annual report

ANNUAL REPORT
Annual Report
2014
TABLE OF CONTENTS
04 Macau Economy
5
06BNU Highlights
7
8
8
8
9
9
10
10
10
11
12
12
13
Income and Balance Sheet
Income
Net Interest Income
Non-Interest Income
Net Operating Income
Operating Costs
Provisions
Proposal for Allocation of the Net Profit
Balance Sheet Structure
Customer Deposits
Amounts Due to Banks
Capital Adequacy Ratio
14
Activity Overview15
Retail Banking
16
Private Banking and Institutional Clients
17
Corporate Division
17
Large Corporate Division
17
Credit Cards and Acquiring Business
18
Marketing
19
Human Resources
20
Call Center
20
IT Systems
21
Treasury
21
Organization & Procedures
22
23
Governing and Auditing Bodies
24
25 Financial Statements
26
31
Shareholders with Qualified Holdings
32
33
Equity Investments
34
35
Principal Accounting Policies
General
Significant Accounting Policies
Revenue Recognition
Loans and Advances to Customers
Investments in Securities
Off Balance Sheet Derivative Financial Instruments
Properties and Equipment
Leasing
The Bank as Lessee
Leasehold Land and Buildings
Impairment
Taxation
Foreign Currencies
Retirement Benefit Costs
Provisions
Cash and Cash Equivalents
36
36
36
37
37
37
38
38
38
38
39
39
40
40
40
40
41
Auditors’ Report
42
43Opinion of the Sole Supervisor
44
45Most Important Addresses
45
MACAU ECONOMY
4
4
MACAU
ECONOMY
5
MACAU ECONOMY
Macau’s economy in 2014 recorded a decrease of 0.4% in GDP in real terms, as a result of the
drop in gaming revenues.
The exports of goods recorded, in 2014, an increase of 20.7%, whilst the exports of services
suffered a reduction of 6.3% as a consequence of the slowdown in the gaming industry.
The slowdown of growth in Mainland China’s economy is having a negative impact in
Macau’s economy, as the territory is considered the world capital of the gaming industry. Although the sectors of MICE and retail have continued gaining importance, Macau’s
economy is highly dependent on external factors, namely the number and the expenditure
of tourists visiting the city, who in their majority come from Mainland China.
The recorded unemployment rate in 2014, was 1.7%, a slight drop compared to 1.8% recorded in the previous year, confirming a full employment situation in the local economy,
which implies an upward pressure in wages and greater difficulties for firms in getting human resources. Simultaneously, the inflation rate reached 6.1% in 2014, slightly up when
compared with previous year.
Apart from the drop of 2.6% in gaming revenues, Macau had an increase of 7.5% in the
number of visitors to the territory (visitors from Mainland China increased by 14.1%) and a
3.5% decrease in visitor’s per capita expenditure.
Despite of headwinds faced by the local economy, the banking sector still benefited from
the economic expansion registered in the Macau SAR. Although the banking business is in a
more competitive environment, due to the large international banks seeking to gain market
share, which has had an immediate effect in terms of operations’ profitability decline, in
the local market.
On the other hand, the private consumption and government expenses registered a growth
of 5.9% and 7.1% respectively in 2014.
In 2014, the investment showed an increase of 35.2%, for which contributed mainly the
private investment with 41.4%, mostly related with big touristic and entertainment projects.
BNU HIGHLIGHTS
6
BNU
HIGHLIGHTS
7
BNU HIGHLIGHTS
Banco Nacional Ultramarino, S.A. represents the CGD Group in
Macau, continuing to develop its activities in commercial banking and is one of the two Notes Issuing Banks in Macau, a territory in which the monetary circulation has been growing continuously.
In 2014, BNU registered a 29.9% growth in credit granted to clients as opposed to a decrease of 6.7% in customer’s deposits.
Loans to retail and SME clients were the main drivers in increasing credits granted.
The decrease registered in customers’ deposits is a result of the
drop in deposits from institutional depositors. The deposits from
retail banking have grown by 12.2%.
The net interest income of BNU was 10.1% higher than that in the
previous year, due to the increase of business volume. The net
commission income increased by 22.1%.
The overdue loan ratio for more than 90 days has increased from
0.3% to 0.4%, whilst the coverage of overdue loans for more than
90 days by total provisions in 2014 reached 306.0%.
Income and Balance Sheet
BNU
HIGHLIGHTS
8
Income
Net Interest Income
The highlights of the activity of BNU in 2014 were an increase of the business volume and the expansion of the
Bank’s operations in several of its core business areas.
Net interest income was 10.1% higher
than the previous year, amounting to
MOP 575.6 million, an increase of MOP
52.9 million over the MOP 522.7 million
recorded in 2013.
Interbank interest rates of almost zero percent, also affected the Bank’s profitability, given that its balance sheet is
characterized by very high liquid levels.
Net income reached MOP 443.3 million in 2014, an increase of 10.1% over MOP 402.6 million recorded in 2013,
mainly due to the increase in the net interest income by
10.1%. Non-Interest Income increased by 25.6% in 2014.
Operating costs increased by 8.8%, higher than the inflation, mainly due to the opening of four new branches in
the second half of 2013, whose costs were fully reflected
in 2014.
Regarding the provisions for overdue credit, it was registered an increase of 19.2% in 2014, whilst provisions for
overall credit risks were 243.7% higher than previous year
due to the growth of the credit portfolio. The net provisions
increased 274.0% when compared with the previous year.
In spite of the increase of 5.7% in interest
income, the interest expense has recorded a decrease of 0.3%, as a result of the
drop of institutional clients’ deposits.
The prime rate remained unchanged at
5.25% p.a. throughout the year.
The rise in net interest income was the
result of increase of interest income
from loans to clients and a decrease
of the interest paid to customer’s deposits.
Income Statement Summary
In thousands of MOP
Change
2014
2013
In value In percentage
Net Interest
Income
575,559
522,693
52,866
10.1
Non-Interest
Income
325,211
258,827
66,384
25.6
Net Operating
Income
900,770
781,520
119,250
15.3
Operating
Costs
333,102
306,294
26,808
8.8
Cash Flow
617,625
512,444
105,181
20.5
Net Profit
Before
Provisions
567,668
475,226
92,442
19.5
Net Income
443,283
402,586
40,697
10.1
Income and Balance Sheet
BNU
HIGHLIGHTS
9
Non-Interest Income
Net Operating Income
Non-interest income, including income from financial
operations, increased 25.6% in 2014, amounting to MOP
325.2 million, an increase of MOP 66.4 million from 2013.
