CB Circular 4/2000: Publication of Quarterly Financial Statements

# Bank of Zambia

P.O. Box 30080, LUSAKA  
10101  

Tel. 228888/ 228903-20  

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**15 May 2000**

**CB Circular No. 4/00**

**To :** All Commercial Banks  

Dear Sirs  

## PUBLICATION OF QUARTERLY FINANCIAL STATEMENTS

Further to CB Circular No. 6/97 of 22 September 1997, kindly be advised that the presentation format of the quarterly financial statements as prescribed by section 61(4) of the Banking and Financial Services Act of 1994 has been amended as per the attached formats.

With effect from calendar quarter ending 31 June 2000, financial statements must be published on a working day at the latest, 30 days after the calendar quarter end, i.e. 31 January, 30 April, 31 July and 31 October.

All banks are required to get approval from the Bank of Zambia prior to publication of the financial statements. Please note that the financial statements that are to be published must be consistent with the prudential returns submitted to Bank of Zambia as per CB Circular No. 1/98 and should be submitted for approval at the same time as the returns. The Bank of Zambia will consolidate commercial banks quarterly reports and these will be placed on the Bank of Zambia Financial System Supervision website.

A penalty of K200,000 (two hundred thousand kwacha) per day shall be incurred for failure to comply with this notice. This includes failure to obtain Bank of Zambia approval prior to publication, the publication of financial statements using incorrect formats and the publication of incorrect information. Please note that the Bank of

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Zambia may take further action under the provisions of sections 36 and 37 of the Banking and Financial Services Act, 1994 in case of any failure to comply with this notice

*Signature*  
Dr A Mwenda  
DEPUTY GOVERNOR – OPERATIONS

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## QUARTERLY FINANCIAL STATEMENTS

Published in accordance with the section 61(4) of the Banking and Financial Services Act, 1994

> Take note that the financial statements on a month-on-month basis are available on request at every branch of our bank

### STATEMENT OF CAPITAL POSITION

| | Quarter ended |
|---|---|
| | * 31 March 20... |
| | * 30 June 20... |
| | * 30 September 20... |
| | * 31 December 20... |
| | K'MILLION |

**I PRIMARY (TIER 1) CAPITAL**

(a) Paid-up common shares  
(b) Eligible preferred shares  
(c) Contributed surplus  
(d) Retained earnings  
(e) General reserves  
(f) Statutory reserves  
(g) Minority interests (common shareholders' equity)  

(h) Sub-total  

LESS:  
(i) Goodwill and other intangible assets  
(j) Investments in unconsolidated subsidiaries and associates  
(k) Lending of a capital nature to subsidiaries and associates  
(l) Holding of other banks' or financial institutions' capital instruments  
(m) Assets pledged to secure liabilities  

Sub-total (A) (items i to m)  

**OTHER ADJUSTMENTS:**  
Provisions  
Assets of little or no realizable value  
Other adjustments (specify)  

(n) Sub-total (B) = (Sub-total A above + Other adjustments)  
(o) Total primary capital (h - n)  

**II SECONDARY (TIER 2) CAPITAL**

(a) Eligible preferred shares (Regulations 13 and 17)  
(b) Eligible subordinated term debt (Regulation 17 (b))  
(c) Eligible loan stock / capital (Regulation 17(b))  
(d) Revaluation reserves (Regulation 17 (a)). Maximum is 40% of revaluation res.  
(e) Other (Regulation 17 (c)). Specify  

(f) Total secondary capital  

**III ELIGIBLE SECONDARY CAPITAL**  
(the maximum amount of secondary capital is limited to 100% of primary capital)  

**IV ELIGIBLE TOTAL CAPITAL** (I(o) + III) (Regulatory capital)  

**V MINIMUM TOTAL CAPITAL REQUIREMENT:**  
(10% of total on and off balance sheet risk-weighted assets as established in the First schedule)  

**VI EXCESS (DEFICIENCY) (IV minus V)**  

**RISK-WEIGHTED ASSETS**

* Delete whichever is not applicable

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## QUARTERLY FINANCIAL STATEMENTS

Published in accordance with the section 61(4) of the Banking and Financial Services Act, 1994

> Take note that the financial statements on a month-on-month basis are available on request at every branch of our bank

### STATEMENT OF LIABILITIES

| | Quarter ended |
|---|---|
| | * 31 March 20... |
| | * 30 June 20... |
| | * 30 September 20... |
| | * 31 December 20... |
| | K'MILLION |

