financial statements for the year ended

ZENITH BANK (GHANA) LIMITED
FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31
Interest income
Interest expense
2015
GH¢
2014
GH¢
447,872,621
(171,685,023)
393,202,759
(131,298,063)
276,187,598
261,904,696
64,859,675
33,015,394
2,685,823
63,675,595
29,772,106
2,529,218
Net trading and other income
100,560,892
95,976,919
Total operating income
376,748,490
357,881,615
Net interest income
Fees and commission
Net trading income
Other operating income
Impairment loss on financial assets
Personnel expenses
Depreciation and amortization
Other expenses
(54,517,824)
(58,233,265)
(6,771,294)
(142,145,967)
Profit before income tax
115,080,140
Taxation
(32,003,197)
Profit after tax attributable to equity holders
of the Bank
200,128,038
(62,727,973)
83,076,943
137,400,065
-
-
83,076,943
137,400,065
Other comprehensive income, net of tax
Total comprehensive income attributable
to equity holders of the Bank
(11,983,954)
(47,573,092)
(6,104,842)
(92,091,689)
NOTES TO THE FINANCIAL STATEMENTS
1. Reporting entity
Zenith Bank (Ghana) Limited (the Bank) is a bank incorporated in Ghana. The address of the Bank's registered office is
Premier Towers, Liberia Road, PMB CT 393, Accra. The financial statements of the Bank as at, and for the year ended
December 31, 2015 are as stated in this report. The Bank is a subsidiary of Zenith Bank PLC of Nigeria. The Bank operates
with a universal banking license that allows it to undertake all banking and related services.
2. Basis of accounting
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS).
They were authorised for issue by the board of directors on February11, 2016. Details of the Bank's accounting policies are
included in Note 40.
3. Functional and presentation currency
These financial statements are presented in Ghana Cedi, which is the Bank's functional currency.
4. Use of judgements and estimates
In preparing these financial statements, management has made judgements, estimates and assumptions that affect the
application of the Bank's accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual
results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised
prospectively.
5. Basis of measurement
The financial statements have been prepared on a historical cost basis except for the following material items.
Items
STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31
2015
GH¢
Assets
6 9 1 ,7 2 6 ,9 0 3
6 1 4 ,2 7 1 ,3 2 6
7 2 1 ,2 6 1 ,3 2 9 1 ,2 8 2 ,3 8 8 ,8 8 1
8 ,5 4 8 ,8 8 3
9 8 3 ,0 7 4 ,4 3 1 1 ,0 9 7 ,3 5 7 ,3 5 6
6,174,204
87,276,262
13,076,471
4,648,637
4,745,422
2,079,247
2,279,246
8,049,180
2,162,447
44,839,864
48,529,183
C a s h a n d c a s h e q u iv a le n t s
G o v e r n m e n t s e c u r it ie s
D e r iv a t iv e a s s e t s h e ld f o r r is k m a n a g e m e n t
L o a n s a n d a d v a n c e s to c u s to m e r s
C u r r e n t ta x a s s e ts
Property and equipment
Leasehold property
Intangible assets
Deferred tax assets
Other assets
Total assets
2014
GH¢
2,549,130,057 3,073,359,215
Liabilities
D u e to o th e r b a n k s
D e p o s it s f r o m c u s t o m e r s
O t h e r lia b ilit ie s
C u r r e n t t a x p a y a b le
2 5 ,1 2 5 ,6 3 4
8 2 0 ,0 7 3 ,6 5 0
2 ,0 4 4 ,6 4 2 ,0 1 0 1 ,8 4 6 ,7 4 5 ,1 5 9
4 4 ,8 4 1 ,9 3 6
2 8 ,2 6 4 ,1 7 5
26,832,697
-
Total liabilities
2,114,609,580 2,721,915,681
Equity
S ta te d c a p ita l
S ta tu to r y re s e r v e
C r e d it r is k r e s e r v e
R e t a in e d e a r n in g s
61,221,496
90,110,926
22,835,434
260,352,621
61,221,496
79,726,308
27,370,680
183,125,050
Total Equity
434,520,477
351,443,534
Total equity and liabilities
2,549,130,057 3,073,359,215
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31
Profit after tax
Adjustments for:
Depreciation and amortization
Net impairment loss on financial assets
Net interest income
Profit on disposal of property equipment
Asset write-off
Tax expense
2015
GH¢
2014
GH¢
83,076,943
137,400,065
6,771,294
54,517,824
(276,187,598)
(188,498)
32,003,197
(100,006,838)
6,104,842
11,983,954
(261,904,696)
(71,657)
16,444
62,727,973
(43,743,075)
799,910,748
59,765,101
3,689,319
(794,948,016)
197,896,851
16,577,761
182,884,926
(275,891,749)
(432,132,313)
(34,462,058)
248,673,496
780,252,054
5,267,741
247,964,096
447,872,621
(171,685,023)
(70,896,831)
388,175,693
393,202,759
(131,298,063)
(44,360,514)
465,508,278
(79,555,633)
245,480
(1,175,650)
(80,485,803)
(5,260,809)
146,190
(2,690,357)
(7,804,976)
307,689,890
977,422,409
457,703,302
528,694,121
Cash and cash equivalents at 31 December
Effect of exchange rate fluctuations on cash
and cash equivalents held
1,285,112,299
986,397,423
8,548,883
( 8,975,014)
Cash and bank balances
1,293,661,182
977,422,409
Cash balances
Short-term investments
691,726,903
601,934,279
1,293,661,182
614,271,326
363,151,083
977,422,409
Changes in:
Government securities
Loans and advances to customers
Other assets
Due to other bank
Customer deposits
Other liabilities
Interest received
Interest paid
Taxes paid
Net cash flow from operating activities
Cash flow from investing activities
Acquisition of property and equipment
Proceeds from disposal of property and equipment
Acquisition of intangible assets
Net cash flow used in investing activities
Net increase in cash and cash equivalents
Balance at beginning
Cash and cash equivalents at 31 December
Measurement basis
Derivative financial instruments
Non-derivative financial instruments at fair value through
profit or loss
Fair value
Fair value
Recognised financial assets and financial liabilities designated
as hedged items in qualifying fair value hedge relationships
Amortised cost adjusted for changes in fair value
attributable to the risk being hedged
6. Changes in accounting policies
The Bank has consistently applied the accounting policies as set out in Note 40 to all periods presented in the financial
statements.
