AUDITED FINANCIALS 2020PHYNO231aa

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I UNITEDBANK FORAFRICALIBERIALIMITED
ANNUALREPORTAND FINANCIALSTATEMENTS
I FORTHE YEAR ENDEDDECEMBER31, 2O2O
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CONTENTS PAGE(S)
Corporateinformation 1
Reportof Directors 2-3
CorporateGovernanceReport 4-6
Independent
Auditor'sReport 7-9
income
Statementof comprehensive 10
Statementof financialposition 11
Statementof changesin equity 12
Statementof cashflows' 13
Notes 14-63
Appendix
Branchand ATM locations
CORPORATEINFORMATION
t Board of Directors Dr. EugeneShannon

AbiolaBawuah
EbeleOgbue
Chairman
Diiector
Director
Cllr.CyrilJones Director
I Dr. WedeBrownell
AngeliqueWeeks
Nkechi Arizor
Director
Director
Managing Director
t Registered Office UnitedBankfor Africa(Liberia)Limited

P. O. Box4523, Broad& NelsonStreets
II Monrovia,Liberia
rl
IndependentAuditor PricewaterhouseCoopers(Liberia)LLC
I 9thStreet,PayneAvenue
Sinkor
1000Monrovia10, Liberia
I Solicitor Pierre,Tweh & Associates

PalmHotelBuilding
t P. O. Box 10-2536
Broad& RandallStreets
Monrovia.Liberia
I Bankers UnitedBankforAfrica (PLC)

CitiBank(London,England)
t UnitedBankforAfrica (NewYork)
Citi Bank(NewYork)
UnitedBankforAfrica (Ghana)
CentralBankof Liberia
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REPORTOF DIRECTORS
The Directorshavepleasurein submittingtheirreportto the shareholders,

togetherwiththe financialstatements
forthe yearendedDecember31,2V20.
Directors' ResponsibilityStatement
The Bank's Directorsare responsiblefor the preparationand fair presentationof the 1nancialstatements,
comprisingthe stateme.nt of financialpositionas at December31, 2020, andthe statementof comprehensive
income,statementof changesin equityand statementof cash flows for the year then ended,as well as the
notesto the financialstatements.Thesenotesincludea summaryof significantaccountingpoliciesand other
explanatorynotes,in accordancewith International FinancialReportingStandards(IFRS),the requirements
of
the B-usinessCorporationAct of the AssociationsLaw (amended)2O2bandthe New Finlncial InstitutionsAct
of 1999.
The Directors'responsibilityinctudesdesigning,implementing and maintaininginternalcontrolsrelevantto the

preparationand fair presentationof financialstatementsthat are free from malerialmisstatementwhetherdue
to fraudor error,selectingand applyingappropriateaccountirigpolicies,and makingaccountingestimatesthat
are reasonableunderthe circumstances.
The directorshave made an assessmentof the Bank'sabilityto continueas a going concernand have no
reasonto believethe Bankwill not be a goingconcernin the year ahead.
Holdingcompany
The Bank is a whollyowned subsidiaryof UnitedBank for Africa Plc, a companyincorporatedin the Federal
Republicof Nigeria.
Principal activities
The Bank'sprincipalactivitiescomprisecorporate,commercialand consumerbanking.Therewas no change

in the natureof the Bank'sbusinessduringthe year.
Financial results
The highlightsof the financialresultsof the Bankfor the year endedDecember31,2O2Oare set out below:
2020
LR$'ooo
Profitaftertax (attributable
to equityholders) 510,664
to which is addedthe balancebroughtforwardon retainedearningsof 351,{80
861,844
out of which is transferredto the statutoryreserve
in accordancewitr the New FinancialInititutionsAct of 1999an amountof (127,666)
leavinga balanceto be carriedforwardon the retainedearningsof

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REPORTOF THE DIRECTORS(continued)
Directors
The namesof the presentdirectorsare detailedon page 1.
Approval of the financial statements

4
The financialstatementsof the Bankwere approvedby the Boardof Directorson -*l.?. 2lzozt andsigned
on theirbehalfby:
HK
g1y'ro"n"Shannon
Ghairman
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Nkechi Arizor \-
ManagingDirector
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CORPORATEGOVERNANCEREPORT
COIIIMITTEE{BASFG)
BOARD ASSET-LIABILITY/STRATEG,Y/FINANCE
Name Designation Numberof Meetihgs Attendance
AngeliqueWeeks Chairman 4 4
NkechiArizor Member 4 4
AbiolaBawuah Member 4 4
At leastoncea year,the Boardis requiredto reviewthe UBALiberia'slong-termplansandthe principalissues

that UBA Liberiawill face in the future.This will be coordinatedby the BoardALCO/Strategy/Finance &
Governance Committee whichmayengagean Adviserto facilitatethisrole.
The BASFCcommitteeis mandatedto;

