A solid foundation

is the best preparation

for a strong future
– R. Allen Stanford
 ®

STANFORD INTERNATIONAL BANK LTD.

 A

7
t Stanford International Bank, we balance the
past with the future. We remain committed to
the long-held traditions and values that have served our
clients well. At the same time, we look to innovative
technology and ideas that will help keep us moving
forward for generations to come.

It is this approach that allowed us to achieve another

significant milestone this year, as we passed two billion
in total assets and total deposits. We will continue to
build for the future upon the firm foundation of our
past and our disciplined approach to managing the
Bank’s assets.
Building for the future upon the firm
foundation of our past.
7

Page 2
Financial Highlights
For the Year Ended 31 December 2003
(Expressed in thousands of United States dollars)

Results
2003 2002 2001 2000 1999
Figure I
Earnings
TOTAL REVENUE $ 254,463 $ 199,520 $ 140,394 $ 102,654 $ 81,603 Dollars (in millions)
Interest Paid to Customers 134,019 10 9,874 82,605 61,967 48,493 35
Service Fees, Commissions and Operating Expenses 87,323 65,940 45,628 35,674 29,301 30
Total Expenses 221,342 175,814 128,233 97,641 77,794 25
20
EARNINGS (see Figure I) $ 33,121 $ 23,706 $ 12,161 $ 5,013 $ 3,809
15

Capital
10
5
Shareholder’s Equity 135,029 100,707 75,001 52,840 47,827 0
1999 2000 2001 2002 2003
Percent of Total Assets* 6.07% 5.88% 6.26% 6.36% 7.07%
Percent of Total Customer Deposits* 6.48% 6.27% 6.72% 6.84% 7.67%

Year-End Balances
TOTAL ASSETS (see Figure II) $2,225,506 $1,713,755 $1,197,830 $ 830,703 $ 676,236 Figure II
Assets and Deposits
TOTAL DEPOSITS (see Figure II) $2,083,398 $1,606,062 $1,116,455 $ 772,261 $ 623,560 Dollars (in billions)
2.4
*Based on year-end equity as a percentage of year-end balances of assets and customer deposits.
2.1
1.8
1.5
1.2
0.9
0.6
0.3
0.0
1999 2000 2001 2002 2003
Total Assets Total Deposits

Page 3
 Tradition
A Foundation
for Growth
$
Page 4
7 S tanford International Bank meets the wealth
management needs of private banking clients
throughout the world. Over the last two decades we
have seen outstanding growth into new markets, new
countries, and new areas for investment. Yet, along the
way we have not forgotten our humble beginnings.
Rooted in the traditions of the past—hard work, clear
vision, and value for clients—Stanford International
Bank maintains a conservative approach to wealth
management and a progressive attitude in our
technology and expectations.

Lodis Stanford
7

Page 5
 T

7
o achieve steady progress, it is best to minimize
risk with an investment philosophy that is grounded
in realistic performance criteria. While others pursue a
variety of options in today’s financial environment, at
Stanford International Bank we take our cues from the
past. A balance of safety, security, and diligence—
EAGLE trainees combined with innovation—will create positive results,
ensuring that Stanford International Bank will be here
for generations to come.
7

Page 6
Balance
Creating
LastingValue
#

Page 7
 Philosophy
Investing in the Future
%
Page 8
T
7 radition roots us. Yet technology moves us forward.
Stanford International Bank has a state-of-the-art
financial technology infrastructure. This includes
proprietary trading systems that facilitate financial Technology moves us forward.

planning and allow our clients to have secure access

to their personal account information wherever they
are in the world. It is innovative management with
consistent performance.
7

Page 9
 O

7
ne of the founding principles of Stanford
International Bank is exceptional client service.
And what was true at the beginning remains true today.
Our knowledgeable professionals are dedicated to
providing one-on-one individual attention and
committed to extraordinary personal service. Stanford
International Bank clients benefit from our unique
combination of traditional values with global resources.
We combine traditional
values with global resources.

Page 10
 Service
Yesterday Today
Tomorrow
&

Page 11
 Relationships
Building Trust
^

Page 12
S
7
tanford International Bank comprises a series of
time-tested relationships that have been at work
since our beginning. Whether between one of our
financial consultants and a client, or between
colleagues helping map out a financial strategy,
Stanford International Bank has built relationships over
time, nurturing and helping them grow. We continue
our commitment to provide private banking services in
an atmosphere of professionalism and trust.
7

Building relationships with

professionalism and trust.

Page 13
 W

7
herever our clients reside, Stanford
Personal service with global reach. International Bank is there to help. While our
focus is on private banking, our access to a global
network of resources as a member of the Stanford
Financial Group of companies enables us to provide a
wide range of financial opportunities. We are poised for
continued, steady, solid growth, no matter where in
the world we go.

Page 14
Growth
V ision for the
Future
*

Page 15
 Chairman’s Letter
On behalf of the Board of Directors, management and staff of Stanford International Bank Ltd.,
I am pleased to present our 2003 Annual Report.

