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NBB financial statements of 2017

NBB financial statements of 2018

Albaraka financial statements of 2017

Albaraka financial statements of 2018

Compare between the financial statements of (National bank of bahrain and Albaraka bank bahrain)

albaraka financial statements of 2017

National bank of bahrain 2017

i. Islamic financial analysis: Select one Islamic bank and one conventional bank operating in Bahrain. When selecting, make sure that their recent annual reports are available online. Study the relevant financial statements (Balance Sheet, Income Statement, Cash Flow Statement, Statement of Owner's Equity, etc.) a. How banks' performance is evaluated? b. Choose at least 3 criteria for assessing performance and then compare the performance of the two banks you have chosen. c. If the Islamic bank performed relatively better or worse, explain possible reasons. s! Ett lite .... I! Blouses Bit li Ett 1 . .. lol Hello F STATEMENT OF COMPREHENSIVE INCOME PhotoGrid at the end ist es Bits s stats sit ! E . ... IT SEBE.. lol ill Els H Bell FISH STATEMENT OF COMPREHENSIVE INCOME Os PhotoGrid Fit Consolidated Statement of Financial Position At 31 December 2018 Consolidated Statement of Changes in off-Balance Sheet Equity of Investment Accountholders For the year ended 31 December 2018 LIABILITES, IQUITY OF INVESTMENT ACCOUNTHOUDERS TOTAL QUITY INVESTMENT ACCOUNTHOIDES SURRATED DIRT AND OWNERS EQUITY COUNTHOUDERS CONTINGENCIES AND COMMITMENTS Consolidated Statement of Cash Flows Consolidated Statement of Changes in Owners' Equity Consolidated Statement of income 11 il ! sinh i all Balalaistus bl.is PhotoGrid CONSOLIDATED STATEMENT OF CHANGES IN OWNERS' EQUITY For the year ended 31 December 2017 CONSOLIDATED STATEMENT OF CHANGES IN OFF-BALANCE SHEET EQUITY OF INVESTMENT ACCOUNTHOLDERS For the year ended 31 December 2017 000 49 CONSOLIDATED STATEMENT OF CASH FLOWS CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONSOLIDATED STATEMENT OF INCOME II still siis 1.B PhotoGrid CONSOLIDATED STATEMENT OF FINANCIAL POSITION At 31 December 2017 2017 US$ '000 2016 US$ '000 Notes 218,949 728.586 ASSETS Cash and balances with banks and financial institutions Receivables Mudaraba financing Ijara Muntahia Bittamleek Musharakas Investments Investments in real estate Ijara income receivables Investment in a joint venture Premises and equipment Goodwill Other assets TOTAL ASSETS 265,610 339,641 517,738 5,974 43,285 14,636 35,733 20,338 106,446 2,296,936 280,611 742,584 776 279,768 316,728 548,899 5,974 30,605 14,576 30,029 28,181 106,519 2,385.250 16 LIABILITIES, EQUITY OF INVESTMENT ACCOUNTHOLDERS, SUBORDINATED DEBTS AND OWNERS' EQUITY Liabilities Current accounts Due to banks and financial institutions Medium term financing Other liabilities Total liabilities Equity of investment accountholders 294,637 52,087 99,816 127,478 574,018 293,308 58,474 90,582 91,479 533,843 1,474,200 1,598,245 18 19 57,033 46,478 20 Subordinated debts Owners' Equity Share capital Reserves Retained earnings Equity attributable to parent's shareholders Non-controlling interest 122,458 19,513 11,936 153,907 37,778 122.458 25,156 15,483 163,097 43,587 191.685 206,684 2,296,936 2,385 250 Total owners' equity TOTAL LIABILITIES, EQUITY OF INVESTMENT ACCOUNTHOLDERS, SUBORDINATED DEBTS AND OWNERS' EQUITY OFF-BALANCE SHEET ITEMS: EQUITY OF INVESTMENT ACCOUNTHOLDERS CONTINGENCIES AND COMMITMENTS 85,603 306,232 75.990 279,375 21 CONSOLIDATED STATEMENT OF INCOME For the year ended 31 December 2017 Notes 2017 US$ '000 2016 US$ '000 INCOME Income from jointly financed sales Income from jointly financed, other financing and investments 33,630 42,260 Income from jointly financed assets Return on equity of investment accountholders before Group's share as a Mudarib Group's share as a Mudarib Return on equity of investment accountholders 40,284 50,019 90,303 (71,861) 18,308 (53,553) 75,890 (61,137) 16,579 (44,558) 31,332 Group's share as a Mudarib and Rabalmal 36,750 Group's income from self financed sales Group's