The evolution on net interest income and of non-interest
income resulted in an increase of 15.3% in net operating
income, totaling MOP 900.7 million in 2014, an increase of
MOP 119.2 million when comparing with the previous year.
The main components of non-interest income had the following evolution:
•
Net income from financial operations increased 20.0%,
reflecting an increase in foreign exchange results due
to increased customers business.
•
Net commissions and fees and net income from other
bank operations increased 27.1%, due, namely, to the
increase of commissions related to syndicated loans,
trade finance and bancassurance business and also the
increase of cross selling.
Net commissions and fees plus net income from other
bank operations represented 80.6% of non-interest income
(79.7% in 2013) whereas income from financial operations
represented 19.4% of non-interest income (20.3% in 2013).
Net interest income represented 63.9% of the net operating income in 2014, lower than the 66.9% reported in 2013,
while the weight of the non-interest income reached 36.1%
(33.1% in 2013).
NET OPERATING INCOME
STRUCTURE
%
6.7
7.0
36.1
29.1
26.4
63.9
66.9
2014
2013
Income
from
Financial
Operations
Net
Commissions
&
Other
Income
Net
Interest
Income
33.1
BNU
HIGHLIGHTS
10
Operating Costs
Provisions
Proposal for Allocation
of the Net Profit
The operating costs (including depreciations) increased 8.8% in 2014, a value
above the inflation rate.
Net provisions reached MOP 61.8 million in 2014,
a value higher than MOP 16.5 million reported in
2013, due to the increase in credit portfolio.
Under the legal and statutory terms, it is submitted to the
approval of the Annual General Assembly, that the net profit of MOP 443,283,052.86 is allocated as follows:
Overdue credit over 90 days corresponded to
0.4% of the credit portfolio in 2014 (0.3% in 2013).
•
In this context, operating costs increased MOP 26.8 million in 2014, totaling
MOP 333.1 million.
The main aggregates of operating costs composition are as follows:
•
Staff expenses went up 4.6%, totaling MOP 189.1 million, reflecting an increase in salaries and other remunerations.
•
Third party supplies and services rose 6.6%, reaching MOP 92.9 million,
mainly due to the opening of four new branches in the second half of 2013,
whose costs were fully reflected in 2014.
•
Depreciation increased 34.2%, due to the increased valuation of the bank’s
premises and new equipment for the new branches.
Staff expenses in 2014 represented 56.8% of total operating costs (59.0% in
2013), while third party supplies and services were 27.9% (28.5% in 2013) and
depreciation was 15.0% (12.1% in 2013).
Degree of coverage of overdue loans over 90 days
by provisions reached 306.0% (503.3% in 2013).
For legal reserves, according to art. 60 of the Macau
Financial System Act:
MOP 88,656,610.57
•
For distribution of dividends to shareholders:
MOP 221,641,526.43
•
The remaining balance for free reserves:
MOP 132,984,915.86
BNU
HIGHLIGHTS
11
Balance Sheet Structure
STRUCTURE OF TOTAL ASSETS
56.3 BL MOP
BNU maintained a solid balance sheet in 2014, with adequate levels of liquidity,
profitability and efficiency.
The Bank’s assets recorded an evolution in 2014, with an increase in credit granted to clients, in line with the expansion of BNU’s credit portfolio.
Total assets were, as of December 31st, 2014, MOP 56.3 billion, a decrease of
1.7%, comparing with the previous year.
IN %
INCREASE/DECREASE IN TOTAL ASSETS
2013-2014
-22.3%
IN %
39.5%
Total credit granted, increased 29.9%, reaching MOP 21.9 billion, representing
39.1% of total assets (29.6% in 2013).
Customer deposits, due to a drop in deposits from institutional depositors, decreased 6.7% in 2014, from MOP 44.5 billion in 2013, to MOP 41.5 billion in 2014.
Retail banking deposits increased 12.2%.
39.1%
In view of these developments, the loan-to-deposit ratio increased from 38.1%
in 2013 to 53.1% in 2014.
Interbank placements, represented, at the end of 2014, 39.5% of total assets, a
decrease of 10.6 percentage points over 2013. These assets decreased 22.3%,
totaling MOP 22.3 billion.
21.3%
29.9%
Interbank
Placements
Credit
Granted
to Clients
Cash,
Fixed Assets
and
Other Assets
3.0%
BNU
HIGHLIGHTS
12
Customer Deposits
As of December 2014, total deposits reached MOP 41.5 billion, a decrease of 6.7% over
the previous year, while residents’ deposits also went down 6.7%.
STRUCTURE OF LIABILITIES
AND SHAREHOLDERS' EQUITY
56.3 BL MOP
IN %
2.6%
INCREASE/DECREASE IN LIABILITIES
AND SHAREHOLDERS' EQUITY,
2013-2014
IN %
14.6%
Current and saving deposits decreased 13.6%, representing, at the end of 2014, 48.9%
of total deposits (52.8% at the end of 2013).
-6.7%
Time deposits amounted to MOP 21.2 billion as of December 31st, 2014, a rise of 1.1%,
representing 51.1% of total deposits (47.2% at the end of 2013).
Amounts Due to Banks
Given its high-liquidity situation, the Bank very rarely funds its activity through the interbank market.
Amounts due to banks totaled MOP 1.5 billion, an increase of 14.6%, corresponding to
an increase of MOP 190.5 million over 2013, representing only 2.6% of total liabilities
and shareholders’ equity
Return on equity (average) was 7.9%, compared with 7.9% as reported in 2013.
Return on assets (average) was also at the same level recording 0.8% in 2014 and in
2013.
73.9%
Resources
from
Banks
27.1%
Client
Deposits
0.4%
12.4%
10.7%
Provisions
for General
Risk
Other
Liabilities
Equity
17.1%
13.6%
BNU
HIGHLIGHTS
13
Capital Adequacy Ratio
Total capital as of December 31st, 2014, was MOP 5,320 million, a value above the MOP
5,055 million of 2013.
