Director's Report

In general, 2008 should be considered an exceptional year for our economy in general and our bank in particular. During the first three quarters of the year the tourism sector grew considerably, with almost fully occupied hotels and restaurants and an increase of spending power. Unfortunately, things started to change drastically by October 2008, when it became clear that the international market, starting with the U.S. market, was faced with one of its worst financial crises in decades, which negatively affected the world economy. 

In 2008, rather than further growth, Girobank’s aim was particularly directed to improve efficiency and increase our profit, strengthen our organizational structure and train our employees in important areas such as Risk and Compliance. As a result, our bank was able to control its cost and close the year 2008 with a net profit of almost ANG 11 million, which represents an increase of 54% as compared to 2007, when we made a profit of ANG 7.2 million. Our total assets grew by 11% from ANG 1.2 billion last year to ANG 1.3 billion in 2008. There was also a growth in our shareholders’ equity of 15%, from ANG 79 million in 2007 to ANG 90.8 million in 2008. Loans to customers have increased as well, from ANG 339.51 million to ANG 401.9 million which represents a growth of 18%.

In 2008 a new savings product was introduced under the name “SAM”, a savings plan comparable to the old, well-known “SAM” saving system that was mostly used by and between family members, friends or co-workers but without involving bank accounts. We are happy to report that this product has become extremely popular not only with existing clients of Girobank but attracting many new clients as well.

We are proud to report that in the meantime the first student who, through our foundation Fundashon Bo Motivashon Nos Kontribushon, received a Girobank scholarship back in 2005 finished his basic medical studies and is now specializing. After finalizing his studies he will return to Curaçao and start his practice on the island, which is one of the conditions for being awarded a Girobank scholarship.

We are doing everything possible to prepare ourselves for the negative effects of the economic downfall on the local economy – and consequently the local banks – which will continue this year and probably next year as well. A decline has already been noted in the tourist sector and other sectors directly and indirectly relating thereto, such as the hotel- and restaurant sectors. During the course of the year the Euro currency has dropped rather considerably, which undoubtedly will also result in a decrease in the number of tourists originating from Holland and the rest of Europe. Apart from the Hyatt Hotel, which project is expected to be finalized by the end of 2009, there are no new pending projects that we know of. This will negatively affect the construction sector as well and therefore the employment rate and general spending power.

As for the upcoming referendum, since it is not clear yet which direction our islands will choose as far as our political structure is concerned, potential investors are adopting a waiting attitude until the results of the upcoming referendum are known.

One thing is certain: as a bank we are facing a future with many new challenges. We feel confident that we will be able to deal with, and overcome these challenges, like we did in the past. In the course of 2009 we will continue our efforts to promote saving, which is a policy that proved to be successful, and create attractive programs and products, directed also at our senior citizens who for years have been faithful customers of our bank. To accommodate those who wish to own their own homes and can take on that responsibility, Girobank will start granting mortgage loans at competitive interest rates. Aiming at improving our services, this year we will also be opening our new branches in the Renaissance complex and the La Confianza building in town, as well as a small branch on the Isla complex. This will bring out total branches on the island up to 8, not including our “Servisio di Pago” branches at Marshe, Dokterstuin, Sta. Rosa and Colon Shopping Center. Our recently established branch in Bonaire is growing steadily.

Like every year, we need to emphasize once more that we owe the growth of our bank and the profit we were still able to record in 2008, to the hard work and dedication of our employees and the continuing support of our Board of Supervisory Directors and our shareholders. We sincerely thank each and every one of them.

And last, but certainly not least, we extend our heartfelt gratitude to each of our customers, whose confidence and support are of immense value and essential for the growth and profitability of our bank.

On behalf of  the Board of Managing Directors,
Eric Garcia
Manuel Suena
Curaçao, May 2009

Read our Financial highlights 2009 please click here
Read our Financial highlights 2008 please click here
Read our Financial highlights 2007 please click here
Read more about our Financial highlights 2006 please click here
Read our Financial highlights 2005 please click here