S trong Financial Performance

The Bank achieved strong growth in assets, deposits and profit in 2003. Assets totaled $2.2 billion,
up 29.9% over 2002. Deposits increased 29.7%, for a total of $2.1 billion in 2003. Also, the Bank
reported a record operating profit of $33.1 million, a 39.7% increase over 2002. It was the fifth year in
a row that growth exceeded 30%.
Revenues for the year were $254.5 million, an increase of 27.5% over the previous year. Non-
interest income for the year was $199.8 million, or 78.5% of total revenue, consisting primarily of
capital gains on the Bank’s investment portfolio. Interest income of $54.6 million represented
approximately 21.5% of total revenue, up from $39.8 million in 2002.
Service fees and commissions increased 34.2% to $75.6 million in 2003. Referral fees increased
27.6% to $43 million, and management fees increased 34.1% to $28.4 million over the prior year.
Commissions on private banking rose 184.5% over 2002 to $4.2 million.
Insurance expense for 2003 was $1.1 million, a 94.9% increase. The increase was primarily due to
the growth in asset size, a 25% increase in the global markets, and insurance for new facilities we
occupied during 2003.
In 2003, we shifted our marketing thrust from a broader market focus to a face-to-face client
approach. This resulted in a 58.2% decrease in marketing fees to $765,351, compared to $1.8 million
in 2002.
Salaries and wages expense increased 40.5% to $2.5 million, compared to $1.8 million in 2002.
This increase was primarily due to the expansion of the Bank’s Private Banking operations and the
addition of six new employees.
As of December 31, 2003, stockholder’s equity reached $135 million, up 34.1% from $100.7
million on December 31, 2002. This enhanced capital base is primarily the result of a 52% increase in
retained earnings, reflecting our strong profitability in 2003.

Page 16
O perations
In 2003, Antigua assumed the chairmanship of the Caribbean Financial Action Task Force
(CFATF). This is another testament to the high level of compliance in the country. Moreover,
Antigua enhanced its already stringent regulations in due diligence and compliance through the
yearly on-site examination conducted by the Financial Sector Regulatory Commission.
The Bank upgraded and streamlined its technological platform. We automated our mailing
department and installed fraud detection software for credit cards. The Bank’s new website,
stanfordinternationalbank.com, was introduced.
We will continue to look at new technologies that will help us deliver more products and
services to our clients.

Looking Ahead
Despite our strong performance, we are very cognizant of the uncertainties facing the world’s
investors today. The current political and financial climate is not unlike previous periods of war and
upheaval, some of which precipitated economic and market disruptions.
We know that even in times of relative peace, economies and markets go through cyclical
corrections. The strong traditions of the Stanford Financial Group of companies – conservative
wealth management, customer service, and attention to even the smallest detail – have helped us
and our clients weather every financial storm over the past 71 years.
Strict adherence to both our bedrock principles of hard work and client service, combined with
our commitment to evolving modern banking practices and technologies, will continue to maximize
customer security and returns on investment.

I want to thank you for placing your trust in us.

R. Allen Stanford
Chairman
Page 17
 Profit and Loss Statement
For the Year Ended 31 December 2003
(Expressed in United States dollars)

NOTE
2003 2002

Figure III
Interest and Non-Interest Income OPERATING INCOME
Dollars (in millions) 2 Interest and Non-Interest Income (see Figure III) $254,463,299 $ 199,520,387
300 17 Less: Interest Paid 134,018,893 109,874,389
3 Service Fees and Commissions 75,595,535 56,345,644
250 Net Interest and Non-Interest Income
before Operating Expenses $ 44,848,871 $ 33,300,354
200

150 OPERATING EXPENSES

4 Salaries and Other Staff Costs $ 2,461,507 $ 1,752,237
100 5 Directors’ Emoluments 90,000 90,000
Bank Charges 333,022 116,221
50 6 Professional Fees 823,448 188,765
7 Office and General Expenses 1,333,564 1,033,766
0 Electricity and Water Charges 152,751 152,014
2001 2002 2003
Telephone, Telex and Fax 600,687 420,904
8 Insurance 1,114,503 571,949
Licences and Permits 77,045 82,934
9 Rent 848,000 762,324
Figure IV 10 Depreciation and Amortisation 816,181 570,983
Operating Profit Repairs and Maintenance 471,952 436,842
Dollars (in millions) 11 Advertising and Promotion 765,351 1,830,949
12 Travel and Accommodations 1,757,748 1,365,566
35
Subscriptions and Donations 81,300 219,001
30
TOTAL OPERATING EXPENSES $ 11,727,059 $ 9,594,455
25

20 OPERATING PROFIT (see Figure IV) $ 33,121,812 $ 23,705,899

15

10
5
0
2001 2002 2003

Page 18
Balance Sheet
As at 31 December 2003
(Expressed in United States dollars)

NOTE
2003 2002

ASSETS Figure V
13 Cash and Deposits with Other Banks $ 107,905,385 $ 108,256,054 Customer Deposits and Current Assets
14 Advances to Customers and Other Accounts 29,489,156 26,450,984 Dollars (in billions)
Current Assets (see Figure V) 137,394,541 134,707,038
2.1

15 Investments 2,082,492,300 1,573,287,438 1.8

16 Fixed Assets 5,619,185 5,760,866 1.5
TOTAL ASSETS $ 2,225,506,026 $ 1,713,755,342
1.2
Financed By: 0.9
LIABILITIES AND SHAREHOLDER’S EQUITY
17 Customer Deposits (see Figure V) $ 2,083,397,998 $ 1,606,062,398 0.6
18 Accounts Payable and Accruals 7,079,409 6,986,137 0.3
TOTAL LIABILITIES $ 2,090,477,407 $ 1,613,048,535
0.0
2001 2002 2003
19 Share Capital $ 10,000,000 $ 10,000,000 Customer Deposits Current Assets
20 Share Premium Account 28,200,000 27,000,000
21 Retained Earnings (see Figure VI) 96,828,619 63,706,807
TOTAL SHAREHOLDER’S EQUITY (see Figure VI) $ 135,028,619 $ 100,706,807

