Annual Report 2012
INDEX – Overview 2012 in brief - AGB events highlights - Gulf Bank Algeria in 2012 - Gulf Bank Algeria shareholders business - Summary of Gulf Bank Algeria business - Summary of financial year end – Commercial Business - Overall business performance - RETAIL Business - CORPORATE business – Support Activity - Marketing and Communication - Human Resources - Accounting and Management Control - Internal Control – Approval of 2012 results - Extract of the Minutes of the General Assembly - Certification Report 2012 – Financial Statements - Accounting principles - The balance sheet - The TCR - Cash Flow
Board Of Directors
El KABARITI Abdulkarim President
HAYAT Massaoud Mahmoud Hadji Jawhar Vice President President of CE and BAC
FEKIH AHMED Mohamed Member
SUKKARIEH Rabi Member
GHOZALI Hadj Ali Member
Executive Management
Mohamed LOUHAB General Manager
Mourad DAMARDJI Deputy General Manager Exploitation
José Carlos RODRIGUES PESTANA TEIXEIRA Deputy General Manager Administration
Kamal BENDAMARDJI Head of Division – Operations – Accounting and IT
Yassine KADDOUR Head of Division Risk Management
Overview : 2012 in brief
Annual Report 2012
AGB Events Highlights
Establishment of the bank by 03 banks from KIPCO Group in Kuwait (Burganbank, JKB, TIB) 2003 Obtaining approval from Bank of Algeria in December 2003 2004 Opening of the first branch in Dely Ibrahim Corporate Customers Oriented 2007 Widening the action scope to private customers’ by a diverse range of products 2008 Gulf Bank Algeria gets closer to its customers by starting the expansion of its network in the country 2011 Reorganization of Credit and Risk Management business 2012 The opening of t Self Banking first branch in Algeria and all bank ATM accept VISA and MasterCard.
Annual Report 2012
Gulf Bank Algeria in 2012
47 327
Clients
33
Branches
551
Contributors
1.5
$ Billions Total Balance Sheet
23.3%
Return on equity
Annual Report 2012
Business of the shareholders of Gulf Bank Algeria Gulf Bank Algeria was established on 15 December 2003 with the contribution of three banks that are leaders in their markets, belonging to KUWEIT PROJECT COMPANY group which was created in 1975, and is one of the largest groups in the Middle East. It is very diverse, and is present in 21 countries in the Middle East and North Africa with assets of over 25 billion USD. KIPCO has interests in more than 73 companies, mainly in Arab countries and employing more than 8,000 people worldwide. Its main areas of activity are focused on financial services (banking and insurance) and media. KIPCO also has direct and indirect interests in the areas of health, tourism, industry, consulting and real estate.
Burgan Bank
Tunis International Bank
Jordan Kuwait Bank
2012 was a year of strong performance for AGB majority shareholder, which led to positive growth of key financial indicators. Revenues and profits are consolidated resulting in a maximized yield of 20% tangible equity, representing a balance sheet total of 6 billion Kuwait dinars. The overall assessment of the operation has a good performance with levels of ideal capitalization and liquidity; the solvency ratio is 18.5% with better credit quality and low NPLs (classified debts).
Tunis International Bank provides a comprehensive range of international financial services to corporations, financial institutions, individuals and governments in Tunisia and abroad. Despite the tight economic conditions and lower interest rates, Tunis International Bank has maintained a strong balance sheet and has recorded a 6.7% growth in client deposits and 5.7% of assets. In 2012, Tunis International Bank has received from the International Business Initiative Directions (BID), the international price of gold in Europe, for quality and technology.
10% shareholder in the AGB capital, it is considered the largest subsidiary of Burgan Bank. Despite a difficult period in 2012 of the economy of Jordan with the escalation of political tensions in the region, the turnover rose by 5.5% to reach 117,584 Jordan KD with a net profit of 46,356 Jordan KD, up with 17% against 13.42% for loans. JKB participates for 24% of the total income of Burgan Bank. In 2012, it received from Global Banking & Finance Review three awards including that of the Best Bank in Jordan and for its credit card the best co-branded.
Equity
Equity
106
Equity
Total Assets
563
Total Assets
Total Assets
1.753 21.345
Operating Revenue
679
Operating Revenue
283
Operating Revenue
Net Profit
198
Net Profit
186
Net Profit
Return on Equity Number of Branches In MUSD
12.4% 24
Return on Equity Number of Branches
21.17% 2
Return on Equity Number of Branches
527 3394 166 66 12.75 % 67
Annual Report 2012
Summary of Gulf Bank Algeria major business
«A leading bank in terms of technological innovation»
« A leading bank in terms of technological innovation » The year 2012 witnessed much turbulence in different parts of the world politically, and economically. This turmoil has spared Algeria which has recorded several positive events both economically within the five-year plan 2010/2014 on many development projects, and politically with the establishment of new national and local assemblies from the elections organized under the new law governing the new political parties in the country. Thanks to prudent macroeconomic policies, the indicators show significant results, while benefiting from external accounts largely in surplus for $ 190 billion and roughly balanced public accounts whose low deficit was financed through the use of revenue from oil taxes combined in the regulation fund revenues for the equivalent of $ 71 billion. Gulf Bank Algeria continued its extended network universal banking strateg in order to be closer to its customers and cover all customer segments. It set major goals for 2012 to : Develop its business; Provide customers with a better quality of services; Differentiate itself as a reference bank as regards technological innovation; Play an active role in the financing of the country’s economy.
Several milestones were achieved in this respect in 2012, such as : The branch network has recorded this year another extension through 04 new branches in the inland cities: Tebessa Ain Mlila, Tizi Ouzou and Annaba. Eleven other agencies are being refurbished, and waiting for the approval of the Banque d’Algérie. As a first in Algeria, opening on the main boulevard in central Algiers of a fully automated Self Banking, giving customers more innovative technological services of high quality. Expanding the range of products and services, particularly in the field of electronic banking, thus becoming the first issuer in Algeria of the VISA Platinum and Master Card. All customer transactions made by hard currency cards will be allowed in real time in 2013 by DHI / front office application acquired by the bank. In the same continuity of service diversification, all ATM’s and POS of the bank now accept Visa and MasterCard. Also, as a complementarity, national e-commerce, will witness an advanced and implementation on the ground following the certification of AGB interface to use IPC cards to make purchases on the net. Facilitation and revision of tariff conditions for BAYTI real-estate loan, knowing how important it is for our customers, to acquire or improve a property designed for housing. The launch of a structuring and innovative project on the establishment of a work-flow system for a complete overhaul of the automated process management for the customer transactions processing.
Annual Report 2012
Year-end financial summary Adjustment
2010
2011
2012
Total Assets
57 308.76
75 211.48
105 239.27
Total credit
26 424.53
44 627.92
64 967.74
Net Income
4 644.34
6 320.93
9 562.95
Gross operating income
3 000.88
4 302.55
6 631.95
Net Profit
2 031.05
2 591.30
3 999.08
2010
2011
2012
Credit / Total assets
46%
59%
62%
Stockholders’ equity / Total assets
20%
17%
15%
Stockholders’ equity / credit
44%
28%
24%
ROA
4%
3%
4%
ROE
18%
21%
23%
Gross / Credit
11%
10%
10%
Stockholders’ equity
26%
34%
43%
Solvency ratio
43%
26%
18%
Adjustment
4 644.34
+ 46% 10
75 211.48
12
11 578.72
+ 40% 10 10
11
12
9 562.95
+ 51% 10
105 239.27
Total assets In MDZD
57 308.76
11
6 320.93
Net banking income In MDZD
64 967.74
11 12 609.25
12 15 341.12
Equity In MDZD
44 627.92
Total credit In MDZD
26 424.53
+ 19% 10
11
12
Commercial business
Annual Report 2012
Overall commercial performance The year 2012 has confirmed the commitment taken for already 09 years during the creation of the bank to help finance the economy through increased participation and an effective presence on the Algerian market.
Net profit meanwhile, grew by a very significantly from 54% over the previous year to reach 3.999 MDZD. This results in a positive return on equity of 23.3% growth for 06 years.
As such, as the results of previous years, efforts have achieved all the goals in 2012, with a steady upward trend in the overall operations of the bank or, generally a level of activity and very positive confirmation of the soundness of financial structures of the bank.
19 171
26 305
35 353
1 078
1 462
2 031
2 591
07
08
09
10
11
3 999
Evolution of Net In MDZD
The bank continued its close support, providing services to a client portfolio of 47,327 clients, which corresponds to a growth of 38.86% compared with the previous year. The number of customer accounts meanwhile has experienced significant growth and continued, reaching 49,223 accounts out currency accounts, an increase of 34.5%.
523
12
47 327
Evolution customers
This growth was also accompanied by a strong risk management in 2012 resulting in lower bad debt in comparison with the previous year. The financial structure of the bank is consolidating more and more by a constant evolution of total assets to reach 105,239 MDZD up 40%. As for equity including retained earnings of the year, they spend 12.609 MDA to 15.341 MDZD.
10
11
12
The commitment and active involvement of staff and management either by collecting resources or financing of economic activity, have achieved satisfactory results. Thus, the year 2012 recorded a GDP of MDZD 9563, an increase of 51% against 34.46% for 2011. The evolution of sales is drawn upward through the development f 55% of net interest income and 47% commissions.
Capital allocation
09
15 341 MDZD
58% Capital 23% Profit for the year 8% Retained earnings 8% Fund for general banking risks 2% Reserves
Annual Report 2012
Retail Business
Evolution of the customer portfolio
Particular attention was paid to this segment for the year 2012. Ambitious targets have been set for our business. This is primarily to expand our goodwill for this type of customer. It is a proactive approach towards the individual customer by offering products more tailored and diversified. To this end, the recruitment of new retail customers has enabled strong growth of 6861 new checking accounts, while savings accounts have been in relative terms the largest increase, or 61.2%.
