national bank of bahrain bsc condensed … · condensed statement of financial position 2 ......

Commercial registration: 269 (Licensed by the Central Bank of Bahrain as a conventional retail bank) Board of Directors: Farouk Yousuf Khalil Almoayyed, Chairman Dr. Essam Abdulla Fakhro, Deputy Chairman Fawzi Ahmed Kanoo, Deputy Director Yusuf Abdulla Yousif Akbar Alireza , Director Hala Ali Yateem , Director Khalid Yousif Abdul Rahman, Director Hussain Sultan Al Ghanem , Director Khalid Al Rumaihi, Director Rishi Kapoor, Director Mohamed Tareq Mohamed Sadeq, Director Sh. Rashid Bin Salman Mohamed Al Khalifa, Director Office: PO Box 106, NBB Tower Government Avenue, Manama, Kingdom of Bahrain Telephone 17228800, Fax 17228998 Auditors: KPMG

NATIONAL BANK OF BAHRAIN BSC

CONDENSED INTERIM FINANCIAL INFORMATION

31 March 2018

National Bank of Bahrain BSC

Condensed interim financial information

for the three months ended 31 March 2018

CONTENTS Page Independent auditors’ report on review of condensed interim financial information 1 Condensed interim financial information Condensed statement of financial position 2 Condensed statement of profit or loss 3 Condensed statement of comprehensive income 4 Condensed statement of changes in equity 5-6 Condensed statement of cash flows 7 Notes to the condensed interim financial information 8-18


4

CONDENSED STATEMENT OF COMPREHENSIVE INCOME

for the three months ended 31 March 2018 Bahraini Dinars Millions

Three months ended

31 March 2018

31 March 2017

(reviewed) (reviewed)

Profit for the period 19.74 14.74

Other comprehensive income: Items that are or may be reclassified to profit or loss: Fair value through other comprehensive income (debts instruments) - Net change in fair value (10.58) 11.44 - Net amount transferred to profit or loss (0.03) - Items that will not be reclassified to profit or loss: Fair value through other comprehensive income (equity instruments) 1.05 0.87 Share of other comprehensive income of associates - (0.02)

Total other comprehensive income for the period (9.56) 12.29

Total comprehensive income for the period 10.18 27.03

The condensed interim financial information consists of pages 2 to 18.


5

CONDENSED STATEMENT OF CHANGES IN EQUITY


2018 (reviewed)

Share capital

Shares under

employee share

incentive scheme

Share premium

Statutory reserve

General reserve

Other reserves and retained earnings

Total equity Fair value

reserve

Donation and charity

reserve

Retained earnings

Balance at 31 December 2017 127.54

(1.67)

4.02 63.77 32.40 26.11 16.00 179.77 447.94

Impact of adopting IFRS 9 as at 1 January 2018 (note 3c) - - - - - (14.23) - 9.94 (4.29)

Impact on adopting IFRS 9 by associates - - - - - - - (3.98) (3.98)

Restated Balances at 1 January 2018 127.54 (1.67) 4.02 63.77 32.40 11.88 16.00 185.73 439.67 2017 appropriations: - Cash dividend at 25% - - - - - - - (31.54) (31.54) - Bonus shares issued (10%) 12.76 (0.15) - - (12.76) - - 0.15 - - Transfer to donations and charity - - - - - - 3.05 (3.05) - - Transfer to general reserve - - - - 19.14 - - (19.14) - - Transfer to statutory reserve - - - 6.38 (6.38) - - - -

Balance after 2017 appropriations 140.30

(1.82)

4.02 70.15 32.40 11.88 19.05 132.15 408.13

Shares allocated during the period - 0.30 0.95 - - - - - 1.25

Comprehensive income for the period:

Profit for the period - - - - - - - 19.74 19.74

Other comprehensive income - - - - - (9.56) - - (9.56)

Total comprehensive income for the period -

-

- - - (9.56) - 19.74 10.18

Utilisation of donation and charity reserve - - - - - - (0.50) - (0.50)

Balance at 31 March 2018 140.30

(1.52)

4.97 70.15 32.40 2.32 18.55 151.89 419.06



6

CONDENSED STATEMENT OF CHANGES IN EQUITY


2017 (reviewed)

Share capital

Shares under

employee share

incentive scheme

Share premium

Statutory reserve

General reserve

Other reserves and retained earnings

Total equity Fair value

reserve

Donation and charity reserve

Retained earnings

Balance at 1 January 2017 115.95

(1.64)