TOTAL LIABILITIES AND SHAREHOLDER’S EQUITY $ 2,225,506,026 $ 1,713,755,342 Figure VI

Retained Earnings and Shareholder’s Equity
Dollars (in millions)
Approved on behalf of the Board:
140
120

James M. Davis O.Y. Goswick 100

Director and Chief Financial Officer Director 80
60
40
20
0
2001 2002 2003
Retained Earnings Shareholder’s Equity

Page 19
 Statement of Cash Flows
For the Year Ended 31 December 2003
(Expressed in United States dollars)

2003 2002

NET CASH FLOW FROM OPERATING ACTIVITIES

Operating Profit for the Year $ 33,121,812 $ 23,705,899
Depreciation of Fixed Assets 816,181 570,983
Loss from Sale of Fixed Assets 0 0
Increase in Investments (509,204,862) (504,342,831)
Increase in Advances to Customers (3,886,525) (1,669,975)
(Increase)/Decrease in Accounts Receivable and Prepayments 848,353 (296,588)
Increase in Customer Accounts 477,335,600 489,607,812
Increase in Other Liabilities 93,272 611,339
NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES $ (876,169) $ 8,186,639

INVESTING ACTIVITIES
Payment to Acquire Tangible Fixed Assets $ (674,500) $ (4,351,917)
Receipts from Sale of Tangible Fixed Assets 0 2,860,485
NET CASH OUTFLOW FROM INVESTING ACTIVITIES $ (674,500) $ (1,491,432)

FINANCING ACTIVITIES
Contribution to Share Premium Account $ 1,200,000 $ 2,000,000
NET CASH INFLOW FROM FINANCING ACTIVITIES $ 1,200,000 $ 2,000,000

Increase/(Decrease) in Cash and Cash Equivalents $ (350,669) $ 8,695,207

Figure VII
Cash CASH BALANCE AT BEGINNING OF YEAR $108,256,054 $ 99,560,847
Dollars (in millions)
CASH BALANCE AT END OF YEAR (see Figure VII) $107,905,385 $108,256,054
110
108
106
104
102
100
98
96
94
2001 2002 2003

Page 20
Notes to the Financial Statements
(Expressed in United States dollars)

Stanford International Bank is registered under the International Business Corporation Act No. 28 of 1982 as amended. The Bank’s activities are governed by
this Act and by every other Act currently in force concerning international business corporations and affecting the corporation in Antigua and Barbuda, West
Indies. The corporation provides financial services to the international market.

NOTE 1 ACCOUNTING AND INVESTMENT POLICIES

Basis of Preparation
The accompanying financial statements present the financial condition and results of operations of Stanford International Bank. The
financial statements include the accounts of Stanford International Bank. The accounts have been prepared under the historical cost
convention and in accordance with applicable accounting standards. Certain amounts may have been reclassified to conform to current year
classifications. A description of significant accounting policies is presented below.

Foreign Currencies
Assets and liabilities in foreign currencies are translated at the rates of exchange ruling on the balance sheet date, or at the Forward Foreign
Rate Ruling at that date, as appropriate. All other exchange differences are included in operating profit based on the spot rate in effect during
the month in which the individual transactions are recorded.

Cash
Includes cash on hand, amounts due from correspondent banks and cash items in the process of collection.

Commitments and Contingencies

Contingent liabilities are credit-related instruments, which include acceptances, letters of credit, guarantees and commitments to extend
credit. Contractual amounts of letters of credit at 31 December 2003, totalled $6,290,243 and at 31 December 2002, totalled $6,759,191.

These contractual amounts represent the amounts at risk should the contract be fully drawn upon. Letters of credit are secured by customers’
cash deposits with the Bank at an amount equal to or greater than the letters of credit. Since effectively all commitments are expected to
expire without being drawn upon, the contract amount is not representative of future liquidity requirements.

As at 31 December 2003, there were no contingencies, claims or lawsuits against the Bank that would, in the opinion of management, have a
material effect on its financial condition or results of operation.

Financial Statements
Derivatives
These financial instruments, commonly referred to as derivatives, are contracts, the characteristics of which are derived from those of the
underlying assets, interest and exchange rates or indices. They include futures, forwards, swaps and options transactions in the foreign
exchange, interest rate and equity markets. Transactions are negotiated directly with customers, with Stanford International Bank acting as a
counterparty, or can be dealt through exchanges.

Page 21
 NOTES TO THE FINANCIAL STATEMENTS, CONTINUED

Nature and terms of derivatives

The following outlines the nature and terms of the most common types of derivatives used by Stanford International Bank.

Exchange rate contracts

Forward foreign exchange contracts are agreements to buy or sell fixed amounts of currency at agreed rates of exchange on a specified
future date.

Cross-currency swaps are agreements to exchange, and on termination of the swap re-exchange, principal amounts denominated in
different currencies. Cross-currency swaps may involve the exchange of interest payments in one specified currency for interest payments in
another specified currency for a specified period.

Currency futures are typically exchange-traded agreements to buy or sell standard amounts of a specified currency at an agreed exchange
rate on a standard future date.

Currency options give the buyer, on payment of a premium, the right, but not the obligation, to buy or sell specified amounts of currency
at agreed rates of exchange on or before a specified future date.

Interest rate contracts

Interest-rate swaps involve the exchange of interest rate obligations with a counterparty for a specified period without exchanging
the underlying (or notional) principal. Stanford International Bank may enter a swap transaction either as an intermediary or as a
direct counterparty.