. formulateand shapethe strategyof the Bankand makerecommendations to the Boardaccordingly;
' conductone (1) Board/ManagemenVKey Stratqgyretreata yearto formulatethe strategy;
Shareholders
' reviewand approvethe budgetof the Bankwithinits limitand makerecommendations to the Boardfor
approvalsaboveits limit;
. reviewand approvewithinits approvedlimitsthe Manpowerplanfor the Bankas partof the Budget
plan
approvalprocess.The-Manpower shall at "nnu"l
a minimumincludethe vacancies,maximumlevels,cost
implication;
' monitorperformance of the Bankagainstits budget;
. conductquarterlybusinessreviewswithmanagement
andthe Bqard;
r concuron compensationfor Executives;
r approvecompensation of MD/CEOwiththe concurrence. of the Chairmanof the Board.
. considerand approveexpenses(includingDonations,Sponsorships and OverseasTraining)abovethe
limitsof Executivemanagementand its organsas specifiedin the ExpenseEmpowerment policy.
. considerandapprovesignificant andexpenditure
lT investments
. considerand approveextra budgetaryexpenditure(includingDonations,Sponsorships a1d O_verseas
Training)above the limits of Executivemanagementand its organs as specifiedin the Expense
Empowerment policy.
. considerandapproveincomereversals, refundsof fraudlosseson customeraccountsandconcessions on
charges(non-creditrelated)abovethe limitsof ExecutiveManagement and as specifiedin the Expense
Empowerment policy;
. reviewthe Assetsand LiabilityCommittee reports;
. developand reviewa Boardinformationsystemneededfor the Boardto carryout its oversightrole;
r approvecompensation policiesfor ED,DMD,MD/CEO;
and incentives
r recommend to the Boardfor approval.
of Directors
the entitlements
CORPORATEGOVERNANCEREPORT(continued)
BOARDCREDTTCOMMITTEE(BCC)
Name Designation Number of Meetings Attendance
AbiolaBawuah Chairman 4 4
NkechiArizor Member 4 4
EbeleOgbue Member 4 4
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The BoardCreditCommitteeis mandatedto;
. reviewand overseethe overalllendingpolicyof the Bank;

. deliberateon and approveloanapplicationsin excessof the deTinedlimitsfor management;
. directthe formulationof, and reviewthe creditprinciplesand policiesof the Bank;
r ensurethatthereare effectiveproceduresand resourcesto identifyand manageirregularproblemcredits,
minimisecreditlossesand maximiserecoveries;
. direct,monitor,reviewand considerall issuesthat may materiallyimpacton the presentand futurequality
of the Bank'screditriskmanagement;
. delegateand reviewlendingto the variouslevelsof the Bank;
' reviewand recommendto the Boardfor approval,the Bank'screditpoliciesand strategies;
. its limitsdefinedby the Bank'sCreditPolicy;
makecreditdecisionson behalfof the Board-within
. review and recommendto the Board for approvalthe credit and lending policies,frameworksand
proceduresof the Bankand reviewdelegatedcreditauthoritiesfor compliance;
. reviewand approveproductsthat havecreditand non-creditelements;
r and subjectto limitsset by the credit
approvecreditsabovethe limitsof the ExecutiveCredit.Committee
policyand as approvedby the Boardi
r recommendcreditsabovethe BoardBCCand BRMClimitto the Boardfor approval;
r periodicallyreviewthe loan portfolio;
. reviewrecommendations write
loan/interest
and approvesubjectto set limitswrite offs,loan restructures,
offs,concessionsand waiversin linewith approvedpolicies.
BOARDAUDIr COMMITTEE(BAC)
Name Designation Number of Meetings Attendance
Dr. Wede Brownell Chairman 4 4

CyrilJones Member 4 4
AngeliqueWeeks Member 4 4
The BoardAudit Committeeis mandatedto;
. reviewthe integrityof the Bank'sfinancialreportingand overseethe independence and objectivityof the

externalauditor:
. reviewand approvethe annualauditplan,internalauditcharterand makenecessarychangesto the plan,
the adoptionof whichmustbe subjectto the full Board'sapprovalgivingdue relevanceto the Committee's
recommendation(s);
. reviewthe performanceof the headof internalauditannually,the overallinternalauditfunctionquarterly,
as well as approvethe remunerationof staff in the intemalaudit sectionor department,subjectto final
approvalof the Board;
. and changeof the external
re-appointment
to the full boardon the appointnrent,
make recommendations
auditor;
T CORPORATE GOVERNANCE REPORT (continued)
BOARD AUDIT GOMMITTEE(BAC) (con$nued)
I I of the extemalauditors;
andtermsof erigagement
approvethe remuneration
I of thefull Boardandrequiremanagement
reviewthe auditor'sfindingand bringkeyissuesto the aftentircn
I thatthe necessarycorrective
problemsraisedby theauditsso thatthe boardcanensure
on progressin addressing
to reportperiodically
actionsare implemented in a timelymanner;
of thefinancialcondition
anddisclosures
monitorandassesstheoverallintegrityof thefinancialstatements
l and resultsof operations

monitormanagement's
of the Bank;
to ensurethatan effectivesystemof financialand internalcontrols
responsibilities
arein place;
I assistthe Boardin discharging itsresponsibilities technology(lT) as it relatesto financial

on information
reportingandthe statusof the Bankas a goingconcern;
monitorandevaluateon a regularbasisthequalifications, andperformance
independence of the External
I Auditorsandthe InternalAudit andControlDepartment;'
BOARDR|SKMANAGEMENT (BRMC)
COMMTTTEE
I Name Designation Numberof Meetings Attendance
I CyrilJones
WedeElliott-Brownell
EbeleOgbue
Chairman
Member
Member
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4
4
4
4
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I TheBoardRiskManagement is mandated
Committee to;
r approvethe annual risk managementplan includinga fraud risk plan for the Bank and overseeits
I implementation and monitorperformancei t

r ensurethat risk assessmentsare performedon a continualbasis and ensurethat frameworksand
methodologies are in placeto increasethe probability
of anticipating
unpredictablerisks;
. monitor,reviewand assessthe integrityand adequacyof the overallrisk management
I Bank;
. setthe bank'sappetiteand tolerancefor riskand recommend risklimitswithinacceptable
frameworkof the
tolerancefor the
I riskfevefsto the Boardfor approval;

