Post on 08-Jul-2020
FINANCIAL INVESTMENT BANK Member of Bank Deposits Security Fund
(Winner of International Quality Certificate ISO 9001:2008)
Annual Report 2012
4
FINANCIAL INVESTMENT BANK
Our Mission
Is the provision of investment, banking and financial advisory services with high quality, confidentiality and reasonable cost. This is all with the view of enhancing customer, staff and shareholders satisfaction within the approved legal framework.
Annual Report 2012
5
Our vission
To be a comprehensive investment provider, locally and regionally, through the provision of financial services, investment products, banking and advisory services to investors in public and private sectors, with high quality and at competitive charges in accordance with set regulations and in compliance with sharia rules and principles.
6
FINANCIAL INVESTMENT BANK
Contents
Financial Investment Bank (FIBA).......................................................... 07 Correspondent Banks..........................................................................10
Shareholders.....................................................................................11 Board of Directors..............................................................................12
Shari’a Supervisory Board ....................................................................13
Executive Management........................................................................14 Board of Directors Report.....................................................................15
Bank Financial Performance..................................................................20
Shari’a Supervisory Board Report............................................................23 External Auditor Report........................................................................24
Financial Statements...........................................................................25
Annual Report 2012
7
Financial Investment Bank
Financial Investment Bank (FIBA) is a leading bank in the area of investment products and
activities of Stock Exchange markets and deals with the Public, Institutions, companies
and Business names.
Incorporation & Establishment: Establishment: October, 1997Commencement of operations: July, 1998Listing at Khartoum Stock Exchange: Feb, 1999
Shareholders Capital: Authorized Capital : SDG 125,000,000 (Hundred and twenty five Million Sudanese Pounds)Paid up Capital : SDG 110,000,000 (Hundred and ten million Sudanese Pounds)Share par value : SDG 1.00 (One Sudanese Pound)
Address :Financial Investment Bank,El Manar Tower, El Sayed Abdul rahman Street,P.O. Box : 12046 Khartoum – Sudan Tel. : + 249 183 730300Fax : + 249 183 730304 SWIFT : FITBSDKHWebsite : www.fibaonline.com Email : info@fibaonline.com
8
FINANCIAL INVESTMENT BANK
Our Objectives
The main objectives of the Financial Investment Bank are the following:
1. Enhancement of Khartoum Stock Exchange activities and dealings in Stocks & other
tradeable securities.
2. Augmentation of financial resources of public and private sector companies through
promotion & acceleration of public offerings and issuing of financing securities.
3. Arrangement of finance to help new investment opportunities for individual and
corporate investors through establishment of investment portfolios and mutual funds
in different economic activities.
4. Provision of restructuring services for public and private sector companies and state–
owned corporations via acquisition, merger and privatization.
5 Provision of corporate banking services to highly selected corporations and
companies.
6. Dissemination of investment values and saving awareness among citizens.
7. Cooperation with concerned parties to improve the general investment environment in
Sudan and encourage inflow of foreign capital.
Annual Report 2012
9
Our Products
The Bank’s products are as follows:
1. Mutual Funds & Investment portfolios
2. Trading in securities.
3. Public offerings and private placements.
4. Underwriting public offerings for new as well as going concern companies.
5. Financial engineering services to private and public sector companies.
6. Corporate Banking services.
7. Restructuring and privatization services.
8. Financial advisory and consulting (FIBA Consulting).
10
FINANCIAL INVESTMENT BANK
Correspondent Banks
The Arab Investment Company BahrainP.O.Box: 5559 ManamaTel.: +973 175 88888Fax: +973 175 88885SWIFT: TAIQBHBM
The Housing Bank for Trade and FinanceP.O.Box: 7693 Amman(11118)Tel.: +962-6-5607315Fax: +962-6-5678121SWIFT: HBHOJOAX
National Commercial Bank SaudB.S.C .(C )Saudi Arabia P.O.Box: 3555 JeddahTel.: +966-2-6493333Fax: +966-2-6426637 SWIFT: NCBKSAJE
Alubaf Arab International BankBahrainTel.: 00973 17 517722Fax: 00973 17 540094SWIFT: ALUBBHBM
Abu Dhabi Islamic Bank UAE P.O.Box: 313Abu dhabi Tel.: +971-2-6100600 Fax: +971-2-6654340 SWIFT: ABDIAEAD
Intercontinental Arab BankFrance - ParisTel.: +33-153766262Fax: +33-142890959SWIFT: BIARFRPP
Qatar Islamic Bank QatarP.O.Box: 955 Doha Tel.: +974- 4409409 Fax: +974- 4412700 SWIFT: QISBQAQA
British Arab Commercial Bank LondonTel.: +44 20 7648 7777Fax: +44 20 7600 3318 SWIFT: BACMGB2L
Jordan Islamic Bank for Finance
And Investment Jordan P.O.Box: 926225 Amman (11190)Tel.: +962-6-5666325Fax: +962-6-5666326SWIFT: JIBAJOAM
AL Rajhi Bank Saudi ArabiaP.O.Box: 28 Ryad 11411
Tel.: +966 - 1- 2798312
Fax: +966-1- 2798327
SWIFT: RJHISARIXXX
Annual Report 2012
11
Shareholders
The Arab Investment Company KSA 20.79 %
Hosbico Company UAE 15.23%
Captain Elnour Zaroug Sudan 10.78%
Warm Seas Holding Company Sudan 10.23%
Warm Seas International Company Sudan 10.23%
Northern Hemisphere Company Liberia 9.99%
Central Bank of Sudan Sudan 8.82%
Tadhamon Islamic International Bank Yemen 5.73%
Sudanese French Bank Sudan 2.36%
Others 5.84%
12
FINANCIAL INVESTMENT BANK
Board of Directors
1. MR. Faraj. Mohamed.Sultan Chairman
2. MR. Mohamed Alfatih Zein Elabedien Deputy Chairman
3. Eng . Manar Eldien Alnour Abdalla Zaroug Member
4. Eng. Isam Eldien Alnour Abdalla .Zaroug Member 5. DR. Abdal Moniem Al Gousi Member
6. MR.Abdal EL Azeem Abdalla Ibrahim Elsiwaidan Member
7. MR Isam Eldien Abdalaal Khalid Member
8. MR.Abdul moniem Saeed Mohamed Ahmed Member
9. MR.Alhadi Salih Mohamed Member
Annual Report 2012
13
Sharia Supervisory Board
Professor Mohamed Sir El khatim Chairman
Professor Alsidieg Alamien Aldarier Member
Mr. Ibrahim Ahmed Alshiekh Mohamed Member
Auditor
Mubarak Alawad
Legal Advisor
DR. Ahmed Algasim Mustafa
Board Secretary
Mrs. Amira Elamin Mustafa
14
FINANCIAL INVESTMENT BANK
Executive Management
Dr. Taha Eltayeb Ahmed General Manager
Mr. Adil Abdelhamied Alhakiem
Mr. Alhadi Mohamed Ahmed Muhi Edien
Mr. Abdalla Hassan. Abubakr
Mr. Khidir Nour Aldeen Khidir
Dr. Fath Alrahman Ali M.Salih
Mr. Sidieg Hassab Al Rasoul Elshiekh
Mr. Abubakr Ali Alyas
Mr. Abdalla Omer Elsidig
Mr. Emad Eldien Babekir
Mrs. Amira Alamin Mustafa
Mr. Magzoub Abdalla Mohamed
Mr. Mohamed Elbashir Ibrahim
Deputy General Manager
Manager , Corporate Banking Dept.
Manager, computer Dept.
Manager, marketing & Business Development
Dept.
Manager, Funds & Portfolios Dept.
Manager , Internal Auditing Dept.
