Barclays Zimbabwe Results

Audited Financial Results for the year ended 31 December 2012
Chairmans Statement
Dear Shareholder
This report comes to you at a time the Bank has just celebrated its hundred years of existence in Zimbabwe. It is most befitting for me, therefore, to start by thanking you our shareholders and all who have contributed to this success and heritage. We thank our most valuable customers, amongst them some who have been with the Bank for longer than half of the century and colleagues in the Bank who continued to apply themselves diligently to serve them. We appreciate the regulatory authorities that successively shaped the banking industry over the century. Our pledge and commitment is to continue this proud heritage into the next century.
Regulatory compliance
The Bank remained compliant with the Central Bank minimum capital and capital adequacy requirements. In addition, prudential lending practices were adhered to throughout the period. Looking forward, the Bank is well positioned to satisfy the new Basel II requirements. The Bank also met the requirement to submit, by end of September 2012, capitalisation plans to meet the new minimum capital levels with set six-monthly milestone increases to reach US$100 million by 30 June 2014.
Business landscape
Economic performance indicators for 2012 were revised down with the gross domestic product growth initially targeted at 8% expected to be at a modest 5%. On a positive note inflation ended the year with the closing annual inflation at 2.91%, well below the initial projection of 5%. Average interest rates continued on a downward and convergence trend. The use of multi-currencies has continued to sustain relative economic stability. A key challenge going forward is the need to ensure that the sources of foreign currency are preserved and promoted: exports, foreign direct investment, portfolio investments and diaspora funds are the source of liquidity under any dollarized or multicurrency system. Conversely, measures to contain the import bill are required. Fiscal policy reviews during the year indicated a rising balance of payments deficit, and this manifested in constrained economic growth figures, and for the banking sector, slower growth in deposits which also remained largely short term. The Bank continued to adapt to the developments in the market with the thrust being to ensure sustainable growth over the long term. Thus for Barclays Zimbabwe the safety of depositors funds and the ability to provide superior transactional services remained paramount. Our quest remains to help our customers and stakeholders achieve their ambitions in the right way.
Governance
There were no changes to the directorship during the period under review. Over the period your Board comprised three executive directors and five independent non executive directors. I continue to enjoy the support of Board members who value and always seek to uphold the best corporate governance standards and see them permeated across the whole organisation.
Community involvement
Barclays remains committed to the development of local communities focusing on skills transfer to youth and young adults in areas of financial, entrepreneurial and life skills. A new partnership with UNICEF will enable 1 500 youths directly and 25 000 youths indirectly to understand the budgetary process at all levels. The Junior Achievement Zimbabwe program continues to engage young people on entrepreneurship opportunities that are available to them whilst the Grassrootssoccer program touched the lives of more than 5 000 children through life skills initiatives on HIV in Bulawayo. Our traditional Make A Difference Day saw 64 different projects with over 500 colleagues benefiting a number of local communities across the country.
Outlook
Whilst the economic landscape still presents significant uncertainties, we continue to be encouraged by the commitment on the part of authorities to ensure that the business environment continues to improve. The Banks balance sheet will continue to grow and, with it interest income generating capacity. We are also excited about new products we have lined up for our customers into 2013. If macroeconomic fundamentals continue being stable or improve, the business is poised for faster growth going forward.
Capital and liquidity

The total capital adequacy ratio closed the year at 18%, ahead of the regulatory minimum of 12%. This is after the risk weighted assets grew significantly on the back of higher loans and advances. The liquidity ratio closed the year at 58%, ahead of the regulatory minimum of 30%. The Bank also continued to focus on ensuring that deposit concentration risk stayed under control. This is especially considered critical in the prevailing market in which the largest portion of customer liabilities are demand deposits.
Dividend
In view of the regulatory requirement to increase capital going forward, no dividend is proposed for 2012. A. S. Mandiwanza Chairman 28 March, 2013
Lending
The loan portfolio increased by 57% to close the year at US$93 million excluding impairment. The loan loss ratio remained well within 1% reflecting a quality loan book. The portfolio continues to be tested on the basis of alternative provisioning methods to ensure adequacy of the provisions.
Earnings performance
The Bank registered a profit after tax of US$2.1 million and comprehensive income of US$5.8 million for the year. This result translates to a basic earnings per share of 0.10 cents (2011 0.07 cents per share). Net interest income grew by 13.7% whilst non funded income excluding once off custody compensation increased by 10.7%. Operating costs excluding the effects of restructuring costs incurred in 2011 grew by 13.7%. Payback on the restructuring costs incurred in 2010 and 2011 is on track.
Managing Directors Statement

Our vision is to become the Go-To bank. We remain committed to realising this vision through strict adherence to our strategic focus, continuous improvement of the customer experience and relentless execution of business priorities. Our Strategy
Our vision to become the Go-To bank is underpinned by our business values which provide us with the ability to make long term sustainable returns. The business model that we pursue is supported by solid capital, liquidity and funding positions which provide us with the flexibility and confidence to meet the economic and regulatory challenges in the medium to long term. During the year under review, we remained cognisant of our commitment to focus on our customers while playing our part in the development of the economy and remained mindful of the needs of our regulators, shareholders, colleagues as well as the communities in which we operate. Our loan book grew with US$93 million advanced to businesses in various sectors of the economy as well as some retail customers. As compared to prior year, we registered a growth of 57% from US$59 million. Barclays will continue to grow the asset book in a manner that ensures the quality of our book remains high. Our deposits continued to grow steadily from US$213.7m in prior year to US$224.8m in 2012. While the market continued to face uncertainties, we made progress towards growing our customer base, deepening our product offering while maintaining a robust risk management framework. We also continued to focus on initiatives to enhance operational efficiencies.
2012 our centenary year

In 2012 we celebrated a significant milestone as we attained 100 years of doing business in Zimbabwe. I am pleased to report that during the year we celebrated this milestone with all our stakeholders through a number of activities. Of note were the centenary charity fun walks during which we walked 10 km in 10 provinces of the country raising money for charity. A total of 3 000 stakeholders cumulatively walked almost 30 000km. We capped the celebrations by launching new corporate wear which symbolises the beginning of a new journey as we start another 100 years of serving Zimbabwe. In line with our commitment to positively impact the communities that we do business in, we supported 64 projects, dedicating 3 986 man hours and directly impacting 6 761 people through our annual Make a Difference Day.
Looking ahead
We anticipate that the hosting of the UNWTO conference in 2013 will start to signal impetus to the growth of the economy from increased tourist arrivals expected before, during and after the event. We are confident that the growth being witnessed in the mining sector particularly in gold, platinum and diamonds will provide the economy with the much needed liquidity which will in turn allow the banking sector to continue on a growth path. I am confident that the various interventions, such as the establishment of the credit bureau, will go a long way in improving the lending environment. While we determine that certain measures introduced in the banking sector may, in the short to medium term negatively impact our income, I am confident that the strides that we have made in growing our customer base, deepening our product offering and investing in technology and channel enhancements will enable us to continue on our growth trajectory. I extend my appreciation to all the stakeholders who continue to contribute to the success of Barclays. G. T. Guvamatanga Managing Director 28 March 2013
Partnerships with our Customers

We consider our customers as key business partners and as such our actions are shaped by the conversations that we have with them. We launched and enhanced our internet offering which enables our customers to transact on their personal computers, laptops and smart phones. Customer convenience was improved through expanding our ATM footprint, including two new sites in Harare. In line with our commitment of enhancing our customer offering, we also launched a Visa platinum debit card to our Premier Banking customers. We are continuously reviewing our channel offering to leverage on the developments in the Information Communication Technologies sector to ensure an exciting banking experience for our customers. A number of products and channels have been lined up for launch in 2013.
Corporate Governance Statement

The Board of Directors is committed to the establishment, monitoring and practice of the highest corporate governance standards in the operations and structures of the Bank. Among its top priorities is ensuring effective control and timely and accurate disclosure of material information about the Bank. Laws, regulations and regulatory guidelines and directives are observed and complied with without exception. The Bank subscribes to the principles of international best practice as guided by local regulatory and the Barclays Group Corporate Governance guidelines. The Board of Directors is committed to the creation and sustenance of shareholder value and ensuring that the Banks conduct in all areas is beyond reproach.
Loans Review Committee

This Committee has the overall responsibility for the complete review of the quality of the Banks loan portfolio to ensure that the lending function conforms to sound lending policies and keeps the Board and management adequately informed on noted risks. It assists the Board with discharging its responsibility to review the quality of the Banks loan portfolio. At every meeting, it reviews the quality of the loan portfolio with a view to ensuring compliance with the banking laws and regulations and all other applicable laws as well as internal policies. The Committee comprises two independent non-executive directors and one executive director. The members of the Committee as at 31 December 2012 were:C.F. Dube (Chairman) A. I. Lawson S. Matsekete
Main Board
The Board of Directors is led by an independent non-executive chairman, thereby ensuring effective and constructive checks and balances between the Managing Director and Board Chairman. The Directors held thirteen Board meetings in 2012 during which policies governing the Bank were discussed among other items. The Board comprises three executive directors and five independent non-executive directors. The Board has delegated some of its duties and responsibilities to sub-committees to ensure the efficient discharge of the same. The ultimate responsibility of running the Bank, however, still remains with the Board. The sub-committees of the Board are as detailed below.
Human Resources and Nominations Committee

