Sindh Bank: Unconsolidated Condensed Interim Financial Statements - 30 September 2017

Transcription

2. Contents Vision and Mission Statements ...............................................................................02 Corporate Information............................................................................................. 03 Directors’ Report (English).......................................................................................04 Directors’ Report (Urdu)...........................................................................................07 Unconsolidated Condensed Interim Statement of Financial Position......................13 Unconsolidated Condensed Interim Profit and Loss Account..................................14 Unconsolidated Condensed Interim Statement of Comprehensive Income............15 Unconsolidated Condensed Interim Cash Flow Statement.................................... 16 Unconsolidated Condensed Interim Statement of Changes In Equity.................... 17 Notes to and forming part of the Unconsolidated Condensed Interim Financial Information ............................................................................................. 18 Consolidated Condensed Interim Statement of Financial Position..........................41 Consolidated Condensed Interim Profit and Loss Account .....................................42 Consolidated Condensed Interim Statement of Comprehensive Income................43 Consolidated Condensed Interim Cash Flow Statement........................................ 44 Consolidated Condensed Interim Statement of Changes In Equity ....................... 45 Notes to and forming part of the Consolidated Condensed Interim Financial Statements.............................................................................................. 46 Branch Network.......................................................................................................63 01
3. Vision & Mission Statements VISION Our vision is to be a leading bank which would play a positive role to generate economic activities for empowering the people by meeting their financial needs for running a successful business and create employment opportunities. MISSION To develop as a leading Commercial Bank in the country by meeting its stated objectives of promoting economic development of the country in general and in the Province of Sindh in particular. 02
4. Corporate Information Board of Directors Afzal Ghani Syed Hasan Naqvi Mohammad Shahid Murtaza Muhammad Naeem Sahgal Tajammal Husain Bokharee Raja Muhammad Abbas Muhammad Bilal Sheikh Tariq Ahsan Chairman / Independent Director Non Executive Director Non Executive Director Independent Director Independent Director Independent Director Non Executive Director President & CEO Chief Financial Officer Saeed Jamal Tariq Company Secretary Shamsuddin Khan Auditors EY Ford Rhodes Chartered Accountants Legal Advisors Mohsin Tayebaly & Co Shares Registrar Central Depository Company of Pakistan Limited Registered/Head Office 3rd, Floor Federation House Abdullah Shah Ghazi Road Clifton, Karachi-75600 UAN: +92-21-111-333-225 Fax: +92-21-35870543 Registration Number 0073917 NTN Number 3654008-7 Website www.sindhbankltd.com 03
5. Directors ' Report On behalf of the Board of Directors of Sindh Bank, I am pleased to present the financial results for the nine months ended September 30, 2017. Financial highlights of the period are presented below. Financial Highlights Total Deposits increased by 9.2 percent to Rs. 130.0 billion as compared to Rs. 119.0 billion on December 31, 2016. Government of Sindh, Finance Department deposits constituted 14.9 percent of the total deposits as compared to 16.7 percent on December 31, 2016. Number of customer accounts stood at 459,251 after addition of over 40,797 accounts (i.e. increase of 9.7 percent) during the period. Gross Advances at Rs. 67 billion increased by 19.7 percent over the year-end position at December 31, 2016. Investment portfolio (excluding those utilized for Repo borrowings) and comprising mainly of Government Securities recorded a nominal change. Pre-tax profit for the nine months ended September 30, 2017 amounted to Rs.1,869.8 million showing an increase of 5.22 percent over Rs.1,775.8 million earned during the same period last year. Financial information summary is as follows: (Rs. in '000) Balance Sheet As on September 30, 2017 As on December 31, 2016 %age Change Paid up Capital Reserves & un-appropriated profits Paid up Capital & Reserves Surplus/(deficit) on Revaluation-net of tax Equity Deposits Investments (net of repos) Gross Advances Profit & Loss Account 10,010,130 6,444,242 16,454,372 (315,238) 16,139,134 129,977,787 