser-ves 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 BankThe 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.
CreditcardOur credit card services were raised to a higher level when we became the only bank in Suriname that car-ries 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 informa-tion can be viewed at all times via these electronic distribution channels and via Phone Banking.
Safe-deposit boxesThe 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 im-plemented innovations in this area.
DSB | Annual Report 2012 29
NickerieIn 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 edu-cation 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.
MoengoOur 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 & SETTLEMENTSThe 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 paymentsIn 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 instructi-ons.
We can now also send bank statements via SW IFT for our business customers who form part of a multinati-onal 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 rene-wed 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 com-pared 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 expor-ters, want extra security regarding the delivery of goods by the supplier or payment by the customer.
30 DSB | Annual Report 2012
Electronic distribution channels and servicesOur 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 distri-bution 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 transac-tions 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 au-thentication’ 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 transac-tions 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.
TREASURYGiven 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 cur-rency 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.
DSB | Annual Report 2012 31
SURITRUSTSurinaamse 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 instituti-onal 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 2010Number of asset management customers 186 208 201Assets under management (x SRD 1,000) 474,004 438,031 374,109Average per client (x SRD 1,000) 2,548 2,106 1,861Number of debtors 4,441 4,447 4,075Outstanding deb. amount (x SRD 1,000) 410,749 400,873 344,802
Saving accounts34.7%
(2011: 37.7%
Term deposits 20.4%
(2011: 14.2%)
Demand deposits 44.9%
(2011: 48.1%)
SRD 52.0 %(2011: 49.2%)
Composition of credit portfolio in SRD and foreign currency as at 31 December 2012
Composition of funds raised as at 31 December 2012
foreign currency 48.0%(2011:50.8%)
32 DSB | Annual Report 2012
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 un-der 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 programmeThe 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 programmeAfter 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 registrationsThe exclusive right to carry a trademark is obtained by registering this trademark at the appropriate au-thority, 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 ProgramThe 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 gene-ral 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 num-ber 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).
DSB | Annual Report 2012 33
Support Foundation for Private Employees in SurinameAt 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 pro-gramme.
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 organi-sations 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 confe-rence 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 develop-ment, 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 conti-nued 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 DSB | Annual Report 2012
RISK MANAGEMENTThe 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 pro-portions. 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-re-lated 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 manage-ment measures included the overweighting of other investment instruments and the mitigation of concen-tration 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 fo-cus 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 Ma-naging Board and the Audit Committee.
The policy on Enterprise-wide Risk Management was developed further by deepening the ‘3 Lines of De-fence’ model. The specific outcome of this process is the alignment of Risk Management, Legal & Compli-ance 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 monito-ring 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 & COMPLIANCEIn the year under review we continued to tighten our policy rules and procedures aimed at the strict obser-vance 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 Ser-vices) 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.
DSB | Annual Report 2012 35
INTERNAL AUDIT DEPARTMENTThe principal task of the Internal Audit Department (IAD) within our banking institution is to provide as-surance 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 ex-pected 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 assu-rance 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 TECHNOLOGYIn 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 & Communi-cation Technology (ICT).
As announced in 2011 the Multi-Factor Authentication facility was introduced under the product name I-Signer 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 cus-tomers 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 num-ber.
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 possi-ble 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 DSB | Annual Report 2012
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 con-crete 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 profi-tability 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 connec-tion, 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 AFFAIRSIn the year under review the maintenance, renovation, modernisation and construction of our offices con-tinued 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. Lucht-havenbeheer 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 buil-ding 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 ex-change their old safe-deposit box for a new one, we can now also meet the strong demand for new safe-deposit boxes.
DSB | Annual Report 2012 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 em-ployees 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 HANDLINGAs 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 possi-ble and necessary, these are to be further automated, reorganised, redesigned and/or complemented and completed.
MARKETINGYoung peopleYoung people were central to the marketing activities in the year under review. To acquaint young peo-ple 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-SignerOn 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 I-Signer 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 programmeOn 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 guarantee-ing 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 commer-cial 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 cardFrom 19 October our customers can benefit from the many new options of the DSB Classic or Gold Mas-terCard. 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 DSB | Annual Report 2012
Public RelationsOur 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 provi-ded appropriate assistance to disadvantaged groups and elderly people in our society on several occasions throughout the year.