. reviewand on a continuous basisupdatethe risk management
Banksubjectto the approvalof the Board;
policiesframeworks and procedur.es of the
t . Reviewthe sensitivityof the Bank'searningsto volatilityin equity,credit,treasuryand foreignexchange

marketsand makerecommendations to the Boardfor approval
CONTROL
ENVIRONMENT
I The Boardhascontinuedto placeemphasison riskmanagement as an essentialtoolfor achievingthe Bank's
objectives.
Towardsthisend,it hasensuredthatthe management hasin placerobustriskmanagement policies
I and mechanisms
for management
of riskand effectivecontrol.The Boardapprovesthe annualbudget
to ensureidentification
and ensuresthata robustbudgetaryprocessis operatedwith adequateauthorisation
putin placeto regulatecapitalexpenditure.
levels
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INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF IINTTED BANI( FORAFRIGT r TRERIA LIMITED
F REPORTON THE AUDITOF THE FINANCIALSTATETENTS
O u ro p i n i o n
In ouropinion,the accompanyingfinancialstatements
of UnitedBankfor AfricaLiberiaLimited(the "BanK)
givea trueandfairviewof the financialposition
as at December31, 2020,and of its financial
performance and its cashflowsfor the year then endedin accordancewith International Financial
ReportingStandardsand the New FinancialInstitutionsAct of 1999.
E
Whatwe have audite_d
of UnitedBankfor AfricaLiberiaLimitedfor the yearended

We haveauditedthe financialstatements
December31,2020.
The financialstatements
comprise:
the statementof financialpositionas at December31,2020;
F incomefor the yearthenended;

the statementof comprehensive
the statementof changesin equityfor the yearthenended;
the statementof cashflowsfor the yearthen ended;and
accountingpolicies.
whichincludea summaryof significant
the notesto the financialstatements,
F Basis for opinion
We conductedour audit in accordancewith lnternationalStandardson Auditing (lSAs). Our

responsibilities
audit of the financial
statements
sectionof our report.
for the
underthosestandardsare furtherdescribedin the Auditor'sresponsibilities
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We believethatthe auditevidencewe haveobtainedis sufficientand appropriate to providea basis
for our opinion.
lndependence
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We are independent
Accountants
of the Bankin accordance
(includingInternational
EthicsStandardsBoardfor Accountants
lndependence
havefulfilledour otherethicalresponsibilities
Standards)
Codeof Ethicsfor Professional
with the International
(theCode)issuedby the lnternational
that are relevantto our auditof the financialstatements.
in accordance withthe Code,
We
Other information
I The directorsare responsiblefor the other information.The other informationcomprisesthe
CorporateInformation, Reportof the Directorsand CorporateGovernanceReportbut does not
I and our auditor'sreportthereon.
includethe financialstatements
Our opinionon the financialstatementsdoes not coverthe otherinformation

and we do not express
I any formof assuranceconclusion thereon.
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I INDEPENDENT AUDITORS REFORT
TO THE MEMBERS OF UNTTED BANI( FOR.{FRICA, LIBERIA LIMITED (CONtiNUCd)
Other information(continued)
I is to read the other
In connectionwith our audit of the financialstatements,our responsibility
informationidentifiedaboveand, in doingso, considerwhetherthe other informationis materially
I inconsistentwith the financialstatementsor our knowledgeobtainedin the audit, or otherwise
appearsto be materiallymisstated.
I lf, basedon theworkwe haveperformed on the otherinformation,we concludethatthereis a material

misstatementof this other information,we are requiredto reportthat fact.We have nothingto report
in this regard.
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Responsibilitiesof the directorsfor the financialstatements
I The directorsare responsiblefor the preparationof financialstatementsthat give a true and fair view
in accordancewith International
BusinessCorporation
FinancialReportingStandardsand with the requirements
Act of theAssociations Law(amended)2020andthe NewFinancialInstitutions
of the
Act of 1999,and for such internalcontrolas the directorsdetermineis necessaryto enablethe

I preparationof financialstatementsthat are free from materialmisstatement,
error.
whetherdue to fraud or
the directorsare responsible

In preparingthe financialstatements, for assessingthe Bank'sabilityto
:
continueas a goingconcern,disclosing, as applicable,mattersrelatedto goingconcernand using
the goingconcernbasisof accountingunlessthe directorseitherintendto liquidatethe Bankor to
t ceaseoperations, butto do so.

or haveno realisticalternative
the Bank'sfinancialreportingprocess.
for overseeing
The directorsare responsible
l Auditor's responsibilitiesfor the audit of the financialstatements
Our objectivesareto obtainreasonable assuranceaboutwhetherthefinancialstatements as a whole

