ENERGY COMMERCIAL BANK LIMITED UNAUDITED FINANCIAL STATEMENT FOR THE PERIOD ENDED 30 TH JUNE,2018

Transcription

1 ENERGY COMMERCIAL BANK LIMITED UNAUDITED FINANCIAL STATEMENT FOR THE PERIOD ENDED 30 TH JUNE,2018

2 ENERGY COMMERCIAL BANK LIMITED UNAUDITED CONSOLIDATED INCOME STATEMENT AND OTHER COMPRENHESIVE INCOME FOR THE PERIOD ENDED 30 TH JUNE,2018 GH BANK GROUP BANK GROUP Interest income 20,310,837 17,023,579 23,352,706 19,520,207 Interest Expense (10,535,419) (10,545,604) (14,865,780) (14,865,780) Net Interest Income 9,775,418 6,477,975 8,486,926 4,654,427 Fee and commision Income 3,414,509 3,414,509 2,499,270 2,499,270 Fee and commission expense (38,949) (38,949) (22,435) (22,435) Net Fee and commission expense 3,375,560 3,375,560 2,476,835 2,476,835 Net trading income 3,245,638 3,245,638 2,439,857 2,439,857 Other operating income 1,802,084 1,802, , ,589 Other Income ,047,722 5,047,722 2,929,446 2,929,446 Operating Income 18,198,699 14,901,256 13,893,207 10,060,708 Expenses Net impairment loss on financial asset (2,965,193) (2,965,193) (990,000) (990,000) Personnel expenses (5,927,936) (5,927,936) (4,098,442) (4,098,442) Depreciation and amortisation (827,224) (827,224) (1,044,441) (1,044,441) Other expenses (7,070,950) (7,413,331) (7,479,993) (7,631,868) Finance Cost Total Expenses (16,791,303) (17,133,684) (13,612,876) (13,764,751) Profit before income tax 1,407,396 (2,232,428) 280,331 (3,704,043) Income Taxes (422,219) - (84,099) - Profit for the year 985,177 (2,232,428) 196,232 (3,704,043) Other comprehensive income, net of income tax Items that may be reclassified subsequently to profit & loss: Available-for-sale fair valuation movement Recycled during the year Total comprehensive income 985,177 (2,232,428) 196,232 (3,704,043) Earning Per Share (0.037) (0.062)

3 ENERGY COMMERCIAL BANK LIMITED UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 TH JUNE,2018 GH BANK GROUP BANK GROUP Assets Cash and cash equivalents 122,148, ,311, ,678, ,686,199 Non-Pledged Trading assets 30,090,031 30,090,031 71,051,561 98,257,272 Pledged Trading assets 32,890,000 32,890, Loans and advances to customers 90,371,220 62,952, ,558,354 79,682,818 Investment securities - 28,766, Investments in Energy Investments 9,750,000-9,750,000 - Current tax asset 3,864,455 3,864,455 2,537,766 2,537,766 Deferred tax asset 11,092 15, , ,956 Intangible assets 381, , , ,410 Other assets 68,270,123 89,245,844 68,325,088 84,270,118 Property, Plant and equipment 5,418,803 5,468,709 5,434,592 5,504,049 Total Assets 363,195, ,986, ,896, ,503,587 Liabilities Deposits from customers 215,033, ,033, ,856, ,856,840 Borrowings 75,260,788 84,260,788 56,513,436 65,513,436 Deferred tax liabilities Other liabilities 8,396,976 14,035,168 10,711,340 10,980,964 Shareholder's Equity 298,691, ,329, ,081, ,351,240 Stated capital 60,000,000 60,000,000 60,000,000 60,000,000 Income surplus (4,954,787) (15,722,249) 1,818,421 (5,764,407) Revaluation reserve Statutory reserve 9,561,565 9,561,565 9,139,251 9,139,251 Other reserves (102,284) 8,817,717 (142,497) 8,777,504 Shareholder's Equity 64,504,494 62,657,033 70,815,174 72,152,347 Total Liabilities & Shareholder's Equity 363,195, ,986, ,896, ,503,587

