Land Bank 2004 Annual Report Presentation: Portfolio Committee on Agriculture & Land Affairs Committee Room S 26, 1 st floor, NCOP Wing 10 September 2004. Overview of presentation. Group overview Nomhle Canca Chairperson: Land Bank Finance, Credit, & Economic Committee.
Land Bank 2004 Annual ReportPresentation: Portfolio Committee on Agriculture & Land AffairsCommittee Room S 26, 1st floor, NCOP Wing10 September 2004
Chairperson: Land Bank Finance, Credit, & Economic Committee
Acting Chief Executive Officer
Mr Jacob Modise
Chairperson: Land Bank Audit Committee
With the adoption of AC133, fair valuing financial instruments resulted in a gain of R58m.
Net interest income
Interest margin %
Loan book quality
Net interest income investment income of R242-m
Net Interest Income down by 25% or R177m to R529m compared to prior year annualised. (2002/3 annualised : R706m)Impacted upon by 550bps reduction and AC133 adoption
Non-interest income investment income of R242-m
Non interest income up 445% or R147m to R180m (2002/3: R33m annualised) mainly due to increase in account administration fees(R81m) and AC133 financial instruments fair value gains (R58m)
Operating income investment income of R242-mOperating Income decreased by 4% or R30m to R709m compared to prior year(2002/3 annualised : R739m)
Operating profit before provisions investment income of R242-mOperating profit before impairments down by R56m or 9.7% from prior year’s annualised R460m
Efficiency ratio investment income of R242-m
Squeeze on margins resulted in an efficiency ratio of 43% (target : 35%) against prior year’s of 37.8%.Pre-AC133 efficiency ratio of 34.7% is below target and better than prior year.
Highlights and key ratios
Summarised balance sheet
The Group’s funding
Cash position and liquidity mismatch
Provision as a percentage of loan book investment income of R242-mProvision as a % of loan book has decreased to 7.4% from 9.4%.Provision at 31 March 2004 are R1.196bn (2003 : R1.530bn)
Impairment charge to income investment income of R242-mImpairment charge to income improved to R260m against R1,7bn in FY:2002/3
Bank borrowings investment income of R242-mBank borrowings shifted towards short term which increased by 16.4% in line with actual growth in short term loan book
Going forward investment income of R242-m
This was a year of new opportunities and challenges. The Bank has been able to contribute towards development, in line with its mandate.
The Bank has continued to finance its existing clientele, while also extending support to new clients.
I would like to extend my sincere gratitude and continued support to the Board and management
The Honourable Minister for Agriculture & Land Affairs: Thoko Didiza
Land Bank annual report 2004
Thank you investment income of R242-m
Back-up slides investment income of R242-m
Credit rating investment income of R242-m