Proudly gambian

It’s a breath of fresh air banking with us

REPORT & ACCOUNTS 2016 Proudly gambian

Our Mission is to be the leading bank in The Gambia by operating a profitable banking institution, which meets the needs of all local, international, corporate and individual clients and returns excellent results to our shareholders. To achieve this, we shall continue to set new standards by delivering quality services and innovative products with an inspired team dedicated to serving our Customers, Environment and Community at Large in the most caring manner.

Proudly gambian ProudlyProudly gambiangambian

Contents

Notice and Agenda of Annual General Meeting 2 Financial Highlights 3 Statement from the Chairman 4 Managing Director’s Review 7 General Information 10 Directors’ Report 11 Independent Auditors’ Report 13 Consolidated Statement of Comprehensive Income 15 Consolidated Statement of Financial Position 16 Consolidated Statement of Changes in Equity 17 Consolidated Statement of Cashflows 18 Notes to the Financial Statements 19 Shareholding 51 Where to find us 52 Correspondent Banks 53 Profile of Directors 54 Senior Management 57 Resolutions 58 Proxy Form 59

annual report 2016 1 Proudly gambian

Notice and Agenda of Annual General Meeting

Notice is hereby given that the Nineteenth Annual General Meeting of Trust Bank Limited will be held at the Kairaba Beach Hotel on 18th May 2017 at 3.00 p.m. for the following purposes:

Ordinary Business Ordinary Resolutions 1 To receive and adopt the Annual Report and Consolidated Accounts for the year ended 31st December 2016;

2 To declare Dividends; ual G e n eral Meeti g of Ann ual ge n da 3 To appoint a new Director: Mr. Mohamadou Manjang

4 To re-elect Directors: a. Mr. Franklin Hayford Notice a n d A Notice b. Mr. Mustapha Njie 5 To approve the remuneration of Directors;

6 To appoint the Auditors of the Bank until the conclusion of the next Annual General Meeting;

7 To authorize the Board to determine the remuneration of the Auditors;

8 To transact any other business appropriate to be dealt with at any Annual General Meeting.

Proxy A member entitled to attend and vote at the Annual General Meeting is entitled to appoint a proxy to attend and vote instead of him/her. A proxy need not be a member of the Company. A blank proxy is attached to the Annual Report.

Fatou Lili Drammeh Board Secretary

2 annual report 2016 Proudly gambian

Financial Highlights F i n a cial Hig h lig ts

Profit before tax

600,000 Net interest income

500,000600,000 The Bank 2016 2015 2014 600,000400,000500,000 Profit before tax (D.000) 115,725 173,817 226,062 500,000300,000400,000 600,000 Net Interest income (D.000) 337,203 346,486 360,674 400,000200,000300,000 500,000 Operating expenses (D.000) (423,772) (388,800) (355,459) 300,000100,000200,000 400,000 Impairment (D.000) 47,895 5,018 16,516 200,000100,0000 300,000 2016 2015 2014 100,0000 200,000 2016 2015 2014 8,000,0000 Loans and balances 100,000 8,000,0007,000,000 2016 2015 2014 Deposits 6,000,000 7,000,0000 8,000,000 6,000,0005,000,000 2016 2015 2014 The Bank 2016 2015 2014 7,000,000 5,000,0004,000,000 6,000,000 Total Assets (D.000) 5,208,072 4,904,308 4,662,239 4,000,0008,000,0003,000,000 5,000,000 3,000,0007,000,0002,000,000 Loans and advances (D.000) 822,196 1,006,336 1,010,191 4,000,000 2,000,0006,000,0001,000,000 3,000,000 Customer deposits (D.000) 4,410,714 4,115,494 4,099,345 1,000,0005,000,0000 2,000,000 2016 2015 2014 Equity (D.000) 709,321 702,299 457,225 4,000,0000 3,000,0001,000,00060 2016 2015 2014 2,000,000600 50 2016 2015 2014 1,000,000 Return on equity 4050 600 Capital adequacy 40 2016 2015 2014 5030 Return on assets 60 402030 50 The Bank 2016 2015 2014 301020 40 Return on assets 2% 7% 3% 20100 30 2016 2015 2014 Return on equity 15% 22% 35% 100 2016 2015 2014 20 Capital Adequacy 30% 26% 21% 1500 15010 2016 2015 2014 120 0 150120 2016 2015 2014 90 Dividend per share (in bututs) 12090 Earnings per share (iin bututs) 15060 9060 12030 The Bank 2016 2015 2014 6030 900 2016 2015 2014 Liquidity 75% 70% 72% 300 60 2016 2015 2014 Non performing loan ratio 4% 4% 2% 0 Earnings per share (in bututs) 54 76 81 30 2016 2015 2014 Dividend per share (total in bututs) 40 60 60 0 2016 2015 2014

annual report 2016 3 Proudly gambian

Statement from the Chairman

Dear Shareholders, It gives me great pleasure to once again present to you the Bank’s performance for the year ended 31st December 2016. The year 2016 was a challenging year for the Bank. The political developments in the country resulted in considerable social instability and uncertainties which in turn significantly impacted consumer confidence; also influenced investor decisions and thus general performance of the economy. Despite the extraordinary strain, your Bank was still able to achieve another year of strong performance. m e n t fro h Ch air a S tate

Economic Environment to have contracted from a projection investments as banks continued to of 2.1 percent in January 2016 to 1.6 bemoan the scarcity of satisfactory The global economy is in the midst percent in January 2017. Growth in credit worthy bankable projects. The of a decade long of slow growth emerging markets and developing growing lack of appetite for lending by characterized by an imminent economies continue to drive the banks has created a disincentive for crisis in global productivity. The global growth projection and was 4.1 them to mobilize more deposits. looming labor shortage in mature percent in 2016 above a projection The Central Bank of The Gambia economies and skill deficiencies in of 4.0 percent and projected at 4.5 (CBG) in an effort to build the Gross emerging markets will exacerbate percent for 2017. International Reserve (GIR) earlier global economic prospects. Global On the local front, the Gambia Bureau in 2016 required banks to sell 10 growth lacks demand drivers and of Statistics is yet to report the real percent of the USD equivalent of the potential output is likely to shrink GDP growth figures for 2016, but Currency Shipment values to the while economic uncertainty increases. expectations are that it will be lower CBG at an average mid-market rate. This is worsened by uncertainties than the growth of 4.7 percent in In November 2016, the CBG further surrounding the Brexit. 2015. issued a directive to broaden the According to the International base of this sale of Foreign Exchange Monetary Fund (IMF), after a Banking Industry from the commercial banks to the lackluster outturn in 2016, economic in The Gambia CBG to include 15 percent of all activity is projected to pick up pace commercial bank purchases, inflows in 2017 and 2018, especially in The banking industry remains and remittances. emerging markets and developing robust as indicated by the financial economies. However, there is a wide soundness indicators. The capital Trust Bank’s Performance dispersion of possible outcomes adequacy ratios averaged to 38.5 around the projections, given percent from 2015’s level of 37.9 In 2016, the Group’s financial uncertainty surrounding the policy percent, which is well above the performance dipped, which is stance of the U.S. administration and statutory minimum of 10 percent. reflective of the relatively difficult its global ramifications. environment, given the fiscal Total assets of the Industry increased Global output for 2016 was estimated challenges and uncertainties to D29.6 billion (69.8 percent of GDP). at 3.1 percent the same as in 2015 associated with an election year. Net and lower than the forecasted 3.2 Non-performing loans expectantly interest income declined by 3 percent percent. It is forecasted at 3.4 decreased to 8.6 percent compared from GMD358 million to GMD346 percent for 2017 and 3.6 percent to 11.65 percent in 2015. million. The reclassification of almost a for 2018. Growth in the advanced Commercial banks lending continued third of our loan book to Government economies for 2016 was estimated to be influenced by Treasury Bill issued bonds at an interest rate

4 annual report 2016 Proudly gambian

discount of over 35 percent brought a profit of GMD 16.7 million in the of the Board, the staff and you the pressure on our net interest margins. previous year. shareholders, I wish to thank him This resulted in our overall decline in A dividend of GMD 15 million was of his many years of successful net interest income. In addition, the paid to the Bank from the financial stewardship. S tate m e n t fro h Ch air a Bank faced significant challenges in results of 2015 while a dividend of Given his immense wisdom in the mobilizing foreign currency. Reflected D22 million was paid to the Bank field of Banking, Pa was asked, and in the Bank’s performance also was in 2016, some of which came from he accepted to join the Board as a a marked improvement in control of previous years’ retained earnings. non-executive director of the Bank. expenditure which resulted in savings He will also chair a number of our of 12 percent against budget. Overall, In 2016, The Group as well consolidated its 60 percent ownership subsidiaries and equity holdings in however, profit after tax declined from other companies. We thank him for GMD155 million to GMD106 million. of Home Finance Company (HFC) Ltd. The group results therefore his continuing loyalty. The Group’s balance sheet on the include a profit after tax figure of D2 Mr. Ibrahima Salla will replace Mr. Pa other hand, witnessed some growth Million (2015: D0.6M) and total assets Njie as the Managing Director. Mr. over the review period, with total of D39.9 Million (2015: D38.6M). No Salla is an experienced executive assets growing by 6 percent to dividends were received from Home who has held senior positions within GMD5.2 billion, while total customer Finance Company Ltd as we continue the Bank since its inception in 1997. deposits increased to GMD4.42 billion to build their balance sheet. He comes with a banking career from GMD4.13 billion. spanning over 22 years with vast Our 12 percent equity investment in During the year the Bank embarked experience in retail and corporate International Bank of Liberia yielded on the construction of a new branch banking. Prior to his appointment dividends of D3.9M for the year under in Brikama to help ease congestion as Managing Director, Mr. Salla review. in the banking hall due to the ever served the Bank in the capacity of increasing customer base around General Manager of the Corporate the Brikama area. The Branch is Human Resources Department. largely completed and expected to be The dynamism of our Management Mrs. Njilan Senghore Njie has also occupied before the second quarter and staff has remained resolute been appointed as Deputy Managing of 2017. throughout my tenure as Chairman of Director. She comes with 8 years of experience in auditing and 9 years in Dividends this great institution. 2016 was indeed a demanding year in many ways but banking and has served the Bank in with the enthusiasm, dedication, the capacity of General Manager of The Board is recommending a final Finance and Administration since she dividend of 30 bututs per share, professionalism, resilience and desire to succeed I have seen and admired joined in 2007. I wish them both the which brings the total dividend to 40 best of luck in their new assignments bututs per share for the financial year in the Trust Bank team, they were able to overcome. and enjoin my colleagues on the 2016. The final dividend represents a Board as well as staff, shareholders payout of GMD 80 million out of the I would therefore like to take this and customers to give them all the Group’s profit of D105 million after opportunity to extend my gratitude necessary support. a statutory transfer of 15 percent to and most sincere thanks to every reserves. You may recall that this is member of our team. Corporate Social made possible because your Bank Please allow me to give special met the 1:1 required statutory reserve mention to members of our team who Responsibility (CSR) to share capital ratio last year and retired this year. Mr. Oreme Joiner, thus transferred only 15 percent of Your Bank has continued to invest in Mr. Paul Ogoo, Mr. Mbemba Sanyang the annual profits this year as per the broader Gambian community. In and Mrs. Ramou Othman-Ndure, regulatory requirement of the Central 2016, the Bank continued to support we thank you for your many years of Bank of The Gambia instead of 25 a wide range of causes in health; dedicated service and we wish you percent. education and sports to make a many years of productive, healthy and significant difference in the lives of Equity Investments joyous retirement years. many Gambians. In June 2016, Mr. Pa Macoumba The Managing Director’s statement Bayba Financial Services Ltd, the Njie, who has been a paragon in highlights our various areas of Bank’s wholly owned subsidiary the Banking Industry in the Gambia, intervention in the year 2016. completed its sixth year of operations and who has ably led the bank from in December 2016. Bayba’s inception in 1997 retired as the Board Changes performance in 2016 has seen a Managing Director of the Bank. I slight decline primarily due to the would like to pay tribute to Pa for his I have been privileged to serve Trust challenges in the foreign exchange tremendous contribution in making Bank Limited since inception as market. Profit after tax for 2016 Trust Bank Ltd the household name Board Chairman and after almost was GMD 15.5 million compared to that it has become today. On behalf 20 years of being active on a

annual report 2016 5 Proudly gambian

strategic level, I have reflected on will be renewed and the economy will other personal needs and interests once again be on a growth trajectory. that I would like to pursue. I have Your Bank will continue to invest in accepted the position of Finance the quality of service we give to our Minister of Ghana and will therefore customers. There is renewed focus resign from the Board after this on our E-banking Unit’s innovative AGM. It is gratifying to know that the services aimed at anchoring cutting bank and all its operations are on edge technology and novelty in a relatively sound footing as I hand modern Banking Practices. We over the baton. I am confident that believe that our ebanking unit will my successor will be blessed with shape our business operations to the support of my fellow directors, deliver better, more efficient services management and staff. I am grateful to our customers, while also creating for the opportunity to have been part m e n t fro h Ch air a S tate more opportunities for growth and of the team that built the Trust Bank profitability. brand. Let me take this opportunity to I would also like to announce the again thank everyone of you for your retirements of Mr. Edward Graham support and belief in Trust Bank, and Mr. Saibatou Faal from the your proudly Gambian Bank. Let us Board effective March 2017. As they go forth to build an even stronger both move on to other challenges, bank in the years ahead under the I wish them well in their future Salla leadership with your immense endeavors. I welcome to the Board support. Thank you again for giving Mr. Mohamadou Manjang as Non- me this remarkable opportunity to Executive Director, Mr. Ibrahima Salla serve your Bank and to work in this and Mrs. Njilan Senghore Njie as beautiful country of yours. Executive Directors. Thank you and God bless all of you. Outlook

The strategy for 2017 includes growing our lending related products without increasing our levels of impairment. We are optimistic that Ken Ofori-Atta with the new democracy and change Chairman of government, investor confidence March 2017

6 annual report 2016 Proudly gambian

Managing Director’s Review m a n agi n g director’s review

Dear Shareholders, The year 2016 was exceptional and very eventful both at home and abroad. There was a global shift in world politics that confounded popular opinion in the UK with Brexit, in the US with the presidential elections and of course here at home The Gambia saw its fair share of changes. In July 2016 I was appointed as Acting Managing Director to lead a new Management team after Mr. Pa Macoumba M. Njie retired. His retirement ended nearly two decades of his able leadership at the helm of the Bank.

Your Bank has been resilient under penalties. This continued to pose soundness indicators. The capital unforeseen challenges and domestic significant challenges on trade adequacy ratio for the industry turmoil. We have endured economic financing and other cross-border averaged 38.5 % in June 2016 and political uncertainties which was intermediary roles particularly for US compared to 37.9% a year ago. amplified with the 1st December Dollar related transactions during the The same report highlighted the 2016 Presidential Elections. These year. The Onboarding requirement for committee’s decision to maintain challenges coupled with negative most of these banks are much more the policy rate at 23% despite a business connotations culminating stringent causing further challenges decline in headline inflation. The high from the political unrest in the latter to establishing new correspondent interest rate environment continues part of 2016 have added additional relationships. Your bank will not relent to be a disincentive not only for strain and increased isolation of an on its commitment to exploring all banks to lend but also for customers already donor fatigued nation. fronts to ensure all our customers’ to stay away from borrowing at Despite all of the political and needs are met both local and higher rates in an uncertain market, economic chaos, we still managed to international. therefore heightening the declining deliver Group profits of D105M albeit The source of the much needed trend in private sector lending. The lower than budget forecast of D125M foreign exchange has been a situation was worsened by the fiscal and last year performance of D155M. challenge during 2016 due largely to indiscipline and crowding out of challenges in establishing relationship private sector debt by the public Operating environment with major money transfer agencies sector treasury bills. This further and the lack of an expanded shrunk funded income and somewhat The uncertainties in the domestic network of correspondent banks hindered our competitive advantage economy during the year under flexible enough to attract significant in swift local decision making in debt review led to reduced economic remittances. In spite of this, Bayba, underwriting and disbursement. activities as businesses slowed our 100% owned subsidiary has been Henceforth in the new Gambia, with down on their usual stock levels an important partner in providing the new hopes and new practices, we for fear of a highly unpredictable much needed foreign exchange as look forward to a more supportive post-election Gambia. This was the bank continues to face requests macroeconomic environment. We significantly felt on the demand side from customers to quench their look forward to a more representative for viable Bankable credit requests. insatiable thirst of Dollar request to and reflective policy rate guided by The industry continues to face severe meet the heavy bill for foreign imports. further and thoroughly researched de-risking by Multi National banks According to the Monetary Policy economic data. This may from the threat of non-compliance Committee (MPC) Press release of consequently reiterate fiscal discipline with Anti-Money laundering (AML) 1st September 2016, the Banking and finally satisfy the unappeasable, and Counter financing of terrorism sector remains fundamentally strong persistent increases in the Treasury (CFT) and consequential fines and and safe as indicated by the financial Bills market.

annual report 2016 7 Proudly gambian

We are of the view that this will be excess liquidity which was invested in take up the challenge to continue cornerstone of a more innovative Treasury bills. to excel as we yearn for a more lending as banks will be forced to As a result, loans and advances have deepened market. design better products and services declined from D1 billion in 2015 to to invest excess liquidity emanating D822 million in 2016. The quality of Human Resources from the reduced treasury bills our credit portfolio continues to be auction floats. preserved at an NPL Ratio of 4% It is indeed a remarkable honor and a unique opportunity and privilege to It is gratifying to tell you that your for both 2015 and 2016 through a lead the staff of our great institution. bank is poised to take the lead in combination of reduced growth in these changes. loans as well as a more systematic Trust Bank Limited’s success credit assessment and approval is dependent upon engaged, Your Bank’s Performance process with early warning signs motivated staff who love serving developed to streamline potential bad customers. We are doing more to Our performance in 2016 shows loans. We will continue to look for invest in our staff’s future through that net interest income declined opportunities to not only increase the increased training and development, from GMD346 million in 2015 to loan book but also further improve competitive remuneration and better GMD337 million in 2016. Total on the quality of credit extended to opportunities to build rewarding operating income declined by 11.8% customers with viable and bankable careers. We are positioned to win from GMD558 million in 2015 to projects. the future of Banking in the Gambia GMD492 million in 2016, while The Bank’s deposit liabilities grew by providing a ladder of opportunity total expenses including loan loss by 7% to GMD4.42 billion from for every member of our team. provisions decreased slightly by 2% D4.1 billion. We continued to shy I wish to use this opportunity g director’s review n g director’s m a n agi from GMD384 million to GMD376 away from the more expensive fixed to thank you for your sincere million over the same period. These deposits to less expensive savings commitment to the services of the combined, resulted in a decline in and current account deposits to avoid bank and above all your unflinching pre-tax profits of 33% from GMD174 expensive deposits and consequential support to steering the bank forward million to GMD116 million. This is dwindled funded income. for improved customer satisfaction mainly associated with a slowdown The bank’s equity investment and enhanced shareholder value. in business activities as result of strategically invested for inorganic I wish to once again assure you of the uncertainties of the outcome of growth continue to be rewarding the Bank’s commitment to equal the election as well as the reduced with dividends from both Bayba and opportunity and reward for honesty, remittances and trading income International Bank Liberia Limited hard work and perseverance over resulting from the de-risking by major (IBLL). The Bank is yet to receive the years. international banks and its attendant dividends from its 60% owned You remain our most valuable restriction in dollar denominated subsidiary of Home Finance Company resources. cross-border transactions particularly (HFC), the investments in World on open account trading. Women Banking in Ghana (WWBG) Corporate Social In July 2016, the bank restructured and Enterprise Life Assurance the Foreign Operations Department Company (ELAC). Responsibilities with a wider mandate to deal with As part of the transformations, Our commitment to the tag line not only foreign related transactions the E-Banking unit formerly of of being “Proudly Gambian” but also the management of the Operations has been aligned with the remains unrestrained. We have local currency which was under the Management Information Systems gone beyond that to becoming Finance department from inception (IT) Department for an improved and a more pronounced sustainable of the bank. We are of the view that much more coordinated approach development partner in the key the revenue earning capacity of the to achieving highly functional and sectors of health, education and Bank’s pool of assets will be better innovative IT based products and sports. managed when centralized and services including but not limited Some of the activities the bank we have indeed started to reap the to the Mobile App currently under supported in the Health Sector in benefit of this new set up as liquidity advanced stage of development. 2016 under its corporate social management has been significantly The management of the Bank is responsibility program include: enhanced and non-funded income aware of the challenges in a dynamic • a donation of D100,000 to the albeit lower than last year, had begun industry under stiff competition with Tanka-Tanka psychiatric hospital to pick up despite the challenges largely the same banking products encountered during the year. and services at very similar or even • D100,000 to the AFPRC hospital On the statement of financial same prices equipped with an ever in Farafenni as part of the annual position, investments in government increasing market savvy clientele support to the Trust Bank adapted securities increased significantly yearning for better services and Maternity Ward from D1.47 billion in 2015 to D1.87 becoming more complex. We are of • Approximately D300,000 on other billion in 2016. The reduced demand the view that with close to a century health related activities such as side for credit worthy loan requests of combined years of banking awareness campaigns on non- during the year coupled with a experience in the Gambian Industry, communicable diseases and growth in deposit base created the management team is poised to disaster recoveries.

