Financial Statements 2011 - Investing In Africa

Notes To The Financial Statements (Continued)
As at 31 december 2011
14) Income tax (Continued)
b) Reconciliation of tax expense to expected tax base based on accounting profit
The tax on the Group’s profit before tax differs from the theoretical amount that would arise using the statutory
income tax rate as follows:
Bank
Group
2011 2010 2011 2010
Shs’000 Shs’000 Shs’000 Shs’000
3,360,602 2,416,342 Profit before tax 3,604,948 2,608,392
1,008,181 724,903 Income tax - at the statutory rate of 30 % 1,081,484 782,518
162,304 88,591 Tax effect of expenses not deductible for tax 168,966 91,041
(311,140) (116,987) Tax effect of revenues that are not taxable (320,848) (118,660)
11,790 - Prior year under provision - current tax 11,790 136
(43,581) (10,562) Deferred tax – prior year (43,581) (10,562)
827,554 685,945 897,811 744,474
c) Current income tax payable/(recoverable) movement
Bank
Group
2011 2010 2011 2010
Shs’000 Shs’000 Shs’000 Shs’000
174,215 (37,334) At 1 January 171,164 (69,703)
- - Exchange difference on translation - 17
987,367 694,582 Tax charge (note 14 (a))- current year 1,058,727 742,984
11,790 - Tax charge (note 14 (a))- prior year 11,790 136
(950,051) (483,033) Income taxation paid (1,020,833) (502,270)
223,321 174,215 At 31 December 220,848 171,164
Comprising; - -
- - Current income tax recoverable (8,690) (8,180)
223,321 174,215 Current income tax payable 229,538 179,344
223,321 174,215 At 31 December 220,848 171,164
15) Earnings per share
Earnings per share is calculated by dividing the profit attributable to equity holders of the Bank by the weighted average
number of ordinary shares outstanding during the year.
Bank
Group
2011 2010 2011 2010
2,533,048 1,730,397 Profit attributable to equity holders of the Bank (Shs,000) 2,652,458 1,817,232
Weighted average number of shares for
394,897,562 394,897,562 purposes of basic and diluted earnings per share 394,897,562 394,897,562
Shs 6.41 Shs 4.38 Earnings Per Share (Shs) Shs 6.72 Shs 4.60
NIC Bank Limited • Annual Report & Financial Statements 2011 • 73