Ahli Bank Q.S.C. Consolidated Financial Statements 31 December 2017

Transcription

1. Ahli Bank Q .S.C. CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017
2. Ahli Bank Q .S.C. CONTENTS CONSOLIDATED FINANCIAL STATEMENTS Page(s) Independent auditors’ report Consolidated statement of financial position Consolidated statement of income Consolidated statement of comprehensive income Consolidated statement of changes in equity Consolidated statement of cash flows Notes to the consolidated financial statements With supplementary information
3. Deiottte & touche - Qatar Branch Al, Alili Bank Head Oiitte Building Suha‘sm Bin Hamad Street Al Sadd Area Doha, R0, Box 431 Qatar Tel 1+974 44341112 Fax : +97% 44422131 nmtwdelolttecom QR. 30010 RN: 000492/WS/FY2018 INDEPENDENT AUDITOR’S REPORT To the Shareholders of Ahli Bank Report Q.S.C. the Audit of the Consolidated Financial Statements on Opinion of Ahli Bank Q.S.C. (the “Bank”) and its subsidiaries. We have audited the consolidated financial statements statement of financial position as at 31 December 2017, (together the Group), which comprise the consolidated statement of comprehensive income, consolidated and the consolidated statement of income, consolidated and notes to statement of cash flows for the year then ended, statement of changes in equity and consolidated of significant accounting policies. the consolidated financial statements, including a summary in all material respects, the the accompanying consolidated financial statements present fairly, financial performance consolidated its and consolidated financial position of the Group as at 31 December 2017, Financial Reporting international with in accordance and its consolidated cash flows for the year then ended and the applicable provisions of Qatar Central Bank regulations. Standards In our opinion, (IFRSs) Basis for Opinion Our responsibilities audit in accordance with International Standards on Auditing (IS/ts). of the Consolidated Audit the for under those standards are further described in the Auditor’s Responsibilities the International with in accordance of the Bank Financial Statements section of our report. We are independent Accountants (IESBA Code) together Ethics for Professional Ethics Standards Board for Accountants” Codes of statements in the State financial audit of the consolidated with the ethical requirements that are relevant to our with these in accordance requirements and the of Qatar, and we have fulfilled our other ethical responsibilities and appropriate to provide a we have obtained is sufficient lESBA Code. We believe that the audit evidence We conducted basis for our Key Audit: Key audit our opinion. Matters matters are those matters that, in our professional judgment, of most significance in our audit of addressed in the context of our not our opinion thereon, and we do were These matters the consolidated financial statements of the current year. and in forming as a statements whole, financial audit of the consolidated audit matters noted below relate to the consolidated The matters. on these key a separate opinion provide financial statements. were
4. INDEPENDENT AUDITOR ’S REPORT (CONTINUED) Kev audit matter Impairment of loans and advances to customers December 2017 and 2016, loans and advances to customers represent 72.4 and 70.4 (QR. 28.9 biilion at 31 As at Iii percent respectively December 2017 and 2016 respectively) There is a QR. 26.9 billion at 31 December Group’s total assets. ol’the risk that loans and advances to customers impaired and no such reasonable impairment provisions are provided in accordance to requirements of international Financial Reporting Standards (IFRSs) and the applicable provisions of Qatar Central Bank regulations, considering the areas of management assumptions and judgments. and advances to customers might loans Accordingly, amounts be with carrying greater than estimated are recoverable amounts. 4b(iii), 5a(ii) 6?: 10 of the consolidated financial statements that provide details regarding the impairment of loans and advances to customers. Refer to Notes How the matter was addressed in our audit and tested the design and operating effectiveness of the relevant controls over loans and advances origination, monitoring, impairment data and calculations. In addition, [T controls For Assessed impairment systems were tested. By selecting samples of loans and advances to customers using our professional sampling techniques and any requirements prescribed by Qatar Central Bank, we checked whether there is an objective evidence that an impairment exists on these loans and advances and assessed the reasonableness of impairment provisions in accordance to the lFRS requirements Central applicable provisions of Qatar regulations. This included the and Bank considerations to direct and indirect default indicators as prescribed by Qatar Central Bank regulations and IFRS. We assessed whether the related disclosures of this area were adequate in accordance to requirements of International Financial Reporting Standards and Qatar Central Banks, as applicable.
