ANSA Merchant Bank : 20 Mar 2023 – ANSA Merchant Bank Limited – Audited Consolidated Financial Statements for the year ended December 31st, 2022

ANSA MERCHANT BANK LIMITED

ABRIDGED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

SEPARATE AND CONSOLIDATED STATEMENT OF INCOME/(LOSS)

FOR THE YEAR ENDED 31 DECEMBER 2022 (Expressed in thousands of Trinidad and Tobago dollars)

2021		Parent		2022			Group
	2022		Net insurance revenue			2021
-		-	374,185			427,461
140,923		106,569	Finance charges, loan fees	171,702		184,511
	and other interest income
69,522	36,023	Investment income/(loss)	(32,995)	376,603
32,499	26,654	Revenue from contracts	17,524		11,872
with customers
47,481		38,962	Other income	190,534			155,395
290,425		208,208		Total operating income	720,950			1,155,842
-		-	Net insurance benefits and	(337,809)	(361,018)
	claims incurred
(47,152)	(55,643)	Interest expense	(86,790)	(76,697)
					Credit loss (expense)/recovery
					on net investment in leased
(23,357)	27,382	assets, loans and advances,		20,292		(26,786)
and investment securities
219,916	179,947	Net operating income	316,643		691,341
(2,790)	(3,829)	Marketing and policy expenses	(67,955)	(69,219)
(40,553)	(43,990)	Personnel expenses	(141,344)	(125,266)
(4,516)	(4,476)	Depreciation and	(41,121)	(43,371)
amortisation
(2,160)	(2,160)	Management fees	(6,710)	(6,744)
(23,675)	(21,316)	General administrative expenses	(93,560)	(86,562)
(73,694)	(75,771)	Total selling and	(350,690)	(331,162)
administration expenses
146,222		104,176		Net profit/(loss) before taxation	(34,047)	360,179
(21,841)	(27,893)	Taxation	(26,975)	(53,862)
124,381			76,283		Profit/(loss) for the year		(61,022)	306,317
					Profit/(loss) attributable to:
124,381			76,283			(60,944)	306,222
		Equity holders of the Parent
-			-		Non-controlling interest		(78)	95
124,381			76,283				(61,022)	306,317
					Basic and diluted (loss)/		(0.71)				3.58
					earning per share ($ per share)
					Weighted average	85,605			85,605
					number of shares ('000)

SEPARATE AND CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME/(LOSS)

FOR THE YEAR ENDED 31 DECEMBER 2022 (Expressed in thousands of Trinidad and Tobago dollars)

2021		Parent		2022		Group
	2022		Profit/(loss) for the year		2021
124,381		76,283		(61,022)	306,317
					Other comprehensive income/
					(loss) that will not be
					reclassified to profit or loss
					in subsequent periods:
					Net (loss)/gain on investment
(470)	1	securities at fair value through	-		-
other comprehensive income
(4,178)	(799)	Other movements	2,926	(1,580)
2,250		(1,509)	Experience gains/(losses) on	(13,482)	16,544
	defined benefit plans
(680)	447	Income tax effect	3,350	(4,504)
1,570			(1,062)		(10,132)		12,040
(3,078)	(1,860)	Other comprehensive income/	(7,206)	10,460
					(loss) that may be reclassified
					subsequently to profit and loss,
					net of tax
					Debt instruments at fair value
					through other comprehensive
					income
(442)	(918)	Net change in fair value during	(1,161)	(867)
the year
(2,314)	(1)	Changes in allowance for	(104)	(2,318)
1,117			92	expected credit losses
	Income tax effect	92	1,117
(1,639)	(827)		(1,173)	(2,068)
-		-	Exchange differences on	(224)	4,135
	translation of foreign operations
119,664			73,596	Total comprehensive income/	(69,625)	318,844
	(loss) for the year, net of tax
119,664			73,596	Attributable to:	(69,547)	318,749
	Equity holders of the Parent
-			-	Non-controlling interest	(78)	95
119,664			73,596		(69,625)	318,844

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ANSA MERCHANT BANK LIMITED

ABRIDGED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

SEPARATE STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2022 (Expressed in thousands of Trinidad and Tobago dollars)

