ISLAMIC BANK OF YEMEN

 FOR FINANCE AND INVESTMENT (ysc)

Audited Financial Statements

31 December 2003


 

AUDITORS’ REPORT TO THE SHAREHOLDERS

 

ISLAMIC BANK OF YEMEN FOR FINANCE AND INVESTMENT (Y.S.C)

 

We have audited the accompanying balance sheet of the Islamic Bank of Yemen for Finance and Investment (YSC) (the Bank) as at 31 December 2003 and the related statements of income, cash flows and changes in shareholder’s equity.  These financial statements are the responsibility of the Bank's management.  Our responsibility is to express an opinion on these financial statements based on our audit.

 We conducted our audit in accordance with International Standards on Auditing.  These Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.

The financial statements, in our opinion, present fairly, in all material respects, the financial position of the Bank as at 31 December 2003, and the results of its operations, and its cash flows for the year then ended in accordance with the significant accounting policies set out in note (3).

We further confirm that we have obtained all the information and explanations that we deemed necessary for our audit, that proper books of account have been kept by the Company, an inventory was duly carried out and the information contained in the Board of Directors’ report in so far as they related to the financial statements are in agreement therewith .  We are not aware of any violation of the Commercial Companies Law No (22) of 1997 and the Central Bank Law No (21) of 1996 regarding banks and Islamic banks or the Bank’s articles of association that may have had a material adverse effect on the business of the Bank or its financial position.

We would like to draw attention that the financial statements for the year ended 31 December 2002 were audited by another auditor.

 

Dahman Awadh Dahman, FCCA

Registered Licensed Accountant No. 384

of Dahman & Co. A member firm of RSM International

 

10 April 2004,

Sana'a, Republic of Yemen

 

 

 

2003

 

2002

 

Note

YR’ 000

 

YR’ 000

ASSETS

 

 

 

 

 

Cash in hand and reserve balances with the Central Bank of Yemen

8

3,276,145

 

2,079,462

Due from banks and financial institutions

9

1,981,654

 

1,413,240

Financing murabaha transactions, net

10

7,290,497

 

5,777,196

Restricted investments

10

1,026,503

 

894,261

Investments in mudaraba contracts, net of provision

11

63,502

 

193,559

Investments in musharaka contracts, net of provision

12

573,203

 

546,072

Qard Hasan, net of provision

13

11,352

 

5,060

Investments in securities

14

12,922

 

12,000

Debit balances and other assets, net of provision

15

2,997,014

 

1,958,715

Property, plant and equipment, net of accumulated depreciation

16

340,500

 

316,466

TOTAL ASSETS

 

17,573,292

 

13,196,031

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

Customers' accounts and other deposits

17

6,840,702

 

4,853,169

Due to banks and financial institutions

18

66,922

 

97,912

Credit balances and other liabilities

19

1,032,952

 

524,613

Other provisions

20

135,079

 

101,437

Dividend payable

 

168,582

 

6,000

TOTAL LIABILITIES

 

8,244,237

 

5,583,131

Unrestricted investment accounts' holders and savings

21

6,701,970

 

5,177,702

TOTAL LIABILITIES AND INVESTMENT ACCOUNTS

 

14,946,207

 

10,760,833

Restricted investment accounts

 

1,026,503

 

894,261

 

 

15,972,710

 

11,655,094

SHAREHOLDERS’ EQUITY

 

 

 

 

 

Share Capital

22

1,250,000

 

1,250,000

Reserves

23

349,657

 

290,423

Retained earnings

 

925

 

514

TOTAL SHAREHOLDERS’ EQUITY

 

1,600,582

 

1,540,937

TOTAL LIABILITIES, INVESTMENT ACCOUNTS AND SHAREHOLDERS’ EQUITY

 

 

17,573,292

 

 

13,196,031

CONTRA ACCOUNTS AND OTHER COMMITMENTS, net

24

14,578,912

 

9,432,597

 

The attached notes 1 to 40 form an integral part of these financial statements

Text Box:     Text Box:    

 Auditors’ report attached,

 

 

 

 

 

Luqman Al Aswadi

 

AbdulMalik Thabet

 

Haj AbdulKarim Al Aswadi

Finance Manager

 

General Manager

 

Chairman

 

 

 

 

2003

 

2002

 

Note

 

YR' 000

 

YR' 000

 

Revenue from financing murabaha contracts

25

 

520,154

 

425,300

Revenue from other joint investments

26

 

21,285

 

33,111

 

 

 

541,439

 

458,411

Less: Return of unrestricted investment and savings accounts

27

 

(404,600)

 

(319,246)

The Banks' share in the return on murabaha and joint investments

 

 

136,839

 

139,165

The Banks' share in restricted investment income

 

 

35,607

 

29,275

Commission and fee income on banking services

28

 

504,860

 

374,795

Gain on foreign currency transactions

29

 

111,564

 

135,126

Other operating income

 

 

52,214

 

112,675

 

 

 

841,084

 

791,036

OPERATING EXPENES:

 

 

 

 

 

Commissions and fee expenses on banking services

 

 

8,911

 

11,781

Provisions

30

 

48,120

 

236,182

General and administration expenses

32

 

443,447

 

373,807

Total operating expenses

 

 

500,478

 

621,770

 

 

 

 

 

 

Net Profit for the Year before Zakat and Income Tax

 

 

340,606

 

169,266

Zakat

33

 

(65,879)

 

25,018

Net Profit for the Year after Zakat and Before Income Tax

 

 

 

274,727

 

 

144,248

Provision for income tax

34

 

(46,500)

 

-

Net Profit for the Year

 

 

228,227

 

144,248

 

 

 

 

 

 

Earnings per share

35

 

178

 

111

 The attached notes 1 to 40 form an integral part of these financial statements

 

 

 

2003

 

2002

 

 

YR 000

 

YR 000

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

Net profit for the year after zakat and income tax

 

228,227

 

144,248

Adjustments for:

 

 

 

 

Depreciation of property, plant and equipment

 

61,635

 

49,305

Provisions for loans loss and contra accounts made during the year

 

48,120

 

236,182

Provisions for loans loss and contra accounts written back during the year

 

(13,509)

 

(3,773)

Gain on sale of property, plant and equipment

 

(10,809)

 

(191)

