SBN HOLDINGS LIMITED Annual Report 2022
ANNEXURE A SUBSIDIARY continued
124
SBN HOLDINGS LIMITED
Annual report 2022
125
ANNEXUREB - RISK AND CAPITAL MANAGEMENT
Non-controlling interests (NCI)
Set out below is summarised financial information for the subsidiary that has NCI that are material to the group. The amounts disclosed
are before inter-company eliminations.
Summarised statement of financial position
Current assets
Current liabilities
Current net assets
Non-current assets
Non-current liabilities
Non-current net assets
Net assets
Accumulated NCI
Summarised income statement
Fee and commission revenue
Fee and commission expense
Other revenue
Total comprehensive income
Profit/(loss) allocated to NCI
Summarised statement of cash flows
Cash flows from operating activities
Mobicash Payment
Solutions (Proprietary)
Limited
2022
N$'000
2021
N$'000
37 649
36 251
(20 307)
(18 509)
17 342
17 742
6 435
5 645
6 435
5 645
23 777
23 387
15 530
14 853
(30 511)
60 737
48 218
(37 271)
8 295
12 276
1 379
677
1 676
823
10 685
(10 434)
(2 051)
(4 876)
5 809
Cash flows from investing activities
Cash flows from financing activities
Net increase/(decrease) in cash and cash equivalents
(12 485)
Overview
Capital management
The group's capital management function is designed to ensure
that regulatory requirements are met at all times and that the
group and its principal subsidiaries are capitalised in line with the
group's risk appetite and target ratios, both of which are approved
by the board.
It further aims to facilitate the allocation and use of capital,
such that it generates a return that appropriately compensates
shareholders for the risks incurred. Capital adequacy is actively
managed and forms a key component of the group's forecasting
process. The capital plan is tested under a range of stress
scenarios as part of the group's annual internal capital adequacy
assessment process (ICAAP) and recovery plan.
The capital management function is governed primarily by
the management level subcommittee that oversees the risks
associated with capital management, namely the asset and
liability committee (ALCO). The principal governance documents
are the capital management governance framework and the
model risk governance framework.
Risk management
The group's activities give rise to various financial as well as
insurance risks. Financial risks are categorised into credit, funding
and liquidity and market risk.
The group's approach to managing risk and capital is set out in
the group's risk, compliance and capital management (RCCM)
governance framework approved by the group risk and capital
management committee (GRCMC).
Climate-related financial risks
Standard Bank Namibia recognises the immense scale of
the present and future expected environmental, social and
economic impacts of climate change. Exposure to the risks
associated with climate change arise for the company both in
respect of its own activities and operations, but more materially
through the transmission of climate risk drivers into credit,
market, reputational and other risk exposures from the lending
to, investing in and otherwise transacting with clients and
counterparties. Two distinct climate risk drivers are recognised as
primary sources of these risks for Standard Bank Namibia.
Firstly, the risk of financial loss arising through increasing severity
and frequency of physical climate risk drivers. Such drivers may
be more frequent and extreme climate change related weather
events such as storms, wildfires, and other physical hazards. Or
such drivers may be more chronic longer term changes in climate,
such as drought, rising sea levels and average temperature rises.
Secondly, the risk of financial loss arising through transition
risk drivers, being changes associated with microeconomic
(individual and corporate level) and macroeconomic (economy
and country level) adjustments made in transitioning to a lower
carbon emissions economy and business operating model. Such
drivers include climate related changes in policies, legislation
and regulations, changes due to technology improvements that
support transition to a lower carbon economy, changes in market
demand for products and services that support the transition,
and reputational risks associated with changing customer
preferences. The current and future expected costs, including
for possible stranded assets that do not deliver an economic
return because of changes associated with a transition to a lower
carbon economy, are higher for clients and counterparties of
the company that operate in sectors that are more vulnerable to
these transition risk drivers.
Physical risks
Acute physical risks such as more frequent and more intense
extreme weather events, pose a risk to Standard Bank Namibia's
own operations and those of its customers in sectors Standard
Bank Namibia has identified as being vulnerable, including
agriculture and others. Chronic physical risks such as rising
average temperatures and changing precipitation patterns over
the medium to long term, that lead to heat stress, droughts,
higher wildfire risks and water shortages, may impact Standard
Bank Namibia's clients in affected sectors including mining,
industrial, manufacturing and agriculture through water
shortages, labour productivity, economic output and occupational
health.View entire presentation