I are free from materialmisstatement,
that includesour opinion.Reasonable
whetherdue to fraudor error,and to issuean auditor'sreport
assuranceis a highlevelof assurance, but is not a guarantee
that an auditconductedin accordance with lSAswill alwaysdetecta materialmisstatement when it
I exists.Misstatements
the aggregate,
can arisefromfraudor errorand are consideredmaterialif, individually
theycouldreasonably be expectedto influence
on the basisof thesefinancialstatements.
or in
the economicdecisionsof userstaken
I As part of an audit in accordancewith lSAs, we exerciseprofessional

professional skepticismthroughoutthe audit.We also:
judgmentand maintain
. ldentifyand assessthe risksof materialmisstatement whetherdue

of the financialstatements,
I to fraud or error,designand performauditproceduresresponsiveto those risks,and obtain
auditevidencethat is sufficientand appropriate to providea basisfor our opinion.The risk of
not detectinga materialmisstatement resultingfromfraudis higherthanfor one resultingfrom
t error,as fraudmay involvecollusion,

overrideof internal
control;
forgery,intentionalomissions,misrepresentations,or the
. Obtain an understanding of internalcontrolrelevantto the audit in order to design audit

I procedures but notfor the purposeof expressing
in the circumstances,
that are appropriate
of the Bank'sinternalcontrol;
opinionon the effectiveness
an
. Evaluatethe appropriateness of accountingpolicies used and the reasonablenessof

I madeby the directors;
estimatesand relateddisclosures
accounting
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I INDEPENDENT AUDITORS REFORT
TO THE MEMBERS OF T]NTTED BAIYKFORAFRICALIBERIA LIMITED (CONtiNUCd)
audit of the financial statements (continued)

]
. Concludeon the appropriateness of the directors'use of the goingconcernbasisof accounting
exists relatedto
and, based on the audit evidenceobtained,whethera materialuncertainty
t eventsor conditionsthat may cast significantdoubton the Bank'sability
concern.lf we concludethat a materLl uncertaintyexists,we are required
to
or,
continue
to
if
draw
such
as a going
attentionin
disclosures
-toto the relateddisclosuresin the financialstatements
our auditor', 1."port
audit evidence
are inadequatd roOify our opinion.Our conclusionsare based on the
I obtainedup to the date of bur auditor'sreport.However,futureeventsor conditions may cause
the Bankto ceaseto continueas a goingconcern;and
t . Evaluatethe overallpresentation, structureand contentof the financialstatements,including

the disclosures,andwhetherthe financialstatementsrepresentthe underlyingtransactions
and
eventsin a mannerthat achievesfair presentation'
I We communicatewith the directorsregarding,amongother matters,the

of the auditand significant auditfindingl, any
incllrding significant
plannedscope and timing
in internalcontrolthat
deficiencies
we identifyduringour audit.
I NEPORTON OTHERLEGALAND REGULATORYREQUIREMENTS
we herebyconfirm
ln accordancewith section21(1)(a)of the New FinanciallnstitutionsAct of 1999,
I that.
r i) we have obtainedall the informationand explanationswhich to the best of our

beliefwere requiredfor the purposesof our audit;and
knowledgeand
\r) \he BanRs ba\ance street (statemen\ of {rnanc\a\posit\on\ and income staGment (statement of-
I comprehensiveincome)are properlydrawnup so as to presenta true and fair view of the stateof
the Bank'saffairsaccoidingio ifre best of the informationand the explanationsgiven to us, and
as shownby the booksofthe Bank.
I n
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I V.*o*s<"lr^rhruzlxn'pe"b
PricewaterhouseCooPers I
I CertifiedPublic Accountants
Monrovia,Liberia
.lun"*Sfzozt
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STATEMENTOF COMPREHENSIVE INCOTE
(All amountsare in thousandsof Liberiandollars)
Year ended December31
Note 2019
lnterestincome 5 1,539,277 894,876
^ 5 (224,3261 (152,786\
lnterestexpense
Net interest income 1,314,951 742,090
Feesand commission income 992,956 928,265

Net trading(expense)/income 7 (5,7491 18,403
other operatinqincome 8 209-Qa9!9-
Operating income 2,302,358 1,751,111
lmpairmentchargeon financialassets 9 1223,2631 (91,35e)

Personnelexpenses 10 (543,765) (489,172)
Depreciation and amortisation 11 (92,920) (110,612)
Other 12 7 5
Profit before income tax 636,737 344.480
lncometax
Profit after income tax 258,914
Othercomprehensive income:
Itemsthat may not be reclassifiedto profit orloss
Exchangedifferenceon translationfrom US dollarsto Liberian
dollars 197.281
Basicearninqsper share 24 0.452 0.229

Dilutedearningsper share 0.229
The noteson pages14 to 63 are an integralpartof thesefinancialstatements.
10
STATEMENTOF FINANCIALPOSITION
(Allamountsare in thousandsof Liberiandollars)
I At December31
r Assets
Cashand bank balanies
Loansand advancesto customers
Note
14
15
2020
11,028;981
4,575,157
2019
8,659,375
4,876,968
I Investmentsecuritiesat amortisedcost
Otherassets
Propertyand equipment
16
17
18
5,286,228
2,574,924
156,597
4,493,743
1,890,383
193,016
t Intangibleassets
Deferredincometax assets
Riqht-of-useassets
19
13
20
478
18,817
200.529
2,275
41,083
r Liabilities
r Depositsfrom customers
Otherliabilities
Currentincometax liabilities
Deferredincometax liabiliiies
21
22
13
13
20,278,800
346,994
160,138
16,167,121
1,314,246
91,626
16,987
I Leaseliabilities
Total liabilities
20 155,706
20,941,638
36,254
17,626,234
t Equity
Sharecapital 23 1,129,769 1,128,769
r Cumulative
Retainedearninqs
Totalequitv
reserve
translation
Statutoryreserve
23
23
23
724,424
312,602
734,178
2,899,973
86,5,724
184,936
351,19)
2,530,609
I Total equitv and liabilities 23,841,611 20,156,843
I The financialstatem
and signedon thei
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I Dr. EugeneShahnon
Chairman
NkechiArizor
ManagingDirector
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STATEMENTOF CHANGESIN EQUITY
(Allamountsare in thousandsof Liberiandollars)
Cumulative
Year ended December31. 2O2O Share capital translation
Statutory Total
::::i:::
earnlngs reserve
reserve
At January1 ^ 1.128.769 865.724 351,8

