Evolución de las capacidades tecnológicas

Our bank has booked satisfactory results in 2008. Total assets grew and the operational results increased.

The financial objectives that we had set ourselves in our Strategic Plan 2008-2010, have been only partly realized due to a downward revision of the value of our investment portfolio and some non-recurring costs. These objectives were: earnings growth of at least 10%, an increased market share in the credit market, an increased share of non-interest rate income versus total revenues and an improvement in the efficiency ratio of approximately 2 percentage points.

To underline the rights of the General Shareholder’s Meeting with respect to earnings distribution, we have included a line item of earnings before dividend distribution. This corresponds with modern inter- pretations of financial reporting. In the case of the pre-advice of the Supervisory Board and for the intent of analysis, the balance sheet after dividend distribution is utilized. In addition, a consolidated statement of cash flows will be presented that provides insight into the liquidity movements in the book year. A detailed analysis of the main items in the balance sheet and the consolidated results of Hakrinbank can be found below, followed by information on the proposed distribution of earnings.

Total Assets (in millions SRD)

Consolidated Balance

The size of the business as measured by total assets ended at the end of 2008 in SRD 972.6 million, an increase of SRD 176.9 million or 22.2% compared with the previous year. This increase was in line with our expectations.

Most of the increase on the asset side of the balance sheet can be attributed to the line items Due from Clients, Cash and Cash equivalents and Due from Credit Institutions. The line items Participating Interest and Tangible Fixed Assets also showed an increase. The line items Treasury Bills and Invest- ments show a clear decrease.

The line item Due from Clients, predominantly as a result of lending, increased from SRD 432 million in 2007 to SRD 544.4 million at the end of the 2008 book year. This increase of SRD 112.4 million or 26% relates to loans in local currency and also to loans denominated in foreign currencies. Most of the increase in the loan portfolio was attributable to lending in the trade, housing construction, and construction and installation whilst our subsidiary, the Nationale Trust en Financierings Maatschappij, substantially grew its consumer credits.

The line item Cash and Cash Equivalents grew by 42.9% to SRD 150.7 million. This was related to the increase of amounts Due to Third Parties.

The line item Due from Credit Institutions increased by SRD 34.8 million to SRD 242.1 million as a result of the rise in the foreign-currency credit balances held for third parties. These are in part invested with foreign banks.

The line item Participating Investments showed an increase due to a debt-for-equity swap in BNETS N.V. Treasury Bills decreased by SRD 14.7 million to approximately SRD 1.0 million and ultimately to zero in January 2009. Due to the improved cash position of the State these bills were repaid at maturity.

The line item Tradable Securities shows a decline due to the downward revaluation of the international investment portfolio as a result of the bearish stock market. 0 200 400 600 800 1,000 1,200

The liabilities side of the balance sheet consists of 3 main groups namely amounts Due to Third Parties, in particular to clients, Provisions and Shareholders’ Equity.

Amounts Due to Clients, which represent our most important source of funding, rose by SRD 156.8 mil- lion or 22.7% to SRD 848.7 million. Savings, which include long-term investments, rose by 32.6%, while Other Liabilities, which include credit balances on checking accounts increased less by a mere 13.7%. This development reflects our policy of seeking to attract more long-term funding in order to maintain a healthy funding structure. This policy is supported by the current stable macro-economic environment, in which private individuals and businesses are increasingly prepared to invest money for longer periods.

The item Amounts Due to Credit Institutions rose by SRD 5.6 million to reach SRD 45.9 million at the year- end. This item relates to the daily clearing of amounts owed to and by other banks in the interbank market and is simply the position on the last day of the year. Shareholders’ Equity will rise by SRD 11.2 million or 25.8% to SRD 54.5 million, assuming that the net income of SRD 11.2 million will be added to the Retained Earnings. In that case the reserve will increase to SRD 45.0 million. Growth in the Shareholders’ Equity will increase the financial strength of the bank and give it financial legroom to handle larger credit requests.

Off balance sheet items, such as guarantees provided and letters of credit opened, which have an impact on the bank’s solvency position because of the element of risk they entail, rose by SRD 2.3 million to SRD 25.2 million.

Consolidated results

The consolidated results showed a satisfactory result. Because of one-off cost increases these results were slightly less than budgeted.

The bank booked in the reporting year a net earnings before taxes of SRD 26.3 million; an increase of nearly SRD 2.5 million or 10.1% compared to 2007. Net Earnings after tax were SRD 16,8 million and SRD 15.3 million in 2007. The increase was the result of an increase in operating income of SRD 8.1 million or 14.8% to SRD 63.3 million and expenses of SRD 5.7 million or 18.3% to SRD 36.9 million.

Operating Income before tax

(in millions SRD)

Operating Income

The increase of operating income was predominantly attributable to interest income. The remaining (non- interest) income dropped by SRD 0.4 million because of the negative result from financial transactions. The share of non-interest income dropped as result with approximately 4 percentage points to 20.8%, despite our aim to bring this share up to 33.3%. If one-off set backs had not occurred, there would be an increase in the share of non-interest income compared to 2007. Interest income currently accounts for 79.2% (2007: 75.4%).

Interest Income

Net interest income rose in the reporting year by SRD 8.6 million to SRD 50.1 million. This was the result of growth in the lending portfolio. Despite the fact that our investments with foreign banks increased, interest income decreased as a result of lower interest rates. Income from our investments in Treasury Bills of the Republic of Suriname dropped significantly due to the lower level of investments and the lowering of the interest rate from 8% to 7.5% per annum. Competition squeezed interest margins somewhat lower. Earnings capacity however did increase thanks to the growth in lending. This growth was supported by the tightening of the credit and balance management, especially the liquidity management.

SUIT

‘Quality,

not

Quantity’