Investor Presentaiton
44
ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS CONTINUED
6.
Loans and advances continued
Changes in gross exposures relating to changes in ECL
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$42.9 million (2019: N$23.1 million) primarily relates to the growth in gross carrying
amount of:
mortgage loans of N$928 million (2019: N$1.3 billion)
vehicle and asset finance of N$1.07 billion (2019: N$1.03 billion)
- other loans and advances of N$379 million (2019: N$1.2 billion).
⚫ The decrease in ECL due to impaired accounts written-off of N$116 million (2019: N$125 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.
⚫ The company policy is to transfer between stages using opening ECL balances based on the exposures' ECL stage at the
end of the reporting period. Therefore, the related gross carrying amount of the significant transfers (primary as a result of
Covid-19, however includes positive collection trends and strong performance observed in the latter part of 2020).
N$256 million that were in stages 2 and 3 were transferred to stage 1. In the prior year, the significant transfers were
mortgage loans with gross carrying amounts N$427 million that were in stage 2 and 3 were transferred to stage 1.
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$2.5 billion (2019: N$761 million).
This includes N$1.6 billion of client relief provided to PBB clients to assist with temporary liquidity constraints as a result of the
impact of Covid-19. CIB clients with exposure totalling N$94 million qualified for Covid-19 relief, including increased liquidity
facilities, loan restructuring, covenant relaxations and payment holidays.
7.
Other assets
Financial assets¹
Trading settlement assets
Other debtors
Non-financial assets
Prepayments
Items in the course of collection
Accrued income
8.
Interest in subsidiary and joint venture
8.1
Interest in subsidiary company
Shares at cost
Total
Further information on the subsidiary is disclosed in annexure A.
8.2
Interest in joint venture
Carrying value at the beginning of the year
Share of profit
Loss on derecognition
Amount transferred to interest-bearing loans
STANDARD BANK NAMIBIA LIMITED
Annual financial statements 2020
45
2020
N$
2019
N$
2
2
2
2
2020
N$'000
2019
N$'000
15 435
11 506
3 929
(1 604)
(13 831)
15 435
2020
N$'000
203 344
20192
N$'000
1 126 150
796 470
329 680
6 485
196 859
76 785
60 048
15 593
11 843
13 139
11 469
34 811
25 677
13 242
11 059
280 129
1 186 198
Carrying value at the end of the year
Comprising:
Cost of investments
Share of reserves
Carrying value at the end of the year
Amounts recognised in the income statement:
Share of profit
1 154
14 281
15 435
3 929
On 31 January 2020, Namclear (Proprietary) Limited converted to a non-profit organisation registered under section 21 of
the Namibian Companies Act. Accordingly, the company no longer applies the equity method of accounting to the investment.
The carrying amount of the investment was derecognised and N$13.8 million recognised as a loan receivable and has been
included in loans and advances. The remaining loss on derecognition of N$1.6 million has been recognised in profit or loss
in the current year.
Further information on the joint venture is disclosed in annexure B.
Properties in possession
Total²
1 Due to the short-term nature of these assets and historical experience, debtors are regarded as having a low probability of default. Therefore, the ECL
has been assessed to be insignificant.
2 The presentation of this note has been updated to show the split between financial assets and non-financial assets and to further show "prepayments",
"accrued income" and "properties in possesion" separately on the note. These were previously included as part of "Other debtors". There was no
change to total other assets.View entire presentation