Manager , Risk management Dept
Deputy manager, Financial Affairs Dept
Compliance Officer
Manager, Legal Dept
Deputy Manager, Administrative HR Dept
Manager, FIBA Consultancy
Annual Report 2012
15
Report of the Board of Directorsto the 14th annual Ordinary general meeting of shareholders
Praise be to ALLA, the god of all worlds, peace be upon his most honorable Messenger, our prophet Mohamed, his family and companions.
Dear Brothers and Sisters, Honourable Shareholders, Al Salam Alaikoum Wa Rahmat Allah Wa Brakatu,
On behalf of my colleagues, the board members, the executive management and the bank staff, Iam pleased to put forward to your kind attention the annual report of the activities and financial results of the financial investment bank for the year ended 31/12/2012 in association with local, regional and international economic conditions that directly or indirectly influence our national economy and consequently the bank activities in addition to the demonstration of the results achieved in the past year, and recommendations of the board of directors to your decent assembly.During the first quarter of 2012 the global economy realized a gradual positive withdrawal after a sizable relapse in 2011. Suspicions with respect to financial stability in the euro area and the strong market pressures casted adverse shades that threatened to throw the European and likely the advanced economies into a deep pit recession.Strong response on policies level in Europe and continued improvement in activity in USA supported markets stability.Most emerging economies achieved high growth rates, yet the continuing economic and financial difficulties in the euro region coupled with atmospheres of political uncertainty formalized a source of danger to global recovery in 2012.On regional level, the transition Arab countries endeavoured to achieve some progress in execution of political reforms while elected governments could maintain macroeconomic stability, the balances of public finance, and external accounts retreated and investors retracted as a result of the continuance of uncertainly atmospheres surrounding the political and economic programs on medium term in numerous countries and at the same time the continual rising of food stuffs and petroleum products prices.On domestic level, the past year witnessed an evident increase in inflation rate to settle down to 46% by the end of 2012. Foreign exchange rates also increased by the end of 2012. the us dollar rate was 5.9837 Sudanese guinea compared to SDG 2.7 in 2011.The distinct shortage of foreign exchange resources greatly affected the ability of Sudanese banking sector to offer foreign exchange services and transactions
In respect of dealings in Khartoum stock exchange, the volume of transactions registered
SDG 3.1 billion by the end of 2012, compared to SDG 2.5 billion in 2011, with a rate of
increase of 24%.
Traded shares rose to reach 172.6 million shares in 2012 compared to 106 million shares
in 2011. Executed contracts increased from 7870 in 2011 to 12689 transactions in 2012.
Number of traded sukuk decreased from 11.2 in 2011 to 10.9 in 2012 as a result of drop
in volume of investment funds.
16
FINANCIAL INVESTMENT BANK
Report of the Board of Directors
Dear Shareholders, Praise be to Alla, that under the shadow of the critical conditions of the global, regional, and national economies and in despite of the impact of the events and changes in financial and economic environment, our bank realized positive satisfactory results. The audited financial statements, the external auditor report and the sharia supervisory board report for the year ended 31/12/2012 reflect the concise performance of the bank during 2012, and ensure the concern of the bank management with development and progress policy overriding all difficulties and challenges and at the same time gripping prosperous investment opportunities within its strategy and work modality. A.Balance sheet: - By the end of 2012 the bank total assets reached SDG 459 million, compared to SDG 379 million with a rate of increase of 21 %. This increment in assets is attributed to some revenue bearing items including:Deferred sales, musharakat, mudarabat, investment available for sale and fixed and other assets .The liabilities side also increased in 2012 to reach SDG 200 million compared to SDG 150 million in 2011 with a growth rate of 33% assigned to increase in sources of funds including trusts on demand and unrestricted investment equities, which amounted to SDG 88million by the end of 2012 compared to SDG 77 million in 2011.Total shareholder’s equity increased by 19% in 2012 from SDG 110 million in 2011 to SDG 180 million in 2012 due to capitalization of part of 2012 profits plus portion of retained profits.It is worthy to be noted that the balance of the bank investment portfolio moved upward from SDG 280 million in 2011 to SDG 305 million in 2012 with a gross rate of 9 %.Funds managed by the bank off the balance sheet inform of investment funds and portfolios increased from SDG1409 million in 2011 to SDG 1594 million in 2012 with a rate ofincrease of 13% resulting from the success of the bank management to attract local investments to compensate foreign investment shortage.
B. Income statement1) Revenues:During 2012 the bank realized a 20 % boost in revenues from SDG 46 million in 2011 to SDG 56 million in 2012. Financial investment revenues represented 88% of total revenues,
and banking services revenue accounted for 12% of total revenues.
2) administrative expenses:The ratio of total expenses to total revenue was 29% in 2012 compared to 30 % in 2011. Central bank of Sudan bench mark is 55%. This rate reflects the bank performance efficiency as a positive indicator of the bank profitability and resources application efficiency.
Annual Report 2012
17
Report of the Board of Directors
3) Net profitsThe bank achieved net profits after tax and zakat a mounting to SDG 34 million in 2012 compared to SDG 30 million in 2011 with a rate of increase of 13% in spite of the prohibitive national economic conditions in 2012.
C.Bank classification according to CAEL indicators:According to CAEL indicators issued by central bank of Sudan our bank rating was satisfactory; maintaining the some previous rating as designation of the stability of the financial and operational environment of the bank.
D.During 2012 our bank was not susceptible to any fraudulence or pilferages.
Dear Shareholder’s, During the year under review the bank concentrated its efforts in its principal business of activation of transactions at Khartoum stock exchange through issuance, promotion, sale, purchase and financing activities. This sector constituted 88% of the bank total revenues in 2012, maintaining its pioneering role in activation of both primary and secondary markets of Khartoum stock exchange.In the field of investment funds industry, the bank liquidated the real estate construction fund with a total capital of SDG 25 million reducing the number of operating funds to five funds with a total capital of SDG 126 million.In the domain of investment portfolios the total volume of invested funds amounted to SDG 1509 Million by the end of 2012 with an increase of SDG 118 million and percentage increase of 9% over 2011. This indicates the quality and professionalism of the bank services.In the sphere of studies and consultation the bank provided its consultancy services to various parties including meat and milk production project for sennar state. Blue Nile sugar factory, Sudanese sugar company, and National College for medical and technical studies.In the scope of promotion of public underwriting the bank promoted the expatriates technology and scientific research company, and Alnasr housing company.The bank maintained the position of leadership in promotion of government participation certificates, and government investment sukuk (SARH).To attain the bank goals of dissemination and propagation of financial investment culture, saving awareness and investment consciousness the bank continued its participation in numerous siminars, meetings and exhibitions where of the bank gained good reputation.The bank paid careful attention to the development and qualification of its human resources being the most important factor of success by provision of appropriate technical and professional training locally and abroad .Within the framework of the bank social contribution the malaria portfolio continued its executions where as the total volume of invested funds in this portfolio reached SDG 1437 thousand.
18
FINANCIAL INVESTMENT BANK
Report of the Board of Directors
Recently the bank management plans to expand the spectrum of the portfolio and convert it in to an investment fund for general health services.In consistency with the bank orientation for development and expansion, an ambitious budget has been prepared for 2013 focusing on the principal business domains, targeting the boost of the bank financial and human resources, concerned with the diversification of the components of the bank investment portfolio, and including a plan for dispersion over various states by establishment of two branches, one at Algadarif and the other at Elobied.
Dear honorable shareholders,
Allow me , after your careful examination of the board of directors report on the bank
activity for the year ended 31/12/2012 to put forward to your respectable assembly the
following recommendations:-
1.Approval of the external auditor report, The sharia supervisory board report , and
endorsement of the bank final accounts for the year ended 31/12/2012
2.Approval of the board of directors recommendation to distribute 23% of the year 2012
profits as :
12% cash dividends
11% stock dividends
3.Endorsement of the board of directors recommendation to pay:
a)The board Directors remuneration for 2012 as 5 % of the year profit, amounting to SDG
1,805,760
b)Sharia supervisory board fees for 2012 amounting to SDG 70,000.
