Download - African Bank

More documents

Recommendations

Info

Notes to the annual financial statements (continued) for the year ended 30 September 2003 35. FINANCIAL RISK (continued) 35.3 Credit risk All loans granted by the group are granted in the Republic of South Africa. Exposure to credit losses is managed through granting loans to individuals where repayment of loans is made through payroll deductions, debit order deductions or similar techniques, the evaluation of the financial stability of the employer and arrears management. 35.4 Currency risk The group has no foreign currency positions. 35.5 Capital adequacy risk (banking) Capital adequacy risk is the risk that the bank will not have sufficient reserves to meet adverse variations in collections as compared with that which has already been assumed within the provisions. Capital adequacy is measured by expressing capital as a percentage of risk-weighted assets. The Banks Act, 94 of 1990, specifies the minimum capital holding required in relation to risk-weighted assets. The bank’s capital adequacy ratio at 30 September 2003 was 40,8% compared to the regulatory requirements of 10,0%. 35.6 Life assurance risk Legal risk Legal risk is the risk that the group will be exposed to contractual obligations which have not been provided for. During the development stage of any new product the legal services of the group monitor the drafting of the contact document to ensure that the rights and obligations of all parties are clearly defined. Capital adequacy risk Capital adequacy risk is the risk that there are insufficient reserves to provide for adverse variations in actual experience as compared with that which has been assumed in the financial soundness valuation. 36. CONTINGENT LIABILITIES AT YEAR-END African Bank has deposits with Standard Bank for EFT and electricity guarantees totalling R7,9 million. The insurance company has not provided for level life cover, amounting to R14,4 million, as the beneficiaries could not be traced. Historically, the company has not raised a provision for these benefits because of actual lower payout levels. African Contractor Finance Corporation has guaranteed loans totalling R6,1 million to contractors for prospective government construction contracts. The group has no exposure to legal claims of a material nature. African Bank Investments Limited 124
125 Group 2003 2002 R000 R000 37. OPERATING LEASE COMMITMENTS Payable within one year 36 025 36 238 Property 27 709 35 174 Equipment 7 892 808 Motor vehicles 424 256 Payable between one and five years 25 419 60 997 Property 12 359 59 554 Equipment 12 675 1 020 Motor vehicles 385 423 Payable thereafter – – 38. RETIREMENT AND POST-RETIREMENT BENEFITS Pensions are provided to some employees of the subsidiary companies by separate pension and provident funds. Remaining employees contribute to schemes of their own choice. The funds are governed by the Pension Funds Act, 1956, and are in the nature of defined contribution plans where the retirement benefits are determined with reference to contributions to the fund. The group has no obligation to provide medical aid benefits or post-retirement benefits to employees or pensioners. 39. RELATED PARTY INFORMATION African Bank Investments Limited holds 100% of African Bank Limited, Theta Investments Limited and Standard General Insurance Company Limited. Material related party transactions African Bank Limited has entered into financial services transactions with its subsidiaries. These transactions were in the ordinary course of business on market related terms and conditions similar to those arranged with third parties. Directors and director-related entities There were no material transactions with directors other than interests in share capital and share options and emoluments as disclosed in the directors’ report and note 23 respectively. The group’s shareholding in two non-core subsidiaries, Theta Specialised Finance (Pty) Limited and Business Venture Investments 189 (Pty) Limited, were sold at fair value to previous directors of a major subsidiary. The relevant boards approved these related- party transactions. African Bank Investments Limited