income from self financed, other financing and investments Revenue from banking services Other income Fair value gain on acquisition and merger Group's Mudarib/agency fee from off-balance sheet equity of investment account holders TOTAL OPERATING INCOME 1,463 21,783 10,937 3,639 1,610 14,635 12,834 2,680 6,999 118 70,208 105 74,677 OPERATING EXPENSES Staff expenses Depreciation Other operating expenses (29,219) (3,063) (25,646) TOTAL OPERATING EXPENSES (57,928) (35,772) (5,264) (35,936) (76,972) (2,295) (4,400) (6,695) 1,293 (5,402) NET OPERATING (LOSS) /INCOME Provision for impairment.net (LOSS) /INCOME BEFORE TAXATION Taxation (LOSS) /INCOME FOR THE YEAR 12,280 27 (9,442) 2,838 (535) 2,303 Attributable to: Equity shareholders of the parent Non-controlling interest 2,213 (4,289) (1,113) (5,402) 2,303 CONSOLIDATED STATEMENT OF CHANGES IN OWNERS' EQUITY For the year ended 31 December 2017 Equity attributable to shareholders of the parent Reserves Cumulative Revaluation Employee changes in of Premises defined fair value of and Foreign Retained capital Statutory General benefit plan investments Equipment exchange earnings Total USS '000 US$ '000 US$ 000 US$ 000 US$ 000 USS '000 US$ '000 US$ 000 US$ '000 Share Non- Total controlling owners interest equity US$ 000 US$ 000 122,458 22 699 8,687 (114) 1,193 (9,316) 15,483 2.007 (1,081) Balance at 1 January 2017 Cumulative changes in fair value Foreign currency translation reserve Net loss for the year Effects of changes in controlling interest Balance at 31 December 2017 . (4,039) - (559) 1,193 (13,914) 163,097 (1,081) (4,039) (4,289) 219 153,907 43,587 206,684 (784) (1,865) (2.155) (6,194) (1,113) (5,402) (1.757) (1,538) 37,778 191,685 39 (4.289) 742 11,936 122.458 22.699 8,687 (117) 965 122.458 224788,687 (173) (121) 1,193 (11.789) 12,926 - . 155,659 2,339 143 - 18,330 1,350 86 26,405 173,989 3,689 229 26,405 Balance at 1 January 2016 Cumulative changes in fair value Foreign currency translation reserve Acquisition and amalgamation (note 4) Effects of changes in controlling interest in lieu of merger and acquisition (note 4) Net income for the year Remeasurement gains on defined benefit plan Transfer to statutory reserve Balance at 31 December 2016 18 2,330 565 2,213 2,702 2,213 2,702) 9 0 2,303 . 1,193 . 9316) - (221) 15.483 41 . 163,097 28 69 . 43 587 206,684 122.458 22 699 8,687 (114) 2.007 CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 December 2017 2017 US$ 000 2016 USS '000 (6,695) 2,838 3,063 5.264 4.400 (536) (60) (2,055) 318 (2.942) 12,369 102,176 (25,648) 776 OPERATING ACTIVITIES Net (loss) /income before taxation Adjustments for Depreciation Provision for impairment - net Gain on sale of premises and equipment Share of (gain) / loss from investment in joint venture Gain on sale of investments Operating profit before changes in operating assets and liabilities Net changes in operating assets and liabilities: Balances with central banks in mandatory reserves Receivables Mudaraba financing jara Muntahia Bittamleek Musharaka jara income receivable Other assets Other liabilities Due to banks and other financial institutions Current accounts Equity of investment accountholders Taxation paid Net cash (used in) / from operating activities INVESTING ACTIVITIES Purchase of investments Investments sold / matured Net investment in merger/ acquistion Investment in a joint venture Purchase of premises and equipment Sale of premises and equipment Net cash from (used in) investing activities 14,158 (23,403) (13,347) 1,720 35,999 (6,387) 1329 (124,045) (388) (36,742) (70,066) (42.168) (220) (11356) (46,803) (6.940) (12.778) 6.527 (2.127 19.946 200,269 (635) 46,018 (235,775) 265,675 (1.538) (156,425) 98,198 23,481 (14 589) (3.024) (6,612) 1,445 23,195 (52.289) 10.555 9234 19.789 FINANCING ACTIVITIES Subordinated debts Medium term financing Net cash from financing activities Foreign currency translation adjustments INCREASE IN CASH AND CASH EQUIVALENTS Cash and cash equivalents at 1 January CASH AND CASH EQUIVALENTS AT 31 DECEMBER (note 28) 23.756 25,175 48,931 