2.53 57.98 32.40 25.26 14.66 167.56 414.70

2016 appropriations: - Cash dividend at 25% - - - - - - - (28.65) (28.65) - Bonus shares issued 11.59 (0.14) - - (11.59) - - 0.14 - - Transfer to donations and charity - - - - - - 2.91 (2.91) - - Transfer to general / statutory reserve - - - - 17.38 - - (17.38) - - Transfer to statutory reserve - - - 5.79 (5.79) - - - -

Balance after 2016 appropriations 127.54

(1.78)

2.53 63.77 32.40 25.26 17.57 118.76 386.05

Shares allocated during the period - 0.24 1.53 - - - - - 1.77 Comprehensive income for the period:

Profit for the period - - - - - - - 14.74 14.74

Other comprehensive income - - - - - 12.29 - - 12.29

Total comprehensive income for the period -

-

- - - 12.29 - 14.74 27.03

Utilisation of donation and charity reserve - - - - - - (0.22) - (0.22)

Balance at 31 March 2017 127.54

(1.54)

4.06 63.77 32.40 37.55 17.35 133.50 414.63



7

CONDENSED STATEMENT OF CASH FLOWS


Three months ended

31 March 2018

31 March 2017

(reviewed) (reviewed)

Cash flow from operating activities Profit for the period 19.74 14.74 Adjustments to reconcile net income to net cash from operating activities:

Depreciation 0.50 0.42 Net impairment loss 0.37 4.31 Share of profit of associates (2.16) (1.31)

Profit for the period after adjustments 18.45 18.16

Change in operating assets and liabilities: Balances with central banks (mandatory cash reserve) 6.50 6.25 Treasury bills (11.43) (19.11) Placements with banks and other financial institutions (1.00) 3.46 Loans and advances (44.32) (91.23) Investment securities 0.20 (6.76) Interest receivable and other assets 20.90 4.37 Due to banks and other financial institutions 54.85 (51.88) Borrowings under repurchase agreements (53.36) (17.46) Customers’ deposits (62.78) 54.81 Interest payable and other liabilities (2.35) (9.64)

Net cash used in operating activities (74.34) (109.03)

Cash flow from investing activities Dividend received from associates 0.82 2.28 Purchase of property & equipment, net (0.97) (0.83)

Net cash (used in)/from investing activities (0.15) 1.45

Cash flow from financing activities Dividends paid (26.93) (24.99) Donations and charities paid (0.50) (0.22)

Net cash used in financing activities (27.43) (25.21)

Net decrease in cash and cash equivalents during the period (101.92) (132.79) Cash and cash equivalents at 1 January 195.18 208.86

Cash and cash equivalents at 31 March 93.26 76.07



8

NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION


1. Reporting Entity

National Bank of Bahrain BSC, a public shareholding company, was incorporated in the Kingdom of Bahrain by

an Amiri decree in January 1957. The Bank is licensed by Central Bank of Bahrain as a conventional retail bank.

2. Basis of Preparation and Significant Accounting Policies The accompanying condensed interim financial information is prepared in accordance with IAS 34 - "Interim Financial Reporting" and the applicable provisions of Central Bank of Bahrain Regulations. This condensed interim financial information should be read in conjunction with the 2017 annual financial statements of the Bank, except for the effects of adoption of IFRS 9 and IFRS 15 as described in Note 3 to this condensed interim financial information.

The condensed interim financial information is reviewed, not audited. The comparatives for the condensed

statement of financial position have been extracted from the audited financial statements for the year ended

31 December 2017 and reviewed condensed interim financial information for the three months ended

31 March 2017. The comparatives for the condensed statements of profit or loss, comprehensive income,

changes in equity and cash flows have been extracted from the reviewed condensed interim financial information

for the three months period ended 31 March 2017. This condensed interim financial information does not contain all information and disclosures required for full financial statements prepared in accordance with International Financial Reporting Standards. In addition, results for the three months period ended 31 March 2018 are not necessarily indicative of the results that may be expected for the financial year ending 31 December 2018.

The condensed interim financial information is influenced by accounting policies, assumptions, estimates and

management judgement, which necessarily have to be made in the course of preparation of the condensed

interim financial information. The Bank makes estimates and assumptions that affect the reported amounts of

assets and liabilities. All estimates and assumptions required in conformity with IFRS are best estimates

undertaken in accordance with the application of standards. Actual results may differ from these estimates. The

significant judgements made by management in applying the Bank’s accounting policies and the key sources of

estimation are in accordance with the application of standards and are same as those applied to the audited

financial statements for the year ended 31 December 2017, except for the changes arising on adoption of IFRS 9

(Note 3a).

