confidence - Investing In Africa

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Financial StatementsNotes to the Accounts for the year ended 30 June 2005 (cont’d)30. PHANTOM SHARE OPTIONSThe Bank has in place a “Compensation based on Performance Scheme” for senior executives including an element ofat-risk pay. The at-risk pay is in the form of options for Phantom shares. Under this scheme, senior executives are allocateda number of Phantom share options based on individual, team and Bank performance. The option price is the marketprice of the share at a discount. Options are exercisable after three years and within ten years of the date of allocationof the options subject to certain conditions including the following:(i) At the end of the tenth year, all outstanding options lapse.(ii) In any one year, not more than 15% of the options can be exercised.On the exercise of an option for a Phantom share, applicants receive in cash the increase in value of a notional share,based on the difference between the Bank’s quoted share price at the time of exercise and the option price.Movements in the number of Phantom share options:GROUP AND BANK2005 2004 2003MRs' 000 MRs' 000 MRs' 000Outstanding at beginning of the year 622,595 755,475 668,330Allocated during the year 279,000 - 250,000Lapsed during the year -) (63,305) (52,855)Exercised during the year (75,630) (69,575) (110,000)Outstanding at end of the year 825,965 622,595 755,475Included in staff costs (Note 24) is an amount of MRs1,027,200 (2004: MRs494,775) (2003: MRs402,000) paid on the exerciseof Phantom share options during the year.60Terms of the phantom share options outstanding as at 30 June 2005:Expiry DateGROUP AND BANKOptionNumber Price(MRs)June 30, 2008 53,415 18.00June 30, 2009 49,800 13.00June 30, 2010 85,750 10.00June 30, 2011 153,000 10.00June 30, 2012 205,000 10.00June 30, 2014 279,000 20.00825,965As at 30 June 2005, the potential liability was not significant.
Financial StatementsNotes to the Accounts for the year ended 30 June 2005 (cont’d)31. CURRENCY RISKThe tables below analyse the Group's and the Bank's currency risk exposure at 30 June 2005 and 30 June 2004.GROUPAt 30 June 2005ASSETSMUR USD GBP EURO INR OTHER TOTALMRs’000 MRs’000 MRs’000 MRs’000 MRs’000 MRs’000 MRs’000Cash and Balances with Central Banks 1,573,053 14,473 5,749 15,498 60,492 225,455 1,894,720Balances with Other Banks 348,660 2,655,410 1,864,658 1,311,892 7,263 190,539 6,378,422Investments in Subsidiaries and Associates 314,110 361,655 - - - - 675,765Other Equity Investments 1,635,290 17,327 - - - 331 1,652,948Placements - 335,958 60,088 - 70,215 - 466,261Investments in Gilt-edged Securities 8,424,889 - - - 926,676 45,867 9,397,432Securities, Placements and Other Investments 10,374,289 714,940 60,088 - 996,891 46,198 12,192,406Loans and Advances 19,962,359 1,551,918 13,703 811,651 1,410,383 751,562 24,501,576Tangible Fixed Assets 2,825,966 - - - 137,848 30,176 2,993,990Other Assets 257,101 206,148 2,574 4,654 153,601 21,848 645,926TOTAL ASSETS 35,341,428 5,142,889 1,946,772 2,143,695 2,766,478 1,265,778 48,607,040LIABILITIESDeposits 26,093,385 2,548,785 1,911,497 2,104,828 1,356,091 986,221 35,000,807Borrowings from Central Banks 247,829 - - - - - 247,829Borrowings from Other Banks - 2,120,567 47,527 690,822 424,768 - 3,283,684Other Borrowings - - - - 67,697 - 67,697Current Tax Liability 174,497 1,332 - - - 9,259 185,08861Deferred Tax Liability 464,153 - - - 19,171 - 483,324Other Liabilities 936,003 69,429 2,594 57,624 25,536 43,596 1,134,782TOTAL LIABILITIES 27,915,867 4,740,113 1,961,618 2,853,274 1,893,263 1,039,076 40,403,211Net Assets 7,425,561) 402,776) (14,846) (709,579) 873,215) 226,702) 8,203,829)Shareholders' Equity and Minority Interest (7,599,613) (126,885) -) -) (418,839) (58,492) (8,203,829)Net on balance sheet position (174,052) 275,891) (14,846) (709,579) 454,376) 168,210) -)Off balance sheet net notional position -) 173,086) 22,942) 726,054) (54,104) (30,906) 837,072)(174,052) 448,977) 8,096) 16,475) 400,272) 137,304) 837,072)
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embracing change with confidencecon
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Corporate ProfileSBM Group offers a
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key financial indicatorsRestated*20
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Corporate Governance ReportSBM has
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Corporate Governance ReportCorporat
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confidence to foster growth
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Board of DirectorsHarel, Antoine L.
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Board CommitteesRemuneration Commit
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Directors of SubsidiariesSBM LEASE
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Executive ManagementCHIEF EXECUTIVE
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Executive ManagementExecutive Manag
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Group Addresses136CORPORATE OFFICES
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