SUMMARY OF CONSOLIDATED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2012
31-Dec-12 31-Dec-11 31-Dec-12 31-Dec-11
MK'000 MK'000 ...
Dividend paid (400,204) (442,632) (400,204) (442,632)
Cash outflow from financing activities 5,327,262 (563,821) 5,327,262...
REGULATORY DISCLOSURES
1. IMPAIRMENT LOSSES /NON PERFORMING CREDIT FACILITIES AND PROVISIONS FOR LOSSES BY
SECTOR
Sector
M...
Total bonuses paid to employees - 217,046
DEPOSIT RATES
Type of Deposit
Malawi Kwacha
Current account 1.00 1.00
Savings 11.00 4.50
7 Day Notice 8.50 3.00
30 Day Not...
Certified  Public Accountants
In our opinion, the accompanying summarised financial statements are consistent, in all mate...
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NBS Bank Limited FY 2012 results

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NBS Bank Limited FY 2012 results

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Transcript of "NBS Bank Limited FY 2012 results "

  1. 1. SUMMARY OF CONSOLIDATED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2012 31-Dec-12 31-Dec-11 31-Dec-12 31-Dec-11 MK'000 MK'000 MK'000 MK'000 STATEMENT OF COMPREHENSIVE INCOME Interest income received 10,824,595 6,012,047 10,831,891 6,016,120 Interest payable (5,141,865) (1,883,758) (5,142,882) (1,886,758) Net Interest Income 5,682,730 4,128,289 5,689,009 4,129,362 Other Income 3,345,411 2,627,941 3,341,446 2,581,020 Net Income 9,028,141 6,756,230 9,030,455 6,710,382 Operating Expenses (5,980,252) (4,034,987) (5,907,948) (3,951,858) Profit before impairment losses 3,047,889 2,721,243 3,122,507 2,758,524 Impairment provisions (1,561,406) (189,218) (1,561,406) (189,218) Profit before tax 1,486,483 2,532,025 1,561,101 2,569,306 Income tax expenses (760,022) (846,003) (769,165) (856,522) Profit for the perod 726,461 1,686,022 791,936 1,712,784 Other Comprehensive Income Reversal of loan loss reserve - (124,202) - (124,202) Surplus on revaluation 261,810 - 261,810 - Net loss on available for sale financial assets 19,191 (22,600) 19,191 (22,600) Total Other Comprehensive Income 281,001 (146,802) 281,001 (146,802) Total Comprehensive Income 1,007,462 1,539,220 1,072,937 1,565,982 DIVIDENDS PAID Interim - 260,372 - 260,372 Final(for prior year) 400,204 182,260 400,204 182,260 Total 400,204 442,632 400,204 442,632 Earnings per share (tambala) 100 304 1.09 304 Weighted average ordinary shares in issue (million) 728 555 728 555 STATEMENT OF FINANCIAL POSITION LIABILITIES & EQUITY Deposits from Customers 47,636,603 45,420,911 47,677,773 45,458,670 Other liabilities 4,848,102 4,158,800 4,913,665 4,240,014 CompanyGroup Equity 7,138,657 6,531,399 7,181,212 6,508,479 Total Liabilities & Equity 59,623,362 56,111,110 59,772,650 56,207,163 ASSETS Cash and Cash equivalents 9,344,143 11,145,477 9,344,143 11,140,381 Other receivables 2,364,212 2,129,278 2,517,255 2,236,272 Other investments 7,043,499 3,002,960 7,043,499 3,045,560 Loans and Advances 35,714,754 36,007,914 35,756,509 36,013,145 Property, plant and equipment 5,156,754 3,825,481 5,111,244 3,771,805 Total Assets 59,623,362 56,111,110 59,772,650 56,207,163 STATEMENT OF CHANGES IN EQUITY As at beginning of the period 6,531,399 3,610,222 6,508,479 3,560,540 Total Comprehensive Income for the period 1,007,462 1,539,220 1,072,937 1,565,982 Issue of shares - 1,824,589 - 1,824,589 Other movements net (400,204) (442,632) (400,204) (442,632) As at end of period 7,138,657 6,531,399 7,181,212 6,508,479 STATEMENT OF CASH FLOWS OPERATING ACTIVITIES Interest and fees received 14,170,006 8,242,901 14,173,337 8,214,704 Interest paid (5,141,865) (1,883,758) (5,142,882) (1,886,758) Cash paid to Suppliers and employees (8,455,017) (6,091,392) (8,419,122) (6,051,319) Movement in net customer balances (5,615,621) 3,851,739 (5,648,734) 3,850,940 Income Tax paid (425,459) (522,510) (425,459) (522,510) Cash flows from operating activities (5,467,956) 3,596,980 (5,462,860) 3,605,057 INVESTING ACTIVITIES Acquisition of shares in NICO Properties Limited (15,000) - (15,000) - Acquisition of property and equipment (1,645,640) (1,063,573) (1,645,640) (1,044,705) Proceeds on disposal - 9,791 - 9,791 Cash outflow from investing activities (1,660,640) (1,053,782) (1,660,640) (1,034,914) FINANCING ACTIVITIES Loan proceeds (repayments) 5,727,466 (1,945,778) 5,727,466 (1,945,778) Proceeds from issue of shares - 1,824,589 - 1,824,589
