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SIF BANAT CRISANA S.A. - SIF1

Preliminary financial results for 2018

Release Date: 2/28/2019 6:05:02 PM

IRIS Code: 1BDF7

Preliminary financial results for 2018

SIF Banat-Crisana submits the preliminary unaudited financial results as at December 31, 2018, prepared in compliance to the Norm 39/2015 for the approval of the Accounting Regulations compliant with IFRS applicable to entities authorized, regulated and supervised by the Financial Supervisory Authority (ASF) Financial Instruments and Investments Sector.

Total assets held by SIF Banat-Crisana as at December 31, 2018, amounting to RON 2,455.5 million, decreased by 1.3% as compared to 2017, as a result of the fair value decrease of some financial securities in the portfolio (mainly stakes in companies in the financial and energy sector) as a result of the unfavourable development of the local capital market, amid the legislative changes at the end of 2018.

Within the total assets, the main weight is held by the financial assets, of 99% in 2018, comprising mainly the financial assets measured at fair value through profit or loss (holdings in subsidiaries and associates, bonds in subsidiaries and fund units) and the financial assets measured at fair value through other comprehensive income (shares and corporate bonds). Financial assets through other items of comprehensive income are measured at fair value through equity accounts based on market prices existing on an active market or on the basis of valuations performed by authorized valuers. Please note that for some subsidiaries of the company, which are valued through valuation reports and recognized in Financial assets at fair value through profit or loss, the fair values ​​have not been finalized at the date of presentation of these preliminary statements. Consequently, the value of this balance sheet item and, implicitly, the “Gain on investment” and “Net profit for the year” positions may change from the current figures.

Structurally wise, Financial assets at fair value through profit and loss increased as compared to 2017 as a result of:

- Reclassification of subsidiaries removed from the scope of consolidation as a result of the application of the provisions of IFRS 10 on investment entities from the financial year 2018, from Financial Assets available for sale category (until Dec. 31, 2017 – as per IAS 39) to Financial assets at fair value through profit and loss (starting January 1, 2018 – as per IFRS 9);

- Mandatory reclassification of investments in fund units from the Financial assets available for sale category (until Dec. 31, 2017 – as per IAS 39) to Financial assets at fair value through profit and loss (from January 1, 2018 – as per IFRS 9)

- Investment activity in 2018, by disinvestment from some placements highlighted in the Financial assets at fair value through other comprehensive income category and making investments in financial instruments recognized as Financial assets at fair value through profit or loss.

Total liabilities are below those at the end of 2017, mainly as a result of the diminished deferred income tax for the reserves from valuating at fair value the securities and the deferred tax transfer in the current tax, together with the transfer of the fair value reserve for the disinvestment of financial assets at fair value through other comprehensive income within the retained earnings.

As at December 31, 2018, equity amounted to RON 2,324 million, up 1.4% vs. the value recorded at the end of the previous year, with the following clarifications:

- The increase of Accumulated profit versus 2017 is the combined effect of the transfer of fair value gain on subsidiaries and investments in fund units reclassified starting 2018 (from reserves to retained earnings), respectively of net profit for the year 2018, including gain on transactions recognized directly within the retained earnings;

- The increase in Other reserves is the result of the allocation of the net profit for the year 2017 to reserves, as own sources of financing the activity;

- The position Differences from the change in fair value of financial assets measured through other items of comprehensive income decreased as compared to the end of 2017 mainly as a result of the transfer of the accrued fair value on investments in subsidiaries and fund units and the recording of unfavourable differences in fair value as at December 31, 2018.

Dividend income, interest income and other income as at December 31, 2018 (preliminary) amounted to RON 114.9 million, up 35.3% as compared to 2017. The upsurge is mainly due to the increase in the volume of dividends collected from stakes in banks held by the Company.

Gain on investment in the financial year 2018 was negatively impacted by the adverse developments of placements recognized at fair value through profit or loss, as per IFRS 9.

Other operating expenses include functioning expenses, are slightly below those of the previous year’s.

The preliminary net profit for the financial year 2018 is of RON 77.2 million, up 11% as compared to the prior year's result, mainly as a result of the upsurge of dividend income.

Other comprehensive income includes changes in fair value of financial assets at fair value through other comprehensive income (net amount transferred to profit and loss and net change in fair value), below the previous year, mainly as a result of the accelerated depreciation of the fair value of the portfolio of financial assets at fair value through other comprehensive income listed at stock exchange (stakes in in banks and energy companies) during December 2018.

 

The preliminary financial results for the year ended December 31, 2018 are available for the public and investors on company's website, www.sif1.ro.

Further information can be obtained from SIF Banat-Crisana’s Investor Relations Dept., telephone / fax: +40257 304 446 / +40257 250 165, e-mail: investitori@sif1.ro.

 

 

Please access the link below to view the preliminary financial results for the year ended December 31, 2018. 

 



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