8 annual report 2016 Proudly gambian

On the Education sector, the bank We believe we have the resources continues to be committed to the to chart our own destiny, we believe promotion of good and quality we know where we are going, and education by giving awards and we are confident that we will win with recognition to the most outstanding a strategy that only Trust bank can students in various educational execute in this market and beyond. disciplines from Upper Basic Schools, We understand the road ahead will Senior Secondary Schools and not always be easy and could even be Tertiary institutions in the country. The rocky and a steep mountain to climb, m a n agi n g director’s review bank spent almost D300,000 on its but by being more customer focused, Excellence in the Millennium award to hungry for success, fast in executing recognize the 10 most outstanding our strategies, accountable, engaging students in the Gambia Basic and committed, we will win and have Education Certificate Examination a good time doing it. It’s an incredible (GABECE) class of 2015 with time to be a part of Trust Bank in certificates of excellence, a tablet and particular and Gambia as a whole. cash prizes. We partnered with the University of the Gambia faculty of Acknowledgements law on the ‘Call to the Bar’ ceremony with an amount of D112,000. We We would like to thank our employees continue to reward the three most for their commitment to Trust bank. It is outstanding students from each of the their hard work, alignment behind our senior secondary schools during their strategy and dedication that enables us Speech and prize giving ceremonies to deliver on our promises. across the country with a cash prize We also want to thank you, our of D3,000 in the form of student shareholders, for your continuing savings accounts by the bank totaling support, your confidence and above all an amount of D153,000. for your trust. Be rest assured that our In the area of Youth and Sports, the passion for banking and our passion Bank continued to make donations for quality will continue to generate to Secondary School sports, U17 the sustainable, profitable returns you National Team, private and public rightfully expect from us. sector football tournaments as well I cannot conclude without expressing as to the National Youth Service my sincere thanks and gratitude to my Scheme. The bank spent an amount predecessor Mr. Pa Macoumba M. in excess of D300,000 on sports and Njie who led the bank from inception in sports related activities. The Gambia 1997 to June 2016 paying back to you Cricket Association, Basketball the shareholders dividends in excess of federation, Chess championship and D1.2 billion. GNOC delegates to the RIO 2016 Olympics also benefited from this Pa we wish you a fruitful retirement life benevolence during 2016. and do hope to continue benefitting from your wisdom and experience as Outlook non-executive director of the Bank.

Throughout our history, Trust bank Limited has been an innovator in the Gambian Banking Industry. We continue to face stiff competition and now living in a new period of disruption, largely driven by rapid technological advances, and that change is likely to accelerate even further. Our efforts are evenly focused on emerging as the leading bank and best customer focused and banking Ibrahima Salla service provider. March 2017

annual report 2016 9 Proudly gambian

General Information

DIRECTORS Mr. Ken Ofori-Atta Chairman Mr. Pa Macoumba Njie Managing Director (up to June 2016) Mr. Ibrahima Salla Managing Director (from July 2016) Mrs. Njilan Senghore-Njie Executive Director (from July 2016) Mr. Abdoulie Cham Member Mr. Saibatou Faal Member n G e n eral i for m atio Mr. Edward Graham Member Mr. Franklin Hayford Member Mrs. Angela Andrews-Njie Member Mr. Mustapha Njie Member

COMPANY SECRETARY Mrs. Njilan Senghore-Njie (up to June 2016) Ms. Fatou Lili Drammeh (from July 2016)

AUDITORS PKF Accountants and business advisers 33 Bijilo Layout Annex Kombo North, The Gambia

REGISTERED OFFICE Trust Bank Limited 3/4 Ecowas Avenue Banjul, The Gambia

SOLICITORS Mrs. Mary Abdoulie Samba 29 Independence Drive Banjul, The Gambia REGISTRARS Universal Merchant Bank Limited 57 Examination Loop, North Ridge Accra, Ghana

BANKERS BMCE Bank International Ghana Commercial Bank France Ghana

Bank of Beirut Ghana International Bank London UK

Central Bank of The Gambia Skandinaviska Ensklilda Banken The Gambia Sweden

Den Danske Bank Unicredit Denmark Italy

Den Norske Bank Unicredit Norway Germany

Ecobank Senegal

10 annual report 2016 Proudly gambian

Directors’ Report directors’ report

The Directors present the audited RESULTS FOR THE YEAR Number of 31-Dec-16 31-Dec-15 consolidated financial statements AND DIVIDENDS Shares held and corporate results of the Trust The results of the company are Bank Limited Group for the year Mr. Pa 1,236,033 1,186,033 as detailed in the accompanying Macoumba Njie ended 31st December 2016. financial statements. Mr. Mustapha 66,667 66,667 The Directors have recommended a STATEMENT OF DIRECTORS’ Njie RESPONSIBILITIES final dividend of D0.30 per ordinary share for the year ended 2016. The Mrs. Angela 33,333 33,333 The Companies Act 2013 requires final dividend of D0.30 per share Andrews-Njie the Directors to prepare financial together with the interim dividend Mr. Franklin 14,620 14,620 statements for each financial year paid of D0.10 per share, gives a Hayford which give a true and fair view of the total dividend of D0.40 for the year. state of affairs of the company and 1,350,653 1,300,653 of its profit or loss for that period. In SIGNIFICANT CHANGES preparing the financial statements, IN FIXED ASSETS CORPORATE GOVERNANCE the directors are required to: Tangible fixed assets are as The company’s board consists of ten • select suitable accounting policies detailed in note 19 of the financial members, eight of whom are non and then apply them consistently; statements. There has not been executive Directors. The board meets • make judgments and estimates any permanent diminution in the every quarter to review strategic that are reasonable and prudent; value of the fixed assets and as matters relating to the operations of • state whether applicable a result a provision has not been the Bank. The management team accounting standards have deemed necessary. meets weekly to review progress been followed, subject to any EMPLOYEES made in implementing strategy. A material departures disclosed credit committee consisting of senior The number of employees and and explained in the financial management meets to review credit the costs associated with these statements; applications. employees is as detailed in note 9. • prepare the financial statements on Governance Committee the going concern basis unless it is DONATIONS inappropriate to presume that the A corporate governance sub company will continue in business. During the year the company made charitable donations amounting to committee has also been established The Directors are responsible for D2,623,615 (2015: D3,526,821). which examines all compliance issues keeping proper accounting records with both local and international which disclose with reasonable DIRECTORS AND legislation, regulations, and best accuracy at any time the financial THEIR INTEREST practices which impact on the bank. position of the company and to The Directors who held office The members of this committee are enable them to ensure that the during the year are as shown on as follows: financial statements comply with page 5. The directors retiring by • Mrs. Angela Andrews-Njie the Companies Act 2013 and rotation in accordance with Chairperson the Banking Act 2009. They are Article 98 of the Articles of responsible for safeguarding the • Mr. Ken Ofori-Atta Association are Mr. Franklin Hayford assets of the company and hence Member and Mr. Mustapha Njie. Being for taking reasonable steps for the eligible, Mr. Franklin Hayford and • Mr. Saibatou Faal prevention and detection of fraud Mr. Mustapha Njie offer themselves Member and other irregularities. for re-election. • Mr. Ibrahima Salla PRINCIPAL ACTIVITIES OF The following Directors who held Co-opted Member THE COMPANY office during the year had beneficial Additionally, in line with good The company provides commercial financial interest in the shares of the corporate governance practice the banking services to the general company as detailed below. There board has the under mentioned public in accordance with the have been no changes between the committees consisting of Non year end and the date of this report. regulations of the Central Bank of Executive Directors and two Executive The Gambia and the Banking Act Directors (The Managing Director and 2009. Deputy Managing Director):

annual report 2016 11 directors’ report Proudly gambian 12 annual report 2016 Mr. FranklinHayford • Mr. Edward Graham • Mr. KenOforiAtta • remuneration. Themembersare: criteria fordetermininggeneralstaff Executive Managementandset to determinetheremuneration of This committeehastheresponsibility Remuneration Committee Mr. IbrahimaSalla • Mr. PaMacoumbaNjie • Mr. MustaphaNjie • Mr. KenOfori-Atta • development. Themembersare: shareholder valuethrough growth and and objectivesaimedatmaximizing Bank Limited’s corporatevision direction fortheattainmentofTrust This committeegivesstrategic Strategy Committee Mrs.AngelaAndrews Njie • Mr. AbdoulieCham • Mr. FranklinAHayford • members are: control andreporting processes. The matters relating toauditandfinancial recommendations totheBoard onall responsibility toreview andmake This committeehasthe Audit andBudgetCommittee Member Member Chairman Co-opted Member Member Member Chairman Member Member Chairman

Mrs.NjilanSenghore- Njie • Mr. IbrahimaSalla • Mr. PaMacoumbaNjie • Mr. Edward Graham • Mr. MustaphaNjie • The membersare: projects undertakenbythebank. all majorconstructionworksand This committeeisresponsible for Committee Infrastructure Development 15th March 2017 Company Secretary By order ofthe Board ofDirectors 2013. Section 342(2c)oftheCompaniesAct re-appointment inaccordance with their willingness,willbeproposed for The auditors,PKF, havingindicated AUDITORS Mr. IbrahimaSalla • Mr. SaibatouFaal • Mrs.AngelaAndrews-Njie • Mr. PaMacoumbaNjie • framework andriskexposures. the Bank’s overallRiskManagement development andmaintenanceof duties includeoverseeingthe The RiskOversightCommittee’s Risk OversightCommittee Co-opted Member Co-opted Member Member Member Chairman Co-opted Member Member Member Chairperson

Proudly gambian

Independent Auditors’ Report i n depe de t auditors’ report

Opinion fair view of the financial position of the Financial Statements section of We have audited the financial Group as at 31st December 2016, our report. We are independent of statements of Trust Bank Limited and and of its financial performance and its the Group in accordance with the cash flows for the year then ended in its subsidiaries which comprise the International Ethics Standards Board accordance with International Financial for Accountants’ Code of Ethics for consolidated statement of financial Reporting Standards (IFRSs) and have Professional Accountants (IESBA position as at 31st December 2016, been properly prepared in accordance Code) together with the ethical the consolidated statement of with the Companies Act 2013 and the requirements that are relevant to our comprehensive income, consolidated Banking Act 2009. audit of the financial statements in statement of changes in equity and The Gambia and we have fulfilled consolidated statement of cash flows Basis for Opinion our other ethical responsibilities in for the year then ended, and notes We conducted our audit in accordance accordance with these requirements to the financial statements, including with International Standards on and the IESBA Code. We believe a summary of significant accounting Auditing (ISAs). Our responsibilities that the audit evidence we policies. under those standards are have obtained is sufficient and In our opinion, the accompanying further described in the Auditor’s appropriate to provide a basis for financial statements give a true and Responsibilities for the Audit of the our opinion.

Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key Audit Matter How our audit addressed the key audit matter NAWEC Bond As at the balance sheet date, there were six of the monthly Our audit procedures included, among others, installments of the Bond which had not yet been received, external confirmation of the outstanding Bond at the amounting to D 23.3 million. balance sheet date and a review of all other security including the valuation basis used by the bank.

Considering clause 11 of the Bond terms therefore, the Bond We also focused on the adequacy of the security and should be declared as being in default on the basis that the issuer disclosures about those assumptions to which the failed in its payment obligation and did not provide any information outcome of the impairment test is most sensitive, that that this failure will be remedied within 5 business days following the is, those that have the most significant effect on the original due date of the installment. Had the Bond been declared determination of the recoverable amount of Bond. as being in default, the Bank would have invoked section 12.1 (b) of the Bond Agreement which deals with Guarantee and sought to realise all available security.

Other Information statements does not cover the other materially misstated. If, based on Management is responsible for information and we do not and will the work we have performed on the the other information. The other not express any form of assurance other information that we obtained conclusion thereon prior to the date of this auditor’s information comprises the General report, we concluded that there is a Information, Directors report, In connection with our audit of the material misstatement of this other Corporate Governance Report, financial statements, our responsibility information, we are required to report Statement of Directors responsibilities is to read the other information and, in that fact. We have nothing to report as required by the Companies Act of doing so, consider whether the other 2013. The other information does not information is materially inconsistent When we read the financial highlights, include the financial statements and with the financial statements or general information and Directors our knowledge obtained in the report if we conclude that there is a our auditor’s report thereon. audit, or otherwise appears to be material misstatement therein, we are Our opinion on the financial

annual report 2016 13 Proudly gambian

required to communicate the matter to • Identify and assess the risks of business activities within the Group those charged with governance and material misstatement of the to express an opinion on the they are expected to take appropriate financial statements, whether consolidated financial statements. actions to have the uncorrected due to fraud or error, design We are responsible for the direction, misstatement brought to the attention and perform audit procedures supervision and performance of of users for whom the auditor’s report responsive to those risks, and the group audit. We remain solely is prepared. obtain audit evidence that is responsible for our audit opinion. sufficient and appropriate to We communicate with those charged Responsibilities of provide a basis for our opinion. with governance regarding, among Management and Those the risk of not detecting a material other matters, the planned scope Charged with Governance for misstatement resulting from fraud is and timing of the audit and significant the Financial Statements higher than for one resulting audit findings, including any significant Management is responsible for the • from error, as fraud may involve deficiencies in internal control that we preparation and fair presentation of collusion, forgery, intentional identify during our audit. the financial statements in accordance omissions, misrepresentations, or We also provide those charged with with IFRSs, and for such internal the override of internal control. governance with a statement that control as management determines is • Obtain an understanding of internal we have complied with relevant necessary to enable the preparation of control relevant to the audit in order ethical requirements regarding financial statements that are free from to design audit procedures that are independence, and communicate material misstatement, whether due to appropriate in the circumstances, with them all relationships and other fraud or error. but not for the purpose of matters that may reasonably be In preparing the financial statements, expressing an opinion on the thought to bear on our independence, management is responsible for effectiveness of the Group’s internal and where applicable, related t auditors’ report i n depe de t auditors’ assessing the Group’s ability to control. safeguards. continue as a going concern, • Evaluate the appropriateness of From the matters communicated with disclosing, as applicable, matters accounting policies used and the those charged with governance, we related to going concern and using reasonableness of accounting determine those matters that were of the going concern basis of accounting estimates and related disclosures most significance in the audit of the unless management either intends made by management. financial statements of the current to liquidate the Group or to cease • Conclude on the appropriateness period and are therefore the key operations, or has no realistic audit matters. We describe these alternative but to do so. of management’s use of the going concern basis of accounting and, matters in our auditor’s report unless Those charged with governance are based on the audit evidence law or regulation precludes public responsible for overseeing the Group’s obtained, whether a material disclosure about the matter or when, financial reporting process. uncertainty exists related to in extremely rare circumstances, we events or conditions that may determine that a matter should not be Auditor’s Responsibilities communicated in our report because for the Audit of the Financial cast significant doubt on the Group’s ability to continue as a the adverse consequences of doing Statements going concern. If we conclude so would reasonably be expected to Our objectives are to obtain that a material uncertainty exists, outweigh the public interest benefits reasonable assurance about whether we are required to draw attention of such communication. the financial statements as a whole in our auditor’s report to the The engagement partner on the audit are free from material misstatement, related disclosures in the financial resulting in this independent auditor’s whether due to fraud or error, and to statements or, if such disclosures report is Donald Charles Kaye. issue an auditor’s report that includes are inadequate, to modify our our opinion. opinion. Our conclusions are based Reasonable assurance is a high level on the audit evidence obtained of assurance, but is not a guarantee up to the date of our auditor’s that an audit conducted in accordance report. However, future events or with ISAs will always detect a conditions may cause the Group material misstatement when it exists. to cease to continue as a going Misstatements can arise from fraud or concern. error and are considered material if, • Evaluate the overall presentation, individually or in aggregate, they could structure and content of the PKF reasonably be expected to influence financial statements, including Accountants and business advisers the economic decisions of users the disclosures, and whether the Registered Auditors taken on the basis of these financial financial statements represent the Bijilo statements. underlying transactions and events The Gambia As part of an audit in accordance in a manner that achieves fair Date: 27th March 2017 with ISAs, we exercise professional presentation. judgment and maintain professional • Obtain sufficient appropriate audit skepticism throughout the audit. We evidence regarding the financial also: information of the entities or

14 annual report 2016 Proudly gambian

Consolidated Statement of Comprehensive Income

For the year ended 31 December 2016 C o n solidated S tate m e nT of C o pre h n sive In co

The Group The Bank 31-Dec-16 31-Dec-15 31-Dec-16 31-Dec-15 Notes D’000 D’000 D’000 D’000 Interest and similar income 5 544,756 566,016 537,098 555,173 Interest and similar expense 5 (199,210) (207,921) (199,895) (208,687) Net Interest Income 345,546 358,095 337,203 346,486

Fees and commission income 6 92,923 112,947 87,137 106,029 Fees and commission expense 6 (2,941) (2,286) (2,912) (2,268) Net fee and commission income 89,982 110,661 84,225 103,761

Gain from a bargain purchase 29 - 9,797 - - Net trading income 7 59,303 100,392 32,198 75,686 Other operating income 8 21,588 7,146 37,976 31,666

Operating income 516,419 586,091 491,602 557,599 Net impairment gain on financial asset 16 47,732 3,001 47,895 5,018 Personnel expenses 9 (167,410) (164,718) (160,484) (158,575) Depreciation and amortization 19,20 (80,872) (70,407) (79,402) (69,111) Other expenses 10 (194,279) (170,046) (183,886) (161,114) (394,829) (402,170) (375,877) (383,782) Profit before income tax 121,590 183,921 115,725 173,817 Income tax expense 11 (15,652) (29,421) (8,703) (21,756) Profit for the year 105,938 154,500 107,022 152,061

Other comprehensive income, net of income tax Foreign currency translation difference - - - - Net gain/loss on fair value of AFS FIs - - - - Revaluation reserve - 193,013 - 193,013 Other comprehensive income for the year - 193,013 - 193,013

Total comprehensive income for the year 105,938 347,513 107,022 345,074

Profit attributable to: Controlling equity holders of the Bank/Group 105,099 154,254 107,022 152,061 Non controlling interest 839 246 - - Profit for the year 105,938 154,500 107,022 152,061 Total comprehensive income attributable to: Controlling equity holders of the Bank/Group 105,099 347,267 107,022 345,074 Non controlling interest 839 246 - - Total comprehensive income for the year 105,938 347,513 107,022 345,074

Basic/diluted earnings per share (Bututs) 12 53 77 54 76

The accompanying notes are an integral part of the financial statements

annual report 2016 15 Proudly gambian

Consolidated Statement of Financial Position

For the year ended 31 December 2016

The Group The Bank 31-Dec-16 31-Dec-15 31-Dec-16 31-Dec-15 Notes D’000 D’000 D’000 D’000 ASSETS Cash and cash equivalents 14 1,457,942 1,390,025 1,452,142 1,386,471 Trading assets 15 1,887,897 1,488,753 1,872,233 1,472,872 Loans and advances to customers 16 847,878 1,037,104 822,196 1,006,336 Investment in subsidiaries 17 - - 20,558 20,558 Investment in other equity securities 18 80,812 80,812 80,812 80,812 Current tax 11 - 5,961 - 6,537 Deferred tax 21 7,126 - 7,126 - Property, plant and equipment 19 692,621 690,884 688,226 685,743 Intangible assets 20 88,777 82,918 88,602 82,651 Other assets 22 182,940 168,913 176,177 162,328 TOTAL ASSETS 5,245,993 4,945,370 5,208,072 4,904,308 LIABILITIES Deposits from Banks 23 10,956 12,228 10,956 12,228 Deposits from Customers 24 4,390,369 4,096,727 4,410,714 4,115,494 Current tax 11 2,806 - 1,581 - m e n t of fi a cial positio state co n solidated Deferred tax 21 - 13,583 - 13,583 Employee benefit obligations 2,322 3,545 2,322 3,545 Other liabilities 25 91,787 74,206 73,178 57,159 Total liabilities 4,498,240 4,200,289 4,498,751 4,202,009 EQUITY Stated capital 26 200,000 200,000 200,000 200,000 Income surplus 123,035 131,356 95,914 98,800 Statutory reserves 216,053 200,000 216,053 200,000 Revaluation reserve 193,013 193,013 193,013 193,013 Credit risk reserve 4,341 10,486 4,341 10,486 Total equity attributable to equity holders of the Group 736,442 734,855 709,321 702,299 Non Controlling interest 11,311 10,226 - - TOTAL LIABILITIES AND EQUITY 5,245,993 4,945,370 5,208,072 4,904,308

These financial statements were approved by the Board of Directors on 15th March 2017, and were signed on its behalf by:

Chairman Managing Director

Director Secretary

The accompanying notes are an integral part of the financial statements.

