for the year ending december 31, 2012 - housing bank algeria annual... · 2016-02-28 · 10th board...
TRANSCRIPT
10th Board of Directors Report For the Year Ending December 31, 2012
Head Office16, rue Ahmed Ouaked, Dély Ibrahim - AlgerTel : (+213) 21 91 88 81 Fax : (+213) 21 91 80 [email protected]
2
Annual Report 2012
Contents
Board of Directors 3
Chairman’s Statement 4
Main Shareholders 5
Executive Management 6
Algerian Economy 8
The Bank’s Financial Performance 9
Financial Statements 11
Organizational Structure 18
Addresses of Departments 19
Addresses of Branches 20
3
H.E. Dr. Michel MartoChairman of the Board of Directors
Mr. Adel Abdalla Saudi Vice Chairman
Mr. Mohammad Saad Al Munai�
Mr. Mohamed Mohamed Ben Yousef
Mr. Mohyeddin EL Ali
Mr. Kamal Mahmoud Alkallai
Board of Directors
4
Chairman’s Statement
To Our Shareholders:
On behalf of the Board of Directors, I am honoured to present the Housing Bank for Trade and Finance / Algeria (HBTF / Algeria) 2012 Annual Report, including our achievements and financial results, noting that the Bank complies with all applicable rules and regulations.
2012 was another eventful year. With problems in the Euro zone, the turbulence in Arab region and the rise in oil prices, all resulted in significant uncertainties which might have indirectly affected the overall performance of the Algerian economy in general.
As a result real GDP grew in 2012 only by 2.5% , public debt decreased, and the foreign currency reserves at the Bank of Algeria increased.
The Bank’s Financial Performance
HBTF / Algeria achieved better financial results in 2012. Pretax net profit grew to DZD2 billion (US$25.9 million) whereas after tax net profit grew to DZD1.4 billion (US$18.5 million).
The balance sheet reflects the financial strength and sound position. Total assets increased to DZD40.6 billion, customers’ deposits increased to DZD17.3 billion, credit portfolio grew to DZD11.8 billion.
The result of these developments had a positive effect on some of the Bank’s key performance indicators. Return on assets was 4.1%, return on equity grew to 11.3%, loan to deposit ratio was 68.2%, and cost to income ratio dropped from 28% in 2011 to 25.1% in 2012. The NPLs ratio improved from 5.5% to 4.5%.
Despite the fact that the results were excellent, the Board of Directors recommended to the Shareholders’ General Assembly not to distribute profits in 2012 in order to strengthen Shareholders’ equity and reinforce the Bank’s own financial capabilities.
Gratitude
I would like to take this opportunity to thank the Bank of Algeria for their support of the banking sector.
I would also like to thank our shareholders and our clients. Special thanks to the members of the Board, and the Bank’s staff and management team for their hard work and dedication.
Respectfully,
Dr. Michel Marto
Chairman of the Board
5
Main Shareholders As on 31/12/2012
Shareholders No. of Shares %
The Housing Bank for Trade & Finance - Jordan 6,117,075 61.17%
Capital Investment Holding Company - Bahrain 2,382,925 23.83%
Libyan Arab Foreign Investment Holding Company - Algeria 1,500,000 15.0%
Total 10,000,000 100.0%
The Bank’s Shareholders
-Paid in Capital : DZD 10 000 000 000.-Share Nominal Value: DZD 1000.
15 %
61.17%23.83%
The Housing Bank for Trade & Finance - JordanCapital Investment Holding Company - BahrainLibyan Arab Foreign Investment Holding Company - Algeria
6
Executive Management
Mr. Houcine Hannachi General Manager
Mr. Abdelaziz Ancer Deputy General Manager
Mr. Koreich El-Kassab Financial Manager
Mr. Iyad Attalah Taha Credit Manager
Mr.Sid Ali Guemmat IT Manager
Mr. Ahmed Djida Audit Manager
Miss Souad Benabdelmoumen Legal Manager
Mr. El Mahdi Ourabia Human Resources Manager
Mr. Abdelhakim Chine Foreign Operations Manager
Mr. Azzedine Djoudar Logistics and Security Manager
Mr. Mohamed Hacid Compliance and Procedures Manager
Mr. Boualem Bioud Branches Network Manager
Mr. Ahmed Snouci Commercial Manager
Mr. Yacine Chemlal Risk Manager
Mr. Nabil Zikara Leasing Manager
Mr.Boubaker Arrouch Islamic Banking Manager
Mr.Abdelhadi Benkaci Head of IT Security
8
Algerian EconomyGeneral Information
Area: 2381741 sq.KmPopulation: 35 millionCapital: AlgiersOther main cities: Oran, Constantine, Annaba, Sétif, and Béjaia .
