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Business Description We are Jamaica’s largest banking and financial services group, based on consolidated total assets at September 30, 2012. We provide individual consumers, small- and medium-sized enterprises, or “SMEs,” large corporations and government institutions with banking, wealth management, insurance and pension fund management products and services. We provide a wide range of financial products and services to our customers, including loan and investment products, deposits, remittance services, electronic banking, payment services, credit cards, structured finance, trade finance, foreign exchange, wealth management, insurance, pension fund management, annuities, and trust and registrar services. For fiscal years 2008 through 2012, we had an average annual return on shareholders’ equity of 24.2% and an average dividend yield of 6.7%. As of September 30, 2012, we had a 30.4% share of the Jamaican banking and financial services market regulated by the Bank of Jamaica, as measured by consolidated total assets. We operate our business through seven segments (of which the Retail & SME, Payment Services, Corporate Banking and Treasury & Correspondent Banking segments are our commercial banking segments): • Retail & SME: We offer a broad range of banking products and services to Jamaica’s consumer and SME market and Jamaican government agencies. We provide these products and services through 38 full service branches, four agencies and 173 automated teller machines, or “ATMs,” across Jamaica. We had the largest commercial bank branch network in Jamaica at September 30, 2012. Our ATMs accounted for 35.0% and 34.2% of all ATM transactions in Jamaica for fiscal years 2011 and 2012, respectively. We were the first bank in Jamaica to offer dedicated business bankers and specialized product bundles to SMEs, which provide SMEs with tailored products and services and special pricing on certain loans and deposits. We, through our Retail & SME segment, issue debit cards to our consumer customers. Our debit cards represented 31.3% of debit cards in circulation in Jamaica at September 30, 2012. While the issuance of debit cards is a significant component of our Retail & SME segment from an operational and marketing perspective, no revenue is generated from the issuance of these cards and the fees generated from their use at point of sale terminals are recorded in our Payment Services segment. Our Retail & SME segment also includes our remittance business, which allows our customers to send and receive money from London through our subsidiary, NCB Remittance Services (UK) Limited, and worldwide through our contractual relationship with MoneyGram International, Inc. Our Retail & SME segment accounted for 8.3% and 11.7% of our total segment operating profit for fiscal years 2011 and 2012, respectively. • Payment Services: We, through our Payment Services segment, issue Visa®, MasterCard® and our proprietary Keycard credit cards to our consumer, SME and corporate customers. We also issue our proprietary Keycard Cash prepaid card to our consumer customers as well as our SME and corporate customers for use by their employees. Our Payment Services segment includes both our credit card issuing business and fees that we collect for transactions in which merchants using our card-processing point of sale, or “POS,” machines accept for payment any credit or debit card issued by us and other banks, which we refer to as our “acquiring business.” Credit cards issued by us represented 41.0% of credit cards in circulation in Jamaica at September 30, 2012. At that date, over 10,000 of our POS machines were installed in stores and other locations across Jamaica, representing 66.7% of all POS machines in Jamaica. Our POS machines processed 76.9% and 77.4% of total credit card merchant transactions in Jamaica, representing 64.7% and 62.9% of the total Jamaican dollar amount of credit card merchant transactions, for fiscal years 2011 and 2012, respectively. Our POS machines also processed 72.2% and 71.0% of total debit card merchant transactions in Jamaica, representing 77.1% and 77.7% of the total Jamaican dollar amount of debit card merchant transactions, for fiscal years 2011 and 2012, respectively. Our Payment Services segment accounted for 10.0% and 14.1% of our total segment operating profit for fiscal years 2011 and 2012, respectively. • Corporate Banking: We, through our Corporate Banking segment, offer large corporations and Jamaican government agencies loans, structured financings and foreign exchange transactions in addition to other banking products and services. We believe that we are the leader in originating loans to large corporations and government enterprises in Jamaica. Our Corporate Banking segment accounted for 12.6% and 0.7% of our total segment operating profit for fiscal years 2011 and 2012, respectively. • Treasury & Correspondent Banking: We conduct foreign exchange transactions and manage our liquidity and investments through our Treasury & Correspondent Banking segment. A dedicated financial institutions relationship team manages relationships with local financial institutions and correspondent banks. Our investments consist principally of Jamaican government debt securities. As an institution licensed to carry on banking business in Jamaica, we are