Maritime & Merchant Bank ASA
Financial Report
30.06.2021
Financial Report 30.06.2021
Table of Contents
FINANCIAL REPORT 30.06.2021____________________________________________________________ 2
STATEMENT OF PROFIT & LOSS___________________________________________________________ 11
BALANCE SHEET _______________________________________________________________________ 12
STATEMENT OF EQUITY _________________________________________________________________ 13
STATEMENT OF CASH FLOWS ____________________________________________________________ 14
NOTES 30.06.2021._____________________________________________________________________ 15
NOTE 1, REPORTING ENTITY _______________________________________________________________ 15
NOTE 2, GENERAL ACCOUNTING PRINCIPLES ____________________________________________________ 15
NOTE 3, FUNCTIONAL AND PRESENTATION CURRENCY ______________________________________________ 15
RISK_______________________________________________________________________________ 15
NOTE 4, RISK _________________________________________________________________________ 15
Risk Management and Capital Adequacy________________________________________________ 15
Capital Adequacy __________________________________________________________________ 16
Credit Risk ________________________________________________________________________ 16
Loss allowance ____________________________________________________________________ 18
Interest Rate Risk __________________________________________________________________ 23
Currency Risk _____________________________________________________________________ 24
Liquidity Risk ______________________________________________________________________ 24
Operational Risk ___________________________________________________________________ 24
INCOME AND COST __________________________________________________________________ 25
NOTE 5, TAXATION OF PROFIT ______________________________________________________________ 25
ASSETS ____________________________________________________________________________ 25
NOTE 6, FINANCIAL INSTRUMENTS AT FAIR VALUE. ________________________________________________ 25
NOTE 7, FINANCIAL PLEDGES ______________________________________________________________ 26
NOTE 8, OTHER INTANGIBLE ASSETS AND FIXED ASSETS _____________________________________________ 26
LIABILITIES _________________________________________________________________________ 27
NOTE 9, OTHER ASSETS AND FINANCIAL DERIVATIVES.______________________________________________ 27
NOTE 10, OTHER LIABILITIES AND ACCRUED COST_________________________________________________ 27
NOTE 11, SHARE CAPITAL AND SHAREHOLDER INFORMATION _________________________________________ 28
APPENDIX 1, ALTERNATIVE PERFORMANCE MEASURES _______________________________________ 28
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Financial Report 30.06.2021
Financial Report 30.06.2021
The profit for the period 01.01.21 - 30.6.2021 (H1 2021) before tax was USD 3 886 299 (USD 2 279 981 in H1 2020) and profit after tax is USD 2 914 724 in H1 2021 (USD 1 709 986 in H1 2020). The amount of disbursed loans increased with 20.5% during the period 01.01.21 - 30.6.2021 from USD 268 mill to USD 324 mill. The bank has in addition a considerable amount of loans in process which will be disbursed during the first part of 3rd quarter. There has been no credit losses and the bank have no non-performing loans.
The headlines from the shipping scene during Q2 has continued to be marked by the historical development in the container market. The freight rates have risen to record levels in all size segments and there are no clear signs the situation will ease down within the short-term horizon which is a result of a series of specific events. The pandemic has caused a comprehensive unbalance in the global manufacturing and distribution which is deeply reflected in seaborne trade. The various setbacks in the fight against Covid- 19 has led to new temporary lock-down of production plants, ports, terminals and distribution channels, especially in Asia which again has resulted in sharp increase in handling time of each container due to the congestion. The final result of this is an extraordinarily high utilization rate in the segment and corresponding increase in freight rates and asset values.
The dry-bulk sector has as well, continued its very positive development during Q2 driven by a general increase in demand for raw materials and a modest increase in the tonnage supply. The prospects for the remaining part of the year is generally being commented as most positive - in particular for the smaller and medium sized segments.
The tanker segment is still hampered by low utilization and freight rates below operational costs for the larger ship types, and we have to go back many decades to find a market with the same poor characteristics. Hopefully the second half of 2021 will show improvements, while the prevailing forecasts and analysis points in different directions.
For a project-oriented bank like ourselves, the general current sentiment is favourable as the interest for investing in shipping projects is high and leads to an increase in opportunistic sale and purchase activity. With the general background picture of the shipping industry at present we are looking into the next two quarters with a great deal of excitement and ambitions for our lending activities.