159 42,819 (3.616) 2,626 317,153 319,779 274334 317,153 CONSOLIDATED STATEMENT OF CHANGES IN OFF-BALANCE SHEET EQUITY OF INVESTMENT ACCOUNTHOLDERS For the year ended 31 December 2017 Balance at 1 January 2017 US$ '000 66,585 9,405 75,990 Net Gross deposits income US$ '000 US$ '000 8,038 1,491 189 8,2271,491 Mudarib's / agency fee US$ '000 (105) Balance at 31 December 2017 US$ '000 76,009 9,594 85,603 Receivables Investments (105) Net Balance at 1 January 2016 USS '000 94,677 9,462 104,139 Gross income US$ '000 1,810 withdrawals US$ '000 (29,784) (57) (29,841) Mudarib's / agency fee USS '000 (118) Balance at 31 December 2016 USS '000 66,585 9,405 75,990 Receivables Investments 1,810 (118) STATEMENT OF FINANCIAL POSITION As at 31 December 2017 2016 Note BD millions US$ millions BD millions USS millions 107.04 419.92 284.68 1,116.82 462.79 174.01 Assets Cash and balances at central banks Treasury bills Placements with banks and other financial institutions Trading securities Loans and advances Investment securities Investment in associates Interest receivable and other assets Property and equipment Total assets 1,226.85 1,067.30 51.58 41.79 13.05 3,101.54 3,262.90 2,838.56 137.18 111.15 34.71 8,248.79 102.99 486.80 160.90 0.35 1,031.93 1,092 92 50.08 38. 71 12 42 2,97710 273.92 294,69 427.93 0.93 2744,48 2,906.71 133.18 1 02.96 33 03 7,917.83 Liabilities Due to banks and other financial institutions Borrowings under repurchase agreements Customer deposits Interest payable and other liabilities Total liabilities 384.01 67.83 2,165.21 36.55 2.653.60 1,021.30 180.40 5,758.55 97.21 7,057.46 373.81 64.28 2038.35 35.96 2,562.40 994.19 170.96 5,554.12 95 54 6.814.91 Equity Share capital Shares under employee share incentive scheme Share premium Statutory reserve General reserve Other reserves and retained earnings Total equity Total liabilities and equity 127.54 (167) 4.02 63.77 32.40 221.88 447.94 3,101.54 339.20 (4.44) 10.69 169.60 86.17 590.11 1,191.33 8,248.79 115.95 (1.64) 2.53 57.98 32.40 207.48 414,70 2.977.10 308.38 (4.36) 6.73 154.19 86.17 551.81 1.102.92 791783 The board of directors approved the financial statements consisting of pages 52 to 83 on 29 January 2018 and signed on its behalf by: National Bank of Bahrain B.S.C 2017 Annual Report 53 STATEMENT OF PROFIT OR LOSS For the year ended 31 December 2017 2016 Note BD millions US millions BD millions USS millions Interest income Interest expense Net interest income Other income Total operating income 102.09 (29.02) 73.07 31.40 104.47 271.52 (77.19) 194.33 83.51 277.84 88.14 (22.15) 65.99 30.88 96.87 Staff expenses Other expenses Total operating expenses Profit before provisions Impairment provisions on loans and advances Impairment provisions on investments Profit for the year Basic and diluted earnings per share 21.30 11.69 32.99 71.48 (10.40) (0.07) 61.01 48.4 fils 56.65 31.09 87.74 190.10 (27.66) (0.19) 162.25 13 cents 23.90 10.19 34.09 62.78 (2.08) (2.46) 58.24 46.3 fils 234.41 (58.90) 175.51 82.14 257.65 63,57 27.13 90.70 166.95 (5.53) (6.54) 154.88 12 cents 3 8 STATEMENT OF COMPREHENSIVE INCOME For the year ended 31 December 2017 BD millions 2016 BD millions US millions US$ millions 61.01 162.25 58.24 154.88 (0.01) (0.03) Profit for the year Other comprehensive Income: Items that are or may be reclassified subsequently to profit or loss: Foreign currency translation movement Fair value reserve (available for sale securities): Net change in fair value Net amount transferred to profit or loss Share of other comprehensive income of associates Total other comprehensive income for the year Total comprehensive income for the year 111 19.53 (1.89) 51.95 (5.03) (0.29) 0.03 0.85 61.86 2.95 (0.77) 0.08 2.26 164.51 1763 75.87 46.89 STATEMENT OF CHANGES IN EQUITY For the year ended 31 December 2017 Shares under employee Donation and charity Statutory General value Share Note capital incentive S hare scheme premium Retained earnings Total BD millions in B millions millions Balance at January 2017 (184) 25 570032.40 25 25 14.66 167.56 414.70 102.92 2016 appropriations: