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BOB_2017_SMALL

NOTES TO THE FINANCIAL

NOTES TO THE FINANCIAL STATEMENTS Included in customer accounts were deposits of K Sh 3,187.04 million (2016: K Sh 2,730.67 million) held as collateral for loans and advances. The fair value of those deposits approximates the carrying amount. 27. Deposits and Balances due to other banking institutions 2017 2016 Kshs '000 Kshs '000 Parent bank 30,703 142,122 Foreign banks 4,658,235 2,757,856 4,688,938 2,899,978 28. Other Liabilities Staff leave and gratuity accrual 238,019 181,495 Bills payable 2,600 2,794 Other accounts payable 152,601 308,131 393,220 492,420 Other liabilities are expected to be settled within no more than 12 months after the date of the statement of the financial position. 29. Share capital Authorised 49,485,838 Ordinary shares of Kshs. 20.00 each 989,717 989,717 Issued 49,485,838 Ordinary shares of Kshs. 20.00 each 989,717 989,717 30. Fair value reserve The fair value reserve relates to the cumulative net change in fair value of Available-for-sale financial assets until the investment is derecognised. The current year movements have been set out in note 12. 31. Statutory loan loss reserve Where impairment losses required by legislation or regulation exceed those computed under International Financial Reporting Standards (IFRS’s), the excess is recognised as a statutory reserve and accounted for as an appropriation of Retained Earnings. The reserves are not distributable. 32. Dividends 2017 2016 Proposed dividends (989,717) (494,858) 54

NOTES TO THE FINANCIAL STATEMENTS ANNUAL REPORT AND FINANCIAL STATMENTS 2017 33. Related parties Included in loans and advances and customer deposits are amounts advanced to/received from certain directors and companies in which directors are involved either as shareholders or directors (related companies). In addition, contingent liabilities include guarantees and letters of credit which have been issued to related companies. 2017 2016 Kshs '000 Kshs '000 (a) compensation to key management Short-term employee benefits 47,408 47,408 Post-employment benefits 8,512 8,512 55,920 55,920 (b) interest received from loans and advances to: Related companies - - Senior management employees 1053 673 Other employees 135,576 52,865 136,629 53,538 (c) interest paid on deposits from: Directors - - Related companies - - Senior management employees 6 17 Other employees 280 352 286 369 (d) management fees paid Related companies 27,708 47,102 55