70,279,401 66,993,391 Nine months ended September 30, 2017 10,010,130 5,386,723 15,396,853 134,032 15,530,885 119,022,240 70,290,533 55,979,573 Nine months ended September 30, 2016 6.87% Markup/return/interest earned Markup/return/interest expensed Net markup/return/interest income Non-mark-up/non-interest income Capital gains & Dividends Fee, Commission & Other Income Non mark-up/interest expenses Provisions Provisions-general Provisions-specific Profit before Tax Profit After Tax Earnings per share (Rupees) Other Information Number of Accounts Number of Branches 04 8,312,354 4,469,820 3,842,534 1,244,062 810,880 433,182 3,141,939 74,860 567 74,293 1,869,797 1,057,519 1.06 As on September 30, 2017 459,251 260 7,247,049 4,048,893 3,198,156 3,040,986 2,723,716 317,270 2,867,271 1,596,095 1,500,452 95,643 1,775,776 967,159 0.97 As on September 30, 2016 399,494 250 3.92% 9.20% 19.67% %age Change 20.15% -59.09% 9.58% 5.29% 9.34% 9.28% %age Change 14.96% 4%
6. Net markup /interest income increased by 20 percent compared to the same period last year. This is a positive reversal of the trend from last year and augurs well for the Bank as it adds to its core income. Non-markup/interest income recorded a decrease of 59 percent mainly due to reduction in gain on sale of investments to Rs. 699.1 million (mainly PIBs) compared to Rs.2,616.28 million in the same period last year. Fee and Other income however increased by 36.5 percent over the same period. Economic Review During FY 2016, Pakistan's economy recorded an eight year high GDP growth of 4.7 percent. Figures for FY 2017 show GDP growth at 5.3 percent, a ten year high. Industrial sector witnessed growth of 5.0 percent compared to 5.8 percent in the last fiscal however Large Scale Manufacturing (LSM) posted YOY growth of 5.7 percent against 2.9 percent last year. Agriculture sector achieved its targeted growth of 3.5 percent, much above the growth of 0.3 percent in FY 2016 while Services sector recorded 6.0 percent growth as compared to 5.5 percent last year. Average CPI inflation during FY 2017 stood at 4.2 percent compared to 2.9 percent in FY 2016 which eased to 3.2 percent during July-August FY 2018. There has been no change in SBP Policy rate during the period which remains at the all-time low level of 5.75 percent. SBP's projected range for average CPI inflation during FY 2018 is 4.5 - 5.5 percent. High economic growth is exerting pressure on external sector with the deficit for the first two months of FY 2018 widening to US$ 2.6 billion driven mainly by imports of machinery, metal and petroleum products. During FY 2017, current account deficit of US$ 12.1 billion was registered as exports and workers' remittances declined while imports surged by 17.7 percent, owing mainly to machinery imports both for CPEC and non-CPEC energy and infrastructure projects. FX reserves as at end of FY 2017 closed at US$ 21.4 billion, down from US$ 23.1 billion at end of FY 2016. These have declined further to US$ 19.8 billion as on September 30, 2017. The decline is attributed to Euro Club loan payments, withdrawal of Chinese government deposit with SBP and other external debt servicing. PSX 100 index ended the nine months at 42,409 points, down 11.3 percent over 47,807 points at December 31, 2016. Technical correction and political uncertainty in the aftermath of the Panama case court decision appears to have weighed down on the index post June 30, 2017. Credit Rating JCR-VIS Credit Rating has maintained the Bank is medium to long term entity rating of 'AA' (Double A) and short term rating of 'A-1+' (A One Plus), with a 'Rating Watch-Developing' status due to the proposed merger of Summit Bank into Sindh Bank and surviving entity being Sindh Bank. IT Initiatives Establishing a robust IT platform has been one of the strategic pillars of the Bank to achieve the key goal of customer convenience and delivery of innovative services. Towards this end, the Bank's Core Banking Software was upgraded with SOA (service-oriented architecture) which will ensure higher availability of system in branches. Further, to facilitate the Bank's increased emphasis in the consumer financing segment, an Auto Loan module has been added to the Core Banking system to improve operating efficiency and ensure efficient service delivery. VISA Debit card in the 'Classic', 'Gold' and 'Platinum' categories have been launched. The card uses EMV (Euro Master Visa) chip technology making it more secure. PayPak Debit Card in 'Classic' and 'Gold' categories have also been launched. PayPak is Pakistan's first ever domestic payments card which will facilitate local vendors and customers by virtue of lower merchant and issuance fees, besides the savings in the Country's foreign exchange. Debit cards issued by the bank now total 235,877 which include cards issued for BISP, ZAKAT, VISA, UnionPay and PayPak. 05
