Finance House P.J.S.C. Condensed Consolidated Interim Financial Statements for the Three Months Ended 31-March-2018

Transcription

1. Finance House P .J.S.C. Condensed consolidated interim financial statements for the three months ended 31 March 2018
2. Finance House P .J.S.C. Financial Statements Condensed Consolidated Interim March 2018 For the three months ended 31 Pages interim Review report on condensed consolidated financial statements of financial Condensed consolidated interim statement Condensed consolidated interim position income statement of comprehensive income Condensed consolidated interim statement of changes in equity Condensed consolidated interim statement of cash flows Condensed consolidated interim statement interim financial statements Notes to the condensed consolidated
3. J pwc financial P .J.S.C. of Finance House information to the Board of Directors Review condensed on report consolidated interim Introduction interim statement of financial accompanying condensed consolidated referred to P.J.13.C (“the Company") and its subsidiaries (together statements interim position of Finance House condensed consolidated 31 March 2018 and the related as “the Group“) as at month three the period for in equity and cash flows and of income, comprehensive income, changes the for preparation notes. Management is responsible with then ended and other explanatory in accordance consolidated interim financial information presentation of this condensed Our responsibility is to Interim Financial Reporting. International Accounting Standard 34 financial information based on We have reviewed the — express a conclusion our review. on interim this condensed consolidated Scope of review on Review the International Standard review in accordance with by the independent of interim financial information performed Engagements 2410, “Review financial information interim consolidated of condensed auditor of the entity.“ A review and accounting of persons responsible for financial consists of making inquiries, primarily less in is substantially review and other review procedures. A and matters, and applying analytical on Auditing Standards conducted in accordance with International of all aware scope than an audit become we would to obtain assurance that consequently does not enable us we do not express an audit in an audit. Accordingly, matters that might be identified We conducted our significant opinion. Conclusion Based on our review, nothing has come to our attention that causes us to is not consolidated interim financial information accompanying condensed 34 International Accounting Standard material respects. in accordance with - believe that the prepared, in all Interim Financial Reporting. PricewaterhouseCoopers ("magnum *7“ ...... AZ} Jacques E. Fakhoury 3'19 Registered Auditor Number Emirates Abu Dhabi, United Arab 1001301 License PricewaterhouseCoopei-s, (Abu Dhabi Branch), Floor, PO Box 45263, Abu Dhabi United Arab Emirates Market. 25th Global Dhabi Abu Al Khatsm Tower, 6610, www.pwc.com/me T: +97: (0)2 694 6300. F.- +971 (0)2 645 no. — Douglas 0 Mammy. and Mohamed Paul Suddeby. Jlmues Fekhoury tluomo are registered as the UAF. Mntstry at Economy Pmfllim audltavs with
4. Finance House P .J.S.C. statement of financial position Condensed consolidated interim Note ASSETS Cash balances Investments carried at fair value At 31 December 2018 2017 AED’000 AED’OOO (Unaudited) (Audited) 19,734 677,891 17,437 701,032 623,385 149,758 70,811 00 Due from banks Investments carried at fair value comprehensive income At 31 March through other through profit or cost Investments carried at amortised Loans and advances Islamic financing and investing assets Investment in an associate loss 10.1 2,179,496 10.2 161,030 52,049 15,524 6,770 82,070 263,524 716,341 176,358 81,654 2,335,801 173,370 51,720 13,890 6,966 82,070 208,200 4,302,042 4,564,839 2,760,049 29,513 2,950,544 00 Property, fixtures and equipment Intangibles Investment properties Interest receivable and other assets Total assets LIABILITIES AND EQUITY LIABILITIES Customers’ deposits and margin accounts 11 institutions Due to banks and other financial Short term Medium 262,000 100,001 309,953 borrowings term loan payable and other liabilities benefits Provision for employees’ end of service Interest Total liabilities The notes on pages 8 to 44 form an integral part of these financial statements 23,831 266,410 120,834 286,397 13 940 13,624 3,475,456 3,66_1,640 (2)
