ANSA Merchant Bank : 27 May 2022 – ANSA Merchant Bank Limited – Unaudited Interim Financial Statements for the 1st Quarter ended March 31st, 2022

A public Company registered on the

Trinidad & Tobago Stock Exchange

EXPRESSED IN THOUSANDS OF TRINIDAD & TOBAGO DOLLARS (TT$000)

CHAIRMAN'S STATEMENT

The operating results of the ANSA Merchant Bank Group for the first quarter ended March 31, 2022 were affected by non-cash mark to market losses seen in our global investment portfolios, given the effects of the war between Russia and Ukraine, widespread fears of inflation and rising interest rates. This resulted in our reporting a consolidated loss before taxes for the first quarter ended March 31, 2022 of $39.8 million versus $61.4 million in profit before tax for the same period last year. Total Assets, however, grew by 2% to $9.60 billion in Quarter 1 2022 versus $9.38 billion in the same period last year. While all major investment asset classes experienced downward price pressure, we are long term investors, and we expect that these investment valuations will recover over time when the markets normalize. Our core businesses remain in a position of strength, as a result of our solid and growing customer base, a robust balance sheet and healthy capital base.

Our Banking Segment comprising ANSA Merchant Bank, ANSA Merchant Bank (Barbados), and our Commercial Bank, ANSA Bank, all produced new business growth and if we exclude the impact of investments, our core profits in this segment grew by 35% over prior year. Overall, our Net Interest Income increased by 11% over prior year and is a signal of the strength of our core banking businesses.

Our Insurance Segment, comprising TATIL and TATIL Life, remains well capitalized and Insurance revenues increased in most of our business lines over the prior year. Renewal income in both our Life and Property & Casualty portfolios continues to be very positive, and expenses, although moderately higher than the prior year, are being well managed. Our core insurance results are very encouraging as our markets continue to return to normal levels of activity. The swing in performance in this quarter is mainly due to the negative non-cashmark-to-market adjustments in our investments, however our portfolios are well-diversified and structured to generate long-term returns.

While investment markets are expected to continue to reflect volatility during the year, the strength of our brands and our continuing investments in information technology augur well for the future, as we maintain our focus on building our businesses and as we continue to seek new expansion and growth opportunities locally and regionally.

A. Norman Sabga

A. Norman Sabga

Chairman

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

	Unaudited	Unaudited	Audited
	31-Mar-22	31-Mar-21	31-Dec-21
Assets	9,602,080	8,474,028	9,384,906
Total Assets	9,602,080	8,474,028	9,384,906
Liabilities	6,719,441	5,775,151	6,481,869
Total Liabilities	6,719,438	5,775,151	6,481,869
Non-Controlling Interest	780	632	744
Shareholders' Equity	2,881,859	2,698,245	2,902,293
Total Shareholders' Equity	2,882,639	2,698,877	2,903,037
Total Liabilities & Shareholders' equity	9,602,080	8,474,028	9,384,906

	A. Norman Sabga	Gregory N. Hill
	A. Norman Sabga	Gregory N. Hill
	Chairman	Managing Director
	CONSOLIDATED STATEMENT OF INCOME
		Unaudited	Unaudited	Audited
		3 months to	3 months to	Year Ended
		31-Mar-22	31-Mar-21	31-Dec-21
	Total Income	172,225	256,960	1,155,842
	Total Expenses	(212,034)	(195,584)	(795,663)
	Operating (Loss)/Profit	(39,809)	61,376	360,179
	Taxation	17	(14,791)	(53,862)
	(Loss)/Profit after Taxation	(39,792)	46,585	306,317
	(Loss)/Profit attributable to:	(39,829)	46,602	306,222
	Equity holders of Parent
	Minority Interest	37	(17)	95
	(Loss)/Profit Attributable to Shareholders	(39,792)	46,585	306,317
	Earnings Per Share - Basic	(0.46)	0.54	3.58
Avg. no. of shares - Basic ('000)	85,605	85,605	85,605