7. 14 ATMs were added to the Bank 's network during the nine months which totaled 239 at September 30, 2017. The Bank is undertaking an exercise to upgrade its ATMs with Windows 7 operating system and to accept EMV Chip card, improving their security features. More than 170,412 customers are enjoying Sindh Bank's state of the art, SMS banking services. Sindh Bank is ranked 9th amongst Institutions providing utility bill collection services out of a total of 35 participating institutions. Sindh Microfinance Bank Limited Sindh Microfinance Bank Limited (SMFB), a wholly owned subsidiary of Sindh Bank Limited, started its microfinance operations in May 2016 with an aim to promote self-sufficiency and economic development among people especially women who do not have access to the traditional financial services. As a rare example in Microfinance sector, from the very first month of its operations, SMFB has been running a profitable operation with capital and reserves of Rs.792.72 million as at September 30, 2017. In accordance with its mid-term plan, SMFB is focusing on its flagship loan product branded as 'SUJAG AURAT' (which means 'Visionary Woman') which is designed exclusively for women empowerment. However, another product namely "Fisheries Loan" in the category of non-farm Agri loan was also launched in early 2017. With cumulative loan disbursements of over Rs. 373 million, the total outstanding loans as of September 30, 2017 stood at Rs. 245.55 million to 17,360 female borrowers. Due to strict risk control measures, there were no NPLs/Over-dues outstanding as on September 30, 2017. SMFB has Eight (8) functional branches and Thirty One (31) micro-credit centers, mostly in rural and far-flung parts of Sindh, like Mithi, Islamkot, Umarkot, Golarchi, Kunri, Digri, Mirpur Sakro, and other similar areas. SMFB plans to add two more branches (one each in Sakrand & Shahdadpur) and 9 micro-credit centers in various towns of Sindh taking the tally to 10 branches and 40 micro-credit centers by the end of this year. Future Outlook Going forward, the global forecasts project a positive outlook with both growth and international trade picking up in FY18. Based on this assessment coupled with positive domestic policy measures, Pakistan's exports are expected to post gains. Imports on the other hand, albeit at a slower pace, are also expected to grow in line with continuation of CPEC related activities and improving economic growth. The process of potential amalgamation/merger of Summit Bank into Sindh Bank is on track and subject to required corporate and regulatory approvals is expected to be completed during this quarter. The Bank continues to pursue a comprehensive strategy for increasing business, net Interest/markup margins and fee based income and improving profitability of established branches. 40 branches are planned to be opened before end of December 2017 in any case, thereby expanding the Bank's network to 300 online branches. Acknowledgements On behalf of the Board of Directors, I would like to sincerely thank the regulators, shareholders and customers for their continued guidance, support and confidence reposed in the Bank and its Management. My thanks to the staff of Sindh Bank whose team spirit, hard work and commitment has enabled the Bank to achieve excellent results in a short span of about 6 years. I am hopeful that they will continue to serve the Bank with the same zeal and spirit. On behalf of the Board of Directors Tariq Ahsan President/CEO Karachi, October 17, 2017 06
8. 07
9. - 08
10. 09
11. 10
12. 11
13. 12
14. Unconsolidated Condensed Interim Statement of Financial Position as at September 30 , 2017 September 30, December 31, 2017 2016 (Un-audited) (Audited) Note ASSETS Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments - net Advances - net Operating fixed assets Deferred tax assets - net Other assets 6 7 8 9 10 11 12 ------ (Rupees in ‘000) -----7,818,916 1,037,339 2,359,867 97,732,251 62,772,140 1,615,573 1,473,502 3,354,299 178,163,887 7,500,675 791,478 6,938,610 71,539,737 51,833,182 1,825,483 1,190,485 4,735,723 146,355,373 893,702 29,262,032 129,977,787 1,891,232 162,024,753 714,212 8,910,738 119,022,240 2,177,298 130,824,488 16,139,134 15,530,885 10,010,130 1,412,316 5,031,926 16,454,372 (315,238) 10,010,130 1,200,812 4,185,911 15,396,853 134,032 16,139,134 15,530,885 LIABILITIES Bills payable Borrowings from financial institutions Deposits and other accounts Sub-ordinated loans Liabilities against assets subject to finance lease Deferred tax liability Other liabilities 13 14 15 NET ASSETS REPRESENTED BY: Share capital Reserves Unappropriated profit 16 (Deficit)/Surplus on revaluation of assets - net of tax 17 CONTINGENCIES AND COMMITMENTS 18 The annexed notes from 1 to 30 form an integral part of this unconsolidated condensed interim financial information. President & Chief Executive Officer Chairman Director Director 13