The Human Resources and Nominations Committee assists the Board in the review of critical personnel issues as well as acting as a Remuneration and Terminal Benefits Committee. The Committee reviews and approves overall recommendations on employee remuneration as well as approving managerial appointments. The Committee ensures that the remuneration of directors is in line with the nature and size of the operations of the Bank as well as the Banks performance. In addition, the Committee also considers nominations to the Board and succession planning for the Board. The Committee comprises two independent non-executive directors and one executive director. The members of the Committee as at 31 December 2012 were:Prof H.C. Sadza (Chairman) A. S. Mandiwanza G. T. Guvamatanga
Audit Committee
The primary functions of the Committee are to review the companys accounting policies, the contents of the financial reports, disclosures, controls and procedures, managements approach to internal controls, the adequacy and scope of the external and internal audit functions, compliance with regulatory and financial reporting requirements, oversee the relationship with the companys external auditors, as well as providing assurance to the Board that managements control assurance processes are being implemented and are complete and effective. At each meeting, the Committee reviews reported and identified weaknesses in controls and any deficiencies in systems and the remediation plans to address them. The Committee also monitors the ethical conduct of the Bank, its executives and senior officers and advises the Board as to whether or not the Bank is complying with the aims and objectives for which it has been established. During the period under review, there were no material losses as a result of internal control breakdowns. The committee is wholly composed of independent non-executive directors. The members of the Committee as at 31 December 2012 were:A. I. Lawson (Chairman) C. F. Dube E. Fundira
Executive Committee (EXCO)

The Executive Committee is the business management forum responsible for the delivery of the Banks business plans. The Executive Committee acts as a link between the Board and management and is responsible for implementation of business plans, annual budgeting and periodic review of strategic plans, as well as identification and management of key risks. The Executive Committee also reviews and approves guidelines for employee remuneration. The Executive Committee assists the Managing Director to manage the Bank, to guide and control the overall direction of the business of the Bank. The Committee is composed of executive directors and senior management.
Assets and Liabilities Committee (ALCO)

ALCO is tasked with ensuring the achievement of sustainable and stable profits within a framework of acceptable financial risks and controls. ALCO ensures maximization of the value that can be generated from active management of the Banks balance sheet and financial risk within agreed risk parameters. It manages the funding and investment of the Banks balance sheet, liquidity and cash flow, as well as exposure of the Bank to interest rate, exchange rate, market and other related risks. It ensures that the Bank adopts the most appropriate strategy in terms of the mix of assets and liabilities given its expectation of the future and potential consequences of interest rate movements, liquidity constraints and foreign exchange exposure and capital adequacy. It also ensures that strategies conform to the Banks risk appetite and level of exposure as determined by the Risk Management Committee. The Committee comprises executive directors and heads of functions key to the proper discharge of the Committees responsibilities.
Credit Committee
The Board Credit Committee is tasked with the overall review of the Banks lending policies. At each meeting, the Committee deliberates and considers loan applications beyond the discretionary limits of management. It ensures that there are effective procedures and resources to identify and manage irregular or problem credit facilities, minimize credit loss and maximize recoveries. It also directs, monitors, reviews and considers all issues that may materially impact on the present and future quality of the Banks credit risk management. The Committee comprises two executive members and two independent non-executive directors. The members of the Committee as at 31 December 2012 were:E. Fundira (Chairman) Prof. H. C. Sadza G. T. Guvamatanga J. Phiri

Corporate Governance Statement (continued)
Risk Management Committee (also known as Risk and Control Committee)
This Committee ensures that the management and operation of the Banks business is done within the governance and control framework established by Barclays and other regulatory bodies. It determines and approves business level policies, ensuring consistency with the Barclays Group policies. It assists the Board of Directors in the discharge of its duties relating to corporate accountability and associated risks in terms of management, assurance and reporting. At every meeting, the Committee reviews internal audit reports and assesses the integrity of the risk control systems as well as ensuring that the risk policies and strategies are effectively managed. The Committee also monitors external developments relating to the practice of corporate accountability and reporting of specific associated risks, including emerging risks and their potential impact. The Committee comprises executive directors and management.
Directors Shareholding
The following is a schedule of the directors shareholdings in the Bank as at 31 December 2012 A.S. Mandiwanza C.F. Dube Prof H.C. Sadza E. Fundira G. T. Guvamatanga S. Matsekete J. Phiri A.I. Lawson 5 117 Nil Nil 2 130 Nil 10 000 Nil 15 542
Board Evaluation
The Board conducts an annual peer based evaluation of the effectiveness of its operations. The process entails the members collectively evaluating the effectiveness of the Board as well as each other individually as the members. The evaluation considers specific criteria such as structure of the Board, effectiveness of committees, strategic leadership, corporate responsibility, attendance and participation of members and overall weaknesses noted. Action plans are put in place to address identified weaknesses with a view to continuously improving the performance of the Board and the individual members. The Board Evaluation for 2012 has commenced and will be concluded in the first half of 2013.
Annual Financial Statements

The Directors are responsible for the preparation and integrity of the financial statements and related financial information contained in this report. The financial statements are prepared in accordance with generally accepted local and international accounting practices and they incorporate full and responsible disclosure to ensure that the information contained therein is both relevant and reliable.
Board and Board Sub-Committees Attendance 2012

Main Board Name
A. S. Mandiwanza C. F. Dube Prof H. C. Sadza E. Fundira G. T. Guvamatanga J. Phiri A.I. Lawson S. Matsekete
Statement of Financial Position

as at 31 December 2012
Nil 3 3 1 Nil 8 Nil Nil
Total Meetings
13 13 13 13 13 13 13 13
Total Present
13 10 10 12 13 5 13 13
Total Absent
Assets Cash and bank balances Statutory reserves Loans and advances to banks Loans and advances to customers Derivative assets Investment securities Other assets Current income tax asset Investment property Property and equipment Total assets Liabilities Derivative liabilities Bank balances due to group companies Deposits from banks Deposits from customers Other liabilities Current income tax liabilites Deferred income tax liabilities Total liabilities Equity Share capital Share premium Other reserves Retained earnings Total equity Total equity and liabilities
Note
3 4 5 6 7 10 11 12
31.12. 2012 US$

128,111,891 300,983 91,744,792 3,435 14,509,647 5,385,467 20,670,000 20,800,708 281,526,923
31.12. 2011 US$

147,863,042 10,246,892 9,371 58,517,676 1,629,137 5,544,892 83,860 15,000,000 21,140,534 260,035,404
Audit Committee Name

A. I. Lawson E. Fundira C. F. Dube
Total Meetings
5 5 5
Total Present
5 5 5
Total Absent
Nil Nil Nil
Human Resources & Nominations Committee Name

Prof H. C. Sadza A.S. Mandiwanza G. T. Guvamatanga
Total Meetings
4 4 4
Total Present
4 4 4
Total Absent
Nil Nil Nil
9 13 14 17 221,485 958 224,778,193 11,561,969 285,191 4,150,514 240,998,310
5,687 194,148 17,160 213,697,229 7,826,284 4,784,030 226,524,538
Credit Committee Name

E. Fundira Prof H. C. Sadza J. Phiri G.T. Guvamatanga
Total Meetings
24 24 24 24
Meetings supposed to attend

23 19 8 19
Total present
22 18 3 17
Total Absent
1 1 5 2
18 18 18
215,306 23,642,135 13,153,197 3,517,975 40,528,613 281,526,923
215,273 23,640,259 7,924,556 1,730,778 33,510,866 260,035,404
Loans Review Committee Name

C. F. Dube A. I. Lawson S. Matsekete By Order of the Board Wellington Chimwaradze Company Secretary 28 March 2013
Total Meetings
4 4 4
Total Present
4 4 4
Total Absent
Nil Nil Nil
Statement of Profit & Loss and Other Comprehensive Income

for the year ended 31 December 2012
31.12. 2012 Note
Interest and similar income Interest and similar expense Net interest income Impairment losses on loans and advances Net interest income after loan impairment charges Special support from Barclays Head Office Non-funded income Total income Operating expenses Profit before income tax Income tax charge Profit for the year Other comprehensive income Gain on disposal of available for sale financial assets reclassified to other income Gain on available for sale financial assets Tax effect thereof Property revaluation surplus Tax effect thereof Total other comprehensive income for the year, net of tax Total comprehensive income for the year Basic earnings per share (US cents) Diluted earnings per share (US cents) (9,495) 630,522 (191,367) 4,017,808 (811,856) 3,635,612 5,760,525 0.10 0.10 501,581 (151,774) 349,807 1,753,912 0.07 0.07 16 20 20.2 19 24
Statement of Cash Flows

Note
Cash flow from operating activities Profit before income tax Adjustments for non-cash items: Impairment losses on loans and advances Depreciation of property and equipment Impairment charge/(reversal) of equipment Impairment reversal of property (Profit)/loss on disposal of property and equipment Gain on disposal of equity investment reclassified from other comprehensive income Staff loan prepayment amortisation Medical aid accrual fund Share based payment expense Derivative (assets)/liabilities Cash flow from operating activities before changes in working capital Increase in loans and advances to customers Decrease in statutory reserves Decrease/(increase) in other assets Increase in deposits from customers Increase/(decrease) in other liabilities Income taxes paid Net cash generated from operating activities Cash flow from investing activities Purchase of property and equipment Proceeds from sale of property and equipment Purchase of investment securities Proceeds from sale of investments Net cash used in investing activities Net decrease in cash and cash equivalent Cash and cash equivalents at the beginning of the year Effect of exchange rate and other changes on cash and cash equivalents Cash and cash equivalents at the end of the year 3.1 12 (3,045,302) 183,042 (10,245,376) 26,630 (13,081,006) (17,735,630) 147,661,105 296,198 130,221,673 (1,245,385) 194,516 (1,050,869) 16,934,874 130,726,231 147,661,105 12 3,052,563 532,182 1,857,827 25,892 (247,000) (86,825) (9,495) (21,881) 1,694,797 93,470 (3,435) 6,888,095 2,118,100 504,962 1,584,436 (60,789) 245,891 (29,783) 1,008,352 412,821 5,687 5,789,677
31.12. 2011 US$