Cash dividend at 25% . (28.65) (28.65) (76.19) Bonus shares issued 10% 11.59 (0.14) Transfer to donations and charity 2.91 2.91) - Transfer to general reserve - (17.38) Transfer to statutory reserve Balance after 2016 appropriations 127.54 (178) 253 6 3.77 32.40 17.57 118.76 386.05 1,026.73 Employee shares allocated Comprehensive income for the year Profit for the year 6101 6101162.25 Other comprehensive income - 0.05 . - 0.85 2.26 Total comprehensive income for the year - - - - 0.85 6101 61.86 164.50 Utilisation of donation and charity - (L57) - (157) (4.17 Balance at 31 December 2017 20-22 127.54 (167) 5377 240 26.11 16.00 179.77 447.94 1191.33 The appropriations for the year 2017 will be submitted to the shareholders at the annual meeting. These appropriations include BD 31,89 million for cash dividend at 25% (2016: 25%), BO 3.05 million for donations and contributions and a transfer of BD 19.13 million from retained earnings to general reserve. The Board of Directors has also proposed a one for ten bonus issue through utilization of BD 12.75 million from general reserve and the transfer of BD 6.38 million from General Reserve to Statutory Reserve For the year ended 31 December 2016 Shares under employee share incentive scheme Share premium Statutory reserve General Fair value reserve reserve Donation and charity reserve Total Retained 3D earnings milions USS millions (1.72) 121 SLTS 32.40 7.62 3.40 154.69 364.76 970.11 - 25.98) (69.10) (0.15) (10.54) - - - (25.98) 0.15 2.76) (16.77) 2.76 Share in B millions Note capital Balance at 1 January 2016 105.41 2015 appropriations: Cash dividend at 25% Bonus shares issued 10% 10.54 Transfer to donations and charity Transfer to general reserve Transfer to statutory reserve Balance after 2015 appropriations 115.95 Employee shares allocated - Comprehensive income for the year Profit for the year - Other comprehensive income Total comprehensive income for the year . Utilisation of donation and charity reserve Balance at 31 December 2016 20-22115.95 - (187) 0.23 - 121 132 0.98 S27 5798 - 15.81 527) 3 2.40 - - 762 - 16.16 - 10933 - 338 78 1.55 901.01 4.13 - - - - . . - . . - 1754 7.64 58.24 (0.01) 58.23 58.24 1763 75.87 154.88 46.89 201.77 . . (1.50) 4,66 (150) 414 20 (3.99) 0292 (184) 253 579832.40 25.26 16756 STATEMENT OF CASH FLOW For the year ended 31 December 2017 2016 Note BD millions US millions BD millions USS millions 61.01 162.25 58.24 154.88 4.39 5.53 1.76 10.40 0.07 (3.75) 69,49 4,68 27.66 0.19 (9.97) 184.81 1.65 2.08 2.46 (2.99) 61.44 6.54 (7.95) 16339 Cash flows from operating activities Profit for the year Adjustments to reconcile net income to net cash from operating activities Depreciation Impairment provisions on loans and advances Impairment provisions on investments Share of profit of associates Profit for the year after adiustments Changes in operating assets and liabilities Balances with central banks (mandatory cash reserves) Treasury bills Placements with banks and other financial institutions Trading securities Loans and advances Investment securities Interest receivable and other assets Due to banks and other financial institutions Borrowings under repurchase agreements Customer deposits Interest payable and other liabilities Net cash from used in) operating activities Cash flows from investing activities Investment in associates Dividend received from associates Purchase of property and equipment, net Net cash used in investing activities 1.10 18.64 16.31 0.35 (205.32) 24.50 0.30 10.19 3.54 76.87 0.59 16.56 2.93 49.57 43.38 0.93 (5.46.06) 65.16 0.80 27.10 9.41 204.44 1.57 44.04 3.36 (145.38) (15.42) 5.69 17.71 5.98 0.88 102.32 (5.37) (158.67) 1.74 (125.72) 8.94 (386.65) (41.01) 15.13 4710 15.89 234 272.13 (14.28) (421.99) 4.63 (334 39) 126 60) 173 2.29 (2.39) (0.10) 6.09 (6.36) (0.27) (10.00) 0.65 (1.56) (10.91) (4.15) 29.02) (28.57) (1.57 Cash flows from financing activities Dividends paid Donations and charities paid Net cash used in financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at 1 January Cash and cash equivalents at 