16 annual report 2016 Proudly gambian

Consolidated Statement of Changes in Equity

For the year ended 31 December 2016 co n solidated state m e n t of c h a ges i equity

The Bank Attributable to equity holders of the Bank Stated Statutory Credit risk Revaluation Income Total capital reserve reserve reserve surplus equity D'000 D'000 D'000 D'000 D'000 D'000 At 1 January 2015 200,000 139,485 - - 117,740 457,225 Net income for the year - - - - 152,061 152,061 Transfer from credit risk reserve - - 10,486 - (10,486) - Transfer to statutory reserve - 60,515 - - (60,515) - Revaluation reserve - - - 193,013 - 193,013 Dividend paid to equity holders - - - - (100,000) (100,000) At 1 January 2016 200,000 200,000 10,486 193,013 98,800 702,299 Net income for the year - - - - 107,022 107,022 Transfer from credit risk reserve - - (6,145) - 6,145 - Transfer to statutory reserve - 16,053 - - (16,053) - Dividend paid to equity holders - - - - (100,000) (100,000) At 31 December 2016 200,000 216,053 4,341 193,013 95,914 709,321

The Group Attributable to equity holders of the Group Stated Statutory Credit risk Revaluation Income Total equity capital reserve reserve reserve surplus D'000 D'000 D'000 D'000 D'000 D'000 At 1 January 2015 200,000 139,485 - - 165,261 504,746 Net income for the year - - - - 154,500 154,500 Transfer from credit risk reserve - - 10,486 - (10,486) - Transfer to statutory reserve - 60,515 - - (60,515) - Revaluation reserve - - - 193,013 - 193,013 Transfer to Bayba Capital (6,571) (6,571) HFC retained earnings at acquisition (6,517) (6,517) Dividend paid to equity holders - - - - (104,316) (104,316) At 1 January 2016 200,000 200,000 10,486 193,013 131,356 734,855 Net income for the year - - - - 105,938 105,938 Transfer from credit risk reserve - - (6,145) - 6,145 - Transfer to statutory reserve - 16,053 - - (16,053) - Dividend paid to equity holders - - - - (103,266) (103,266) At 31 December 2016 200,000 216,053 4,341 193,013 124,120 737,527 Attributable to Non-controlling interest At 1 January 2016 - - - - 10,226 10,226 Post acquisition retained earnings 1,085 1,085 At 31 December 2016 - - - - 11,311 11,311

The accompanying notes are an integral part of the financial statements

annual report 2016 17 Proudly gambian

Consolidated Statement of Cashflows For the year ended 31 December 2016

The Group The Bank 31-Dec-16 31-Dec-15 31-Dec-16 31-Dec-15 Notes D’000 D’000 D’000 D’000 CASHFLOWS FROM OPERATING ACTIVITIES Profit for the year before taxes 121,590 183,921 115,725 173,817 Adjustments to reconcile profit before taxes to net cash provided by operating activities: Depreciation and amortization 19,20 80,872 70,407 79,402 69,111 Net impairment gain on financial assets 16 (47,732) (3,001) (47,895) (5,018) Net interest income (345,546) (358,095) (337,203) (346,486) Profit on sale of assets (784) (1,898) (689) (1,917) Fixed assets written off 140 306 140 - (191,460) (108,360) (190,520) (110,493) Changes in trading assets (399,145) 161,452 (399,361) 166,480 Changes in loans and advances to customers 236,958 (23,200) 232,035 8,873 Changes in other assets (14,027) (40,431) (13,849) (53,320) m e n t of cas h flows state co n solidated Changes in deposits from banks (1,272) 8,068 (1,272) 8,068 Changes in deposits from customers 293,642 4,579 295,220 16,149 Changes in other liabilities and provisions 16,358 13,728 14,796 (1,013) (58,946) 15,836 (62,951) 34,744 Interest and dividends received 544,756 566,016 537,098 555,173 Interest paid (199,210) (207,921) (199,895) (208,687) Income tax paid (27,566) (63,469) (21,294) (54,502) Net cash used in operating activities 259,034 310,462 252,958 326,728 CASHFLOWS FROM INVESTING ACTIVITIES Purchase of investment securities - (5,440) - (14,148) Purchase of property and equipment 19 (57,251) (131,547) (56,525) (129,865) Proceeds from the sale of property and equipment 1,447 2,451 1,285 2,432 Purchase of intangible assets 20 (32,047) (12,132) (32,047) (12,132) Net cash used in investing activities (87,851) (146,668) (87,287) (153,713) CASHFLOWS FROM FINANCING ACTIVITIES Dividends paid 26 (103,266) (104,316) (100,000) (100,000) Net cash used in investing activities (103,266) (104,316) (100,000) (100,000) NET INCREASE IN CASH AND CASH EQUIVALENTS 67,917 59,478 65,671 73,015 Cash and cash equivalents at beginning of the year 1,390,025 1,330,547 1,386,471 1,313,456 Effects of exchange rate fluctuations on cash held - - - - CASH AND CASH EQUIVALENTS 1,457,942 1,390,025 1,452,142 1,386,471 AT 31 DECEMBER 2016

The accompanying notes are an integral part of the financial statements

18 annual report 2016 Proudly gambian

Notes to the financial statements For the year ended 31 December 2016 Notes to t h e fi n a cial state m e n ts

1. Reporting entity • Brikama • Serrekunda Saho 2.4 Use of estimates and kunda judgments Trust Bank Limited (“the Bank”) • Farafenni • Serrekunda Market The presentation of financial statements was established in July 1997 and is • Sinchu • Brusubi in conformity with IFRS requires the domiciled in The Gambia. The address The consolidated financial statements of preparation of estimates and assumptions of the Bank’s registered office is: 3-4 the Group as at and for the year ended that affect the reported amounts of assets ECOWAS Avenue, Banjul, The Gambia. 31 December 2016 comprise the Bank and liabilities and disclosure of contingent The principal activities of the Bank are and its subsidiaries (together referred assets and liabilities as of the date of the as follows: to as the ‘’Group”). The Group primarily financial statements and their reported • receiving deposits; is involved in Corporate and Retail amounts of revenues and expenses during the reporting period. Actual • provision of loans; Banking. It also engages in local and international money transfers through its results could differ from those estimates • system of payments and clearing; subsidiary. and future changes in the economic • dealing in financial instruments of the conditions, business strategies, regulatory money market in the Gambia and in 2. Basis of preparation requirements, accounting rules or/and foreign currencies exchange services; other factors could subsequently result in • managing clients’ receivables and 2.1 Statement of Compliance a change in estimates that could have a securities on clients’ accounts These financial statements have material impact on the reported financial including consulting service (portfolio been prepared in accordance with position and results of operations. The management); International Financial Reporting estimates and underlying assumptions are reviewed on an ongoing basis. Revisions • providing banking information; Standards (IFRS) and current interpretations issued by the to accounting estimates are recognised in • performing mortgage activities; International Financial Reporting the period in which the estimate is revised Operating income was mainly Interpretations Committee (IFRIC) . if the revision affects only that period or generated from the provision of banking Additional information required under in the period of the revision and future services in the Gambia. The Bank the Companies Act (2013) and the periods if the revision affects both current considers that its products and services Banking Act (2009) have been included, and future periods. arise from one segment of business where appropriate. The following are the critical judgments - the provision of banking and related that the directors have made in the services. The financial statements were approved by the Board of Directors on 15th March process of applying the Bank’s accounting The Bank’s shareholders as a 2017. policies and that have the most significant percentage of subscribed registered effect on the amounts recognized in capital is as follows: 2.2 Basis of measurement financial statements. • Provisioning for incurred credit 2016 % 2015 % The financial statements have been prepared on the historical cost basis losses and identified contingencies Social Security & 36.98 36.98 except for the following: involve many uncertainties about the Housing Finance outcome of those risks and require • financial instruments at fair value Corporation the management of the Bank to through profit or loss are measured at make many subjective judgments in Databank of Ghana 22.12 22.12 fair value; estimating the loss amounts. Others 40.90 40.90 • available for sale financial assets are • The income taxes rules and regulations measured at fair value; have recently experienced significant The Bank’s ordinary shares are publicly • assets and liabilities held for trading changes; there is no major historical traded on the Ghana Stock Exchange. are measured at fair value. precedent and interpretation judgment The Bank performs its activities in the with respect to the extensive and Gambia through its 18 branches as 2.3 Functional and presentation complex issue affecting the banking follows: currency sector. • Banjul • Basse The financial statements are presented • Information about significant areas • Bakau • Soma in Dalasi currency which represents of estimation uncertainty and critical the functional currency of the Bank, • Westfield • Bakoteh judgments in applying accounting being the currency of the economic policies that have the most significant • Kololi • Lamin environment in which the Bank effect on amounts recognized in the • Bundung • Barra operates. The financial statements are financial statements are described in • Yundum • Latrikunda rounded to the nearest thousand. Note 5.

annual report 2016 19 Proudly gambian

3. Significant accounting exchange differences arising on non- Other fees and commission income, monetary assets and liabilities where including account servicing fees, policies the changes in fair value are recognized investment management fees, The accounting policies set out below directly in equity. placement fees and brokerage fees are have been applied consistently to all recognized as the related services are c. Interest Income and Expense the periods presented in these financial performed. When a loan commitment is statements and have been applied Interest revenue is generally recognized not expected to result in the draw down consistently by Group entities. when future economic benefits of of a loan, loan commitment fees are the underlying assets will flow to the recognized on a straight line basis over a. Basis of consolidation organization and it can be reliably the commitment period. The financial statements of the measured. It is income derived from Other fees and commission expense subsidiaries used to prepare the use of an entity’s assets and hence the relates mainly to transaction and consolidated financial statements were interest is mostly dependent on the service fees, which are expensed as the prepared as of the Bank’s reporting underlying agreement. services are received. date. Interest income is accrued on a time basis, by reference to the principal e. Net trading income (i) Subsidiaries outstanding and the effective interest Net trading income comprises gains Subsidiaries are entities controlled by rate applicable, which is the rate that less losses related to trading assets and the Bank and include all entities over exactly discounts estimated future cash liabilities, and includes all realized and which the Bank has power to govern receipts through the expected life of unrealized fair value changes, interest, the financial and operating policies to the financial asset to that asset’s net dividends and foreign exchange obtain benefits from their activities. The carrying amount. differences. existence and effect of potential voting rights that are currently exercisable The calculation of the effective interest f. Income tax or convertible are considered when rate includes all fees paid or received, transaction costs, and discounts or Income tax expense comprises current m e n t t h e fi n a cial state to n otes assessing whether the Bank controls premiums that are an integral part of and deferred tax. Income tax expense another entity. The financial statements is recognized in the income statement the effective interest rate. Transaction of subsidiaries are included in the except to the extent that it relates to costs are incremental costs that are consolidated financial statements from items recognised directly in equity, in directly attributable to the acquisition, the date that control commences until which case, it is recognised in equity. the date that control ceases. issue or disposal of a financial asset or liability. (i) Current tax (ii) Transactions eliminated on Interest income and expense presented Current tax is the expected tax payable consolidation in the income statement include: on the taxable income for the year, Intra-group balances and transactions, •● Interest on financial assets and using tax rates enacted or substantively and any unrealized income and liabilities at amortized cost on an enacted at the balance sheet date, expense (except for foreign currency effective interest rate basis and any adjustment to tax payable in transaction gains or losses) arising respect of previous years. from intra-group transactions, •● Interest on available for sale (ii) Deferred tax are eliminated in preparing the investment securities on an effective consolidated financial statements. interest basis Deferred income tax is provided, using Unrealized losses are eliminated in the Interest income and expense on the balance sheet liability method, for same way as unrealized gains, but only all trading assets and liabilities are temporary differences arising between to the extent that there is no evidence considered to be incidental to the the tax bases of assets and liabilities of impairment. Bank’s trading operations and are and their carrying amounts for financial presented together with all other reporting purposes. Deferred tax b. Foreign currency changes in the fair value of trading assets are recognized to the extent that it is probable that future taxable (i) Foreign currency transactions assets and liabilities in net trading income. profit will be available against which Transactions in currencies other than the deductible temporary differences Fair value changes for other financial Dalasi are recorded at the rates of can be utilized. Deferred tax assets are assets and liabilities carried at fair value exchange prevailing on the dates of reviewed at each reporting date and are the transactions. At each balance through profit or loss, are presented reduced to the extent that it is no longer sheet date, monetary assets and in net income on other financial probable that the related tax benefit will liabilities that are denominated in instruments carried at fair value in the be realized. foreign currencies are retranslated at income statement. Deferred tax assets and liabilities the rates prevailing on the balance are offset when there is a legally sheet date. Non-monetary assets and d. Fees and commissions enforceable right to set off tax assets liabilities carried at fair value that are income/expense against tax liabilities. denominated in foreign currencies Fees and commissions income and are translated at the rates prevailing expenses that are integral to the The Bank recognizes corporate income at the date when the fair value was effective interest rate on a financial tax and deferred tax on the balance determined. Gains and losses arising asset or liability are included in the sheet as “Income tax assets” or on retranslation are included in net measurement of the effective interest “Income tax liabilities” as appropriate. profit or loss for the period, except for rate. Additional income taxes that arise

20 annual report 2016 Proudly gambian from the distribution of dividends are of similar transactions such as in the one or more events that occurred after recognized at the same time as the Bank’s trading activity. the initial recognition of the financial liability to pay the related dividend is (iv) Amortized cost measurement asset, the estimated future cash flows recognized. of the investment have been impacted. The amortized cost of a financial The Group considers evidence of g. Financial assets asset or liability is the amount at which the financial asset or liability is impairment at both an individual (i) Recognition measured at initial recognition, minus and collective level. All individually Loans and advances are recognized principal repayments, plus or minus significant financial assets are on the date that they are originated. the cumulative amortization using assessed for specific impairment. n otes to t h e fi n a cial state m e n t Investments are recognized on trade the effective interest method of any All significant assets found not date where the purchase or sale of an difference between the initial amount to be specifically impaired are investment is under a contract whose recognized and the maturity amount, then collectively assessed for any terms require delivery of the investment minus any reduction for impairment. impairment that has been incurred but not yet identified. Assets that are within the timeframe established by The effective interest method is a not individually significant are then the market concerned, and are initially method of calculating the amortized collectively assessed for impairment measured at fair value, plus transaction cost of a financial asset and of costs, except for those financial assets allocating interest income over the by grouping together financial assets classified as at fair value through profit relevant period. The effective interest (carried out at amortized cost) with or loss, which are initially measured at rate is the rate that exactly discounts similar risk characteristics. fair value. estimated future cash receipts Objective evidence that financial Financial assets are classified into the (including all fees on points paid or assets (including equity securities) following specified categories: financial received that form an integral part of are impaired can include default assets ‘at fair value through profit the effective interest rate, transaction or delinquency by a borrower, or loss’ (FVTPL), ‘held-to-maturity’ costs and other premiums or discounts) restructuring of a loan or advance investments, ‘available-for-sale’ through the expected life of the financial by the Group on terms that the (AFS) financial assets and ‘loans and asset, or, where appropriate, a shorter Group would otherwise not consider, receivables’. The classification depends period. indications that a borrower or on the nature and purpose of the (v) Financial assets at fair value issuer will enter bankruptcy, the financial assets and is determined at through profit and loss disappearance of an active market for the time of initial recognition. a security, or other observable data This category comprises two sub relating to a group of assets such (ii) De-recognition categories; financial assets classified as adverse changes in the payment as held for trading and financial assets The Bank derecognizes a financial status of borrowers or issuers in the designated at fair value through profit or asset only when the contractual rights group, or economic conditions that loss upon initial recognition. to the cash flows from the asset expire; correlate with defaults in the group. or it transfers the financial asset and A financial asset is classified as held In assessing collective impairment, substantially all the risks and rewards for trading if it is acquired or incurred the Group uses statistical modelling of ownership of the asset to another principally for the purpose of selling of historical trends of the probability entity. If the Bank neither transfers nor or repurchasing in the near term or if of default, timing of recoveries and retains substantially all the risks and part of a portfolio of identified financial the amount of loss incurred, adjusted rewards of ownership and continues instruments for which there is evidence for management’s judgement as to control the transferred asset, the of recent actual patterns of short term to whether current economic and Bank recognizes its retained interest in profit taking. the asset and an associated liability for credit conditions are such that the The determination of fair values of actual losses are likely to be greater amounts it may have to pay. If the Bank financial assets and financial liabilities retains substantially all the risks and or less than suggested by historical is based on quoted market prices or modelling. Default rates, loss rates rewards of ownership of a transferred dealer price quotations for financial and the expected timing of future financial asset, the Bank continues to instruments traded in active markets. recognize the financial asset and also recoveries are regularly benchmarked For all other financial instruments, fair recognizes a collateralized borrowing against actual outcomes to ensure value is determined by using valuation that they remain appropriate. for the proceeds received. techniques. Valuation techniques Impairment losses on assets carried (iii) Offsetting include net present value techniques, at amortised cost are measured as the discounted cash flow method, Financial assets and liabilities are set off the difference between the carrying comparison to similar instruments for and the net amount presented in the amount of the financial assets and which market observable prices exist, balance sheet when, and only when, the present value of estimated cash and valuation models. the Bank has a legal right to set off the flows discounted at the assets’ amounts and intends either to settle on (vi) Impairment of financial assets original effective interest rate. Losses a net basis or to realize the asset and Financial assets, other than those at are recognised in profit or loss and settle the liability simultaneously. Fair Value Through Profit and Loss, are reflected in an allowance account Income and expenses are presented assessed for indicators of impairment against loans and advances. Interest on a net basis only when permitted at each balance sheet date. Financial on the impaired asset continues to be by the accounting standards, or for assets are impaired where there is recognised on the unimpaired portion gains and losses arising from a group objective evidence that, as a result of through the unwinding of the discount.