8,872,854 (2,149,762) 6,723,092 (504,962) 6,218,130 7,692,960 25,776,283 39,687,373 (37,569,273) 2,118,100 (713,995) 1,404,105
US$
9,906,870 (2,264,439) 7,642,431 (532,182) 7,110,249 29,987,271 37,097,520 (34,044,957) 3,052,563 (927,650) 2,124,913
31.12. 2012 US$
31.12. 2011 US$
(33,737,417) 10,246,892 159,425 11,080,964 2,040,888 (1,333,471) (4,654,624)
(15,863,353) 30,461 (2,117,621) 32,474,652 (999,934) (1,328,139) 17,985,743

Statement of Changes in Equity
Share capital US$
Balance at 1 January 2011 Profit and loss Profit for the year Other comprehensive income Fair value gain on available for-sale- financial assets, net of tax Regulatory impairment allowances Total comprehensive income for the year Transactions with owners Employee share option scheme: - value of employee services charged to income statement -group share based payments -transfer to share capital and share premium on exercise of options Deferred tax adjustment Balance at 31 December 2011 Balance at 1 January 2012 Profit and loss Profit for the year Other comprehensive income Fair value gain on available for-sale- financial assets, net of tax Gain on disposal of available for sale reserve reclassified to statement of comprehensive income net of tax Revaluation of property, net of tax Regulatory impairment allowances Total comprehensive income for the year Transactions with owners Employee share option scheme: - value of employee services charged to income statement -group share based payments -transfer to share capital and share premium on exercise of options Deferred tax adjustment on reclassification from PPE to investment property Adjustment to other assets Balance at 31 December 2012 33 215,306 23,642,135 1,876 996,896 861,867 301,885 7,796,469 3,205,952 343,951 3,517,975 50,600 42,870 (1,909) 809,929 50,600 42,870 861,867 301,885 40,528,613 438,680 (9,020) 429,660 3,205,952 3,205,952 337,716 337,716 (337,716) 1,787,197 438,680 (9,020) 3,205,952 5,760,525 2,124,913 2,124,913 15 215,273 215,273 6,768 23,640,259 23,640,259 567,236 567,236 438,025 6,632,717 6,632,717 6,235 6,235 1,730,778 1,730,778 53,691 359,130 (6,783) 718,368 718,368 53,691 359,130 438,025 33,510,866 33,510,866 349,807 349,807 (94,677) (94,677) 94,677 1,498,782 349,807 1,753,912 1,404,105 1,404,105 215,258
Share premium US$

23,633,491
Available for sale reserves US$

217,429
Non distributable reserves US$

6,194,692
Property revaluation reserves US$

-
General reserve US$

100,912
Accumulated profits US$

231,996
Share option reserve US$

312,330
Total US$
30,906,108
Notes to the Financial Results

1. General information
Barclays Bank of Zimbabwe Limited (the Bank) provides retail, corporate and investment banking services in Zimbabwe. The Bank which is incorporated and domiciled in Zimbabwe is a registered commercial Bank under the Zimbabwe Banking Act, Chapter (24:20). The ultimate parent company is Barclays Bank Plc. The Bank has a primary listing on the Zimbabwe Stock Exchange. The audited financial results for the year were approved for issue by the Board of Directors on 28 March 2013.
4. Statutory reserves 31.12. 2012 US$

Statutory reserves Total -
31.12. 2011 US$

10,246,892 10,246,892
2. Basis of preparation 2.1 Statement of compliance

The Banks audited financial results are prepared and presented on the basis that they reflect the information necessary to be a fair summary of the annual financial statements from which they are derived. This includes financials results that agree with or can be recalculated from the related information in the audited annual financial statements and that contain the information necessary so as not to be misleading in the circumstances. The information contained in these financial results does not contain all the disclosures required by International Financial Reporting Standards, the Zimbabwe Companies Act (Chapter 24:03) and the Zimbabwe Banking Act (Chapter 24:20), which are disclosed in the full annual financial statements from which this set was derived. For a better understanding of the Banks financial position, its financial performance and cash flows for the year, the financial results should be read in conjunction with the audited full annual financial statements. The full signed annual report can be obtained upon request from the company secretary at the registered office of the Bank. 2.2 Basis of measurement The audited financial results have been prepared on the historical cost basis except for the following: 1. Available-for-sale financial assets measured at fair value 2. Investment property is measured at fair value 3. The liability for pensioners` medical aid is recognised as the present value of expected future medical payment based on employee life expectancy. 4. Derivative assets/liabilities measured at fair value. 5. Buildings are measured using the revaluation model. Revaluation is done after every 3 years.
Statutory reserves were converted to Government bonds with effect from 1 January 2012. The maturity of the bonds ranges from 2 to 4 years. (refer to note 7.1).
5. Loans and advances to banks 31.12. 2012 US$

Items in course of collection from other banks Placements with other banks Included in cash and cash equivalents Loans and advances to other banks Less: allowance for impairment Total Current Non-current Total 300,983 300,983 300,983 300,983 300,983 300,983
31.12. 2011 US$

9,371 9,371 9,371 9,371 9,371 9,371
6. Loans and advances to customers 31.12. 2012 US$

Personal lending Wholesale and corporate loans and advances Gross loans and advances to customers Less allowance for impairment Interest in suspense Loans and advances to customers Current Non-current 13,467,781 79,889,617 93,357,398 (1,545,405) (67,201) 91,744,792 67,183,119 24,561,673 91,744,792 58,517,676 55,675,391 2,842,285 58,517,676
31.12. 2011 US$

4,252,131 55,278,768 59,530,899 (1,013,223) -
2.3 Functional and presentation currency

These audited financial results are presented in United States of America dollars (US$) which is the Banks functional currency.
2.4 Accounting policies

The accounting policies applied in the preparation of the audited financial results are consistent with prior year.
3. Cash and bank balances 31.12. 2012 US$

Cash in hand Balances with the Central Bank other than mandatory reserve deposits Bank balances due from group companies (Note 9.4) Total cash and bank balances Current Non-current Total 56,494,955 51,560,655 20,056,281 128,111,891 128,111,891 128,111,891
31.12. 2011 US$

34,051,513 28,314,858 85,496,671 147,863,042 147,863,042 147,863,042
Total A further analysis of loans and advances is included in Note 24.
7. Investment securities 31.12. 2012 US$

Investment securities held-to-maturity (Note 7.1) Investment securities available-for-sale (Note 7.2) At 31 December 10,245,376 4,264,271 14,509,647
31.12. 2011 US$

1,629,137 1,629,137
3.1. Cash and cash equivalents

Cash and cash equivalents comprise balances with less than three months maturity from the date of acquisition, including cash on hand, deposits held on call with other banks and other short-term highly liquid investments with original maturities of three months or less.
7.1 Investment securities held to maturity 2012 US$

At 1 January Additions - Government bonds At 31 December Current Non-current Total 10,245,376 10,245,376 3,073,613 7,171,763 10,245,376
2011 US$
-
31.12. 2012 US$

Cash and bank balances (Note 3) Loans and advances to banks (Note 5) Bank balances due to group companies (Note 9.4) Deposits from other banks (Note 13) Treasury bills (Note 7.2) Total cash and cash equivalents-statement of cash flows 128,111,891 300,983 (221,485) (958) 2,031,242 130,221,673
31.12. 2011 US$

147,863,042 9,371 (194,148) (17,160) 147,661,105

for the year ended 31 December 2012 (continued)
7.2 Investment securities available for sale 2012 US$
As at 1 January Additions Sale and redemption Gains from changes in fair value Impairment losses At 31 December Treasury bills Equity investments Total Current Non-current Total 1,629,137 2,031,242 (26,630) 630,522 4,264,271 2,031,242 2,233,029 4,264,271 2,031,242 2,233,029 4,264,271
9.4 Balances with group companies 2011 US$

1,127,556 501,581 1,629,137 1,629,137 1,629,137 1,629,137 1,629,137 Bank balances due from group companies (Note 3) Bank balances due to group companies (Note 3.1) Other balances due from group companies (Note 10) Total No impairment losses have been recognised for bank balances due from group companies.
31.12. 2012 US$

20,056,281 (221,485) 1,453,116 21,287,912
31.12. 2011 US$

85,496,671 (194,148) 85,302,523
9.5 Foreign exchange swaps and contracts with related parties

As at 31 December 2012, the Bank had the following outstanding swap and forward exchange contract transactions with related parties.
Counterparty
ABSA Capital Barclays Capital At 31 December
31.12.2012 US$
887,460 4,161,228 5,048,688
31.12.2011 US$
1,289,901 1,289,901
7.3 Assets and liabilities measured at fair value at 31 December 2012 Level 1
Derivative assets Investment securities - equity Total assets 31 December 2012 Total assets 31 December 2011 Share Options Total liabilities 31 December 2012 Total liabilities 31 December 2011 2,162,193 2,162,193 1,540,714 -
Level 2
3,435 3,435 809,929 809,929 724,055
Level 3
70,836 70,836 88,423 -
Total
3,435 2,233,029 2,236,464 1,629,137 809,929 809,929 724,055
9.6 Key management compensation 31.12. 2012 US$

Salaries and other short-term employee benefits Post-employment benefits Share-based payments Termination benefits Total 1,193,555 118,424 311,852 1,623,831
31.12. 2011 US$

981,826 68,322 6,066 2,575,592 3,631,806
7.4 Reconciliation of level 3 items Available for sale Financial assets US$
88,423 (17,587) 70,836
Reconciliation of level 3 items

