GLOBAL RELATIONSHIPS

STANFORD INTERNATIONAL BANK LTD .

2004 ANNUAL REPORT
At Stanford International Bank we believe
that successful and lasting relationships are
always built on a foundation of trust, mutual
respect and a clear understanding of our
clients’ aspirations. We build relationships to
last for generations.
 wealth management
GLOBAL

page 2
“ In the years ahead, private client wealth management
will continue to become more complex. The preservation
and enhancement of capital, along with strategic tax and
estate planning of a multi-jurisdictional client base,
present many challenges for a 21st century financial
services firm. As a member of the Stanford Financial
Group, Stanford International Bank is well positioned to
meet these challenges today and tomorrow.”

R. Allen Stanford
Chairman

page 3
 Figure I Figure II
Earnings Assets and Deposits
Dollars (in millions) Dollars (in billions)
3.3
40 3.0
2.7
35
2.4 Total Assets
30 Total Deposits
2. 1
25 1 .8
20 1 .5

15 1 .2
0.9
10
0.6
5
0.3
0 0.0
2002 2003 2004 2002 2003 2004

page 4
Financial Highlights
For the Year Ended 31 December 2004
(Expressed in thousands of United States dollars)

2004 2003 2002

RESULTS
Total Revenue $ 33 1 ,890 $ 254,463 $ 199,520
Interest Paid to Customers 1 6 1 ,677 1 34, 01 9 109,874
Service Fees, Commissions
and Operating Expenses 1 33,999 87,323 65,940
Total Expenses 295,676 22 1 ,342 1 75,8 1 4

Earnings (see Figure I) $ 36, 2 1 4 $ 33, 1 2 1 $ 23, 706

CAPITAL
Shareholder’s Equity 246,543 1 35,029 1 00,70 7
Percent of Total Assets* 7.99% 6.07% 5.88%
Percent of Total Customer Deposits* 8.72% 6.48% 6.27%

YEAR-END BALANCES
Total Assets (see Figure II) $ 3,086,42 1 $ 2,225,506 $ 1,7 1 3,755
Total Deposits (see Figure II) $ 2,827,94 1 $ 2,083,398 $ 1,606,062

*Based on year-end equity as a percentage of year-end balances of assets and customer deposits.

page 5
 commitment
GLOBAL

Juan Rodriguez
President

page 6
Stanford International Bank is unique in the financial
services industry for one reason ... our people ... and
we proudly wear the Eagle shield as a symbol of our
commitment to the highest professional ethics.

page 7
 GLOBAL vision

Miguel Pacheco, Senior Vice President

Jim Davis, Chief Financial Officer
Beverly Jacobs, Operations Manager

page 8
Our vision is crystal clear. We will continue to grow our
business by employing only the best and the brightest,
by working harder than anyone in our industry and by
always placing our clients’ interests first in every
decision we make.

page 9
 Colette Hay, Executive Assistant

GLOBAL principles

page 1 0
The principles of hard work, clear vision and value for
the client are what guide Stanford International Bank’s
operations today – the same principles adhered to by
Lodis Stanford 73 years ago.

page 1 1
 SIB Private Client

GLOBAL
systems

page 1 2
We continue to add some of the industry’s most
advanced technology to our proprietary systems, giving
us powerful state-of-the-art tools that provide our clients
easy and secure global access to their accounts.

page 1 3
 GLOBAL

relationships

Oreste Tonarelli, Director of Training

page 1 4
Our clients reside around the world and our
relationships with them are conducted today as
they have been for three generations ... Built to Last.

page 1 5
Chairman’s Letter
On behalf of the Board of Directors, management and staff of Stanford International Bank, I am
pleased to present our 2004 Annual Report.

FINANCIAL PERFORMANCE REVIEW 2004

The Bank achieved strong growth in assets, deposits and profit in 2004. Assets totaled $3.1
billion, up 38.7 percent compared to 2003. Deposits increased 35.7 percent to $2.8 billion in
2004. The Bank reported its fifth consecutive year of record operating profit, reaching $36.2
million, a 9.3 percent increase compared to 2003.

Revenues for the year were $331.9 million, an increase of 30.4 percent compared to the
previous year. Non-interest income for the year was $275.1 million, or 82.9 percent of total
revenue, consisting primarily of capital gains on the Bank’s investment portfolio. Interest
income of $56.8 million represented approximately 17.1 percent of total revenue, an increase
from $54.6 million in 2003.

As of 31 December 2004, shareholder’s equity increased to $246.5 million, up 82.6 percent from
$135 million at the same time a year ago. This increase was a result of the Bank’s record net
earnings combined with a $75.3 million contribution to capital, which gave the Bank a
comfortable 8 percent equity to total assets ratio at year end.