Gain on sale of assets acquired from customers

 

-

 

(6,922)

Return on unrestricted investment accounts and savings

 

404,600

 

319,246

Operating profit before changes in assets and liabilities related to operating activities: (1)

 

718,264

 

738,095

 (Increase) in reserve balances with the Central Bank of Yemen

 

(1,022,399)

 

(371,383)

 (Increase) in debit balances and other assets

 

(1,072,743)

 

(547,035)

 (Increase) in Qard al Hasan

 

(6,116)

 

(1,786)

 (Increase) / decrease in credit balances and other liabilities

 

676,420

 

221,466

Net cash flows from operating activities: (1)

 

(706,574)

 

39,357

CASH FLOWS (USED IN) INVESTMENT ACTVITIES

 

 

 

 

(Increase) / decrease in financing murabaha contracts

 

(1,641,954)

 

(2,180,841)

(Increase) / decrease in mudaraba contracts

 

131,371

 

(137,163)

(Increase) / decrease in investment in securities 

 

(23,765)

 

(254,091)

(Increase) / decrease in musharaka contracts

 

(922)

 

(12,000)

Purchase of property, plant and equipment

 

(109,718)

 

(215,739)

Proceeds from sale of property, plant and equipment

 

24,049

 

464

Proceeds from sale of assets acquired from customers

 

-

 

70,962

Net Cash flows (used in) investing activities (2)

 

(1,620,939

 

(2,728,408)

 

 

 

 

 

CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIES

 

 

 

 

Increase in unrestricted investment accounts

 

1,438,914

 

1,741,857

Increase in customers’ deposits

 

1,987,533

 

1,597,131

(Decrease) in due to banks and financial institutions

 

(30,990)

 

(67,090)

Dividend paid  to unrestricted investors

 

(319,246)

 

(216,227)

Dividend paid  to shareholders’

 

(6,000)

 

(119,266)

Net cash flows from / (used in) financing activities (3)

 

3,070,211

 

2,936,405

Net increase in cash and cash equivalents (1+2+3)

 

742,698

 

247,354

Cash and cash equivalents at the beginning of the year

 

2,381,712

 

2,134,358

Cash and cash equivalents at the end of the year

 

3,124,410

 

2,381,712

 

Represented by:

 

 

 

 

Cash in hand and reserve balances with Central Bank of Yemen

 

3,276,145

 

2,079,462

Due from banks and financial institutions

 

1,621,775

 

1,136,672

Reserve balances with the Central Bank of Yemen

 

(2,133,389)

 

(1,110,990

 

 

3,124,410

 

2,381,712

The attached notes 1 to 40 form an integral part of these financial statements.

 

 

 

Paid up

Capital

 

 

Statutory

Reserve

 

 

General

Reserve

 

Retained Earnings

 

 

 

Total

 

YR’000

 

YR’000

 

YR’000

 

YR’000

 

YR’000

 

 

 

 

 

 

 

 

 

 

Balance at 1 January 2002

1,250,000

 

84,786

 

67,000

 

903

 

1,402,689

Net profit for the year

-

 

-

 

-

 

144,248

 

144,248

Transfer to reserves

-

 

21,637

 

117,000

 

(138,637)

 

-

Board of directors’ remuneration

-

 

-

 

-

 

(6,000)

 

(6,000)

Balance at 31 December 2002

1,250,000

 

106,423

 

184,000

 

514

 

1,540,937

Net profit for the year

-

 

-

 

-

 

228,227

 

228,227

Transfer to reserves

-

 

34,234

 

25,000

 

(59,234)

 

-

Proposed dividend

-

 

-

 

-

 

(162,500)

 

(162,500)

Board of directors’ remuneration

-

 

-

 

-

 

(6,082)

 

(6,082)

Balance at 31 December 2003

1,250,000

 

140,657

 

209,000

 

925

 

1,600,582

 

The attached notes 1 to 40 form an integral part of these financial statements

 

 

2003

 

2002

 

 

YR’000

 

YR’000

Investment at beginning of the year (murabaha)

 

894,261

 

715,430

Deposits during the year

 

511,682

 

297,662

Withdrawals during the year

 

(475,083)

 

(175,213)

Net profit for the year

 

131,250

 

85,657

The Bank's share in restricted investments

 

(35,607)

 

(29,275)

Balance at end of the year

 

1,026,503

 

894,261

 The attached notes 1 to 40 form an integral part of these financial statements

 

1          INCORPORATION AND ACTIVITIES

The Islamic Bank of Yemen for Finance and Investment, a Yemeni shareholding company (YSC) (The Bank), was incorporated on 25 April 1995 pursuant to the Minister’s of Trade and Supply Decree No. 137 of 1995.  The Bank commenced operations on June 8 1996.  In accordance with article no. (26) of Law no. (21) for the year 1996 regarding Islamic banks, the Bank is entitled to the privileges and exceptions stipulated in the Investment Law.

The Bank was established for the purposes of covering the social and economic needs in investment, finance and banking services in conformity with the principles of the Islamic Shari a. 

The Bank carries out its banking activity in the Republic of Yemen through its Head office in Sana'a and five branches in the Republic of Yemen (Sana’a, Al-Hodaidah, Taiz and two branches in Aden).  The Bank had 288 employees as on 31 December 2003 (31 December 2002: 243 employees).

2          BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements are prepared in accordance with Islamic Accounting Standards for Islamic Financial Institution issued by the Accounting and Auditing Organization for Islamic Financial Institutions, Manama, Bahrain, local prevailing laws and regulations and rules and instruction issued by the Central Bank of Yemen.

