Download - African Bank

One to Four to Beyond
Up to one three twelve twelve
month months months months Total
2002 R000 R000 R000 R000 R000
35. FINANCIAL RISK (continued)
35.2 Liquidity risk (continued)
Assets and liabilities maturities
as at 30 September 2002
Assets
Fixed assets – – – 189 029 189 029
Investments in associates – – – 17 605 17 605
Policyholders’ investments 65 080 – – – 65 080
Goodwill – – – 13 007 13 007
Deferred tax asset – – 9 483 53 976 63 459
Net advances 489 493 343 079 1 176 148 2 891 479 4 900 199
Other assets and taxation 206 401 299 029 10 749 2 129 518 308
Liquid assets 219 531 102 043 – 100 177 421 751
Short term deposits and cash 832 482 – – 2 978 835 460
Total assets 1 812 987 744 151 1 196 380 3 270 380 7 023 898
Liabilities
Life fund reserve 65 080 – – 29 633 94 713
Loans and debentures – – 106 244 2 163 069 2 269 313
Deferred tax liability – – 6 290 6 966 13 256
Liabilities to depositors 251 484 58 127 9 133 371 588 690 332
Other liabilities and taxation 1 011 218 21 806 213 664 13 563 1 260 251
Bank overdraft 5 649 – – 14 197 19 846
Secondary capital – – – 186 675 186 675
Shareholders’ funds and minority interests – – – 2 489 512 2 489 512
Total liabilities 1 333 431 79 933 335 331 5 275 203 7 023 898
Net liquidity gap 479 556 664 218 861 049 (2 004 823) –
The table above analyses the group’s assets and liabilities into relevant maturity groupings based on the remaining period at
balance sheet date to the contractual maturity date.
The matching and controlled mismatching of the maturities and interest rates of assets and liabilities are fundamental to the
management of the group. It is unusual for bank and bank-controlling companies ever to be completely matched since the business
transacted is often of uncertain term and of different types. An unmatched position potentially enhances profitability, but can also
increase the risk of loss.
The maturities of assets and liabilities and the ability to replace, at an acceptable cost, interest-bearing liabilities as they mature,
are important factors in assessing the liquidity of the group and its exposure to changes in interest rates.
Facility unutilised
At 30 September 2003 African Bank Limited had a R75 million undrawn credit facility with Standard Bank of South Africa, and an
undrawn credit facility with Nedcor (BoE) of R500 million.
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African Bank Investments Limited