Economic Position
Economic Growth
Despite political and economic challenges in the neighbour countries and the world, Algeria’s economy has performed well over the year 2012. Real Gross Domestic Product (GDP) grew by 2.5% during 2012, and is expected to reach 3.4% in 2013.Inflation
Inflation, as measured by the percentage change in the CPI, increased to 8.9% during 2012, compared to 4.5% during 2011.External Debt
Outstanding balance of external public debt decreased by 20.5% at the end of 2012 compared to its level at the end of 2011, amounting to DZD3.5 billion. Foreign reserves
Foreign reserves increased at the end of 2012 by 4.7% to reach US$190.7 billion compared to US$182.2 billion at the end of 2011. This level of reserves covers around 39 months of imports of goods and services.Trade Balance
Despite the slight decline in oil exports during 2012, oil revenues reached US$70.6 billion. Meanwhile non-oil exports showed relative stability, recording US$1.22 billion in 2012 compared to US$1.23 billion in 2011. Imports saw a rise of 7.5% compared to 2011 ( i,e US$48.3 billion) mainly concentrated on cars imports. Banking Sector
The outstanding balance of credit facilities extended by banks increased by 15.3% at the end of 2012, compared to its level at the end of 2011, standing at DZD4297.5 billion. Credit facilities to the private sector increased from DZD1683.2 billion at the end of 2011 to DZD1949.2 billion at the end of 2012.
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The Bank’s Financial Performance
Operations Results
During 2012, the Bank was able to achieve net profits before tax amounting to DZD2017.3 million, an increase of DZD498.1 million or 33% over 2011; whilst net profits after tax amounted to DZD1440.5 million, an increase of DZD351.2 million or 32% over the previous year. This growth in profits asserts the Bank’s capability to invest its funds with high competency and in line with the strategy it pursues through activating the long term banking relations with its customers, developing business with them and attracting more new customers from various targeted economic sectors.
The details of the operating results achieved by the Bank during 2012 are as follows:
• NetincomeincreasedfromDZD2.5billionduring2011toDZD3.1billionduring2012,anincreaseofDZD556 million or 22%.
• NetinterestincomeincreasedfromDZD703millionduring2011toDZD845millionduring2012,anincrease of DZD142 million or 20%.
• NetcommissionincomeincreasedfromDZD1.1billionduring2011toDZD1.3billionduring2012,anincrease of DZD230 million or 21%.
Profits2.5
2.0
1.5
1.0
0.5
2010 2011 20120.0
2010 2011 2012
Profit after Income Tax Profit before Income Tax
DZD billion
1.4
0.7
1.5
2.0
1.1
0.5
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Financial Position
The Bank’s assets grew by DZD10.3 billion or 34% since the end of 2011 to reach DZD40.6 billion at the end of 2012. Such increase has been achieved as a result of increase in the customers’ deposits and increase credit portfolio. It is worth mentioning in this context that the Bank retains a balanced combination of fund sources and the uses thereof within its liquidity management system.
Customers‘ Deposits
During 2012, the balance of Customers’ deposits with the Bank increased by DZD5.3 billion, or 44% from the balance at the end of 2011 to reach DZD17.3 billion at the end of 2012.
Credit Portfolio
The credit portfolio increased by DZD1.9 billion or 19% from the end of 2011 to reach DZD11.8 billion at the end of 2012. It is worth mentioning in this context that the off balance sheet commitments witnessed a significant increase in both outward L/Cs and L/Gs.
The NPLs ratio decreased by one p.p to reach 4.5% at the end of 2012.