3          SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies applied on a consistent basis are as follows:

a)                 Accounting convention

The financial statements are prepared under historical cost convention and are presented in Yemeni Rials.

b)         Foreign currencies

The Bank maintains its records in Yemeni Riyals.  Transactions in other foreign currencies are recorded in Yemeni Rials at the prevailing exchange rates ruling at the value date of the transaction.  Monetary assets and liabilities balances at the year-end, denominated in foreign currencies are translated revalued at the prevailing exchange rates on that date.  Exchange gains and losses resulting from the translation are taken to the statement of income.

c)         Revenue recognition

i)          Financing of murabaha transactions

Profits on financing murabaha contracts are initially recorded on the accrual basis, with all profits on completed contracts recorded as deferred revenue and only taken to the statement of income over the period of each contract.  In accordance with the instructions of the Central Bank of Yemen, the Bank does not recognise profit from non-performing murabaha contracts.

ii)         Investments in mudaraba and musharaka contracts

Profits on mudaraba and musharaka financing transactions, which are initiated and terminated during the financial year, are only recorded in the statement of income on the completion of the contracts.  Profit on mudaraba and musharaka financing transactions, which last more than one financial year, are recognize when cash profits are distributed on these transactions.  The Bank's recognises its share in the profits of investment in securities when dividends are declared by the investee.

d)         Valuation of financing murabaha transactions

Assets available for sale under financing murabaha contracts are recorded at historical cost.  Provision is made for decline in the fair value of each asset from its book value at the end of each year.  These assets are presented in the balance sheet under “Financing murabaha transactions, net of their related provisions and deferred revenue”.


 

3          SIGNIFICANT ACCOUNTING POLICIES (continued)

d)         Valuation of financing murabaha transactions (continued)

Debts relating to short or long term financing murabaha transactions are recorded at cost plus the contracted attributable profit specified in each financing murabaha contract.  In accordance with the instructions of the Central Bank of Yemen, a provision shall be created for non-performing specific debts and contingent liabilities as well as a percentage for general risks calculated on the total of the other debts and contingent liabilities after deducting balances secured by deposits and Bank's guarantees issued by banks with good credit ratings.  The specific provision is determined based on a periodical comprehensive review of the loans portfolio and contingent liabilities and is based on the following rates:

·                     Performing debts and debts under watch                    1%

·                     Non – performing debts and contingencies:

·                     Substandard debts                                            15%

·                     Doubtful debts                                                  45%

·                     Bad debts                                                        100%

Debts relating to financing murabaha transactions are written off if the procedures taken towards their collection prove useless, or if directed by the Central Bank of Yemen based on the review of the portfolio.  Proceeds from the debts previously written off in prior years are credited to the provision account.  Financing short or long-term murabaha debts are presented in the balance sheet net of the specific provision for non-performing debts and the general provision for general risks and after deducting any deferred and suspended income.

e)         Valuation of financing mudaraba and musharaka transaction

mudaraba and musharaka cash contracts are recorded on the basis of the Bank’s contribution to the mudaraba or musharaka transaction.  mudaraba and musharaka contracts, that do not involve cash outlay by the Bank, but the Bank’s contribution are in other form of tangible assets, are recorded based on the agreed share between the Bank and the customer or joint venture partner.  Accordingly, any differences between the valuation at the close of the contract and the book value are recognised on the basis of the underlying relationship between the Bank and the other party.  Such profits or losses are taken to the statement of the income, or to unrestricted investment accounts holder’s account or both of the preceding treatments dependent on the nature of the contract.  In accordance with instructions of the Central Bank of Yemen, the Bank shall create specific provisions for mudaraba and musharaka contracts when there recognized losses, as well as a general provision for inherent general risk calculated on the total of other mudaraba and musharaka contracts net of balances secured by deposits and Bank guarantees issued by banks with good credit ratings.

The specific provision is determined based on a periodical comprehensive review of the loans portfolio and contingent liabilities and is based on the following rates:

·                     Performing debts under watch                                     1%

·                     Non – performing debts and contingencies:

·                     Substandard debts                                            15%

·                     Doubtful debts                                                  45%

·                     Bad debts                                                        100%

The Bank reduces at the end of each year mudaraba and musharaka capital by the amount of loss incurred during the year and records it in the statement of income or unrestricted investment holder’s account or to both according to its nature.  mudaraba and musharaka capitals are presented in the balance sheet at their carrying value, which is the cost less recognized losses and related provisions)


 

3                    SIGNIFICANT ACCOUNTING POLICIES (continued)

 

f)         Valuation of restricted investments

murabaha, mudaraba and musharaka transactions financed by restricted investment accounts are recorded on the same valuation basis mentioned in note (3) © and (d), with related profits or losses and provisions are taken to restricted investments accounts net of the Bank's fee for managing these investments

g)         Valuation of assets acquired from customers

Assets acquired from customers in settlement of debts are included in the balance sheet under “debit balances and other assets” using the value at which these assets were acquired less any decline in their value.  Any decline in value is charged to the statement of income.

h)        Investment in securities

Investment in the share capital of companies are initially recognized at historical cost.  Provision is made for any decline in the fair value on individual bases.

i)          Contingent liabilities and commitments

Contingent liabilities and commitments, in which the Bank is a party, are presented off-balance sheet under “contingent liabilities and commitments” as they do not represent actual assets or liabilities of the Bank as at the balance sheet date.

j)          Cash and cash equivalents

For the purpose of preparing the statement of cash flows, cash and cash equivalents consist of cash in hand, cash balances with the Central Bank of Yemen, other than reserve balances, and deposits with other banks.

k)         Property, plant and equipments

Property plant and equipment are stated at cost less accumulated depreciation and impairment losses except freehold land.  Cost includes the purchase price and related expenses to bring it to its present state and location.  Depreciation is charged on all property, plant and equipment other than freehold land at rates calculated to write off the cost, less estimated residual value.  The depreciation rates used are as follows:

·                     Buildings                                             2.5%

·                     Equipment                                          12.5% - 20%

·                     Motor vehicles                                                20%

·                     Furniture and fixtures                                   3% - 20%

·                     Computer equipment                         20%

l)          Impairment of assets

At each balance sheet date, an assessment is made of whether there is objective evidence that a financial asset or portfolio of financial assets is impaired.  If this evidence exists, the recoverable amount of the assets or group of assets is determined and any impairment losses are recognised in the statement of income.  In addition, any increase in the value of assets that were previously impaired is recognized in the statement of income without affecting the cost of assets before impairment.

