1st NatioNal BaNk's official Bi-MoNthly NewsletterIssue 11 • May/Jun 2011

The

Funny MoneyLighten up For

a whiLe, spare a MoMent For a

chuckLe

A NEW SAVINGS STRATEGY

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SUCCESS

What makes local, better, in banking services?

WHAT'S INSIDE

the Big story

TELLER

Hello Again

T h a n k y o u f o r p i c k i n g u p a n o t h e r b i - m o n t h l y i s s u e o f t h e Te l l e r Newsletter. It is a pleasure

to note your con t i nu i ng i n t e r e s t i n

this publication w h i c h i s

d e s i g n e d t o give you a handy

s n a p s h o t o f t h e Bank’s communi ty

activities as well as inform on some broad

financial issues.

No doubt you have recovered from all the carnival festivities. Congratulations to those who participated and excelled in the different carnival events and competitions. 1st National Bank is often referred to as a Patron of the Arts and we were proud to have once again, supported various events and groups in this spectacle of culture, artistry and pageantry. Our contribution is covered in some detail in our Community section.

Also in this 11th issue of the Teller we focus on the powerful reality of "Local Knowledge" when it comes to understanding and relating to people and communities. This is more than a concept but a fundamental requirement, and those businesses that have this asset exercise a clear advantage over their competitors.

At 1st National Bank we understand what has been entrusted to us by thousands of customers and stakeholders for over 70 years. As the first indigenous Bank in the country we are interwoven into the fabric of St. Lucian life. our very genesis was because of our people and our growth has been synonymous with that of our nation.

We also understand that it is this local knowledge that has made us leaders in our industry. The fact that our board, management and staff are 100% st. lucian allows us to understand at very intimate levels how our customers feel, what they need and want and how we can best tailor solutions for their unique situations. From the newly wed couple starting out on

a journey together and wanting to build a home to a small entrepreneur with big dreams - we can empathize because we have been there ourselves at the

individual and corporate levels. And, as our tagline appropriately states now and always...we're here for you!

Managing Director's Letter

g. carlton glasgowManaging Director

The phrase ‘local knowledge’ can be found on numerous websites of banks around the globe, especially huge international banks trying to appear personal and culturally in-tune with every branch of their multi-country network. These banks tout the staff’s geographic relationship and roles in community activity as key strengths, as they clearly are, but often subtly down-play the difficulties encountered in attempting to retro-fit global policies and standardized products into the local paradigm. Often the result can be frustration on the part of the credit-seeking SME, or worse, higher default ratios and business failure as the loan agreement falls short of considering the actual situation facing the borrower in the full context of the economy and geo-political situation. In plain language - what the bank doesn’t know could hurt both the bank and the customer.

When a Bank, such as 1st National Bank, has developed those policies and products over decades within the same context as the intended borrower must operate, some clear advantages emerge. “Working together with the experienced and competent local banker, with whom a consolidated relationship of trust has been established, may help small entrepreneurs overcome their fears, mistrust and lack of a financial culture. These limits are often the main obstacle to making the necessary leaps forward in quality and size.”

Pietro Alessandrini, Alberto Zazzaro MoFiR – Università Politecnica delle Marche Ancona So what doeS that Mean to a potentIal borrower?Firstly, that they should ideally take to a Bank that speaks their language and knows the society in which they function. This is not only true for frontline staff, but for locally based decision makers in whom the responsibility lies to demonstrate sound judgement based on specialised knowledge.

What makes local, better, in banking services?

The Big Story

Secondly, presence in the market is not the same as “experienced and competent local banker” and Bank performance is a key assessor of how that local knowledge is serving the customers and community. The Bank must perform in order to have the capital and confidence of its shareholders in order to invest in new and innovative products and service features. Thirdly, most importantly, is the factor of trust. “With whom a consolidated relationship of trust has been established”. Trust is built on a consolidation relationship and must go further than simply the trust that the bank is stable or reputable. Trust, the “consolidated relationship” type, is built on generational deep commitments to individual, community and nat ional development such as the role played by 1st National Bank across all spheres of Saint Lucian life. Trust, the “established” type, takes time and proven performance such as the 73 years of consistent, stable and evolving growth of 1st National Bank. Thus, speaking of the value of ‘Local Knowledge’ we must then consider not only the legislative environment or the industry practices of the host nation, it must drive deeper and demonstrate true commitment to all spheres of the national psyche. 1st National Bank can proudly say that we have achieved such a respect locally. We are known and respected regionally for our community support, an active role in developing business and as an innovator, bringing relevant and suitable products and services to the market to improve the banking experience for customers as well as strengthen our position in the market. In one area in particular, “overcome their fears, mistrust and lack of

