FirstCaribbean International Bank : 12 Dec 2022 – FirstCaribbean International Bank Limited Annual Report 2022

Corporate Profile

CIBC FirstCaribbean is a relationship bank offering a full range of market leading financial services through our Corporate and Investment Banking, Retail and Business Banking and Wealth Management segments. We are located in fifteen (15) countries around the Caribbean, providing banking services through approximately 2,700 employees in 54 branches and offices. We are one of the largest regionally listed financial services institutions in the English and Dutch speaking Caribbean, with US$13 billion in assets and market capitalization of US$1 billion.

We also have a representative office in Hong Kong that provides business development and relationship management for our fund administration. The face of banking is changing throughout the world and CIBC FirstCaribbean intends to lead these changes with the expertise, integrity and knowledge gained from banking in the Caribbean since 1836.

Vision

To be the first choice for financial services in the region by putting our clients at the centre of everything we do.

Mission

To deliver a simplified, modern everyday banking experience to all of our clients.

Values - Trust, Teamwork, Accountability

Values define the character of both individuals and organizations. At CIBC FirstCaribbean, they shape our everyday decisions.

• Trust - We believe in, empower and support each other. We act with respect, integrity, honesty and transparency in our relationships with each other and with our clients.
• Teamwork - We believe in CIBC FirstCaribbean and work together to promote a sense of pride and purpose in all we do for our clients and for our Bank.
• Accountability - We do what we say, because this is what our clients expect and deserve. If we make a mistake, we admit it and fix it.

Strategic Priorities

We have four key strategic priorities: focus on our clients, building on our technology base to create a regionally leading digital experience for our clients, simplifying the way we do business and investing in our people.

• Client Relationships - We aim to grow our share of wallet with our existing clients, attract new clients and further improve sales and service capability by creating a personalized, responsive and easy experience.
• Modern Everyday Banking Experience - We are building digital capabilities across our sales and delivery channels to provide our clients with a modern omni-channel, banking experience.
• Simplification - We are optimizing our footprint, processes and cost structure by simplifying the way we do business. We aim to remove paper from our processes, and we are investing in next generation compliance and customer onboarding experiences.
• People - We ensure business continuity and growth by developing our people.

$176.4M	$186.9M	$1.2B	500K
Reported net income	Adjusted net income	Market capitalization	Clients

Table of contents

Corporate Profile	2
2021 Highlights	3
Our Commitment to ESG	8
Message from the Chair
of The Board	11
Message from the Chief
Executive Officer	13
The Board of Directors	15
Executive Committee and
Senior Executive Team	26
Management's Discussion
and Analysis	34
Auditors' Report	44
Consolidated Financial
Statements and Notes	51-140
Statement of Corporate
Governance	141
Ownership Structure	157
Main Branches and Centres	158

2 CIBC FIRSTCARIBBEAN 2022 ANNUAL REPORT

2022 Highlights

First for Clients

The region continued to adjust to the new normal as the COVID-19 restrictions were reduced or eliminated across our footprint. The adjusted protocols supported more face-to-face interactions with our clients and markets as we continued to advance the agenda of ensuring we build an omni-channel financial institution offering more options for our clients. More accessible travel and entertainment supported increased card spend with record levels achieved. With the continued focus on our enhanced digital capabilities, we've improved client experience through our onboarding and alternate channels including adding digital loan capabilities to our product suite.

