Citibank, N.A. Macau Branch. Disclosure of Financial Information

Transcription

1 30 June 2014

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3 Balance sheet as at 30 June 2014 (Expressed in Macau Patacas) Assets 30 June 2014 Amounts Reserves, depreciation and provision Net amount Cash 11,235,063-11,235,063 Deposits at AMCM 217,914, ,914,408 Items-in-transit 11,131,644-11,131,644 Demand deposit with local banks and other financial institutions 10,064,480-10,064,480 Demand deposits with overseas banks and other financial institutions 1,460,526,263-1,460,526,263 Other assets 477, ,050 Loans and advances to customers 1,089,212,513-1,089,212,513 Available-for-sales securities issued by AMCM 175,000, ,000,000 Call and fixed deposits with overseas banks and financial institutions 424,675, ,675,468 Debtors 82,511,695-82,511,695 Equipment 2,600,171 2,037, ,969 Installation 4,973,013 1,618,961 3,354,052 Other fixed assets 68,585 68,585 - Internal and adjustment accounts 95,355,026-95,355,026 Total 3,585,745,379 3,724,748 3,582,020,631 3

4 Balance sheet as at 30 June 2014 (continued) (Expressed in Macau Patacas) Liabilities 30 June 2014 Total Demand deposits 1,424,033,110 Call deposits 187,023,932 Fixed deposits 369,125,008 1,980,182,050 Foreign currency funding 908,754,819 Cheques and bills payable 2,920,492 Creditors 518,582,468 Other liabilities 417,011 1,430,674,790 Internal and adjusting accounts 98,183,532 Other reserves 10,701, ,885,056 Result from prior period 63,237,351 Result from current period (958,616) 62,278,735 Memorandum Items 3,582,020,631 Trade related contingencies 163,043,625 Forward foreign exchange purchases 1,290,221,561 Forward foreign exchange sales 1,290,061,268 4

5 Profit and loss account for the period ended 30 June 2014 (Expressed in Macau Patacas) 30 June 2014 Debit Amount Credit Amount Operating Expenses 1,793,000 Operating income 7,945,785 Salaries 2,346,873 Income from banking services 6,477,340 Contribution to defined contribution plan 162,236 Income from other banking services 849,861 Other staff costs 79,099 Third party supplies 107,830 Third party services 3,262,184 Other banking costs 2,271,594 Depreciation expenses 552,095 Operating profits 4,698,075 Total 15,272,986 Total 15,272,986 5

6 Result for the period ended 30 June 2014 (Expressed in Macau Patacas) 30 June 2014 Debit Amount Credit Amount Loss before tax - Operating profit 4,698,075 Profit tax provision 1,875,332 Reserve under AMCM rules 3,781,359 Result for current year under AMCM rules (958,616) Total 4,698,075 Total 4,698,075 6

7 Cash flow statement for the period ended 30 June 2014 (Expressed in Macau Patacas) Operating activities 30 June 2014 Profit before taxation 4,696,682 Adjustments for: Depreciation 812,193 Other non-cash items (1,328) 5,507, Decrease/(increase) in operating assets: Loans and advances to customers (429,820,405) Placements with banks and other financial institutions with original maturity beyond three months (194,084) Trading financial assets 13,924,803 Other assets 59,564,226 Increase/(decrease) in operating liabilities: (356,525,460) Deposits from customers (649,163,205) Deposits and balances from banks and other financial institutions 323,273,872 Trading financial liabilities (13,884,566) Other liabilities 469,040, ,266, Cash generated from/(used in) operations (221,751,129) Macau Complementary Tax paid - Net cash generated from/(used in) operating activities (221,751,129)

8 Cash flow statement for the period ended 30 June 2014 (continued) (Expressed in Macau Patacas) Investing activities 30 June 2014 Payment for purchase of fixed assets (208,361) Net cash used in investing activities (208,361) Financing activity Profit transferred to Head Office - Net cash used in financing activities Net increase/(decrease) in cash and cash equivalents (221,959,490) Cash and cash equivalents at 1 January ,519,545,775 Revaluation gain/(loss) on available-for-sale financial assets (2,791) Cash and cash equivalents at 30 June ,297,583,494 Cash flows from operating activities include: Interest received 7,259,029 Interest paid (3,860,626) 8

9 ADDITIONAL INFORMATION 1 Derivatives (a) Notional amounts of derivatives Derivatives refer to financial contracts whose value depends on the value of one or more underlying assets or indices. The notional amounts of these instruments indicate the volume of transactions outstanding and do not represent amounts at risk. The following is the notional amounts of derivatives entered into by the Branch: 30 June 2014 Currency derivatives 2,580,282,829 (b) Fair values of derivatives The fair values of the above derivatives of the Branch are as follows: Trading financial assets 30 June 2014 Currency derivatives 8,805,387 Trading financial liabilities Currency derivatives 8,645,640 The Branch did not enter into any bilateral netting arrangements on derivative transactions during the period and accordingly these amounts are shown on a gross basis. (c) Credit Risk Weighted Exposure The credit risk weighted amounts of exchange rate contracts and interest rate contracts, as calculated in accordance with Notice 013/93-AMCM, are as follows for the period ended 30 June 2014 for the Branch: Weighted Exposure 000 Interest Rate Risk - Exchange Rate Risk 25,803 Total 25,803 9