The capital adequacy ratio, calculated in accordance with AMCM Notices no. 012/93AMCM and 013-AMCM of August 27th, 2003 and also Circulars no. 003/A/94 and
004/A/94, stood at 23.8% in 2014, decreasing 0.4 percentage points from 2013 as total
credit exposure has increased.
BNU Highlights
13
ACTIVITY OVERVIEW
14
ACTIVITY
OVERVIEW
15
Aiming to develop BNU for fully exploring the business opportunities arising from Macau’s economic development and on-going diversification, the Bank continued the
transformation process with the support of international strategic consultants. A new
strategic check-up was performed identifying new strategies and actions to continuously follow the market demand and improve the level of service.
As in previous years, under the guidance of team leaders, the actions defined are progressively being developed and implemented with already a significant impact in the
Bank’s activity in the current and in future years.
The model of management established by the Project includes constant monitoring by
a Program Management Office (PMO) that has the responsibility of coordinating all the
planned initiatives and follow up. Any deviation or delay is duly noted, and appropriate
corrections implemented upon due analyses and decisions, so the defined calendar
can be achieved. The results of the implementation of the transformation project have
been materialized and will continue to post a significant impact in the Bank’s activity in
forthcoming years. The Bank continues to pursue the excellence of services to customers with new products’ offer and with solutions to the investors.
ACTIVITY
OVERVIEW
16
Retail Banking
the introduction of new commercial tools and the start of the Branch Efficiency
Project improved the time allocated, by the front line staff, to the commercial activity and their productivity.
The Bank’s retail activities in 2014 maintained a good level of expansion due to the
consolidation of the business of the new Branches opened in 2013; good performance
of the affluent segment - Advantage -; optimization of the commercial structure; new
commercial tools and increased focus of the marketing actions.
The higher level of competitiveness among banks, specially on deposits, along with
the lack of sufficient human resources were the biggest challenges to the Bank’s
activities in 2014.
The four new Branches opened in 2013 comfortably beat the expectations for 2014.
The Advantage segment, maintained a high level of cross-selling, have grown more
than 50.0% on credit. The creation of a structure, within the retail banking division, dedicated to follow the property agents, car dealers and corporate protocols allowed, with
the cooperation of Marketing Department, to consolidate and better exploit business
opportunities within the most important private customers segments. Simultaneously,
For 2015, although it is expected the maintenance of the above pressures and a slight
decrease on the growth of the housing loan market, in part due to diminishing gaming revenues - the Bank is confident that with the prosecution of the Branch Efficiency
Project, commercial productivity will improve and with adequate approach to BNU
relevant retail segments, retail banking will maintain the same level of activity growth
achieved in 2014.
ACTIVITY
OVERVIEW
17
Private Banking
and Institutional Clients
Corporate Division
Large Corporate Division
Following the successful transformation
of Private Banking and Institutional Clients,
businesses in both segments showed a
continued growth in 2014. The increase of
businesses was driven by launching of new
products and services as well as more proactive response to meet clients’ financial
needs.
The Corporate Division continued closely cooperating with the
Macau SAR enterprises and has
achieved a significant and strategic
growth on loans and deposits. For
those enterprises, the Bank aims to
launch some specific products to
better satisfy their needs in 2015.
The one-stop services including
payroll, credit card acquiring and
other services will be further promoted as before to consolidate
and build up a better relationship
with the clients. All in all, the Bank
maintains the positive view on
2015 objective for the confidence
in BNU products and services to
take advantage of the local economic opportunities.
In 2014 the business growth for Large
Corporate Division developed positively
compared with the last two years. Business
growth on the credit side was a fruitful year
in which the Bank has participated in new
syndicated loans and high value corporate
loans. Furthermore, the gaming and hospitality syndicated loans started the drawdown requests due to the large scale construction payments happening at the Cotai
area projects.
In private banking business, new products
and services includes currency leverage
products, banking service package tailored
for overseas clients and discretionary asset
management services. These products and
services were well accepted by customers,
showing a double digit growth in assets in
2014.
In institutional customer business, co-operation with the Government sector has been
smooth. New service is under development
and will be launched in the first semester of
2015. Long term products were concluded
with satisfactory result. Solid business relationship is being managed well, especially
with highly solvent and liquid institutional
clients.
In 2015, it is expected a continued growth
on the credit side from drawdown of existing syndicated loans, refinancing of the
existing facilities as well as new syndicated
loans for the upcoming projects at the Cotai area. Given the volatility in the sector, the
deposit business will be a challenging year
ahead for the Division.
In 2015, Large Corporate Division will continue to recruit new clients, explore intra
group cooperate financing opportunities,
being in line with the Bank´s strategy on
cross-selling and value proposition of the
corporate clients.
ACTIVITY
OVERVIEW
18
Credit Cards and Acquiring Business
In the year of 2014, Card Centre had faced various challenges from service demands as well as the control
measures to upgrade the security standards.
Regarding products, the Bank launched a new affinity card “Administração do Condomínio Fa Seng Hong Tou
Wai Yip VISA”. This card will not only provide an affinity card service to the residents, but also contribute as a
financial support to the community via a percentage of the sales that will go into a fund in order to support
benefits for the elderly and provide education prizes.
In other services, the Bank implemented a mass upgrade of credit limit and card product to serve the clients
to a higher level of convenience and prestige. Furthermore, it was launched the “Fundo de Segurança Social”
payment collection service in the Bank’s ATM network.
On the acquiring business, the Bank partnered with First Data Merchant Solutions (FDMS), giving the opportunity to improve the Bank’s merchant acquisition process through the partnership of this multi-national acquirer,
and also recruited the high quality merchants into the BNU portfolio.
The year of 2014 was also a very important year for security and fraud prevention, with large emphasis being
placed upon these principles in the form of several mandates or new requirements issued by AMCM and the
various Card Associations which BNU closely followed to ensure a full compliance. Another achievement to
note was the successful completion of the mass migration to EMV Chip-based debit cards and VISA card.
Looking forward to 2015, the Bank will launch new BNU Co-Brand VISA Credit Card with a mileage program
as well as the BNU Triple Currency Credit Card. These new products, along with other new products and services, will allow the bank to continue aiming for the goal to strengthen the card services in the Macau industry.
