- Bordier Bank (TCI) td Consolidated Financial Information For the Year Ended December 31, 2017 Board of Directors: Evrard Bordier- Director/Chairman Andree Piche -Director/General Manager Corey Williams - Director Ariel Missick- Director -
.. I pwc. - Independent auditor's report To the Shareholder of Bordier Bank (TCI) td Report on the audit of the financial information Our opinion In our opinion, the Consolidated Financial Information of Bordier Bank (TCI) td (the Company) and its subsidiaries (together 'the Group') as at December 31, 2017, is prepared, in all material respects, in accordance with the basis of preparation in Note 1 to the Consolidated Financial Information. What we have audited The Group's Consolidated Financial Information comprises: the Consolidated Statement of Financial Position as at December 31, 2017; and the Consolidated Statement of Comprehensive Income for the year then ended. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the Consolidated Financial Information section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the Group in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code). We have fulfilled our other ethical responsibilities in accordance with the IESBA Code. Emphasis of Matter - Basis of accounting and restriction on use We draw attention to Note 1 to the Consolidated Financial Information, which describes the basis of accounting. The Consolidated Financial Information is prepared to comply with the requirements of the Company's regulator. As a result, the Consolidated Financial Information may not be suitable for another purpose. The Consolidated Financial Information does not comprise a full set of consolidated financial statements prepared in accordance with International Financial Reporting Standards. Our opinion is not modified in respect of this matter. Responsibilities of management for the Consolidated Financial Statements Management is responsible for the preparation of this Consolidated Financial Information in accordance with the basis of preparation as set out in Note 1 to the Consolidated Financial Information, and for such internal control as management determines is necessary to enable the preparation of consolidated financial information that are free from material misstatement, whether due to fraud or error. In preparing the Consolidated Financial Information, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
pwc._..._ -..._ Auditor's responsibilities for the audit of the Consolidated Financial Information Our objectives are to obtain reasonable assurance about whether the Consolidated Financial Information as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this Consolidated Financial Information. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the Consolidated Financial Information, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit 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 Group's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Consolidated Financial Information or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the Consolidated Financial Information. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.._ We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Other Matter The Group has prepared a separate set of consolidated financial statements for the year ended December 31, 2017 in accordance with International Financial Reporting Standards, on which we issued a separate auditor's report to the shareholder of the Group dated March 31, 2018...._ r
..._ pwc This report, including the opm10n, has been prepared for and only for the Group's shareholder in accordance with the terms of our engagement letter and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing. Pt<-iee,u;a te,t<-h,.oa..fel]oo;e,t<-.f! tel Chartered Accountants Providenciales, Turks and Caicos Islands Date: March 31, 2018
.... Bordier Bank (TCI) td Consolidated Statement of Financial Position As at December 31, 2017 I ASSETS Cash and cash equivalents Investments held at fair value Available-for-sale investments Accounts receivable and other assets Customer overdraft accounts Derivative financial instruments oans receivable Property, plant and equipment Total assets 2017 2016 $ $ 60,214,852 76,987,559 1,994,940 43,530 43,530 1,257,594 851,049 2,751,651 202,004 177,121 317,911-2,951,700 15,000 15,000 66,454,688 81,368,753 - IABIITIES AND SHAREHODER'S EQUITY Demand deposits due to customers Due to banks at sight Other liabilities Derivative financial instruments Total liabilities Shareholder's Equity Share capital Other reserves Retained earnings Equity attributable to the shareholder Non-controlling interests Total equity Total liabilities and equity 49,509,970 68,034,267 1,639,742 199,489 987,713 523,438 155,883 173,443 52,293,308 68,930,637 3,000,000 3,000,000 3,200,000 3,200,000 7,765,005 5,978,783 13,965,005 12,178,783 196,375 259,333 14,161,380 12,438,116 66,454,688 81,368,753 Approved for issuance on behalf of the Board of Directors of Bordier Bank (TCI) td on March 31, 2018. lflfdt<-u Pie/t,~ Director Cot<-~~ Director k/;!!lialffe The accompanying notes form an integral part of the consolidated financial information -4-
Bordier Bank (TCI) td Consolidated Statement of Comprehensive Income For the Year Ended December 31,2017 2017 2016 $ $ ~ r - I f ~ Operating income Fee and commission income 4,601,267 4,574,902 Foreign exchange, net 455,006 296,279 Dividend income 959,742 981,470 Interest and similar income 6,122 5,035 Other income 30,700 Total operating income 6,052,837 5,857,686 Operating expenses General expenses 3,396,053 3,356,525 Management fee 310,500 750,000 Commission expense 623,020 637,415 Total operating expenses 4,329,573 4,743,940 Net income from continuing operations 1,723,264 1, 113,746 Other comprehensive income Effect of foreign exchange on translation of subsidiaries/other - 3,676 Total other comprehensive income - 3,676 ~ Total comprehensive income for the year 1,723,264 1,117,422 Attributable to: Owner of Bordier Bank (TCI) td 1,786,222 1,239,826 Non-controlling interests (62,958) (122,404) 1,723,264 1,117,422 \_. r..._ - The accompanying notes form an integral part of the consolidated financial information -5- r