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

Notes

Dec. 31, 2019

Dec. 31, 2018

EGP Thousands

EGP Thousands

Assets

Cash and balances with central bank

15

 28,273,962

 20,058,974

Due from banks

16

 28,353,366

 46,518,892

Loans and advances to banks, net

18

 625,264

 67,703

Loans and advances to customers, net

19

 119,321,103

 106,309,205

Derivative financial instruments

20

 216,383

 52,289

Investments

- Financial investments securities

21

 197,541,651

 157,585,611

- Investments in associates and subsidiaries

22

 63,953

 68,633

Other assets

23

 9,747,939

 9,563,218

Intangible assets

40

 -

 238,715

Deferred tax assets (Liabilities)

31

 350,339

 308,370

Property, plant and equipment

24

 2,202,698

 1,651,875

Total assets

 386,696,658

 342,423,485

Liabilities and equity

Liabilities

Due to banks

25

 11,810,607

7,259,819

Due to customers

26

 304,483,655

285,340,472

Derivative financial instruments

20

 282,588

132,858

Current tax liabilities

 4,639,364

3,625,579

Other liabilities

28

 8,396,487

6,501,553

Other loans

27

 3,272,746

3,721,529

Provisions

29

 2,011,369

1,694,607

Total liabilities

 334,896,816

308,276,417

Equity

Issued and paid up capital

30

14,690,821

11,668,326

Reserves

33

24,342,314

12,184,667

Reserve for employee stock ownership plan (ESOP)

33

963,152

738,320

Retained earnings *

33

11,803,555

9,555,755

Total equity

51,799,842

34,147,068

Total liabilities and equity

386,696,658

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 December 31, 2019

Notes

Dec. 31, 2019

Dec. 31, 2018

EGP Thousands

EGP Thousands

Net profit for the period

11,803,555

9,555,755

Other comprehensive income items that will not be reclassified to the Profit or Loss:

Net change in fair value of debt instruments measured at fair value through other comprehensive income

212,967

57,026

Other comprehensive income items that is or may be reclassified to the profit or loss:

Net change in fair value of debt instruments measured at fair value through other comprehensive income

5,944,586

(2,164,847)

Expected credit loss for fair value of debt instruments measured at fair value through other comprehensive income

(184,921)

-

Total other comprehensive income for the year

17,776,187

7,447,934

Separate cash flow for the period ended December 31, 2019

Notes

Dec. 31, 2019

Dec. 31, 2018

EGP Thousands

EGP Thousands

Cash flow from operating activities

Profit before income tax

16,537,441

13,052,594

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

Fixed assets depreciation

24

576,544

390,830

Impairment charge for credit losses (Loans and advances to customers)

12

1,610,878

3,076,023

Other provisions charges

29

461,869

101,501

Impairment charge for credit losses (due from banks)

12

9,503

-

Impairment charge for credit losses (financial investments)

12

(184,921)

-

Impairment charge for other assets

23

(93,313)

316,763

Exchange revaluation differences for financial assets at fair value through OCI

20

1,593,030

(102,991)

Intangible assets amortization

238,715

130,208

Impairment charge financial assets at fair value through OCI

21

-

39,561

Exchange differences in financial investments in subsidiary

22

4,680

(465)

Utilization of other provisions

29

(28,135)

(2,114)

Other provisions no longer used

29

(6,910)

(17,670)

Exchange differences of other provisions

29

(110,062)

(2,269)

(Profits) losses from selling property, plant and equipment

11

(1,439)

(1,045)

(Profits) losses from selling financial investments

21

(497,894)

(441,628)

Shares based payments

464,539

408,346

Operating profits before changes in operating assets and liabilities

20,574,525

16,947,644

Net decrease (increase) in assets and liabilities

Due from banks

15

(8,870,547)

(13,661,577)

Treasury bills and other governmental notes

41

-

4,640,524

Financial assets at fair value through P&L

21

2,318,924

4,557,492

Derivative financial instruments

20

(2,910)

(66,141)

Loans and advances to banks and customers

18 - 19

(14,533,328)

(21,255,952)

Other assets

42

162,502

(2,263,465)

Due to banks

25

4,550,788

5,381,901

Due to customers

26

19,143,183

34,573,102

Income tax obligations paid

(3,625,579)

(2,778,973)

Other liabilities

28

1,894,934

1,025,022

Net cash provided from operating activities

21,612,492

27,099,577

Cash flow from investing activities

Payment for purchases of subsidiary and associates

-

(10,575)

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

(1,301,415)

(874,708)

Proceeds from selling property, plant and equipment

11

1,439

1,045

Proceeds from redemption of financial assets at amortized cost

21

43,937,957

5,532,271

Payment for purchases of financial assets at amortized cost

21

(76,516,842)

(33,995,313)

Payment for purchases of financial assets at fair value through OCI

21

(50,954,311)

(12,670,761)

Proceeds from selling financial assets at fair value through OCI

54,855,966

2,059,341

Net cash used in investing activities

(29,977,206)

(39,958,700)

Cash flow from financing activities

Increase (decrease) in long term loans

27

(448,783)

46,793

Dividend paid

(2,700,544)

(2,143,177)

Capital increase

105,413

50,315

Net cash used in (provided from) financing activities

(3,043,914)

(2,046,069)

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

(11,408,628)

(14,905,192)

Beginning balance of cash and cash equivalent

34,303,645

49,208,837

Cash and cash equivalent at the end of the year

22,895,017

34,303,645

Cash and cash equivalent comprise:

Cash and balances with central bank

15

28,273,962

20,058,974

Due from banks

16

28,370,183

46,518,892

Treasury bills and other governmental notes

17

27,634,062

41,999,252

Obligatory reserve balance with CBE

15

(22,397,310)

(13,526,763)

Due from banks with maturities more than three months

(10,593,903)

(10,733,386)

Treasury bills with maturity more than three months

(28,391,977)

(50,013,324)

Total cash and cash equivalent

22,895,017

34,303,645

Dec. 31, 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

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

9,555,755

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

3,022,495

-

(2,917,082)

-

-

-

-

-

-

-

-

105,413

Transferred to reserves

-

477,736

6,615,296

-

-

1,045

-

-

-

(6,854,370)

(239,707)

-

Dividend paid

-

-

-

-

-

-

-

-

-

(2,700,544)

-

(2,700,544)

Net profit for the year

-

-

-

-

-

-

-

-

-

11,803,555

-

11,803,555

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

-

-

-

-

-

-

6,157,553

-

-

-

-

6,157,553

Transferred (from) to bank risk reserve

-

-

-

-

-

-

-

841

-

(841)

-

-

Provision for impairment of debt instruments investments

-

-

-

-

-

(184,921)

-

-

-

-

(184,921)

Cost of employees stock ownership plan (ESOP)

-

-

-

-

-

-

-

-

-

-

464,539

464,539

Ending balance

14,690,821

2,188,029

16,474,429

1,549,445

-

13,466

4,111,781

5,164

-

11,803,555

963,152

51,799,842

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*

( 16 The initial application impact (disclosure in page number**

The initial application impact is LE 109,697 thousand and the tax effect is LE 7,554 thousand (disclosure in page number 19)