SBN HOLDINGS LIMITED Annual Report 2022
NOTES TO THE ANNUAL FINANCIAL STATEMENTS continued
100
22.
Contingent liabilities and commitments
22.1
Contingent liabilities
2022
N$'000
Letters of credit
134 412
GROUP
2021
N$'000
14 371
Guarantees
1 677 317
1 825 266
Unutilised borrowing facilities
2 981 232
2 251 174
Total
4 792 961
4 090 811
22.2
Capital commitments
Contractual capital expenditures
Total
COMPANY
2021
2022
N$'000
N$'000
GROUP
COMPANY
2022
N$'000
2021
N$'000
2022
N$'000
2021
N$'000
11 531
18 842
11 531
18 842
The expenditure relates to property and equipment and will be funded from internal resources.
22.3
Lease commitments
22.3.1
The future minimum payments under non-cancellable operating leases are as follows:
GROUP
COMPANY
2022
N$'000
2021
N$'000
2022
N$'000
2021
N$'000
Low value assets and short-term leases
Within one year
7 083
6 756
After one year but within five years
6 767
7 579
Total
13 850
14 335
22.4
Legal proceedings
Third-party claim
Standard Bank Namibia Ltd received a letter of complaint by a third-party, who is not a client of the bank, that relates to an
alleged N$60 million loss by the third-party as a result of the alleged unauthorised conduct of the bank's employee. The legal
department of the bank has investigated the matter in conjunction with external senior counsel and should legal action be
instituted against the bank in relation to this matter, it will rigorously defend the matter. The bank is comfortable that it has
reasonable prospects of success in defending the matter.
Other
In the ordinary course of business, the group is involved as a defendant in litigation, lawsuits and other proceedings.
Management recognises the inherent difficulty of predicting the outcome of defended legal proceedings. Nevertheless, based
on management's knowledge from investigation, analysis and after consulting with legal counsel, management believes that
there are no individual legal proceedings that are currently assessed as being 'likely to succeed and material' or 'unlikely to
succeed but material should they succeed. The group is also the defendant in some legal cases for which the group is fully
indemnified by external third parties, none of which are individually material. Management is accordingly satisfied that the
legal proceedings currently pending against the group should not have a material adverse effect on the group's consolidated
financial position and the directors are satisfied that the group has adequate insurance programmes and, where required in
terms of IFRS for claims that are probable, provisions in place to meet claims that may succeed.
23.
Interest income
24.
GROUP
2022
N$'000
SBN HOLDINGS LIMITED
Annual report 2022
COMPANY
2021
Restated¹
N$'000
2022
N$'000
2021
N$'000
Effective interest rate income on:
Financial investments
234 257
147 761
Loans and advances
2 070 344
1 724 680
Interest income on credit impaired financial assets
Total
101 552
92 818
2 406 153
1 965 259
Comprising:
Interest income on items measured at amortised cost
Interest income on items measured at FVOCI
2 171 896
234 257
1 817 498
147 761
1
Refer to the restatement narrative included in the accounting policy elections and restatements section for further information.
Interest expense
Interest on current accounts
Interest on savings and deposit accounts
Interest on lease liabilities
Interest on other interest-bearing liabilities²
Total
Comprising:
Interest expense on items measured at amortised cost
GROUP
COMPANY
2022
N$'000
2021
Restated¹
N$'000
2022
N$'000
2021
N$'000
48 144
29 117
122 251
78 569
1 173
3 655
789 783
624 606
961 351
735 947
961 351
735 947
1 Refer to the restatement narrative included in the accounting policy elections and restatements section for further information.
2 Includes interest expense charges relating to the JSE listed bonds detailed in note 15.
25.
Fee and commission revenue
GROUP
COMPANY
2022
N$'000
2021
N$'000
2022
N$'000
2021
N$'000
Account transaction fees
276 122
277 181
Card-based commission
279 383
241 456
Electronic banking fees
372 756
338 664
Foreign currency service fees
27 560
25 563
Documentation and administration fees
89 032
96 151
Custody fees
29 487
34 202
Trustees and executors' fees
6 705
6 353
Arrangement fees
16 743
25 151
Guarantees commission
17 470
19 788
Agent's commission fees
54 882
51 873
Other¹
Total
1 Other primarily comprises of fee and commission revenue earned on sundry services such as arrangement and agency fees as well as guarantee and
commitment commissions.
All fee and commission revenue reported above relates to financial assets or liabilities not carried at FVTPL for the group.
43 849
45 326
1 213 989
1 161 708
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