15. Unconsolidated Condensed Interim Profit and Loss Account (Un-audited) For the Nine months and Quarter ended September 30, 2017 Nine months ended Quarter ended September 30, September 30, September 30, September 30, 2017 2016 2017 2016 Note ------------------ (Rupees in ‘000) -----------------Mark-up / return / interest earned Mark-up / return / interest expensed Net mark-up / return / interest income Provision against non-performing loans and advances Provision against advances - general Provision against consumer and small enterprise advances Provision for diminution in the value of investments Bad debts written off directly 19 20 8,312,354 4,469,820 3,842,534 7,247,049 4,048,893 3,198,156 3,012,473 1,649,806 1,362,667 2,326,184 1,206,116 1,120,068 10.4 74,293 - 95,643 1,500,000 4,353 - 3,354 500,000 10.4 567 452 274 263 74,860 1,596,095 4,627 503,617 3,767,674 1,602,061 1,358,040 616,451 337,687 110,889 87,185 699,991 271,285 107,433 42,123 2,616,283 87,600 26,753 42,255 862 69,394 44,632 12,114 786,925 8,310 1,244,062 5,011,736 3,862 3,040,986 4,643,047 554 158,024 1,516,064 1,383 914,448 1,530,899 3,141,871 68 3,141,939 1,869,797 1,869,797 2,866,756 515 2,867,271 1,775,776 1,775,776 1,046,681 1,046,681 469,383 469,383 969,803 492 970,295 560,604 560,604 693,043 160,336 (41,101) 812,278 1,174,017 184,845 (550,245) 808,617 176,509 (12,204) 164,305 380,762 (182,398) 198,364 1,057,519 967,159 305,078 362,240 1.06 0.97 0.30 0.36 Net mark-up / return / interest income after provisions NON MARK-UP / INTEREST INCOME Fee, commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale / redemption of securities - net Unrealised gain on revaluation of investments classified as held-for-trading Other income Total non mark-up / interest income NON MARK-UP / INTEREST EXPENSES Administrative expenses Other provisions / write-offs Other charges Total non mark-up / interest expenses 21 22 Extraordinary / unusual items PROFIT BEFORE TAXATION Taxation - Current - Prior years - Deferred PROFIT AFTER TAXATION Basic and diluted earnings per share (Rupee) 23 The annexed notes from 1 to 30 form an integral part of this unconsolidated condensed interim financial information. President & Chief Executive Officer 14 Chairman Director Director
16. Unconsolidated Condensed Interim Statement of Comprehensive Income (Un-audited) For the Nine months and Quarter ended September 30, 2017 Nine months ended Quarter ended September 30, September 30, September 30, September 30, 2017 2016 2017 2016 ------------------ (Rupees in ‘000) -----------------Profit after taxation for the period 1,057,519 967,159 305,078 362,240 Other comprehensive income Components of comprehensive income reflected in equity Items that will be reclassified subsequently to profit and loss account - - - - Items that will not be reclassified subsequently to profit and loss account - - - - Total comprehensive income for the period transferred to equity 1,057,519 967,159 305,078 362,240 (691,184) 241,914 (449,270) 1,026,324 (359,213) 667,111 (1,011,608) 354,063 (657,545) (426,592) 149,308 (277,284) 608,249 1,634,270 (352,467) 84,956 Components of comprehensive income reflected below equity Items that will be reclassified subsequently to profit and loss account : (Deficit) / Surplus on revaluation of investments Related tax effects Total comprehensive income The annexed notes from 1 to 30 form an integral part of this unconsolidated condensed interim financial information. President & Chief Executive Officer Chairman Director Director 15
17. Unconsolidated Condensed Interim Statement of Cash Flows (Un-audited) For the Nine months ended September 30, 2017 Note CASH FLOWS FROM OPERATING ACTIVITIES Profit before taxation Less: Dividend income Adjustments for: Depreciation Amortization Provision against non-performing advances - net Provision against advances - general Provision against consumer & small enterprise advances Gain on disposal of operating fixed assets (Increase) / decrease in operating assets Lendings to financial institutions Advances - net Other assets (excluding advance taxation) Increase / (decrease) in operating liabilities Bills payable Borrowings Deposits and other accounts Other liabilities (excluding current taxation) Income tax paid Net cash flows generated from / (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES Net investment in available-for-sale