annual report 2016 21 notes to the financial statement Proudly gambian 22 annual report 2016 thedesignationeliminatesor • theassets orliabilitiesare managed, • profit orlosswheneither: assets andliabilitiesatfairvaluethrough The Group hasdesignatedfinancial through profit andloss i. Designation atfairvalue cancelled ortheyexpire. Bank’s obligationsare discharged, liabilities when,andonlythe The Bankderecognises financial De-recognition offinancialliabilities period. liability, or, where appropriate, ashorter through theexpected lifeofthefinancial estimated future cash payments rate isthethatexactlydiscounts relevant period. Theeffective interest allocating interest expense overthe cost ofafinancialliabilityand method ofcalculatingtheamortised The effective interest methodisa recognised on aneffective yieldbasis. interest method,with interest expense at amortisedcostusingtheeffective liabilities are subsequently measured of transactioncosts.Suchfinancial initially measured at fair value,net liabilities, includingborrowings, are value through profit andloss.Financial liabilities asfinancialatfair The Bankhasnotclassifiedanyfinancial h. of interest income. time valueare reflected asacomponent in impairmentprovisions attributableto recognised directly toequity. Changes Available ForSaleequitysecurityis in thefairvalueofanimpaired However, anysubsequentrecovery profit andloss. impairment lossisreversed through Sale debtsecuritytodecrease, the of impairmentlossonanAvailable For related totheeventcausesamount When asubsequenteventthatcanbe fair valueoutofequitytoprofit orloss. amortized acquisitioncostandcurrent transferring thedifference betweenthe investment securitiesare recognised by Impairment lossesonAvailable ForSale profit andlossaccount. the impairmentlossisreversed through amount ofimpairmentlosstodecrease, When asubsequenteventcausesthe arise, or mismatch whichwouldotherwise significantly reduces anaccounting fair valuebasis; evaluated andreported ona internally Financial liabilities fair valueplusanydirectly attributable Such assetsare recognized initiallyat are notquotedinanactivemarket. fixed ordeterminablepayments that non-derivative financialassets with Loans andreceivables represent l. initial recognition. are notreclassified subsequenttotheir or loss.Trading assetsandliabilities as partofnettradingincomeinprofit changes infairvalueare recognised costs takendirectly toprofit orloss.All of financialpositionwithtransaction measured atfiarvalueinthestatement initially recognised andsubsequently Trading assetsandliabilitiesare or positiontaking. managed togetherforshorttermprofit holds aspartofaportfoliothatis or repurchasing inthenearterm,or principally forthepurposeofselling Bank ortheGroup acquires orincurs those assetsandliabilitiesthatthe Trading assetsandliabilitiesare k. Trading assetsandliabilities bonds. government with otherbanks,andshort-term include T-bills, demanddeposits minimum reserve. Cash equivalents The Gambiaexceptforthestatutory balances withtheCentralBankof and foreign bankdeposits, andcash local andforeign currencies, local preparation comprise cashheldin purpose ofcashflowstatement Cash andcashequivalentsforthe commitments. in themanagementofitsshortterm fair value,andare used bytheBank to insignificantriskofchangesintheir than three months,whichare subject assets withoriginalmaturitiesofless requirement andhighlyliquidfinancial compulsory minimumcashreserve the Gambia(CBG),including held withtheCentralBankof notes andcoinsonhand,balances Cash andcashequivalentsinclude j. Cashandcashequivalents liability class. out inthenoteforrelevant assetor the basisforeachdesignationisset through profit orloss.Adescription of has beendesignatedatfairvalue class offinancialassetorliabilitythat Note 4(h)setsouttheamountofeach theassetorliabilitycontains • under thecontract. that wouldotherwiseberequired significantly modifiesthecashflows an embeddedderivativethat Loans andreceivables securities are accruedonadailybasis and premiums onheld-to-maturity years. Interest incomeanddiscounts current andthefollowingtwofinancial securities asheld-to-maturityfor the Bank from classifyinginvestment available-for-sale, andprevent the all held-to-maturityinvestmentsas would result inthereclassification of investments notclosetotheirmaturity insignificant amountofheld-to-maturity or reclassification ofamore than on aneffective yieldbasis.Anysale impairment, withrevenue recognised the effective interest methodlessany are recorded atamortisedcostusing Held-to-maturity investmentsand Bills discountedare recognised as investments. Repurchased billsand are classified as held-to-maturity intent andabilitytoholdmaturity that theBankhaspositive payments andfixedmaturitydates Instruments withfixedordeterminable (HTM) (i) Held-to-maturityinvestments loss, oravailableforsale. to maturity, fairvaluethrough profit or on theirclassificationaseitherheld subsequently accountedfordepending direct transactioncosts and measured atfairvalue plusincremental Investment securitiesare initially m. Investmentsecurities and individualriskcharacteristics. the typeofcollateralandtransaction, for eachtypeofcollateraldependingon determined onacase-by-casebasis The valueofpledgedcollateralis Receivables. • Realestates, • Financialcollateral, • types ofcollateral: The Bankmainlyacceptsthefollowing default. enforcement, shouldtheclientbein credit riskmitigationandcollateral acceptability forthepurposesof estates, determinationofcollateral on thevaluationandrevaluation ofreal Bank placesgreat emphasismainly In termsofhandlingcollateral,the (i) Loancollateral interest rate. recognized byapplyingtheeffective impairment losses.Interest incomeis the effective interest method,lessany measured atamortizedcostusing recognition loansandreceivables are transaction costs.Subsequenttoinitial notes to the financial statement 23

Intangible Assets equipment are recognised in profit or in profit recognised are equipment loss as incurred. plant and of property, Impairment and intangible assets equipment date, the Bank At each balance sheet of its the carrying amounts reviews and plant and equipment property, whether intangible assets to determine those is any indication that there an impairment assets have suffered exists, the loss. If any such indication asset is amount of the recoverable the to determine estimated in order loss (if any). extent of the impairment is the higher of Recoverable amount to sell and value fair value less costs in use. In assessing value in use, cash flows are the estimated future value using discounted to their present discount rate that reflects a pre-tax market assessments of the current time value of money and the risks specific to the asset for which the cash flows have not estimates of future been adjusted. amount of an If the recoverable asset is estimated to be less than its carrying amount, the carrying to its amount of the asset is reduced amount. An impairment recoverable immediately in profit loss is recognised an impairment loss or loss. Where the carrying subsequently reverses, to amount of the asset is increased estimate of its recoverable the revised amount, so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss for the asset in prior been recognised of an impairment loss years. A reversal immediately in income is recognised statement. o. An intangible asset is generally as an identifiable non considered monetary asset without physical substance. It is distinguished from goodwill based on the identifiability when concept. It is recognised economic benefits will flow future and it can be reliably to the Group The useful life may be finite measured. or indefinite depending on the nature and legal framework underpinning the transaction. Impairment assessment is made of all indefinite intangibles date and the at each reporting adjustments made. appropriate recognized license costs are Software as intangible assets carried at cost less accumulated amortization. annual report 2016 annual report Proudly gambian Proudly

5 5 5 3 5 50 99 ears Number of Y cost of dismantling and removing the and removing cost of dismantling the site on which restoring items and softeare Purchased located. they are of the to the functionality that is integral as part equipment is capitalised related of that equipment. an item of When components of different or equipment have property for as accounted useful lives, they are components) of separate items (major and equipment. property separately is determined Depreciation asset and is for each category of cost the off charged so as to write (other than or valuation of the assets construction) to land and items under value over their estimated their residual useful lives, using the straight-line method. The estimated useful lives of property, plant and equipment and intangible as follows: fixed assets are Buildings Office machines Computer equipment Vehicles Computer software Right to use of Land Furniture Furniture and equipment Residual values and estimated useful assessed on an annual basis. lives are Surpluses or deficits on the disposal of recognised and equipment are property in the income statement. The surplus between the or deficit is the difference and the carrying net disposal proceeds amount of the asset. in the course of construction Properties for administrative purposes, or for purposes not yet determined, are carried at cost, less any recognised impairment loss. Cost includes fees and, for qualifying professional costs capitalised in assets, borrowing accounting with the Bank’s accordance of these assets, Depreciation policy. on the same basis as other property assets, commences when the assets their intended use. for ready are Subsequent costs part of an item of The cost of replacing or equipment is recognised property in the carrying amount of the item if it economic that the future is probable benefits embodied within the part will flow to the Bank and its cost can be The costs of the reliably. measured and day to day servicing of property ale financial assets vailable for Sale financial assets Property, Plant and Plant Property, n. Equipment plant and equipment Items of property, at cost less accumulated measured are and accumulated depreciation impairment losses. Cost includes attributable that is directly expenditure to bringing the asset to a working condition for its intended use, and the (AFS) are For Sale investments Available that are non derivative investments category of not designated as another financial assets. The AFS portfolio includes the Bank’s investments in other entities, with of less than 20% of share a share capital and voting rights. The portfolio at cost less impairment is measured as recognized which are provisions, available-for-sale (loss) from “Net profit financial instruments” in the income statement, as their market price in an active market cannot be reliably measured. The portfolio mainly includes shares in privately held companies for which no market exist. The Bank does not expect selling or otherwise disposing holdings in the near of its share For companies against which future. underway, are bankruptcy proceedings and the created are 100% provisions will be written off participation shares after the completion of the bankruptcy proceedings. Equity investments made to Home International Bank Finance Company, of Liberia, Bayba Financial Services, Banking (Ghana) World Women’s and Gamswitch Company Ltd are at recorded classified as AFS and their nominal amounts as these equity not publicly traded and investments are is no the Bank has assessed that there basis for estimating their fair reasonable values. Dividends on these equity instruments or loss in the profit recognized are the right to receive when the Bank’s dividends is established. and recognised as “Interest and similar “Interest as and recognised the income statement. income” in and considers fair value IFRS 9 only cost based on the business amortised the financial models for managing cash flow asset and the contractual financial asset. characteristics of the assets are Thus all Held to maturity costs. classified as amortised (ii) a notes to the financial statement Proudly gambian 24 annual report 2016 amount thatwouldhavebeen amount doesnotexceedthecarrying to theextentthatasset’s carrying An impairmentlossisreversed only to determinetherecoverable amount. been achangeintheestimates used impairment lossisreversed ifthere has decreased ornolongerexists.An for anyindicationsthatthelosshas assessed ateachreporting date recognised inpriorperiodsare of otherassets,impairmentlosses goodwill isnotreversed. Inrespect An impairmentlossinrespect of specific totheasset. the timevalueofmoneyandrisks reflects current marketassessmentsof using apre-tax discount ratethat are discounted totheirpresent value use, theestimatedfuture cash flows less coststosell.Inassessingvaluein of itsvalueinuseandfair or cashgeneratingunitisthegreater The recoverable amount ofanasset the unitonapro rata basis. carrying amountoftheotherassetsin to theunitsandthenreduce the amount ofanygoodwillallocated allocated firstto reduce thecarrying in respect ofcash generatingunitsare groups. Impairment lossesrecognised independent from other assetsand generates cashflowsthatlargelyare smallest identifiableassetgroup that amount. Acashgeneratingunitisthe generating unitexceedsitsrecoverable carrying amountofanassetoritscash An impairmentlossisrecognised ifthe estimated ateachreporting date. recoverable amount ofgoodwillis recoverable amountisestimated.The such indicationexists,thentheasset’s any indicationofimpairment.If date todeterminewhetherthere is assets, are reviewed ateachreporting investment property anddeferred tax non financialassets,otherthan The carryingamountsoftheGroup’s assets p. expensed asincurred. which itrelates. Allotherexpenditure is embodied inthespecificassetto the future economicbenefits is capitalizedonlywhenitincreases Subsequent expenditure onsoftware equipment. equipment iscapitalisedaspartofthat to thefunctionalityofrelated purchased software thatisintegral a periodof4years.However, Software costisamortizedover Impairment ofnonfinancial Bank’s prudentialguidelines. accordance withIFRSandtheCentral loans andadvancescalculatedin provisions madeforbadanddoubtful on loansandadvancesbased recognised asimpairmentloss the shortfallsbetweenamounts This isareserve created tosetaside q. period. DilutedEPSisdetermined by shares outstandingduringthe weighted averagenumberofordinary shareholders oftheBankby profit orlossattributabletoordinary EPS iscalculatedbydividingthe data foritsordinary shares. Basic persharediluted earnings (EPS) The Bankpresents basicand per share t. present value. the serviceare discountedtotheir period inwhichtheemployeesrender than 12monthsaftertheendof contribution planthatare duemore available. Contributionstoadefined or areduction infuture paymentsis asset totheextentthatacashrefund contributions are recognised asan are rendered byemployees.Prepaid the periodsduringwhichservices benefit expenseinprofit or lossin are recognised asanemployee defined contributionpensionplans Obligations forcontributionsto obligation topayfurtheramounts. Bank willhavenolegalorconstructive are paidintoa separateentityandthe Under theplan,fixedcontributions contribution planforallemployees. The Bankoperatesadefined s. risks specifictotheliability. of thetimevaluemoneyand reflects current marketassessments cash flowsatapre-tax ratethat by discountingtheexpectedfuture obligation. Provisions are determined can bemadeoftheamount obligation, andareliable estimate benefits willbe required tosettlethe probable thatanoutflowofeconomic of pastevents,forwhichitis constructive obligationasaresult the Bankhasapresent legalor Provisions are recognised when r. Provisions had beenrecognised. amortisation, ifnoimpairmentloss determined, netofdepreciation or Basic and diluted earnings Basic anddilutedearnings Employee benefits Credit RiskReserve declared. liability intheperiodwhichtheyare Dividends are recognised asa of revenue can bemeasured reliably). will flowtotheBankandamount probable thattheeconomic benefits established (provided thatitis right toreceive payment hasbeen is recognised when theshareholder’s Dividend revenue from investments v. Dividend presented onsegment reporting. Accordingly, noinformationis no distinctoperatingsegments. are managedasonebusinesswith segments. OperationsoftheBank are different from thoseofother subject torisksandrewards that (geographical segment),whichis a particulareconomicenvironment providing products orserviceswithin or services(businesssegment)in engaged eitherinproviding products component oftheBankthatis A segmentisadistinguishable u. in presentation inthecurrent year. been adjustedtoconformchanges information. Comparativefigures have or disclosedwithcomparative otherwise, allamountsare reported interpretation permitsorrequires Except where astandard or y. Comparatives involving economicbenefitsis remote. possibility ofanoutflow resources liabilities andare disclosedunlessthe credit are considered contingent Bonds, guaranteesandlettersof letters ofcredit x. settle theliabilitysimultaneously. net basis,ortorealise theassetand and there isanintention tosettleona a legallyenforceable rightofsetoff on thebalancesheetwhenthere is offset andthe netamountreported Financial assetsandliabilitiesare assets andliabilities w. employees. notes andshare optionsgrantedto shares, whichcompriseconvertible effects ofalldilutivepotentialordinary shares outstandingadjustedforthe weighted averagenumberofordinary to ordinary shareholders andthe adjusting theprofit orlossattributable Bonds, guaranteesand Segment reporting Offsetting offinancial notes to the financial statement 25

consultation with business units, consultation with business covering collateral requirements, assessment, risk grading credit documentary and and reporting, and compliance legal procedures and statutory with regulatory requirements; for the approval and structure facilities. of credit and renewal allocated Authorization limits are to branch and corporate officers. by approval Larger facilities require committee the head of the credit as of Directors or the Board appropriate. risk. The bank assesses all credit in excess of designated exposures limits prior to facilities being committed to customers. Renewals subject of facilities are and reviews process. to the same review concentration is the risk of loss to an excessive the bank arising from to a concentration of exposure industry or single counterparty, limits have Large exposure sector. been established under the Central guidelines Bank of The Gambia’s and concentration risk is monitored on an ongoing basis. any given account, customer or portfolio using a range of tools such as collateral. Risk mitigation policies determine the eligibility of collateral types. limits, exposure units with agreed including those for selected industries, country risk and product type. specialist skills and training to best business units to promote the bank in the practice throughout risk. management of credit Credit risk arising on trading securities on trading securities risk arising Credit but independently, is managed of market as a component reported risk exposure. a risk is managed through Credit out policies and framework that sets covering the identification, procedures and management measurement of risk. The management of credit the Credit risk is delegated to credit is to enhance committee whose goal by: culture credit a strong • policies in Formulating credit • Establishing the authorization • Reviewing and assessing credit • Credit concentration. Monitor credit • losses from Mitigate potential credit • of business Reviewing compliance • advice, guidance, Providing annual report 2016 annual report Proudly gambian Proudly Credit risk Credit Risk management policies and policies and Risk management to regularly reviewed systems are in market conditions, changes reflect offered. and services products its training The Bank, through and and management standards aims to develop procedures, a disciplined and constructive in which all environment, control and their roles employees understand obligations. is responsible The Audit committee with for monitoring compliance risk management the Bank’s and for policies and procedures, the risk the adequacy of reviewing management framework in relation to the risks faced by the Bank. The Audit committee is assisted in these functions by the Internal Audit Department, Legal and Compliance Department. These departments and ad-hoc undertake both regular of risk management controls reviews of which the results and procedures, to the Audit committee. reported are committee oversees The Credit and management of all control and procedures policies, processes lending function. to the Bank’s relating by this The scope of risks covered risk, committee includes credit concentration risk and country risk. The Asset and liability committee (ALCO) is a decision making body for to all asset developing policies relating and liability management matters. The Risk Management department for developing is responsible risk and monitoring the Bank’s management policies and procedures on a day to over specified areas to the Board day basis. It reports the Audit on its activities through Committee. b. risk is the risk of financial Credit loss to the bank if a customer or counterparty to a financial instrument fails to meet its contractual obligations with to pay the bank in accordance risk is the most terms. Credit agreed business important risk for the bank’s and is attributed to both on balance sheet financial instruments such as investments and loans, overdrafts, to equivalent amounts related credit balance sheet financial items. off risk Management of credit For risk management purposes, the bank considers and consolidates risk exposure. all elements of credit this reflects the this reflects this reflects the this reflects this reflects the risk of this reflects this reflects the possible this reflects Financial risk management risk Financial Introduction and overview Introduction

Credit risk Credit inability of a customer to meet his/ obligations. her repayment Liquidity risk inability to accommodate liability maturities and withdrawals, fund or meet contractual asset growth obligations. Market risk fluctuations in asset and commodity values caused by changes in market prices and yields and it includes rate risk, interest currency foreign risk and other price risks. 4. a. is of critical risk management Effective to the delivery of importance and key shareholders. for sustainable returns of part Risk taking is an inherent business activities and the Bank’s of losing is defined as the possibility investment. some or all of an original and Risk management systems to designed are governance structures earnings and achieve volatility reduce risk balance between an appropriate profitability. and increased and reward is exposed to The main risks the Bank follows: as are • • • Operational risk inadequate from potential loss result systems, or failed internal processes, people, legal issues, external events and non compliance with regulatory issues. principal risks of the Bank. These are The notes to the financial statements information about the Bank’s presents to these risk, as well as their exposure impact on earnings and capital. Risk management framework The Risk management framework set of consists of a comprehensive and processes policies, procedures monitor, measure, designed to identify, significant risk mitigate and report in a consistent and effect exposure the Bank. The Board manner across has established the Asset of Directors and Liability (ALCO), Audit, Credit and Risk Management committees for developing responsible which are risk and monitoring the Bank’s management policies in their specified areas. risk management policies The Bank’s established to identify and analyse are the risks faced by the Bank, to set risk limits and controls, appropriate to limits. and to monitor adherence notes to the financial statement Proudly gambian 26 annual report 2016 Grade 1-3Normal Collectively impaired Carrying amount Allowance forimpairment Gross amount Grade 8:Impaired (doubtful) Grade 7:Impaired (loss) Grade 6:Impaired (loss) Individually impaired Exposure tocredit risk Gross amount Grade 4-5Watch list Carrying amount Allowance forimpairment Grade 1-3Normal Neither pastduenorimpaired Carrying amount 180-360 days+ 90-180 days 60-90 days 30-60 days Past duecomprises: Carrying amount Grade 4-5Watch list Grade 1-3Normal Past duebutnotimpaired impaired whenthediscountedcash performing are nottreated as payments are pastdueornon contractual interest orprincipal Loans andsecuritieswhere impaired loans Past dueornonperformingbutnot (settlement) ismade. only beconsidered whenpayments non-accrual basisandportionsshall loans are calculatedandtreated on security agreements. Interest onthese to thecontractualtermsofloan/ principal andinterest dueaccording that itwillbeunabletocollectall bank determinesthatitisprobable loans andsecuritiesforwhichthe Impaired loansandsecurities are Impaired loans andsecurities Carrying amount Grade 4-5Watch list T Includes loanswithrenegotiated terms otal carryingamount loan portfolios.Themaincomponents the estimateofincurred lossesinthe for impairmentlossesthatrepresents The bankestablishesanallowance Allowances forimpairment reasonable periodoftime. is evidenceofperformanceovera facility doesnotchangeuntilthere status orriskgradeofarestructured would nototherwiseconsider. The bank hasmadeconcessionsthatit financial positionandwhere the due todeteriorationintheborrower’s loans thathavebeenrestructured Loans withrenegotiated termsare Loans withrenegotiated terms the loan. collateral is estimated to be more than flows oftheforced sale valueofthe impaired financialassetsbyriskgrade. impairment) amountsofindividually gross andnet(ofallowancefor Set outbelowisananalysisofthe assessment forimpairment. on loanssubjecttoindividual incurred buthavenotbeenidentified respect oflossesthathavebeen groups ofhomogeneousassetsin loan lossallowanceestablishedfor significant exposures, and acollective component thatrelates toindividually of thisallowanceare aspecificloss advances to customers Loans and 784,313 797,368 792,066 784,313 822,196 784,313 (16,626) 30,130 46,756 37,757 13,055 13,055 12,393 13,055 13,055 (5,302) D’000 5,808 3,191 2016 662 - - - - advances to customers Loans and 1,006,336 936,712 974,314 967,490 936,712 936,712 (29,126) 21,338 38,846 67,972 41,414 37,602 19,592 37,602 18,010 37,602 37,602 (6,824) D’000 5,220 2015 - - - - notes to the financial statement 27