10 2 Material related party transactions In addition to the transactions and balances disclosed elsewhere in these financial statements, the Branch entered into the following material related party transactions. Transactions with group companies During the period, the Branch entered into transactions with related parties in the normal course of its banking business including lending, acceptance and placement of inter-bank deposits, correspondent banking transactions and off-balance sheet transactions. The transactions were priced at the relevant market rates at the time of each transaction. The amount of related-party transactions during the period and outstanding balances at the end of the period are set out below: Fellow subsidiaries and ultimate holding company Citibank, N.A. branches and Head Office 30 June June 2014 Interest income 621, ,844 Interest expense (1,131) (93,038) Operating income - - Operating expenses (1,325,526) (945,827) For the period ended 30 June 2014 (704,963) (134,021) Placement of deposits Opening balance 303,060,801 1,033,456,474 Ending balance 302,563, ,111,494 Average balance 302,812, ,783,984 Acceptance of deposits Opening balance 121,094, ,929,368 Ending balance 101,443, ,310,975 Average balance 111,269, ,620,172 Cash and short-term funds Opening balance 418,401, ,407,850 Ending balance 397,130,763 1,063,395,500 Average balance 407,766, ,901,675 10

11 2 Material related party transactions (continued) Transactions with group companies (continued) Other assets Fellow subsidiaries and ultimate holding company Citibank, N.A. branches and Head Office 30 June June 2014 Opening balance 404, ,544,150 Ending balance 41,804 82,771,663 Average balance 222,941 96,657,907 Other liabilities Opening balance - 1,333,746 Ending balance 22, ,284,984 Average balance 11, ,809,365 No impairment allowance was made in respect of the above loans to and placements with related parties. 11

12 3 Credit risk Distribution of loans and advances to customers by location over or equal 10% of total loans at 30 June (a)(i) Geographical analysis of loans and advances to customers Location Sector Gross loans and advances to customers Past due loans and advances to customers Impaired loans and advances to customers Individually assessed impairment allowance Collectively assessed impairment allowance Macau SAR Others 1,057,826, Hong Kong SAR Others 31,386, Total 1,089,212, The geographical analysis is classified based on the countries where the counterparties were incorporated, without taking into account the transfer of risk. In general, risk transfer applies when the exposure is guaranteed by a party situated in an area different from the counterparty. At 30 June 2014, the Branch did not recognise any impairment of assets since there was no objective evidence of impairment. (a)(ii) Industrial distribution of loans and advances to customers Industry Gross loans and advances to customers Past due loans and advances to customers Impaired loans and advances to customers Individually assessed impairment allowance Collectively assessed impairment allowance Manufacturing 1,082,173, Trade (wholesale and retail) 7,038, Total 1,089,212, The industrial distribution is based on the customer s main business activities. 12

13 3 Credit risk (continued) (b) Geographical analysis of debt securities and derivatives Debt investments (including AMCM Monetary Bills) and derivatives by geographical areas over or equal 10% of total credit exposure. Location Sector Debt investments Derivatives Macau SAR Others 174,998,377 5,930,472 Hong Kong SAR Banks - (5,770,725) Total 174,998, ,747 At 30 June 2014, the Branch only had available-for-sale investments in unlisted monetary bills issued by AMCM. And, at 30 June 2014, the Branch entered into back-to-back transactions with related party to square off the position of all derivative contracts of the Branch. The above amount represents the net fair value gain/(loss). 13

14 3 Credit risk (continued) (c) Maturity analysis on assets and liabilities The following maturity profile is based on the remaining period at the balance sheet date to the contractual maturity date. Assets 1 month Over 1 month Over 3 months Over 1 year Over Total On demand or less to 3 months to 1 year to 3 years 3 years Undated Cash and balances with financial institutions 1,699,740,214 1,699,740, Placements with banks and other financial institutions 424,675, ,315,304 18,529,859 1,830, Securities issued by Macao SAR Government and/or AMCM 175,000, ,000,000 20,000, Loans and advances to non-bank customers 1,089,212,513 62,296, ,603, ,741,553 51,571, Fixed assets 3,917, ,917,021 Others 189,475,415 94,794,855 18,045,825 66,788,433 9,846, Liabilities 3,582,020,631 1,856,831,113 1,152,964, ,059,845 63,248, ,917,021 Deposits from non-bank customers 1,980,182,050 1,611,057, ,994,998 34,299,705 1,830, Deposits from holding and associated companies 908,754, ,549, ,335,376 29,870, Others 620,117, ,466,869 17,354,418 66,397,383 9,780, ,117,946 3,509,054,424 2,451,073, ,684, ,567,088 11,611, ,117,946 Asset-liability gap 72,966,207 (594,242,241) 241,279, ,492,757 51,637, (200,925) As the deposits may mature without being withdrawn, the contractual maturity dates do not represent expected dates of future cash flows. 14

