CANADIA BANK PLC. FINANCIAL STATEMENTS FOR THE YEAR … · 2016-06-20 · M Lor Chee Leng Chairman...

CANADIA BANK PLC.

FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2014

CANADIA BANK PLC.

FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2014

CONTENTSPages

Directors’report 1 – 4

In depen den t auditor’s report 5 – 6

FIN AN CIAL STATEM EN TS

Con solidated b alan ce sh eet 7

Con solidated in com e statem en t 8

Con solidated statem en t ofch an ges in equity 9

Con solidated statem en t ofcash flow s 1 0

Balan ce sh eet 1 1

In com e statem en t 1 2

Statem en t ofch an ges in equity 1 3

Statem en t ofcash flow s 1 4

N otes toth e fin an cial statem en ts 1 5 – 84

APPEN DIX:N OTES ON COM PLIAN CE W ITH THE CEN TRAL BAN K ’S PRAK AS* 85 – 96

* Th e Appen dix does n ot form part ofth e audited fin an cial statem en ts.

601Mf M£25115e531 sjselQ_Ar hp 51- CANADIA BANK PLC.

Canadia Tower No. 315, Ang Duong St. (corner of Monivong Blvd.) Phnom Penh, Cambodia.

Tel : (855) 23 - 868 222 (30 lines) Fax : (855) 23 - 427 064

E-mail : [email protected] SWIFT: CADI KH PP

DIRECTORS' REPORT

The Board of Directors ("the Directors") hereby submit their report together with the consolidated and separate financial statements of Canadia Bank Plc. and its subsidiary, Cana Securities Ltd. (together referred to as "the Group") and of Canadia Bank Plc. ("the Bank") (collectively referred to as "the financial statements") as at 31 December 2014 and for the year then ended.

CANADIA BANK PLC.

The Bank is a commercial bank operating in accordance with the Cambodian Law on Commercial Enterprises and under the supervision of the National Bank of Cambodia ("NBC" or "the Central Bank"), pursuant to the Law on Banking and Financial Institutions of Cambodia and in accordance with Banking Licence No. 05 issued by the NBC, since 1991. The Bank's licence was renewed on 18 October 2006 for an indefinite period following the NBC's Prakas No. B7-06-207, dated 13 September 2006.

HOLDING COMPANY

The holding company of the Group is Canadia Investment Holding Plc. ("CIHP"), a public limited company incorporated in the Kingdom of Cambodia.

PRINCIPAL ACTIVITIES

The principal activities of the Bank consist of operations of core banking business and provisions of related financial services through the Bank's head office and various branches in Phnom Penh and in provinces.

There was no significant change in the nature of these principal activities during the year.

In February 2010, Cana Securities Ltd. ("the Subsidiary") was incorporated as a wholly-owned subsidiary of the Bank. The Subsidiary received its securities underwriting licence from the Securities Exchange Commission of Cambodia ("SECC") on 20 October 2010. The principal activities of the Subsidiary are to provide securities-related services; these include, but are not limited to, securities underwriting, dealing, brokerage and investment related services.

FINANCIAL PERFORMANCE

The financial performance of the Group and of the Bank for the year ended 31 December 2014 are set out in the consolidated income statement and income statement on pages 8 and 12, respectively.

DIVIDENDS

There is no dividend declared during the year (2013: US$7,087,762), as disclosed in Note 20 to the financial statements.

1

SHARE CAPITAL

The Bank's share capital was US$140,000,000 at 31 December 2014 (2013: US$140,000,000) as disclosed in Note 18 to the financial statements.

BAD AND DOUBTFUL LOANS AND ADVANCES

Before the financial statements of the Group and of the Bank were drawn up, the Directors took reasonable steps to ascertain that action had been taken in relation to the writing-off of bad loans or the making of provisions for bad and doubtful loans and advances, and have satisfied themselves that all known bad loans and advances had been written-off and that adequate provisions had been made for bad and doubtful loans and advances.

At the date of this report, the Directors are not aware of any circumstances that would render the amount written-off for bad loans and advances or the amount of the provision for bad and doubtful loans and advances in the financial statements of the Group and of the Bank inadequate to any material extent.

ASSETS

Before the financial statements of the Group and of the Bank were drawn up, the Directors took reasonable steps to ensure that any assets that were unlikely to be realised in the ordinary course of business at their value as shown in the accounting records of the Group and of the Bank, have been written down to an amount that they might be expected to realise.

At the date of this report, the Directors are not aware of any circumstances that would render the values attributed to the assets in the financial statements of the Group and of the Bank misleading in any material respect.

VALUATION METHODS

At the date of this report, the Directors are not aware of any circumstances that have arisen that would render adherence to the existing method of valuation of assets and liabilities in the financial statements of the Group and of the Bank misleading or inappropriate in any material respect.

CONTINGENT AND OTHER LIABILITIES

At the date of this report, there is:

(a) no charge on the assets of the Group and of the Bank that has arisen since the end of the year that secures the liabilities of any other person, and

(b) no contingent liability in respect of the Group and of the Bank that has arisen since the end of the year other than in the ordinary course of banking business.

No contingent or other liability of the Group and of the Bank has become enforceable, or is likely to become enforceable within the period of 12 months after the end of the year which, in the opinion of the Directors, will or might have a material effect on the ability of the Group and of the Bank to meet its obligations as and when they become due.

CHANGE OF CIRCUMSTANCES

At the date of this report, the Directors are not aware of any circumstances not otherwise dealt with in this report or the financial statements of the Group and of the Bank that would render any amount stated in the financial statements misleading in any material respect.

2

ITEMS OF AN UNUSUAL NATURE

The results of the operations of the Group and of the Bank for the year were not, in the opinion of the Directors, materially affected by any item, transaction or event of a material and unusual nature. There has not arisen in the interval between the end of the year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors, to affect substantially the results of the operations of the Group and of the Bank for year in which this report is made.

THE BOARD OF DIRECTORS

The members of the Board of Directors of the Bank during the year and at the date of this report are:

• Mr. Pung Kheav Se Chairman • Mr. Lor Chee Leng Chief Executive Officer • Mr. Charles Vann Executive Vice President • Mrs. Pung Carolyne Assistant to Chairman • Mr. Chen Lee Yiaw Hui Senior Vice President • Mr. Leow Ming Fong Independent, Non-Executive • Mr. Gerald Yeo Independent, Non-Executive • Mr. Peter Michael Buerger Independent, Non-Executive

DIRECTORS' INTERESTS

Mr. Pung Kheav Se and Mrs. Pung Carolyne are the Bank's directors who hold shares in CIHP, the Bank's ultimate parent.

STATEMENT OF THE BOARD OF DIRECTORS' RESPONSIBILITIES IN RESPECT OF THE FINANCIAL STATEMENTS

The Board of Directors is responsible for ensuring that the financial statements are properly drawn up so as to present fairly, in all material respects, the financial position of the Group and of the Bank as at 31 December 2014, and their financial performance and cash flows for the year then ended. The Board of Directors oversees preparation of these financial statements by management, which is required to:

i) adopt appropriate accounting policies that are supported by reasonable and prudent judgements and estimates and then apply them consistently;

ii) comply with the disclosure requirements and the guidelines issued by the National Bank of Cambodia and Cambodian Accounting Standards. Or, if there has been any departure in the interests of fair presentation, ensure that these have been appropriately disclosed, explained and quantified in the financial statements;

iii) maintain adequate accounting records and an effective system of internal controls;

iv) prepare the financial statements on a going-concern basis, unless it is inappropriate to assume that the Group and the Bank will continue operations in the foreseeable future, and

v) effectively control and direct the Group and the Bank in all material decisions affecting its operations and performance and ascertain that these have been properly reflected in the financial statements.

3

The Board of Directors confirms that the Group and the Bank have complied with the above requirements in preparing the financial statements.

APPROVAL OF THE FINANCIAL STATEMENTS

The accompanying financial statements, together with the notes thereto, which present fairly, in all material respects, the financial position of the Group and of the Bank as at 31 December 2014, and their financial performance and cash flows of the Group and of the Bank for the year then ended in accordance with the guidelines issued by the National Bank of Cambodia and Cambodian Accounting Standards, were approved by the Board of Directors.

Signed in accordance with a resolution of the Board of Directors.

Mr. Pung Kheav Se M Lor Chee Leng

Chairman C i ief Executive Officer

Phnom Penh, Kingdom of Cambodia Date: 26 March 2015

4

pwc

Independent auditor's report

To the Shareholders of Canadia Bank Plc.

We have audited the accompanying consolidated and separate bank financial statements of Canadia Bank Plc. and its subsidiary, Cana Securities Ltd. (together referred to as "the Group") and of Canadia Bank Plc. ("the Bank") (collectively referred to as "the financial statements"), which comprise the balance sheets as at 31 December 2014 of the Group and of the Bank and the income statements, statements of changes in equity and statement of cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.

Management's responsibility for the financial statements

The management is responsible for the preparation and fair presentation of these financial statements in accordance with the guidelines issued by the National Bank of Cambodia and Cambodian Accounting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Cambodian International Standards on Auditing. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgement, including assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

PricewaterhouseCoopers (Cambodia) Ltd. 35 Sihanouk Boulevard, Sangkat Tonle Bassac, Khan Chamkarmon, Phnom Penh, Cambodia T: +855 (0)23 860 606, F: +855(0)23 211 594, www.pwc5corn/kh

pwc

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Group and of the Bank as at 31 December 2014, and their financial performance and cash flows for the year then ended in accordance with the guidelines issued by the National Bank of Cambodia and Cambodian Accounting Standards.

For PricewaterhouseCoopers (Cambodia) Ltd.

By Kuy Li Partner

s:Itlit.511 5 5546. Q," tcatisthias

ezavviid(Geoipp) seCoopers

4? (Cambodia) Ltd.

4%4 n t ing:C44

Phnom Penh, Kingdom of Cambodia Date: 26 March 2015

6

CANADIA BANK PLC.

CONSOLIDATED BALANCE SHEETAS AT 31 DECEMBER 2014

7

2014 2013Note US$ Million Riel US$ Million Riel

ASSETSCash on h an d 1 43,51 4,81 4 584,823 1 26,61 8,929 50 5,843Balan ces w ith th e N BC 4 50 9,952,697 2,0 78,0 57 332,0 1 0 ,666 1 ,326,383Balan ces w ith oth erb an k s 5 226,336,1 97 922,320 20 5,21 6,546 81 9,840Loan s an d adv an ces 6 1 ,330 ,356,60 8 5,421 ,20 3 1 ,0 44,990 ,828 4,1 74,738Av ailab le-for-sale fin an cial assets 7 1 84,990 754 3,239,668 1 2,942Propertyan d equipm en t 9 49,492,1 0 9 20 1 ,680 50 ,937,238 20 3,494In tan gib le assets 1 0 1 ,0 24,1 27 4,1 73 454,884 1 ,81 7Deferred tax assets 1 1 2,1 1 1 ,959 8,60 6 1 ,537,475 6,1 42Oth erassets 1 2 29,445,549 1 1 9,991 1 8,658,839 74,542

Total assets 2,292,41 9,0 50 9,341 ,60 7 1 ,783,665,0 73 7,1 25,741

LIABILITIES AND EQUITYLIABILITIESDeposits from b an k s 1 3 20 8,1 92,754 848,385 1 30 ,265,1 31 520 ,40 9Deposits from custom ers 1 4 1 ,639,51 9,31 8 6,681 ,0 41 1 ,30 0 ,0 57,0 47 5,1 93,728In com e tax payab le 28 1 1 ,882,326 48,420 9,729,755 38,870Borrow in gs 1 5 1 0 0 ,779,775 41 0 ,678 64,0 39,543 255,838Prov ision forstaffgratitude 1 6 4,255,321 1 7,340 3,0 0 6,879 1 2,0 1 2Oth erliab ilities 1 7 38,81 8,785 1 58,1 87 33,325,427 1 33,1 35

Total liabilities 2,0 0 3,448,279 8,1 64,0 51 1 ,540 ,423,782 6,1 53,992

EQUITYSh are capital 1 8 1 40 ,0 0 0 ,0 0 0 570 ,50 0 1 40 ,0 0 0 ,0 0 0 559,30 0Reserv es 1 9 77,939,331 31 7,60 3 43,0 54,0 0 9 1 72,0 0 1Retain ed earn in gs 71 ,0 31 ,440 289,453 60 ,1 87,282 240 ,448

Total equity 288,970 ,771 1 ,1 77,556 243,241 ,291 971 ,749

Total liabilities and equity 2,292,41 9,0 50 9,341 ,60 7 1 ,783,665,0 73 7,1 25,741

Th e accom pan yin g n otes on pages 1 5 to84 form an in tegral part ofth ese fin an cial statem en ts.

CANADIA BANK PLC.

CONSOLIDATED INCOME STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2014

8


In terest in com e 21 1 28,934,891 525,41 0 1 0 8,928,20 7 435,1 68In terest expen se 21 (52,461 ,924) (21 3,782) (41 ,20 5,1 30 ) (1 64,61 4)

Net interest income 21 76,472,967 31 1 ,628 67,723,0 77 270 ,554

Fee an d com m ission in com e 22 20 ,659,953 84,1 89 1 8,0 46,1 62 72,0 94Fee an d com m ission expen se 22 (3,490 ,1 0 6) (1 4,222) (3,50 8,777) (1 4,0 1 8)

Net fee and commission income 22 1 7,1 69,847 69,967 1 4,537,385 58,0 76

Oth eroperatin g in com e 23 263,252 1 ,0 73 1 ,742,0 24 6,959

Total operating income 93,90 6,0 66 382,668 84,0 0 2,486 335,589

Person n el expen ses 24 (1 4,884,648) (60 ,655) (1 1 ,51 1 ,61 3) (45,989)Depreciation an d am ortisation ch arges 25 (5,0 80 ,1 0 2) (20 ,70 1 ) (4,669,0 92) (1 8,653)Gen eral an d adm in istrativ e expen ses 26 (1 0 ,791 ,386) (43,975) (1 0 ,424,20 0 ) (41 ,645)Prov ision forloan losses 27 (5,736,670 ) (23,377) (8,331 ,842) (33,286)

Profit before income tax 57,41 3,260 233,960 49,0 65,739 1 96,0 1 6

In com e tax expen se 28 (1 1 ,569,1 0 2) (47,1 44) (9,963,654) (39,80 5)

Profit for the year 45,844,1 58 1 86,81 6 39,1 0 2,0 85 1 56,21 1


CANADIA BANK PLC.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 31 DECEMBER 2014

9

Sharecapital Reserves

Retainedearnings Total

Note US$ US$ US$ US$

At 1 January 2014 1 40 ,0 0 0 ,0 0 0 43,0 54,0 0 9 60 ,1 87,282 243,241 ,291Tran sferred toreserv es 1 9 - 35,0 0 0 ,0 0 0 (35,0 0 0 ,0 0 0 ) -Ch an ge in v alue ofav ailab le-for-

sale fin an cial assets 7 - (1 1 4,678) - (1 1 4,678)Profit forth e year - - 45,844,1 58 45,844,1 58

At 31 December 2014 1 40 ,0 0 0 ,0 0 0 77,939,331 71 ,0 31 ,440 288,970 ,771

Million Riel equivalent 570 ,50 0 31 7,60 3 289,453 1 ,1 77,556

At 1 January 2013 1 30 ,0 0 0 ,0 0 0 1 5,0 91 ,569 56,1 72,959 20 1 ,264,528Issue ofsh are capital 1 8 1 0 ,0 0 0 ,0 0 0 - - 1 0 ,0 0 0 ,0 0 0Tran sferred toreserv es 1 9 - 28,0 0 0 ,0 0 0 (28,0 0 0 ,0 0 0 ) -Div iden ds 20 - - (7,0 87,762) (7,0 87,762)Ch an ge in v alue ofav ailab le-for-

sale fin an cial assets 7 - (37,560 ) - (37,560 )Profit forth e year - - 39,1 0 2,0 85 39,1 0 2,0 85

At 31 December 2013 1 40 ,0 0 0 ,0 0 0 43,0 54,0 0 9 60 ,1 87,282 243,241 ,291

Million Riel equivalent 559,30 0 1 72,0 0 1 240 ,448 971 ,749


CANADIA BANK PLC.

CONSOLIDATED STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 31 DECEMBER 2014

1 0


Cash flows from operating activitiesCash used in operation s 29 (1 9,662,1 0 9) (80 ,1 22) (1 1 3,725,794) (454,333)In terest receiv ed 1 21 ,223,232 493,985 1 0 2,1 0 9,959 40 7,929In terest paid (45,837,894) (1 86,789) (39,239,539) (1 56,762)In com e tax paid 28 (9,991 ,0 1 4) (40 ,71 4) (9,331 ,776) (37,280 )

Net cash from/(used in) operating activities 45,732,21 5 1 86,360 (60 ,1 87,1 50 ) (240 ,446)

Cash flows from investing activitiesPurch ases ofpropertyan d equipm en t 9 (3,30 4,20 8) (1 3,465) (1 1 ,1 56,81 6) (44,571 )Purch ases ofin tan gib le assets 1 0 (1 ,0 37,61 2) (4,228) (342,836) (1 ,370 )Proceeds from disposals ofpropertyan d

equipm en t 97,0 74 396 1 99,0 1 3 795Proceeds from disposal ofav ailab le-for-sale

fin an cial assets 3,0 0 0 ,0 0 0 1 2,225 - -

Net cash used in investing activities (1 ,244,746) (5,0 72) (1 1 ,30 0 ,639) (45,1 46)

Cash flows from financing activitiesProceeds from issue ofsh are capital 1 8 - - 1 0 ,0 0 0 ,0 0 0 39,950Proceeds from b orrow in gs 70 ,0 0 0 ,0 0 0 285,250 46,1 26,51 8 1 84,275Repaym en ts ofb orrow in gs an d sub ordin ated

deb t (33,259,768) (1 35,534) (7,0 80 ,0 0 0 ) (28,285)Div iden ds paid 20 - - (7,0 87,762) (28,31 6)

Net cash from financing activities 36,740 ,232 1 49,71 6 41 ,958,756 1 67,624

Net increase/(decrease) in cash and cashequivalents 81 ,227,70 1 331 ,0 0 4 (29,529,0 33) (1 1 7,968)

Cash an d cash equiv alen ts at b egin n in g ofyear 426,256,0 95 1 ,70 2,893 455,785,1 28 1 ,820 ,861

Curren cytran slation differen ces - 34,1 0 0 - -

Cash and cash equivalents at end of year 30 50 7,483,796 2,0 67,997 426,256,0 95 1 ,70 2,893


CANADIA BANK PLC.

BALANCE SHEETAS AT 31 DECEMBER 2014

1 1


ASSETSCash on h an d 1 43,51 4,51 4 584,822 1 26,61 8,629 50 5,841Balan ces w ith th e N BC 4 50 8,971 ,1 0 2 2,0 74,0 57 331 ,0 0 9,41 5 1 ,322,383Balan ces w ith oth erb an k s 5 226,336,1 97 922,320 20 5,21 6,546 81 9,840Loan s an d adv an ces 6 1 ,330 ,356,60 8 5,421 ,20 3 1 ,0 44,990 ,828 4,1 74,738In v estm en t in sub sidiary 8 1 1 ,0 0 0 ,0 0 0 44,825 1 1 ,0 0 0 ,0 0 0 43,945Propertyan d equipm en t 9 49,443,740 20 1 ,483 50 ,869,521 20 3,224In tan gib le assets 1 0 1 ,0 24,1 27 4,1 73 454,884 1 ,81 7Deferred tax assets 1 1 2,1 1 1 ,959 8,60 6 1 ,537,475 6,1 42Oth erassets 1 2 29,420 ,1 82 1 1 9,888 1 8,621 ,858 74,395

Total assets 2,30 2,1 78,429 9,381 ,377 1 ,790 ,31 9,1 56 7,1 52,325

LIABILITIES AND EQUITYLIABILITIESDeposits from b an k s 1 3 20 8,1 92,754 848,385 1 30 ,265,1 31 520 ,40 9Deposits from custom ers 1 4 1 ,649,0 31 ,838 6,71 9,80 5 1 ,30 6,498,786 5,21 9,463In com e tax payab le 28 1 1 ,879,654 48,41 0 9,727,820 38,863Borrow in gs 1 5 1 0 0 ,779,775 41 0 ,678 64,0 39,543 255,838Prov ision forstaffgratitude 1 6 4,255,321 1 7,340 3,0 0 6,879 1 2,0 1 2Oth erliab ilities 1 7 38,81 2,545 1 58,1 61 33,320 ,789 1 33,1 1 6

Total liabilities 2,0 1 2,951 ,887 8,20 2,779 1 ,546,858,948 6,1 79,70 1

EQUITYSh are capital 1 8 1 40 ,0 0 0 ,0 0 0 570 ,50 0 1 40 ,0 0 0 ,0 0 0 559,30 0Reserv es 1 9 78,0 50 ,777 31 8,0 57 43,0 50 ,777 1 71 ,988Retain ed earn in gs 71 ,1 75,765 290 ,0 41 60 ,40 9,431 241 ,336

Total equity 289,226,542 1 ,1 78,598 243,460 ,20 8 972,624

Total liabilities and equity 2,30 2,1 78,429 9,381 ,377 1 ,790 ,31 9,1 56 7,1 52,325


CANADIA BANK PLC.

