6.0

Financial Statements and Notes

The individual financial statements of Banco Millennium Atlântico, S.A. presented relate to the period ended as at 31 December 2018.

In accordance with the provisions of Notice No. 6/2016 of 22 June, from Angola Central Bank, the financial statements of Banco Millennium Atlântico, S.A., (Bank or ATLANTICO) are prepared in accordance with the International Financial Reporting Standards (“IFRS”).

The Bank’s financial statements for the period ended on 31 December 2018 were approved by the Board of Directors on 10 April 2019.

Balance Sheet
As at 31 December 2018 and 2017
thousands of AOA
Notes20182017 (*)
Assets
Cash and deposits at central banks4159,372,252133,610,160
Loans and advances to credit institutions repayable on demand526,739,7294,510,199
Financial assets at fair value through profit and loss626,620,4443,716,472
Financial assets at fair value through other comprehensive income7198,119,726-
Financial assets available for sale7-98,155,111
Financial assets at amortised cost
Debt instruments8274,968,716-
Loans and advances to customers9420,264,577395,712,862
Loans and advances to credit institutions1013,312,56531,234,743
Held-to-maturity investments8-219,034,443
Other tangible assets1165,709,10462,746,419
Intangible assets1232,625,57330,204,743
Non-current assets held for sale1365,790,66143,544,500
Current tax assets1,014,7851,584,392
Deferred tax assets142,536,619157,246
Other assets1571,697,21845,450,053
Total assets1,358,771,9691,069,661,343
Liabilities and equity
Resources from central banks and other credit institutions16160,054,580117,181,364
Resources from clients and other loans171,042,924,548801,365,710
Financial liabilities at fair value through profit and loss650,510-
Provisions185,161,1012,454,201
Current tax liabilities14-2,178,122
Deferred tax liabilities14862,012746,113
Other liabilities1914,679,72717,196,793
Total liabilities1,223,732,478941,122,303
Share capital2053,821,60353,821,603
Share premium2034,810,06934,810,069
Own shares20(492,182)(492,182)
Other reserves and retained earnings2117,327,51714,829,558
Revaluation reserves212,347,3961,741,492
Net income27,225,08823,828,500
Total equity attributable to Bank's shareholders135,039,491128,539,040
Total liabilities and equity1,358,771,9691,069,661,343
The balances related to 31 December 2017 correspond to the statutory accounts at that date. These balances are presented exclusively for comparative purposes and have not been restated following the adoption of IFRS 9, with reference to 1 January 2018, as permitted by IFRS 9 (note 36).
Income Statement
For the periods ended at 31 December 2018 and 2017
thousands of AOA
Notes20182017
Interest and similar income22118,452,96593,261,325
Interest and similar expense22(51,223,346)(25,915,585)
Net interest income67,229,61967,345,740
Gains from fees and commissions income2321,250,11513,947,733
Losses from fees and commissions income23(610,385)(288,880)
Net gains / (losses) from fees and comissions income20,639,73013,658,853
Net gains / (losses) from other financial assets and liabilities at fair value through profit and loss24(1,134,897)410,851
Net gains from financial operations252,729,250527,659
Net gains / (losses) from foreign exchange2613,456,2583,597,421
Net gains / (losses) from financial operations15,050,6114,535,931
Total operating income102,919,96085,540,524
Staff costs27(22,481,591)(19,802,642)
General and administrative costs28(16,946,248)(15,380,777)
Amortizations and depreciations11 12(4,608,577)(4,358,686)
Profit / (loss) from the sale of other assets292,770,784-
Provisions net of reversals13 15 18(9,106,581)(1,436,630)
Impairment for loans and advances to customers net of reversals and recoveries8 9(24,537,890)(17,005,808)
Impairment for financial assets through other comprehensive income21(210,720)-
Other operating income30(1,492,901)(1,710,925)
Profit / (loss) before tax from continuing operations26,306,23625,845,056
Income tax918,852(2,016,556)
Current14131,263(1,916,955)
Deferred14787,589(99,601)
Profit / (loss) after tax from continuing operations
Net profit / (loss)27,225,08823,828,500
Weighted average number of ordinary shares issued53,821,60353,821,603
Basic earnings per share (in kwanzas)310.5100.450
Diluted earnings per share (in kwanzas)310.5100.440
Statement of Comprehensive Income
For the periods ended at 31 December 2018 and 2017
thousands of AOA
Notes20182017
Net profit / (loss) for the period27,225,08823,828,500
Items that may be reclassified into the income statement
Debt instruments at fair value through other comprehensive income
Profit / (losses) for the period212,352,3631,660,450
Transfer to profit / (loss) for impairment recognised in the period21(210,720)-
Deferred taxes21(116,139)(499,977)
2,025,5041,160,473
Total comprehensive income for the period29,250,59224,988,973
Statement of Changes in Equity
For the periods ended at 31 December 2018 and 2017
thousands of AOA
Share capitalShare premiumsOwn sharesReserves and retained earningsNet profit/(losses) for the periodTotal equity
Fair values reservesOther reseves and retained earningsTotal
Balance on 31 December 201653,821,60334,810,069(492,182)581,0199,738,85410,319,87317,038,342115,497,705
Fair value changes, net of taxes---1,160,473-1,160,473-1,160,473
Net profit / (losses) for the period------23,828,50023,828,500
Total comprehensive income for the period---1,160,473-1,160,47323,828,50024,988,973
Results application
Reserves and retained earnings----4,980,6674,980,667(4,980,667)-
Dividends--------
Dividends for shareholders------(11,947,638)(11,947,638)
Dividends for own shares----110,037110,037(110,037)-
Balance on 31 December 201753,821,60334,810,069(492,182)1,741,49214,829,55816,571,05023,828,500128,539,040
Transition adjustments to IFRS 9---(1,419,600)(2,442,065)(3,861,665)-(3,861,665)
Balance on 1 January 201853,821,60334,810,069(492,182)321,89212,387,49312,709,38523,828,500124,677,375
Fair value changes, net of taxes---2,025,504-2,025,504-2,025,504
Net profit / (losses) for the period------27,225,08827,225,088
Total comprehensive income for the period---2,025,504-2,025,50427,225,08829,250,592
Results application
Reserves and retained earnings----4,765,7004,765,700(4,765,700)-
Dividends--------
Dividends for shareholders------(18,888,476)(18,888,476)
Dividends for own shares----174,324174,324(174,324)-
Balance on 31 December 201853,821,60334,810,069(492,182)2,347,39617,327,51719,674,91327,225,088135,039,491
Cash Flow Statement
For the periods ended at 31 December 2018 and 2017
thousands of AOA
Notes20182017
Cash flows arising from operating activities
Interest income received172,516,228105,514,486
Interes expense paid(56,185,755)(23,535,505)
Payments to employees and suppliers(38,407,323)(38,572,393)
Cash flows befores changes in operationg assets and liabilities77,923,15043,406,588
Changes in operating assets and liabilities:
Financial assets at fair value through profit and loss(8,973,995)6,322,185
Financial assets at fair value through other comprehensive income(96,163,581)-
Financial assets available for sale-17,103,349
Financial assets at amortised cost
Debt securities(55,272,137)-
Loans and advances to customers(89,358,490)(68,998,814)
Loans and advances to credit institutions repayable on demand17,932,364(14,530,557)
Held-to-maturity investments-(8,965,884)
Deposits from credit institutions41,053,78356,534,366
Non-current assets held for sale(21,354,788)(41,693,208)
Deposits from customers246,712,64257,395,933
Other operating assets and liabilities(37,432,434)40,273,625
Net cash flows arising from operating activities, before income taxes75,066,51486,847,583
Taxes on income paid(1,393,336)(621,347)
Net cash flows arising from operating activities73,673,17886,226,236
Cash flows arising from investing activities
Dividends received73,812-
Acquisition of financial investments(6,866,892)(9,470,221)
Net cash flows arising from investing activities(6,793,080)(9,470,221)
Cash flows arising from investing activities
Reimbursement of bonds and subordinated debt-(4,149,083)
Dividends from ordinary shares paid(18,888,476)(15,390,888)
Net cash flows arising from financing investments(18,888,476)(19,539,971)
Net changes in cash and cash equivalents47,991,62257,216,044
Cash and cash equivalents at the beginning of the period138,120,35980,904,315
Net changes in cash and cash equivalents47,991,62257,216,044
Cash and cash equivalents at the end of the period186,111,981138,120,359
Cash and cash equivalents includes:
Cash411,206,63911,654,182
Loans and advances to central banks4148,165,613121,955,978
Loans and advances to credit institutions526,739,7294,510,199
Total186,111,981138,120,359

