STANFORD INTERNATIONAL BANK LTD.
MONTHLY REPORT
DECEMBER 2008
W ELCOME TO THE FIRST EDITION OF THE
Stanford International Bank Ltd. (SIBL)
Monthly Report. As the world’s financial markets
are experiencing some of their most turbulent
times in modern history our goal with this Monthly
Report is to provide you with an overview of SIBL’s
financial condition and keep you informed on the
current topics within the markets and their
impact on SIBL. We will continue to produce the
in-depth SIBL Quarterly Report, but due to these
unprecedented times we know our clients need a
constant flow of current information about the
institution in which they have placed their trust.
One of the biggest topics in the news at this time
is Bernard Madoff’s hedge fund collapse and the
companies and investors impacted. We want our
depositors to know that SIBL had no direct or
indirect exposure to any of Madoff’s investments.
Just as the Bank had no direct or indirect exposure
to the securitized debt or subprime meltdown.
Also, SIBL has never made a structured loan or a
commercial loan. All loans are cash secured and
to SIBL clients only at a maximum 80% loan to
100% cash collateral ratio.
All SIBL credit card exposure (Visa, Master Card,
American Express) is again to SIBL clients only
and cash secured.
The Bank’s investment strategy has always been
long term, hands on and globally diversified with
strong liquidity and minimal leverage. SIBL has
never had to chase short term and shortsighted
returns for shareholders.
We have seen measured and manageable growth
over the past several decades as SIBL’s Board of
Directors, organizational structure, management
and business model are the same since inception.
SIBL operates from one head office and one
representative office world wide. When new
business is generated referral fees are paid. In
other words, no business . . . no expense . . . far
different from a bank with hundreds of branches
and high overhead. The products offered by SIBL
are geared to high-net-worth individuals, are time
tested and have delivered a premium return to
our clients. It is evident that we have found
success in following this conservative approach as
today we have over 30,000 clients from 131
countries representing $8.5 billion in total assets.
We would also like to take this opportunity to
remind you of certain facts about the Bank and
the jurisdiction in which it operates. SIBL is an
international financial institution chartered under
the laws of Antigua and Barbuda, a sovereign
nation and member of the British Commonwealth.
It is regulated by the Financial Services
Regulatory Commission and the Ministry of
Finance. Antigua and Barbuda maintains laws
and regulations concerning bank supervision,
anti-money laundering, and prevention of terrorism
financing that meet or exceed international
standards. In recent years, compliance with those
standards has been validated by international
bodies. Most recently, the International Monetary
Fund reviewed compliance with Bassel I Core
Principles for banking supervision. Basel II Core
Principles will be fully implemented by the end of
December 2008 which means SIBL will be subject
to the most stringent bank regulatory standards in
the world. Additionally, the Bank undergoes an
onsite safety and soundness inspection, conducted
by the Financial Services Regulatory Commission,
every year. The most recent inspection was
conducted in September 2008, and the Bank was
found to be in good standing.
The Bank also maintains the following insurance
coverage through Lloyd’s and other underwriters:
Bankers Blanket Bond; Directors and Officers
Liability; Professional Liability (errors and
omissions); and Excess FDIC. This extensive
insurance program has been in place for years and
requires that a regular review of the Bank’s risk
management practices be conducted to determine
that adequate safeguards are in place.
Although our earnings will not meet expectations
in 2008, Stanford International Bank Ltd. is
strong, safe and fiscally sound. We have always
believed that depositor safety was our number one
priority. To further support the Bank’s growth and
provide a strong cushion for any further market
volatility, the Bank’s Board of Directors made a
decision to increase the Bank’s capital by $541
million on November 28, 2008. This contribution
brings total shareholder equity to $1,020,029,802
with a capital to assets ratio of 11.87% and a
capital to deposits ratio of 13.48%. This places our
Bank in a position to well exceed Basel II capital
requirements as we continue to grow in 2009.
We hope you find this information helpful, and we
look forward to serving you over the coming year.
Best wishes to all.
Juan Rodriguez-Tolentino
President