Com.int.bk.regs Regulatory News (CBKD)

Notes

Sep. 30, 2019

Dec. 31, 2018

EGP Thousands

EGP Thousands

Assets

Cash and balances with central bank

15

27,205,020

20,058,974

Due from banks

16

25,599,127

46,518,892

Loans and advances to banks, net

18

642,973

67,703

Loans and advances to customers, net

19

109,994,085

106,309,205

Derivative financial instruments

20

291,686

52,289

Investments

- Financial investments securities

21

198,155,796

157,585,611

- Investments in associates

22

106,849

106,558

Other assets

23

9,507,964

9,563,018

Intangible assets

40

141,059

238,715

Deferred tax assets (Liabilities)

31

492,460

308,370

Property, plant and equipment

24

2,015,038

1,651,875

Total assets

374,152,057

342,461,210

Liabilities and equity

Liabilities

Due to banks

25

1,828,108

7,259,819

Due to customers

26

307,845,505

285,296,869

Derivative financial instruments

20

302,812

132,858

Current tax liabilities

3,283,731

3,625,579

Other liabilities

28

8,364,374

6,501,553

Other loans

27

3,400,294

3,721,529

Provisions

29

1,479,338

1,694,607

Total liabilities

326,504,162

308,232,814

Equity

Issued and paid up capital

30

14,585,408

11,668,326

Reserves

33

23,333,248

12,184,667

Reserve for employee stock ownership plan (ESOP)

33

1,110,317

738,320

Retained earnings *

33

8,618,922

9,637,083

Total equity

47,647,895

34,228,396

Total liabilities and equity

374,152,057

342,461,210

The accompanying notes are an integral part of these financial statements.

(Review report attached)

*Including net profit for the current period

Hisham Ezz Al-Arab

Chairman and Managing Director

Consolidated income statement for the period ended September 30, 2019

Notes

Sep. 30, 2019

Sep. 30, 2018

EGP Thousands

EGP Thousands

Net profit for the period

8,537,594

7,019,141

Reserve for financial assets at fair value through OCI

5,199,526

(3,313,259)

Cumulative foreign currencies translation differences

3,747

-

Total other comprehensive income for the period

13,740,867

3,705,882

Consolidated cash flow for the period ended September 30, 2019

Notes

Sep. 30, 2019

Sep. 30, 2018

EGP Thousands

EGP Thousands

Cash flow from operating activities

Profit before income tax from continued operations

11,773,726

9,411,654

Adjustments to reconcile net profit to net cash provided by operating activities

Fixed assets depreciation

24

425,637

279,798

Impairment charge for credit losses

12

1,256,000

2,803,402

Other provisions charges

29

12,494

90,731

Provisions charges - due from banks

12

23,161

-

Provisions charges - financial investments

12

(71,846)

-

Impairment charge for other assets

23

83,213

242,481

Exchange revaluation differences for financial assets at fair value through OCI

21

1,303,741

(103,827)

Intangible assets amortization

40

97,656

97,656

Impairment charge financial assets at fair value through OCI

21

45,664

19,721

Exchange differences in financial investments in subsidiary

22

4,104

-

Utilization of other provisions

29

(27,733)

(969)

Other provisions no longer used

29

(96,499)

(45,079)

Exchange differences of other provisions

29

(103,531)

2,776

Profits from selling property, plant and equipment

11

(1,439)

(1,045)

(Profits) losses from selling financial investments

21

(310,329)

(421,874)

Shares based payments

371,997

324,510

Bank's share in the profits of associates

(291)

(16,346)

Operating profits before changes in operating assets and liabilities

14,785,725

12,683,589

Net decrease (increase) in assets and liabilities

Due from banks

16

(13,052,086)

(42,520,192)

Treasury bills and other governmental notes

41

4,974,205

6,405,425

Financial assets at fair value through P&L

21

2,252,280

3,182,127

Derivative financial instruments

20

(67,282)

(42,783)

Loans and advances to banks and customers

18 - 19

(4,796,325)

(18,806,624)

Other assets

42

247,459

(3,368,677)

Due to banks

25

(5,431,711)

(513,151)

Due to customers

26

22,548,279

29,858,162

Income tax obligations paid

(3,625,579)

(2,778,973)

Other liabilities

28

1,862,821

1,459,794

Net cash provided from operating activities

19,697,786

(14,441,303)

Cash flow from investing activities

Payment for purchases of associates

-

(10,575)

Payment for purchases of property, plant, equipment and branches constructions

(1,067,918)

(652,768)

Proceeds from selling property, plant and equipment

11

1,439

1,045

Proceeds from redemption of financial assets at amortized cost

21

33,937,957

7,321,780

Payment for purchases of financial assets at amortized cost

21

(47,344,534)

(4,703,236)

Payment for purchases of financial assets at fair value through OCI

21

(26,637,577)

(11,372,289)

Proceeds from selling financial assets at fair value through OCI

5,350,754

1,985,962

Net cash used in investing activities

(35,759,879)

(7,430,081)

Consolidated cash flow for the period ended September 30, 2019 (Cont.)

