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CARIBBEAN INVESTMENT HOLDINGS LIMITED ANNOUNCES FINANCIAL RESULTS FOR THE FISCAL YEAR ENDED 31st, MARCH 2022

18 August 2022

Hamilton, Bermuda: 18^th, August 2022 – In a filing with the Bermuda Stock Exchange Caribbean Investment Holdings Limited. (the "Company”; Ticker: CIHL.BH) announces financial results for the fiscal year ended 31^st, March 2022. The full filing stated:

CARIBBEAN INVESTMENT HOLDINGS LIMITED ANNOUNCES FINANCIAL RESULTS FOR THE FISCAL YEAR ENDED MARCH 31, 2022

Road Town, Tortola, British Virgin Islands, 17 August 2022 -- Caribbean Investment Holdings Limited (Bermuda – CIHL) (the “Company” or “CIHL”).

Caribbean Investment Holdings Limited and its subsidiaries (the "Group") produced net income of $12.6 million in fiscal 2022 representing a 17% decrease from fiscal 2021. Fiscal 2021’s net income included a non-recurring gain on the acquisition of Scotiabank (Belize) Limited (“SBL”) amounting to $8.1 million. Fiscal 2021’s net income before the non-recurring gain amounted to $7.0 million.

The fiscal 2022 financial results reflect an 80% increase over the adjusted fiscal 2021 net income due largely to an improved financial performance at its largest subsidiary, the Belize Bank Limited. The Belize Bank’s 2022 financial performance was further enhanced with the inclusion of the business operations of SBL. SBL was purchased at the end of fiscal 2021 and therefore its results are included for a full financial year in 2022.

Earnings per share for the year amounted to $0.09 in fiscal 2022 which represented an 18% decrease from fiscal 2021's earnings per share of $0.11

The Group’s balance sheet remains strong with shareholders’ equity of $135.9 million at 31 March 2022 compared with $124.6 million last year.

The Company confirms that the annual report and accounts will be available to view on the Company’s website, www.cihltd.co.

For further information contact:

Caribbean Investment Holdings Limited

UK +44 (0)207 248 6700

Belize +501 227 7178

Note: This and other press releases are available at the Company's web site: http://www.cihltd.co.

Background Information

Caribbean Investment Holdings Limited (“CIHL”) is a parent holding company with no independent business operations or assets other than its investments in its subsidiaries, intercompany balances and holdings of cash and cash equivalents. CIHL's businesses are conducted through its subsidiaries. The Belize Bank Limited (“BBL”) is incorporated and based in Belize and focuses on the provision of financial services and lending to domestic clients. Belize Bank International Limited (“BBIL”) is incorporated and based in Belize and focuses on the provision of financial services and lending to international clients. CIHL also owns an international corporate services business based in Belize, which operates as Belize Corporate Services Limited. Within Belize, BBL is a full service commercial and retail banking operation with eleven branches extended into each of the six districts of Belize. The principal operations of BBL are commercial lending, consumer lending, deposit taking and related banking activities.

REPORT OF THE CHIEF EXECUTIVE OFFICER

Earnings per share for the year amounted to $0.09 in fiscal 2022 which represented an 18% decrease from fiscal 2021's earnings per share of $0.11

The Group’s balance sheet remains strong with shareholders’ equity of $135.9 million at 31 March 2022 compared with $124.6 million last year.

Milestones

During the course of the fiscal year ended 31 March 2022, the Group achieved a number of important milestones.

Acquisition of Scotiabank (Belize) Limited

On 31 March 2021, Caribbean Investment Holdings Limited (“CIHL”) completed the acquisition of SBL for $20.0 million and completed the integration of both enterprises at the end of February 2022. This acquisition which effectively doubles the size of The Belize Bank (“BBL”) brings with it several significant additional advantages. The acquisition will allow for improved earnings and provide the opportunity to leverage BBL’s core banking system over a wider product base. This will, in turn, lead to improved levels of efficiency and an overall improvement in the bank’s efficiency ratio. Prior to the acquisition, Scotiabank had the cheapest core deposits in the Belizean banking system and the merging of both enterprises has also had a positive impact on BBL’s overall cost of funds. Although already systematically important to the financial system, the merging of SBL with BBL has created a significantly larger financial institution in the market providing further leverage to negotiate with suppliers. Finally, SBL’s loan portfolio and product mix will bring balance, diversification, and growth opportunities to BBL, whose loan portfolio, up until this point, was heavily weighted towards corporate lending.

Launch of E-KYASH Mobile Wallet

On 5 August 2021, BBL launched Belize’s first mobile wallet application – E-KYASH. This application which is now ubiquitous in Belize and has over 40,000 subscribers, allows both BBL clients and non-clients alike (including the over 40,000 unbanked Belizean citizens and workers) to conduct P2P, B2B, bill payment, and QR Code transactions using their mobile devices. This innovation is also the forerunner to Belize moving from a cash-heavy to a cash-lite financial system and goes a very long way in alleviating issues surrounding financial inclusion and financial literacy in the country. BBL is currently in negotiations with the Government of Belize with a view to using this app to facilitate payments on the Government’s behalf and recently collaborated with the Department of Labour to allow applicants for work permits to pay for their permit using this digital channel. In addition to being the first mobile wallet to be launched in Belize, we believe that this is the first ever operational Mobile Wallet to be launched in the Caribbean.

Improved Credit Rating For BBL

On 8 December 2021 Caribbean Information and Credit Rating Services Limited (“CariCRIS”) upgraded the Issuer/Corporate Credit ratings assigned to BBL to CariBB (Foreign and Local Currency) on the regional rating scale and reaffirmed the national scale rating to bzAA+ on the Belize national scale. The national scale rating indicates that the level of creditworthiness compared to other obligors in Belize is high. Among other things, some of the factors supporting the improved rating for BBL were; BBL’s strong presence in the Belizean commercial banking industry with a wide distribution network; robust risk management framework supported by digital initiatives; a deposit base under-pinned by a stable funding cost and strong liquidity position, and; comfortable capitalization reflected in good coverage of total assets.

Regulatory Compliance

In accordance with section 80(1) of the Domestic Banks and Financial Institutions Act, 2012, (“DBFIA”), the Central Bank conducted a risk-based onsite examination of BBL’s operations. The examination was conducted during the period 7 June to 27 August 2021.

The objective of the examination was to assess the effectiveness of the BBL’s governance and risk-management practices and compliance with applicable laws, Practice Directions, Guidance Notes, and the bank’s policies and procedures. The Central Bank concluded that the bank’s operations were being conducted in a safe and sound manner and that the bank was adequately compliant with applicable laws, Practice Directions, and Guidance Notes.

Outlook

Credit expansion in Belize over the past five years has been negligible. The SBL acquisition will allow for improved earnings and provide the opportunity to leverage our core banking system over a wider product base. Given the significant synergies, this will also lead to improved levels of efficiency and improvement in our overall efficiency ratio. Although systemically important, prior to the acquisition, the merger has created a significantly larger financial organization with a more diversified loan portfolio. Against this background, both the board and management have every confidence that BBL and its affiliates will continue to dominate the banking landscape as we aspire to offer our customer base a full range of sophisticated and affordable banking products and services.

During the course of Fiscal 2022 Management will also re-engage the process of identifying investment opportunities in the Financial Services sector in the wider Caribbean as we seek to develop a regional banking franchise.

Lyndon Guiseppi

Chief Executive Officer

17 August 2022

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