Interest-rate futures are typically exchange-traded agreements to buy or sell a standard amount of a specified fixed income security or
time deposit at an agreed interest rate on a standard future date.
Forward rate agreements give the buyer the ability to determine the underlying rate of interest for a specified period commencing
on a specified future date (the “settlement date”). There is no exchange of principal, and settlement is effected on the settlement date.
The settlement amount is calculated by reference to the difference between the contract rate and the market rate prevailing on the
settlement date.

Interest-rate options give the buyer, on payment of a premium the right, but not the obligation, to fix the rate of interest on a future
deposit or loan, for a specified period and commencing on a specified future date.

Interest-rate caps and floors give the buyer the ability to fix the maximum or minimum rate of interest. There is no facility to deposit
or draw down funds; instead the writer pays to the buyer the amount by which the market rate exceeds or is less than the cap rate or the
floor rate respectively. A combination of an interest-rate cap and floor is known as an interest-rate collar.

Page 22
NOTES TO THE FINANCIAL STATEMENTS, CONTINUED

Equities contracts
Equities options give the buyer, on payment of a premium, the right, but not the obligation, to buy or sell a specified amount of equities
or a basket of equities in the form of published indices.
Equities futures are typically exchange-traded agreements to buy or sell a standard quantity of a specific equity at a future date, at a price
decided at the time the contract is made, and may be settled in cash or through delivery.

Uses of derivatives
Users of derivatives typically want to convert an unwanted risk generated by their business to a more acceptable risk, or cash. Derivatives
provide an effective tool for companies to manage the financial risks associated with their business and, as a consequence, there has been a
significant growth in derivatives transactions in recent years.

Stanford International Bank can accumulate significant open positions in derivatives portfolios. These positions are managed constantly to
ensure that they are within acceptable risk levels, with offsetting positions being undertaken to achieve this where necessary. Stanford
International Bank uses derivatives in the management of portfolios and structural positions.

Risk associated with derivatives

Derivative instruments are subject to both market risk and credit risk.

Market risk
The market risk associated with derivatives can be significant since large positions can be accumulated with a substantially smaller initial
outlay than required in cash markets. Recognising this, only advisory groups and managers with sufficient derivative product expertise and
appropriate control systems are authorised to trade derivative products. The management of market risk arising from our derivatives
business is monitored closely on a routine basis.

Credit risk
Credit risk relative to a derivative is principally the replacement cost of any contract with a positive mark-to-market gain and an estimate
for the potential future change in value, reflecting the volatilities affecting the contract. Credit risk on contracts having a negative mark-
to-market value is restricted to the potential future change in value. Credit risk on derivatives is, therefore, small in relation to a
comparable balance sheet risk. In addition, credit exposure with individual counterparties can be reduced by close-out netting agreements
which allow for positive and negative mark-to-market values on different transactions to be offset and settled by a single payment in the
event of default by either party. Such agreements are enforceable in the jurisdictions of the major market makers and Stanford
International Bank has executed close-out netting agreements with the majority of its counterparties, notwithstanding the fact that Stanford
International Bank deals only with the most creditworthy counterparties.

Page 23
 NOTES TO THE FINANCIAL STATEMENTS, CONTINUED

Fixed Assets and Depreciation

Premises and equipment are stated at cost, less accumulated depreciation and amortisation. For reporting, depreciation is computed
using the straight-line method throughout the estimated useful life of the assets. Additions to premises are capitalised, including all
associated construction costs. Maintenance repairs and minor replacements are expensed. Gains and losses on disposals of assets are
reflected in current operations.

Current Rates of Depreciation:

Building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5%
Computer Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20%
Furniture and Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7%
Leasehold Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20%
Motor Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20%

Income Tax
The Bank has made no provision for income tax against earnings pursuant to the Banking Act of 1969 (as revised). The amendments enacted
to the International Business Corporation Act Cap 222 in 2001 provided for a three percent (3%) tax on chargeable income as defined by the
Act; however, the amendments were repealed in 2003.

Service Agreement
Stanford International Bank and Stanford Financial Group had a marketing and client services contract in force during 2003, which provided
the Bank with professional marketing and management services for a negotiated fee. This contract was renewed for the 2003 calendar year on
29 December 2002. A referral fee agreement with Stanford Group Company and Stanford Trust Company Ltd. was also in place during 2003.
(See Note 3 ~ Service Fees and Commissions.)

2003 2002
Figure VIII
NOTE 2 INTEREST AND NON-INTEREST INCOME
Interest and Non-Interest Income
Dollars (in millions) Interest Income (see Figure VIII) $ 54,626,871 $ 39,827,042
Non-Interest Income (see Figure VIII) 199,836,428 159,693,345
300
$254,463,299 $ 199,520,387

250
Non-interest income earned consists of net gains over losses in cash positions and investment portfolios, management fees, loan origination
200 fees, revenues from leased properties, and American Express® income. Gains and losses are booked on a recognised and specific identity
150 basis at the time the transaction takes place.