INVESTMENT PHILOSOPHY
The Bank’s investment philosophy is to remain globally diversified in an assortment of asset
classes, such as stocks, bonds, commodities and currencies. Over the years this strategy has
produced consistent returns in both stable and volatile market environments. We will continue
to follow this philosophy, as mandated by the Board of Directors, remaining prudent yet
dynamic in our approach to investing and doing the hard work necessary to uncover
opportunities for our clients not found anywhere else.

$3 BILLION MILESTONE
The Bank achieved another milestone in 2004 by surpassing $3 billion in total assets at year end.
To put this into perspective, when compared to banks domiciled in the United States, Stanford
International Bank would rank in the top 3 percent.

OTHER SIGNIFICANT EVENTS IN 2004

Early in 2004, the Board of Directors made the decision to apply to the Canadian government’s
Office of Supervision of Financial Institutions (OSFI) for permission for the Bank to operate a
representative office in Montreal. Permission was granted, and December saw us open our
first-ever representative office outside Antigua.

The year also saw the International Monetary Fund (IMF) come to Antigua to conduct an
assessment of the international banking sector to determine compliance with Basel core
principles. I am pleased to report that Antigua and Barbuda received a very favorable
evaluation. The full report can be obtained from the IMF’s website at www.imf.org.

page 1 6
The Board of Directors approved Willis Limited as our financial insurance broker in 2004. They
greatly assisted the Bank in reviewing and strengthening our global coverage as well as holding
insurance costs to a modest 4.7 percent increase compared to 2003.

At year end, the Bank had more than 26,000 clients from 90 countries around the world.
Throughout 2004, a record number of these clients visited our state-of-the-art headquarters in
Antigua. Our doors are always open for a personal tour and to meet the individuals who provide
the world-class service synonymous with Stanford.

20-YEAR ANNIVERSARY
In 2005, Stanford International Bank will celebrate 20 years of operation. It is amazing in the
span of these two decades how technology has evolved and changed the world and how we live.
When the Bank was first founded, there was no Internet, computers were just entering the
workplace, fax machines were called telecopiers and cell phones were virtually nonexistent. As
important as technology has now become in conducting our global business, it will never replace
the human touch. We understand this. It is a defining difference that separates Stanford from
others in the international financial services industry.

THE FUTURE OF PRIVATE CLIENT WEALTH MANAGEMENT

In the years ahead, private client wealth management will continue to become more complex.
The preservation and enhancement of capital, along with strategic tax and estate planning of a
multi-jurisdictional client base, present many challenges for a 21st century financial services
firm. As a member of the Stanford Financial Group, the Bank is well positioned to meet these
challenges today and tomorrow.

A THANK YOU TO OUR EMPLOYEES

As always, we cannot accomplish what we do without the hard work and dedication of the
professionals who proudly wear our Eagle pin. I very much appreciate these individuals
who work tirelessly in the trenches and enable our productivity to be one of the highest in
the industry.

IN CLOSING
To our many loyal clients who have been with us over the years, I want to personally thank you
for allowing us the privilege to be of service to you and your families. On behalf of the Board of
Directors, management and all of our employees, we remain committed to providing the highest
levels of security, confidentiality and truly personalized service.

R. Allen Stanford
Chairman

page 1 7
 Figure III Figure IV
Interest and Non-Interest Income Operating Profit
Dollars (in millions) Dollars (in millions)

350 40

35
300
30
250
25
200
20
1 50
15
1 00
10
50 5

0 0
2002 2003 2004 2002 2003 2004

page 1 8
Profit and Loss Statement
For the Year Ended 31 December 2004
(Expressed in United States dollars)

NOTE
2004 2003

OPERATING INCOME
2 Interest and Non-Interest Income (see Figure III) $ 33 1 ,889,73 2 $ 254,463,299
17 Less: Interest Paid 1 6 1 ,6 77,476 1 34,0 1 8,893
3 Service Fees and Commissions 1 23,387,282 75,595,535
Net Interest and Non-Interest Income
before Operating Expenses $ 46,824,974 $ 44,848,87 1

OPERATING EXPENSES
4 Salaries and Other Staff Costs $ 2,099,423 $ 2,46 1 ,507
5 Directors’ Emoluments 90,000 90,000
Bank Charges 32 1 ,80 1 333,022
6 Professional Fees 983,823 823,448
7 Office and General Expenses 1 ,482,523 1 ,333,564
Electricity and Water Charges 99,4 1 2 1 52,7 5 1
Telephone, Telex and Fax 63 1 ,8 74 600,687
8 Insurance 1 , 1 66,520 1 , 1 1 4,503
Licences and Permits 1 44, 766 7 7,045
9 Rent 848,000 848,000
10 Depreciation and Amortisation 879,48 1 8 1 6, 1 8 1
Repairs and Maintenance 245,264 47 1 ,952
1 1 Advertising and Promotion 843,892 765,35 1
12 Travel and Accommodations 7 34,408 1 ,757 ,748
Subscriptions and Donations 39,8 1 0 8 1 ,300