------Net 2015 389 D’000 D’000 3,385 2,026 5,331 26,356 11,080 30,130 17,228 19,592 38,846 67,269 42,252 20,477 43,843 119,275 237,400 Loans and customers Loans and customers 2,439,787 advances to 1,892,860 advances to advances to ------90 2016 598 D’000 D’000 Gross 3,191 5,808 6,128 5,220 8,749 37,757 46,756 41,414 21,338 67,972 53,418 212,272 136,464 283,133 Loans and customers Loans and customers 2,727,055 2,026,203 advances to advances to advances to annual report 2016 annual report Proudly gambian Proudly Property Cash Equity Property Other Cash Equity Other Property Cash Equity Other Property Cash Equity Other Against individually impaired Grade 7: Individually impaired Grade 7: Individually 31st December 2016 impaired Grade 6: Individually oans and advances Loans and Grade 8: Individually impaired Grade 8: Individually Total 31st December 2015 impaired Grade 6: Individually impaired Grade 7: Individually Grade 8: Individually impaired Total other over property, advances to customers in the form of mortgage interests The bank holds collateral against loans and of collateral assessed at the based on the value of fair value are securities over assets, and guarantees. Estimates registered Collateral for loans when a loan is individually assessed as impaired. not updated except and generally are time of borrowing, securities, and no such bills. Collateral is not usually held against investment treasury and advances to banks is in the form of or 2015. collateral was held at 31 December 2016 and other security enhancements held against financial assets is shown below. An estimate of the fair value of collateral as discounted to sale values less estimated costs of sale of the forced at cash flows loans are Collateral values of impaired values. present Against Collectively impaired Against past due but not impaired Against neither past due nor impaired Total Assets held for sale at the lower of measured in the period are The type and carrying amount of collateral that the bank has taken possession of its carrying amount and fair value less costs to sell as stated below: notes to the financial statement Proudly gambian 28 annual report 2016 T of credit riskatthereporting dateisshown below: The bankmonitorsconcentrationsofcredit riskbysector. Ananalysisofconcentrations Total Carrying amount customer depositsmaintained payable ondemand.Thefew no specificmaturitydateand are These amountsgenerallybear primarily depositsfrom customers. The Bank’s liabilitiesrepresent affairs. taken basedonthecurrent stateof and, subsequently, decisionsare which theBank’s liquidityisevaluated are heldonaweeklybasis,during Division. RegularmeetingsofALCO Treasury andInvestmentBanking Liabilities Committee(ALCO)andthe the responsibility oftheAssetsand liquidity. Liquiditymanagementis liabilities soastoensure continuous time, andtomanageitsassets liabilities inaproper manner andin i.e. theabilitytomeetitsfinancial Bank wishestomaintainitssolvency, liabilities whentheybecomedue.The loss oftheBank’s abilitytofulfillits Liquidity riskmeansaofpossible Management ofliquidityrisk mismatches incashflows. as theyfalldue.Therisksarisefrom obligations from itsfinancial liabilities will encounterdifficultyinmeeting Liquidity riskisthethatbank c. Concentration bysector Against individuallyimpaired otal Other Mining Service Industry Equity Manufacturing Cash Agriculture Property Liquidity risk ALCO forapproval. structure ofassetsandliabilitiesto submits reports ontheBank’s Liabilities Managementfunction on aweeklybasis.TheAssetand liquidity positionisreported toALCO development. Informationonthe on adailybasisandreports onits function monitorstheBank’s liquidity The IntegratedRiskManagement levels ofdemand. cover withdrawalsatunexpected facilities thatshouldbeinplaceto of interbankandotherborrowing such callsandontheminimumlevel of maturingfundsavailabletomeet limits ontheminimumproportion level ofcertainty. TheBanksets funds canbepredicted withahigh level ofreinvestment ofmaturing as experienceshowsthataminimum resources tomeetalloftheseneeds The Bankdoesnotmaintaincash loan drawdownsandguarantees. current accounts,maturing deposits, on itsavailablecashresources from The Bankisexposedtodailycalls discounted ones. are notmaterially different from the means theundiscountedcashflows maximum periodofoneyear. This on fixedtermsallmatures witha At 31December follows: during thereporting periodwere as deposits atthereporting dateand ratio ofnetliquidassetstocustomer next month.Detailsofthereported and commitmentsmaturingwithinthe securities issued,otherborrowings less anydepositsfrom banks,debt there isanactiveand liquidmarket and investmentinsecuritiesforwhich including cashandequivalents net liquidassetsare considered as customers. Forthispurpose,the of netliquidassetstodepositsfrom for managingliquidityriskistheratio The keymeasure used bythebank Exposure toliquidity risk The Gambia. requirements oftheCentralBank at anytimeitmeetstheliquidity its activitiessoastoensure that The Bankisobligedtoperform period Average forthe period Maximum forthe period Minimum forthe advances to advances to customers customers Loans and Loans and 694,905 123,829 822,196 1,307 2,155 D’000 D’000 2016 2016 - - - - - 75.3% 72.1% 75.3% 68.9% 2016 advances to advances to 1,006,336 customers customers Loans and Loans and 880,990 118,796 4,640 1,910 70.0% 72.6% 74.8% 70.0% D’000 D’000 2015 2015 2015 - - - - - notes to the financial statement 29

------1-5 2015 years D’000 D’000 D’000 1,769 3,003 5,487 (2,340) 48,074 (44,500) scenario (13,608) (32,002) (23,881) Bank’s loss Bank’s in respective in respective

Net FX positions - - D’000 2016 D’000 to 1 year 2,023 3 months 2,023 3,801 267,122 300,256 (6,180) 267,122 300,256 (6,180) (10,505) currency (10,149) (10,149) in respective in respective

- - Bank’s position Bank’s D’000 foreign exchange and interest rates. exchange and interest foreign The sensitivity analysis includes currency only outstanding foreign denominated monetary items and adjusts their translation at the period end for a 5% change in foreign rates. currency risk Currency the risk represents Currency from potentiality of loss resulting unfavorable movements in foreign exchange rates. The Bank currency this risk by the determination controls and monitoring of open position limits. subject positions are Open currency the monitoring through to real-time banking information system. Limits set in line with for these positions are the CBG guidelines. Data on the Bank positions and on the Bank’s currency compliance with the limits set by CBG on a weekly basis. reported are annual report 2016 annual report 1 month Proudly gambian Proudly 176,063 221,622 176,063 221,622 46.24 56.96 49.41 to 3 months scenario in sensitivity Exchange rate D’000 month 10,956 12,228 Less than 1 3,978,485 3,593,616 3,967,529 3,605,844 44.04 54.25 47.06 exchange rate D’000 resent value of value of Present 10,956 12,228 4,421,670 4,115,494 4,410,714 4,127,722 inflow/outflow Gross nominal Gross potential losses the Bank may incur due to unfavorable development in market rates and prices. The Bank primarily faces the following market risks: • risk Currency • rate risk Interest Sensitivity analysis of market risks the Sensitivity analysis reflects profit/ implications on the Bank’s the movements in loss arising from rates, market parameters (interest prices, etc.) by exchange rates, share values. For monitoring predetermined and limiting of risk, the Bank uses 2% rates, a 5% movement in for interest exchange rates and 20% movement and commodity prices. in share These movements represent assessment of the management’s possible change in reasonably D’000 amount 10,956 12,228 Carrying 4,421,670 4,115,494 4,410,714 4,127,722 Market risk The Bank’s foreign exchange balance as of 31 December 2016 and 2015 were as follows: exchange balance as of 31 December 2016 and 2015 were foreign The Bank’s 31st December 2016 Banks Deposits from USD GBP Other GBP Total USD EURO EURO net FX balance sheet position Total value of assets and liabilities of the Bank following the movements in exchange rates of the selected Change in the present to the detriment of the Bank as of 31 December 2016: currencies d. The Bank is exposed to market open from risks. Market risks result transactions with positions from and rate, cross-currency interest subject to that are equity products general and specific market changes. level of assess the approximate To market risks associated with the positions, and the expected Bank’s maximum amount of potential losses, and the Bank uses internal reports models for individual types of risks faced by the Bank. The Bank uses a system of limits, the aim of which is to that the level of risks the Bank ensure is exposed to at any time does not exceed the level of risks the Bank is willing and able to take. These limits on a daily basis. monitored are For risk management purposes, as the risk of market risk is regarded Residual contractual maturities of financial liabilities maturities Residual contractual Deposits from Customers Deposits from 31st December 2015 Banks Deposits from Deposits from Customers Deposits from notes to the financial statement Proudly gambian 30 annual report 2016 all yieldcurves. the greater than12monthportionof worldwide anda50bpriseor fall in parallel fallorriseinyieldcurves basis includea100point (bp) that are considered onamonthly rate scenarios.Standard scenarios standard andnonstandard interest assets andliabilitiestovarious sensitivity oftheBank’s financial is supplementedbymonitoringthe risk againstinterest rategaplimits The managementofinterest rate Deposits from customers Deposits from banks Investment securities Loans/advances tocustomers Cash andcashequivalents 31st December2015 Deposits from customers Deposits from banks Investment securities Loans/advances tocustomers Cash andcashequivalents 31st December2016 monitoring activities.Asummaryofthebank’s interest rategappositiononnontradingportfoliosisasfollows: The ALCOisthemonitoringbodyforcompliancewiththeselimitsandassistedbyRiskmanagementinitsdayto bands. Interest rateriskismanagedprincipallythrough monitoringinterest rategapsandbyhavingpre-approved limitsforrepricing interest raterisk. length oftimeforwhichtherateinterest isfixedonafinancialinstrumenttherefore indicatestowhatextentitisexposed Interest rateriskisthethatvalueofafinancialinstrumentwillfluctuateduetochangesinmarketinterest rates.The Interest raterisk Total GBP USD EURO currencies tothedetrimentofBankas 31December2015: Change inthepresent valueofassetsandliabilitiestheBankfollowingmovementsinexchangeratesselected 4,111,573 4,099,345 3,962,999 1,639,352 1,010,191 1,313,456 4,421,670 4,410,714 4,146,571 1,452,142 1,872,233 148,574 275,099 822,196 Carrying 12,228 10,956 investments. Equityinvestments are price risksarisingfrom equity The Bankisnotexposedtoequity non tradingportfolios Exposure toothermarketrisks- from thebank’s nontradingactivities. manage theoverallpositionarising banks anddepositsfrom banksto investment securities,advancesto Liabilities Management,whichuses positions are managedbyAssetsand Overall nontradinginterest raterisk amount D’000 1,564,648 3,421,075 3,416,915 1,856,427 1,313,456 1,842,432 3,978,485 3,967,529 2,136,053 1,452,142 Less than3 Present valueof 174,436 368,535 412,637 271,274 10,956 exchange rate months 4,160 D’000 59.50 37.50 42.00 3-6 months (651,901) (501,321) 393,267 393,267 894,588 842,305 176,063 176,063 827,964 765,165 52,283 62,799 D’000 Exchange rate in sensitivity - - - - scenario 62.48 39.38 44.10 1,194,158 (341,638) (904,995) 289,163 289,163 622,611 571,547 267,122 267,122 608,760 348,663 260,097 trade theseinvestments. purposes. TheBankdoesnotactively held forstrategicratherthantrading including theseparationoffunctions by applyingthestandard principle risks, operationalriskismanaged As inthecaseofothertypes systems, orfrom events. external processes,internal peopleand resulting from inadequateorfailed Operational riskistheofloss e. months 6 to12 D’000 Operational risk Bank’s position - - - - in respective (44,500) currency 48,074 (2,340) (635,602) 635,602 233,617 401,985 1-5 years (7,505) 7,505 7,505 D’000 ------in respective More than5 Bank’s loss 143,261 (10,181) (83,660) scenario 10,181 10,181 54,687 (9,667) (4,914) 9,667 9,667 D’000 D’000 years ------notes to the financial statement 31

translation reserve and other reserve translation to relating adjustments regulatory in equity included are items that for differently treated but are capital adequacy purposes. liabilities, qualifying subordinated the fair value and the elements of gains to unrealised relating reserve classified as on equity instruments available for sale. • Tier 2 capital, which includes applied to elements limits are Various tier of the capital base, qualifying tier 1 2 capital cannot exceed subordinated capital; and qualifying exceed 50 loan capital may not of tier one capital. Other percent capital include the deductions from carrying amounts of investments in not included subsidiaries that are consolidation, in the regulatory investments in the capital of banks items. and certain other regulatory determined Risk weighted assets are requirements to specified according the varying levels that seek to reflect of risk attached to assets and off balance sheet exposures. policy is to maintain The bank’s capital base so as to a strong and creditor maintain investor, market confidence and to sustain of the business. development future The impact of the level of capital is also return on shareholders’ and the bank recognizes recognised the need to maintain a balance that between the higher returns might be possible with greater gearing and the advantages and by a sound capital security afforded position. The bank has complied with all externally imposed capital the period. throughout requirements has been no material change There management of capital in the bank’s during the period. position capital regulatory bank’s The at 31 December was as follows: annual report 2016 annual report Proudly gambian Proudly Capital management Other risks ordinary share capital, share capital, share share ordinary earnings, retained premium, g. Regulatory capital The Central Bank of The Gambia sets and monitors capital for the bank as a requirements whole. capital In implementing current The Central Bank requirements, the bank of The Gambia requires ratio of to maintain a prescribed total capital to total risk weighted assets. The bank is also required capital plan to to maintain a credible that capital level of the bank ensure is maintained in consonance with risk appetite. the bank’s capital is regulatory The Bank’s analyzed into two tiers: • Tier 1 capital, which includes f. in terms of Simultaneously, of internalimplementation process determination, of capital adequacy develops the Bank monitors and management quantification and risks, in methods aimed at other particular: • Strategic risk; • Reputation risk; • Other risks factors. itself to Bank has prepared Trust subject to the requirements fulfill special capital adequacy with of local emphasis on the fulfillment as per legislative requirements the Banking Act 2009 and other of the Central Bank of the directives Gambia. The Bank is embarking on projects the most designed to ensure accurate assessment and proper market, and management of credit, operation risks. The achievement of this objective is based, among collection others, on the appropriate of all comprehensive and archiving data or potential comprehensive data, on the development of a methodology measurement reliable for individual types of risks, on and the maintenance of effective for the well-developed processes prudent management of individual types of risks, on the maintenance IT systems of quality and secure for the automation of processes, data collection, data analysis, calculations, and provisions. segregation of duties, including segregation the independent authorization of transactions. and monitoring of reconciliation transactions other legal requirements procedures assessment of operational risks faced, and the adequacy to and procedures of controls the risks identified address operational losses and proposed action remedial development this is effective. where • for the requirements • and compliance with regulatory • and documentation of controls • for the periodic requirements • of for the reporting requirements • development of contingency plans • training and professional • standards ethical and business • insurance risk mitigation, including Compliance with bank standards of is supported by a programme undertaken by periodic reviews of internalInternal Audit. The results discussed with the are audit reviews management of the business unit to with summaries which they relate, submitted to the Audit Committee and senior management of the bank. The Bank is also active in preparing Business Continuity plans. The plans aim at minimizing impacts of unexpected events on the Bank’s operation. The next objective of the Bank is to implement an advanced operational risk management model. in risk management and controlling. and controlling. in risk management puts the accent on The Bank and improvement quality process risk mitigation actions. operational of set The essential assumption risk goals is based on operational risk bank and operational awareness culture. the for The primary responsibility of development and implementation risk operational to address controls management is assigned to senior unit. This within each business by is supported responsibility bank the development of overall for the management standards of operational risk in the following areas: • for appropriate requirements ExcellenceProudly In The gambian Millennium Award 2016

Trust Bank Awards ten most outstanding students in The Gambia Basic Education Certificate Examination (GABECE) 2016.

As a very important part of our commitment to the promotion of quality education in The Gambia, Trust Bank Ltd held the 14th edition of its annual Excellence in The Millennium Awards on Thursday 16th March 2017 at the Kairaba Beach Hotel. The event is hosted every year to recognize the exceptional achievements of the ten most outstanding students in The Gambia Basic Education Certificate Examination (GABECE).

The ten awardees each received a Certificate of Excellence, prize sum of D5,000 in the form of a Trust Bank Student Account and a brand new Tablet. A Certificate of Excellence and a sum of D20, 000.00 was awarded to the school that produced the highest number of awardees. The student with the most outstanding results was also awarded an additional cash prize of D5,000.00 and D10,000.00 went to the school he attended.

Trust Bank Donates over D100,000 to Gambia National Olympics Committee (GNOC)

The Olympic Games are the world’s biggest sporting spectacle and it has grown so much that nearly every nation is now represented. It is in the light of this that The Gambia joins the rest of the world in the 31st Olympiad Games which took place in Rio from the 5th to 21st August 2016.

This is the first time The Gambia is been represented by ateam of four participants in the Olympic Games and it is a remarkable achievement by the Gambia National Olympics Committee.

As part of our contribution towards the promotion of sports in The Gambia, Trust Bank donated D100,000.00 (One Hundred Thousand Dalasis) to The Gambia National Olympics Committee (GNOC) at a colorful ceremony held at the bank’s boardroom on Monday 25th July 2016.

Trust Bank Donates over D100,000 to Tanka Tanka Psychiatric Hospital

The partnership between Trust Bank Ltd and Tanka Tanka Psychiatric Hospital was further strengthened on Wednesday 5th October 2016, when the Bank donated different items worth D100,000.00 to the Hospital.

The items include detergents, clothing, shaving machines, plumbing & electrical materials amongst others. The Managing Director of Trust Bank said that it was not surprising that Trust Bank values the symbiotic relationship with Tanka Tanka Psychiatric Hospital and continue to enhance it for the benefit of our beloved country.

As a Gambian bank, Trust Bank Ltd is committed to right a wrong that has put mental health care at the back of the queue for private sector funding in the Gambia. It is as a result of this that the bank on the 5th October 2016 donated D100,000 to the Tanka-Tanks Psychiatric Hospital32 annual inorder to help report inprove the lives 2016 of patients in this hospital. Winners Again

Trust Bank is pleased to inform the general public that it has been chosen as the winner of the Banker Magazine’s “Bank of the Year Award - Gambia 2016”.

The Banker Awards is a global event that recognizes banks that have made extraordinary performance that exemplify the highest standards in global banking.

This event is held annually in the United Kingdom as a way of rewarding and promoting excellence in the wide global banking industry.

Over 1,000 banks from 120 countries globally participate in this event and selection is based on which banks they believe have made the most progress over the past 12 months.