The Bank’s financial risk management objectives and policies are consistent with those disclosed in the audited

financial statements for the year ended 31 December 2017, except for the changes arising on adoption of IFRS 9

(Note 3b).

3. Adoption of new accounting standards

The Bank has adopted IFRS 9 as issued by the IASB in July 2014 with a date of transition of 1 January 2018, which resulted in changes in accounting policies and adjustments to the amounts previously recognised in the financial statements as of and for the year ended 31 December 2017. As permitted by the transitional provisions of IFRS 9, the Bank elected not to restate comparative figures. Any adjustments to the carrying amounts of financial assets and liabilities at the date of transition were recognised in the opening retained earnings and the opening balance of fair value reserve of the current period. The adoption of IFRS 9 has resulted in changes in the accounting policies for recognition, classification and measurement of financial assets and financial liabilities and impairment of financial assets. IFRS 9 also significantly amends other standards dealing with financial instruments such as IFRS 7 ‘Financial Instruments: Disclosures’. The Bank has adopted IFRS 15 – Revenue from contracts with customers on 1 January 2018. The Bank did not have a significant impact on its financial statements from adoption of this standard. Set out below are the details of the specific IFRS 9 accounting policies applied in the current period and IFRS 9 transition impact disclosures for the Bank.


9



3. Adoption of new accounting standards (continued) (a) Changes in Accounting Policies The key changes to the Bank’s accounting policies resulting from the adoption of IFRS 9 are summarised below. Since the comparative financial information has not been restated, the accounting policies in respect of the financial instruments for comparative periods are based on IAS 39 as disclosed in the audited financial statements as of and for the year ended 31 December 2017.

Classification of financial assets and financial liabilities IFRS 9 contains three principal classification categories for financial assets: measured at amortised cost (AC), fair value through other comprehensive income (FVOCI) and fair value through profit or loss (FVTPL). IFRS 9 classification is generally based on the business model in which a financial asset is managed and its contractual cash flows. The standard eliminates the existing IAS 39 categories of held-for-trading, held-to-maturity, available-for-sale and loans and receivables. IFRS 9 removes the requirement contained in IAS 39 relating to bifurcation of an embedded derivative from an asset host contract. However, entities are still required to separate derivatives embedded in financial liabilities where they are not closely related to the host contract. IFRS 9 largely retains the existing requirements in IAS 39 for the classification of financial liabilities with the exception of the treatment of the bank’s own credit gains and losses, which arise where a bank has chosen to measure a liability at fair value through profit or loss, these gains and losses are recognised in other comprehensive income. There continue to be two measurement categories for financial liabilities: fair value and amortised cost.

Impairment of financial assets IFRS 9 replaces the ‘incurred loss’ model in IAS 39 with an ‘expected credit loss’ (“ECL”) model. The new impairment model also applies to certain loan commitments and financial guarantee contracts but not to equity investments.

The Bank applies a three-stage approach to measuring ECL on financial assets carried at amortised cost and debt instruments classified as FVOCI. Assets migrate through the following three stages based on the change in credit quality since initial recognition.

Stage 1: 12-months ECL Stage 1 includes financial assets on initial recognition and that do not have a significant increase in credit risk since initial recognition or that have low credit risk. 12-month ECL is the expected credit losses that result from default events that are possible within 12 months after the reporting date. It is not the expected cash shortfalls over the 12-month period but the entire credit loss on an asset weighted by the probability that the loss will occur in the next 12-months.

Stage 2: Lifetime ECL - not credit impaired Stage 2 includes financial assets that have had a significant increase in credit risk since initial recognition but that do not have objective evidence of impairment. For these assets, lifetime ECL are recognised. Lifetime ECL are the expected credit losses that result from all possible default events over the expected life of the financial instrument. Expected credit losses are the weighted average credit losses with the life-time probability of default (‘PD’).

Stage 3: Lifetime ECL - credit impaired Stage 3 includes financial assets that have objective evidence of impairment at the reporting date in accordance with the indicators specified in the CBB’s rule book. For these assets, lifetime ECL is recognised.


