Annual Report
2008
NMBZ HOLDINGS
LIMITED
.
CONTENTS
Group Profile
Financial Highlights
Chairman's Statement
ReportofThe Directors
StatementofDirectors'
Responsibility
Report of the Independent Auditors
Income Statements
Balance Sheets
Statements of Changes In Equity
Cash Flow Statements
Accounting Policies
Notes to the Financial Statements
Historical Five Year Financial Summary
Notice to Members
Shareholders' Analysis
Shareholders'
Information
Secretary and Registered Office
inside cover
1
2 - 3
4 - 8
9 -11
12 -13
14
15
16
17
18 - 25
26 - 58
59 - 60
61
62- 63
64
64
HIGHLIGHTS
Attributable profit
Basic earnings per share
Total deposits
Shareholders'
funds
Enquiries:
NMBZ HOLDINGS LIMITED
2008
Z$trillion
2007
Z$trillion
125466224688
77
105107857291
230742119001
Benefit P. Washaya, Chief Executive Officer
benefitw@nmbz.co.zw
Benson Ndachena, Chief Financial Officer
bensonn@nmbz.co.zw
Website:
Email:
http://www.nmbz.co.zw
enquiries@nmbz.co.zw
NMBZ HOLDINGS
LIMITED
The year under
review was characterized
by:
Rapidly rising inflation
High money supply growth
Accelerating domestic and extemal debt
Negative interest rates
Supply side constraints
The existence
of hyperinflation
as defined by International Accounting Standard (IAS) 29 "Reporting in Hyperinflationary
Economies" was
formally identified in Zimbabwe by the Zimbabwe Accounting Practices Board, which decided thatiAS 29 would be applied for financial periods
beginning on or after 1 January 2000. The results of the Group have not been adjusted to reflect
the changes in the general
level of prices due
to unavailability
of official Consumer Price Indices(CPI) as these were last published for July 2008. Consequently,
these results have not been
prepared in compliance with IAS 29, which requires the adjustment of the financial statements on the basis of the inflation indices over the reporting
period and a restatement of prior year comparative
figures.
An adverse audit opinion has been issued on the results of the Group as the financial statements have not been prepared in accordance with IAS
29 due to the absence of official
inflation statistics.
The Zimbabwe dollar was debased on 1 August 2008 by the removal of ten zeros and consequently,
as the figures are reported in trillions, all the
comparative
figures are nil.
The Zimbabwe
dollar was further debased on 1 February 2009 by the removal of an additional
twelve zeros. As this was subsequent
to 31
December 2008,
the figures presented in this statement have not been adjusted for this effect.
The profit before taxation was Z$150 113 390 956 trillion during the period under review. A historical cost attributable profit of Z$125 466 224 688
trillion was recorded for the year. Net interest
income was Z$1 274662330
trillion. Non-interest
income amounted to Z$234 847412514
trillion
and this was mainly as a result of fair value adjustments
on investment
properties.
While a conservative approach continues to be taken with respect
to provisions for bad and doubtful debts,
the charge amounted to Z$469 156 306
trillion for the current year. This is reflective of the loans and advances which amounted to Z$2 426 716 390 trillion at 31 December 2008, as well
as a prudent
lending policy in an uncertain environment.
NMBZ HOLDINGS
LIMITED
The Group's total asset base was Z$419 659 855 890 trillion and comprised mainly of financial assets at fair value through profit and loss (Z$120
000056 trillion), cash and short
term funds (Z$47187
135390 trillion),
investment properties (Z$214 900 000 000 trillion) and property and
equipment
(Z$131 600000000
trillion).
The banking subsidiary's capital adequacy ratio at 31 December 2008 calculated on the historical cost basis in accordance with the guidelines of
the Reserve Bank of Zimbabwe
(RBZ) was 62% (31 December 2007 - 20.21 %). The minimum required by the RBZ is 10%.
The advent of the inclusive government and the changing political and economic landscape will usher in a conducive environment
for business.
The company will reconfigure itself in response to the new operating environment.
I would like to thank our clients for their support and patience during the year under
review.
In addition,
I would like to thank the Monetary
Authorities
for their wise counsel and guidance.
I would also like to express my appreciation
and gratitude to my fellow Board members,
management and staff for their commitment and dedication during this particularly difficult year.
GIBSON MANYOWA MANDISHONA
CHAIRMAN
NMBZ HOLDINGS LIMITED
After providing for depreciation and taxation,
the Group posted a historical cost consolidated profiltor
the year of Z$125 466 224 688 for the
year ended 31 December 2008.
At 31 December 2008,
the Bank's capital adequacy ratio computed under Bank for International Settlements
(BIS) rules was 62% (2007
- 20.21%) based on historical cost figures.
G M Mandishona
A M T Mutsonziwa
B P Washaya*
B Ndachena*
JAMushore
J T Makoni
C Chipato
B W Madzivire
M Mudukuti
L Majonga (Ms)
T N Mundawarara
J Chigwedere
(Chairman)
(Non-executive
director)
(Chief Executive Officer)
(Chief Financial Officer)
(Non-executive
director)
(Non-executive
director)
(Non-executive
director)
(Non-executive
director)
(Non-executive
director)
(Non-executive
director)
(Non-executive
director)
(Non-executive
director)
In accordance with the Articles of Association, Dr G M Mandishona and Mr B Ndachena will retire by rotation at the forthcoming Annual
General Meeting (AGM). All retiring directors, being eligible, offer themselves
for re-election.
NMBZ HOLDINGS LIMITED
REPORT OF THE DIRECTORS
as at 31 December 2008
(Continued)
J TMakoni
G M Mandishona
B P Washaya
T N Mundawarara
B W Madzivire
CChipato
LMajonga
M Mudukuti
J Chigwedere
JAMushore
A M T Mutsonziwa
B Ndachena
B P Washaya
F S Mangozho
B Ndachena
31 December2008
31 December2007
Shares
Shares
20692
5824
70560
4982717
11527697
Share
Options
70560
1558223
8076687
Share
Options
31 December 2008
31 December2007
6000000
3000000
4000000
4000000
NMBZ HOLDINGS LIMITED
REPORT OF THE DIRECTORS
as at 31 December 2008
(Continued)
Name
1. Dr G M Mandishona
2. B P Washaya
3. Dr J T Makoni
4. B W Madzivire
5. J A Mushore
6. A M T Mutsonziwa
7. L Majonga (Ms)
8. B Ndachena
9. M Mudukuti
10. C Chipato
11. T N Mundawarara
12. J Chigwedere
Name
1. B W Madzivire
2. A M T Mutsonziwa
3. L Majonga (Ms)
Name
1. M Mudukuti
2. Dr G M Mandishona
3. B W Madzivire
Name
1. A M T Mutsonziwa
2. C Chipato
3. M Mudukuti
Name
1. TN Mundawarara
2. L Majonga (Ms)
3. J Chigwedere
4. B P Washaya
Meetings
Attended
7
7
7
7
7
7
7
7
7
7
7
4
7
7
nil
6
nil
4
7
7
7
7
7
4
Meetings
Attended
4
4
4
4
3
4
Meetings
Attended
4
4
4
4
4
4
Meetings
Attended
4
4
4
2
4
4
Meetings
Attended
3
3
3
3
3
3
3
3
NMBZ HOLDINGS LIMITED
REPORT OF THE DIRECTORS
as at 31 December 2008
(Continued)
Name
1. C Chipato
2. T N Mundawarara
3. B P Washaya
4. B Ndachena
Meetings
Attended
3
3
3
3
3
3
3
3
The Bank follows a set of principles of Corporate Governance derived from the Code of Best Practice of the combined code of the United
Kingdom,
the King II Report of South Africa and the Reserve Bank of Zimbabwe (RBZ) Corporate Governance Guidelines.
In line with
these principles,
the Board has an Audit Committee and a Remuneration Committee.
In addition the Board has a Loans Review Committee
as required by the RBZ.
The number and calibre of the Bank's non-executive directors enables them to have a significant
impact on the Board's decisions.
There are twelve directors of whom,
ten are non-executive
directors. The chairman of the Board, and of all the Board committees
are non-executive
directors. The Board meets at least four times a year.
The committee meets regularly with the company's
internal and external auditors and executive management
to review the
adequacy of and compliance with the company's accounting, auditing,
internal and statutory reporting procedures.
Membership:
B W Madzivire
A M T Mutsonziwa
(Non-executive
director)
LMajonga
(Non-executive
director)
M Mudukuti
G M Mandishona
B W Madzivire
(Chairman and non-executive
director)
(Non-executive
director)
(Non-executive
director)
The Loans Review Committee,
chaired by a non-executive
director, meets regularly
to review the Bank's
loan book for
compliance with the board's lending policies and to assess the adequacy of impairment on loans and receivables. The members
are independent
of the lending process as required by the RBZ.