 

3                    SIGNIFICANT ACCOUNTING POLICIES (continued)

m)       Taxation

Taxation due is calculated in accordance with the Income Law, regulations and guidelines prevailing in the Republic of Yemen and the Banks Law No. (38) of 1998.  In accordance with article No (26) of Law No (21) for 1996 regarding Islamic Banks, the Bank is entitled to the privileges and exceptions stipulated in the Investment Law.  Accordingly, the Bank is exempted from all taxes and duties for seven years starting from the date of commencement of its operations on 8 June 1996, which expired on 7 June 2003.

n)        Statement of changes in restricted investments

The statement of changes in restricted investment is in respect of funds fully provided by restricted investment accounts holders or as a result of the Bank issuing investment units without any financial participation by the Bank.  The Bank’s role is limited to managing these accounts on behalf of their owners and as such, it acts in a fiduciary capacity as an agent only.  The Bank therefore does not participate in the results of these investments.  In accordance with instructions of the Central Bank of Yemen, the movement in the restricted investments are presented in a separate statement called “the statement of changes in restricted investments”.

o)         Prohibited revenues and expenditure

Revenue earned and expenses incurred that are prohibited under Islamic Shari a are not taken to the Bank’s statement of income but rather netted off and recorded in a separate account in the balance sheet under the heading of "Credit balances and other liabilities".  The surplus in this account is utilized for the payment of grants, social assistances, donations and the resultant balance is used to cover the shortfall in the provision against the Bank’s other investment risks.

p)         Related party transactions

Disclosures are made in the financial statements of transactions with related parties and in particular, members of the board of directors and companies in which they own more than 25% of the capital.

4                    SUPERVISION OF THE CENTERAL BANK OF YEMEN

The Bank's business activities are subject to the supervision of the Central Bank of Yemen in accordance with the prevailing laws regarding the activities of Islamic banks.

5                    SHARIA COMMITTE

The Bank's business activities are subject to the supervision of a Shari a' committee that consists of three members appointed by the Bank's general assembly.

i)          supervision on the Shari a aspects for all the Bank's activities according to the Islamic Shari a regulations; and

ii)         issuing an annual report to the Bank's General Assembly.

6                   ZAKAT

Zakat is computed according to the Fatwa of the Shari a' Committee of the Bank and is collected from the shareholders and investment account holders on behalf of the concerned Government Agency.  The amount collected is paid to the concerned government agency, which decides on its allocation.

7                    FINANCIAL INSTRUMENTS AND MANAGING THEIR RELATED RISKS

1)         Financial instruments

a)         The Bank's financial instruments represent financial assets and liabilities.  Financial assets include cash balances, current accounts and deposits with banks, financing of murabaha, mudaraba and musharaka transactions and related debts and investments in securities. Financial liabilities include costumers’ current accounts, saving accounts and other deposits, accounts of restricted investment holders and due to banks.  Also, financial instruments include the rights and obligations stated in contingent liabilities and commitments.  The accounting policies for financial assets and liabilities are set out in note (3) above.

b)         Fair value of financial instruments

Based on the valuation of the Bank's assets and liabilities stated in the notes to the financial statements, the fair value of Bank’s the financial instruments are not materially different from their carrying value.

The Bank does not enter into forward foreign currency buy and sell contracts.

2          Managing related risks

a)         Rate of return risk

The return due on restricted investment accounts is determined on the basis of a mudaraba contract, which determines the profit/ (loss) sharing basis between the parties.  Accordingly, any variances in the profits realised will determine the return ratio that the Bank could pay to the investors and the return paid by the Bank to unrestricted investment account holders.  The Bank is, therefore, not exposed to the risk of any change in the rate of return.

b)         Credit risk

Financing of mudaraba, murabaha and musharaka transactions and their related debts, current accounts, deposits with banks and rights and obligation from others are considered financial assets exposed to credit risk.  Credit risk represents the inability of these parties to meet their obligations when they fall due.  To comply with the provisions of the regulations of the Central Bank of Yemen circular no 10 of 1997) pertaining to the management of credit risk exposure, the Bank adheres to certain minimum standards in order to properly manage its credit risk.  In addition to the standards mentioned, the following additional procedures are applied by the Bank to minimize the credit risk exposure:

·                     preparing credit studies on customers and banks before dealing with them and determining their related credit risk rating.

·                     Obtaining sufficient collaterals to minimize the credit risk exposure which may result in cases of insolvency of customers and banks.

·                     Following up and periodical reviews of customers and banks in order to evaluate their financial positions, credit rating and required provision for non-performing debts.

·                     Distributing credit portfolio and investments over diversified sectors to minimize concentration of credit risk.

The distribution of assets, liabilities and contingent liabilities and commitments at the balance sheet date are presented in note no (37).


7          FINANCIAL INSTRUMENTS AND MANAGING THEIR RELATED RISKS (Continued)

2          Managing related risks (continued)

c)          Exchange rate risk

Due to the nature of the Bank's activity, the Bank deals in different foreign currencies; hence it is exposed to exchange rate risk.  In order to minimize the exposure to exchange rate risk. the Bank maintains a balanced foreign currencies position in compliance with the Central Bank of Yemen instructions and the requirements of Central Bank of Yemen circular No 6 of 1998 which specifies that individual foreign currency position shall not exceed 15% of the Bank's capital and reserves, and that the aggregate open position for all foreign currency shall not exceed 25% of the 0Bank's capital.

The significant foreign currencies positions as at the balance sheet date are given in note (38).

8          CASH IN HAND AND RESERVE BALANCES WITH THE CENTRAL BANK OF YEMEN

 

 

2003

 

2002

 

 

YR’000

 

YR’000

Cash in hand - local currency

 

285,240

 

226,374

Cash in hand - foreign currency

 

320,245

 

733,727

Cash in transit

 

537,271

 

-

Cheques purchased - foreign currency

 

-

 

8,371

Total cash in hand

 

1,142,756

 

968,472

 

 

 

 

 

Reserve balances with the Central Bank of Yemen - local currency

524,450

 

434,466

Reserve balances with the Central Bank of Yemen - foreign currency

1,608,939

 

676,524

Total reserve balances with the Central Bank of Yemen

 

2,133,389

 

1,110,990

Total cash in hand and reserve balances with the Central Bank of Yemen

3,276,145

 

 

2,079,462

In accordance with the Yemeni Banks Law, the Bank is required to maintain statutory deposits with the Central Bank of Yemen at stipulated percentages of customers’ deposit in Yemeni Rials and foreign currencies.  Deposits in local currency carry interest at rates determined by the Central Bank of Yemen (note (31).  Such deposits are not available for the daily use of the Bank.

