QNB FINANCE LTD INTERIM CONDENSED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2014

Transcription

1 QNB FINANCE LTD INTERIM CONDENSED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2014

2 30 September 31 December (Reviewed) (Audited) Notes ASSETS Due from Parent Company 7,811,007,779 7,576,835,475 Total Assets 7,811,007,779 7,576,835,475 LIABILITIES AND EQUITY QNB Finance Ltd. Interim Statement of Financial Position As at 30 September 2014 LIABILITIES Debt Securities 3 5,980,822,751 5,975,614,195 Other Borrowings 4 1,778,124,271 1,560,241,283 Other Liabilities 52,060,657 40,979,897 Total Liabilities 7,811,007,679 7,576,835,375 EQUITY Share Capital Retained Earnings - - Total Equity Total Liabilities and Equity 7,811,007,779 7,576,835,475 The interim condensed consolidated financial statements were approved by the Board of Directors on 12 October 2014 and were signed on its behalf by:.. Noor Mohd Al-Naimi Director.. Ali A Alkuwari Director The attached notes 1 to 5 form an integral part of these interim condensed financial statements.

3 QNB Finance Ltd. Interim Statement of Comprehensive Income Nine months to Nine months to 30 September 30 September (Reviewed) (Reviewed) Income Interest Income 137,674,555 97,509,640 Expenses Interest Expense (137,674,555) (97,509,640) Profit for the Period - - Total Comprehensive Income for the Period - - The attached notes 1 to 5 form an integral part of these interim condensed financial statements.

4 QNB Finance Ltd. Interim Statement of Changes in Equity Share Capital Retained Total Earnings Balance at 1 January Profit for the Period Total Comprehensive Income for the Period Balance at 30 September Balance at 1January Profit for the Period Total Comprehensive Income for the Period Balance at 30 September The attached notes 1 to 5 form an integral part of these interim condensed financial statements.

5 QNB Finance Ltd. Interim Statement Cash Flows Nine months to Nine months to 30 September 30 September (Reviewed) (Reviewed) Cash Flows from Operating Activities Profit for the Period - - Adjustment for: Interest income 137,674,555 97,509,640 Interest expense (137,674,555) (97,509,640) - - Changes in Operating Assets: Changes in Amounts Due from Parent Company (317,381,953) (2,312,284,158) Net Cash used in Operating Activities (317,381,953) (2,312,284,158) Cash Flows from Investing Activities Interest received 120,243,421 75,088,346 Net Cash from Investing Activities 120,243,421 75,088,346 Cash Flows from Financing Activities Interest paid (120,243,421) (75,088,346) Net Proceeds from issuance of Debt Securities - 992,160,000 Net Proceeds from issuance of Other Borrowings 581,385,524 1,387,623,815 Repayment of Other Borrowings (264,003,571) (67,499,657) Net Cash used in Financing Activities 197,138,532 2,237,195,812 Net increase in cash and cash equivalents - - Cash and cash equivalent at 1 January - - Cash and cash equivalent as at 30 September - - The attached notes 1 to 5 form an integral part of these interim condensed financial statements.

6 1. CORPORATE INFORMATION QNB Finance Ltd. (the "Company") was incorporated on 18 October 2010 and registered as an exempt company with limited liability in Cayman Islands. The principal purpose of the Company is to raise funding through the international capital markets for lending to Qatar National Bank S.A.Q. (the "Bank" or "Parent Company"). All the Debt Securities and Other Borrowings issued by the Company are irrevocably and unconditionally guaranteed by the Bank. The registered office of the Company is situated at P.O. Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands. 2. SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION a) Basis of Presentation This interim condensed financial statements are presented in US Dollars. All financial information presented in US Dollars has been rounded to the nearest US Dollar. The functional currency of the Company has been assessed as the US Dollar. The interim condensed financial statements does not contain all information and disclosures required for full financial statements prepared in accordance with International Financial Reporting Standards. In addition, results for the nine month period ended 30 September 2014 are not necessarily indicative of the results that may be expected for the financial year ending 31 December The significant accounting policies adopted in the preparation of the interim condensed financial statements are consistent with those used in the preparation of the financial statements as at and for the year ended 31 December The preparation of the interim condensed financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. The significant judgments made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the financial statements for the year ended 31 December The Company's financial risk management objectives and policies are consistent with those disclosed in the financial statements for the year ended 31 December b) New Standards and Interpretations QNB Finance Ltd. Notes to the Interim Condensed Financial Statements The Company is wholly owned by Qatar National Bank S.A.Q. These interim condensed financial statements have been prepared in accordance with IAS 34 - "Interim Financial Reporting". These interim condensed interim financial statements should be read in conjunction with the 2013 annual financial statements of the Company. New standards, amendments and interpretations that are effective for the period ended 30 September 2014 The following new and amended standards have been adopted by the Company in preparation of these interim condensed financial statements. The new standards do not have any material impact to the Company, but they may result in additional disclosures at year-end: - Investment Entities (Amendment to IFRS 10, IFRS 12 and IAS 27) - Offsetting Financial Assets and Financial Liabilities (Amendment to IAS 32) - Novation of Derivatives and Continuation of Hedge Accounting (Amendment to IAS 39) - Recoverable Amount Disclosure for Non-Financial Assets (Amendment to IAS 36) New standards, amendments and interpretations that are issued but not yet effective for the period ended 30 September 2014 Also, during the period, the following new standards have been issued but are not yet effective. The Company is currently evaluating the impact of these new standards. The Company will adopt these new standards on the respective effective dates. - IFRS 9 Financial Instruments (Effective 1 January 2018) - IFRS 14 Regulatory Deferral Accounts (Effective 1 January 2016) - IFRS 15 Revenue from Contracts with Customers (Effective 1 January 2017)

