Investor Presentaiton
70
70
ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS CONTINUED
35.
35.2
Post-employment benefits continued
Post-employment healthcare benefits continued
Sensitivity analysis
Assumption
Change in assumption
Healthcare cost inflation:
1% increase
1% decrease
Mortality rate
PA (90)-1
Discount rate
1% increase
1% decrease
36.
Related party transactions
36.1
Parent
% change in obligation
2020
36.2
2019
15.30
(12.50)
2.80
17.40
(14.00)
3.20
(12.00)
14.00
(17.10)
13.60
STANDARD BANK NAMIBIA LIMITED
71
Annual financial statements 2020
Standard Bank Namibia Limited is a subsidiary of SBN Holdings Limited.
Subsidiary and joint venture
Refer to note 8.1 and Annexure A for further disclosure on investment in subsidiary. Refer to note 8.2 and Annexure B for
further disclosure on investment in joint venture.
36.3 Key management personnel
Key management personnel has been defined as directors of the companies and executive management of Standard Bank
Namibia Limited. Non-executive directors are included in the definition of key management personnel as required by IFRS.
The definition of key management includes the close members of family of key management personnel and any entity over
which key management exercises control or joint control. Close members of family are those family members who may be
expected to influence, or be influenced by, that person in their dealings with Standard Bank Namibia Limited. They may include
the individual's domestic partner and children, the children of the person's domestic partner, and dependants of the individual
or the individual's domestic partner.
The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In
practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity
of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit
obligation calculated with the projected unit credit method at the end of the reporting year) has been applied as when
calculating the pension liability recognised within the statement of financial position.
Through its defined post-employment medical plan, the company is exposed to a number of risks, the most significant
of which are detailed below:
Changes in bond yields
Inflation risk
Life expectancy
A decrease in corporate bond yields will increase plan liabilities.
The company post-employment medical obligation is linked to inflation, and higher inflation
will lead to higher liabilities.
The company post-employment medical obligation is to provide benefits for the life of the
member, so an increase in life expectancy will result in an increase in the plan's liabilities.
Key management compensation
Salaries and other short-term benefits
Post-employment benefits
IFRS 2 value of share options and rights expensed
2020
N$'000
2019
N$'000
41 716
45 429
156
3 262
5 879
7 332
47 751
56 023
The transactions below are entered into in the normal course of business.
Loans and advances
Loans outstanding at beginning of the year
Change in key management structures
Net loans granted/(repaid) during the year
27 330
33 533
(1 331)
(1829)
4 121
(4 374)
30 119
27 330
Loans outstanding at end of the year
Interest income
Loans include mortgage loans, vehicle and asset finance and credit cards. No specific
impairments have been recognised in respect of loans granted to key management in the
current or prior year.
The mortgage loans and vehicle and asset finance are secured by the underlying assets.
All other loans are unsecured.
Deposit and current accounts
Deposits outstanding at beginning of the year
Change in key management structures
Net deposits (withdrawn)/received during the year
Deposits outstanding at end of the year
Interest paid on deposit and current accounts is in the ordinary course of business.
Deposits include current and savings accounts.
4 878
(1553)
2 165
(144)
(832)
2 857
2 493
4 878View entire presentation