Full annual report - African Bank - Investoreports

Notes to the group annual financial statements continued
Index to Income statement
Amount which impact Equity impact
Carrying exposed interest
value at to market rate is
R million year end risk linked Pretax Post tax Pretax Post tax
47. Market risk management
continued
47.1 Interest rate risk management
continued
2012
Financial assets
CPI linked swaps 371 3 310 CPI/JIBAR – – 33 24
Interest rate swaps # 516 JIBAR – – 5 4
Statutory assets 1 190 789 Prime 8 6 – –
Statutory assets 3 132 2 079 JIBAR 21 15 – –
Credit card advances (net) 6 563 6 563 Repo 115 83 – –
Cash and cash equivalents 3 162 1 764 JIBAR 18 13 – –
Cash and cash equivalents 92 92 Prime 1 1 – –
294
Total financial assets 14 510 15 113 163 118 38 28
Financial liabilities
Bonds 9 933 * CPI/JIBAR – – – –
Promissory notes 11 613 6 800 JIBAR 68 49 – –
Fixed deposits 11 659 3 312 JIBAR 33 24 – –
Interest rate swaps 515 9 292 JIBAR – – 93 67
CPI linked swaps 9 682 CPI/JIBAR – – 7 5
Short term funding 1 873 1 097 JIBAR 11 8 – –
Subordinated bonds,
debentures and loans 3 831 * JIBAR – – – –
Other long term funding 20 20 Prime – – – –
Total financial liabilities 39 453 21 203 112 81 100 72
Net effect on profit
and loss and equity 51 37 (62) (44)
* There is no exposure to market risk as the principal amounts are fully hedged against changes in the interest rate via interest rate
swaps or CPI linked.
# Amounts below R1 million.