ACTIVITY
OVERVIEW
19
Marketing
During 2014 the Bank has privileged the promotion of strategic products and services, aiming to retain and
increase its customer base, as well as to improve the quality of its portfolio, through a more specialized management of customer segments.
In terms of products, the Bank had promoted specifically the “BNU Payroll Plus”, a payroll account that works
as an anchor-account, as well as the “BNU Housing Loan” that stabilizes the portfolio and works like an exit
barrier.
From April to June, a “BNU Payroll Plus” promotion campaign was run which included the production of new
promotion materials, a direct mailing to selected clients with pre-approved limits.
In terms of “BNU Housing Loan” it was produced new promotion materials, including animated LEDs and
rephrased the promotion message, which clearly indicates the lowest interest rate achievable by BNU’s clients.
It were produced direct mailings with the BNU offers to civil servants, casinos and UMAC staff, to support the
road shows held in most of their premises.
Among the other Marketing initiatives, it should be highlighted on the migration of all the BNU debit cards to
chip technology.
Under the scope of the Trade Liaison Office (TRAOF) it should be highlighted the support to the visit of Portuguese entrepreneurs to Macau, in cooperation specially with CGD, as well as the visit of His Excellency, the
President of Portugal, in May 2014.
The 35th Anniversary of the Diplomatic Relations between China and Portugal was duly covered in special
editions of the Portuguese newspaper “Expresso” and in the Chinese newspaper “International Business Daily”.
ACTIVITY
OVERVIEW
20
Human Resources
Call Center
Along the year, BNU like most of other companies is facing high staff turnover due to very low unemployment rate in Macau. This makes the new staff recruitment much more difficult than in previous years. In order to keep working team stable, BNU is recruiting staff through different channels,
e.g. staff referral program, local newspaper and website advertisement, BNU website, executive
search as well as importing staff from other regions. On the other hand, BNU is proactively retaining
the staff by better understanding and fulfilling their needs. Opportunities are offered to fresh graduates to work in different departments for gaining experience.
To face the changes and competition in the market and with more demand from customers
for high level services 24hr a day, in 2014, Call Center was restructured by merging the phone
banking service with 24hrs credit card authorization room service. With this strategic merger,
BNU Call Center has turned into a multi-channel contact center which can exert its function
to provide a more convenient and comprehensive 24 hour round the clock service to both
customers and merchants. The services include: general phone banking services, customers
email communication, emergency card services, credit and debit card general services and
card authorization services designated to merchants.
A bigger effort was put on training. Through discussion with Division and Department heads, are
gathering comments on how to suit the needs for improving the skills and knowledge of staff to
better handle their jobs.
To be more efficient and reduce paper, a web based appraisal system was implemented in 2014.
In 2014, the team was reinforced by hiring more customer service officers to attend the customers’ calls professionally with the objective to increase customer’s loyalty and reverse churn.
During the year, the Call Center premises were renovated to a new look, with more comfortable and pleasant working environment decorated with professional image for establishment
of sense of belongings and team work spirit.
A quality assurance program -mystery shopping-, was carried out with the cooperation of an
independent and experienced third party to ensure the service quality and measure the performance of the Call Center. A plan of action was implemented based on the investigation result
from the mysterious shopping for improvement of the weak areas.
Moreover, on-going training is provided to staff to improve the staff’s communication skills and
job knowledge was ongoing. KPI linked with staff incentive for service excellence was established for motivation and recognition of the staff performance.
For the upcoming year, in order to continuously serve better and provide differentiated services to BNU customers, the call center system will be upgraded with enhanced system features
and functions catering for the growth of the banking business. Telemarketing activities that can
generate sales at a very low cost is also our objective to achieve. We are continuously moving
onward to deserve for being the best in the industry.
ACTIVITY
OVERVIEW
21
IT Systems
Treasury
The Bank continued to invest heavily on its information technology to strengthen its technology capability and improve
customer service and product innovation. To cope with the
organizational transformation project, comprehensive reorganization and automation of existing operations were done.
This allowed greater synergies and reduced operating costs
without compromise to the service quality. The processing
capability and infrastructure components of Online Banking
and ATM system were upgraded in order to handle the increasing volume of transactions. The core banking system
was revamped to meet the requirement of FATCA. The card
processing system was also upgraded to be in compliance of
PCI standard that ensures sensitive information is protected in
the most secure manner. A new Anti-Money Laundry system
was in use to support a more comprehensive review on suspicious banking activities, risk analysis and reporting. Installation of multiple function ATM was made available to provide
customers the convenience in performing cash deposit and
other ATM transactions at one stop. In addition, a mobile version of BNU website was launched to allow customers to access the banking product information through mobile phone
at anytime and anywhere.
In 2014 the Treasury pursued liquidity management policies geared towards more efficient
utilization of available liquidity aiming to maximize returns within a tight framework of liquidity
risk management. To this end priority was given to higher return, liquid and high quality investments along the yield curve especially in mid-term transactions both funded and unfunded.
Special attention was given to the development of the CNY client deposit basis by the adoption of investment policies both locally and in Mainland China which boosted competitiveness
in this sector and contributed for a significant growth of the currency on the Bank’s balance
sheet.
In a continuous effort for financial products offer diversification, the Treasury researched and
developed a number of investment products that launched throughout the year which contributed significantly for the maintenance of a competitive presence in a challenging market. A
significant development was the introduction of the first Macau based Discretionary Management program developed in house and now available for high net worth individuals, institutions and corporate entities.
In keeping the developments with international legislation the Treasury participated in BNU’s
implementation of its FATCA policies in what regards in correspondent banking relationships.
New relationships were sought and old ones have been revitalized in an effort to maintain
BNU’s presence in the local financial institution community.
In fulfillment of its role as a Note Issuing bank, BNU, through its Treasury, ensured adequate
supplies of banknotes in a fast growing circulation environment. The process of distribution
of the Zodiac notes was notable in a year where two different notes, the Horse and the Goat,
were distributed jointly.
ACTIVITY
OVERVIEW
22
Organization & Procedures
In 2014, the branch efficiency project had the aim to off load
branch administrative work to back office and optimize existing workflow to benchmark with the best market practices.