0
10
20
30
40
5
15
25
35
45DZD billion
Credit Portfolio Customers’ Deposits Assets
0
10
20
30
4040.6
30.3
25.0
17.3
12.110.3
11.8
2010 2011 2012
9.9
6.35
15
25
35
45 Major Financial Indicators
11
Financial Statements
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Balance Sheet DZD
Item 2012 2011Assets
1 Cash and balances with central banks 5,458,155,475 2,738,872,430 2 Financial assets held for trading - - 3 Financial assets available for sale - -4 Financial institutions’ credit facilities 17,143,040,872 14,189,689,1805 Customers’ credit facilities 11,816,047,545 9,923,603,8676 Financial assets held to maturity - -7 Current tax assets 395,332,194 199,116,4918 Deferred tax assets - -9 Other assets 4,923,994,911 2,719,552,08010 Adjustment accounts 286,171,129 17,306,19211 Other participations 15,675,000 15,675,00012 Real estate - -13 Property and equipment 495,540,837 478,336,53614 Intangible assets 16,378,199 3,182,23315 Acquistion variation - -
Total Assets 40,550,336,160 30,285,334,009
Liabilities1 Cash and balances with central banks - -2 Financial institutions’ deposits 8,284,914 -3 Customers’ deposits 17,320,067,801 12,062,381,5984 Securities 736,004,654 819,931,6625 Current tax liabilities 669,217,293 508,573,6676 Deferred tax liabilities - -7 Other liabilities 9,046,992,512 5,002,536,3678 Adjustment accounts 20,905,808 140,822,2239 Provisions for risks and expenses 6,599,396 -10 Investments subsidiary - -11 General banking risks reserve 779,262,239 517,113,01612 Subordinated debts - -13 Paid-in capital 10,000,000,000 10,000,000,00014 Premium linked to capital - -15 Reserves 91,705,524 37,238,57116 Cumulative change in fair value - -17 Cumulative change unfair value - -18 Results of previous years 430,776,001 107,397,85719 Profit for the year 1,440,520,019 1,089,339,048
Total Liabilities 40,550,336,160 30,285,334,009
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Income StatementDZD
Item 2012 2011
1 Interest and assimilated revenues 877,684,036 742,475,324
2 Interest and assimilated expenses 33,080,504 38,955,601
3 Commission revenues 1,479,388,962 1,194,374,353
4 Commission expenses 172,554,639 118,051,114
5 Net gains (losses) from financial assets held for trading - -
6 Net gains (losses) from financial assets available-for-sale - -
7 Other operating revenues 917,032,317 735,056,454
8 Other operating expenses 6,705,176 8,823,520
9 Net income 3,061,764,996 2,506,075,895
10 Operating expenses 716,726,133 610,499,253
11 Depreciation and amortization 68,672,282 105,778,226
12 Gross income 2,276,366,581 1,789,798,416
13 Allowance for impairment losses 347,108,022 298,153,691
14 Provisions’ recovered impaired loans 88,351,979 59,873,963
15 Net Bank operating revenues 2,017,610,538 1,551,518,688
16 Net gains (losses) from other financial assets -
17 Exceptional revenues 1,341,465 23,773,730
18 Exceptional expenses 1,629,827 56,058,968
19 Profit before tax 2,017,322,176 1,519,233,450
20 Income tax 576,802,157 429,894,402
21 Profit for the year 1,440,520,019 1,089,339,048
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OFF BALANCE SHEET
DZD
20112012Item
20,661,899,206 29,254,074,291 Obligations:A
- - Fowards financial institutions1
17,337,322,978 22,812,734,825 Fowards customers2
- - Guarantees issued in favour of financial institutions3
3,324,576,228 6,441,339,466 Guarantees issued in behalf of customers4
- - Other given commitments5
13,638,818,479 19,606,799,941 Guarantees:B
- - Financing received from financial institutions 6
3,029,760,918 6,079,914,343 Guarantees received from financial institutions 7
10,609,057,562 13,526,885,598 Other guarantees8
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Notes to the Financial StatementsA. ASSETS1 - Cash and balances with central banks
This item includes cash and balances with central banks in local dinars and foreign currencies.
The balance of this account reached DZD 5.5 billion as of 31 December 2012 showing an increase by DZD 2.7 billion or 99.3 % compared to the amount posted in 2011.
