ANSA Merchant Bank : 25 Mar 2022 – ANSA Merchant Bank Limited – Audited Consolidated Financial Statements for the year ended December 31st, 2021 (FULL)

ANSA MERCHANT BANK LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 DECEMBER 2021

Ernst & Young Services Limited

ANSA MERCHANT BANK LIMITED
SEPARATE AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
CONTENTS	Page
Independent Auditor's Report	4 - 13
Separate and Consolidated Statement of Financial Position	14 - 16
Separate and Consolidated Statement of Income	17 - 18
Separate and Consolidated Statement of Comprehensive Income	19 - 20
Separate and Consolidated Statement of Changes in Equity	21 - 24
Separate and Consolidated Statement of Cash Flows	25 - 27
Notes to the Separate and Consolidated Financial Statements
1. Principal activities of the Group	28
2. Significant accounting policies

i)	Basis of preparation	28 - 31
ii)	Changes in accounting policies and disclosures	32 - 35
iii)	Business combinations and goodwill	35 - 36
iv)	Cash and short-term funds	36
v)	Statutory deposits with Central Banks	36
vi)	Financial instruments	37 - 48
vii)	Fair value measurement	48 - 51
viii)	Repurchase and reverse repurchase agreements	52
ix)	Product classification	52
x)	Interest bearing debt and borrowings	52
xi)	Insurance receivables	53
xii)	Reinsurance assets	53
xiii)	Taxation	53 - 54
xiv)	Investment properties	54 - 55
xv)	Property, equipment and leased assets	55

SEPARATE AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

CONTENTS Page

Notes to the Separate and Consolidated Financial Statements (continued)

2. Significant accounting policies (continued)

• 3. Significant accounting judgements and estimates in applying Group policies

• 4. Cash and short-term funds

• 5. Net investment in leased assets and other instalment loans

• 6. Loans and advances

• 7. Investment securities

• 8. Assets pledged

• 9. Insurance receivables

• 10. Other debtors and prepayments

• 11. Investment in subsidiaries

• 12. Investment properties

• 13. Property and equipment

• 14. Intangible assets

xvi)	Leases	56 - 57
xvii)	Intangible assets	58 - 59
xviii)	Employee benefits	60 - 61
xix)	Insurance contract liabilities	62
xx)	Provisions	63
xxi)	Guarantee reserve fund	63
xxii)	Revenue recognition	63 - 66
xxiii)	Deposit insurance contribution	66
xxiv)	Benefits and claims	66 - 67
xxv)	Lapses - life insurance	67
xxvi)	Foreign currency translation	67 - 68
xxvii)	Equity movements	68
xxviii)	Statutory reserve fund	68
xxix)	Catastrophe reserve	69
xxx)	Statutory surplus reserve	69
xxxi)	General loan loss reserve	69
xxxii)	Earnings per share	69
xxxiii)	Salvage and subrogation reimbursements	69
xxxiv)	Impairment of non-financial assets	70
71 - 73
74 - 76
77 - 78
79
80 - 86
87 - 91
92 - 101
102
102
103
104
105
106 - 111
112 - 115

• i) Judgements

• ii) Estimates and assumptions

• iii) Impact of COVID-19

SEPARATE AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

CONTENTS

Notes to the Separate and Consolidated Financial Statements (continued)

Page

15.	Leases	116 - 117
16.	Deferred taxation	118 - 121
17.	Employee benefits	122 - 129
18.	Accrued interest and other payables	130
19.	Customers' deposits and other funding instruments	130
20.	Debt securities in issue	131
21.	Investment contract liabilities	131
22.	Insurance contract liabilities	132 - 138
23.	Insurance contracts, investment contracts and reinsurance assets -
terms, assumptions and sensitivities	139 - 143
24.	Stated capital	143
25.	Net insurance revenue	144
26.	Finance charges, loan fees and other interest income	144
27.	Investment income	145
28.	Revenue from contracts with customers	145
29.	Other income	146
30.	Net insurance benefits and claims incurred	147
31.	Interest expense	148
32.	Credit loss expense/(recovery)	148
33.	Marketing and policy expenses	148
34.	Personnel expenses	149
35.	General administrative expenses	149
36.	Taxation	150
37.	Segmental information	151 - 155
38.	Related party transactions and balances	156 - 157
39.	Fair value of financial instruments	158 - 165
40.	Risk management	165 - 183
41	Business combinations	184 - 185
42.	Capital management	186
43.	Maturity analysis of assets and liabilities	187 - 190
44.	Capital commitments	191
45.	Contingent liabilities	191
46.	Dividends	191
47.	Events after the reporting period	191