a financial culture”, 1st National Bank has stood as a paragon of the people’s right to fair banking. The ‘no fine print’ culture on which the Bank was established as the People’s Bank sustains today and customers benefit from the Bank’s firm and unwavering commitment to earning and maintaining trust through straight forward, yet flexible, lending products. Again in the straightforward language for which we have become so well known...”you trust us because if we were not trustworthy the ‘whole of Saint Lucia’ would have known long ‘time’”... 1st National Bank was created, has grown and will continue to perform, to serve all our communities because we are precisely the type of Bank that an emerging and developing economy such as ours most needs - locally knowledgeable and committed, regionally respected and internationally capable.

The Big Story

1st National Bank St. Lucia Limited, P.O. Box 168,#21 Bridge Street, Castries, St. LuciaTel: +758 455 7000 | Fax: + 758 453 1630Email: manager@1st nationalbankslu.comWebsite: www.1stnationalbankonline.com

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Spotlight on the Community1ST natIonal bank SupportS kaISo headquarterS

Considered one of the “safest” fetes in town, Kaiso Headquarters hosted by members of the Royal Police Force launched recently with the full support of top brass and of course 1st National Bank.

Now in its sixth consecutive year, the competition has become a fixture on the carnival calendar of events. Acting Police Commissioner, Vernon Francois and other high-ranking officers of the Royal St. Lucia Police Force gathered with other allied service providers and sponsors to witness the launch of Kaiso Headquarters 2011. Over its six years, the event has grown from strength to strength.

“The Royal St.lucia Police Force proposes to move one step further this year. As part of our police week of activities we are targeting a regional calypso competition. Therefore we are hoping that the winner of the Kaiso Headquarters Calypso Event will have the privilege of representing us regionally during the month of October, ” stated Mr. Francois.

This year a workshop was held for the participants to help sharpen their calypso skills. During the press launch of Kaiso Headquarters, several sponsors presented the organizers with their financial and material support for the event.

1st National Bank has been a consistent sponsor and supporter, financing the event from as far back as its inception, as their commitment to the arts and culture in St. Lucia is well documented.

“Its an event that 1st National Bank is very proud of, in that we see the efforts made by the Royal St.lucia Police Force not only in tackling crime but also in improving their relationship with members of the community,” Mr. Robert Fevrier remarked.

Acting Commissioner Vernon Francois encouraged members of the force to continue participating in the event as, according to him, it has had a positive effect on the work of the police.

“This event provides us with an excellent opportunity to be more well rounded in the task of policing. Every year we have more and more officers getting involved in Kaiso Headquarters. Just as 1st National Bank has shown its unwavering support for this event I adamantly pledge the support of the entire police department for this event.,” exclaimed Mr.Francois.

1ST natIonal bank SponSorS kIddIeS CarnIval 2k11Three junior carnival bands proudly supported by 1st National Bank took the top three places at this year’s Kiddies Carnival.

1st National bank is once again adding to its record of achievement by way of development of local Arts and Culture, specifically Kiddies Carnival 2011.

This year, 1st National Bank decided to lend a helping hand to three junior bands in the St.lucia Carnival 2011 celebrations – Just Us

Kids, Rituals and Dynamic Kids. Bank representative, Mr. Robert Fevrier believes now is the time to develop the children’s creativity.

“We’re throwing our weight behind the children because we believe that culture is important. As with any and everything else you have to start at a young age. 1ST National Bank has made it its duty to develop that spirit of and appreciation for culture in these kids.

Hundreds of school children turned out Sunday afternoon, in perfect weather to showcase their costumes. This following months of hard work at mas camps around Castries. Five bands participated in the competition. Barry George, leader of Just Us Kids junior carnival band, took top honors at this year’s carnival portrayal, held at the Vigie Sports Complex. His band depicted the theme, The People Who Came.

