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.