5. Finance House P .J.S.C. statement of financial position (continued) Condensed consolidated interim EQUITY Share capital 12 14 scheme Employees’ share-based payment Statutory At 31 December 2018 2017 AED’000 AED’OOO (Unaudited) (Audited) 310,050 310,050 (1 ,750) 146,185 146,185 reserve of investments carried Cumulative changes in fair value through Retained earnings at fair value other 117,349 283,550 49,036 283,550 _—_ directors’ remuneration Non-controlling Total equity (6,305) (12,105) comprehensive income Tier 1 Sukuk Proposed (21,402) (21,402) (1,750) 13 Treasury shares At 31 March 753,564 73,022 826,586 interests ___ - _ 4,302,042 Total liabilities and equity _ liabilities Commitments and contingent 15 _ __1,925,885 _3i90__ 830,767 72,432 903,199 . __ 4,564,839 1,950,461 _ and authorised for issue by the statements were approved consolidated interim financial its behalf by: 2018 and were signed on rd of Directors on 6 May Mr. 1'. Mohammed Alqubaisi id Taylor General Manager Chairman W The notes on form pages 8 to 44 an integral part of these financial statements. (3)
6. Finance House P .J.S.C. Condensed consolidated interim income statement Three month period ended 31 March 2017 2018 AED’000 AED’OOO (Unaudited) (Unaudited) Note Interest income and income from Islamic and investing assets Interest expense and profit distributable financing t0 depositors Islamic Net interest income and income from assets financing and investing Net income from Net interest perpetual income, financing and investing from 5 (18,81§L (17,426) 5 45,570 4,918 39,571 50,488 45,888 17,277 £13311 13,445 18,877 instruments income from Islamic Fee and commission income Fee and commission expenses _ _ Net fee and commission income loans and advances on islamic financing and on 10.1 (22,478) 10.2 (1,648) 12,801 6,402 (3,137) operating income Net operating income (41,429) (1,785) (196) (35,711) (2,003) (196) (14,683) 20,596 General and administrative expenses Operating profit Share of results of associate _ _ __3& 20,926 period (14,528) 22,746 _ _ _ 233E 25,01 _ Attributable to: Equity holders of the parent 25,207 18,785 (135) 2.141 Non—controlling interests 20,926 Basic and diluted earnings per share attributable ordinary shares (AED) pages 8 to 44 form 21,735 80,684 73,189 employees related expenses and equipment Depreciation of property, fixtures of Amortisation intangibles on 6,774 _ Salaries and The notes 14,488 5,936 Other 011) fi3fl (11,000) Net insurance income Profit for the _ _ 14,179 6 Net investment income impairment loss Credit impairment loss investing assets 6,317 assets and net income perpetual instruments Credit 56,997 64,388 5 an =_ 25,07_2 to integral part of these financial 0.04 7 0.07 _ statements. (4)
7. Finance House P .J.S.C. of comprehensive income Condensed consolidated interim statement Three months period _3flmch_ 2018 Note Profit for the Other ended _ _ 2017 AED’000 AED’OOO (Unaudited) (Unaudited) 20,926 25,072 period comprehensive (loss)/income: to the Items that will not be reclassified income interim consolidated condensed statement: Change at in fair value of financial assets carried income other comprehensive fair value Directors’ remuneration paid the period comprehensive (loss)/income for the period Total comprehensive income for Other _ Attributable to: Equity holders of the parent Non-controlling interests OW The notes on pages 8 to 44 form (9,024)_ 11,902 integral part of these financial statements. - 6,428 __ 31,500 9,924 31,494 1,978 6 11,902 an 6,428 (4,484) (4,540) through 31,50L (5)