TOTAL OPERATING EXPENSES $ 10,6 1 0,99 7 $ 1 1 ,727,059

OPERATING PROFIT (see Figure IV) $ 36,2 1 3,9 7 7 $ 33, 12 1 ,8 1 2

page 1 9
 Figure V Figure VI
Customer Deposits and Investments Retained Earnings & Shareholder’s Equity
Dollars (in billions) Dollars (in millions)

3.0 280

2.5 240

2.0 200

1 60
1 .5
1 20
1 .0
80
0.5
40
0.0
2002 2003 2004 0
Customer Deposits Investments 2002 2003 2004
Retained Earnings Shareholder’s Equity

page 20
Balance
As at 31 December 2004
Sheet
(Expressed in United States dollars)

NOTE
2004 2003

ASSETS
13 Cash and Deposits with Other Banks $ 1 97,704, 1 89 $ 1 07,905,385
14 Advances to Customers and Other Accounts 33,453,387 29,489, 1 56
Current Assets 23 1 , 1 57,576 1 37,394,54 1

15 Investments (see Figure V) 2,848,066,953 2,082,492,300

16 Fixed Assets 7, 1 96,93 1 5,6 1 9, 1 85
TOTAL ASSETS $ 3,086,42 1 ,460 $ 2,225,506,026

Financed by:
LIABILITIES AND SHAREHOLDER’S EQUITY
17 Customer Deposits (see Figure V) $ 2,827,94 1 ,493 $ 2,083,397,998
18 Accounts Payable and Accruals 1 1 ,937,37 1 7,079,409
TOTAL LIABILITIES $ 2,839,878,864 $ 2,090,47 7,407

19 Share Capital $ 1 0,000,000 $ 1 0,000,000

20 Share Premium Account 1 03,500,000 28,200,000
2 1 Retained Earnings (see Figure VI) 1 33,042,596 96,828,6 1 9
TOTAL SHAREHOLDER’S EQUITY (see Figure VI) $ 246,542,596 $ 1 35,028,6 1 9

TOTAL LIABILITIES AND SHAREHOLDER’S EQUITY $ 3,086,42 1 ,460 $ 2,225,506,026

Approved on behalf of the Board:

James M. Davis O.Y. Goswick

Director and Chief Financial Officer Director

page 2 1
 Figure VII
Cash
Dollars (in millions)
200

175

1 50

125

100

75

50

25
0
2002 2003 2004

page 22
Statement of Cash Flows
For the Year Ended 31 December 2004
(Expressed in United States dollars)

2004 2003

NET CASH FLOW FROM OPERATING ACTIVITIES

Operating Profit for the Year $ 36,2 1 3,97 7 $ 33, 1 2 1 ,8 1 2
Depreciation of Fixed Assets 879,48 1 8 1 6, 1 8 1
Increase in Investments (765,574,653) (509,204 ,862)
Increase in Advances to Customers (4, 1 22,456) (3,886,525)
Decrease in Accounts Receivable and Prepayments 1 58,225 848,353
Increase in Customer Accounts 744,543,495 477,335,600
Increase in Other Liabilities 4,857,962 93,272
NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES $ 1 6,956,03 1 $ (876, 1 69)

INVESTING ACTIVITIES
Payment to Acquire Tangible Fixed Assets $ (2,485,049) $ ( 6 74,500)
Receipts from Sale of Tangible Fixed Assets 27,822 0
NET CASH OUTFLOW FROM INVESTING ACTIVITIES $ (2,457,227) $ ( 6 74,500)

FINANCING ACTIVITIES
Contribution to Share Premium Account $ 75,300,000 $ 1 ,200,000
NET CASH INFLOW FROM FINANCING ACTIVITIES $ 75,300,000 $ 1 ,200,000

Increase/(Decrease) in Cash and Cash Equivalents $ 89,798,804 $ (3 50,669)

CASH BALANCE AT BEGINNING OF YEAR $ 1 07,905,385 $ 1 08,256,054

CASH BALANCE AT END OF YEAR (see Figure VII) $ 1 97,704, 1 89 $ 1 07, 905,385

page 23
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 accounting and reporting policies of the Bank conform with International Financial
Reporting Standards and practices applicable to the financial services industry. 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 2004 totalled $12,851,598, and at 31 December 2003 totalled $6,290,243.

These contractual amounts represent the amounts at risk should the contracts 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 amounts are not representative of future liquidity requirements.