DSB Christmas ConcertOur traditional Christmas concert was held on 21 December. This year the concert, which was also transmit-ted live by the TV broadcaster Apintie, was once again very well-attended, attracting about 5,500 music lovers. The evening was a success.
HUMAN RESOURCESIn 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 pro-gramme to improve our services and give further shape to the desired customer experience. Extensive at-tention 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 staffIn 2012 DSB welcomed the following new staff: 1 Elton Chin See Hoo 01.01.2012 ICT2 Clifton Kartodikromo 01.01.2012 ICT3 Stephanie Martosoewiknjo-van Russel 01.02.2012 Risk Management4 Sherina Koosman 07.05.2012 Payments & Settlements5 Deborah Conraad 16.05.2012 Retail Banking6 Radha Boedhoe 01.07.2012 Contract Handling7 Astrid Adhien 01.08.2012 Contract handling8 Arjan Alimoenadi 15.11.2012 ICT9 Sheraisa Ghazi 01.12.2012 Retail Banking10 Seresia Sukhai 01.12.2012 Retail Banking11 Graciano Tjin Kon Foek 01.12.2012 Retail Banking12 Renato Kromowidjojo 01.12.2012 Retail Banking13 Pravish Harangi 01.12.2012 Retail Banking14 Jennifer Lauwerends 01.12.2012 Retail Banking15 Jurgen Leter 01.12.2012 Retail Banking16 Tasiana Liefen 01.12.2012 Retail Banking17 Anoeradhadebie Biharie 01.12.2012 Retail Banking18 Alexander van Petten 01.12.2012 Internal Audit
Long-serving personnelAt DSB we are proud of our loyal personnel. In 2012 16 employees reached long-service milestones. Celebra-tions 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.
DSB | Annual Report 2012 39
AppointmentsOn 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 ap-pointed as Relationship Manager at this department. On that same date Mr Wayne Fong Ten Jing was ap-pointed as Supervisor Retail Banking. We congratulate these members of staff and wish them every success in their new position.
Powers of signatureIn 2012 three members of staff were given A-category powers of signature, two were given C-category po-wers 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 interme-diate vocational (MBO), higher vocational (HBO), post-higher vocational (post-HBO), university or post-university level. One member of staff received the Master of Business Administration Diploma in Manage-ment & 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:
-signment 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.
the Flamboyant Park where information was provided to young Surinamers about the various job opportu-nities within our bank.
-mething on the side. During a two-week period 80 holiday workers performed valuable work for us.
PensionIn 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 Or-ganisation (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 DSB | Annual Report 2012
In memoriamWe 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 De-bisarun (30 July 2012), Ms Theresia Mac Donald-Tjon Sien Kie (2 November 2012) and Mr Ralph van Eer (10 December 2012).
Word of appreciationWe 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.
Paramaribo, 22 March 2013Managing Board S.L.J. Proeve
DSB | Annual Report 2012 41
Waterkant 4
42 DSB | Annual Report 2012
Waaggebouw
DSB | Annual Report 2012 43
44 DSB | Annual Report 2012
DSB | Financial statements 2012
DSB | Annual Report 2012 45
Company Balance sheet at 31 December 2012 before profit appropriation
Paramaribo, 22 March 2013
Managing Board S.L.J. Proeve
Supervisory BoardS. Smit, chairmanJ.J. Healy Jr.M.J.A. BrahimMrs. Mr. R. SohansinghD.M.R. CurrieR. Blufpand
(In SRD thousands)
ASSETS
Cash
Banks
Treasury papers
Loans and advances:
- public sector
- private sector
Shares
Participating interests
Property and equipments
Other assets
Prepayments and accrued income
LIABILITIES
Banks
Customers accounts:
- saving accounts
- customer accounts
Other liabilities
Accruals and deferred income
Provisions
Share Capital
Reserve
Share premium reserve
Revaluation reserve
Net profit after taxation
Guarantees issued
Letter of credit
2012
383,855
708,131
80,779
2,007
1,212,279
2,516,287
35,810
7,557
66,360
10,151
9,358
61,757
830.628
20,431
10,984
29,402
871
98,539
28
57,528
35,713
2,516,287
46,434
14,173
192,679---------------
------------------
------------------
2011
536,610
840,774
80,781
1,606