8. (18,170) (8, 15) 1,50 (5,625) 954,142 903,19 (6 ,3QL 836,83 20,926 (4, 84) (4,540) 1 ,902 (15,141) (1,38 ) (5,6§L 826,586 - Total Non 6,428 31,50 953,752 25,072 AED’0 141 icontr li g nter st AED’0 73,791 (135) - - - - - - — 6 - (1,38 ) 73,02 (163) 1,978 73.797 72,432 72,432 2,141 (6) ‘ - to Atribuale shareolds the of 6,287 31,494 parent company AED’0 879, 61 25,207 1,50 28 ,70 1 AED’0 Propsed irectors’ remun atio AED’0 Tier Sukuk - ~ - value Cumlative changes AED’0 fair in Stauory resrve AED’0 changes Employes’ hare-bsd payment schem AED’0 (4,321) (4,321) ,479) - - - (12, 05) (1 - - - - - - - - - - - - - - 1,479 - 23,471 (6,305) (6,305) (15,14 ) (5,62fl 49,036 18,785 — 6,287 6,287 (309) 17,493 — - (18,170) (5,625) 135,048 1 5,89 (6 ,361) 49,538 18,785 309 25,207 13 ,327 25,207 — equity (4,540) (4,540) - - - - - - - - Retained earni gs AED’0 in 283,;0 1,976 4,540 4,540 1,976 - - - 290,20 283,5 0 283,5 0 - — - - - - (15,14 ) (5,625L 753. 64 - - - - — - - — - - - - — (18,170) (8, 15) 1,50 (5,625) 8 0.345 830,76 (6 ,361_L 764, 06 18,785 (4,321) (4,540) 9,924 - 146,fl_ 142,752 146,185 146,185 142,752 — - - - - - - — - - - - - - staemnts. (1,750L (1,750) (1,750) (1,750) (1,750) of staemnt Treasury shares AED’0 (12,587) interim Share capital P.JS.C cHouse onslidate Fina ce Condes — - - - - - - - - at fair car ied at 2017 period paid 2017 - of 1 other paid the Fair in Tier of value fair on car ied - - - ~ Total Los value Cash 31 in at 1 Tier period car ied form 44 Kaine inter st paid 2018 paid coupon March the {air at notes other at at on integral an for 1 init al part at the of 1 tofhese - January ofinvesh t comprehnsiv income investmn comprehnsiv aJanuary plicaton period bal nce through remun atio comprehnsiv disposal through div end no-c trling SUK Bal nce Changes Restaed Change income Directors Profits income Change Bal nce IFRS 2018 2013 fina cial - 310, 50 9 car ied for value onfit — at the other for - ~ 310, 50 310, 50 310, 50 cufinvestm omprehnsiv income investmn shares Sukuk January period through treasury coupon March disposal through div end SUK c o m p r e h n s i v Purchase Movemnt Bal nce Bal nce Change income at — - (21,402) - - AED’0 310, 50 1 . (21,4QL (21,402) (21,402) - (8, 15) - - - - - for Profit in paid of other to 8 pages on 31 value fair on Total value in fair Cash Tier 1 The W
9. Finance House P .J.S.C. of cash flows Condensed consolidated interim statement Three-month period ended 31 March _ 2017 2018 AED’000 AED’OOO (Unaudited) (Unaudited) 20,926 25,072 2,003 1,785 Note Operating activities Profit for the period Adjustments Depreciation for: of property, fixtures and equipment Amortisation of intangible asset Share of result of associate (330) disposal through profit or loss carried Change in fair value of investments or loss through profit impairment loss impairment loss 6 521 191 6 7,387 22,478 12,464 11,000 fair value at of loans and advances of islamic financing and 10.1 investing Directors remuneration paid Gain on acquisition of investment in subsidiaries for employees’ end of service in provision assets _ at fair value through (81,100) 134,239 86,924 (60,520) 1,893 8 (1,789) 221937;. investing activities __ (35.993) (4,410) (20,833) (12,500) 20,000 1,500 (5,625) (18,170) (8.815) (5,625) (15,141) Tier 1 SUKUK coupon paid Cash dividend paid Purchase of treasury shares - financing activities Net decrease in cash and cash equivalents at 1 January Cash and cash at 31 March pages 8 to 44 form an integral part of these financial _ (45,009} statements. (23.610) _ _ 688,638 (407,741) 737,608 662,112 329,867 (26,526) 8 18,591— 136.459 - Movement in Tier 1 SUKUK on (45,765) 52,418 10,843 (3,637) Financing activities term borrowings (Repayments of)/proceeds from short term loan medium of Repayments equivalents equivalents _ (348.