4.Authorization of the board of directors to appoint the legal external auditor and determine
his fees for 2013.
6.Endorsement of the board of directors recommendation to raise the bank authorized
capital to SDG 200,000,000
Dear Shareholder’s,Finally I would like to express my appreciation of your continuous support to the bank management that made possible the realization of these commendable results.My thanks and gratitude are also paid to ministry of finance and national economy, central bank of Sudan, Khartoum stock exchange, Sudan financial services co., commercial registrar, sharia supervisor board and legal external auditor.Thanks and appreciation are also extended to bank clients for their highly esteemed and maintained trust.
Annual Report 2012
19
Report of the Board of Directors
Special tribute is paid to the bank staff for their individual and collective endeavours which contributed to the achievement of these best results, looking forward with hope and optimism to attain more accomplishment to contribute to the bank development and success and to support the national economy.
Faraj. Mohammed. SultanChairman of the Board of Directors
20
FINANCIAL INVESTMENT BANK
Financial Performance
Assets Total Assets reached SDG 459,662,585 at the end of 2012, compared to SDG 379,312,685 in2011 with a percentage increase of 21 %. Table (1): Trend of Assets (2008 – 2012)
Items (SDG) 2008 2009 2010 2011 2012
Current Assets 249,374,828.12 430,459,848 315,838,227 374,466,989. 454,625,824
Fixed Assets 6,418,480.93 4,220,775 4,724,678 4,845,696 5,036,761
Total Assets 255,793,309.05 434,705,623 320,562,905 379,312,685 459,662,585
Liabilities & Investment sharing accounts: Total liabilities and profit sharing investment accounts amounted to SDG 279,020,715 in 2012 compared to SDG 227,549,048. in 2011.
Table (2) Trend of Details of liabilities and profit sharing Investment accounts (2008 – 2012)
Items (SDG) 2008 2009 2010 2011 2012
Liabilities 96,887,403.37 240,191,129 151,866,271 150,626,779 190,960,182
Profit sharing Investment Accounts
53,247,068.43 85,001,371 39,836,253 76,922,269 88,060,533
Total liabilities & Profit sharing Investment Accounts
150,134,471.80 325,192,500 191,702,524.00 227,549,048 279,020,715
Shareholders’ Equity Shareholders’ equity amounted to SDG 180,641,869.00 in 2012 compared to SDG 151,763,637 in 2011 with a percentage increase of 19 %.
Table (3) Trend of Shareholders Equity (2008 – 2012)
Items (SDG) 2008 2009 2010 2011 2012
Total shareholders’ equity
105,658,837.25 109,488,123 128,860,381 151,763,637 180,641,869
Annual Report 2012
21
Financial Performance
Paid up Capital: Total paid up capital reached SDG 110,000,000 in 2012 compared to SDG 100,000,000
in 2011 with a percentage rate of increase of 10 %.
Table (4) Trend of paid up capital (2008 – 2012)
Items (SDG) 2008 2009 2010 2011 2012
Paid up capital 76,846,055 82,993,740 89,633,240 100,000,000 110,000,000
Revenues: Total revenues reached SDG 56,282,409 in 2012 compared to SDG 46,908,574 in 2011
with a percentage rate of increase of 20%.
(Table 5) Revenues (2008 -2012)
Items (SDG) 2008 2009 2010 2011 2012
Total Revenues 28,783,949.52 28,857,339 38,126,583 46,908,574 56,282,409
Expenses: Total expenses amounted to SDG 19,405,325in 2012 compared to 14,731,504 in 2011
with a rate of increase of 31 %.
Table (6) Trend of Expenses( 2008 -2012)
Items (SDG) 2008 2009 2010 2011 2012
Total Expenses 9,552,852.66 10,323,207.73 12,209,522 14,731,504 19,405,325
22
FINANCIAL INVESTMENT BANK
Financial Performance
Profits before Zakat & Tax: Gross profits before Zakat & Tax amounted to SDG 37,307,095 by the end of 2012
compared to SDG 32,712,468 in 2011 with a growth rate of 14%.
Table (7) Growth of Profits before Zakat & Tax (2008 – 2012)
Items (SDG) 2008 2009 2010 2011 2012
Profits before Zakat&Tax
19,231,096.86 19,714,502.82 26,386,412 32,712,468 37,307,095
Shareholder’s Dividends:
Dividend payments to shareholders amounted to 22% in 2011 compared to 21.566 % in 2010.
(Table 8)Trend of net profit and Dividends ( 2008 – 2012) : (SDG)
Year Net profits Dividends Dividends Distribution Ratio (% of paid up capital)
2008 16,710,955.41 13.832289.9 (18%) 10% in cash & 8% Bonus shares
2009 17,803,813.15 14939057.20 (18%) 10% in cash & 8% Bonus shares
2010 24,533,023.00 19330084.00 (21.566%) (10% cash & 11.566% Bonus shares)
2011 29,507,900.00 22000000.00 (22%) 12% in cash & 10% Bonus shares
2012 33,878,287.00 25,300,000.00 (23%) 12% in cash & 11% Bonus shares
Key financial ratios:
Ratios 2008 2009 2010 2011 2012
Fixed Assets/ Total Assets 2.5% 1.4 % 1.5% 1.3% 1.1%
Owners’ equity / Total Assets 41% 27 % 40% 40% 40%
Net profits/ Total Revenues 58% 59 % 68% 63% 66%
Net profits/ Owners’ Equity 16% 15 % 20% 19% 20%
Expenses/ Revenues 33% 34 % 32% 31% 34%
Paid up capital / Authorized Capital
76.84% 82.99 % 90% 80% 88%
Annual Report 2012
23
Sharia Supervisory Board Report
For the period 1/1/2013 to 31/12/2013
Corresponding to the 7th Safar 1433 to 18th Safar 1434 In compliance with the financial institutions governance standard no (1) concerning sharia supervisory board, issued by the Accounting and Audit Organization for Islamic financial institutions (Bahrain) we hereby report to shareholders general assembly the following:-1.The board reviewed the bank investment contracts offered to it and directed to remove violations therein.2.The board examined the bank financial position as at 31/12/2012, the income statement for the year ended 31/12/2012, and the accompanied disclosure notes therefore, listened to and noticed the bank management explanations, and considered the legal external auditor report.3.The bank management is responsible for the ascertainment of adherence to sharia rules. Our responsibility is to express an independent opinion based on the revision of the bank transactions and report to you.4.The board supervised the bank activities in 2012 and would like to report you that :a)The contracts and transactions concluded by the bank during the year ended 31/12/2012 and examined by the board were executed according to the provisions of sharia rules and principlesb)Profits distribution and cost bearing in investment accounts are consistent with the base approved by the board in accordance with Islamic sharia laws.c)Zakat account was conducted according to sharia rules and principles.d)All gains realized from sources or methods prohibited by sharia rules were paid on charity donations.
Shaira Supervisory Board:
Professor Mohamed Sir El khatim
Professor Alsidieg Alamien Aldarier
Mr. Ibrahim Ahmed Alshaikh Mohamed
24
FINANCIAL INVESTMENT BANK
External Auditor Report to shareholder’s
Auditors’ report to the Shareholders of Financial investment Bank (public limited Co)
We have audited the attached financial statements of the financial investment bank comprising:
the financial position statement, the profit and loss statement, changes in owners’ equity statement
and cash flow statement for the year ended 31/12/2012 with a summary of important accounting
policies and other notes.
Responsibility of the board of directors:
Preparation and presentation of fair financial statements according standards issued by the
Accounting and Audit Organization of the Islamic financial institutions is the responsibility of the
board of directors. This responsibility consists of designing, execution, and maintenance of internal
control systems related to preparation and presentation of fair financial statements free from material
misstatements caused by fraud or errors and selection and application of appropriate accounting
policies and preparation of reasonable accounting estimates.