80 70 60 50 40 30 20 10
49 223 65%
63%
26 944
36 601
61%
50000
47 327
40000
35 353
30000
26 305
20000 23%
22%
22%
0 Corporate
16%
13%
13%
10000
0 10
11 Particular
Savings booklet
12 Total customer
Total accounts
Annual Report 2012
The electronic banking products very popular with our customers for the facilities they offer, rose significantly. The amount of transactions of CIB cards was up 30.8%. The attractiveness of the three types of VISA marked an evolution in terms of transaction value of 110%. The popularity of these types of cards will certainly maintain the exclusive launch Algerians in early 2013, the opportunity to become users of VISA Platinum and MasterCard.
This, after the widespread acceptance of this type of card for all ATM and POS of the bank at the end of 2012. Moreover, Gulf Bank Algeria continues to make the necessary efforts to meet a growing need for Algerians, the financing of real estate. But also, the efforts are directed towards the professional market which is just like the first, a priority market for the bank.
The property, a conquest The offer for the acquisition of real estate financing has been accepted and improved to allow easier access to this type of credit. It was completed with the signing of 20 protocols with developers to simplify the customers access to buying a home.
Evolution of retail credits MDZD
3 968
2 292 1 207
10
414
248
16 11
Outstanding Credit Immobilier BAYTI
12 Outstanding credit Proline
The level of commitments to the retail customers through two formulas BAYTI for real estate and Proline for professionals rose 72.5% which represents MDZD 4382. Real estate loans account for only 90.5% in 1676 which MDZD new uses in 2012, a record increase of 73%.
Annual Report 2012
The corporate sector is the heart of business of the bank and the locomotive of excellence of all financial transactions. The big structural projects of the bank launched in 2012 concerning this type of clientele, increasingly demanding greater speed waiting in support of their operations but also more quality in the services offered by the bank Conquer new market shares in 2012 was marked by a positive dynamic that eventually rally very interesting business activities and various corporate sectors, corresponding to 2,425 new customers. This represents 28% of all customers in this segment since the launch of the bank’s activities in 2004.
64 949 49 979 44 636
38 186
75.764,15 MDZD
66% Current accounts 28% Term accounts 6% Savings accounts
In the same positive trend, commercial activity has a significant increase in direct and indirect commitments. In fact, they spend MDZD 80,469 in 2011 to 127,105 MDZD in 2012, an increase of about 47,265 MDZD in absolute terms and 56% in relative terms. For direct commitments, funding of operating cycles constitutes the bulk of lending to 47.158 MDZD, who in turn recorded a change of 48% in relative value compared to 2011. In addition, the accompanying medium-term financing of investment projects that creates wealth, evolving rapidly from 90% to 12.538 MDZD.
26 412
10 Ressources
11
12 Credit fund
Moreover, the collection of resources has evolved in a very satisfactory way to achieve MDZD 75,764, corresponding to a 50% increase in the stock of resources at the end of 2011. Noting in passing that the orientation of the shares of resource gathering in 2012 focused on improving the volume and duration of long-term investments. Deposits in the participatory form, as to them, represent 44% of long-term investments.
Ventilation des crédits d’exploitation
Evolution Resources and credits In MDZD
75 764
Distribution of resources
Corporate Business
65.15% 17.63%
47.158 MDZD
7.21% 6.23% 3.73%
Advances Shariah-compliant financing Other credits in CT Discount Accounts receivable
Annual Report 2012
Allocation of funds by signing
Signature commitments recorded meanwhile a significant increase. It is about 26,938 MDZD in absolute terms and 67% in relative value, for a total of 67,409 MDZD.
67.409 MDZD
72.14% 13.75% 8.94% 4% 0.54%
Letters of Credit Payment guarantees Other commitments Deposit on market Downstream effect on trade 0.53% Guarantees Customs 0.11% Off-balance sheet commitments classified
30 792
40 471.45
67 409
10
11
12
Evolution of Off-balance sheet MDZD
It is also noted that the proportion of equity financing in the credit year to year increases to represent 20% of total loans granted by cash. Network development within the country should further enhance this trend in the future.
The activity of foreign trade was marked by a strong evolution, both in terms of volume as the amount of transactions. In terms of components, the commitments related to the opening of documentary letters of credit remain important and are the most important part of this type of credit.
Total Quality, challenge and reality Quality treatment of bank operations within all its structures, became everyone’s AGB employees, who are involved one way or another. Measure, improve and maintain the quality of service are now part of their daily lives. Thus, 2012 is marked by the launch for the first time, two major operations. The first is a continuous survey on the website, on the perception by customers of the quality in the bank. The second is the launch of operations «mystery shopper visit» across the branch network. They were followed by targeted training to improve weaknesses and recognized competence in raising more, the employees of the bank.
Annual Report 2012
These actions have resulted in an increase in lines confirmation that we enjoy with the corresponding 66%, demonstrating the confidence accorded by foreign partners. Finally, it is important to note also that the issue of SWIFT messages (open / modify / use of funds) was automated by integrating OUT BATCH system in the management of the bank. This is indicative of the lure customers for innovative and exclusive products and services that we offer, but also efforts to establish a continuous manner, a better quality of service in dealing with international operations.
300000 Evolution of CREDOC volumes and MT In MDZD
To do so, the Correspondent Banking has been a particular focus on strengthening and expanding relations with foreign correspondents to meet the demands of customers.
19 433
15000
16 242
200000
135 479 11 943
10000
100000
5000
50000 0
20000
187 466
250000
150000
278 764
jan 10
Number of CREDOC
jan 11
jan 12
0
Volume CREDOC
Credit risk Recovery measures initiated by the bank have borne fruit. A constant watch was put in place during the year which resulted in a more rapid and appropriate response for each case arises. Thus bad debts have evolved down in 2012 and this both in absolute and relative terms.
Support Business
Annual Report 2012
Communication & Marketing SMS Banking AGB The «Marketing and Communication» activity gave positive support to commercial activities on the occasion of the opening of new branches, and for extension of the products offered, not to mention the image of the bank increasingly present in the minds of citizens. They are based on the press and on various internal communication media.
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88 888
0555 8
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Simplifions la banque
Five integrated institutional campaigns were undertaken for the branch’s Self Banking and four other agencies inside. The official inauguration of the Self Banking branch of Algiers has been an opportunity to launch and publicize the operation of the first PLC branch in Algiers under innovative services it offers to customers. In addition to communication tools existing products at the branch level, an internal campaign SMS Banking was launched and affecting a significant number of customers as well as providing information on the innovations introduced by the bank’s operations that they initiate. Patronage and sponsorship This is essential to mark the engagement of Gulf Bank Algeria alongside actors and citizens initiative process. As every year the «Souk» association of medical students enjoyed the confidence of the bank in the form of assistance for the organization of a leisure day at the beach of Club Des Pins for 800 patients and / or disabled children from different hospitals, orphanages and special schools in the Wilaya of Algiers. In another chapter, AGB was present at the celebrations of the fiftieth anniversary of independence, through a sponsoring operation in the 4th edition
of the International Cultural Festival of Symphonic Music in 2012. Under a wide media coverage, the organized event witnessed the attendance of 24 countries at the Algerian National. This event has helped to create a space for exchange and especially meetings between Algerian musicians and international guests. It also allowed the public to discover the different ways in which can be broken symphonic music and offer the opportunity to submit unperformed works.
Annual Report 2012
Human Resources In line with the overall strategy of the Bank, HRD has experienced strong growth in 2012 of activity, particularly in the services of recruitment, career management and training.
2013 is based on two primary objectives :
The year 2012 saw 215 new recruits graduates, this in response to the development needs of the bank’s activities and the expansion of the network. A total of 551 employees committed to the bank, of which 58% are under 35.
Promote ethical and social behavior as well as the results.
Improve the performance of current and future employees
These actions will be further supported by the opening in early 2013 the activities of the first training skills of the bank.
In the area of training, AGB has strengthened its investment policy in the means of preparing future leaders and especially the talent management must ensure the succession of management. The budget allocated to education in 2012 was 75 million dinars, which represents 8.9% of payroll, against 5.7% in 2011.
600
551
500
432
400
362 214
300
Headcount bank
200 100
265
282
192
166
118
78
114
286 164
196
218
10
11
0 08
Workforce Agency
09
Workforce Central Structures
12
Total workforce
Annual Report 2012
Accounting and Management Control During fiscal 2012, the General Accounting continued to improve the quality of services for different structures of the bank, especially with a more rigorous control of accounting operations. Moreover, in the context of the separation of duties, it was created the cell «Accounting and Taxation». As for the aspects of management planning and monitoring of achievements, management control was reinforced by a new tool to better understand all the data and allow easy implementation of a number of scenarios and variables.
In other words, it is the application of the analysis of the performance of the branches by the DEA «DATA wrap Analysis» method. The year 2012 was also the year of the launch of the project implementation cost accounting activities.
Self Banking
Annual Report 2012
Internal control
Under the control of the Risk Management division, the internal control system is based on three independent structures to each other whose missions are complementary. This is compliance, and continuous monitoring of operational risk.
To comply with the guidelines of the regulator in terms of ethics and the fight against money laundering, the department has strengthened its compliance activities and the frequency of monitoring the movement of funds. Permanent control witnessed the enhancement of its missions through the integration to its traditional tasks of so-called «thematic» missions.
This was complemented by controls on remote parts as well as general inspection missions. The activity of the permanent control has not only led to a marked improvement in the application procedures as well as better management of operational risks. On another level, it has greatly improved the understanding of the regulatory texts agency.
These cover specific compartments. Four missions by agency and by quarter are well programmed thereby strengthening the control day to day operations of all kinds made by the branch.