A M T Mutsonziwa
(Chairman and non-executive
director)
C Chipato
M Mudukuti
(Non-executive
director)
(Non- executive director)
·
NMBZ HOLDINGS LIMITED
REPORT OF THE DIRECTORS
as at 31 December 2008
(Continued)
TN Mundawarara
(Chairman and non-executive
director)
G M Mandishona
(Non-executive
director)
B P Washaya
(Chief Executive Officer)
B Ndachena (Chief Financial Officer)
The Committee examines the Group's Assets and Liabilities, strategies and significant
financial matters and monitors the business
and financial strategies of the Company.
C Chipato (Chairman and non-executive
director)
TN Mundawarara
(Non-executive
director)
B P Washaya
(Chief Executive Officer)
B Ndachena (Chief Financial Officer)
F S Mangozho (Executive Director
- Treasury)
L Chinyamutangira
(Divisional Director
- Banking)
TN Mundawarara
(Non-executive
director)
L Majonga (Non-executive
director)
J Chigwedere
(Non-executive
director)
B P Washaya
(Chief Executive Officer)
FS Mangozho (Executive Director
- Treasury)
At the forthcoming Annual General Meeting, shareholders will be asked to appoint auditors of the Company and to authorise the directors
to fix the auditors'
remuneration
for the past year.
B Ndachena
Acting Company Secretary
NMBZ HOLDINGS LIMITED
These financial statements
are the responsibility
of the directors.
This responsibility
includes the setting up of internal control and risk
management processes, which are monitored independently. The information contained in these financial statements has been prepared on
the going concern basis and is in accordance with the provisions of the Companies Act (Chapter 24:03),
the Banking Act (Chapter 24:20)
and Intemational Financial Reporting Standards (with the exception of lntemational Accounting Standard 29).
The Group adheres to principles of corporate governance
derived from the King II Report,
the United Kingdom Combined Code and the
RBZ Corporate Governance Guidelines.
The Group is cognisant of its duty to conduct business with due care and in good faith in order
to safeguard all stakeholders'
interests.
Board appointments
are made to ensure a variety of skills and expertise on the Board. Non-executive
directors are of such calibre as to
provide independence to the Board. The Chairman of the Board is a non-executive director. The Board is supported by various committees
in executing
its responsibilities.
The Board meets at least quarterly
to assess risk,
review performance
and provide guidance
to
management
on both operational and policy issues.
The board conducts an annual peer based evaluation on the effectiveness of its activities. The process involves the members evaluating
each other collectively as a board and individually as members. The evaluation, as prescribed by the RBZ, takes into account
the structure
of the board, effectiveness of committees, strategic leadership, corporate social responsibility, attendance and participation of members and
weaknesses noted. Remedial plans are invoked to address identified weaknesses with a view to continually improve the performance and
effectiveness
of the board and its members.
It is the responsibility of the Board to ensure that effective financial controls are implemented in the Group.lntemal
controls focus on critical
risk areas and are based on established policies and procedures. Adequate segregation of duties is in place to enhance the effectiveness
of these controls. The Board monitors the effectiveness
of these controls through reviews by the Audit Committee
and independent
evaluation by the external auditors.
The internal
financial controls are designed to:-
provide reasonable assurance of the integrity and reliability of financial
information;
safeguard income and assets; and
prevent and detect
fraud.
The financial statements
are prepared on the going concern basis. The Directors have assessed the ability of the company to continue
operating as a going concern and believe that the preparation of these financial statements on a going concern basis is still appropriate.
However,
the Directors believe that under the current economic environment
a continuous
assessment
of the ability of the company to
continue to operate as a going concem will need to be performed to determine the continued appropriateness of the going concem assumption
that has been applied in the preparation of these financial statements.
NMBZ HOLDINGS LIMITED
STATEMENT OF DIRECTORS' RESPONSIBILITY
for the year ended 31 December 2008
(Continued)
The internal audit activities have formally defined purposes, authority and responsibility
consistent with the Institute of Internal Auditors'
definition of internal auditing and include evaluating the effectiveness of the processes by which risks are identified, prioritised, managed and
controlled. To this end a systematic, disciplined and objective approach has been developed to help the Group to accomplish its objectives
and assist
in evaluating
and improving the effectiveness
of risk management,
control and governance
processes.
The internal audit
activities include reviews of the reliability and integrity of financial and operating information,
the systems of internal control,
the means of
safeguarding
assets,
the efficient management of the Group's resources, and the conduct of its operations.
The Audit Committee comprising of non-executive directors and chaired by a non-executive
director meets regularly to review the internal
control environment,
audit processes and financial
reporting. The internal and external auditors have unrestricted
access to the Audit
Committee.
The Remuneration Committee comprising of non-executive
directors and chaired by a non-executive
director determines
the Group's
policy for executive remuneration and pay reviews for staff.
It sets individual
remuneration terms and packages for executive directors and
other senior executives.
The remuneration
policy is designed to reward performance
and to retain high quality individuals. Accordingly,
a discretionary performance
related bonus is offered in addition to a basic salary package whilst a discretionary
share option scheme has
been introduced to facilitate the retention of senior executives.
The Loans Review Committee,
chaired by a non-executive
director, meets regularly to review the banking subsidiary's
loan book for
compliance with the Board's lending policies and for the adequacy of impairment
loss on loans and receivables.
The Group encourages
active participation
by its employees
in its ownership.
In line with this commitment, managerial
employees
participate in the company's share option scheme. The Group is also committed to enhancing the skills of its staff and sponsors attendance
at courses at reputable local and international
institutions.
The Group recognises its responsibility
in the society within which it operates. Pursuant
to this, the Group sponsors the arts and sports and
also donates to deserving charities from time to time.
The banking subsidiary is subject
to regulation by the RBZ and the Registrar of Banks and Financial
Institutions. Where appropriate the
Group participates
in industry-consultative
committees and discussion groups aimed at enhancing the business environment.
NMBZ HOLDINGS LIMITED
STATEMENT OF- DIRECTORS' RESPONSIBILITY
for the year ended 31 December 2008
(Continued)
The company's directors are responsible for the preparation and fair presentation of the financial statements, comprising the balance sheet
at 31 December 2008, and the income statement,
the statement of changes in equity and cash flow statement
for the year then ended, and
the notes to the financial statements, which include a summary of significant accounting policies and other explanatory notes,
in accordance
with Intemational Financial Reporting Standards and legislative and regulatory requirements.
The directors'
responsibility
includes: designing,
implementing
and maintaining internal control relevant
to the preparation and fair presenta-
tion of these financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate
accounting policies; and making accounting estimates that are reasonable in the circumstances.
The directors have made an assessment of the company's ability to continue as a going concem as at the reporting date and have no reason
to believe the business will not be a going concern in the year ahead, however
this will be continuously
assessed.
The financial statements of the company and Group, appearing on pages 14 to 58, were approved by the board of directors on 7 May 2009
and are signed on their behalf by:
G M Mandishona
Chairman
B P Washaya
Chief Executive Officer
NMBZ HOLDINGS LIMITED
.~
111111111111111111111111111111'"''
HERNST &YOUNG
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
NMBZ HOLDINGS LIMITED
We have audited the accompanying group financial statements of NMBZ Holdings Limited set out on pages 14 to 58, which comprise the balance
sheet as at 31 December 2008 and the income statement, statement of changes in equity and cash flow statement
for the year then ended and
a summary of significant accounting policies and other explanatory notes.
The directors are responsible for the preparation and fair presentation of these financial statements
in accordance with International Financial
Reporting Standards and the provisions of the Zimbabwe Companies Act (Chapter 24:03). This responsibility
includes designing,
implementing
and maintaining internal control relevant
to the preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the
circumstances.
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. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance whether
the financial statements are free from material misstatement.
An audit
involves performing procedures
to obtain evidence about
the amounts and disclosures
in the financial statements. The procedures
selected depend on the auditor's judgement,
including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error.
In making those risk assessments,
the auditor considers
internal control
relevant
to the entity's preparation
and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of
expressing an opinion on the effectiveness
of the entity's internal control. An audit also includes evaluating the appropriateness
of accounting
policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion, except
for the scope
limitation stated under the paragraph
"basis of adverse opinion".
The Zimbabwe economy is recognised as being hyperinflationary
for purposes of financial
reporting. These financial statements have not been
prepared in conformity with International Financial Reporting Standards in that the requirements of International Accounting Standard (IAS) 29,
(Financial Reporting in Hyperinflationary
Economies) have not been complied with. The Standard requires that financial statements that report
in
the currency of a hyperinflationary
economy should be stated in terms of the measuring unit current at the balance sheet date.
NMBZ HOLDINGS LIMITED
The non-compliance with IAS 29 arises from the inability to reliably measure inflation due to the interaction of multiple economic factors which are
pervasive to the Zimbabwean
economic environment
as explained
in Note 35.
The scope of our work was limited in that we could not obtain sufficient appropriate
audit evidence in respect of foreign currency denominated
accruals for Information Technology
services.
In our opinion, because of the significance
of the matters described in the Basis for Adverse Opinion paragraph,
the financial statements
do not
give a true and fair view of the financial position of the group and company as at December 312008, and of the results of its operations and cash
flows for the year then ended in accordance with International Financial Reporting Standards.
These financial statements have been properly prepared in accordance with the accounting policies set out on pages 18 to 25, and comply with
the disclosure requirements
of the Companies Act (Chapter 24:03) and the BankingAct
(Chapter 24:20).