5. {NDEPENDENT AUDI'I’OR’S REPORT (CONTINUED) Impairment of Investment securities How the matter December 2t) [7 and 2016, investment 14.7 and 15.3 securities percent represent 2017 December at 3i billion 6.1 respectively (QR. and QR 5.6 billion at 3i December 2016 respectively) of the Group’s total assets As disclosed in Note 1 l to Assessed As at 31 the consolidated financial statements, the Bank’s investment securities consist of available for sale and held to maturity financial assets. Available for sale financiai assets are measured at fair value, while held financial assets are measured at amortised to maturity Furthermore, the management consideration to impairment of available for sale and held to maturity cost. financial assets There is a was disclosed in Notes 3c(vi) tested of the effectiveness investment securities our audit the design and relevant controls operating the over impairment. By selecting samples of investment securities using our professional sampling techniques, we checked whether there is impairment exists an objective evidence that an these investment securities and assessed the reasonableness of impairment losses in accordance to the IFRS requirements and the on applicable guidance regulations. of Qatar Central Bank & 11, risk is that investment securities are no such reasonable impairment losses and impaired are provided and addressed in was accordance to requirements of international Financial Reporting Standards (IFRSs), and the applicable guidance of Qatar Central Bank regulations, considering the areas of management and judgments Accordingly, investment in We assessed whether the related disclosures of this area were adequate in accordance to requirements of International Financial Reporting Standards and Qatar Central Banks guidance, as applicable, assumptions securities might be with carrying amounts greater than estimated recoverable amounts. Other information information comprises the Board of The Board of Directors is responsible for the other information. The other the Annual Report, which is Directors Report which we obtained prior to the (late of this auditors’ report and The other information does not include expected to he made available to us after the date of this auditor’s report. on the consolidated financial the consolidated financial statements and our auditor’s report thereon. Our opinion conclusion thereon. of assurance form do not and we information other any express statements does not cover the is to read the other our financial statements, consolidated responsibility of the In connection with our audit is materially inconsistent information identified above and, in doing so, consider whether the other information or otherwise appears to be in the obtained audit, our or statements financial knowledge with the consolidated other information that we obtained prior materially misstated. if, based on the work we have performed on the misstatement of this other information, material is a there that conclude we to the date of this auditor’s report, in this to have We that fact. regard. to nothing report we are required Responsibiiities report of the Board of Directors for the Consolidated Financial Statements of the consolidated financial The Board of Directors is responsible for the preparation and fair presentation Bank regulations, and for Central of the and Qatar applicable provisions statements in accordance with lFRSs to enable the preparation of the such internal control as the Board of Directors determines is necessary to fraud or error. financial statements that are free from material misstatement, whether due consolidated of Directors is responsible for assessing the Group’s preparing the consolidated financial statements, the Board the as applicable, matters related to going concern and using ability to continue as a going concern, disclosing, or to cease the to intends either Directors Group of Board liquidate going concern basis of accounting unless the so. operations, or has no realistic alternative but to do in The Board ofDircctors is responsible for overseeing the Group’s financial reporting process.