10



3. Adoption of new accounting standards (continued) (a) Changes in Accounting Policies (continued) Hedge accounting At inception of the hedging relationship, the management undertakes a formal designation and documentation. This includes the Bank's risk management objective underlying, the hedging relationship and how that fits within the overall risk management strategy. The documentation also includes an identification of the hedging instrument, the hedged item, the nature of the risk being hedged and how the entity will assess whether the hedging relationship meets the hedge effectiveness requirements. IFRS 9 also requires documentation of the hedge ratio and potential sources of ineffectiveness. (b) Changes to the Significant Estimates and Judgements

Financial asset and liability classification Assessment of the business model within which the assets are held and assessment of whether the contractual terms of the financial asset are solely payments of principal and interest on the principal amount outstanding.

Impairment of financial instruments Assessment of whether credit risk on the financial asset has increased significantly since initial recognition and incorporation of forward-looking information in the measurement of ECL. Inputs, assumptions and techniques used for estimating impairment Credit risk grades The Bank has an internal credit rating model that uses qualitative and quantitative factors that are indicative of risk of default. These factors vary depending on the nature of the exposure and the type of borrower. The credit grades are calibrated such that the risk of default increases at each higher risk grade. Exposures are subject to ongoing monitoring, which may result in an exposure being moved to a different credit risk grade. The Bank also uses external credit ratings for certain exposures.

Significant increase in credit risk

When determining whether the risk of default on a financial instrument has increased significantly since initial recognition, the Bank considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Bank’s historical experience and expert credit assessment and including forward-looking information. In determining whether credit risk has increased significantly since initial recognition following criteria's are considered: I. Downgrade in risk rating according to the approved ECL policy II. Facilities restructured during previous twelve months III. Facilities overdue by 30 days as at the reporting date subject to rebuttal in deserving circumstances

Measurement of expected credit losses The estimation of credit exposure for risk management purposes is complex and requires the use of models, as the exposure varies with changes in market conditions, expected cash flows and the passage of time. The assessment of credit risk of a portfolio of assets entails further estimations as to the likelihood of defaults occurring, of the associated loss ratios and of default correlations between counterparties. The Bank measures expected credit loss using Probability of Default (PD), Exposure at Default (EAD) and Loss Given Default (LGD). The Bank employs statistical models to analyse the data collected and generate estimates of PD of exposures and how these are expected to change as a result of the passage of time. This analysis includes the identification and calibration of relationships between changes in default rates and changes in key macro-economic factors, across various geographies in which the Bank has exposures. LGD is the magnitude of the likely loss if there is a default. The Bank estimates LGD parameters based on the history of recovery rates of claims against defaulted counterparties. The LGD models consider the forecasted collateral value and the associated recovery cost.


11



3. Adoption of new accounting standards (continued)

(c) Impact of adopting IFRS 9

The impact from the adoption of IFRS 9 as at 1 January 2018 has resulted in increase in retained earnings by BD 5.96 million and decrease in the fair value reserve by BD 14.23 million: BD 000’s

Retained earnings

Fair value reserve

Closing balance under IAS 39 (31 December 2017) 179,771 26,115 Impact on reclassification and remeasurements: Investment securities (equity) from available-for-sale to those measured at fair value through other comprehensive income

14,234 (14,234)

194,005 11,881

Impact on recognition of expected credit losses Placements with banks and other financial institutions (34) - Investment securities - (Debt) at fair value through other comprehensive income

(1,546) -

Loans and advances 335 - Loan commitments and financial guarantees (3,044) -

(4,289) -

Impact of adopting IFRS 9 by associates (3,982)

Opening balance under IFRS 9 on date of initial application of 1 January 2018 185,734 11,881


12




(d) Classification and Measurement of Financial Instruments

The Bank performed a detailed analysis of its business models for managing financial assets as well as analysing their cash f low characteristics. The below table reconciles the original measurement categories and carrying amounts of financial assets in accordance with IAS 39 and the new measurement categories under IFRS 9 as at 1 January 2018.

BD 000’s

Impact of IFRS 9

Original classification under IAS 39

New classification under IFRS 9

Original carrying amount

Re-measurement

Reclassification New carrying amount

Financial assets Cash and balances with central banks

Loans and receivables Amortised cost 107,039 - - 107,039

Treasury bills Held-to-maturity Amortised cost 419,923 - - 419,923 Placements with banks and other financial institutions

Loans and receivables Amortised cost 174,009 (34) - 173,975

Loans and advances Loans and receivables Amortised cost 1,226,850 335 - 1,227,185 Investment securities 1,067,300 (1,546) - 1,065,754

Debt securities Available-for-sale FVOCI 1,017,908 (1,546) - 1,016,362 Equity securities Held-for-trading FVTPL 249 - - 249

Equity securities Available-for-sale FVOCI 49,143 - - 49,143

Interest receivable and other assets

Loans and receivables Amortised cost 41,795 - - 41,795

3,036,916 (1,245) - 3,035,671

ECL on loan commitments and financial guarantees is captured under other liabilities and amounts to BD 3.04 million.