100
50

0
2001 2002 2003
Interest Income Non-Interest Income

Page 24
NOTES TO THE FINANCIAL STATEMENTS, CONTINUED

2003 2002

NOTE 3 SERVICE FEES AND COMMISSIONS (see Figure IX)

Referral Fees $ 42,966,032 $ 33,672,666
Management Fees (see Figure X) 28,419,996 21,193,479 Figure IX
Commissions 4,209,507 1,479,499 Service Fees and Commissions
$ 75,595,535 $ 56,345,644 Dollars (in millions)
45
The referral fee paid to Stanford Group Company and Stanford Trust Company Ltd. is a percentage of the managed client portfolio. The fee is
40
negotiated annually. (See Note 1 ~ Service Agreement.)
35
Management fees consist of expenses related to the marketing and service agreement in place with Stanford Financial Group Company. (See 30
Note 1 ~ Accounting and Investment Policies.) These services include establishing and implementing trading policy, customer 25
communications, market research and branding, government and public relations, technology, treasury-related functions and other related 20
and administrative costs. 15
10
Commissions paid relate to amounts paid to officers in the Bank’s Private Banking Department. Increase in commissions reflects the
5
expansion of the Private Banking Department.
0
2001 2002 2003
Commissions
Management Fees Referral Fees

Figure X
Management Fees

Treasury
Technology 1% Professional
2% Services
Trading 1%
Policy
1%
Government and
Public Relations
8%

Communications,
Administrative Branding and
36% Market Research
51%

Page 25
 NOTES TO THE FINANCIAL STATEMENTS, CONTINUED

2003 2002

NOTE 4 SALARIES AND OTHER STAFF COSTS (see Figure XI)

Wages and Salaries $ 1,430,237 $ 1,241,419
Company Portion of Payroll Taxes 196,980 96,862
Employee Insurance 133,797 58,633
Employee Benefits 94,616 97,509
Personnel Recruitment, Training and Education 605,877 257,814
$ 2,461,507 $ 1,752,237

The expansion of the Bank’s Private Banking Department resulted in increased expense for Wages and Salaries and Recruitment.

NOTE 5 DIRECTORS’ EMOLUMENTS

These fees represent the aggregate emoluments of the Board of Directors, which is composed of seven persons. This amount is paid by reason
of their responsibilities.

Fees and Expenses $ 90,000 $ 90,000

NOTE 6 PROFESSIONAL FEES

Legal and Professional Fees $ 757,448 $ 122,765
Audit Fees 66,000 66,000
$ 823,448 $ 188,765

Figure XI
Salaries and Other Staff Costs
Dollars (in millions)

2.5

2.0

1.5

1.0

0.5

0.0
2001 2002 2003
Wages and Salaries
Salaries and Other Staff Costs

Page 26
NOTES TO THE FINANCIAL STATEMENTS, CONTINUED

2003 2002

NOTE 7 OFFICE AND GENERAL EXPENSES (see Figure XII)

Printing $ 26,436 $ 70,326
Overnight and Foreign Mail Delivery 468,718 342,670
Postage 2,128 18,163
Stationery 51,256 37,503
Office Supplies 383,100 240,940
Computer Consulting, Software and Supplies 30,410 70,795
Office Equipment Rental 42 46
Data Processing 7,549 7,897
Delivery Services 161,837 150,677
Facility Maintenance 143,915 13,847
Security 58,173 80,902
$ 1,333,564 $ 1,033,766

The increase in client deposits and staffing resulted in a corresponding increase to Office and General Expenses.

NOTE 8 INSURANCE
The insurance coverages of the Bank include Property and Casualty, Exporter’s Package, Vehicle, Workers’ Compensation and Travel. Fidelity
coverages include Banker’s Blanket Bond, Directors’ and Officers’ Liability, and Errors and Omissions liability coverages. The Bank also
maintains Depository Insolvency coverage for its correspondent banks.
$ 1,114,503 $ 571,949

The insurance program was reviewed by Stogniew & Associates in June 2003. The primary objective was to provide additional information
concerning the risk management and internal controls implemented to minimise exposure to loss. The results of the survey found that the Figure XII
Bank had reasonable internal controls and risk management systems in place. The survey further stated that no material weaknesses in Office and General Expenses
these areas were found.
Security Printing
NOTE 9 RENT 4% 2%
Facility Maintenance Overnight and
The Bank renegotiated a 20-year building lease in April 2002. The new terms call for a rental fee of $848,000 per annum. 11% Foreign Mail Delivery
35%

Building $ 848,000 $ 762,324 Delivery Services

12%

Data Processing
1%

Computer
Consulting, Software
and Supplies
2%
Stationery
Office Supplies and 4%
Equipment Rental
29%

Page 27
 NOTES TO THE FINANCIAL STATEMENTS, CONTINUED

2003 2002

NOTE 10 DEPRECIATION AND AMORTISATION (see Figure XIII)

Building $ 244,681 $ 244,681
Leasehold Improvements 322 1,723
Figure XIII Computers and Software 406,634 212,302
Depreciation and Amortisation Expense Furniture and Equipment 77,259 62,431
Dollars (in thousands) Motor Vehicles 87,285 49,846
$ 816,181 $ 570,983
900
800 Leasehold
The increase in Computer and Software Amortisation expense was attributed to the implementation of the new International Banking Software
Improvements that is being amortised over a five-year period.
700 Motor Vehicles
600 Furniture and
NOTE 11 ADVERTISING AND PROMOTION
Equipment
500 Computers and
Advertising $ 286,770 $ 1,072,585
Software Brochure/Marketing Supplies 478,581 758,364
400
Building $ 765,351 $ 1,830,949
300
The Bank continues its advertising and marketing campaigns, with new strategies to focus on specific markets. These strategies involve an
200
increase in personal marketing and a decrease in broad based print media.
100
0 NOTE 12 TRAVEL AND ACCOMMODATIONS (see Figure XIV)
2001 2002 2003 Airfares $ 680,401 $ 264,135
Hotel/Lodging 792,417 454,886
Meals/Food 188,143 49,828
Figure XIV Travel and Entertainment 96,787 596,717
Travel and Accommodations $ 1,757,748 $ 1,365,566
Dollars (in thousands)
800 The increase in Private Banking staff is also reflected in an increase to Travel and Accommodations expense.
700
600
500
400
300
200
100
0
2001 2002 2003
Airfares Meals/Food
Hotel/Lodging Travel and Entertainment

Page 28
NOTES TO THE FINANCIAL STATEMENTS, CONTINUED

2003 2002

NOTE 13 CASH POSITIONS

The Table below shows positions at 31 December 2003 translated into U.S. dollars.