10 184.936 2.530.609
Profitfor the year 510,664 510,664

Othercomprehensive
income
Foreigncurrencytranslation - (141,300) - (14{.300)
Totalcomprehensive
income (141,300) 510,664 369.364
Transferto statutoryreserve (127,666\ 127,666
At December31 1,128,769 724,424 734,178 312,602 2,899,973
YearendedDecember31. 2019
At January1 1,128,769 668,443 186.962 120,208 2,104,382
/FRS 9 transitionadjustments:
lncreasein impairmentprovisioning (29,968) (29,968)
At January1 (restated) 1.128,769 668,443 156.99f 120.208 2.074.414
Profitfor the year 258,914 258,914

Othercomprehensive
income
Fqteig! currencytranslation - 197,281 197,281
Totalcomprehensive
income 197.281 258.914 456.195
Transfertg statutoryreserve - (64,728) 64,728

At December31 1,128,769 ffi5,724 351,180 184,936 2,530,609
12
STATEMENTOF CASH FLOWS
(All amountsare in thousandsof Liberiandollars)
Note Year ended December31

2020 2019
Gash flows from operating activities
Profit beforetax 636,737 344,480
Adjustments for:
Depreciation and amortisation 11 92,920 110,612
Interestexpenseon leaseliabilities 2A 13,373 1,814
lmpactof IFRS9 adoption 15 (2e,e68)
Exchangegainon leaseliabilities 20 (23,7101
Changesin:
Loansand advancesto customers 301,811 (801,025)
Otherassets (706,691) ( 1 , 3 3 5 , 1 0 9 )
Depositsfrom customers 4,1',1,679 4,217,500
Otherliabilities (967,2521 358,495
Incometax paid 13 (93,365) (28,323\
Net gashgeneratedfrom operatingactivities 3,365,502 2,838,476
Cash flows from investing activities

Purchaseof propertyand equipment {8 (9,192) (82,455)
Net purchaseof investmentsecuritiesmaturingover 91 days l6 (3,160,991)
Purchaseof intangibleassets 19 (4781 (335)
Net cash outflow from investing activities (3,170,661) (82,790\
Cash flows from financing activities

Financeleasepavments 20 (i52.4/.11
Net cash outflow from financing activities l52,M1l
Net increasein cash and cash equivalents 142,400 2,755,686
Effectof exchangeratefluctuations (141,300) 197,281
Cashand cash equivalentsat January1 14 13,153,118 10,200,151

Cash and cash equivalentsat December3l 14 13,154,218 13,153,118
13
NOTES
Reportingentity
UnitedBankfor Africa(UBA)LiberiaLimited('theBank")is a limitedliabilitycompanydomiciledin Liberia.The

addressof the Bank'sregisteredofficeis P. O. Box4523,Broad& NelsonStreets,Monrovia.The Bankis a
of UnitedBankfor Africa(Plc).The Bankoperateswitha universalBankinglicensethatallowsit to
subsidiary
undertakeall bankingand relatedservice.
Summaryof significanticcounting policies
policiesappliedin the preparation

Theprincipalaccounting of thefinancialstatements aresetout below.These
policies
accounting have been consistentlyappliedto all periodspre_sentedin these statements.
financial
2.1 Basisof preparationand adoptionof IFRS
Thefinancialstatements of the Bankhavebeenpreparedin accordanee FinancialReporting

with International
Standards(IFRS)and with the requirements Act (1999)and the Business
of the New FinanoialInstitutions
CorporationRct 6f the AssociationsLaw (amended)2020.Thesefinancialstatementshave beenprepared
underthe historicalcostconventionunlessotherwisestated.
The preparation of financialstatements IFRSrequirestheuse oJcertaincriticalaccounting

in conformitywith
estimates.lt alsorequiresthe to
directors judgment
exercise in the proce5sof applyingthe Bank'saccounting
policies.
(a) Functionaland presentationcurrency
Items includedin the financialstatementsare measuredusing the currencyof the primaryeconomic

environmentinwhichtheentityoperates('thefunctionalcurrency'). currencyis the United
TheBank'sfunctional
StatesDollarswhilethe presentation
currencyis the Liberian'Dollars.
(b) Basisof measurement
These financialstatementshave been preparedon the historicalcost basis exceptas disclosedin the
accountingpolicies.
(c) Useof estimatesand iudgments
The preparationof the financialstatementsrequiresthe directorsto make judgments,estimatesand

assumptions that affectthe application incomeand
of policiesand reportedamountsof assetsand liabilities,
expenses.The estimatesand associated assumptions and variousother
are basedon historicalexperience
factorsthat are believedto be reasonableunderthe circumstances, the resultsof whichform the basisof
makingthe judgmentsaboutcarryingvaluesof assetsand liabilitiesthat are not readilyapparentfromother
sources.Actualresultsmaydifferfromtheseestimates.
The estimatesand underlyingassumptionsare reviewedon an ongoingbasis. Revisionsto accounting

in the periodin whichtheestimateis revisedandin anyfutureperiodsaffected.These
arerecognised
estimates
estimateshavebeendisclosed in note4 to thefinancialstatements-
(d) Gomparativefigures
Where necessary,comparativefigures within notes have been reclassifiedto conform to changes in

presentation
in the currentYear.
14
r 2. Summary of significant accounting policies (continued)
2.2 Changes in accounting policies and disclosures
t 2.2.1New and amendedstandards and interpretationsadopted by the Bank
Amendmentto IAS 1 and IAS 8