Sep. 30, 2019

Sep. 30, 2018

EGP Thousands

EGP Thousands

Cash flow from financing activities

Increase in long term loans

27

(321,235)

4,358

Dividend paid

(2,700,544)

(2,143,177)

Capital Increase

-

50,315

Net cash used in (provided from) financing activities

(3,021,779)

(2,088,504)

Net increase (decrease) in cash and cash equivalent during the period

(19,083,872)

(23,959,888)

Beginning balance of cash and cash equivalent

34,303,645

49,208,837

Cash and cash equivalent at the end of the period

15,219,773

25,248,949

Cash and cash equivalent comprise:

Cash and balances with central bank

15

27,205,020

33,253,111

Due from banks

16

25,629,602

45,038,599

Treasury bills and other governmental notes

17

44,736,504

48,324,427

Obligatory reserve balance with CBE

15

(20,770,245)

(23,004,955)

Due from banks with maturities more than three months

(16,541,989)

(30,113,810)

Treasury bills with maturity more than three months

(45,039,119)

(48,248,423)

Total cash and cash equivalent

15,219,773

25,248,949

Sep. 30, 2019

Issued and paid up capital

Legal reserve

General reserve

General risk reserve*

Special reserve

Capital reserve

Reserve for financial assets at fair value through OCI

Banking risks reserve

IFRS 9 risk reserve

Retained earnings

Reserve for employee stock ownership plan

Cumulative foreign currencies translation differences

Total Shareholders Equity

Minority Interest

Total

EGP Thousands

Beginning balance

11,668,326

1,710,293

12,776,215

-

20,645

12,421

(3,750,779)

4,323

1,411,549

9,637,083

738,320

-

34,228,396

-

34,228,396

Effect of applying IFRS 9**

-

-

-

117,251

-

-

1,889,928

-

-

-

-

-

2,007,179

-

2,007,179

Transferred to general risk reserve

-

-

-

1,432,194

(20,645)

-

-

-

(1,411,549)

-

-

-

-

-

-

Beginning balance after the impact of initial application

11,668,326

1,710,293

12,776,215

1,549,445

-

12,421

(1,860,851)

4,323

-

9,637,083

738,320

-

36,235,575

-

36,235,575

Capital increase

2,917,082

-

(2,917,082)

-

-

-

-

-

-

-

-

-

-

-

-

Transferred to reserves

-

477,736

6,375,589

-

-

1,045

-

-

-

(6,854,370)

-

-

-

-

-

Dividend paid

-

-

-

-

-

-

-

-

-

(2,700,544)

-

-

(2,700,544)

-

(2,700,544)

Net profit of the period

-

-

-

-

-

-

-

-

-

8,537,594

-

-

8,537,594

-

8,537,594

Net unrealised gain/(loss) on financial assets at fair value through OCI

-

-

-

-

-

-

5,271,372

-

-

-

-

-

5,271,372

-

5,271,372

Transferred (from) to bank risk reserve

-

-

-

-

-

-

-

841

-

(841)

-

-

-

-

-

Provision for impairment of debt instruments investments

-

-

-

-

-

-

(71,846)

-

-

-

-

-

(71,846)

-

(71,846)

Cost employees stock ownership plan (ESOP)

-

-

-

-

-

-

-

-

-

-

371,997

-

371,997

-

371,997

Cumulative foreign currencies translation differences

-

-

-

-

-

-

-

-

-

-

-

3,747

3,747

-

3,747

Balance at the end of the period

14,585,408

2,188,029

16,234,722

1,549,445

-

13,466

3,338,675

5,164

-

8,618,922

1,110,317

3,747

47,647,895

-

47,647,895

\* The special reserve, general bank risk reserve and IFRS 9 risk reserve - were consolidated in the general risk reserve as per the instructions of the Central Bank of Egypt dated 26 February 2019

*\* The initial application impact (disclosure in page number 17)

The initial application impact is LE 109,697 thousand and the tax effect is LE 7,554 thousand