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Firstrand Bank Ltd. (96CF)

  Print   

Friday 28 March, 2014

Firstrand Bank Ltd.

Unaudited results for the 6 months ended Dec 2013

RNS Number : 5057D
Firstrand Bank Ltd.
28 March 2014
 



ABRIDGED UNAUDITED FINANCIAL RESULTS FOR FIRSTRAND BANK LIMITED FOR THE SIX MONTHS ENDED 31 DECEMBER 2013

 

Condensed income statement - IFRS

 

R million

Six months ended

31 December

% change

Year ended

30 June

2012*

 2013*

Net interest income before impairment of advances

12 457

10 703

 16

21 683

Impairment of advances

(2 213)

(2 061)

7

(4 441)

Net interest income after impairment of advances

10 244

8 642

19

17 242

Non-interest income

14 647

12 540

17

24 123

Income from operations

24 891

21 182

 18

41 365

Operating expenses

(15 319)

(13 734)

12

(26 673)

Income before tax

9 572

7 448

29

14 692

Indirect tax

(429)

(429)

-

(579)

Profit before tax

9 143

7 019

30

14 113

Income tax expense

(2 232)

(1 424)

57

(3 135)

Profit for the period

6 911

5 595

24

10 978

Attributable to:





Ordinary equityholders

6 815

5 495

24

10 782

NCNR preference shareholders

96

100

 (4)

196

Profit for the period

6 911

5 595

24

10 978

 

*  Please refer to restatement of prior year numbers.



 

Condensed statement of comprehensive income - IFRS

 

R million

 

Six months ended

31 December

% change

 Year ended

 30 June

 


2013

2012*

2013*

 

Profit for the period


6 911

5 595

24

10 978

 

Items that may subsequently be reclassified to profit or loss







Cash flow hedges


 75

 (89)

 (>100)

 853

 

 



 

 

 

 

(Losses)/gains arising during the period


(260)

 (451)

 (42)

 417

 

Reclassification adjustments for amounts included in profit or loss


364

 328

11

 768

 

Deferred income tax


 (29)

 34

 (>100)

 (332)

 




 

 

 

 

Available-for-sale financial assets


(126)

349

 (>100)

(117)

 

 



 

 

 

 

(Losses)/gains arising during the period


(110)

479

 (>100)

(134)

 

Reclassification adjustments for amounts included in profit or loss


 (66)

-

 >100

(32)

 

Deferred income tax


50

(130)

 (>100)

49

 








Exchange differences on translating foreign operations


156

75

 >100

240

 

Gains arising during the period


156

75

 >100

240

 

 



 

 

 

 

Items that may not subsequently be reclassified to profit or loss







Actuarial losses on defined benefit post-employment plans


(18)

(23)

(22)

 22

 

 



 

 

 

 

(Losses)/gains arising during the period


 (25)

 (32)

 (22)

 30

 

Deferred income tax


7

9

(22)

 (8)

 

 



 

 

 

 

Other comprehensive income for the period


87

312

(72)

998

 

Total comprehensive income for the period


6 998

5 907

18

11 976

 

Attributable to:







Ordinary equityholders


6 902

5 807

19

11 780

 

NCNR preference shareholders


96

100

 (4)

196

 

Total comprehensive income for the period


6 998

5 907

18

11 976

 

 

*  Please refer to restatement of prior year numbers.



 

Condensed statement of financial position - IFRS

 