The operations of the Company, have been significantly affected, and may continue to be affected for the foreseeable future, by the adverse effects
of the country's unstable economic environment which has resulted in a significant downturn in economic activity. The ability of the company
to
continue operating as a going concern,
in such an environment,
is subject
to continual assessment.
The determination
of fair values presented in the financial statements
is affected by the prevailing economic environment
and may therefore be
distorted. This may result in significant variations in fair values, depending on factors and assumptions used in the determination of the fair values.
The significant assumptions
and the estimation uncertainties pertaining to transactions and items that are carried at fair value have been disclosed
in Note 2.4, Note 35 and Note 36 to these financial statements.
Ernst & Young
Chartered Accountants
(Zimbabwe)
NMBZ HOLDINGS LIMITED
INCOME STATEMENTS
for the year ended 31 December 2008
Interest income
Interest expense
Net interest
income
Net foreign exchange losses
Non-interest
income
Net operating income
Operating expenditure
Impairment
losses on loans
and advances
Profit before taxation
Taxation
Financial
institutions levy
Profit for the year
Earnings per share (Z$ trillion)
- Basic
- Headline
- Diluted basic
- Diluted headline
Note
HISTORICAL
2008
Z$trillion
'2fJJ7
Z$trillion
3
4
4
5
6
6
1288157794
(13495464)
1274662330
(59329922212)
234847412514
176792152632
(26209 605 370)
(469156306)
150 113 390 956
(23780437749)
(866728519)
125 466 224 688
76.76
(38.17)
75.80
(37.68)
NMBZ HOLDINGS
LIMITED
HISTORICAL COST BALANCE SHEETS
as at 31 December 2008
SHAREHOLDERS'FUNDS
Share capital
Capital reserves
Revenue reserve
Total shareholders'
funds
LIABILITIES
Deposits and other accounts
Financial
liabilities
Provision for current
taxation
Deferred taxation
ASSETS
Cash and cash equivalents
Financial assets at fair value
through profit & loss
Available-for-sale financial assets
Advances and other accounts
Group company loan
Investments:-
Trade investment
Group companies
Quoted and other investments
Investment properties
Property and equipment
GROUP
COMPANY
Note
2008
Z$trillion
2007
Z$trillion
2008
2007
Z$trillion
Z$trillion
9
10
11
12
13
6
14
15
13
13
16
17
18
19
Zl
21
22
105280000017
125462118984
3776564000
230742119001
3776564000
944166000
4720730000
137 924 059 052
28347562
869337330
50095992 945
419659855890
47187135390
120000056
235269
5887252878
19 965 232 297
214900000000
131600000000
419659855890
~L-
...............
,
G M MANDISHONA
.
~.~
)
:
B NDACHENA
Acting Company Secretary
NMBZ HOLDINGS LIMITED
for the year ended 31 December 2008
GROUP
Balances at 1 January 2008
Profit for the year
General provision for
doubtful debts RBZ grading
Deferred tax on general provision
Revaluation of properties
Deferred tax on revaluation of properties
Own equity instruments
(note 9.3)
Dividends paid
Balances at 31 December 2008
COMPANY
Balances at 1 January 2008
Profit for the year
Dividends paid
+---- Capital Reserves
---.
Share
Capital
Z$lrillion
Share
Premium
Z$lrillion
Revaluation
Reserve
Z$lrillion
Accumulated
Profit
Z$lrillion
Tota
Z$lrillion
125466224688
125466 224 688
(5941670)
1835976
(5941670)
1835976
-
-
(10)
131600000000
(26319999983)
(10)
131600000000
(26319999983)
105280000017
125462118984
230742119001
+---- Capital Reserves
---.
Share
Capital
Z$lrillion
Share
Premium
Z$lrillion
Revaluation
Reserve
Z$lrillion
Accumulated
Profit
Z$lrillion
Tota
Z$lrillion
3776564000
3776564000
Balances at 31 December 2008
3776564000
3776564000
NMBZ HOLDINGS
LIMITED
2008
Z$1rillion
'2ffJ7
Z$trillion
Profit before taxation
Non-cash items
Impairment
losses on loans and advances
Investment properties fair value adjustment
Quoted and other investments
fair value adjustment
469156306
(214900000000)
(19915416850)
28347562
137 924 059 052
(6362350854)
(120000056)
(235269)
47236950847
Operating cash flows before changes in operating
assets and liabilities
Changes in operating assets and liabilities
Financial
liabilities
Deposits and other accounts
Advances and other accounts
Financial assets at fair value through profit and loss
Available-for-sale
securities
Taxation
Corporate tax paid (note 6.4)
Net cash inflow from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment
Purchase of quoted and other investments
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of own equity instruments
Dividends paid
Net cash outflow from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents
at the end of the year (note 15)
NMBZ HOLDINGS LIMITED
As the banking subsidiary, NMB Bank Limited, constitutes
the major part of the Group,
the financial statements
have been presented in a form
applicable to a Commercial Bank registered in terms of the Banking Act (Chapter 24:20) and in conformity with International Financial Reporting
Standards promulgated by the International Accounting Standards Board (IASB).
International Financial Reporting Standards (IFRS's)
include
standards and interpretations
of IFRSs and International Accounting Standards
(lASs) developed
by the International
Financial Reporting
Interpretations
Committee
(IFRIC) and approved
for
issue by the IASB as well as lAS's and Standards
Interpretation
Committee
(SIC)
interpretations
issued under previous constitutions.
The Group's financial statements are presented at least annually.
Basis of consolidation
The consolidated
financial statements
comprise the financial statements of the company and its subsidiaries. All companies
in the Group have
a December year end.
Inter-group transactions
and balances are eliminated on consolidation.
Subsidiaries
Subsidiaries are those enterprises
controlled by the company. Control exists when the company has the power, directly or indirectly,
to govern
the financial and operating policies of an enterprise so as to obtain benefits from its activities. The financial statements of subsidiaries are included
in the consolidated financial statements, using the Purchase Method,
from the date that control effectively commences
until the date that control
effectively
ceases.
Goodwill
Goodwill acquired in a business combination
is recognised as an asset and is measured initially at its cost, being the excess of the cost of the
business combination over the acquirer's
interest
in the net fair value of the identifiable assets,
liabilities and contingent
liabilities of the acquired
entity. Subsequently,
the goodwill
is tested for impairment annually or more frequently if events or changes in circumstances
indicated that it might
be impaired.
Impairment
losses on goodwill are not reversed. Negative goodwill
is taken directly to the income statement.
Transactions
in foreign currencies
are translated at the foreign exchange rate prevailing at the date of the transaction. Monetary assets and
liabilities denominated
in foreign currencies,
are translated at the closing rate at the balance sheet date. Non-monetary
assets and liabilities
denominated
in foreign currencies
are translated to the presentation
currency at the exchange
rates ruling at the transaction
date. Foreign
exchange differences arising on translation are recognised in the income statement.
Current taxation
Income tax on the income statement
for the year comprises current and deferred tax.
Income tax is recognised in the income statement except
to the extent
that
it relates to items recognised in equity.
NMBZ HOLDINGS LIMITED
SIGNIFICANT ACCOUNTING POLICIES (Continued)
for the year ended 31 December 2008
Current taxation (Continued)
Current
tax is expected tax payable on the taxable income for the year, using rates enacted or substantially
enacted at the balance sheet date
and any adjustment
to tax payable in respect of previous years.
Deferred taxation
Provision for deferred taxation is made using the balance sheet
liability method in respect of temporary differences between the carrying amounts
of assets and liabilities for financial
reporting purposes and the amounts used for taxation purposes. Temporary differences arising out of the initial
recognition of assets or liabilities and temporary differences on initial recognition of business combinations that affect neither accounting nor taxable
profit are not recognised. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount
of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date. Deferred income tax assets and liabilities are
measured at the tax rates that are expected to apply in the year when the asset
is realised or the liability is settled, based on tax rates (and tax
laws) that have been enacted or substantively
enacted at the balance sheet date.
A deferred tax asset
is recognised only to the extent
that
it is probable that future taxable profits will be available against which the asset can be
utilised. The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent
that
is no longer
probable that sufficient
taxable profit will be available to allow all or part of the deferred income tax asset
to be utilised. Unrecognised
deferred
income tax assets are reassessed at each balance sheet date and are recognised to the extent
that it has become probable that future taxable profit
will allow the deferred tax asset
to be recovered.
Financial
institutions levy
Financial
institutions
levy is accrued at the prescribed rate, which is currently 5%, on profit before taxation from the banking subsidiary.
Dividend distribution
to the Company's
shareholders
is recognised
as a liability in the period in which the dividends
are approved
by the
Company's
shareholders.
An allowance for loan impairment
is established if there is objective evidence as a result of one or more events that has occured after the initial
recognition of the asset (an incurred "loss event")
that the Group will not be able to collect all amounts due according to the original contractual
terms of loans. The amount of the provision is the difference between the carrying amount and the recoverable amount, being the present value
of expected cash flows,
including amounts recoverable from guarantees and collateral, discounted at the original effective interest
rate of loans.