The Board of Directors and Management of Trust Bank Limited would like to convey a heartiest sense of appreciation to the entire staff for their enthusiastic hard work and would like to acknowledge that this would not have been possible without the loyalty and support of our esteemed customers. notes to the financial statement Proudly gambian 34 annual report 2016 Revaluation reserve Tier 2capital Total tier1capital Retained earnings Statutory reserves Ordinary share capital Tier 1capital Total tier2capital Investment atbank Risk weightedassets Total regulatory capital may beflexedto reflect differing risk such casesthecapitalrequirements associated withdifferent activities.In reflect fullythe varyingdegree ofrisk the regulatory requirements donot regulatory capital, butinsomecases activity isbasedprimarilyuponthe allocated toeachoperationor allocated. Theamountofcapital of thereturn achievedonthecapital a largeextent,drivenbyoptimization specific operationsandactivitiesis,to The allocationofcapitalbetween Capital allocation Total tier1capitalexpressed asapercentage ofriskweightedassets Total regulatory capitalexpressed asapercentage oftotalriskweightedassets Capital ratios Total riskweighedassets Retail bank,corporatebankandtreasury basis usedindetermininghow on riskadjustedcapitalistheprincipal Although maximizationofthereturn as appropriate. the bank’s credit committeeorALCO by bank,andissubjecttoreview by of thoseresponsible fortheoperation, activities isundertakenindependently capital tospecificoperationsand purposes. Theprocess ofallocating the minimumrequired forregulatory operation oractivitynotfallingbelow of capitaltosupportaparticular profiles, subject totheoveralllevel the Board ofDirectors. allocation are reviewed regularly by respect ofcapital managementand objectives. Thebank’s policiesin the bank’s longertermstrategic and thecapabilityofactivitywith management andotherresources, and activities,theavailabilityof of thesynergieswithotheroperations making. Considerationalsoismade not thesolebasisusedfordecision particular operationsoractivities,itis capital isallocatedwithinthebankto 1,054,375 2,024,917 216,053 200,000 970,542 511,967 608,474 96,507 95,914 96,507 D’000 2016 25% 30%

1,141,308 1,178,370 2,319,678 200,000 200,000 498,800 595,307 96,507 96,507 98,800 D’000 2015 22% 26% notes to the financial statement 35

D’000 10,956 12,228 822,196 101,370 101,370 Fair value 4,247,941 4,167,748 1,452,142 1,386,471 1,673,571 1,006,336 4,115,494 4,127,722 4,410,714 4,421,670 1,872,233 otal T D’000 amount carrying 10,956 12,228 822,196 101,370 101,370 4,247,941 3,967,049 1,452,142 1,386,471 1,472,872 1,006,336 4,115,494 4,127,722 4,410,714 4,421,670 1,872,233 ------cost D’000 Other 10,956 12,228 amortised 4,115,494 4,127,722 4,410,714 4,421,670 ------annual report 2016 annual report Proudly gambian Proudly D’000 for sale vailable Through effective risk management, Non effective Through performing loans continue to be managed within acceptable levels. NPL ratio has stable at 4%. remained A substantial portion of the Bank’s assets A substantial portion of the Bank’s funded by customer deposits widely are Lending diversified by type and maturity. is fully funded by Deposits, usually in the and a loan to deposit ratio same currency than 50% is maintained. The of not more Bank also maintains significant levels Bills with widely diversified of Treasury a large maturity periods. These provide pool of primary assets to meet cash liquidity ratio has, on outflows. The Bank’s 72%. around average, remained Commentary on current status Commentary on current A 101,370 101,370 1,872,233 1,472,872 1,574,242 1,973,603 ------D’000 822,196 822,196 Loans and receivables receivables 1,006,336 1,006,336 ------D’000 Held to Maturity ------Credit policies incorporate Credit prudent lending guidelines, on risk control oversight board appetite The ALCO committee emphasizes the maximization of customer and preservation deposits and other funding ALCO monitors sources. deposit rates, levels, trends and significant changes. Liquidity is managed on a short to medium term basis ensuring that cash flow demands can be met as and when required. Key Mitigating actions D’000 rading T ------value at fair D’000 Designated 1,386,471 1,452,142 1,452,142 1,386,471 As a provider of credit of credit As a provider facilities to customers, any adverse changes in the economy or market in which the Group operates, or the credit quality and behavior would of borrowers the value of the reduce assets and Group’s the allowances increase for impairment losses, impacting thereby profitability. The primary objective of liquidity risk management a planning is to provide mechanism for unanticipated changes in the demand or needs for liquidity created by customer behavior or abnormal market conditions. Narration Financial assets and liabilities Financial Risk Overview 31st December 2015 Cash and cash equivalents Deposits from customers Deposits from Trading liabilities Trading banks Deposits from Investment in securities Principal Risks Risk Credit i. Trading liabilities Trading banks Deposits from customers Deposits from Loans and advances Investment in securities Trading assets Trading Liquidity Risk Trading assets Trading Loans and advances 31st December 2016 Cash and cash equivalents ccounting classifications and fair values classifications and Accounting fair value (excluding and liabilities, and their of financial assets of each class classification sets out the Bank’s The table below accrued interest). h. notes to the financial statement Proudly gambian 36 annual report 2016 Management Capital Risk and Regulatory Compliance Risk Operational Market Risk Principal Risks Narration Business. future developmentofthe confidence andsustain investor andmarket base soastomaintain maintain astrong capital The Group’s policyisto regulatory requirements. of noncompliancewith This includestheRisk significant. IT systemsisthemost and securityofthecore The availability, resilience in customerprocesses. fraud lossesandfailings operational risksincluding a numberofkey The Group faces transactions. from customerdriven risk arisesprincipally exposure tomarket risks. TheBank’s and foreign exchange including interest raterisk number ofmarketrisks The Group facesa Key Mitigatingactions minimum of10%. sheet assetsabovearequired risk weightedoff-balance to riskweightedassetsplus ratio oftotalregulatory capital D200 Millionandmaintaina minimum regulatory capitalof requires allbankstoholda basis. TheCentralBank Central Bankonamonthly information isfiledwiththe management. Therequired are monitored dailyby use ofregulatory capital Capital Adequacyandthe processes. Softwares forimproved KYC and FIRCODueDeligence invested inFIRCOSOFT procedures. TheBankhas Compliance policiesand appropriate framework of and maintainingthe responsible for establishing Department. Theyare the Group’s Compliance This riskismanagedby platforms and secure allit’s majorIT Bank continuestoupgrade risk management.The oversight withindependent to balancestrong corporate overall frameworkdesigned and ismanagedthrough an the Group’s businessactivities Operational Riskisinherent in are met. ensure thatallregulatory ratios are supervisedbyALCOto Corporate unitsbothofwhich by theBank’s Retailand MarketRiskismanaged Commentary oncurrent status maintained atabove20%. year andthecapitaladequacyratiowas Share CapitalwasD200M throughout the capital requirements throughout theperiod. The Bankcompliedwiththestatutory regulatory requirements. The Bankgenerallycompliedwith during theyear. as aresult processes offailedinternal from anystaff related fraudulentactivities are ongoing.The Bankhasnotsuffered related tothis fraudwhilstrecovery efforts taken inthebooksagainstpotentiallosses platform. Aprovision ofD24Mhasbeen of itsNostro Accountsthrough theSWIFT first timebyacyberattack/fraudonone year underreview thebankwashitfor understood tobeovercome. Duringthe new risksandchallengesthatneedtobe innovation andproductivity, italsopresents opportunity andwhiletechnologycandrive increasingly interconnected worldofdigital attacks. However, asweoperateinan readily availableandsecure from cyber The Bank’s core bankingsystemisrobust, liabilities. appropriate matchbetweenassetsand over interest rategapsbyensuring committee hasalsomaintainedoversight movements inFXrates.TheALCO of ±10%toguard againstadverse maintained anFXexposure position The Bankhasthroughout theyear notes to the financial statement 37

(691) D’000 D’000 D’000 D’000 7,192 9,366 (1,577) (2,268) (1,208) 35,168 13,847 49,822 75,686 75,686 106,029 103,761 346,486 555,173 202,425 343,382 (207,479) (208,687) 31-Dec-15 31-Dec-15 31-Dec-15 31-Dec-15 The Bank The Bank The Bank The Bank (342) (769) D’000 D’000 D’000 D’000 9,013 2,165 30,568 16,827 30,729 87,137 84,225 (2,570) (2,912) 32,198 32,198 337,203 537,098 199,356 335,577 (199,126) (199,895) 31-Dec-16 31-Dec-16 31-Dec-16 31-Dec-16 annual report 2016 annual report Proudly gambian Proudly (691) D’000 D’000 D’000 D’000 7,192 9,366 (1,595) (2,286) (1,208) 34,696 13,909 57,150 208,524 348,126 100,392 110,661 112,947 358,095 566,016 100,392 (206,713) (207,921) 31-Dec-15 31-Dec-15 31-Dec-15 31-Dec-15 The Group The Group The Group The Group (342) (769) D’000 D’000 D’000 D’000 9,013 2,165 30,568 16,827 36,515 (2,599) (2,941) 59,303 89,982 92,923 59,303 204,084 338,507 345,546 544,756 (198,441) (199,210) 31-Dec-16 31-Dec-16 31-Dec-16 31-Dec-16 Net trading income Net fee and commission income Interest income and expense income and Interest Interbank placements is a total of D12.2M (2015: income for the year ended 31 December 2016 Included within various captions under interest financial assets. D12.20M) accrued on impaired to financial assets or liabilities carried at above that relate reported income and expense no component of interest is There or loss. profit fair value through Net interest income Net interest Deposits from customers Deposits from Total interest expense interest Total Interest and similar expenses for the year ended consist of: and similar expenses Interest 7. Banking customer fees Investment securities income interest Total fees related Credit Fees and commission expense Interbank transaction fees fees related currency Foreign fees and commission expense Total Net fees and commission income Cash and cash equivalents Loans and advances to customers Loans and advances fees and commissions related currency Foreign Commission on trade finance transactions fees and commission income Total Foreign exchange Foreign Fees and commission income as follows: Fees and commission income can be summarised 6. Net trading income 5. of: year ended consist similar income for the and other Interest notes to the financial statement Proudly gambian 38 annual report 2016 staff medicalexpenses Contributions todefinedcontributionplans Salaries andallowances Personnel costscanbesummarizedasfollows: 9. Total personnelcosts Increase/(decrease) inliabilityforleavearrears Directors fees Other staff costs to paycontributionstheSocial regulations, an employerisobliged Pursuant toTheGambianlegal (2015: 347and39respectively). and seniormanagementoftheBank which 40employeesare directors at 31December2016was351of The totalnumberofemployeesas Total otherincome Dividends received onequityinvestments Rental income Profit onsaleoffixedassets Sundry Income Other incomecanbesummarizedasfollows: 8. Personnel costs Other operatingincome supplementary pensionplan The Bankcontributestoa was entitledtosalary. the periodinwhichemployee charged totheincomestatementin of basicsalary. Theseexpensesare Corporation basedonapercentage Security andHousingFinance 31-Dec-16 31-Dec-16 167,410 106,848 21,588 12,732 38,431 15,646 -1,224 3,901 7,305 3,318 1,492 D’000 D’000 549 The Group The Group 31-Dec-15 31-Dec-15 164,718 101,726 17,853 33,854 7,146 3,718 7,117 3,626 1,898 1,127 D’000 D’000 542 403 31 December2016(2015:D5.8M). expenses amountedtoD5.3Masof Supplementary pensioncontribution pensions toemployeesinthefuture. the Bankfrom thepayment of employee. Noliabilitiesariseto on theemploymentperiodof administered internally, based 31-Dec-16 31-Dec-16 160,484 101,075 37,976 22,601 12,369 38,249 13,334 -1,224 7,002 3,013 1,492 D’000 D’000 549 The Bank The Bank 31-Dec-15 31-Dec-15 158,575 96,561 17,525 33,634 31,666 28,368 7,004 3,309 1,917 D’000 D’000 542 978 403 notes to the financial statement 39

0 0 50 629 164 566 800 519 D’000 3,830 1,697 7,888 5,006 9,512 2,132 5,455 4,485 5,139 8,551 6,881 1,355 9,801 18,503 55,726 12,425 161,114 31-Dec-15 The Bank 4 50 31 747K out if which 151 529 554 340 D’000 4,059 1,994 8,156 4,706 9,066 2,117 6,131 9,781 3,888 6,700 2,330 5,560 6,778 18,983 55,862 24,797 11,319 183,886 31-Dec-16 0 0 80 annual report 2016 annual report 171 566 836 519 Proudly gambian Proudly D’000 3,959 2,220 8,395 5,340 3,132 5,838 4,630 5,399 1,165 7,066 1,470 18,863 56,409 10,114 12,579 11,035 10,260 170,046 31-Dec-15 The Group 80 89 17 153 529 904 437 D’000 4,096 2,428 8,675 5,389 9,388 3,161 6,612 9,824 3,976 7,035 2,330 8,506 6,952 20,393 55,942 25,663 11,700 194,279 31-Dec-16 516K is still being pursued. The balance outstanding has been fully provided as 516K is still being pursued. The balance outstanding has been fully provided General and administration expenses and administration General During the year under review, the Bank was hit by a cyber attack on its SWIFT platform to the tune of € the Bank was hit by a cyber attack on its SWIFT platform to the During the year under review, whilst the € €230K has been fully recovered as income in subsequent years. will be recognised Any susbsequent recoveries shown above under losses and charge-offs. Travel cost Travel general and admin expenses Total Trade license Trade National education levy Other office expenses Postage and DHL Rent and rates Repairs and maintenance property/equipment Security maintenance and Hardware Software training Staff Telephone/Telex/Swift CBG Penalties Motor vehicle expenses Printing and stationery Stock exchange expenses Subscriptions and donations Advert/publicity Audit fees fees Legal and professional Losses and charge offs Consultancy fees Insurance premium Entertainment expenses Electricity and water 10. as follows: can be summarized administration expenses General and notes to the financial statement Proudly gambian 40 annual report 2016 11. Tax liability/(asset)atthe end oftheyear Charged toincome(noncurrent tangibleassets) Opening balance Deferred taxassetsandliabilitiesasof31December2016 2015relate tothefollowingitems: Tax (asset)/liabilityatthe endoftheyear Tax paidduringtheyear Current taxexpense Adjustment Balance atthebeginningofyear Income tax(asset)/liability Total incometaxexpenseinstatement Over provided inprior year Capital Allowances Non deductibleexpenses Domestic taxrate Reconciliation ofeffective taxrate Total incometaxexpenseinstatement Over provided inprior year Capital Allowances Non deductibleexpenses Income taxusingenactedcorporationrate Profit before incometax Reconciliation ofeffective taxrate appropriate authorities.In2016thecorporateincometaxrateamountedto30%(2015:31%). Legal entitiesintheGambiamustindividuallyreport taxableincomeandremit corporateincometaxesthereon tothe Total incometax Origination/reversal oftemporarydifferences Deferred taxexpense Overprovision inprioryear Current taxexpense Income taxexpense Income taxes 31-Dec-16 31-Dec-16 31-Dec-16 31-Dec-16 121,590 (20,709) (27,566) (20,429) (20,709) 13,583 36,361 32,388 15,124 37,693 15,652 36,361 36,361 (7,126) (5,961) 2,806 (16.80) 25.65 D’000 D’000 D’000 D’000 12.44 (28) 30 The Group The Group The Group The Group - - - 31-Dec-15 31-Dec-15 31-Dec-15 31-Dec-15 183,921 (23,707) (63,469) (24,173) (23,707) 13,583 37,290 53,128 50,708 17,866 57,016 29,421 53,128 55,195 (5,961) (2,067) (13.14) 4,443 27.58 D’000 D’000 D’000 D’000 9.71 (63) 31 - - % 31-Dec-16 31-Dec-16 31-Dec-16 31-Dec-16 (20,709) (21,294) (20,429) (20,709) 115,725 13,583 29,412 29,412 15,124 34,718 29,412 (7,126) (6,537) 29,412 (17.65) 1,581 8,703 25.42 13.07 D’000 D’000 D’000 D’000 30 - - The Bank The Bank The Bank The Bank - - 31-Dec-15 31-Dec-15 31-Dec-15 31-Dec-15 173,817 (23,707) (54,502) (24,077) (23,707) 13,583 37,290 45,463 45,463 17,766 53,883 -2,109 21,756 45,463 47,572 (6,537) (2,109) (13.85) 2,502 26.16 10.22 (1.21) D’000 D’000 D’000 D’000 31 % - notes to the financial statement 41

0.76 0.76 D’000 D’000 D’000 D’000 (1,363) 10,000 200,000 135,000 152,061 586,767 654,704 152,061 200,000 31-Dec-15 31-Dec-15 31-Dec-15 31-Dec-15 1,472,872 1,474,235 1,386,471 The Bank The Bank The Bank The Bank - 0.54 0.54 D’000 D’000 D’000 D’000 24,909 200,000 142,427 107,022 576,650 107,022 200,000 733,065 31-Dec-16 31-Dec-16 31-Dec-16 31-Dec-16 1,872,233 1,847,324 1,452,142 annual report 2016 annual report Proudly gambian Proudly 0.77 1.74 D’000 D’000 D’000 D’000 (1,363) 10,000 200,000 136,000 347,513 589,321 154,500 200,000 654,704 31-Dec-15 31-Dec-15 31-Dec-15 31-Dec-15 1,490,116 1,488,753 1,390,025 - The Group The Group The Group The Group 0.53 0.53 D’000 D’000 D’000 D’000 24,909 733,065 142,427 105,938 582,450 200,000 105,938 200,000 31-Dec-16 31-Dec-16 31-Dec-16 31-Dec-16 1,862,988 1,887,897 1,457,942 Trading assets Trading Cash and cash equivalents Earnings per share Earnings per ordinary share (dalasis) share Earnings per ordinary Money market placements Less portfolio allowances for impairment trading assets Total Weighted average no. of ord. shares (diluted) shares average no. of ord. Weighted balances with the Central Bank Unrestricted bills with maturity periods of < 3 months Treasury of the Central Bank bearing deposit under the regulations is maintained as a non interest The minimum obligatory reserve ability to depends on the level of deposits accepted by the Bank. The Bank’s of The Gambia. The amount of the reserve The prevailing by statutory legislation but will be subject to the payment of a penalty. is not restricted withdraw the reserve rate as at 31st December 2016 is 15% of avearage deposits. Cash Reserve Requirement Treasury Bills Treasury 15. Diluted earnings per share attributable to ordinary was based on the profit at 31 December 2016 earningsThe calculation of diluted per share of all dilutive adjustment for the effects outstanding after shares average number of ordinary and a weighted shareholders as shown below: shares potential ordinary cash and cash equivalents Total Cash and balances with banks 14. 13. Dividend per share the year ended 31 December 2016 of respect of in May 2017, a final dividend in At the Annual General Meeting to be held for every ordinary An interim dividend of D0.10 (2015: D0.20) will be proposed. share D0.30 (2015: D0.40) for every ordinary (2015: D0.60). This will bring the total dividend for the year to D0.40 and paid during the year. declared was share tax at the rate of 15%. Payment of dividends is subject to withholding Profit attributable to ord. shareholders (diluted) shareholders attributable to ord. Profit Weighted average number of ordinary shares of ordinary average number Weighted (dalasis) share Earnings per ordinary Profit attributable to ordinary shareholders attributable to ordinary Profit 12. to ordinary attributable on the profit 2016 was based at 31 December of basic earningsThe calculation per share as shown below: outstanding shares number of ordinary a weighted average and shareholders notes to the financial statement Proudly gambian 42 annual report 2016 16. Total impairmentcharge Portfolio allowancefortreasury billinvestments Balance attheendofyear Charge fortheyear Impairment lossfortheyear Balance atthebeginningofyear The movementincollectiveallowancesforimpairmentisasfollows: Balance attheendofyear Write offs Recoveries Charge fortheyear Impairment lossfortheyear Balance atthebeginningofyear The movementinindividualallowancesforimpairmentisasfollows: Allowance forimpairment Total loansandadvances Retail Clients Corporate Clients An analysisofloansbycustomergroup isasfollows: Total loansandadvances Collective allowanceforimpairment Individual allowanceforimpairment Less: Total loansandadvancesatamortisedcost bonds Government Overdrafts Loans An analysisofloansandadvancestocustomersisasfollows: Loans andadvancestocustomersatamortisedcost 31-Dec-16 31-Dec-16 31-Dec-16 31-Dec-16 869,969 847,878 869,969 (47,732) (24,996) (21,214) (16,789) 279,082 590,887 256,874 276,763 336,332 16,789 12,012 29,126 (1,522) (3,135) (5,302) 5,302 6,824 D’000 D’000 D’000 D’000 The Group The Group The Group The Group 1,075,071 1,037,104 1,075,071 31-Dec-15 31-Dec-15 31-Dec-15 31-Dec-15 287,210 210,009 865,062 282,462 505,399 (31,143) 31,143 16,610 25,301 (6,295) (6,824) (3,001) (4,473) 1,363 6,824 6,715 D’000 D’000 D’000 D’000 109 31-Dec-16 31-Dec-16 31-Dec-16 31-Dec-16 (47,895) (24,996) (21,377) (16,626) 844,124 822,196 844,124 253,237 590,887 256,874 276,763 310,487 12,012 29,126 (1,522) (3,135) (5,302) 16,626 5,302 6,824 D’000 D’000 D’000 D’000 The Bank The Bank The Bank The Bank 1,042,286 1,006,336 1,042,286 31-Dec-15 31-Dec-15 31-Dec-15 31-Dec-15 287,210 177,224 865,062 282,462 472,614 (29,126) 16,610 25,301 29,126 (6,295) (6,824) (5,018) (6,490) 1,363 6,824 6,715 D’000 D’000 D’000 D’000 109 notes to the financial statement 43