able to transact in debt securities directly with the Jamaican government and the Bank of Jamaica in the primary and secondary markets. Our Treasury & Correspondent Banking segment accounted for 26.3% and 26.9% of our total segment operating profit for fiscal years 2011 and 2012, respectively. • Wealth Management: We, through our wholly-owned subsidiary, NCB Capital Markets Limited, offer repurchase agreements, brokerage services and portfolio management services to individual investors. We also offer these products and services, as well as certain corporate finance services, to our corporate customers. Repurchase agreements are a form of financing under which we sell Jamaican government debt securities to our customers and then reacquire those securities for a higher price at a later date, typically one to 12 months after the original sale. Our corporate customers accounted for 41.8% and 38.0% of the repurchase agreement balances of our Wealth Management segment for fiscal years 2011 and 2012, respectively. Net interest income earned from funding provided by repurchase agreements accounted for a substantial portion of our Wealth Management segment’s total segment operating profit for fiscal years 2011 and 2012. This segment also includes our offshore banking subsidiary, NCB (Cayman) Limited, which principally provides offshore banking services to our Jamaican customers. Our Wealth Management segment accounted for 28.2% and 29.6% of our total segment operating profit for fiscal years 2011 and 2012, respectively. . Insurance & Pension Fund Management: We, through our wholly-owned subsidiary, NCB Insurance Company Limited, offer a broad range of products and services including bancassurance (a product that combines investment and life insurance features), pension fund administration and investment management services, annuities and group life insurance. At December 31, 2011 (the most recent date for which comparative market data are available), we managed J$51,668 million in pension fund assets, representing an 18.3% market share of all pension fund assets under management in the country. At September 30, 2012, we managed J$48,510 million in pension fund assets. We provide investment advisory services to pension funds managed by us, although the fund trustees retain ultimate discretion over all investment decisions. Our Insurance & Pension Fund Management segment accounted for 14.4% and 17.8% of our total segment operating profit for fiscal years 2011 and 2012, respectively. • Other: We, through our Other segment, which includes our subsidiaries N.C.B. Jamaica (Nominees) Limited, Mutual Security Insurance Brokers Limited and West Indies Trust Company Limited, offer registrar and transfer agent, insurance brokerage and trustee services, respectively. This segment also includes our subsidiary DataCap Processing Limited, which provides security services to certain of our key employees. Our Other segment accounted for 0.6% and 0.2% of our total segment operating profit for fiscal years 2011 and 2012, respectively. At September 30, 2012, we had J$379,436 million (US$4,229 million) in total assets, J$111,905 million (US$1,247 million) in net loans, J$210,654 million (US$2,348 million) in investment securities, J$162,930 million (US$1,816 million) in customer deposits and J$66,343 million (US$739 million) in shareholders’ equity. We had net profit of J$13,885 million (US$155 million) and J$10,046 million (US$112 million) for fiscal years 2011 and 2012, respectively. Our return on average shareholders’ equity was 24.2% and our return on average total assets was 3.4% for fiscal years 2008 through 2012. We have received numerous international and local awards and recognitions. In 2011, The Banker ranked us third in return on capital and 14th in return on assets among the 267 largest banks worldwide by institutions with Tier I capital of under US$255 million. In a related ranking of banks in Latin America and the Caribbean in 2011, The Banker ranked us first based on both of these metrics. In 2011, we were named “Best Bank in Jamaica” by Global Banking and Finance, and we also received the Euromoney Award for Excellence: “Best Bank in Jamaica.” In 2008, 2009, 2010, 2011 and 2012, The Banker named us “Bank of the Year, Jamaica.” World Finance magazine named us the “Best Banking Group in Jamaica” for 2010, “Most Innovative Bank” for 2009 and 2010 and “Best Pension Fund Manager in the Caribbean” for 2009 and 2010. We also received a number of Best Practices Awards from the JSE, including the Governor General’s Award for Overall Excellence, Best Annual Report, Corporate Disclosure and Investor Relations in 2009 and 2011 and the Stockbrokerage Website Award in 2009. We were also the recipient of the Private Sector of Jamaica/JSE Awards for Corporate Governance for 2009, 2010 and 2011. In 2010, 2011 and 2012, Latin Finance named us “Best Bank in Jamaica.” In 2010, 2011 and 2012, the Human Resource Management Association of Jamaica awarded us the prestigious Golden Leader Award for innovation. ----- Our principal executive offices are located at 32 Trafalgar Road, Kingston 10, Jamaica, W.I. Our main telephone number is +1 (888) 622-3477 (in Jamaica); +1 (866) 622-3477 (from the United States, Canada and the English-speaking Caribbean); +0 (800) 032-2973 (from the United Kingdom). Our corporate website is www.jncb.com.