ICB FINANCIAL GROUP HOLDINGS AG
Incorporated in Switzerland
Registration Number CH-130.3.009.158-0
INTERIM FINANCIAL STATEMENTS
FOR THE 6 MONTH
PERIOD ENDED 30 JUNE 2009
ICB Financial Group Holdings AG
(Incorporated in Switzerland)
Interim Financial Statements
For The 6 Month Period Ended 30 June 2009
Contents Page(s)
Interim Results Summary 1
Financial Highlights 1
Chairman's Statement 2-3
Consolidated Income Statement 4
Consolidated Balance Sheet 5
Consolidated Cash Flow Statement 6 - 7
Consolidated Statement of Changes in Equity 8 - 9
Notes to the Interim Financial Statements 10 - 13
ICB Financial Group Holdings AG
Interim Results For The 6 Month
Period Ended 30 June 2009
Interim Results Summary
For the 6 months ended June, 2009, ICBFGH recorded a consolidated
loss of USD 3.8 million, compared to a profit of USD 82.1 million in the
corresponding period last year. The previous year's result was exceptionally
high as it included a one-off gain on sale of its investment in Sorak
Financial Holdings Pte. Ltd. of USD 80.4 million.
The results for the current half -year were impacted by higher loan
impairment charges at the Group's subsidiary at Bangladesh. This is largely
due to prudent loan impairment policy adapted by the group in view of the
uncertain recovery prospects of non-performing loans. However, other operating
subsidiaries namely the bigger operations of the Group like ICB Ghana, Albania
and ICB Indonesia were profitable despite a challenging economic and business
environment during the first half of the year.
Financial Highlights
- The Group's total loans and advances grew by USD 4.4 million to
USD 592.5 million for the first 6 months of this year. Growth was slow as the
Group was cautious in its lending approach as the economic and business
conditions were generally very difficult during the first half of 2009 due to
the continuing impact of the global financial crisis.
- Deposits grew by USD 24.9 million to USD 802.5 million for the
first six months of this year. The large increase was mainly from ICB
Bangladesh where a deposit mobilization campaign during the first half was
very successful. In addition in USD terms, ICB Indonesia ( Bank Bumiputera)
also contributed to increase in deposits but this was mainly due to stronger
Rupiah against the USD.
- The net interest income of the Group of USD 22.9 million was down
USD 3.1 million compared to the corresponding period last year. The net
interest income was affected by higher cost of funds paid to depositors during
the first half of the year due to tight liquidity conditions in most of the
countries where the group operates.
- Operating expenses were within control and increased very
marginally by USD 0.9 million to USD 27.2 million due to stringent cost
management initiatives.
- Impairment charges for the half year were USD 7.1 million, an
increase of USD 6.3 million mainly from ICB Bangladesh as the Group took a
prudent approach to increase impairment charges in view of the uncertain
recovery prospects.
ICB FINANCIAL GROUP HOLDINGS AG
Chairman's Statement 30 June 2009
In my report to shareholders at the end of 2008, I made reference
to the testing economic climate being experienced throughout most of the
world. The affect of this has been reflected in trading for the Group in the
first half of the year. We have seen a contraction in customer demand,
particularly for loan products, and with most of the countries in which the
Group operates experiencing some contraction of economies there has been the
inevitable increase in impairment charges.
The Group's results for the 6 month period ended June 2009 reflect
a loss for the period amounting to USD3.8 million. This contrasts with a
recorded profit of USD82.1 million for the corresponding period in 2008,
although the June 2008 figure was exceptional as it included a one-off gain on
the disposal of the Group's investment in Sorak Holdings Pte. Ltd. of USD 80.4
million.
Within the results for the first half of the current year,
additional loan loss provisions have been raised within ICB Islamic Bank of
Bangladesh, an investment in which the Group holds a 50.1% stake. This results
from an in depth review by ICB Country and Global Management of the current
portfolio and which has identified that recovery prospects in a number of
advances had become doubtful. The impairment charges resulting amounted to
USD5.8 million and represent 82% of the total Group charge of USD 7.1 million
for the half year.
Net interest income for the half year at USD 22.9 million was 11%
lower than the June 2008 result of USD 26.0 million. This reflects the
reduction in customer demand mentioned above, coupled with strong pressure on
margins, particularly in Indonesia (Bank Bumiputera). Commission earnings are
also illustrative of the reduction in demand, the contribution here of USD 4.6
million representing 90% of the result achieved in June 2008 (USD 5.1
million). Customer loans now total USD 592.5 million, only marginally ahead of
the December 2008 result of USD 588.0 million. The picture with customer
deposits is very similar. Growth here has been a very modest 3.2% to USD 802.5
million (December 2008: USD 777.6 million).
