Deutsche Bank (Mauritius) Limited

Transcription

1 Deutsche Bank (Mauritius) Limited Interim Unaudited Financial Statement

2 Table of Contents 1. Management Review Statement of comprehensive income 4 3. Statement of financial position 5 4. Statement of changes in equity 6 5. Statement of cash flow 7 6. Notes to the financial statements 8-12 Interim Unaudited Financial Statements - 0 -

3 Management Review for the nine months ended 30 The interim abridged financial statements of the Bank for the nine months ended 30 are on pages 4 to 12. Financial overview The Bank s net profit after tax for the nine months ended 30 was 1,920,881 as compared to 1,450,994 for the nine months ended 30. This represents an increase of 32 % over the last quarter. The main reason is due to liquidity premium earned this year and good FX income. Risk profile The Bank maintained a prudent risk profile during the quarter. Interest rate risks as well as the maturity gap were kept within the limits authorised by the Deutsche Bank Group and by the Board of Directors. The Bank s credit risk profile continues to be sound. Revenue Growth Compared to, there was a 34 % decrease in net interest income. This drop is due to a drop in the loan book and a squeeze in margins. Cost control Overall, expenses decreased by 12% compared to. Credit quality mainly offers credit facilities to Indian Corporates. The Bank s policy is to require suitable collateral to be provided by customers prior to the disbursement of the approved loans. The agreements specify monetary limits to the Bank s obligations. Collateral for loans, guarantees and letters of credit is usually in the form of Deutsche Bank Guarantee. The Bank s policy is governed by the Guideline in Credit Concentration limits issued by the Bank of Mauritius. Interim Unaudited Financial Statements - 1 -

4 Management Review for the nine months ended 30 (continued) Credit quality (Continued) The table below shows a breakdown of credit concentration by sector: Sectors: 30 Agriculture & fishing 11,312,977 Manufacturing 88,089,893 Traders 43,239,101 Other 14,352, ,994,828 Capital The Bank manages its capital base to maintain capital ratio and to support business growth. The capital adequacy ratio of the Bank as at 30 stood at % ( %). The Bank has ordinary share capital of 7,800,330. s capital is divided into two tiers: Tier 1 capital comprises of shareholders funds Tier 2 capital comprises of general provisions Liquidity Management The Bank maintains a diversified funding base and is able to call upon funding from members of the Deutsche Bank Group if required. Interim Unaudited Financial Statements - 2 -

5 Management Review for the nine months ended 30 (continued) Forward-Looking Statements This Interim Financial Statement contains forward-looking statements. Forward-looking statements are statements that are not historical facts, including statements about our beliefs and expectations. Any statement in this Interim Financial Statement that states our intentions, beliefs, expectations or predictions (and the assumptions underlying them) is a forward-looking statement. These statements are based on plans, estimates and projections as they are currently available to the management of. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement.such factors include the conditions in the financials, the reliability of our risk management policies, procedures and methods. Michael J Bird Chief Country Officer Date: 17 November Interim Unaudited Financial Statements - 3 -

6 Unaudited statement of comprehensive income for the quarter ended 30 Three Months quarter ended 30 Three Months quarter ended 30 Nine months ended 30 Nine months ended 30 Year ended Interest income 603, ,193 1,598,545 3,154,397 3,775,455 Interest expense (107,007) (350,390) (362,756) (1,293,954) (1,505,679) Net interest income 496, ,803 1,235,789 1,860,443 2,269,776 Fee and commission income 263, , , ,146 1,103,833 Fee and commission expense (38,269) (42,700) (114,391) (126,863) (167,555) Net fee and commission income 225, , , , ,278 Net trading income 364, , , , ,182 Other operating income 744, ,401 3,165,864 2,698,266 4,319,229 Operating income 1,109,364 1,066,639 3,800,712 3,159,539 4,893,411 1,831,340 1,887,956 5,720,096 5,743,265 8,099,465 Personnel expenses 807, ,103 2,350,901 2,353,090 3,317,875 Operating lease expenses 60,365 68, , , ,725 Depreciation 125, , , , ,067 Other expenses 104, , , ,507 1,873,817 1,098,061 1,517,752 3,706,515 4,207,642 6,030,484 Profit before tax 733, ,204 2,013,581 1,535,623 2,068,981 Income tax expense (3,520) (30,129) (92,700) (84,629) (105,829) Total comprehensive income for the period (all attributable to equity shareholders) 729, ,075 1,920,881 1,450,994 1,963,152 4 Interim Unaudited Financial Statements