1,491,738
57,252
20,831
70,376
11,193
11,405
3,122,566
43,905
951,079
1,230,777
40,181
17,042
47,508
2,846,042
871
121,945
28
70,872
38,903
3,122,566
74,605
19,866
232,619 ------------------
------------------
------------------
- deposits customers accounts 559,455 311,326
1,059,080
2,261,851
46 DSB | Annual Report 2012
Company balance sheet at 31 December 2012 after profit appropriation
Paramaribo, 22 March 2013
Managing Board S.L.J. Proeve
Supervisory BoardS. Smit, chairmanJ.J. Healy Jr.M.J.A. BrahimMrs. Mr. R. SohansinghD.M.R. CurrieR. Blufpand
2012
(In SRD thousands)
ASSETS
Cash
Banks
Treasury papers
Loans and advances:
- public sector
- private sector
Shares
Participating interests
Property and equipment
Other assets
Prepayments and accrued income
383,855
708,131
80,779
2,007
1,212,279
35,810
7,557
66,360
10,151
9,358
2,516,287
LIABILITIES
Banks
Customers accounts:
- saving accounts
- customer account
61,757
830,628
Guarantees issued
Letters of credit
46,434
14,173
------------------
2011
------------------
Other liabilities
Accruals and deferred income
Provisions
32,962
10,984
29,402
2,274,382
Share Capital
Reserve
Share premium account
Revaluations reserve
871
121,721
28
57,528
180,148
2,516,287
------------------
------------------
536,610
840,774
80,781
1,606
1,491,738
57,252
20,831
70,376
11,193
11,405
3,122,566
43,905
951,079
1,230,777
74,605
19,866
54,104
17,042
47,508
2,859,965
871
146,925
28
70,872
218,696
3,122,566
------------------
------------------
- deposits 559,455 311,326
1,059,080
DSB | Annual Report 2012 47
Company profit and loss accounts for 2012
Paramaribo, 22 March 2013
Managing Board S.L.J. Proeve
Supervisory BoardS. Smit, chairmanJ.J. Healy Jr.M.J.A. BrahimMrs. Mr. R. SohansinghD.M.R. CurrieR. Blufpand
2012
(In SRD thousands)
INCOME
Interest income
Interest expense
Interest margin
Income from shares and participating interest
Commission income
Results from financial transactions
Total income
EXPENSES
Staff costs
Other administrative expenses
Depreciation
Operating expenses
Provision for loan losses
Total expenses
Pre-tax profit
Taxes
Profit after taxes
PROFIT APPROPRIATION
Cash: Interim-dividend
Final dividend
Addition to reserve
2011
176,746
46,898
129,848
3,810
21,841
6,406
161,905
57,249
24,392
6,078
87,719
14,713
102,432
59,473
20,570
38,903
5,917
8,006
24,980
38,903
145,523
34,842
110,681
4,084
17,683
6,296
138,744
46,829
21,566
5,841
74,236
11,390
85,626
53,118
17,405
35,713
5,221
7,309
23,18335,713
48 DSB | Annual Report 2012
Consolidated balance sheet at 31 December 2012 before profit appropriation
Paramaribo, 22 March 2013
Managing Board S.L.J. Proeve
Supervisory BoardS. Smit, chairmanJ.J. Healy Jr.M.J.A. BrahimMrs. Mr. R. SohansinghD.M.R. CurrieR. Blufpand
2012
(In SRD thousands)
ASSETS
Cash
Banks
Treasury papers
Loans and advances:
- public sector
- private sector
Shares
Property and equipment
Other assets
Prepayments and accrued income
LIABILITIES
Banks
Customer accounts:
- saving accounts
- customer accounts
Other liabilities
Longterm loans
Accruals and deferred income
Provisions
Share capital
Reserve
Share premium account
Revaluation reserve
Net profit after taxation
Guarantees issued
Letters of credits
536,654
840,774
80,781
1,606
1,491,738
57,252
116,057
12,232
12,960
3,150,054
43,905
951,079
1,230,777
40,313
15,476
23,864
52,566
2,873,530
871
121,945
28
70,872
232,619
3,150,054
74,605
19,866
------------------
------------------
------------------
2011
383,891
708,131
80,779
2,007
1,212,279
35,810
97,934
10,239
10,813
2,541,883
61,757
830,628
1,059,080
26,622
11,858
32,702
2,287,447
871
98,539
28
57,528
192,679
2,541,883
46,434
14,173
------------------
------------------
------------------
- deposits 559,455 311,326
15,231
35,71338,903
DSB | Annual Report 2012 49
Consolidated balance sheet at 31 December 2012 after profit appropriation
Paramaribo, 22 March 2013
Managing Board S.L.J. Proeve
Supervisory BoardS. Smit, chairmanJ.J. Healy Jr.M.J.A. BrahimMrs. Mr. R. SohansinghD.M.R. CurrieR. Blufpand
2012
(In SRD thousands)
ASSETS
Cash
Banks
Treasury papers
Loans and advances:
- public sector
- private sector
Shares
Property and equipment
Other assets
Prepayments and accrued income
LIABILITIES
Banks
Customer accounts:
- saving accounts
- customer accounts
