Contents - Equity Bank Group

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Notes to the Financial StatementsFor the year ended 31st December 2007CommitmentsCapital expenditure contracted for at the balance sheet date but not recognized in the financial statements is as follows:In millions of Kenya Shillings 2007 2006Capital commitments 97 326Loans approved but not disbursed 375 22631. Other contingenciesThe Bank is currently discussing with Kenya Revenue Authority on some open tax /issues. On the basis of appropriate professionaladvise, the directors are of the opinion that no loss will crystallise and therefore no provision has been made in these financialstatements.The Bank is defending some actions brought by borrowing consumers in relation to the loans advanced to them. While liabilityis not admitted, if defence against the actions is unsuccessful, fines and legal costs could amount to KShs 9million. Based on legaladvice, the directors do not expect the outcome of the actions to have a material effect on the Bank’s financial position.A review of the impact of the post-election violence on the bank’s loan portfolio after year end has been carried out. The directorsare of the opinion that no material loss is likely to crystallize therefrom.32. Related partiesa) Loans to key management personnel 2007 2006In millions of Kenya ShillingsBalance at 1 January 43 25Interest charged 3 3Loans disbursed 8 20Cash received (6) (5)Balance at 31 December 48 43b) Loans to employees 2007 2006In millions of Kenya ShillingsBalance at 1 January 188 132Interest charged 25 13Loans disbursed 317 191Cash received (135) (147)Balance at 31 December 395 189Interest rates charged on balances outstanding are two thirds of the rates that would be charged in an arm’s length transaction.No impairment losses have been recorded against balances outstanding during the year and no specific allowance has been madefor impairment losses on balances at the year end.642007 Annual Report and Financial Statements
Notes to the Financial StatementsFor the year ended 31st December 2007c) Loans to directors and related partiesIn millions of Kenya Shillings 2007 2006Balance at 1 January 147 -Interest charged 16 4Loans disbursed 131 175Cash received (131) (32)Balance at 31 December 163 147Interest rates charged on balances outstanding are two thirds of the rates that would be charged in an arm’s length transaction.d) Key management personnel compensationIn millions of Kenya Shillings 2007 2006Remuneration to executive directors 58 4158 41In addition to their salaries, the Bank also contributes to a post-employment defined benefit plan National Social Security Fund,(NSSF), on their behalf.e) Directors’ emolumentsIn millions of Kenya Shillings 2007 2006As non-executive 15 16As executives 58 41Net amount at 31 December 73 57(f)All the transactions with the related parties are priced on arm’s length basis and have been entered into in the normal course ofbusiness.2007 Annual Report and Financial Statements 65
Page 3:
Notice of Annual General MeetingNot
Page 6:
Chairman’s Statement continued“
Page 9 and 10:
Taarifa ya Mwenyekiti inaendeleaZai
Page 11 and 12:
Ceo’s Statement“ … the annual
Page 13 and 14: Taarifa ya Afisa Mkuu na Mkurugenzi
Page 16 and 17: Financial HighlightsGROWTH IN GROSS
Page 18 and 19: Key AchievementsAugust 2007 - Our u
Page 21 and 22: Statement on Corporate Social Respo
Page 23 and 24: Board of DirectorscontinuedPeter Ga
Page 25 and 26: Senior ManagementPeter Makau, Direc
Page 27 and 28: Ripoti ya WakurugenziKwa mwaka ulio
Page 30 and 31: Statement of Directors Responsibili
Page 33 and 34: Balance SheetAs at 31st December 20
Page 35 and 36: Statement of Changes in EquityFor t
Page 37 and 38: Notes to the Financial StatementsFo
Page 53: Notes to the Financial StatementsFo
Page 67 and 68: Countrywide Branch NetworkHEAD OFFI
Page 69 and 70: Notes / Maelezo2007 Annual Report a
Page 71 and 72: Proxy FormThe Company SecretaryEqui
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Contents - Equity Bank Group

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