15 4 Currency risk The Branch s foreign currency positions mainly arise from foreign exchange dealing and other banking related operations. All foreign currency positions are managed by the Treasury Department within limits approved by the Regional Market Risk Management. Significant foreign exchange exposures, arising from trading, non-trading and structural positions are shown as follows: As at 30 June 2014 HK Dollars US Dollars China Yuan Total Spot assets 1,925,758, ,567,388 17,009,191 2,914,335,258 Spot liabilities (1,816,724,884) (976,301,155) (17,083,248) (2,810,109,287) Forward purchases - 647,202, ,019,545 1,290,221,561 Forward sales - (647,115,882) (642,945,387) (1,290,061,269) Net position 109,033,795 (4,647,633) ,386,263 5 Liquidity ratio The following table indicates the arithmetic mean of liquid assets held and liquidity ratios for the period ended 30 June 2014 for the Branch: 000 Minimum weekly amount of cash in hand required to be held 46,485 Average weekly amount of cash in hand 219,051 Specified liquid assets at the end of each month 2,382,665 Average ratio of specified liquid asset to total basic liabilities at the end of each month One-month liquidity ratio in the last week of each month Three-month liquidity ratio in the last week of each month 1,098.2 The liquid assets held and average liquidity ratio for the period are determined and calculated in accordance with the rules on cash in hand and minimum liquidity requirements as set out and defined in the AMCM Guideline Notice no. 006/93-AMCM. % 15

16 6. Other information Operating lease commitments At 30 June 2014, the total future minimum lease payments under non-cancellable operating leases for properties are payable as follows: Properties, leases expiring: - within 1 year 647,219 - after 1 year but within 5 years - Total 647,219 16

17 7. Ultimate parent / Board of directors The Branch is part of Citibank, N.A., which is incorporated and domiciled in the United States of America. Its ultimate holding company is considered to be Citigroup Inc., which is incorporated in the United States of America. Citigroup Board of Directors: Franz B. Humer Chairman, Retired Roche Holding Ltd Diana L. Taylor Vice Chair Solera Capital LLC Robert L. Ryan Chief Financial Officer, Retired Medtronic Inc Joan E. Spero Senior Research Scholar Columbia University School of International and Public Affairs Michael E. O Neill Chairman Citigroup Inc Gary M. Reiner Operating Partner General Atlantic LLC James S. Turley Former Chairman and CEO Ernst & Young Judith Rodin President Rockefeller Foundation William S. Thompson, Jr. Chief Executive Officer, Retired Pacific Investment Management Company (PIMCO) Duncan P. Hennes Co-Founder and Partner of Atrevida Partners, LLC Anthony M. Santomero Former President Federal Reserve Bank of Philadelphia Michael L. Corbat Chief Executive Officer Citigroup Inc Ernesto Zedillo Ponce de Leon Director, Center for the Study of Globalization; Professor in the Field of International Economics and Politics Yale University 17

18 8 (a) Citibank, N.A. (Worldwide Consolidation of Citibank, N.A. and its subsidiaries) Additional information (Figures in US$ millions) At 30 June 2014 Capital and capital adequacy Advanced Approaches Standardized Approach Tier 1 capital 129, ,980 Total capital 138, ,213 Tier 1 capital ratio 13.97% 13.84% Total capital ratio 14.89% 15.79% Stockholder s equity 150, ,607 Total risk weighted assets 930, ,831 The computation of capital ratios is consistent with the Final Basel III Rules, as adopted by the Federal Reserve Board through the Federal Reserve s implementing regulations. The capital ratios incorporate market risk on trading portfolios. Other financial information Total assets 1,367,845 Total liabilities 1,217,238 Total advances (net of allowances for loan losses) 589,911 Total deposits (including those from banks) 976,701 Income from continuing operations before income taxes 9,495 18

19 8 (b) Citigroup Inc. (the ultimate holding company of Citibank, N.A.) Additional information (Figures in US$ millions) At 30 June 2014 Capital and capital adequacy Tier 1 capital 164,289 Total capital 182,483 Tier 1 capital ratio 13.00% Total capital ratio 14.44% Stockholder s equity 211,362 Total risk weighted assets 1,264,136 The computation of capital ratios is consistent with the Final Basel III Rules, as adopted by the Federal Reserve Board through the Federal Reserve s implementing regulations. The capital ratios incorporate market risk on trading portfolios. Other financial information Total assets 1,909,715 Total liabilities 1,696,616 Total advances (net of allowances for loan losses) 649,614 Total deposits (including those from banks) 965,725 Income from continuing operations before income taxes 8,092 19