In parallel, work on developing an operational risk mapping was initiated by the establishment of workshops RCSA (Risk and Control Self Assessment).
Une meilleure gestion du risque opérationnel
Approval of 2012 results
Extract of the Minutes of the General Assembly Held in March 31, 2013 The year two thousand and thirteen and March 31 and from four o’clock in the afternoon, held a meeting of the General Meeting of Shareholders at the headquarters of Gulf Bank Algeria, corporation, social capital 10,000,000,000.00 DZD, located in HaouchKaouch, Road Cheraga, Dely Ibrahim, Algiers. It was up a sheet, signed by the shareholders present and represented those involving 999,999 shares equivalent to 99.99% of the share capital of the bank. The Assembly proceeded to elect its chaired by Mr. Abdelkrim ALKABARITI, assisted by Messrs. Office: Massaoud Djawhar Mahmoud Haji Hayat Mohamed EL FEKIH, Hajj Ali and Rabih GHOZALI SOUKARIEH. LOUHAB Mohamed, Director General is appointed as secretary. Were also present : Mr. Meguellati InCha allah Mr. Khedouci Bechala. In their capacity as auditors. The office certifies true and accurate attendance sheet which is attached to these minutes. The President shall ensure that following the attendance Ordinary General Meeting is legally substituted. The Chairman stated that the number of shares required by law to allow the Ordinary General Assembly quorum is achieved insofar as the shareholders present and represented hold 999,999 shares, or 99.99%. The President then provides members of the Annual General Meeting the following documents identified : Copies of notices sent to shareholders; The powers of attorney; The attendance sheet signed by the members present; The management report for the year 2012; The report of the auditors in 2012; The financial situation for the year 2012; The draft resolutions. And the agenda includes the following points : 1- Approval of the balance sheet and the consolited income statement for the year ended December 31, 2012;
2 - Allocation of profit for the year ended 31 December 2012; 3 - Discharge; 4 - Special Report of the Statutory Auditors on the agreements and commitments referred to in Articles 628 and following of the Commercial Code including those passed between a company and its officers, but also between companies in a group with common social leaders; 5 - Setting the amount of attendance fees; 6 - Fees paid to the auditors for the year 2012; 7 - Other resolutions. Therefore, the Ordinary General Meeting of Shareholders, having exposed and discussed all the points and topics for discussion decides : RESOLUTION N°. 01: APPROVAL OF THE BALANCE SHEET AND INCOME STATEMENTS FOR THE YEAR ENDED 31 December 2012 The General Meeting, ruling under the quorum and majority required for Ordinary Shareholders’ Meetings, having reviewed the reports of the Board of Directors and Auditors for the year ended December 31, 2012, approves the balance sheet December 31, 2012 and the income statement for the year 2012 prepared in accordance with standards of Financial Accounting System (CFS) as adopted by the Algerian authorities, resulting in a net profit 3.999.079.7140, 61 Algerian Dinars. This resolution was adopted unanimously. RESOLUTION N°. 02: DISTRIBUTION OF THE RESULTS FOR THE YEAR ENDED 31 DECEMBER 2012 The General Meeting, ruling under the quorum and majority requirements for Ordinary Shareholders decides on the allocation of income as follows : Legal reserves : 5%, amounting to : 199,953,987.03 DZD. Dividends distributed to shareholders 1,750,000,000.00 DZD. Provision for directors’ fees : 39,607,843.14 DZD. Retained earnings : 2,009,517,910.44 DZD. This resolution was adopted unanimously. RESOLUTION N°. 03: DISCHARGE The General Meeting, ruling under the quorum and majority required for ordinary shareholders and accordingly the approval of the foregoing resolutions, the General Meeting discharges the members of the Board of the performance of their duties for the year. This resolution was adopted unanimously.
RESOLUTION N°. 04: STATUTORY AUDITORS ON THE AGREEMENTS REFERRED TO ARTICLES 628 AND FOLLOWING THE CODE OF COMMERCE IN PARTICULAR THOSE PASSED BETWEEN A COMPANY AND ITS OFFICERS BUT ALSO BETWEEN GROUP COMPANIES AND COMPANY EXECUTIVES WITH JOINT REPORT. The General Meeting, ruling under the quorum and majority required for Ordinary General Meetings Ordinary notes the special report by the Statutory Auditors on the agreements and commitments referred to in Articles 628 and following of the Commercial Code. This resolution was adopted unanimously. RESOLUTION N°. 05: SETTINGNG THE AMOUNT OF FEES The General Meeting, ruling under the quorum and majority required for Ordinary Shareholders’ net fixed 3,100,000.00 dinars maximum amount of the annual fee payable to the Board of Directors as fees and until it is decided otherwise. This resolution was adopted unanimously. RESOLUTION N°. 06: HONORARY AUDITORS FOR THE YEAR 2012 The General Meeting, ruling under the quorum and majority requirements for Ordinary Shareholders decided to fix the fees of the auditors for the year 2012 in accordance with the law. This resolution was adopted unanimously. RESOLUTION N°. 07: OTHER RESOLUTIONS The General Meeting, ruling under the quorum and majority requirements for Ordinary Shareholders grants all powers to the bearer of an original, copy or extract of the minutes of this Meeting to carry out all legal or administrative formalities and make all filings and registrations required by legislation relating to all the foregoing resolutions. This resolution was adopted unanimously. Nothing is in the agenda, the meeting was adjourned at seven in the evening.
The Président
The Secretary
Certification Report 2012 Gentlemens ; As part of our mission of Statutory Auditors, we have audited the financial statements, a copy attached to this report, prepared by Gulf Bank Algeria for the year ended on December 31, 2012 and includes : The balance sheet assets and liabilities, The off-balance sheet The income statement, The cash flow statement, The statement of changes in equity The notes to the financial statements. The accounts of the Gulf Bank Algeria were approved by the Board of Directors as they are presented to you during this AGM. The preparation of financial statements in accordance with regulations issued by the Bank of Algeria, is the responsibility of the Bank. Our responsibility in our capacity as auditors is to express an opinion on these financial statements based on the audit in accordance with auditing standards generally accepted by the industry. Those standards require that the audit be planned and performed to obtain reasonable assurance about whether the financial statements are free of material errors or anomalies. It should be noted that the accounts of Gulf Bank Algeria (AGB) are adopted in accordance with the instructions of the Bank of Algeria and the Algerian new financial accounting system, repository, broadly consistent with international standards IAS / IFRS. Our examination has therefore been examining, on a test basis, evidence supporting the amounts reported in the financial statements. Our audit has also allowed us to assess the accounting principles used and significant estimates made by management, as well as respect for the presentation of financial statements as a whole. As part of our work, we performed the tests and checks as we considered necessary for the performance standards of the profession and our opinion. Given the results of this work, we believe we are able to say that our audits provide a reasonable basis for expressing an opinion on the financial statements at 31 December 2012.
Opinion on the accounts : Under the procedures performed, we are able to certify that the financial statements as they are presented are appended to this report, with a total balance sheet of assets and liabilities in the amount of : One hundred and five billion two hundred and thirty -9265000 Algerian Dinars (105 239 265 000 DZD) and a net profit of : three billion nine hundred and ninety-nine million eighty thousand Algerian Dinars (3 999 080 000 DZD) are fair and accurate and give a true picture of the situation financial of the AGB Bank December 31, 2012. We have also performed the specific verifications required by laws and regulations. The corresponding special reports are attached as appendices. In addition, we can say that we have no comments on the accuracy and consistency with the financial statements, financial information in the annual report presented by the Board of Directors.