  2. 2. Dividend paid (400,204) (442,632) (400,204) (442,632) Cash outflow from financing activities 5,327,262 (563,821) 5,327,262 (563,821) Net movement in Cash and Cash equivalents (1,801,334) 1,979,377 (1,796,238) 2,006,322 Cash and Cash equivalents at beginning of period 11,145,477 9,166,100 11,140,381 9,134,059 Cash and cash equivalents at end of period 9,344,143 11,145,477 9,344,143 11,140,381
  3. 3. REGULATORY DISCLOSURES 1. IMPAIRMENT LOSSES /NON PERFORMING CREDIT FACILITIES AND PROVISIONS FOR LOSSES BY SECTOR Sector MK'000 K'000 K'000 K'000 K'000 K'000 Agriculture 745.7 82.0 100.0 213.7 18.4 41.8 Manufacturing 192.4 16.0 31.0 20.1 2.6 5.9 Construction 1,836.7 402.0 46.8 140.8 12.1 27.5 Gas/Water 4.7 - 1.2 - - - Transport 326.0 58.0 21.7 485.7 41.8 94.9 Financial Services 27.3 2.0 4.7 - - - Wholesale/Retail 160.3 30.0 9.2 218.6 31.1 70.7 Individual/Household 2,219.6 192.0 350.4 640.9 55.1 125.2 Real Estate 15.7 3.0 0.8 292.7 25.1 57.2 Tourism 0.6 - 0.1 153.6 - 0.1 Other 3,319.0 389.0 422.0 Total 8,848.0 1,174.0 987.8 2,166.1 186.2 423.3 2. CREDIT CONCENTRATION Total credit facilities including guarantees, acceptances and other similar commitments extended by the bank to any one customer or group of related customers where amounts exceeded 25% of core capital. SECTOR OF BORROWER MK'000 % of Core Capital MK'000 % of Core Capital Agriculture 2,254                    34% 3,248.0 56% 3. LOANS TO DIRECTORS ,SENIOR MANAGEMENT AND OTHER RELATED PARTIES Directors 31-Dec-12 31-Dec-11 MK'000 MK'000 Specific Provisions Outstanding Amount Impairment loss Specific Provisions Outstanding Amount Impairment loss 31-Dec-12 31-Dec-11 31-Dec-12 31-Dec-11 Balance at the beginning of the period 117.0 73.0 Loans granted during the period 66.5 54.3 Repayments (50.3) (10.3) Balance at end the of period 133.2 117.0 Other related parties 31-Dec-12 31-Dec-11 MK'000 MK'000 Balance at the beginning of the period 389.6 304.9 Loans granted during the period 155.4 125.0 Repayments (102.9) (40.3) Balance at end the of period 442.1 389.6 Senior management officials 31-Dec-12 31-Dec-11 MK'000 MK'000 Balance at the beginning of the period 439.5 441.5 Loans granted during the period 13.5 45.6 Repayments (142.1) (47.6) Balance at end the of period 310.9 439.5 INVESTMENTS IN SUBSIDIARIES Name of subsidiary Percentage Holding 31-Dec-12 31-Dec-12 31-Dec-11 31-Dec-11 NBS Forex Bureau 7,000,000 100% 7,000,000 100% LENDING RATES Malawi Kwacha facilities 31-Dec-12 31-Dec-11 Base lending Rate 36.0% 17.5% Lending Rate Spread -2% to 10% -2% to 8% Foreign Currency facilities +5% +5% DIRECTORS' REMUNERATION AND EMPLOYEE BONUSES 31-Dec-12 31-Dec-11 MK'000 MK'000 Directors' remuneration 6,991 6,641 Number of shares Percentage Holding Number of shares
  4. 4. Total bonuses paid to employees - 217,046
  5. 5. DEPOSIT RATES Type of Deposit Malawi Kwacha Current account 1.00 1.00 Savings 11.00 4.50 7 Day Notice 8.50 3.00 30 Day Notice 11.00 4.00 2 Months 17.00 5.00 3 Months 21.00 4.50 6 Months 25.00 4.00 9 Months 12 Months Foreign Currency Denominated Accounts(FCDAs) USD 2.00 2.00 GBP 2.25 2.25 ZAR 3.00 3.00 EUR 1.50 1.50 FINANCIAL REVIEW Negotiable Negotiable Negotiable Negotiable 31-Dec-12 31-Dec-11 Rate % Rate % Performance The Group reported profit before tax of MK1,486 million for the year ended 31 December 2012 (December 2011: MK2,532 million) and net profit after tax of MK726 million (2011: MK1,686 million). Total income at MK14,170 million was 64% above prior year income of K8,625 million. Loan impairment provision grew significantly because some of our clients were caught up in the devaluation and in view of the high interest rates they were unable to service their loans hence increased loan