JSC Delta Bank EXPLANATORY NOTE TO THE INTBRIM

JSC Delta Bank EXPLANATORY NOTE TO THE INTBRIM

JSC DeltaBank
EXPLANATORY NOTE
TO THE INTBRIM FINANCIAL
STATEMENTS FOR THE THIRI)
QUARTER OF 20rs
JSC Delta Bank
Explanatory Notes to the Interim Financial Statements for the 3Q2015
I
Background
(a)
Organisation and operations
JSC Delta Bank (the "Bank") is a joint stock company, which was incorporated in the Republic of
Kazakhstanin 1993.
The activities of the Bank are regulated by the National Bank of the Republic of Kazakhstan (the
"NBRK"). The Bank operatesunder banking licence #213, dated24 October 2007.
The principal activities of the Bank are commercial/bankingactivity, lending and issuing guarantees,
cashand settlementsoperationswith securitiesand foreign exchange.
The Bank is the member of the KazakhstanDeposit InsuranceFund (the "KDIF").
The Bank's registeredoffice is: 73A, Tole bi street,Almaty, Republic of Kazakhstan.
As of 30 September20 I 5, the Bank had 11 branchesoperating in the Republic of Kazakhstan.
(b)
Shareholders
As of 30 September
2015and31 December
2014,the following shareholdersowned 5%oor more of
the issuedvoting sharesof the Bank:
30 September
3l December
2015
2014
o
o/o
Shareholder
SamzayevArtykbay
BalmagambetovaAlmagul
Tulepbekov Zhasulan
Dzholdybayeva Zhanar
Sarkulova Kulaysh
SaktaganovaGaliya
Akhmetzhanova Gulimzhan
SuleimenovAidos
LLP "Agroopttorg-07"
Kravchenko Aigul
Akinzhanova Ainur
Shareholdersowning less than 5olo
16.3
9.7
9.4
9.3
9.1
8.9
8.4
5.7
5.6
5.4
5.4
93.2
6.8
100.0
24.5
8,7
8.0
7.5
7.5
7.5
6.2
8.;
8.1
86.r
13.9
100.0
JSC Delt& Bank
ExplanatoryNotesto the lnterimFinancialStatementsfor the 3Q201S
2
Basisof preparation
(a)
Statement of compliance
The accompanying financial statements are prepared in accordance with International Financial
ReportingStandards("IFRS").
(b)
Basis of measurement
The financial statementsare prepared on the historical cost basis except that financial instrumentsat
fair value through profit or loss and available-for-sale financial assetsare stated at fair value and
land, buildings and vehiclesare at revaluedamounts.
(c)
Functional and presentation currency
The functional curency of the Bank is the Kazakhstan Tenge (*KZT') as, being the national
currency of the Republic of Kazakhstan,it reflects the economic substanceof the majority of
underlyingeventsand circumstancesrelevantto them.
The KZT is also the presentationcurrency for the purposesof thesefinancial statements.
Financial infonnation presentedinKZT is roundedto the nearestthousand.
Net interestincome
30.09.201s
KZT'000
Interest income
Loansto customers
Available-for-salefi nancial assets
Held-to-maturity investments
Placementswith banks and other financial institutions
Financial instruments at fair value through profit or loss
30.09.2014
KZT'OOO
26,459,328
1,617,481
9,904
28.086.713
Interest expense
Cunent accountsand depositsfrom customers
Amounts payableunder repurchaseagreements
Debt securitiesissued
Due to banks and other financial institutions
Other
(7,375,510)
( 1,549,396)
(1,849,714)
(1,859,992)
(13,220)
(12,646,822',)
15,439,991
19,796,299
1 ,l 6 0 , g g g
28,732
19,790
2,644
20,009,333
(6,627,191)
( 7 3 ,310 )
( 1,840,761)
(645,829)
(9,196,91
l)
______J!&]@
Feeand commissionincome
Guaranteeand letter of credit issuance
Transfer operations
Cash operations
Foreign currency exchange
Credit card and account maintenance
Other
30.09.2015
KZT'OOO
407,939
143,966
115,027
47,730
32,09s
25.154
77l,9tl
30.09.2014
KZT'000
470,951
100,291
78,418
30,177
23,556
15,178
718,571
JSC Deltu Bsnk
ExplanatoryNotesto the InterimFinancialStatementsfor the 3e2015
5
Fee and commissionexpense
30.09.2015
KZT'OOO
Transfer operations
Card services
Brokerage