7 Unaudited Statement of financial position as at 30 Assets: Cash and cash equivalents 867,163, ,232, ,070,940 Loans and advances to banks 52,406, Loans and advances to customers 156,994, ,997, ,952,423 Property and equipment 1,769,305 2,271,103 2,153,861 Other assets 6,441,385 6,250,447 7,659,241 Total assets 1,084,775, ,751, ,836,465 Liabilities: Deposits from customers 1,045,381, ,631, ,198,360 Other borrowed funds 504, ,421,657 43,367,183 Current tax liabilities 35,791 39,084 47,299 Other liabilities 1,746,235 2,384,778 2,036,848 Total liabilities 1,047,667, ,476, ,649,690 Equity: Share capital 7,800,330 7,800,330 7,800,330 Revenue reserves 19,681,029 22,367,961 17,440,572 Other reserves 9,626,297 10,106,326 9,945,873 Total equity attributable to equity holders of the Bank 37,107,656 40,274,617 35,186,775 Total liabilities and equity 1,084,775, ,751, ,836,465 5 Interim Unaudited Financial Statements

8 Unaudited Statement of changes in equity for the nine months ended 30 Share Capital Revenue reserve General Banking reserve Statutory reserve Total Balance at 01 January 7,800,330 17,440,572 1,889,524 8,056,349 35,186,775 Net profit for the quarter - 1,920, ,920,881 Transfer from general banking reserve - 319,576 (319,576) - Balance at 30 7,800,330 19,681,029 1,569,948 8,056,349 37,107,656 Balance at 01 January 7,800,330 17,885,026 5,081,918 8,056,349 38,823,623 Net profit for the quarter - 1,450, ,450,994 Transfer from general banking reserve - 3,031,941 (3,031,941) - - Balance at 30 7,800,330 22,367,961 2,049,977 8,056,349 40,274,617 Interim Unaudited Financial Statements 6

9 Unaudited abridged statement of cash flow for the quarter ended 30 Profit before income tax 2,013,581 1,535,623 2,068,981 Cash flows from operating activities: Income tax paid (75,809) (101,591) (114,574) Depreciation 369, , ,067 Profit on sale of property and equipment - - 2,971 Write off of property and equipment 36,126-5,576 2,343,652 1,872,113 2,559,021 Adjustments for net change in assets and liabilities: Change in loans and advances to banks (52,406,129) - - Change in loans and advances to customers 31,957, ,194, ,239,378 Change in deposits from customers 284,182,854 (60,774,212) (49,207,003) Change in other assets 1,217,855 (779,149) (2,187,944) Change in other borrowed funds (1,007,015) (113,702,629) (156,062,797) Change in other liabilities (319,011) (44,970) (392,899) Net cash from/ (used in) operating activities 265,969, ,765, ,947,756 Cash flows from investing activities: Acquisition of property and equipment (21,324) (38,645) (84,967) Proceeds from sale of property and equipment - - (2,971) Net cash used in investing activities (21,324) (38,645) (87,938) Cash flows from financing activities: Dividend paid - - (5,600,000) Net cash used in financing activities - - (5,600,000) Net increase / (decrease) in cash and cash equivalents 265,948, ,726, ,259,818 Cash and cash equivalents at beginning of year 600,710, ,450, ,450,954 Cash and cash equivalents at end of year 866,659, ,177, ,710,772 Interim Unaudited Financial Statements 7

10 Notes to interim financial statements for the nine months ended 30 Accounting policies (a) Statement of compliance The interim financial statements are unaudited and have been prepared in accordance with International Accounting Standards (IAS) 34 Interim Financial Reporting and with the Bank of Mauritius guideline on Public Disclosure of Information. (b) Basis of preparation The financial statements are presented in and are prepared using the same accounting policies as those adopted in the financial statements for the year ended 31. Taxation The taxation charge for the quarter is based on the estimated effective tax rate for the full year. Cash and cash equivalents Cash and cash equivalents Cash in hand - 1,677 1,696 Balances with local banks 117, ,144 65,432 Balances with banks abroad 20,075, ,618,024 17,728,461 Money market placements 846,970, ,448, ,275,351 Total 867,163, ,232, ,070,940 Cash and cash equivalents as per statement of cash flows Cash and cash equivalent as above 867,163, ,232, ,070,940 Less: other borrowed funds less than 3 months (504,635) (73,054,474) (42,360,168) Total 866,659, ,177, ,710,772 Loans and advances to banks Loans and advances to banks Outside Mauritius 52,406, Less; specific allowance for impairment Total 52,406, Interim Unaudited Financial Statements 8