7. Significant accounting policies
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies
have been consistently applied to all the years presented, unless otherwise stated.
8. Risk Management
As a bank, risk is at the core of our operations. To manage it, we have designed a Risk Management Framework covering
the strategic framework, organizational structure, risk appetite, operational framework and risk monitoring and reporting.
The relevant key ratios during the year include:
 Loan loss provision ratio of 9.63% (2014: 4.38%)
 Percentage of gross non-performing loans with respect to Bank of Ghana Prudential Norms (specifically impaired)
to total gross loans and advances is 10.48% (2014: 4.46%)
 Ratio of fifty (50) largest exposure (gross funded and non funded) to total exposure of 87% (2014: 81%)
 Capital adequacy ratio of 18.51% (2014: 14.25%)
REPORT OF THE DIRECTORS TO THE MEMBERS OF ZENITH BANK (GHANA) LIMITED
The Directors in submitting to the shareholders the financial statements of the Bank for the year ended December 31, 2015 report
as follows:
Directors Responsibility Statement
The Bank's Directors are responsible for the preparation and fair presentation of the financial statements in accordance with
International Financial Reporting Standards (IFRS), and in the manner required by the Companies Code 1963 (Act 179), the
Banking Act, 2004 (Act 673) (As Amended) and for such controls as the directors determine is necessary to enable the preparation
of financial statements that are free from material misstatement, whether due to fraud or error.
The Directors have made an assessment of the Bank's ability to continue as a going concern and have no reason to believe the
business will not be a going concern.
Principal activity
The principal activity of the Bank is to provide banking and related services.
Parent company
The bank is a subsidiary of Zenith Bank PLC, a bank incorporated in the Federal Republic of Nigeria.
Approval of the Financial Statements
The financial statements of the Bank were approved by the Board of Directors on February 11, 2016 and were signed on their behalf
by
Signed: Daniel Asiedu
(Managing Director/CEO)
Signed: Henry Benyah
(Director)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ZENITH BANK (GHANA) LIMITED
The financial statements presented are an extract from the annual financial
statements of the Bank for the year ended December 31, 2015. This
information is extracted directly from the annual financial statements, which
are available for inspection at the Bank's Head Office, Premier Towers,
Liberia Road, Accra. The auditor's report was signed on February 11, 2016
and has been extracted from the annual financial statements of the Bank.
TT
The accompanying financial statements do not contain all the disclosures required by International Financial Reporting Standards
and in the manner required by the Companies Act 1963, (Act 179) and the Banking Act 2004, ( Act 673) as amended by the
Banking Amendment Act 2007, (Act 738) applied in the preparation of the audited financial statements of Zenith Bank (Ghana)
Limited. Reading the accompanying financial statement, therefore, is not a substitute for reading the audited financial statements
of the Bank. We expressed an unmodified opinion on the financial statements in our report dated 11 February 2016.
Directors’ Responsibility for the Financial Statements
The directors are responsible for the preparation of the accompanying financial statements in accordance with the basis described
in the notes.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our procedures, which were conducted in
accordance with International Standard on Auditing (ISA) 810, Engagements to Report on Summary Financial Statements.
Opinion
In our opinion, the accompanying financial statements derived from the audited financial statements of Zenith Bank (Ghana)
Limited for the year ended 31 December 2015, are consistent, in all material respects, with those financial statements, in
accordance with the basis described in the notes.
Signed by: Nathaniel D. Harlley (ICAG/P/1056)
For and on behalf of:
KPMG: (ICAG/F/2016/038)
CHARTERED ACCOUNTANTS
13 YIYIWA DRIVE, ABELENKPE
February 11, 2016