Currency:
British Pound $ 1,696 $ 0
Canadian Dollar 370,549 277,202
Eastern Caribbean Dollar 6,298 2,020
Euro 574,689 0
United States Dollar 106,952,153 107,976,832
$107,905,385 $108,256,054

NOTE 14 ADVANCES TO CUSTOMERS AND OTHER ACCOUNTS (see Figure XV)

Banking Advances to Customers $ 24,220,324 $ 20,333,799
Prepaid Items 4,915,898 5,648,213
Accounts Receivable 352,934 468,972
$ 29,489,156 $ 26,450,984

Gross Advances are repayable as follows:

Within one year $ 18,462,537 $ 14,335,269
Between one and three years 4,176,142 5,736,487
More than three years 1,581,645 262,043

Figure XV
Advances to Customers and Other Accounts
Dollars (in millions)

25
20
15
10
5

0
2001 2002 2003
Banking Advances to Customers
Prepaid Items
Accounts Receivable

Page 29
 NOTES TO THE FINANCIAL STATEMENTS, CONTINUED

2003 2002

NOTE 15 INVESTMENTS (see Figures XVI and XVII)

The investment portfolio consists of bonds, notes and equities.
The portfolio is stated at the lower of either cost or market value.

Investments–Listed Securities
Figure XVI
Equities $ 1,032,301,291 $ 720,951,040
Investment Portfolio
Treasury Bonds, Notes, and Corporate Bonds 1,050,191,009 852,336,398
Precious
$ 2,082,492,300 $1,573,287,438
Cash and
Metals Fiduciary
8% 11%
All listed securities of or guaranteed by various governments mature on fixed dates up to 30 years. These investments are generally listed
Bonds on major international exchanges and are deemed highly liquid.
42%

Equity
39%

Figure XVII
Investments
Dollars (in millions)

1,200
1,000
800
600
400
200
0
2001 2002 2003
Equities
Treasury Bonds, Notes, and Corporate Bonds

Page 30
NOTES TO THE FINANCIAL STATEMENTS, CONTINUED

Sector Allocations (see Figure XVIII)

The Bank’s investment strategy is set annually by the Board of Directors and reviewed quarterly. Any deviation from the strategy approved by
the Board is subject to the approval of the Investment Committee of the Board of Directors. Generally, the asset allocation is kept within the
following parameters:
(a) Cash and fiduciary deposits (10-15% of the total portfolio)
(b) Government bonds (20-50% of the total portfolio)
(c) Corporate bonds (0-20% of the total portfolio)
(d) Equities (0-50% of the total portfolio)

Within the above asset allocation parameters, further diversification is obtained by allocations to differing economic sectors, issuers,
currencies, and geographic areas.

Figure XVIII below indicates sector allocations as at 31 December 2003.

Figure XVIII
Equity Allocation by Sector
Staples Cyclical
12% 13%
Services
6%

Retail Financial
3% 14%

Health
4%

Energy
13%
Technology
21%
Utilities
Other 4%
10%

Page 31
 NOTES TO THE FINANCIAL STATEMENTS, CONTINUED

Investments
Government bonds and securities of semi-governmental authorities are included at amortised value. The premium or discount on purchases
of these securities is amortised to profit and loss on a constant yield basis over the period of maturity. In the event of sale, any differences
between amortised value and proceeds are taken to profit and loss.
Other investment securities are stated at the lower of either cost or market value. Gains and losses on disposition are included in non-
Figure XIX interest income as of the transaction date, based upon the net proceeds and the adjusted carrying amount of the investment sold, using the
Net Fixed Assets specific identification method. Net interest earned is included in interest income.
Dollars (in millions)
Financial Futures
6.0 Outstanding financial future contracts represent commitments to buy and sell underlying financial instruments in the future and are
accounted for on a recognition and specific identity basis as explained below.
5.0
Future contracts and forward rate agreements are entered into for the purpose of asset and liability management and trading account
4.0
activities. Realised gains and losses associated with trading financial futures are taken immediately to profit and loss. Unrealised gains and
losses associated with changes in market value of trading financial futures are also taken into account at year end. Realised gains and losses
3.0 associated with financial futures entered into for asset and liability management are deferred and amortised over the period of identified
interest rate.
2.0
NOTE 16 FIXED ASSETS (see Figures XIX and XX)
1.0 COST ACCUMULATED 2003 2002
DEPRECIATION NET VALUE NET VALUE
0.0
2001 2002 2003 Building $ 4,893,620 $ 2,748,043 $ 2,145,577 $ 2,390,259
Computers and Software 2,319,882 580,513 1,739,369 1,644,574
Furniture and Equipment 1,021,310 235,220 786,090 777,397
Leasehold Improvements 2,865 358 2,507 2,829
Motor Vehicles 457,696 179,361 278,335 321,582
Figure XX Artwork 56,786 0 56,786 56,786
Fixed Assets Land 573,293 0 573,293 267,667
Work In
Land
10% Progress Work In Progress 37,228 0 37,228 299,772
1% Building and $ 9,362,680 $ 3,743,495 $ 5,619,185 $ 5,760,866
Artwork Leasehold
1% 38%
Motor Vehicles
5%

Furniture and
Equipment
14%

Computers and
Software
31%

Page 32
NOTES TO THE FINANCIAL STATEMENTS, CONTINUED
NOTE 17 CUSTOMER DEPOSITS (see Figure XXI)

Express Accounts
Funds from these accounts are generally invested in short-term instruments, eurodollar and foreign currency deposits.