7 3. DEBT SECURITIES 30 September 2014 (Reviewed) 31 December 2013 (Audited) Face Value of the Bonds 6,000,000,000 6,000,000,000 Less: Unamortised discount (19,177,249) (24,385,805) 5,980,822,751 5,975,614,195 The table shows below the details of the debt securities issued: As at 30 September 2014 Currency Amount Issue Price Coupon Maturity Date Amounts in (net of unamortised discount) 1,500,000, % 3.125% 16-Nov-15 1,496,687,421 1,000,000, % 3.375% 22-Feb ,235,793 1,000,000, % 2.125% 14-Feb ,458,685 1,000,000, % 2.875% 29-Apr ,754, ,000, % 2.750% 31-Oct ,686, ,000, % 3M LIBOR +125bps 31-Oct ,000,000 5,980,822,751 As at 31 December 2013 Currency Amount Issue Price QNB Finance Ltd. Notes to the Interim Condensed Financial Statements Coupon Maturity Date Amounts in (net of unamortised discount) 1,500,000, % 3.125% 16-Nov-15 1,494,481,731 1,000,000, % 3.375% 22-Feb ,682,575 1,000,000, % 2.125% 14-Feb ,452,372 1,000,000, % 2.875% 29-Apr ,917, ,000, % 2.750% 31-Oct ,080, ,000, % 3M LIBOR +125bps 31-Oct ,000,000 5,975,614, OTHER BORROWINGS Following is the list of private placements issued by the Company: As at 30 September 2014 Currency Amount Issue Coupon Maturity Date Amounts in Price HKD 184,000, % 2% 20-Dec-17 23,689,273 HKD 155,000, % 2% 29-Jan-18 19,955,638 CHF 300,000, % 3M LIBOR +40bps 12-Jan ,217,965 CHF 200,000, % 3M LIBOR +53bps 13-May ,811,976 CHF 200,000, % 0.5% 27-Jun ,811,976 EUR 60,000, % 3M EURIBOR +30bps 24-Oct-14 75,567,150 EUR 58,500, % 3M EURIBOR +30bps 19-Dec-14 73,683,807 50,000, % 3M LIBOR +80bps 16-Jul-15 50,000,000 50,000, % 3M LIBOR +75bps 16-Sep-15 50,000, ,000, % 1M LIBOR +58bps 23-Jan ,000, ,000, % 3M LIBOR +50bps 30-Apr ,000,000 EUR 100,000, % 3M EURIBOR bps 24-Jan ,955,226 60,000, % 3M LIBOR +72bps 24-Feb-16 60,000,000 35,000, % 3M LIBOR +104bps 21-Feb-17 35,000,000 EUR 150,000, % 3M EURIBOR bps 20-Feb ,932,839 43,000, % 3M LIBOR +40bps 26-Aug-16 43,000,000 50,000, % 3M LIBOR +40bps 27-Feb-16 50,000,000 HKD 400,000, % 0.54% 18-Sep-15 51,498,421 1,778,124,271

8 QNB Finance Ltd. Notes to the Interim Condensed Financial Statements 4. OTHER BORROWINGS (CONTINUED) As at 31 December 2013 Currency Amount Issue Coupon Maturity Date Amounts in Price EUR 50,000, % 3M EURIBOR +20bps 24-Jun-14 68,834,639 HKD 184,000, % 2% 20-Dec-17 23,729,707 HKD 155,000, % 2% 29-Jan-18 19,989,699 CHF 300,000, % 3M LIBOR +40bps 12-Jan ,646,065 CHF 200,000, % 3M LIBOR +53bps 13-May ,430,710 CHF 200,000, % 0.5% 27-Jun ,430,710 CNY 600,000, % 2.49% 6-Jun-14 99,110,012 EUR 60,000, % 3M EURIBOR +30bps 24-Oct-14 82,533,214 EUR 58,500, % 3M EURIBOR +30bps 19-Dec-14 80,536,527 50,000, % 3M LIBOR +80bps 16-Jul-15 50,000, ,000, % 1M LIBOR +42bps 11-Sep ,000,000 50,000, % 3M LIBOR +75bps 16-Sep-15 50,000, ,000, % 1M LIBOR +58bps 23-Jan ,000, ,000, % 3M LIBOR +50bps 30-Apr ,000,000 1,560,241, SHARE CAPITAL The issued and paid up share capital of the Company as at 30 September 2014 is 100 (31 December 2012: 100). All shares carry equal voting rights.