'material'.The amendmentsare intendedto clarify,modify
I In October2018,the IASBissuedthe definitionof
and ensurethat the definitionof
'material'is consistentacrossall IFRS. In IAS 1 (Presentation
of Financial
Statements)and IAS 8 (Accounting Policies,Changesin Accounting Estimatesand Enors), the revised
definitionof 'material'is quotedbelow:
t "An information is material if omitting, misstating or obscuring it could reasonably be expected to

influence decisions that the primary userc of general purpose financial statements make based on
those financial statements,which provide financial information about a specific reporting entityt".
I The amendmentslaidemphasison five (5) ways materialinformationcan be obscured.Theseinclude:

o lf the languageregardinga materialitem,transactionor othereventis vagueor unclear;
I . lf informationregardinga materialitem,transactionor othereventis scatteredin differentplacesin the

financialstatements;
.
t
or othereventsare inappropriately
lf dissimilaritems,trans'actions aggregated;
. lf similaritems,transactionsor othereventsare inappropriately and
disaggregated;
. lf materialinformationis hiddenby immaterialinformationto the extentthat it becomesunclearwhat
I informationis material.
The Bankhas taken into considerationthe new definitionin the preparationof its financialstatements.
2.2.2 New and amended Standards not yet adopted by the Bank
I Thefollowingstandardshavebeenissuedor amendedby the IASBbut are yet to becomeeffectivefor annual
periodsbeginningon or afterJanuary1,2020.
|| The Bank has not appliedthe followingnew or amendedstandardsin preparingthesefinancialstatements

as it plans to adopt these standardsat their respectiveeffectivedates. Commentarieson thesd new
standards/amendments are providedbelow.
t Amendment to IFRS16 - Leases:COVID-19-Related

Rent Concessions
ln May 2020, the IASB amendedIFRS 16 Leasesto providereliefto lesseesfrom applyingthe IFRS 16
l| guidanceon lease modificationsto rent concessionsarisingas a direct consequenceof the COVID-19
pandemic.The amendmentdoes not applyto lessors.
t As a practicalexpedient,a lesseemayelectnotto assesswhethera COMD-19relatedrentconcessionfrom

A lesseethat makesthis electionaccountsfor any changein leasepayments
a lessoris a leasemodification.
resultingfrom the COVID-19relatedrent concessionthe same way it would accountfor the changeunder
IFRS16, if the changewere not a leasemodification.
I
t
t
t 15
l|
NOTES(continued)
Summary of significant accounting policies (continued)
2.2 Ghangesin accounting policies and disclosures (continued)
2.2.2New and amended Standards not yet adopted by the Bank (continued)
Amendment to IFRS16 - Leases:COVID-19-Related

Rent Goncessions(continued)
The practicalexpedientappliesonly to rent concessionsoccurringas a directconsequenceof the COVID-

19 pandemicand only if all of the followingconditionsare met:
o The change in lease paymentsresultsin revisedconsiderationfor the leasethat is substantiallythe

for the leaseimmediatelyprecedingthe change;
sameas, or lessthan,the consideration
. Any reductionin lease paymentsaffectsonly paymentsoriginallydue on or before30 June 2021 (tor
example,a rentconcessionwouldmeetthis conditionif it resultsin reducedleasepaymentsbefore30
June2021and increasedleasepaymentsthat extendbeyond30 June 2021);and
o Thereis no substantivechangeto othertermsand conditionsof the lease.
IFRS17 - InsuranceContracts
The fASBissuedIFRS17 in May 2017 andappliesto annualreportingperiodsbeginningon or after 1 January
202'l.The new IFRS17 standardestablishesthe principlesfor the recognition,measurement, presentationand
disclosureof lnsurancecontractswithinthe scope of the Standard.The objeOtive of IFRS 17 is to ensurean
entityprovidesrelevantinformationthat faithfullyrepresentsthosecontracts.This informationgivesa basisfor
usersof financialstatementsto assessthe effectthat insurancecontractshaveon the entity'sfinancialposition,
financialperformanceand cashflows.
This standarddoes not impactthe Bankin anywayas it does not engagein insurancecontracts.
2.3 Foreign currency translation
Functionaland presentationcurrency
Foreigncurrencytransactionsthat requiresettlement,in a foreigncurrencyare translatedinto the functional

currencyusingthe exchangeratesprevailingat the datesof the transactions.Monetaryitemsdenominatedin
foreigncurrencyare translatedusingthe closingrate as at the reportingdate. Non-monetaryitemsmeasured
at historicalcost denominatedin a foreigncurrencyare translatedwiththe exchangerateas at the dateof initial
recognition.Foreignexchangegainsand lossesresultingfrom the settlementof foreigncurrencytransactions
and fromthe translationat period-endexchangeratesof monetaryassetsand liabilitiesdenominatedin foreign
currenciesare recognisedin the statementof comprehensive income.
As the Bank'sfunctionalcurrencyis differentfrom the presentation

currency,the resultsand financialposition
are translatedintothe presentation
currencyas follows:
. assetsand liabilitiesare translatedat the closingrateat the reportingdate;
. incomeand expensesare translatedat averageexchangerates;and
. resulting exchange differenceson non-monetaryassets and liabililiesare recognisedin other
comprehensive income.
16
NOTES(continued)
2.4 Interest income and interest expense
incomefor all interest-bearing