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Financial Report 30.06.2021
Profit for the period (01.01-30.06)
The profit for the period before tax is USD 3 886 299 (USD 2 279 981 in 30.06.2020) and profit after tax is USD 2 914 724 (USD 1 709 986 30.06.2020).
Net interest income and related income totalled USD 7 064 141 (USD 8 275 518), and other Income (including financial derivatives and fixed income instruments) was USD 685 055 (USD - 566 723).
Operating expenses before impairments and losses totalled USD 4 072 722 (USD 3 607 351). The Cost/Income ratio came in at 52,6% (46,8%).
Loss allowance (Expected Loss) fell USD 209 824 (increased USD 1 821 463). Credit Loss (Write Offs) was USD 0 (USD 0).
2021 | 2020 | 2021 | 2020 | 2020 | |||||
01.04 - 30.06 | 01.04 - 30.06 | 01.01- 30.06 | 01.01 - 30.06 | 01.01 - 31.12 | |||||
Interest Income | 4 820 682 | 5 409 279 | 9 072 188 | 12 652 906 | 21 256 031 | ||||
Interest Expense | -1 072 094 | -2 010 200 | -2 008 047 | -4 377 389 | -7 655 858 | ||||
Net Interest Income | 3 748 589 | 3 399 078 | 7 064 141 | 8 275 518 | 13 600 173 | ||||
Other Income | 163 183 | 651 879 | 685 055 | -566 723 | 865 992 | ||||
Total Income | 3 911 772 | 4 050 957 | 7 749 196 | 7 708 795 | 14 466 165 | ||||
Operating Expense | -2 087 155 | -1 796 141 | -4 072 722 | -3 607 351 | -7 531 828 | ||||
Operating Result | 1 824 617 | 2 254 816 | 3 676 475 | 4 101 444 | 6 934 337 | ||||
Loss Allowance | 18 557 | -1 203 113 | 209 824 | -1 821 463 | -616 193 | ||||
Write Off (Credit Loss) | -386 435 | ||||||||
Sum Impairment | 18 557 | -1 203 113 | 209 824 | -1 821 463 | -1 002 628 | ||||
Profit Before Tax | 1 843 173 | 1 051 703 | 3 886 298 | 2 279 981 | 5 931 709 | ||||
Tax | -460 793 | -262 926 | -971 575 | -569 996 | -698 996 | ||||
Profit After Tax | 1 382 380 | 788 777 | 2 914 723 | 1 709 986 | 5 232 713 |
Net interest income and related income
Net interest income and related income totalled USD 3 748 589 in Q2 (USD 3 399 078 in Q2 2020). This correspond to an increase from USD 2 912 527 in Q4 2020.
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Financial Report 30.06.2021
Net interest margin increased from to 2.5% in Q1-2021 to 2.8% in Q2-2021 (2.4% in Q2-2020). Increased lending improved Net Interest Margin.
Money market rates (daily average) in USD and NOK seems to have stabilized at a low level.
(Source: Infront, Maritime & Merchant Bank ASA)
Net other Income
Net other income amounted to USD 163 183 in Q2 2021 (USD 651 879 in Q2-2020 ).
Value adjustments on derivatives and hedging instrument in Q2 was USD 26 171 due to an depreciation of the USD against NOK (USD 565 814 in Q2-2020, caused by an USD depreciation against NOK).
The principle of assessing financial instruments measured at fair value may lead to significant variation of the Bank's result between quarters.
Net commissions amounted to USD 117 591 in Q2 (USD 134 581 in Q2-2020).
Total operating expenses before impairments and losses
Operating expenses before impairments and losses totalled USD 2 087 155 in Q2 (USD 1 796 141 in Q2-2020). Salaries and personnel expenses, including social costs, amounted to USD 1 280 112 (USD 1 170 405 in Q2- 2020) and account for the largest proportion of the overall operating expenses.
Total depreciation and impairment of fixed and intangible assets amounted to USD 299 379 (USD 265 408 in Q2-2020). The Cost/Income ratio came in at 53.4% in Q2 (44.3% in Q2-2020).
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Maritime & Merchant Bank ASA published this content on 12 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 August 2021 19:21:01 UTC.