securities Net investment in held-to-maturity securities Dividend income received Investment in operating fixed assets Sale proceeds from disposal of operating fixed assets Net cash flows (used in) / generated from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Issuance of share capital Increase in cash and cash equivalents Cash and cash equivalents at beginning of the period Cash and cash equivalents at end of the period 24 September September 30, 2017 30, 2016 ------ (Rupees in ‘000) -----1,869,797 (110,889) 1,758,908 1,775,776 (107,433) 1,668,343 267,098 22,052 74,293 567 (2,934) 361,076 2,119,984 281,372 23,192 95,643 1,500,000 452 (798) 1,899,861 3,568,204 4,578,743 (11,013,818) 1,407,584 (5,027,491) 56,607 (5,052,567) 1,131,436 (3,864,524) 179,490 20,351,294 10,955,547 (430,470) 31,055,861 28,148,354 (708,976) 27,439,378 222,323 (20,094,248) 18,680,135 (368,724) (1,560,514) (1,856,834) (1,291,565) (3,148,399) (16,914,090) (9,969,609) 84,729 (80,980) 4,674 (26,875,276) 3,620,454 339,831 107,433 (249,678) 12,663 3,830,703 564,102 8,292,153 8,856,255 10,181 692,485 6,383,687 7,076,172 The annexed notes from 1 to 30 form an integral part of this unconsolidated condensed interim financial information. President & Chief Executive Officer 16 Chairman Director Director
18. Unconsolidated Condensed Interim Statement of Changes in Equity (Un-audited) For the Nine months ended September 30, 2017 Share capital Reserves Capital Share Statutory Premium Reserve * Revenue Unappropriated Profit** Total -------------------------(Rupees in ‘000)------------------------Balance as at 1 January 2016 Comprehensive Income Profit after taxation for the nine months ended September 30, 2016 Other comprehensive income Transfers Transfer to statutory reserve Shares issued during the period under pre-IPO Balance as at September 30, 2016 Comprehensive Income Profit after taxation for the three months ended 31 December 2016 Other comprehensive loss Transfers Transfer to statutory reserve Balance as at 31 December 2016 Comprehensive Income Profit after taxation for the nine months ended September 30, 2017 Other Comprehensive income Transfers Transfer to statutory reserve Balance as at September 30, 2017 10,000,000 - - - 51 10,010,130 51 - - - 51 - - - - 10,010,130 193,432 10,130 10,010,130 922,596 51 3,076,915 13,999,511 967,159 967,159 967,159 967,159 (193,432) 1,116,028 - - 10,181 3,850,642 14,976,851 423,667 (3,665) 420,002 423,667 (3,665) 420,002 84,733 (84,733) 1,200,761 4,185,911 15,396,853 1,057,519 1,057,519 1,057,519 1,057,519 211,504 (211,504) 1,412,265 5,031,926 - 16,454,372 * Statutory reserve represents amount set aside as per the requirements of section 21 of the Banking Companies Ordinance, 1962. ** As more fully explained in note 10.3 of this unconsolidated condensed interim financial information, unappropriated profit includes an amount of Rs.1,155.87 million net of tax as at September 30, 2017 (December 31, 2016: Rs.472.71 million) representing additional profit arising from availing forced sale value benefit for determining provisioning requirement which is not available for the purpose of distribution of dividend to shareholders. The annexed notes from 1 to 30 form an integral part of this unconsolidated condensed interim financial information. President & Chief Executive Officer Chairman Director Director 17
19. Notes to and forming part of the Unconsolidated Condensed Interim Financial Information (Un-audited) For the Nine months ended September 30, 2017 1. STATUS AND NATURE OF BUSINESS 1.1 Sindh Bank Limited (the Bank) was incorporated in Pakistan on October 29, 2010 as a public unlisted company and is engaged in Commercial Banking, Corporate and Investment related activities. The Bank operates 260 branches (December 31, 2016: 260) including 8 sub branches (December 31, 2016: 8) and 14 Islamic banking branches (December 31, 2016: 14) in Pakistan. The Bank's registered office is situated at 3rd floor, Federation House, Abdullah Shah Ghazi Road, Clifton, Karachi, Pakistan. 1.2 The Government of Sindh, through its Finance Department owns 99.9% ordinary shares of the Bank. 1.3 JCR –VIS Credit Rating Company Limited has reaffirmed the Bank's medium to long term entity rating of ‘AA’ (Double A) with a 'Rating Watch-Developing' status and short term rating of ‘A-1+’ (A-One plus). 