2012 Financial Statements
ANNEX N°. 1 record to 31/12/2012
ASSETS 1
Cash, central banks, the Centre de Chèques Postaux, Treasury
2
Financial assets held for trading
3
Financial assets held available for sale
4
Loans and advances to financial institutions
5
Loans and advances to customers
6
Assets held to maturity
7
Current assets taxation
8
Postponed tax Assets
9
Other assets
10
Accruals
11
Participation in the joint venture subsidiaries or associates
12
Investment Property
13
Tangible
14
Intangible
15
Goodwill acquisition TOTAL ASSETS
Thousands DZD
31/12/2012
31/12/2011
31 721 782
21 013 680
18 351
21 163
64 949 392
44 622 412
882 001
658 704
48 593 133 628
5 854 505
3 166 571
160 302
15 675
15 675
4 205 129
2 830 037
98 143
35 004
105 239 265
75 211 482
ANNEX N°. 1 BALANCE SHEET at 31/12/2012
LIABILITIES
Thousands DZD
31/12/2012
31/12/2011
1
Central Bank, CCP
2
Liabilities to Financial Institutions
135 816
235 163
3
Due to customers
65 459 325
43 726 586
4
Debts evidenced by certificates
10 304 827
6 263 544
5
Current tax liabilities
1 796 690
1 120 793
6
Deferred Taxes Liabilities
7
Other liabilities
5 766 180
8 864 210
8
Accruals
4 365 969
545 945
9
Provisions for liabilities and charges
279 725
61 016
10
Grants equipment other investment subsidies 1 435 535
913 129
10 000 000
10 000 000
397 913
268 348
11
Fund for General Banking Risks
12
Due subordinates
13
Capital
14
Paid-in Capital
15
Reserves
16
Standard Assessment
17
Revaluation Difference
18
Retained earnings
1 298 205
621 452
19
Net Profit
3 999 080
2 591 296
105 239 265
75 211 482
TOTAL LIABILITIES
ANNEX N°. 1 BALANCE SHEET at 31/12/2012
Thousands DZD
COMMITMENTS
31/12/2012
31/12/2011
A
A - Commitments given
67 409 124
40 471 445
1
Financing commitments for financial institutions
2
Financing commitments given to customers
52 132 806
39 834 104
3
Guarantee commitments order institutions financial
2 520 127
595 731
4
Commitments order Customer security
5
Other commitments given
6
Guarantee commitments on behalf of customers
7
Doubtful
B
B - Commitments received
8
Financing commitments received from financial institutions
9
Bonds and Guarantees order Financial institutions
10
Engagements Guarantees received from financial institutions
11
Guarantees received from customers
12 756 191
41 610 10 337 557
8 740 441
4 847 367
5 376 015
5 490 190
3 364 426
ANNEXN° 2 INCOME STATEMENT TO 31/12/2012
COMMITMENTS
Thousands DA
31/12/2012
31/12/2011
1
Interest income
4 195 108
2 706 119
2
Interest and similar expenses
- 781 927
- 609 960
3
Commissions
6 377 520
4 341 264
4
Expenses / Commissions
- 286 914
- 181 007
5
Net gains or losses on financial assets held for trading
6
Net gains or losses on financial assets available for sale
7
Income from other activities
59 164
65 804
8
Other expenses
- 1 287
9
NET REVENUES
9 562 951
6 320 933
10
Operating expenses
- 2 684 028
- 1 840 790
11
Depreciation and Amortization / Capital
- 246 976
- 177 595
12
GROSS OPERATING INCOME
6 631 947
4 302 548
13
Provisions and impairment losses on bad debts
- 2 735 998
- 1 515 002
14
Reversal of provisions, impairment and recovery of amounts previously written
1 611 799
741 283
15
OPERATING INCOME
5 507 748
3 528 828
16
Net gains or losses on other assets
17
Extraordinary items Products
18
Extraordinary items Charges
19
PROFIT BEFORE TAX
5 507 748
3 528 828
20
Income taxes and similar results
- 1 508 668
- 937 533
21
NET PROFIT
3 999 080
2 591 296
ANNEX N° 3 TABLE OF CASH FLOWS TO 31/12/2012
Profit before tax . + / - Depreciation of tangible and intangible assets
Thousands DZD
31/12/2012
31/12/2011
5 507 748
3 528 829
224 923
177 963
1 173 468
774 059
1 398 391
952 022
. + / - Net charge for impairment of goodwill and other assets. Net provisions and other impairment . + / - Net loss / gain from investment activities . + / - Income / expenses from financing activities . + / - Other movements Total included in net profit before tax non-cash items and other adjustments . + / - Cash flow from operations with financial institutions
- 99 348
- 99 658
4 839 611
- 6 934 775
3 611 680
463 751
. - Taxes paid
- 1 104 661
- 842 431
. = Decrease / (increase) in assets and liabilities from operating activities (total of items 9-13)
7 247 282
- 7 413 113
14 153 421
- 2 932 262
. + / - Change in property, plant and equipment
- 1 663 153
- 432 056
TOTAL NET CASH USED IN INVESTING ACTIVITIES (Total items 16 to 18) (B)
- 1 663 153
- 432 056
. + / - Cash flow from or to shareholders
- 1 784 978
- 1 510 471
- 1 784 978
- 1 510 471
10 705 290
- 4 874 789
Net cash generated from operating activities (A)
14 153 421
- 2 932 262
Net cash outflow from investing activities (B)
- 1 663 153
- 432 056
Net cash used in financing activities (C)
-1 784 978
-1 510 471
-
-
. + / - Cash flow from operations with customers . + / - Cash flow from operations affecting financial assets or liabilities . + / - Flow related to transactions involving non-financial assets or liabilities . + / - Flow related to transactions involving non-financial assets or liabilities
TOTAL NET CASH GENERATED BY OPERATING ACTIVITIES (Total items 18 and 14) (A) . + / - Cash financial assets including investments . + / - Cash flow from investment properties
. + / - Other net cash flows from financing activities TOTAL NET CASH USED IN FINANCING ACTIVITIES (Total items 20 and 21) (C) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (D) INCREASE / (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (A + B + C + D)
Effect of changes in exchange rates on cash and cash equivalent (D)
ANNEX N° 3 TABLE OF CASH FLOWS TO 31/12/2012 (continued)
CASH AND CASH EQUIVALENTS Cash and cash equivalents at the trade opening (total of items 26 and 27) Cash, central banks and post office (Assets and Liabilities) Accounts (assets and liabilities) and loans / borrowings from financial institutions Cash and cash equivalents at end of year (Total items 29 and 30) Cash, central banks and post office (Assets and Liabilities) Accounts (assets and liabilities) and loans / borrowings from financial institutions NET CHANGE IN CASH
21 034 843
25 909 632
21 013 680
25 806 750
21 163
102 882
31 740 133
21 034 843
31 721 782
21 013 680
18 351
21 163
10 705 290
- 4 874 789
ANNEX N°04 STATEMENT OF CHANGES IN EQUITY
TITLE Balance at 31/12/2010
Thousands DZD
Social Capital 10 000 000
Impact of changes in accounting method
Gap Assessment
Revaluation
Reserves and Balance 2 394 796 5 475
Impact of significant error corrections Balance at 31/12/2011 Fixed
Share premium
10 000 000
2 400 271
Change in revaluation of fixed assets Change in fair value of financial assets available for sale Change in translation differences Dividends paid
-1 510 471
Capital transaction Net income for fiscal 2011 N-1 Balance at 31/12/2011
2 591 296 10 000 000
3 481 096
10 000 000
3 481 096
Impact of changes in accounting method Impact of significant bug fixes Balance corrected 31/12/2011 Change in revaluation of fixed assets Change in fair value of financial assets available for sale Change in translation differences Dividends paid
-1 784 979
Capital transactions Net income for fiscal 2012 BALANCE AT 31/12/2012
3 999 080 10 000 000
5 695 197
Explanatory Notes
ANNEX N°. 5 TO FINANCIAL STATEMENTS
NOTE N°1
ACCOUNTING POLICIES
1. Statutes Gulf Bank Algeria was established in 2003 in the form of Company By Shares. It was approved as a commercial bank by Decision No 03/03 of the Bank of Algeria from 15 December 2003. 2. AGB operating network At 31 December 2012, the Bank had a network of 31 agencies operating in the country. The Bank received approval in 2012 to open three branches. 3. Main accounting conventions and directives The financial statements of the Gulf Bank Algeria comply with, regulations and accounting principles laid down by the laws and regulations of the Bank of Algeria. The accounting rules applied within the Bank are in accordance with the provisions laid down by the Accounts sector Algerian Banks and accounting standards used in the Islamic banking system, the references are repeated below Law N°. 07-11 25/11/2007 concerning accounting system financial Regulation No. 09-04 of 23 July 2009 on the chart of accounts applicable to banking and financial institutions Bank and accounting rules, Regulation N°.09-05 of 18 October 2009 concerning the establishment and publication of the financial statements of banks and financial institutions, 3.1 Basis of presentation of financial statements The financial statements are made pursuant to Regulation No. 09-05 of 18 October 2009 the Bank of Algeria, on the compilation and publication of the financial statements of banks and financial institutions. 3.2 Rules for evaluation of financial statements 3.2.1 Historical cost The financial statements centralize the accounts of all agencies and are prepared in accordance with the principle of continuity of operations and cost. 3.2.2 The currency conversion The monetary assets and liabilities in foreign currencies Bank items are translated into dinars at the average rate prevailing at the balance sheet date. The Bank does not generate income and expenses denominated in foreign currencies. 3.2.3 Loans Loans and advances to customers in cost. Transaction costs are included in the products of their findings. A loan is considered to be impaired when it is past due more than 90 Days in this case the total receivables from the client in question are considered impaired and are subject, net financial guarantees, a provision for impairment in accordance with the instruction 74/94 bank of Algeria. uncollected interest on these loans are calculated and recorded in interest reserved, they are charged to a revenue account when they are actually received.
ANNEX N°. 5 FINANCIAL STATEMENTS
NOTE N°1
ACCOUNTING REGULATIONS AND METHODS
3.2.4 Depreciation Depreciation of assets is calculated based on the method of depreciation. The rates used are those commonly practiced, namely : - Tangible fixed assets Office equipment Telemonitoring Office furniture Transport equipment Computer equipment Safes Fixtures / fittings Household furniture and equipment -
10% 10% 10 % 20 % 20 % 10 % 10 % 20 %
For intangible assets :
Computer software
20 %
3.2.5 Provisions -
Provisions for doubtful accounts registered :
They are made in accordance with Instruction No. 74/94 of 29/11/1994 of the Bank of Algeria. A loan is considered to be impaired when it is unpaid for more than 90 days. In this case, all debts held (event of default) on the client concerned are considered impaired and are subject, net financial guarantees, a provision in the amount of : •
30% if the debt is not paid between 91 and 179 days. This claim is referred to as «potential debt problems ;
•
50% if the debt is not paid between 180 and 365 days. This claim is described as «very risky debt» ;
•
100% if the debt remains unpaid for more than a year. This claim is called a «debt compromised» ;
The Provisions for general banking risks :
The Bank is in accordance with the regulations, a provision for general banking risks in accordance with the provisions of Directive 74/94 of 29/11/1994 of the Bank of Algeria. This provision is made annually to the tune of 1% of the receivables to 3% of total performing loans. The provision thus formed is not allowed to deduct the tax base. 4. Reserves 4-1. Legal reserves Pursuant to Article 717 of the Commercial Code and the Statute of the Bank, there shall be a legal reserve on profits made from 5% up to 10% of capital. The statutes of the Bank authorize the Ordinary General Meeting to allocate a portion of net income after deduction of the legal reserve, voluntary reserve accounts. 4-2. Reserve requirement According to the Instruction of the Bank of Algeria No 02/04 of 13/05/2004 relating to minimum reserve system, Gulf Bank AlgeriaAGB-determined monthly, the amount of the monetary policy instrument of the Bank Algeria, is calculated by non-accounting, which stands at 31 December 2012 8,168,792 000.00 DZD. This reserve is calculated at 11% of the aggregate amount of deposits in dinars.