Retail and Business Banking

• Performing Loan Sales maintained at prior year's levels reflecting a continued strong response to client requests and opportunities within markets
• Our Cards portfolio continued its strong recovery with credit card spend exceeding the $1 Billion threshold for the first time while Visa Debit reflected growth of 31% over the prior year
• With moratoria offered to clients during the peak of the pandemic ending we continued to offer bespoke support to clients as needed
• Our most innovative achievement was the successful launch of our Digital Lending App. This provides clients with the ability to apply for Unsecured Loans, Credit Cards and Auto Loans remotely at any time including outside of standard banking hours with decisions rendered within 10 minutes. This translates into greater flexibility around managing financial needs and has received exceptional feedback from the 1,800 clients served
• Our Digital Client Onboarding platform, which allows new clients to remotely open accounts, was further enhanced resulting in more than twice as many new relationships established year on year via this channel
• Our market leading Mobile Banking Application and Online Banking platforms continue to grow in popularity and usage with best-in-class rating validated by a 43% increase year on year in transaction volumes
• Clients' preferences for our self-serve and convenient channels remains strongly evident as digital transaction volumes of transfers to other parties, bill payments and International Wires continue to increase with commensurate reduction in face-to- face branch interactions. Our 1st Pay option continues to see high adoption with a 254% increase over the prior year
• We successfully introduced 39 Smart ABMs (6 of which are

Drive Thru) across the region providing clients with the ability to conduct their banking transactions with real time access to deposited funds.

Delighting our clients with easy, personalized, responsive and omni-channel service continues to be paramount.

Wealth Management

Our Wealth Management business had a very strong year across all business lines. As the impact of the global pandemic softened

and private entrepreneurs and international businesses returned to work, our Wealth Management teams continued to build our momentum on providing superior service and client focused solutions. Despite vigorous volatility in the financial markets our focus on understanding our clients' total financial needs allowed us to deliver enhanced financial solutions through cross-selling the various components of our wealth management offerings and focusing on total financial solutions for our top tier clients (e.g. private banking and investment solutions through our team of Private Bankers & Investment Advisors; Discretionary Portfolio Management for our trust clients and International Banking solutions for our Fund Clients).

• Our Private Banking team continued to focus on the complex credit needs of our top tier banking clients with performing loans growing by 12% and our Private Bankers continuing to perform "above the bar".
• Through our continued focus on the Mosaic-managed account product and emphasis on creating unique products for our Investment clients our assets under management grew by 66% while clients took advantage of market volatility
• Our combined Private Wealth business (Private Banking, Investment Advisors and Discretionary Portfolio Management) had a record year and grew by 25% year-over-year
• We witnessed a significant reversal in our prolonged low interest rate environment with significant swings as global economies attempt to curb inflation around the world. Our International Banking business continued to add new relationships across the six territories and continued to be a significant contributor to the Bank's USD deposits topping $1.9B.
• Our trust companies in Bahamas and Cayman leveraged our cross-selling opportunities by referring clients to their investment partners and improving yields on short-term assets for our clients.
• Our fund administration business continued to contribute

to growth across the business lines (specifically Trust and International Corporate) by adding 25 new funds this year.

Our business development efforts continued to show significant results throughout the year with all businesses adding significant new relationships and accounts, primarily from our competition in core markets positioning us very well for a strong 2023.

In addition, our Wealth Team continued to demonstrate the importance of giving back to the communities in which we live and work with strong support across the region for the Walk for the Cure, becoming lead sponsor the annual Cayman Islands Red Cross Golf Tournament and sponsoring the Carmichael Prize Exhibition in Barbados.

Corporate & Investment Banking

Our Corporate & Investment Banking team is positioned across our regional footprint to focus on delivering convenient and innovative credit solutions, cash management, foreign exchange and derivative services to our 10,000 corporate and sovereign clients. Our portfolio spans a variety of industries including renewable energy, utilities, hospitality, healthcare, real estate, infrastructure, manufacturing, retail & distribution. Our team

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2022 Highlights

consists of 225 dedicated and experienced professionals whose main tasks are to understand the financial needs of our clients and to deliver the best financial services and solutions.

As we progress with our digital transformation, our aim is to ensure that our clients are able to complete their financial transactions in a secure, efficient and convenient manner. We are excited about what this means for both our clients and employees as we continue to invest in innovative technology advances that support our clients.