In contrast to the June 2008 result, operating expenses have been
well contained, increasing by only 3.5% to USD 27.1 million (June 2008: USD
26.2 million ). However, with the reduction in income, coupled with the fact
that two investments are still in the `start-up' phase, the Group's
Cost/Income ratio has weakened to 85.3%.
Viewing the results on the geographic basis, a sound net profit
contribution of USD 3.1 million emerged from Africa. Europe contributed a further
USD 0.6 million. However, these results were more than offset by the
disappointing performance from Asia which sustained a loss amounting to USD
4.8 million, with the whole of this being attributable to the investment in
Bangladesh.
The Group continues to expand its operations and range of services
in line with strategy. A banking licence has been secured for the Zambian
market with operations there scheduled to commence in December of this year.
The recent investments in Laos and Malawi are progressing satisfactorily, both
having reached that important milestone of profitable trading. Plans to expand
the scope of the current retail banking capability across the Group have moved
to the implementation phase. This will ensure that the network of banks is in
a position to respond to the wider and changing financial needs of customers,
and is forecast to deliver a significant increase to net income flows.
The Group's progress and development continues to achieve industry
recognition, with ICB Albania and ICB Guinea receiving Global Finance Awards
for 2009.
It is with much sadness that I inform shareholders of the death in
May of Mr. Paul Bridges, a non Executive Director of the Group. Mr. Bridges
joined the Board in early 2007 and was Chairman of the Group's Audit and Risk
Management Committee. He made a significant contribution to the progress and
development of the Group in the past two years and is going to be greatly
missed. Mr. Lim Teong Liat, a non Executive Director, has been appointed to
succeed Mr. Bridges as Chairman of the Audit and Risk Management Committee.
I should also advise shareholders that Mr. Prem Kumar, Group CEO,
left the company in July. However, I am pleased to say that good progress has
been made towards the identification of a successor and the Board anticipates
being in a position to make a further announcement in this connection shortly.
Trading conditions in the immediate period ahead will remain
challenging. However, the Board anticipates benefits from the change
programmes will add strength to Group performance, although it will be 2010
before these start to deliver sound flows of incremental income.
Michael R Hanlon
Chairman
ICB Financial Group Holdings AG
(Incorporated in Switzerland)
Consolidated Income Statement
For The 6 Month Period Ended 30 June 2009
6 months 6 months
ended ended
Note 30-Jun-09 30-Jun-08
USD'000 USD'000
Interest income 50,182 50,634
Interest expense (27,257) (24,603)
Net interest income 22,925 26,031
Net fee and commission income 4,638 5,123
Foreign currency gain/(loss) 1,418 (1,843)
Gains less losses from financial investments 1,583 678
Gain on disposal of associate - 80,379
Other operating income 1,299 2,290
Impairment charges for loans and advances to (7,107) (857)
customers
Fair value change in foreclosed properties (711) (1,303)
Operating expenses (27,177) (26,264)
Operating (loss)/profit (3,132) 84,234
Share of results of associates 62 37
(Loss)/profit before taxation (3,070) 84,271
Tax expense (807) (2,122)
(Loss)/profit for the period (3,877) 82,149
Attributable to:
- Shareholders of the Company (1,482) 80,189
- Minority interests (2,395) 1,960
(3,877) 82,149
Earnings per share attributable to shareholders
of the Company
- Basic and diluted (Expressed in USD per share) 3 (0.01) 0.45
The accompanying notes form an integral part of the financial statements.
ICB Financial Group Holdings AG
(Incorporated in Switzerland)
Consolidated Balance Sheet
As At 30 June 2009
30-Jun-09 31-Dec-08
Note USD'000 USD'000
ASSETS
Cash and bank balances 243,366 276,738
Loans and advances to customers 4 592,544 588,058
Financial investments 167,928 122,539
Foreclosed properties 18,109 17,728
Investment in associates 1,766 1,846
Goodwill and other intangible assets 61,732 55,036
Prepaid lease payments 92 107
Property and equipment 19,087 17,083
Other assets 35,035 36,443
Deferred tax assets 4,806 4,537
Total Assets 1,144,465 1,120,115
LIABILITIES
Deposits from other banks 128,482 133,470
Deposits from customers 5 802,593 777,652
Other liabilities 57,478 56,442
Tax liabilities 1,842 3,046
Deferred tax liabilities 544 303
Total Liabilities 990,939 970,913
EQUITY
Paid up share capital 6 145,960 145,960
Share premium 782 782
Retained earnings 40,445 45,012
Other reserves 7,040 (2,655)
Equity attributable to shareholders of the 194,227 189,099
Company
Minority interests (40,701) (39,897)
Total Equity 153,526 149,202
Total Equity and Liability 1,144,465 1,120,115
The accompanying notes form an integral part of the financial statements.