31 December (30.14) (75.98) (4.18) (80.16) (36.39) 555.47 519.08 (25.66) (1.50) (2716) (163.79) 372.65 208.86 (68.24) (3.99) (72.23) (435 63) 99110 555.47 15 15 (13.68) 208.86 195.18 i. Islamic financial analysis: Select one Islamic bank and one conventional bank operating in Bahrain. When selecting, make sure that their recent annual reports are available online. Study the relevant financial statements (Balance Sheet, Income Statement, Cash Flow Statement, Statement of Owner's Equity, etc.) a. How banks' performance is evaluated? b. Choose at least 3 criteria for assessing performance and then compare the performance of the two banks you have chosen. c. If the Islamic bank performed relatively better or worse, explain possible reasons. s! Ett lite .... I! Blouses Bit li Ett 1 . .. lol Hello F STATEMENT OF COMPREHENSIVE INCOME PhotoGrid at the end ist es Bits s stats sit ! E . ... IT SEBE.. lol ill Els H Bell FISH STATEMENT OF COMPREHENSIVE INCOME Os PhotoGrid Fit Consolidated Statement of Financial Position At 31 December 2018 Consolidated Statement of Changes in off-Balance Sheet Equity of Investment Accountholders For the year ended 31 December 2018 LIABILITES, IQUITY OF INVESTMENT ACCOUNTHOUDERS TOTAL QUITY INVESTMENT ACCOUNTHOIDES SURRATED DIRT AND OWNERS EQUITY COUNTHOUDERS CONTINGENCIES AND COMMITMENTS Consolidated Statement of Cash Flows Consolidated Statement of Changes in Owners' Equity Consolidated Statement of income 11 il ! sinh i all Balalaistus bl.is PhotoGrid CONSOLIDATED STATEMENT OF CHANGES IN OWNERS' EQUITY For the year ended 31 December 2017 CONSOLIDATED STATEMENT OF CHANGES IN OFF-BALANCE SHEET EQUITY OF INVESTMENT ACCOUNTHOLDERS For the year ended 31 December 2017 000 49 CONSOLIDATED STATEMENT OF CASH FLOWS CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONSOLIDATED STATEMENT OF INCOME II still siis 1.B PhotoGrid CONSOLIDATED STATEMENT OF FINANCIAL POSITION At 31 December 2017 2017 US$ '000 2016 US$ '000 Notes 218,949 728.586 ASSETS Cash and balances with banks and financial institutions Receivables Mudaraba financing Ijara Muntahia Bittamleek Musharakas Investments Investments in real estate Ijara income receivables Investment in a joint venture Premises and equipment Goodwill Other assets TOTAL ASSETS 265,610 339,641 517,738 5,974 43,285 14,636 35,733 20,338 106,446 2,296,936 280,611 742,584 776 279,768 316,728 548,899 5,974 30,605 14,576 30,029 28,181 106,519 2,385.250 16 LIABILITIES, EQUITY OF INVESTMENT ACCOUNTHOLDERS, SUBORDINATED DEBTS AND OWNERS' EQUITY Liabilities Current accounts Due to banks and financial institutions Medium term financing Other liabilities Total liabilities Equity of investment accountholders 294,637 52,087 99,816 127,478 574,018 293,308 58,474 90,582 91,479 533,843 1,474,200 1,598,245 18 19 57,033 46,478 20 Subordinated debts Owners' Equity Share capital Reserves Retained earnings Equity attributable to parent's shareholders Non-controlling interest 122,458 19,513 11,936 153,907 37,778 122.458 25,156 15,483 163,097 43,587 191.685 206,684 2,296,936 2,385 250 Total owners' equity TOTAL LIABILITIES, EQUITY OF INVESTMENT ACCOUNTHOLDERS, SUBORDINATED DEBTS AND OWNERS' EQUITY OFF-BALANCE SHEET ITEMS: EQUITY OF INVESTMENT ACCOUNTHOLDERS CONTINGENCIES AND COMMITMENTS 85,603 306,232 75.990 279,375 21 CONSOLIDATED STATEMENT OF INCOME For the year ended 31 December 2017 Notes 2017 US$ '000 2016 US$ '000 INCOME Income from jointly financed sales Income from jointly financed, other financing and investments 33,630 42,260 Income from jointly financed assets Return on equity of investment accountholders before Group's share as a Mudarib Group's share as a Mudarib Return on equity of investment accountholders 40,284 50,019 90,303 (71,861) 18,308 (53,553) 75,890 (61,137) 16,579 (44,558) 31,332 Group's share as a Mudarib and Rabalmal 36,750 Group's income from self financed sales Group's income from self financed, other financing and investments Revenue from banking services Other income Fair value gain on acquisition and merger Group's Mudarib/agency fee from