4 – Financial institutions’ credit facilitiesThis item includes the balance of current and fixed deposits accounts opened with local banks , Bank of Algeria , and foreign correspondents.
The registered balance in this account as of 31 December 2012 amounts to DZD 17.1 billion with an increase by DZD 3 billion compared to the amount posted in 2011.
5 – Customers’ credit facilitiesThis item includes the Bank’s debts towards its customers. It reached DZD 11.8 billion as of 31 December 2012 with an increase by DZD 1.9 billion, i.e. a 19.1 % increase comparing to the year ended 2011, this increase related mainly to the increase in the short term credits and to leasing credits.
7 – Current tax assetsThis item includes receivables tax paid up to 31 December 2012, It reached DZD 395 millions, an increase of 98.5 % and by DZD 196 million compared to the end of 2011, the increase related mainly to the advance payment of income tax for 2012
9 – Other assetsThis item contains mainly the values under collection , expenses paid in advance, and the tele-compensation operations . This balance has increase by DZD 2.2 billion, i.e. a 81.1 % comparing to 2011. The balance of this item reached DZD 4.9 billion as of 31 December 2012.
10 – Adjustment accountsThis item contains mainly the operations of buying/selling foreign currencies with Bank of Algeria, the balance of this account reached DZD 286 million as of 31 December 2012, 88 % of the balance related to a bourse operation with Central Bank Of Algeria for DZD 254 million.
11 – Other participationsThis item includes the Bank’s participation in the capital of the Clearing Center for an amount of DZD 5.7 million and the Bank Deposits Guarantee institution for an amount of DZD 10 million.
13 – Property and equipmentThis item includes the furniture, buildings and equipments. It has posted a 3.6% increase, by DZD 17.2 million comparing to the year ended 2011. The balance of this item reached DZD 495.6 million as of 31 December 2012.
14 – Intangible assetsThis item includes the net value of intangible assets related to the information systems which reported an increase of DZD 13.2 million, i.e. a 414.7% compared to the amount posted in 31 December 2011.
As of 31 December 2012 the balance of this item has reached DZD 16.4 million
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B. LIABILITIES2 – Financial institutions’ deposits
This item includes current and fixed deposits accounts opened by banks and financial institutions.
The balance of this item has reached DZD 8.3 million as of 31 December 2012 and it represent an import transfers under execution.
3 – Customers’ deposits
This item includes current and fixed deposits accounts opened by customers.
The balance of this item has registered 43.6% increase comparing to 2011 to reach DZD 17.32 billion as of 31 December 2012, the increase related mainly to the increase in the provisions for L/C’s and the commercial current accounts for DZD 1.4 billion and DZD 2.7 respectively comparing to 2011.
4 – Securities
This item includes Customers’ deposits in form of securities.
The balance of this item has decreased by 10.2% compared to 2011, i.e. by DZD 84 million to reach DZD 736 million as of 31 December 2012.
5 – Current tax liabilities
This item includes all taxes payable including provision for income tax for the year, it reached DZD 669 million, an increase of 31.6% and by DZD 160.6 million compared to the end of 2011.
7 – Other liabilities
This item includes mainly the bills of collection received from banks , cheques under collection , certified cheques provisions and provisions for transfers.
The balance of this item an increase of 80.9%, which represents DZD 4.0 billion compared to 2011.
The balance of this item reached DZD 9 billion as of 31 December 2012.
8 – Adjustment accounts
The balance of this account reached DZD 20.9 million as of 31 December 2012.
9 – Provisions for risks and expenses
The balance of this account reached DZD 6.6 million as of 31 December 2012.
11 – General banking risks reserve
The balance of this item has increased by 50.7% compared to 2011, i.e. by DZD 262 million, due to increase net credit portfolio operating direct and indirect.
The balance of this account reached DZD 779 million as of 31 December 2012.
13 - Paid-in capital
The balance of this item DZD 10 billion as of 31 December 2012.
15 - Reserves
The balance of this item reached DZD 91.7 million as of 31 December 2012, with an increase by DZD 54.5 million, i.e. a 146.3 % increase comparing to the year ended 2011.
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18 - Results of previous years
The balance of this item reached DZD 430.8 million as of 31 December 2012, showing an increase by DZD 323 million, i.e. a 301.1% comparing to the year ended 2011.