Performance Accounts
Funds from these accounts are generally invested in investment-grade bonds, securities, and eurodollar and foreign
currency deposits. Figure XXI
Customer Deposits and Certificates of Deposit
Premium Accounts Dollars (in billions)
Funds from these accounts are invested solely in United States Treasury bills and notes.
2.1
Certificates of Deposit 1.8
The Certificates of Deposit accounts guarantee payment of the stated interest rate until maturity. Funds from these accounts are generally 1.5
invested in investment-grade bonds, securities, and eurodollar and foreign currency deposits.
1.2
FlexCD SM–A certificate of deposit that accepts additional deposits and withdrawals (up to 25% of the balance and a max of 4 per year) 0.9
without incurring early withdrawal penalties or additional fees. This product is available in most international currencies.
0.6
FixedCD SM–A certificate of deposit that does not accept additional deposits, and withdrawals are subject to early withdrawal penalties.
This product is available in most international currencies. 0.3

ILCD–A certificate of deposit that is linked to the performance of either the S&P 500 Index, NASDAQ 100 Index or the Dow Jones Europe 0.0
2001 2002 2003
STOXX 50 Index. The investor is guaranteed a minimum of the FixedCD rate listed above. The interest paid on this product is computed at
maturity, and is the greater of the guaranteed FixedCD rate or an index-linked return. This product does not renew automatically, is only Customer Deposits
available in U.S. dollars, and early withdrawals are subject to a withdrawal penalty. Certificates of Deposit

2003 2002

Express Accounts $ 44,836,446 $ 26,015,754 Figure XXII

Performance Accounts 5,028,431 12,021,936 Certificates of Deposit
Premium Accounts 0 150,478
FlexCD (see Figure XXII) 1,036,717,223 848,923,080 ILCD
0.60%
FixedCD (see Figure XXII) 984,587,692 711,762,496 FixedCD
Index-Linked Certificates of Deposit (ILCD) (see Figure XXII) 12,228,206 7,188,654 48.42%
$ 2,083,397,998 $1,606,062,398 FlexCD
50.98%

Page 33
 NOTES TO THE FINANCIAL STATEMENTS, CONTINUED
2003 2002

The components of interest expense on deposits for the year ended 31 December 2003 were:

Express Accounts $ 551,657 $ 441,763

Performance Accounts 189,462 340,075
Premium Accounts 351 2,961
Figure XXIII FlexCD 71,480,258 61,168,818
Accounts Payable and Accruals FixedCD 60,943,584 47,570,306
Dollars (in millions) Index-Linked Certificates of Deposit (ILCD) 853,581 350,466
$ 134,018,893 $ 109,874,389
Deposits per account on an average basis:
10 Express Accounts $ 35,668,016 $ 22,702,692
Performance Accounts 6,763,854 8,807,037
8 Premium Accounts 11,793 124,388
FlexCD 958,735,471 752,643,425
6 FixedCD 851,135,571 593,100,704
Index-Linked Certificates of Deposit (ILCD) 10,173,488 6,055,052
4 $ 1,862,488,193 $ 1,383,433,298

2 NOTE 18 ACCOUNTS PAYABLE AND ACCRUALS (see Figure XXIII)

Accounts Payable $ 1,613,800 $ 3,584,912
0 Deposits Awaiting Credit 5,465,609 3,401,225
2001 2002 2003 $ 7,079,409 $ 6,986,137
Amounts in 2002 were reclassified to meet changes in reporting for 2003.
Deposits Awaiting Credit Accounts Payable

NOTE 19 SHARE CAPITAL

Authorised Share Capital, Issued and Fully Paid
100,000 Common Shares of $100 each $ 10,000,000 $ 10,000,000
Figure XXIV NOTE 20 SHARE PREMIUM ACCOUNT
Retained Earnings Paid-in Capital in Excess of Par Value $ 28,200,000 $ 27,000,000
Dollars (in millions)
The shareholder contributed an additional $1,200,000 to Paid-in Capital
in excess of the par value.
120
NOTE 21 RETAINED EARNINGS (see Figure XXIV)
100 Income Earned in Prior Years $ 63,706,807 $ 40,000,908
Income Earned This Year $ 33,121,812 $ 23,705,899
80 Accumulated Income $ 96,828,619 $ 63,706,807
Income Carried Forward $ 96,828,619 $ 63,706,807
60

40
20

0
2001 2002 2003

Page 34
NOTES TO THE FINANCIAL STATEMENTS, CONTINUED

NOTE 22 INTERNATIONAL BUSINESS CORPORATION (IBC) ACT DISCLOSURE INFORMATION

Under authority of section 350 of the IBC Act, the Bank is required to disclose the following information as it pertains to expenses that
impact the national economy of Antigua and Barbuda.