At 31 December 2004, 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.

page 24
Financial Statements
Alternative Investment Strategies – Derivatives
These financial instruments, commonly referred to as derivatives, are hedging activities, 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 in the market through Broker/Dealers.

The relationship between the hedged instruments and hedged items, as well as the risk management
objectives and strategies, are monitored closely by the Asset/Liability Management Subcommittee of
the Board of Directors’ Investment Committee. At inception and on an ongoing basis the performance
and applicability of the derivatives are assessed, and those operations not effective are discontinued
and/or replaced.

Asset/Liability and Market Risk Management

Asset/liability management involves the evaluation, monitoring and management of interest rate risk,
market risk, liquidity and funding. The Asset/Liability Management Subcommittee, which oversees these
risks and reports periodically to the Board of Directors’ Investment Committee, consists of senior financial
and business executives. Each of the principal department leaders have processes in place linked to the
Asset/Liability Management Process.

Fixed Assets and Depreciation

Premises and equipment are stated at cost, less accumulated depreciation and amortisation. Primarily the
Bank uses the straight-line method of depreciation and amortisation. Estimated lives range up to 20 years for
building, up to 15 years for furniture and equipment, and the shorter of the estimated useful life or lease term
for leasehold improvements. 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).

Legal Actions
In the normal course of business, the Bank is subject to legal actions. After reviewing with legal counsel,
management believes that the outcome of such actions, if any, will not have an adverse effect on the
results of operations or shareholder’s equity. The Bank is not able to predict whether or not there will be
an adverse effect on results of operations in a particular future period. At this time, there is no significant
pending legal activity.

Service Agreement
Stanford International Bank and Stanford Financial Group Company had a marketing and client services
contract in force during 2004, which provided the Bank with professional marketing and management
services for a negotiated fee. This contract was renewed for the 2004 calendar year on 29 December
2003. A referral fee agreement with Stanford Group Company, Stanford Trust Company Ltd. and
Stanford Group (Antigua) was also in place during 2004. (See Note 3 – Service Fees and Commissions.)

page 25
 Figure VIII
Interest and Non-Interest Income
Dollars (in millions)

350

300

250

200

1 50

1 00

50
0
2002 2003 2004
Interest Income Non-Interest Income

page 26
NOTES TO THE FINANCIAL STATEMENTS, CONTINUED

2004 2003
NOTE 2
INTEREST AND NON-INTEREST INCOME
Interest Income (see Figure VIII) $ 56,777,489 $ 54,626,87 1
Non-Interest Income (see Figure VIII) 2 75, 1 1 2,243 1 99,836,428
$ 33 1 ,889, 732 $ 254,463,299

Interest income is the interest earned on debt securities, loans (cash secured advances to customers)
and other interest-earning assets.

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

Non-interest and interest-bearing average earning assets increased 40.6 percent in 2004 and
33.1 percent in 2003.

Cash $ 1 52,804,000 $ 1 1 6,97 1 ,000

Advances 26,28 1 ,000 20, 145,000
Short-term Treasury Debt 7 1 , 1 1 0,000 80,056,000
Treasury Debt 342, 1 66,000 33 1 ,076,000
Corporate Debt 62 1 ,390,000 530,44 1 ,000
Equities 1,259,0 1 2,000 768,203,000
Metals 266,7 5 1 ,000 59, 1 00,000
Fiduciary 48, 1 80,000 7 7,327,000
$ 2,787,694,000 $ 1,983,3 1 9,000

Return on average earning assets, non-interest and interest-bearing, was 1 1.9 percent in 2004.

page 27
 Figure IX Figure X
Service Fees and Commissions Professional
Management Fees
Dollars (in millions)
Services Technology
Treasury 2%
70 4%
2%
Investment Policy
60 7%
Management Fees
50 Referral Fees
Government
40 and
Public
30 Relations
13%
20

10
Comm., Branding
0
and Market
2002 2003 2004 Administrative Research
24% 48%

page 28
NOTES TO THE FINANCIAL STATEMENTS, CONTINUED

2004 2003
NOTE 3
SERVICE FEES AND COMMISSIONS (see Figure IX)
Referral Fees $ 63,756,447 $ 42,966,032
Management Fees (see Figure X) and Commissions 59,630,835 32,629,503
$ 123,387,282 $ 75,595,535

The referral fee paid to Stanford Group Company, Stanford Trust Company Ltd. and Stanford Group
(Antigua) is a percentage of the managed client portfolio. The fee is negotiated annually.
(See Note 1 – Service Agreement.)