**I LIABILITIES TO THE PUBLIC**

1. Demand deposits  
2. Savings deposits  
3. Time deposits  
4. Bills payable  

Total Liabilities to the public  

**II LIABILITIES TO THE PUBLIC AT END OF PREVIOUS MONTH**

**III LIQUID ASSETS**

1. Gold coins and bullion  
2. Notes & coins which are legal tender in Zambia  
3. Balances at Bank of Zambia  
   (a) Current account  
   (b) Statutory deposits account  
   (c) Other balances  
4. Treasury bills issued by the Government of the Republic of Zambia  
5. Money at call with any other bank  
6. Bills of exchange and promissory notes eligible for discount at Bank of Zambia  
7. Local registered securities which are issued or guaranteed by Government of the Republic of Zambia and which have a final maturity date of not more than six years (at book value) and such other securities as the Minister may have approved  
8. Items in transit between banks, between branches of bank and between branches and head office of bank  
9. Other assets approved by Minister under paragraph (1) of sub-section (3) of section 21 of the Banking Act, 1971  

Total liquid assets  

**IV RATIOS**

1. Liquid assets (items 2, 3(a) and 4) as a per centage of total liabilities to the public  
2. Total liquid assets as a per centage total liabilities to the public  
3. Total liquid assets as a per centage of total liabilities to the public at the end of the previous month  

* Delete whichever is not applicable

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## QUARTERLY FINANCIAL STATEMENTS

Published in accordance with the section 61(4) of the Banking and Financial Services Act, 1994

> Take note that the financial statements on a month-on-month basis are available on request at every branch of our bank

### INCOME STATEMENT

| | * 1st Quarter ending 31 March 20... | * 2nd Quarter ending 30 June 20... | * 3rd Quarter ending 30 September 20... | * 4th Quarter ending 31 December 20... | Year to date |
|---|---|---|---|---|---|
| | K'MILLION | K'MILLION | K'MILLION | K'MILLION | K'MILLION |

**Interest income from:**  
- Loans and overdrafts  
- Banks and financial institutions  
- Securities  
- Other  

Total interest income  

**Interest expense**  
- Deposits  
- Paid to banks and financial institutions  
- Subordinated debt  
- Other  

Total interest expense  

Net interest income  

Provision for loan losses  

Net interest income after provision for loan losses  

**Non-interest income**  
- Commissions, fees and service charges  
- Foreign Exchange  
  - Fees from foreign exchange transactions  
  - Realised trading gains (losses)  
  - Unrealised trading gains (losses) from foreign exchange holdings  
- Dividend income  
- Other  

Total non-interest income  

Net interest and other income  

**Non-interest expenses**  
- Depreciation  
- Other  

Total non-interest expenses  

Income (losses) before taxes and extraordinary items  

Taxation  

Income (losses) after taxes but before extraordinary items  

Extraordinary items  

Net income (loss)  

* Delete whichever is not applicable

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## QUARTERLY FINANCIAL STATEMENTS

Published in accordance with the section 61(4) of the Banking and Financial Services Act, 1994

> Take note that the financial statements on a month-on-month basis are available on request at every branch of our bank

### BALANCE SHEET at

| | Quarter ended |
|---|---|
| | * 31 March 20... |
| | * 30 June 20... |
| | * 30 September 20... |
| | * 31 December 20... |
| | K'MILLION |

**ASSETS**

- Notes and coins  
- Balances with Bank of Zambia  
- Balances with banks and other financial institutions in Zambia  
- Balances with banks and other financial institutions abroad  
- Investments in securities  
- Loans and advances (net of capitalised interest on non-performing loans and allowances for loan losses)  
- Bills of exchange  
- Interbranch  
- Fixed Assets  
- Other assets  

Total Assets  

**LIABILITIES**

- Deposits  
- Balances due to Bank of Zambia  
- Balances to banks and other financial institutions in Zambia  
- Balances due to banks and other financial institutions abroad  
- Bills of exchange  
- Interbranch  
- Other liabilities  
- Other borrowed funds  
- Shareholders' equity  

Total liabilities and shareholders' equity  

**Off balance sheet items**

- Contingent liabilities  
- Commitments  
- Allowances for losses on acceptances and off balance sheet items included in other liabilities  

* Delete whichever is not applicable.