Financial statements 2007
ENCOURAGEMENT BANK AD
INCOME STATEMENT for the year ended 31 December 2007
|
2007
BGN'000 |
2006
BGN'000 |
|
| Interest and other similar income | 13 470 | 10 515 |
| Interest and other similar expenses | (4 408) | (1 664) |
| Net interest and other similar income | 9 062 | 8 851 |
| Fee and commission income | 336 | 290 |
| Fee and commission expenses | (20) | (18) |
| Fee and commission expenses | 316 | 272 |
| Gains less losses from dealing in foreign currencies | 113 | 61 |
| Gains less losses from securities available-for-sale | 24 | 359 |
| Other operating income | 285 | 175 |
| Total operating income | 9 796 | 9 718 |
| Loan impairment and uncollectability losses | (12) | (2 767) |
| General administrative expenses | (4 770) | (3 378) |
| Profit from operations before taxes | 5 014 | 3 573 |
| Income tax expense | (510) | (550) |
| Net profit for the year | 4 504 | 3 023 |
ENCOURAGEMENT BANK AD
BALANCE SHEET as at 31 December 2007
|
31.12.2007 BGN'000 |
31.12.2006
BGN'000 |
|
| Assets | ||
| Cash and balances with the Central Bank | 31 837 | 6 138 |
| Due from other banks | 46 329 | 23 104 |
| Loans and advances to customers | 131 581 | 67 205 |
| Securities available-for-sale | 20 749 | 9 239 |
| Security held-to-maturity | 131 | 197 |
| Non-current assets held-for-sale | - | 2 206 |
| Property and equipment | 2 147 | 2 177 |
| Intangible assetsDeferred tax assets | 4738 | 74- |
| Other assets | 90 | 150 |
| Total assets | 232 949 | 110 490 |
| Liabilities | ||
| Due to other banks | 9 863 | 1 |
| Due to customers | 49 440 | 6 674 |
| Borrowed funds from international institutions | 95 820 | 55 011 |
| Other borrowed funds | 17 477 | 9 063 |
| Debenture loans | 5 019 | |
| Diferred tax liabilities | - | 55 |
| Other liabilities | 1 678 | 455 |
| Total liabilities | 179 297 | 71 249 |
| Shareholders' equity | ||
| Share capital | 39 574 | 29 574 |
| Reserves | 14 078 | 9 667 |
| Total shareholders' equity | 53 652 | 39 241 |
| Total shareholders' equity and liabilities | 232 949 | 110 490 |
ENCOURAGEMENT BANK AD
CASH FLOW STATEMENT for the year ended 31 December 2007
|
2007
BGN'000 |
2006
BGN'000 |
|
| |
|
|
| Cash flow from operating activities | ||
| Profit before taxes | 5 014 | 3 573 |
| Loan impairment and uncollectability losses | 12 | 2 767 |
| Depreciation/amortization | 263 | 264 |
| Net book value of assets written-off | - | 9 |
| Cash flows from operating profits before changes in operating assets and liabilities | 5 289 | 6 613 |
| Changes in operating assets and liabilities: | ||
| Decrease/(increase) in mandatory reserve deposit at the Cental Bank | (23 407) | (1 132) |
| Increase in placements with other banks | (7 628) | - |
| Increase in loans and advances to customers | (61 579) | (3 094) |
| (Increase)/decrease in securities available-for-sale | (11 603) | 3 586 |
| Increase in non-current assets held-for-sale | - | (47) |
| Decrease in interest and fee receivables | 14 | 118 |
| Decrease/(Increase) in other assets | 60 | (64) |
| Increase/ (decrease) in amounts due to other banks | 9 857 | (272) |
| Increase in amounts due to customers | 42 768 | 3 712 |
| (Decrease)/ increase in other borrowed funds | (3 419) | 4 057 |
| Increase in interest and fee payables | 353 | 114 |
| Increase in other liabilities | 330 | 119 |
| Net cash (used in)/from operating activities before income taxes | (48 965) | 13 710 |
| Income taxes paid | (456) | (583) |
| Net cash (used in)/from operating activities | (49 421) | 13 127 |
| Cash flows from investing activities | ||
| Purchase of equipment and computer software | (206) | (98) |
| Repayments of investments held-to-maturity | 66 | - |
| Net cash used in investing activities | (140) | (98) |
| Cash flows from financing activities | ||
| Issue of shares | 10 000 | - |
| Issue of bonds | 5 000 | - |
| Proceeds from long-term borrowed funds | 55 037 | 9 779 |
| Payments on long-term borrowed funds | (2 726) | (3 401) |
| Net cash from financing activities | 67 311 | 6 378 |
| Net increase in cash and cash equivalents | 17 750 | 19 407 |
| Cash and cash equivalents at the beginning of the year | 23 587 | 4 180 |
| Cash and cash equivalents at the end of the year | 41 337 | 23 587 |
ENCOURAGEMENT BANK AD
STATEMENTS OF CHANGES IN EQUITY for the year ended 31 December 2007
| Share capital | Statutory reserves | Other reserves | Revaluation reserve | Retained earnings | Total | |
| BGN'000 | BGN'000 | BGN'000 | BGN'000 | BGN'000 | BGN'000 | |
| Balance at 1 January 2006 | 29 574 | 1 392 | 1 744 | 1 352 | 2 778 | 36 840 |
| Allocation of profit for year 2005 for: | 2 788 | (2 788) | ||||
| * Reserves | - | 2 788 | - | - | (2 788) | - |
| Transfer to "profits and losses for the year" upon sale of available-for-sale investments | - | - | - | (452) | - | (452) |
| Net unrealised valuation gains from available-for-sale investments taken to equity | - | - | - | (328) | - | (328) |
| Effect of deferred taxes on items directly taken to equity | - | - | - | 158 | - | 158 |
| Net profit for the year | - | - | - | - | 3 023 | 3 023 |
| Balance at 31 December 2006 | 29 574 | 4 170 | 1 744 | 730 | 3 023 | 39 241 |
| Issue of share capital | 10 000 | - | - | - | - | 10 000 |
| Allocation of profit year 2006 for: | 830 | 2 193 | (3 023) | |||
| * Reserves | - | 830 | 2 193 | - | (3 023) | - |
| Net unrealised valuation gains from available-for-sale investments taken to equity | - | - | - | (93) | - | (93) |
| Effect of deferred taxes on items directly taken to equity | - | - | - | - | - | - |
| Net profit for the year | - | - | - | - | 4 504 | 4 504 |
| Balance at 31 December 2007 | 39 574 | 5 000 | 3 937 | 637 | 4 504 | 53 652 |
Dimitar Dimitrov
Executive Director
Sasho Tchakalski
Executive Director
Ivan Lichev
Chief Accountant