4 ENERGY COMMERCIAL BANK LTD Statement of Cashflow 30-Jun-2018 GH BANK GROUP BANK GROUP Cash Flows from Operating Activities 30-Jun Jun Jun Jun-17 Profit before Income tax 1,407,396 (2,232,428) 280,331 (3,704,043) Adjusted for : Depreciation and amortisation 827, ,676 1,044,441 1,056,543 Impairment Loss 2,965,193 2,965, , ,000 Net Interest Income (9,775,418) (9,769,872) (8,486,926) (8,489,353) (4,575,604) (8,202,430) (6,172,153) (10,146,852) Changes in Operating Assets & Liabilities Change in Trading Assets 8,071,530 8,065,694 (29,423,006.94) (29,423,006.94) Change in Loans and Advances to Customers 12,187,134 12,187,134 (37,720,403) (37,720,403) Change in Other Assets (1,271,725) (2,000,225) (26,336,366) (27,679,321) Change in Deferred Tax 124, , Change in Amount Due to Other Banks 18,747,352 18,747,352 17,803,476 17,803,476 Change in Customer Deposits (39,823,373) (39,823,373) 85,856,866 85,856,866 Change in Other Liabilities (2,314,363) (1,857,007) 2,766,833 2,858,205 Income tax paid (2,065,839) (2,065,839) (225,000) (225,000) Net Cash generated from /(Used in) operations (10,920,208) (14,824,014) 6,550,246 1,323,964 Cash flows from investing activities Acquisition of Property, Plant & equipment (1,624,043) (1,624,043) (1,982,295) (1,982,295) Acquisition of Intangible Assets (130,199) (130,199) (37,776) (37,776) Net cash flow used for investing activities (1,754,242) (1,754,242) (2,020,071) (2,020,071) Cash flow from financing activities Dividends Paid - - (300,000) (300,000) Net cash flow from financing activities - - (300,000) (300,000) Net increase (Decrease) in Cash & Cash Equivalents (10,529,950) (16,578,256) 4,230,175 (996,107) Cash & Cash Equivalents at the begining of the Year 132,678, ,889, ,331, ,682,306 Cash and Cash Equivalents at end of period 122,148, ,311, ,678, ,686,199

5 ENERGY COMMERCIAL BANK Statement of Changes In Equity 30-Jun-2018 GHC Stated Capital Credit Risk Statutory Reserve Other Reserve Income Suplus Total Equity Balalce as at 1 Jan, ,000,000 3,127,859 9,561,565 (142,497) (1,083,356) 71,463,571 Profit for the year Unaudited) , ,177 period , ,177 Transfer to credit reserve - (3,127,859) - - 3,127,859 - Transfer to other reserve ,213 (40,213) - IFRS 9 Impact on opening balance (7,944,254) (7,944,254) owners - (3,127,859) - 40,213 (4,856,608) (7,944,254) Balance as 30 June ,000,000-9,561,565 (102,284) (4,954,787) 64,504,494 Balalce as at 1 Jan, ,000,000 1,603,494 8,834,179 (231,411) 13,624 70,219,886 Profit for the year Audited) , ,057 Profit for the year Unaudited) , ,232 period , ,289 Transfer to credit reserve - (1,603,494) - - 1,603,494 - Transfer to statutory reserve ,072 - (305,072) - Transfer to other reserve ,913 (88,913) - owners - (1,603,494) 305,072 88,913 1,209,508 - Balance as 30 June ,000,000-9,139,251 (142,497) 1,818,421 70,815,174