9          DUE FROM BANKS AND FINANCIAL INSTITUTIONS

 

 

2003

 

2002

 

YR’000

 

YR’000

a)  Current accounts with Central Bank of Yemen

 

 

 

 

   - In local currency

 

340,396

 

191,800

   - In foreign currencies

 

19,483

 

84,768

Total current accounts with the Central Bank of Yemen

359,879

 

276,568

 

 

 

 

 

b)   Current account balances with local banks

 

 

 

 

    - In local currency

 

2,212

 

220

    - In foreign currencies

 

-

 

18

Total due from local banks

 

2,212

 

238

c)   Due from foreign banks and other financial institutions

 

    Current account balances - foreign currency

 

1,100,830

 

684,064

    With Islamic financial institutions

 

518,733

 

452,370

Total due from foreign banks and Islamic financial institutions

 

1,619,563

 

 

1,136,434

Total due from banks  and financial institutions

 

1,981,654

 

1,413,240

10        FINANCING MURABAHA TRANSACTIONS CONTRACTS (net)

 

 

2003

 

2002

 

 

YR’000

 

YR’000

 

Financing murabaha contracts - local

 

9,060,540

 

7,294,248

murabaha contracts - foreign

 

370,373

 

281,931

 

 

9,430,913

 

7,576,179

Less:

 

 

 

 

Provision for murabaha transaction (note 10a)

 

(547,383)

 

(418,730)

Suspended Revenue

 

(23,138)

 

(20,389)

Deferred Revenue

 

(543,392)

 

(465,603)

 

 

8,317,000

 

6,671,457

Less: restricted investment accounts

 

(1,026,503)

 

(894,261)

Net book value

 

7,290,497

 

5,777,196

Non-performing financing murabaha debts as at 31 December 2003 amounted to YR 181 million (31 December 2002: YR 663 million).

10 (a) PROVISION FOR FINANCING MURABAHA TRANSACTIONS CONTRACTS.

 

----------------- 2003-----------------

 

-------------- 2002-----------------

 

 

Specific

YR’000

 

General

YR’000

 

Total

YR’000

 

Specific

YR”000

 

General

YR’000

 

Total

YR’000

Balance at 1 January

358,510

 

60,220

 

418,730

 

172,257

 

43,270

 

215,527

Provision for the year

111,439

 

17,214

 

128,653

 

186,253

 

16,950

 

203,203

Balance at 31 December

469,949

 

77,434

 

547,383

 

358,510

 

60,220

 

418,730
                           

11        INVESTMENTS IN MUDARABA CONTRACTS, net of provision

 

 

2003

 

2002

 

 

YR'000

 

YR’000

Financial Investment Bank (investment portfolio)

 

-

 

134,160

National Commercial Bank (Jeddah)

 

64,143

 

61,354

 

 

64,143

 

195,514

Less: Provision for investment in mudaraba contracts (performing)

 

(641)

 

(1,955)

Net book value

 

63,502

 

193,559

12        INVESTMENT IN MUSHARAKA CONTRACTS, net of provision

 

 

2003

 

2002

 

 

YR’000

 

YR’000

Attowfiq Company for Investment Funds (Al-Baraka general fund)

 

92,150

 

178,880

Attowfiq Company for Investment Funds (Al-Khaleej building fund)

 

-

 

128,012

Attowfiq Company for Investment Funds (Amran  fund )

 

83,648

 

119,250

Attowfiq Company for Investment Funds (Building fund)

 

-

 

89,440

Al-Amin Bank – Dallat Al Baraka

 

122,875

 

35,776

Al Tadhamon Islamic Bank

 

276,450

 

-

Yemen Center for Authentication and Arbitration

 

230

 

230

 

 

575,353

 

551,588

Less: Provision for investment in musharaka contracts (performing)

 

(2,150)

 

(5,516)

Net book value

 

573,203

 

546,072

 

13        QARD AL HASAN, net of provision

 

 

2003

 

2002

 

 

000

 

YR’000

Balance at 1 January

 

6,148

 

4,362

Transfer from customers current accounts

 

6,116

 

1,786

Balance at 31 December

 

12,264

 

6,148

Less: Provision for Qard Al Hasan

 

(912)

 

(1,088)

Net book value

 

11,352

 

5,060

 

14        INVESTMENT IN SECURITIES

 

2003

 

2002

 

YR,000

 

%

 

YR'000

 

%

Yemen Islamic insurance Company

12,922

 

6%

 

12,000

 

12%

 

12,922

 

6%

 

12,000

 

12%

The fair market value of the investment as of 31 December 2003 was YR 12,922 thousand (31 December 2002: YR 12,000 thousand).

 

15     DEBIT BALANCES AND OTHER ASSETS

 

 

2003

 

2002

 

 

YR’000

 

YR’000

Overdrawn current accounts

 

1,160,901

 

548,793

Letters of credit

 

996,526

 

387,307

Issuance of letters of credit

 

815,952

 

956,374

Assets acquired from customers

 

-

 

13,812

Staff loans and advances

 

22,018

 

23,189

Accrued income

 

1,453

 

18,519

Prepaid expenses

 

20,247

 

19,638

Inventory of printed materials and stationery

 

16,533

 

13,736

Sundry debit balances

 

177,051

 

156,570

 

 

3,210,681

 

2,137,938

Provision for debit balances and other assets (note 15a)

 

(213,667)

 

(179,223)

Total debit balances and other assets

 

2,997,014

 

1,958,715

 

15 (a) PROVISION FOR DEBIT BALANCES AND OTHER ASSETS

 

 

2003

 

2002

 

 

YR’000

 

YR’000

Balance at 1 January

 

179,223

 

151,253

Used during the year

 

(6,864)

 

-

Amount provided during the year (note 30)

 

41,308

 

27,970

Balance at 31 December

 

213,667

 

179,223

 

16        PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation

 

Land and

Buildings

 

Equipment and Machinery

 

 

Motor

Vehicles

 

office

furniture

 

Computer

Equipment

 

 

 

Total

Cost:

YR’000

 

YR’000

 

YR’000

 

YR’000

 

YR’000

 

YR’000

At 1 January 2003

85,245

 

93,171

 

42,607

 

133,678

 

155,177

 

509,878

Additions during the year

13,812

 

32,746

 

8,604

 