Management fees consist of expenses related to the marketing and service agreement in place with
Stanford Financial Group Company. (See Note 1 – Accounting and Investment Policies.) These services
include establishing, implementing and maintaining investment policy, customer communications,
market research and branding, government and public relations, technology, treasury functions and
other related and administrative costs.

page 29
 Figure XI
Salaries and Other Staff Costs
Dollars (in millions)
2.5

2.0

1 .5

1 .0

0.5

0.0
2002 2003 2004
Salaries and Other Staff Wages and Salaries

page 30
NOTES TO THE FINANCIAL STATEMENTS, CONTINUED

2004 2003
NOTE 4
SALARIES AND OTHER STAFF COSTS (see Figure XI)
Wages and Salaries $ 1 ,689,880 $ 1 ,430,23 7
Company Portion of Payroll Taxes 1 9 7,843 1 96,980
Employee Insurance 60,006 1 33,79 7
Employee Benefits 1 05,25 7 94,6 1 6
Personnel Recruitment, Training and Education 46,43 7 605,8 7 7
$ 2,099,423 $ 2,46 1 ,507

The reduction in personnel recruitment is due to the move of the Private Banking department into the
newly created Stanford Group (Antigua).

NOTE 5
DIRECTORS’ EMOLUMENTS
Fees and Expenses $ 90,000 $ 90,000

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.

NOTE 6
PROFESSIONAL FEES
Legal and Professional Fees $ 9 1 7,823 $ 75 7,448
Audit Fees 66,000 66,000
$ 983, 823 $ 823,448

page 3 1
 Security Printing Figure XII
Facility 4% 4%
Maintenance
Office and General Expenses
8%

Delivery Services
15%

Data Processing
1%

Computer
Consulting, Software
and Supplies Postage and
4% Overnight and
Foreign
Office Supplies Mail Delivery
and Equipment 46%
Rental Stationery
13% 5%

page 32
NOTES TO THE FINANCIAL STATEMENTS, CONTINUED

2004 2003
NOTE 7
OFFICE AND GENERAL EXPENSES (see Figure XII)
Printing $ 54,734 $ 26,436
Overnight and Foreign Mail Delivery 683,295 468,7 1 8
Postage 5,979 2, 1 28
Stationery 73, 1 39 5 1 ,256
Office Supplies 1 96,298 383, 1 00
Computer Consulting, Software and Supplies 52,449 30,4 1 0
Office Equipment Rental 0 42
Data Processing 8,697 7,549
Delivery Services 227,939 16 1 ,83 7
Facility Maintenance 1 22,350 143,9 1 5
Security 57,643 58, 1 73
$ 1 ,482,523 $ 1,333,564

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. The Bank also maintains Depository Insolvency
coverage for its correspondent banks.

$ 1 , 166,520 $ 1 , 1 1 4 ,503

In 2004, the Bank experienced significant growth in revenue and assets that resulted in increased
exposure to risk. The Bank’s insurance premiums remained stable, increasing only a modest 4.7 percent
due to the successful efforts of the Bank’s insurance brokers. New coverage included: Employment
Practices Liability, Fiduciary Liability and additional excess FDIC coverages for U.S. correspondent banks.

NOTE 9
RENT
The Bank negotiated a 20-year building lease in 2002.

Building $ 848,000 $ 848,000

page 33
 Figure XIII Figure XIV
Depreciation and Amortisation Expense Travel and Accommodations
Dollars (in thousands) Dollars (in thousands)
1,000
900 1,800
800 1,600
700 Motor Vehicles 1,400
600 Furniture and 1,200 Airfares
Equipment
500 1,000 Hotel/Lodging
Computers and
Software Meals/Food
400 800
Building/Leasehold Travel and
300 Improvements 600 Entertainment

200 400
1 00 200
0 0
2002 2003 2004 2002 2003 2004

page 34
NOTES TO THE FINANCIAL STATEMENTS, CONTINUED

2004 2003

NOTE 10
DEPRECIATION AND AMORTISATION (see Figure XIII)
Building/Leasehold Improvements $ 245,254 $ 245,003
Computers and Software 467,698 406,634
Furniture and Equipment 73,893 7 7,259
Motor Vehicles 92,636 87,285
$ 879,48 1 $ 8 1 6, 1 8 1

NOTE 11
ADVERTISING AND PROMOTION
Advertising $ 26 1 ,407 $ 286,770
Brochure/Marketing Supplies 582,485 478,58 1
$ 843,892 $ 765,35 1

NOTE 12
TRAVEL AND ACCOMMODATIONS (see Figure XIV)
Airfares $ 1 1 9,528 $ 680,40 1
Hotel/Lodging 544,757 792,4 1 7
Meals/Food 66,934 1 88, 1 43
Travel and Entertainment 3, 1 89 96,78 7
$ 734,408 $ 1,757,748

Travel and accommodations decreased due to the move of the Private Banking department to
Stanford Group (Antigua).

page 35
 Figure XV
Advances to Customers and Other Accounts
Dollars (in millions)
35

30
Banking Advances
25 to Customers
Prepaid Items
20 Accounts Receivable

15

10

0
2002 2003 2004

page 36
NOTES TO THE FINANCIAL STATEMENTS, CONTINUED

2004 2003
NOTE 13
CASH BALANCES
The table below shows positions at 31 December 2004 translated into U.S. dollars.