Our themes are usually children friendly themes. We felt we should try doing something historical this year. Through use of this theme the children were able to build a connection with who they were and how they have come to be “Caribbean People”. Therefore the theme

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1st National Bank St. Lucia Limited, P.O. Box 168,#21 Bridge Street, Castries, St. LuciaTel: +758 455 7000 | Fax: + 758 453 1630Email: manager@1st nationalbankslu.comWebsite: www.1stnationalbankonline.com

“The People Who Came” was amazingly appropriate. Interestingly, “The People who Came” is an old history text book which many are familiar with.

George says he is ensuring the sustainability of the carnival art form. He also believes that the mas camp is a crucial training ground for future costume designers and builders. The Just Us Kids mas camp also provides valuable assistance to students doing their SBAs.

We are proud to say that everywhere Just Us Kids is training at least 30 young persons in costume building. I know down the line these individuals will own or manage a band or possibly be a designer for a band. We are proud to know that we are part of the carnival “process” and that we have been instrumental in giving these young ones this critical opportunity. We also express our gratefulness to 1st National Bank for their financial support. There are many theatre arts students who come here to participate as well, because it aids them in their study of the CXC subject Theatre Arts and in costume building, which is an aspect of their study.

The other two bands funded by 1st National bank, Dynamic Kids and Rituals junior carnival band came in second and third respectively.

1ST natIonal bank and rC JaM 2011

The winners in this year’s RC Jam calypso competition got an opportunity to open new accounts and make deposits as part of their reward for a job well done.

1st National bank offered major support for the popular annual event, which has become a highlight of the St. Lucia carnival season. The dust has settled on this year’s RC Jam and the young calypsonians were happily making deposits and opening accounts at the Bridge Street branch of 1st National Bank – part of their prize for participating in the RC Jam calypso competition. According to organizers, this year’s event met all expectations.

“From all indications RC Jam 2011 has been a success. We had tremendous support from the public. The boys put on a fantastic show! It was a keenly contested competition and we had three segments to our event.”

This year, the Roman Catholic Boys got to try their hand at a different aspect of the calypso art form, so like their senior counterparts, they were given the option of presenting a power or groovy soca song. According to Mr. Don Howell, Chairperson of the RC Jam planning committee, the students stepped up to the plate.

“We want them to understand that calypso is the base of Caribbean music, the most important aspect of it. This is where it all started. Soca and groove have become a big part of our carnival. We also took this opportunity to educate the boys about the genres of music and the commercial aspect of music. There is no place for naivety in this industry. It is our responsibility to enable them, condition them so that they can “grow up”, develop into individuals who make informed decisions later on when they officially become artists.

1st National Bank sponsored all of the prizes received by the RC Jam participants which included new account openings for those who did not already have one, as well as a $100 deposit for every account holder. Howell says he is grateful for the financial institution’s unwavering support.

“1st national bank I can tell you they have come a long way with us. Every year they make arrangements to ensure our students are well taken care of. I want to give a great thank you to the bank because they are very involved in developing people, and nation building. If we want our culture and carnival to grow with substance in the next few years we must develop the carnival spirit in our youth. So thank you to 1st National Bank for coming in and partnering with us.

Little Nick won the soca segment of the competition, while Mighty Red captured the Calypso King title. RC Jam was held on Thursday June 30th on the grounds of the Roman Catholic Boys School.

1ST natIonal bank In the St. luCIan CarnIval SpIrIt

This year marks the 30th anniversary of St. Lucian Spirit carnival band and the group took their latest costume offerings to locals and tourists alike at their launch.

Band organizers say it is important to highlight the island’s cultural activities to visitors as it adds a new dimension to the St. Lucian tourism product.

The Bay Gardens Beach Resort and Spa was the chosen venue for the launching of St. Lucian Spirit’s 2011 carnival portrayal. The event was organized around the resort’s weekly, Manager’s Welcome Cocktail Party giving the newly arrived guests a real taste of St. Lucian hospitality and culture.

It is carnival Season after all and we are giving these guests an

Spotlight on the Community

Spotlight on the Communityopportunity to really get a taste of Lucian carnival. They get a sense of what its going to feel like, its certainly not the full thing, it is a sample. They are clearly enjoying this sample and by all indications will enjoy the real thing on a far grander scale. It also appeals to their younger generation. They will leave St.lucia with an overwhelming urge to come back next year and fully immerse themselves in Lucian Carnival. That is our well-founded hope.