The loan loss provision also covers losses where there is objective evidence that probable losses are present
in components
of the loan portfolio
at the balance sheet date. These have been estimated based upon historical pattems of losses in each component,
the credit ratings allocated to
the borrowers and reflecting the current economic climate in which the borrowers operate. When a loan is uncollectible,
it is written off against
the related provision for impairment;
subsequent
recoveries are credited to the income statement.
If there is objective evidence that an impairment
loss has been incurred,
the carrying amount of the asset
is reduced through the use of an
allowance account and the amount of the loss is recognised in the income statement. The amount of the loss measured as the difference between
the asset's carrying amount and the present value of the estimated future cash flows (excluding future expected credit
losses that have not yet
been incurred).
If a past write-off
is later recovered the recovery is recognised in the income statement.
NMBZ HOLDINGS LIMITED
SIGNIFICANT ACCOUNTING POLICIES (Continued)
for the year ended 31 December 2008
REGULATORY GUIDELINES AND INTERNATIONAL FINANCIAL REPORTING STANDARDS
REQUIREMENTS IN RESPECT OF THE GROUP'S BANKING ACTIVITIES.
The Banking Regulations 2000 issued by the RBZ give guidance on provisioning for doubtful debts and stipulate certain minimum percentages to
be applied to the respective categories of the loan book.
International Accounting Standard 39 (IAS 39), Financial
Instruments: Recognition and Measurement
(IAS39) prescribes
the provisioning
for
impairment
losses based on the actual
loan losses incurred in the past applied to the sectoral analysis of book debts and the discounting
of
expected cash flows on specific proble.m accounts.
The two prescriptions
are likely to give different
results. The Board has taken the view that where the IAS 39 charge is less than the amount
provided for in the Banking Regulations,
the difference is charged against equity and where it is more, the full amount will be charged to the income
statement.
NON· PERFORMING LOANS
Interest on loans and advances is accrued to income until such time as reasonable doubt exists about
its collectibility,
thereafter and until all or
part of the loan is written off,
interest continues
to accrue on customer's
accounts but is not included in income. Such suspended
interest
is
deducted from loans and advances in the balance sheet. This policy meets the requirements
of the Banking Regulations,
2000.
Classification
Financial assets and financial
liabilities at fair value through profit and loss include financial assets and liabilities held for trading i.e. those that
the Group principally holds for the purpose of short-term profittaking as well as those that were, upon initial recognition, are designated by the entity
as financial assets or liabilities at fair value through profit and loss. There is no reclassification
into or out of this category as per IAS 39.
Loans and receivables are non-derivative
financial assets with fixed or determinable payments that are not quoted in an active market other than
those classified as held-for-trading and the Group upon initial recognition designates as at fair value through profit or loss and those the Group upon
initial recognition designates as available for sale.
Held-to-maturity
investments are non-derivative
financial assets with fixed or determinable
payments and fixed maturity that the Group has the
positive intention and ability to hold to maturity.
Financial assets available-far-sale
are non-derivative
financial assts that are designated as available for sale or are not classified as loans and
receivables,
held-to-maturity
investments or financial assets at fair value through profit or loss.
Own equity instruments
Reacquired
own instruments
are measured
at cost and are presented
in the balance sheet as a deduction
from equity. No gain or loss is
recognised in the income statement on the sale, issuance or cancellation of these instruments. Consideration received is presented in the financial
statements as a change in equity.
Recognition
The Group recognises
financial assets and liabilities at fair value through profit and loss and available for sale assets on the date it commits to
purchase the assets or acquire the liability. From this date any gains and losses arising from changes in fair value of the assets are recognised
in the income statement and equity respectively.
Held-to-maturity
investments and loans and receivables are recognised at cost which is the fair value of the consideration
given on the day that
they are transferred to the Group.
NMBl HOLDINGS LIMITED
SIGNIFICANT ACCOUNTING POLICIES (Continued)
for the year ended 31 December 2008
Measurement
Financial assets and financial
liabilities are measured initially at fair value plus,
in the case of investments
not at fair value through profit or loss,
directly attributable transaction costs.
Subsequent
to initial recognition,
financial assets and financial
liabilities at fair value through profit and loss and available for sale financi~1 assets
are measured at fair value, except
that any instrument
that does not have a quoted market price in an active market and whose fair value cannot
be reliably measured is stated at cost,
less impairment
losses.
Held-to-maturity
investments
and loans and receivables are measured at amortised cost
less impairment
losses. Amortised cost
is calculated
using the effective interest
rate method. Premiums and discounts,
including initial
transaction costs, are included in the carrying amount of the
related instrument and amortised based on the effective interest
rate of the instrument.
Effective interest rate method
The amortised cost of a financial asset or liability is the amount at which the financial asset or liability is measured at initial recognition, minus
principal
repayments, plus or minus the cumulative amortisation, using the effective interest method of any differences between the initial amount
recognised and maturity amount, minus any reduction for impairment.
Amortised cost measurement principles
Amortised
cost
is computed using the effective interest method less any allowance for impairment
and principal
repayment or reduction. The
calculation
takes into account any premium or discount on acquisition and includes transaction
costs and fees that are an integral part of the
effective interest.
Fair value measurement principles
The fair value of financial
instruments is based on their quoted market price at the balance sheet date without any deduction for transaction costs.
If a quoted market price is not available,
the fair value of the instrument
is estimated using pricing models or discounted cash flow techniques.
Where discounted cash flow techniques are used, estimated future cash flows are based on management's
best estimates and the discount
rate
is a market
related rate at the balance sheet date for an instrument with similar
terms and conditions. Where pricing models are used,
inputs are
based on market
related measures at the balance sheet date.
Gains and losses on subsequent measurement
Gains and losses arising from a change in the fair value of available for sale assets are recognised directly in equity. When the financial assets
are sold, collected or otherwise disposed of the cumulative gain or loss recognised in equity is transferred to the income statement.
Gains and losses arising from a change in the fair value of financial assets and liabilities through profit and loss are recognised
in the income
statement.
Financial assets
A financial asset
(or, where applicable a part of a financial asset or part of a group of similar
financial assets)
is derecognised when:
the rights to receive cash flows from the asset have expired; or
NMBZ HOLDINGS LIMITED
.
SIGNIFICANT ACCOUNTING POLICIES (Continued)
for the year ended 31 December 2008
the Bank has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full
without material delay to a third party under a 'pass-through'
arrangement;
and either:
the Bank has transferred substantially
all the risks and rewards of the asset, or
the Bank has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the
asset.
When the Bank has transferred
its rights to receive cash flows from an asset or has entered into a pass-through
arrangement,
and has neither
transferred nor retained substaintially all the risks and rewards of the assei nor transferred control ofthe asset,
the asset
is recognised to the extent
of the Bank's continuing
involvement
in the asset.
In that case,
the Bank also recognises
an associated
liability. The transferred
asset and the
associated
liability are measured on a basis that reflects the rights and obligations
that the Bank has retained.
Continuing involvement
that takes the form of a guarantee over the transferred asset
is measured at the lower of the original carrying amount of
the asset and the maximum amount of consideration
that the Bank could be required to repay.
Financial
liabilities
A financial
liability is derecognised when the obligation under the liability is discharged or cancelled or expires. Where an existing financial
liability
is replaced by another
from the same lender on substantially
different
terms, or the terms of an existing liability are substantially modified, such
an exchange
or modification
is treated as a derecognition
of the original
liability and the recognition
of a new liability, and the difference
in the
respective
carrying amounts
is recognised
in profit or l?ss.
Available-for-sale
Available-for-sale
assets and financial assets through profit and loss that are sold are derecognised
and corresponding
receivables from the buyer
for the payment are recognised as of the date the Group commits to sell the assets. The Group uses the specific identification method to determine
the gain or loss on derecognition.
Held-to-maturity
Held-to-maturity
instruments
and loans and receivables
are derecognised
on the day that they are transferred
by the Group,
The Group issues share options to certain employees
in terms of the Employee Share Option Scheme, Share options are measured at fair value
atthe grant date, The fair value determined
at the grant date of the options is expensed on a straight-line basis over the vesting period, based on
the Group's estimate of shares that will eventually
vest. Fair value is measured using the Black-Scholes
option pricing model. The expected
life used in the model
is adjusted, based on management's
best estimate,
for the effects of non-transferability,
exercise restrictions
and other
behavioural considerations,
Equipment
is stated at cost
less accumulated
depreciation
and accumulated
impairment
losses, Such cost
includes the cost of replacing part of
the equipment when that cost is incurred,
if the recognition criteria are met. Likewise, when a major inspection is performed,
its cost is recognized
in the carrying amount of the equipment
as a replacement
if the recognition
criteria are satisfied. All other
repair and maintenance
costs are
recognized in the income statement as incurred,
Land and buildings are measured at revalued amount
less accumulated depreciation on buildings and impairment
losses recognized after the date
of the revaluation,
Revaluation
of property is done half yearly and at the end of each reporting period, by a registered
professional
valuer,
Any revaluation surplus is credited to the assets revaluation reserve included in the equity section of the balance sheet, except
to the extent
that
it reverses a revaluation
decrease of the same asset previously
recognized
in the income statement,
in which case the increase is recognized
in the income statement. A revaluation deficit
is recognized in the income statement, except
to the extent
that it offsets an existing surplus on the
same asset
recognized
in the asset
revaluation
reserve. Upon disposal, any revaluation
reserve relating to the particular asset being sold is
transferred to retained earnings.