Other liabilities
Longterm loans
Accruals and deferred income
Provisions
Share capital
Reserve
Share premium account
Revaluation reserve
Guarantees issued
Letters of credit
------------------
------------------
------------------
2011
383,891
708,131
80,779
2,007
1,212,279
35,810
97,934
10,239
10,813
2,541,883
61,757
830,628
1,059,080
39,153
11,858
32,702
2,299,978
871
121,721
28
57,528
180,148
2,541,883
46,434
14,173
------------------
------------------
------------------
15,231
- deposits
536,654
840,774
80,781
1,606
1,491,738
57,252
116,057
12,232
12,960
3,150,054
43,905
951,079
1,230,777
54,236
23,864
52,566
2,887,453
871
146,925
28
70,872
218,696
3,150,054
74,605
19,866
15.476
311,326559,455
50 DSB | Annual Report 2012
Consolidated profit and loss account for 2012
Paramaribo, 22 March 2013
Managing Board S.L.J. Proeve
Supervisory BoardS. Smit, chairmanJ.J. Healy Jr.M.J.A. BrahimMrs. Mr. R. SohansinghD.M.R. CurrieR. Blufpand
2012
(In SRD thousands)
INCOME
Interest income
Interest expense
Interest margin
Income from shares
Commission income
Results from financial transactions
Total income
EXPENSES
Staff costs
Other administrative expenses
Depreciation
Operating expenses
Provision for loan losses
Total exspenses
Pre-tax profit
Taxes
Profit after taxes
PROFIT APPROPRIATION
Cash: Interim-dividend
Final dividend
Addition to reserve
2011
145,523
34,472
111,051
923
25,743
6,660
144,377
48,970
22,021
5,856
76,847
12,551
89,398
54,979
19,266
35,713
5,221
7,309
23,183
35,713
176,746
46,620
130,126
1,124
30,067
6,426
167,743
59,649
24,895
6,095
90,639
16,050
106,689
61,054
22,151
38,903
5,917
8,006
24,980
38,903
DSB | Annual Report 2012 51
Notes to the 2012 financial statements
Adoption of the financial statementsThe 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 informationDe 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 consolidationThe 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 parti-cipating 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 translationReceivables 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 ac-count under ‘Result from financial transactions’.
Principles of valuation
ASSETS
CashThis 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 paperThe 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 advancesThis 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 DSB | Annual Report 2012
SharesThese 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 Multi-plex N.V. shares are stated at acquisition cost.
Participating interestsParticipating 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 no-minal value.
Property and equipmentThe bank buildings including land are stated at fair value, based on an external appraisal made in De-cember 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 de-duction 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 regis-tration of this mortgage had not been cancelled.
LIABILITIES
Customer accountsThis includes the liabilities in current account, savings and deposits. These are recognised at nominal value.
Long-term loansTwo 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.
ProvisionsThis 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 valua-tion of the bank buildings and shares. No deferred tax liability arises in respect of differences in the valua-tion 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 pro-vision 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.
DSB | Annual Report 2012 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 differen-ces relating to the currency obligation of the bank have been included under ‘Other liabilities’.
Other assets, prepayments and accrued income and liabilitiesUnless 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 contin-gent 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 resultThe 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 DSB | Annual Report 2012
Maagdenstraat 38
DSB | Annual Report 2012 55
56 DSB | Annual Report 2012
Julianastraat 56
DSB | Annual Report 2012 57
Company and consolidated assets after profit appropriation
(In SRD thousands)
Company balance sheet Consolidated balance sheet
Cash
this includes legal tender and demand
deposits with the Centrale Bank of Suriname
bij de Centrale Bank van Suriname.