6 GROUP Statement of Changes In Equity 30-Jun-2018 GHC Stated Capital Credit Risk Statutory Reserve Other Reserve Income Suplus Total Equity Balalce as at 1 Jan, ,000,000 3,127,859 9,561,565 8,777,504 (8,210,994) 73,255,934 Profit for the year Unaudited) (2,654,647) (2,654,647) period (2,654,647) (2,654,647) Transfer to credit reserve - (3,127,859) - - 3,127,859 - Transfer to other reserve ,213 (40,213) - IFRS 9 Impact on opening balance (7,944,254) (7,944,254) owners - (3,127,859) - 40,213 (4,856,608) (7,944,254) Balance as 30 June ,000,000-9,561,565 8,817,717 (15,722,249) 62,657,033 Balalce as at 1 Jan, ,000,000 1,603,494 8,834,179 8,688,590 (3,584,830) 75,541,433 Profit for the year Audited) , ,057 Profit for the year Unaudited) (3,788,142) (3,788,142) period (3,389,085) (3,389,085) Transfer to credit reserve - (1,603,494) - - 1,603,494 - Transfer to statutory reserve ,072 - (305,072) - Transfer to other reserve ,913 (88,913) - owners - (1,603,494) 305,072 88,913 1,209,508 - Balance as 30 June ,000,000-9,139,251 8,777,504 (5,764,407) 72,152,347

7 Disclosures 1The Quarterly unaudited financial statements have been prepared in accordance with International Financial. ReportingStandards (IFRSs) as issued by the International Accounting Standards Board (IASB) and adopted by the Institute of Chartered Accountants, Ghana (ICAG). Quantitative disclosures June 2018 June 2017 Capital Adequacy Ratio 20.55% 26.86% Non-performing Loan ratio 40.23% 38.09% 1. Qualitative disclosures The bank is exposed to the following risks from its use of financial instruments and from operations: Credit Risk- The Bank takes on exposure to credit risk, which is the risk that a counterparty will cause a financial loss to the Bank by failing to pay amounts in full when due. Credit risk is one of the most important risks for the Bank s business: management therefore carefully manages the exposure to credit risk. Credit exposures arise principally in lending and investment activities. There is also credit risk in off- balance sheet financial instruments. Credit risk management and control is centralized in the credit committee, whose membership comprises executive management and head of risk, which reports regularly to the Board of Directors. Operational risk: is the risk of direct or indirect loss arising from a wide variety of causes associated with the Group s processes, personnel, technology and infrastructure, and from external factors other than credit, market and liquidity risks such as those arising from legal and regulatory requirements and generally accepted standards of corporate behaviour. The primary responsibility for the development and implementation of controls to address operational risk is assigned to senior management within each business unit. This risk is manage through frequent reviews of processes, procedures and systems and staff performance to identify lapses and implement corrective measures. Market risk: is the risk that changes in market prices, which include currency exchange rates, interest rates, commodity prices and equity prices, will affect the fair value or future cash flows of a financial instrument. Market risk arises from open positions in interest rates and foreign currencies, both of which are exposed to general and specific market movements and changes in the level of volatility. The objective of market risk management is to manage and control market risk exposures within acceptable limits, while optimising the return on risk. Overall responsibility for managing market risk rests with the Assets and Liabilities Committee (ALCO). The Risk Management Department is responsible for the development of detailed risk management policies (subject to review and approval by ALCO and the board) and for the day to day implementation of those policies. Liquidity Risk is the risk that the Bank is unable to meet its payment obligations associated with its financial liabilities as they fall due and to replace funds when they are withdrawn. The consequence may be the failure to meet obligations to repay depositors and fulfil commitments to lend. Liquidity management within the Bank has several strands. The first is day-to-day funding, managed by monitoring future cash flows to ensure that requirements can be met. The second is maintaining a portfolio of highly marketable assets that can easily be liquidated as protection against any unforeseen interruption to cash flow. Finally, the ability to monitor, manage and control intra-day liquidity in real time is recognised by the Bank as a mission critical process: any failure to meet specific intra-day commitments would be a public event and may have an immediate impact on the Bank s reputation. Monitoring and reporting take the form of cash flow measurement and projections for the next day, week and month as these are key periods for liquidity management. Treasury develops and implements the process for submitting the bank s projected cash flows to stress scenarios. The output of stress testing informs the Bank s contingency funding plan. 2. Defaults in statutory liquidity and accompanying sanctions June 2018 June 2017 Default in statutory liquidity (times) Nil Nil Default in statutory liquidity sanction (GHS 000) Nil Nil Signed Barrister Dr. Jimoh Ibrahim (CFR) Board Chairman Signed Christiana Olaoye Managing Director/CEO