Parent

Balance as at 31 December 2020

Profit for the year

Other comprehensive loss for the year Transfer from general loan loss reserve Transfer to statutory reserve fund Dividends (Final 2020 and Interim 2021)

Balance as at 31 December 2021

Balance as at 31 December 2021

Profit for the year

Other comprehensive (loss)/income for the year Transfer from general loan loss reserve Transfer to statutory reserve fund

Dividends (Final 2021 and Interim 2022)

Balance as at 31 December 2022

Stated	Statutory	General	Fair value	Foreign	Retained	Total
reserve	loan loss	reserve/	currency
capital	fund	reserve	(deficit)	reserve	earnings	equity
667,274	215,898	5,596	489	1,142	640,660	1,531,059
-	-	-	-	-	124,381	124,381
-	-	-	(442)	(470)	(3,805)	(4,717)
-	-	(828)	-	-	828	-
-	9,998	-	-	-	(9,998)	-
-	-	-	-	-	(81,325)	(81,325)
667,274	225,896	4,768	47	672	670,741	1,569,398
667,274	225,896	4,768	47	672	670,741	1,569,398
-	-	-	-	-	76,283	76,283
-	-	-	(918)	1	(1,770)	(2,687)
-	-	(884)	-	-	884	-
-	4,378	-	-	-	(4,378)	-
-	-	-	-	-	(102,726)	(102,726)
667,274	230,274	3,884	(871)	673	639,034	1,540,268

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2022 (Expressed in thousands of Trinidad and Tobago dollars)

Group

Balance as at 31 December 2020

Profit for the year

Other comprehensive (loss)/income for the year Other life insurance reserve movements Transfer to general loan loss reserve Transfer to statutory reserve fund

Transfer from statutory surplus reserve Dividends (Final 2020 and Interim 2021) Other reserve movements

Balance as at 31 December 2021

	Statutory	Statutory	General		Foreign		Total equity	Non-
Stated	Fair value	Retained	attributable to	Total
reserve	surplus	loan loss	currency	equity holders	controlling
capital	fund	reserve	reserve	deficit	deficit	earnings	of the parent	interest	equity
667,274	231,841	66,539	13,906	(369)	(5,351)	1,703,081	2,676,921	649	2,677,570
-	-	-	-	-	-	306,222	306,222	95	306,317
-	-	-	-	(867)	4,135	9,259	12,527	-	12,527
-	-	-	-	-	-	(11,817)	(11,817)	-	(11,817)
-	-	-	677	-	-	(677)	-	-	-
-	9,998	-	(828)	-	-	(9,170)	-	-	-
-	-	(66,539)	-	-	-	66,539	-	-	-
-	-	-	-	-	-	(81,325)	(81,325)	-	(81,325)
-	-	-	(235)	-	-	-	(235)	-	(235)
667,274	241,839	-	13,520	(1,236)	(1,216)	1,982,112	2,902,293	744	2,903,037

			Statutory	General		Foreign		Total equity	Non-
		Stated	Fair value	Retained	attributable to	Total
Group	reserve	loan loss	currency	equity holders	controlling
capital	fund	reserve	deficit	deficit	earnings	of the parent	interest	equity
Balance as at 31 December 2021	667,274	241,839	13,520	(1,236)	(1,216)	1,982,112	2,902,293	744	2,903,037
Loss for the year	-	-	-	-	-	(60,944)	(60,944)	(78)	(61,022)
Other comprehensive loss for the year	-	-	-	(1,161)	(224)	(7,218)	(8,603)	-	(8,603)
Other life insurance reserve movements	-	-	-	-	-	9,957	9,957	-	9,957
Transfer from general loan loss reserve	-	-	(2,154)	-	-	2,154	-	-	-
Transfer to statutory reserve fund	-	4,379	-	-	-	(4,379)	-	-	-
Dividends (Final 2020 and Interim 2021)	-	-	-	-	-	(102,726)	(102,726)	-	(102,726)
Other reserve movements	-	-	(68)	468	-	8	408	-	408
Balance as at 31 December 2022	667,274	246,218	11,298	(1,929)	(1,440)	1,818,964	2,740,385	666	2,741,051