This year St. Lucian Spirit is depicting the theme – Historical Footnotes, which traces some of the more notable incidents in the island’s history.

There are five sections this year. Three of which are George the Fifth Park, The Dawn of a New Day, which is independence and Sugar Cane. Our estimates suggest 50 people per section; therefore we expect a base of at least 250.

1st National Bank has been a loyal supporter of St. Lucian Spirit. This year, the band has devised a way to ensure employees’ get an opportunity to participate, some of them, for the very first time.

The entire staff base is excited by this event especially due to the fact that many staff members will be participating for the very first time. Not only that, but they have an opportunity to form part of the 30 year old St.lucian Spirit Carnival tradition. Carnival veterans and first-timers alike are keen on having a clean, safe and most certainly a jubilant Carnival 2011.

Mon repoS rC GraduatIon and 1ST natIonal bank

The Mon Repos RC Combined School held its annual graduation ceremony recently. This year the school achieved an ultra-impressive 100% pass rate for its graduating class.

School officials say this is in keeping with their mission to promote

excellence in education amongst other positive traits aimed at raising the standard of the learning institution.

For the graduates the 18th graduation and awards ceremony was another milestone in the life of the Mon Repos RC Combined School. Every member of the class of 2011 is moving on to the secondary school of their choice.

Principal Marjorie Serieux says while a lot of academic practice went into their 100% pass objective, the students were reminded daily of the important role of spirituality in their young lives.

“Throughout this year the administration of Mon Repos RC Combined endeavored to impress upon our students the importance of God in their lives. We were and still are committed to etching on their minds that God is the very first person, being, factor that they should consider when making decisions. When entering this academic institution the message board reminds all of us constantly that God is first,” stated Mrs.Serieux.

Mrs. Serieux says the school aimed to develop what she termed “Global Citizens” – persons who display confidence regardless of what part of the world they may be. They need to also exude confidence in their origins, their history, proud to maintain their local identity. The school also wanted to ensure students kept their eyes on the prize of academic achievement.

Our main goal was on higher student achievement. The emphasis was literacy and numeracy as articulated in the ministry of education’s strategic plan for 2011 and beyond. Literacy and numeracy have been the foundation of scholars for many millennia. Literacy is the pathway to life long learning in multiple intelligences.

Guest Speaker, Priscilla Haynes, a former student of the school spoke on the theme, “The Secret to Success is to Seize Opportunities When They Arise”. She implored the students to explore as many chances, as life presents.

“Don’t be afraid to take up a challenge. You need to take up every opportunity to learn and do better. Fight on, do not give up. The sky is the limit some say but I tell you, the universe is the limit because man has gone passed the sky to the moon. Next thing you know one of you sitting here could be on a space shuttle to Mars. Yes You Can!”

Twenty-five students graduated from the Mon Repos RC Combined with parents, teachers and well-wishers looking on. The 1st National Bank, which adopted the school five years ago is extremely proud of the student’s and of course the school’s achievement and will continue to show zealous support to it’s young scholars. 1st National Bank proudly offers an emphatic congratulations to the graduates of Mon Repos RC Combined School.

Yes the first half of the year has already gone by. Is your 2011 savings strategy yielding results? We have provided the following tips to ensure that all St. Lucians experience the genuine fulfilment that comes from applying an effective saving strategy. Be a more disciplined spender in the year 2011.

Firstly eliminate late Fees. Have you found yourself hit with extra finance charges on your credit card-bill, because it is usually due prior to you receiving your paycheck? If this is the case you can call your credit card company and have your due dates adjusted to better suit your pay schedule. Though it may take a few months for this to change, it will be well worth it. Consider the extra-fees you could have easily avoided, and now hope to avoid in the future, by simply changing a date.

analyze your workday expenses. Purchasing meals from a restaurant or “Mum’s canteen” can be very unforgiving to your wallet over the long term. Buying a $15 meal every work day for a year would amount to $4320. That could easily put you on a beach in Spain. Why not bring your lunch to work? Not enough time? Why not prepare a meal the night before? Doing so would save you on average, half of your food costs!

