Annual Financial Statements 2020

20 20 ANNUAL FINANCIAL STATEMENTS REPORT OF THE INDEPENDENT AUDITOR CONTINUED DIRECTORS' REPORT for the year ended 31 December 2020 STANDARD BANK NAMIBIA LIMITED Annual financial statements 2020 21 Other information The directors are responsible for the other information. The other information comprises the information included in the document titled "Standard Bank Namibia Limited Annual Financial Statements 2020" The other information does not include the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and we do not express an audit opinion or any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the directors for the financial statements The directors are responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards and the requirements of the Companies Act of Namibia, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. • Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Picunthouse Corp PricewaterhouseCoopers Registered Accountants and Auditors Chartered Accountants (Namibia) Per: Louis van der Riet Partner 344 Independence Avenue PO Box 1571 Windhoek Date: 24 March 2021 Review of activities Main business and operations Standard Bank Namibia Limited (Standard Bank Namibia or the company) is a Namibian registered commercial bank and its operations are confined to Namibia, where it has offices in all main centres and a head office in Windhoek. As a registered bank, it also offers safe custodianship through its 100% owned subsidiary company, Standard Bank Namibia Nominees (Proprietary) Limited. The company also offers an international banking service through its association with Standard Bank Group Limited (SBG), a company registered in the Republic of South Africa and dual listed on the JSE and NSX, with representation throughout Africa. These annual financial statements are the separate financial statements of Standard Bank Namibia. The company is exempted from the preparation of consolidated financial statements as the company is a wholly-owned subsidiary of SBN Holdings Limited, a Namibia-incorporated company which produces consolidated financial statements available for public use. Registered and business address 1 Chasie Street, Kleine Kuppe, Windhoek, Namibia Registration number 78/01799 County of incorporation Republic of Namibia Results for the period Net profit of the company was N$362 million (2019: N$559 million), after deducting taxation of N$184 million (2019: N$258 million). Events after the reporting period There were no events after the reporting date to report. Authorised and issued share capital The company's authorised share capital consisted of 6 000 000 ordinary shares of N$1 each, of which 2 000 000 have been issued. The authorised and issued share capital remained unchanged for the year. Borrowings The company's borrowings consist mainly of deposit and current accounts originated through banking operations and long-term financing. Property and equipment The company's property and equipment is disclosed in note 9 to the annual financial statements. Dividends A dividend of N$138 million (6 900 cents per share) in respect of the year ended 31 December 2019 was declared and paid in April 2020. On 4 March 2021, the directors have recommended that a final dividend of N$67.5 million (in respect of profits earned in the year ended 31 December 2019 3 374 cents per share) be declared in respect of profits earned in the year ended 31 December 2020.