Sep 30, 2016 - Interest expense. =N'000. Savings Accounts. 17,627,359.97. Term Deposits. 1,028,644,627.15. On-Lending Fa
FORTIS MICROFINANCE BANK PLC RC 695895
MANAGEMENT ACCOUNT 30TH SEPTEMBER 2016
FORTIS MICROFINANCE BANK PLC ANNUAL FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30TH SEPTEMBER 2016
Contents
Page
Statement of Financial Position
3
Statement of Comprehensive Income
4
Statement of Changes in Equity
5
Statement of Cash Flows
6
Notes to the Financial Statements
7
FORTIS MICROFINANCE BANK PLC STATEMENT OF FINANCIAL POSITION AS AT 30TH SEPTEMBER, 2016 SEPT. 2016 =N=
SEPT. 2015 =N=
17 18 19 20 21 22
1,748,790,142 16,085,564,377 535,000,000 228,990,688 87,627,775 1,268,994,903 640,000,000 20,594,967,886
1,865,393,541 13,639,831,339 650,000,000 177,787,534 66,785,622 1,069,135,699 640,000,000 18,108,933,736
24 25 26 27 28 29
9,638,692,039 640,000,000 4,625,769,460 456,089,118 38,433,184 1,106,076,884 16,505,060,685
10,246,245,543 1,822,000,000 2,373,512,279 504,934,570 38,485,555 658,436,541 15,643,614,488
30
1,143,378,834 374,048,653 909,987,325 76,154,841 442,958,714 1,143,378,834
815,045,500 750,090,337 69,578,922 784,889,170 45,715,319
4,089,907,201 20,594,967,886
2,465,319,248 18,108,933,736
Notes ASSETS Assets Cash and cash equivalents Loan and advances to customers Investment securities Property, plant and equipment Intangible assets Other assets Non current Assets held for sale Total assets
Current liabilities Deposits from customers Deposits for shares On-lending facilities Current income tax liabilities Deferred tax Other liabilities Total liabilities Equity Share capital Share premium Statutory reserve Regulatory risk reserve Retained earnings Bonus issue
30d. 30e. 30c. 30f.
Total equity Total equity and liabilities
_________________________ TIKO OKOYE - Managing Director
_________________________ CFO PAULI ISIGUZO - Chief Financial Officer
The notes form an integral part of these financial statements
2
FORTIS MICROFINANCE BANK PLC STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED 30TH SEPTEMBER, 2016
Notes
SEPT. 2016 =N=
SEPT. 2015 N
Interest income
7
2,651,731,717
1,836,286,968
Interest expenses Net interest income
8
(1,665,552,261) 986,179,456
(1,291,890,473) 544,396,495
Loan impairment charges
9
(1,110,558)
(8,498,796.00)
985,068,899
Net interest income after loan impairment charges Fee and commission income
10
Fee and commisssion expense
11
Net fee commission income Other operating income
12
Other income Total operating income
391,567,841 (3,257,450)
535,897,699 685,579,862 (19,128,193.56)
388,310,391
666,451,669
19,623,673
17,566,758
407,934,063
684,018,427
1,393,002,962
1,219,916,125
Personnel expenses
13
(330,460,381)
(335,474,423)
General and administrative expenses Depreciation and amortisation Total expenses
14
(429,476,441) (30,594,901) (790,531,722)
(307,669,018) (54,135,802) (697,279,243)
602,471,240 (180,741,372)
522,636,882 (156,791,065)
421,729,868
365,845,817
421,729,868
365,845,817
0.18
0.22
Profit before income tax Income tax expenses
15
Profit for the year Other compreehensive income: Income tax relating to component of other comprehensive income Other comprehensive income for the year, net of tax Total comprehensive income for the year Earnings per share
The notes form an integral part of these financial statements
3
FORTIS MICROFINANCE BANK PLC STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30TH SEPTEMBER 2016 Sept 2016 N
Dec 2015 N
Cash flow from operating activities Profit for the period Adjustments for: Depreciation of property and equipment Amortisation of intangibles Adjustment- Defered tax Impairment of financial assets Income tax expenses Changes in: Loan and advances to customers Other assets Deposits from banks Deposits from customers Deposit for shares Regulatory Reserves Other liabilities
421,729,868
583,703,900
23,489,946 7,104,955 1,110,558 180,741,372
32,759,708 12,406,689 (38,485,554) 49,182,139 298,817,216
634,176,698
938,384,097
853,345,387 (3,890,695,436)
(2,231,762,262) (24,740,182) 118,933,126 448,305,545 (6,575,919) (114,781,838) (1,810,621,530)
Interest received Interest paid
2,651,731,717 (1,665,552,261) 986,179,456
2,804,744,065 (1,786,419,429) 1,018,324,636
Tax paid Net cash from/(used in) operating activities
(42,700,000) (3,299,218,738)
(684,496,630) (1,556,734,063)