INCOME STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2014

1 2


In terest in com e 21 1 28,722,456 524,544 1 0 8,776,968 434,564In terest expen se 21 (52,679,769) (21 4,670 ) (41 ,422,938) (1 65,485)

Net interest income 21 76,0 42,687 30 9,874 67,354,0 30 269,0 79

Fee an d com m ission in com e 22 20 ,658,761 84,1 84 1 8,0 42,743 72,0 81Fee an d com m ission expen se 22 (3,489,652) (1 4,220 ) (3,50 6,991 ) (1 4,0 1 0 )

Net fee and commission income 22 1 7,1 69,1 0 9 69,964 1 4,535,752 58,0 71

Oth eroperatin g in com e 23 31 0 ,0 35 1 ,263 1 ,769,0 0 5 7,0 67

Total operating income 93,521 ,831 381 ,1 0 1 83,658,787 334,21 7

Person n el expen ses 24 (1 4,657,1 31 ) (59,728) (1 1 ,239,793) (44,90 3)Depreciation an d am ortisation ch arges 25 (5,0 56,265) (20 ,60 4) (4,634,0 79) (1 8,51 3)Gen eral an d adm in istrativ e expen ses 26 (1 0 ,740 ,646) (43,768) (1 0 ,362,442) (41 ,398)Prov ision forloan losses 27 (5,736,670 ) (23,377) (8,331 ,842) (33,286)

Profit before income tax 57,331 ,1 1 9 233,624 49,0 90 ,631 1 96,1 1 7

In com e tax expen se 28 (1 1 ,564,785) (47,1 26) (9,959,927) (39,790 )

Profit for the year 45,766,334 1 86,498 39,1 30 ,70 4 1 56,327


CANADIA BANK PLC.

STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 31 DECEMBER 2014

1 3

Sharecapital Reserves

Retainedearnings Total

Note US$ US$ US$ US$

At 1 January 2014 1 40 ,0 0 0 ,0 0 0 43,0 50 ,777 60 ,40 9,431 243,460 ,20 8Tran sferred toreserv es 1 9 - 35,0 0 0 ,0 0 0 (35,0 0 0 ,0 0 0 ) -Profit forth e year - - 45,766,334 45,766,334

At 31 December 2014 1 40 ,0 0 0 ,0 0 0 78,0 50 ,777 71 ,1 75,765 289,226,542

Million Riel equivalent 570 ,50 0 31 8,0 57 290 ,0 41 1 ,1 78,598

At 1 January 2013 1 30 ,0 0 0 ,0 0 0 1 5,0 50 ,777 56,366,489 20 1 ,41 7,266Issue ofsh are capital 1 8 1 0 ,0 0 0 ,0 0 0 - - 1 0 ,0 0 0 ,0 0 0Tran sferred toreserv es 1 9 - 28,0 0 0 ,0 0 0 (28,0 0 0 ,0 0 0 ) -Div iden ds 20 - - (7,0 87,762) (7,0 87,762)Profit forth e year - - 39,1 30 ,70 4 39,1 30 ,70 4

At 31 December 2013 1 40 ,0 0 0 ,0 0 0 43,0 50 ,777 60 ,40 9,431 243,460 ,20 8

Million Riel equivalent 559,30 0 1 71 ,988 241 ,336 972,624


CANADIA BANK PLC.

STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 31 DECEMBER 2014

1 4


Cash flows from operating activitiesCash used in operation s 29 (1 6,299,896) (66,423) (1 1 2,520 ,0 21 ) (449,51 6)In terest receiv ed 1 21 ,0 70 ,797 493,363 1 0 1 ,958,720 40 7,325In terest paid (46,0 55,739) (1 87,677) (39,457,347) (1 57,632)In com e tax paid 28 (9,987,435) (40 ,699) (9,328,30 0 ) (37,267)

Net cash from(used in) operatingactivities 48,727,727 1 98,564 (59,346,948) (237,0 90 )

Cash flows from investing activitiesIn v estm en t in sub sidiary - - (841 ,60 0 ) (3,362)Purch ases ofpropertyan d equipm en t 9 (3,299,720 ) (1 3,446) (1 1 ,1 55,41 8) (44,566)Purch ases ofin tan gib le assets 1 0 (1 ,0 37,61 2) (4,228) (342,836) (1 ,370 )Proceeds from disposals ofpropertyan d

equipm en t 97,0 74 396 1 99,0 1 3 795

Net cash used in investing activities (4,240 ,258) (1 7,278) (1 2,1 40 ,841 ) (48,50 3)

Cash flows from financing activitiesProceeds from issue ofsh are capital 1 8 - - 1 0 ,0 0 0 ,0 0 0 39,950Proceeds from b orrow in gs 70 ,0 0 0 ,0 0 0 285,250 46,1 26,51 8 1 84,275Repaym en ts ofb orrow in gs an d

sub ordin ated deb t (33,259,768) (1 35,534) (7,0 80 ,0 0 0 ) (28,285)Div iden ds paid - - (7,0 87,762) (28,31 6)

Net cash from financing activities 36,740 ,232 1 49,71 6 41 ,958,756 1 67,624

Net increase/(decrease) in cash and cashequivalents 81 ,227,70 1 331 ,0 0 2 (29,529,0 33) (1 1 7,969)

Cash an d cash equiv alen ts at b egin n in g ofyear 426,255,795 1 ,70 2,891 455,784,828 1 ,820 ,860

Curren cytran slation differen ces - 34,1 0 3 - -

Cash and cash equivalents at end ofyear 50 7,483,496 2,0 67,996 426,255,795 1 ,70 2,891


CANADIA BANK PLC.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2014

1 5

1. BACKGROUND INFORMATION

Can adia Ban k Plc. (“th e Ban k ”) an d its sub sidiary (togeth er referred toas “th e Group”) arein corporated in th e K in gdom ofCam b odia.

Th e Ban k is a com m ercial b an k operatin g in accordan ce w ith th e Cam b odian Law onCom m ercial En terprises an d un derth e superv ision ofth e N ation al Ban k ofCam b odia (“N BC”or “th e Cen tral Ban k ”) , pursuan t to th e Law on Ban k in g an d Fin an cial In stitution s ofCam b odia an d in accordan ce w ith Ban k in g Licen ce N o. 0 5 issued b yth e N BC, sin ce 1 991 .Th e Ban k ’s licen ce w as ren ew ed on 1 8 Octob er 20 0 6 for an in defin ite period follow in g th eN BC’s Prak as N o. B7-0 6-20 7, dated 1 3 Septem b er20 0 6.

Can adia In v estm en t Holdin g Plc. ("CIHP") , a pub lic lim ited com pan y in corporated in th eK in gdom ofCam b odia, is th e ultim ate h oldin g com pan yofth e Ban k .

Th e prin cipal activ ities ofth e Ban k con sist ofth e operation ofcore b an k in g b usin ess an d th eprov ision ofrelated fin an cial serv ices th rough th e Ban k ’s h ead office an d v arious b ran ch es inPh n om Pen h an d in th e prov in ces.

Th e Ban k ’s registered office is curren tly located at N o. 31 5, An g Duon g Street, Corn erM on iv on g Boulev ard, Ph n om Pen h , K in gdom of Cam b odia. Th e Ban k h as a total of 53b ran ch es located in Ph n om Pen h an d m ajorprov in ces in Cam b odia.

As at 31 Decem b er20 1 4, th e Group an d th e Ban k h ad a total of2,1 0 8 an d 2,0 91 em ployees,respectiv ely(20 1 3:Group:1 ,638 an d Ban k :1 ,621 em ployees) .

Th e fin an cial statem en ts w ere auth orised an d approv ed for issue b y th e Board ofDirectorson 26 M arch 20 1 5.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Th e sign ifican t accoun tin g policies adopted in th e preparation ofth e fin an cial statem en ts areset out b elow . Th ese policies h av e b een con sisten tly applied to all th e years presen ted,un less oth erw ise stated.

2.1 Basis of preparation

Th e fin an cial statem en ts h av e b een prepared in accordan ce w ith th e guidelin es issued b yth eN ation al Ban k ofCam b odia an d Cam b odian Accoun tin g Stan dards (“CAS”) . In applyin g CAS,th e Group an d th e Ban k also apply th e Cam b odian In tern ation al Fin an cial Reportin gStan dard (“CIFRS”) 7:Financial Instruments: Disclosures. Th e accoun tin g prin ciples appliedm ay differ from gen erally accepted accoun tin g prin ciples adopted in oth er coun tries an djurisdiction s. Th e accom pan yin g fin an cial statem en ts are th erefore n ot in ten ded to presen tth e fin an cial position an d results ofoperation s an d cash flow s in accordan ce w ith jurisdiction soth erth an Cam b odia. Con sequen tly, th ese fin an cial statem en ts are addressed on lytoth osew h oare in form ed ab out Cam b odia’s accoun tin g prin ciples, procedures an d practices.

Th e con solidated an d separate fin an cial statem en ts are prepared b ased on th e h istorical costcon v en tion , as m odified b yrev aluation ofav ailab le-for-sale fin an cial assets.

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (con tin ued)

2.1 Basis of preparation (con tin ued)

Th e preparation of fin an cial statem en ts in accordan ce w ith th e guidelin es issued b y th eN ation al Ban k of Cam b odia an d CAS requires th e use of estim ates an d assum ption s th ataffect th e reported am oun ts ofassets an d liab ilities an d disclosure ofcon tin gen t assets an dliab ilities at th e date of fin an cial statem en ts an d th e reported am oun ts of rev en ues an dexpen ses durin g th e reportin g period. Alth ough th ese estim ates are b ased on m an agem en t’sb est k n ow ledge ofcurren t ev en ts an d action s, actual results m ayultim atelydifferfrom th oseestim ates. Th e areas in v olv in g a h igh er degree ofjudgem en t or com plexity, or areas w h ereassum ption s an d estim ates are sign ifican t toth e fin an cial statem en ts are disclosed in N ote 3toth e fin an cial statem en ts.

2.2 Financial reporting framework

On 28 August 20 0 9, th e N ation al Accoun tin g Coun cil ofth e M in istryofEcon om yan d Fin an cean n oun ced th e adoption of Cambodian International Financial Reporting Standards(“CIFRS”) w h ich are b ased on all stan dards pub lish ed b yIn tern ation al Accoun tin g Stan dardBoard (“IASB”) in cludin g oth er in terpretation s an d am en dm en ts toeach stan dard th at m igh tarise in certain circum stan ces, b y addin g th e w ord “Cam b odian ”. Pub licly accoun tab leen tities sh all prepare th eir fin an cial statem en ts in accordan ce w ith CIFRS for accoun tin gperiods b egin n in g on orafter1 Jan uary20 1 2.

Th e N ation al Accoun tin g Coun cil ofth e M in istry ofEcon om y an d Fin an ce, th rough CircularN o. 0 86M oEF.N AC, dated 30 July 20 1 2, h as approv ed b an k s an d fin an cial in stitution s’delayin g th e adoption ofCIFRS un til periods b egin n in g on orafter1 Jan uary20 1 6.

Th e first fin an cial statem en ts ofth e Ban k th at w ill b e prepared un derCIFRS are forth e yearen din g 31 Decem b er 20 1 6. CAS, th e curren t accoun tin g stan dard used, is differen t fromCIFRS in m an y areas. Hen ce, th e adoption of CIFRS w ill h av e sign ifican t im pact on th efin an cial statem en ts ofth e Ban k .

2.3 Basis of consolidation

Th e con solidated fin an cial statem en ts in clude th e fin an cial statem en ts of th e Ban k an d itssub sidiarym ade up toth e en d ofth e fin an cial year. A sub sidiaryis a com pan yin w h ich th eBan k h as pow ertoexercise con trol ov erth e fin an cial an d operatin g policies ofth e en terprisesoas toob tain b en efits from its activ ities.

Th e sub sidiary is con solidated usin g th e acquisition m eth od of accoun tin g. Un der th eacquisition m eth od ofaccoun tin g, th e results ofth e sub sidiaryacquired ordisposed ofdurin gth e yearare in cluded from th e date ofacquisition an d up toth e date ofdisposal. At th e dateofacquisition , th e fairv alues ofth e sub sidiary’s n et assets are determ in ed an d th ese v aluesare reflected in th e con solidated fin an cial statem en ts.

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2.3 Basis of consolidation (con tin ued)

In tercom pan y tran saction s, b alan ces an d un realised gain or loss arisin g from in tercom pan ytran saction s are elim in ated an d th e con solidated fin an cial statem en ts reflect extern altran saction s on ly. Losses resultin g from in tra-group tran saction s, w h ich in dicate anim pairm en t loss, w ill b e recogn ised in th e con solidated fin an cial statem en ts. Con solidatedfin an cial statem en ts are prepared usin g un iform accoun tin g policies forlik e tran saction s an doth erev en ts in sim ilarcircum stan ces. Th e gain or loss on disposal ofa sub sidiary, w h ich isth e differen ce b etw een n et disposal proceeds an d th e Group’s sh are ofits n et assets as ofth e date ofdisposal, is recogn ised in th e con solidated in com e statem en t.

2.4 Investment in subsidiary

In v estm en t in sub sidiary, w h ich is elim in ated on con solidation , is stated at cost. On disposalof such in v estm en t, th e differen ce b etw een th e n et disposal proceeds an d its carryin gam oun ts is recogn ised as th e gain orloss on disposal in th e in com e statem en t ofth e Ban k .

2.5 Foreign currencies

(i) Functional and presentation currency

Item s in cluded in th e fin an cial statem en ts ofth e Ban k are m easured usin g th e curren cy ofth e prim ary econ om ic en v iron m en t in w h ich th e Ban k operates (‘th e fun ction al curren cy’) .Th e fin an cial statem en ts are presen ted in Un ited States dollars (“US$ ”) , w h ich is th e Ban k ’sfun ction al an d presen tation curren cy.

Forth e sole regulatorypurpose ofcom plyin g w ith Prak as N o. B7-0 7-1 64 dated 1 3 Decem b er20 0 7 ofth e N BC, a tran slation in toK h m er Riel is prov ided for th e b alan ce sh eets, in com estatem en ts, statem en ts ofch an ges in equity, cash flow statem en ts an d n otes toth e fin an cialstatem en ts as at an d for th e year en ded 31 Decem b er 20 1 4 usin g th e exch an ge ratepub lish ed b yth e N BC as at th e reportin g date, w h ich w as US$ 1 equal toK h m erRiel (“K HR”)4,0 75 (31 Decem b er 20 1 3: US$ 1 equal to K HR 3,995) . Such tran slated am oun ts areun audited an d sh ould n ot b e con strued as represen tation s th at th e US$ am oun ts represen t,orh av e b een orcould b e, con v erted in toK h m erRiel at th at oran yoth errate.

(ii) Transactions and balances

Tran saction s in curren cies oth er th an US$ are tran slated in to US$ at th e exch an ge ratesprev ailin g at th e tran saction dates. Foreign exch an ge gain s an d losses resultin g from th esettlem en t of such tran saction s an d from th e tran slation of m on etary assets an d liab ilitiesden om in ated in curren cies oth erth an US$ at th e year-en d exch an ge rates, are recogn ised inth e in com e statem en t.

2.6 Cash and cash equivalents

Forth e purposes ofth e cash flow statem en ts, cash an d cash equiv alen ts com prise b alan cesw ith origin al m aturityofth ree m on th s or less from th e date ofacquisition , in cludin g cash onh an d, th e n on -restricted b alan ce w ith th e N BC an d b alan ces w ith oth erb an k s.

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2.7 Loans and advances

All loan s an d adv an ces are stated in th e b alan ce sh eet at outstan din g prin cipal, n et ofun am ortised loan com m itm en t fees less an yam oun ts w ritten offan d allow an ce forlosses onloan s an d adv an ces.

Loan s are w ritten -offw h en th ere is n orealistic prospect ofrecov ery. Recov eries ofloan s an dadv an ces prev iously w ritten -off, or prov ided for, decrease th e am oun t of th e prov ision forloan losses in th e in com e statem en t.

Loan s an d adv an ces classified as sub stan dard, doub tful or loss are con sidered tob e n on -perform in g loan s.

2.8 Allowance for losses on loans and advances

Allow an ce forlosses on loan s an d adv an ces is m ade w ith regard tospecific risk s an d relatetoth ose loan s an d adv an ces th at h av e b een in div iduallyrev iew ed an d specificallyiden tifiedas special m en tion , sub -stan dard, doub tful or loss. In addition , a gen eral prov ision is alsom ain tain ed forloan s classified as n orm al.

Th e Ban k follow s th e m an datorycredit classification an d prov ision in g as required b yPrak asB7-0 9-0 74, dated 25 Feb ruary 20 0 9, issued b y th e N BC. Th e Prak as requires com m ercialb an k s toclassifyth eirloan s, adv an ces an d sim ilarassets in tofiv e classes an d th e m in im umm an datory lev el of specific prov ision in g is prov ided, depen din g on th e classificationcon cern ed an d regardless ofth e assets pledged as collateral as follow s:

Classification Rate ofprovision (%)

Gen eral prov ision :N orm al 1

Specific prov ision :Special m en tion 3Sub -stan dard 20Doub tful 50Loss 1 0 0

2.9 Other credit-related commitments

In th e n orm al course of b usin ess, th e Group an d th e Ban k en ter in to oth er credit-relatedcom m itm en ts in cludin g loan com m itm en ts, letters ofcredit an d guaran tees. Th e accoun tin gpolicy an d prov ision m eth odology are sim ilar toth ose for origin ated loan s as n oted ab ov e.Specific prov ision s are raised again st oth er credit-related com m itm en ts w h en losses arecon sidered prob ab le.

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2.10 Available-for-sale financial assets

Av ailab le-for-sale fin an cial assets are n on -deriv ativ es th at are eith er design ated in th iscategoryorn ot classified in an yofth e oth ercategories.

Av ailab le-for-sale fin an cial assets are in itiallyrecogn ised at fairv alue plus tran saction costs.Th e ch an ges in th e fair v alue ofav ailab le-for-sale fin an cial assets are recogn ised in equityun til th e fin an cial asset is sold or im paired. At th is tim e, th e cum ulativ e gain s or lossesprev iouslyrecogn ised in th e equityare recogn ised in th e in com e statem en t.

Th e Group assesses at th e en d ofeach reportin g period w h eth erth ere is ob jectiv e ev iden ceth at a fin an cial asset orgroup offin an cial assets is im paired. A fin an cial asset ora group offin an cial assets is im paired an d im pairm en t losses are in curred on ly if th ere is ob jectiv eev iden ce of im pairm en t as a result of on e or m ore ev en ts th at occurred after th e in itialrecogn ition ofth e asset (a ‘loss ev en t’) an d th at loss ev en t (orev en ts) h as an im pact on th eestim ated future cash flow s of th e fin an cial asset or group of fin an cial assets th at can b ereliab lyestim ated.

2.11 Property and equipment

Property an d equipm en t are stated at cost less accum ulated depreciation . Historical costin cludes expen diture th at is directlyattrib utab le toth e acquisition ofth e asset item s.

Sub sequen t costs are in cluded in th e asset’s carryin g am oun t or recogn ised as a separateasset, as appropriate, on lyw h en it is prob ab le th at th e future econ om ic b en efits associatedw ith th e item w ill flow toth e Group an d th e Ban k an d th e cost ofth e item can b e m easuredreliab ly. A ll oth er repairs an d m ain ten an ce are ch arged toth e in com e statem en t durin g th eyearin w h ich th eyare in curred.

Freeh old lan d an d con struction in progress are n ot depreciated. Depreciation ofpropertyan dequipm en t assets is calculated usin g th e follow in g m eth ods an d rates:

Buildin gs – straigh t-lin e 5%Veh icles – declin in g 25%Office equipm en t – declin in g 25%Furn iture an d fixtures – declin in g 25%Com puters an d IT equipm en t – declin in g 50 %

An asset’s carryin g am oun t is w ritten -dow n im m ediately to its recov erab le am oun t if th easset’s carryin g am oun t is greaterth an its estim ated recov erab le am oun t.

Gain s an d losses on disposals recogn ised in th e in com e statem en t are determ in ed b ycom parin g th e proceeds an d th e carryin g am oun t ofth e disposed propertyan d equipm en t.

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2.12 Intangible assets

In tan gib le assets, w h ich com prise acquired com putersoftw are licen ces an d related cost, arestated at cost less accum ulated am ortisation an d im pairm en t loss. Acquired com putersoftw are is capitalised on th e b asis ofth e costs in curred toacquire th e specific softw are an db rin g it to use. Th ese costs are am ortised at th e rate of 50 % usin g th e declin in g b alan cem eth od.