- - otal 286 T D’000 D’000 D’000 9,681 6,177 8,500 (7,293) 5,440 6,060 57,251 32,364 48,645 12,058 20,558 (10,228) (45,811) (54,684) 80,812 20,667 648,048 131,547 160,649 930,016 979,974 690,884 692,621 (235,366) 31-Dec-15 (239,132) (287,353) The Group 31-Dec-15 - - otal 286 T The Bank The Bank D’000 6,032 (7,054) 56,525 32,364 11,304 (11,819) (44,607) (53,306) 642,439 129,865 160,649 921,134 970,605 685,743 688,226 (234,452) The Bank D’000 (235,391) (282,379) 8,500 D’000 5,440 6,060 12,058 20,558 80,812 20,667 48,645 31-Dec-16 - - - - 31-Dec-16 D’000 Motor 8,751 (9,087) (5,694) 8,640 4,772 43,512 51,724 54,781 23,997 17,299 vehicles 19,468 (24,662) (11,705) (12,358) (27,727) (35,313) - - - annual report 2016 annual report Proudly gambian Proudly D’000 - - D’000 5,440 6,060 48,645 80,812 20,667 700 223 31-Dec-15 D’000 31-Dec-15 2,458 1,132 (2,458) (1,190) 11,875 16,611 20,148 55,410 67,487 (20,752) (24,847) 208,624 218,741 254,310 (145,037) (163,331) (186,823) equipment Machines & - - - The Group - - - The Group 93 28 (28) 206 D’000 (274) D’000 D’000 3,931 5,371 5,440 6,060 (5,044) (7,282) Fittings 43,484 47,234 66,330 13,215 13,753 25,057 80,812 20,667 48,645 (29,181) (34,019) (41,273) 31-Dec-16 31-Dec-16 Furniture & Furniture - - 63 375 100 (142) D’000 2,550 (7,106) (8,819) 5% 13,126 86,620 32,364 60% (35,572) 288,130 462,280 551,308 451,966 25% 10% (10,314) (18,970) buildings Land and 160,649 532,338 100% shares shares 12.97% ------% of ordinary % of ordinary D’000 58,689 96,385 23,242 43,876 Work in Work 43,876 (13,919) 141,155 141,155 Progress (120,521) Property, plant and equipment and plant Property, Investment in subsidiaries Investment equity securities Investment in other As at 31 December of the listed investments and the directors at fair value as they do not represent not recorded These equity investments were basis for determining their fair values. no alternative reliable are bank have concluded that there Enterprise Life Assurance Company Women’s World Banking Ghana Ltd World Women’s Gamswitch Company Ltd Cost At 01-Jan-15 19. The Bank and The Group International Bank of Liberia Ltd 18. Bayba Financial Services Limited Bayba Financial Services 17. As at 31 December Home Finance Company Gambia Ltd Home Finance Company Additions Transfers Revaluation Disposal At 31-Dec-15 Additions Disposal/write offs Transfers At 31-Dec-16 Depreciation At 01-Jan-15 Depreciation expense Depreciation Revaluation Disposals At 31-Dec-15 Depreciation expense Depreciation Adjustments Disposal/write offs At 31-Dec-16 Carrying amount At 31-Dec-15 At 31-Dec-16 notes to the financial statement Proudly gambian 44 annual report 2016 The Group andTheBank Movements duringtheyear Net tax(assets)/liabilities Property, plant,equipmentandsoftware 2015 Movements duringtheyear Property, plant,equipmentandsoftware 2016 Property, plant,equipmentandsoftware Deferred taxassets and liabilitiesare attributabletothefollowing: 21. Intangible assetsrepresent licencesforcomputersoftware. At 31-Dec-16 At 31-Dec-15 Carrying amount At 31-Dec-16 Amortisation expense At 31-Dec-15 Amortisation expense At 01-Jan-15 Accumulated amortisation At 31-Dec-16 Additions At 31-Dec-15 Additions At 01-Jan-15 20. shown abovewastransferred toarevaluation reserve accountasshowninthestatementoffinancialposition. an openmarketbasis.Theresulting surplusofD193MillionwhichiscomprisedtheadjustmentsD160.6MandD32.3M A professional valuer, FrancisThomasJonesAssociates,in2015revalued thebank’s freehold andleaseholdproperties on Recognised deferred taxassetsandliabilities Intangible assets 31-Dec-16 Opening Opening (8,135) (8,135) 37,290 37,290 13,583 13,583 D’000 D’000 D’000 The Group Recognised Recognised 31-Dec-15 (147,710) (121,614) (23,707) (21,718) (21,718) 236,312 204,265 192,133 (23,707) (26,096) (24,504) (97,110) 13,583 88,602 32,047 12,132 13,583 82,651 in P/L D’000 in P/L D’000 D’000 D’000

Recognised Recognised 31-Dec-16 (147,710) (121,614) The Bank 236,312 204,265 192,133 in equity in equity (26,096) (24,504) (97,110) (8,135) (8,135) 88,602 82,651 32,047 12,132 D’000 D’000 D’000 D’000 Total - - - - The Bank

The Group 31-Dec-15 (148,147) (121,959) 236,924 204,877 192,745 (26,188) (24,596) (97,363) Closing Closing (8,135) (8,135) 13,583 13,583 13,583 13,583 88,777 82,918 32,047 12,132 D’000 D’000 D’000 D’000 Total notes to the financial statement 45

- 23 313 D’000 D’000 D’000 D’000 D’000 6,723 4,746 2,660 4,815 9,569 12,228 76,834 19,519 10,357 43,813 57,159 27,075 13,040 12,228 200,000 200,000 642,876 162,328 31-Dec-15 31-Dec-15 31-Dec-15 31-Dec-15 31-Dec-15 2,379,327 4,115,494 1,093,291 The Bank The Bank The Bank The Bank The Bank - - D’000 D’000 D’000 D’000 D’000 8,415 2,840 1,695 8,201 2,259 1,175 88,480 21,184 15,548 38,015 73,178 35,150 10,956 10,956 26,393 200,000 200,000 560,676 176,177 31-Dec-16 31-Dec-16 31-Dec-16 31-Dec-16 31-Dec-16 2,594,485 1,255,553 4,410,714 - 23 annual report 2016 annual report 313 Proudly gambian Proudly D’000 D’000 D’000 D’000 D’000 6,723 2,660 9,569 76,834 19,544 10,569 43,813 11,094 11,458 74,206 37,479 13,040 12,228 12,228 200,000 633,515 200,000 168,913 31-Dec-15 31-Dec-15 31-Dec-15 31-Dec-15 31-Dec-15 2,375,021 1,088,191 4,096,727 - - The Group The Group The Group The Group The Group D’000 D’000 D’000 D’000 D’000 8,415 2,840 8,458 8,397 8,201 2,259 88,480 21,184 15,548 38,015 91,787 46,537 26,393 10,956 10,956 200,000 557,418 200,000 182,940 31-Dec-16 31-Dec-16 31-Dec-16 31-Dec-16 31-Dec-16 2,594,442 1,238,509 4,390,369 Statement of changes in equity Other liabilities Deposits from customers Deposits from Deposits from Banks Deposits from Other assets hare Capital Share Total deposits from customers deposits from Total Bank does not hold deposits to be settled after 12 months. The all current. The amounts shown as deposits above are of D1 each). shares value of D1 each (2015: 200M ordinary with a fair shares capital consists of 200 Million ordinary Share is included in the “General Information” section. of shareholders The structure Savings accounts of options Exercise On issue at 31 December Current accounts Current and accruals Other creditors Other liabilities On issue at 1 January 26. Suspense creditors/Payables for losses Provision Bonus for Staff Provision Dividends Payable 25. Time deposits 24. as follows: are group customers by product Deposits from Money market deposits 23. banks deposits from Total Bills discounted 22. Prepayments Western Union clearing Stationery Stock Bonds Receivable on NAWEC Interest Assets on Order Share Deal Account/Unpaid shares Deal Account/Unpaid Share Others notes to the financial statement Proudly gambian 46 annual report 2016 otherdocumentarycredits Letters ofcredit, acceptancesand Bonds andguarantees These facilitiesare offset bycorresponding obligationsofthird parties.Attheyearend,contingencieswere asfollows: n theordinary courseofbusiness,thebankconductsbusinessinvolvingguarantees, acceptancesandperformancebonds. 27. D0.30 perordinary share (2015:D0.40) consequences. respect of2016. Thedividendshavenotbeenprovided forandthere are noincometax After 31December2016,thefollowingdividendswere proposed bythedirectors in D0.10 perordinary share (2015:D0.20) The followingdividendswere declared andpaidbytheGroup forthe yearended31December: Dividends Provisions as per IAS39 Provisions as per PrudentialGuidelines Reconciliation betweenIAS39andthePrudentialGuidelines TherighttoattendtheGeneral • Therighttoshare intheCompany’s • Bank’s Articles,namely: shareholder rightsresulting from the shareholder enjoysitsfundamental the Company’s shareholder. Each Each holderoftheequityshare is Description ofrights: motions attheGeneralMeeting; of theGeneralMeeting,make entities andrelated totheagenda thecontrolledissues concerning the Company’s issuesand/or thereon andexplanationsregarding Meeting, askforinformation Meeting, voteattheGeneral of allshareholders; their shares tothetotalfacevalue proportion oftotalfacevalue profit (dividend),basedonthe Off-balance sheetcontingenciesandcommitments shares are non-publiclytraded. the securitiesmarket,whilepreferred Equity shares are publiclytradedon preferred shares holders. per preferred share willbepaidtothe shares, aminimumdividendofD1 to thenumberofissuedpreferred generates minimumnetprofit equal dividends, i.e.iftheCompany a preferential rightapplicableto Preferred shares are assigned assigns votingpowertosuchshares. except forcaseswhichthelaw right ofvotingataGeneralMeeting, shares are notequippedwiththe difference isthatthepreferred enjoys similarrights;theonly Each holderofpreferred shares Therighttoshare intheliquidation • balance. 31-Dec-16 31-Dec-16 225,219 (21,928) 149,912 26,269 75,307 4,341 D’000 D’000 The Group The Group 31-Dec-15 31-Dec-15 190,077 133,922 (35,950) 10,486 46,436 56,155 D’000 D’000 with IAS39. advances arrivedatinaccordance over theimpairmentofloansand of TheGambiaprudentialguidelines in accordance withtheCentralBank excess ofloanprovisions computed not distributableandrepresents the allowances onimpairment.Thisis Bank ofTheGambiaguidelinesfor amount required tomeettheCentral Credit riskreserve represents the Credit riskreserve Guideline 3. Section 19oftheBankingAct2009, annual profits inaccordance with as anon-distributablereserve from This represents amountssetaside Statutory reserves 31-Dec-16 31-Dec-16 225,219 (21,928) 149,912 26,269 75,307 60,000 60,000 20,000 20,000 4,341 D’000 D’000 D’000 D’000 2016 2016 The Bank The Bank

31-Dec-15 31-Dec-15 273,976 272,579 (35,950) 10,486 46,436 80,000 80,000 40,000 40,000 1,397 D’000 D’000 D’000 D’000 2015 2015

notes to the financial statement 47

60% 2015 (377) 100% D’000 D’000 1,519 5,692 15,786 33,355 interest 34,926 28,629 22,698 (25,974) (17,972) 31-Dec-15 31-Dec-15 Ownership The Bank The Bank 60% 2016 100% D’000 D’000 7,296 5,979 3,080 31,877 (8,990) (8,559) 15,786 33,355 17,685 (19,163) 31-Dec-16 31-Dec-16 Country of incorporation Other contingencies amounted to Nil (2015: D0.019 Million). Included in deposits as at 31st December is D20.3Million (2015: D18.7Million) due to our subsidiary paid on these companies. Interest deposits during the year amounted to D0.685 Million (2015: D0.766 Million). annual report 2016 annual report 28. of business, the course In the ordinary and to legal actions Bank is subject legal advice, the complaints. Based on ultimate do not expect the Directors actions such arising from if any, liability, a material effect or complaints to have results or the on the financial situation Bank. operations of the of the future Proudly gambian Proudly (377) D’000 D’000 1,519 5,692 15,786 34,926 27,888 16,883 28,341 (25,974) (16,430) 31-Dec-15 31-Dec-15 The Gambia The Gambia The Group The Group D’000 D’000 7,296 5,979 3,080 (8,990) (8,559) 15,786 29,996 18,735 28,657 (20,074) 31-Dec-16 31-Dec-16 Impairment losses of Nil have against balances been recorded (2015: Nil). Directors outstanding from Included within loans and advances as at 31st December 2016 is Nil our subsidiaries. (2015: Nil) due from on and charges received Interest advances granted during the year Letters of credit commit the bank commit credit Letters of parties, to third to make payments of documents, which on production by reimbursed subsequently are customers. undertaking by a An acceptance is an exchange drawn bank to pay a bill of expects The bank on a customer. be presented most acceptances to customer is by the and reimbursement almost immediate. Related parties Significant subsidiaries ransactions with key management personnel Loans and advances to employees Net amount at 31 December For Directors and companies in which For Directors rates they have equity in, interest charged on balances outstanding the same as that which would be are length transaction. charged in an arm’s has been suspended interest However, for non performing accounts amounting to Nil (2015: Nil). Cash received balances Net movement in overdraft Loan disbursed Balance at 1 January Home Finance Company Limited charged Interest Loans advanced during the year received Loan repayments Balance at 31 December Gross amount at 1 January Gross T the period as follows: have transacted with the bank during relatives Key management personnel and their immediate 30. Bayba Financial Services Limited Bayba Financial Services Ltd and Home Finance Company Ltd operate accounts with the bank. Interest accrues on these Finance Company Ltd operate accounts with the bank. Interest Bayba Financial Services Ltd and Home rates. at normal commercial accounts and placements are of the purchase the value of the identifiable net assets exceeding the value from resulted Gain on bargain purchase Company Ltd. consideration of our subsidiary Home Finance 29. Derivatives/Commitments does not engage in any The bank to financial instruments derivative for any purpose. exposures hedge risk of contingent liabilities Nature generally written Guarantees are performance by a bank to support The parties. by a customer to third to meet bank will only be required event of the these obligations in the default. customer’s notes to the financial statement Proudly gambian 48 annual report 2016 Equityinstrumentsare measured • Allother debtinstrumentsare • Allfinancialassetsare measured at • financial assets Classification andmeasurement of Key requirements: with earlyadoptionpermitted. beginning onorafter1January2018 is mandatorilyeffective forperiods supersedes allprevious versionsand The versionofIFRS9issuedin2014 IFRS 9Financialinstruments but notyeteffective Standard issued 33. The Bankhasnoeventsafterthefinancialpositiondatewhichwouldmateriallyimpactonitsor results. 32. Nil) relating toCashReserveRequirement violations. There were penaltychargesimposed bytheCentralBankandotherRegulatorybodiesduringyearofD2.331M(2015: 31. Penalties Senior Managementpensioncontributions Senior Managementsalaries Directors sittingfees Directors board fees Key managementpersonnelcompensationfortheperiodcomprised: Impairment lossesofD0.242Millionhavebeenrecorded againstbalancesoutstandingfrom Staff (2015:D0.336Million) would bechargedinanarm’s lengthtransaction. For SeniorManagementandallotherstaff, interest rateschargedonbalancesoutstandingare aquarteroftheratesthat comprehensive income(OCI)or at fairvaluethrough eitherother value. subsequently measured atfair ii) Thecontractualtermsofthe (i) Theassetisheldwithina invoked, and: the fairvalueoption(FVO)isnot measured atamortised cost,if instruments maybesubsequently fair valueoninitialrecognition. Debt principal outstanding. principal andinterest onthe that are solelypaymentsof specified dates,tocashflows financial assetgiverise,on collect thecontractualcashflows. objective toholdtheassets business modelthathasthe that are notyeteffective New standards, interpretations andamendmentstoexistingstandards Events afterstatementoffinancialpositiondate A riskcomponentofafinancial or Hedge effectiveness testingmust Hedge accounting Allother IAS39classificationand • ForFVOliabilities,theamountof • financial liabilities of Classification andmeasurement complexity ofthehedge be qualitative,dependingonthe be doneprospectively andcan FVO. rules andthecriteriaforusing embedded derivativeseparation forward intoIFRS9,includingthe financial liabilitieshavebeencarried measurement requirements for mismatch inprofit orloss. create orenlargeanaccounting liability’s credit riskinOCIwould fair valuechangeinrespect ofthe or loss,unlesspresentation ofthe in fairvalueispresented inprofit OCI. Theremainder of thechange credit riskmust bepresented in that isattributabletochangesin change inthefairvalueofaliability value through profit orloss. for tradingmustbemeasured atfair However, equityinstrumentsheld or profit orlossbyinstrument. trading instrumentseitherinOCI changes inthefairvalueofnon irrevocable choice torecognise profit orloss. Entitieshavean 31-Dec-16 14,069 1,993 9,063 2,330 D’000 683 The Group 31-Dec-15 13,789 1,928 8,763 2,606 D’000 492 IFRS 15specifieshowandwhen an Key requirements beginning onorafter1January 2018. applies toanannualreporting period IFRS 15wasissuedinMay2014 and with customers IFRS 15Revenuefrom contracts this transitionwillbenecessary. be considered. Careful planningfor of benefitsandchallengesthatshould early application,there are anumber processes. Forentitiesconsidering current accounting,systemsand significant changestoanentity’s version ofIFRS9willlikelyresult in The applicationofthecompleted Impact entity’s owncredit risk. or lossthatare attributable tothe designated atfairvaluethrough profit non-derivative financialliabilities the changesinfairvalueof require anentitytopresent inOCI the sametime.Theseprovisions requirements ofIFRS9(2014)at risk withoutapplyingtheother gains andlossesfrom own credit the accountingrequirements for Entities mayelecttoearlyapplyonly Transition identifiable and reliably measureable the riskcomponentisseparately designated asthehedgeditemif non-financial instrumentmaybe 31-Dec-16 14,069 1,993 9,063 2,330 D’000 683 The Bank 31-Dec-15 13,398 1,759 8,330 2,606 D’000 703 notes to the financial statement 49

“consumption of the expected future future of the expected “consumption in benefits embodied economic when determining the the asset” method amortisation appropriate under IAS for intangible assets The specific 38 intangible assets. to the amortisation related request arrangements of service concession 12 Service within the scope of IFRIC Concession Arrangements. methods Clarification of acceptable and amortisation of depreciation 16 and IAS (amendments to IAS 2014 and is 38) was issued in May beginning for annual periods effective 2016. on or after 1 January IAS 12 Amendment - Recognition of Assets for Unrealised Deferred Tax Losses as The amendments to IAS 12 are follows: losses on debt instruments Unrealised at fair value and measured measured at cost for tax purposes give rise to a deductible temporary difference of whether the debt regardless holder expects to instrument’s the carrying amount of the recover debt instrument by sale or by use The carrying amount of an asset does not limit the estimation of probable benefits; taxable future taxable profits Estimates for future from exclude tax deduction resulting of deductible temporary the reversal differences. tax An entity assesses a deferred asset in combination with other tax law tax assets. Where deferred the utilization of tax loses, restricts an entity would assess a deferred tax asset in combination with other tax assets of the same type. deferred annual report 2016 annual report Proudly gambian Proudly Amendments to standards Amendments - Leases “IFRS 16 Amendment should how leases IFRS 16 specifies and measured be recognized, provides The standard presented. model a single lessee accounting assets lessees to recognize requiring unless the and liabilities for all leases or less or lease term is 12 months has a low value. the underlying asset classify leases Lessors continue to with IFRS as operating or finance lessor accounting to approach 16’s its from substantially unchanged IAS 17. predecessor “IAS 7 Amendment – Statement of Cash Flows This amends IAS 7 and brings in initiatives. The some disclosure the entity to amendment requires that enable users disclosures provide of financial statements to evaluate changes in liabilities arising from financing activities. IFRS 2 – Classification and Measurement of Share –based payment transactions The amendment clarifies the to the accounting in relation standard based for cash-settled share payment transactions that include a performance condition, the payment classification of share-based transactions with net settlement and the accounting for features based modifications of share cash- settled to transactions from equity settled. Amendments to IAS 16 and IAS 38 Clarification of acceptable methods of depreciation and amortisation a request The committee considered to clarify the meaning of the term IFRS reporter will recognise revenue revenue recognise will IFRS reporter such entities to requiring as well as financial statements users of provide relevant informative, with more provides The standard disclosures. five step a single, principles based to all contracts model to be applied with customers. Transition in an should be applied The standard financial statements for IFRS entity’s periods beginning annual reporting 2018. Earlier on or after 1 January An entity application is permitted. IFRS 15 earlier that chooses to apply should disclose than 1 January 2018 financial this fact in its relevant statements. When applying IFRS 15, entities in full should apply the standard period, including for the current application to all retrospective not yet complete contracts that were at the beginning of that period. of prior periods, the In respect transition guidance allows an option to either apply IFRS 15 in full to prior prior period figures periods or retain under the previous as reported the cumulative recognising standards, of applying IFRS 15 as an effect adjustment to the opening balance of equity as at the date of initial application. Impact Almost all entities that generate by the will be affected revenue as it issue of this new standard in substantial changes may result of to the timing and measurement and introduces recognition revenue revised disclosure significantly requirements. notes to the financial statement Proudly gambian 50 annual report 2016 33. Retained earnings Depreciation and amortisation To expansionandgrowth: Dividends to Shareholders To providers ofcapital: Income Tax To Government: Other Employees Executive Management Directors (without executives) To employees: Distributed asfollows: Value added Impairments Non bankingincome Value addedbybankingservices Direct costofservices Interest andotheroperatingincome earned Value AddedStatementfortheyearended31December2016 31-Dec-16 (202,151) 123,035 103,266 564,151 494,831 696,982 153,036 80,872 36,361 11,056 47,732 21,588 3,318 D’000 The Group 31-Dec-15 (210,207) 131,356 104,316 579,295 569,148 779,355 150,401 70,407 53,128 10,691 3,001 7,146 3,626 D’000 31-Dec-16 (202,807) 100,000 539,497 453,626 656,433 146,415 95,914 79,402 29,412 11,056 47,895 37,976 3,013 D’000 The Bank 31-Dec-15 (210,955) 100,000 562,617 525,933 736,888 145,177 98,800 69,111 45,463 10,089 31,666 5,018 3,309 D’000 Proudly gambian

