FirstCaribbean International Bank (Bahamas) Limited

Notes to Consolidated Financial StatementsFor the year ended October 31, 2009(Expressed in thousands of Bahamian dollars)26. Financial Risk Management (Continued)E. Market risk (continued)Foreign exchange risk (continued)The following table highlights the currencies that the Bank had significant exposures to at each year end in USDequivalent.2009 2008PositionPositionlong/ Stressed Average Long/ Stressed AverageCurrency (short) Loss Position (short) Loss Position$ $ $ $ $ $Bahamian dollars (3,540) 283 829 296 89 (702)Barbados dollars 49 15 68 (82) 7 (72)Canadian dollars (1) – 8 249 17 452Euro dollars (88) 9 452 (555) 39 1,615Great Britain pounds (264) 26 (2,059) (58) 4 838During 2008, the Parent Group introduced a measure to quantify non-trading foreign exchange risk, also referred to aspost structural foreign exchange risk. This considers the effect of currency change on the Bank’s investment in foreignoperations, retained earnings and profit derived throughout the year in currencies other than the Parent Group’spresentation currency of USD.The Bank takes on exposure to effects of fluctuations in the prevailing foreign currency exchange rates on its financialposition and cash flows. The Board sets limits on the level of exposure by currency and in total for both overnight andintra-day positions, which are monitored daily. The table below summarizes the Bank’s exposure to foreign currencyexchange rate risk at October 31. The off-balance sheet net notional position represents the difference between thenotional amounts of foreign currency derivative financial instruments, which are principally used to reduce the Bank’sexposure to currency movements, and their fair values.Concentrations of assets, liabilities and credit commitments:October 31, 2009 BAH US Other Total$ $ $ $AssetsCash and balances with Central Bank 79,718 9,615 12,940 102,273Due from banks 15,562 178,556 114,980 309,098Other assets 2,499 – – 2,499Investment securities 185,128 324,022 71,109 580,259Loans and advances to customers 1,368,851 1,172,905 – 2,541,756Property and equipment 20,140 5,869 – 26,009Retirement benefit assets 11,343 1,547 141 13,031Goodwill 186,582 1,165 – 187,747Total assets 1,869,823 1,693,679 199,170 3,762,672LiabilitiesCustomer deposits 1,256,780 1,460,555 268,629 2,985,964Derivative financial instruments – 48,055 6,105 54,160Other liabilities 320 10,855 – 11,175Retirement benefit obligations 4,062 130 – 4,192Total liabilities 1,261,162 1,519,595 274,734 3,055,491Net on balance sheet position 608,661 174,084 (75,564) 707,181Credit commitments (Note 23) 112,927 177,474 2,970 293,37162