Costs associated w ith m ain tain in g com puter softw are program s are recogn ised as expen sew h en in curred.

2.13 Impairment of non-financial assets

Assets th at h av e an in defin ite useful life are n ot sub ject to am ortisation an d are testedan n uallyforim pairm en t. Assets th at are sub ject toam ortisation ordepreciation are rev iew edfor im pairm en t w h en ev er ev en ts or ch an ges in circum stan ces in dicate th at th e carryin gam oun t m ayn ot b e recov erab le. Im pairm en t loss is recogn ised forth e am oun t b yw h ich th easset’s carryin g am oun t exceeds its recov erab le am oun t. Th e recov erab le am oun t is th eh igh erofan asset’s fairv alue less costs tosell an d its v alue in use.

A n y im pairm en t loss is ch arged to th e in com e statem en t in th e year in w h ich it arises.Rev ersal ofan im pairm en t loss is recogn ised in th e in com e statem en t toth e exten t th at th easset’s carryin g am oun t does n ot exceed th e carryin g am oun t th at w ould h av e b eendeterm in ed, n et ofdepreciation an d am ortisation , h ad n oim pairm en t loss b een recogn ised.

2.15 Provision for staff gratitude

Th e Ban k prov ides its em ployees w ith retirem en t an d resign ation b en efits. At th e age ofretirem en t, th e retired em ployee w ill b e giv en com pen sation b ased on th e n um b er of fullyear’s serv ice ren dered m ultiplied b yth e fin al m on th ’s salary. An em ployee w h oh as w ork edfor th e Ban k for tw o years or m ore is en titled upon resign ation to a lum p sum paym en trepresen tin g th e em ployee’s fin al m on th ’s salary m ultiplied b y th e n um b er of full years’serv ice ren dered. Th e paym en t of em ploym en t b en efits is sub ject to th e discretion of th eBan k ’s m an agem en t.

Th e Ban k recogn ises th e prov ision for th e em ploym en t b en efits in th e fin an cial statem en ts,w h ich is calculated forem ployees w h oare en titled toreceiv e th is b en efit.

2.16 Interest income and expense

In terest earn ed on loan s an d adv an ces, b alan ces w ith th e N BC an d oth er b an k s arerecogn ised on an accrual b asis, except w h ere serious doub t exists as toth e collectab ilityofloan s an d adv an ces, in w h ich case n o in terest in com e is recogn ised. Th e policy on th esuspen sion of in terest is in con form ity w ith th e N BC’s guidelin es on th e suspen sion ofin terest on n on -perform in g loan s an d prov ision forloan losses.

In terest expen se on deposits from b an k s, custom ers, b orrow in gs an d sub ordin ated deb t arerecogn ised on an accrual b asis.

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2.17 Fee and commission income

Fee an d com m ission in com e is recogn ised on an accrual b asis w h en th e serv ice h as b eenprov ided. Fee an d com m ission in com e com prises in com e receiv ed from in w ard an d outw ardb an k tran sfers, loan processin g, b an k guaran tees, letters of credit, ATM /Visa an dM asterCard ch arges. Loan com m itm en t fees are deferred an d recogn ised tooth erin com e inth e in com e statem en t ov er th e loan term period. Un am ortised loan com m itm en t fees arepresen ted as a deduction from loan s an d adv an ces.

2.18 Operating leases

Leases in w h ich a sign ifican t portion ofth e risk s an d rew ards ofow n ersh ip are retain ed b yth e leaser are classified as operatin g leases. Paym en ts m ade un der operatin g leases arech arged toth e in com e statem en t on a straigh t-lin e b asis ov erth e period ofth e lease.

2.19 Provisions

Prov ision s are recogn ised w h en th e Group or th e Ban k h as a presen t legal or con structiv eob ligation as a result ofpast ev en ts, w h en it is prob ab le th at an outflow ofresources w ill b erequired tosettle th e ob ligation an d th e am oun t can b e reliab lyestim ated.

W h en th ere are a n um b erofsim ilarob ligation s, th e lik elih ood th at an outflow w ill b e requiredin settlem en t is determ in ed b ycon siderin g th e class ofob ligation s as a w h ole.

Prov ision s are m easured at th e presen t v alue ofth e expen ditures expected tob e required tosettle th e ob ligation usin g a pre-tax discoun t rate th at reflects curren t m ark et assessm en ts ofth e tim e v alue ofm on eyan d th e risk s specific toth e ob ligation . Th e in crease in th e prov isiondue toth e passage oftim e is recogn ised as in terest expen se.

2.20 Current and deferred income tax

Current income tax

Curren t in com e tax assets an d liab ilities forth e curren t an d priorperiods are m easured at th eam oun ts expected tob e recov ered from orpaid toth e taxation auth orities. Th e tax rates an dtax law s used tocom pute th e am oun t are th ose th at are en acted at th e b alan ce sh eet date.

Deferred income tax

Deferred in com e tax is prov ided usin g th e b alan ce sh eet liab ility m eth od on tem porarydifferen ces at th e b alan ce sh eet date b etw een th e tax b ase ofassets an d liab ilities an d th eircarryin g am oun t forfin an cial reportin g purposes.

Deferred in com e tax liab ilities are recogn ised for all taxab le tem porary differen ces, exceptw h ere th e deferred in com e tax liab ilityarises from th e in itial recogn ition ofan asset orliab ilityin a tran saction th at at th e tim e of th e tran saction affects n eith er th e accoun tin g profit n ortaxab le profit orloss.

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2.20 Current and deferred income tax (con tin ued)

Deferred income tax (continued)

Deferred in com e tax assets are recogn ised for all deductib le tem porary differen ces to th eexten t th at it is prob ab le th at future taxab le profits w ill b e av ailab le again st w h ich th esedifferen ces can b e utilised, except w h ere th e deferred tax arises from th e in itial recogn ition ofan asset or liab ility in a tran saction w h ich at th e tim e of th e tran saction affects n eith er th eaccoun tin g profit n ortaxab le profit orloss.

Th e carryin g am oun t ofdeferred in com e tax assets is rev iew ed at each b alan ce sh eet datean d reduced toth e exten t th at it is n olon ger prob ab le th at sufficien t taxab le profits w ill b eav ailab le toallow all orpart ofth e assets tob e recov ered. Un recogn ised deferred in com e taxassets are re-assessed at each b alan ce sh eet date an d are recogn ised toth e exten t th at ith as b ecom e prob ab le th at future taxab le profit w ill allow th e deferred tax assets to b erecov ered.

3. CRITICAL ACCOUNTING ESTIMATES, ASSUMPTIONS AND JUDGEMENTS

Th e Group an d th e Ban k m ak e estim ates, assum ption s an d judgem en ts th at affect th ereported am oun ts of assets an d liab ilities. Estim ates, assum ption s an d judgem en ts arecon tin ually ev aluated an d are b ased on h istorical experien ce an d oth er factors, in cludin gexpectation s offuture ev en ts th at are b eliev ed tob e reason ab le un derth e circum stan ces.

(a) Impairment losses on loans and advances

Th e Ban k follow s th e m an datorycredit classification an d prov ision in g as required b yPrak asN o. B7-0 9-0 74, dated 25 Feb ruary20 0 9, on asset classification an d prov ision in g in b an k in gan d fin an cial in stitution s, issued b yth e N BC. Th e N BC requires com m ercial b an k s toclassifyth eir loan s, adv an ces an d sim ilarassets in tofiv e classes an d th e m in im um m an datorylev elofprov ision in g is prov ided, depen din g on th e classification con cern ed an d regardless ofth eassets pledged as collateral. Forth e purposes ofloan classification , th e Group an d th e Ban ktak e in toaccoun t all relev an t factors th at m ayaffect th e coun terparties’repaym en t ab ilities.

(b) Provision for staff gratitude

Th e Ban k prov ides its em ployees w ith stage staffgratitude b en efits. At th e age ofretirem en tor resign ation , em ployee is giv en b en efits b ased on th e n um b er of full years of serv icesm ultiplied b y th e fin al m on th ’s salary. Th e Ban k m ak es prov ision for staff gratitude in th efin an cial statem en ts, w h ich is calculated forem ployees w h oare en titled toreceiv e th e b en efitat th e reportin g period. M an agem en t con siders th at th is is in lin e w ith in dustrypractice an drepresen ts th e Ban k ’s ob ligation at th e reportin g date.

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3. CRITICAL ACCOUNTING ESTIMATES, ASSUMPTIONS AND JUDGEMENTS (con tin ued)

(c) Taxes

Taxes are calculated on th e b asis of th e curren t in terpretation of th e tax regulation s.How ev er, th ese regulation s are sub ject toperiodic v ariation an d th e ultim ate determ in ation oftax expen ses w ill b e m ade follow in g in spection b yth e Gen eral Departm en t ofTaxation .

W h ere th e fin al tax outcom e ofth ese m atters is differen t from th e am oun ts th at w ere in itiallyrecorded, such differen ces w ill h av e an im pact on th e prov ision forin com e tax an d deferredtax in th e yearin w h ich such determ in ation is m ade.

(d) Impairment of available-for-sale equity investments

Th e Group follow s th e guidan ce ofCIAS 39 todeterm in e w h en an av ailab le-for-sale equityin v estm en t is im paired. Th is determ in ation requires sign ifican t judgem en t. In m ak in g th isjudgem en t, th e Group ev aluates, am on g oth er factors, th e duration an d exten t tow h ich th efair v alue of an in v estm en t is less th an its cost;an d th e fin an cial h ealth of an d sh ort-termb usin ess outlook forth e in v estee, in cludin g factors such as in dustryan d sectorperform an ce,ch an ges in tech n ologyan d operation al an d fin an cin g cash flow .

Th e m an agem en t con siders th e declin e in fair v alue is n ot prolon ged an d th e Cam b odiastock m ark et is at th e earlystage ofdev elopm en t.

If all of th e declin es in fair v alue b elow cost w ere con sidered sign ifican t or prolon ged, th eGroup w ould sufferan addition al loss ofUS$ 1 1 1 ,446 in its 20 1 4 fin an cial statem en ts, b ein gth e tran sfer ofth e accum ulated fair v alue adjustm en ts recogn ised in equityon th e im pairedav ailab le-for-sale fin an cial assets toth e in com e statem en t.

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4. BALANCES WITH THE NBCGroup Bank

2014 2013 2014 2013US$ Million Riel US$ Million Riel US$ Million Riel US$ Million Riel

Curren t accoun ts 1 71 ,848,239 70 0 ,282 1 57,758,551 630 ,245 1 71 ,848,239 70 0 ,282 1 57,758,551 630 ,245Term deposits (i) 1 23,0 0 0 ,0 0 0 50 1 ,225 - - 1 23,0 0 0 ,0 0 0 50 1 ,225 - -Capital guaran tee

deposits (ii) 1 4,981 ,595 61 ,0 50 1 4,0 0 1 ,252 55,935 1 4,0 0 0 ,0 0 0 57,0 50 1 3,0 0 0 ,0 0 0 51 ,935Reserv e deposits (iii) 20 0 ,1 22,863 81 5,50 0 1 60 ,250 ,863 640 ,20 3 20 0 ,1 22,863 81 5,50 0 1 60 ,250 ,864 640 ,20 3

50 9,952,697 2,0 78,0 57 332,0 1 0 ,666 1 ,326,383 50 8,971 ,1 0 2 2,0 74,0 57 331 ,0 0 9,41 5 1 ,322,383

CANADIA BANK PLC.


25

4. BALANCES WITH THE NBC (con tin ued)

(i) Term Deposits

Term Deposits w ith N BC ofUS$ 1 23 M illion in clude US$ 1 8 M illion ofN egotiab le Certificate ofDeposits (“N CDs”) . Th e N CDs h av e th ree-m on th term an d b ear in terest rate of 0 .1 7% peran n um . Th ese N CDs are placed to secure th e N BC’s ov erdraft facility for liquiditycon tin gen cy in accordan ce w ith Prak as B5-0 1 4-230 on Facility Prov ision to M em b er ofClearin g House ofth e N ation al Ban k ofCam b odia. As at 31 Decem b er20 1 4, th e Ban k h asyet utilised th e ov erdraft facility.

(ii) Capital guarantee deposits

Un der th e N BC Prak as N o. B7-0 1 -1 36, dated 1 5 Octob er 20 0 1 , b an k s are required tom ain tain a capital guaran tee deposit of 1 0 % of sh are capital. Th is deposit is refun dab lesh ould th e Ban k v olun tarilycease its operation s in Cam b odia an d it is n ot av ailab le foruse inth e Ban k ’s day-to-dayoperation s.

In com plian ce w ith th e SECC’s Prak as N o. 0 0 9 on th e licen sin g of securities firm s an dsecurities represen tativ es, th e Sub sidiaryis required toplace a statutorydeposit in toSECC’sb an k accoun t m ain tain ed w ith th e N BC am oun tin g to Riel 4 b illion for operatin g as asecurities un derw riterin Cam b odia.

(iii) Reserve deposits

Reserv e deposits represen t th e m in im um reserv e requirem en t calculated at 8% (20 1 3:8% )for Riel an d 1 2.5% (20 1 3:1 2.5% ) for oth er curren cies ofth e total am oun t ofdeposits fromcustom ers an d b orrow in gs.

(iv) Interest rates

Curren t accoun ts an d reserv e deposits don ot earn in terest. A n n ual in terest rates on oth erb alan ces w ith th e N BC are as follow s:

2014 2013Term deposits 0 .0 7% -0 .0 8% 0 .0 9% -0 .1 0 %Capital guaran tee deposits 0 .0 8% 0 .1 2%

CANADIA BANK PLC.


26

5. BALANCES WITH OTHER BANKS

Group and Bank2014 2013

US$ Million Riel US$ Million Riel

Local b an k s:Curren t accoun ts 1 8,81 9,264 76,689 23,429,285 93,60 0Sav in gs accoun ts 65,1 30 265 45,337 1 81Term deposits 70 ,0 34,942 285,392 46,790 ,1 40 1 86,927

Ov erseas b an k s:Curren t accoun ts (i) 1 25,833,366 51 2,771 1 24,843,81 0 498,751Term deposits 1 1 ,583,495 47,20 3 1 0 ,1 0 7,974 40 ,381

226,336,1 97 922,320 20 5,21 6,546 81 9,840

(i) Security requirements:

Th e Group an d th e Ban k h av e pledged part ofth eir b alan ces w ith oth er b an k s as securityw ith details as follow s:

2014 2013US$ Million Riel US$ Million Riel

Visa Card operation s 431 ,523 1 ,758 431 ,480 1 ,724M asterCard operation s 849 3 740 ,0 0 0 2,956Borrow ed fun ds ofth e facilities

(N ote 1 5) 84,466,20 2 344,20 0 62,1 66,451 248,355

84,898,574 345,961 63,337,931 253,0 35

(ii) Annual interest rates:

2014 2013

Curren t accoun ts N il -1 .1 5% N il -1 .1 5%Sav in gs accoun ts 1 % 1 %Term deposits 0 .1 4% -3.60 % 0 .1 4% -3.60 %

CANADIA BANK PLC.


27

6. LOANS AND ADVANCES



Com m ercial loan s:Sh ort-term loan s 693,721 ,1 1 4 2,826,91 4 60 6,844,844 2,424,345Ov erdrafts 20 1 ,423,990 820 ,80 3 1 45,81 3,544 582,525Lon g-term loan s 367,621 ,569 1 ,498,0 58 250 ,80 2,427 1 ,0 0 1 ,956M icro-fin an ce loan s 39,0 0 0 1 56

1 ,262,766,673 5,1 45,775 1 ,0 0 3,499,81 5 4,0 0 8,982Con sum erloan s:M ortgage loan s 1 1 1 ,90 4,81 0 456,0 1 2 79,235,283 31 6,545Credit cards 1 ,21 4,499 4,949 3,687,40 7 1 4,731Leasin g 849,742 3,463 1 ,0 51 ,1 24 4,1 99Oth ers 760 ,50 7 3,0 98 1 38,372 552

1 1 4,729,558 467,522 84,1 1 2,1 86 336,0 27

Total gross loan s1 ,377,496,231 5,61 3,297 1 ,0 87,61 2,0 0 1 4,345,0 0 9

Allow an ce forlosses on loan san d adv an ces (42,495,632) (1 73,1 70 ) (39,30 5,662) (1 57,0 26)

Un am ortised loan com m itm en tfees (4,643,991 ) (1 8,924) (3,31 5,51 1 ) (1 3,245)

1 ,330 ,356,60 8 5,421 ,20 3 1 ,0 44,990 ,828 4,1 74,738

CANADIA BANK PLC.


28

6. LOANS AND ADVANCES (con tin ued)

(a) A llow an ce forlosses on loan s an d adv an ces

M ov em en ts in th e allow an ce forlosses on loan s an d adv an ces are as follow s:

Specificprovision

Generalprovision Total

US$ US$ US$

Balan ce at 1 Jan uary20 1 4 29,0 0 8,981 1 0 ,296,681 39,30 5,662Ch arges forth e year 7,724,555 3,1 33,20 8 1 0 ,857,763Recov eries durin g th e year (4,30 6,0 64) (81 5,0 29) (5,1 21 ,0 93)W ritten -off (2,546,70 0 ) - (2,546,70 0 )

Balan ce at 31 Decem b er20 1 4 29,880 ,772 1 2,61 4,860 42,495,632

Million Riel equivalent 1 21 ,764 51 ,40 6 1 73,1 70

Balan ce at 1 Jan uary20 1 3 23,394,559 8,30 3,1 80 31 ,697,739Ch arges forth e year 1 3,1 34,951 2,828,292 1 5,963,243Recov eries durin g th e year (6,796,61 0 ) (834,791 ) (7,631 ,40 1 )W ritten -off (723,1 61 ) - (723,1 61 )Exch an ge differen ces (758) - (758)

Balan ce at 31 Decem b er20 1 3 29,0 0 8,981 1 0 ,296,681 39,30 5,662

Million Riel equivalent 1 1 5,891 41 ,1 35 1 57,0 26

(b ) Byin dustry


Fin an cial in stitution s 5,627,30 5 22,931 1 ,758,1 52 7,0 24Serv ice 395,51 5,220 1 ,61 1 ,725 298,1 52,1 33 1 ,1 91 ,1 1 8M ortgage 66,1 34,1 1 8 269,497 63,423,30 1 253,376Buildin g an d con struction 21 1 ,1 1 3,40 9 860 ,287 1 83,939,746 734,839W h olesale an d retail 344,483,297 1 ,40 3,769 264,673,31 5 1 ,0 57,370Im port an d export 82,60 7,1 0 6 336,624 88,862,578 355,0 0 6Agriculture 1 72,767,1 0 1 70 4,0 26 1 1 9,60 5,855 477,825Oth ers 99,248,675 40 4,439 67,1 96,921 268,451

1 ,377,496,231 5,61 3,298 1 ,0 87,61 2,0 0 1 4,345,0 0 9

CANADIA BANK PLC.


29


(c) Byloan classification


N orm al:Secured 1 ,260 ,332,0 71 5,1 35,853 1 ,0 29,337,964 4,1 1 2,20 5Un secured 1 ,1 53,821 4,70 2 330 ,1 74 1 ,31 9

Special m en tion :Secured 54,0 92,1 0 6 220 ,425 3,695,660 1 4,764Un secured - - - -

Sub -stan dard:Secured 33,787,223 1 37,683 24,0 20 ,652 95,963Un secured - - - -

Doub tful:Secured 1 3,260 ,891 54,0 38 1 2,267,1 39 49,0 0 7Un secured - - - -

Loss:Secured 1 4,835,21 5 60 ,454 1 5,284,845 61 ,0 63Un secured 34,90 4 1 43 2,675,567 1 0 ,688

1 ,377,496,231 5,61 3,298 1 ,0 87,61 2,0 0 1 4,345,0 0 9

(d) Bym aturity


N ot laterth an 1 year 984,487,31 6 4,0 1 1 ,786 81 6,259,40 9 3,260 ,956Laterth an 1 yearan d n olater

th an 3 years 1 70 ,874,385 696,31 3 1 53,497,277 61 3,222Laterth an 3 years an d n o

laterth an 5 years 57,637,1 0 7 234,871 22,81 0 ,636 91 ,1 28Laterth an 5 years 1 64,497,423 670 ,328 95,0 44,679 379,70 3

1 ,377,496,231 5,61 3,298 1 ,0 87,61 2,0 0 1 4,345,0 0 9

CANADIA BANK PLC.


