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

Notes

Jun. 30, 2019

Dec. 31, 2018

EGP Thousands

EGP Thousands

Assets

Cash and balances with central bank

15

24,993,377

20,058,974

Due from banks

16

66,506,687

46,518,892

Loans and advances to banks, net

18

708,126

67,703

Loans and advances to customers, net

19

110,287,589

106,309,205

Derivative financial instruments

20

175,020

52,289

Investments

- Financial investments securities

21

147,462,881

157,585,611

- Investments in associates and subsidiaries

22

65,613

68,633

Other assets

23

8,488,884

9,563,218

Intangible assets

40

173,611

238,715

Deferred tax assets (Liabilities)

31

462,161

308,370

Property, plant and equipment

24

1,948,012

1,651,875

Total assets

361,271,961

342,423,485

Liabilities and equity

Liabilities

Due to banks

25

1,380,213

7,259,819

Due to customers

26

305,603,702

285,340,472

Derivative financial instruments

20

170,361

132,858

Current tax liabilities

2,058,736

3,625,579

Other liabilities

28

5,275,981

6,501,553

Other loans

27

3,490,728

3,721,529

Provisions

29

1,503,326

1,694,607

Total liabilities

319,483,047

308,276,417

Equity

Issued and paid up capital

30

14,585,408

11,668,326

Reserves

33

20,859,168

12,184,667

Reserve for employee stock ownership plan (ESOP)

33

986,318

738,320

Retained earnings *

33

5,358,020

9,555,755

Total equity

41,788,914

34,147,068

Total liabilities and equity

361,271,961

342,423,485

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

Separate income statement for the period ended June 30, 2019

Notes

Jun. 30, 2019

Jun. 30, 2018

EGP Thousands

EGP Thousands

Net profit for the period

5,358,020

4,416,955

Reserve for financial assets at fair value through OCI

2,729,193

(2,410,531)

Total other comprehensive income for the period

8,087,213

2,006,424

Separate cash flow for the period ended June 30, 2019

Notes

Jun. 30, 2019

Jun. 30, 2018

EGP Thousands

EGP Thousands

Cash flow from operating activities

Profit before income tax

7,399,456

5,917,088

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

Fixed assets depreciation

24

275,052

180,206

Impairment charge for credit losses

12

875,635

1,291,167

Other provisions charges

29

3,140

99,715

Provisions charges - due from banks

12

29,156

-

Provisions charges - financial investments

12

(109,667)

-

Impairment charge for other assets

23

52,772

214,000

Exchange revaluation differences for financial assets at fair value through OCI

21

886,795

(91,952)

Intangible assets amortization

40

65,104

65,104

Impairment charge financial assets at fair value through OCI

21

45,664

19,842

Exchange differences in financial investments in subsidiary

22

3,020

(401)

Utilization of other provisions

29

1,878

(872)

Other provisions no longer used

29

(126,575)

(62,000)

Exchange differences of other provisions

29

(69,724)

(790)

Profits from selling property, plant and equipment

11

(1,439)

-

(Profits) losses from selling financial investments

21

(65,445)

(421,837)

Shares based payments

247,998

215,861

Operating profits before changes in operating assets and liabilities

9,512,820

7,425,131

Net decrease (increase) in assets and liabilities

Due from banks

16

(25,049,337)

(27,757,024)

Treasury bills and other governmental notes

41

24,315,394

20,314,670

Financial assets at fair value through P&L

21

2,262,513

389,097

Derivative financial instruments

20

(75,592)

(42,938)

Loans and advances to banks and customers

18 - 19

(4,776,117)

(19,945,443)

Other assets

42

1,289,326

(567,525)

Due to banks

25

(5,879,606)

3,779,710

Due to customers

26

20,263,230

16,103,171

Income tax obligations paid

(3,625,579)

(2,778,973)

Other liabilities

28

(1,225,572)

(1,480,689)

Net cash provided from operating activities

17,011,480

(4,560,813)

Cash flow from investing activities

Payment for purchases of subsidiary and associates

-

(10,575)

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

(840,953)

(404,485)

Proceeds from selling property, plant and equipment

11

1,439

-

Proceeds from redemption of financial assets at amortized cost

21

33,290,053

4,982,600

Payment for purchases of financial assets at amortized cost

21

(32,633,462)

-

Payment for purchases of financial assets at fair value through OCI

21

(11,433,512)

(10,731,239)

Proceeds from selling financial assets at fair value through OCI

5,105,870

724,732

Net cash used in investing activities

(6,510,565)

(5,438,967)

Cash flow from financing activities

Increase in long term loans

27

(230,801)

24,901

Dividend paid

(2,700,544)

(2,143,177)

Net cash used in (provided from) financing activities

(2,931,345)

(2,118,276)

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

7,569,570

(12,118,056)

Beginning balance of cash and cash equivalent

34,303,645

49,208,837

Cash and cash equivalent at the end of the period

41,873,215

37,090,781

Cash and cash equivalent comprise:

Cash and balances with central bank

15

24,993,377

24,601,352

Due from banks

16

66,543,158

51,245,308

Treasury bills and other governmental notes

17

25,344,096

33,938,896

Obligatory reserve balance with CBE

15

(15,980,212)

(14,042,817)

Due from banks with maturities more than three months

(33,329,274)

(24,312,780)

Treasury bills with maturity more than three months

(25,697,930)

(34,339,178)

Total cash and cash equivalent

41,873,215

37,090,781

Jun. 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

Total

Beginning balance

11,668,326

1,710,293

12,776,215

-

20,645

12,421

(3,750,779)

4,323

1,411,549

9,555,755

738,320

34,147,068

Effect of applying IFRS 9**

-

-

-

117,251

-

-

1,889,928

-

-

-

-

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

-

9,555,755

738,320

36,154,247

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)

Net profit for the period

-

-

-

-

-

-

-

-

-

5,358,020

-

5,358,020

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

-

-

-

-

-

-

2,838,861

-

-

-

-

2,838,861

Transferred (from) to bank risk reserve

-

-

-

-

-

-

-

841

-

(841)

-

-

Provision for impairment of debt instruments investments

-

-

-

-

-

(109,668)

-

-

-

-

(109,668)

Cost of employees stock ownership plan (ESOP)

-

-

-

-

-

-

-

-

-

-

247,998

247,988

Balance at the end of the period

14,585,408

2,188,029

16,234,722

1,549,445

-

13,466

868,342

5,164

-

5,358,020

986,318

41,788,914

Beginning balance

\* 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 16)

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