impairments following the Bank’s prudent management of credit risk T The decline in profitability has been largely due to Foreign exchange losses after the 49% devaluation of the Malawi Kwacha against the US dollar which was effected in May 2012.However Interest Income grew by 10% against a Loan portfolio growth of 49% which was funded by a 52% growth in Deposits.Other Income declined by 55% due to foreign exchange losses caused by devaluation and the scarcity of foreign exchange during the first four months of 2012. INDEPENDENT AUDITOR'S REPORT interest rates, they were unable to service their loans hence increased loan impairments following the Bank s prudent management of credit risk. Total deposits at MK39,504 million (2011: MK45,421 million) reduced by 13% due to general market liquidity challenges while gross advances at MK37,877million (2011: MK36,668 million) grew marginally by 3% due to reduced lending. Total assets grew by 6% during the year mainly as a result of increase in money market balances. Economic overview The economy of Malawi did not perform well in the year 2012, growing by less than 2% as compared to 5% in 2011. The decline in growth was mainly on account of deceleration in agricultural output as a result of erratic rains and dry spells that affected some areas of the country; scarcity of foreign exchange; fuel shortages and contraction of the manufacturing sector. The situation was worsened by the withdrawal of aid by major donors who contribute up to 40% to Government Revenue. Although tobacco output was good, sales and proceeds were not as impressive and this had a negative impact on the country’s foreign exchange reserve position, which was below the three months import cover threshold. The Malawi Kwacha was devalued by 49% in May 2012, and the foreign exchange rate system was changed from fixed to floating rate. At 31 December 2012 the Malawi Kwacha had depreciated by over 100%, relative to other currencies since 1 January 2012. Inflation increased from 9.8% in December 2011 to 34.6 % in December 2012 on account of shortage of foreign exchange and increased transport costs, coupled with the devaluation of the Malawi Kwacha and rising cost of food. The Bank rate increased from 13% to 25% and the Base lending rates increased from 17.5% to 36%. Deposit rates increased to an average of 28%, mainly on account of the liquidity squeeze experienced during the year. Outlook The Malawi Economy is expected to remain depressed until the second half of the year 2013 with continued shortage of foreign exchange and rising inflation. Bank rate is projected to increase from the current rate as the monetary authorities attempt to reduce the growth of money supply. As a consequence, we expect our loan book to continue being affected in 2013. The Bank will continue with its strategy of taking banking to the people and, as the impact of liquidity crisis reduces inflation and interest rates improve from the second half of the year, business is forecast to improve. F MLusu E Nuka (Mrs) Chairman Director
  6. 6. Certified  Public Accountants In our opinion, the accompanying summarised financial statements are consistent, in all material respects, with the financial statements from which they were derived. For a better understanding of the Group's financial position and the results of its operations for the year and of the scope of our audit, the summarised financial statements should be read in conjunction with the consolidated financial statements from which the summarised financial statements were derived and our audit report thereon. We have audited the consoilidated financial statements for NBS Bank Limited for the year ended 31 December 2012 from which the summarised financial statements were derived, in accordance with International Standards on Auditing . In our report dated 15 March 2013, we expressed an unqualified opinion on the financial statements from which the summarised financial statements were derived.

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