11 Notes to interim financial statements (continued) Loans and advances to banks (continued) Remaining term to maturity Loans and advances to banks remaining terms to maturity Over 3 months and up to 6 months Loans and advances to customers Loans and advances to customers Outside Mauritius 156,994, ,997, ,952,423 Less; specific allowance for impairment - Total 156,994, ,997, ,952,423 Remaining terms to maturity Loans and advances to customers remaining terms to maturity Up to three months 83,057, ,077, ,522,487 Over 3 months and up to 6 months 71,124,642 62,912,769 45,990,933 Over 6 months and up to 12 months 2,813,000 1,007, ,003 Total 156,994, ,997, ,952,423 Other assets Other assets Mandatory balances with Central Banks 343, , ,138 Accrued interest receivable 446, , ,353 Other 5,651,914 4,786,161 6,881,750 Total 6,441,385 6,250,447 7,659,241 Interim Unaudited Financial Statements 9

12 Notes to interim financial statements (continued) Deposits from customers Deposits from customers Retail customers: Current accounts - 30,607 - Time deposits - Up to 3 months Corporate customers: Current accounts 677,425, ,209, ,449,259 Time deposits Up to 3 months 365,549,473 36,391, ,749,101 Over 6 months and up to 12 months 2,406,131 - Total 1,045,381, ,631, ,198,360 Other borrowed funds Other borrowed funds Borrowings from banks abroad 504, ,421,657 43,367,183 Up to 3 months 504,635 73,054,474 42,360,168 Over 3 months and up to 6 months - 42,360,168 1,007,015 Over 6 months and up to 12 months - 1,007,015 - Total 504, ,421,657 43,367,183 Other liabilities Other liabilities Accrued interest payable 125, , ,452 Accrued expenses 982,834 1,263,143 1,270,103 Balances in clearing 333,842 46,793 - Other 303, , ,293 Total 1,746,235 2,384,778 2,036,848 Interim Unaudited Financial Statements 10

13 Notes to interim financial statements (continued) Shareholders equity Share capital Authorised issued and fully paid 5,000,000 ordinary shares of no par value 7,800,330 7,800,330 7,800,330 The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Bank. All shares rank equally with regard to the Bank s residual assets. Contingent liability DBML is currently reviewing its historic arrangements in respect of inter-company invoicing, it is not possible to determine at this stage what if any adjustments may be required as a result of this review. Related Party Transactions The Bank has a related party relationship with Deutsche Bank AG, the ultimate holding Company, and its group companies. The Bank also has a related party relationship with its directors. The Bank has entered into a number of banking transactions with its related parties in the normal course of business. These include placements or loans to/from banks, deposits as well as other normal banking transactions. These transactions were carried out on commercial terms and at market rates. As at 30, no specific charge for bad and doubtful debts had to be made on these balances (30 nil provision). The Bank, as the main operating entity of Deutsche Bank in Mauritius, provides certain central support functions to other Deutsche Bank entities incorporated in Mauritius. The costs associated with any such support are charged out by the Bank on a cost basis in line with the policy of the Group. The net volumes of related party transactions, outstanding balances, the relating expenses and income for the quarter ended 30 are as follows: Interim Unaudited Financial Statements 11

14 Notes to interim financial statements (continued) Related Party Transactions (continued) (All are under Other related parties classification as per IAS 24) Balances and placements with banks: At beginning of the period 671,028, ,286,412 Net increase/(decrease) 248,417,763 73,770,502 At end of the period 919,446, ,056,914 Interest income earned 1,058, ,611 Deposits: At beginning of the period 199,627, ,907,313 Net increase/(decrease) 39,378,872 7,186,054 At end of the period 239,006, ,093,367 Borrowings: At beginning of the period 545, ,930,893 Net increase/(decrease) (40,697) (169,509,236) At end of the period 504, ,421,657 Interest expense 287,378 1,093,828 Other revenues operating income 3,165,864 2,698,266 Other expenses fee and commission expense 121, ,168 Other expenses - overhead recharges (27,128) - Guarantees received from related companies 156,994, ,997,654 Amount payable to related companies - 69,044 Amount receivable from related companies 5,016,381 4,278,316 All related party balances and placements are arm s length transactions and there is no specific provisions recognised in respect of these assets. Transactions with directors Total remuneration of the directors for the period amounted to 298,200 (period ended ,996). Interim Unaudited Financial Statements 12