SBN HOLDINGS LIMITED Annual Report 2022
NOTES TO THE ANNUAL FINANCIAL STATEMENTS continued
80
5.
Loans and advances continued
Changes in gross exposures relating to changes in ECL (group)
The below is an explanation of significant changes in the gross carrying amount on financial instruments used to determine the
above changes in ECL:
■The ECL on new exposures raised of N$55.1 million (2021: N$38.3 million) primarily relates to the growth in the gross
carrying amount of:
- home services of N$652 million (2021: N$958 million)
- vehicle and asset finance of N$1.1 billion (2021: N$1.26 billion)
- other loans and advances of N$500 million (2021: N$696 million)
corporate lending of N$4.45 billion (2021: N$1.2 billion)
■ The decrease in ECL due to impaired accounts written off of N$469 million (2021: N$123 million) resulted in an equal
decrease to the gross carrying amount of loans and advances as exposures are fully provided for before being written off.
Modifications on loans and advances measured at amortised cost
The gross carrying amount for modifications during the reporting year that resulted in no economic gain or loss (i.e. no net
modification gain or loss) is N$899 million (2021: N$1.5 billion). Included in this amount is a total exposure for CHNW and BCB
clients amounting to N$862 million and for CIB clients amounting to N$37 million that underwent restructuring and covenant
relaxation.
6.
Other assets
GROUP
COMPANY
2022
N$'000
2021
Restated¹
N$'000
2022
N$'000
2021
N$'000
Financial assets²
Trading settlement assets
239 298
96 564
6 346
37 763
5 174
19 081
Other debtors
234 124
77 483
6 346
37 763
Non-financial assets
201 998
221 409
Prepayments
32 911
27 157
Accrued income
17 959
Prepaid staff employee benefit costs
141 056
Items in the course of collection
10 072
14 241
159 376
20 635
Total
441 296
317 973
6 346
37 763
1 Refer to the restatement narrative included in the accounting policy elections and restatements section for further information.
2 Due to the short-term nature of these assets and historical experience, other assets - bar prepaid staff loans - are regarded as having a low PD. Therefore,
the ECL has been assessed to be insignificant. Prepaid staff loans have a low probability of defaults due to the employment relationships and debit order
deductions in place.
7.
Interest in subsidiaries
Interest in subsidiary companies (note 7.1)
Total
7.1
Interest in subsidiary companies
Shares at cost
Total
Further information about subsidiaries is
disclosed in note 40 and Annexure A.
SBN HOLDINGS LIMITED
Annual report 2022
GROUP
2022
N$'000
2021
N$'000
2022
N$'000
COMPANY
2021
N$'000
921 986
921 986
921 986
921 986
GROUP
COMPANY
2022
N$'000
2021
N$'000
2022
N$'000
2021
N$'000
921 986
921 986
921 986
921 986
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