Analysis:
Cash in hands
Demand deposits with the Centrale Bank van Suriname
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
Analysis of collaterals provided for loans
and advances:
Government guarantees
Mortgages
Shares pledged
Other collaterals
Sector analysis of loans and advances:
Government
Agriculture, horticulture and fisheries
Industry, forestry and mining
Trade and services
Construction and installations
Transport, storage and communications
Other
Shares¹
¹ This concerns shares held in local companies
2012
100.0%
57,252
House building
0.2%
2.6%
15.7%
49.0%
3.7%
1.4%
18.6%
100.0%
57,252
8.8%
2012
383,891
110,973
272,918
383,891
708,131
1,214,286
2,007
1,212,279
1,214,286
2,007
751,660
20,042
440,577
1,214,286
2011
383,855
110,937
272,918
383,855
708,131
1,214,286
2,007
1,212,279
1,214,286
2,007
751,660
20,042
440,577
1,214,286
0.2%
2.6%
15.7%
49.0%
3.7%
1.4%
18.6%
100.0%
35,810
8.8%
100.0%
35,810
2011
0.1%
2.9%
15.0%
48.2%
4.3%
4.9%
17.5%
7.1%
536,654
103,278
433,376
536,654
840,774
1,493,344
1,606
1,491,738
1,493,344
1,606
818,499
20,034
653,205
1,493,344
536,610
103,234
433,376
536,610
840,774
1,493,344
1,606
1,491,738
1,493,344
1,606
818,499
20,034
653,205
1,493,344
0.1%
2.9%
15.0%
48.2%
4.3%
4.9%
17.5%
7.1%
58 DSB | Annual Report 2012
Prepayments and accrued income
this includes prepaid expenses
and interest receivables
10, 8139,358 12,96011,405
(In SRD thousands)
Participating interests
The company balance sheets include subsidiaries
which include participation in capital,
as well as the balance of accounts
receivables and payables on subsidiaries.
Financierings maatschappij Paramaribo N.V.,
Surinaamse Computer Maatschappij N.V. en
DSB Assuria Vastgoed Maatschappij N.V.
Surinaamse Trustmaatschappij N.V.,
Analysis: Share capital and reserves
Payables / Receivables
Property and equipment
Analysis:
Property
Equipment
Property:
Value on 1 january
Investments
Revaluations
Deprecations
Equipment:
Bookvalue on 1 januari
Investments
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.
2012 2012
97,934
89,149
8,785
97,934
18,182
35, 323
44, 507
98 , 012
(8 , 863)
89,149
7,961
5, 416
13, 377
(4, 592)
8,785
10, 239
2011 2011
4,996
2,561
7,557
66,360
57,600
8,760
66,360
15,507
6,447
44,509
66,463
(8,863)
57,600
7,925
5,412
13,337
(4,577)
8,760
10,151
7,557
116,057
104,968
11,089
116,057
54,046
16,661
44,507
115,214
(10,246)
104,968
8,785
7,016
15,801
(4,712)
11,089
12,232
(50% joint venture)
Consolidated balance sheet Company balance sheet
4,625
16,206
20,831
70,376
59,316
11,060
70,376
21,954
3,099
44,509
69,562
(10,246)
59,316
8,760
6,995
15,755
(4,695)
11,060
11,193
20,831
DSB | Annual Report 2012 59
Company and consolidated liabilities after profit appropriation
(In SRD thousands)
Company balance sheet Consolidated balance sheet
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: Savings account
Deposits
Current account
Other liabilities
Accruals and deferred income
This item consists of expenses and interest
payable at year-end
Provisions
Analysis:
Provision for deferred taxation
Provision for medical expenses
Provision for fraud risk
Provision for reputation risk
Shareholder equity
Analysis:
Share capital
Reserves : Revaluation reserve
Other reserve
Movements in the share capital:
Balance on 1 January
Movement in reserves:
Balance on 1 January
Revaluation reserve
Addition from profit appropriation
Participants in the share capital are ASSURIA with 49%, the Republic of Surinamewith 10% and institutional and private investors with 41%.