ICB Financial Group Holdings AG
(Incorporated in Switzerland)
Consolidated Cash Flow Statement
For The 6 Month Period Ended 30 June 2009
6 months 6 months
ended ended
30-Jun-09 30-Jun-08
USD'000 USD'000
CASH FLOWS FROM OPERATING ACTIVITIES
(Loss)/profit before taxation (3,070) 84,271
Adjustment for :
Impairment charges for loans and advances to 7,107 857
customers
Amortisation of prepaid lease rental 16 20
Amortisation of intangible assets 666 220
Depreciation of property and equipment 1,833 1,219
Fair value change in foreclosed properties 711 1,303
Gain on disposal of associate - (80,379)
Share of results of associates (62) (37)
Gain on foreign exchange translation (1,418) (761)
Operating profit before working capital changes 5,783 6,713
(Decrease)/increase in operating assets 17,142 (48,891)
(Decrease)/increase in operating liabilities (3,281) 33,764
Cash generated from/(used in) operations 19,644 (8,414)
Tax paid (1,574) (1,857)
Net cash from/(used in) operating activities 18,070 (10,271)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of associate - 156,928
Acquisition of subsidiary, net of cash acquired - (38,525)
Purchase of property and equipment (4,179) (1,653)
Purchase of intangible assets (7,282) (202)
Net (increase)/decrease in financial investments (54,220) (28,866)
Net cash (used in)/from investing activities (65,681) 87,682
ICB Financial Group Holdings AG
(Incorporated in Switzerland)
Consolidated Cash Flow Statement (Cont'd.)
For The 6 Month Period Ended 30 June 2009
6 months 6 months
ended ended
30-Jun-09 30-Jun-08
USD'000 USD'000
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid to minority interest - (183)
Net cash used in financing activities - (183)
Net (decrease)/increase in cash and cash equivalents (47,611) 77,228
Cash and cash equivalents at the beginning of the 228,644 194,224
period
Effect of exchange rate changes on cash and cash 14,976 2,391
equivalents
Cash and cash equivalents at the end of the period 196,009 273,843
Cash and Cash Equivalents
For the purpose of the cash flow statement, cash and cash equivalents comprise
of cash and bank balances, items in the course of collection less mandatory
reserve deposits with central banks.
The accompanying notes form an integral part of the financial statement.
ICB Financial Group Holdings AG
(Incorporated in Switzerland)
Consolidated Statement Of Changes in Equity
For The 6 Month Period Ended 30 June 2009
< ---- Attributable to Shareholders of the Company --- >
Share Share Other Retained Minority
Capital Premium Reserves Earnings Interests Total
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
At 1 January 2008 145,960 782 (2,341) 34,903 19,478 198,782
Currency translation differences arising
from
translation to presentation currency - - 6,485 - 434 6,919
Gains in fair value on available-for-sale - - (826) - (406) (1,232)
securities
Transfer of reserve to retained earnings
arising
from disposal of associate - - 11,173 (11,173) - -
Net income and expenses recognised
directly in
Equity - - 16,832 (11,173) 28 5,687
Profit for the period - - - 80,189 1,960 82,149
Total recognised income and expense for
the
Period - - 16,832 69,016 1,988 87,836
Minority interest from business - - - - (54,586) (54,586)
combination
Dividend paid to minority interest - - - - (183) (183)
At 30 June 2008 145,960 782 14,491 103,919 (33,303) 231,849
ICB Financial Group Holdings AG
(Incorporated in Switzerland)
Consolidated Statement Of Changes in Equity (Cont'd.)
For The 6 Month Period Ended 30 June 2009
< ---- Attributable to Shareholders of the Company --- >
Share Share Other Retained Minority
Capital Premium Reserves Earnings Interests Total
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
At 1 January 2009 145,960 782 (2,655) 45,012 (39,897) 149,202
Currency translation differences arising
from
translation to presentation currency - - 5,361 978 6,339
Gains in fair value on available-for-sale - - 1,249 613 1,862
securities
Net income and expenses recognised
directly in
Equity - - 6,599 - 1,591 8,190
Capitalization of retained earnings of - - 3,085 (3,085) - -
subsidiary
Loss for the period - - - (1,482) (2,395) (3,877)
Total recognised income and expense for
the
Period - - 9,684 (4,567) (804) 4,313
At 30 June 2009 145,960 782 7,040 40,445 (40,701) 153,526
The accompanying notes form an integral part of the financial statements.