Interestincomeand expensesare recognisedin the statementof comprehensive
instrumentson an accrualbasisusingthe effectiveinterestrate method.
The effectiveinterestrite is the rate that exactlydiscountsthe estimatedfuturecash paymentsand receipts

throughthe expectedlifeof the financialassetor liability(or,whichappropriate,a shorterperiod)to the carrying
amountof the financialasset or liability.The effectiveinterestrate is establishedon initialrecognitionof the
financialassetand liabilityand is not revisedsubsequently.
The calculationof the effectiveinterestrate includesall fees and interestpaid or receivedtransactioncosts,

and discountsor premiumsthat are an integralpart of the effectiveinterestrate. Transactioncosts are
incrementalcostsdirectlyattributableto the acquisition,issueor disposalof a financialassetsor liabilities.
lnterestincomeand exoensesincludeintereston financialassetsand liabilitiesat amortisedcoston an effective

interestrate basis. Interestincomeand expenseon all trading assets and liabilitiesare consideredto be
incidentalto the Bank'stradingoperationsand are presentedtogetherwith all otherchargesin the fair valueof
tradingassetsand liabilitiesin nettradingincome.
2.5 Feesand commissiOns
Feesand commissionsincomeand expensesthat are integralto the effectiveinterestrateon a financialasset

or liabilityare includedin the measurementof the effectiveinterestrate.Feesand commissionsincludebut not
limitedto;
Trade financeand other fees relateto incomeon importand exportfinancetransactions,and other similar
fees earnedon loansand advances
transactions.Creditrelatedfees and commissionsrelateto establishment
otherthan interestincome.
Accountservicingfees relateto incomeearnedon currentaccountservicesand relatedservices.Commission

on remittancesrelatesto fees earnedon activitiesof the Bankrelatingto outwardand inwardremittanceservice
chargeson currentaccounts,and otherearningson similarcommissionrelatedtransactions..
Creditrelatedfees and commissionrelateto establishmentfees earnedon loans and advancesother than

interestincome.Other commissionsand fees relate to incomeon import and exportfinancetransactions,
issuanceof lettersof credit,guaranteesand othertransactionsnot includedin the othercategories.
Fees and commissionincome, including account servicing fees, investmentmanagementfees, sales

commissions,placementfees and syndicationfees, are recognisedas the relatedservicesare performed.
Otherfees and commissionexpenserelatemainlyto transactionand servicefees,whichare expensedas the
servicesare received.
2.6 Net trading income
Nettradingincomecomprisesgainsless lossesrelatedto tradingassetsand liabilitiesand includesall realised

fair valuechanges,interest,and foreignexchangedifferences.
17
NOTES(continued)
2. Summary of significant accounting policies (continued)
2.7 Income tax expense

Incometax expensecomprisescurrentand deferredtax. Incometax expenseis recognisedin the income
statementexceptto the extentthat it relatesto itemsrecogniseddirectlyin equity,in whichcaseit is recognised
in equity.
Currenttax is the expectedtax payableon the taxable income for the year, using tax rates enacted or
substantivelyenactedat the balancesheet date, and any adjustmentto the payablein respectof previous
years.
Deferredtax is providedusingthe statementof financialpositionmethod,providingfor temporarydifferences
betweenthe carryingamountsof assetsand liabilitiesfor financialreportingpurposesand the amountsused
for taxationpurposes.Deferredtax is not recognisedfor temporarydifferencesarisingon the initialrecognition
of assetsor liabilitiesin a transactionthat is not a businesscombinationand that affectsneitheraccountingnor
taxable profit. Deferredtax is measuredat the tax rates that are expected to be applied to the temporary
differenceswhen they reverse,basedon the lawsenactedor substantively enactedby the reportingdate.
A deferredtax assetis recognisedonlyto the extentthat it is probablethatfuturetaxableprofitswill be available
againstwhich the asset can be utilised.Deferredtax assets are reviewedat each reportingdate, and are
reducedto the extentthat it is no longerprobablethat the relatedtax benefitwill be realised.
2.8 Financialassetsand liabilities
a) Initial recognition and measurementof financial assets