NMBZ HOLDINGS LIMITED
SIGNIFICANT ACCOUNTING POLICIES (Continued)
for the year ended 31 December 2008
An item of property, plant and equipment
is derecognized upon disposal or when no future economic benefits are expected from its use or disposal.
Any gain or loss arising on derecognition
of the asset (calculated as the difference between the net disposal proceeds and the carrying amount
of the asset)
is included in the income statement
in the year the asset
is derecognized.
Residual values and the useful
life of assets are reviewed at least at each financial year end. Where the residual value of an asset
increases !o
an amount
that
is equal
to or exceeds
its carrying amount,
then the depreciation
of the asset ceases. Depreciation will resume only when the
residual value decreases
to an amount below the asset's carrying amount.
Owned Assets
The cost of self-constructed
assets includes the cost of materials, direct
labour and an appropriate proportion of attributable overheads which are
directly attributable to the assets.
#
Property and equipment
leased to customers
Property and equipment
leased to customers are subject of operating leases.
Items of property and equipment
subject
to operating leases are
stated at cost less accumulated depreciation and impairment
losses. Lease income from operating leases is recognised in the income statement
on a straight-line
basis over the lease term.
Depreciation
Depreciation
is provided to write off the cost
less the estimated residual value of property and equipment over their estimated useful
lives at the
following rates per annum, on a straight-line
basis.
Computers
Motor Vehicles
Fumiture and Equipment
Buildings
20%
25%
20%
2%
Depreciation on property and equipment, which are subject
to operating leases,
is provided on a straight
-line basis over the period of the initial
lease.
The asset
residual values, useful
lives and methods of depreciation
are reviewed at each financial
year end, and adjusted prospectively
if
appropriate.
Borrowing costs
Borrowing costs,
incurred in respect of assets that require a substantial
period to construct or install, are capitalized
up to the date that
the
construction or installation of the assets is substantially
complete.
Operating leases
Leases which do not transfer
to the Group substantially
all the risks and benefits incidental
to ownership of the leased item are operating leases.
Operating lease payments are recognised as an expense in the income statement on a straight
line basis over the lease term.
NMBZ HOLDINGS LIMITED
SIGNIFICANT ACCOUNTING POLICIES (Continued)
for the year ended 31 December 2008
Impairment of assets
The carrying amounts of the Group's assets other
than consumables
and deferred tax assets are reviewed at each balance sheet date to
determine whether
there is any indication of impairment.
If any such indication exists,
the assets'
recoverable amounts are estimated.
An impairment
loss is recognised whenever
the carrying amount of an asset or its cash-generating
unit exceeds its recoverable amount. The
recoverable amount of assets is the greater of their fair value less cost
to sell and value in use.
In assesing value in use, the estimated future
cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money
and the risks specific to the asset.
In determining
fair value less costs to sell, an appropriate
valuation model
is used.
Impairment
losses of
continuing operations are recognised in the income statement
in those expense categories consistent with the functions of the impaired asset,
except
for property previously
revalued where the revaluation was taken to equity.
•
to the amount of any previous revaluation. An impairment
loss is only reversed to the extent
In this case,
the impairment
is also recognised in equity up
that the asset's carrying amount does not exceed
the carrying amount
that would have been determined,
net of depreciation
if no impairment
loss had been recognised. An impairment
loss is
charged to the income statement.
Investment properties are measured initially at cost,
including transaction costs. The carrying amount
includes the cost of replacing part of an
existing investment property at the time that cost
is incurred if the recognition criteria are met, and excludes the costs of day to day servicing of
an investment property. Subsequent
to initial recognition,
investment properties are stated at fair value, which reflects market conditions at the
balance sheet date. Gains or losses arising from changes in the fair values of investment properties are included in the income statement
in the
year in which they arise.
Investment properties are derecognised when either they have been disposed of or when the investment property is permanently withdrawn from
use and no future economic benefit
is expected from its disposal. Any gains or losses on the retirement or disposal of an investment property are
recognised in the income statement
in the year of retirement or disposal.
Transfers are made to or from investment property only when there is a change in use. For a transfer from investment property to owner occupied
property,
the deemed cost
for subsequent
accounting
is the fair value at the date of change in use.
If owner occupied property becomes an
investment property,
the Group accounts for such property in accordance with the policy stated under property, plant and equipment up to the date
of change in use.
Interest
income includes income arising out of the banking activities of lending and investing.
Interest
income is recognised
in the income
statement as it accrues taking into account
the effective yield on the asset and where appropriate,
premiums/discounts
on debt securities are
amortised using the effective interest
rate method.
Interest expense arises from deposit
taking. The expense is recognised in the income statement as it accrues,
taking into account
the effective
cost of the liability.
NMBZ HOLDINGS LIMITED
SIGNIFICANT ACCOUNTING POLICIES (Continued)
for the year ended 31 December 2008
Other
income comprises of income such as revenue derived from service fees, commission,
facility arrangement
fees bad debts recoveries,
disposals of property and equipment and foreign exchange differences arising on translation of foreign denominated assets. Commission income
is brought
to account on an accrual basis and bad debts recoveries on a receipt basis. Fee income is recognised on settlement date, or where
determinable,
by stage of completion.
Cash and cash equivalents
comprise cash and bank balances, and short
term highly liquid investments with maturities of three months or less
when purchased.
Retirement
benefits are provided for the Group's employees
through a defined contribution
plan and the National Social Security Authority
Scheme.
Defined Contribution Plan
Obligations for contribution to the defined contribution pension plan are recognised as an expense in the income statement as they are incurred.
National Social Security Authority Scheme
The cost of retirement benefits applicable to the National Social Security Authority, which commenced operations on 1 October 1994 is determined
by the systematic
recognition of legislated contributions.
#
Provisions are recognised when the Group has a present obligation (legal or constructive)
as a result of a past event, and it is probable that an
outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of
the obligation.
The expense relating to any provision is presented in the income statement net of any reimbursements.
I 25
NMBZ HOLDINGS LIMITED
NMBZ Holdings Limited is an investment
holding company domiciled
in Zimbabwe, whose registered office is 64 Kwame Nkrumah
Avenue, Harare. The consolidated financial statements of the Group as at and for the year ended 31 December 2007 comprise the Group
and its subsidiaries.
The Group primarily is involved in corporate and retail banking and investment.
The consolidated
financial statements have not been prepared in accordance with International Financial Reporting Standards
(IFRSs) and interpretations adopted by the International Accounting Standards Board due to non-compliance with the requirement
of IAS 29. The consolidated financial statements have been prepared in accordance with the requirements of the Companies Act
(Chapter 24:03) and the Banking Act (Chapter 24:20). The results of the Group have not been adjusted to reflect
the changes in
the general
level of prices as required by IAS 29 due to unavailability
of official Consumer Price Indices ~CPI) as these were last
published for July 2008. The accounting policies have been consistently applied by the Group and are consistent with those used
in the previous year and will be fully disclosed in the Company's Annual Report.
An adverse audit opinion has been issued on the results of the Group as the financial statements
have not been prepared in
accordance with IAS 29 due to the absence of official
inflation statistics.
2.2.1
Historical cost convention
The financial statements are prepared under the historical cost convention except for property, investment property, quoted and other
investments
and financial
instruments which are carried at fair value.
2.2.2
Inflation accounting
The economy of Zimbabwe is considered to be a hyperinflationary
economy.
In order to comply with IAS 29, Financial Reporting
in Hyperinflationary
Economies,
financial statements need to be expressed in terms of the measuring unit current at the balance
sheet date.
Inflation statistics were last published for July 2008 by the Central Statistical Officer
(CSO). Accordingly,
the
accompanying
financial
statements,
including comparatives,
have not been restated to account
for changes
in the general
purchasing power of the Zimbabwe dollar. The restatement would have been based on the consumer price index at the balance
sheet date. The indices and conversion factors are derived from the inflation rates which are issued by the Central Statistical Office
of Zimbabwe.
All comparative figures as of and for the year ended 31 December 2007 would have been restated by applying the change
in the index to 31 December 2008;
Income statement
transactions would have been restated by applying the change in the index from the approximate date
of the transactions to 31 December 2008;
NMBZ HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
for the year ended 31 December 2008
2.2.2
Inflation accounting (Cont'd)
Gains and losses arising from the monetary asset or liability positions would have been included in the income statement
as monetary gain or monetary
loss as appropriate.
Non-monetary
assets and liabilities would have been restated by applying the change in the index from the date of the
transaction to 31 December 2008;
Some non-monetary
items are carried at amounts current at dates other than that of acquisition or that of the statement of
financial position,
for example property, plant and equipment
that had been revalued at some earlier date.