ICB Financial Group Holdings AG
(Incorporated in Switzerland)
Notes To The Interim Financial Statements
1. Basis of Preparation
The interim financial statements of the Group are unaudited and have been
prepared in accordance with International Financial Reporting Standards
("IFRS").
The preparation of financial statements in conformity with IFRS requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities, revenues and expenses. Due to the inherent
uncertainty in making those estimates, actual results reported in future
periods could differ from such estimates.
The interim financial statements should be read in conjunction with the
audited financial statements for the year ended 31 December 2008.
The interim financial statements were approved by the board on 11 September
2009.
2. Basis of Accounting
The interim financial statements of the Group have been prepared under the
historical cost convention as modified by the revaluation of
available-for-sale financial assets, financial assets and financial
liabilities held at fair value through profit or loss. The accounting policies
and methods of computation adopted are consistent with those followed in the
preparation of the Group's audited financial statements for the year ended 31
December 2008.
3. Earnings per share
Basic earnings per share is calculated by dividing the net profit attributable
to shareholders by the weighted average number of shares in issue, in the 6
month period ended 30 June 2009 of 180,000,000 (2008: 180,000,000).
There are no options or other instruments in issue that would dilute the
earnings per share.
4. Loans and Advances to Customers
As at As at
30-Jun-09 31-Dec-08
USD'000 USD'000
Gross loans and advances 721,752 713,674
Less: Allowance for losses on loans and advances (129,208) (125,616)
592,544 588,058
5. Deposits
As at As at
30-Jun-09 31-Dec-08
USD'000 USD'000
Current accounts 111,654 103,771
Saving accounts 128,232 106,367
Time deposits 547,915 522,583
Others 14,792 44,931
802,593 777,652
6. Paid-up Share Capital
No of Shares
As at As at As at As at
30-Jun-09 31-Dec-08 30-Jun-09 31-Dec-08
000 000 USD'000 USD'000
As at 1 January/30 June
Share of CHF1 each 180,000 180,000 145,960 145,960
7. Subsidiaries & Associates
Details of subsidiaries & Associates are as follows:
% effective
interest held
Country of As at As at Principal
Incorporation 30-Jun-09 31-Dec-08 Activities
Name of subsidiaries
International
Commercial Commercial
Bank (The Gambia) Ltd. Gambia 99.10 99.10 Bank
International
Commercial Commercial
Bank S. A. Guinea 97.00 97.00 Bank
International
Commercial Commercial
Bank (Sierra Leone) Sierra Leone 99.98 99.98 Bank
Ltd.
International
Commercial Commercial
Bank SH. A Albania 100.00 100.00 Bank
ICB-Banco Internacional Commercial
De Comércio, S.A.R.L Mozambique 99.99 99.99 Bank
International
Commercial Commercial
Bank Limited Ghana 100.00 100.00 Bank
PT Bank Bumiputra Commercial
Indonesia Tbk Indonesia 67.07 67.07 Bank
International
Commercial Commercial
Bank (Djibouti) S.A. Djibouti 99.90 99.90 Bank
ICB Global Management Providing
Sdn. Bhd. Malaysia 100.00 100.00 Technical &
Management
Services
ICB Islamic Bank Ltd Bangladesh 50.10 50.10 Commercial
Bank
International Laos 100.00 100.00 Commercial
Commercial Bank Lao Ltd Bank
International Malawi 100.00 100.00 Commercial
Commercial Bank Ltd - Bank
Malawi
7. Subsidiaries & Associates (Cont'd.)
% effective
interest held
Country of As at As at Principal
Incorporation 30-Jun-09 31-Dec-08 Activities
Name of associates
International
Commercial
Bank (Tanzania) Commercial
Limited Tanzania 20.00 20.00 Bank
International
Commercial Commercial
Bank Senegal S.A. Senegal 20.00 20.00 Bank
International
Commercial Commercial
Bank Zambia Limited Zambia 100% - Bank
The Company’s AIM nominated adviser is RFC Corporate Finance Ltd. Contact Stephen Allen or Trinity McIntyre on +61894802500.