30


(e) Bylarge exposure


Large exposure 245,1 75,972 999,0 92 20 0 ,377,454 80 0 ,50 8N on -large exposure 1 ,1 32,320 ,259 4,61 4,20 6 887,234,547 3,544,50 1

1 ,377,496,231 5,61 3,298 1 ,0 87,61 2,0 0 1 4,345,0 0 9

Th e large exposure is defin ed b y th e N BC as th e ov erall credit exposure toan y in div idualb en eficiaryth at exceeds 1 0 % ofth e Ban k ’s n et w orth .

(f) Byrelated parties


Related parties 51 3,244 2,0 91 737,888 2,948N on -related parties 1 ,376,982,987 5,61 1 ,20 7 1 ,0 86,874,1 1 3 4,342,0 61

1 ,377,496,231 5,61 3,298 1 ,0 87,61 2,0 0 1 4,345,0 0 9

(g) In terest rates

An n ual in terest rates durin g th e yearare as follow s:

2014 2013

Credit cards 1 8% -21 .96% 1 8% -21 .96%M icro-fin an ce loan s 1 4.40 % 1 4.40 %Lon g-term loan s 5.0 0 % -1 9.20 % 5.0 0 % -1 9.20 %Leasin g 8.0 4% -1 4.40 % 8.0 4% -1 4.40 %Sh ort-term loan s -b usin ess 6.0 0 % -21 .60 % 6.0 0 % -21 .60 %Sh ort-term loan s -con sum er 24% -Ov erdrafts -con sum er 30 % -Ov erdrafts -b usin ess 4.50 % -1 8.0 0 % 4.50 % -1 8.0 0 %M ortgage loan s 7.0 0 % -1 2.0 0 % 7.0 0 % -1 2.0 0 %

CANADIA BANK PLC.


31

7. AVAILABLE-FOR-SALE FINANCIAL ASSETS

Group2014 2013


At 1 Jan uary 3,239,668 1 3,20 2 3,277,228 1 3,0 93Disposals (3,0 0 0 ,0 0 0 ) (1 2,225) - -N et losses tran sfertoequity (54,678) (223) (37,560 ) (1 51 )

At 31 Decem b er 1 84,990 754 3,239,668 1 2,942

Less n on -curren t portion - - - -

Curren t portion 1 84,990 754 3,239,668 1 2,942

Av ailab le-for-sale fin an cial assets in clude th e follow in g:


Listed securities:Equitysecurities 1 84,990 754 239,668 957

Un listed securities:Deb t securities * - - 3,0 0 0 ,0 0 0 1 1 ,985

At 31 Decem b er 1 84,990 754 3,239,668 1 2,942

Th e fairv alue ofequitysecurities is b ased on quoted m ark et prices at th e reportin g date.

Th e fairv alue ofdeb t securities n ot quoted in an yactiv e m ark et is b ased on th e redem ptionofferletterissued b yth e issuerofth e b on ds th e Group acquired an d h eld.

* Th e deb t securities are fixed in terest b on ds issued b y a priv ate com pan y an d m aturedin 20 1 4. Th e fixed in terest b on ds b earan n ual in terest at rate of5% peran n um . (20 1 3:5% ) .

N on e ofth ese fin an cial assets is eith erpast due orim paired.

8. INVESTMENT IN SUBSIDIARY

In Feb ruary20 1 0 , Can a Securities Ltd. w as in corporated as a w h olly-ow n ed sub sidiaryofth eBan k . Th e Sub sidiary receiv ed its securities un derw ritin g licen ce from th e SecuritiesExch an ge Com m ission of Cam b odia on 20 Octob er 20 1 0 . Th e prin cipal activ ities of th eSub sidiary are to prov ide securities-related serv ices; th ese in clude, b ut are n ot lim ited to,securities un derw ritin g, dealin g, b rok erage an d in v estm en t-related serv ices. On 23 Feb ruary20 1 3, th e Ban k in jected addition al capital of US$ 841 ,60 0 to in crease its in v estm en t insub sidiarytoUS$ 1 1 ,0 0 0 ,0 0 0 .

CANADIA BANK PLC.


32

9. PROPERTY AND EQUIPMENT

Group2014

Freeholdland Buildings

Constructionin progress

Furnitureand

fixturesOffice

equipment

Computerand IT

equipment Vehicles TotalUS$ US$ US$ US$ US$ US$ US$ US$

CostAt 1 Jan uary20 1 4 7,582,430 43,220 ,40 5 - 5,648,0 87 6,381 ,20 0 5,1 24,999 4,1 75,692 72,1 32,81 3Addition s - 756,91 1 20 5,1 27 40 5,855 270 ,40 4 961 ,1 60 70 4,751 3,30 4,20 8Disposals - - - (69,41 9) (21 9,923) (1 71 ,71 8) (334,0 0 2) (795,0 62)

At 31 Decem b er20 1 4 7,582,430 43,977,31 6 20 5,1 27 5,984,523 6,431 ,681 5,91 4,441 4,546,441 74,641 ,959

Accumulated depreciationAt 1 Jan uary20 1 4 - 7,422,359 - 3,557,40 3 4,0 0 4,967 4,0 1 7,256 2,1 93,590 21 ,1 95,575Depreciation ch arges - 2,1 66,971 - 553,70 1 61 0 ,70 8 747,980 532,394 4,61 1 ,754Disposals - - - (62,276) (1 90 ,71 5) (1 70 ,1 43) (234,345) (657,479)

At 31 Decem b er20 1 4 - 9,589,330 - 4,0 48,828 4,424,960 4,595,0 93 2,491 ,639 25,1 49,850

Net book value 7,582,430 34,387,986 20 5,1 27 1 ,935,695 2,0 0 6,721 1 ,31 9,348 2,0 54,80 2 49,492,1 0 9

Million Riel equivalent 30 ,898 1 40 ,1 31 837 7,888 8,1 77 5,376 8,373 20 1 ,680

CANADIA BANK PLC.


33

9. PROPERTY AND EQUIPMENT(con tin ued)

Group2013



Furnitureand

fixturesOffice

equipment

Computerand IT


CostAt 1 Jan uary20 1 3 6,841 ,287 34,746,397 1 91 ,720 5,545,822 5,946,862 4,387,428 4,1 33,1 33 61 ,792,649Addition s 741 ,1 43 8,351 ,50 8 1 22,50 0 1 0 7,378 463,751 739,0 81 631 ,455 1 1 ,1 56,81 6Tran sfers - 1 22,50 0 (1 22,50 0 ) - - - - -Disposals - - (1 91 ,720 ) (5,1 1 3) (29,41 3) (1 ,51 0 ) (588,896) (81 6,652)

At 31 Decem b er20 1 3 7,582,430 43,220 ,40 5 - 5,648,0 87 6,381 ,20 0 5,1 24,999 4,1 75,692 72,1 32,81 3

Accumulated depreciationAt 1 Jan uary20 1 3 - 5,641 ,51 6 - 2,881 ,91 0 3,31 8,936 3,348,0 24 1 ,998,0 0 4 1 7,1 88,390Depreciation ch arges - 1 ,780 ,843 - 680 ,1 50 71 0 ,1 1 2 670 ,749 589,550 4,431 ,40 4Disposals - - - (4,657) (24,0 81 ) (1 ,51 7) (393,964) (424,21 9)

At 31 Decem b er20 1 3 - 7,422,359 - 3,557,40 3 4,0 0 4,967 4,0 1 7,256 2,1 93,590 21 ,1 95,575

Net book value 7,582,430 35,798,0 46 - 2,0 90 ,684 2,376,233 1 ,1 0 7,743 1 ,982,1 0 2 50 ,937,238

Million Riel equivalent 30 ,292 1 43,0 1 3 - 8,352 9,493 4,425 7,91 9 20 3,494

CANADIA BANK PLC.


34

9 . PROPERTY AND EQUIPMENT(con tin ued)

Bank2014



Furnitureand

fixturesOffice

equipment

Computerand IT


CostAt 1 Jan uary20 1 4 7,582,430 43,220 ,40 5 - 5,61 2,872 6,381 ,20 0 5,0 47,0 53 4,1 23,1 92 71 ,967,1 52Addition s - 756,91 1 20 5,1 27 40 5,567 270 ,40 4 956,960 70 4,751 3,299,720Disposals - - - (69,41 9) (21 9,923) (1 71 ,71 8) (334,0 0 2) (795,0 62)

At 31 Decem b er20 1 4 7,582,430 43,977,31 6 20 5,1 27 5,949,0 20 6,431 ,681 5,832,295 4,493,941 74,471 ,81 0

Accumulated depreciationAt 1 Jan uary20 1 4 - 7,422,359 - 3,541 ,71 5 4,0 0 4,967 3,957,970 2,1 70 ,620 21 ,0 97,631Depreciation ch arges - 2,1 66,971 - 548,747 61 0 ,70 8 736,480 525,0 1 1 4,587,91 7Disposals - - - (62,276) (1 90 ,71 5) (1 70 ,1 43) (234,344) (657,478)

At 31 Decem b er20 1 4 - 9,589,330 - 4,0 28,1 86 4,424,960 4,524,30 7 2,461 ,287 25,0 28,0 70

Net book value 7,582,430 34,387,986 20 5,1 27 1 ,920 ,834 2,0 0 6,721 1 ,30 7,988 2,0 32,654 49,443,740

Million Riel equivalent 30 ,898 1 40 ,1 31 837 7,827 8,1 77 5,330 8,283 20 1 ,483

CANADIA BANK PLC.


35

9 . PROPERTY AND EQUIPMENT (con tin ued)

Bank2013



Furnitureand

fixturesOffice

equipment

Computerand IT


CostAt 1 Jan uary20 1 3 6,841 ,287 34,746,397 1 91 ,720 5,51 0 ,60 7 5,946,862 4,31 0 ,880 4,0 80 ,633 61 ,628,386Addition s 741 ,1 43 8,351 ,50 8 1 22,50 0 1 0 7,378 463,751 737,683 631 ,455 1 1 ,1 55,41 8Tran sfers - 1 22,50 0 (1 22,50 0 ) - - - - -Disposals - - (1 91 ,720 ) (5,1 1 3) (29,41 3) (1 ,51 0 ) (588,896) (81 6,652)

At 31 Decem b er20 1 3 7,582,430 43,220 ,40 5 - 5,61 2,872 6,381 ,20 0 5,0 47,0 53 4,1 23,1 92 71 ,967,1 52

Accumulated depreciationAt 1 Jan uary20 1 3 - 5,641 ,51 6 - 2,872,730 3,31 8,936 3,30 7,398 1 ,984,879 1 7,1 25,459Depreciation ch arges - 1 ,780 ,843 - 673,642 71 0 ,1 1 2 652,0 89 579,70 5 4,396,391Disposals - - - (4,657) (24,0 81 ) (1 ,51 7) (393,964) (424,21 9)

At 31 Decem b er20 1 3 - 7,422,359 - 3,541 ,71 5 4,0 0 4,967 3,957,970 2,1 70 ,620 21 ,0 97,631

Net book value 7,582,430 35,798,0 46 - 2,0 71 ,1 57 2,376,233 1 ,0 89,0 83 1 ,952,572 50 ,869,521

Million Riel equivalent 30 ,292 1 43,0 1 3 - 8,274 9,493 4,351 7,80 1 20 3,224

CANADIA BANK PLC.


36

10. INTANGIBLE ASSETS

Group and Bank2014 2013US$ US$

Cost1 Jan uary 2,746,41 3 2,40 5,577Addition s 1 ,0 37,61 2 342,836Disposals (1 1 3,0 68) (2,0 0 0 )

31 Decem b er 3,670 ,957 2,746,41 3

Accumulated amortisation1 Jan uary 2,291 ,529 2,0 55,841Am ortisation ch arges 468,351 237,688Disposals (1 1 3,0 50 ) (2,0 0 0 )

31 Decem b er 2,646,830 2,291 ,529

Net book value 1 ,0 24,1 27 454,884

Million Riel equivalent 4,1 73 1 ,81 7

11. DEFERRED TAX ASSETS

Group and BankUnamortised Provision for

Provision for commitment accruedstaff gratitude fees bonus Total

US$ US$ US$ US$

2014At 1 Jan uary20 1 4 60 1 ,376 663,1 0 2 272,997 1 ,537,475Recogn ised in th e in com e

statem en t 234,622 265,696 74,1 66 574,484

At 31 Decem b er20 1 4 835,998 928,798 347,1 63 2,1 1 1 ,959

Million Riel equivalent 3,40 7 3,785 1 ,41 4 8,60 6

2013At 1 Jan uary20 1 3 435,1 69 678,1 77 1 89,751 1 ,30 3,0 97Recogn ised in th e in com e

statem en t 1 66,20 7 (1 5,0 75) 83,246 234,378

At 31 Decem b er20 1 3 60 1 ,376 663,1 0 2 272,997 1 ,537,475

Million Riel equivalent 2,40 2 2,649 1 ,0 91 6,1 42

CANADIA BANK PLC.


37

12. OTHER ASSETS

Group Bank2014 2013 2014 2013

US$ Million Riel US$ Million Riel US$ Million Riel US$ Million Riel

Accrued in terest receiv ab les 20 ,792,463 84,729 1 3,1 40 ,80 4 52,498 20 ,792,463 84,729 1 3,1 40 ,80 4 52,498Prepaym en ts 2,492,631 1 0 ,1 57 2,1 71 ,490 8,675 2,468,997 1 0 ,0 61 2,1 36,727 8,536Adv an ces 2,898,662 1 1 ,81 2 1 ,1 53,975 4,61 0 2,896,929 1 1 ,80 5 1 ,1 51 ,757 4,60 1Receiv ab les from card v en dors 1 ,31 1 ,584 5,345 834,797 3,335 1 ,31 1 ,584 5,345 834,797 3,335Supplies 854,80 2 3,483 754,61 1 3,0 1 5 854,80 2 3,483 754,61 1 3,0 1 5Oth ers 1 ,0 95,40 7 4,465 60 3,1 62 2,40 9 1 ,0 95,40 7 4,465 60 3,1 62 2,41 0

29,445,549 1 1 9,991 1 8,658,839 74,542 29,420 ,1 82 1 1 9,888 1 8,621 ,858 74,395

CANADIA BANK PLC.


38

13. DEPOSITS FROM BANKS



Curren t accoun ts 54,466,51 9 221 ,951 32,0 85,692 1 28,1 82Sav in gs accoun ts 32,943,0 98 1 34,243 1 8,423,649 73,60 2Term deposits 1 20 ,736,279 492,0 0 0 79,71 0 ,60 8 31 8,444M argin al deposits 46,858 1 91 45,1 82 1 81

20 8,1 92,754 848,385 1 30 ,265,1 31 520 ,40 9

An n ual in terest rates durin g th e yearare as follow s:

2014 2013

Curren t accoun ts N il -2% N ilSav in gs accoun ts 0 .50 % -0 .75% 0 .50 % -0 .75%Term deposits 1 .0 0 % -4.50 % 1 .0 0 % -3.50 %

M argin al deposits represen t th e aggregate b alan ce of required n on -in terest b earin g cashdeposits from b an k s forletters ofcredit an d guaran tees outstan din g at year-en d.

CANADIA BANK PLC.


39

14 . DEPOSITS FROM CUSTOMERS

Group Bank2014 2013 2014 2013


Curren t accoun ts 1 48,392,1 69 60 4,697 1 0 7,0 34,299 427,60 2 1 52,60 4,689 621 ,864 1 0 8,1 76,0 38 432,1 63Sav in gs accoun ts 566,678,886 2,30 9,21 6 458,392,579 1 ,831 ,278 566,678,886 2,30 9,21 6 458,392,579 1 ,831 ,278Term deposits 920 ,21 3,0 0 5 3,749,868 729,70 4,0 50 2,91 5,1 68 925,51 3,0 0 5 3,771 ,465 735,0 0 4,0 50 2,936,341M argin al deposits 4,235,258 1 7,260 4,926,1 1 9 1 9,680 4,235,258 1 7,260 4,926,1 1 9 1 9,681

1 ,639,51 9,31 8 6,681 ,0 41 1 ,30 0 ,0 57,0 47 5,1 93,728 1 ,649,0 31 ,838 6,71 9,80 5 1 ,30 6,498,786 5,21 9,463

An n ual in terest rates follow :

2014 2013

Curren t accoun ts N il -2.0 0 % N il -2.0 0 %Sav in gs accoun ts 0 .75% -2.0 0 % 0 .75% -2.0 0 %Term deposits 2.0 0 % -5.50 % 2.0 0 % -5.50 %

M argin al deposits represen t th e aggregate b alan ce of required n on -in terest b earin g cash deposits from custom ers for letters of credit an dguaran tees outstan din g at year-en d.

CANADIA BANK PLC.


40

15. BORROWINGS



Ch in a Dev elopm en t Ban kCorporation (i) 46,490 ,0 0 0 1 89,447 30 ,660 ,0 0 0 1 22,487

K fW th rough M oEF (ii) 289,775 1 ,1 81 579,543 2,31 5Ban k ofCh in a (iii) 20 ,0 0 0 ,0 0 0 81 ,50 0 - -In dustrial an d Com m ercial

Ban k ofCh in a (iv ) 34,0 0 0 ,0 0 0 1 38,550 32,80 0 ,0 0 0 1 31 ,0 36

1 0 0 ,779,775 41 0 ,678 64,0 39,543 255,838

(i) Th e Ban k en tered in to a US$ 20 m illion loan facility w ith Ch in a Dev elopm en t Ban kCorporation en tered in 20 1 0 ,for a term of eigh t years. Th ese b orrow in gs b ear an n ualin terest at six-m on th LIBOR plus credit spread of 4.0 0 % . On 5 Septem b er 20 1 3, th eBan k en tered in toan oth er facility agreem en t w ith Ch in a Dev elopm en t Ban k am oun tin gto US$ 30 m illion loan facility, w ith a six-year term an d an n ual in terest of six-m on thLIBOR plus credit spread of4.0 0 % . Based on th e agreem en ts, th e Ban k is required toplace on e-year fixed deposits w ith Ch in a Dev elopm en t Ban k of am oun ts equiv alen t toUS$ 30 m illion (see N ote 5) .

(ii) Represen ts loan s from K reditan stalt fur W iederaufb au (“K fW ”) th rough th e M in istry ofEcon om y an d Fin an ce (“M oEF”) th at resulted from loan an d fin an ce agreem en tsb etw een th e Ban k , K fW an d M oEF, dated 23 April 20 0 3 an d 1 8 Octob er20 0 5 forSm allan d M edium En terprises (“SM Es”) term -len din g Ph ase Ian d Ph ase IIrespectiv ely. Th eagreem en ts stipulate th at th e fun ds b orrow ed from K fW th rough M oEF sh all b e sub -len ttoSM Es tob uild SM E capacityin Cam b odia. Th e sub -loan s are classified as an asset ofth e Ban k un der loan s an d adv an ces. K fW b orrow in g is un secured an d b ears an n ualin terest at an av erage rate of5.86% (20 1 3:5.69% ) .

(iii) On 29 Septem b er 20 1 4, th e Ban k en tered in toa facilityagreem en t w ith Ban k ofCh in aLim ited, Ph n om Pen h Bran ch . Th is agreem en t is forUS$ 20 m illion loan w ith a on e-yearterm an d an n ual in terest of 3.50 % . Based on th e agreem en t, th e Ban k is required toplace on e-yearfixed deposit w ith Ban k ofCh in a Lim ited, Ph n om Pen h Bran ch ofUS$ 1 0m illion an d CN Y61 .60 m illion , equiv alen t toUS$ 1 0 m illion (see N ote 5) .

(iv ) On 27 N ov em b er 20 1 4, th e Ban k en tered in toa facility agreem en t w ith In dustrial an dCom m ercial Ban k ofCh in a Lim ited, Ph n om Pen h Bran ch . Th is agreem en t is forUS$ 34m illion loan w ith a th ree-year term an d an n ual in terest of 3.50 % . Based on th eagreem en t, th e Ban k is required to place on e-year fixed deposit w ith In dustrial an dCom m ercial b an k ofCh in a Lim ited, Ph n om Pen h Bran ch ofCN Y21 1 m illion , equiv alen ttoUS$ 34 m illion (see n ote 5) .

CANADIA BANK PLC.


41

16. PROVISION FOR STAFF GRATITUDE

Th e Ban k h as estab lish ed em ployees’retirem en t an d resign ation plan sin ce August 20 0 6.M ov em en ts in th e prov ision forstaffb en efits are as follow s:


At 1 Jan uary 3,0 0 6,879 1 2,253 2,1 75,845 8,693Prov ision durin g th e year 1 ,668,640 6,80 0 1 ,0 23,747 4,0 90Paym en ts durin g th e year (420 ,1 98) (1 ,71 3) (1 92,71 3) (771 )

At 31 Decem b er 4,255,321 1 7,340 3,0 0 6,879 1 2,0 1 2

CANADIA BANK PLC.


