SBN HOLDINGS LIMITED Annual Report 2022

88 15. 16. 16.1 NOTES TO THE ANNUAL FINANCIAL STATEMENTS continued SBN HOLDINGS LIMITED Annual report 2022 89 Debt securities issued Maturity date Carrying Notional Carrying Notional value¹ 2022 N$'000 value¹ 2022 N$'000 value¹ 2021 N$'000 value¹ 2021 N$'000 16. 16.2 Provisions and other liabilities continued Maturity analysis of discounted lease liabilities: GROUP Within 1 year N$'000 2022 From 1 to 5 years N$'000 2021 Within From 1 to 5 Total N$'000 1 year N$'000 years N$'000 Total N$'000 SBKN23 2023/10/26 304 041 300 000 302 757 300 000 GROUP SBNA24 2024/05/24 347 304 344 500 346 574 344 500 SBN02² 2024/08/02 318 133 314 000 316 926 314 000 Buildings 635 Branches 9 997 306 14 147 941 24 144 SBNG25 2025/07/05 203 792 200 000 SBNG27 2027/07/05 203 937 200 000 SBNA26 2026/05/25 156 851 155 500 156 451 155 500 ATM spacing and other Total 399 399 1 859 10 748 309 874 2 733 15 649 26 397 421 730 11 031 14 453 25 484 12 916 16 944 29 860 SBKN26 2026/07/13 301 633 296 500 300 071 296 500 SBN03² Subordinated debt 2026/08/03 2032/11/01 438 804 433 000 437 163 433 000 253 757 250 000 101 181 100 000 Maturity analysis of undiscounted contractual cash flows: 2 528 252 2 493 500 1961 123. 1 943 500 1 The difference between the carrying and notional value represents transaction costs included in the initial carrying amounts and accrued interest. 2 The debt securities are listed on the JSE. Within 1 year N$'000 2022 From 1 to 5 years N$'000 2021 Total N$'000 Within 1 year N$'000 From 1 to 5 years N$'000 Total N$'000 Provisions and other liabilities GROUP COMPANY GROUP Buildings Branches 543 12 505 292 14 605 2022 N$'000 2021 N$'000 2022 N$'000 2021 N$'000 ATM spacing and other Total 314 835 27 110 314 1 933 15 574 886 2 819 334 16 751 998 32 325 1 332 13 362 14 897 28 259 17 841 18 635 36 476 Financial liabilities 484 239 422 888 11 663 14 021 ECL for off-balance sheet exposures - guarantees and letters of credit 2 830 2 386 Lease liabilities (note 16.1) 25 484 29 860 Other liabilities and accruals 455 925 390 642 11 663 14 021 Non-financial liabilities 320 769 202 378 (510) 195 Staff-related accruals 109 683 88 413 Obligation toward post-employment benefits (note 34) 113 043 108 905 Other liabilities and accruals 98 043 5 060 (510) 195 The group leases various offices, branch spaces, parking and ATM spaces. Rental contracts are typically made for fixed average periods of between two to ten years but may have extension options. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are considered in the lease term when there is reasonable certainty that those options will be exercised. The assessment of reasonable certainty is reviewed if a significant event or a significant change in circumstances occurs which affects this assessment and that is within the control of the lessee. The modifications relate to the increase in the rent paid to Arleo Investments Sixteen (Proprietary) Limited. The additions during 2022 primarily related to new contracts entered for branch spaces that had expired and or early terminated and for the leasing of a new storeroom. Refer to Note 8 for the disclosure of the right-of-use asset and the related depreciation. Total 805 008 625 266 11 153 14 216 Reconciliation of lease liabilities Balance at 1 January 2022 Additions N$'000 N$'000 Modifications N$'000 Terminations/ cancellations N$'000 Interest expense N$'000 Payments¹ N$'000 Balance at 31 December 2022 N$'000 GROUP Buildings 2 733 39 (1831) 941 Branches 26 397 10 574 2 863 1 120 ATM spacing and other 730 14 (16 810) (345) 24 144 399 Total 29 860 10 574 2 863 1 173 (18 986) 25 484 Balance at Balance at 1 January 2021 N$'000 Additions N$'000 Modifications N$'000 Terminations/ cancellations N$'000 Interest 31 December expense Payments¹ N$'000 N$'000 2021 N$'000 GROUP Buildings 1 900 2 818 (19) Branches 19 562 19 071 6 229 (124) (4 465) 1 563 2 098 ATM spacing and other 81 912 (149) (6) Total 21 543 22 801 (4 589) 3 655 1 (3405) (16 098) (108) (19 611) 2 733 26 397 730 29 860 These payments include the principal lease payments as disclosed in the statement of cash flows of N$17.6 million (2021: N$16.0 million) for the group. The remainder is the interest expense paid during the year.

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