During the project, a total of nine key processes were identified with improvement opportunities and workflow optimization in the sense of automation, simplification, centralization or
elimination. Project implementation will mainly be carried out in
2015. These key processes include optimizing account opening
procedures, credit and debit card issuing processes, business
process management, digitalization of document and branch
layout improvement. Below quick wins were implemented during the first visit:
› Centralized early loan repayment and “titulos” operation;
› Eliminated unnecessary procedures for reactivating dormant accounts;
› Simplified staff transaction process and courier service between branches and back office;
› Established SLA and improved workflow between branches
and back office by conducting error reduction sessions on
a bi-monthly basis.
In April 2014, BNU has registered as FATCA Participating Foreign
Financial Institution. Consequently in July, the new account on
boarding policy was implemented.
Governing
and Auditing Bodies
23
Governing
and
Auditing
Bodies
24
Board of the General Meeting
Board of Directors
Chairman
Chairman
Joaquim Jorge Perestrelo Neto Valente
Vice-Chairman
Liu Chak Wan
CAIXA GERAL DE DEPÓSITOS, S.A.,
Represented by
Nuno Maria Pinto de Magalhães Fernandes Thomaz
Executive Committee
President
Pedro Manuel de Oliveira Cardoso
Vice-Chairman:
Pedro Manuel de Oliveira Cardoso
Members
Members
Kan Cheok Kuan
Kan Cheok Kuan
Leandro Rodrigues da Graça Silva
Since 30th of June, 2014
Leandro Rodrigues da Graça Silva
Since 30th of June, 2014
Alberto Manuel Sarmento Azevedo Soares
Pedro Miguel Canales Escudero
Up to 30th June 2014
Armando Mata dos Santos
Since 28th of March, 2014
Sole Supervisor
Tse See Fan Paul
Herculano Jorge de Sousa
Up to 28th March 2014
Pedro Miguel Canales Escudero
Up to 30th June 2014
Chui Sai Cheong
Company Secretary
Maria de Lurdes Nunes Mendes da Costa
Financial Statements
25
Financial
Statements
26
BANCO NACIONAL ULTRAMARINO, S.A.
BALANCE SHEET AS OF DECEMBER 31, 2014
MOP
ASSETS
CASH
DEPOSITS WITH AMCM
GROSS ASSETS
PROVISIONS, AMORTIZATIONS
AND NET VALUE
1,398,213,637.37
0.00
NET ASSETS
1,398,213,637.37
408,101,969.74
0.00
408,101,969.74
6,114,695,089.67
0.00
6,114,695,089.67
176,467,008.04
0.00
176,467,008.04
DEPOSITS WITH OTHER CREDIT INSTITUTIONS IN MACAU
276,603,005.23
0.00
276,603,005.23
DEPOSITS WITH OTHER CREDIT INSTITUTIONS ABROAD
652,060,490.74
0.00
652,060,490.74
DEBT CERTIFICATES ISSUED BY THE MACAU GOVERNMENT
ACCOUNTS RECEIVABLE
GOLD AND SILVER
OTHER CURRENT ASSETS
0.00
0.00
0.00
2,310,462.84
0.00
2,310,462.84
CREDIT GRANTED
21,916,231,750.39
44,438,321.62
21,871,793,428.77
PLACEMENTS WITH CREDIT INSTITUTIONS IN MACAU
6,005,668,000.00
0.00
6,005,668,000.00
DEPOSITS AT CALL AND TIME DEPOSITS WITH CREDIT INSTITUTIONS ABROAD
16,252,442,795.99
0.00
16,252,442,795.99
757,626,941.54
0.00
757,626,941.54
SHARES, BONDS AND QUOTAS
INVESTMENT OF ASSIGNED FUNDS
DEBTORS
OTHER PLACEMENTS
FINANCIAL INVESTMENTS
PROPERTY
0.00
0.00
0.00
157,620,220.37
0.00
157,620,220.37
0.00
0.00
0.00
8,939,067.17
0.00
8,939,067.17
1,901,437,994.27
67,544,075.77
1,833,893,918.50
EQUIPMENT
133,548,515.63
94,927,949.74
38,620,565.89
DEFERRED COST
65,295,326.06
42,726,678.36
22,568,647.70
START-UP EXPENDITURE
0.00
0.00
0.00
FIXED ASSETS IN PROGRESS
0.00
0.00
0.00
OTHER FIXED ASSETS
INTERNAL AND ADJUSTMENT ACCOUNTS
TOTAL
1,834,396.65
0.00
1,834,396.65
306,631,086.07
0.00
306,631,086.07
56,535,727,757.77
249,637,025.49
56,286,090,732.28
Financial
Statements
27
BANCO NACIONAL ULTRAMARINO, S.A.
BALANCE SHEET AS OF DECEMBER 31, 2014
MOP
LIABILITIES
SUB - TOTAL
TOTAL
BANK NOTES IN CIRCULATION
CURRENT DEPOSITS
DEPOSITS AT CALL
TIME DEPOSITS
GOVERNMENT DEPOSITS
AMOUNTS DUE TO CREDIT INSTITUTIONS IN MACAU
AMOUNTS DUE TO OTHER LOCAL ENTITIES
AMOUNTS DUE TO CREDIT INSTITUTIONS ABROAD
ASSIGNED FUNDS
PAYABLE BANK CHEQUES
CREDITORS
OTHER LIABILITIES
6,270,788,650.00
15,161,518,160.88
0.00
9,376,163,795.68
252,473,345.99
0.00
1,238,771,491.63
0.00
2,562,270.81
85,140,636.23
126,363,420.94
INTERNAL AND ADJUSTMENT ACCOUNTS
OTHER RESERVES
NET PROFIT BROUGHT FORWARD
NET PROFIT FOR THE YEAR
TOTAL
18,756,173,790.65
474,840,870.94
PROVISIONS FOR RISK
CAPITAL
24,537,681,956.56
17,050,862,625.05
247,839,551.40
2,000,000,000.00
3,555,482,859.87
5,555,482,859.87
0.00
443,283,052.86
56,286,090,732.28
Financial
Statements
28
BANCO NACIONAL ULTRAMARINO, S.A.