6. INDEPENDENT AUDITOR ’S REPORT (CONT EN UED) Auditor’s responsibilities for the Audit of the Consolidated Financial Statements financial statements as a whole Our objectives are to obtain reasonable assurance about whether the consolidated an auditor’s report that includes issue and to or fraud due to whether error, are free from material misstatement. but is not guarantee that an audit conducted in our opinion. Reasonable assurance is a high level of assurance, when it exists. Misstatements can arise from misstatement a material accordance with lSAs will always detect or in the aggregate. they could reasonably be expected to fraud or error and considered material if, individually consolidated financial statements. these basis of on the taken influence the economic decisions of user As part of skepticism 0 audit in accordance with lSAs, throughout the audit. We also: an and maintain professional assess audit procedures that are understanding of internal control relevant to the audit in order to design on the effectiveness oft‘ne an of appropriate in the circumstances, but not for the purpose expressing opinion Group’s internal control. Obtain 0 Evaluate the related an appropriateness of accounting policies disclosures made by the management. used and reasonableness of accounting estimates and basis ol‘accounting and, based Conclude on the appropriateness ofthe management use ot‘the going concern exists related to events or conditions that may on the audit evidence obtained, whether a material uncertainty a as to continue the going, concern. If we conclude that a material cast significant doubt on Group’s ability in auditor’s attention to draw report to the related disclosures in the uncertainty exists, we are required to modify our opinion, Our consolidated financial statements or, if such disclosures are inadequate, auditor’s report. However, future conclusions are based on the audit evidence obtained up to the date of our concern. a as continue cease to to going events or conditions may cause the Group financial statements, including Evaluate the overall presentation, structure and content of the consolidated the underlying transactions and statements financial consolidated the represent and whether the disclosures, events in 0 professional judgement misrepresentations, in 0 exercise whether due the risk of material misstatement of the consolidated financial statements, evidence audit obtain and to those rislcs, to fraud or error, design and perform audit procedures responsive a not risk of The detecting material that is sufficient and appropriate to provide a basis for our opinion. fraud as from error, may involve collusion, misstatement resulting from fraud is higher than for one resulting control. of internal or override intentional omissions, Identify and forgery, - we a manner that achieves fair presentation. business regarding the financial information of the entities or statements. We are responsible activities within the Group to express an opinion on the consolidated financial remain We audit. ofthe. solely responsible for our audit group for the direction, supervision and performance Obtain sufficient opinion. appropriate audit evidence
7. INDEPENDENT AUDITOR ’S REPORT (CONTINUED) charged with governance regarding, among other matters, significant audit findings, including any significant deficiencies We communicate with those of the audit and timing we identify during our planned scope and in internal control that the audit. provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. We also charged with governance, we determine those matters that were of financial statements of the current year and are therefore the audit of the consolidated in the significance in our auditor’s report unless law or regulation precludes public these matters matters. We describe audit key disclosures about the matter or when, in extremely rare circumstances, we determine that a matter should not be From the matters communicated with those most communicated in outweigh the public Other Legal Report on We also of the are report because the adverse consequences of interest benefits of such communication. our the information and and doing so would reasonably be expected to Regulatory Requirements opinion that proper books of account were maintained by the Group. We have obtained all explanations which we considered necessary for the purpose of our audit. We further confirm that the consolidated financial information included in the Board of Directors’ report addressed to the General Assembly is in agreement with the books and records of the Group. To the best of our knowledge and belief and according to the information given to us, no contraventions of the applicable provisions of Qatar Central Bank Law and the Bank’s Articles of Association were committed during the Commercial Law, Qatar year which would Doha Qatar January 31, 2018 ~ Companies’ materially affect the Group’s activities or its financial position. For Deloitte & Qatar Touche a Walid Slim Partner License No. 319 QFMA Auditor License No. 120156
