Closely examine all the components of the financial statement and analyse the performance with an emphasis on the profitability, liquidity and credit risk.

CONSOLIDATED BANK (GHANA) LIMITED Financial statements For the year ended 31 December 2019 STATEMENT OF COMPREHENSIVE INCOME (All amounts are in thousands of Ghana cedis) For the year ended 31 December 2019 For the period 1 August 2018 to 31 December 2018 Note Interest income Interest expense 5 6 1,021,462 (544,867) 460,760 (338,793) Net interest income 476.595 121,967 Fee and commission income Fee and commission expense Net fees and commission income 7 8 34,367 (3.177) 31,190 10,403 (1.254) 9.149 7,096 9 Net trading income Other income 52,094 9,538 10 Operating income 569,417 138,212 11 12 Impairment losses on financial assets Personnel expenses Depreciation and amortisation Other expenses (4,896) (209,864) (62,811) (188,122) (13,478) (57,504) (13,634) (82,001) 20 13 103,724 (28,405) Profit/(Loss) before income tax 14 5,565 Income tax (charge)/credit National fiscal stabilisation levy (29,491) (5,186) 14 69,047 (22,840) Profit/(loss) for the year Other comprehensive income: Items that may be reclassified to profit or loss 16 (3,286) Changes in the fair value of debt instruments at fair value through other comprehensive income Deferred income tax relating to other comprehensive income item 21 822 (2,4642 66,583 (22,840) Total comprehensive income/ (loss) The notes on pages 21 to 79 are an integral part of these financial statements. 17 CONSOLIDATED BANK (GHANA) LIMITED Financial statements For the year ended 31 December 2019 STATEMENT OF FINANCIAL POSITION (All amounts are in thousands of Ghana cedis) At 31 December 2019 2018 Note 15 16 1,121,869 6,232,573 3,546 Assets Cash and cash equivalents Investment securities Loans and advances to customers Intangible assets Right-of-use asset Property and equipment Deferred income tax assets Other assets 17 18 370,060 5,981,135 229,878 14,778 109,139 104,394 6,266 129,340 19 20 123,623 5,565 1.557 21 22 Total assets 6,942,990 7488.733 Liabilities 23 24 5,512,313 1,175,808 Deposits from customers Due to other banks Lease liabilities Other liabilities Current income tax liability 19 5,096,350 698,284 108,571 540,026 6,016 25 373,452 14 6,449,247 7.061,573 26 Total liabilities Equity Stated capital Retained earnings Fair value reserve Statutory reserve 450,000 (22,840) 450,000 11,683 (2,464) 34.524 26 493,743 427.160 Total equity 6,942,990 2488,233 Total equity and liabilities The notes on pages 21 to 79 are an integral part of these financial statements. The financial statements of the Bank on page 17 to 79 were approved by the Board of Directors on 24 March 2020 and signed on their behalf by: Cumble Daniel Wilson Addo (Managing Director) Welbeck Abra-Appiah (Chairman) CONSOLIDATED BANK (GHANA) LIMITED Financial statements For the year ended 31 December 2019 STATEMENT OF CHANGES IN EQUITY (All amounts are in thousands of Ghana cedis) Total Stated Capital Retained Statutory carnings reserve Fair value reserve Note Balance at 1 January 2019 450,000 (22,840) 427,160 69,047 69,047 Profit for the year Fair value adjustment on investment securities Total comprehensive income for the year (2.464) (2,464) 69,047 (2.464) 66,583 Regulatory and other reserve transfers Transfer to statutory reserve (34.524) 34.524 Net transfer to reserves (34.524) 34.524 450,000 Balance at 31 December 2019 11,683 34.524 (2,464) 493.743 Balance at 1 August 2018 (22,840) (22,840) Loss for the period Other comprehensive income Transaction with owners: Issue of share capital 26 450,000 450,000 450,000 (22,840) 427,160 Balance at 31 December 2018 The notes on pages 21 to 79 are an integral part of these