Notes to the financial statements

Notes to the Financial Statements
1. IntroductionX
Notes to the Financial Statements
2. Accounting policiesX
Notes to the Financial Statements
3. Critical accounting estimates and judgments used in the preparation of the financial statementsX
Notes to the Financial Statements
4. Cash and deposits at central banksX
Notes to the Financial Statements
5. Loans and advances to credit institutions repayable on demandX
Notes to the Financial Statements
6. Financial assets at fair value through profit and lossX
Notes to the Financial Statements
7. Financial assets at fair value through other comprehensive incomeX
Notes to the Financial Statements
8. Financial assets at amortised cost – Debt instrumentsX
Notes to the Financial Statements
9. Loans and advances to customersX
Notes to the Financial Statements
10. Loans and advances to credit institutionsX
Notes to the Financial Statements
11. Other tangible assetsX
Notes to the Financial Statements
12. Intangible assetsX
Notes to the Financial Statements
13. Non-current assets held for saleX
Notes to the Financial Statements
14. TaxesX
Notes to the Financial Statements
15. Other assetsX
Notes to the Financial Statements
16. Resources from central banks and other credit institutionsX
Notes to the Financial Statements
17. Resources from clients and other loansX
Notes to the Financial Statements
18. ProvisionsX
Notes to the Financial Statements
19. Other liabilitiesX
Notes to the Financial Statements
20. Share capital, share premiums and own sharesX
Notes to the Financial Statements
21. Other reserves and retained earningsX
Notes to the Financial Statements
22. Net interest incomeX
Notes to the Financial Statements
23. Net gains / (losses) from fees and commissions incomeX
Notes to the Financial Statements
24. Net gains/ (losses) from financial assets and liabilities at fair value through profit and lossX
Notes to the Financial Statements
25. Net gains from financial operationsX
Notes to the Financial Statements
26. Net gains/ (losses) from foreign exchangeX
Notes to the Financial Statements
27. Staff costsX
Notes to the Financial Statements
28. General and administrative costsX
Notes to the Financial Statements
29. Net gains/ (losses) from sales of other assetsX
Notes to the Financial Statements
30. Other operating income (expense)X
Notes to the Financial Statements
31. Earnings per shareX
Notes to the Financial Statements
32. Guarantees and other commitmentsX
Notes to the Financial Statements
33. Transactions with related partiesX
Notes to the Financial Statements
34. Fair value of financial assets and liabilitiesX
Notes to the Financial Statements
35. Risk managementX
Notes to the Financial Statements
36. Transition to IFRS 9 – Financial instrumentsX
Notes to the Financial Statements
37. Recently issued accounting standards and interpretationsX