Financial Statements 2011 - Investing In Africa

Notes To The Financial Statements (Continued)
As at 31 december 2011
35) Share capital and reserves (continued)
Premiums from the issue of shares are reported as share premiums. During the year, the share premium was fully
utilised to cater for the bonus issue and related bonus issue expenses.
(b) Revaluation surplus on property
Revaluation reserve is made up of the periodic adjustments arising from the fair valuation of buildings, net of the
related deferred taxation. The reserve is not available for distribution to the shareholders.
(c)
Investments revaluation reserves
This represents the unrealized increase or decrease in the fair value of available-for-sale investments, excluding
impairment losses. The reserve is not available for distribution to the shareholders.
(d) Foreign currency translation reserve
The reserves represent exchange differences arising from translation of the net assets of the Group’s foreign operation
(NIC Bank Tanzania Limited) from their functional currency (Tanzania Shillings) to the Group’s presentation currency
(Kenya Shillings). These differences are recognised directly through other comprehensive income and accumulated in
the foreign currency translation reserve. The Group acquired effective control of NIC Bank Tanzania Limited on 1 May
2010. The reserve is not available for distribution to the shareholders.
(e) Statutory credit risk reserves
Where impairment losses required by prudential guidelines issued by the banking regulators exceed those computed
under the International Financial Reporting Standards (IFRS), the excess is recognised as a statutory reserve and
accounted for as an appropriation from revenue reserves. The reserve is not available for distribution to the shareholders.
(f)
Revenue reserves
This represents undistributed profits from current and previous years.
36) Non-controlling interests
The total non-controlling interest consists of equity interest in subsidiaries;
GROUP AND BANK
2011 2010
Ownership Amount Ownership Amount
% Shs’000 % Shs’000
NIC Bank Tanzania 49.0 435,988 49.0 382,299
NIC Securities 8.7 33,158 8.7 32,168
At 31 December 469,146 414,467
a) NIC Bank Tanzania
On 1 May 2009, the Group acquired a 51% stake in one of Tanzania’s mid-sized commercial banks, NIC Bank Tanzania
Limited. NIC Bank Tanzania Ltd was founded as a non-bank financial institution in 1994, converted to a fully fledged
commercial bank in 2005 and has branches in Dar es Salaam, Mwanza and Arusha.
NIC Bank Limited • Annual Report & Financial Statements 2011 • 87