SBN HOLDINGS LIMITED Annual Report 2022

112 35. 35.8 35.9 NOTES TO THE ANNUAL FINANCIAL STATEMENTS continued Related party disclosures continued Contributions to funds GROUP 2022 N$'000 2021 N$'000 Relationship Type Standard Bank Namibia Pension Fund Defined contribution plan Contributions 63 378 63 378 66 246 66 246 Transfer pricing arrangements for 2022 and 2021 The company entered into various transfer pricing agreements with other SBG subsidiaries. These agreements have all been entered into on an arm's length basis in accordance with the pricing principles contained in the Organisation for Economic Co-operation and Development Guidelines and relevant domestic legislation. The nature of the agreements are such that the related parties performing relevant functions, assuming relevant risks and owning relevant assets in the day-to-day business activities of the group and company, are compensated on an arm's length basis. The integrated business model, in relation to functional, risk and asset profile and in accordance with the nature of the agreement, resulted in payments being made by both SBSA and fellow subsidiaries during the 2022 and 2021 financial years. Related party year end balances SBN HOLDINGS LIMITED Annual report 2022 113 36. 36.1 Equity-linked transactions Share-based payments The group's share incentive schemes enable key management personnel and senior employees to benefit from the performance of Standard Bank Group Limited shares. Summary of the company's share incentive GROUP COMPANY 2022 N$'000 2021 N$'000 2022 N$'000 2021 N$'000 schemes and expenses recognised in staff costs: Deferred bonus schemes 5 509 4 344 Total expense recognised in staff costs 5 509 4 344 Summary of liabilities recognised in other liabilities: Deferred bonus schemes 9 515 5 206 Total liability recognised in other liabilities 9 515 5 206 GROUP 36.2 2022 N$'000 2021 N$'000 Relationship Receivables from related parties SBSA SBSA Stanbic Bank Botswana Limited Stanbic Bank Zambia Limited Stanbic Bank Kenya Limited SBSA SBSA Stanbic Bank Zimbabwe Limited Standard Bank (Mauritius) Limited Stanlib (Proprietary) Limited Purros Investments (Proprietary) Limited Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Sister company Type Trading assets Loans and advances Loans and advances Loans and advances Loans and advances Derivatives Other assets Other assets Other assets Other assets Other assets 23 190 1 545 004 1 932 415 1 173 261 35 1 173 50 41 052 62 373 6 931 5 820 90 90 36 33 23 4 183 1 593 409 2 030 523 The loans issued to subsidiaries and fellow subsidiaries are repayable on demand. Interest is charged based on the prevailing market rate. The loans are unsecured and the loans are fully performing. Derivatives are carried at fair value. Sundry receivables with subsidiaries and fellow subsidiaries are repayable on demand and attract no interest. All related party transactions were made on terms equivalent to those that prevail in arm's length transactions. Equity compensation plans The group has two equity compensation plans, namely the company Share Incentive Scheme (GSIS) and the Equity Growth Scheme (EGS). The GSIS, which is equity-settled, confers rights to employees to acquire ordinary shares at the value of the SBG share price at the date the option is granted. The EGS, which is cash-settled, was implemented in 2005 and represents appreciation rights allocated to employees. The eventual value of the right is effectively settled by the issue of shares equivalent in value to the value of the rights. 36.2.1 Equity-settled share-based payments Group Share Incentive Scheme A reconciliation of the movement of share options is detailed below: Options outstanding at beginning of the year Transferred in/(out) Options outstanding at the end of the year The weighted average share price for the year was ZAR161.11 (2021: ZAR131.30). Number of rights 2022 2021 195 6 250 (6055) 195 195 The following options granted to employees, including executive directors, had not been exercised at 31 December 2022: Number of ordinary shares 195 Option price 98.8 Weighted average price Option expiry year 98.8 Year to 31 December 2023 GROUP COMPANY 2022 N$'000 2021 N$'000 2022 N$'000 2021 N$'000 Relationship Туре Payables to related parties SBSA Deposits and current Stanbic Bank Botswana Limited Fellow subsidiary Fellow subsidiary Stanbic Bank Zambia Limited Standard Bank Angola, S.A. Fellow subsidiary Purros Investment (Proprietary) Limited Standard Bank Namibia SBSA Fellow subsidiary Employee share trust accounts Deposits and current accounts Deposits and current accounts Deposits and current accounts 1 242 229 1 290 132 48 26 12 19 222 12 20 Deposits and current accounts Deposits and current SBSA Subsidiary Fellow subsidiary Fellow subsidiary accounts 291 326 312 401 Derivatives 100 729 10 697 Other liabilities 9 261 11 217 Stanbic Bank Zimbabwe Limited 60 60 SBSA 253 757 101 181 Fellow subsidiary Other liabilities Fellow subsidiary Subordinated debt 1 606 115 1 413 345 Deposit and current accounts held with subsidiaries and fellow subsidiaries are repayable on demand. Interest is charged based on the prevailing market rate. Sundry payables with subsidiaries and fellow subsidiaries are repayable on demand and attract no interest.

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