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ANSA MERCHANT BANK LIMITED

ABRIDGED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

SEPARATE AND CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2022 (Expressed in thousands of Trinidad and Tobago dollars)

2021			Parent		2022		Group
		2022		Cash flows from				2021
146,222			104,176		operating activities	(34,047)	360,179
			Profit/(loss) before taxation
670			980		Adjustments for:	(3,255)	(3,967)
			Employee benefits
	-		-	Gain on disposal of property	(4,812)	(4,548)
		and equipment
2,771			2,987		Depreciation and amortisation	36,013				37,663
1,745			1,489		Depreciation of right-of-use assets	5,108				5,708
2,076			3,178		Credit loss expense/(credit loss	4,422				(7,393)
			recovery) on investment securities
(3,368)	(445)	Amortisation of investment securities	(8,100)	(11,164)
and interest capitalised
							Credit loss expense/(credit loss
							recovery) on net investment
21,281			(30,559)	in leased assets	(25,098)	30,617
		and loans and advances
	-		-	Credit loss expense on insurance	384				3,393
		receivables
(7,724)	4,696		(Gain)/loss on revaluation of	146,030				(165,823)
	investment securities
	-		-	Loss on revaluation of investment		-	3,910
		property
4,705			18,160		Loss/(gain) on sale of investment securities	38,014				(21,557)
(69,589)	(60,488)	Interest income	(200,895)	(216,084)
47,152			55,643		Finance costs	86,790				76,697
	4,625				327		Foreign exchange (gains)/losses		7,754					338
150,566			100,144		Operating profit before changes in	48,308				87,969
			operating assets and liabilities
(26,758)	50,354		Decrease/(increase) in investment in leased	(316,982)	(40,439)
	assets and loans and advances
(77,244)	87,561		(Increase)/decrease in other receivables,	33,508				(132,518)
	debtors and prepayments
784,654			(22,549)	Increase/(decrease) in customers' deposits	219,673				745,310
		and other funding instruments
(26,018)	(13,544)	(Decrease)/increase in accrued interest	66,124				76,364
and other payables
(41,944)	11,314		Decrease/(increase) in Central Bank	(132,396)	(82,629)
	reserve account
	-			-		Increase in insurance and		88,477					122,602
		investment contract liabilities
763,256			213,280		Finance costs paid	6,712				776,659
(54,347)	(48,774)	(79,549)	(86,214)
68,234			65,233		Interest received on investment securities	206,770				220,625
	(29,561)		(28,820)	Taxes paid	(18,136)	(45,742)
	747,582				200,919		Net cash generated from operating activities		115,797					865,328
	-		-	Cash flows from investing activities	(5)	(140)
		Placement of fixed deposits
	-		-	Maturity of fixed deposits	25					-
19				-	Proceeds from sale of property and equipment	11,418				14,938
(1,173)	(7,051)	Additions to property and equipment, leases	(154,173)	(192,971)
and intangible assets
	-		-	Purchase of investment property	(40,935)		-
(1,125,730)	(1,226,153)	Purchase of investment securities	(1,832,418)	(2,679,830)
874,161			1,170,075		Sale or maturity of investment securities	1,911,679				2,154,938
(179,190)	(50,000)	Net cash outflow from the purchase		-	(9,080)
of interests in subsidiary
(431,913)	(113,129)	Net cash used in investing activities	(104,409)	(712,146)
	-			600,000		Cash flows from financing activities		-			-
		Issue of debt securities
(202,836)	(600,000)	Repayment of debt securities		-	(202,836)
	(81,325)	(102,726)	Dividends paid	(102,726)	(81,325)
	(284,161)	(102,726)	Net cash used in financing activities	(102,726)	(284,161)
							Net increase/(decrease) in cash
	31,508				(14,939)	(91,338)	(130,979)
		and cash equivalents
584,420				615,928		Cash and cash equivalents at	1,266,389				1,397,368
			the beginning of the year
615,928				600,989		Cash and cash equivalents at the	1,175,051				1,266,389
			end of the year
							Represented by:
615,928				600,989		1,175,051				1,266,389
			Cash and cash equivalents
615,928				600,989			1,175,051				1,266,389
68,234				65,233		Supplemental information:		377,276					397,963
			Interest and dividends received
54,347			48,774		Interest paid	79,549				86,214

