Jersey Bank Depositors Compensation Board 2026 Accounts

Tel: +44 (0)1534 510100  Windward House www.bdo.je  La Route de la Li beration

St Helier

Jersey

Channel Islands

JE1 1BG

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE JERSEY BANK DEPOSITORS COMPENSATION BOARD

Opinion

In our opinion, the financial statements:

• give a true and fair view of the state of the Board's affairs as at 31 March 2026 and of its loss for the period then ended;

• have been properly prepared in accordance with United Kingdom Accounting Standards; and

• have been prepared in accordance with the requirements of the Banking Business (Deposit Compensation) (Jersey) Regulations 2009.

We have audited the financial statements of The Jersey Bank Depositors Compensation Board ("the Board") for the period ended 31 March 2026 which comprise the Statement of Comprehensive Income, the Statement of Financial Position and notes 1 to 10 to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) ("ISAs (UK)") and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter - financial statements prepared on a basis other than going concern

We draw attention to note 1 to the financial statements, which explains that the financial statements have been prepared on a basis other than of a going concern. The approval of the Draft Bank (Recovery and Resolution) (Jersey) Amendment Law 2025 has effected the transfer of functions from the Jersey Bank Depositors Compensation Scheme Board to the Jersey Resolution and Deposit Compensation Authority with effect from 1 April 2026. Consequently, the going concern basis of preparation is no longer appropriate. Our opinion is not modified in respect of this matter.

Other information

The Board Members are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially  misstated.  If  we  identify  such  material  inconsistencies  or  apparent  material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

BDO Li mited, a limited liability company incorporated in Jersey with company number 103834, is a member of BDO International Li mited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms.

A list of directors can be obtained at the above address

Responsibilities of Board members

As  explained  more fully  in the  Boards'  responsibilities  statement,  the  Board members  are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Board members determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board members are responsible for assessing the Board's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board members either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements  

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design  procedures  in  line  with  our  responsibilities,  outlined  above,  to  detect  material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Based on:

• Our understanding of the Board and the industry in which it operates;

• Discussion with management and those charged with governance; and

• Obtaining an understanding of the Board's policies and procedures in place to prevent and detect non-compliance with laws and regulations.

We considered the significant laws and regulations to be the Banking Business (Depositors Compensation) (Jersey) Regulations 2009.

The Board is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations.

Our procedures in respect of the above included:

• Review of minutes of meeting of those charged with governance for any instances of non- compliance with laws and regulations; and

• Enquiry with management and those charged with governance regarding any known or suspected instances of non-compliance with laws and regulations.

Fraud

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:

• Enquiry with management and those charged with governance regarding any known or suspected instances of fraud;

• Obtaining an understanding of the Board's policies and procedures relating to detecting and responding to the risks of fraud and internal controls established to mitigate risks related to fraud;

• Review of minutes of meeting of those charged with governance for any known or suspected instances of fraud;

• Discussion amongst the engagement team as to how and where fraud might occur in the financial statements;

• Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and

• Agreement of financial statement disclosures to underlying supporting documentation.

Based on our risk assessment, we considered the areas most susceptible to fraud to be management override of controls.

Our procedures in respect of the above included:

• Testing a sample of journal entries throughout the period, which met a defined risk criteria, by agreeing to supporting documentation;

• Assessing significant estimates made by management for bias; and

• Evaluation of the appropriateness of the accounting disclosures.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located at the  Financial  Reporting  Council's  website  at:  www.frc.org.uk/auditorsresponsibilities.  This description forms part of our auditor's report.

Use of our report

This report is made solely to the Board's members, as a body, in accordance with the requirements of the Banking Business (Deposit Compensation) (Jersey) Regulations 2009. Our audit work has been undertaken so that we might state to the Board's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Board's members as a body, for our audit work, for this report, or for the opinions we have formed.

BDO Li mited Chartered Accountants Jersey, Channel Islands

25 June 2026