During 2022, our region continued to show positive signs of recovery from the pandemic with increased economic activity boosted by improving tourism sector. Several of our clients who were impacted have begun to see revenues and profitability return. However, new geo-economic challenges continue to impact our clients, resulting in inflationary pressures from rising prices, supply & logistics delays and reduction in foreign direct investment.

Despite these challenging circumstances, the Corporate Banking team was able to disburse US$1 Billion in new loans to clients in a broad range of industries. By the end of the fiscal year, our total loan portfolio had risen to a record of US$4 Billion.

Our Investment Banking team was successful in arranging over US$900 million in transactions during the year, including a doubling of the Bank's investment in the renewable energy sector and facilitating the first Blue Financing transaction in the Caribbean region. Even in the face of the challenging regional and global environment, we were privileged to continue to be the financial partner of choice to our sovereign and corporate clients.

CIBC FirstCaribbean was Joint Lead Arranger for the successful closing of a US$146.5 million dual-currency debt conversion for the Government of Barbados in September 2022. This historic Blue Financing transaction was co-guaranteed by the Inter-American Development Bank and The Nature Conservancy. CIBC FirstCaribbean was Domestic Lead Arranger and sole lender for US$73.26 million equivalent in Barbadian Dollars, representing half of the Blue Financing transaction. We were extremely pleased to be part of this landmark transaction, which is expected to provide up to US$50 million in interest savings that will fund marine conservation and other environmental development projects in Barbados over the next 15 years. This was an excellent example of how our bank is actively helping to advance sustainability and climate resiliency initiatives in the region. With this transaction, we brought the total value of facilities arranged in sustainability-linked Green and Blue Financing to almost US$500 million.

Recognition of our leading role in sustainability financing came during the 14th Caribbean Renewable Energy Forum (CREF 2022) where CIBC FirstCaribbean was awarded for Best Renewable Energy Financing. We were recognized for innovation and leadership in project financing provided to two major Independent Power Producers (IPP's) operating renewable energy assets across the region: BMR Energy, a developer of wind and solar photo-voltaic (PV) assets in multiple Caribbean islands and Central America; and WRB Energy, the developer of Jamaica's first utility-scale solar PV plant. We continue to be

acknowledged as the financier of choice for the renewable energy sector in the Caribbean.

Through our Corporate Online Banking platform, we continued to make innovation a focal point of our strategy, providing new technologies, enhanced products and faster service to our Corporate and Business Banking clients. We delivered more than 30 new feature enhancements to the platform during 2022. These promoted increased digital usage-transaction volumes increased by 48% year on year-while reducing clients' need to make over- the-counter payments. We continue to receive favorable feedback from our clients and internal team as we seek to maintain Corporate Online as the best-in-class for business in the Caribbean.

Our e-Commerce and Merchant Services platforms saw growth in volumes transacted as we continued to provide modern, digital payment solutions for our clients. Project initiatives are currently underway to enhance our merchant acquiring eco-system and payments technologies as we accelerate the delivery of innovative solutions to meet and surpass our clients' evolving needs.

As the COVID-19 pandemic receded during the year and business travel began to normalize, members of our team once again made their presence felt at key conferences and industry fora as these events returned to an in-person format. In addition to our sponsorship of Caribbean Renewable Energy Forum (CREF 2022), we were again co-title sponsor of the 6th edition of the Caribbean Infrastructure Forum (CARIF 2022) with a focus on sustainable and resilient infrastructure as a path to regional recovery. We participated in the 2022 annual conference of the World Free Zones Organization, hosted by the Jamaica Special Economic Zones Authority in Montego Bay. In October, we were pleased to sponsor a Conversation on Energy & the Economy at the annual general meeting of the Energy Chamber of Trinidad & Tobago.

First For Employees

As we began our 2022 fiscal year we were very much still in the throes of the COVID-19 pandemic although we were beginning to see some early signs of a potential recovery with increasing rates of vaccinations and reducing numbers of cases in many of the territories in which we operate across the region.

As the year progressed, while still having to provide support to our employees to deal with pandemic related issues, we were able to commence a gradual return to the office across the region and we have ended the year almost back to normal, or at least back to our new normal.