				SEGMENTAL INFORMATION
						BANKING				MUTUAL FUNDS
						Unaudited	Audited		Unaudited	Audited
				Unaudited	Unaudited
				3 months to		3 months to Year Ended	3 months to	3 months to	Year Ended
				31-Mar-22	31-Mar-21	31-Dec-21	31-Mar-22	31-Mar-21	31-Dec-21
Total income	65,490		77,054	382,816	10,708	8,452	43,614
Total expenses	(54,586)		(60,870)	(202,674)	(20,583)	(6,268)	(29,649)
		Profit/(Loss) before tax	10,904		16,184	180,142	(9,875)	2,184	13,965
			Total assets	5,806,025		4,993,597	5,640,007	727,731	697,203	719,834
			Total liabilities	3,782,334		3,057,058	3,636,768	727,677	697,047	719,785
			Purchase of fixed	4,272		11,816	36,610		-	-	-
			assets
			Depreciation	(8,509)		(8,095)	(33,262)		-	-	-
				INSURANCE SERVICES			ELIMINATIONS
				Unaudited		Unaudited	Audited	Unaudited	Unaudited	Audited
				3 months to		3 months to Year Ended	3 months to	3 months to	Year Ended
				31-Mar-22	31-Mar-21	31-Dec-21	31-Mar-22	31-Mar-21	31-Dec-21
			Total income	103,101		188,696	841,815	(7,074)	(17,242)	(112,403)
			Total expenses	(152,503)		(143,772)	(8,188)	15,638	15,326	(555,153)
		(Loss)/Profit before tax	(49,402)		44,924	833,627		8,564	(1,916)	(667,556)
		Total assets	4,248,196		3,950,374	4,164,156	(1,179,872)	(1,167,146)	(1,139,092)
		Total liabilities	2,407,128		2,206,493	2,279,487	(197,698)	(185,447)	(154,171)
		Purchase of fixed	4,012		15,489	29,865		-	-	-
			assets
			Depreciation	(1,511)		(1,507)	(7,215)		-	-	-
						TOTALS
				Unaudited		Unaudited	Audited
				3 months to		3 months to Year Ended
				31-Mar-22	31-Mar-21	31-Dec-21
			Total income	172,225		256,960	1,155,842
			Total expenses	(212,034)		(195,584)	(795,663)
			(Loss)/Profit before tax	(39,809)		61,376	360,179
		Total assets	9,602,080		8,474,028	9,384,906
		Total liabilities	6,719,441		5,775,151	6,481,869
		Purchase of fixed	8,284		27,305	66,474
			assets
		Depreciation	(10,020)		(9,602)	(40,477)
			CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
								Unaudited		Unaudited	Audited
								3 months to	3 months to	Year Ended
								31-Mar-22		31-Mar-21	31-Dec-21
			(Loss)/Profit after Taxation			(39,792)		46,585	306,317
		Other Comprehensive Income/(Loss)			3,510		(17,064)	12,527
		Total Comprehensive (Loss)/Income (net of tax)		(36,282)		29,521	318,844
	Comprehensive Income attributable to:		(36,319)		29,538	318,749
	Equity holders of the Parent
	Minority Interest						37		(17)	95
	Total Comprehensive (Loss)/Income		(36,282)		29,521	318,844
			CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
								Unaudited		Unaudited	Audited
								3 months to	3 months to	Year Ended
								31-Mar-22		31-Mar-21	31-Dec-21
			Balance at the start of the period/year		2,903,037		2,677,570	2,677,570
		Total Comprehensive (Loss)/Income			(36,282)		29,521	318,844
		Other Reserve Movements			15,884		(8,214)	(12,052)
		Dividend						-		-	(81,325)
	Balance at the end of the period/year		2,882,639		2,698,877	2,903,037

Directors: A. Norman Sabga (Chairman), Gregory N. Hill (Managing Director), Ray A. Sumairsingh (Deputy Chairman), David Dulal-Whiteway, Timothy Hamel-Smith, Larry Howai, M. Musa Ibrahim,

Jeremy Matouk, Nigel Romano, Ian E. Welch, - all c/o the following address: 11A Maraval Road, Port of Spain Phone: [phone] Fax: [phone]

Branch Offices: 25 Royal Road, San Fernando Phone: [phone] Fax: [phone] | Grand Bazaar Mall, Valsayn Phone: [phone] Fax: [phone]

A public Company registered on the

Trinidad & Tobago Stock Exchange

EXPRESSED IN THOUSANDS OF TRINIDAD & TOBAGO DOLLARS (TT$000)

CONSOLIDATED STATEMENT OF CASH FLOWS
	Unaudited	Unaudited	Audited
	3 months to	3 months to	Year Ended
	31-Mar-22	31-Mar-21	31-Dec-21
(Loss)/Profit before Taxation	(39,809)	61,376	360,179
"Gain on disposal of Property, Plant,	(8,964)	(14,960)	(26,105)
Equipment and Investments"
Adjustments for Non Cash Items	52,356	(26,174)	(246,104)
Operating Cash Flow before Working Capital Changes	3,583	20,242	87,970
Net Working Capital Changes	271,569	(212,766)	823,101
Net Taxation Paid	(8,863)	(13,869)	(45,742)
Cash Flow from/(used in) Operating Activities	266,289	(206,393)	865,329
Investing Activities	(34,048)	102,603	(712,146)
Financing Activities	-	-	(284,261)
Increase/(decrease) in cash and cash equivalents	232,241	(103,790)	(131,078)
Cash & Cash equivalents at the beginning of period	1,266,290	1,397,368	1,397,368
Cash & Cash equivalents at the end of the period	1,498,531	1,293,578	1,266,290

SIGNIFICANT ACCOUNTING POLICIES

This interim financial report has been prepared on a historical cost basis, except for the measurement at fair value of trading investment securities, investment properties and other financial assets not held in a business model whose objective is to hold assets to collect cash flows, or whose contractual term does not give rise solely to payments of principal and interest. The consolidated financial statements of the Bank and its Subsidiaries have been prepared in accordance with IFRS. The accounting policies applied in determining the consolidated IFRS results in this report are the same as those previously applied and disclosed in the Bank's published consolidated financial statements for the year ended 31 December 2021.

The consolidated financial statements comprise the statements of ANSA Merchant Bank Limited (the Bank/Parent) and its subsidiaries (including special purpose entities that the Bank consolidates in accordance with IFRS 10 'Consolidated Financial Statements'). All intercompany balances and transactions have been eliminated. Subsidiaries are fully consolidated from the date on which control is transferred to the Parent. Control is achieved where the Parent has (i) the power to govern the financial and operational policies of an investee, (ii) exposure or rights to variable returns from its involvement and (iii) the ability to use its power over the investee to affect the amount of the Parent's returns. Subsidiaries are de-consolidated from the date that any one of the three preceding criteria for control no longer exists.

Directors: A. Norman Sabga (Chairman), Gregory N. Hill (Managing Director), Ray A. Sumairsingh (Deputy Chairman), David Dulal-Whiteway, Timothy Hamel-Smith, Larry Howai, M. Musa Ibrahim,

Jeremy Matouk, Nigel Romano, Ian E. Welch, - all c/o the following address: 11A Maraval Road, Port of Spain Phone: [phone] Fax: [phone]

Branch Offices: 25 Royal Road, San Fernando Phone: [phone] Fax: [phone] | Grand Bazaar Mall, Valsayn Phone: [phone] Fax: [phone]