Annual Report 2007

F i n a n c i a l S tat e m e n t s
17. Fee and commission income
This balance consists of:
2007 2006
Fees for services rendered 12,888 9,206
Other income 168 156
13,056 9,362
The increase in fees for services rendered is due to the increase
in the Bank’s customer portfolio. This amount consists of amounts
charged to customers as service charges and for the maintenance
of customer accounts.
18. Other operating income
This balance is made up as follows:
2007 2006
Delay interest 8,853 4,434
Commissions – Western Union 1,227 2,480
Extraordinary income 1,545 1,405
Other income 5,152 1,771
16,777 10,090
19. Administrative expenses
This balance is composed of:
2007 2006
Staff costs 81,563 50,638
Third party services and supplies 92,211 46,252
Other costs 28,026 13,808
201,800 110,698
The variance in the staff costs was mainly explained by the increase
of the number of staff (from 297 at the end of 2006 to 537 at the end
of 2007) and the increase in the average salary by 10%, which is in
accordance with the Banking Union agreement.
The amount shown under third party services and supplies is made
up as follows:
2007 2006
Water, electricity and fuel 5,307 3,286
Consumables 11,519 6,936
Maintenance and repairs 4,261 2,302
Communications 11,403 7,140
Publicity 7,314 3,152
Accommodation and travel 8,921 3,673
Management fees 28,625 13,817
Other supplies and services 14,861 5,946
92,211 46,252
The increase in consumables is directly related to the increase in
the loan portfolio and customer deposits.
Management fees refers to the consultancy services provided by
ProCredit Holding for banking operations and transfer of know how
to the local staff.
The change in the communication costs is mainly due to the opening
of new branches during 2007.
The increase in publicity costs is due to the inclusion of costs related
to the change of the Bank’s name which has taken place in
February 2007.
Other costs consist of:
2007 2006
Rentals 17,468 8,890
Security 3,825 2,251
Insurance 1,924 1,569
Other 4,809 1,098
28,026 13,808
The increase in rentals was caused by the opening of three new
branches, two in Maputo and one at Xai Xai.
20. Depreciation and amortization charge
This balance comprises depreciation on property, plant and equip-
ment amounting to 12,516 thousand Meticais and the amortisation
of intangible assets amounting to 2,319 thousand Meticais, as analysed
in Note 5.
21. Related parties transactions
Related parties include shareholders and their affiliates, members
of the board of directors, key management personnel and any other
party that has the ability to control or exercise significant influence
over the company‘s financial and operating decisions. During
the year the Bank, in the ordinary course of business, entered
into various transactions with related parties. The effect of these
transactions is included in the financial performance and results
of the company. Terms and conditions are determined on an arm‘s
length basis. For balances outstanding with related parties as at
31 December 2007 and 2006, refer to Notes 8 and 9 above, namely:
ProCredit Holding (2007: 24,794 thousand Meticais; 2006: -) and
IPC (2007: 2,663 thousand Meticais; 2006: -).
22. Subsequent events
There were no facts or events subsequent to the balance sheet date
that could influence the reading and interpretation of these financial
statements as at 31 December 2007.
Exchange rate as of December 31, 2007: 1 USD = 23.82 MZM