BALANCE SHEET AS OF DECEMBER 31, 2014
MOP
MEMORANDUM ACCOUNTS
VALUES RECEIVED FOR SAFE KEEPING
BILLS FOR COLLECTION
SECURITIES RECEIVED
GARANTEES ON ACCOUNT OF CUSTOMERS
LETTERS OF CREDIT OUTSTANDING
BILLS AND ACCEPTANCES AVAILABLE FOR DISCOUNT
SECURITIES DEPOSITED
FORWARD FOREIGN EXCHANGE PURCHASES
FORWARD FOREIGN EXCHANGE SALES
OTHER MEMORANDUM ACCOUNTS
OF WHICH: PUBLIC TREASURY-CURRENT ACCOUNT
AMOUNT
318,231,799.21
439,985,382.30
251,275,466,259.62
2,684,886,475.53
86,928,286.70
0.00
10,706,466.00
0.00
0.00
20,428,186,893.98
632,337,231.41
Financial
Statements
29
BANCO NACIONAL ULTRAMARINO, S.A.
INCOME STATEMENT AS OF DECEMBER 31, 2014
MOP
DEBIT
AMOUNT
CREDIT
AMOUNT
INTEREST EXPENSE
383,427,809.36
INTEREST INCOME
958,986,455.16
STAFF COST
189,082,590.72
BANK OPERATIONS INCOME
365,365,670.08
OF WHICH:
REMUNERATION OF BOARD OF DIRECTORS AND SUPERVISOR COMMITTEE
SALARIES AND WAGES
OTHER BANK OPERATING INCOME
9,904,368.00
156,079,369.86
INCOMES FROM SECURITIES AND FINANCIAL INVESTMENTS
OTHER BANK INCOME
BENEFITS
21,167,297.51
NON-BANKING INCOME
OTHER
1,931,555.35
OPERATING LOSSES
THIRD PARTY SUPPLY EXPENSES
THIRD PARTY SERVICE EXPENSES
OTHER BANK COSTS
61,242,330.73
8,763,981.91
0.00
81,814,220.53
181,913,830.54
1,130,726.00
NON-BANKING EXPENSES
3,316,080.81
DEPRECIATIONS
49,957,051.05
PROVISIONS
73,322,870.23
TOTAL
881,030.05
11,117,706.36
TAXES
OPERATING INCOME
64,470,303.65
484,626,885.98
1,459,709,771.58
TOTAL
1,459,709,771.58
Financial
Statements
30
BANCO NACIONAL ULTRAMARINO, S.A.
PROFIT AND LOSS ACCOUNTS AS OF DECEMBER 31, 2014
MOP
DEBIT
AMOUNT
OPERATING LOSS
CREDIT
0.00
LOSS FROM PREVIOUS YEARS
61,231,683.52
EXTRAORDINARY LOSS
0.00
INCOME TAX
59,011,759.00
PROFIT FOR THE YEAR
443,283,052.86
TOTAL
563,526,495.38
AMOUNT
OPERATING INCOME
484,626,885.98
INCOME FROM PREVIOUS YEARS
EXTRAORDINARY INCOME
17,667,925.88
0.00
PROVISIONS USED
61,231,683.52
LOSS FOR THE YEAR
0.00
TOTAL
563,526,495.38
HEAD OF ACCOUNTING
PRESIDENT OF EXECUTIVE COMMITTEE
Maria Clara Fong
Pedro Manuel de Oliveira Cardoso
Shareholders
with Qualified Holdings
31
Shareholders
with Qualified
Holdings
32
According to the Financial System Act of Macau, a qualified holding is that
which, either directly or indirectly, represents 10 percent or more of the share
capital or voting rights, or any other form which confers the possibility to
exercise a significant influence over the management of the institution.
Shareholders with a qualified holding:
• Caixa Geral de Depósitos, S.A. 99.425 %
Equity Investments
33
Equity
Investments
34
List of the companies where Banco Nacional Ultramarino, S.A. has equity
holdings higher than 5 percent of the respective issued quoted capital or
higher than 5 percent of the own resources, and respective percent value:
•
None.
Principal
Accounting Policies
35
Principal
Accounting
Policies
36
General
Banco Nacional Ultramarino, S.A., incorporated in Macau Special Administrative
Region, the People’s Republic of China (“Macau SAR”), is a licensed bank authorised under the rules issued by the Autoridade Monetaria de Macau (“AMCM”).
The holding company of the Bank is Caixa Geral de Depósitos, S.A. incorporated
in Portugal. The principal activities of the Bank are the provision of banking and
related financial services. The address of the registered office of the Bank is Av.
Almeida Ribeiro, No. 22, Macau.
The financial statements are presented in Macau Pataca (“MOP”), which is the
same as the functional currency of the Bank.
Significant Accounting
Policies
Revenue Recognition
The financial statements have been prepared on
the historical cost basis except for certain properties that are measured at revalued amounts, as explained in the accounting policies set out below.
Interest income is recognised in the income statement as
it is accrued on a time basis, except in the case of nonaccrual loans and advances to customers where interest is
recorded in an off-balance sheet account, and is not recognised in the income statement.
The financial statements have been prepared in
accordance with Normas de Relato Financeiro
(“Financial Reporting Standards of Macau SAR”).
Non-accrual loans and advances to customers represent
the credit exposures which are overdue for more than 3
months. Interest income from non-accrual loans and advances to customers is directly credited to profit when the
interest is subsequently recovered.
Fees and commission income are recognised when services are provided.
Dividend income from investments in equity securities is
recognised when the shareholder’s right to receive payment has been established.
Principal
Accounting
Policies
37
Loans and Advances to Customers
Investments in Securities
Loans and advances to customers are stated in the balance sheet after
deducting specific and general provisions for possible losses. Provisions
are made against specific advances when management has doubts on
the ultimate recoverability of principal or interest. Specific provision is
made to reduce the carrying amount of loans and advances to customers, net of any collateral, to the expected net realisable value based on
management’s assessment of the potential losses on those identified
advances, and with reference to the requirements of AMCM. The provisions are reviewed periodically and adjustments are made when considered necessary by management.
Investments in unlisted equity securities are carried at cost less any
identified impairment losses.
In addition, amounts have been set aside as provision for loans and advances to customers based on past experience of collecting payments,
as well as cross-border exposures, and are maintained with reference to
the requirements of AMCM.