-

 

54,556

 

109,718

Disposal during the year

(18,727)

 

-

 

-

 

(5,322)

 

-

 

(24,049)

At 31 December 2003

80,330

 

125,917

 

51,211

 

128,356

 

209,733

 

595,547

Depreciation

 

 

 

 

 

 

 

 

 

 

 

At 1 January 2003

472

 

31,606

 

25,439

 

51,606

 

84,289

 

193,412

Charge for the year

526

 

13,722

 

7,128

 

13,475

 

26,785

 

61,635

At 31 December 2003

998

 

45,328

 

32,567

 

65,081

 

111,074

 

255,047

 

 

 

 

 

 

 

 

 

 

 

 

Net book amounts

 

 

 

 

 

 

 

 

 

 

 

At 31 December 2003

79,332

 

80,589

 

18,644

 

63,275

 

98,659

 

340,500

At 31 December 2002

84,773

 

61,565

 

17,168

 

82,072

 

70,888

 

316,466

 

The depreciation charge for the year ended 31 December 2003 is YR 61,635 thousand (2002: YR 49,305).

17     CUSTOMERS’ ACCOUNTS AND OTHER DEPOSITS

 

 

2003

 

2002

 

 

YR’000

 

YR’000

Current accounts - local currency

 

1,332,444

 

1,032,522

Current accounts - foreign currency

 

3,572,248

 

2,656,218

Margin held - local currency

 

190,153

 

114,602

Margin held - foreign currency

 

1,691,557

 

988,130

Other deposits

 

54,300

 

61,697

Total customers’ accounts and other deposits

 

6,840,702

 

4,853,169

 

18        DUE TO BANKS AND FINANCIAL INSTITUTIONS

 

 

2003

 

2002

 

 

YR’000

 

YR’000

Current accounts - foreign currency

 

66,922

 

97,912

 

19        CREDIT BALANCES AND OTHER LIABLITIES

 

 

2003

 

2002

 

 

YR’000

 

YR’000

Accrued expenses

 

13,968

 

12,135

Creditors and Sundry credit balances

 

1,018,984

 

512,478

Total credit balances and other liabilities

 

1,032,952

 

524,613

 

 

20       OTHER PROVISIONS

 

------------------- 2003------------------

 

------------------- 2002------------------

 

 

 

Provision for end of service benefits

YR’000

 

 

Provision for contingent liabilities YR’000

 

 

 

 

Total

YR’000

 

 

Provision

 for end of service benefits

YR’000

 

Provision for contingent liabilities YR’000

 

 

 

 

Total

YR’000

Balance at 1 January

7,111

 

94,326

 

101,437

 

4,596

 

69,490

 

74,086

Provision for the year

6,801

 

33,486

 

40,287

 

6,288

 

24,836

 

31,124

Used during the year

(6,645)

 

-

 

(6,645)

 

(3,773)

 

-

 

(3,773)

Balance at 31 December

7,267

 

127,812

 

135,079

 

7,111

 

94,326

 

101,437
                               

 

 

21        UNRESTRICTED INVESTMENT ACCOUNT' HOLDERS AND SAVING

 

 

2003

 

2002

 

 

YR’000

 

YR’000

Time Deposits- local currency

 

2,545,673

 

2,368,329

Time Deposit - foreign currency

 

2,092,096

 

1,330,077

Saving accounts - local currency

 

921,221

 

694,331

Saving accounts - foreign currency

 

738,380

 

465,719

Return on unrestricted investment accounts and savings

 

404,600

 

319,246

 

 

6,701,972

 

5,177,702

 

22        SHARE CAPITAL

The authorized and paid up share capital amounts YR. 1,250 million (2002: YR 1,250 million) consists of 1,250 thousand shares of YR 1,000 each. (2002: 1,250 thousand shares of YR 1,000 each).

 

23     RESERVERS

 

 

2003

 

2002

 

 

YR,000

 

YR,000

Statutory reserve

 

140,657

 

106,423

General reserve

 

209,000

 

184,000

 

 

349,657

 

290,423

 

In accordance with the provisions of article no (77) of the Bank's Law no. 38 of 1998, 15% of the net profit for the year is to be transferred to statutory reserve until the balance of this reserve equals two times the paid up capital of the Bank.

 

24        CONTRA ACCOUNTS AND OTHER COMMITMENTS, net

 

 

 

2003

 

2002

 

 

 

YR’000

 

YR’000

Letters of guarantee

 

 

3,002,235

 

2,440,579

Documentary letters of credit

 

 

12,195,124

 

6,479,916

Other contingent liabilities

 

 

1,263,263

 

1,614,834

 

 

 

16,460,622

 

10,535,329

Less: Margin held

 

 

(1,881,710)

 

(1,102,732)

Total contra accounts and other commitments

 

 

14,578,912

 

9,432,597

 

25     REVENUE FROM FINANCING MURABAHA TRANSACTIONS

 

 

2003

 

2002

 

 

YR’000

 

YR’000

Revenue from financing murabaha transactions ( local)

510,,991

 

420,627

Revenue from financing murabaha transactions (foreign)

9,163

 

4,673

 

520,154

 

425,300

 

26       REVENUE OF OTHER JOINT INVESTMENTS

 

 

2003

 

2002

 

 

YR’000

 

YR’000

Revenue from  investments in mudaraba  contracts

8,704

 

15,679

Revenue from  investments in musharaka contracts

4,068

 

8,281

Gain from other Islamic deposits

8,513

 

9,151

 

21,285

 

33,111
27        RETURN TO UNRESTRICTED INVESTMENT AND SAVING ACCOUNTS HOLDERS

The allocation of the profit from investments between the shareholders and unrestricted investment and savings accounts holders is based on the percentage of their shares weighted by the number of days the account was held.  This calculation is proposed by the Bank’s budget committee and is approved by the Board of Directors.  The profit allocation for the deposits held in Yemeni Rials and US dollars in 2003 and 2002 are as follows:

 

 

2003

 

2002

 

YR

 

US$

 

YR

 

US$

 

 

 

 

 

%

 

%

Unrestricted deposit

12.30

 

3.35

 

-

 

-

Investment for one year

11.53

 

3.14

 

12.0

 

3.96

Investment for nine months

10.76

 

2.93

 

10.5

 