19 – Profit for the year
The Bank has closed the financial year 2012 with a net profit of DZD 1.44 billion, an increase of 32.2% compared to 2011.
C. INCOME STATEMENT9 - Net income
The balance of this item reached DZD 3.1 billion as of 31 December 2012, with an increase of 22.2 %, which represents DZD 555.7 million compared to 2011.
12 - Gross income
Gross income reached to DZD 2.3 billion, with an increase DZD 486.6 million, i.e. a 27.2 % compared to 2011.
15 - Net Bank operating revenues
The balance of this item reached DZD 2 billion as of 31 December 2012, with an increase of 30 %, which represents DZD 466.1 million compared to 2011.
19 - Profit before tax
Profit before tax amounted to DZD 2 billion as of 31 December 2012, with an increase of DZD 498.1 million compared to 2011.
D. OFF BALANCE SHEETThe Bank commitments are distributed as follow:
Obligations: The balance of this item reached DZD 29.3 billion as of 31 December 2012 ,with an increase of 41.6 % comparing to 2011 , the balance composed mainly of obligations for opening of L/Cs and represent about 78 % of the total obligations, in which it increased by 32 % comparing to 2011.
The remaining part of the obligations represent issuing letter of guarantee against counter guarantee in which it also increased by 38 % comparing to 2011 .
Guarantees: The balance of this item reached DZD 19.6 billion as of 31 December 2012, with an increase of 43.8 % comparing to 2011, the balance composed mainly of the guarantees given by clients, insurance companies and foreign banks.
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Addresses of Head Office & DepartmentsHead Office
16, rue Ahmed Ouaked, Dely Ibrahim - Alger Phone: + 213 21 918787Fax : + 213 21 [email protected]
Supplies & Security Dept.
Phone: + 213 21 918877Fax : + 213 21 918878
Deputy General Manager
Phone: + 213 21 91 87 86 Fax : + 213 21 91 76 19
Compliance & Procedures Dept.
Phone: + 213 21 918757Fax : + 213 21 918757
Audit Dept. Phone: + 213 21 918895
Commercial Dept.
Phone: + 213 21 918880Fax : + 213 21 918785
Finance Dept.
Phone: + 213 21 917604Fax : + 213 21 917547
Branches Network Dept.
Phone: + 213 21 918887Fax : + 213 21 918894
Credit Dept.
Phone: + 213 21 917681Fax : + 213 21 917410
Risk Mgt. Dept.
Phone/Fax : + 213 21 91 76 13
Legal Affairs Dept.
Phone/Fax : + 213 21 918192
Leasing Dept.
Phone: + 213 21 918879
Human Resources Dept.
Phone: + 213 21 918199Fax : + 213 21 917579
IT Dept.
Phone/Fax: +213 21 91 80 92
Reporting Dept.
Phone: + 213 21 91 87 87Fax : + 213 21 91 88 78
Treasury Dept.
Phone/Fax : + 213 21 91 76 13
Internal Control Dept.
Phone: + 213 21 91 87 87Fax : + 213 21 91 88 78
Islamique Banking Dept.Phone/Fax: + 213 21 91 88 92
Foreign Operations Dept.
Phone: + 213 21 918779
IT security Dept.Phone/Fax : + 213 21 91 88 86
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Addresses of Branches
Dely Ibrahim Branch
16, rue Ahmed Ouaked, Dély Ibrahim – AlgerPhone: + 213 21 918882Fax : + 213 21 [email protected]
Blida Branch
Rue Larbi Tebessi N°61 - BlidaPhone: + 213 25 311310Fax : + 213 25 [email protected] Oran Branch
10,Coop El Bahia , Hai Essalem ex Saint Hubert-Oran Phone: + 213 41 34 27 04 : + 213 41 34 27 05Fax: + 213 41 34 27 [email protected]
Setif Branch 20, Boulevard du 1er Novembre 1954 - SétifPhone: + 213 36 834953Fax : + 213 36 [email protected]
Dar El Beida Branch
59 rue Mohammed Khemisti , Dar El Beida, AlgerPhone: + 213 21 754684Fax : + 213 21 [email protected]