off-balance sheet equity of investment account holders TOTAL OPERATING INCOME 1,463 21,783 10,937 3,639 1,610 14,635 12,834 2,680 6,999 118 70,208 105 74,677 OPERATING EXPENSES Staff expenses Depreciation Other operating expenses (29,219) (3,063) (25,646) TOTAL OPERATING EXPENSES (57,928) (35,772) (5,264) (35,936) (76,972) (2,295) (4,400) (6,695) 1,293 (5,402) NET OPERATING (LOSS) /INCOME Provision for impairment.net (LOSS) /INCOME BEFORE TAXATION Taxation (LOSS) /INCOME FOR THE YEAR 12,280 27 (9,442) 2,838 (535) 2,303 Attributable to: Equity shareholders of the parent Non-controlling interest 2,213 (4,289) (1,113) (5,402) 2,303 CONSOLIDATED STATEMENT OF CHANGES IN OWNERS' EQUITY For the year ended 31 December 2017 Equity attributable to shareholders of the parent Reserves Cumulative Revaluation Employee changes in of Premises defined fair value of and Foreign Retained capital Statutory General benefit plan investments Equipment exchange earnings Total USS '000 US$ '000 US$ 000 US$ 000 US$ 000 USS '000 US$ '000 US$ 000 US$ '000 Share Non- Total controlling owners interest equity US$ 000 US$ 000 122,458 22 699 8,687 (114) 1,193 (9,316) 15,483 2.007 (1,081) Balance at 1 January 2017 Cumulative changes in fair value Foreign currency translation reserve Net loss for the year Effects of changes in controlling interest Balance at 31 December 2017 . (4,039) - (559) 1,193 (13,914) 163,097 (1,081) (4,039) (4,289) 219 153,907 43,587 206,684 (784) (1,865) (2.155) (6,194) (1,113) (5,402) (1.757) (1,538) 37,778 191,685 39 (4.289) 742 11,936 122.458 22.699 8,687 (117) 965 122.458 224788,687 (173) (121) 1,193 (11.789) 12,926 - . 155,659 2,339 143 - 18,330 1,350 86 26,405 173,989 3,689 229 26,405 Balance at 1 January 2016 Cumulative changes in fair value Foreign currency translation reserve Acquisition and amalgamation (note 4) Effects of changes in controlling interest in lieu of merger and acquisition (note 4) Net income for the year Remeasurement gains on defined benefit plan Transfer to statutory reserve Balance at 31 December 2016 18 2,330 565 2,213 2,702 2,213 2,702) 9 0 2,303 . 1,193 . 9316) - (221) 15.483 41 . 163,097 28 69 . 43 587 206,684 122.458 22 699 8,687 (114) 2.007 CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 December 2017 2017 US$ 000 2016 USS '000 (6,695) 2,838 3,063 5.264 4.400 (536) (60) (2,055) 318 (2.942) 12,369 102,176 (25,648) 776 OPERATING ACTIVITIES Net (loss) /income before taxation Adjustments for Depreciation Provision for impairment - net Gain on sale of premises and equipment Share of (gain) / loss from investment in joint venture Gain on sale of investments Operating profit before changes in operating assets and liabilities Net changes in operating assets and liabilities: Balances with central banks in mandatory reserves Receivables Mudaraba financing jara Muntahia Bittamleek Musharaka jara income receivable Other assets Other liabilities Due to banks and other financial institutions Current accounts Equity of investment accountholders Taxation paid Net cash (used in) / from operating activities INVESTING ACTIVITIES Purchase of investments Investments sold / matured Net investment in merger/ acquistion Investment in a joint venture Purchase of premises and equipment Sale of premises and equipment Net cash from (used in) investing activities 14,158 (23,403) (13,347) 1,720 35,999 (6,387) 1329 (124,045) (388) (36,742) (70,066) (42.168) (220) (11356) (46,803) (6.940) (12.778) 6.527 (2.127 19.946 200,269 (635) 46,018 (235,775) 265,675 (1.538) (156,425) 98,198 23,481 (14 589) (3.024) (6,612) 1,445 23,195 (52.289) 10.555 9234 19.789 FINANCING ACTIVITIES Subordinated debts Medium term financing Net cash from financing activities Foreign currency translation adjustments INCREASE IN CASH AND CASH EQUIVALENTS Cash and cash equivalents at 1 January CASH AND CASH EQUIVALENTS AT 31 DECEMBER (note 28) 23.756 25,175 48,931 159 42,819 (3.616) 2,626 317,153 319,779 274334 317,153 CONSOLIDATED STATEMENT OF CHANGES IN OFF-BALANCE SHEET EQUITY OF INVESTMENT ACCOUNTHOLDERS For the year ended 31 December 2017 