13




(e) Expected credit loss / impairment allowances

The following table reconciles the closing impairment allowance for financial assets in accordance with IAS 39 as at 31 December 2017 to the opening ECL allowance determined in accordance with IFRS 9 as at 1 January 2018.

BD 000’s

31 December 2017

Re-measurement

1 January 2018

Loans and advances 42,727 (335) 42,392 Available-for-sale debt securities under IAS 39/debt securities at FVOCI under IFRS 9 - 1,546 1,546 Placements with banks and other financial institutions - 34 34 Loan commitments and financial guarantees - 3,044 3,044

42,727 4,289 47,016

(f) ECL impact on exposure as at 1 January 2018

BD 000’s

Stage 1 Stage 2 Stage 3 Total

Exposure subject to ECL 1 January 2018

Loans and advances 1,151,038 29,852 88,688 1,269,578 Treasury bills 419,923 - - 419,923 Investment securities (Debt) 1,017,908 - - 1,017,908 Due from banks, central banks and other financial assets

174,006 3 - 174,009

2,762,875 29,855 88,688 2,881,418 ECL as of 1 January 2018

Loans and Advances 9,372 1,587 31,433 42,392 Treasury Bills - - - - Investment securities (Debt) 1,546 - - 1,546 Due from banks, central banks and other financial assets

34 - - 34

10,952 1,587 31,433 43,972

Net exposure as at 1 January 2018

Loans and advances 1,141,666 28,265 57,255 1,227,186 Treasury bills 419,923 - - 419,923 Investment securities (Debt) 1,016,362 - - 1,016,362 Due from banks, central banks and other financial assets

173,972 3 - 173,975

2,751,923 28,268 57,255 2,837,446

ECL on loan commitments and financial guarantees is captured under other liabilities and amounts to BD 3.04 million.

4. Seasonality

For three months ended 31 March 2018, other income includes BD 2.78 million (31 March 2017: BD 2.65 million)

of dividends received from the Bank's investments in equity securities. This income is of a seasonal nature.

5. Related Parties

Certain related parties (major shareholders, directors of the Bank and their families and companies of which they

are principal owners, and key management personnel) were customers of the Bank in the ordinary course of

business. The transactions with these parties were made on an arm's length basis.


14



6. Appropriations

At the annual ordinary general meeting for the year 2017, which was held on 7 March 2018, certain

appropriations were approved and effected during the period. These appropriations include BD 31.89 million

(BD 31.54 million excluding dividends on un allocated shares under employee share incentive scheme) for cash

dividend at 25%, BD 3.05 million for donations and contributions, transfer of BD 19.14 million from retained

earnings to general reserve, increase in paid up capital due to a one for ten bonus issue through utilization of

BD 12.76 million from general reserve and transfer of BD 6.38 million from general reserve to statutory reserve.

7. Loans and advances

(a) Exposure by staging

31 March 2018

BD 000’s


Loans and advances 1,193,148 25,034 95,439 1,313,621

Less: expected credit loss (10,646) (2,094) (30,664) (43,404)

Net loans and advances 1,182,502 22,940 64,775 1,270,217

1 January 2018

BD 000’s


Loans and advances 1,151,038 29,852 88,688 1,269,578

Less: expected credit loss (9,372) (1,587) (31,433) (42,392)

Net loans and advances 1,141,666 28,265 57,255 1,227,186

(b) Expected credit loss movement

BD 000’s


Expected credit loss as 1 January 2018 9,372 1,587 31,433 42,392

Net transfer between stages (18) 18 - -

Write off during the period - - (224) (224)

Charge for the period (net) 1,292 489 (545) 1,236

Expected credit loss as 31 March 2018 10,646 2,094 30,664 43,404

8. Net impairment loss

BD 000’s

31 March 2018

31 March 2017

Placements with banks and other financial institutions (13) - Investment securities – (Debt) at fair value through other comprehensive income (41) - Loans and advances 1,236 4,310 Loan commitments and guarantees (816) -

Total 366 4,310


15



9. Employee Share Incentive Scheme

During the period, as part of the Employee Share Incentive Scheme, the Bank has allocated ordinary shares with a nominal value of BD 0.18 million to the

employees under this scheme, which has resulted in share premium of BD 0.95 million. Unallocated shares under the scheme are deducted from equity. The

allocated shares under the scheme are entitled to cash & stock dividends.

