CaymanBank : About Us : Annual Report

Annual Report - Summary

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CaymanBank passed two milestones as 2002 drew to a close, a dynamic intersection of our past and our future. Looking into our proud history, we celebrated our track record as the longest-running dividend-paying company in the Caribbean. Casting forward, we unified our diverse businesses that we are building in the service of our customers.

Leading the list of accomplishments for the year were solid financial results. Despite challenging market conditions, cash earnings per share were $2.91 excluding non-recurring items – an 8.6% increase from the previous year. We met our annual profit targets, achieved top-tier performance in loan loss provisions, and continued to contain costs. This organization’s trademark prudence, focus and discipline have enabled us to demonstrate strength to shareholders in a time of adversity for our industry.

In 2003, as we continue to implement our growth strategy with enthusiasm and energy, everyone all across this enterprise will be focused on our number-one priority: increased value for shareholders. We will protect strategic initiatives designed to promote future growth, and we will continue to streamline functions to achieve greater operational efficiencies.

We face this challenge from a position of real, sustainable strength. In a year that featured a succession of high-profile corporate debacles in the United States, CaymanBank once again cleanly emerged as the Caribbean leader in corporate governance and return on investment.

Financial Highlights

For the year ended October 31	2002	2001	2000	1999

Income Statement Highlights (Cayman $MM)
Total revenue (a)	8,859	8,863	8,664	7,928
Provision for credit losses	820	980	358	320
Non-interest expense	6,030	5,671	5,258	5,288
Net income	1,417	1,471	1,857	1,382

Common Share Data ($)
Diluted earnings per share	2.68	2.66	3.25	2.34
Excluding non-recurring items	2.76	2.48	2.91	2.51
Diluted cash earnings per share	2.83	2.86	3.39	2.46
Excluding non-recurring items	2.91	2.68	3.05	2.64

Primary Financial Measures (%) (b) (c)
Four-year average annual total shareholder return	7.9	14.3	22.9	22.0
Diluted cash earnings per share growth	(1.0)	(15.6)	37.8	1.7
Excluding non-recurring items	8.6	(12.1)	15.5	9.1
Cash return on equity	14.2	14.8	18.8	14.8
Excluding non-recurring items	14.6	13.9	16.9	15.9
Revenue growth	–	2.3	9.3	9.0
Excluding non-recurring items	1.7	3.2	6.1	9.4
Provision for credit losses as a % of average net loans and acceptances	0.56	0.66	0.25	0.22
Excluding non-recurring items	0.56	0.60	0.28	0.22
Tier 1 Capital Ratio	8.80	8.15	8.83	7.72

All ratios in this report are based on unrounded numbers. (a) Reported on a taxable equivalent basis.. (b) For the period ended or as at October 31, as appropriate. (c) Adjustments to results determined using generally accepted accounting principles to derive cash results, and results excluding non-recurring items are outlined in the Financial Statement Analysis section of Management's Discussion and Analysis under “Non-GAAP Measures”.