42

17. OTHER LIABILITIES

Group Bank2014 2013 2014 2013


Accrued in terest payab le 23,60 0 ,1 81 96,1 71 1 6,976,1 51 67,820 23,60 0 ,1 81 96,1 71 1 6,976,1 51 67,820Deposits in tran sit 1 1 ,0 35,1 29 44,968 1 3,0 30 ,955 52,0 59 1 1 ,0 48,260 45,0 22 1 3,0 30 ,955 52,0 59Oth ertrade payab les 1 ,268,753 5,1 71 848,0 29 3,388 1 ,264,1 78 5,1 52 845,71 9 3,379Accrued staffb on uses 1 ,744,734 7,1 1 0 1 ,372,888 5,485 1 ,743,0 69 7,1 0 3 1 ,370 ,560 5,475Accrued expen ses 348,0 1 2 1 ,41 8 370 ,0 63 1 ,478 348,0 1 2 1 ,41 8 370 ,0 63 1 ,478Oth ertaxes payab le 682,1 0 9 2,780 593,381 2,371 682,1 0 9 2,780 593,381 2,371Oth ers 1 39,867 569 1 33,960 534 1 26,736 51 5 1 33,960 534

38,81 8,785 1 58,1 87 33,325,427 1 33,1 35 38,81 2,545 1 58,1 61 33,320 ,789 1 33,1 1 6

CANADIA BANK PLC.


43

18. SHARE CAPITAL



Issued and fully paid:At 1 Jan uary 1 40 ,0 0 0 ,0 0 0 559,30 0 1 30 ,0 0 0 ,0 0 0 51 9,350Issue ofsh ares - - 1 0 ,0 0 0 ,0 0 0 39,950Curren cytran slation differen ces - 1 1 ,20 0 - -

At 31 Decem b er 1 40 ,0 0 0 ,0 0 0 570 ,50 0 1 40 ,0 0 0 ,0 0 0 559,30 0

As at 31 Decem b er 20 1 4, th e Ban k ’s total sh are capital w as US$ 1 40 m illion sh ares w ith aparv alue ofUS$ 1 persh are. A ll sh ares w ere issued toan d fullypaid b yCIHP.

19. RESERVES

Group2014 2013


Gen eral reserv es 78,0 54,0 0 9 31 8,0 70 43,0 91 ,569 1 72,1 51Ch an ge in fairv alue ofAFS

fin an cial assets (1 1 4,678) (467) (37,560 ) (1 50 )

77,939,331 31 7,60 3 43,0 54,0 0 9 1 72,0 0 1

Bank2014 2013


Gen eral reserv es 78,0 50 ,777 31 8,0 57 43,0 50 ,777 1 71 ,988

Th e Ban k ’s gen eral reserv es w ere US$ 78,0 50 ,777 at 31 Decem b er 20 1 4 (20 1 3:US$ 43,0 50 ,777) . Accordin g to th e N BC’s letter n o. B7-0 1 2-1 65, dated 22 Jun e 20 1 2, th isreserv e is n ot distrib utab le un less approv ed b yth e N BC. Th e reserv e is in cluded as capitalTierIin th e Ban k ’s n et w orth calculation b ased on th e N BC’s guidelin es (N ote 33.5) .

20. DIVIDENDS

Th ere is n odiv iden d declared durin g th e year(20 1 3:US$ 7,0 87,762) toits sole sh areh older,CIHP.

CANADIA BANK PLC.


44

21. NET INTEREST INCOME

Group and BankGroup Bank


In terest in com e:Loan s an d adv an ces 1 26,652,990 51 6,1 1 1 1 0 7,555,0 28 429,682 1 26,440 ,555 51 5,245 1 0 7,555,0 28 429,682Balan ces w ith oth erb an k s 2,1 43,989 8,737 1 ,0 55,233 4,21 6 2,1 43,989 8,737 1 ,0 55,233 4,21 6Balan ces w ith th e N BC 1 37,91 2 562 1 66,70 7 666 1 37,91 2 562 1 66,70 7 666Av ailab le-for-sale fin an cial

assets - - 1 51 ,239 60 4 - - - -

Total in terest in com e 1 28,934,891 525,41 0 1 0 8,928,20 7 435,1 68 1 28,722,456 524,544 1 0 8,776,968 434,564

In terest expen se:Deposits from custom ers (45,664,271 ) (1 86,0 82) (37,526,31 5) (1 49,91 8) (45,882,1 1 6) (1 86,970 ) (37,744,1 24) (1 50 ,788)Deposits from b an k s (3,951 ,644) (1 6,1 0 3) (2,337,639) (9,339) (3,951 ,644) (1 6,1 0 3) (2,337,639) (9,339)Borrow in gs (2,846,0 0 9) (1 1 ,597) (1 ,341 ,1 76) (5,357) (2,846,0 0 9) (1 1 ,597) (1 ,341 ,1 75) (5,358)

Total in terest expen se (52,461 ,924) (21 3,782) (41 ,20 5,1 30 ) (1 64,61 4) (52,679,769) (21 4,670 ) (41 ,422,938) (1 65,485)

N et in terest in com e 76,472,967 31 1 ,628 67,723,0 77 270 ,554 76,0 42,687 30 9,874 67,354,0 30 269,0 79

CANADIA BANK PLC.


45

22. NET FEE AND COMMISSION INCOME

Group Bank2014 2013 2014 2013


Loan com m itm en t fees 9,620 ,91 0 39,20 5 8,0 82,254 32,289 9,620 ,91 0 39,20 5 8,0 82,254 32,289Com m ission from rem ittan ces 2,828,70 1 1 1 ,527 2,465,21 5 9,849 2,828,70 1 1 1 ,527 2,465,21 5 9,849M iscellan eous loan fees an d

ch arges 2,21 7,0 77 9,0 35 1 ,91 4,0 92 7,647 2,21 7,0 77 9,0 35 1 ,91 4,0 92 7,647In com e from letters ofcredit 868,748 3,540 551 ,847 2,20 5 868,748 3,540 551 ,847 2,20 5Fees fortelex, fax an d ph on e 1 87,386 764 253,871 1 ,0 1 4 1 87,386 764 253,871 1 ,0 1 4ATM an d credit card fees 373,41 2 1 ,522 272,31 1 1 ,0 88 373,41 2 1 ,522 272,31 1 1 ,0 88Fees forcredit card adv an ces

an d late paym en ts 1 22,743 50 0 251 ,0 40 1 ,0 0 2 1 22,743 50 0 251 ,0 40 1 ,0 0 3Oth erfees an d com m ission 4,440 ,976 1 8,0 96 4,255,532 1 7,0 0 0 4,439,784 1 8,0 91 4,252,1 1 3 1 6,986

Total fee an d com m ission in com e 20 ,659,953 84,1 89 1 8,0 46,1 62 72,0 94 20 ,658,761 84,1 84 1 8,0 42,743 72,0 81

Fee an d com m ission expen se (3,490 ,1 0 6) (1 4,222) (3,50 8,777) (1 4,0 1 8) (3,489,652) (1 4,220 ) (3,50 6,991 ) (1 4,0 1 0 )

N et fee an d com m ission in com e 1 7,1 69,847 69,967 1 4,537,385 58,0 76 1 7,1 69,1 0 9 69,964 1 4,535,752 58,0 71

CANADIA BANK PLC.


46

23. OTHER OPERATING INCOME

Group Bank2014 2013 2014 2013


Gain /(Loss) on foreignexch an ge curren cies (60 0 ,447) (2,447) 1 ,20 3,342 4,80 7 (580 ,664) (2,366) 1 ,20 3,324 4,80 7

Ren tal in com e 737,945 3,0 0 7 452,631 1 ,80 8 764,945 3,1 1 7 479,631 1 ,91 6Oth erin com e 1 25,754 51 3 86,0 51 344 1 25,754 51 2 86,0 50 344

263,252 1 ,0 73 1 ,742,0 24 6,959 31 0 ,0 35 1 ,263 1 ,769,0 0 5 7,0 67

24. PERSONNEL EXPENSES

Group Bank2014 2013 2014 2013


W ages an d salaries 1 2,1 82,495 49,644 9,70 0 ,0 87 38,752 1 1 ,975,886 48,80 2 9,461 ,936 37,80 0Staffgratitude b en efits 1 ,973,846 8,0 43 1 ,268,454 5,0 67 1 ,953,20 9 7,959 1 ,234,853 4,933Oth ersh ort term b en efits 728,30 7 2,968 543,0 72 2,1 70 728,0 36 2,967 543,0 0 4 2,1 70

1 4,884,648 60 ,655 1 1 ,51 1 ,61 3 45,989 1 4,657,1 31 59,728 1 1 ,239,793 44,90 3

CANADIA BANK PLC.


47

25. DEPRECIATION AND AMORTISATION CHARGES

Group Bank2014 2013 2014 2013


Depreciation ofpropertyan dequipm en t 4,61 1 ,750 1 8,793 4,431 ,40 4 1 7,70 3 4,587,91 4 1 8,696 4,396,391 1 7,564

Am ortisation ofin tan gib leassets 468,352 1 ,90 8 237,688 950 468,351 1 ,90 8 237,688 949

5,0 80 ,1 0 2 20 ,70 1 4,669,0 92 1 8,653 5,0 56,265 20 ,60 4 4,634,0 79 1 8,51 3

CANADIA BANK PLC.


48

26. GENERAL AND ADMINISTRATIVE EXPENSES

Group Bank2014 2013 2014 2013


Utilities 1 ,499,1 65 6,1 0 9 1 ,731 ,1 67 6,91 6 1 ,497,1 45 6,1 0 1 1 ,729,397 6,90 9Taxes an d duties 1 ,40 0 ,441 5,70 7 1 ,0 95,30 8 4,376 1 ,376,1 39 5,60 8 1 ,0 65,340 4,256Buildin g ren tal 1 ,20 1 ,348 4,895 1 ,1 71 ,328 4,679 1 ,1 90 ,1 1 4 4,850 1 ,1 60 ,640 4,637Ch aritab le don ation s an d gifts 1 ,0 46,0 23 4,263 1 ,40 7,390 5,623 1 ,0 46,0 23 4,263 1 ,40 7,390 5,623Trav el, accom m odation an d foods 981 ,0 28 3,998 858,277 3,429 980 ,366 3,995 858,21 3 3,429Legal an d profession al fees 80 4,0 33 3,276 91 3,677 3,650 798,894 3,255 90 8,232 3,628Com m un ication 623,888 2,542 575,491 2,299 620 ,0 73 2,527 568,291 2,270Repairs an d m ain ten an ce 61 6,1 1 1 2,51 1 648,658 2,591 61 5,431 2,50 8 648,50 1 2,591Adv ertisin g an d pub lic relation s 491 ,250 2,0 0 2 585,772 2,340 490 ,720 2,0 0 0 581 ,697 2,324M otorv eh icles 31 8,668 1 ,299 262,1 56 1 ,0 47 31 8,668 1 ,299 262,1 56 1 ,0 47Station eryan d supplies 31 6,720 1 ,291 248,448 993 31 4,51 0 1 ,282 246,436 985Prin tin g an d form s 299,953 1 ,222 234,557 937 299,953 1 ,222 234,557 937Board ofdirectors’fee 1 94,70 0 793 1 76,40 0 70 5 1 94,70 0 793 1 76,40 0 70 5In suran ce expen se 1 53,1 56 624 1 57,31 8 628 1 53,1 56 624 1 57,31 8 628Oth ers 844,90 2 3,443 358,253 1 ,432 844,754 3,441 357,874 1 ,429

1 0 ,791 ,386 43,975 1 0 ,424,20 0 41 ,645 1 0 ,740 ,646 43,768 1 0 ,362,442 41 ,398

CANADIA BANK PLC.


49

27. PROVISION FOR LOAN LOSSES



Prov ision forlosses on loan s (N ote 6a) 1 0 ,857,763 44,245 1 5,963,243 63,773Recov eryoflosses on loan s(N ote 6a) (5,1 21 ,0 93) (20 ,868) (7,631 ,40 1 ) (30 ,487)

5,736,670 23,377 8,331 ,842 33,286

28. INCOME TAX

a) Current tax liabilities

Th e m ov em en ts ofth e Group an d th e Ban k ’s in com e tax payab le are as follow s:

Group Bank2014 2013 2014 2013


At 1 Jan uary 9,729,755 39,649 8,863,499 35,41 0 9,727,820 39,641 8,861 ,81 5 35,40 3In com e tax expen se 1 2,1 43,585 49,485 1 0 ,1 98,0 32 40 ,740 1 2,1 39,269 49,468 1 0 ,1 94,30 5 40 ,726In com e tax paid (9,991 ,0 1 4) (40 ,71 4) (9,331 ,776) (37,280 ) (9,987,435) (40 ,699) (9,328,30 0 ) (37,266)

At 31 Decem b er 1 1 ,882,326 48,420 9,729,755 38,870 1 1 ,879,654 48,41 0 9,727,820 38,863

Th e Ban k ob tain ed tax clearan ce up toth e fiscal year 20 1 2. Th e curren t year’s in com e tax is sub ject toth e Gen eral Departm en t ofTaxation(“GDT”) assessm en t, th e outcom e ofw h ich can n ot b e determ in ed as at th e date ofth ese fin an cial statem en ts.

CANADIA BANK PLC.


50

28. INCOME TAX (con tin ued)

b) Income tax expense

Group Bank2014 2013 2014 2013


Curren t tax 1 2,1 43,585 49,485 1 0 ,1 98,0 32 40 ,740 1 2,1 39,269 49,468 1 0 ,1 94,30 5 40 ,726Deferred tax (574,484) (2,342) (234,378) (935) (574,484) (2,342) (234,378) (936)

1 1 ,569,1 0 2 47,1 44 9,963,654 39,80 5 1 1 ,564,785 47,1 26 9,959,927 39,790

c) Reconciliation between accounting profit and income tax expense of the Group and the bank are as follows:

Group Bank2014 2013 2014 2013


Profit b efore in com e tax 57,41 3,260 233,960 49,0 65,739 1 96,0 1 6 57,331 ,1 1 9 233,624 49,0 90 ,631 1 96,1 1 7

Tax calculation at 20 % 1 1 ,482,652 46,792 9,81 3,1 48 39,20 3 1 1 ,466,224 46,725 9,81 8,1 26 39,223

Tax effects in respect of:Expen ses n ot deductib le fortax

purposes 1 0 2,650 41 8 1 41 ,80 1 567 98,561 40 1 1 41 ,80 1 567Tax loss n ot recogn ised (1 6,20 0 ) (66) 8,70 5 35 - - - -

1 1 ,569,1 0 2 47,1 44 9,963,654 39,80 5 1 1 ,564,785 47,1 26 9,959,927 39,790

CANADIA BANK PLC.


51

28. INCOME TAX (con tin ued)

In accordan ce w ith th e Cam b odian tax law s, th e Ban k h as an ob ligation to pay corporatein com e tax of eith er tax on profit at a rate of 20 % on taxab le profit or 1 % m in im um tax,w h ich ev eris h igh er.

Th e tax return s of th e Group an d of th e Ban k are sub ject to periodic exam in ation b y th eGen eral Departm en t ofTaxation . As th e application of tax law s an d regulation s tov arioustypes of tran saction s is susceptib le to v aryin g in terpretation s, am oun ts reported in th efin an cial statem en ts ofth e Group an d ofth e Ban k could b e ch an ged at a later date, uponfin al determ in ation b yth e Gen eral Departm en t ofTaxation .

CANADIA BANK PLC.


52

29. CASH FROM/(USED IN) OPERATIONS

Group Bank2014 2013 2014 2013


Profit b efore in com e tax 57,41 3,260 233,960 49,0 65,739 1 96,0 1 6 57,331 ,1 1 9 233,624 49,0 90 ,631 1 96,1 1 7Adjustments for:

Depreciation an d am ortisation 5,0 80 ,1 0 2 20 ,70 1 4,669,0 92 1 8,653 5,0 56,265 20 ,60 4 4,634,0 79 1 8,51 3

Prov ision forlosses on loan s 9,51 9,543 38,792 1 5,1 63,948 60 ,580 9,51 9,543 38,792 1 5,1 63,948 60 ,580

Recov eryoflosses on loan s (5,0 0 1 ,0 93) (20 ,379) (7,631 ,40 1 ) (30 ,487) (5,0 0 1 ,0 93) (20 ,379) (7,631 ,40 1 ) (30 ,487)Gain on disposals ofpropertyan d

equipm en t 40 ,51 0 1 65 1 93,420 773 40 ,51 0 1 65 1 93,420 773N et in terest in com e (76,472,967) (31 1 ,628) (67,723,0 77) (270 ,554) (76,0 42,687) (30 9,874) (67,354,0 30 ) (269,0 79)

Changes in working capital:Cash collateral on b orrow in gs (21 ,560 ,643) (87,860 ) (45,588,61 6) (1 82,1 27) (21 ,560 ,643) (87,860 ) (45,588,61 6) (1 82,1 27)Balan ces w ith N BC -capital an d

reserv e deposits (40 ,852,343) (1 66,473) (1 5,80 7,1 69) (63,1 50 ) (40 ,871 ,999) (1 66,553) (1 5,80 7,1 69) (63,1 50 )Balan ces w ith oth erb an k s -

m aturitym ore th an th reem on th s (72,31 6,880 ) (294,691 ) - - (72,31 6,880 ) (294,691 ) - -

Loan s an d adv an ces (289,884,230 ) (1 ,1 81 ,278) (20 7,1 0 4,0 51 ) (827,381 ) (289,884,230 ) (1 ,1 81 ,278) (20 7,1 0 4,0 51 ) (827,381 )Oth erassets (3,1 35,0 51 ) (1 2,775) 1 ,0 33,0 22 4,1 29 (3,1 46,665) (1 2,823) 1 ,0 1 5,0 81 4,0 56Deposits from b an k s 77,927,623 31 7,555 60 ,275,80 2 240 ,80 2 77,927,623 31 7,555 60 ,275,80 2 240 ,80 2Deposits from custom ers 339,462,271 1 ,383,30 9 92,797,825 370 ,727 342,533,0 52 1 ,395,822 93,663,51 4 374,1 86Prov ision forstaffgratitude 1 ,248,442 5,0 87 831 ,0 34 3,320 1 ,248,442 5,0 87 831 ,0 34 3,320Oth erliab ilities (1 ,1 30 ,653) (4,60 7) 6,0 98,638 24,366 (1 ,1 32,253) (4,61 4) 6,0 97,737 24,361

Cash used in operation s (1 9,662,1 0 9) (80 ,1 22) (1 1 3,725,794) (454,333) (1 6,299,896) (66,423) (1 1 2,520 ,0 21 ) (449,51 6)

CANADIA BANK PLC.


53

30. CASH AND CASH EQUIVALENTS

Group Bank2014 2013 2014 2013


Cash on h an d 1 43,51 4,81 4 584,823 1 26,61 8,929 50 5,843 1 43,51 4,51 4 584,822 1 26,61 8,629 50 5,841Balances with the NBC: -Curren t accoun ts 1 71 ,848,239 70 0 ,282 1 57,758,551 630 ,245 1 71 ,848,239 70 0 ,282 1 57,758,551 630 ,245Term deposits (m aturityofth ree

m on th s orless) 1 23,0 0 0 ,0 0 0 50 1 ,225 - - 1 23,0 0 0 ,0 0 0 50 1 ,225 - -Balances with other banks:

Curren t accoun ts 59,754,0 56 243,498 84,935,1 64 339,31 6 59,754,0 56 243,498 84,935,1 64 339,31 6Sav in gs accoun ts 65,1 30 265 45,337 1 81 65,1 30 265 45,337 1 81Term deposits (m aturityofth ree

m on th s orless) 9,30 1 ,557 37,90 4 56,898,1 1 4 227,30 8 9,30 1 ,557 37,90 4 56,898,1 1 4 227,30 8

50 7,483,796 2,0 67,997 426,256,0 95 1 ,70 2,893 50 7,483,496 2,0 67,996 426,255,795 1 ,70 2,891

CANADIA BANK PLC.


54

31. COMMITMENTS AND CONTINGENCIES

a) Loan commitments, guarantees and other financial commitments

Con tractual am oun ts arisin g from off-b alan ce sh eet fin an cial in strum en ts th at th e Group an dth e Ban k com m itted to exten d credit to custom ers, guaran tees an d oth er facilities are asfollow s:


Un used portion ofapprov edcredit facilities 88,81 9,246 361 ,938 85,1 1 0 ,356 340 ,0 1 6

Perform an ce an d b an k ers’guaran tees 8,786,0 56 35,80 3 4,434,0 41 1 7,71 4

Ban k ers'acceptan ce 8,429,498 34,350 7,61 3,860 30 ,41 7Docum en tarycredit 1 8,51 4,21 8 75,445 1 0 ,575,0 82 42,247Oth ers 1 ,837,71 8 7,489 2,959,944 1 1 ,825

1 26,386,736 51 5,0 25 1 1 0 ,693,283 442,21 9

N om aterial losses are an ticipated as a result ofth ese tran saction s.

b) Operating lease commitments

W h ere th e Group or th e Ban k is th e lessee, th e future m in im um lease paym en ts of th eGroup’s an d th e Ban k ’s b ran ch es in Ph n om Pen h an d prov in ces un der a n on -can cellab leoperatin g lease arran gem en t are as follow s:


N ot laterth an on e year 991 ,990 4,0 42 983,40 0 3,929Laterth an on e yearan d n ot later

th an fiv e years 2,923,498 1 1 ,91 3 3,258,522 1 3,0 1 8Ov erfiv e years 3,262,335 1 3,294 3,21 4,51 2 1 2,842

7,1 77,823 29,249 7,456,434 29,789

CANADIA BANK PLC.