2003 2002

Operating Expenses (see Figures XXV and XXVI) Figure XXV

Salaries $ 1,246,902 $ 1,617,011 Headquarters Expenses
Other Staff Cost 557,738 498,727 Dollars (in millions)
Vehicle Expense 14,786 10,131 6
Rent 1,261,353 762,324
Professional Fees 111,991 118,666 5
Electricity 152,752 203,329
Telephone/Fax 292,694 376,306 4
Travel and Entertainment 178,407 241,516
General Office 665,799 550,824 3
Insurance 141,160 291,119
Management Fees–Local 457,166 0 2
Repairs and Maintenance 54,431 426,059
Subscriptions and Donations 68,880 7,992 1
Licences and Permits 71,706 71,706
0
Capital Expenses 2001 2002 2003
Vehicle Purchases $ 371,279 $ 233,870
Duty and Taxes Paid on Fixed Assets 0 0

Figure XXVI
Headquarters Expenses

Other Expenses
Repairs and 12% Salaries
Maintenance 23%
1%
Insurance
3%

General Office
13%

Travel and
Entertainment
3% Other
Staff Cost
Phone/Fax 11%
6%
Electricity Rent
3% Professional Fees
2% 23%

Page 35
 Auditors’ Report
We have audited the financial statements on pages 21 to
38 of Stanford International Bank Ltd. for the year ended 31
December 2003, which comprises of the profit and loss account,
balance sheet, cash flow statement and the related notes numbered
1 to 22. The financial statements have been prepared under the
accounting policies set out therein.
Respective Responsibilities of
Directors and Auditors
The directors are responsible for preparing the annual report
and the financial statements in accordance with applicable law and
international accounting standards. Our responsibility is to audit
the financial statements in accordance with relevant legal and
regulatory requirements, and international auditing standards.
We report to you our opinion as to whether the financial
statements give a true and fair view and are properly prepared in
accordance with companies law. We also report, if in our opinion,
the directors report is not consistent with the financial statements,
if the company has not kept proper accounting records, if we have
not received all the information and explanation we require for our
audit, or if information specified by law regarding directors’
emoluments and transactions with the company is not disclosed.
Basis of Opinion
We conducted our audit in accordance with international
auditing standards. An audit includes examination, on a test basis,
Page 36
of evidence relevant to the amounts and disclosures in the financial
statements. It also includes an assessment of the significant
estimates and judgements made by the directors in the preparation
of the financial statements, and whether the accounting policies are
appropriate to the circumstances of the company, consistently
applied and adequately disclosed.
We planned and performed our audit so as to obtain all the
information and explanation which we considered necessary in
order to provide us with sufficient evidence to give reasonable
assurance that the financial statements are free from material
misstatement, whether caused by fraud or other irregularity or error.
In forming our opinion, we also evaluated the overall adequacy of
the presentation of information in the financial statements.
Opinion
In our opinion the financial statements give a true and fair view
of the state of affairs of the company at 31 December 2003 and of
its profit (loss) for the year then ended, and have been properly
prepared in accordance with companies law and international
financial reporting standards.
C.A.S. Hewlett & Co.
Chartered Accountants
St. Johns Street, St. John’s, Antigua.
25 February 2004
Report of Management
The management of Stanford International Bank is they review and make tests, as appropriate, of the data included
responsible for the preparation, integrity and objectivity of the in the financial statements.
financial statements of the Bank. The financial statements and The Board of Directors discharges its responsibility for the
notes have been prepared by the Bank in accordance with Bank’s financial statements through its Audit Committee. The
approved accounting standards, and in the judgement of Audit Committee meets periodically with the independent
management, present fairly and consistently the Bank’s financial accountants, internal auditors and management. Both the
position and results of operations. The financial statements and independent accountants and the internal auditors have direct
other financial information in this annual report include access to the Audit Committee to discuss the scope and results
amounts that are based on management’s best estimates and of their work, the adequacy of internal accounting controls and
judgements and give due consideration to materiality. the quality of financial reporting.
The Bank maintains a system of internal accounting
controls to provide reasonable assurance that assets are
safeguarded, and that transactions are executed in accordance R. Allen Stanford James M. Davis
Chairman of the Board Director and CFO
with management’s authorisation and recorded properly to
permit the preparation of financial statements in accordance
with approved accounting standards. The internal audit
function of the Bank reviews, evaluates, monitors and makes
recommendations on both administrative and accounting
control, which acts as an integral but independent part of the
system of internal controls.
The Bank’s independent accountants were engaged to
perform an examination of the financial statements. This
examination provides an objective, outside review of
management’s responsibility to report operating results and
financial condition. Working with the Bank’s internal auditors,

Page 37
 Board of Directors Bank’s Management Auditors
R. Allen Stanford Juan Rodriguez-Tolentino C.A.S. Hewlett & Co.
Chairman of the Board President Chartered Accountants
St. John's Street, St. John's, Antigua

Insurance and Risk Managers

James A. Stanford James M. Davis
Chairman Emeritus Chief Financial Officer
Bowen, Miclette & Britt
James M. Davis Henricus E.J.M. van Bergen 1111 North Loop West
Chief Financial Officer Senior Vice President P.O. Box 922022
Houston, Texas 77292

Barristers and Solicitors

O.Y. Goswick Beverly M. Jacobs
Investments Operations Manager
Hunton & Williams
Kenneth C. Allen Q.C. Bhanoo P. Persaud, ACCA Barclays Financial Center
Secretary and Treasurer Accounting Manager 1111 Brickell Avenue

Compliance
Miami, Florida 33131
Sir Courtney N. Blackman, Ph.D.
International Banking Pedro E. Rodriguez, CRCM
Vice President & Senior Compliance Officer
Robert S. Winter
Insurance

Page 38
STANFORD INTERNATIONAL BANK LTD.
A MEMBER OF THE STANFORD FINANCIAL GROUP

No. 11 Pavilion Drive

St. John’s, Antigua, West Indies
(268) 480-3700
www.stanfordinternationalbank.com