Currency:
British Pound $ 1 ,598,846 $ 1 ,696
Canadian Dollar 7, 1 20,887 370,549
Eastern Caribbean Dollar 67,279 6,298
Euro 49, 1 38,083 574,689
United States Dollar 1 39,779,094 1 06,952, 1 53
$ 1 97,704, 1 89 $ 1 07,905,385

NOTE 14
ADVANCES TO CUSTOMERS AND OTHER ACCOUNTS (see Figure XV)
Banking Advances to Customers $ 28,342,780 $ 24,220,324
Prepaid Items 5,07 1 , 1 6 7 4,9 1 5,898
Accounts Receivable 39,440 352,934
$ 33,453,387 $ 29,489, 1 56

Gross Advances are repayable as follows:

Within one year $ 1 7,46 1 ,975 $ 1 8,462,537
Between one and three years 8,65 1 ,535 4, 1 76, 1 42
More than three years 2, 229,270 1 ,58 1 ,645

page 37
 Figure XVI Figure XVII
Metals Investments Investments
15.5% Fiduciary Dollars (in billions)
0.3% 3.0
Corporate
Debt 2.5
17.2% Equities
52.2%
2.0

1 .5

1 .0

Treasury
0.5
Debt
12.7%
0.0
2002 2003 2004
Short-term
Treasury Debt
2.1%

page 38
NOTES TO THE FINANCIAL STATEMENTS, CONTINUED

2004 2003
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

Equities $ 1 ,485,727, 1 63 $ 85 1 ,559,738
Short-term Treasury Debt 59,384,766 47,663,44 1
Treasury Debt 362,876,364 369,078,7 7 7
Corporate Debt 490,25 1 ,904 502,637, 1 5 7
Metals 44 1 ,94 1 ,393 1 78,475,075
Fiduciary 7,885,363 1 33,078, 1 1 2
$ 2,848,066,95 3 $ 2,082,492,300

All listed securities of, or guaranteed by, various governments mature on fixed dates up to 30 years.
These investments are generally listed on major international exchanges and are deemed highly liquid.

page 39
 Figure XVIII
Staples
6% Equity Allocation By Sector
Services
9%
Cyclical
Retail 15%
3%

Health Financial
3% 15%

Technology
18%

Energy
15%
Other Utilities
12% 4%

page 40
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 investment allocation, including cash, is kept
within the following parameters:
(a) Metals, cash and fiduciary deposits (10–15% of the total portfolio)
(b) Fixed Income (0–70% of the total portfolio)
(c) 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 indicates sector allocations as at 31 December 2004.

page 4 1
 Figure XIX Work in Figure XX
Artwork Progress
Net Fixed Assets Motor 1% 3% Fixed Assets
Dollars (in millions) Vehicles
3%
8.0
Furniture and Land, Building
Equipment and
10% Leaseholds
6.0
64%

4.0

Computers
2.0 and Software
19%

0.0
2002 2003 2004

page 42
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-interest income as of the transaction date, based upon the net
proceeds and the adjusted carrying amount of the investment sold, using the specific identification
method. Net interest earned is included in interest income.

Financial Futures
Outstanding financial futures 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.

Futures contracts and forward rate agreements are entered into for the purpose of asset and liability
management and trading account 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 associated with financial futures entered into for asset and liability management are deferred
and amortised over the period of the identified interest rate.

NOTE 16
FIXED ASSETS (see Figures XIX and XX)
Cost Accumulated 2004 2003
Depreciation Net Value Net Value

Land, Building and Leaseholds $ 7,533,239 $2,993,655 $ 4,539,584 $ 2,72 1 ,37 7

Computers and Software 2,43 1 ,340 1 ,048,2 1 1 1,383, 1 29 1 ,739,369
Furniture and Equipment 1 ,052,072 309, 1 1 3 742,959 786,090
Motor Vehicles 502,4 1 8 265,043 237,375 278,335
Artwork 56,786 0 56,786 56,786
Work in Progress 237,098 0 237,098 37,228
$ 1 1,8 1 2,953 $4,6 1 6,022 $ 7, 1 96,93 1 $ 5,6 1 9, 1 85

page 43
 Figure XXI Figure XXII
Customer Deposits and Certificates Index-
Certificates of Deposit
Dollars (in billions) Linked CD
3.0 0.65% FlexCD
41.77%