financial statements. CONSOLIDATED BANK (GHANA) LIMITED Financial statements For the year ended 31 December 2019 STATEMENT OF CASH FLOWS (All amounts are in thousands of Ghana cedis) Year ended 31 December 2019 Period ended 31 December 2018 Note (28,405) 103,724 13,634 20 1,252 11 19 62,811 507 7,787 2,575 (8,024) (984,522) 19 (453,540) 20 16 Profit/(Loss) before income tax Adjustments for: Depreciation and amortisation Impairment loss on investment securities Finance cost on lease liability Unrealised exchange loss on lease liability Gain on asset disposal Interest income on investment securities Changes in: Loans and advances to customers Other assets Deposits from customers Mandatory cash reserve Due to other banks Other liabilities 17 22 (3,546) (1,557) (1,307,774) (551,231) (428,021) 272,849 (224,332) (128,453) (415,963) 551,231 (477,524) _166.371 23 15 24 25 (2,486,339) Cash flow used in operations Tax paid (1,343,812) (28,337) 14 (1,372,149) (2.486.339) Net cash flow used in operating activities (546) 20 20 18 Cash flow from investing activities Acquisition of property and equipment Proceeds from disposal of property and equipment Acquisition of intangible assets Purchases of investment securities maturing over 91 days Proceeds from redemption/sale of investment securities maturing over 91 days Net cash flow generated from investing activities (30,357) 23,911 (16,605) (3,875,756) 4,153.485 (11,118,835) 14.463.856 254,678 3.344.475 450,000 Cash flow from financing activities Proceeds from issue of share capital Payment of principal portion of lease liabilities 26 19 (37545) (37,545) 450,000 Net cash flow generated from financing activities (1,155,016) 1,554,242 1,308,136 246,106 Net increase in cash and cash equivalents Balance at the beginning of the year/period Cash and cash equivalents at 31 December 15 _399,226 1.554,242 The notes on page 21 to 79 are an integral part of these financial statements. CONSOLIDATED BANK (GHANA) LIMITED Financial statements For the year ended 31 December 2019 STATEMENT OF COMPREHENSIVE INCOME (All amounts are in thousands of Ghana cedis) For the year ended 31 December 2019 For the period 1 August 2018 to 31 December 2018 Note Interest income Interest expense 5 6 1,021,462 (544,867) 460,760 (338,793) Net interest income 476.595 121,967 Fee and commission income Fee and commission expense Net fees and commission income 7 8 34,367 (3.177) 31,190 10,403 (1.254) 9.149 7,096 9 Net trading income Other income 52,094 9,538 10 Operating income 569,417 138,212 11 12 Impairment losses on financial assets Personnel expenses Depreciation and amortisation Other expenses (4,896) (209,864) (62,811) (188,122) (13,478) (57,504) (13,634) (82,001) 20 13 103,724 (28,405) Profit/(Loss) before income tax 14 5,565 Income tax (charge)/credit National fiscal stabilisation levy (29,491) (5,186) 14 69,047 (22,840) Profit/(loss) for the year Other comprehensive income: Items that may be reclassified to profit or loss 16 (3,286) Changes in the fair value of debt instruments at fair value through other comprehensive income Deferred income tax relating to other comprehensive income item 21 822 (2,4642 66,583 (22,840) Total comprehensive income/ (loss) The notes on pages 21 to 79 are an integral part of these financial statements. 