5. Product achievement and margins Products and margins generated for financing are based on the date of the contract, these products are determined in advance and recorded in accounts receivable and recognized as revenue as and when they fall due. Charges levied on documentary credits are calculated from their openings and application of banking conditions in force. 6. Offset accounts The presentation of the financial statements comply with the principle of non-compensation between the balance sheet, off-balance sheet, income and expenses. Operations of the same nature and those which the Bank has a legally enforceable right to compensation in law are presented at their net worth. 7. Investments in progress Investment expenditures relating to branch opening projects are counted by the head office through ongoing investment. At the opening of the branch, such costs are charged to the respective capital accounts. 8. Computer system The computer system in place since the creation of the Bank is called GBS (Global Banking System). It is based on the approach «client» folder and is multi, multi-lingual and multi-seat. It is flexible and allows the various modules to interface with other systems in and out. The features of the system allow to support the following : • • • • • •
Opening of accounts ; Client / accounts Management ; Management representatives accountable ; Managing signatures affixed ; Management checkbooks ; Operations Management.
NOTE N°2
INFORMATION SHEET
ASSETS POST 2.A.1 : CAISSE, BANQUES CENTRALES, TRESOR PUBLIC ET CCP 31 12 2012
31 12 2011
Variance
%
31 721 781 605
21 013 680 128
10 708 101 477
51%
This item includes all of the accounts of immediate availability in dinars and foreign currency of the Bank, whose breakdown is given below, which constitute 30.14% of total assets : Cash in hand DA
1 752 477 021
Cash in hand DAB
147 370 500
Cash in hand currency
95 088 423
Account with the Bank of Algeria DA
9 762 003 210
Accounts at the Bank of Algeria currency
1 161 677 941
Payments pending allocation at the Bank of Algeria
2 810 020 000
Deposit facility
10 700 000 000
In term loan
4 970 000 000
Account with the CCP
49 411 066
Accounts at the Treasury
267 807 643
Other assets
5 925 801.00
TOTAL
31 721 781 605
The equivalent in dinars currency customer deposits has amounted to 1,025,764,133 dinars which is 3.23% of the Bank’s resources whose total amount is 31,721,781,605 dinars. The accounts of immediate liquidity of the Bank, marking an increase of 51% compared to fiscal 2011 primarily as a result of customer deposits all types combined, which recorded an increase of 21 billion dinars, or 50%. Immediate Cash Bank is a significant level. Achievable with current assets, it covers the sum of liabilities on demand and short-term. The liquidity ratio to 31/12/2012 calculated pursuant to Instruction No. 07-2011 of the Bank of Algeria is 2.65% being the minimum accepted by 1%. POST 2.A.2 LOANS AND DEBTS ON FINANCIAL INSTITUTIONS 31 12 2012
31 12 2011
Difference in value
Variance in %
18 350 689
21 163 084
-2 812 395
-13%
This has been held with : • •
colleagues in Algeria foreign Correspondents (CV / DZD) TOTAL
481 777 17 868 912 __________ 18 350 689
The decrease in this item is mainly explained by that of our assets among foreign correspondents, made at the end of December 2012 to hedge foreign trade transactions whose settlement is imminent.
POST 2.A.3 : LOANS AND DEBTS TO CUSTOMERS 31 12 2012
31 12 2011
Variance
%
64 949 391 756
44 622 411 789
20 326 979 967
46%
In relative terms, represents 61.72% of total assets of the Bank against 59.33% at the end of 2011. Receivables from customers, increased by 20,326,980 thousand dinars, or 46% more in reference to 2011. This increase is linked to the development of the activity of the Bank on the one hand, and the extension of its operating network that is reinforced with three (3) new branches during the year 2012. The analysis of these receivables by maturity and by economic agents and depending on the quality (current or NPL) is provided in the tables below.
Economic agents Designation
Non-financial corporations Public
Private
Households
Total
Current receivables 41 497 372
1 282 356
42 779 728
> 6 months to 12 months
0 to 6 months
4 615 813
299 317
4 915 130
> 12 months to 24 months
3 079 808
608 322
3 688 130
> 24 months
8 649 275
2 743 181
11 392 456
NPLs net of provisions Receivables potential problems Risky debt NPLs Provisions for doubtful debts TOTAL GENERAL
41 332
41 332
675 511
675 511
14 798
68 117
82 915
1 282 484
91 705
1 374 189
59 856 393
5 024 881
64 949 391
31 12 2012
31 12 2011
Variance
%
882 001 039
658 703 974
223 297 065
34%
POST 2.A.4 : CURRENT TAX ASSETS
The content of this post consists essentially in the installments paid under the Tax Corporate Profits (IBS) which amounts to 843 779 771.87 DZD against 642 050 027.44DZD paid in 2011. The increase is explained by the fact that the payments made in 2012 are higher than those paid in 2011, the fact that payments are calculated on the result of last year (2011) and the amount was higher than 2010.
NOTE N°2
INFORMATION RELATING TO THE BALANCE SHEET
POST 2.A.5 : DEFERRED TAXES - ASSETS 31 12 2012
31 12 2011
Variance
%
48 592 848
-
48 592 848
100%
This is the part of the IBS tax to be recovered (claims on the Treasury) during the year 2013 at the time of actual payment of some expenses, including those relating to holiday pay (including leftovers) and the bonuses on the result, to be paid to the staff of the Bank, who have been subject to non-deductible provisions from IBS. POST 2.A.6 : OTHER ASSETS 31 12 2012
31 12 2011
Difference in value
%
133 628 794
5 854 505 482
-5 720 876 688
-98%
This post by subscribing to 133 628 thousand Dinars, has marked a sharp decline in the amount of 5 720 877 thousand dinars by reference to the level of late 2011. Analysis table below which brings up this significant decrease is explained by the fact that some accounts, including those of the portfolio and transactions awaiting settlement, positioned in 2011 in this chapter, were classified at 31/12 / 2012 in «accruals». In addition, the neutralization 31/12/2012 account balance due after receipt of effects and documentary collections or 4016 million dinars, also explains the decrease.
Adjustment
31 12 2012
Dinars Variations
31 12 2011
Portfolio Accounts Recovery values
1 004 079
-1 004 079
Collection Items
36 285 790
-36 285 790
Effects upholstering. Match. foreign
1 475 569 740
-1 475 569 740
Current values of compensation
2 237 323 711
-2 237 323 711
3 750 183 320
-3 750 183 320
44 310 805
-44 310 805
1 811 974 727
-1 811 974 727
116 880 781
241 846 900
-124 966 119
16 748 013
6 189 731
10 558 282
Subtotal
133 628 794
2 104 322 162
-1 970 693 369
TOTAL
133 628 794
5 854 505 482
-5 720 876 689
Subtotal
-
Other assets Loans and advances Operations pending regulations Other receivables and deposits Miscellaneous (stock supplies ....)
POST 2.A.7 : ACCRUED 31 12 2012
31 12 2011
Difference in value
%
3 166 571 430
160 302 319
3 006 269 111
1875%
By entering 3 166 571 thousand DZD, this item has shown a significant increase due to : - Positioning in this chapter of some portfolio accounts and pending settlement transactions, which were classified to 31/12/2011 in the above item «Other assets» ; - The prepaid expenses, consisting essentially in rents which rose 153 285 thousand DZD.
Adjustment
31 12 2012
31 12 2011
Changes
Portfolio Accounts Recovery values
1 629 214
1 629 214
Collection Items
53 597 711
53 597 711
-
-
671 952 335
671 952 335
1 344 262 899
1 344 262 899
14 257 656
14 257 656
Recovery values. Foreign correspondents Current compensation values Checks to reject in teleclearing Dishonored checks income Subtotal
-
2 085 699 816
2 085 699 816
Other settlement accounts
-
Loans and advances to employees
-
-
Pending settlement operations
707 942 447
707 942 447
Service charges deferred
313 587 118
Other assets
160 302 319
153 284 799
59 342 050
59 342 050
Subtota
1 080 871 614
160 302 319
920 569 295
TOTAL
3 166 571 430
160 302 319
3 006 269 111
POST 2.A.8: AFFILIATES, SUBSIDIARIES, JOINT VENTURES, ASSOCIATED 31 12 2012
31 12 2011
15 675 000
15 675 000
Difference in value
Difference%
This heading has witnessed no change at the end of the year 2012, it houses the participation of the bank to the capital of two financial institutions : Guarantee Fund in bank deposits Centre of interbank pre-compensation POST 2.A.9 : TANGIBLE ASSETS 31 12 2012
31 12 2011
Variation
%
4 205 128 883
2 830 036 629
1 375 092 254
49%
Net book value of the tangible assets of the Bank amounted to the end of 2012 a total of 4,205,128,883 dinars against 2 830 036 629 dinars at the end of 2011, recording an increase of 1 375 092 254 DZD, up 49%. By nature, tangible assets are as follows :
Description Grounds Social buildings Furniture and household equipment
31/12/2012
31/12/2011
Value difference
1 384 333 069
1 118 020 279
266 312 790
444 130 900
444 130 900
3 956 498
3 956 498
-
15 730 183
13 324 365
2 405 817
1 516 657
1 516 657
-
Hardware
246 616 437
173 262 957
73 353 479
Other office equipment
190 532 753
143 098 525
47 434 228
Office furniture
98 995 414
89 393 982
9 601 432
Vehicles
83 116 157
66 920 930
16 195 227
Telemonitoring
26 709 203
26 309 173
400 030
1 553 443 224
1 111 672 611
441 770 612
791 945 089
508 925 042
283 020 048
4 841 025 583
3 256 401 020
1 584 624 563
31/12/2012
31/12/2011
Ecart en valeur
13 227 301
5 200 000
8 027 301
5 501 889
4 044 444
1 457 444
121 432 243
85 582 295
35 849 948
Depreciation Other office equipment
41 392 036
24 697 571
16 694 466
Depreciation of office furniture
29 900 388
21 516 652
8 383 736
Depreciation Vehicles
47 108 995
39 070 555
8 038 439
9 458 503
6 801 758
2 656 745
364 455 127
236 918 827
127 536 301
Depreciation Other equipment and tools
1 435 090
1 305 656
129 434
Depreciation Furniture and social facilities
1 985 127
1 226 631
758 495
635 896 700
426 364 390
209 532 310
Safes Social amenities
Facilities Ongoing investment TOTAL VALUE OF ACQUISITION
Description Depreciation Administrative Buildings Depreciation Safes Depreciation Hardware
Depreciation Telemonitoring Depreciation Facilities
TOTAL DEPRECIATION
Tangible assets of the Bank by registering in acquisition value to 4,841,025 thousand DZD, against 3 256 401 thousand dinars at the end of December 2011, have marked an increase of 1 584 624 thousand dinars, up 48.66% more than their volume at the end of 2011, and at the same time, new depreciation has been carried out for a total of 209 532 thousand dinars for 2012. Depreciable tangible assets of the Bank are generally amortized over 23.90% of their gross value in 2012 against 26.17% at the end 2011.
