Financial Results for Q/E Mar. 31, 2002

The Directors of the Bank have today released the following Unaudited Results of the Banking Group for the quarter, and half year, respectively ended 2002 March 31. These are the first issued in respect of the Banking Group since the acquisition by AIC (Barbados) Limited of Finsac's shareholding of 75% plus one (1) share on 2002 March 19.

Net Profit of the Banking Group for the quarter ended 2002 March 31 was J$217Million compared to J$339Million for the same period in the previous year.

Highlights are as follows:

• All companies were profitable;
• Expenses held at previous year levels;
• Substantial qualitative improvement in the Bank's Balance Sheet post-Monetization - 74% of income earning assets in liquid and tradable Government securities;
• Loans increased by 32% over comparable quarter in the previous year;
• The Bank's Classified Debt was reduced by J$300Million from 2001 September 30 and has been fully provided.

The market capitalization of the Banking Group at 2002 March 31 was J$13Billion compared to J$9.7Billion at 2001 September 30, the respective stock prices being J$6.60 and J$4.90 per stock unit.

In the light of these results, the Directors have approved an interim dividend payment of J$0.06 per stock unit to be paid on the 31st of May 2002 to stockholders on the register as at the 10th of May 2002.

The Directors of the Bank have approved the calling of an Extraordinary General Meeting on 2002 May 21 at 4:00 p.m. or immediately after the Annual General Meeting scheduled for 3:00 p.m. on that same day, whichever is later, for the following purposes:

SPECIAL BUSINESS

1. Designation of Capital
   To consider and if thought fit pass the following resolution:

   RESOLVED THAT 493,352,566 unissued shares of the Company be designated as 493,352,566 ordinary shares of $1.00 each, such shares to rank pari passu with the existing ordinary stock units of $1.00 each.
   
   

2. Bonus Issue
   To consider and if thought fit pass the following resolution:

   RESOLVED THAT on the recommendation of the Board of Directors and pursuant to Article 138 of the Articles of Association of the Company, it is desirable to capitalise the sum of $450,000,000, the amount standing to the credit of the Capital Redemption Reserve Fund, and the sum of $43,352,566 being part of the amount standing to the credit of the Retained Earnings Account, and that accordingly, the said sums be capitalised and be set free for distribution amongst the members on condition that same be not paid in cash, but be applied in paying up in full unissued shares of the Comp any to be allotted and distributed credited as fully paid up to and amongst the members of the Company in the proportion of one ordinary share of par value of one dollar each for every four ordinary stock units of par value of one dollar each held by each member on record at the close of business on 2002 May 21 but so that no member of the Company shall be allotted any fractional part of a share, but that as any fractional entitlement of any member is small, that all new shares representing fractions shall be allotted to Edward Gayle and Company Limited (as broker of the Company) upon the terms that it shall sell the same for the benefit of the Company and account to the Company for the net proceeds which shall be used by the Company towards defraying the costs relative to the bonus issue and that the bonus ordinary shares of one dollar each so issued be converted into ordinary stock units of one dollar each as soon as they are fully paid up and such fully paid ordinary stock units to rank for all purposes pari passu with the existing ordinary stock units of the Company.

The Directors of the Bank today accepted the resignation from the Board of the Hon. John Issa, OJ, CD, Hon. LL D.