In these cases,
the carrying amounts are restated from the date of the revaluation.
Property and equipment,
current and accumulated
depreciation would have been restated by applying the change in the
index from the date of their purchase to 31 December 2008.
Components
of shareholders'
equity would have been restated by applying the change in index from the date on which
the items arose.
IAS 29 discourages
publication
of historical
results as a supplement
to inflation adjusted accounts.
The Zimbabwe Accounting
Practices Board and the Zimbabwe Stock Exchange permitted companies
in Zimbabwe to publish historical
results in conjunction
with inflation adjusted accounts.
These consolidated
financial statements are presented in Zimbabwe dollars, which is the Group's functional currency. Except as
indicated,
financial
information presented in Zimbabwe dollars has been rounded to the nearest
trillion.
The preparation
of financial statements
requires management
to make judgements,
estimates and assumptions
that affect
the
application of accounting Policies and the reported amounts of assets,
liabilities,
income and expenses. Actual
results may differ
from these estimates.
Estimates and underlying assumptions
are reviewed on an ongoing basis. Revisions to accounting estimates are recognised
in
the period in which the estimate is revised and in any future periods affected.
2.4.1
Estimation of Property and Equipment useful
life
The determination
of estimated useful
life for property and equipment
is carried out at each reporting period. Refer to accounting
policy note on Property and Equipment.
2.4.2
FairValue of Monetary Market Investments
The fair value of money market
investments
is determined
by reference to quoted prices for similar
investments
on the market.
NMBZ HOLDINGS LIMITED,
NOTES TO THE FINANCIAL STATEMENTS (Continued)
for the year ended 31 December 2008
2.4.3
Investment Properties
The properties were valued by the directors. The directors considered comparable market evidence of recent sale transactions and
those transactions where firm offers had been made but awaiting acceptance. The directors also applied the rental yield method to
fair value of properties was determined by considering market evidence of recent sales and value
,
.
assess fair value. The resultant
based on yield.
2.4.4 Quoted Equities
Trading on the Zimbabwe Stock Exchange (ZSE) was suspended
from 18 November
2008 to 19 February 2009. The quoted
equities on the ZSE were stated for year end purposes at the prices ruling on the last day of trading of 17 November 2008,
New standards, amendments and interpretations to the existing standards have been published that are mandatory for the company
accounting
periods beginning on or after 1 January 2009 or later periods are as follows:
IFRS 8 - Operating Segments
(effective from 1 January 2009)
IAS 23R- Borrowing Costs (effective from 1 January 2009)
IAS 1R - Presentation
of Financial Statements
(effective from 1 January 2009)
IFRS 2 Amendment
- Vesting Conditions and Cancellations
(effective from 1 January 2009)
IAS 27 Amendment
- Consolidated
and Separate Financial Statements
(effective from 1 July 2009)
IFRS 3R - Business combinations
(effective from 1 July 2009)
NMBZ HOLDINGS LIMITED,
.
NOTES TO THE FINANCIAL STATEMENTS (Continued)
for the year ended 31 December 2008
Cash and cash equivalents
Loans and advances to banks
Loans and advances to customers
Investment securities
Net gains from quoted and other investments
Net commission and fee income
Fair value adjustment on investment properties
Rent received
Other net operating income
HISTORICAL
2007
Z$ trillion
HISTORICAL
2007
Z$ trillion
HISTORICAL
2007
Z$ trillion
2008
Z$ trillion
5014453
240094940
893241514
149806887
1288157794
2008
Z$ trillion
19915416850
12111928
214900000000
561
19883175
234847412514
2008
Z$ trillion
(59329922212)
The foreign exchange losses are principally a result of the outstanding FCA balances as detailed in note 37.1. An amount of US$270 833,
which relates to unclaimed customer bank drafts was credited to other income as they could not be substantiated.
The operating profit is after charging the following:-
Administration costs
Audit fees
Depreciation on fixed assets
Directors' remuneration
- Fees for services as directors
- Retirement benefits - defined contribution plans
- Other emoluments
Staff costs
- Retirement benefits - defined contribution plans
- Other staff costs
HISTORICAL
2008
Z$ trillion
2007
Z$ trillion
26196959061
10000
DD
12636105
12635:
I
26 209 605 370
NMBZ HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
for the year ended 31 December 2008
Tax Charge
Current taxation
Aids levy
Deferred tax charge (Note 14)
Financial
institutions levy
Total taxation
Reconciliation of income tax charge
Based on results for the period at a rate of 30%
Arising due to:
- permanent differences
Aids levy
Taxation
Financial
institutions levy
Total taxation
HISTORICAL
'2ill7
Z$ trillion
2008
Z$lrillion
2606917
1893
23 777 828 939
23780437749
866728519
24647166268
HISTORICAL
'2ill7
Z$lrillion
2008
Z$lrillion
45034017287
(21253581 431)
23 780 435 856
1893
23 780 437 749
866728519
24647166268
HISTORICAL
2008
Z$lrillion
'2ill7
Z$lrillion
Total taxation charge/(credit) analysed by company
Carey Farm (Pr~vate) Limited
Stewart Holdings (Private) Limited
NMB Bank Limited - Company
NMBZ Holdings Limited
24 500 000 000
1122501353
(1 919501085)
944166000
24647166268
6.4
Provision for current taxation (income tax, aids levy and financial
institutions levy)
At 1 January
Charge for the year
Payments during the year
869337330
NMBZ HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
for the year ended 31 December 2008
7.
EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the profit for the year attributable to ordinary equity holders of NMBZ Holdings Limited
by the weighted average number of ordinary shares outstanding during the year.
Diluted earnings per share is calculated by dividing the profit attributable to ordinary equity holders of NMBZ Holdings Limited by the
weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would
be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.
Headline earnings per share is calculated by dividing the profit attributable to ordinary equity holders of NMBZ Holdings Limited (after
adjusting for non-recurring items net of tax) by the weighted average number of ordinary shares outstanding during the year.
Basic
Headline (note 7.4)
Weighted average shares in issue·
Diluted number of shares·
Weighted average shares in issue
Effects ofdilution:
Share options granted but not exercised
Share options approved but not yet granted
Diluted weighted number of shares
• excludes own equity instruments amounting to 32 805 shares.
7.3
Earnings /(Iosses) per share (Z$ trillion)
Basic
Headline
Diluted basic
Diluted headline
Profit attributable to shareholders
Add/(deduct) non-recurring items:
- Fair value on quoted and other investments
- Fair value adjustment on investment properties
- Tax effectthereon
HISTORICAL
2007
Z$lrillion
2008
Z$lrillion
125 466 224 688
(62 386 108 792)
HISTORICAL
2008
1 634501 409
1 655 248 278
2007
1 595928299
1 649 774 338
19076000
1670869
43175170
10670869
1655248278
1649774338
HISTORICAL
2007
HISTORICAL
2007
Z$lrillion
2008
76.76
(38.17)
75.80
(37.68)
2008
Z$lrillion
125 466 224 688
(19915416850)
(214 900 000 000)
46 963 083 370
(62386108792)
NMBZ HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
for the year ended 31 December 2008
GROUP AND COMPANY
HISTORICAL
~
2007
Dividends (Z$ trillion)
Interim dividend
Final proposed dividend
Total dividend
Interim dividend
Final proposed dividend
Total dividend
Total number of shares issued'
At 1 January
Shares issued - share options
At31 December
GROUP AND COMPANY
HISTORICAL
2008
Z$trillion
'2fJJ7
Z$trillion
~
$ trillion
'2fJJ7
$ trillion
2008
Shares
million
2250
~
Shares
million
1608
33
1641
'2fJJ7
Shares
million
2250
'2fJJ7
Shares
million
1569
II
1608
Of the unissued ordinary shares of 608741 771 (2007 - 641 840941), options which may be granted in tenns of the NMBZ 2005 Employee
Share Option Scheme (ESOS) amount
to 85 360 962 (2007 - 85 360 962) and out of these 1 670869 (2007 -10670869)
had not been
issued. As at31 December 2008, 19076000
(2007 -43175170)
share options outofthe
issued had not been exercised.
Own equity instruments
amounting to 32 805 shares at a cost of Z$1 0 trillion were held by the Company's
subsidiary, Stewart Holdings (Private) Limited.
NMBl HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
for the year ended 31 December 2008
2008
Z$trillion
2007
Z$lrillion
COMPANY
2008
Z$lrillion
2007
Z$lrillion
Share premium
Revaluation reserve
Total capital reserves
105 280 000 017
105280000017
2008
Z$lrillion
2007
Z$lrillion
NMBZ Holdings Limited
NMB Bank Limited
Carey Farm (Private) Limited
Stewart Holdings (Private) Limited
3776564000
19249965777
98000000561
4435588646
125462118984
COMPANY
2007
Z$lrillion
2008
Z$lrillion
3776564000
12.1
Deposits and other accounts by type
RBZ Productive Sector Facility
Deposits from other banks
Other money market deposits
Current and deposit accounts
Total deposits
Trade and other payables
HISTORICAL
2008
Z$lrillion
2007
Z$lrillion
2338
373114393
2086
104 734 738474
105107857291
32844 549 323
137952406614
(28347562)
137924 059 052
The above are all financial
liabilities at fair value through profit and loss. They are payable on demand, have variable interest rates and
varying security. The fair value of the above is the same as the cost.