2.5

2.0

1 .5 FixedCD
57.58%
1 .0

0.5

0.0
2002 2003 2004
Customer Deposits Certificates of Deposit

page 44
NOTES TO THE FINANCIAL STATEMENTS, CONTINUED

2004 2003
NOTE 17
CUSTOMER DEPOSITS (see Figure XXI)
Express Accounts $ 70,939,56 1 $ 44,836,446
Performance Accounts 9,978,792 5,028,43 1
FlexCD (see Figure XXII) 1 , 1 47,372,220 1 ,036,7 1 7,223
FixedCD (see Figure XXII) 1 ,581 ,825,058 984,587,692
Index-Linked Certificates of Deposit (ILCD) (see Figure XXII) 1 7,825,862 1 2,228,206
$ 2,827,94 1 ,493 $ 2,083,397,998
Express Accounts
Funds from these accounts are generally invested in short-term instruments, euro and foreign
currency deposits.

Performance Accounts
Funds from these accounts are generally invested in investment-grade bonds, securities and euro
and foreign currency deposits.

Premium Accounts
Funds from these accounts are invested solely in United States Treasury bills and notes.

Certificates of Deposit
The Certificates of Deposit accounts guarantee payment of the stated interest rate until maturity.
Funds from these accounts are generally invested in investment-grade bonds, securities and euro and
foreign currency deposits.

FlexCDSM – A certificate of deposit that accepts additional deposits and withdrawals (up to 25 percent of
the balance and a max of four per year) without incurring early withdrawal penalties or additional
fees. This product is available in most international currencies.

FixedCDSM – 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.

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 Euro STOXX 50 Index. The investor is guaranteed a minimum of the FixedCD
one-month rate at time of placement. 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 available in U.S. dollars, and early withdrawals are subject to a withdrawal penalty.

page 45
 Figure XXIII Figure XXIV
Accounts Payable and Accruals Retained Earnings
Dollars (in millions) Dollars (in millions)

12.0
140
10.0 120

8.0 100

80
6.0
60
4.0
40
2.0 20

0 0
2002 2003 2004 2002 2003 2004
Deposits Awaiting Credit Accounts Payable

page 46
NOTES TO THE FINANCIAL STATEMENTS, CONTINUED
2004 2003

The components of interest expense on deposits for the year ended 31 December 2004 were:

Express Accounts $ 727 , 1 29 $ 55 1 ,657

Performance Accounts 1 23,586 1 89,462
Premium Accounts 0 35 1
FlexCD 75,74 7 ,449 7 1 ,480,258
FixedCD 84, 1 56,879 60,943,584
Index-Linked Certificates of Deposit (ILCD) 922,433 853,58 1
$ 1 6 1 ,67 7 ,476 $ 1 34,0 1 8,893
Deposits per account on an average basis:
Express Accounts $ 53,297 ,625 $ 35,668,0 1 6
Performance Accounts 5, 1 32, 1 74 6,763,854
Premium Accounts 0 1 1 ,793
FlexCD 1 , 1 00, 1 67,489 958,735,4 7 1
FixedCD 1 ,275,046,58 1 85 1, 1 35,57 1
Index-Linked Certificates of Deposit (ILCD) 1 6,538,44 7 1 0, 1 73,488
$ 2,450, 1 82,3 1 6 $ 1 ,862,488, 193

NOTE 18
ACCOUNTS PAYABLE AND ACCRUALS
Accounts Payable (see Figure XXIII) $ 9,974,942 $ 1,6 1 3,800
Deposits Awaiting Credit (see Figure XXIII) 1 ,962,429 5,465,609
$ 1 1,937,37 1 $ 7,079,409

NOTE 19
SHARE CAPITAL
Authorised Share Capital, Issued and Fully Paid
100,000 Common Shares of $100 each $ 1 0,000,000 $ 1 0,000,000

NOTE 20
SHARE PREMIUM ACCOUNT
Paid-in Capital in Excess of Par Value $ 1 03,500,000 $ 28,200,000

The shareholder contributed an additional $75,300,000 to Paid-in Capital in excess of the par value.

NOTE 21
RETAINED EARNINGS (see Figure XXIV)
Income Earned in Prior Years $ 96,828,6 1 9 $ 63,706,807
Income Earned This Year $ 36,2 1 3,97 7 $ 33, 1 2 1 ,8 1 2
Accumulated Income $ 1 33,042,596 $ 96,828,6 1 9
Income Carried Forward $ 1 33,042,596 $ 96,828,6 1 9

page 47
 Figure XXV Salaries Figure XXVI
Other Expenses 21%
Headquarters Expenses 12% Headquarters Expenses
Dollars (in millions)
7.0
Repairs and
6.0 Maintenance
4% Other Staff
5.0 Cost
12%
4.0 Insurance
1%
3.0

2.0 General
Office
15% Rent
1 .0
16%
0.0 Travel and Professional
2002 2003 2004 Entertainment
6% Electricity Fees
2% 1%
Phone/Fax
10%

page 48
NOTES TO THE FINANCIAL STATEMENTS, CONTINUED

SUPPLEMENTAL INFORMATION
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.