When there is no realistic prospect of recovery, the outstanding loans
and advances to customers are written off.
Investments in debt securities are carried at amortised cost less any
identified impairment losses.
An impairment loss is recognised in profit or loss when there is objective evidence that the asset is impaired, and is measured as the
difference between the asset’s carrying amount and the recoverable amount estimated by management. Impairment losses are reversed in subsequent periods when an increase in the investment’s
recoverable amount can be related objectively to an event occurring after the impairment was recognised, subject to the restriction
that the carrying amount of that asset at the date the impairment is
reversed does not exceed what the cost would have been had the
impairment not been recognised.
Amounts have been set aside as provision for cross border exposures and are maintained with reference to the requirements of
AMCM.
Off balance Sheet Derivative
Financial Instruments
Derivative financial instruments including interest
rate swaps, forward foreign exchange contracts
and foreign exchange swap contracts are used
primarily to hedge the Bank’s exposures to interest rate and foreign exchange risks, arising from
operational, financing and investment activities.
The interest arising from the interest rate derivative instruments is recognised in the income statement as interest income or interest expense. The
gain or loss arising from the settlement of foreign
exchange derivative instruments is recognised in
profit or loss in the period in which they arise. The
derivative financial instruments are recorded off
balance sheet.
Principal
Accounting
Policies
38
Properties and Equipment
Leasing
Properties and equipment held for use in the supply of services or for administrative purposes are stated at cost, deemed cost or fair
value, as appropriate, less subsequent accumulated depreciation and accumulated impairment losses, if any.
Leases are classified as finance leases whenever the terms
of the lease transfer substantially all the risks and rewards
of ownership to the lessee. All other leases are classified as
operating leases.
The Bank has adopted the revaluation model for land and buildings since 2011. Land and buildings held for use in the supply of
services or for administrative purposes are stated in the balance sheet at their revalued amounts, being the fair value at the date of
revaluation less any subsequent accumulated depreciation and any subsequent accumulated impairment losses. Revaluations are
performed with sufficient regularity such that the carrying amounts do not differ materially from those that would be determined
using fair value at the end of the year.
Any revaluation increase arising on revaluation of land and buildings is recognised and accumulated in the revaluation reserve, except to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit or loss, in which case the
increase is credited to profit or loss to the extent of the decrease previously charged. A decrease in net carrying amount arising on
revaluation of an asset is recognised in profit or loss to the extent that it exceeds the balance, if any, on the revaluation reserve relating to a previous revaluation of that asset. Depreciation on revalued buildings is recognized in profit or loss. On the subsequent sale
or retirement of a revalued asset, the attributable revaluation surplus remaining in the revaluation reserve is transferred to retained
profits.
Depreciation is provided to write off the cost or valuation of items of properties and equipment (other than freehold land) over their
estimated useful lives and after taking into account their estimated residual value, using the straight-line method. The estimated
useful lives, residual values and depreciation method are reviewed at the end of each year, with the effect of any changes in estimate
accounted for on a prospective basis.
An item of property and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from
the continued use of the asset. Any gain or loss arising on derecognition of the asset (calculated as the difference between the
net disposal proceeds and the carrying amount of the item) is included in the income statement in the year in which the item is
derecognised.
The Bank as Lessee
Operating lease payments are recognised as an expense
on a straight-line basis over the term of the relevant lease.
Benefits received and receivable as an incentive to enter
into an operating lease are recognised as a reduction of
rental expense over the lease term on a straight-line basis.
Leasehold Land and Buildings
The land and building elements of a lease of land and
building are considered separately for the purpose of
lease classification, unless the lease payments cannot be
allocated reliably between the land and building elements,
in which case, the entire lease is generally treated as a finance lease and accounted for as properties and equipment.
Principal
Accounting
Policies
39
Impairment
Taxation
At each balance sheet date, the Bank reviews the carrying amounts of its assets
to determine whether there is any indication that those assets have suffered
an impairment loss. If the recoverable
amount of an asset is estimated to be
less than its carrying amount, the carrying amount of the asset is reduced to
its recoverable amount. An impairment
loss is recognised as an expense immediately.
Income tax expense represents the sum of the tax currently payable and deferred tax.
Where an impairment loss subsequently
reverses, the carrying amount of the asset is increased to the revised estimate
of its recoverable amount, but so that
the increased carrying amount does not
exceed the carrying amount that would
have been determined had no impairment loss been recognised for the asset
in prior years. A reversal of such an impairment loss is recognised as income
immediately.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in the income statement because
it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
Bank’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax base used in the computation of taxable profit, and are accounted for using the balance sheet liability method. Deferred tax liabilities are generally
recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from
goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable
profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset is realised, based on tax rate (and tax laws) that have been enacted or substantively
enacted by the end of the year.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Bank expects, at the
end of the year, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax is recognised in profit or loss, except when it relates to items that are recognised directly in equity, in which case, the current and
deferred tax are also recognised directly in equity respectively.
Principal
Accounting
Policies
40
Foreign Currencies
In preparing the financial statements of the entity, transactions in currencies other than the functional currency of
that entity (foreign currencies) are recorded in the functional currency (i.e. the currency of the primary economic
environment in which the entity operates) at the rates of
exchange prevailing on the dates of the transactions. At
each balance sheet date, monetary items denominated in
foreign currencies are retranslated at the rates prevailing
on the balance sheet date. Non-monetary items that are
measured in terms of historical cost in a foreign currency
are not retranslated.
Exchange differences arising on the settlement of monetary items, and on the translation of monetary items, are
recognised in profit or loss in the period in which they arise.
Retirement Benefit
Costs
Payments to defined contribution retirement benefit plans are charged as an expense when employees have rendered
service entitling them to the contributions.
Provisions
Provisions are recognised when the Bank has a present obligation as a result of a past
event, and it is probable that the Bank will be required to settle that obligation. Provisions are measured at management’s best estimate of the expenditure required to settle the obligation at the balance sheet date, and are discounted to present value where
the effect is material.
Cash and Cash Equivalents
For the purposes of the cash flow statement, cash and cash equivalents comprise cash
and short-term funds, including cash, deposits with AMCM and current accounts with
banks and other financial institutions, placements with banks and other financial institutions with original maturity at or within three months.