HISTORICAL
2008
Z$lrillion
2007
Z$lrillion
105107857291
Less than one month
1 to three months
3to 6 months
6 months to 1 year
1 to 5 years
Over 5 years
NMBZ HOLDINGS
LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
for the year ended 31 December 2008
12.3
Sectoral analysis of deposits
Banks and other financial
institutions
Reserve Bank of Zimbabwe
Transport and telecommunications
companies
Mining companies
Industrial companies
Municipalities and parastatals
Individuals
Agriculture
Other deposits
13.
FINANCIAL INSTRUMENTS
2008
Z$trillion
373114393
2338
11899181749
178760791
50919761785
145
8431433904
2677397920
30628204
266
105107857291
13.1
Financial liabilities
Fixed term deposits
Negotiable Certificates of Deposits
Total financial
liabilities at fair value through profit and loss
13.2
Financial assets at fair value through profit and loss
Government and public sector securities
Treasury bills
Govemment
stock
Mortgage bonds
Bills-own acceptances
Total financial assets at fair value
through profit and loss
13.4
Available-for-sale
securities at fair value
Treasury bills (two-year bills)
Non-negotiable certificates of deposits
HISTORICAL
%
11
49
8
3
29
100
Cost
2008
Z$trillion
26742236
1605326
28347562
Cost
2008
Z$trillion
2007
Z$trillion
%
Fair
Value
2008
Historical
Cost
2007
Z$trillion
Z$trillion
26742236
1605326
28347562
Fair
Value'
2008
Z$trillion
Historical
2007
Z$trillion
120000056
120000056 DD
120000056
HISTORICAL
2008
Z$trillion
2007
Z$trillion
235269
235269
NMBZ HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
for the year ended 31 December 2008
HISTORICAL
'2fJJ7
Z$lrillion
2008
Z$lrillion
26815920
1531642
HISTORICAL
. 2008
Z$lrillion
'2fJJ7
Z$lrillion
Less than 1 month
1 to 3 months
3to 6 months
6 months to 1 year
1 to 5 years
Over 5 years
Less than one month
1 to 3 months
3t06 months
6 months to 1 year
1 year to 5 years
Over 5 years
13.7
Available-for-sale securities at fair value
Less than one month
1 to 3 months
3t06months
6 months to 1 year
1 year to 5 years
Over 5 years
HISTORICAL
2008
Z$lrillion
'2fJJ7
Z$lrillion
Provision for portfolio doubtful debts
Property and equipment
Marking to market adjustments
Loss to be assessed
Unrealised losses
Closing deferred tax liability
(1 835976)
26319999983
46 973 046 460
(4862271
559)
(18332945963)
50095 992 945
Deferred tax liability at the beginning of the year
Deferred tax charged to statement of changes in equity
(26318164006)
Current year charge (note 6.1)
23 777 828 939
NMBZ HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
for the year ended 31 December 2008
15.1
Balances with Reserve Bank of Zimbabwe
Statutory reserve
15.2
Balances with other banks and cash
Current, nostra accounts and cash
Total cash and cash equivalents
HISTORICAL
2007
Z$lrillion
2008
Z$lrillion
612780755
46 574 354 635
47187135390
The statutory reserve balance with the Reserve Bank of Zimbabwe is non-interest bearing. The balance is determined on the basis of
deposits held and is not available to the Bank for daily use.
2008
Z$ trillion
2007
Z$lrillion
2008
Z$lrillion
2007
Z$lrillion
COMPANY
16.1
Advances
Fixed term loans
Local
loans and overdrafts
Other accounts
16.1.2 Maturity analysis
Less than one month
1 to three months
3t06months
6 months to 1 year
1 to 5 years
Over 5 years
Total advances
Provision for impairment
losses
on loans and advances
Suspended interest
Other accounts
Total
122012336
1829606077
3935634465
5887252878
621
2426716390
1951618413
3935634465
5887252878
NMBZ HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
for the year ended 31 December 2008
HISTORICAL
16.2
Sectoral analysis of utilisations
Indusbials
Agriculture and horticulture
Conglomerates
Services
Mining
Food & beverages
Other
2008
Z$billion
622689969
7171223
320432946
1067479745
343198
87935395
320663914
2426716390
%
aJ
13
44
4
13
100
2007
Z$billion
%
HISTORICAL
2008
Z$billion
2007
Z$billion
Total non-perfomning loans and advances
Provision for impairment
loss on loans and advances
462644403
(462644403)
Interest
in suspense
Service deposits
Accrued income
Prepayments and stocks
Other receivables
HISTORICAL
2008
Z$billion
2007
Z$billion
3500069668
44276953
152794339
238493505
3935634465
NMBZ HOLDINGS
LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
for the year ended 31 December 2008
Included in advances and other accounts (note 16.1) are loans to officers:-
At 1 January
Net additions during the year
Balance at 31 December
Of which housing loans comprised:-
HISTORICAL
2008
Z$ trillion
2007
Z$ trillion
621
621
Tenure
Payable on demand
Loan payable over a maximum
period of 24 months
Interest Rate
Minimum lending rate plus a margin
on unauthorised facility
Minimum lending rate plus a margin.
Loans to employees and directors are at
discounted interest rates.
Bill payable on maturity with a maximum
term per transaction of 180 days, subject
to roll over upon satisfactory performance.
Rates range from 5% to 40% depending
on the nature ofthe facility.
COMPANY
HISTORICAL
2008
Z$trillion
2007
Z$trillion
Loan to NMB Bank Limited
Balance at 31 December
18.
TRADE INVESTMENT
Unlisted
Takura Ventures (Private) Limited
Other
Directors'valuation
HISTORICAL
GROUP
COMPANY
2008
Z$trillion
'2ffJ7
Z$trillion
2008
Z$trillion
'2ffJ7
Z$trillion
-
---
---
---
=
=
=
-
=
---
The Takura Ventures (Private) Limited investment
represents 3.1% shareholding in the company, whose principal activity is venture capital
finance. Other
investment was valued by directors at fair value at 31 December 2008.
various short
investment
represents
term equity and other
investments
held by NMBZ Holdings Limited. The trade
NMBZ HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
for the year ended 31 December 2008
2008
Z$billion
2007
Z$billion
The subsidiaries, all of which are registered in Zimbabwe, and the extent of the group's beneficial
interest
therein and their principal business
activities are listed below:-
NMB Bank Limited
100% (Banking)
Carey Farm (Private) Limited (subsidiary
of NMB Bank Limited)
100% (Property owning)
Brixtun (Private) Limited
NMB Fund Management
(Private) Limited
Stewart Holdings (Private) Limited
Invariant
(Private) Limited
Darksan (Private) Limited
100% (Dormant)
100% (Dormant)
100% (Equity holdings)
100% (Dormant)
100% (Dormant)
Carey Farm (Private) Limited's only asset
is a certain piece of land situated in the District of Salisbury, called The Remainder of Lot H of
Borrowdale Estate measuring 89.2623 hectares (223.16 acres) in extent. The beneficial
interest
in the subsidiary arose from shareholding
acquired in settlement
of a debt owed to the Bank amounting to Z$0.001 0008. This acquisition is in compliance with Section 34 of the
Banking Act (Chapter 24:20).
Quoted investments
Unquoted investments
GROUP
HISTORICAL
2007
Z$lrillion
2008
Z$billion
19 965 232 297
The quoted investments
comprise shares stated for year end purposes at the last trading date of 17 November
2008. Trading on the
Zimbabwe Stock Exchange was suspended from 18 November 2008 to 19 February 2009.
NMBZ HOLDINGS
LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
for the year ended 31 December 2008
At 1 January
Fair value adjustments
At31 December
2008
Z$trillion
2007
Z$trillion
214900 000000
214900 000 000
Rental
income amounting to Z$561 trillion was received and no operating expenses were incurred on the investment property in the current
year.
The investment properties comprise 3 sets of properties namely Borowdale Road, Borrowdale Estate and other investment properties. The
Borrowdale Road which is also known Stand Number 19207 Harare Township of Stand 19206 measures 4.4506 hectares in extent. The
property was valued for year end purposes by the directors and the open market value was Z$70 000 000 000 trillion.
Borrowdale Estate which is also known as the remainder of Lot H of Borrowdale Estate is owned by Carey Farm (Pv1) Ltd, a wholly
owned subsidiary of the Bank. The property measures 89.2623 hectares (223.16 acres) in extent. The beneficial
in Carey Farm
(Private) Limited arose from shareholding acquired in settlement of a debt owed to the Bank amounting to Z$0.001 0008. The acquisition is
in compliance with Section 34 of the Banking Act (Chapter 24.20). The land was valued by the directors for year end purposes and the
interest
open market value was Z$122 500 000 000 trillion.
The other properties
comprise
residential
stands
and houses which were valued
by the directors
for year end purposes
at
Z$22 400 000 000 trillion.