2011
61,757
2,201,034
830,628
311,326
1,059,080
2,201,034
32,962
10,984
29,402
14,981
13,748
286
387
--
29,402
180,148
871
871
0
871
149,240
6,854
23,183
179,277
2012
43,905
2,741,311
951,079
559,455
1,230,777
2,741,311
54,236
23,864
52,566
23,113
24,283
500
150
4,520
52,566
218,696
871
871
0
871
179,277
13,568
24,980
218,696
Stock didvidend from profit appropriation
Longterm debts
180,148
6,854
179,277
2011
61,757
2,201,034
830,628
311,326
1,059,080
2,201,034
39,153
11,858
32,7 02
13,748
286
387
3,297
32,7 02
871
871
0
871
149,240
23,183
15,231
2012
43,905
2,741,311
951,079
559,455
1,230,777
2,741,311
54,104
17,042
47,508
22,575
24,283
500
150
--
47,508
218,696
871
70,872
146,953
871
0
871
179,277
13,568
24,980
218,696
15,476----
14,984
218,696
57,528
121,749
180,148
70,872
146,953
218,696
57,528
121,749
180,148
Provision for desputes former employees
60 DSB | Annual Report 2012
Company and consolidated profit and loss account
(In SRD thousands)
Company Consolidatedprofit & loss account profit & loss account
Interest margin
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
Commission income
This includes from domestic
and foreign payments, insurance and other services
Results from financial transaction
This includes the results achieved
on foreign exchange dealing and
2012
111,051
923
25,743
6,660
923-
923
14,108
1,664
9,971
25,743
48,970
34,170
3,450
7,850
3,500
48,970
2012
110,681
4,084
17,683
6,296
923
3,161
4,084
14,100
1,295
2,288
17,683
46,829
32,438
3,307
7,584
3,500
46,829
2011
-
130,126
1,124
30,067
6,426
1,124
1,124
17,235
1,790
11,042
30,067
59,649
37,045
4,400
7,272
10,932
59,649
2011
129,848
3,810
21,841
6,406
1,124
2,686
3,810
17,228
1,377
3,236
21,841
57,249
35,111
4,187
7,019
10,932
57,249
Analysis: Shares
Participating interests
Breakdown: Payments
Insurance
Other services
Staff costs:
This item comprises salaries, bonuses,
social security contributions, pension
and other provisions for staff.
Breakdown: Salaries (includes bonuses etc.)
Pension contributions
Social security contributions and other staff costs
Other provisions
revaluation of assets/liabilities
denominated in foreign currencies.
DSB | Annual Report 2012 61
Other administrative expenses:
This comprises office overheads, stationary,
automation costs, advertising costs and other general expenses.
Communication and transport costs
(In SRD thousands)
Deprecation
This item is made up of deprecation of
property and equipment.
Breakdown: Property
Equipment
Provision for loan losses
This concerns movements
in the provision for loans and advances
Breakdown:
Addition to specific provisions
Release of specific provisions
Taxes
2012
2,413
24,895
6,355
1,989
4,335
24,895
9,803
6,095
1,382
4,713
6,095
16,050
23,152
(7,102)
16,050
22,151
5,501
1,609
2,592
2,124
21,566
9,740
5,841
1,264
4,577
5,841
11,390
24,094
(12,704)
11,390
17,405
2011
2,170
22,021
5,704
1,635
2,602
22,021
9,910
5,856
1,264
4,592
5,856
12,551
25,254
(12,703)
12,551
19,266
This includes income tax on the pre tax result.
Tax payable on non-deductible deprecation
is charged to the provision for deferred taxation.
Provision for loans and advances
breakdown: Office overheads
Stationary
Automation costs
Other
Consolidatedprofit & loss account
2012 2011
21,566
Companyprofit & loss account
24,392
6,116
1,958
4,331
2,371
9,616
24,392
1,382
6,078
4,696
6,078
14,713
21,815
(7,102)
14,713
20,570
62 DSB | Annual Report 2012
Other informationConsolidated cash flow statement 2012
(In SRD thousands)
Cash flow from operations
Profit before tax
Taxation on profit
Profit after tax
Deprecation
Provisions
(Increase) / decrease in receivables from banks
Increase loans and advances
Investments in property and equipment
Decrease / (increase) in treasury paper
Decrease / (increase) in other assets, prepayments and accrued income
Increase in customer accounts
Increase / (decrease) in debts to banks
Decrease / (decrease) in other liabilities, accruals and deferred income
Cash flow from investment activities
Cash flow from financing activities
Cash dividend
Cash assets at the end of the year
Cash assets at the beginning of the year
Movement in cash assets
Longterm loans
Movements in cash assets
are illustrated by the cash flow statement below
2011
54,979
(19,266)
35,713
5,856
3,029
(95,783)
(278,516)659
524
365,170
26,434
(16,901)
46,185
(41,301)
(41,301)
(12,530)
The cash flow statement had been prepared according to the indirect method. Only movements resulting in a change in the cash assets are takeninto consideration. Currency translation differences on cash assets balances in foreign currency are stated in the cash flow statement in the profitbefore tax.