| 38) (33,726) Dividend received Cash and cash 2,978 other cost Proceeds from sale of investments carried at amortised Purchase of property, fixtures and equipment Net cash outflows from 35,121 (116,976L value Proceeds from sale of investments carried at fair or loss through profit (outflows) (4,829) (213,179) - loss Net cash inflows (156,686) (45,526) 23,556 comprehensive income Proceeds from sale of investments carried at fair value through other comprehensive income Purchase of investments carried at fair value through profit from 492 (190,495) Net cash outflows from operating activities Purchase of investments carried 6,208 71,949 - Liabilities held for sale Investing activities 27,130 33,491 (55,324) Interest receivable and other assets Assets held for sale Customers’ deposits and margin accounts Interest payable and other liabilities 01 _ _ _ _ _ Loans and advances The notes - _ Changes in working capital: Islamic financing and investing or - 563 316 benefits 3,137 1,648 (4,540) (1,388) 10.2 assets Net movement (2,326) (18,591) (22,087) 6 Dividend income from investments of investments carried at fair value Loss on Credit Credit 196 196 (7)
10. Finance House P .J.S.C. interim financial statements Notes to the condensed consolidated 31 March 2018 for the three month period ended Activities 1 in Abu is a Public Joint Stock Company incorporated Finance House P.J.S.C. (the “Company”) the U.A.E. Federal in accordance with the provisions of Dhahi, United Arab Emirates (U.A.E.) and the U.A.E. Central Bank, the Monetary System Commercial Companies Law No. (2) of20l5, of Board of the of 1980 and under authority of resolutions Organization ofBanking Law No. (ID) to Finance Companies. Directors of the U .A.E. Central Bank relating 18 July 2004. operations established on [3 March 2004 and commenced in Abu Dhahi and its Abu Dhabi, office head its The Company performs its activities through consist of of the The Company on its was Company The principal activities Dubai, Sharjah and Al Ain branches. services. and other related investments, consumer and commercial financing registered head office The Abu Dhabi, U.A.E. of the Company is at PO. Box 7878, Basis of preparation 2 under financial information of the Group are prepared These condensed consolidated interim which financial instruments and investment properties the historical cost basis except for certain are measured at fair value. These condensed consolidated interim financial information are prepared in accordance with 34”), issued by the i-i'r'nanciai Reporting (“IAS International Accounting Standard 34: Interimand also comply with the International Accounting Standard Board ([ASB} requirements applicable of the laws in the U.A.E. of these condensed consolidated interim accounting policies used in the preparation annual consolidated financial consistent with those used in the audited The financial statements are December statements for the year ended 31 2017, other than the impact of the implementation of IFRS 9 which is disclosed in note 2.4. information financial information do not include all the These condensed consolidated interim be read in should and financial statements and disclosures required in full consolidated the for year ended 31 financial statements conjunction with the Group’s consolidated 2018 are March from 1 January 2018 to 31 December 2017. In addition, results for the period financial year ending 31 of the results that may be expected for the necessarily indicative not December 2018. As Notification Authority of the U.A.E. (“SCA”) to financial assets, cash 26242008 dated I2 October 2008. accounting policies relating have assets and investment properties cash equivalents, Islamic financing and investing statements. required by No. and the Securities and Commodities interim financial been disclosed in the condensed consolidated statements This condensed consolidated interim financial 2018. Directors on 6 May was approved on behalf of the Board of (8)