R million

As at 31 December

 As at 30 June

2013

2012*

2013*

ASSETS




Cash and cash equivalents

41 298

44 743

42 296

Derivative financial instruments

43 684

55 907

51 755

Commodities

6 894

8 003

 6 016

Accounts receivable

3 632

3 419

4 574

Current tax asset

471

497

140

Advances

574 360

516 251

548 581

Amounts due by holding company and fellow subsidiary companies

24 281

21 267

20 628

Investment securities and other investments

92 134

79 100

94 961

Investment in subsidiary companies

-

-

5

Investments in associates

29

409

44

Property and equipment

10 965

9 928

10 421

Intangible assets

233

152

154

Total assets

797 981

739 676

779 575

EQUITY AND LIABILITIES




Liabilities




Short trading positions

5 489

9 184

2 923

Derivative financial instruments

48 775

58 209

52 940

Creditors and accruals

7 821

6 437

8 920

Deposits

649 971

586 666

629 872

Provisions

278

222

246

Employee liabilities

5 531

5 729

7 002

Other liabilities

1 147

1 042

1 062

Amounts due to holding company and fellow subsidiary companies

 10 829

13 158

14 528

Deferred income tax liability

412

279

50

Tier 2 liabilities

7 625

7 642

7 625

Total liabilities

737 878

688 568

725 168

Equity




Ordinary shares

4

4

4

Share premium

15 304

15 304

15 304

Reserves

41 795

32 800

36 099

Capital and reserves attributable to ordinary equityholders

57 103

48 108

51 407

NCNR preference shareholders

3 000

3 000

3 000

Total equity

60 103

51 108

54 407

Total equity and liabilities

797 981

739 676

779 575

 

*  Please refer to restatement of prior year numbers.



 

Condensed statement of cash flows - IFRS

 

R million

Six months ended

31 December

Year ended

30 June

2013

2012

2013

Net cash flows from operating activities

11 935

8 491

18 425

Net cash (utilised)/generated from operations

(9 232)

8 841

(385)

Taxation paid

(2 484)

(2 420)

(4 432)

Net cash inflow from operating activities

219

14 912

13 608

Net cash outflow from investing activities

(1 360)

(2 058)

(3 185)

Net cash inflow from financing activities

136

325

285

Net (decrease)/increase in cash and cash equivalents from operations

(1 005)

13 179

10 708

Cash and cash equivalents at the beginning of the year

42 296

31 557

31 557

Cash and cash equivalents at the end of the period

41 291

44 736

42 265

Effect of exchange rate changes on cash and cash equivalents

7

7

31

Cash and cash equivalents at the end of the period

41 298

44 743

42 296

Mandatory reserve balances included above*

14 924

13 439

14 322

 

*  Banks are required to deposit a minimum average balance calculated monthly with the central bank, which is not
available for use in the Bank's day-to-day operations. The deposit bears no or low interest. Money at short notice
constitutes amounts withdrawable in 32 days or less.

 


Condensed statement of changes in equity - IFRS

for the six months ended 31 December

 


Ordinary share capital and ordinary equityholders' funds

Non-

cumulative

non-

redeemable

preference

shares

Total

equity

R million

Share

capital

Share

premium

Share

capital

and share

premium

Defined

benefit

post-

employment

reserve

Cash flow

hedge

reserve

Share-based

payment

reserve

Available-

for-sale

reserve

Foreign

currency

translation

reserve

Other

reserves

Retained

earnings

Reserves

attributable

to ordinary

equity-

holders

Balance as reported at 30 June 2012

4

15 304

15 308

 -

 (753)

420

696

(247)

1 345

29 228

30 689

3 000

48 997

Prior period restatements

 -

-

-

(581)

 -

 -

-

-

-

(98)

(679)

 -

(679)

Restated balance as at 1 July 2012

4

15 304

15 308

(581)

 (753)

420

696

(247)

1 345

29 130

30 010

3 000

48 318

Movement in other reserves

 -

 -

 -

 -

 -

19

 -

 -

-

-

19

 -

19

Ordinary dividends

 -

 -

 -

 -

 -

 -

 -

 -

 -

(3 036)

(3 036)

 -

(3 036)

Preference dividends

 -

 -

 -

 -

 -

 -

 -

 -

 -

 -

 -

(100)

(100)

Total comprehensive income for the period

 -

 -

 -

(23)

 (89)

 -

349

75

-

5 495

5 807

100

5 907

Balance as at 31 December 2012

4

15 304

15 308

(604)

 (842)

439

1 045

(172)

1 345

31 589

32 800

3 000

51 108

Balance as reported at 30 June 2013

4

15 304

15 308

 -

 100

439

579

(7)

1 345

34 115

36 571

3 000

54 879

Prior period restatements

 -

-

-

(559)