Balance at 1 January Total (losses)/ gains other comprehensive income At 31 December
2012 Available for sale Total assets Financial assets US$ US$
88,423 (17,587) 70,836 76,526 11,897 88,423
2011 Total assets US$

76,526 11,897 88,423
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Bank directly or indirectly. These include the Managing Director, Chief Finance Officer, Risk Director, Banking Divisional Director, Commercial Divisional Director, Head of Operations and IT, Head of Human Resources, Head of Compliance, Head of Premier, Wealth and Customer Service and Company Secretary.
9.7 Balances with parties-related through common directorship/trusteeship 31.12.2012 Loan advances US$
32,687,603 18,532,145 14,155,458 32,687,603
Deposits US$
Total Current Non-current Total 3,049,982 3,049,982 3,049,982
Deposits US$
1,090,272 1,090,272 1,090,272
31.12.2011 Loan advances US$

12,183,000 12,183,000 12,183,000
The following table shows the sensitivity of level 3 measurements to changes in fair value where fair value changes by 10%
Reconciliation of level 3 items

Available-for-sale financial assets
31.12.2012 Favourable Unfavourable Changes Changes US$ US$

7,084 (7,804)
31.12.2011 Favourable Unfavourable Changes Changes US$ US$

13,087 (13,087)
Deposits, loans and advances were made on terms equivalent to those that prevail in arms length transactions.
10. Other assets 31.12. 2012 US$

Prepayments and stationery Card transactions Other debtors Remittances in transit Staff loans market interest rate adjustment Total Current Non-current 794,906 1,278,595 2,689,561 1,449 620,956 5,385,467 4,964,397 421,070
8. Investment in subsidiary companies 31.12. 2012 US$

Fincor Finance Corporation Limited 100% (2011 -100%) Barclays Merchant Bank Limited 100% (2011 -100%) Brains Computer Processing (Private) Limited 100% (2011 -100%) -
31.12. 2011 US$

-
31.12. 2011 US$

1,108,190 2,717,860 1,312,233 1,001 405,608 5,544,892 5,544,892 -
All subsidiaries are incorporated and domiciled in Zimbabwe and are currently dormant and their assets and liabilities are immaterial.
9. Related party balances and transactions

The Bank is controlled by Afcarme Zimbabwe Holdings (Private) Limited incorporated and domiciled in Zimbabwe which owns 68% (2011:68%) of the ordinary shares. The remaining 32% of the shares are widely held. The ultimate parent of the Bank is Barclays Bank Plc incorporated in the United Kingdom. There are other companies which are related to Barclays Bank of Zimbabwe Limited through common shareholdings or common directorship. In the normal course of business, placings of foreign currencies made with group companies are at market interest rates. The related party transactions, outstanding balances at year-end and related expense and income for the year are as follows:
Total 5,385,467 5,544,892 Included in other debtors is a receivable from Barclays Bank Plc of US$1,453,116 for compensation for loss of custody business (Note 19).
11. Investment property 2012 US$

Investment property at fair value as at 1 January 15,000,000 5,670,000 20,670,000 20,670,000 20,670,000 Net gains from fair value adjustment Transfers from property and equipment (Note 12) Other changes Investment property at fair value as at 31 December Current Non-current Total
2011 US$
15,000,000 15,000,000 15,000,000 15,000,000
9.1 Loans and advances to related parties Directors and other key management personnel 2012 2011 US$ US$
Loans outstanding at 1 January Loans issued during the year Loan repayments during the year Loans outstanding at 31 December Current Non-current Total Interest income earned 95,001 509,740 (83,966) 520,775 124,658 396,117 520,775 19,692 70,346 105,327 (80,672) 95,001 36,240 58,761 95,001 2,664
Included in investment property is a property in Victoria Falls which Barclays Bank of Zimbabwe Limited jointly controls with the Barclays Bank Staff Pension Fund. The Banks share (50%) of the Investment property was valued at US$15million as at 31 December 2012 (2011: US$15million). The fair value was determined by an independent valuer by reference to market evidence of selling values of similar properties in the region, and market rental yields. The approval from the Reserve Bank of Zimbabwe to hold the property was extended to 31 December 2013.
12. Property and equipment Year ended 31 December 2012

Leasehold US$ 40,000 3,414 43,414
Of the loans advanced to directors and other key management personnel US$254,283 is not secured. No impairment losses have been recognised in respect of loans advanced to related parties (2011: nil)
9.2 Intra-group exposures

The Bank, during the ordinary course of business did not advance loans and/or guarantees to other group companies and their directors.
9.3 Deposits from related parties Directors and other key management personnel 2012 2011 US$ US$
Deposits at 1 January Deposits received during the year Deposits repaid during the year Deposits at 31 December Current Non-current Total Interest expense on deposits The above deposits are unsecured, carry no interest and are repayable on demand. 7,113 2,517,358 (2,314,565) 209,906 209,906 209,906 33,956 1,846,951 (1,873,794) 7,113 7,113 7,113 -
Opening net book amount Additions Revaluation surplus Disposals Depreciation charge on disposals Transfers to investment property Depreciation charge Impairment reversal Impairment charge Closing net book amount At 31 December Cost or valuation Accumulated depreciation and impairment Net book amount
Land and Buildings US$ 17,576,935 129,399 4,017,808 (5,670,000) (393,640) 247,000 15,907,502
Computers US$ 940,138 496,264 (72,598)

58,777 (425,502) (6,371) 990,708
Other equipment US$ 1,079,838 874,172 (15,462)

9,685 (386,821) (12,752) 1,548,660
Furniture and fittings US$ 277,926 110,616 (24,437)

21,002 (122,346) (6,769) 255,992
Motor vehicles US$ 1,225,697 1,431,437 (275,050)

201,866 (529,518) 2,054,432
Total US$ 21,140,534 3,045,302 4,017,808 (387,547)

291,330 (5,670,000) (1,857,827) 247,000 (25,892) 20,800,708
43,414 43,414
15,907,502 15,907,502
2,294,931 (1,304,223) 990,708
2,344,506 (795,846) 1,548,660
648,044 (392,052) 255,992
3,203,951 (1,149,519) 2,054,432
24,442,348 (3,641,640) 20,800,708
The Banks buildings were revalued on 31 December 2012 by independent valuers. Valuations were made on the basis of recent market transactions on arms length terms and market rental yields. This resulted in the reversal of prior period impairment of US$247,000 and the amount is included in operating expenses. The revaluation surplus net of applicable deferred income taxes was credited to revaluation reserves in equity. If buildings were stated on the historical cost basis, the carrying amount would be US$12,716,094 (2011: US$17,616,935). The amount of US$12,716,094 is after transferring a value of US$4,596,600 to investment property. These properties were reclassified as they no longer met the recognition criteria for property and equipment. The equipment impairment charge of US$25,892 was as a result of internal evaluation of obsolescence of equipment. No items of property and equipment were pledged as at 31 December 2012.

13. Deposits from banks 31.12. 2012 US$
Items in course of collection Deposits from banks Other money-market deposits Total Current Non-current Total 958 958 958 958
19. Non-funded income 31.12. 2011 US$

17,160 17,160 17,160 17,160 Ledger fees Cash withdrawal fees Other fee and commission income Custody compensation Net foreign exchange income Rental income - Jointly controlled property Rental income other bank properties Profit on disposal of assets Bad debts recovered Total
31.12. 2012 US$

8,860,262 8,225,900 7,808,901 1,453,116 2,710,240 261,126 580,901 86,825 29,987,271
31.12. 2011 US$

8,581,089 7,723,919 6,061,633 2,652,272 205,189 501,274 49,667 1,240 25,776,283
The above comprises financial instruments classified as liabilities at amortised cost. Fair value of deposits from banks approximate carrying amount because of their short tenure.
14. Deposits from customers

Deposits due to customers are primarily composed of amounts payable on demand.
31.12. 2012 US$

Large corporate customers: - Current/settlement accounts - Time Small to medium enterprises (SMEs): - Current/settlement accounts - Time Retail customers: - Current/demand accounts - Time Total Current Non-current Total 74,881,684 100,972 224,778,193 224,778,193 224,778,193 25,680,884 122,814,653 1,300,000
31.12. 2011 US$

128,764,335 26,490,475 58,442,419 213,697,229 213,697,229 213,697,229
Barclays Plc sold the custody business across all of its other African markets except Barclays Bank of Zimbabwe Limited. Barclays Bank of Zimbabwe Limited lost significant international relationships established through the other Barclays Africa offices and that were being managed by the Zimbabwean business as sub accounts. Included in non-funded income is US$1,453,116 receivable from Barclays Plc to compensate Barclays Bank of Zimbabwe Limited for some loss of income in its custody business. Barclays Bank of Zimbabwe Limited continues to operate the custody business after some regulatory approvals were not granted and the sale of the Zimbabwean custody business did not go through.
20. Operating expenses 20.1 Staff costs 31.12. 2012 US$

Salaries and allowances Retrenchment costs (Note 20.2) Social security costs Share options granted to directors and employees Pension costs: defined contribution plans Post employment medical benefits Directors remuneration: Fees - for services as directors 105,604 405,923 18,925,300 85,446 330,917 23,903,874 14, 863, 017 45, 527 93,470 1,402,162 2,009,597
31.12. 2011 US$

12, 848, 097 7,860,519 48,446 412,821 1,309,276 1,008,352
Deposits due to customers only include financial instruments classified as liabilities at amortised cost. Fair value of deposits from customers approximates carrying amount because of their short tenure. Included in customer accounts are deposits of US$1,616,163 (2011: US$1,597,597) held as collateral for loans advanced and letters of credit. The fair value of deposits approximates carrying amount.
14.1 Concentrations of customer deposits were as follows: 31.12. 2012 US$