11. Finance House P .J.S.C. statements Notes to condensed consolidated interim financial for the three month period ended 31 March 2018 (continued) 2 Basis of preparation (continued) 2.1 Basis of consolidation the financial statements of The condensed consolidated interim financial statements incorporate to as the “Group”). the Company and its subsidiaries (collectively referred Subsidiaries the Group. The Group controls an entity when it is exposed to affect from its involvement with the entity and has the ability to, or has rights to, variable returns are subsidiaries of statements financial The those returns through its power over the entity. control that date the from information included in the condensed consolidated interim financial subsidiaries and their until the date that control ceases. The details of the Company’s Subsidiaries entities controlled are by commences principal activities are as follows: Country of Name of incorporation subsidiary Ownership interest % 31 March 31 December 2018 2017 100 Principal activity Islamic Islamic Finance House financing services P.J.S.C. U.A.E. 100 Insurance House P.S.C. U.A.E. 45.15 44.83 Insurance Co L.L.C. U.A.E. 70 70 Brokerage CAPM Investment P.J.S U.A.E. Finance House Securities Investment and asset Transactions eliminated on 100 consolidation and cash flows All intra group balances and income, expenses transactions are eliminated in full on consolidation. of management 100 new 2.2 Application (“IFRS”) 2.2.1 New and revised IFRS resulting from and revised International Financial applied with no material effect on intra group Reporting Standards the condensed consolidated financial statements on or and revised IFRS, which became effective for annual periods beginning revised of these statements. The application after 1 January 2018, have been adopted in these financial material had not has impact on the amounts reported fo r the current where stated, any IFRSs, The following new except and prior years. (9)
12. Finance House P .J.S.C. interim financial statements Notes to the condensed consolidated ended 31 March 2018 for the three month period 2 Basis of preparation 2.2 Application of new (“IFRS”) (continued) 2.2.1 New and (continued) Financial and revised International Reporting Standards no material effect revised IFRS applied with consolidated financial statements (continued) on the condensed IAS 11, with customers’ The standard replaces is 15, ‘Revenue from contracts Revenue ‘Revenue’ and related interpretations. ‘Construction contracts’, IAS 18, has the ability IFRS 0 and thus obtains control of a good or service or service. The core principle obtain the benefits from the good to direct the use of and of promised goods revenue to depict the transfer of IFRS 15 is that an entity recognises which the entity to consideration the in an amount that reflects or services to customers includes a or services. IFRS 15 also in exchange for those goods entitled be to expects users of that will resuit in an entity providing cohesive set of disclosure requirements information about the nature, amount, timing financial statements with comprehensive contracts with cash flows arising from the entity’s and uncertainty of revenue and recognised when a customer customers. The from contracts with customers’ Amendment to IFRS 15, ‘Revenue on identifying performance obligations, amendments comprise clarifications versus agent of intellectual property and the principal - 0 accounting for licenses assessment (gross versus additional 0 net revenue practical expedients related to presentation). The IASB has also included transition to the new revenue standard. to The amendment clarified that if conclude To use. in there must be a change transfer to, or from, investment properties meets the of whether property use there should be an assessment a property has changed be by evidence. It must. supported The change the definition of an investment property. to support. a transfer in intention, in isolation, is not enough that a Amendment to IAS 40, ‘Investment was confirmed Property’ - change property. to or from the investment 0 amendment clarifies the for share-based payments and the accounting measurement basis for cash-settled, also It settled. settled to equity from cash modifications that change an award that will requiie an award to be 2 IFRS in introduces an exception to the principles where an employer is obliged to withhold treated if it was wholly owned equity settled, and associated with a share based payment Amendment to IFRS 2, ‘Share—Based Payment’ - The — — an amount for the employee’s tax obligation to the tax pay that amount authority. (10)