NOTES TO THE ABRIDGED SEPARATE AND CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022 (Expressed in thousands of Trinidad and Tobago dollars)

1. Principal activities of the Group

ANSA Merchant Bank Limited (the 'Bank' or 'Parent') is domiciled and was incorporated in the Republic of Trinidad and Tobago on 3 March 1977. Its registered office is located at ANSA Centre, 11

Maraval Road, Port of Spain. The Bank is licensed under the provisions of the Financial Institutions Act 2008 to carry on the following classes of business:

• Confirming House/Acceptance House
• Finance House/Finance Company
• Leasing Corporation
• Mortgage Institution
• Merchant Bank
• Trust Company
• Unit Trust
• Financial Services

The Bank has also been granted full Authorised Dealer Status by the Central Bank of Trinidad and Tobago under Section 5 of the Exchange Control Act, Chapter 79:50 and is authorised to take deposits, grant credit facilities and otherwise deal in foreign currency consistent with the terms of its licence.

The Bank has a primary listing on the Trinidad & Tobago Stock Exchange and was registered by the Trinidad and Tobago Securities and Exchange Commission as a reporting issuer on 18 December 1997. On 6 May 1999 under the Securities Industries Act 1995 the Bank was registered to conduct business as a securities company.

The ANSA Merchant Bank Group (the 'Group') is a financial services group comprising of the Parent and eight subsidiaries at 31 December 2022. A full listing of the Group's subsidiaries is detailed in Note 11. The Group is engaged in a wide range of banking and financial related activities and carries on all classes of long-term and short-term insurance business and the rental of property in Trinidad and Tobago and the Caribbean. The ultimate parent of the Group is ANSA McAL Limited ('Ultimate Parent') which is incorporated in the Republic of Trinidad and Tobago.

2. Significant accounting policies i) Basis of preparation

These abridged financial statements of the Group have been prepared in accordance with the Guidelines on the Publication of Abridged Financial Statements issued by the Central Bank of Trinidad and Tobago in conjunction with Section 80 (1A) of the Financial Institution Act.

The abridged financial statements were derived from the audited financial statements of ANSA Merchant Bank Limited for the year ended 31 December 2022 which have been prepared in accordance with International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board (IASB). The full audited financial statements of the Group can be accessed at each of its offices during normal business hours and on our website (https://tt.ansamerchantbank.com).

These abridged financial statements have been prepared in accordance with accounting policies set out in the respective notes to the audited financial statements, consistently applied from period to period. All new and revised accounting standards and interpretations that are mandatory for the period under review and which are relevant to the Group have been adopted. Additionally, these abridged financial statements were prepared on the basis that it will continue to operate as a going concern.

The abridged financial statements provide comparative information in respect of the previous period. In addition, the Group presents an additional statement of financial position at the beginning of the preceding period when there is a retrospective application of an accounting policy, a retrospective restatement, or a reclassification of items in the financial statements.

Presentation of financial statements

Financial assets and financial liabilities are offset and the net amount reported in the statement of financial position only when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liability simultaneously. Income and expense are not offset in the statement of income unless required or permitted by any accounting standard or interpretation, and as specifically disclosed in the accounting policies of the Group.

The Group presents its statement of financial position broadly in order of liquidity. An analysis of recovery or settlement in the 12 months after the statement of financial position date (current) and greater than 12 months after the statement of financial position date (non-current) is presented in Note 43 of the full financial statements.

Basis of consolidation

The abridged consolidated financial statements comprise the financial statements of ANSA Merchant Bank Limited and its subsidiaries. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.

Specifically, the Group controls an investee if and only if the Group has:

• Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee);
• Exposure, or rights, to variable returns from its involvement with the investee, and
• The ability to use its power over the investee to affect its returns.

Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

• The contractual arrangement with the other vote holders of the investee;
• Rights arising from other contractual arrangements; and
• The Group's voting rights and potential voting rights.

The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the statement of comprehensive income from the date the Group gains control until the date the Group ceases to control the subsidiary.

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