CITI ISLAMIC INVESTMENT BANK EC 30 JUNE 2013 CONDENSED INTERIM FINANCIAL INFORMATION

Transcription

1 CITI ISLAMIC INVESTMENT BANK EC 30 JUNE 2013 CONDENSED INTERIM FINANCIAL INFORMATION

2 Citi Islamic Investment Bank EC CONDENSED INTERIM FINANCIAL INFORMATION for the six months ended 30 June 2013 CONTENTS Page Independent auditors report on review of condensed interim financial information 1 Condensed interim financial information Condensed statement of financial position 2 Condensed income statement 3 Condensed statement of changes in equity 4 Condensed statement of cash flows 5 Condensed statement of changes in restricted investment accounts 6 Notes to the condensed interim financial information 7-9

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6 Citi Islamic Investment Bank EC 4 CONDENSED STATEMENT OF CHANGES IN EQUITY for the six months ended 30 June 2013 US$ 000's 2013 (reviewed) Share Capital Retained earnings Statutory reserve Total As at 1 January ,000 4,865 2,681 17,546 Profit for the period - 1,044-1,044 Dividends paid - (4,865) - (4,865) As at 30 June ,000 1,044 2,681 13, (reviewed) Share Capital Retained earnings Statutory reserve Total As at 1 January ,000 3,708 2,141 15,849 Profit for the period - 2,089-2,089 Dividends paid - (3,708) - (3,708) As at 30 June ,000 2,089 2,141 14,230 The condensed interim financial information consist of pages 2 to 9.

7 Citi Islamic Investment Bank EC 5 CONDENSED STATEMENT OF CASH FLOWS for the six months ended 30 June 2013 US$ 000's Six months period ended 30 June June 2012 (reviewed) (reviewed) OPERATING ACTIVITIES Receipt of advisory income Receipt of income from murabaha contracts Receipt of income from restricted investment accounts Payment to employees and suppliers (498) (410) Management fees paid (50) (51) Cash flows from operating activities FINANCING ACTIVITIES Dividends paid (4,865) (3,708) Cash flows utilised in financing activities (4,865) (3,708) Net decrease in cash and cash equivalents (4,580) (3,357) Cash and cash equivalents at 1 January 17,725 15,950 Cash and cash equivalents at 30 June 13,145 12,593 Cash and cash equivalents comprise: Bank balances Murabaha receivables , ,331 13,145 12,593 The condensed interim financial information consist of pages 2 to 9.

8 Citi Islamic Investment Bank EC 6 CONDENSED STATEMENT OF CHANGES IN RESTRICTED INVESTMENT ACCOUNTS for the six months ended 30 June 2013 US$ 000's Deposit Murabaha Six months period ended 30 June 30 June (reviewed) (reviewed) As at 1 January 542, ,606 Net deposits 130, ,476 Gross income 2,095 1,993 Bank s income as an agent (97) (132) As at 30 June 675, ,943 The Bank acts as an agent and invests the funds only in Commodity Murabaha transactions on behalf of its customers. The condensed interim financial information consist of pages 2 to 9.

9 Citi Islamic Investment Bank EC 7 NOTES TO THE INTERIM FINANCIAL INFORMATION for the six months ended 30 June 2012 US$ 000's 1 Reporting entity Citi Islamic Investment Bank EC (the Bank ) was incorporated in the Kingdom of Bahrain as an exempt closed shareholding company on 29 June The Bank operates as Islamic Wholesale Investment Bank under a licence granted by the Central Bank of Bahrain. 2 Basis of preparation and presentation The condensed interim financial information has been prepared in accordance with Financial Accounting Standards ( FAS ) issued by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI). In line with the requirement of AAOIFI and the CBB Rule Book, for matters that are not covered by AAOIFI standards, the Bank uses guidance from the relevant International Financial Reporting Standard. Accordingly, the interim financial information has been presented in condensed form in accordance with the guidance provided by International Accounting Standard 34 Interim Financial Reporting. The condensed interim financial information does not include all of the information required for full annual financial statements and should be read in conjunction with the audited financial statements of the Bank for the year ended 31 December However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Bank s financial position and performance since the last annual consolidated financial statements as at and for the year ended 31 December Significant accounting policies The accounting policies and methods of computation applied by the Bank in the preparation of the condensed interim financial information are the same as those used in the preparation of the audited financial statements for the year ended 31 December The Bank has adopted the revised IAS 34 effective 1 January 2013 which requires certain additional disclosures relating to fair value measurement in the interim financial information, which has been disclosed in note Financial risk management The Bank s financial risk management objectives and policies are consistent with that disclosed in the audited financial statements and as at and for the year ended 31 December Judgements and estimates Preparation of condensed interim financial information requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. The significant judgements made by management in applying the Bank s accounting policies and the key sources of estimation uncertainty were same as applied to the financial statements as at and for the year ended 31 December The condensed interim financial information has been reviewed not audited. The comparatives for the condensed statement of financial position have been extracted from the audited financial statements for the year ended 31 December 2012 and comparatives for the condensed statements of income, changes in equity, cash flows, and changes in restricted investment accounts have been extracted from the reviewed 30 June 2012 condensed interim financial information. 7 Due to the effect of cyclical variations, the results reported in the condensed interim financial information may not represent a proportionate share of the overall annual results.

10 Citi Islamic Investment Bank EC 8 NOTES TO THE INTERIM FINANCIAL INFORMATION for the six months ended 30 June 2012 US$ 000's 8 Appropriations of profits if any, are made only at the year end. 9 In their annual general meeting dated 14 March 2013, the shareholders approved the payment of dividend of USD 4,865 thousands. 10 RELATED PARTY TRANSACTIONS As at 30 June 2013 As at 31 December 2012 Assets Murabaha receivables 12,933 16,539 Bank balances 212 1,186 Other assets Other payables Six months period ended 30 June June 2012 Income Income from murabaha contracts Income from advisory services 1,302 2,301 Expense Head office charges Management fees Sharia board expenses 11 Financial instruments Fair values Fair value is an amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm s length transaction. Underlying the definition of fair value is a presumption that an enterprise is a going concern without any intention or need to liquidate, curtail materially the scale of its operations or undertake a transaction on adverse terms. None of the financial assets and liabilities are being carried at fair value. Set out below is a comparison of the carrying amounts and fair values of financial instruments:

11 Citi Islamic Investment Bank EC 9 NOTES TO THE INTERIM FINANCIAL INFORMATION for the six month ended 30 June 2013 USD 000 s 11 Financial instruments (continued) Carrying Fair value 30 June 2013 amount BD 000 s BD 000 s Financial assets: Bank balances Murabaha receivables 12,933 12,933 Other assets ,893 13,893 Financial liabilities: Payables and other accrued expenses December 2012 Carrying Fair value amount BD 000 s BD 000 s Financial assets: Bank balances 1,186 1,186 Murabaha receivables 16,539 16,539 Other assets ,741 17,741 Financial liabilities: Payables and other accrued expenses The estimated fair values of the financial assets and liabilities are not significantly different from their book values as the items are primarily short-term in nature.