Despite the continued pandemic in the early part of the year we forged ahead with our strategic people agenda with a focus on a number of key areas:

• A more flexible and modern way of working
• Employee wellness, wellbeing and inclusion
• The ongoing development of our team to allow them to evolve as our business and way of working evolves

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2022 Highlights

Esan Peters (Chief Information Officer & MD Technology & Operations) using our collaborative tools to engage with staff

Flexible, Modern Working Environment

• We revamped our Remote Working arrangements to help encourage a return to the office for many employees who had been working remotely for two years, while at the same time retaining the flexibility to allow them to work partly from home and partly in the office.
• For those returning to the office we provided a number of support programs to help everyone get reacquainted with the office environment covering both social, networking, wellness and training activities.
• We commenced a new initiative to look at other ways of introducing flexibility into the work place to complement our Remote Work Policy such as using flexible working hours with the aim of launching the new program in 2023.

Employee Wellness & Inclusion

• We launched a new wellness program for the year with a focus on resilience. This included a number of initiatives to help employees cope and flourish through challenging, constantly changing and uncertain times.
• We launched several initiatives to encourage employees to take a more proactive approach to their own health which included a 'Know Your Numbers' campaign, a breast screening program in the workplace and a series of webinars focused on healthy eating and a healthy diet in collaboration with the Healthy Caribbean Coalition.
• To create a more inclusive environment within our bank, we launched a series of activities designed to help our team members better understand each other and our broader communities. This included our Engaging Moments series which showcased human interest stories from our employees, sponsorship of a LBGTQ+ conference focused on the issues this community faces and the hosting of a Hearing Impaired awareness workshop to highlight the issues the deaf community has to deal with in our society.
• We launched a new Retirement Planning series for our employee population who are getting closer to retirement which focused on how to prepare for and adjust to retirement from

multiple perspectives - financial, health and well being and staying active and fulfilled.

Employee Development

• We launched a new graduate program and a new summer internship program to attract new talent to our bank and to showcase the wide range of opportunities that exist within the financial services industry. A key focus was on technology and data and we offered over 70 students the opportunity to experience how our bank is at the forefront of the digital revolution within financial services and that there are a wealth of opportunities available for talented individuals from this arena.
• We launched a mentorship program for our more junior employees to provide additional support to them in order to help them establish their own career goals and career paths and direct them along their chosen career journeys.
• We continued with all of our key leadership development programs
  - Senior Leadership Development Program, Branch Manager Development Program, Country Manager Development Program, Emerging Leaders Program, Being The Boss - and augmented these with two new programs - Middle Manager Education Program and New Leaders Shifting Gears Program.
• As collaboration across the organization is one of our key corporate behaviours, we launched a Collaboration Campaign to step up the level of collaboration that takes place across our bank to improve the experience our clients have when dealing with our bank.
• We launched a new competency framework across the organization as a way of measuring success at living our corporate behaviours and delivering on our brand promise. This will form the backbone of our performance management and recruitment processes going forward where we will have a much greater focus on how things are achieved, not just what is achieved.

Simplification

• We continued our efforts to simplify how we operate within the organization through further automation and digitization which also helps us to reduce our impact on the environment. We added new elements to our HRIS and payroll system to automate the interfaces between them, automate reporting, automate the production of letters and transition to digital employee files.

As we look toward the new fiscal year, we see extremely exciting opportunities for our employees. Our focus will be to continue our transformation to a more agile organization, able to respond to changing environments and markets quickly; to continue providing opportunities for our employees to grow, develop and evolve in tune with the evolution of our bank and to create a more flexible, modern and people centric organization in which all of our employees can be themselves and flourish.

Environmental, Social, and Governance

CIBC FirstCaribbean is dedicated to maintaining strong environmental standards and conducting our activities in an environmentally and socially responsible manner that contributes to long-term value for our clients, employees, communities and our shareholders.

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