Trade and services Energy and minerals Agriculture Construction and property Light and heavy industry Physical persons Transport and distribution Financial services State Other Total 70,290,529 965,772 9,470,774 2,064,374 13,426,380 74,982,656 38,605,959 14,971,749 224,778,193
%
31 4 1 7 33 17 7 100
31.12. 2011 US$

58,010,069 680,015 31,675,054 735,416 18,036,295 58,244,524 32,951,230 13,364,626 213,697,229
Other - for services as management
%
27 15 9 27 16 6 100
Total staff costs
20.2 Special Support

An amount of US$7,692,960 was received in 2011 from Barclays Head Office. The funds received were applied specifically to retrenchment costs incurred during that year.
20.3 Other administrative expenses include:

31.12. 2012 US$ Property and equipment: -repairs and maintenance -depreciation - other property costs -impairment reversal Security costs Communication costs Auditors remuneration: -current year audit fees -prior year audit fees -other Operating lease payments 149,213 30,466 49,505 2,360,517 4,446,203 15,119,657 18,925,300 34,044,957 117,415 75,407 41,912 1,809,773 4,646,435 13,665,399 23,903,874 37,569,273 1,344,083 1,883,719 1,172,895 (247,000) 2,016,096 1,913,960 1,116,326 1,584,436 1,027,690 (60,789) 1,988,285 1,318,509 31.12. 2011 US$
15. Other financial liabilities

During the period, the Bank did not carry financial liabilities whose carrying amount was different from their fair value.
16. Income tax expense:

Current income tax and deferred income tax on temporary differences have been fully provided for. Deferred income tax is calculated using the liability method.
31.12. 2012 US$

Current income taxes on income for the reporting year Deferred income tax: origination and reversal of temporary differences Income tax charge The income tax rate applicable to the Banks 2012 income is 25,75% (2011:25,75%). (1,702,523) 774,873 (927,650)
31.12. 2011 US$

(1,289,135) 575,140 (713,995)
17. Other liabilities 31.12. 2012 US$

Accrued expenses Internal accounts including bank cheques account Future medical aid liability Other provisions Total Current Non-current Total 883,960 5,464,582 3,974,000 1,239,427 11,561,969 7,902,969 3,659,000 11,561,969
31.12. 2011 US$

606,104 3,390,310 2,279,203 1,550,667 7,826,284 5,774,395 2,051,889 7,826,284
Other expenses Total other administrative expenses Total staff costs (Note 20.1) Total operating expenses
21. Loan commitments, guarantees and other financial facilities

At 31 December, the contractual amounts of the Banks contingent liabilities and commitments that commit it to extend credit to customers, guarantees and other facilities were as follows;
18. Share capital and other reserves 18.1 Share capital Number of shares (millions)
Authorised shares Ordinary shares of USc0.01 Issued shares At 1 January 2012 Employee share option scheme: Proceeds from shares issued At 31 December 2012 2,153 33 215,306 1,876 23,642,135 1,909 23,857,441 Fees and commission income earned (included in other fees and commission note 19) Total funds under custody 2,153 215,273 23,640,259 23,855,532 5,000 500,000 500,000 Loan commitments Guarantees and standby letters of credit Total
31.12. 2012 US$ Ordinary shares US$ Share premium US$ Total US$
37,293,026 2,394,524 39,687,550
31.12. 2011 US$

16,712,192 1,384,544 18,096,736
22. Custodial Services 31.12. 2012 US$

658,906 60,748,989
31.12. 2011 US$

828,355 370,082,170
18.2. Other reserves 31.12. 2012 US$

Non distributable reserve Property revaluation reserve Share option reserve Available for sale reserve General reserve Total 7,796,469 3,205,952 809,929 996,896 343,951 13,153,197
31.12. 2011 US$

6,632,717 718,368 567,236 6,235 7,924,556
The Bank provides custody and trustee services to third parties, which involve the Bank making allocation, purchase and sale transactions based on client instructions and the holding assets (mainly share certificates on behalf of customers). The income from the custody business is expected to decline significantly in future as a result of decline in the custody portfolio.
The unissued share capital is under the control of the directors subject to the restrictions imposed by the Zimbabwe Companies Act (Chapter 24:03), Zimbabwe Stock Exchange listing requirements and the Articles and Memorandum of Association of the Bank.

23. Segment analysis
Management has determined the operating segments based on the reports reviewed by the Executive Committee (the Chief operating decision-maker), which is responsible for allocating resources to the reportable segments and assesses its performance. All operating segments used by the Bank meet the definition of a reportable segment under IFRS 8 (Operating segments). The Executive Committee assesses the performance of the operating segments based on a measure of profit or loss. This measurement basis excludes the effects of non-recurring expenditure from the operating segments such as restructuring costs and legal expenses. The measure also excludes the effects of equity-settled share-based payments and unrealised gains or losses on financial instruments. The Bank has three main business segments Retail banking incorporating direct debit facilities, private customer current accounts, savings, deposits, investment savings products, custody, credit and debit cards, consumer loans; Corporate banking incorporating direct debit facilities, current accounts, deposits, overdrafts, loan and other credit facilities and foreign currency products. Treasury - incorporating financial instruments and foreign currency trading. Treasury also includes the management of the overall bank operating asset balances and balance sheet structure. Revenue allocated to the segments is from external customers who are domiciled in Zimbabwe. There were no trading revenues from transactions with a single external customer that amounted to 10% or more of the Banks revenues. Costs incurred by support functions are allocated to the three main business segments on the basis of determined cost drivers.
24.1(b) Loans and advances neither past due nor impaired

Loans and advances neither past due nor impaired and which are not part of renegotiated loans are considered to be investment grade. Past due loans and advances are those whose repayments (capital and interests) are outstanding for more than 30 days. Such loans are either impaired or renegotiated (Note 24.1d & 24.1f).
24.1 (c) Loans and advances past due but not impaired
Late processing and other administrative delays on the side of the borrower can lead to a financial asset being past due but not impaired. Loans and advances less than 90 days past due are not considered impaired, unless other information is available to indicate the contrary.
31.12.2012 Personal Loans US$

Up to 1 month 1-3 months 3-6 months 6-12 months Over 12 months Total Fair value of collateral Amount under collateralisation -
31.12.2012 31.12.2011 Wholesale Wholesale and 31.12.2011 and corporate 31.12.2012 Personal corporate 31.12.2011 loans Total Loans loans Total US$ US$ US$ US$ US$
-
23.1 Segment results of operations

The segment information provided to the Executive Committee for the segments for the year ended 31 December 2012 is as follows:-
At 31 December 2012
Net interest income from external customers Loan impairment reversal / (charges) Net fee and commission income Other income - Staff costs - General and administrative expenses - Depreciation and impairment - Other operating expenses Operating (loss)/profit Income tax expense Total assets Total liabilities
Retail banking Corporate banking Treasury banking US$ US$ US$

1,161,942 21,594 16,029,557 62,005 (12,992,395) (3,710,786) (1,139,815) (5,896,851) (6,464,749) 1,664,673 36,918,254 74,982,656 5,769,593 (553,776) 9,516,901 62,005 (4,868,981) (1,565,068) (415,579) (1,773,519) 6,171,576 (1,589,181) 81,276,410 150,270,067 710,896 801,722 3,515,081 (1,063,924) (243,330) (81,325) (293,384) 3,345,736 (1,003,142) 163,332,259 15,745,587
Total US$
7,642,431 (532,182) 26,348,180 3,639,091 (18,925,300) (5,519,184) (1,636,719) (7,963,754) 3,052,563 (927,650) 281,526,923 240,998,310
24.1(d) Loans and advances individually impaired

A loan is considered impaired if a customer fails to pay an istallment or the full loan on due date.
31.12.2012 Personal Lending US$

Gross carrying amount Less allowance for impairment Net carrying amount 64,384 (6,006) 58,378
31.12.2012 31.12.2011 Wholesale Wholesale and 31.12.2011 and corporate 31.12.2012 Personal corporate 31.12.2011 loans Total Lending loans Total US$ US$ US$ US$ US$
990,734 (654,558) 336,176 1,055,118 (660,564) 394,554 22,840 (3,754) 19,086 160,875 (160,875) 183,715 (164,629) 19,086
24. Financial risk management

The Banks business involves taking on risks in a targeted manner and managing them professionally. The core functions of the Banks risk management are to identify all key risks for the Bank, measure these risks, manage the risk positions and determine capital allocations. The Bank regularly reviews its risk management policies and systems to reflect changes in markets, products and best market practice. The Banks aim is to achieve an appropriate balance between risk and return and minimise potential adverse effects on the Banks financial performance. The Bank defines risk as the possibility of losses or profits foregone, which may be caused by internal or external factors. The Board provides written principles for overall risk management, as well as written policies covering specific areas, such as foreign exchange risk, interest rate risk and credit risk. Internal audit is responsible for the independent review of risk management and the control environment. The risks arising from financial instruments to which the Bank is exposed are financial risks which include credit risk, liquidity risk, market risk and operational risk. Also discussed below are strategic, legal, and reputational risk elements and detailed policies on risk mitigation.
24.1(e) Non-performing loans and advances

These are loans and overdrafts on which interest is no longer accrued or included in income unless the customer pays back. These non-performing (past due) assets include balances where the principal amount and / or interest is due and unpaid for 90 days or more.
31.12. 2012 US$

Total non-performing loans and receivables Less specific allowance for impairment Net carrying amount 990,734 (654,558) 336,176
31.12. 2011 US$

164,648 (163,950) 698
24.1(f ) Loans and advances renegotiated

During the year ended 31 December 2012, the Bank did not renegotiate any loans and advances to customers and banks.
24.1 Credit risk