8. Ahli Bank Q .S.C. CONSOLIDATED STATEMENT OF FINANCIAL POSITION QAR 2017 2016 1,979,872 2,202,199 28,936,299 6,099,869 258,608 406,553 1,789,297 3,261,913 26,861,405 5,570,902 275,186 406,507 3928835400 38,165,210 3,982,103 418,534 23,568,578 3,624,368 803,740 1,276,265 2,237,629 25,010,862 1,810,625 182,000 1,886,949 900,681 34,589,556 33,305,011 2,003,433 1,589,767 631,078 12,530 Note As at 31 December ‘000s ASSETS Cash and balances with central bank 8 Due from banks 9 Loans and advances to customers 10 Investment securities Property and equipment 11 Other assets 13 12 TOTAL ASSETS LIABILITIES 14 Due to banks and central bank Certificate of deposits and commercial paper Customer deposits 15 16 (a) (b) 16 (0) Debt securities 16 Subordinated debt Other borrowings Other liabilities - 2,192,233 17 TOTAL LIABILITIES EQUITY 18 Retained earnings 1,057,036 1,908,031 1,525,796 609,505 1 1,801 805,066 TOTAL EQUITY 5,293,844 4,860,199 Share capital Legal reserve Risk 18 18 reserve Fair value 18 reserves TOTAL LIABILITIES AND EQUITY These consolidated financial statements on (3) (1)) (0) (d) were My: approved by the Board of Directors on 17 January, 2018 33% and were its behalf by: Sh. Faisal Bin Abdul-Aziz Bin Jassem A1 Thani Chairman & The attached notes 1 to 33 form ahmoud Malkawi Acting Chief Executive Officer Managing Director an integral part of these consolidated financial statements. signed
9. Ahli Bank Q .S.C. CONSOLIDATED STATEMENT OF H‘ICOME For the year ended 31 December OAR ‘000s Note 2017 2016 Interest income 19 1,599,796 1,282,427 Interest expense 20 (765,353) (547,359) 834,443 735,068 Net interest income Net fee and commission income 21 173,613 168,789 Foreign exchange gain 22 Income from investment securities 23 Other 24 23,245 6,627 6,484 17,070 31,173 6,560 1,044,412 958,660 (182,694) (26,794) (172,658) (27,858) (66,674) (18,767) (109,771) (43,531) (93,684) (404,700) (326,912) 639,712 631,748 3.19 3.15 Net operating income operating income Staff costs 25 Depreciation Net (impairment loss)/recoveries 12 on loans and advances to 10 customers Impairment loss on (c) investment securities Other expenses 26 Profit for the year Earnings 27 per share The attached notes 1 to 33 form an integral part of these consolidated financial statements. 10,819
10. Ahli Bank Q .S.C. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the year ended 31 December Note Profit for the year Other comprehensive Items that profit or are or OAR ‘000s 2017 2016 639,712 631,748 504 (23,160) (9,065) (58,055) 23,317 43,531 68 55 729 (23,534) 640,441 608,214 income for the year may be reclassified subsequently to loss Available-for-sale financial assets: Realised 18 Fair value loss 18 Net during the year during the year amount of impairment transferred to profit Amortised during the year on or loss reclassification t0 loans and receivables Other Total comprehensive profit/floss) comprehensive income an 18 (d) for the year for the year The attached notes 1 to 33 form 18 (d) (d) (d) integral part of these consolidated financial statements.
11. ‘0 0s Total equity OAR 4,5035 631,748 (23,534) 608,214 (15,794) (27 ,576) (27 ,576) 4,86019 Retained earni gs 68 ,873 631,748 631,748 (73,152) (63,175) (15,794) (90,85 ) (27 ,576) (36 ,43 ) 805,06 value Fair I'CS V 35,3 5 1 ,801 (23,5 4) (23,5 4) res ve 536,35 609,50 Risk res ve Legal capital Share 63,175 1,462, 1 1,52 796 90,858 90,858 1,8713 Note (c) (b) (a) (e) 18 18 32 18 18 EQUITY in CHANGES OF Q.S.C. Bank Ahli STAEMN CONSLIDATE year year the for the for year the for fina cial directly holders: recognised equity these holders of part equity to Decmber income income sports distrbuons distrbuons equity r e s r v e D e c m b e r r e s r v e J a n u a r y ended ccomprehnsiv Profit Otomphrehenrsiv comprehnsiv social Bonus Divden contribu s Bal nce Total Total Transfer Transfer Transfer Transctio Contribu s Total Bal nce 31 2016 fund loss and year 1 year the For at as the for risk legal to to to staemnts. conslidate equity IN 1,908,31 to holders, 2016 and and with by paid is ue by 31 at as integral an form 33 to 1 notes at ched The
12. ‘0 0s Total equity OAR 729 4,86019 639,712 640,4 1 (15,9 3) (190,83) (190,83) 5,29384 Retained earni gs 805,06 639,712 639,712 (21,573) (63,971) (15,9 3) (95,402) (190,83) (286,205) 1,057 36 value Fair I'CS V 729 729 1 ,801 12,530 res ve 609,50 631,078 Risk res ve Legal capital Share [CONTIUED] 1,58976 1,52 796 95,402 95,402 1,908 31 Note (c) (b) (a) (e) 18 18 32 18 18 EOUITY in CHANGES OF Q.S.C. Bank Ahli STAEMN CONSLIDATE year year the for the for year the for fina cial directly holders: recognised equity these holders of part equity to Decmber income income income sports distrbuons distrbuons equity r e s r v e D e c m b e r r e s r v e J a n u a r y ended ccomprehnsiv Profit Otomphrehenrsiv comprehnsiv social Bonus Divden contribu s Bal nce Total Total Transfer Transfer Transfer Transctio Contribu s Total Bal nce 31 fund 2017 and year 1 year the For at as the for risk legal to to to staemnts. conslidate equity IN 2,034 to holders, 2017 and and with by paid is ue by 31 at as integral an form 33 to 1 notes at ched The