Find in this section

1. Consolidated Balance Sheet Data

• Debts to clients
• Credits to economy
• Fixed assets

2. Consolidated Profit and Loss Account

• Net margin of utilized funds
• Sundry profits and commissions
• Overhead expenses
• Provisions for risks
• Net result
• Appropriation of the profit
• Administration

1. CONSOLIDATED BALANCE SHEET DATA

The consolidated balance sheet data include those from the Bank and the housing company INVESTIMMO in addition to those from the branches of Ngozi, Kirundo, Gitega, Muyinga and Rumonge which have got their own accountancy.

For Graph clic here - Pop Up window

On December 31st, 2003, the total balance sheet of INTERBANK BURUNDI is amounted to 63,722.9 M versus 56,254.9 M end December 2002, i.e. an increase of 13.3 %. This trend is due, in the assets, to treasury and inter-banking operations because of the increase of available in banks and, in the liabilities, to deposits of the clients and shareholders' equity.

DEBTS TO CLIENTS

Clic here for diagram - fenêtre Pop Up

The clients' resources are increasing substantially by 18.6 %, far less impressive than in 2002 when it was 67.0 %.

This progression is widely due to that of on sight deposits and at more than one month, an increase of 20.1 %, which include also deposits in hard currency increasing by 33.5 % from one year to another.

This trend is also due notably to the gains of the market shares at the level of the hard currency clients and to the deposits of other side funds from auctions funded by the European Union.

The clients' deposits in the total balance are estimated to 76.8 % versus 73.4 % on December 2002.

CREDITS TO ECONOMY

The freezing of clients uses is an effect of the outstanding funds control policy and the strict supervision of the credit conducted by the Bank during the three past years.

The Bank has nevertheless continued to meet the needs in clients operating funds, with an increase by 24.6 % in current accounts debtors balance.
The negative trend of degressive overdrafts and positive trend of "other credits" mean a transfer of a part of the commitments of a post to another for purposes of a good classification.

The dropping down of the coffee loans outstanding is the effect of the poor produce of 2003/2004 campaign whereas the decrease of export credits is due to the fact that coffee export funding are henceforth in hard currency since the year 2003.

INTERBANK BURUNDI, as the spearhead of the 2003/2004 campaign, has played a key role in the adoption of this way of financing having led and supported it at the Central Bank.

FIXED ASSETS

The substantial trend of fixed assets of the INTERBANK Burundi group is related to the investment program for the year 2003; which focussed on the expansion of our distribution network and has consisted of raising buildings, providing for office material and furniture, car park and computer equipment of our branches at Bujumbura, Rumonge and our counters at Novotel Hotel, Bujumbura International Airport and Finance Ministry Building.

2. CONSOLIDATED PROFIT AND LOSS ACCOUNT

NET MARGIN OF UTILIZED FUNDS

The interests' margin is a true reflection of the trend of uses and resources; good performances in the collection of resources growing expensive have also given rise to a substantial increase of financial expenses, i.e. 36.9 %, whereas the interests from the clients and treasury operations have rather increased by 20.1 %.

Although it is less marked than at end December 2002, the trend of the margin on interests of 4.1 % confirms the maintenance of the operating profitability of the Bank with a strictly supervised portfolio.

SUNDRY PROFITS AND COMMISSIONS

The growing trend of the commissions and various products in 2002 was pursued in 2003, while the revenues have increased up to 44.6 %, amounting to 5,831.2 Million versus 4,833.8 Millions the previous year.

This trend is due to the sustained activity at the International Banking inherent to the important commercial work done and to the net resumption of the international financial assistance.

The revenues from operations with foreign dealers have thus increased by 51.8 %.

OVERHEAD EXPENSES

Overhead expenses and depreciation are estimated to 3,036.8 M versus 2,648.7 M, a year before, i.e. an increase of 14.6 % by end December 2003.

As a result of the Bank's polilcy with respect to the mastery of overhead expenses, the slowing down of its progression continued in the year 2003; while they had increased from 43.6% in 1999, 44.3% in 2000, 30.6% in 2001 and 23.8% in 2002, they are rather in increase of 14.6% at the end of December 2003.

The control of the increase of overhead expenses and depreciation is so appreciable that it falls in a highly inflationary environment and in a context of ongoing expansion of the distribution network of the Bank and related charges.

PROVISIONS FOR RISKS

The level of those provisions reflect, at the same time, the increase of risks following the degraded socio-economic environment, but also, particularly, the qualitative reassessment of the credits portfolio of the financial system by the Central Bank which has enacted a more constraining prudential regulation.

This economic and regulatory environment requires more rigorous credit portfolio supervision and perspicacity in handling new files.

NET RESULT

The consolidated net result of the year is estimated to 1,110.5 M, after tax payment of 915.4 M, and is split between:

APPROPRIATION OF THE PROFIT

Dear Shareholders,

In conformity with article 52 of the Bank Charter, the Ordinary General Meeting is requested to speak over the project of allocation of the profit of the year.

The latter amounts to BIF 1,369,502,420 including the profit carried forward of BIF 259,038,646.

Let's propose the following appropriation:

ADMINISTRATION

In compliance with article 18 of the Bank's Charter, the Directors terms of:

• Father Gabriel BAZIRUWISABIYE
• Mr. Arturo COSTA
• Mr. Georges COUCOULIS
• Mr. Callixte MUTABAZI
• Mr. Bonaventure NICIMPAYE
• Mrs Marguerite RUMBETE
• SALEX CORPORATION

expire at the end of the current Meeting

These Directors are eligible again and submit their candidacies to you.

If they are agreeable to you, their term will end after the Ordinary General Meeting of 2005.

While concluding this report, we would like once more to congratulate the Steering Committee and all the staff members for the appreciable work done with determination and professionalism as well as for their sustained commitment in favour of the interests of the Bank and its clients.

The Board of Directors.