Auditors’ Report
41
Auditors’ Report
42
To the shareholders of Banco Nacional Ultramarino, SA
We have audited the financial statements of the Banco Nacional Ultramarino, S.A. for the year ended
December 31, 2014, in accordance with Financial Reporting Standards of Macau Special Administrative
Region, the People’s Republic of China (“Macau SAR”). In our report, dated March 13, 2015, we expressed
an opinion with no constraints on the financial statements of which the present is a summary.
The financial statements referred to above comprise the balance sheet, as at 31 December 2014, the income statement, the statement of changes in equity and statement of cash flows for the year ended, as
well as a summary of the relevant accounting policies and other explanatory notes.
The summarized financial statements prepared by management results from the annual audited financial statements mentioned above. In our opinion, the summarized financial statements give a true and
fair view, in all material respects, of the financial position of the Bank as at 31 December 2014 and of its
financial results and cash flows for the year then ended in accordance with Financial Reporting Standards
of Macau SAR.
Kwok Sze Man
Registered Auditor
Deloitte Touche Tohmatsu – Sociedade de Auditores
To better understand the financial position of Banco Nacional Ultramarino, S.A. and the results of its operations in the period and scope covered by our audit, the summarized financial statements should be
read in conjunction with the financial statements of which they result, as well as with the corresponding
audit report.
Macau, 13 March 2015
Opinion
of the Sole Supervisor
43
Opinion
of the Sole
Supervisor
44
Shareholders:
In accordance with article 32 e) of the Articles of Association, the Board of Directors of Banco Nacional Ultramarino, S.A. submitted to the Sole Supervisor, the Balance Sheet, Accounts and Annual Report in relation to the bank’s operation in year 2014. In
addition, the external auditor’s report as prepared by «Deloitte Touche Tohmatsu» for the bank in relation to its activity in the same
year was also provided.
During the year, the Sole Supervisor had maintained regular contacts with the Board of Directors, consulted on the bank’s activity
and always received the collaboration as well as necessary clarification in an efficient manner.
After reviewing the documents as presented by the Board of Directors, it was found that the documents reflected clearly the
financial and economical situation of the Bank.
The Report of the Board of Directors also explained clearly the business development of the bank’s activity in the referred year of
operation.
The Sole Supervisor had also reviewed the external auditors’ report and found that the report reflected truly the financial situation
and performance of the bank as at close of business on 31 December 2014, as well as the result of the activity for the year ended
and which were prepared under the accounting principles applicable on banking activity.
As such, the Sole Supervisor decided to recommend the approval of:
Chui Sai Cheong
The Sole Supervisor
1. The Balance Sheet and Profit and Loss Account;
2. The Annual Report of the Board of Directors.
Macau, 23 March 2015
Most Important Addresses
CAIXA GERAL de DEPÓSITOS
Av. João XXI, 63
1000-300 Lisboa
Tel.: 21 795 30 00
Fax: 21 790 50 51
http://www.cgd.pt
Swift: CGDIPTPLXXX
BANCO NACIONAL ULTRAMARINO, S.A.
Head Office
Av. Almeida Ribeiro, nº. 22
Tel.: 28355111
Fax: 28355653
Telex:88202BNUMC OM 88606 BNUFX OM
E-mail: [email protected]
http://www.bnu.com.mo
Swift:BNULMOMX
Credit Card Center
Av. Almeida Ribeiro, 22
Tel.: 28335533
Fax: 28713119
BNU Branch Network
Main Branch
Av. Almeida Ribeiro, 22
Tel.: 28355111 - Fax: 28355130
Mercado Vermelho
Av. Almirante Lacerda, Nº. 90-92
Tel.: 28371166 - Fax: 28211619
São Lourenço
Rua da Praia do Manduco, Nº3 R/C, A
Tel.: 28572259 - Fax: 28933200
Horta e Costa
Av. Horta e Costa, Nº 80A
Tel.: 28517962 - Fax: 28527853
Areia Preta
Av. Leste do Hipódromo, 89 D
Tel.: 28470032 - Fax: 28470160
Chong Fu
Av. Da Amizade, Nº 711
Edf. Chong Fu R/C
Tel.: 28703478; 28702870 - Fax: 28705180
NAPE
Av. Sir Anders Ljungstedt Nº. 206
Jardim Brilhantismo, R/C, A
Tel.: 28723672; 28723676 - Fax: 28723418
COTAI
Shop Nº 2466ª, The Grand Canal Shoppes,
The Venetian Macao Resort Hotel,
Estrada da Baía de N. Senhora da Esperança,
The Cotai Srip, Taipa, Macau
Tel.: 28576001, 28576002 – Fax: 28576603
Villa de Mer
Zona da Areia Preta, S/N, Villa de Mer,
R/C, W, X, Macau
Tel.: 28767566 - Fax: 28767556
Rua da Barca
Rua da Barca, Nº 47,
Macau
Tel.: 28211570 - Fax: 28210993
Iao Hon
Rua 1 do Bairro Iao Hon,
Edf Iao Kai
Tel.: 28571921 - Fax: 28400395
Sidónio Pais
Av. Sidónio Pais, Nº. 20-20A
Tel.: 28584436 - Fax: 28524589
Fai Chi Kei
Rua Comandante João Belo, No.23
R/C Edf. Teng Pou Kok
Tel.: 28260165 - Fax: 28260637
Taipa (Flower City)
Rua de Coimbra, No.105
Taipa
Tel.: 28833633; 28833815 - Fax: 28833622
Kinglight Garden
Rua de Bragança Nº. 329,
R/C Edf. Kinglight Garden (AI/AH), Taipa
Tel.: 28838028; 28839555 - Fax: 28839328
Chun Fok
Rua do Pai Kok Nº 18-28,
R/C Chun Fok Village 2nd Fase, Taipa
Tel.: 28825892; 28825895 - Fax: 28825799
China Plaza
Avenida da Praia Grande, Nº 754,
China Plaza, R/C D & E,
Macau
Tel.: 28718625; 28715668 - Fax: 28718623
Altira
Avenida da Kwong Tung, Nº 732,
R/C I, Taipa, Macau
Tel.: 28842531; 28842532 - Fax: 28842535