Page 1 and 2:
African Bank Investments Limited AN
Page 3 and 4:
2,5 2,0 1,5 1,0 0,5 0 JSE statistic
Page 5 and 6:
Five-year history Four-year compoun
Page 7 and 8:
Features 35 30 25 20 15 10 5 0 Head
Page 9 and 10:
Focus and strategy The focus of the
Page 11 and 12:
Profile African Bank Investments Li
Page 13 and 14:
1994 Formation of investment trust
Page 15 and 16:
Performance against key objectives
Page 17 and 18:
Short to medium-term objectives OBJ
Page 19 and 20:
African Bank Investments Limited We
Page 21 and 22:
Letter to stakeholders ABIL believe
Page 23 and 24:
Incwadi eya kwabanezabelo iqhutshiw
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
Currency adjusted group balance she
Page 37 and 38:
Management discussion Overview Key
Page 39 and 40:
12 months ended 12 months ended 30
Page 41 and 42:
Capital adequacy model Non-performi
Page 43 and 44:
8 000 7 000 6 000 5 000 4 000 3 000
Page 45 and 46:
Sales analysis - number and average
Page 47 and 48:
excluding the Saambou PLB acquisiti
Page 49 and 50:
The improved credit conditions are
Page 51 and 52:
ook and the written-off book. To th
Page 53 and 54:
Statement of average balances Weigh
Page 55 and 56:
Divisional reports Operationally, A
Page 57 and 58:
collection strike rates, which has
Page 59 and 60:
ABIL also expanded its portfolio to
Page 61 and 62:
Collections business unit. Its most
Page 63 and 64:
Issue arising Corrective action req
Page 65 and 66:
Skills and experience of the board
Page 67 and 68:
Corporate governance continued regu
Page 69 and 70:
from the committee responsible for
Page 71 and 72:
that the risk policies and strategi
Page 73:
Table 1: Remuneration and fees Serv
Page 76 and 77:
Risk review ABIL views risk as an i
Page 79 and 80:
Risk review continued Undesirable r
Page 81 and 82:
Top ten risks Mitigating factors Ri
Page 83 and 84:
Credit risk African Bank Retail Cre
Page 85 and 86:
on a regular basis to ensure proper
Page 87 and 88:
Social commitment Given the nature
Page 89 and 90:
Embarking on a journey The process
Page 91 and 92: The progress The corporate social c
Page 93 and 94: Shareholders’ information Number
Page 95 and 96: agreements, to ensure that the mate
Page 97 and 98: The interest rate charged is determ
Page 99 and 100: Continued effort and focus will go
Page 101 and 102: services of the best employees. The
Page 103 and 104: The African Bank Foundation accepts
Page 105 and 106: Index to global reporting initiativ
Page 107 and 108: Directors’ responsibility The dir
Page 109 and 110: Directors’ report 30 September 20
Page 111 and 112: INTEREST OF THE DIRECTORS IN THE SH
Page 113 and 114: n4 The strike prices of the share o
Page 115 and 116: Income statement for the year ended
Page 117 and 118: Cash flow statement for the year en
Page 119 and 120: Equity accounted income, which is i
Page 121 and 122: 1.9 Revenue recognition Interest in
Page 123 and 124: Group Company 2003 2002 2003 2002 R
Page 129 and 130: 111 Group 2003 2002 R000 R000 12. L
Page 135 and 136: 117 Group 2003 2002 R000 R000 25. R
Page 139 and 140: One to Four to Beyond Non-interest
Page 141: One to Four to Beyond Up to one thr
Page 145 and 146: Appendix B Investments in associate
Page 147 and 148: Appendix D Segmental advances and p
Page 149 and 150: Appendix F Group structure and prof
Page 151 and 152: 3.4.4 ensure that a comprehensive s
Page 153 and 154: 7.4.3 All directors are required to
Page 155 and 156: 6.3 any general payment shall be ma
Page 157 and 158: 13.6 Any repurchases shall comply w
Page 159 and 160: DIRECTORS’ CURRICULUM VITAES Anto
Page 161 and 162: 6. Isinqumo esejwayelekile esinguno
Page 163 and 164: 12.9.1 kuyokwenziwa ngokulandela uM
Page 165 and 166: 16. Ukuvota nezithunywa Bonke abani
Page 167 and 168: Form of proxy AFRICAN BANK INVESTME
Page 169 and 170: Ifomu yokuqoka isithunywa esizokume
Page 171 and 172: Members of the ABIL board ASHLEY SE
Page 173 and 174: RAMANI NAIDOO (41) BA LLB Non-execu
Page 175 and 176: Corporate information COMPANY REGIS
Page 177 and 178: GRAPHICOR 30006
show all

Download - African Bank

Create successful ePaper yourself

Delete template?

Save as template?