55

32. RELATED PARTY TRANSACTIONS AND BALANCES

a) Related parties and relationship

Related parties, an d th eirrelation sh ip w ith th e Group an d th e Ban k are as follow s:

Relationship Related party

Im m ediate an d ultim ate paren t com pan y Can adia In v estm en t Holdin g Plc. (“CIHP”)

Sub sidiary W h olly-ow n ed sub sidiary of th e Ban k , Can aSecurities Ltd.

Affiliate Cam b odia Post Ban k

K eym an agem en t person n el A ll directors ofth e Group an d th e Ban k w h om ak ecritical decision s in relation to th e strategicdirection of th e Group an d th e Ban k an d sen iorm an agem en t staff (in cludin g th eir close fam ilym em b ers)

b) Loans and advances to directors and key management

Group and Bank


At 31 Decem b er 51 3,240 2,0 50 737,888 2,948

In terest in com e 43,922 1 79 45,939 1 84

Loan s todirectors an d k eym an agem en t earn an n ual in terest at rates ran gin g from 7.75% to1 0 .0 0 % .

c) Deposits from related parties

Group2014 2013


Paren t com pan y 649,385 2,646 1 ,247,1 36 4,982Affiliate 27,782,951 1 1 3,21 6 1 9,671 ,437 78,587K eym an agem en t person n el 1 ,91 6,0 1 5 7,80 8 1 ,1 94,693 4,773

30 ,348,351 1 23,670 22,1 1 3,266 88,342

In terest expen se 242,797 989 1 23,1 47 492

CANADIA BANK PLC.


56

32. RELATED PARTY TRANSACTIONS AND BALANCES (con tin ued)

c) Deposits from related parties (continued)

Bank2014 2013


Paren t com pan y 649,385 2,646 1 ,247,1 36 4,982Sub sidiary 9,51 2,520 38,764 6,441 ,739 25,735Affiliate 27,782,951 1 1 3,21 6 1 9,671 ,437 78,587Directors an d k eym an agem en t 1 ,91 6,0 1 5 7,80 8 1 ,1 94,693 4,773

39,860 ,871 1 62,434 28,555,0 0 5 1 1 4,0 77

In terest expen se 460 ,642 1 ,877 340 ,955 1 ,362

Th e deposits from paren t com pan y an d k ey m an agem en t person n el b ear in terest at ratesran gin g from 0 .75% an d 2.0 0 % per an n um . Deposit from sub sidiary b ear in terest at ratesran gin g from 2.0 0 % to5.0 0 % peran n um .

d) Deposit with Affiliate

Group and Bank


Term deposits 1 ,90 0 ,527 7,745 - -

In terest in com e 95,51 5 389 - -

Deposit w ith affiliate b earin terest at rates ran gin g from 6.0 0 % to7.0 0 % peran n um .

e) Key management personnel compensation

Group2014 2013


Salaries an d sh ort-term b en efits 2,1 29,531 8,678 1 ,922,0 67 7,679Post-em ploym en t b en efits 1 68,825 688 1 43,633 574

2,298,356 9,366 2,0 65,70 0 8,253

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32. RELATED PARTY TRANSACTIONS AND BALANCES (con tin ued)

e) Key management personnel compensation (continued)

Bank2014 2013


Salaries an d sh ort-term b en efits 1 ,937,847 7,897 1 ,790 ,50 8 7,1 53Post-em ploym en t b en efits 1 68,825 688 1 43,633 574

2,1 0 6,672 8,585 1 ,934,1 41 7,727

f) Other transactions with related parties

Group2014 2013


M an agem en t fee ch arged b yparen t com pan y 30 ,0 0 0 1 22 30 ,0 0 0 1 20

In terest in com e from sh ort-termloan s toaffiliate - - 286,887 1 ,1 46

Ren tal in com e from affiliate 1 40 ,295 572 46,524 294

Bank2014 2013


M an agem en t fee ch arged b yparen t com pan y 30 ,0 0 0 1 22 30 ,0 0 0 1 20

In terest in com e from sh ort-termloan s toaffiliate - - 286,887 1 ,1 46

Ren tal in com e from sub sidiaryan d affiliate 1 67,295 682 73,524 294

Ban k ch arge tosub sidiaryforcash settlem en t 1 64 1 230 1

CANADIA BANK PLC.


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33. FINANCIAL RISK MANAGEMENT

Th e Group an d th e Ban k ’s activ ities expose th em toa v arietyoffin an cial risk s:credit risk , m ark et risk (in cludin g curren cyrisk , in terest rate riskan d price risk ) , an d liquidityrisk . Tak in g risk is core toth e fin an cial b usin ess, an d th e operation al risk s are th e in ev itab le con sequen ce ofb ein gin b usin ess.

Th e Group an d th e Ban k don ot use deriv ativ e fin an cial in strum en ts such as foreign exch an ge con tract an d in terest rate sw aps tom an age th eirrisk exposure.

Th e fin an cial assets an d liab ilities h eld b yth e Group an d th e Ban k are as follow s:

Group Bank2014 2013 2014 2013

US$ Million Riel US$ Million Riel US$ Million Riel US$ Million RielFinancial assetsCash on h an d 1 43,51 4,81 4 584,823 1 26,61 8,929 50 5,843 1 43,51 4,51 4 584,822 1 26,61 8,629 50 5,841Balan ces w ith th e N BC* 50 9,952,697 2,0 78,0 57 332,0 1 0 ,666 1 ,326,383 50 8,971 ,1 0 2 2,0 74,0 57 331 ,0 0 9,41 5 1 ,322,383Balan ces w ith oth erb an k s 226,336,1 97 922,320 20 5,21 6,546 81 9,840 226,336,1 97 922,320 20 5,21 6,546 81 9,840Loan s an d adv an ces 1 ,330 ,356,60 8 5,421 ,20 3 1 ,0 44,990 ,828 4,1 74,738 1 ,330 ,356,60 8 5,421 ,20 3 1 ,0 44,990 ,828 4,1 74,738Av ailab le-for-sale fin an cial assets 1 84,990 754 3,239,668 1 2,942 - - - -Oth erassets 20 ,792,463 84,729 1 3,1 40 ,80 4 52,498 20 ,792,463 84,729 1 3,1 40 ,80 4 52,498Total financial assets 2,231 ,1 37,769 9,0 91 ,886 1 ,725,21 7,441 6,892,244 2,229,970 ,884 9,0 87,1 31 1 ,720 ,976,222 6,875,30 0

Financial liabilitiesDeposits from b an k s 20 8,1 92,754 848,385 1 30 ,265,1 31 520 ,40 9 20 8,1 92,754 848,385 1 30 ,265,1 31 520 ,40 9Deposits from custom ers 1 ,639,51 9,31 8 6,681 ,0 41 1 ,30 0 ,0 57,0 47 5,1 93,728 1 ,649,0 31 ,838 6,71 9,80 5 1 ,30 6,498,786 5,21 9,463Borrow in gs 1 0 0 ,779,775 41 0 ,678 64,0 39,543 255,838 1 0 0 ,779,775 41 0 ,678 64,0 39,543 255,838Oth erliab ilities 38,1 36,676 1 58,1 87 32,732,0 46 1 33,1 35 38,1 30 ,436 1 55,381 32,727,40 8 1 30 ,745Total financial liabilities 1 ,986,628,523 8,0 98,291 1 ,527,0 93,767 6,1 0 3,1 1 0 1 ,996,1 34,80 3 8,1 34,249 1 ,533,530 ,868 6,1 26,455

Net financial assets 244,50 9,246 993,595 1 98,1 23,674 789,1 34 233,836,0 81 952,882 1 87,445,354 748,845

* in cludin g capital guaran tee an d reserv e deposits

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33. FINANCIAL RISK MANAGEMENT (con tin ued)

33.1 Credit risk

Th e Group tak es exposure to credit risk , w h ich is th e risk th at coun terparty w ill cause afin an cial loss to th e Group b y failin g to disch arge an ob ligation . Credit risk is th e m ostim portan t risk for th e b usin ess of th e Group. Credit exposure arises prin cipally in len din gactiv ities. Th ere is also credit risk in off-b alan ce sh eet fin an cial in strum en ts, such as loancom m itm en ts. Th e credit risk m an agem en t ofth e Ban k is carried out b yits credit com m ittee.

a) Credit risk measurement

Th e Ban k assesses th e prob ab ilityofdefault ofin div idual coun terparties usin g in tern al ratin gtool. Th e credit com m ittee is respon sib le fordeterm in in g th e risk ratin g foreach b orrow er.

In m easurin g th e credit risk of loan s an d adv an ces at a coun terparty lev el, th e Ban k usesn in e risk ratin g grades w h ich are:(i) m in im al risk , (ii) b elow av erage risk , (iii) av erage risk ,(iv ) ab ov e av erage risk , (v ) h igh er th an ab ov e av erage risk b ut still acceptab le, (v i) w atch ,(v ii) sub stan dard, (v iii) doub tful an d (ix) loss.

Risk ratin gs are rev iew ed an d updated at least an n ually, an d in th e ev en t ofa ch an ge in loanterm s an d con dition s in cludin g exten sion ; repaym en t irregularities or delin quen cies; an dadv erse in form ation relatin g toth e b orrow erortran saction .

b) Risk limit control and mitigation policies

Th e Ban k operates an d prov ides loan s an d adv an ces toin div iduals oren terprises w ith in th eK in gdom ofCam b odia. Th e Ban k m an ages lim its an d con trols th e con cen tration ofcredit riskw h en ev erit is iden tified. Large exposure is defin ed b yth e N BC as ov erall credit exposure toan yin div idual b en eficiaryw h ich exceeds 1 0 % ofth e Ban k ’s n et w orth .

Th e Ban k is required, un derth e con dition s ofPrak as N o. B7-0 6-226, tom ain tain at all tim esa m axim um ratio of 20 % b etw een th e Ban k ’s ov erall credit exposure to an y in div idualb en eficiary an d th e Ban k ’s n et w orth . Th e aggregation of large credit exposure m ust n otexceed 30 0 % ofth e Ban k ’s n et w orth .

Th e Ban k em ploys a ran ge of policies an d practices to m itigate credit risk . Th e m osttradition al ofth ese is th e tak in g ofsecurityin th e form ofcollateral for loan s an d adv an ces.Th e Ban k im plem en ts guidelin es on th e acceptab ilityofspecific classes ofcollateral orcreditrisk m itigation . Th e prin cipal collateral types as securityforloan s an d adv an ces are:

m ortgages ov erresiden tial properties (lan d, b uildin g an d oth erproperties) ; ch arges ov erb usin ess assets such as lan d an d b uildin gs;an d cash in th e form ofm argin deposits.

c) Impairment and provisioning policies

Th e Ban k is required to follow th e m an datory credit classification an d prov ision in g inaccordan ce w ith th e relev an t Prak as, as stated in n ote 2.8 toth e fin an cial statem en ts.

Loan classification an d loan loss prov ision in g are determ in ed tak in g in toaccoun t past dueperiod ofloan s an d adv an ces tocustom ers an d oth errelev an t qualitativ e factors.

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33.1 Credit risk (con tin ued)

d) Maximum exposures to credit risk before collateral held or other credit enhancements of the Group and the Bank are as follows:Group Bank


Credit risk exposures relating toon-balance sheet assets:

Balan ces w ith oth erb an k s 226,336,1 97 922,320 20 5,21 6,546 81 9,840 226,336,1 97 922,320 20 5,21 6,546 81 9,840Loan s an d adv an ces 1 ,330 ,356,60 8 5,421 ,20 3 1 ,0 44,990 ,828 4,1 74,738 1 ,330 ,356,60 8 5,421 ,20 3 1 ,0 44,990 ,828 4,1 74,738Av ailab le-for-sale fin an cial assets 1 84,990 754 3,239,668 1 2,942 - - - -Oth erassets 20 ,792,463 84,729 1 3,1 40 ,80 4 52,498 20 ,792,463 84,729 1 3,1 40 ,80 4 52,498

1 ,577,670 ,258 6,429,0 0 6 1 ,266,587,846 5,0 60 ,0 1 8 1 ,577,485,268 6,428,252 1 ,263,348,1 78 5,0 47,0 76Credit risk exposures relating to

off-balance sheet items:Un used portion ofapprov ed credit

facilities 88,81 9,246 361 ,938 85,1 1 0 ,356 340 ,0 1 6 88,81 9,246 361 ,938 85,1 1 0 ,356 340 ,0 1 6Guaran tees, acceptan ces an d

oth erfin an cial facilities 37,567,490 1 53,0 87 25,582,927 1 0 2,20 3 37,567,490 1 53,0 87 25,582,927 1 0 2,20 31 26,386,736 51 5,0 25 1 1 0 ,693,283 442,21 9 1 26,386,736 51 5,0 25 1 1 0 ,693,283 442,21 9

1 ,70 4,0 56,994 6,944,0 31 1 ,377,281 ,1 29 5,50 2,237 1 ,70 3,872,0 0 4 6,943,277 1 ,374,0 41 ,461 5,489,295

Th e ab ov e tab le represen ts a w orst case scen arioofcredit risk exposure toth e Group an d th e Ban k , sin ce collateral h eld an d/oroth ercrediten h an cem en t attach ed w ere n ot tak en in to accoun t. For on -b alan ce sh eet assets, th e exposures set out ab ov e are b ased on n et carryin gam oun ts. As at 31 Decem b er 20 1 4, 78% (20 1 3: 76% ) of total m axim um exposure is deriv ed from loan s an d adv an ces. M an agem en t iscon fiden t ofits ab ilitytocon tin ue tocon trol an d sustain m in im al exposure on credit risk resultin g from th e Ban k ’s loan s an d adv an ces due toth efollow in g:

Alm ost all loan s an d adv an ces are collateralised an d loan tocollateral v alue ran ge from 60 % to70 % . 91 .58% ofloan portfoliois con sidered n eith erpast due n orim paired (20 1 3:94.67% ) .

A llow an ce forlosses on loan s an d adv an ces h ad b een prov ided forth ose in div iduallyim paired loan s in accordan ce w ith th e N BC’s requirem en t.

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e) Credit quality of financial assets

Loan s an d adv an ces ofth e Group an d th e Ban k are as follow s:


Loan s an d adv an ces n eith er pastdue n orim paired 1 ,261 ,485,892 5,1 40 ,555 1 ,0 29,668,1 38 4,1 1 3,524

Loan s an d adv an ces past due b utn ot im paired 54,0 92,1 0 6 220 ,425 3,695,660 1 4,764

Loan s an d adv an ces in div iduallyim paired 61 ,91 8,233 252,31 7 54,248,20 3 21 6,721

1 ,377,496,231 5,61 3,297 1 ,0 87,61 2,0 0 1 4,345,0 0 9

Forloan prov ision in g purposes, expected recov eryfrom collateral (except cash ) is n ot tak enin tocon sideration in accordan ce w ith th e N BC’s requirem en ts.

i. Loan s an d adv an ces n eith erpast due n orim paired

Loan s an d adv an ces n ot past due are n ot con sidered im paired, un less oth er in form ation isav ailab le toin dicate th e con trary.

ii. Loan s an d adv an ces past due b ut n ot im paired

Loan s an d adv an ces less th an 90 days past due are n ot con sidered im paired, un less oth erin form ation is av ailab le toin dicate th e con trary. Gross am oun t of loan s an d adv an ces th atw ere past due b ut n ot im paired are as follow s:


Past due up to90 days 54,0 92,1 0 6 220 ,425 3,695,660 1 4,764

iii. Loan s an d adv an ces in div iduallyim paired

In accordan ce w ith Prak as B7-0 9-0 74 dated 25 Feb ruary 20 0 9 on th e classification an dprov ision in g forb ad an d doub tful deb ts, loan s an d adv an ces th at are past due form ore th an90 days are con sidered im paired un less oth er in form ation is av ailab le to in dicate th econ trary.


Past due 91 to1 80 days 33,787,223 1 37,683 24,0 20 ,652 95,963Past due 1 81 to360 days 1 3,260 ,891 54,0 38 1 2,267,1 39 49,0 0 7Past due form ore th an 360 days 1 4,870 ,1 1 9 60 ,596 1 7,960 ,41 2 71 ,751

Total 61 ,91 8,233 252,31 7 54,248,20 3 21 6,721

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e) Loans and advances (continued)

iv . Loan s an d adv an ces ren egotiated

Restructurin g activ ities in clude exten ded paym en t arran gem en ts, m odification an d deferral ofpaym en ts. Follow in g restructurin g, th e loan is still k ept in its curren t classification un lessth ere is stron g ev iden ce ofim prov em en t in th e custom er’s fin an cial con dition .

Th ere w ere n orestructured loan s an d adv an ces durin g th e year(20 1 3:N il) .

f) Repossessed properties

Repossessed properties are classified in th e b alan ce sh eet as foreclosed properties. Th erew ere n orepossessed properties durin g th e year(20 1 3:N il) .

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g) Concentration of financial assets with credit risk exposure

i. Geograph ical sector

Th e follow in g tab le prov ides a b reak dow n of th e Group an d th e Ban k ’s m ain credit exposure at th eir carryin g am oun t, as categorised b ygeograph ical region . Th e Group an d th e Ban k allocated exposure toregion s b ased on th e coun tryofdom icile ofth e coun terparties.

Group

Cambodia North America

Other AsiaPacific

countriesOther ASEAN

countriesOther

countries TotalUS$ US$ US$ US$ US$ US$

As at 31 December 2014Balan ces w ith oth erb an k s 88,91 9,355 24,71 4,554 94,759,622 1 5,960 ,61 1 1 ,982,0 55 226,336,1 97Loan s an d adv an ces 1 ,330 ,356,60 8 - - - - 1 ,330 ,356,60 8Av ailab le-for-sale fin an cial assets 1 84,990 - - - - 1 84,990Oth erassets 20 ,560 ,40 0 67,379 1 64,684 - - 20 ,792,463Total credit exposure 1 ,440 ,0 21 ,353 24,781 ,933 94,924,30 6 1 5,960 ,61 1 1 ,982,0 55 1 ,577,670 ,258

Million Riel equivalent 5,868,0 87 1 0 0 ,986 386,81 7 65,0 39 8,0 77 6,429,0 0 6

As at 31 December 2013Balan ces w ith oth erb an k s 70 ,1 1 6,478 40 ,658,960 66,828,349 21 ,81 5,234 5,797,525 20 5,21 6,546Loan s an d adv an ces 1 ,0 44,990 ,828 - - - - 1 ,0 44,990 ,828Av ailab le-for-sale fin an cial assets 3,239,668 - - - - 3,239,668Oth erassets 1 3,0 1 6,530 59,987 64,287 - - 1 3,1 40 ,80 4Total credit exposure 1 ,1 31 ,363,50 4 40 ,71 8,947 66,892,636 21 ,81 5,234 5,797,525 1 ,266,587,846

Million Riel equivalent 4,51 9,797 1 62,672 267,236 87,1 52 23,1 61 5,0 60 ,0 1 8

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g) Concentration of financial assets with credit risk exposure(continued)

i. Geograph ical sector(con tin ued)

Bank

Cambodia North America

Other AsiaPacific

countriesOther ASEAN

countriesOther

countries TotalUS$ US$ US$ US$ US$ US$

As at 31 December 2014Balan ces w ith oth erb an k s 88,91 9,355 24,71 4,554 94,759,622 1 5,960 ,61 1 1 ,982,0 55 226,336,1 97Loan s an d adv an ces 1 ,330 ,356,60 8 - - - - 1 ,330 ,356,60 8Oth erassets 20 ,560 ,40 0 67,379 1 64,684 - - 20 ,792,463Total credit exposure 1 ,439,836,363 24,781 ,933 94,924,30 6 1 5,960 ,61 1 1 ,982,0 55 1 ,577,485,268

Million Riel equivalent 5,867,333 1 0 0 ,986 386,81 7 65,0 39 8,0 77 6,428,252

As at 31 December 2013Balan ces w ith oth erb an k s 70 ,1 1 6,478 40 ,658,960 66,828,349 21 ,81 5,234 5,797,525 20 5,21 6,546Loan s an d adv an ces 1 ,0 44,990 ,828 - - - - 1 ,0 44,990 ,828Oth erassets 1 3,0 1 6,530 59,987 64,287 - - 1 3,1 40 ,80 4Total credit exposure 1 ,1 28,1 23,836 40 ,71 8,947 66,892,636 21 ,81 5,234 5,797,525 1 ,263,348,1 78

Million Riel equivalent 4,50 6,855 1 62,672 267,236 87,1 52 23,1 61 5,0 47,0 76

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g) Concentration of financial assets with credit risk exposure (continued)

ii. In dustrysector

Th e follow in g tab le prov ides a b reak dow n of th e Group an d th e Ban k ’s m ain credit exposure at th eir carryin g am oun ts, as categorised b yin dustrysector.