Shareholding as at 31 December 2016 s h are oldi n g

Category No of No. of Issued % holding Shareholders Shares 1 - 5,000 633 814,990 0.41% 5,001 -10,000 89 661,679 0.33% 10,001 - 50,000 143 3,691,846 1.85% 50,001 -100,000 82 6,366,574 3.18% 100,001 - 500,000 50 10,369,258 5.18% Over 500,000 22 178,095,653 89.05% Total 1,019 200,000,000 100.00%

Names No of Shares % Holding Social Security & Housing Finance Corp 73,969,253 36.98% Databank Securities 44,240,000 22.12% Trust Bank Employee 17,784,920 8.89% Ventures & Acquisitions Ltd 11,790,073 5.90% Gambia Ports Authority 11,156,507 5.58% Gambia Electrical Company 4,600,000 2.30% DSL Trading Portfolio 2,238,867 1.12% Njie Pa M.M. 1,236,033 0.62% Krohne Fund LP 1,235,900 0.62% Hobieka Charbel 1,086,667 0.54% Bendavia Travel Agency Ltd 1,000,000 0.50% Aziz Micheal A 833,333 0.42% Banna Antione 833,333 0.42% Rajwani Nandkishore 833,333 0.42% Sarge Ardy 800,000 0.40% West African Examination Council 700,000 0.35% Saho Dodou K 696,667 0.35% Quantum Net Ltd 666,667 0.33% TAF Holding Co Ltd 666,667 0.33% Equity Focus Company Ltd 590,634 0.30% Others 23,041,147 11.52% 200,000,000

annual report 2016 51 Proudly gambian

Where to find us

HEAD OFFICE 3/4 Ecowas Avenue CENTRAL RIVER Atlantic Ocean Farafenni

Bara NORTH BANK Soma P O Box 1018 Bakau Banjul Latrikunda West eld Serrekunda Serrekunda Market LOWER RIVER Kololi Bundung Brusubi Bakoteh UPPER RIVER Sinchu Lamin Village THE GAMBIA Banjul Yundum Basse Brikama Tel: 220-4225777/8/9 WEST COAST RIVER ere to fi n d us w h ere to Fax: 220-4225781

AIRPORT BRIKAMA LATRIKUNDA Banjul International Airport Brikama (Western Region) SABIJI Yundum Tel: 4483418 Serrekunda Tel: 4472915 Fax: 4483439 Tel: 4391780 Fax: 4472916 Fax: 4398524 BRUSUBI BAKAU Coastal Road SERREKUNDA Sait Matty Road Opposite Africmed Clinic Mosque Road Bakau, Cape St. Mary Tel: 8807474/8200984 Tel: 4399540 Tel: 4495486/4494542 Fax: 4399541 BUNDUNG Fax: 4496229 Bundung Highway SERREKUNDA BAKOTEH Tel: 4379313 Saho Kunda Tipper Garage Fax: 4379314 Tel: 4374076 Bakoteh Fax: 4374075 FARAFENNI Tel: 4466378 Farafenni SINCHU Fax: 4466373 (North Bank Division) Opposite Old Yundum Police Station BANJUL Tel: 5735238 Tel: 8907058 3 / 4 Ecowas Avenue Fax: 5735007 Fax: 8200998 P. O. Box 1018, Banjul KOLOLI Tel: 4225777/8/9 Badala Highway SOMA Fax: 4225781 Tel: 4465303 Soma (Lower River Region) Tel: 5531629 BARRA Fax: 4465304 Fax: 5531636 Barra (North Bank Region) LAMIN Tel: 5710408 Lamin Highway WESTFIELD Fax: 5710407 Tel: 4474091 Westfield Junction Tel: 4398042/4390156 BASSE Fax: 4474062 Fax: 4398039 Basse (Upper River Region) Tel: 5668907 Fax: 5668318

52 annual report 2016 Proudly gambian

Correspondent Banks correspo n de t ba ks

BANK OF BEIRUT DEN DANSKE BANKE SKANDINAVISKA

17A CURZON STREET 2-12 HOLMENS KANAL ENSKLIDA BANKEN, LONDON W1J 5HS DK-1092 COPENHAGEN K S-106 40, STOCKHOLM UNITED KINGDOM DENMARK SWEDEN

BIC: BRBAGB2L BIC: DABADKKK BIC: ESSESESS

DEN NORSKE BANK UNICREDIT ITALIANO BMCE BANK INT’L PLC

SIRANDEN 21N-0250, INT’L CORRESPONDING 26 UPPER BROOK STREET P.O. BOX 1171 N-017 BANKING, VIALE LONDON, W1K 7QE OSLO, NORWAY BODIO 29, B3 MILAN, ITALY UNITED KINGDOM

BIC: DNBANOKK BIC: UNCRITMM BIC: MEDTGB2L

BMCE BANK INT’L PLC ECOBANK SENEGAL UNICREDIT MUNICH

SUCCURSALE 8 AVENUE LEOPOLD AM TUCHERPARK 1 EN FRANCE, S. SENGHOR, B.P 9095 D-80538 MUNICH PARIS, FRANCE DAKAR, SENEGAL GERMANY

BIC: BMCEFRPP BIC: ECOCSNDA BIC: HYVEDEMM

GHANA COMMERCIAL GHANA INT’L BANK BANK OF BEIRUT

BANK 67 CHEAPSIDE, (UK) LTD ACCRA HIGH STREET REGINA HOUSE FRANKFURT BRANCH P.O. BOX 2971 LONDON EC2V 6AV GRUNEBURGWEG 2 ACCRA, GHANA GERMANY 0322 FRANKFURT AM MAIN

BIC: GHCBGHAC BIC: GHIBGB2L BIC: BABEDEFFXXX

annual report 2016 53 Proudly gambian

Profile of Directors

Mr. Ken Ofori-Atta is the Chairman ture and Consumer Science of the of Databank and its Co-founder. He University of Ghana; and a member was the Executive Chairman from of the President’s Council on Inter- 1990 until his retirement on Febru- national Activities of Yale University. ary 14, 2012. Databank has been He is Co-founder of the Africa Lead- awarded numerous professional, ership Initiative of the Aspen Global social and leadership awards dur- Leadership Network and a Henry ing his incumbency including being Crown Fellow of the Aspen Institute. profile of directors awarded the 2007 Most Respected Prior to co-founding Databank, Ken Company in Ghana. Ken is a Direc- worked at Morgan Stanley and Salo- tor of two publicly listed companies: mon Brothers on Wall Street in New Enterprise Insurance Company Lim- York. Ken went to Achimota School ited, and Trust Bank of the Gambia in Accra, Ghana; he has a BA in Mr. Ken Ofori-Atta of which he is Chairman. He is a Economics from Columbia Universi- Director at the International Bank of ty in New York and an MBA from the Chairman Liberia and is also a Board Member Yale School of Management. Ken of the Acumen Fund, a global Pri- was honoured as a Donaldson Fel- vate Equity Social Investment Fund low at Yale University in 2010 and a in New York and Chairman of AAF John Jay Fellow at Columbia Univer- SME Fund LLC, a US$ 30M pri- sity in 2011. He was twice honoured vate equity for SME agribusiness in by PWC Ghana as one of the Most Africa with offices in Accra, Douala Respected CEOs in Ghana. He is and Johannesburg. Ken has keen married to Dr. Angela Lamensdorf interest in education. He is on the Ofori-Atta (a Clinical Psychologist Boards of New York University in at the University of Ghana Medical Ghana, Central University College, School). They are practicing Chris- University College of Agriculture and tians and have three children. They Environmental Studies. He is also live in Accra. Chairman of the College of Agricul-

Mr. Ibrahima Salla is presently the sibility for the Bank’s flagship Branch Managing Director at Trust Bank and headed the Information Technol- Limited, a position he assumed on ogy Steering Committee. The adroit 1st July 2016. Prior to this, he was manner in which he carried out his the General Manager for Corporate duties ensured that he swiftly rose at Trust Bank Limited, a position he through the ranks from a Manage- assumed in January 2007. ment Trainee to General Manager of Mr. Salla’s career at Trust Bank Corporate Department. spans over two decades. As a Man- In addition to his duties as a Bank agement Trainee in 1994, he had the Executive, Mr. Salla also sits on the opportunity of being exposed to all Boards of Bayba Financial Services facets of the Bank’s key operational Limited and Home Finance Com- Mr. Ibrahima Salla areas. He oversaw branch activities pany Limited. Managing Director Bank wide, had supervisory respon- He is married and has four children.

54 annual report 2016 Proudly gambian profile of directors

Mr. Pa Macoumba Njie Mr. Franklin Hayford Mr. Mustapha Njie Mr. Saibatou Faal Director Director Director Director Mr. Pa Macoumba Njie is Mr. Franklin Hayford is an Mr. Mustapha Njie owns and Mr. Saibatou Faal is currently presently a non-executive Executive Director of Data- manages Gambia’s lead- the Deputy Managing Direc- Director of the Board of Trust bank Financial Services Ltd., ing indigenous construction tor of Social Security and Bank Limited as at 1st July Accra, Ghana. Mr. Hayford company Taf Construction Housing Finance Corporation 2016. The former Managing is also the Resident Director Limited, which was incorpo- (SSHFC), a position he has Director returned home to of Databank Securities Ltd, rated in January 1990. After held since November 2011. re-join Gambia Commercial The Gambia. Mr. Hayford a decade, he consolidated He has worked in various ca- Development Bank where he has over the years been very Taf Construction with all his pacities at the SSHFC since worked his way up the ranks active in private business in from a Credit officer to Com- other operations to form 1982. He has an Msc in Ac- The Gambia, holding differ- mercial Manager. Between Taf Holding Company Lim- tual Science from the Univer- ent managerial positions in 1992 and 1997 he worked ited. The Gambia Chamber sity of Lausanne, Switzerland his way up from Operations a number of companies. He of Commerce and Indus- and a Bachelors of Business Manager to Executive Direc- is also the local (Gambian) try decorated him with the Administration Degree from tor and then played a lead- representative of a number of coveted award of Business the Georgia State University, ing role in the privatization International Institutions. Mr. Man of the Year 1992/93 Atlanta, USA. Mr. Faal also of Trust Bank Limited. Mr. Hayford holds a BSc degree and 2004. In 1998, he was has various certificates and Njie was appointed Acting in Management Sciences honoured with the Europe- diplomas in other disciplines. Managing Director in Octo- from the University of Man- an Council Global Business He was on the Trust Bank ber 1997 and confirmed as chester in U.K. He joined the Award. Again in November Board between 2001 and Managing Director in 2000 Board in September 2000. 2004, he received a dual 2006 when he resigned to a position he held until his award: Best Small, Medium pursue his Masters Degree. retirement in June 2016. He holds a B.A in Business Ad- Micro Enterprise Award in Af- He re-joined the Board in De- ministration from Howard rica and Honorary Doctorate cember 2009 until October University in the USA and an Degree (PhD) in Global Enter- 2011. Following the retire- M.A in Business Economics prise Management. He was ment of Mr. Momar Samba from Essex University in the also decorated with Insignia from the services of SSHFC, UK. Mr. Njie has a rich and of Member of The Republic Mr. Faal was re-nominat- diverse training in a variety of of The Gambia (MRG) by His ed back to the Trust Bank banking and related courses Excellency, The President of Board. He resigned from the across the world. The Republic of The Gambia. Board in March 2017 after Mr. Njie received the Gam- Mr. Njie was appointed to the his statutory retirement from bia Chamber of Commerce Board in September 2000. the employment of Social Banker of the year Award in SSHFC on whose behalf he 2001 and in 2002 was ap- served on the Board. pointed a Notary Public. In 2006, he was appointed to the National Order of the Re- public of The Gambia (RGM) by His Excellency The Presi- dent of the Republic of The Gambia. Mr. Pa Njie is currently a Di- rector on the Board of Inter- national Bank of Liberia. He also sits as a Director on the Boards of Bayba Financial Services Limited, Women’s World Banking Ghana Limit- ed, Enterprise Life Assurance Company Limited and Home Finance Company Limited.

annual report 2016 55 Proudly gambian

Mr. Edward Graham Mr. Abdoulie Cham Mrs. Angela Mrs. Njilan Director Director Andrews-Njie Senghore-Njie Mr. Edward Graham joined Mr. Abdoulie Mr. Cham has Director Executive Director Social Security and Hous- worked at Social Security Mrs. Angela Andrews Njie Mrs. Njilan Senghore-Njie is ing Finance Corporation and Housing Finance Cor- is a Co-founder, Director presently the Deputy Managing (SSHFC) as an Accountant poration since 1982 rising and Company Secretary of Director at Trust Bank Limited, in 1987 and worked his way through the ranks from Ac- West African Tours Ltd, a a position she assumed on 1st profile of directors up to his current position of counts Clerks, Cashier, and company founded in 1987. July 2016. Prior to this, she Managing Director. In 1986, Accounting Assistant to his Prior to this, she worked was the General Manager for he obtained a Higher Na- current position as Director for the Gamnor Group (The Finance and Administration at tional Certificate in Account- of Finance and Investment, Gambia), CT Bowering (Lon- Trust Bank Limited, a position ing from Aberdeen Scotland a position he assumed in don) and British Aluminium. she assumed in May 2007. and in 1999 he graduated as the year 2011. Mr. Cham Since 1993, she has also Njilan began her career as an a member of the Chartered obtained a Bachelor of Sci- undertaken short term con- Auditor with Deloitte and Tou- Institute of Management ence Degree in Accounting sultancies for a number of che in 1999. Her work as an Au- Accountants (ACMA). Mr. from the University of Hull in Institutions including an as- ditor within a Big 4 firm helped Graham has also attended the United Kingdom in the signment at Tanzania’s Civil set the foundation for the rest short term training courses year 2006. He has benefited Training Center on behalf of of her career. She climbed the in Information Systems De- from numerous courses and the Commonwealth Secre- ranks from an Audit trainee to a velopment, Financial Admin- programs for which he has tariat, and an audit assign- Senior Audit Manager within a istration of Security Schemes obtained certificates and di- ment in collaboration with short period. During her tenure and Corporate Governance plomas in various fields of Coopers & Lybrand Dieye at Deloitte, Njilan gained exten- courses. In April 2000, he study. He joined the Board in under the direction of the sive experience in audits for all was attached to the Hous- June 2011. World Bank. She also served Industry sectors in The Gambia ing Finance Company of as Executive Board Member and became well respected for Kenya to understudy the of the Chamber of Com- her knowledge in critical audit administration of housing merce and Industry in The and accounting issues affect- project loans. In 2007, he Gambia. Mrs. Andrews-Njie ing the majority of entities not obtained a Master of Busi- graduated from the London just in the Gambia but also in ness Administration Degree School of Accounting as an the West African region having from the University of Sun- ACIS (Chartered Institute of also conducted audits in coun- derland, U.K. Currently, he Secretaries) Graduate and an tries like Mauritania, Ghana and is a Fellow of the Chartered ACMA (Chartered Institute of Mali. Institute of Management Ac- Management Accountants) In addition to her duties as a countants (FCMA) and a Fel- Graduate in 1981 and 1983 Bank Executive, Njilan also sits low of the Chartered Institute respectively. Prior to that, on the Boards of The West Af- of Managers (FCMI). He first she obtained a Diploma in rica Network for Peace build- joined the Trust Bank Board Administration from Hull Col- ing (WANEP), Bayba Financial in January 2005 until De- lege in 1979. In 2004, she Services Limited and Home cember 2010 when he left obtained an MBA in Inter- Finance Company Limited. Social Security and Housing national Business from the Finance Corporation. He re- University of Birmingham. Njilan is a Fellow Member of joined SSHFC in September She joined the Board in May the Association of Accounting 2012 and was re-nominated 2002. Technicians (FMAAT), a Fellow back to the Trust Bank Board Member of the Association of in January 2013. Mr. Graham Chartered and Certified Ac- resigned from the Board in countants (FCCA) and holds March 2017. a Masters Degree (MBA) from Oxford Brookes University, UK. She is married and has two children.

56 annual report 2016 Proudly gambian

Senior Management S e n ior Ma age m e n t

Ibrahima Salla Njilan Senghore Njie Managing Director Deputy Managing Director

Momodou Conteh Momodou Lamin Omar Mboob Fatou Lili Drammeh Assistant General Bojang Head of Department – Head of Department – Manager – Management General Manager Finance Legal & Compliance, Information System (MIS) Bayba Financial Services Company Secretary

Yahya Corr Dodou S. Nyang Muhammed M. Sisay Sheikh Ndow Head of Department – Head of Department – Head of Department – Head of Department – Internal Audit Retail Banking Treasury Administration & Human Resources

annual report 2016 57 Proudly gambian

Resolutions report To: All Members of Trust Bank Limited

THE NINETEENTH ANNUAL GENERAL MEETING OF TRUST BANK LIMITED TO BE HELD AT KAIRABA BEACH HOTEL ON 18TH MAY 2017 AT 3.00 PM. The Board of Directors will be proposing the following resolutions, which would be put to the Annual General Meeting:

ORDINARY RESOLUTIONS 1. To receive and adopt the Annual Report and Consolidated Accounts for the year ended 31st December 2016. The Board proposes that the Directors Report and Consolidated Statement of Financial Position as at 31st December 2016 together with the Consolidated Statement of Comprehensive Income for the year ended on that date submitted to the meeting be received and adopted. 2. To Declare Dividends. The Board has recommended a final dividend of 30 bututs (Thirty bututs) per share for the year ended 31 December 2016. 3. To appoint a new Director. The following new Director will be proposed for appointment: Mr. Mohamadou Manjang

4. To re-elect Directors. The following Directors who will be retiring and being eligible have offered themselves for re-election: Mr. Franklin Hayford Mr. Mustapha Njie The Board proposes that the above be re-elected. 5. To approve Directors Fees. 6. To appoint the Auditors of the Bank until the conclusion of the next annual General Meeting (AGM). The Board proposes that PKF be appointed Auditors until the conclusion of the next AGM. 7. To authorize the Board to determine remuneration of Auditors. 8. To transact any other business appropriate to be dealt with at an Annual General Meeting.

BOARD OF DIRECTORS

15th March 2017

58 annual report 2016 Proudly gambian

Proxy Form proxy for m

PROXY FOR THE ANNUAL GENERAL MEETING FOR TBL’S USE ONLY TO BE HELD ON 18th May 2017

I/We

being a member/members of the above named company, hereby appoint

The Chairman of the Meeting*

as my/our proxy to vote for me/us on my/our behalf at the Annual General Meeting of the Company to be held on 18th May, and at any adjournment thereof.

I/WE DESIRE FOR THE PROXY TO BE USED AS FOLLOWs FOR AGAINST 1. To receive and adopt the Annual Report and Consolidated Accounts for the year ended 31st December 2016. 2. To Declare Dividends. 3. To appoint a new Director (Mr. Mohamadou Manjang). 4. To re-elect Directors (Mr. Franklin Hayford and Mr. Mustapha Njie) 5. To approve the remuneration of Directors 6. To appoint the Auditors of the Bank until the conclusion of the next Annual General Meeting 7. To authorize the Board to determine the remuneration of Auditors Signature Date

2017

Note i) This proxy should be returned so as to arrive at the Registered Office of the Company, 3-4 ECOWAS Avenue, Banjul, not later than 48 hours before the time appointed for the Meeting. ii)* A member who wishes to appoint his own proxy should insert the name of his proxy in the blank space provided and delete the Chairman of the meeting. ii) A proxy need not necessarily be a member of the Company. iii) Any alteration to this form must be initialed by the appointer.

annual report 2016 59 Proudly gambian

60 annual report 2016 Online Banking

Your Trust Bank Account Always a click away

With the online banking you can benefit from the following:

• Balance enquiry • View and print statement • View exchange rates • Funds transfer • Cheque book request • View loan balance, loan calculator and loan request • Request for ATM Card and Pin replacement • Topup • Instant messages and request

www.tblgambia.com OUR PARTNERS:

BRIKAMA BRANCH: WEST FIELDBRANCH:(220)4394505 notes to the financial statement Proudly gambian 62 annual report 2016 WE ARE ALSO LOCATED IN ALL TRUSTBANK BRANCHES ACROSS THE COUNTRY (220)4484742 FINANCIAL SERVICES THROUGH OUR BRUSUBI BRANCH: KAIRABA BRANCH: PARTNERS TRANSFER IN AFLASH MONEY (220)4410817 (220)4398136 SUBSIDIARY OF BANJUL NTCBRANCH:(220)4202412 BANSANG BRANCH:((220)5674244