Responsibility of legal auditors:
Our responsibility is to express on opinion about financial statements depending upon our transacted
audit works. Our audit has been conducted with audit standards issued by the accounting and audit
organization for Islamic institutions which requires in accordance commitment to related professional
morals and planning and execution of audit works to obtain reasonable assurance that the financial
statements are free from any material misstatements.
Audit works require the execution of procedures to obtain audit evidence supporting the amounts
and disclosures in financial statements.
The selection appropriate procedures depend on professional estimates including material
misstatements risks resulting from fraud or errors. In valuation of these risks we consider the internal
control systems concerned with the fair preparation and presentation of financial statements so as to
design audit procedures suitable to similar circumstances but not intended to express professional
opinion on the effectiveness of the bank internal control systems.
Also our audit works include the valuation of the appropriateness of the applied accounting policies
and the reasonableness of the accounting estimates made by the board of directors.
We believe that the obtained audit evidence is sufficient and suitable basis for expressing opinion
on financial statements.
Opinion:
In our opinion the financial statement fairly and from all material respects, represent the financial
position, financial performance and cash flows for the year ended 31/12/2012 in accordance with
the accounting standards issued by the Accounting and Audit Organization for Islamic institutions
(Bahrain) and consistent with company act 1925. standards issued by Accounting and Audit
Organization for Islamic Financial Institutions – Bahrain, and agree with company ordinance,
1925.
Mubarak. Al awad.MohamedCertified accountant - partnerKhartoum 18 February 2013
Annual Report 2012
25
Statement of Financial Position as at 31.12.2012
31.12.2011SDG
31.12.2012SDG
Notes Items
Assets:
57,413,87052,949,4284Cash and Cash Equivalents
9,762,38928,982,9045Sales Receivables
437,71811,496,1466Musharakat
4,752,0008,177,4707Mudarabat
280,694,193305,033,3468Investment securities ( for sale)
20,141,65947,373,7879Other Assets
4,845,6965,036,76110Fixed Assets
1,265,161612,74311Intangible Assets
379,312,685459,662,585Total Assets
Liabilities, unrestricted investment accounts and owners equity:
Liabilities:
33,248,40947,252,78712Depositors accounts
117,378,370143,707,39513Other Liabilities
150,626,779190,960,182Total liabilities
76,922,26988,060,53314Unrestricted investment accounts
Owners Equity:
100,000,000110,000,00015Paid up Capital
21,498,05721,498,05716Legal reserve
591,596591,596 General reserve
5,000,00010,000,000Bank building reserve
(777,964) 6,999,946 17Investment Fair value reserve
10,000,00012,100,000 Capitalized profits
12,000,00013,200,000 Proposed dividends distribution
3,451,9486,252,270 Retained profits
151,763,637180,641,869 Total owners Equity
379,312,685459,662,585 Total liabilities, unrestricted investment accounts & owners equity
1,409,241,1461,594,532,96327 Off balance sheet accounts
(The accompanying notes from (1) to (41) are an integral part of these financial statements)
26
FINANCIAL INVESTMENT BANK
Income Statement as at 31.12.2012
Items Note31.12.20112SDG
31.12.2011SDG
Income:
From Deferred Sales 18 3,207,519 426,323
From Investments 19 38,520,182 27,389,288
Total income from finance & investments 41,727,701 27,815,611
Less: profits payable to Investment Accounts (14)/(20) (9,709,976) (2,975,267)
Bank share as mudharib 32,017,725 24,840,344
Banking services revenue 21 24,065,568 22,005,648
Other income 21/ 1 199,116 62,582
Total income 56,282,409 46,908,574
Expenses :
Staff cost 22 11,084,576 8,555,528
General & Administrative expenses 23 3,871,830 3,385,043
Depreciation & Amortization 24 1,006,563 721,241
Sale of fixed assets (losses) - 14,867
Provisions 26 3,434,856 2,027,225
Central Bank of Sudan fines 7,500 27,600
Total expense 19,405,325 14,731,504
Net operating profit 36,877,084 32,177,070
FX revaluation gain/ loss 430,011 535,398
Income before Zakat & Tax 37,307,095 32,712,468
Zakat provision 28 (1,274,134) (1,129,458)
Tax provision 29 (2,154,674) (2,075,110)
Net income for the period 33,878,287 29,507,900
EPS – SDG 39 0.31 0.30
(The accompanying notes from (1) to (41) are an integral part of these financial statements)
Annual Report 2012
27
Cash flow statement for the year ended 31/12/2012
Items 31.12.2012 SDG 31.12.2011 SDG
Cash flow from operations:
Net profit for the year 33,878,287 29,507,900
Adjustment for:
Depreciation & Amortizations 1,006,563 721,241
Zakat & Tax provision 3,428,808 3,204,568
Losses on disposal of fixed assets - 14,867
Reserves 6,999,946 2,358,679
45,313,604 35,807,255
Changes in operating assets and liabilities , profit share of unrestricted investment accounts
Deferred sales receivables (19,220,515) (7,699,423)
Musharaka (11,058,428) (437,718)
Mudharaba (3,425,470) 6,930,000
Other Assets (27,232,128) (12,050,972)
Customer Accounts 14,004,378 (18,314,491)
Unrestricted profit sharing Accounts 11,138,264 37,086,016
Other liabilities 22,901,395 13,870,431
(12,892,504) 19,383,843
Net cash flow from operating Activities 32,421,100 55,191,098
Cash flow from investments
Purchase of Fixed Assets (546,388) (502,900)
Investments for sale (24,339,153) (25,721,110)
Net cash flow from investment activities (24,885,541) (26,224,010)
Cash flow from financing
Profit Cash dividends (12,000,000) (8,963,324)
Profits for capitalization (10,000,000) (10,366,760)
Profits been capitalized 10,000,000 10,366,760
Net cash flow from financing (12,000,000) (8,963,324)
Net (increase/decrease) in cash (4,464,441) 20,003,763
Cash& cash equivalent ( beginning of the year ) 57,413,870 37,410,107
Cash& cash equivalent, (end of the year) 52,949,428 57,413,870
(The accompanying notes from (1) to (41) are an integral part of these financial statements)
28
FINANCIAL INVESTMENT BANKSta
tem
ent of
Changes in o
wners
’ Equity
at 31/1
2/2
012
Item
s
Capital
Legal
reserv
e
Genera
l
reserv
e
Fair v
alu
e
inve
stm
ent
reserv
es
Pro
fits
for
capitaliz
ation
Bank
build
ing
reserv
e
Pro
fits
for
dis
trib
ution
Reta
ined
pro
fits
Tota
l
SD
GSD
GSD
GSD
GSD
GSD
GSD
GSD
GSD
G
Bala
nce a
t
1/1
/2012
100,0
00,0
00
21,4
98,0
57
591,5
96
-10,0
00,0
00
5,0
00,0
00
12,0
00,0
00
2,6
73,9
83
151,7
63,6
36
capitaliz
ed
Pro
fits
10,0
00,0
00
--
-(1
0,0
00,0
00)
--
--
Pro
fit fo
r th
e
period
--
--
--
-33,8
78,2
87
33,8
78,2
87
Reserv
es
--
-6,9
99,9
46
-5,0
00,0
00
-(5
,000,0
00)
6,9
99,9
46
Pro
fits
for
capitaliz
ation
--
--
12,1
00,0
00
--
(12,1
00,0
00)
-
Pro
fits
for
dis
trib
ution
--
--
--
13,2
00,0
00
(13,2
00,0
00)
-
Pro
fits
been
dis
trib
ute
d-
--
--
-(1
2,0
00,0
00)
-(1
2,0
00,0
00)
Bala
nce a
t
31/1
2/2
012
110,0
00,0
00
21,4
98,0
57
591,5
96
6,9
99,9
46
12,1
00,0
00
10,0
00,0
00
13,2
00,0
00
6,2
52,2
70
180,6
41,8
69
Bala
nce a
t
1/1
/2011
89,6
33,2
40
18,5
47,2
67
591,5
96
(3,1
36,6
