Annual Financial Statements 2020

22 22 ANNUAL FINANCIAL STATEMENTS DIRECTORS' REPORT CONTINUED STANDARD BANK NAMIBIA LIMITED Annual financial statements 2020 STATEMENT OF FINANCIAL POSITION as at 31 December 2020 23 Ownership At 31 December 2019, SBN Holdings Limited owned 99.9% of the issued share capital and the following directors each hold 100 shares: Mr H Maier Mr VJ Mungunda Adv N Bassingthwaighte Mrs B Rossouw Mr JL Muadinohamba Ms PM Nyandoro Mr IH Tjombonde The directors have no beneficial interest in the ordinary shares which are held on behalf of SBG. Directors The directors of the company during the year and to the date of this report are as follows: Name Executive directors Nationality Mr VJ Mungunda Namibian Mrs L du Plessis¹ Namibian Non-executive directors Mr H Maier (Chairperson) Namibian Adv N Bassingthwaighte Namibian Namibian South African Mrs MS Dax Mr AN Mangale² Mr JL Muadinohamba Ms PM Nyandoro Mrs B Rossouw Mr P Schlebusch Mr IH Tjombonde 1 Appointed 10 February 2020. 2 Appointed 9 November 2020. Company secretary Namibian Zimbabwean Namibian South African Namibian S Tjijorokisa, based at 1 Chasie Street, Kleine Kuppe, Windhoek, Namibia Debt officer Y Fourie, based at 1 Chasie Street, Kleine Kuppe, Windhoek, Namibia Interest in subsidiary The company owns 100% of the share capital of Standard Bank Namibia Nominees (Proprietary) Limited. Refer to Annexure A for further information on interest in subsidiary. Compliance with BID-2 The company's annual financial statements comply with the Bank of Namibia's (BON) Determination on Asset Classification, Suspension of Interest and Provisioning (BID-2) except for paragraph 10.(e) regarding when an asset must be classified as a 'loss'. The guidance received from BoN indicated that if an asset which is overdue for 360 days is well secured, legal action has commenced but it takes more than one year after judgement to realise the collateral then the asset must be classified as a loss and must be written-off within 90 days after being classified as such. IFRS 9.5.4.4 states that an entity shall directly reduce the gross carrying amount of a financial asset when the entity has no reasonable expectation of recovering a financial asset or contractual cash flows in its entirety or a portion thereof. The BID-2 requirement to write off an asset is if it takes more than one year after judgement to realise the collateral even though the asset is well secured, is not aligned with IFRS 9 which requires an entity to only write off if there is no reasonable expectation of recovery. Given the fact that the asset is well secured and there is reasonable expectation of recovery in terms of IFRS 9 it cannot be written off. Covid-19 The company has a three-phase approach to respond to the effects of the Covid-19 pandemic. The first phase was implemented to manage the immediate threat to the company's human element by putting response strategies in place to protect the health, safety and livelihoods of staff and their families and to promote a positive societal impact. During this phase, the company also placed focus on risk, capital and liquidity management in order to safeguard all stakeholders' interests which resulted in all capital and liquidity requirements remaining above the regulatory levels during the year. The company regularly engaged with BoN which resulted in a coordinated approach in dealing with the risks which Covid-19 has brought to the country's economy and banking system. The second phase encompasses the facilitation of the return to growth which requires the company's continued support to the real economy through its clients and surrounding communities whilst mitigating against an economic fallout. This phase involves providing support to clients to revive their business without causing heightened credit risk to the company in the future. Phase three is about the company working towards adapting to the current circumstances. The effects of the continued strain on the economy through trade restrictions are dynamically being evaluated by and addressed within the company through the identification of new business opportunities, cost-saving initiatives and the acceleration of the digital transformation and deliver the future-ready bank. Assets Cash and balances with the central bank Derivative assets Trading assets Pledged assets Financial investments Current tax asset Loans and advances Other assets Interest in subsidiary and joint venture Note(s) 2020 N$'000 2019 Restated¹ N$'000 12345 1 January 2019 Restated¹ N$'000 1 024 338 372 288 383 240 520 956 4 218 834 104 356 24 931 346 1 512 374 149 910 268 177 580 098 3.982 837 84 075 1 546 355 33 237 134 812 4 386 995 58 180 23 955 416 666 886 11 506 495 242 Property, equipment and right-of-use assets¹ Intangible assets¹ 6789 280 129 727 611 26 262 826 1 186 198 15 435 516 072 10 451 787 451 853 372 058 Deferred tax asset 14 294 624 224 971 33 309 509 35 234 826 17 468 31 678 155 Total assets Equity and liabilities Equity Ordinary share capital Ordinary share premium Reserves Liabilities Derivative liabilities Trading liabilities Deposits and current accounts Debt securities issued Provisions and other liabilities Deferred tax liability Total equity and liabilities 2 000 591 230 142 511 14 881 2 883 370 2 000 591 230 2 290 140 28 794 785 25 714 980 25 686 867 1 792 115 3 720 928 3 560 236 11 12 2 000 591 230 3 127 698 2 967 006 29 588 581 31 674 590 2 13 362 123 230 15 26 420 850 28 335 969 16 1 620 305 1 591 344 17 887 761 1 399 194 1 289 109 14 297 312 190 691 33 309 509 35 234 826 31 678 155 1 Refer to page 30 for information regarding the correction of the classification of property, equipment and right-of-use assets and intangible assets.

View entire presentation