Full annual report - African Bank - Investoreports

Notes to the group annual financial statements continued
48. Liquidity analysis
Liquidity risk management
Liquidity risk is defined as the risk that the group will encounter difficulty in meeting obligations associated with
financial liabilities.
The group risk and capital committee, through the group ALCO, has set limits and benchmarks in order to mitigate liquidity
risk to the appropriate levels. These policies have been described in the risk report on page 106.
The following table represents the group’s undiscounted contractual cash flows of liabilities per remaining maturity and
includes all cash outflows related to the principal amount as well as the future payments. Thus the analysis of cash flows will
not agree directly with the balance on the statement of financial position. The analysis is based on the earliest date on
which the group can be required to pay and is not necessarily the date at which the group is expected to pay. Where an
effective hedging relationship exists, the net cash fixed flows per hedged item have been disclosed.
298
R million
Up to
1 month
Greater
than
1 month
to
6 months
Greater
than
6 months
to 12
months
Greater
than
1 year to
2 years
Greater
than 2
years to
5 years
Greater
than
5 years Total
2012
Financial liabilities
Promissory notes 573 1 847 4 825 1 861 3 566 – 12 672
Fixed deposits 436 2 726 2 275 735 3 003 – 9 175
Demand deposits 1 178 2 799 183 – – – 4 160
Bank overdraft and call loans 476 – – – – – 476
Other liabilities 479 1 004 – – – – 1 483
Derivative instruments – 2 33 60 369 60 524
Subordinated bonds and
debentures 14 126 161 298 2 346 2 105 5 050
Bonds and other
long term funding 24 2 036 2 013 4 525 12 844 – 21 442
Total liabilities 3 180 10 540 9 490 7 479 22 128 2 165 54 982
2011
Financial liabilities
Promissory notes 171 1 556 2 475 1 050 1 981 – 7 233
Fixed deposits 1 330 3 012 3 761 1 661 2 220 – 11 984
Demand deposits 1 032 528 468 – – – 2 028
Unsecured short
term funding 610 – – – – – 610
Other liabilities 500 509 – – – – 1 009
Life fund reserve 14 120 433 252 2 911 618 4 348
Bonds and other
long term funding – 1 594 880 2 796 9 097 – 14 367
Total liabilities 3 657 7 319 8 017 5 759 16 209 618 41 579