Cash flows from investing activities Purchase of property, plant & equipment Purchase of intangible software Purchase of investments Disposal of investments Net cash from/(used in) investing activities
(53,524,517) (20,618,250) (535,000,000) 650,000,000 40,857,233
(19,784,670) (20,136,408) (650,000,000) 699,999,947 10,078,869
Cash flows from financing activities Shares issued Proceeds from On-lending facilities Net cash from / (used in) finaning activities Net increase / decrease in cash & cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year
(2,167,052,223) (388,119,250) (609,876,600) (396,992,752) (1,182,000,000)
985,000,002 434,794,775 1,419,794,777
2,739,716,794 2,739,716,794
(1,838,566,728)
1,193,061,600
3,587,356,870 1,748,790,142
2,394,295,270 3,587,356,870
15
FORTIS MICROFINANCE BANK PLC
Statement of changes in equity 30TH SEPTEMBER, 2016
Balance at 1 January 2016 Profit for the year Transfers for the year Issued during the year Dividends to equity holders Balance at 30th Sept 2016
Share capital =N'000 815,045,500
328,333,334 1,143,378,834
Share premium =N'000 (282,618,015) 656,666,668 -
Regulatory risk reserve =N'000 76,154,841 76,154,841
Bonus Reserve =N'000 860,760,819 282,618,015 1,143,378,834
Statutory reserve =N'000 804,554,858 105,432,466.92 909,987,325
Retained earnings =N'000 126,661,313 421,729,868 (105,432,466.92) 442,958,714
Total =N'000 2,683,177,331 421,729,868 985,000,002 4,089,907,201
5
7
Interest income
Placements Loans and advances Other financial instruments
SEPT. 2016 =N'000 59,251,808 2,592,479,910 2,651,731,717
8
Interest expense Savings Accounts Term Deposits On-Lending Facilities
=N'000 17,627,359.97 1,028,644,627.15 619,280,273.74 1,665,552,260.86
9
Loan impairment charges =N'000 Collective impairment Specific impairment Amount written off during the year as uncollectible
40,754 1,069,804 1,110,558
10
Fee and commisssion =N'000 Commission on turnover Commission on managers' cheque Other commissions Fees
24,522,521.00 62,390.00 5,083,881.04 361,899,048.64 391,567,840.68
11
Fee and commisssion expenses =N'000 Fee and commission expense
3,257,450 3,257,450
6
12
Other operating income =N'000 Other banking income
19,623,673 19,623,673
13
Personnel Expenses =N'000 Salaries and wages Pension contribution (Employer) Other related staff expenses
294,425,582.42 3,678,010.22 32,356,788.61 330,460,381.25
14
Other administrative expenses Rent and rate Repair and maintenance Transport expenses Diesel and Fuel cost Bad Debt Written Off Directors emoluments Professional fee/expenses Share capital increase expenses Other administrative expenses
=N'000 48,595,622.77 13,700,996.11 11,206,364.00 30,787,369.65 11,611,469.11 21,162,678.34 54,676,603.83 5,492,875.00 232,242,461.70 429,476,440.51
7
16
Earnings per share Basic earnings per share Basic earnings per share of N0.46kobo is based on the profit attributable to ordinary shareholders of 2,286,757,668 Profit attributable to ordinary shareholders =N'000 Profit for the period
421,729,868
Profit attributable to ordinary shareholders
421,729,868
Weighted average number of ordinary shares Issued ordinary shares at 1 January Effect of share options exercised Weighted average number of ordinary shares at 31st May
=N'000 1,630,091,000 656,666,668 2,286,757,668
8
17
Cash and cash equivalents =N'000 Cash in vault, tills and teller safe Current account with other Banks Fixed deposits with other banks Other Cash Items
42,273,058.70 680,309,991.87 1,026,207,091.72 1,748,790,142.29
18
Loans and advances =N'000 Loan and advances to customers Staff related loans Other loans and advnaces
15,830,600,175.81 327,863,207.92 204,451,583.57
Impairment - Specific Impairment - collective
16,362,914,967.30 (121,949,652) (155,400,938) 16,085,564,377.44
19
Investment securities =N'000 Held to maturity Treasury bills
535,000,000 535,000,000
9
20 Property, plant and equipment
Cost 1-January-2016
Cost
Freehold buildings N' 000
Plant and Machinery N' 000
Computer equipment N' 000
Office equipment N' 000
109,234,717
51,596,690
81,049,359
56,897,380
Additions
0
10,351,269
14,470,073
3,974,475
Disposals
109,234,717
61,947,959
95,519,432
60,871,855
1-January-2016
13,942,707
44,086,972
43,625,544
33,368,426
Depreciation Disposals
2,679,148 46,766,120
7,784,083 51,409,627
4,119,709
30 September, 2016
1,429,380 15,372,087
37,488,135
Netbook value 30 September, 2016
93,862,630
15,181,839
44,109,805
31 December 2015
95,292,010
7,509,717
37,423,815