43)
10,3
66,7
60
-8,9
63,3
24
3,8
94,8
37
128,8
60,3
81
Pro
fits
been
capitaliz
ed
10,3
66,7
60
--
-(1
0,3
66,7
60)
--
--
Pro
fit fo
r th
e
period
--
--
--
-29,5
07,9
00
29,5
07,9
00
Reserv
es
-2,9
50,7
90
-2,3
58,6
79
--
-(2
,950,7
90)
2,3
58,6
79
Bank reserv
e
--
--
-5,0
00,0
00
-(5
,000,0
00)
-
Pro
fits
for
capitaliz
ation
--
--
--
(8,9
63,3
24)
-(8
,963,3
24)
Pro
fits
for
dis
trib
ution
--
--
10,0
00,0
00
-12,0
00,0
00
(22,0
00,0
00)
-
Bala
nce a
t
31/1
2/2
011
100,0
00,0
00
21,4
98,0
57
591,5
96
(777,9
64)
10,0
00,0
00
5,0
00,0
00
12,0
00,0
00
3,4
51,9
48
151,7
63,6
36
(The a
ccom
panyi
ng n
ote
s f
rom
(1)
to (
41)
are
an inte
gra
l part o
f th
ese fi
nancia
l sta
tem
ents
)
Annual Report 2012
29
Financial Statements for the Year Ended 31/12/2012
1. Establishment and activity: The Financial Investment Bank is – a public joint – stock limited company in cooperated in the Sudan, in accordance with registration certificate No.11941 Issued on December 13,1997 according to the companies law Act for 1925. The bank performs all investment banking activities in accordance with the sharia law.The bank commenced operations on 22/7/1998 from the headquarters at Al-Manar tower, sayed Abdalrahman Street. The number of employees amounted to 84 as in 31/12/2012. (2011:81)
2. Preparation of financial statements: A. Base of Preparation of financial statements: 1-The financial statements have been prepared in accordance with accounting standards issued by Accounting Auditing Organization for Islamic Financial Institutions and the requirements of Central Bank of Sudan and the fatwas and decisions of the sharia supervisory board of the bank .2-The financial statements are prepared in Sudanese pound.3-The financial statements have been prepared based on the historical cost convention except for the revaluation of investments which are measure of fair value at the end of the year ,4-The financial statements have been prepared for the year from January 1,2012 up to 31/December /2012.
B. Foreign currencies : Transactions in foreign currencies are recorded at the rates of exchange prevailing on the dates of the transactions. Monetary assets and liabilities denominated in such currencies are retranslated at the rates prevailing on the balance sheet date. Profits and losses arising from the exchange are treated in income statement for the year .
C. Fixed asset :Fixed asset are stated at cost less accumulated depreciation and any recognized impairment losses. Fixed asset are depreciated according to the straight line Method in equal annual in Installments over their estimated useful life according to the rates required by taxation chamber as follows:
Motor vehicles 15% Computers 30% Furniture and equipments 10%Intangible assets 30%
The carrying amounts of fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. In the cases the carrying
30
FINANCIAL INVESTMENT BANK
Financial Statements for the Year Ended 31/12/2012
amounts are not recoverable then fixed assets are recorded at the recoverable amounts and the differences are recognized.
D. Recognition of as losses Income from operations: 1. Murabahat Income: Murabahat Income is recognized on accrual basis when the installment falls due.2. Mudharabat Income: Mudharabat income is recognized on accrual basis based on periodic income distribution3. Musharakat Income :Musharakat income is recognized on accrual basis based on period income distribution. 4. Banking services revenues: Banking services revenues are recognized at the time the related services are provided 5. Income from Securities: Income from Sukuk and stocks are recognized when the right to receive payments is established or when income can be reasonably be measured.E. Provision for doubtful debts and investment risks:E Provision for doubtful debts and investment risks:Provisions for doubtful debt collection and investment risks is made after careful study of individual cases in accordance with Central bank of Sudan requirements and the bank policies (non performing advances).F. Cash and cash equivalents : For the purposes of preparation of the Cash Flows Statement, cash and cash equivalents consist of cash at hand, current accounts with banks and cash balances with Central bank of Sudan.G. Provisions : Provisions are recognized when the bank has a current obligation (legal or expected) arising from a past event and may require the application of sources consisting of economic utility to settle the obligation. Also a realistic estimate of the obligation can be madeAlso a realistic estimate of the obligation can be made. H. Provision for End of service benefits:End of service benefits are calculated in accordance with Sudanese Labor Law & the bank by- laws.I. Measurement of investments and financing transactions :1. Deferred sales:Initially transactions are measured at nominal value and at the end of the period and measured on the basis of nominal value or expected net cash value which ever is lower.2. Mudharabat financing: Mudharabat financing is measured at the amount or put at disposition of the mudharib less what is recovered from the mudharaba capital.
Annual Report 2012
31
Financial Statements for the Year Ended 31/12/2012
3. Investments Available for sale: Initially recognized at cost and are measured at fair value at subsequent reporting dates. If the determination of fair value is not possible these investment are recognized at cost less any impairment in value. Increases and decreases in the fair value of these investments are taken to the revaluation reserve under shareholders equity at the disposal of these investments. The cumulative gain or loss previously recognized in equity is included in the income statement.
J. Zakat and Tax: The bank is subject to zakat in accordance with hand bills of zakat chamber and decisions of sharia supervisory board. As for tax, the bank is subject to business profit tax taking in consideration the exempted profits
K. Profit Share of Investment Account: Profits are distributed between profit sharing account holders and shareholders on the basis of the shares of each party invested funds. These investment accounts profit are credited to the clients accounts after the approval of the Sharia Supervisory Board.L. Impairment of financial assets :At the balance sheet date the financial assets to are evaluated determine whether there is any an objective evidence that those assets have suffered an impairment loss. If such evidence exists the recoverable amount of the asset is estimated and the impairment is recognized at income statement.M. Liabilities :Liabilities are recognized when it is certain amounts are payable in the future in exchange for materials or services received with or without invoices.
3. Sharia Supervisory Board : The bank activities are subject to the supervision of the Sharia Supervisory Board appointed by the bank general assembly to supervise the bank operations and transactions in accordance with Islamic sharia laws and principles. The sharia supervisory board reports annually to the general assembly.