Credit risk is the risk that the Banks customers, clients or counterparties default on their loan or credit commitments. Default occurs when counterparties are not able or willing to pay interest, repay capital or otherwise fulfil their contractual obligations under loan agreements or other credit facilities.
24.1(g) Allowance for impairment 2012 2012 2011 2011 Specific Collective Specific Collective allowance for allowance for allowance for allowance for impairment impairment impairment impairment US$ US$ US$ US$
Balance at 1 January Income received on claims previously written off New impairment allowance Increase in impairment allowances Loans written off As at 31 December 164,629 455,891 40,044 660,564 848,594 36,247 884,841 160,875 4,971 (1,217) 164,629 348,603 499,991 848,594
Risk limit and mitigation policies

The Bank uses a range of policies and practices to mitigate credit risk. The most traditional of these is taking of security for funds advanced and credit scoring all customer borrowing applications and only lending to those which meet the preset criteria. The Bank monitors cash flows and utilisation against limits to identify customers under stress and takes corrective action in consultation with the customer. The Bank has Credit Risk and Loans Review Committees, chaired by non-executive directors to monitor the risks. In measuring credit risk of loans and advances the Bank reflects three components: i) the probability of default by the client or counterparty on its contractual obligations; ii) current exposures to the counterparty and its likely future development; and iii) the likely recovery ratio on the defaulted obligations Principal collateral types used for loans and advances are: Mortgages over residential and commercial properties; and Charges over business assets such as premises, inventory and accounts receivable, moveable assets and shares. Legal department is responsible for conducting sufficient legal review to confirm that the approved collateral is legally effective. Ratio of value of loan to value of security is assessed on grant date and continuously monitored. Each customer based on their probability of default are graded into one of the internal grades, reflecting their credit quality.
Reconciliation of allowance by nature of advance Residential mortgage loans US$

As at 1 January 2012 Charge for the period New allowance Increase in impairment allowances Release Income received on claims previously written off Amounts written off during the year as uncollectible At 31 December 2012 19,845 1,525,560 1,545,405
Other personal lendings US$

41,439 (21,594) (21,594)
Wholesale corporate loans US$

971,784 553,776 455,891 97,885
Total US$
1,013,223 532,182 455,891 76,291
Impairment and provisioning policies (EWL)

The Bank maintains an Early Warning List, (EWL) for those customers who are believed to be facing difficulties. Customers are categorised into EWL 1-3. Those in EWL1 have temporary problems and the risk of default is low. EWL2 implies there are doubts that the customer will pay but the risk of default is medium. EWL3 implies that there are doubts that the customer will pay and the risk of default is high. Internal policies allow for the calculation of identified and unidentified impairment (on homogenous portfolios). Unidentified impairment is also calculated on each portfolio level. The Bank has a monitoring mechanism in place which grades its assets into various categories as prescribed by the regulator in the banking regulations. An impairment allowance is then raised in compliance with the banking regulations and International Financial Reporting Standards. The following tables below analyse credit risk exposure to loans and advances in detail.
Impairment allowances are determined in terms of the requirements of IAS 39, Financial Instruments: Recognition and Measurement. Impairment allowances in excess of this, as required by the banking regulations, are accounted for as a transfer from distributable reserves to general reserves. Assets are written off when it is considered that recovery is no longer possible or when the cost to recover exceeds the amount to be recovered.
24.1(a) Loans and advances are summarised as follows: 31.12.2012 Loans and advances to customers US$
Neither past due nor impaired Past due but not impaired (Note 24.1c) Individually impaired (Note 24.1d) Gross value of loans and advances Less: allowance for impairment (Note 24.1g) Interest in suspense Net value of loans and advances 92,302,280 1,055,118 93,357,398 (1,545,405) (67,201) 91,744,792 300,983
24.1(h) Repossessed collateral 31.12.2012 Loans and advances to banks US$

300,983 300,983 58,517,676
31.12.2011 Loans and advances to customers US$

59,347,184 183,715 59,530,899 (1,013,223) -
31.12.2011 Loans and advances to banks US$

9,371 9,371 9,371
During the period, the Bank did not repossess any assets held as collateral on loans and advances to customers.
24.1(i) Credit risk concentration Loans and 31.12.2012 advances Total US$ US$
11,666,582 13,078,243 31,173,378 13,467,781 23,971,414 93,357,398 (1,545,405) (67,201) 91,744,792 11,666,582 13,078,243 31,173,378 13,467,781 23,971,414 93,357,398 (1,545,405) (67,201) 91,744,792 58,517,676
Industry/Sector
Trade and services Energy and minerals Agriculture Construction and property Light and heavy industry Physical persons Transport and distribution Financial services State Other Gross amount Less impairment allowance Interest in suspense Less changes in fair value Net amount
Loans and 31.12.2011 advances Total % US$ US$

12 15 33 14 26 100 9,475,795 16,166,889 1,010 24,343,356 4,252,131 5,291,718 59,530,899 (1,013,223) 58,517,676 9,475,795 16,166,889 1,010 24,343,356 4,252,131 5,291,718 59,530,899 (1,013,223) -
%
16 27 41 7 9 100 -
The Bank secures its loans and advances with liens over residential or commercial property, stock or other financial securities but is generally not permitted to sell or re-pledge the security in the absence of default by the owner of the collateral. The Bank has an internal rating scale which is mapped onto the Basel II grading system. Balances in neither past due nor impaired category are investment grade, those in past due but not impaired category are standard monitoring grade and individually impaired are default grade.

24.1(j) Profile of credit risk as at 31 December 2012 Past due/ Total loans Impaired loans US$ US$
11,666,582 13,078,243 31,173,378 13,467,781 23,971,414 93,357,398 160,875 829,859 64,384 1,055,118
24.3 Market Risk Write offs/ (recoveries) US$

-
Industry/Sector
Trade and services Energy and minerals Agriculture Construction and property Light and heavy industry Physical persons Transport and distribution Financial services State Other Gross amount at 31 December 2012
Impairment allowance US$

160,875 493,683 6,006 660,564
The Bank takes on exposure to market risks, which is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risks arise from open positions in interest rate, currency and equity products, all of which are exposed to general and specific market movements and changes in the level of volatility of market rates or prices such as interest rates, credit spreads, foreign exchange rates and equity prices. The Bank separates exposures to market risk into either trading or banking book. The Bank does not have a trading book. All the market risk is arising from the banking book which includes the retail and wholesale banking assets.
24.3(a) Market risk measurement techniques

The Bank applies a value at risk (VaR) methodology to its banking portfolios to estimate the market risk of positions held and the maximum losses expected, based upon a number of assumptions for various changes in market conditions. The measurement techniques used to measure and control market risk include:
(i) Daily Value at Risk (DVaR)

Value at Risk (VaR) is a statistically based estimate of the potential loss on the current portfolio from adverse market movements. It expresses the maximum amount the Bank might lose but only to a certain level of confidence. There is therefore a statistical probability that actual loss could be greater than the VaR estimate. The VaR model makes assumptions on the pattern of market movements based on historical holding periods. The use of this approach does not prevent losses outside of these limits. In the event of more significant market movements, DVaR is an estimate of the potential loss which might arise from unfavourable market movements, if the current positions were held unchanged for one business day, measured to a confidence of 99%. Daily losses exceeding the DVaR figure are likely to occur, on average twice in every 100 business days.
24.2 Liquidity risk

Liquidity risk is the risk that the Bank may fail to meet its payment obligations when they fall due and to replace funds when they are withdrawn, the consequences of which may be the failure to meet the obligations to repay deposits and fulfil commitments to lend.
24.2(a) Liquidity risk management process

The Bank identifies this risk through periodic liquidity gap analysis and the maturity profile of assets and liabilities. Where major gaps appear, action is taken in advance to close or minimise the gaps. The Banks Assets and Liabilities Committee (ALCO) monitors and manages liquidity risk. The Banks liquidity management process as carried out by the ALCO and Treasury units includes: Day to day funding and monitoring of future cash flows to ensure that funding requirements are met; Maintaining a high balance of cash that can easily be liquidated as protection against unforeseen funding gaps; Monitoring balance sheet liquidity ratios against internal and regulatory benchmarks; Limits are set across the business to control liquidity risk; Early warning indicators are set to identify the emergence of increased liquidity risk Sources of liquidity are regularly reviewed by ALCO to maintain a wide diversity of source of funding.
(ii) Stress tests

Interest rate stress risk is the potential loss if there is a large interest rate movement (expected once in every five years). Stress tests provide an indication of losses that could arise in extreme positions. Foreign exchange stress risk is the potential loss against the Bank if there is a large foreign exchange movement (expected once in every five years).
(iii) Annual Earnings at Risk (AEaR)

AEaR measures the sensitivity of annual earnings to shocks in the market rates at the 99th percentile for change over a one year period. This shock is consistent with the standardised interest rate shock recommended by Basel II framework for assessing banking book interest rate risk.
24.2(b) Liquidity ratios 31.12. 2012 US$

Cash and bank balances Loans and advances to banks Amounts due to group companies Deposits from banks Treasury bills Total liquid assets Deposits from customers Other money market deposits Total liabilities to the public Liquidity ratio RBZ minimum 128,111,891 300,983 (221,485) (958) 2,031,242 130,221,673 223,377,221 1,400,972 224,778,193 58% 30%
31.12. 2011 US$

147,863,042 9,371 (194,148) (17,160) 147,661,105 213,697,229 213,697,229 69% 25%
(iv) Economic capital

Economic capital methodologies are used to calculate risk sensitive capital allocations for businesses incurring market risk. Consequently the businesses incur capital charges related to their market risk. The table below summarises the DVaR statistics for Bank. The assumed interest volatility for the DVaR is the daily volatility of 5% and 10% for long dated and short dated instruments observed over a period of one year.
One week risk Type of risk or activity