Other
6
32,991
I 5,860
6,717
52,360
107,928
30.09.2014
KZT'OOO
23,754
10,674
11,152
22,024
67,604
Net foreign exchangeincome
30.09.2015
KZT'OOO
Dealing,net
Translationdifferences,net
30.09.2014
KZT'OOO
4gg,gQg
444,637
595,079
(44,082)
400,555
l,084,ggg
Impairment losses
Loans to customers
Other assets
30.09.201s
30.09.2014
KZT'OOO
KZT'000
(9,975,595)
(5,225,488)
(60,663)
11,917
(9,036,258)
(5,213.571)
Operationexpenses
Employee compensation
Payroll related taxes
Total employeecosts
Occupancy
Depreciation and amortisation
Ad veflising and marketing
Taxes other than on income
Professionalservices
Security
Communications and information services
Insurance
Transportation
Travel expenses
Membership fee
Cashcollectionexpenses
Representative
expenses
Repairsand maintenance
Other
30.09.20r5
KZT'OOO
868,596
88,029
956,625
327,165
I 89,836
100,695
82,334
44,491
54,lgl
43,492
31,269
'r1 11<
20,401
13,169
7,399
2,392
9,305
l05,9gg
2,010,959
30.09.2014
KZT'OOO
766,161
78,1s7
844,318
320,366
235,585
84,244
76 4\1
34,144
48,344
30,911
32,158
21,132
16,531
2'' 11)
6,707
2,290
10,161
94,917
1,890,423
JSC Delta Bunk
Explanatory
Notesto the InterimFinancialStatementsfor the 3Q2015
Cash and cash equivalents
30.09.201s
KZT'000
Cashon hand
Nostroaccountwith the NBRK
31.12.20r4
KZT'OOO
1,907,430
1,231,694
12,623,913
7,328,184
Nostroaccountwith otherbanks
- ratedA
5,439,783
833,009
- ratedfrom BBB+ to BBB-
2,050,307
461,187
- ratedfrom BB+ 1633-
312,286
157,t53
- ratedbelowB+
324,389
t6,169
23,603
- not rated
Total cashand cashequivalents
22,674,876
10,034,830
The above table is basedon the credit ratings assignedby Standard& Poor's or other agencies
convertedinto Standard& Poor's scale.None of cashand cash equivalentsare impaired or past
due.
Concentration ofcash and cash equivalents
As of 30 September2015 the Bank had 2 banks (31 December2014: one bank), whose balances
exceed l0Yo of equity. The gross value of these balancesas of 30 September2015 is KZT
12,623,913
thousand(31 December2014:KZT 6,790,886 thousand).
10 Financial instruments at fair value through profit or loss
30.09.201s
KZT'OO()
Helrl by the Bank
Equity instruments
JSCKazakhtelecom
31.12.2014
KZT'000
t5,654
r6,555
15,654
16,555
None of the financial instrumentsat fair value through profit or loss are past due or impaired.
JSC Delta Bank
Explanatory Notes to the Interim Financial Statements for the 3Q2015
l1
Loansto customers
30.09.20r5
KZT'OOO
Loans to corporate customers
310,003,199
3r.12.2014
KZT'OOO
255,399,847
Loans to retail customers
Other retail loans
230,330
1,264,596
1,139,917
Total loans to retail customers
1,494,926
1,556,797
Consumerloans
416,880
Gross loans to customers
311,498,125
256,956,644
Impairment allowance
(36,649,568)
(27,289,232)
Net loans to customers
274,848,557
229,667,412
1".2 Available-for-salefinancialassets
30.09.2015
KZT'000
31.12.2014
KZT'OOO
Held by the Bank
Debt instruments
Treasury bills of the Ministry of Finance of the Republic of
Kazakhstan
15,441,158
15,441,158
21 7 7 1192
2 l 771192
2,200
2,200
24,648,462
2,200
2,200
21,773,392
20,649,330
11,484,662
17,484,662
Equity instruments
JSCKazakhstanStock Exchange
Pledged under repur chase agrcements
Debt instruments
Treasurybills of the Ministry of Finance of the Republic of
Kazakhstan
Total pledgedunder repurchaseagreements
20,649,330
_____l9J9a{!!_______1225!J51_
Investments without a determinable fair value
Available-for-sale investments stated at cost comprise non-quoted ordinary equity shares of
JSC Kazakhstan Stock Exchange of KZT 2,200 thousand, the fair value of which cannot be
reliably determined. There is no market for this investment and there have not been any recent
transactionsthat provide evidenceofthe currentfair value.