Balance at 1 January 2017 US$ '000 66,585 9,405 75,990 Net Gross deposits income US$ '000 US$ '000 8,038 1,491 189 8,2271,491 Mudarib's / agency fee US$ '000 (105) Balance at 31 December 2017 US$ '000 76,009 9,594 85,603 Receivables Investments (105) Net Balance at 1 January 2016 USS '000 94,677 9,462 104,139 Gross income US$ '000 1,810 withdrawals US$ '000 (29,784) (57) (29,841) Mudarib's / agency fee USS '000 (118) Balance at 31 December 2016 USS '000 66,585 9,405 75,990 Receivables Investments 1,810 (118) STATEMENT OF FINANCIAL POSITION As at 31 December 2017 2016 Note BD millions US$ millions BD millions USS millions 107.04 419.92 284.68 1,116.82 462.79 174.01 Assets Cash and balances at central banks Treasury bills Placements with banks and other financial institutions Trading securities Loans and advances Investment securities Investment in associates Interest receivable and other assets Property and equipment Total assets 1,226.85 1,067.30 51.58 41.79 13.05 3,101.54 3,262.90 2,838.56 137.18 111.15 34.71 8,248.79 102.99 486.80 160.90 0.35 1,031.93 1,092 92 50.08 38. 71 12 42 2,97710 273.92 294,69 427.93 0.93 2744,48 2,906.71 133.18 1 02.96 33 03 7,917.83 Liabilities Due to banks and other financial institutions Borrowings under repurchase agreements Customer deposits Interest payable and other liabilities Total liabilities 384.01 67.83 2,165.21 36.55 2.653.60 1,021.30 180.40 5,758.55 97.21 7,057.46 373.81 64.28 2038.35 35.96 2,562.40 994.19 170.96 5,554.12 95 54 6.814.91 Equity Share capital Shares under employee share incentive scheme Share premium Statutory reserve General reserve Other reserves and retained earnings Total equity Total liabilities and equity 127.54 (167) 4.02 63.77 32.40 221.88 447.94 3,101.54 339.20 (4.44) 10.69 169.60 86.17 590.11 1,191.33 8,248.79 115.95 (1.64) 2.53 57.98 32.40 207.48 414,70 2.977.10 308.38 (4.36) 6.73 154.19 86.17 551.81 1.102.92 791783 The board of directors approved the financial statements consisting of pages 52 to 83 on 29 January 2018 and signed on its behalf by: National Bank of Bahrain B.S.C 2017 Annual Report 53 STATEMENT OF PROFIT OR LOSS For the year ended 31 December 2017 2016 Note BD millions US millions BD millions USS millions Interest income Interest expense Net interest income Other income Total operating income 102.09 (29.02) 73.07 31.40 104.47 271.52 (77.19) 194.33 83.51 277.84 88.14 (22.15) 65.99 30.88 96.87 Staff expenses Other expenses Total operating expenses Profit before provisions Impairment provisions on loans and advances Impairment provisions on investments Profit for the year Basic and diluted earnings per share 21.30 11.69 32.99 71.48 (10.40) (0.07) 61.01 48.4 fils 56.65 31.09 87.74 190.10 (27.66) (0.19) 162.25 13 cents 23.90 10.19 34.09 62.78 (2.08) (2.46) 58.24 46.3 fils 234.41 (58.90) 175.51 82.14 257.65 63,57 27.13 90.70 166.95 (5.53) (6.54) 154.88 12 cents 3 8 STATEMENT OF COMPREHENSIVE INCOME For the year ended 31 December 2017 BD millions 2016 BD millions US millions US$ millions 61.01 162.25 58.24 154.88 (0.01) (0.03) Profit for the year Other comprehensive Income: Items that are or may be reclassified subsequently to profit or loss: Foreign currency translation movement Fair value reserve (available for sale securities): Net change in fair value Net amount transferred to profit or loss Share of other comprehensive income of associates Total other comprehensive income for the year Total comprehensive income for the year 111 19.53 (1.89) 51.95 (5.03) (0.29) 0.03 0.85 61.86 2.95 (0.77) 0.08 2.26 164.51 1763 75.87 46.89 STATEMENT OF CHANGES IN EQUITY For the year ended 31 December 2017 Shares under employee Donation and charity Statutory General value Share Note capital incentive S hare scheme premium Retained earnings Total BD millions in B millions millions Balance at January 2017 (184) 25 570032.40 25 25 14.66 167.56 414.70 102.92 2016 appropriations: Cash dividend at 25% . (28.65) (28.65) (76.19) Bonus shares issued 10% 11.59 (0.14) Transfer to donations and charity 2.91 2.91) - Transfer to general reserve - (17.38) Transfer