GroupFinancial

institutions Service MortgageBuilding andconstruction

Wholesaleand retail

Import andexport Agriculture Others Total

US$ US$ US$ US$ US$ US$ US$ US$ US$As at 31 December 2014Balan ces w ith oth erb an k s 226,336,1 97 - - - - - - - 226,336,1 97Loan s an d adv an ces 4,21 9,582 373,959,40 1 65,1 51 ,470 20 7,923,0 85 336,883,262 81 ,631 ,91 3 1 67,244,80 6 93,343,0 89 1 ,330 ,356,60 8Av ailab le-for-sale fin an cial

assets - - - - - - - 1 84,990 1 84,990Oth erassets 29,20 0 7,333,751 648,71 5 2,268,252 2,799,671 2,273,953 1 ,90 2,1 64 3,536,757 20 ,792,463Total credit exposure 230 ,584,979 381 ,293,1 52 65,80 0 ,1 85 21 0 ,1 91 ,337 339,682,933 83,90 5,866 1 69,1 46,970 97,0 64,836 1 ,577,670 ,258

Million Riel equivalent 939,634 1 ,553,770 268,1 36 856,530 1 ,384,20 8 341 ,91 6 689,274 395,538 6,429,0 0 6

As at 31 December 2013Balan ces w ith oth erb an k s 20 5,21 6,546 - - - - - - - 20 5,21 6,546Av ailab le-for-sale fin an cial

assets 1 ,736,91 6 277,888,535 62,355,388 1 81 ,61 0 ,291 258,457,939 87,766,0 1 4 1 1 6,762,941 58,41 2,80 4 1 ,0 44,990 ,828Loan s an d adv an ces - - - 3,0 0 0 ,0 0 0 - - - 239,668 3,239,668Oth erassets 495,345 6,582,40 7 61 5,381 2,850 ,627 1 ,257,481 427,681 666,80 0 245,0 82 1 3,1 40 ,80 4Total credit exposure 20 7,448,80 7 284,470 ,942 62,970 ,769 1 87,460 ,91 8 259,71 5,420 88,1 93,695 1 1 7,429,741 58,897,554 1 ,266,587,846

Million Riel equivalent 828,758 1 ,1 36,461 251 ,568 748,90 6 1 ,0 37,563 352,334 469,1 32 235,296 5,0 60 ,0 1 8

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g) Concentration of financial assets with credit risk exposure (continued)

ii. In dustrysector(con tin ued)

BankFinancial

institutions Service MortgageBuilding andconstruction

Wholesaleand retail

Import andexport Agriculture Others Total

US$ US$ US$ US$ US$ US$ US$ US$ US$As at 31 December 2014Balan ces w ith oth erb an k s 226,336,1 97 - - - - - - - 226,336,1 97Loan s an d adv an ces 4,21 9,582 373,959,40 1 65,1 51 ,470 20 7,923,0 85 336,883,262 81 ,631 ,91 3 1 67,244,80 6 93,343,0 89 1 ,330 ,356,60 8Oth erassets 29,20 0 7,333,751 648,71 5 2,268,252 2,799,671 2,273,953 1 ,90 2,1 64 3,536,757 20 ,792,463Total credit exposure 230 ,584,979 381 ,293,1 52 65,80 0 ,1 85 21 0 ,1 91 ,337 339,682,933 83,90 5,866 1 69,1 46,970 96,879,846 1 ,577,485,268

Million Riel equivalent 939,634 1 ,553,770 268,1 36 856,530 1 ,384,20 8 341 ,91 6 689,274 394,784 6,428,252

As at 31 December 2013Balan ces w ith oth erb an k s 20 5,21 6,546 - - - - - - - 20 5,21 6,546Loan s an d adv an ces 1 ,736,91 6 277,888,535 62,355,388 1 81 ,61 0 ,291 258,457,939 87,766,0 1 4 1 1 6,762,941 58,41 2,80 4 1 ,0 44,990 ,828Oth erassets 495,345 6,582,40 7 61 5,381 2,850 ,627 1 ,257,481 427,681 666,80 0 245,0 82 1 3,1 40 ,80 4Total credit exposure 20 7,448,80 7 284,470 ,942 62,970 ,769 1 84,460 ,91 8 259,71 5,420 88,1 93,695 1 1 7,429,741 58,657,886 1 ,263,348,1 78

Million Riel equivalent 828,758 1 ,1 36,461 251 ,568 736,921 1 ,0 37,563 352,334 469,1 32 234,338 5,0 47,0 75

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33.2 Market risk

Th e Group an d th e Ban k tak es exposure tom ark et risk , w h ich is th e risk th at th e fairv alue orfuture cash flow ofa fin an cial in strum en t w ill fluctuate b ecause ofch an ges in m ark et prices.M ark et risk arises from open position s in in terest rates, curren cyan d equityproducts, all ofw h ich are exposed togen eral an d specific m ark et m ov em en ts an d ch an ges in th e lev el ofv olatility of m ark et rates or prices such as in terest rates, credit spreads, foreign exch an gerates an d equityprices.

Th e Group an d th e Ban k do n ot use deriv ativ e fin an cial in strum en ts such as foreignexch an ge con tract an d in terest rate sw aps toh edge its risk exposure.

a) Foreign exchange risk

Th e Group an d th e Ban k operate in Cam b odia an d tran sacts in m an y curren cies, an d isexposed to v arious curren cy risk s, prim arily w ith respect toRiel, Ren m in b i, euroan d Th aiBah t.

Foreign exch an ge risk arises from future com m ercial tran saction s an d recogn ised assets an dliab ilities den om in ated in a curren cy th at is n ot th e Group’s an d th e Ban k ’s fun ction alcurren cy.

M an agem en t m on itors foreign exch an ge risk again st th e Group’s an d th e Ban k ’s fun ction alcurren cy. How ev er, th e Group an d th e Ban k don ot h edge its foreign exch an ge risk exposurearisin g from future com m ercial tran saction s an d recogn ised assets an d liab ilities usin gforw ard con tracts.

Th e Group’s an d th e Ban k ’s policyis tom ain tain foreign curren cyexposure w ith in acceptab lelim its an d w ith in existin g regulatoryguidelin es.

Th e Group an d th e Ban k did n ot presen t a sen sitiv ity an alysis on th e im pact ofreason ab lypossib le ch an ge in foreign curren cy on profit an d loss b efore tax an d equity sin ce th eexposure toforeign curren cyrisk is m in im al.

Th e tab le b elow sum m arises th e Group’s an d th e Ban k ’s exposure to foreign curren cyexch an ge rate risk . In cluded in th e tab le are th e Group an d Ban k ’s fin an cial in strum en ts atth eircarryin g am oun ts b ycurren cyin US$ equiv alen t.

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33.2 Market risk (con tin ued)

a) Foreign exchange risk(continued)

(in US$) GroupUS$ Riel RMB EUR THB Other Total

As at 31 December 2014Financial assetsCash on h an d 1 0 5,1 29,40 2 30 ,71 4,736 - 79,477 6,71 4,0 0 4 877,1 95 1 43,51 4,81 4Balan ces w ith th e N BC * 459,31 4,1 95 50 ,638,50 2 - - - - 50 9,952,697Balan ces w ith oth erb an k s 1 72,632,593 3,481 ,751 47,994,648 466,1 32 725,0 0 0 1 ,0 36,0 73 226,336,1 97Loan s an d adv an ces 1 ,328,1 1 1 ,30 0 651 ,1 71 - - - 1 ,594,1 37 1 ,330 ,356,60 8Av ailab le-for-sale fin an cial assets 1 84,990 - - - - - 1 84,990Oth erassets 20 ,476,321 1 67,1 0 2 - - - 1 49,0 40 20 ,792,463Total fin an cial assets 2,0 85,848,80 1 85,653,262 47,994,648 545,60 9 7,439,0 0 4 3,656,445 2,231 ,1 37,769

Financial liabilitiesDeposits from b an k s 20 3,735,270 4,40 1 ,285 - - 55,954 245 20 8,1 92,754Deposits from custom ers 1 ,541 ,1 47,545 85,782,678 5,367,347 84 7,21 7,51 2 4,1 52 1 ,639,51 9,31 8Borrow in gs 1 0 0 ,779,775 - - - - - 1 0 0 ,779,775Oth erliab ilities 37,0 85,963 1 ,0 20 ,629 - - - 30 ,0 84 38,1 36,676Total fin an cial liab ilities 1 ,882,748,553 91 ,20 4,592 5,367,347 84 7,273,466 34,481 1 ,986,628,523

N et position 20 3,1 0 0 ,248 (5,551 ,330 ) 42,627,30 1 545,525 1 65,538 3,621 ,964 244,50 9,246

Million Riel equivalent 827,634 (22,622) 1 73,70 6 2,223 675 1 4,760 996,376

Credit com m itm en ts 1 25,482,41 5 31 2,936 - 21 1 ,752 1 41 ,794 237,839 1 26,386,736

Million Riel equivalent 51 1 ,341 1 ,275 - 863 578 969 51 5,0 26


CANADIA BANK PLC.


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(in US$) GroupUS$ Riel RMB EUR THB Other Total

As at 31 December 2013Financial assetsCash on h an d 88,0 71 ,0 1 3 33,796,781 3,51 7 25,0 56 3,833,467 889,0 95 1 26,61 8,929Balan ces w ith th e N BC* 30 2,938,365 29,0 72,30 1 - - - - 332,0 1 0 ,666Balan ces w ith oth erb an k s 1 51 ,388,342 3,1 34,30 7 48,21 3,691 753,50 3 495,638 1 ,231 ,0 65 20 5,21 6,546Loan s an d adv an ces 1 ,0 43,947,1 87 - - - 1 ,0 43,641 - 1 ,0 44,990 ,828Av ailab le-for-sale fin an cial assets 3,0 0 0 ,0 0 0 239,668 - - - - 3,239,668Oth erassets 1 2,966,325 34,1 33 1 31 ,633 - 8,71 3 - 1 3,1 40 ,80 4Total fin an cial assets 1 ,60 2,31 1 ,232 66,277,1 90 48,348,841 778,559 5,381 ,459 2,1 20 ,1 60 1 ,725,21 7,441

Financial liabilitiesDeposits from b an k s 1 27,494,371 2,770 ,678 - - 82 - 1 30 ,265,1 31Deposits from custom ers 1 ,228,566,0 1 2 65,996,770 1 65,950 96 5,323,744 4,475 1 ,30 0 ,0 57,0 47Borrow in gs 64,0 39,543 - - - - - 64,0 39,543Oth erliab ilities 25,1 90 ,429 7,523,60 0 - - 1 8,0 1 3 4 32,732,0 46Total fin an cial liab ilities 1 ,445,290 ,355 76,291 ,0 48 1 65,950 96 5,341 ,839 4,479 1 ,527,0 93,767

N et position 1 57,0 20 ,877 (1 0 ,0 1 3,858) 48,1 82,891 778,463 39,620 2,1 1 5,681 1 98,1 23,674

Million Riel equivalent 627,298 (40 ,0 0 5) 1 92,491 3,1 1 0 1 58 8,452 791 ,50 4

Credit com m itm en ts 1 1 0 ,20 0 ,1 38 67,699 - - 425,446 - 1 1 0 ,693,283

Million Riel equivalent 440 ,250 270 - - 1 ,70 0 - 442,220


CANADIA BANK PLC.


70




(in US$) BankUS$ Riel RMB EUR THB Other Total

As at 31 December 2014Financial assetsCash on h an d 1 0 5,1 29,1 0 2 30 ,71 4,736 - 79,477 6,71 4,0 0 4 877,1 95 1 43,51 4,51 4Balan ces w ith th e N BC* 458,332,60 0 50 ,638,50 2 - - - - 50 8,971 ,1 0 2Balan ces w ith oth erb an k s 1 72,632,593 3,481 ,751 47,994,648 466,1 32 725,0 0 0 1 ,0 36,0 73 226,336,1 97Loan s an d adv an ces 1 ,328,1 1 1 ,30 0 651 ,1 71 - - - 1 ,594,1 37 1 ,330 ,356,60 8Oth erassets 20 ,476,321 1 67,1 0 2 - - - 1 49,0 40 20 ,792,463Total fin an cial assets 2,0 84,681 ,91 6 85,653,262 47,994,648 545,60 9 7,439,0 0 4 3,656,445 2,229,970 ,884

Financial liabilitiesDeposits from b an k s 20 3,735,270 4,40 1 ,285 - - 55,954 245 20 8,1 92,754Deposits from custom ers 1 ,550 ,660 ,0 65 85,782,678 5,367,347 84 7,21 7,51 2 4,1 52 1 ,649,0 31 ,838Borrow in gs 1 0 0 ,779,775 - - - - - 1 0 0 ,779,775Oth erliab ilities 37,0 79,723 1 ,0 20 ,629 - - - 30 ,0 84 38,1 30 ,436Total fin an cial liab ilities 1 ,892,254,833 91 ,20 4,592 5,367,347 84 7,273,466 34,481 1 ,996,1 34,80 3

N et position 1 92,427,0 83 (5,551 ,330 ) 42,627,30 1 545,525 1 65,538 3,621 ,964 233,836,0 81

Million Riel equivalent 784,1 40 (22,622) 1 73,70 6 2,223 675 1 4,760 952,882

Credit com m itm en ts 1 25,482,41 5 31 2,936 - 21 1 ,752 1 41 ,794 237,839 1 26,386,736

Million Riel equivalent 51 1 ,341 1 ,275 - 863 578 969 51 5,0 26


CANADIA BANK PLC.


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a) Foreign exchange risk (continued)

(in US$) BankUS$ Riel RMB EUR THB Other Total

As at 31 December 2013Financial assetsCash on h an d 88,0 70 ,71 3 33,796,781 3,51 7 25,0 56 3,833,467 889,0 95 1 26,61 8,629Balan ces w ith th e N BC* 30 3,0 1 3,458 27,995,957 - - - - 331 ,0 0 9,41 5Balan ces w ith oth erb an k s 1 51 ,430 ,486 3,1 0 0 ,468 48,21 3,691 745,1 99 495,638 1 ,231 ,0 64 20 5,21 6,546Loan s an d adv an ces 1 ,0 43,947,1 87 - - - 1 ,0 43,641 - 1 ,0 44,990 ,828Oth erassets 1 2,966,325 34,1 33 1 31 ,633 - 8,71 3 - 1 3,1 40 ,80 4Total fin an cial assets 1 ,599,428,1 69 64,927,339 48,348,841 770 ,255 5,381 ,459 2,1 20 ,1 59 1 ,720 ,976,222

Financial liabilitiesDeposits from b an k s 1 27,494,371 2,770 ,678 - - 82 - 1 30 ,265,1 31Deposits from custom ers 1 ,235,0 0 7,751 65,996,770 1 65,950 96 5,323,744 4,475 1 ,30 6,498,786Borrow in gs 64,0 39,543 - - - - - 64,0 39,543Oth erliab ilities 25,1 85,791 7,523,60 0 - - 1 8,0 1 3 4 32,727,40 8Total fin an cial liab ilities 1 ,451 ,727,456 76,291 ,0 48 1 65,950 96 5,341 ,839 4,479 1 ,533,530 ,868

N et position 1 47,70 0 ,71 3 (1 1 ,363,70 9) 48,1 82,891 770 ,1 59 39,620 2,1 1 5,680 1 87,445,354

Million Riel equivalent 590 ,0 64 (45,398) 1 92,491 3,0 77 1 58 8,452 748,844

Credit com m itm en ts 1 1 0 ,20 0 ,1 38 67,699 - - 425,446 - 1 1 0 ,693,283

Million Riel equivalent 440 ,250 270 - - 1 ,70 0 - 442,220


CANADIA BANK PLC.


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b) Equity price risk

Equityprice risk is th e risk th at th e fairv alues ofequityin strum en ts w ill fluctuate as a resultof ch an ges in th e lev els of equity in dices an d th e v alue of in div idual stock s. Th e Group isexposed toequity securities price risk . Th is arises from in v estm en ts h eld b y th e Group forw h ich prices in th e future are un certain . Th e Group does n ot h av e a policy tom an age itsprice risk .

c) Interest rate risk

In terest rate risk is th e risk th at th e future cash flow s ofa fin an cial in strum en t w ill fluctuateb ecause ofch an ges in m ark et in terest rates. Fair v alue in terest rate risk is th e risk th at th ev alue of a fin an cial in strum en t w ill fluctuate b ecause of ch an ges in m ark et in terest rates.In terest m argin s m ayin crease as a result ofch an ges b ut m ayreduce losses in th e ev en t th atun expected m ov em en ts arise. At th is stage, th e m an agem en t ofth e Group an d th e Ban k don ot h av e a policytoset lim its on th e lev el ofm ism atch ofin terest rate repricin g.

Th e tab le b elow sum m arises th e exposures ofth e Group an d ofth e Ban k toin terest rate risk .Th e assets an d liab ilities at carryin g am oun t are categorised b y th e earlier of con tractualrepricin g orm aturitydates.

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c) Interest rate risk (continued)

Group

Up to 1 month 1 to 3 months 4 to 12 months 1 to 5 years Over 5 yearsNon-interest

bearing TotalUS$ US$ US$ US$ US$ US$ US$

As at 31 December 2014Financial assetsCash on h an d - - - - - 1 43,51 4,81 4 1 43,51 4,81 4Balan ces w ith th e N BC* 1 87,856,331 - - - - 322,0 96,366 50 9,952,697Balan ces w ith oth erb an k s 1 0 0 ,61 7,650 - 72,31 6,880 - - 53,40 1 ,667 226,336,1 97Loan s an d adv an ces 256,0 95,274 1 0 6,41 9,1 91 575,447,798 226,0 30 ,931 1 66,363,41 4 - 1 ,330 ,356,60 8Av ailab le-for-sale fin an cial assets - - - - - 1 84,990 1 84,990Oth erassets - - - - - 20 ,792,463 20 ,792,463

544,569,255 1 0 6,41 9,1 91 647,764,678 226,0 30 ,931 1 66,363,41 4 539,990 ,30 0 2,231 ,1 37,769

Financial liabilitiesDeposits from b an k s 59,535,0 45 1 4,1 1 6,90 6 95,0 21 ,51 8 445,40 0 - 39,0 73,885 20 8,1 92,754Deposits from custom ers 758,0 71 ,391 1 79,40 2,462 566,238,773 60 ,655,527 - 75,1 51 ,1 65 1 ,639,51 9,31 8Borrow in gs 20 ,0 0 0 ,0 0 0 - - 34,289,775 46,490 ,0 0 0 - 1 0 0 ,779,775Oth erliab ilities - - - - - 38,1 36,676 38,1 36,676

837,60 6,436 1 93,51 9,368 661 ,260 ,291 95,390 ,70 2 46,490 ,0 0 0 1 52,361 ,726 1 ,986,628,523

Total in terest rate re-pricin g gap (293,0 37,1 81 ) (87,1 0 0 ,1 77) (1 3,495,61 3) 1 30 ,640 ,229 1 1 9,873,41 4 387,628,574 244,50 9,246

Million Riel equivalent (1 ,1 94,1 27) (354,933) (54,995) 532,359 488,484 1 ,579,586 996,374


CANADIA BANK PLC.


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Group



As at 31 December 2013Financial assetsCash on h an d - - - - - 1 26,61 8,929 1 26,61 8,929Balan ces w ith th e N BC* 332,0 1 0 ,666 - - - - - 332,0 1 0 ,666Balan ces w ith oth erb an k s 1 20 ,81 4,80 8 - 48,879,20 9 - - 35,522,529 20 5,21 6,546Loan s an d adv an ces 1 36,781 ,0 1 5 1 47,265,1 95 492,886,924 1 55,1 1 1 ,30 5 93,972,692 1 8,973,697 1 ,0 44,990 ,828Av ailab le-for-sale fin an cial assets - - - 3,0 0 0 ,0 0 0 - 239,668 3,239,668Oth erassets - - - - - 1 3,1 40 ,80 4 1 3,1 40 ,80 4

589,60 6,489 1 47,265,1 95 541 ,766,1 33 1 58,1 1 1 ,30 5 93,972,692 1 94,495,627 1 ,725,21 7,441

Financial liabilitiesDeposits from b an k s 51 ,755,965 4,0 79,842 61 ,0 41 ,392 480 ,0 0 0 - 1 2,90 7,932 1 30 ,265,1 31Deposits from custom ers 593,427,472 1 28,867,846 453,61 7,681 43,999,1 61 - 80 ,1 44,887 1 ,30 0 ,0 57,0 47Borrow in gs 32,80 0 ,0 0 0 - - 579,543 30 ,660 ,0 0 0 - 64,0 39,543Oth erliab ilities - - - - - 32,732,0 46 32,732,0 46

677,983,437 1 32,947,688 51 4,659,0 73 45,0 58,70 4 30 ,660 ,0 0 0 1 25,784,865 1 ,527,0 93,767

Total in terest rate re-pricin g gap (88,376,948) 1 4,31 7,50 7 27,1 0 7,0 60 1 1 3,0 52,60 1 63,31 2,692 68,71 0 ,762 1 98,1 23,674

Million Riel equivalent (353,0 66) 57,1 98 1 0 8,293 451 ,645 252,934 274,499 791 ,50 3


CANADIA BANK PLC.