POST 2.A.10 : INTANGIBLE ASSETS 31 12 2012
31 12 2011
Difference in value
Difference in %
98 143 166
35 004 310
63 138 856
180%
The increase recorded in this post is relative to acquisitions made by the bank for various software enabling the : - Improvement of the quality of service offered to customers ; - Improvement of the productivity of employees of the bank ; - Optimization of the controls upstream and downstream for banking transactions. Including : - STEMATCH SOFTWARE : Software for the indication of NOSTRO reconciliation statements ; - AEG MONITORING : Monitoring of SWIFT applications ; - VMWARE : Software for the virtualization of the Bank providers ; - AUTOCAD SOFTWARE : Software used by the Development Services Department of the network under development agencies. LIABILITIES : POST 2.P.1 : DUE TO FINANCIAL INSTITUTIONS 31 12 2012
31 12 2011
Difference in value
%
135 815 599
235 163 349
- 99 347 750
- 42%
This post features only the term borrowing from the Mortgage Refinancing Company (MRC) in the framework of real-estate credit made by the Bank. The decrease was due to repayments made during the year 2012. POST 2.P.2 : CUSTOMER DEPOSITS 31 12 2012
31 12 2011
Difference in value
%
65 459 324 703
43 726 586 174
21 732 738 529
50%
By entering 65 459 325 thousand DZD, this post represents 62.20% of total assets of the Bank, and covers all customer deposits at sight and term, off cash vouchers. These are found in «debt securities in issue.». All customer deposits including deposits written in the form of treasury bills, amount to 75 764 152 thousand Dinars, representing 72% of total assets of the Bank. By nature, these deposits rose by 21 732 738 529 dinars, that is 50% higher than their 2011 level and are distributed as follows:
Description Passbook accounts Accounts deposits Current accounts Individual accounts checks Current accounts Currencies Received in warranty provisions Other deposit accounts TOTAUX
31 12 2012
31 12 2011
Difference
4 489 670 620 10 648 450 941 21 694 804 816 3 888 757 276 676 343 225 21 648 627 235 2 412 670 590
2 960 837 282 6 218 101 343 14 283 591 668 2 642 242 383 440 925 256 15 877 157 123 1 303 731 119
1 528 833 338 4 430 349 598 7 411 213 148 1 246 514 893 235 417 969 5 771 470 112 1 108 939 471
65 459 324 703
43 726 586 174
21 732 738 529
By economic agents and residual terms, these resources are detailed in the table below : Sequence
Time remaining
Amount households
Nbr households
Amount corporate
Nbr corporate
12 136 400 129
54923
44 261 434 735
9010
1
to 3 months
2
> 3 months up to 6 months
1 270 302 119
62
1 591 250 000
13
3
> to 6 months to 12 months
370 092 474
28
4 925 000 000
13
4
> 12 to 18 months
233 940 799
9
20 000 000
1
5
> 18 months to 24 months
35 000 000
3
6
> 24 months to 30 months
7
> 30 months to 36 months
8
> 36 months to 48 months
400 000 000
1
9
> 48 months to 60 months -
-
-
10
> to 60 months Subtotals
-
-
-
-
14 045 735 521
55 025
51 197 684 735
9 038
Payables
215 904 446
TOTAL
14 045 735 521
55 025
51 413 589 181
9 038
POST 2.P.3 : DEBT BY TITLE 31 12 2012
31 12 2011
Difference in value
%
10 304 827 444
6 263 544 362
4 041 283 082
65%
By closing 10,304 827 thousand dinars, deposits made by customers in the form of treasury bills, continue to grow (65%) compared to the end of 2011. The structure of the remaining term of the debt is as follows : By economic agents and residual terms, these resources are detailed in the table below: Thousands of DA Remaining term Up to 3 months > Months up to 6 months > 6 months to 12 months > 12 to 18 months > 18 months to 24 months > 24 months to 30 months > 30 months to 36 months > 36 months up to 48 months > 48 months to 60 months > 60 months + Accrued interest TOTAL
Amount 1 063 200 1 952 500 4 778 000 658 500 652 500 300 900 323 000 38 500 359 500 178 227 10 304 827
POST 2.P.4 CURRENT TAX LIABILITIES 31 12 2012
31 12 2011
Difference in value
%
1 796 690 230
1 120 793 441
675 896 789
60%
This is basically the Tax on Profits of Companies (TPC) due no later than April 30, 2013, net of installments already paid during the year 2012, which amount rises to 843 779 772 Dinars (see «Current tax assets»). POST 2.P. 5 OTHER LIABILITIES 31 12 2012
31 12 2011
Ecart en valeur
%
5 766 180 440
8 864 210 040
-3 098 029 600
-35%
This post reflecting debts from various accounts, which detail is included in the table below, has recorded a fall of 35%, and can be explained as follows : - The ranking in «accruals» values payable after collection ; - The increase in the amount of 1 488 837 thousand dinars, provisions for checks Bank ; - In addition, the Account Payable after receipt of effects and documentary collections, which has a balance to 31/12/2012 4 373 million DZD, was neutralized. Collection accounts CEAE Customer
31 12 2012
31 12 2011
ADJUSTMENT
-
3 057 964 994
-3 057 964 994
CEAE Foreign correspondents
-
1 475 569 740
-1 475 569 740
Subtotal
-
4 533 534 734
-4 533 534 734
37 670 813
29 178 005
8 492 808
5 219 862 668
3 731 026 082
1 488 836 586
Other accounts payable CNAS para tax debts Provisions for bank checks Provision for guarantee fund FGDB
107 286 732
-
107 286 732
Provision for amounts due to staff 2
201 107 125
-
201 107 125
Current accounts of associates
60 542 295
60 542 294
1
Background of social work
42 783 637
20 979 313
21 804 324
Transfers awaiting complementation
20 873 522
200 791 355
-179 917 833
Suppliers – warranty deduction
29 504 525
23 686 412
5 818 113
Delay penalties
18 694 335
8 516 579
0 177 756
Other customers in credit and amounts due
27 854 789
255 955 265
-228 100 476
5 766 180 440
8 864 210 040
-3 098 029 600
TOTAL POST 2.P. 6 ACCRUED 31 12 2012
31 12 2011
Ecart en valeur
%
4 365 969 169
545 944 595
3 820 024 574
700%
This post records the transient operations and shows an accumulated balance of 4 365 969 thousand DZD, thus marking a significant increase in reference to end of 2011, resulting mainly from : - Positioning to this post of value payable after collection, whereas they were classified in the chapter «Other liabilities». - The positive adjustments in some reserve accounts and transitional accounts, detailed as such.
Description
31 12 2012
31 12 2011
Adjustment
CEAE Customer
3 162 814 805
0
3 162 814 805
Subtotal
3 162 814 805
3 162 814 805
Other accruals Interest received in advance Service fees payable Provision for guarantee fund FGDB Provision for amounts due to staff Agios reserved Other transitional accounts
707 271 255 145 352 607
366 490 337 5 2550 592 71 144 076 55 759 590
340 780 918 92 802 015 -71 144 076 -55 759 590 19 524 403 331 006 099
545 944 595
3 820 024 574
19 524 403 331 006 099
TOTAL
4 365 969 169
POST 2.P. 7 : PROVISIONS FOR LIABILITIES AND CHARGES 31 12 2012
31 12 2011
Difference in value
%
279 725 003
61 015 526
218 709 477
358%
This section houses the provisions in coverage : Execution risk signature commitments issued for certain customers with unpaid debts were classified (doubtful debts) for = 26 532 309.00 DA Operational risk = 32 986 460.00 DA Various disputes with third = 220 206 233.00 DA POST 2.P.8 : FUNDS FOR BANKING RISKS 31 12 2012
31 12 2011
Difference in value
%
1 435 535 532
913 128 880
522 406 652
57%
This item is explained solely by the constitution of the provision under the 74/94 regulation of the Bank of Algeria. This provision is annually funded up to 1% with total receivables; it ceases to be funded when it reaches a rate of 3%. POST 2.P.9: CAPITAL 31 12 2012
31 12 2011
Variance
%
10 000 000 000
10 000 000 000
-
0%
The share capital of the Bank has not experienced change after year 2012. POST 2.P.10 : RESERVES 31 12 2012
31 12 2011
Difference in value
%
397 912 782
268 347 966
129 564 816
48%
This post consists of the legal reserve whose evolution corresponds to the assignment at 5% of the profit achieved in 2011. POST 2.P.11 FURTHER EXTENSION 31 12 2012
31 12 2011
Difference in value
%
1 298 204 568
621 452 062
676 752 506
109%
By closing 1 298 205 thousand AD, this POST marks a sharp increase by reference to the end of 2011, that is + 109% due to the uneven development of the following : - The reduction of the debit balance released by the account «Change of method» following the SCF implementation, that is 305 774 thousand dinars, - The allocation to retained earnings account for a portion of the net profit recorded for the year 2011, that is 927 226 thousand dinars. POST 2.P.12: RESULT OF THE FINANCIAL 31 12 2012
31 12 2011
Ecart en valeur
%
3 999 079 780
2 591 296 322
1 407 783 458
54%
The net result shows 3 999 080 thousand DZD, and progresses by 54% compared to end 2011, after having been subject to tax on companies profit of 1 508 668 thousands DZD. This result will be submitted for distribution to the Ordinary General Assembly of the Bank.