to statutory reserve Balance after 2016 appropriations 127.54 (178) 253 6 3.77 32.40 17.57 118.76 386.05 1,026.73 Employee shares allocated Comprehensive income for the year Profit for the year 6101 6101162.25 Other comprehensive income - 0.05 . - 0.85 2.26 Total comprehensive income for the year - - - - 0.85 6101 61.86 164.50 Utilisation of donation and charity - (L57) - (157) (4.17 Balance at 31 December 2017 20-22 127.54 (167) 5377 240 26.11 16.00 179.77 447.94 1191.33 The appropriations for the year 2017 will be submitted to the shareholders at the annual meeting. These appropriations include BD 31,89 million for cash dividend at 25% (2016: 25%), BO 3.05 million for donations and contributions and a transfer of BD 19.13 million from retained earnings to general reserve. The Board of Directors has also proposed a one for ten bonus issue through utilization of BD 12.75 million from general reserve and the transfer of BD 6.38 million from General Reserve to Statutory Reserve For the year ended 31 December 2016 Shares under employee share incentive scheme Share premium Statutory reserve General Fair value reserve reserve Donation and charity reserve Total Retained 3D earnings milions USS millions (1.72) 121 SLTS 32.40 7.62 3.40 154.69 364.76 970.11 - 25.98) (69.10) (0.15) (10.54) - - - (25.98) 0.15 2.76) (16.77) 2.76 Share in B millions Note capital Balance at 1 January 2016 105.41 2015 appropriations: Cash dividend at 25% Bonus shares issued 10% 10.54 Transfer to donations and charity Transfer to general reserve Transfer to statutory reserve Balance after 2015 appropriations 115.95 Employee shares allocated - Comprehensive income for the year Profit for the year - Other comprehensive income Total comprehensive income for the year . Utilisation of donation and charity reserve Balance at 31 December 2016 20-22115.95 - (187) 0.23 - 121 132 0.98 S27 5798 - 15.81 527) 3 2.40 - - 762 - 16.16 - 10933 - 338 78 1.55 901.01 4.13 - - - - . . - . . - 1754 7.64 58.24 (0.01) 58.23 58.24 1763 75.87 154.88 46.89 201.77 . . (1.50) 4,66 (150) 414 20 (3.99) 0292 (184) 253 579832.40 25.26 16756 STATEMENT OF CASH FLOW For the year ended 31 December 2017 2016 Note BD millions US millions BD millions USS millions 61.01 162.25 58.24 154.88 4.39 5.53 1.76 10.40 0.07 (3.75) 69,49 4,68 27.66 0.19 (9.97) 184.81 1.65 2.08 2.46 (2.99) 61.44 6.54 (7.95) 16339 Cash flows from operating activities Profit for the year Adjustments to reconcile net income to net cash from operating activities Depreciation Impairment provisions on loans and advances Impairment provisions on investments Share of profit of associates Profit for the year after adiustments Changes in operating assets and liabilities Balances with central banks (mandatory cash reserves) Treasury bills Placements with banks and other financial institutions Trading securities Loans and advances Investment securities Interest receivable and other assets Due to banks and other financial institutions Borrowings under repurchase agreements Customer deposits Interest payable and other liabilities Net cash from used in) operating activities Cash flows from investing activities Investment in associates Dividend received from associates Purchase of property and equipment, net Net cash used in investing activities 1.10 18.64 16.31 0.35 (205.32) 24.50 0.30 10.19 3.54 76.87 0.59 16.56 2.93 49.57 43.38 0.93 (5.46.06) 65.16 0.80 27.10 9.41 204.44 1.57 44.04 3.36 (145.38) (15.42) 5.69 17.71 5.98 0.88 102.32 (5.37) (158.67) 1.74 (125.72) 8.94 (386.65) (41.01) 15.13 4710 15.89 234 272.13 (14.28) (421.99) 4.63 (334 39) 126 60) 173 2.29 (2.39) (0.10) 6.09 (6.36) (0.27) (10.00) 0.65 (1.56) (10.91) (4.15) 29.02) (28.57) (1.57 Cash flows from financing activities Dividends paid Donations and charities paid Net cash used in financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at 1 January Cash and cash equivalents at 31 December (30.14) (75.98) (4.18) (80.16) (36.39) 555.47 519.08 (25.66) (1.50) (2716) (163.79) 372.65 208.86 (68.24) (3.99) (72.23) (435 63) 99110 555.47 15 15 (13.68) 208.86 195.18