 -

 -

-

-

-

87

(472)

 -

(472)

Balance as at 1 July 2013

4

15 304

15 308

(559)

 100

439

579

(7)

1 345

34 202

36 099

3 000

54 407

Movement in other reserves

 -

 -

 -

 -

 -

11

 -

 -

-

(37)

(26)

 -

(26)

Ordinary dividends

 -

 -

 -

 -

 -

 -

 -

 -

 -

(1 180)

(1 180)

 -

(1 180)

Preference dividends

 -

 -

 -

 -

 -

 -

 -

 -

 -

 -

 -

(96)

(96)

Total comprehensive income for the period

 -

 -

 -

(18)

75

 -

(126)

156

-

6 815

6 902

96

6 998

Balance as at 31 December 2013

4

15 304

15 308

(577)

175

450

453

149

1 345

39 800

41 795

3 000

60 103

 

PLEASE REFER TO THE ATTACHED ANALYSIS OF FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2013 (PDF) FOR
ABRIDGED FINANCIALS FOR FIRSTRAND BANK LIMITED, A DETAILED ANALYSIS OF FINANCIAL RESULTS, SEGMENTAL REPORTING AND
BALANCE SHEET ANALYSIS (INCLUDING INFORMATION ON THE BANK'S CAPITAL AND FUNDING POSITION AND CREDIT PORTFOLIOS).

THE ABRIDGED CONSOLIDATED INTERIM FINANCIAL RESULTS FOR FIRSTRAND BANK LIMITED GROUP ARE ALSO ATTACHED.


Restatement of prior year numbers

 

Description of restatements

IFRS 10, IFRS 11, IFRS 12, IAS 27R and IAS 28R

Under IFRS 10 there is one approach for determining consolidation of all entities based on concepts of power, variability of returns and linkage. The application of control will be applied irrespective of the nature of the investee. The Bank has control over an investee when the Bank is exposed, or has rights to, variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.

IFRS 11 places more focus on the investors' rights and obligations than on the structure of the arrangement when determining whether a joint arrangement exists.

IFRS 12 is a comprehensive standard on disclosure requirements for all forms of interests in other entities, including unconsolidated structured entities. The standard impacts disclosure only and has no impact on recognition and measurement.

The adoption of IFRS 10 and 11 resulted in the following:

·      Reclassification of a number of entities between associates and joint ventures. As it has always been the Bank's policy to account for joint ventures in accordance with the equity accounting method, reclassification did not result in a change in measurement.

·      An investment previously classified as an associate was considered to be controlled under IFRS 10.

·      First and third party insurance cell captives do not meet the definition of asset silos in terms of IFRS 10 and as such do not qualify for consolidation. The insurance policies in the Bank's first party cells insure the risk arising from the Bank's defined benefit plans. As such those insurance contracts are now considered to be plan assets in terms of IAS 19 and are accounted for as such. The excess profit in the cell captive is recognised as a financial asset in accounts receivable. The third party cell captives previously consolidated by the Bank are now treated as profit share arrangements and the income arising from the arrangements is included in other non-interest revenue.

IAS 19

Amendments to IAS 19 require that all actuarial gains and losses in respect of defined benefit post-employment plans are recognised in other comprehensive income. In addition, the standard no longer requires the expected return on plan assets to be recognised in profit or loss, rather a net interest income/expense be recognised on the net asset or liability. All other remeasurements relating to plan assets are also recognised in other comprehensive income.

Loans to associates

In accordance with IAS 28, the Bank's net investment in associates and joint ventures includes loans for which settlement is neither planned nor likely in the foreseeable future. The Bank historically included these loans as part of investment in associates and joint ventures and reflected these on the statement of financial position.

Given the underlying debt nature of these loans and developing industry practice, the Bank has decided to present these as advances. The loans will continue to form part of the Bank's net investment in associates or joint ventures for purposes of determining the share of losses of the investee attributable to the Bank and for impairment.

The change in presentation had no impact on the net asset value of the Bank, only on the classification of items on the statement of financial position.