30 September, 2016
Motor vehicles
Furniture and fittings
N' 000 213,727,305
Total N' 000
38,598,902
551,104,353
3,197,800
53,524,517
235,258,205
41,796,702
604,628,870
195,486,855
21,637,732
352,148,236
201,452,558
1,511,923 23,149,655
23,489,946 375,638,182
23,286,665
33,805,648
18,647,047
228,990,688
23,528,954
18,240,450
16,961,171
198,956,117
21,530,900 -
-
Accumulated depreciation
5,965,703 -
-
10
21
Intangible assets
Cost Balance at 1 January 2016 Addition Disposal Balance at 30 September, 2016
=N'000 Purchased software 124,066,887 20,618,250 144,685,137
Amortisation and impairment losses Balance at 1 January 2016 Amortisation for the period Reclassification
49,952,407 7,104,955
Balance at 30 September, 2016
57,057,362
Carrying amounts Balance at 30 September, 2016 Balance at 31 December 2015
87,627,775 74,114,480
11
22 Other assets =N'000 Prepayment Account receivables Others Non current asset held for sale
411,594,735.53 716,799,780.80 140,600,386.77 640,000,000.00 1,908,994,903.10
The non current asset held for sale represent properties surrendered by directors valued N640,000,000, in cosideration for the bank"s shares. The properties are to be sold and the proceeds will be utilised by the bank.CBN will only approve this as capital injection after the sale of those properties.
12
23 Deposits from banks =N'000 Deposits from banks
0 0
24 Deposits from customers =N'000 Current accounts Saving accounts Term deposits
833,053,942.63 508,640,394.69 8,296,997,701.75 9,638,692,039.07
All term deposits from customers are at fixed interest rates. 25 Deposits for shares
640,000,000
This represents various deposits by investors for the shares of the company and the fair value of properties (Building) transferred to fortis microfinance bank plc in consideration for shares of the company. The building is valued at N640,000,000 26 On-lending facilities =N'000 On-lending facilities
4,625,769,460.07 4,625,769,460.07
27 Taxation =N'000 Balance brought forward Charge for the period
318,047,746.00 180,741,371.87
Add under provision in previous years Taxation Less payment for the period
498,789,117.87 498,789,117.87 42,700,000.00 456,089,117.87
13
28
Deferred tax assets and liabilities Deferred tax assets and liabilities are attributed to the following: Movement in temporary differences during the year
Plant and equipment
Beginning =N'000 38,433,184 38,433,184
Plant and equipment
Plant and equipment
SEPTEMBER, 2016 Profit or loss =N'000 -
End of year =N'000 38,433,184 38,433,184
Beginning =N'000 38,485,555 38,485,555
2015 Profit or loss =N'000 52,371.00 52,371.00
End of year =N'000 38,433,184 38,433,184
Beginning 37,600,054
2014 Profit or loss (885,501)
End of year 38,485,555
37,600,054
(885,501)
38,485,555
14
29
Other liabilities =N'000 Other taxes payable Sundry deposit Teller overage Other payables Account payable Managers cheque
122,841,233.37 125,864,196.45 2,002,362.65 28,872,693.63 727,925,597.57 98,570,800.00 1,106,076,883.67
30
Capital and reserve Share capital The holders of ordinary shares are entitled to receive dividend from time to time and are entitled to vote at meetings of the banks.
(a)
Authorised
=N'000
5,000,000,000 Ordinary shares of 50k each 2,500,000,000 2,500,000,000
(b)
Share capital
=N'000
2,286,757,668 Ordinary shares of 50k each
1,143,378,834 1,143,378,834
The movement on the issued and fully paid up share capital account during the year was as follows: =N'000 Balance, beginning of year 815,045,500 Increase in the year 328,333,334 Bonus share capitalised Balance, end of period
1,143,378,834
The movement on the share premium during the year was as follows: Balance, beginning of year Increase in the year Bonus share capitalised Balance, end of period
-
=N'000 656,666,668.00 282,618,015.00 374,048,653.00
15
(c)
Retained earnings Balance, beginning of year Increase in the year Adjusment Transfer for the year Balance, end of period
(d)
Balance, end of period
442,958,714
=N'000 804,554,858 105,432,466.92 909,987,325
Regulatory risk reserve Balance, beginning of year Increase in the year Balance, end of period
(f)
(105,432,467)
Statutory reserve Balance, beginning of year Increase in the year
(e)
=N'000 126,661,313 421,729,868
=N'000 76,154,841 0 76,154,841
Bonus issue =N'000 Balance, beginning of year Increase in the year Bonus share capitalised Balance, end of period
860,760,819.00 282,618,015.00 1,143,378,834.00
16
