ECOBANK KENYA LIMITED AUDITED FINANCIAL STATEMENTS AND OTHER

DISCLOSURES FOR THE YEAR ENDED 31ST DECEMBER, 2015

I. BALANCE SHEET DEC 31ST, 2014 DEC 31ST, 2015
Shs.000 Shs.000
Audited Audited
A ASSETS
1 Cash (Both local and Foreign) 905,034 873,575
2 Balances due from Central Bank Of Kenya 2,050,977 2,714,656
3 Kenya Government and other securities held for dealing purposes
4 Financial Assets at fair value through profit and loss
5 Investment Securities: - -
a) Held to Maturity: - -
a. Kenya Government securities - -
b. Other securities - -
b) Available for sale: - -
a. Kenya Government securities 9,897,471 9,144,181
b. Other securities 6,250 5,000
6 Deposits and balances due from local banking Institutions 2,468,931 2,772,834
7 Deposits and balances due from banking Institutions abroad 2,959,883 2,623,578
8 Tax recoverable 33,341 25,428
9 Loans and advances to customers (net) 22,982,094 29,621,166
10 Balances due from banking institutions in the group - -
11 Investments in associates 2,441 2,441
12 Investments in subsidiary companies - -
13 Investments in joint ventures
14 Investment properties 552,923 607,929
15 Property and equipment 766,981 697,962
16 Prepaid lease rentals - -
17 Intangible assets 290,465 241,326
18 Deferred tax asset 2,475,454 2,494,346
19 Retirement benefit asset - -
20 Other assets 542,213 602,091
21 TOTAL ASSETS 45,934,458 52,426,513
B LIABILITIES
22 Balances due to Central Bank of Kenya
23 Customer deposits 32,413,989 34,478,949
24 Deposits and balances due to local banking institutions - -
25 Deposits and balances due to foreign banking institutions
26 Other money market deposits - -
27 Borrowed funds 5,178,933 10,009,138
28 Balances due to group companies - -
29 Tax payable - -
30 Dividends payable
31 Deferred tax liability - 14,435
32 Retirement benefit liability - -
33 Other liabilities 513,594 363,320
34 TOTAL LIABILITIES 38,106,516 44,865,842
C SHAREHOLDERS FUNDS
35 Paid up/Assigned capital 12,194,050 12,194,050
36 Share premium/(discount) 38,363 38,363
37 Revaluation reserves (1,940,919) (2,298,576)
38 Retained earnings/Accumulated losses (2,463,552) (2,516,725)
39 Statutory Loan Loss Reserve - 143,559
40 Proposed dividends - -
41 Capital grants - -
42 TOTAL SHAREHOLDERS FUNDS 7,827,942 7,560,671
43 TOTAL LIABILITIES AND SHAREHOLDERS FUNDS 45,934,458 52,426,513
II. PROFIT AND LOSS ACCOUNT

1 INTEREST INCOME
1.1 Loans and advances 2,319,914 3,246,032
1.2 Government securities 597,756 787,037
1.3 Deposits and placements with banking institutions 75,150 160,714
1.4 Other Interest Income 872 717
1.5 Total interest Income 2,993,692 4,194,500
2 INTEREST EXPENSES
2.1 Customer deposits 1,520,402 1,680,228
2.2 Deposits and placements from banking institutions 475,738 804,530
2.3 Other Interest Expenses - -
2.4 Total interest expenses 1,996,140 2,484,758
3 NET INTEREST INCOME/(LOSS) 997,552 1,709,742
4 NON-OPERATING INCOME
4.1 Fees and commissions on loans and advances 292,436 314,411
4.2 Other fees and commissions. 551,152 645,519
4.3 Foreign exchange trading income (Loss) 217,979 247,229
4.4 Dividend income - -
4.5 Other income. 111,354 107,211
4.6 Total non-interest income 1,172,921 1,314,371
5 TOTAL OPERATING INCOME 2,170,472 3,024,113
6 OTHER OPERATING EXPENSES
6.1 Loan loss provisions (56,171) 48,303
6.2 Staff costs 1,060,859 1,120,617
6.3 Directors emoluments 91,062 112,923
6.4 Rentals charges 175,652 191,337
6.5 Depreciation charge on property and equipment 153,549 195,942
6.6 Armortisation charges 109,404 43,053
6.7 Other operating expenses 1,135,368 1,219,069
6.8 Total other operating expenses 2,669,724 2,931,244
7 Profit/(loss) before tax and exceptional items (499,252) 92,869
8 Exceptional items
9 Profit/(loss) after exceptional items (499,252) 92,869
10 Current tax - -
11 Deferred tax 179,039 (2,496)
12 Profit/(loss) after tax and exceptional items (320,212) 90,373
III. OTHER DISCLOSURES
1. NON-PERFORMING LOANS AND ADVANCES
a) Gross Non-performing loans and advances 2,460,719 2,444,338
Less:
b) Interest in suspense 458,657 602,736
c) Total non-performing loans and advances (a-b) 2,002,062 1,841,602
Less:
d) Loan loss provisions 675,046 678,137
e) Net Non- Performing loans (c-d) 1,327,016 1,163,465
f) Realisable Value of Securities 1,327,016 1,163,465
g) Net NPLs Exposure (e-f) - -
2. INSIDER LOANS AND ADVANCES
a) Directors, shareholders and associates 230,276 -
b) Employees 825,303 899,326
c) Total insider loans, advances and Other Facilities 1,055,579 899,326
3. OFF-BALANCE SHEET ITEMS
a) Letters of credit, guarantees, acceptances 3,844,270 14,663,737
b) Other contingent liabilities 4,948,778 6,169,032
c) Total Contingent liabilties 8,793,048 20,832,769
4. CAPITAL STRENGTH
a) Core capital 9,044,102 9,083,122
b) Minimum Statutory Capital 1,000,000 1,000,000
c) Excess/(Deficiency) 8,044,102 8,083,122
d) Supplementary capital 1,451,200 821,323
e) Total capital (a+d) 10,495,302 9,904,445
f) Total risk weighted assets 32,967,062 39,685,462
g) Core capital/total deposit liabilities 27.9% 22.9%
h) Minimum Statutory Ratio 10.5% 10.5%
i) Excess/(Deficiency) 17.4% 12.4%
j) Core capital/total risk weighted assets 27.4% 26.3%
k) Minimum Statutory Ratio 10.5% 10.5%
l) Excess/(Deficiency)(j-k) 16.9% 15.8%
m) Total capital /total risk weighted assets 32.5% 25.0%
n) Minimum Statutory Ratio 14.5% 14.5%
o) Excess/(Deficiency)(m-n) 18.0% 10.5%
5. LIQUIDITY
a) Liquidity Ratio 39.9% 40.0%
b) Minimum Statutory Ratio 20.0% 20.0%
c) Excess/(Deficiency)(a-b)
19.9% 20.0%
The financial statements are extracts from the audited books of the institution.
Signed -------------- Signed --------------
Kassi Ehouman Charles Orony Ogalo
Managing Director Chairman
Registered Office: Ecobank Towers,15th Floor, P.O. Box 49584-00100, Nairobi, Kenya. Tel: 2883000. E-mail: kenya@ecobank.com