JSC Delta Bank
Explanatory
Notesto the InterimFinancialStatementsfor the 3Q2015
13 Due to banks and other financialinstitutions
30.09.2015
KZT'OOO
31.12.2014
KZT'000
Long-term loans received from the government-ownedfinancial
organisations
44,496,736
27,149,234
Short-term deposits from commercial banks of Kazakhstan
24,244,613
17,698,925
Amounts payable under repurchaseagreements
Short-term depositsreceived from the government-owned
fi nancial organisations
I 8 , 9l 4 , l 0 g
16,109,294
1,000,625
4,823,398
Short-term loans received from other financial organisations
193,003
92,468,856
62,151,081
14 Current accountsand depositsfrom customers
30.09.201s
KZT'OOO
Currentaccountsanddemanddeposits
- Corporate
- Rerail
Termdeposits
- Corporate
- Retail
3r.r2.2014
KZT'OOO
38,802,944
809,650
I1,895,703
822,256
t28,937,587
141,776,336
8,094,591
7,616,058
176,644,672___19?J1!,311-
15 Debt securitiesissued
30.09.2015
KZT'OOO
Nominal
31.12.2014
KZT'000
29,042,000
(614,744)
Discount
Accrued interest
29,042,000
(686,50
1)
678,687
558,422
29,105,943
28,913,921
The summaryof bond issuesat 30 September2015 and 31 December2014 is presentedbelow:
Carrying amount
KZT denominated
bondsof the first issue*
Maturity
18.0t.2017
KZT denominated
bondsof the secondissue* 27.05.2023
* Quotedon KASE
Coupon
rate
9.5%
75%
30.09.2015
KZT'OOO
31.12.2014
KZT'OOO
10,031,466
10,219,373
19,074,477
18,694,548
29,105,943
2g,gl3,g2l
JSC Delta Bsnk
ExplanatoryNotesto the InterimFinancialStatementsfor the 3Q2015
:16 Equity
Movement in sharecapital during nine months ended30 September2015 and the year ended31
December2014 was as follows (ordinary stock):
30.09.2015
KZT'000
Sharecapital at the beginning of the
year
Issuedat KZT 1,500per share
Acquisition of treasury shares
Sharecapital at the end ofthe year
30.09.2015
31.12.2014
31.t2.2014
Numberof
shares
KZT'OOO
Number of
shares
20,460,088
13,291,313
15,460,976
g,g5g,5g5
10,000,001
(l le)
6,666,667
4,999,500
3,333,000
(282)
(87)
30,459,970___19f57,891
(388)
20,460,088
13,291,313
As of 30 September
2015,theauthorized,
issuedandoutstanding
sharecapitalcomprises:
Ordinary shares
Authorized
shares
40,000,000
Unplaced
shares
(20,000,333)
Treasury
shares
(41,774)
Totalshare
capital
19,957,993
As of 31 December
2014,theauthorized,
issuedandoutstanding
sharecapitalcomprises:
Authorized
shares
Ordinary shares
40,000,000
Unplaced
shares
(26,667,000)
Treasury
shares
(41,687)
Total share
capital _
13,291,313
The holders of ordinary sharesare entitled to receive dividends as declared from time to time and
are entitled to one vote per shareat annual and generalmeetings of the Bank.
ItT Book Yalueper share
Underthe listing rules of the KazakhStockExchangethe Bank is requiredto presentbook value
per sharein its statementof financialposition.The calculationof book value per shareas of 30
September
2015is basedon numberof outstanding
(31 December
commonsharesof 19,957,893
2014: 13,291,313)and net assetsof KZT 47,186,616thousand(31 December2014: KZT
31,987,714
thousand)
calculated
asfollows:
30.09.2015
KZT'OOO
Total assets
Intangibleassets
Total liabilities
Net assets
350,274,519
(4r5,2r3)
(302,672,690)
47.r86.6t6
3r.12.2014
KZT'000
295,939,365
(394,299)
(253,557,352)
31,997,714
JSC DeltaBank
Explanatory
Notesto the InterimFinancialStatementsfor the 3Q2015
The following table showsthe book valueper sharecalculations
as of 30 September
2015 and 3l
December
2014:
30.09.201s
KZT'OOO
NEt ASSCTS
Outstandingnumberof participatingsharesat the year end
Book value per share, KZT
47,186,616
19,957,893
2,364
31.12.2014
KZT'OOO
3t,987
,714
13,291,313
2,401
18 Earningsper share
The
following
table
profit
shows the
for
the nine months ended
30 Septernber,20l5and 2014 and sharedata usedin the basicanddilutedearnings
per share
calculations:
30.09.20r
5
KZT'000
Net profit attributableto ordinary shareholders
Weightedaveragenumber of ordinary sharesfor basic
earningsper share
Basicand diluted earnings per share, inKZT
Nurbol Samza
30.09.2014
KZT'OOO
5,210,585
4,005,094
14,100,099
12,581,529
370
318
Galiya Kainarbekova
Deputy Chairperson - Chief Accountant