17 CONSOLIDATED BANK (GHANA) LIMITED Financial statements For the year ended 31 December 2019 STATEMENT OF FINANCIAL POSITION (All amounts are in thousands of Ghana cedis) At 31 December 2019 2018 Note 15 16 1,121,869 6,232,573 3,546 Assets Cash and cash equivalents Investment securities Loans and advances to customers Intangible assets Right-of-use asset Property and equipment Deferred income tax assets Other assets 17 18 370,060 5,981,135 229,878 14,778 109,139 104,394 6,266 129,340 19 20 123,623 5,565 1.557 21 22 Total assets 6,942,990 7488.733 Liabilities 23 24 5,512,313 1,175,808 Deposits from customers Due to other banks Lease liabilities Other liabilities Current income tax liability 19 5,096,350 698,284 108,571 540,026 6,016 25 373,452 14 6,449,247 7.061,573 26 Total liabilities Equity Stated capital Retained earnings Fair value reserve Statutory reserve 450,000 (22,840) 450,000 11,683 (2,464) 34.524 26 493,743 427.160 Total equity 6,942,990 2488,233 Total equity and liabilities The notes on pages 21 to 79 are an integral part of these financial statements. The financial statements of the Bank on page 17 to 79 were approved by the Board of Directors on 24 March 2020 and signed on their behalf by: Cumble Daniel Wilson Addo (Managing Director) Welbeck Abra-Appiah (Chairman) CONSOLIDATED BANK (GHANA) LIMITED Financial statements For the year ended 31 December 2019 STATEMENT OF CHANGES IN EQUITY (All amounts are in thousands of Ghana cedis) Total Stated Capital Retained Statutory carnings reserve Fair value reserve Note Balance at 1 January 2019 450,000 (22,840) 427,160 69,047 69,047 Profit for the year Fair value adjustment on investment securities Total comprehensive income for the year (2.464) (2,464) 69,047 (2.464) 66,583 Regulatory and other reserve transfers Transfer to statutory reserve (34.524) 34.524 Net transfer to reserves (34.524) 34.524 450,000 Balance at 31 December 2019 11,683 34.524 (2,464) 493.743 Balance at 1 August 2018 (22,840) (22,840) Loss for the period Other comprehensive income Transaction with owners: Issue of share capital 26 450,000 450,000 450,000 (22,840) 427,160 Balance at 31 December 2018 The notes on pages 21 to 79 are an integral part of these financial statements. CONSOLIDATED BANK (GHANA) LIMITED Financial statements For the year ended 31 December 2019 STATEMENT OF CASH FLOWS (All amounts are in thousands of Ghana cedis) Year ended 31 December 2019 Period ended 31 December 2018 Note (28,405) 103,724 13,634 20 1,252 11 19 62,811 507 7,787 2,575 (8,024) (984,522) 19 (453,540) 20 16 Profit/(Loss) before income tax Adjustments for: Depreciation and amortisation Impairment loss on investment securities Finance cost on lease liability Unrealised exchange loss on lease liability Gain on asset disposal Interest income on investment securities Changes in: Loans and advances to customers Other assets Deposits from customers Mandatory cash reserve Due to other banks Other liabilities 17 22 (3,546) (1,557) (1,307,774) (551,231) (428,021) 272,849 (224,332) (128,453) (415,963) 551,231 (477,524) _166.371 23 15 24 25 (2,486,339) Cash flow used in operations Tax paid (1,343,812) (28,337) 14 (1,372,149) (2.486.339) Net cash flow used in operating activities (546) 20 20 18 Cash flow from investing activities Acquisition of property and equipment Proceeds from disposal of property and equipment Acquisition of intangible assets Purchases of investment securities maturing over 91 days Proceeds from redemption/sale of investment securities maturing over 91 days Net cash flow generated from investing activities (30,357) 23,911 (16,605) (3,875,756) 4,153.485 (11,118,835) 14.463.856 254,678 3.344.475 450,000 Cash flow from financing activities Proceeds from issue of share capital Payment of principal portion of lease liabilities 26 19 (37545) (37,545) 450,000 Net cash flow generated from financing activities (1,155,016) 1,554,242 1,308,136 246,106 Net increase in cash and cash equivalents Balance at the beginning of the year/period Cash and cash equivalents at 31 December 15 _399,226 1.554,242 The notes on page 21 to 79 are an integral part of these financial statements