3.47

Investment for six months

9.23

 

2.51

 

9.0

 

2.97

Investment for three months

8.46

 

2.31

 

8.25

 

2.72

Saving accounts

7.69

 

2.10

 

7.5

 

2,48

 

28       COMMISSIONS AND FEE INCOME ON BANKING SERVICES

 

 

2003

 

2002

 

 

YR’000

 

YR’000

Commissions on documentary letters of credit

 

287,507

 

138,116

Commissions on letters of guarantee

 

51,475

 

48,124

Commissions on transfer of funds

 

25,936

 

28,000

Service charges

 

52,548

 

40,336

Other service fees

 

67,234

 

100,521

Commission on certified cheques

 

18,365

 

18,954

Collection charges

 

1,795

 

744

Total commissions and fee income on banking services

 

504,860

 

374,795

 

29       GAIN ON FOREIGN CURRENCY TRANSACTIONS

 

 

2003

 

2002

 

 

YR’000

 

YR’000

Gain on foreign exchange trading transactions

 

38,310

 

53,280

Revaluation differences on foreign currency balances denominated assets and liabilities

 

 

73,254

 

 

81,846

Total gain on foreign exchange transactions

 

111,564

 

135,126

 

30       PROVISIONS

 

 

 

2003

 

2002

 

 

YR’000

 

YR’000

Provision for investment risk

 

124,798

 

210,762

Provision for debit balances and other assets (note 15 a)

 

41,308

 

27,970

Provision for contingent liabilities (note 20)

 

33,486

 

24,836

Provision for employees end of service (note 20)

 

6,801

 

6,288

Total provisions required

 

206,393

 

269,856

Less: Amount transferred from revenue prohibited by Islamic Shari a (note 31)

 

 

(158,273)

 

 

(33,674)

Provision charged to statement of income

 

48,120

 

236,182

 

31         REVENUE PROHIBITED BY ISLAMIC SHARIA  

 

The revenue prohibited by Shari a, including interest on statutory deposits in Yemeni Rials with the Central Bank of Yemen, are recorded in a separate account under "credit balance and other liabilities" on the balance sheet.  The amounts in this account are utilized in granting assistance grants and donations and the resultant balance is applied to cover any shortfall in the provisions required for the Bank’s investment and loan risks.

 

 

2003

 

2002

 

 

YR’000

 

YR’000

Revenue generated during the year

 

184,908

 

46,559

Donations paid during the year

 

(26,635)

 

(12,885)

Balance transferred to provisions account (note 30)

 

(158,273)

 

(33,674)

Balance at 31 December

 

-

 

-

 

32        GENERAL AND ADMINISTRATION EXPENSES

 

 

2003

 

2002

 

 

YR’000

 

YR’000

Salaries, wages and related costs

 

187,538

 

148,554

Rents

 

19,357

 

23,249

Water and electricity

 

10,351

 

8,371

Stationery and printing supplies

 

12,544

 

10,394

Telephone, telexes and postage

 

21,005

 

17,895

Entertainment expenses

 

4,523

 

5,307

Repairs and maintenance

 

18,465

 

15,384

Transportation and communication

 

28,397

 

29,926

Promotion and publication

 

15,403

 

15,373

Local taxes, dues and fees

 

4,828

 

5,788

Insurance

 

16,936

 

15,583

Service expenses

 

217

 

1,246

Other general and administration expenses

 

42,248

 

27,432

Depreciation of property and equipment (note 16)

 

61,635

 

49,305

Total general and administration expenses

 

443,447

 

373,807

 

33        ZAKAT

 

 

2003

 

2002

 

 

YR’000

 

YR’000

Zakat for the year 2002

 

30,643

 

-

Zakat for the year 2003

 

35,236

 

25,018

 

 

65,879

 

25,018
34        INCOME TAX PAYABLE

 

 

2003

 

2002

 

 

YR’000

 

Y’000

Taxable profit 

 

132,857

 

-

Provision for Taxation on profit of trading and manufacturing

 

46,500

 

-

Since the Bank was exempted from Income Tax on its profits until 7 June 2003, the charge for the year has been calculated on the net profit realized during the period from 8 June 2003 to 31 December 2003.

 

35        EARNINGS PER SHARE

 

 

2003

 

2002

 

 

YR’000

 

Y’000

Net profit for the year before Board of Directors’ fees

 

228,227

 

144,248

Less:  Board of directors’ fees

 

(6,082)

 

(6,000)

Net profit for the year after Board of Directors; fees

 

222,145

 

138,248

Weighted average of number of shares

 

1,250

 

1,250

 

Earnings per share

 

178

 

111

36       MATURITIES OF ASSETS AND LIABILITIES

a)            31 December 2003

 

ASSETS

3

months

 

 6

months

 

 9

months

 

one year

 

 

Over

1 year

 

 

 

Total

 

YR

million

 

YR

million

 

YR

million

 

YR

million

 

YR

million

 

YR

million

Due from banks and financial institutions

498

 

398

 

166

 

920

 

-

 

1,982

Financing murabaha contracts

4,499

 

2,440

 

518

 

736

 

1,238

 

9,431

Investment in mudaraba contracts

41

 

23

 

-

 

-

 

-

 

64

Investment in musharaka contracts

353

 

222

 

-

 

-

 

-

 

575

Investment in securities 

-

 

-

 

-

 

-

 

13

 

13

Letters of credit

450

 

455

 

454

 

454

 

-

 

1,813

 

Overdrawn accounts

291

 

290

 

290

 

290

 

-

 

1,161

 

TOTAL ASSETS

6,132

 

3,828

 

1,428

 

2,400

 

1,251

 

15,039

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

Customers' deposits

6,841

 

-

 

-

 

-

 

-

 

6,841

Due to banks and financial institutions

67

 

-

 

-

 

-

 

-

 

67

Unrestricted investments and savings accounts

642

 

303

 

282

 

470

 

5,005

 

6,702

TOTAL LIABILITIES

7,550

 

303

 

282

 

470

 

5,005

 

13,610
                       

 

b)            31 December 2002

 

ASSETS

3 months

 

 6 months

 

9

months

 

One year

 

 

Over

1 year

 

 

 

Total

 

YR

million

 

YR

million

 

YR

million

 

YR

million

 