4- Cash and cash equivalents:
Items 31/12/2012 31/12/2011
Cash in Hand 1,186,563 1,506,899
Balances with central bank 45,342,303 51,498,925
Balances with our Banks 6,420,562 4,408,046
Total 52,949,428 57,413,870
32
FINANCIAL INVESTMENT BANK
Financial Statements for the Year Ended 31/12/2012
5- Deferred sales receivables:
Items 31/12/2012 31/12/2011
Murabahat 21,266,570 1,855,303
Mugawalat 18,202,447 11,594,832
Deferred profits (9,879,039) (3,361,361)
29,589,978 10,088,774
Credit Defaults 654,304 300,597
30,244,282 10,389,371
Provision for doubtful financing ( note 25) (1,261,377) (626,982)
28,982,904 9,762,389
6- Musharakat:
Items 31/12/2012 31/12/2011
Musharakat 11,612,269 442,140
Provision for doubtful financing ( note 25) (116,123) (4,421)
11,496,146 437,718
7- Mudharabat:
Items 31/12/2012 31/12/2011
Mudharabat 8,260,070 4,800,000
Provision for doubtful financing ( note 25) (82,601) (48,000)
8,177,470 4,752,000
8- Investments available for sale :
Items 31/12/2012 31/12/2011
Government investment bonds 63,702,210 34,633,681
Government participation certificates (
shehama) 122,509,070 150,019,887
Government participation certificates (shama) 7,124,000 -
Investments in companies shares(note 8/ 1) 51,329,713 30,691,593
Investment funds 19,867,879 26,954,557
Investment portfolios 38,394,475 38,394,475
Real estate investments ( note 8/2) 2,106,000 -
Total 305,033,346 280,694,193
Annual Report 2012
33
Financial Statements for the Year Ended 31/12/2012
8-1. Investments in company’s shares:
Items 31/12/2012 31/12/2011
Companies shares listed in KSE: Animal resources Bank 40,128 40,128
Islamic development company 527,215 527,215
Shamal Islamic Bank 43,427 45,572
Tadamon Islamic Bank 730,899 584,720
Alsalam Bank 423,308 423,308
Bank of Khartoum 580,716 387,144
Sudatel company 23,411 20,248,310
Sudanese free zone company 42,386 42,386,118
Tagseet company 326,500 326,500
Faisal Islamic Bank 3,183,102 1,894,705
Farmers commercial Bank 35,771 36,715
Modern constructions company 336,000 336,000
National leasing company 2,000,250 -
United capital Bank 85,523 85,523
Price falling provision (listed companies ) (167,200) (104,700)
Total 31,599,143 24,873,525
8/1- Investments in company’s shares:
Items 31/12/2012 31/12/2011
Companies shares unlisted in KSE:
Roads and Bridges National company 143,370 143,370
Arabic leasing company 3,674,700 3,674,700
National leasing company - 1,999,998
National college company 16,000,000 -
Price falling provision (87,500) -
19,730,570 5,818,068
8/2- Investments in company’s shares:
Items 31/12/2012 31/12/2011
Real estate investments: Real estate investments 2,160,000 -
Price falling provision (54,000) -
2,106,000 -
34
FINANCIAL INVESTMENT BANK
Financial Statements for the Year Ended 31/12/2012
9- Other assets:
Items 31/12/2012 31/12/2011
Staff advances 7,569,096 5,296,041
Accrued revenues 14,150,732 2,703,616
Credit margins 3,817,416 8,831,160
Prepaid expenses 129,134 98,483
Inventories 12,497 1,288
Documents under collection 7,745,899 2,396,082
Exchange rate difference debt 13,279,257 -
Others 86,675 8,724
Khartoum investment fund debt 467,643 676,443
Foundation expenses (Note 24) 115,437 129,823
Total 47,373,787 20,141,659
10- Fixed Assets:
ItemsLand Tower
project Vehicles Computers Furniture & equipments Total
SDG SDG SDG SDG SDG SDG
Cost
1/1/2012 2,637,628 1,266,288 812,280 713,083 811,528 6,240,807
Additions - - 241,013 119,166 178,443 538,621
Disposal - - (99,380) (3,192) (10,045) (112,617)
31/12/2012 2,637,628 1,266,288 953,913 829,057 979,926 6,666,812
Depreciations
1/1/2012 - - 418,997 532,401 443,715 1,395,112
For the year - - 117,551 133,070 81,373 331,993
Disposal - - (86,545) (3,184) (7,326) (97,055)
31/12/2012 - - 450,003 662,287 517,761 1,630,051
Net book value
31/12/2012 2,637,628 1,266,288 503,910 166,771 462,164 5,036,761
31/12/2011 2,637,628 1,266,288 393,283 180,682 367,813 4,845,695
Annual Report 2012
35
Financial Statements for the Year Ended 31/12/2012
11- Intangible Assets:
Items 31/12/2012 31/12/2011
Software applications:
Cost at the beginning of the year 3,166,062 2,929,422
Additions 7,767 236,640
Cost at the end of the year 3,173,829 3,166,062
Amortizations:
Items 31/12/2012 31/12/2011
1/1/2011 1,900,901 1,310,037
For the year 660,185 590,864
Depreciations at the end of the year 2,561,086 1,900,901
Net book value 612,743 1,265,161
12- Investors’ accounts:
Items 31/12/2012 31/12/2011
Funds & portfolios Accounts (note 12/1) 45,421,157 31,900,664
KSE Trading Accounts - 364,011
Staff Accounts 1,668,402 983,734
Import Accounts 163,227 -
Total 47,252,787 33,248,409
12-1. Funds & private portfolios Accounts
Funds and private portfolios accounts represent the outstanding balance of the depositor’s
funds a waiting investment in portfolios and funds.
The invested funds are recognized as restricted Mudharabat accounts, accounted for off-
balance sheet.
36
FINANCIAL INVESTMENT BANK
Financial Statements for the Year Ended 31/12/2012
13- Other liabilities:
Items 31/12/2012 31/12/2011
Trusts on demand ( note 13/1) 110,034,230 88,226,669
IPO 105,037 2,005,762
L/C& guarantees margins 6,108,272 12,241,818
Notes payable 7,019,176 5,337,568
Accrued expenses * 4,105,187 3,461,485
After services benefits 2,903,293 1,858,014
Director board remuneration provision 1,805,760 1,570,309
Sharia supervisory remuneration provision 70,000 60,000
General Manager intensive 361,152 267,983
Staff incentives 2,305,225 2,004,522
Other creditors 8,556,786 205,782
Bank Deposit Security Fund 333,277 138,458
Total 143,707,395 117,378,370
*Includes SDG 1,274,134 zakat provision & SDG 2,154,674 business profits tax provision
for the year 2012.
13-1. Trusts on demand: Trust funds on demand are customers funds expected to be subscribed in investment funds and portfolios or purchase of securities, or customers profit distributions or purchase of shares and shehama profit distributions.
14- Profit sharing Investment accounts:
Items 31/12/2012 31/12/2011
Profit sharing accounts 75,844,255 74,085,460
Unrestricted investment fair value reserve 2,839,579 -
Annual profit share 9,709,976 2,975,267
Contribution to deposit Security Fund (333,277) (138,458)
Total 88,060,533 76,922,269
15- Capital:
Items 31/12/2012 31/12/2011
Authorized capital 125,000,000 125,000,000
Paid up capital 110,000,000 100,000,000
The authorized capital is SDG 100,000,000 and is divided into 100,000,000 shares each share has a par value of SDG1. The general assembly approved the capitalization of the profits of SDG 10 million and SDG 12 million as cash dividends in the annual ordinary meeting on march 29,2012.
Annual Report 2012
37
Financial Statements for the Year Ended 31/12/2012
16 - Legal reserve:
According to the bank memorandum of association a percentage of the bank profits is
to be transferred to the legal reserve. Central Bank of Sudan issued a directive in 2007 to
deduct 10% from net profits as legal reserve.
17 - Investments Fair value reserve:
Fair value reserve is the unrealized gain or loss arising from revaluation of investments
available for sale (stocks & sukuk).
18- Deferred sales revenue:
Deferred sales revenue is the revenue of murabahat .
Items 31/12/2012 31/12/2011
Murabahat income 2,428,320 314,323
Mugawalat income 779,199 112,000
Total 3,207,519 426,323
19- Investment revenue:
Items 31/12/2012 31/12/2011
Investment portfolio profits 38,247,304 26,723,393
Mudharabat profits 61,665 665,895
Musharakat profits 211,214 -
Total 38,520,182 27,389,288
20- Return of Unrestricted investment accounts: The bank share as a mudharib is determined according to the terms of conditions of the mudharaba contract. Investment account’s profit share in 2012 was distributed as 20% for the bank and 80% for investment accounts same as 2011. Rate for unrestricted investment accounts holders was 9.15% for 2012 compared to 7.76% for 2011.