2004 2003

Operating Expenses (see Figures XXV and XXVI)

Salaries $ 1 ,339,370 $ 1 ,246,902
Other Staff Cost 726, 1 45 557,738
Vehicle Expense 1 3,685 1 4,786
Rent 1 ,085,420 1 ,26 1 ,353
Professional Fees 79,449 1 1 1 ,99 1
Electricity 99,4 1 2 1 52,752
Telephone/Fax 6 1 3,873 292,694
Travel and Entertainment 362,466 1 78,407
General Office 9 1 6,43 1 665,799
Insurance 8 1 ,90 1 1 4 1 , 1 60
Management Fees – Local 583, 1 89 45 7, 1 66
Repairs and Maintenance 23 1 ,578 54,43 1
Subscriptions and Donations 33,443 68,880
Licences and Permits 1 00,633 7 1 ,706
$ 6,266,995 $ 5,2 75,765

Capital Expenses
Vehicle Purchases $ 35, 1 48 $ 37 1 ,279

page 49
Auditors’ Report
We have audited the financial statements on
pages 18 to 49 of Stanford International Bank Ltd.
for the year ended 31 December 2004, which is
comprised of the profit and loss statement,
balance sheet, statement of cash flow and the
related notes numbered 1 to 21. 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 the companies law of Antigua
and Barbuda 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.
page 50
BASIS OF OPINION
We conducted our audit in accordance with
international auditing standards. An audit
includes examination, on a test basis, 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 2004 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. John’s Street, St. John’s, Antigua
28 February 2005
Report of Management
The management of Stanford International Bank
is responsible for the preparation, integrity and
objectivity of the financial statements of the
Bank. The financial statements and notes have
been prepared by the Bank in accordance with
approved accounting standards, and in the
judgement of management, present fairly and
consistently the Bank’s financial position and
results of operations. The financial statements
and other financial information in this annual
report include amounts that are based on
management’s best estimates and judgements
and give due consideration to materiality.
The Bank maintains a system of internal
accounting controls to provide reasonable
assurance that assets are safeguarded, and that
transactions are executed in accordance 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 controls, 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, they review and make tests, as
appropriate, of the data included in the financial
statements.
The Board of Directors discharges its
responsibility for the Bank’s financial statements
through its Audit Committee. The Audit
Committee meets periodically with the
independent accountants, internal auditors and
management. Both the independent
accountants and the internal auditors have direct
access to the Audit Committee to discuss the
scope and results of their work, the adequacy of
internal accounting controls, and the quality of
financial reporting.
R. Allen Stanford
Chairman of the Board
James M. Davis
Director and CFO
page 5 1
 BOARD OF DIRECTORS BANK MANAGEMENT AUDITORS
R. Allen Stanford Juan Rodriguez-Tolentino C.A.S. Hewlett & Co.
Chairman President Chartered Accountants
St. John’s Street
James A. Stanford James M. Davis St. John’s, Antigua, W.I.
Chairman Emeritus Chief Financial Officer
INSURANCE AND RISK
James M. Davis Miguel Pacheco MANAGERS
Chief Financial Officer Senior Vice President Bowen, Miclette & Britt
1111 North Loop West
O.Y. Goswick Beverly M. Jacobs Houston, Texas 77292 U.S.A.
Investments Operations Manager
Willis Limited
Kenneth C. Allen Q.C. Bhanoo P. Persaud, ACCA 10 Trinity Square
Secretary and Treasurer Accounting Manager London EC3P 3AX
United Kingdom
Sir Courtney N. Blackman, Ph.D. COMPLIANCE
International Banking Pedro E. Rodriguez, CRCM BARRISTERS AND
Vice President & Senior SOLICITORS
Robert S. Winter Compliance Officer Hunton & Williams
Insurance Barclays Financial Center
SIB REPRESENTATIVE 1111 Brickell Avenue
OFFICE Miami, Florida 33131 U.S.A.
Alain Lapointe
Senior Vice President
1800 McGill College Avenue
Montreal, Quebec, Canada

®
STANFORD INTERNATIONAL BANK LTD.
A MEMBER OF THE STANFORD FINANCIAL GROUP

No. 1 1 Pavilion Drive

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

www.stanfordinternationalbank.com

page 52
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