NOTE N° 3
INFORMATION BALANCE SHEET
A - COMMITMENTS GIVEN 31 12 2012
31 12 2011
Difference in value
Difference in%
67 409 124
40 471 445
26 937 679
67%
POST 3.HB.1 : FINANCING COMMITMENTS TO CUSTOMER Désignation Engts funding
31 12 2012
31 12 2011
52 132 806 107
34 472 590 330
17 660 215 777
5 403 123 785
-5 403 123 785
39 875 714 115
12 257 091 992
Engts guarantee TOTAL
52 132 806 107
Difference in value
Commitments recorded in this position are made to 31/12/2012 up to 93.27% (48 625 million DA) through the openings of documentary credit in favor of the customer. The large volume of these commitments is straight one hand, the development of sales generated by the Bank’s foreign trade operations, and secondly, the legal provisions contained in the 2009 CFL limiting foreign trade operations in one way of settling Credoc. Note, however, that this regulation has been relaxed somewhat, respectively in 2010 and in 2011 to allow other means of settlement for this particular production companies. POST3.HB.2 : COMMITMENTS OF ORDER WARRANTIES OF FINANCIAL INSTITUTIONS
31 12 2012
31 12 2011
Difference in value
Difference in%
2 520 126 693
595 731 356
1 924 395 337
323%
These commitments consist primarily of guarantees issued on the orders of foreign banks on behalf of foreign companies operating in Algeria under contracts for the benefit of Algerian operators (Administration and Companies). POSTE 3.HB.3 : COMMITMENTS OF WARRANTIES ON BEHALF OF CUSTOMER 31 12 2012
31 12 2011
12 756 191 125
Difference in value
Difference in%
12 756 191 125
100%
These guarantees that are actually progressing only by 58%, correspond to commitments made for customers in the form of guarantees and sureties as well as letters of credit with deferred payment. Indeed, in 2011 guarantees issued in the form of guarantees and endorsements have been classified in financing commitments chapter (POST 3.HB.1) for a total value of 5 403 124 thousand dinars. B - RECEIVED COMMITMENTS 31 12 2012
31 12 2011
Difference in value
Difference in%
10 337 557
8 740 441
1 597 116
18%
POST 3.HB.4 : WARRANTY COMMITMENTS RECEIVED FROM FINANCIAL INSTITUTIONS 31 12 2012
31 12 2011
Difference in value
Difference in%
4 847 366 876
5 376 014 585
-528 647 709
-10%
These commitments relate to bank guarantees received by the Bank for its commitment customers.
POST 3.HB.5 : WARRANTY COMMITMENTS RECEIVED FROM CUSTOMERS 31 12 2012
31 12 2011
Value Difference
Difference in %
5 490 190 209
3 364 425 566
2 125 764 643
63%
These commitments represent financial guarantees received by the Bank to its customers in the form of collateral securities and savings bonds easily liquefiable.
NOTE N° 4
INFORMATIONS RELATIVES AU COMPTE DE RESULTATS
4. R.1 INCOME STATEMENT INFORMATION 31 12 2012
31 12 2011
Value Difference
Difference in %
10 631 792 459
7 113 187 846
3 518 604 613
49%
The banking operations, closing at 10 632 million DZD, have marked an increase of 3 519 million dinars by reference to the end of 2011 (ie, 49%). At December 31, 2012, their total consisted essentially of : - Interest margins earned on various types of loans granted to customers in the amount of 4 195 108 thousand DZD ; - Commissions of various types dominated by those perceived especially on foreign trade operations, accruing 6 377 520 thousand DZD. 4. R.2 OPERATING EXPENSES 31 12 2012
31 12 2011
Value Difference
Difference in %
1 068 840 555
790 967 672
277 872 883
35%
The increase in operating expenses in progression of 35% is due to : - Interest and margins paid on deposits from customers (deposits, accounts books, certificates of deposit and provisions on Credoc) for an amount of 781 927 thousand dinars. - Fees charged by the Banque d’Algérie on the transfer operations, for an amount of 270 538 thousand dinars, - Interest paid on refinancing by SRH, mortgage loans for 14 042 thousand dinars. The increase registered by operating expenses is due to the increase in customer paid deposits, on one hand, and the volume of foreign trade operations on the other. 4. R.3. GENERAL OPERATING EXPENSES 31 12 2012
31 12 2011
Value Difference
Difference in %
2 684 028 709
1 840 789 820
843 238 889
46%
Operating expenses by combining to 31 December 2012, a total of 2684 million dinars, show an increase of 843 million dinars by reference to the end of 2011. This increase is explained by the evolution of headings used in the table below, including «services» and «personnel costs» which increase is due to : - development of the Bank activities, - the extension of its operating network, - the increase of the Bank’s employees and the improvement of their salaries.
Particulars Services Staff costs Taxes Other expenses TOTAL
31/12/2012
31/12/2011
Adjustments
927 183 411 1 074 214 287 393 132 161 289 498 850
706 037 443 742 011 005 200 823 495 191 917 878
221 145 968 332 203 282 192 308 666 97 580 972
2 684 028 709
1 840 789 821
843 238 888
«Other expenses» heading consists primarily of insurance costs paid to cover various incidents (equipment, funds, etc. ....) and the guarantee premium on customer deposits fees. 4. R.4 DEPRECIATION AND IMPAIRMENT OF ASSETS 246 976 158
177 594 731
69 381 426
39%
This post has recorded a strong increase, following the commissioning of investments including equipment and facilities on branches opened in 2012. Indeed, from overall gross value perspective, redeemable investments of the Bank increased by 1,035 million dinars. 4. R.5. CHARGE TO PROVISION AND LOSS OF ILOSS OF VALUE AND BAD DEBTS 31 12 2012
31 12 2011
Ecart en valeur
Ecart en %
2 735 998 343
1 515 002 373
1 220 995 970
81%
By closing at 2736 million dinars, this post has marked an increase of 81% compared to its level at the end of 2011. Its contents are detailed in the table below : Particulars Charge to Doubtful Debt Provisions
31 12 2012
31 12 2011
Adjustments in DZD
1 002 774 208
1 217 142 233
-214 368 025
Charge to regulated Provisions / LRMC
288 843 095
43 050 174
245 792 921
Charge to settled / Credit / Cash provisions
463 750 367
116 716 825
347 033 542
Charge to settled / Commitment / Signature provisions
777 229 250
105 192 940
672 036 310
Provisions for risks and charges
198 879 424
31 986 460
166 892 964
367 941
-367 941
Charge to provision on assets Losses on finding counterfeit TOTAL
4 522 000
545 800
3 976 200
2 735 998 343
1 515 002 373
1 220 995 971
4. R.6 : PROV. RECOVERY AND VALUE IMPAIRMENT, AND RECOVERY ON PAID OFF DEBTS 31 12 2012
31 12 2011
Ecart en valeur
Ecart en %
1 611 799 099
741 282 948
870 516 151
117%
This item has recorded the recovery and adjustment of the various provisions made in the previous year. The details of these provisions are shown in the table below :
Particulars
31 12 2012
31 12 2011
Adjustment DZD
FGBR recovery / Short Term
292 103 698
4 552 468
287 551 230
FGBR recovery / Medium and long term
216 448 372
20 195 904
196 252 468
FGBR recovery / Off-balance sheet
501 610 474
21 477 719
480 132 755
Recovery on loss of value and provisions on debts
546 519 565
695 056 858
-148 537 293
Provision recovery on outstanding leave
55 116 990
TOTAL
1 611 799 099
55 116 990 741 282 949
870 516 150
4. R.7 PROFIT AFTER IBS TAX 31 12 2012
31 12 2011
Ecart en valeur
Ecart en %
3 999 079 740
2 591 296 322
1 407 783 418
54%
By closing at 3999 million dinars, net income for the year recorded at the end of 2012 a strong increase of 54% with reference to the end of 2011.
