The Consolidated Financial Statements

2539

Posted by: 23 june, 2023

JOINT STOCK COMMERCIAL MORTGAGE BANK "IPOTEKA BANK" AND ITS SUBSIDIARIES

Bank is registered in Uzbekistan to carry out banking and foreign exchange activities and has operated under the banking license No.74 reissued by the Central bank of Uzbekistan (the "CBU") on December 25, 2021.

The Bank's registered address is: P/o box 100000. 30, Shakhrisabz Street, Tashkent, Uzbekistan.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2022

(In millions of UZS)

	31 December 2022	31 December 2021
ASSETS
Cash and cash equivalents	5,070,178	7,229,674
Due from other banks	1,952,797	2,031,514
Loans and advances to customers	32,856,102	29,263,226
Debt securities at amortized cost	3,921,719	1,095,081
Financial assets at fair value through other comprehensive income	5,671	4,308
Investment in associates	30,180	22,907
Premises, equipment and intangible assets	313,596	325,586
Current income tax prepayment	-	25,666
Deferred tax asset	83,453	34,292
Other financial assets	29,883	21,385
Other non-financial assets	304,554	110,677
TOTAL ASSETS	44,568,133	40,164,316
LIABILITIES
Due to other banks	1,783,791	-
Customer accounts	12,569,851	13,632,275
Debt securities in issue	4,184,718	4,057,179
Borrowings from government, state and international financial institutions	19,145,068	16,947,048
Subordinated debt	425,905	425,905
Deferred tax liability	-	-
Other financial liabilities	9,137	13,306
Other non-financial liabilities	188,114	161,559
TOTAL LIABILITIES	38,306,584	35,237,272
EQUITY
Share capital	2,987,950	2,990,570
Retained earnings	3,270,843	1,936,488
Revaluation reserve of financial assets at fair value through other comprehensive income	2,756	(14)
Net assets attributable to the Bank’s owners	6,261,549	4,927,044
TOTAL EQUITY	6,261,549	4,927,044
TOTAL LIABILITIES AND EQUITY	44,568,133	40,164,316

ONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED DECEMBER 31, 2022

(In millions of UZS)

	Attributable to owners of the Bank
1 January 2022	2,990,570	1,936,488	(14)	4,927,044
Net profit for the period	-	1,334,355	-	1,334,355
Other comprehensive income for the period	-	-	2,770	2,770
Total comprehensive income for the period	-	1,334,355	2,770	1,337,125
Transfer of shares to the Agency for Management of State Assets of the Republic of Uzbekistan	(2,620)		-	(2,620)
Ordinary shares issued	-	-	-	-
31 December 2022	2,987,950	3,270,843	2,756	6,261,549

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2022

(In millions of UZS)

	2022	2021
Interest income calculated using the effective interest rate	4,512,276	3,693,881
Other interest income	35,590	28,594
Interest expense	(2,094,645)	(1,600,739)
Net interest income before charge for expected credit losses	2,453,221	2,121,736
Charge for credit losses on loans and advances to customers	(295,121)	(591,328)
Net interest income	2,158,100	1,530,408
Fee and commission income	391,997	343,937
Fee and commission expense	(75,501)	(82,415)
Net gain from trading in foreign currencies	146,021	59,841
Net (loss)/gain from foreign exchange translation	(19,576)	10,050
Net effect of initial recognition of financial instruments at fair value	(23,913)	(8,336)
Loans and advances to customers	(7,388)	(8,336)
Borrowings from government, state and international financial institutions	(16,525)	-
Dividend income	2,916	164
Impairment charge on other financial assets and contingencies	(21,655)	(33,620)
Impairment charge on assets held for sale	(25,417)	-
Other operating income	130,425	161,925
Administrative and other operating expenses	(1,107,935)	(894,127)
Share of profit of associates	4,828	2,553
Profit before tax	1,560,290	1,090,380
Income tax expense	(225,935)	(203,599)
Profit for the period from continuing operations	1,334,355	886,781
DISCONTINUED OPERATIONS
Loss for the year from discontinued operations	-	-
NET PROFIT FOR THE PERIOD	1,334,355	886,781
Items that are or may be reclassified subsequently to profit or loss: Fair value adjustment on financial assets at fair value through other comprehensive income	3,462	(61)
Tax effect	(692)	12
Total other comprehensive loss for the period	2,770	(49)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	1,337,125	886,732

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2022

(In millions of UZS)

	2022	2021
Cash flows from operating activities
Interest received	4,454,775	3,436,565
Interest paid	(2,020,858)	(1,557,336)
Fees and commissions received	367,769	325,246
Fees and commissions paid	(75,501)	(82,415)
Insurance operations income received	30,075	76,442
Insurance operations expense paid	(4,397)	(12,869)
Income received from trading in foreign currencies	146,021	79,867
Other operating income received	99,668	85,198
Staff costs paid	(806,250)	(591,932)
Administrative and other operating expenses paid	(208,305)	(177,385)
Income tax paid	(250,122)	(189,175)
Cash flows from operating activities before changes in operating assets and liabilities	1,732,875	1,392,205
Net decrease / (increase) in due from other banks	141,141	(291,504)
Net increase in loans and advances to customers	(3,724,922)	(5,689,615)
Net increase in other financial assets	(8,881)	(118)
Net decrease in other non-financial assets	7,312	15
Net increase / (decrease) in due to other banks	1,736,719	(517,837)
Net (decrease) / increase in customer accounts	(1,180,522)	4,514,710
Net increase in insurance liabilities	-	-
Net increase in other financial liabilities	779	2,711
Net decrease in other non-financial liabilities	(5,322)	(5,345)
Net cash used in operating activities	(1,300,821)	(594,777)
Cash flows from investing activities
Purchase of premises, equipment and intangible assets	(61,785)	(58,945)
Proceeds from disposal of premises, equipment and intangible assets	8,757	1,706
Sale of financial assets at fair value through other comprehensive income	(521)	581
Purchase of associates (incorporation)	-	-
Purchase of debt securities at amortized cost	(14,122,474)	(2,201,848)
Proceeds from debt securities at amortized cost	11,302,147	1,865,445
Dividend income received	471	164
Net cash used in investing activities	(2,873,405)	(392,897)
Cash flows from financing activities
Proceeds from borrowings from government, state and international financial institutions	2,056,268	3,483,889
Repayment of borrowings from government, state and international financial institutions	(68,841)	(1,354,617)
Proceeds from issue of debt securities	-	984,378
Repayment of debt securities in issue	(5,027)	-
Net cash from financing activities	1,982,400	3,113,650
Effect of exchange rate changes on cash and cash equivalents	32,330	(43,943)
Net increase in cash and cash equivalents	(2,159,496)	2,082,033
Cash and cash equivalents at the beginning of the year before allowance for expected credit losses	7,229,900	5,147,781
Change in allowance for expected credit losses	(125)	86
Cash and cash equivalents at the end of the year before allowance for expected credit losses	5,070,279	7,229,900

Audit organization: "KPMG Audit" LLC Tashkent, the Republic of Uzbekistan (qualification certificate of bank auditor No. 16/3 dated 1 February 2020, issued by the Central Bank of the Republic of Uzbekistan). Management is responsible for the preparation of the consolidated financial statements that present fairly the consolidated financial position of JSCMB "Ipoteka Bank" ("the Bank") and its subsidiaries (collectively - "the Group") as of December 31, 2021 and the related consolidated financial performance and consolidated cash flows for the year then ended, in accordance with International Financial Reporting Standards ("IFRS").

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