21- Income from Banking and financial services:
Items 31/12/2012 31/12/2011
Credits , guarantees and transfer services commissions 3,715,723 3,233,315
Securities Issuance and trading commissions 8,518,677 9,140,843
Bank management profit share 11,768,167 9,631,490
Total 24,065,568 22,005,648
38
FINANCIAL INVESTMENT BANK
Financial Statements for the Year Ended 31/12/2012
21/ 1 - Other revenues:
Items 31/12/2012 31/12/2011
Fixed assets sale revenue 52,164 1,184Studies, valuation, and consultation revenue
100,419 44,782
Insurance companies compensations 46,533 16,616
Total 199,116 62,582
22- Staff cost:
Items 31/12/2012 31/12/2011
Salaries & Wages 2,375,796 1,916,023
Employees promotions 29,575 -
Overtime 38,267 44,055
Vacation and travel expenses 1,700,116 1,368,102
Medical allowance 842,057 647,388
Clothing allowance 762,441 535,142
Eid allowance 746,553 603,632
Staff training 719,868 671,771
Social affairs expenses 96,485 56,000
GM intensive 143,832 29,726
Social insurance 276,577 269,935
After service benefits 1,047,785 409,232
Provision for staff incentive 2,305,225 2,004,522
Total 11,084,576 8,555,528
Annual Report 2012
39
Financial Statements for the Year Ended 31/12/2012
23- General and Administrative expenses:
Items 31/12/2012 31/12/2011
Rent 660,590 468,627
Honor and hospatility 112,759 118,218
Advertisement & publication 316,927 245,703
Cleanliness and health 54,763 50,877
Maintenance 428,875 675,454
Board of directors expenses 286,750 210,994
General assembly expenses 84,975 59,643
Subscription fees 363,273 350,067
Communication expenses 159,998 149,277
Stationary expenses 85,000 72,947
Vehicles running expenses 141,513 99,711
Travelling 286,110 147,938
Capital increase expenses - 87,510
Donations 200,000 135,870
Electricity & water expenses 118,253 118,119
Sharia supervisory board 85,188 97,290
Legal advisor 42,000 36,000
insurance expenses (Assets) 29,334 31,695
General sundries 146,789 97,093
Guarding & municipality 31,991 22,508
Journals & periodicals 16,323 20,002
Fiba consultancy expenses 100,419 -
Audit fees 120,000 90,000
Total 3,871,830 3,385,043
24 – Depreciation & amortization:
Items 31/12/2012 31/12/2011
Fixed assets depreciation( Note 10) 331,993 130,377
Amortization-Intangible Assets ( note 9&11) 674,570 590,864
Total 1,006,563 721,241
40
FINANCIAL INVESTMENT BANK
Financial Statements for the Year Ended 31/12/2012
25- Investment and financing risk provisions:
ItemsDeferred sale Musharakat Mudharabat Total
SDG SDG SDG SDG
General provision
Balance at the beginning of the year
98,610 4,421 48,000 151,031
Disposals (43,493) - (153,138) (196,631)
Carried for the year 337,428 111,702 187,739 636,868
Balance at the end of the year 392,544 116,123 82,601 591,268
Specific provision
Balance at the beginning of the year 528,372 - - 528,372
Disposals (15,866) - - (15,866)
Carried through the year 369,573 - - 369,573
Write-off bad debts (13,246) - - (13,246)
Balance at the end of the year 868,833 - - 868,833
Total provision 1,261,377 116,123 82,601 1,460,101
Notes Note 5 Note 6 Note 7
26- provisions:
Items 31/12/2012 31/12/2011
Financing risk provisions 793,944 24,233
Price fall provision 404,000 104,700
Board of directors remuneration provisions 1,805,760 1,570,309
Sharia supervisory board remuneration provisions
70,000 60,000
GM Intensive 361,152 267,983
Total 3,434,856 2,027,225
27- Off balance sheet accounts:
Items 31/12/2012 31/12/2011
L/C, guarantees & acceptance obligations ( Note 27/1)
156,189,158 77,429,890
Investment funds & portfolios ( Note 27/2) 1,409,875,991 1,323,014,456
Restricted Accounts - 8,796,800
Saudi fund for development 28,467,814 -
1,594,532,963 1,409,241,146
Annual Report 2012
41
Financial Statements for the Year Ended 31/12/2012
27/1- Guarantees, credits & acceptance obligations:
Items 31/12/2012 31/12/2011
Letter of credits 153,363,606 75,069,627
Guarantees ( local) 1,479,219 1,741,738
Guarantees ( Dollar) 1,346,333 618,525
156,189,158 77,429,890
27/2- Investment funds & portfolios:
Items 31/12/2012 31/12/2011
Securities portfolios 1,467,724,749 1,378,105,752
Debtors / creditors 158,424 1,295,170
Financing 121,172 4,097,358
Inventory - 1,014,135
Real estate investments 134,000 2,475,000
Banking deposits - 1,376,073
Less Bank Investments in funds & portfolios (58,262,354) (65,349,032)
1,409,875,991 1,323,014,456
28- Zakat obligation :
The bank agreed with zakat chamber to pay zakat dues up to 2011 and make aprovision
of zakat for 2012.
29- Business profit tax: The bank estimated the business profit tax for 2011 and made a provision for 2012 tax .These estimates will not significantly deviate from the actual figures of business profit tax.
42
FINANCIAL INVESTMENT BANK
Financial Statements for the Year Ended 31/12/2012
30- Transactions with related parties: The bank within its normal operations performs transactions with shareholders, members of the board of director’s, subsidiary companies on commercial basis without any preference or favoring. The related parties balances in the at financial statements are as follows :
Items
shareholders board members, subsidiary companies
Manager& Deputy Manager
Total31/12/2012
SDG SDG SDG
Financing & Investments:
Other financing modes 5,737,500 - 5,737,500
Restricted investment accounts 47,052,205 - 47,052,205
Income statement:
Financing Income - - -
Fees & commissions - - -
Total 52,789,705 - 52,789,705
31- Credit risk, Assets and liabilities concentration and items not included in the balance sheet: Credit risks are represented by the non obligation of one party to the contract to fulfill his obligations which may result in losses to other party. The bank endeavors to control credit risks through pursuance of credit risks and continuous evaluation of credit worthiness of other parties to the contract normally financing contracts are guaranteed by asset mortgage or securities or personal pledges from other parties.
Types of credit risks:Financing contracts basically consist of deferred sales debtors, mugawala financing and musharaka financing.
Deferred sales debtors: The bank finance these transactions through purchase of commodity and resell it at a margin to the beneficiary. The sale price (Cost + profit margin) is redeemed in installments according to Murabaha terms and conditions
Musharaka financing:Agreements between the bank and customers in new or ongoing investment projects or ownership of real estate projects permanently or with declining musharaka arrangements. Profits are distributed according to agreement conditions but losses are incurred according to contribution in project share capital.
Annual Report 2012
43
Financial Statements for the Year Ended 31/12/2012
32- Market risks:Market risks are the risk of fluctuations in profit rates, exchange rates, and prices of shares and securities. The bank management set Limits of acceptable levels and monitors commitment to these limits.
33- Risk management: The concentration of credit risks arises when a group of parties enter into similar trading activities or activities in the same industrial sector or market or when they have the same economic features which influence the ability to meet contractual obligations in the case of emergence of economic changes or political changes or any other changes in the market. The concentration risk demonstrates the relative sensitivity of the bank performance towards the developments which may occur in an industrial sector or particular market. The bank manages credit risks through diversification of invested funds in securities which represent various economic sectors and financing of many customers to avoid concentration of risks in few customers or in few sectors or businesses.
34- Liquidity Risk:
Liquidity risk exists in the inability of the bank to fulfill its due obligations in time.
The bank diversified its sources of funding and management of assets in a way to secure
systematic monitoring of liquidity.
The table below summarizes the maturity of the bank assets and liabilities by the end of
the year 2012.
