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SIF BANAT CRISANA S.A. - SIF1

Preliminary financial results 2019

Release Date: 2/28/2020 6:05:02 PM

IRIS Code: 616AD

STATEMENT OF MAIN ITEMS OF THE FINANCIAL POSITION AND THE PRELIMINARY RESULTS AS AT DECEMBER 31, 2019

SIF Banat-Crisana publishes the preliminary unaudited financial results as at December 31, 2019, prepared in compliance to the Norm 39/2015 for the approval of the Accounting Regulations compliant with IFRS adopted by EU 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, 2019, amounting to RON 2,926.7 million, are up 19.3% as compared to 2018, as an effect of the fair value increase related to the financial assets with the highest weight in the managed portfolio (stakes in financial and energy companies), on the back of the upward evolution of the stock markets.

Within the total assets, the main weight is held by the financial assets, of 99%, comparable to 2018. These mainly consist of financial assets measured at fair value through profit or loss (holdings in subsidiaries and associates, bonds issued by subsidiaries and fund units) and the financial assets measured at fair value through other comprehensive income (shares and corporate bonds). Measurement at fair value is carried out in accordance with the provisions of IFRS 13, using either the available market quotation for listed assets (which meet active market conditions) or valuation reports prepared by authorized valuators, as per International Valuation Standards (for unlisted or listed holdings but without an active market).

Cash and cash equivalents comprise mostly short-term placements in bank deposits, having an initial duration of up to 3 months. The increase versus 2018 is primarily a consequence of steering the net cash from financial assets trades towards short term fixed income instruments.

Total liabilities are above those at the end of 2018, up 35.7%, mainly as an effect of the recognition of a deferred income tax, related to the positive taxable changes recognized in other comprehensive income, as a result of the measurement at fair value of the financial assets during 2019.

As at December 31, 2019, equity amounted to RON 2,748.2 million, up 18.4% vs. the value recorded at the end of the previous year, on the back of:

- The upsurge of the Net profit compared to 2018, due both to the contribution of the income elements (dividends, interest) and especially to the component of investment gains (positive changes in fair value related to the financial assets measured at fair value through profit or loss), mainly driven by the investments held in fund units;

- The increase of Other reserves is due to the transfer of the net profit of the year 2018 in the reserves, as own funding sources;

- The item changes in the fair value of the financial assets measured through other comprehensive income rose 35% compared to the end of 2018, following the recognition of the positive changes of fair value related to the financial assets highlighted in this category (shares in companies where SIF Banat-Crisana holds a minority position - mainly the banking and energy sector, shares in the 2 consolidated subsidiaries, corporate bonds).

Dividend income, interest income and other income as at December 31, 2019 (preliminary) amounted to RON 121.5 million, up 5.8% as compared to 2018. The increase is mainly due to the upturn in the volume of dividends collected from stakes in banks held by the Company and directing the investments in fixed income instruments to corporate bonds.

Gain on investment in the financial year 2019, favourable as compared to 2018, is mainly the effect of recognizing within the revenues the fair value changes of assets measured at fair value through profit or loss.

Other operating expenses, including operating expenses, are 28.7% above those of the previous year’s, having an slower yoy progress compared to the growth of the company's net profit (+106%) or to the increase of the value surplus of the financial assets at fair value through other comprehensive income (+35%).

The preliminary net profit for the financial year 2019 is of RON 159.5 million, up 106.6% as compared to the prior year's result, mainly as a result of the influences detailed above.

Other comprehensive income includes changes in fair value of financial assets at fair value through other comprehensive income, up as compared to the previous year mainly as an effect of the positive dynamics of the fair value of the portfolio of financial assets listed on the Stock Exchange (stakes in the financial and the energy sector).

 

2019 Preliminary financial results can be found at the link below: 

 

 

Chairman and CEO, Bogdan-Alexandru DRAGOI                                                         

Financial Reporting Manager, Dorel BABA

 



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