HISTORICAL COSTI REVALUED AMOUNT
Computers
Z$lrillion
Motor
Vehicles
Z$trillion
Furniture &
Equipment
Z$billion
Assets
Leased to
Customers
Z$trillion
Freehold
Land & Building
Z$billion
Total
Z$billion
Cost
At 1 January 2008
Additions
Revaluation
Disposals
At 31 December 2008
Accumulated depreciation
At 1 January 2008
Charge for the year
Disposals
At 31 December 2008
Net book amount
At 31 December 2008
Net book amount
At 1 January 2008
The freehold land and buildings were valued by the directors at 31 December 2008. The estimated values were based on the comparative
in every
method and the properties were valued by reference to comparable
properties in the same area which are substantially
similar
material
respect.
NMBZ HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
for the year ended 31 December 2008
23.
INTEREST RATE REPRICING AND GAP ANALYSIS
23.1
Total position
At31 December 2008
Assets
Cash and cash
equivalents
Financial assets at fair value
through profit and loss
HISTORICAL
Upto 1
month
Z$lrillion
1 month
to 3 months
Z$lrillion
3 months
to 1 year
Z$lrillion
1 year to
5 years
Z$lrillion
Non-interest
bearing
Z$lrillion
Total
Z$lrillion
47187135390
120000056
47187135390
120000056
235269
Available-for-sale securities
235269
Advances and other accounts
1928234128
23383664
621
3935634465
5887252878
Quoted and other investments
Investment properties
Property and equipment
Liabilities and shareholders'
funds
49115604787
143383720
621
370400 866 762
419659855890
19 965 232 297
19965 232 297
214900000000
214900000000
131600000000
131600000000
Financial
liabilities
26815920
1531642
Deposits and other accounts
105 079 509 729
Provision for current
taxation
Deferred taxation
Shareholder's funds
105106325649
1531642
28347562
32 844 549 323
137924 059 q52
869337330
869337330
50095 992 945
50 095 992 945
230742119001
230742119001
-
314551 998599
419659855890
Interest rate repricing gap
(55990720862)
(1531642)
143383720
621
55 848 868163
Cumulative gap
(55990720862)
(55992252504)
(55848808784)
(55868868163)
NMBZ HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
for the year ended 31 December 2008
24.
INTEREST RATE REPRICING AND GAP ANALYSIS
24.1
Zimbabwe dollar
At 31 December 2008
HISTORICAL
Upto 1
month
1 month
t03months
Z$trillion
Z$trillion
3 months
to 1 year
Z$trillion
1 year to
5 years
Non-interest
bearing
Z$trillion
Total
Z$trillion
Assets
Cash and cash equivalents
1737380771
Financial assets at fair value
through profit and loss
Available-for-sale securities
Advances and other accounts
Quoted and other investments
Investment properties
Property and equipment
235269
773263557
120000056
1737380771
120000056
235269
23383664
621
3935634465
4732282307
10320192705
10320192705
-
-
214 900 000 000
214 900 000 000
131600000000
131600000000
2510879597
143383720
621
360755827
170
363410091108
Liabilities and shareholders' funds
Financial
liabilities
26815920
1531642
Deposits and other accounts
1828903944
Provision for current
taxation
Deferred taxation
Shareholder's funds
1855719864
1531642
28347562
32 844 549 323
34 673 453 267
869337330
869337330
50095 992 945
50095992945
-
230742119001
230742119001
314551998599
316409250105
Interest rate repricing gap
Cumulative gap
655159733
655159733
(1531642)
143383720
621
46203828571
47000841003
653628091
797011811
797012432
47000841
003
NMBl HOLDINGS LIMITED
"
NOTES TO THE FINANCIAL STATEMENTS (Continued)
for the year ended 31 December 2008
Up to 1
month
Z$trillion
1 month
to 3 months
Z$lrillion
3 months
to 1 year
Z$trillion
1 year to
5 years
Z$lrillion
Non-interest
bearing
Z$trillion
Total
Z$lrillion
9645 039 592
9645 039 592
1154 970 571
Cash and cash equivalents
Financial assets at fair value
thro"ugh profit and loss
Quoted and other investments
Advances and other accounts
Investment properties
Property and equipment
Financial
liabilities
Deferred taxation
Deposits and other accounts
Provision for current
taxation
Shareholder's funds
Interest rate repricing gap
(56645880595)
103250605
785
103250 605 785
_
9645039592
(47000841003)
Cumulative gap
(56645880595)
(56645880595)
(56645880595)
(56645880595)
(47000841003)
=====
NMBZ HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
for the year ended 31·December 2008
26.
FOREIGN EXCHANGE POSITIONS
26.4
At31 December2008
HISTORICAL
Assets
US$
Z$trillion
RAND
Z$trillion
GBP
Z$trillion
Other
foreign
currencies
Z$trillion
L$
Z$trillion
, TOTAL
Z$trillion
Cash and cash equivalents
31401757100
9772640579
1204663798
3070693142
1737380771
47187135390
Financial assets at fair value
through profit and loss
Available-for-sale securities
120000056
120000056
235269
235269
Advances and other accounts
194 722843
960247627
101
4732282307
5887252878
Quoted and other investments
9645039592
Investment properties
Property and equipment
10320192705
19 965 232 297
-
214 900 000 000
214900000000
131600000000
131600000000
41241519535
10732 888 206
1204663899
3070693142
363410091108
419659855890
Liabilities and shareholders'
funds
Financial
liabilities
Deferred taxation
28347562
28347562
50095 992 945
50 095 992 945
Deposits and other accounts
75731941996
10968247543
2976217024
13574199222
34 673453 267
137924 059 052
Provision for current taxation
Shareholder's funds
869337330
869337330
-
230742119001
230742119001
Net foreign exchange position
(34 490 422 461 )
(235 359 337)
(1771553125)
(10503506080)
47000841003
75731941996
10968247543
2976217024
13574199222
316409250105
419659855890
NMBZ HOLDINGS
LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
for the year ended 31 December 2008
Guarantees
Commitments
to lend
2008
Z$trillion
2007
Z$trillion
9299778077
9299778077
The Bank enters into various irrevocable commitments and contingent
liabilities in its normal course of business in order to meet financial
needs of customers. These obligations are not recognised on the balance sheet, but contain credit risk and are therefore part of the overall
risk of the bank.
Guarantees commit
the Bank to make payments on behalf of clients in the event of a specified act. Guarantees carry the same credit risk
as loans.
Commitments
to lend represent contractual commitments
to advance loans and revolving credits. Commitments
have fixed expiry dates
and may expire without being drawn upon, hence total contract amounts do not necessarily represent
future cash requirements.
28.
CAPITAL COMMITMENTS
Capital expenditure contracted for
Capital expenditure authorised but not yet contracted for
HISTORICAL
2008
Z$trillion
2007
Z$trillion
Capital commitments, when they arise, will be financed from the Group's own resources.
29.
OPERATING LEASE COMMITMENTS
Lease commitments
Up to 1 year
1 - 5 years
2008
Z$trillion
70719600000
14143920000
56 575 680 000
HISTORICAL
2007
Z$trillion
: I
As required by IAS 24, Related Parties Disclosures,
of the Bank. Accordingly,
management
key management
the Board's view is that non-executive
remuneration is disclosed below.
and executive directors constitute the key
2008
Z$trillion
204
2007
Z$trillion
At 31 December 2008, key management
held options to purchase ordinary shares of the Company as follows:
6000000
ordinary shares at a price of Z$0,00000001
exercisable between 7 January 2008 and 7 January 2013.
3000000
ordinary shares at a price of Z$0.000024 exercisable between 12 March 2008 and 12 March 2013.
I
NMBZ HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
for the year ended 31 December 2008
2008
Z$lrillion
2007
Z$lrillion
Non - executive directors
Executive directors
Officers (Note 16.6)
Directors' companies
Officers' companies
Intra group loans
Entities with significant
Interest from
Interestto
Amounts owed by
Amounts owed to
influence over the bank
related parties
related parties
related parties
related parties
Z$lrillion
Z$lrillion
Z$lrillion
Z$lrillion
2008
2ffJ7
Holding Company
In terms of the existing Articles of Association, Article 56, the directors may from time to time, attheir discretion, borrow or secure
the payment of any sum or sums of money for the purposes of the company without any limitation.
Banking subsidiary
In terms of the existing Articles of Association, Article 56, the directors may from time to time, attheir discretion, borrow or secure
the payment of any sum or sums of money for the purposes of the company without any limitation.
The assets of the Pension Fund are held separately from those of the Group in funds under the control ofTrustees.
The pension
fund assets include 389 068 shares in NMBZ Holdings Limited as at 31 December 2008.
NMBZ HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
for the year ended 31 December 2008
2008
Z$trillion
220
2007
Z$trillion
In terms of the Employee
Share Option Scheme,
up to a maximum of 10% of the issued share capital may be granted
by the
directors
to senior employees
by way of options. Each set of options is exercisable
at any time within a period of five years from
the date the options are granted and the issue price is based on the higher of nominal value of the shares and the middle mar1 Continue reading text version or see original annual report in PDF
format above