English Version - National Bank of Abu Dhabi

Consolidated Statement of Cash Flows
For the year ended 31 December 2009
Notes to the consolidated financial statements
2009 2008
Note AED’000 AED’000
Cash flows from operating activities
Profit before taxation 3,092,876 3,090,786
Adjustments for:
Depreciation 14 101,120 82,171
Accreted interest 11,901 12,214
Profit on buyback of subordinated debt 21 (55,403) -
Write-offs and impairment charge 34 1,552,633 835,101
Foreign currency translation adjustment 139,560 (506,056)
Share option scheme 11,674 7,214
Write back of provisions for loans and advances 34 (115,992) (74,449)
4,738,369 3,446,981
Change in investments at fair value through profit or loss 201,320 (98,167)
Change in due from banks and central banks 661,531 9,590,396
Change in reverse repurchase agreements 3,110,518 (3,667,593)
Change in loans and advances (21,759,667) (32,666,575)
Change in other assets 1,099,566 (1,978,729)
Change in due to banks 4,979,667 (1,244,019)
Change in repurchase agreements with banks (1,965,056) (770,620)
Change in customers’ deposits 17,723,959 21,744,474
Change in other liabilities 444,339 453,225
9,234,546 (5,190,627)
Overseas income tax paid, net of recoveries 20 (110,040) (76,334)
Net cash from / (used in) operating activities 9,124,506 (5,266,961)
Cash flows from investing activities
Purchase of non-trading investments (7,062,459) (8,632,275)
Proceeds from sale / maturity of non-trading investments 3,091,066 2,982,143
Purchase of premises and equipment, net of disposals (867,269) (818,075)
Net cash used in investing activities (4,838,662) (6,468,207)
Cash flows from financing activities
Net movement of Euro commercial paper 101,224 (31,915)
Issue of medium term borrowings 5,144,053 2,196,158
Repayment of medium term borrowings (641,405) (515,966)
Proceeds from issue of Tier 1 capital notes 23 4,000,000 -
Buy back of subordinated convertible notes (159,100) -
Proceeds from issue of subordinated convertible notes 21 - 2,000,000
Dividends paid 22 (592,984) (658,871)
Payment on Tier I capital note 23 (120,000) -
Net cash from financing activities 7,731,788 2,989,406
Net increase / (decrease) in cash and cash equivalents 12,017,632 (8,745,762)
Cash and cash equivalents at 1 January 15,599,555 24,345,317
Cash and cash equivalents at 31 December 36 27,617,187 15,599,555
1 Legal status and principal activities
National Bank of Abu Dhabi PJSC (the “Bank”) was
established in Abu Dhabi in 1968 with limited liability and
is registered as a Public Joint Stock Company in accordance
with the United Arab Emirates Federal Law No. 8 of
1984 (as amended) relating to Commercial Companies.
Its registered office address is P. O. Box 4, Abu Dhabi,
United Arab Emirates. The consolidated financial
statements as at and for the year ended 31 December
2009 comprise the Bank and its subsidiaries (together
referred to as the “Group”). The Group is primarily
engaged in corporate, retail, private and investment
banking activities, Islamic banking activities; and
carries out its operations through its local and overseas
branches, subsidiaries and representative offices located
in United Arab Emirates, Bahrain, Egypt, France, Oman,
Kuwait, Sudan, Libya, the United Kingdom, Switzerland,
Hong Kong, Jordan and the United States of America.
The consolidated financial statements were authorised
for issue by the Board of Directors on 1 February 2010.
2 Basis of preparation
(a) Statement of compliance
The consolidated financial statements have been
prepared in accordance with the International Financial
Reporting Standards (IFRSs) and the requirements of
UAE Federal Law No. 8 of 1984 (as amended).
(b) Basis of measurement
The consolidated financial statements are prepared under
the historical cost basis except for the following:
• derivative financial instruments are measured at fair
value;
• investments at fair value through profit or loss are
measured at fair value;
• non-trading investments classified as available for sale
are measured at fair value;
• the carrying values of recognised assets and liabilities
that are hedged items in fair value and cash flow
hedges, and are otherwise carried at amortised cost, are
adjusted to record changes in fair values attributable to
risks that are being hedged; and
• non-financial assets acquired in settlement of loans
and advances are measured at the lower of their fair
value less costs to sell and the carrying amount of the
loan and advances.
(c) Functional and presentation currency
These consolidated financial statements are presented
in United Arab Emirates Dirhams (“AED”), which is
the Bank’s functional currency. Items included in the
financial statements of each of the Bank’s overseas
subsidiaries and branches are measured using the
currency of the primary e conomic environment in
which they operate. Except as indicated, information
presented in AED has been rounded to the nearest
thousand.
(d) Use of estimates and judgements
The preparation of consolidated financial statements
requires management to make judgements, estimates
and assumptions that affect the application of accounting
policies and reported amounts of assets and liabilities,
income and expense. Actual results may differ from
these estimates.
Estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised
and in any future periods affected.
Information about significant areas of estimation
uncertainty and critical judgements in applying
accounting policies that have the most significant effect
on the amount recognised in the consolidated financial
statements are described in note 5.
(e) Changes in accounting policies
Effective 1 January 2009, the Group has changed its
accounting policies in the following areas:
• Determination and presentation of operating segments
• Presentation of financial statements
• Amendments to IFRS 7
• Determination and presentation of operating segments
• Presentation of financial statements
• Amendments to IFRS 7
The notes 1 to 44 are an integral part of these consolidated financial statements.
The independent auditors’ report is set out on page 39.
45