Currency Interest Aggregate VaR at 31 December 2012
High US$
3,589 296,411 300,000
Medium US$
1,600 235,045 236,645
Low US$
530 24,198 24,728
Year - end US$

2,259 287,006 289,265
Two week risk Type of risk or activity

Currency Interest Aggregate VaR at 31 December 2012
High US$
11,350 937,333 948,683
Medium US$
5,060 743,279 748,339
Low US$
1,676 76,522 78,198
Year - end US$

7,145 907,593 914,738
24.2(c) Liquidity profiling as at 31 December 2012

The amounts disclosed in the table below are the contractual undiscounted cash flows. The assets which are used to manage liquidity risk which is mainly cash are also included on the table based on the contractual maturity profile.
ALCO closely monitors this risk. The Bank is satisfied with its risk management processes and systems in place which have enabled the Bank to minimise losses.
Up to 1 month US$
On balance sheet items - as at 31 December 2012 Liabilities Bank balances due to group companies Deposits from banks Deposits from customers Other liabilities Current income tax liabilities Total liabilities(contractual maturity) Assets held for managing liquidity risk (contractual maturity dates) Cash and bank balances Government bonds Loans and advances to banks Loans and advances to customers Other assets Total Assets Liquidity gap Cumulated liquidity gap Contingent liabilities and commitments Assets Guarantees and letters of credit Commitment to lend Total assets Liabilities Guarantees and letters of credit Commitment to lend Total liabilities Liquidity gap 470,401 37,293,026 37,763,427 470,401 37,293,026 37,763,427 128,111,891 2,042,433 300,983 45,509,644 511,424 176,476,375 (55,167,826) (55,167,826) 221,485 958 224,778,193 6,643,565 231,644,201
1 to 3 months US$
3 to 6 months US$
6 months to 1 year US$
1 to 5 years US$
Over 5 years US$
24.4 Interest rate risk Total US$

Interest rate risk is the risk that the Bank will be adversely affected by changes in the level or volatility of market interest rates. The Bank is exposed to various risks associated with the effects of fluctuations in the prevailing levels of market interest rates on its financial position and cash flows. The responsibility of managing interest rate risk lies with the Assets and Liabilities Committee (ALCO). On a day to day basis, risks are managed through a number of management committees. Through this process, the Bank monitors compliance within the overall risk policy framework and ensures that the framework is kept up to date. Risk management information is provided on a regular basis to the Risk and Control Committee and the Board.
1,023,154 285,191 1,308,345
78,750 78,750
157,500 157,500
1,260,000 1,260,000
2,399,000 2,399,000
221,485 958 224,778,193 11,561,969 285,191 236,847,796
The table below summarises the Banks interest rate risk exposure. Up to 1 month US$
Assets Cash and bank balances Investment securities Derivative assets Loans and advances to banks Loans and advances to customers 71,616,936 2,031,242 300,983 91,744,792 3,073,613 7,171,763 56,494,955 2,233,029 3,435 5,385,467 20,670,000 20,800,708 165,693,953 3,073,613 7,171,763 105,587,594 128,111,891 14,509,647 3,435 300,983 91,744,792 5,385,467 20,670,000 20,800,708 281,526,923
1 to 3 months US$
3 to 6 months US$
6 months to 1 year US$
1 to 5 years US$
Non interest bearing US$
Total US$
16,439,742 1,453,116 17,892,858 16,584,513 (38,583,313)
156,242 7,286,121 7,442,363 7,363,613 (31,219,700)
3,229,855 5,415,394 8,645,249 8,487,749
7,550,842 27,194,608 34,745,450 33,485,450
307,800 307,800 (2,091,200) 8,662,299
128,111,891 12,979,372 300,983 102,153,309 1,964,540 245,510,095 8,662,299
Other assets Investment property Property and equipment Total assets Liabilities Derivative liabilities Bank balances due to group companies Deposits from banks Deposits from customers Other liabilities Current income tax liabilites Deferred income tax liabilities Total liabilities Interest rate re-pricing gap
221,485 958 224,778,193 225,000,636 (59,306,683) (59,306,683)
(59,306,683)
59,306,683)
3,073,613 (56,233,070)
7,171,763 (49,061,307)
11,561,969 285,191 4,150,514 15,997,674 89,589,920 40,528,613
221,485 958 224,778,193 11,561,969 285,191 4,150,514 240,998,310 40,528,613
(22,731,951) 10,753,499
854,146 854,146
1,000 1,000
1,068,977 1,068,977
2,394,524 37,293,026 39,687,550
854,146 854,146 -
1,000 1,000 -
1,068,977 1,068,977 -
2,394,524 37,293,026 39,687,550 -
Cumulative gap
The Banks interest rate risk position is shown below:
The Bank determines ideal weights for maturity time buckets which are used to benchmark the actual maturity profile. Maturity mismatches across the time buckets are managed through the tenor of new advances and the profile of time deposits by ALCO and should the need arise through support from Barclays Africa.
Impact on earnings US$

1000 bps increase in interest rates 1000 bps decrease in interest rates Bench (1,435,030) 1,435,030 -
Impact on capital US$

(1,435,030) 1,435,030 -
Impact on earnings US$

(269,000) 269,000 -
Impact on capital US$

(269,000) 269,000 -

24.5 Foreign exchange risk
This is a risk that the value of a financial liability or asset denominated in foreign currency will fluctuate due to changes in the exchange rate. The Bank takes on exposures to the effects of fluctuations in the prevailing foreign currency exchange rates in the financial position and cash flows. Foreign exchange risk is managed through use of Daily Value at Risk techniques and Stress tests. In addition mismatches on foreign exchange assets and liabilities are minimised through the daily monitoring of the net foreign exchange exposure by treasury.The table below summarises the Banks financial instruments at carrying amounts, categorised by currency. GBP (US$ equiv) 3,048,148 41 1,453,116 4,501,305 Rand (US$ equiv) 8,504,667 50 8,504,717 Other foreign currency (US$ equiv) 2,749,709 52 2,749,761 Total US$ 128,111,891 14,509,647 300,983 91,744,792 2,731,711 237,399,024
Operational risk
This is the risk of losses arising from inadequate or failed internal processes, people and or systems or from external events. Practices to minimise operational risk are embedded across all transaction cycles. Risk workshops are held for the purpose of identifying major risks in the operating environment and methods of mitigating the risks. The Bank employs the standardised approach to determine capital required to cover operational risk. Each function carries out a risk and control assessment of their processes on a regular basis. The assessment results are reviewed by Operational Risk Management department. Barclays Internal Audit examines selected functions at given times.
At 31 December 2012 Assets Cash and bank balances Investment securities Loans and advances to banks Loans and advances to customers Other assets Total assets Liabilities Bank balances due to group companies Deposits from banks Deposits from customers Other liabilities Total liabilities Net currency positions
US$ 113,809,367 14,509,647 300,983 91,744,649 1,278,595 221,643,241
27. Risk and Ratings

The Central Bank conducts regular examinations of Banks and financial institutions it regulates. The last on-site examination of the Bank was, as at 13 July 2012 and it assessed the overall condition of the Bank to be fair. This is a score of 3 on the CAMELS rating scale. The CAMELS rating evaluates banks on capital adequacy, asset quality, management and corporate governance, liquidity and funds management and sensitivity to market risks. The CAMELS and Risk Assessment System (RAS) ratings are summarised in the following tables;
CAMELS ratings
14,498 958 214,911,177 10,266,131 225,192,764 (3,549,523) 5,868 2,808,745 299,880 3,114,493 1,386,812 201,119 5,070,232 290,967 5,562,318 2,942,399 1,988,039 704,991 2,693,030 56,731 221,485 958 224,778,193 11,561,969 236,562,605 836,419
Camels Component
Capital Asset quality Management Earnings Liquidity Sensitivity to market risk
Latest Rating July 2012

2 - Satisfactory 2 - Satisfactory 3 - Fair 3 - Fair 2 - Satisfactory 1 - Strong
25. Capital management

The Banks objectives when managing capital, which is a broader concept than the equity on the face of the balance sheet are: to comply with the capital requirements set by the banking regulators; to safeguard the Banks ability to continue as a going concern so that it can continue to provide returns for shareholders and benefits to customers and other stakeholders and; to maintain a strong capital base to support the development of its business. Capital adequacy and the use of regulatory capital are monitored daily by the Banks management and the Directors, employing techniques based on guidelines developed by the Basel Committee as implemented by the Reserve Bank of Zimbabwe for supervisory purposes. The Banks regulatory capital is managed by management and comprises three tiers Tier 1 Capital: comprises accumulated profits, share options reserve and approved currency translation reserve. Tier 2 Capital: comprises collective impairment allowance and revaluation reserves and currency translation reserve. Tier 3 Capital: comprises operational and market risk capital. The Reserve Bank of Zimbabwe requires each bank to maintain a core capital adequacy ratio of 8% and total capital adequacy ratio of 12%. The table below summarises the composition of regulatory capital and the ratios of the Bank. The Bank is required to have minimum capital of US$50 million by 30 June 2013 and US$100 million by 30 June 2014. A capitalisation plan was submitted to the Reserve Bank in terms of which the Bank seeks to meet the future minimum capital requirements. The table below summarises the composition of regulatory capital and the ratios of the Bank
Summary risk matrix - July 2012 onsite supervision Level of inherent risk
Low Low Low Low High Moderate Moderate Moderate Moderate
Type of Risk
Credit Liquidity Foreign exchange Interest rate Strategic risk Operational risk Legal and compliance Reputation Overall
Adequacy of risk management systems

