To view the PDF file, sign up for a MySharenet subscription.

DEVELOPMENT BANK OF SOUTHERN AFRICA - Reviewed interim results for the six months ended 30 September 2013

Release Date: 03/12/2013 17:38
Code(s): DV21 DV23 DV22 DVF16 DVC001 DVC002 DVC003     PDF:  
Wrap Text
Reviewed interim results for the six months ended 30 September 2013

The Development Bank of Southern Africa

Reviewed interim results for the six months ended 30 September 2013



Preparation of this report

The following individuals were responsible for the preparation of the

reviewed interim results:

Boitumelo Mosako CA (SA), General Manager: Finance

Kameshni Naidoo CA (SA), Chief Financial Officer



Introduction



The Development Bank is a leading Development Finance Institution (DFI) in

Africa, playing the roles of Financier, Advisor, Partner, Implementer and

Integrator.   The Bank maximises its contribution to sustainable development

in the region by mobilising financial, knowledge and human resources to

support Government and other development role-players in improving the

quality of life of people in the region through funding infrastructure

projects; accelerating the sustainable reduction of poverty and inequity; and

promoting broad-based economic growth and regional economic integration.”



Key Highlights

   - Total asset growth of 9.5% from 31 March 2013

   - Development bonds and loan book net growth of 14% from 31 March 2013

   - Profit for the interim period R629m

   - Cash flow from operations R1.035bn

   - Capital Injection received from National Treasury of R2.4bn





Six months overview



The DBSA generated a profit of R629 million, a significant turnaround from

the loss position reported as at 31 March 2013. In addition, the DBSA

completed the organization review process that focused on improving the

impact and effectiveness of the Bank. The DBSA continues to implement its new

strategy and had a net 14% growth in development bonds and loan book assets

since 31 March 2013. Total assets grew by 9.5% from R54bn to R59 billion and

impairment charge for the interim period amounting R279 million (2012:

R1.454bn) is significantly lower when compared to the prior comparative

interim period. The National Treasury in support of the new strategy and

growth prospects provided a capital injection of R2.4bn during the period

under review, being the first tranche of the R7.9bn capital injection

commitment.





Outlook



Whilst the financial position of the Bank remains strong, the DBSA expects

strong growth in development assets to continue and should this be achieved,

this will vastly improve the Bank’s developmental reach as it continues to

play a leading role in taking forward national and continental development

objectives.

Basis of preparation



Accounting policies adopted and methods of computation are consistent with

those applied to the annual financial statements at 31 March 2013. The

condensed interim financial statements are prepared on the historical cost

basis except that the following assets and liabilities are stated at their

fair value: derivative financial instruments, financial instruments at fair

value through profit and loss, available-for-sale financial assets, land and

buildings, post-retirement medical benefit and funeral benefit obligations

measured at actuarial values. The interim financial statements are in

conformity with IAS 34, Interim Financial Reporting. The preparation of

interim financial statement requires management to make judgments, estimates

and assumptions that affect the application of accounting policies and

reported amounts of assets and liabilities, income and expenses. Actual

results may differ from these estimates.





Independent Review of results by Auditors



The condensed interim financial results of DBSA for the six months ended 30

September 2013 have been reviewed by the Bank’s auditor, Nkonki Inc. In their

review report, which is available for inspection at the Company's Registered

Office, Nkonki Inc stated that their review was conducted in accordance with

International Standard on Review Engagements 2410, Review of Interim

Information Performed by the Independent Auditor of the Entity, and have

expressed an unmodified conclusion on the condensed interim financial

statements.



Condensed income statement



                                                Six months        Six months

                                                     ended             ended

                                              30 Sept 2013      30 Sept 2012

                                                  Reviewed          Reviewed

                                                     R'000             R'000



Net interest income                               913   713         817 333

Other income/ (loss)                              362   814         (59 866)

Grants                                            (13   864)           (612)

Net impairment on financial assets               (278   723)     (1 453 712)

Personnel expenses                               (260   914)       (269 372)

Other expenses                                    (84   151)        (76 040)

Depreciation & amortisation                        (9   341)         (9 930)

Grant to Development Fund                                   -       (96 000)



Profit/ (loss) for the period                      629 534        (1 148 199)

Condensed statement of comprehensive income



                                                Six months     Six months

                                                     ended          ended

                                              30 Sept 2013   30 Sept 2012

                                                  Reviewed       Reviewed

                                                     R'000          R'000



Profit/ (Loss) for the period                     629 534     (1 148 199)

Other comprehensive loss                             (222)        (4 772)

Total comprehensive income                        629 312     (1 152 971)

Condensed statement of financial position

                                                     As at          As at

                                              30 September       31 March

                                                      2013           2013

                                                  Reviewed        Audited

                                                     R'000          R'000

Assets



Cash and cash equivalents                        1 220   865    1 252 142

Other receivables                                  153   935      123 443

Investment securities                            2 270   553    3 435 922

Derivative assets held for risk management       1 346   395    1 422 719

Post retirement medical benefits investment         63   893       64 848

Home ownership scheme loans                          8   329        8 932

Equity investments                               4 844   058    4 455 721

Development Bonds                                  772   875            -

Development Loans                               47 847   927   42 619 769

Property, plant and equipment                      465   912      470 298

Intangible assets                                   81   544       86 499



Total assets                                    59 076 286     53 940 293





Liabilities

Other payables                                     704 181        771   651

Provisions                                          94 904        151   009

Liability for funeral benefits                       4 300          4   300

Liability for post retirement medical benefits     148 421        148   421

Debt securities                                 26 584 821     25 790   079

Medium to long term funding lines of credit     11 728 989     10 081   507

Funding under repurchase agreements                      -        201   752

Derivative liabilities held for risk management     75 633         85   849

Total liabilities                               39 341 249     37 234   568



Equity

Share capital                                      200 000        200 000

Retained earnings                               11 282 094     11 031 631

Permanent government funding                     6 192 344      3 792 344

Revaluation reserve on land & buildings            253 487        253 487

Hedging reserve                                     49 856         40 617

Reserve for general loan risks                   1 750 797      1 371 726

Fair value reserve                                   6 459         15 920



Total equity                                   19 735 037      16 705 725





Total equity and liabilities                    59 076 286     53 940 293

Condensed statement of changes in equity

                                                    Six months      Six months

                                                         ended           ended

                                                       30 Sept         30 Sept

                                                          2013            2012

                                                      Reviewed        Reviewed

                                                         R'000           R'000

Balance at beginning of the period                  16 705 725      17 527 572

National Treasury capital injection                  2 400 000               -

Profit/(loss)and total comprehensive income

for the period                                          629 312     (1 152 971)

Total equity at end of the period                    19 735 037     16 374 601









Condensed statement of cash flow



                                                    Six months      Six months

                                                         ended           ended

                                                       30 Sept         30 Sept

                                                          2013            2012

                                                      Reviewed        Reviewed

                                                         R'000           R'000



Cash flows generated from operating activities         1 035 064         29 954

Cash flows used in development activities             (5 828 290)      (923 759)

Cash flows generated from/(used in) investing

activities                                               635 259      (2 266 022)

Cash flows generated from financing activities          4 252 896      1 631 230

Effect of exchange rate movement on cash balances       (126 206)        (71 985)

Net increase/decrease) in cash and cash

equivalents                                              (31 277)      (1 600 582)



Cash and cash equivalents

at the beginning of the period                           1 252 142      2 113 154



Cash and cash equivalents

at the end of the period                                 1 220 865        512 572


Date: 03/12/2013 05:38:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story