10. Contingent Liabilities and Banking Commitments

31 March 2018

31 December 2017

31 March 2017

(reviewed) (audited) (reviewed)

Contingent liabilities

Letters of credits 31.00 33.56 29.48

Guarantees 169.90 165.91 158.23

Sub-total 200.90 199.47 187.71

Banking commitments

Undrawn loan commitments 46.76 82.88 105.57

Forward commitments 107.05 8.00 18.80

Interest rate contracts 614.19 651.28 594.00

Foreign exchange contracts 797.98 784.33 771.67

Sub-total 1,565.98 1,526.49 1,490.04

Total 1,766.88 1,725.96 1,677.75


16



11. Operating Segment Information (reviewed)

Retail, Commercial &

SMEs

Corporate, Institutional &

Investment Banking

Overseas Branches Treasury, Capital Market & Wealth

Management

Total

31 March 2018

31 March 2017

31 March 2018

31 March 2017

31 March 2018

31 March 2017

31 March 2018

31 March 2017

31 March 2018

31 March 2017

External revenue 8.95 8.26 6.32 4.87 0.79 0.65 22.31 19.63 38.37 33.41

External expense (3.14) (2.44) (2.75) (2.54) (0.04) (0.08) (2.32) (1.64) (8.25) (6.70)

Inter-segment interest income / (expense) 5.66 3.81 1.49 1.36 - - (7.15) (5.17) - -

Total revenue 11.47 9.63 5.06 3.69 0.75 0.57 12.84 12.82 30.12 26.71

Result 6.34 5.94 2.89 (2.44) (0.29) 0.02 11.79 11.87 20.73 15.39

Unallocated corporate expenses (0.99) (0.65)

Profit for the period 19.74 14.74

12. Fair Value Hierarchy

The Bank measures fair values of financial instruments using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements.

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Valuation techniques based on observable inputs, either directly (i.e. as prices) or indirectly (i.e. derived from prices). This category includes instruments valued using quoted market prices in active markets for similar instruments; quoted prices for identical or similar instruments in markets that are considered less than active; or other valuation techniques where all significant inputs are directly observable from market data.

Level 3: Valuation techniques using significant unobservable inputs. This category includes all instruments where the valuation technique includes input not based on observable data and the unobservable inputs have a significant effect on the instrument’s valuation.

The fair value of financial assets and liabilities other than those disclosed below approximate their carrying value.


17



15. Fair Value Hierarchy (continued)

The table below analyses financial assets and liabilities carried at fair value, by valuation method. BD 000’s BD 000’s

Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total

31 March 2018 31 December 2017

Financial assets fair value through profit or loss – Managed Funds - 256 - 256 - 249 - 249

Fair value through other comprehensive income financial assets:

Debt securities* 303,094 688,055 - 991,149 332,463 685,445 - 1,017,908

Equity securities 39,200 - 10,990 50,190 38,274 - 10,869 49,143

Derivative financial assets - 2,980 - 2,980 - 4,179 - 4,179

Total 342,294 691,291 10,990 1,044,575 370,737 689,873 10,869 1,071,479

Derivative financial liabilities - 922 - 922 - 1,115 - 1,115

* Balances are gross of expected credit loss which accounts for BD 1.5 million as at 31 March 2018.


18



15. Fair Value Hierarchy (continued) The following table analyses the movement in level 3 financial assets during the period. There are no transfers between level 1, level 2 and level 3 of the fair value hierarchy: BD 000’s

Available-for-sale financial

assets

2018 2017

At 1 January 10,869 10,332

Total gains / (losses):

in income statement - -

in retained earning - -

in other comprehensive income 121 537

Purchases - -

Settlements - -

Transfers out of level 3 - -

At 31 March 10,990 10,869

Total loss for the period included in income statement for assets/liabilities held at 31 March - -

Level 3 comprises unquoted equity investments classified as fair value through other comprehensive income which are measured at their net asset values based on the latest financial statements issued by the investee. Sensitivity analysis of the movement in fair value of the financial instruments in the level 3 category financial assets are assessed as not significant to the other comprehensive income and total equity.

national bank of bahrain bsc condensed … · condensed statement of financial position 2 ......

Documents