Fair value income - funding cost

The Bank has elected to present interest expense incurred on liabilities that fund the activities that generate fair value income as fair value income.

The change in presentation has had no impact on the net asset value of the Bank only on the classification of items in the income statement.



 

Restated condensed income statement
for the six months ended 31 December 2012 - IFRS

R million

As

 previously

 reported

IFRS 10

 and 11

IAS 19

Reclass-

ification

of loans to

associates

and fair value

income-

funding cost

Restated

Net interest income before impairment of advances

7 357

(11)

 -

3 357

10 703

Impairment of advances

(2 061)

 -

 -

 -

(2 061)

Net interest income after impairment of advances

5 296

(11)

 -

3 357

8 642

Non-interest income

16 023

(139)

 -

 (3 344)

12 540

Income from operations

21 319

(150)

 -

13

21 182

Operating expenses

(13 854)

113

 7

-

(13 734)

Income before tax

7 465

(37)

 7

13

7 448

Indirect tax

(429)

 -

 -

 -

(429)

Profit before tax

7 036

(37)

 7

13

7 019

Income tax expense

(1 431)

7

 -

 -

(1 424)

Profit for the period

5 605

(30)

 7

13

5 595

Attributable to:






Ordinary equityholders

5 505

(30)

 7

13

5 495

NCNR preference shareholders

100

 -

 -

 -

100

Profit for the period

5 605

(30)

 7

13

5 595

 



 

Restated consolidated statement of other comprehensive income
for the six months ended 31 December 2012 - IFRS

R million

 

As

 previously

 reported

IFRS 10

 and 11

IAS 19

Reclass-

ification

of loans to

associates

and fair value

income-

funding cost

Restated

 

Profit for the period

 

5 605

(30)

 7

13

5 595

 

Items that may subsequently be reclassified to profit or loss








Cash flow hedges

 

 (89)

 -

 -

 -

 (89)

 

Losses arising during the period

 

(451)

 -

 -

 -

(451)

 

Reclassification adjustments for amounts included in profit or loss

 

 328

 -

 -

 -

328

 

Deferred income tax

 

34

 -

 -

 -

34

 

Available-for-sale financial assets

 

349

-

 -

 -

349

 

Gains arising during the period

 

479

-

 -

 -

479

 

Reclassification adjustments for amounts included in profit or loss

 

-

 -

 -

 -

-

 

Deferred income tax

 

(130)

 -

 -

-

(130)

 

Exchange differences on translating
foreign operations

 

75

-

 -

 -

75

 

Gains arising during the period

 

75

-

 -

 -

75

 

 

 

 

 

 

 

 

 

Items that may not be reclassified to
profit or loss








Actuarial losses on defined benefit pension plans

 

 -

 -

(23)

 -

(23)

 

Losses arising during the period

 

 -

 -

 (32)

 -

 (32)

 

Deferred income tax relating to items that will not be reclassified

 

 -

 -

9

 -

9

 

 

 

 

 

 

 

 

 

Other comprehensive income for the period

 

335

-

(23)

-

312

 

Total comprehensive income for the period

 

5 940

(30)

(16)

13

5 907

 

Attributable to:








Ordinary equityholders

 

5 840

(30)

(16)

 13

5 807

 

NCNR preference shareholders

 

100

 -

 -

 -

100

 

Total comprehensive income for the period

 

5 940

(30)

(16)

13

5 907

 

 



 

Restated condensed statement of financial position at 31 December 2012 - IFRS

R million

As

 previously

 reported

IFRS 10

 and 11

IAS 19

Reclass-

ification

of loans to

 associates

Restated

ASSETS






Cash and cash equivalents

44 743

-

 -

 -

44 743

Derivative financial instruments

55 907

-

 -

 -

55 907

Commodities

 8 003

 -

 -

 -

 8 003

Accounts receivable

3 398

21

 -

-

3 419

Current tax asset

500

(3)

 -

 -

497

Advances

515 880

371

 -

-

516 251

Amounts due by holding company
and fellow subsidiary companies

21 540

(273)

 -

-

21 267

Investment securities and other investments

79 186

(86)