Acceptable Strong Strong Strong Weak Strong Acceptable Acceptable Acceptable
Overall composite Direction of overall risk composite risk

Low Low Low Low High Moderate Moderate Moderate Moderate Stable Stable Stable Stable Increasing Stable Stable Increasing Stable
Interpretation of risk matrix Level of inherent risk

Low - reflects lower than average probability of an adverse impact on a banking institutions capital and earnings. Losses in a functional area with low inherent risk would have little negative impact on the banking institutions overall financial condition.
Capital adequacy 31.12. 2012 US$

Share capital Share premium Accumulated profits Share option reserve fund Available for sale reserve Currency translation reserve Total core capital Less market and operational risk capital Tier 1 capital Currency translation reserve movement Revaluation reserve General provisions(limited to 1.25% of weighted risk assets) Tier 2 capital Total tier 1 & 2 capital Market risk Operational risk Tier 3 capital Total tier 1 and 2 & 3 capital base Less deductions from capital Total capital base Credit risk weighted assets Operational risk equivalent assets Market risk equivalent assets Total risk weighted assets (RWAs) Tier 1 capital ratio Tier 1 and 2 capital ratio Total capital adequacy ratio 215,306 23,642,135 3,517,975 809,929 996,896 3,405,069 32,587,310 (5,385,149) 27,202,161 4,391,400 3,205,952 1,228,797 8,826,149 36,028,310 127,381 5,257,768 5,385,149 41,413,459 (2,233,029) 39,180,430 147,564,127 65,722,099 1,592,269 214,878,495 13% 17% 18%
31.12. 2011 US$

215,273 23,640,259 1,730,778 718,368 567,236 6,632,717 33,504,631 (3,974,066) 29,530,565 848,593 848,593 30,379,158 10,020 3,964,046 3,974,066 34,353,224 (1,629,137) 32,724,087 122,502,943 49,550,572 125,245 172,178,760 17% 18% 19%
Moderate - could reasonably be expected to result in a loss which could be absorbed by a banking institution in the normal course of business. High - reflects a higher than average probability of potential loss. High inherent risk could reasonably be expected to result in a significant and harmful loss to the banking institution.
Adequacy of risk management systems

Weak - risk management systems are inadequate or inappropriate given the size, complexity and risk profile of the banking institution. Institutions risk management systems are lacking in important ways and therefore a cause of more than normal supervisory attention. The internal control systems will be lacking in important aspects, particularly as indicated by continued exceptions or by the failure to adhere to written policies and procedures. Acceptable - management of risk is largely effective but lacking to some modest degree. While the institution might be having some minor risk management weaknesses, these have been recognised and are being addressed. Management information systems are generally adequate. Strong - management effectively identifies and controls all types of risk posed by the relevant functional areas or per inherent risk. The board and senior management are active participants in managing risk and ensure appropriate policies and limits are put in place. The policies comprehensively define the banks risk tolerance. Responsibilities and accountabilities are effectively communicated.
Overall composite risk

Low - would be assigned to low inherent risk areas. Moderate risk areas may be assigned to a low composite risk where internal controls and risk management systems are strong and effectively mitigate much of the risk. Moderate - risk management systems appropriately mitigates inherent risk. For a given low risk area, significant weaknesses in the risk management systems may result in a moderate composite risk assessment. On the other hand, a strong risk management system may reduce the risk so that any potential financial loss from the activity would have only a moderate negative impact on the financial condition of the organisation. High - risk management systems do not significantly mitigate the high inherent risk. Thus, the activity could potentially result in a financial loss that would have a significant impact on the banks overall condition.
Following the 2012 on site examination by the Central Bank, US$3,4 million in currency translation reserve was confirmed as Tier 1 capital, as a result the 31 December 2011 figures have not been restated. Credit risk capital is subject to internal ratings based approach which uses guidelines provided by the regulator. On this approach the banking book exposures are categorised into broad classes of assets with different underlying risk characteristics. Risk components are transformed into risk weighted assets using predetermined exposure and loss probability factors. Capital requirements for credit risk are derived from the risk weighted assets. Market risk capital is assessed using internal models approach that considers the risk characteristics of the different trading book assets. Risk components are transformed into risk weighted assets and, therefore, capital requirements, based on predetermined exposure and loss probability factors. Operational risk capital is assessed using the standardised approach. This approach is tied to average gross income over three years per regulated business lines as indicator of scale of operations. Total capital charge for operational risk equals the sum of charges per business lines. Total capital for the Bank is assessed to be sufficient to support current business and planned capital projects. Growth in advances will continue to be pursued cautiously and in such a way as to achieve economic asset yields. The Bank is working on the recapitalisation requirements to meet new regulatory minimum capital of US$100 million by 30 June 2014.
Direction of overall composite risk

Increasing - based on the current information, risk is expected to increase in the next 12 months. Decreasing - based on current information, risk is expected to decrease in the next 12 months. Stable - based on current information, risk is expected to be stable in the next 12 months.
External Credit Ratings Rating agent

Global Credit Rating Co. (GCR)
Latest credit ratings 2012/13

AA-
Previous credit ratings 2011/12

AA-
Previous credit ratings 2010/11

AA-
The last rating was done in May 2012 and expires in April 2013.
28. Going concern

The Directors have assessed the ability of the Bank to continue as a going concern and believe that the preparation of these financial statements on a going concern basis is still appropriate. The Bank will continue to grow its loan book in 2013 in line with risk management policies while at the same time maintaining a balanced liquidity position after considering the resources available to do more business in the future. The Bank has initiated processes to ensure compliance with capital requirements of US$100 million by 30 June 2014.
29. Events after reporting date

During the latest Monetary Policy Statement, the Central Bank Governor announced a memorandum of understanding with the financial institutions whose objective is to manage tariffs, the impact of which is being assessed on an ongoing basis.
26. Other risks Strategic risk

The roles of the Chairman and the Managing Director are not vested in the same person. The executive team formulates the strategy under the guidance of the Board which approves it. The executive directors bear the responsibility to execute the approved strategy. The Board reviews the performance and suitability of the strategy at least quarterly.
30. Shareholding Structure

Afcarme Zimbabwe Holdings (Private) Limited (Barclays Bank PLC) Zimbabwe public 68% (2011:68%) 32% (2011:32%)
Legal and compliance risk

The Risk Management Committee ensures that the management and operations of the Banks business is done within the governance and regulatory control framework established by Barclays Bank Plc, the Reserve Bank of Zimbabwe and other regulatory bodies. A dedicated legal and compliance unit is in place to monitor legal and compliance requirements and ensure that they are met on a daily basis.
31. Dividend
No dividend is proposed in respect of the year ended 31 December 2012.
Reputation risk
The Bank adheres to very strict reputation standards set for Barclays international operations. The Human Resources Committee of the Board assists the Board in ensuring that staff complies with set policies and practices consistent with the reputation demands of both the Bank and the industry. The compliance unit and human resources function monitor compliance by both management and staff with the Banks ethical codes and compliance standards.
By Order of the Board W Chimwaradze Company Secretary 28 March 2013
Barclay House Cnr First Street / Jason Moyo Avenue Harare

Barclays Zimbabwe Results

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Barclays Zimbabwe Results

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Audited Financial Results for the year ended 31 December 2012

Capital and liquidity

Managing Directors Statement

2012 our centenary year

Partnerships with our Customers

Corporate Governance Statement

Loans Review Committee

Human Resources and Nominations Committee

Executive Committee (EXCO)

Assets and Liabilities Committee (ALCO)

Audited Financial Results for the year ended 31 December 2012

Annual Financial Statements

Board and Board Sub-Committees Attendance 2012

Statement of Financial Position

31.12. 2012 US$

31.12. 2011 US$

Audit Committee Name

Human Resources & Nominations Committee Name

9 13 14 17 221,485 958 224,778,193 11,561,969 285,191 4,150,514 240,998,310

5,687 194,148 17,160 213,697,229 7,826,284 4,784,030 226,524,538

Credit Committee Name

Meetings supposed to attend

215,306 23,642,135 13,153,197 3,517,975 40,528,613 281,526,923

215,273 23,640,259 7,924,556 1,730,778 33,510,866 260,035,404

Loans Review Committee Name

Statement of Profit & Loss and Other Comprehensive Income

Statement of Cash Flows

31.12. 2011 US$

31.12. 2012 US$

31.12. 2011 US$

(33,737,417) 10,246,892 159,425 11,080,964 2,040,888 (1,333,471) (4,654,624)

(15,863,353) 30,461 (2,117,621) 32,474,652 (999,934) (1,328,139) 17,985,743

Audited Financial Results for the year ended 31 December 2012

Share premium US$

Available for sale reserves US$

Non distributable reserves US$

Property revaluation reserves US$

General reserve US$

Accumulated profits US$

Share option reserve US$

Notes to the Financial Results

4. Statutory reserves 31.12. 2012 US$

31.12. 2011 US$

2. Basis of preparation 2.1 Statement of compliance

5. Loans and advances to banks 31.12. 2012 US$

31.12. 2011 US$

6. Loans and advances to customers 31.12. 2012 US$

31.12. 2011 US$

2.3 Functional and presentation currency

2.4 Accounting policies

3. Cash and bank balances 31.12. 2012 US$

31.12. 2011 US$

Total A further analysis of loans and advances is included in Note 24.

7. Investment securities 31.12. 2012 US$

31.12. 2011 US$

3.1. Cash and cash equivalents

7.1 Investment securities held to maturity 2012 US$

31.12. 2012 US$

31.12. 2011 US$

Audited Financial Results for the year ended 31 December 2012

9.4 Balances with group companies 2011 US$

31.12. 2012 US$

31.12. 2011 US$