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Bank



As at 31 December 2014Financial assetsCash on h an d - - - - - 1 43,51 4,51 4 1 43,51 4,51 4Balan ces w ith th e N BC* 1 87,856,331 - - - - 321 ,1 1 4,771 50 8,971 ,1 0 2Balan ces w ith oth erb an k s 1 0 0 ,61 7,650 - 72,31 6,880 - - 53,40 1 ,667 226,336,1 97Loan s an d adv an ces 256,0 95,274 1 0 6,41 9,1 91 575,447,798 226,0 30 ,931 1 66,363,41 4 - 1 ,330 ,356,60 8Oth erassets - - - - - 20 ,792,463 20 ,792,463

544,569,255 1 0 6,41 9,1 91 647,764,678 226,0 30 ,931 1 66,363,41 4 538,823,41 5 2,229,970 ,884

Financial liabilitiesDeposits from b an k s 59,535,0 45 1 4,1 1 6,90 6 95,0 21 ,51 8 445,40 0 - 39,0 73,885 20 8,1 92,754Deposits from custom ers 758,0 71 ,391 1 79,40 2,462 566,238,773 60 ,655,527 - 84,663,685 1 ,649,0 31 ,838Borrow in gs 20 ,0 0 0 ,0 0 0 - - 34,289,775 46,490 ,0 0 0 - 1 0 0 ,779,775Oth erliab ilities - - - - - 38,1 30 ,436 38,1 30 ,436

837,60 6,436 1 93,51 9,368 661 ,260 ,291 95,390 ,70 2 46,490 ,0 0 0 1 61 ,868,0 0 6 1 ,996,1 34,80 3

Total in terest rate re-pricin g gap (293,0 37,1 81 ) (87,1 0 0 ,1 77) (1 3,495,61 3) 1 30 ,640 ,229 1 1 9,873,41 4 376,955,40 9 233,836,0 81

Million Riel equivalent (1 ,1 94,1 27) (354,933) (54,995) 532,359 488,484 1 ,536,0 94 952,882


CANADIA BANK PLC.


76




Bank



As at 31 December 2013Financial assetsCash on h an d - - - - - 1 26,61 8,629 1 26,61 8,629Balan ces w ith th e N BC * 51 ,678,0 0 0 - - - - 279,331 ,41 5 331 ,0 0 9,41 5Balan ces w ith oth erb an k s 1 20 ,81 4,80 8 - 48,879,20 9 - - 35,522,529 20 5,21 6,546Loan s an d adv an ces 1 36,781 ,0 1 5 1 47,265,1 95 492,886,924 1 55,1 1 1 ,30 5 93,972,692 1 8,973,697 1 ,0 44,990 ,828Oth erassets - - - - - 1 3,1 40 ,80 4 1 3,1 40 ,80 4

30 9,273,823 1 47,265,1 95 541 ,766,1 33 1 55,1 1 1 ,30 5 93,972,692 473,587,0 74 1 ,720 ,976,222

Financial liabilitiesDeposits from b an k s 51 ,755,965 4,0 79,842 61 ,0 41 ,392 480 ,0 0 0 - 1 2,90 7,932 1 30 ,265,1 31Deposits from custom ers 594,569,21 1 1 28,867,846 458,91 7,681 43,999,1 61 - 80 ,1 44,887 1 ,30 6,498,786Borrow in gs 32,80 0 ,0 0 0 - - 579,543 30 ,660 ,0 0 0 - 64,0 39,543Oth erliab ilities - - - - - 32,727,40 8 32,727,40 8

679,1 25,1 76 1 32,947,688 51 9,959,0 73 45,0 58,70 4 30 ,660 ,0 0 0 1 25,780 ,227 1 ,533,530 ,868

Total in terest rate repricin g gap (369,851 ,353) 1 4,31 7,50 7 21 ,80 7,0 60 1 1 0 ,0 52,60 1 63,31 2,692 347,80 6,847 1 87,445,354

Million Riel equivalent (1 ,477,556) 57,1 98 87,1 1 9 439,660 252,934 1 ,389,488 748,843


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33.3 Liquidity risk

Liquidity risk is th e risk th at th e Group an d th e Ban k are un ab le to m eet its paym en tob ligation s associated w ith its fin an cial liab ilities w h en th ey fall due an d to replace fun dsw h en th eyare w ith draw n . Th e con sequen ce ofth is m ayb e th e failure tom eet ob ligation s torepaydepositors an d fulfil com m itm en ts tolen d.

a) Liquidity risk management process

M an agem en t m on itors b alan ce sh eet liquidity an d m an age th e con cen tration an d profile ofdeb t m aturities. M on itorin g an d reportin g, tak in g th e form of daily cash position an dprojection for th e n ext day, w eek an d m on th respectiv ely, are k ey periods for liquiditym an agem en t. In addition , m an agem en t m on itors th e m ov em en t of m ain depositors an dprojection ofth eirw ith draw als.

b) Funding approach

Th e Group’s an d Ban k ’s m ain sources of liquidity arise from sh areh older’s sh are capital,custom ers’ deposits an d b orrow in gs. Th e sources of liquidity are regularly rev iew ed b ym an agem en t th rough rev iew ofm aturityofterm deposits an d th e k eydepositors.

c) Non-derivative cash flows

Th e tab le b elow presen ts th e cash flow s ofth e fin an cial in strum en ts b y th e Group an d th eBan k b yrem ain in g con tractual m aturities at th e b alan ce sh eet date. Th e am oun ts disclosedin th e tab le are th e con tractual un discoun ted cash flow s, w h ereas th e Group an d th e Ban km an age th e in h eren t liquidityrisk b ased on expected un discoun ted cash flow s.

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33.3 Liquidity risk(con tin ued)

c) Non-derivative cash flows(continued)

GroupUp to 1 month 1 to 3 months 4 to 12 months 1 to 5 years Over 5 years Total

US$ US$ US$ US$ US$ US$As at 31 December 2014Financial assetsCash on h an d 1 43,51 4,81 4 - - - - 1 43,51 4,81 4Balan ces w ith th e N BC* 50 9,966,30 6 - - - - 50 9,966,30 6Balan ces w ith oth erb an k s 1 54,0 86,696 - 73,1 0 3,628 - - 227,1 90 ,324Loan s an d adv an ces 269,1 74,375 1 0 7,70 0 ,234 578,70 0 ,1 75 227,567,21 2 1 67,1 39,339 1 ,350 ,281 ,335Av ailab le-for-sale fin an cial assets - - 1 84,990 - - 1 84,990Oth erassets 20 ,792,463 - - - - 20 ,792,463Total fin an cial assets b yrem ain in g

con tractual m aturities 1 ,0 97,534,654 1 0 7,70 0 ,234 651 ,988,793 227,567,21 2 1 67,1 39,339 2,251 ,930 ,232

Financial liabilitiesDeposits from b an k s 99,541 ,790 1 4,260 ,437 96,1 86,685 451 ,226 - 21 0 ,440 ,1 38Deposits from custom ers 849,0 0 0 ,634 1 77,0 1 2,682 572,90 1 ,268 61 ,624,465 - 1 ,660 ,539,0 49Borrow in gs 20 ,0 64,1 1 3 - - 34,326,1 36 46,722,590 1 0 1 ,1 1 2,839Oth erliab ilities 38,1 36,676 - - - - 38,1 36,676Total fin an cial liab ilities b yrem ain in g

con tractual m aturities 1 ,0 0 6,743,21 3 1 91 ,273,1 1 9 669,0 87,953 96,40 1 ,827 46,722,590 2,0 1 0 ,228,70 2

N et liquiditysurplus/(gap) 90 ,791 ,441 (83,572,885) (1 7,0 99,1 60 ) 1 31 ,1 65,385 1 20 ,41 6,749 241 ,70 1 ,530

Million Riel equivalent369,975 (340 ,560 ) (69,679) 534,499 490 ,698 984,933


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33.3 Liquidity risk (con tin ued)


GroupUp to 1 month 1 to 3 months 4 to 12 months 1 to 5 years Over 5 years Total

US$ US$ US$ US$ US$ US$As at 31 December 2013Financial assetsCash on h an d 1 26,61 8,929 - - - - 1 26,61 8,929Balan ces w ith th e N BC* 51 ,678,0 0 0 280 ,339,875 - - - 332,0 1 7,875Balan ces w ith oth erb an k s 1 52,71 3,223 52,368,346 - - - 20 5,0 81 ,569Loan s an d adv an ces 30 5,451 ,644 80 ,267,1 46 376,467,998 20 1 ,371 ,928 95,524,454 1 ,0 59,0 83,1 70Av ailab le-for-sale fin an cial assets 239,667 - 1 51 ,239 3,0 0 0 ,0 0 0 - 3,390 ,90 6Oth erassets 1 3,1 40 ,80 4 - - - - 1 3,1 40 ,80 4Total fin an cial assets b yrem ain in g

con tractual m aturities 649,842,267 41 2,975,367 376,61 9,237 20 4,371 ,928 95,524,454 1 ,739,333,253

Financial liabilitiesDeposits from b an k s 65,1 59,421 4,1 55,71 4 61 ,723,71 9 496,1 24 - 1 31 ,534,978Deposits from custom ers 681 ,261 ,1 89 1 30 ,420 ,723 458,582,796 44,61 6,0 90 - 1 ,31 4,880 ,798Borrow in gs - - 32,879,722 699,0 90 30 ,660 ,0 0 0 64,238,81 2Oth erliab ilities 32,732,0 46 - - - - 32,732,0 46Total fin an cial liab ilities b yrem ain in g

con tractual m aturities 779,1 52,656 1 34,576,437 553,1 86,237 45,81 1 ,30 4 30 ,660 ,0 0 0 1 ,543,386,634

N et liquiditysurplus/(gap) (1 29,31 0 ,389) 278,398,930 (1 76,567,0 0 0 ) 1 58,560 ,624 64,864,454 1 95,946,61 9

Million Riel equivalent (51 6,595) 1 ,1 1 2,20 4 (70 5,385) 633,450 259,1 33 782,80 7


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BankUp to 1 month 1 to 3 months 4 to 12 months 1 to 5 years Over 5 years Total

US$ US$ US$ US$ US$ US$As at 31 December 2014Financial assetsCash on h an d 1 43,51 4,51 4 - - - - 1 43,51 4,51 4Balan ces w ith th e N BC* 50 8,984,71 1 - - - - 50 8,984,71 1Balan ces w ith oth erb an k s 1 54,0 86,696 - 73,1 0 3,628 - - 227,1 90 ,324Loan s an d adv an ces 269,1 74,375 1 0 7,70 0 ,234 578,70 0 ,1 75 227,567,21 2 1 67,1 39,339 1 ,350 ,281 ,335Oth erassets 20 ,792,463 20 ,792,463Total fin an cial assets b yrem ain in g

con tractual m aturities 1 ,0 96,552,759 1 0 7,70 0 ,234 651 ,80 3,80 3 227,567,21 2 1 67,1 39,339 2,250 ,763,347

Financial liabilitiesDeposits from b an k s 99,541 ,790 1 4,260 ,437 96,1 86,685 451 ,226 - 21 0 ,440 ,1 38Deposits from custom ers 853,21 3,1 54 1 82,31 2,682 572,90 1 ,268 61 ,624,465 - 1 ,670 ,0 51 ,569Borrow in gs 20 ,0 64,1 1 3 - - 34,326,1 36 46,722,590 1 0 1 ,1 1 2,839Oth erliab ilities 38,1 30 ,436 - - - - 38,1 30 ,436Total fin an cial liab ilities b yrem ain in g

con tractual m aturities 1 ,0 1 0 ,949,493 1 96,573,1 1 9 669,0 87,953 96,40 1 ,827 46,722,590 2,0 1 9,734,982

N et liquiditysurplus/(gap) 85,60 3,266 (88,872,885) (1 7,284,1 50 ) 1 31 ,1 65,385 1 20 ,41 6,749 231 ,0 28,365

Million Riel equivalent 348,833 (362,1 57) (70 ,433) 534,499 490 ,698 941 ,440


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c) Non-derivative cash flows (continued)

BankUp to 1 month 1 to 3 months 4 to 12 months 1 to 5 years Over 5 years Total

US$ US$ US$ US$ US$ US$As at 31 December 2013Financial assetsCash on h an d 1 26,61 8,629 - - - - 1 26,61 8,629Balan ces w ith th e N BC* 51 ,678,0 0 0 279,338,624 - - - 331 ,0 1 6,624Balan ces w ith oth erb an k s 1 52,71 3,223 52,368,346 - - - 20 5,0 81 ,569Loan s an d adv an ces 30 5,451 ,644 80 ,267,1 46 376,467,998 20 1 ,371 ,928 95,524,454 1 ,0 59,0 83,1 70Oth erassets 1 3,1 40 ,80 4 - - - - 1 3,1 40 ,80 4Total fin an cial assets b yrem ain in g

con tractual m aturities 649,60 2,30 0 41 1 ,974,1 1 6 376,467,998 20 1 ,371 ,928 95,524,454 1 ,734,940 ,796

Financial liabilitiesDeposits from b an k s 65,1 59,421 4,1 55,71 4 61 ,723,71 9 496,1 24 - 1 31 ,534,978Deposits from custom ers 682,40 2,929 1 30 ,420 ,723 463,882,796 44,61 6,0 90 - 1 ,321 ,322,538Borrow in gs - - 32,879,722 699,0 90 30 ,660 ,0 0 0 64,238,81 2Oth erliab ilities 32,727,40 8 - - - - 32,727,40 8Total fin an cial liab ilities b yrem ain in g

con tractual m aturities 780 ,289,758 1 34,576,437 558,486,237 45,81 1 ,30 4 30 ,660 ,0 0 0 1 ,549,823,736

N et liquiditysurplus/(gap) (1 30 ,687,458) 277,397,679 (1 82,0 1 8,239) 1 55,560 ,624 64,864,454 1 85,1 1 7,0 60

Million Riel equivalent (522,0 96) 1 ,1 0 8,20 4 (727,1 63) 621 ,465 259,1 33 739,543


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d) Off-balance sheet items

i. Loan commitments

Th e con tractual m aturity dates of th e Group an d th e Ban k ’s off-b alan ce sh eet fin an cialin strum en ts w ith com m itm en t to exten d credit to custom ers an d oth er facilities aresum m arised in th e tab le b elow .

ii. Other financial facilities

Oth erfin an cial facilities are alsoin cluded b elow b ased on th e earliest con tractual date.

iii. Operating lease commitments

W h ere th e Ban k is th e lessee, th e future m in im um lease paym en ts un der n on -can cellab leoperatin g leases are sum m arised in th e tab le b elow .

A ll com m itm en ts ofth e Group an d th e Ban k , as disclosed in N ote 31 , are sum m arised in th etab le b elow .

No later than1 year 1 to 5 year Over 5 years Total

As at 31 December 2014Un used portion ofapprov ed

credit facilities 88,81 9,246 - - 88,81 9,246Acceptan ces an d oth er

fin an cial facilities 35,729,772 1 ,837,71 8 - 37,567,490Operatin g lease com m itm en ts 991 ,990 2,923,498 3,262,335 7,1 77,823

1 25,541 ,0 0 8 4,761 ,21 6 3,262,335 1 33,564,559

Million Riel equivalent 51 1 ,580 1 9,40 2 1 3,294 544,276

As at 31 December 2013Un used portion ofapprov ed

credit facilities 85,1 1 0 ,356 - - 85,1 1 0 ,356Acceptan ces an d oth er

fin an cial facilities 22,622,983 2,959,944 - 25,582,927Operatin g lease com m itm en ts 983,40 0 3,258,522 3,21 4,51 2 7,456,434

1 0 8,71 6,739 6,21 8,466 3,21 4,51 2 1 1 8,1 49,71 7

Million Riel equivalent 434,323 24,843 1 2,842 472,0 0 8

CANADIA BANK PLC.


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33.4 Fair value of financial assets and liabilities

As at th e b alan ce sh eet date, th e fairv alues offin an cial in strum en ts ofth e Group an d ofth eBan k approxim ate th eircarryin g am oun ts.

Th e estim ated fairv alues are b ased on th e follow in g m eth odologies an d assum ption s:

(i) Balan ces w ith th e N BC an d oth erb an k s

Th e carryin g am oun ts of b alan ces w ith th e N BC an d oth er b an k s approxim ate th eir fairv alues, sin ce th ese accoun ts con sist m ostlyofcurren t, sav in gs an d sh ort-term deposits.

(ii) Loan s an d adv an ces

Loan s an d adv an ces are stated, n et ofun am ortised loan com m itm en t fees less an yam oun tsw ritten off an d allow an ce for losses on loan s an d adv an ces as determ in ed b ased on th erequirem en ts ofth e relev an t N BC’s Prak as.

(iii) Av ailab le-for-sale fin an cial assets

Th e fairv alue ofequitysecurities is b ased on quoted m ark et prices at th e reportin g date.

(iv ) Deposits from b an k s an d custom ers

Th e fair v alues of deposits from custom ers an d deposits from b an k s approxim ate th eircarryin g am oun ts. Th e estim ated fair v alue of deposits w ith n o stated m aturities, w h ichin clude n on -in terest earn in g deposits, is th e am oun t repayab le on dem an d.

Deposits w ith fixed in terest are n ot quoted in th e activ e m ark et an d are sh ort-term . Th eirfairv alue approxim ates th e carryin g am oun t.

(v ) Borrow in gs an d sub ordin ated deb t

Borrow in gs an d sub ordin ated deb t are n ot quoted in activ e m ark et an d th eir fair v alueapproxim ates th eircarryin g am oun t.

(v i) Oth erfin an cial assets an d liab ilities

Th e carryin g am oun ts of oth er fin an cial assets an d liab ilities are assum ed to approxim ateth eir fair v alues as th ese item s are n ot m aterially sen sitiv e to th e sh ift in m ark et in terestrates.

CANADIA BANK PLC.


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33.5 Capital management

Th e Ban k ’s ob jectiv es w h en m an agin g capital, w h ich is a b roader con cept th an th e ‘equity’on th e face ofb alan ce sh eet, are:

tocom plyw ith th e capital requirem en t set b yth e N BC tosafeguard th e Ban k ’s ab ilitytocon tin ue as a goin g con cern soth at it can con tin ue to

prov ide return s forsh areh olders an d b en efits foroth erstak eh olders an d tom ain tain a stron g capital b ase tosupport th e dev elopm en t ofb usin ess.

Th e N BC requires all com m ercial b an k s toi) h old a m in im um capital requirem en t, ii) m ain tainth e Ban k ’s n et w orth at least equal to th e m in im um capital, an d iii) com ply w ith solv en cy,liquidityan d oth erpruden tial ratios.

Th e tab le b elow sum m arises th e com position ofth e Ban k ’s regulatorycapital:


Sh are capital 1 40 ,0 0 0 ,0 0 0 570 ,50 0 1 40 ,0 0 0 ,0 0 0 559,30 0Reserv es 78,0 50 ,777 31 8,0 57 43,0 50 ,777 1 71 ,988Retain ed earn in gs 71 ,1 75,765 290 ,0 41 60 ,40 9,431 241 ,336

289,226,542 1 ,1 78,598 243,460 ,20 8 972,624

Less:In tan gib le assets (1 ,0 24,1 27) (4,1 73) (454,884) (1 ,81 7)Loan s torelated parties (51 3,240 ) (2,0 91 ) (737,888) (2,948)In v estm en ts in fin an cial

in stitution s (1 1 ,0 25,588) (44,929) (1 1 ,0 25,588) (44,0 48)Add: Gen eral prov ision 1 2,61 4,860 50 ,396 1 0 ,296,681 41 ,1 35

289,278,447 1 ,1 77,80 1 241 ,538,529 964,946

CANADIA BANK PLC. FINANCIAL STATEMENTS FOR THE YEAR … · 2016-06-20 · M Lor Chee Leng Chairman...

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Transcript of CANADIA BANK PLC. FINANCIAL STATEMENTS FOR THE YEAR … · 2016-06-20 · M Lor Chee Leng Chairman...