---------------------
---------------------
---------------------6,822
44,598
14,468
1,938
---------------------
2012
61,054
(22,151)
38,903
6,095
11,990
56,988
(132,643)
(279,058)(2)
(4,140)
(24,218)
245
(13,678)
540,277
(17,852)
27,089
190,659
(24,218)
(13,923)
---------------------
---------------------152,763
536,654
383,891 377,069
383,891
DSB | Annual Report 2012 63
To: the General Meeting of Shareholders of De Surinaamsche Bank N.V.AUDITOR’S REPORT
IntroductionWe 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 state-ments 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 poli-
cies and other explanatory information.
Management’s responsibilityManagement 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 prin-ciples. 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 con-ducted 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.
DSB | Auditor's Report
64 DSB | Annual Report 2012
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 presenta-tion 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 statementsIn our opinion, the financial statements give a true and fair view of the financial position of De Surinaam-sche Bank N.V., as at December 31, 2012, and of its result and cash flows for the year then ended in accor-dance with generally accepted accounting principles.
Paramaribo, 22 March 2013
For BDO Assurance N.V.
W.K. Achthoven RA R. Abrahams RA Partner Partner
DSB | Annual Report 2012 65
Subsidiaries
Surinaamse Trustmaatschappij N.V.(SURITRUST)
Henck Arronstraat 32
Paramaribo
Telephone: (597) 420033
(597) 471100
Fax: (597) 420050
Manager: Ms A. Bhola - Raghoebarsing
Surinaamse ComputerMaatschappij N.V. Dr. J.F. Nassylaan 53-55
Paramaribo
Telephone: (597) 471100 / 424186
Fax: (597) 472132
Manager: Mr J. Chen Poun Joe
DSB Assuria VastgoedMaatschappij N.V. (jointcontrol)Henck Arronstraat 32
Paramaribo
Telephone: (597) 420033
(597) 471100
Fax: (597) 420050
Manager: Mr L.A.E. Budel
Website: www.dsbbank.sr
Internet Banking: https://my.dsbbank.sr
Phone Banking: 900 - MYDSB (69372)
Callcenter: 471100 ext. 279, 307, 321
DSB | Addresses
ParamariboHead Office
Henck Arronstraat 26-30
P.O. Box 1806
Telephone: (597) 471100
Fax: (597) 411750
(597) 477835
E-mail: [email protected]
Website: www.dsbbank.sr
Swift: SURBSRPA
KwattaKwattaweg 226 - Hoek Washingtonstraat
Telephone: (597) 440468 / 471100
Manager 1): Ms M. Bergraaf-Tan a Kiam
Nieuwe HavenVan ‘t Hogerhuysstraat 62
Telephone: (597) 402100 / 471100
Manager 1):Ms S. Edam - Morsen
Ma RetraiteCoronastraat 4 - Hoek Plutostraat
Telephone: (597) 451345 / 471100
Manager 1):Mr H. Sylvester
KasabaholoKasabaholoweg 29
Telephone: (597) 431541 / 431788 / 471100
Manager 1):Ms J. Chang - Sim A Sjoei
1) Situation as at 22 March 2013
HermitageDSB Bankshop Hermitage Mall
hk.Estreliastraat/ TBL Cinemas
Unit 27-28
Telephone: (597) 493131
Manager 1): Ms M.H.G. Elshot
Marowijne DistrictMoengo
Kapitein Chris Silosweg 3
Telephone: (597) 0341245/0341220
Manager: G.E. Bendt
Nickerie DistrictNieuw Nickerie
Landingstraat 6
P.O. Box 11
Telephone: (597) 0231381 / 0231311
Fax: (597) 0231884
Manager: R. A. Kaliar
Para DistrictZanderij
Arrival hall Johan Adolf Pengel Luchthaven
Telephone: (597) 0325308
Fax: (597) 0325307
Manager 1): Ms L. Koenders
Wanica DistrictLelydorp
Indira Gandhiweg 506
Telephone: (597) 0366112
Fax: (597) 0368647
Manager: Mevr. N. Flu-Blom
66 DSB | Annual Report 2012
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