NOTE N° 5
INFORMATION RELATING TO TABLE OF CASH FLOWS
Under the rules of the Bank of Algeria No. 09-05 of 18 October 2009, which defines as the format of cash flow table, the said indirect method that consists in determining the net cash adjustment by the readjustment of net income for the year by restating cash flows generated from operational business, investment operations as well as financing operations in Gulf Bank Algeria. This note contains an explanation of the most relevant information in the table of cash flows : 5. T1 Net amortization of tangible and intangible fixed assets This post reflects the net increase or 224 923 thousand DZD, carried out under the year 2012, of the depreciation of tangible and intangible assets. 5. T2 Net provisions and other impairment Are included in this chapter for a total of 1 173 468 thousand dinars, net flow provisions to cover different types of risks related to the business of the Bank, especially : • • •
Statutory provisions (FGBR) Impairment losses on personal loans Provisions for liabilities and charges
= 522 407 milliers de DA = 432 352 milliers DA = 218 709 milliers DA
5. T3 Cash flow from operations with financial institutions Flows included in this post - 99 348 thousand DZD- have derived from transactions with the Mortgage Refinancing Company, in repayment of refinancing some mortgage loans made by the Bank. 5. T4 Cash flows from transactions with customers The negative net flow, that is 4 839 611 thousand DZD, reported in this post reflect the transactions generated by the sharp increasing activity of the Bank with the customer, whether in terms of resources or jobs. 5. T5 Flows related to transactions involving non-financial assets or liabilities This chapter reflects the flow coming respectively from regularization accounts posts and other assets and liabilities. The overall flow of this chapter, up to 3 611 680 thousand DZD, consists essentially of : - - - - -
Cash accruals Cash interest margins and Deferred Cash on provisions for issuance of bank check Flow prepaid expenses Cash on foreign tele-compensation
= = = = =
+ 92 802 milliers de DA + 340 781 milliers de DA + 1 488 837 milliers de DA + 153 285 milliers de DA - 1 568 238 milliers de DA
5. T6 Paid t taxes The amount reported in this chapter is almost in its entirety to IBS liquidation balance of IBS on the profit for the year 2011, which was settled in 2012, on the one hand, and to the provisional payments on the estimated income for the year 2012 on the other hand. 5. T7 Cash flow from or to shareholders The flow reported in this chapter corresponds to dividends and bonuses distributed to shareholders during the year 2012 and taken from the net profit achieved in the year 2011 : - Dividends = 1 750 000 milliers de DA - Bonuses = 34 979 milliers de DA
NOTE N°6
INFORMATION RELATING TO CHANGES IN EQUITY TABLE
6. C1 Balance at 31 12, 2010 (reserves and results) The balance carried forward, that is 2 394 796 thousand DZD is made as follows : - - -
Legal Reserve Retained earnings Net profit 2010
= = =
166 795 milliers de DA 196 947 milliers de DA 2 031 054 milliers de DA
6. C2 Impact of changes in accounting method This post reflects the decrease in 5475 thousands DZD registered by the change in method account, that is 311,249 thousand AD, following the application, effective from January 1, 2010, of new accounting standards (SCF) defined by the Bank of Algeria : - Regulation No. 09-04 of 23 July 2009 on the chart of accounts and bank accounting rules for banks and financial institutions, - Regulation No 9-05 of 18 0ctober 2009 on the establishment and publication of financial statements of banks and financial institutions. 6. C3 Dividends and fees paid in 2011 In this chapter are included, royalties and dividends paid in respect of 2010, respectively 30 471 and 1 480 000 thousand dinars, a total of 1 510 471 thousand DZD. 6. C4 Dividends and fees paid in 2012 On a net profit recorded for the year 2011, amounting to 1 784 979 thousand DZD and after deduction of the legal reserve, were distributed : - -
Dividends Bonuses
= =
1 750 000 milliers de DA 34 979 milliers de DA
The remaining balance has been placed in the «Retained earnings».
NOTE N°7
INFORMATION FOR SUBSIDIARIES, JOINT VENTURES AND ASSOCIATED ENTITIES
Investments in subsidiaries, joint ventures or associate entities : Entities
2012
2011
Guarantee Fund of Bank Deposits (3.571% share)
10 000
10 000
Center Pre-SPA Interbank Clearing (0.66% share)
5 675
5 675
15 675
15 675
TOTAL
This heading has witnessed no change in 2012, it includes the share of the Bank in two financial institutions.
NOTE N°8
RISK MANAGEMENT
AGB Board of Directors has approved the organizational structure of the Bank in which a Risk Management structure has been set up, and is headed by a Chief of Division reporting directly to the CEO. The structure is organized in three divisions : Credit Risk Management, Market Risk Management, Operational Risk Management and Compliance Department, whose responsible is also CTRF Correspondent. The Board of Directors of the Bank has also adopted the necessary policies that form the basis for risk management within the bank. 1-
Credit Risk
Strategies and Processes AGB has a Credit Policy which governs the granting of credit in different segmentations, Business Credit, credit to individuals and professionals in conventional forms and compliant with Shariah and loans to financial institutions and leasing. The Credit Policy provides a charter of delegated commitment authority for credit. Thus, there are several levels of decision exercised by credit committees (branch credit committee, corporate credit committee, retail credit committee, Executive Committee and Board of Directors). Structure and Organization The Credit Risk department assesses counterparty risk. Monitoring and implementation of the decision are the responsibility of the Credit Administration Department. Thus the Recovery Department ensures the management and monitoring of receivables and the Management and Reporting department provisioning (under development) is responsible for the development of statistics, reporting and analysis of portfolio management credit to assess claims and propose their classification. Scope and reporting systems A clear separation exists at AGB as for initiating a credit application and assessing counterparty risk. Branches send then client requests to the credit management companies. The latter drafts a note on credit proposal, accompanied by a business customer rating. The study is complemented by a Credit Risk Analyst who performs financial analysis and customer risk rating. The proposed credit being finalized, it is submitted to relevant credit committee for approval. Upon agreement, the Credit Administration Department is entrusted with the responsibility to ensure that all prerequisites are met before the installation and entering the credit allowed in the system. Credit Coverage In terms of risk appetite, a risk mitigation device is set up at AGB. It shows the types of safeguards and coverage accepted. Regarding real estate, the bank uses recognized experts to assess the value of the property to be mortgaged. The revaluation of mortgages is decided during the annual review of credit files. Approach to treatment of claims and their provisioning In terms of ranking of claims, AGB policy is consistent with international practices in the banking sector and the rules laid down by the regulations of the Bank of Algeria. Thus, a risk is considered non-performing if the account or debt remains unpaid for more than 90 days. Regarding the loans, an asset is considered non-performing at the end of the third unpaid monthly installment. The bank has a Risk Allowance committee (CPR) whose responsibility is to assess the quality of assets and decide the ranking of claims and provisioning in accordance with prudential regulations AGB is in accordance with the regulations of the Banque d’Algérie imposing a reserve general provision integrating equities at an annual rate of 1 to 3% of receivables. For classified debts, the provisioning rule of the Banque d’Algérie is particularly based on the duration of outstanding payments as follows :
Category Applicable provision : Total amount of obtained off financial guarantees commitments : - More than three months and less than 6 months 30% - More than 6 months and less than 1 year 50% - More than 1 year 100% 2-
Market Risk
Strategies and Processes AGB has developed its market risk policy approved by the Board of Directors of the Bank. Structure and Organization At AGB there is a separation between the structure in charge of cash management and Market Risk Department, which is part of Risk Management Division. AGB has also set up a Asset/Liability COmmittee (ALCO), which deals, decides and prepares periodic reporting to the Executive Committee of the bank on the various aspects of market risk : interest rate risk, liquidity risk, currency risk. For the moment, the bank ensures compliance of the conditions applicable to the customer banks; foreign exchange positions and the liquidity ratio are consistent with banking regulations. 3-
Operational Risk
Strategies and Processes At AGB, the functions of software development and computer security are separated. Thus the Computer Security and Business Continuity Department is attached to the Operational Risk Management. Its mission is to ensure independently on the adequacy and effectiveness and continuous systems and security procedures. This includes the development of both internal and external security measures. The head of this structure is also responsible for the establishment and maintenance of a system to ensure business continuity. The bank has also made available to its staff management procedures enabling all operational structures to have a practical guide and a frame of reference. Structure and Organization At AGB, the operational functions are managed under the authority of the Director-General by a Deputy Director in charge of business credit, personal credit, branch network, marketing and corporate communications and Deputy CEO for Administration, human Resources, Operations and IT. Reporting systems AGB has established a Department of Permanent control attached to the Division of Operational Risk, in charge of identifying and monitoring the actions of corrections of operational risks at all central structures and branches of the bank. AGB has begun the process of implementing a system of collection and analysis of operational risk incidents leading to actual and / or potential losses. It is based on a system called «Internal Control Charts», leading to the development of a panel of internal control and an automated incident management and development of risk mapping.
NOTE N°9
INFORMATION ON CAPITAL
Since 2009, the Bank has an authorized 1 000 000 ordinary shares with a nominal value of 10 000 dinars capital. (000’ DZD)
9.1 Regulatory Requirements Names of shareholders Burgan Bank
Number of shares
%
Shares Nominal Value 000’DZD
599 995
59.995
5 999 950
Bank International Tunisie
300 000
30.000
3 000 000
Jordan Kuwait Bank
100 000
10.000
1 000 000
United Golf Bank
1
0.001
10
Mr. ALKABARITI Abdelkrim
1
0.001
10
Mr. Messaoud Mohamed
1
0.001
10
Mr. William Lukens Khouri
1
0.001
10
Mr. Mohamed Fekih Ahmed
1
0.001
10
9.2 Dividendes distribués (000’ DZD) In thousands of dinars
2011
Value difference
Difference %
Distributed Dividends
1 784 979
870 516 151
117%
The distribution of dividends for 2012 has not yet been decided.
PAYMENT AND EMPLOYEE BENEFITS
NOTE N°10 10.1 The payroll evolution :
The total payroll in 2012 amounted to 1 009 853 Thousand DZD against 686 890 Thousand DZD in 2011, an increase of 47%. 10.2 Evolution of the workforce : Breakdown of employees by occupational socio-professional category : Senior executives Junior executives and lower management Operational staff Implementing Branches TOTAL
2012
2011
%
68
60
13%
437
341
28%
46
32
44%
551
433
27%
This number is allocated to 52% at the branch level and 48% at the central structures. Contracts and agreements of AGB staff do not provide compensation for retirement.
SPA au capital de 10 000 000 000.00 DA - RC N° 03 B 21041 / Route de Chéraga, BP N° 26 bis, Alger / Tél : +213 (0) 21 910 876 / +213 (0) 21 910 875 - Fax : +213 (0) 21 910 264
www.ag-bank.com