44
FINANCIAL INVESTMENT BANKFin
ancia
l Sta
tem
ents
for th
e Y
ear Ended 3
1/1
2/2
012
Matu
rity
of
Assets
& lia
bili
ties o
f th
e b
ank a
t 31/1
2/2
012
(Am
ounts
per SD
G)
Assets
0-1 m
onth
1-3 m
onth
3-6 m
onth
6 m
onth
– 1
year
1-3 y
ear
More
than 3
years
Tota
l
Assets
Cash &
bala
nce w
ith b
anks
52,9
49,4
28
--
--
-52,9
49,4
28
Defe
rred s
ale
s d
ebto
rs-
354,6
45
158,4
91
1,6
31,7
80
24,0
13,0
95
2,8
24,8
94
28,9
82,9
04
Mushara
ka F
inancin
g4,3
76,8
69
--
5,6
60,0
55
1,4
59,2
21
-11,4
96,1
46
Inve
stm
ent ava
ilable
for sale
244,8
02,3
01
32,0
00,0
00
5,3
94,4
75
3,1
06,0
00
19,7
30,5
70
-305,0
33,3
46
Mudhara
ba F
inancin
g-
1,9
40,4
70
--
3,4
65,0
00
2,7
72,0
00
8,1
77,4
70
Fix
ed A
ssets
--
--
-5,0
36,7
61
5,0
36,7
61
Inta
ngib
le A
ssets
--
--
-612,7
43
612,7
43
Oth
er Assets
13,9
02,0
83
14,1
50,7
32
7,7
45,8
99
3,8
17,4
16
467,6
43
7,2
90,0
14
47,3
73,7
87
Tota
l Assets
316,0
30,6
81
48,4
45,8
47
13,2
98,8
65
14,2
15,2
51
49,1
35,5
29
18,5
36,4
11
459,6
62,5
85
Lia
bili
ties
Custo
mers
accounts
47,2
52,7
87
--
--
-47,2
52,7
87
Oth
er lia
bili
ties
143,7
07,3
95
--
--
-143,7
07,3
95
Tota
l lia
bili
ties
190,9
60,1
82
--
--
-190,9
60,1
82
Unre
stric
ted inve
stm
ent accounts
88,0
60,5
33
--
--
-88,0
60,5
33
Tota
l lia
bili
ties&
unre
stric
ted
inve
stm
ent accounts
279,0
20,7
15
--
--
-279,0
20,7
15
Ow
ners
Equity:
Capital
--
--
-110,0
00,0
00
110,0
00,0
00
Legal re
serv
e-
--
--
21,4
98,0
57
21,4
98,0
57
Genera
l re
serv
e-
--
--
591,5
96
591,5
96
Bank b
uild
ing reserv
e-
--
--
10,0
00,0
00
10,0
00,0
00
Inve
stm
ent Fair v
alu
e reserv
e-
--
--
6,9
99,9
46
6,9
99,9
46
Pro
fits
pro
posal capitaliz
ed
--
--
-12,1
00,0
00
12,1
00,0
00
Pro
fits
pro
posal dis
trib
ute
d-
--
--
13,2
00,0
00
13,2
00,0
00
Reta
ined p
rofit
--
--
-6,2
52,2
70
6,2
52,2
70
Tota
l ow
ners
equity
--
--
-180,6
41,8
69
180,6
41,8
69
Tota
l lia
bili
ties ,
unre
stric
ted
inve
stm
ent accounts
& o
wners
Equity
279,0
20,7
15
--
--
180,6
41,8
69
459,6
62,5
85
Annual Report 2012
45
Financial Statements for the Year Ended 31/12/2012
35- Currency risks:
Foreign currency risks at 31/12/2012:
Currency ( thousand SDG) Total Assets Total liabilitiesInvestment deposits restricted
EURO 1,409,163 1,509,744 755,169
USD 3,911,545 3,177,050 1,385,162
Sterling Pound 1,513 - -
U.A.E Dirham 1,063,651 709,727 43,701
Saudi Riyal 1,138,019 3,516,418 3,016,418
Quatar Riyal 550 - -
36- Fair value of securities:
Fair value is the amount that can exchange for asset or be a settlement to liability between
interested parties on commercial conditions without preference. The difference that may
result between quoted value and fair value is included in investments set aside for non-
trading purposes investments available for sale amounting to SDG 58.1 million at the
end of 2012 (SDG 44.2 million in 2011) , recognized at cost due to non availability of
appropriate methods to obtain a reliable fair value for these investments.
Fair values for other financial instruments are not significantly different from recognized
values.
37- Concentration of financing & investments:
Total volume of finance and investment amounted to SDG 354 million by the end of 2012
(SDG 296 million: 2011).
Sector distribution of finance as follows:
Items 31/12/2012 31/12/2011
Securities 73.1% 81.8%
Portfolios 10.5% 13%
Commercial sector 2.4% 0.2%
Agriculture 4.1% 0.4%
Export 1.6% 0.0%
Industry 1.9% 1 %
Others 6.4% 3.6%
100% 100%
46
FINANCIAL INVESTMENT BANK
Financial Statements for the Year Ended 31/12/2012
38- Prohibited Income:
Income obtained from sources or through transactions that were not in line with sharia
principles amounted to SDG 2,484 in 2012 (SDG 2,104 : 2011) and the amount has been
allocated for charitable purposes.
39- return on share ( earning per share (EPS):
Items 31/12/2012 31/12/2011
Year net profit 33,878,287 29,507,900
Shares Number 110,000,000 100,000,000
Share profit 0.31 0.30
40- Capital Adequacy:
Items 31/12/2012 31/12/2011
Capital Adequacy 28% 51 %
Minimum C.A 12% 12 %
41- Comparative Figures:
Comparative figures for 2012 have been classified according to the presentation and
disclosure standard issued by Accounting and Auditing Organization for Islamic Financial
Institutions and in accordance with central bank of Sudan requirements. This classification
did not affect net profit, Shareholders equity or cash flows for that year.
Annual Report 2012
47
Fin
ancia
l Sta
tem
ents
for th
e Y
ear Ended 3
1/1
2/2
012
Sta
tem
ent of
Restric
ted Inve
stm
ents
as a
t 31/1
2/2
012
Tota
l fu
nds &
portfo
lios
Priva
te
portfo
lios
Mala
ria
potfolio
Tota
l fu
nds
Third
div
ers
ified
inve
stm
ent
fund
Second
Alw
ata
n
gro
up
inve
stm
ent
fund d
Second
securities
inve
stm
ent
fund
S
econd
inve
stm
ent
fund
Second
Nam
aa
fund
Item
s
1,5
09,2
75,7
97
1,3
81,8
38,2
97
1,4
37,5
00
126,0
00,0
00
8,0
00,0
00
42,0
00,0
00
30,0
00,0
00
16,0
00,0
00
30,0
00,0
00
Capita
l at th
e
begin
nin
g
--
143,7
50
12,6
00,0
00
800,0
00
4,2
00,0
00
3,0
00,0
00
1,6
00,0
00
3,0
00,0
00
Num
ber of units
( Suku
k) a
t th
e
begin
nin
g o
f th
e
perio
d
--
10
-10
10
10
10
10
Nom
inal v
alu
e
of u
nit
(at th
e
begin
nin
g o
f fu
nd)
(158,4
24)
--
(158,4
24)
-(1
58,4
24)
--
-D
ebto
rs
(44,4
15,6
45)
(44,3
16,7
77)
(3,9
45)
(94,9
23)
(8)
(17,5
67)
(23,1
81)
(2,4
77)
(51,6
91)
Current account
bala
nce
(1,4
67,9
79,9
22)
(1,3
37,5
21,5
20)
(1,4
37,9
30)
(129,0
20,4
72)
(8,1
68,7
95)
(41,0
28,8
39)
(30,3
78,9
30)
(15,8
24,9
23)
(33,6
18,9
85)
Inve
stm
ent at th
e
end o
f th
e p
erio
d
--
143,7
50
-800,0
00
4,2
00,0
00
3,0
00,0
00
1,6
00,0
00
3,0
00,0
00
Num
ber of units
at th
e e
nd o
f th
e
perio
d
--
10
-10
10
10
10
11
Book
valu
e o
funits
--
--
10
10
10
10
10
Mark
et va
lue o
f u
nits
(1,5
12,5
53,9
90)