 -

 -

79 100

Investments in associates and joint ventures

409

-

 -

-

409

Property and equipment

9 928

-

 -

 -

9 928

Intangible assets

152

 -

 -

 -

152

Post-employment benefit asset

3 127

(3 127)

-

 -

 -

Total assets

742 773

(3 097)

-

 -

739 676

EQUITY AND LIABILITIES






Liabilities






Short trading positions

9 184

 -

 -

 -

9 184

Derivative financial instruments

58 209

 -

 -

 -

58 209

Creditors and accruals

6 533

(96)

 -

 -

6 437

Deposits

586 639

27

 -

 -

586 666

Provisions

222

 -

 -

 -

222

Employee liabilities

7 701

(2 522)

550

 -

5 729

Other liabilities

1 042

-

 -

 -

1 042

Amounts due to holding company and
fellow subsidiary companies

13 214

(56)

 -

 -

13 158

Deferred income tax liability

567

(288)

 -

 -

279

Tier 2 liabilities

7 642

 -

 -

 -

7 642

Total liabilities

690 953

(2 935)

550

 -

688 568

Equity






Ordinary shares

4

 -

 -

 -

4

Share premium

15 304

-

 -

 -

15 304

Reserves

33 512

(162)

(550)

 -

32 800

Capital and reserves attributable to ordinary equityholders

48 820

(162)

(550)

 -

48 108

NCNR preference shareholders

3 000

 -

 -

 -

3 000

Total equity

51 820

(162)

(550)

 -

51 108

Total equity and liabilities

742 773

(3 097)

-

 -

739 676

 



 

Restated condensed income statement for the year ended 30 June 2013 - IFRS

R million

As

 previously

 reported

IFRS 10

 and 11

IAS 19

Reclassifi-cation

of loans to

associates

and fair value

income-

funding cost

Restated

Net interest income before impairment of advances

15 466

(22)

 -

6 239

21 683

Impairment of advances

(4 441)

-

 -

-

(4 441)

Net interest income after impairment of advances

11 025

 (22)

 -

6 239

17 242

Non-interest income

30 346

16

 -

(6 239)

24 123

Income from operations

41 371

(6)

 -

-

41 365

Operating expenses

(26 928)

240

 15

 -

(26 673)

Income before tax

14 443

234

 15

 -

14 692

Indirect tax

(579)

 -

 -

 -

(579)

Profit before tax

13 864

234

 15

 -

14 113

Income tax expense

(3 071)

(64)

 -

 -

(3 135)

Profit for the year

10 793

170

 15

 -

10 978

Attributable to:






Ordinary equityholders

10 597

170

 15

 -

10 782

NCNR preference shareholders

196

 -

 -

 -

196

Profit for the year

10 793

170

 15

 -

10 978

 



 

Restated condensed statement of other comprehensive income
for the year ended 30 June 2013 - IFRS

 

R million

 

As

 previously

 reported

IFRS 10

 and 11

IAS 19

Reclass-

ification

of loans to

associates

and fair value

income-

funding cost

Restated

 

Profit for the year

 

10 793

170

 15

 -

10 978

 

Items that may subsequently be reclassified to profit or loss








Cash flow hedges

 

 853

 -

 -

 -

 853

 

Gains arising during the year

 

 417

 -

 -

 -

 417

 

Reclassification adjustments for amounts included in profit or loss

 

 768

 -

 -

 -

 768

 

Deferred income tax

 

 (332)

 -

 -

 -

 (332)

 

Available-for-sale financial assets

 

(117)

 -

 -

 -

(117)

 

Losses arising during the year

 

(134)

 -

 -

 -

(134)

 

Reclassification adjustments for amounts included in profit or loss

 

(32)

 -

 -

 -

(32)

 

Deferred income tax

 

49

 -

 -

 -

49

 

Exchange differences on translating
foreign operations

 

240

 -

 -

 -

240

 

Gains arising during the year

 

240

 -

 -

 -

240

 

 

 

 

 

 

 

 

 

Items that may not be reclassified to profit or loss








Actuarial gains on defined benefit pension plans

 

