REG - Secure Trust BankArbuthnot Banking - Final Results <Origin Href="QuoteRef">ARBB.L</Origin> <Origin Href="QuoteRef">STBS.L</Origin> - Part 4
19/03/2015 07:01
- Part 4: For the preceding part double click ID:nRSS8407Hc
266.0 648.0
The table below shows the contractual maturity analysis of the Company's assets and liabilities as at 31 December 2013:
Due within one year Due after more than one year Total
At 31 December 2013 £million £million £million
ASSETS
Loans and advances to banks 108.5 - 108.5
Loans and advances to customers 115.9 168.0 283.9
Property, plant and equipment - 0.5 0.5
Intangible assets - 0.9 0.9
Investments - 3.7 3.7
Deferred tax asset - 0.8 0.8
Other assets 101.0 - 101.0
Total assets 325.4 173.9 499.3
LIABILITIES
Due to banks 0.1 - 0.1
Deposits from customers 269.4 167.2 436.6
Current tax liabilities 0.2 - 0.2
Other liabilities 15.5 - 15.5
Total liabilities 285.2 167.2 452.4
The directors do not consider that the behavioural maturity is significantly different to the contractual maturity.
4. Classification of financial assets and liabilities
The tables below set out the Group's financial assets and financial liabilities into the respective classifications:
Held to maturity Loans and receivables Other financial liabilities Total carrying amount Fair value Fair value hierarchy level
At 31 December 2014 £million £million £million £million £million
Cash and balances at central banks - 81.2 - 81.2 81.2 Level 1
Loans and advances to banks - 39.8 - 39.8 39.8 Level 2
Loans and advances to customers - 622.5 - 622.5 630.1 Level 3
Debt securities held-to-maturity 16.3 - - 16.3 16.3 Level 2
16.3 743.5 - 759.8 767.4
Due to banks - - 15.9 15.9 15.9 Level 2
Deposits from customers - - 608.4 608.4 617.7 Level 2
Other financial liabilities - - 17.8 17.8 17.8 Level 3
- - 642.1 642.1 651.4
Held to maturity Loans and receivables Other financial liabilities Total carrying amount Fair value Fair value hierarchy level
At 31 December 2013 £million £million £million £million £million
Loans and advances to banks - 110.0 - 110.0 110.0 Level 2
Loans and advances to customers - 391.0 - 391.0 391.0 Level 3
- 501.0 - 501.0 501.0
Due to banks - - 0.1 0.1 0.1 Level 2
Deposits from customers - - 436.6 436.6 436.6 Level 2
Other financial liabilities - - 17.0 17.0 17.0 Level 3
- - 453.7 453.7 453.7
The tables below set out the Company's financial assets and financial liabilities into the respective classifications:
Held to maturity Loans and receivables Other financial liabilities Total carrying amount Fair value Fair value hierarchy level
At 31 December 2014 £million £million £million £million £million
Cash and balances at central banks - 81.2 - 81.2 81.2 Level 1
Loans and advances to banks - 37.9 - 37.9 37.9 Level 2
Loans and advances to customers - 500.1 - 500.1 507.6 Level 3
Debt securities held-to-maturity 16.3 - - 16.3 16.3 Level 2
16.3 619.2 - 635.5 643.0
Due to banks - - 15.9 15.9 15.9 Level 2
Deposits from customers - - 608.4 608.4 617.7 Level 2
Other financial liabilities - - 15.5 15.5 15.5 Level 3
- - 639.8 639.8 649.1
Held to maturity Loans and receivables Other financial liabilities Total carrying amount Fair value Fair value hierarchy level
At 31 December 2013 £million £million £million £million £million
Loans and advances to banks - 108.5 - 108.5 108.5 Level 2
Loans and advances to customers - 283.9 - 283.9 283.9 Level 3
- 392.4 - 392.4 392.4
Due to banks - - 0.1 0.1 0.1 Level 2
Deposits from customers - - 436.6 436.6 436.6 Level 2
Other financial liabilities - - 10.5 10.5 10.5 Level 3
- - 447.2 447.2 447.2
Fair value classification
The tables above include the fair values and fair value hierarchies of the Group and Company's financial assets and
liabilities. Details of the measurement of the fair values is disclosed below:
Cash and balances at central banks
The fair value of was calculated based upon the present value of the expected future principal and interest cash flows. The
rate used to discount the cash flows was the market rate of interest at the balance sheet date.
At the end of December 2014 the fair value of cash and balances at central banks was calculated to be equivalent to their
carrying value.
Loans and advances to banks
The fair value of loans and advances to banks was calculated based upon the present value of the expected future principal
and interest cash flows. The rate used to discount the cash flows was the market rate of interest at the balance sheet
date.
At the end of December 2014 the fair value of loans and advances to banks was calculated to be equivalent to their carrying
value.
Loans and advances to customers
The fair value of loans and advances to customers was calculated based upon the present value of the expected future
principal and interest cash flows. Prudent assumptions were applied regarding the risk of default. The rate used to
discount the cash flows was the credit adjusted market rate of interest at the balance sheet date.
Debt securities held-to-maturity
The fair value of debt securities held-to-maturity was calculated based upon the present value of the expected future
principal and interest cash flows. The rate used to discount the cash flows was the market rate of interest at the balance
sheet date.
At the end of December 2014 the fair value of debt securities held-to-maturity was calculated to be equivalent to their
carrying value.
Due to banks
The fair value of amounts due to banks was calculated based upon the present value of the expected future principal and
interest cash flows. The rate used to discount the cash flows was the market rate of interest at the balance sheet date.
At the end of December 2014 the fair value of amounts due to banks was calculated to be equivalent to their carrying value
due to the short maturity term of the amounts due.
Deposits from customers
The fair value of deposits from customers was calculated based upon the present value of the expected future principal and
interest cash flows. The rate used to discount the cash flows was the market rate of interest at the balance sheet date for
the notice deposits and deposit bonds, given that the Group offers competitive interest rates on its savings products.
Other financial liabilities
The fair value of other financial liabilities was calculated based upon the present value of the expected future principal
cash flows.
At the end of December 2014 the fair value of other financial liabilities was calculated to be equivalent to their carrying
value due to the short maturity term of the other liabilities. The other financial liabilities include all other
liabilities other than non-interest accruals.
5. Financial risk management
Strategy
By their nature, the Group's activities are principally related to the use of financial instruments. The directors and
senior management of the Group have formally adopted a Group Risk Appetite Statement which sets out the Board's attitude to
risk and internal controls. Key risks identified by the directors are formally reviewed and assessed at least once a year
by the Board, in addition to which key business risks are identified, evaluated and managed by operating management on an
ongoing basis by means of procedures such as physical controls, credit and other authorisation limits and segregation of
duties. The Board also receives regular reports on any risk matters that need to be brought to its attention. Significant
risks identified in connection with the development of new activities are subject to consideration by the Board. There are
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