2. STATEMENT OF COMPLIANCE 2.1 This condensed interim unconsolidated financial information of the Bank for the period ended September 30, 2017 has been prepared in accordance with the requirements of the International Accounting Standard 34 - Interim Financial Reporting (IFRS) issued by the International Accounting Standards Board and Islamic Financial Accounting Standards (IFASs) issued by the Institute of Chartered Accountants of Pakistan as are notified under the Companies Ordinance, 1984 (repealed - note 2.2), provisions of the Companies Ordinance, 1984 (repealed - note 2.2), the Banking Companies Ordinance, 1962 and directives issued by the Securities and Exchange Commission of Pakistan (SECP) and the SBP. In case where the requirements differ with the requirements of IFRS or IFAS, the requirements of the Companies Ordinance, 1984 (repealed - note 2.2), the Banking Companies Ordinance, 1962 or the requirements of the said directives shall prevail. 2.2 During the period, the Companies Act, 2017 (the Act) has been promulgated, however, SECP vide its Circular No. 23 dated October 04, 2017, read with its press release of the same date, allowed the companies whose financial year / interim period closes on or before December 31, 2017 to prepare their financial statements in accordance with the provisions of the repealed Companies Ordinance, 1984. The Act does not affect the unconsolidated condensed interim financial information for the period ended September 30, 2017. 2.3 The SBP vide BSD Circular letter No.10, dated August 26, 2002 has deferred the applicability of IAS 39, 'Financial Instruments: Recognition and Measurement' and IAS 40, 'Investment Property' for banking companies till further instructions. Further, according to the notification of the SECP issued vide SRO 411(I)/2008 dated April 28, 2008, International Financial Reporting Standard (IFRS) 7, 'Financial Instruments: Disclosures' has not been made applicable for banks. Accordingly, the requirements of these standards have not been considered in the preparation of this unconsolidated condensed interim financial information. However, investments have been classified and valued in accordance with the requirements of various circulars issued by the SBP. Further, segment information is being disclosed in accordance with SBP’s prescribed format as per BSD circular 4 dated February 17, 2006 which prevails over the requirements specified in IFRS 8. 2.4 The disclosures made in this unconsolidated condensed interim financial information have been limited based on the format prescribed by the SBP vide BSD Circular Letter No.2, dated May 12, 2004, and IAS 34 'Interim Financial Reporting'. They do not include all the disclosures required for annual financial statements and this unconsolidated condensed interim financial information should be read in conjunction with the unconsolidated financial statements of the Bank for the year ended 31 December 2016. 18
20. 2 .5 This unconsolidated condensed interim financial information represents the separate condensed interim financial information of the Bank. The consolidated condensed interim financial information of the Bank and its subsidiary company is presented separately. 3. BASIS OF MEASUREMENT 3.1 This unconsolidated condensed interim financial information has been prepared under the historical cost convention except for certain investments, commitments in respect of foreign exchange contracts and futures contracts which are measured at fair values and certain employee benefits which are measured on present value basis. Items included in this unconsolidated condensed interim financial information are measured using the currency of the Bank's primary economic environment which is Pakistani Rupees and it is the Bank's functional and presentation currency. 4. SIGNIFICANT ACCOUNTING POLICIES AND FINANCIAL RISK MANAGEMENT 4.1 The accounting policies adopted in the preparation of this unconsolidated condensed interim financial information are the same as those applied in the preparation of the annual financial statements of the Bank for the year ended 31 December 2016 other than those if any disclosed below. 4.2 New, amended and revised Standards and Interpretations of IFRSs The Bank has adopted the following standards and amendment to IFRSs which became effective for the current period: Standard or Interpretation IAS 12 Income Taxes – Recognition of Deferred Tax Assets for Unrealized losses (Amendments) The adoption of the above amendments to the accounting standard did not have any effect on the unconsolidated condensed interim financial information. 4.3 The financial risk management objectives and policies are consistent with those disclosed in the annual financial statements of the Bank for the year ended December 31, 2016. 5. ACCOUNTING ESTIMATES AND JUDGEMENTS The accounting estimates and associated assumptions used in the preparation of this unconsolidated condensed interim financial information are consistent with those applied in the preparation of the annual financial statements of the Bank for the year ended December 31, 2016. 19