 -

 -

 22

 -

 22

 

Gains arising during the year

 

 -

 -

 30

 -

 30

 

Deferred income tax relating to items that will not be reclassified

 

 -

 -

 (8)

 - 

 (8)

 

 

 

 

 

 


 

 

Other comprehensive income
for the year

 

976

-

 22

 -

998

 

Total comprehensive income
for the year

 

11 769

170

 37

 -

11 976

 

Attributable to:








Ordinary equityholders

 

11 573

170

 37

 -

11 780

 

NCNR preference shareholders

 

196

 -

 -

 -

196

 

Total comprehensive income
for the year

 

11 769

170

 37

 -

11 976

 

 



 

Restated condensed statement of financial position at 30 June 2013 - IFRS

R million

As

 previously

 reported

IFRS 10

 and 11

IAS 19

Reclass-

ification

of loans to

 associates

Restated

ASSETS






Cash and cash equivalents

42 296

 -

 -

 -

42 296

Derivative financial instruments

51 755

 -

 -

 -

51 755

Commodities

 6 016

 -

 -

 -

 6 016

Accounts receivable

4 564

10

 -

 -

4 574

Current tax asset

144

(4)

 -

 -

140

Advances

548 226

355

 -

 -

548 581

Amounts due by holding company and
fellow subsidiary companies

20 882

(254)

 -

-

20 628

Investment securities and other investments

95 025

(64)

 -

 -

94 961

Investments in subsidiary companies

5

 -

 -

-

5

Investments in associates and joint ventures

44

-

 -

 -

44

Property and equipment

10 421

-

 -

 -

10 421

Intangible assets

154

 -

 -

 -

154

Post-employment benefit asset

2 995

(2 995)

 -

 -

 -

Total assets

782 527

(2 952)

 -

 -

779 575

EQUITY AND LIABILITIES






Liabilities






Short trading positions

2 923

 -

 -

 -

2 923

Derivative financial instruments

52 940

-

 -

 -

52 940

Creditors and accruals

8 935

(15)

 -

 -

8 920

Deposits

629 842

 30

 -

 -

629 872

Provisions

246

 -

 -

 -

246

Employee liabilities

9 239

(2 545)

308

 -

7 002

Other liabilities

1 062

-

 -

 -

1 062

Amounts due to holding company and
fellow subsidiary companies

14 586

(58)

 -

 -

14 528

Deferred income tax liability

250

(200)

 -

 -

50

Tier 2 liabilities

7 625

 -

 -

 -

7 625

Total liabilities

727 648

(2 788)

308

 -

725 168

Equity






Ordinary shares

4

 -

 -

 -

4

Share premium

15 304

 -

 -

 -

15 304

Reserves

36 571

(164)

(308)

 -

36 099

Capital and reserves attributable to ordinary equityholders

51 879

(164)

(308)

 -

51 407

NCNR preference shareholders

3 000

 -

 -

 -

3 000

Total equity

54 879

(164)

(308)

 -

54 407

Total equity and liabilities

782 527

(2 952)

-

 -

779 575

 

PLEASE REFER TO THE ATTACHED ANALYSIS OF FINANCIAL RESULTS FOR THE SIX MONTHS ENDED
31 DECEMBER 2013 (PDF) FOR ABRIDGED FINANCIALS FOR FIRSTRAND BANK LIMITED, A DETAILED ANALYSIS OF FINANCIAL RESULTS, SEGMENTAL REPORTING AND BALANCE SHEET ANALYSIS (INCLUDING INFORMATION ON THE BANK'S CAPITAL AND FUNDING POSITION AND CREDIT PORTFOLIOS).

THE ABRIDGED CONSOLIDATED INTERIM FINANCIAL RESULTS FOR
FIRSTRAND BANK LIMITED GROUP ARE ALSO ATTACHED.

 

http://www.rns-pdf.londonstockexchange.com/rns/5057D_-2014-3-28.pdf

 

http://www.rns-pdf.londonstockexchange.com/rns/5057D_1-2014-3-28.pdf

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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