If it is feasible where you live, try commuting by bus. Taking the bus can give you an opportunity to catch up on reading, meditate, or simply relax. Hopefully the Bus driver plays his music discretely. Another option would be to try “car-pooling”. Make an agreement with a close co-worker or friend to use one car. Your average car consumes $120 worth of gas a week. “Car-pooling” is a simple way of reducing both individuals commuting cost if they can willingly co-operate. You would save at least $30 weekly.

pay yourself first. This is the simplest form of saving. Money tends to disappear fast in developing countries. After assessing your budget, is there room for an extra-bill? Why not dedicate that small amount to your savings account. Experts suggest saving on average 10% of your salary. Of course for many St. Lucians this is a time of rebuilding, and 10% may not be possible. However it is important to start somewhere. Could you save at least 5% of your salary? Viewing it as just another bill may make it easier for you to save.

reduce credit Card debt. Credit cards are very convenient. However if not used cautiously, the huge bill due to high interest rates and late fees may not be. Using your credit card sparingly is a basic principle. If you have failed to apply this principle in the past you best start now. In the case where you have already accumulated some credit card debt from 2010, a prompt conversation with your credit-card provider is essential. Negotiate the transfer of your credit card balances to a card with a lower interest rate. Low interest rates do not last forever. After successfully transferring the balance focus on paying it off. You should avoid adding anymore needless debt during the pay-off period.

be a disciplined Spender. We all have things we enjoy, whether it is; rum and coke over a game of dominoes or some of that comfort food at the end of the day. Even when we ignore the health risks their still exists a financial cost. Have you considered what the cumulative costs of your habits are? A pack a day smoker spends at least $3000 a year on cigarettes. Comfort foods are not nearly as much however the cost should still be considered. Furthermore for St. Lucian smokers who have life and medical insurance, huge cuts in premiums can be achieved by simply quitting. This is easier said than done, but it is still do-able.

Money Guide for Financial Success A communication of the National Savings and Investment Programme supported by 1st National Bank

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Money Jokes and Humour From Across the Globe

After years of scrimping and saving, a husband told his wife the good news: "Honey, we've finally got enough money to buy what we started saving for in 1979." "You mean a brand-new Cadillac?" she asked eagerly. "No," said the husband, "a 1979 Cadillac."

Three animals were having a drink in a cafe, when the owner asked for the money. "I'm not paying," said the duck. "I've only got one bill and I'm not breaking it." "I've spent my last buck," said the deer. "Then the duck'll have to pay," said the skunk. "Getting here cost me my last scent."

No one likes coughing up rent. But at least these tenants gave landlords creative reasons for avoiding it.

"With my daughter's graduation, our new boat, and our trip to Europe this year, we're a little strapped."

"I'm getting real tired of paying this rent every month! You'll have to wait a few more days."

"We're a little short right now. But don't worry—we're getting a refund on my wife's tattoo. The artist messed it up, and we're getting back most of the bucks!"

"I didn't pay the rent because I'm saving up to move."

"It's your fault the check bounced. Why didn't you tell me you were going to run to the bank the very same day!"

A guy noticed that his buddy was troubled and asked what was wrong. "Ohhh, it's my girlfriend." "What's the problem?" "When I asked her if she could learn to love me, she asked me how much I was willing to spend on her education."

If you had a million dollars and gave away one quarter, and another quarter, and then another quarter, how much would you have left? A million dollars minus 75 cents.

Dad, would you like to save some money? I certainly would, son. Any suggestions? Sure. Why not buy me a bike, then I won't wear my shoes out so fast.

William: May I have some money for the man crying outside ? Mum: What crying man ? William: The one that's crying, 'Ice cream! Ice Cream !'

'Five dollars for one question!' said the girl to the fortune-teller. 'That's very expensive,isn't it ?' 'Next!'

How can you double your money? Look at it in a mirror.

How can you get rich by eating? Eat fortune cookies.

Sometimes it’s hard to see the lighter side of money and personal finance. But here are some funny ones about money to lighten things up.

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STUDENT LOANSTHE EASIER WAYFulfill YOUR EDUCATION DREAMS today by coming in to any of our locations where one of our friendly Loans Officers will be more than happy to assist you.

1st National Bank St. Lucia Limited,P.O. Box 168,#21 Bridge Street, Castries, St. LuciaTel: +758 455 7000 | Fax: + 758 453 1630Em ail: manager@1st nationalbankslu.comWebsite: www.1stnationalbankonline.com

1st National Bank now makes it even EASIER for you to pursue a University Degree or any other form of advanced studies with very attractive 1st Future STUDENT LOANS.

Future