YR

million

 

YR

million

Due from banks and financial institutions

372

 

284

 

118

 

639

 

-

 

1,413

Financing murabaha contracts

3,614

 

1,960

 

416

 

591

 

995

 

7,576

Investment in mudaraba contracts

196

 

-

 

-

 

-

 

-

 

196

Investment in musharaka contracts

339

 

213

 

-

 

-

 

-

 

552

Investment in securities

-

 

-

 

-

 

-

 

121

 

121

Letters of credit

96

 

97

 

97

 

97

 

-

 

387

 

Overdrawn accounts

137

 

137

 

137

 

137

 

-

 

548

 

TOTAL ASSETS

4,754

 

2,691

 

768

 

1,464

 

1,007

 

10,684

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

Customers' deposits

4,853

 

-

 

-

 

-

 

-

 

4,853

Due to banks financial institutions

98

 

-

 

-

 

-

 

-

 

98

Unrestricted investments and savings accounts

496

 

234

 

218

 

363

 

3,867

 

5,178

TOTAL LIABILITIES

5,447

 

234

 

218

 

363

 

3,867

 

10,129
                       

37          DISTRIBUTION OF ASSETS, LIABILITIES, CONTINGENT LIABILITIES AND COMMITMENTS

a)         The distribution of the assets and liabilities and contingent liabilities and commitments as at 31 December 2003 were as follows:

 

Manufacturing

YR

million

 

Agriculture

 YR’

million

 

Trade

YR

million

 

Service

YR

million

 

Finance

 YR

million

 

Other

 YR

million

 

Total

YR

million

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

Due from banks and financial institutions

-

 

-

 

-

 

-

 

1,982

 

-

 

1,982

Financing murabaha

1,886

 

73

 

6,130

 

753

 

-

 

589

 

9,431

Investment in mudaraba

-

 

-

 

-

 

-

 

64

 

-

 

64

Investment in musharaka

-

 

-

 

-

 

-

 

575

 

-

 

575

Investment in securities

-

 

-

 

-

 

-

 

13

 

-

 

13

Total Assets

1,886

 

73

 

6,130

 

753

 

2,634

 

589

 

12,065

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

Customers' deposits

795

 

-

 

3,917

 

382

 

-

 

1,747

 

6,841

Unrestricted investments and savings accounts

-

 

-

 

4,355

 

1,138

 

-

 

1,209

 

6,702

Due to banks and financial institutions

-

 

-

 

-

 

-

 

67

 

-

 

67

Total Liabilities

795

 

-

 

8,272

 

1,520

 

67

 

2,956

 

13,610

Contra accounts and other commitments

 

 

 

 

 

 

 

 

 

 

 

 

 

Letters of credit

1,522

 

-

 

10,673

 

-

 

-

 

-

 

12,195

Letters of guarantee 

-

 

-

 

-

 

3,002

 

-

 

-

 

3,002

others

-

 

-

 

568

 

315

 

-

 

380

 

1,263

 

1,522

 

-

 

11,241

 

3,317

 

-

 

380

 

16,460

 

b)            The distribution of the assets and liabilities and contingent liabilities and commitments as at 31 December 2002 were as follows:

 

Manufacturing

YR

million

 

Agriculture

YR

million

 

Trade

YR

million

 

Service

YR

million

 

Finance

YR

million

 

Other

YR

million

 

Total

YR

million

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

Due from banks and financial institutions

-

 

-

 

-

 

-

 

1,413

 

-

 

1,413

Financing murabaha

1,515

 

59

 

4,924

 

605

 

-

 

473

 

7,576

Investment in mudaraba

-

 

-

 

-

 

-

 

196

 

-

 

196

Investment in musharaka

-

 

-

 

-

 

-

 

552

 

-

 

552

Investment in securities

-

 

-

 

-

 

-

 

12

 

-

 

12

Total Assets

1,515

 

59

 

4,924

 

605

 

2,173

 

473

 

9,749

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

Customers' deposits

564

 

-

 

2,779

 

271

 

-

 

1,747

 

4,853

Unrestricted investments and savings accounts

-

 

-

 

3,365

 

879

 

-

 

1,209

 

5,178

Due to banks

-

 

-

 

-

 

-

 

98

 

-

 

98

Total Liabilities

564

 

-

 

6,144

 

1,150

 

98

 

2,956

 

10,129

Contra accounts and other commitments

 

 

 

 

 

 

 

 

 

 

 

 

 

Letters of credit

809

 

-

 

5,671

 

-

 

-

 

-

 

6,480

Letters of guarantee

-

 

-

 

-

 

2,441

 

-

 

-

 

2,441

others

-

 

-

 

726

 

403

 

-

 

486

 

1,615

 

809

 

-

 

6,397

 

2,844

 

-

 

486

 

10,536

38       SIGNIFICANT FOREIGN CURRENCIES’ POSITIONS

The Central Bank of Yemen circular no. (6) of 1998 establishes limits for positions in individual foreign currencies as well as an aggregate limit for all currencies.  These limits are 15% and 25% of capital and reserves respectively.  The Bank had the following significant net exposures denominated in foreign currencies:

 

2003

 

2002

 

YR000

 

%

 

YR’000

 

%

United States dollar

2,531,197

 

162%

 

297,031

 

19%

Euro

283,072

 

18%

 

12,755

 

1%

Saudi Rials

384,433

 

25%

 

21,040

 

1%

Pound sterling

(7,558)

 

-

 

2782

 

-

Other

(326)

 

-

 

315

 

-

Aggregate foreign currency positions

3,190,818

 

204%

 

333,923

 

22%

39       RELATED PARTY TRANSACTIONS

The Bank, in the normal course of business, carries out transactions with companies which fall within the definition of a related party as contained in International Financial Reporting Standard no. (24).  These transactions are in the nature of financing murabaha transactions and other products.  Management believes that the terms and conditions of such transactions are not significantly different from those that are entered into with third parties.

The nature and balances of significant transactions with related parties are as follows:

 

2003

 

2002

 

 

YR ’000

 

YR’000

Financing murabaha contracts

146

 

1,939

Current accounts

550

 

537

Credit balances

81

 

138
       

 

40       COMPARATIVE FIGURES

Certain prior year amounts have been reclassified to conform to the presentation in the current year.