Financialinstrumentsare recognisedinitiallywhen the Bank becomesa partyto the contractualprovisionsof
the instrument.Financialinstrumentscarriedat fair valuethroughprofitor loss are initiallyrecognisedat fair
value with transactioncosts, which are directly attributableto the acquisitionor issue of the financial
instruments,beingrecognisedimmediatelythroughprofitor loss. Financialinstrumentsthat are not canied at
fair value through profit or loss are initiallymeasuredat fair value plus transactioncosts that are directly
attributableto the acquisitionor issueof the financialinstruments.Financialinstrumentsare recognisedor de
recognisedon the datethe Bankcommitsto purchaseor sell the instrument(tradeday accounting).
i. Regular-waypurchasesand salesof financialassetsare recognisedon the tradedate. Financialasseb,
which includeboth debt and equity securitiesare measuredat initialrecognitionat fair value, and are
classifiedand subsequentlymeasuredat fair valuethroughprofitor loss(FWPL), fair valuethroughother
comprehensive income(FVOCI)or amortisedcost. Subsequentclassificationand measurementfor debt
securitiesis basedon the businessmodelfor managingthe financialinstrumentsand the contractualcash
flow characteristics
of the instruments.
ii. Debtinstrumentsare measuredat amortisedcost if bothof the followingconditionsare met and the
assetis not designatedas FWPL:
o the assetis heldwithina businessmodelthatis Hold-to-Collect

(HTC)as describedbelow,and
o the contractualtermsof the instrumentgive riseto cashflowsthat are solelypaymentsof principal
and intereston the principalamountoutstanding (SPPI).
iii. Debtinstrumentsare measuredat FVOCIif bothof the followingconditionsare met and the assetis not
designatedas FWPL:
. the asset is held within a businessmodelthat is Holdto-Collect-and-Sell

(HTC&S)as described
below,and
o the contractualtermsof the instrumentgive rise,on specifieddates,to cashflowsthat are SPPI-
All otherdebt instrumentsare measuredat FVTPL.The Bankhas irrevocablyelectedto measureequity

instrumentsat FVOCIas no equityinstrumentis heldfor tradingpurposes.
18
NOTES(continued)
2.8 Financialassets and liabilities (continued)
a) Initial recognition and measurementof financial assets (continued)
Busrnessmodel assessrnenf
The Bankdeterminesthe businessmodelsat the levelthat best reflectshow portfoliosof financialassetsare

managedto achievethe Bank'sbusinessobjectives.Judgmentis used in determiningthe businessmodels,
which is supportedby relevant,objectiveevidenceincluding:
o How the economicactivitiesof our businessesgeneratebenefltd,for examplethroughtradingrevenue,
enhancingyields or other costs and how such economicactivitiesare evaluatedand reportedto key
managementpersonnel;
. The significantrisksaffectingthe performanceof the Bank'sbusiness,for example,marketrisk,creditrisk,
or otherrisksand the activitiesundertakento managethoserisks;and
o Historicaland future expectationsof sales of the loans or securitiesportfoliosmanagedas part of a
businessmodel.
The Bank'sbusinessmodelsfall intothreecategories,whichare indicativeof the key strategiesusedto
generatereturns:
. Hotd-to-Cotlect(HTC):The objectiveof this businessmodelis to holdfinancialassetsto collectcontractual

principaland interestcashflows.Salesare incidentalto this objectiveand are expectedto be insignificant
or infrequent.
. Hold-to-Collect-and-Sell(HTC&S): Both collecting contractual cash flows and sales are integral to
achievingthe objectiveof the businessmodel.
. Otherfair value busrnessmodels:These businessmodelsare neitherHTC nor HTC&S,and primarily
or managedon a fair valuebasis.
representbusinessmodelswhereassetsare held-for-trading
Instrumentsheld within the HTC or HTC&S businessmodelsare assessedto determineif their contractual
cashflowsare comprisedof solelypaymentsof principaland interest(SPPI).SPPI paymentsare thosewhich
wouldtypicallybe expectedfrom basiclendingarrangements. Principalamountsincludepar repaymentsfrom
lending and financing arrangements,and interest primarily relates to basic lending returns, including
compensation for creditriskand the timevalueof moneyassociatedwiththe principalamountoutstandingover
a periodof time. Interestcan also includeother basic lendingrisks and costs (for example,liquidityrisk,
servicingor administrativecosts)associatedwith holdingthe financialassetfor a periodof time, and a profit
margin.
Wherethe contractualterms introduceexposureto risk or variabilityof cash flowsthat are inconsistent

with a
basiclendingarrangement,the relatedfinancialassetis classifiedand measuredat FWPL.
Fairvalue option
A financialinstrumentwith a reliablymeasurablefair valuecan be designatedas FWPL (thefair valueoption)

on its initialrecognitioneven if the financialinstrumentwas not acquiredor incurredprincipallyfor the purpose
of sellingor repurchasing. The fair value optioncan be usedfor financialassetsif it eliminatesor significantly
reducesa measurementor recognitioninconsistencythat would othenruise arise from measuringassets or
'accountingmismatch").
or recognisingrelatedgainsand losseson a differentbasis(an
liabilities, Thefairvalue
optioncan be electedfor financialliabilitiesif the electioneliminatesan accountingmismatch.
19
NOTES(continued)
2.8 Financial assets and liabilities (continued)
a) Initial recognition and measurementof financial assets (continued)
Fair value option (continued)
Financialassetsdesignatedas FWPL are recordedat fair value and any unrealisedgains or lossesarising
due to changesin fair valueare includedin nettradingand foreignexchangeincome.
Financialliabilitiesdesignatedas FWPL are recordedat fair value and fair value changesattributableto
changesin the Bank'sown creditriskare recordedin OCl. Own creditriskamountsrecognisedin OCI are not
reclassifiedsubsequentlyto net income.The remainingfair value changesnot attributableto changesin the
Bank'sown creditrisk are recordedin Otheroperatingincome.Upon initialrecognition,if it is determinedthat
presentingthe effectsof own creditriskchangesin OCIwouldcidateor enlargean accountinjmismatchin net
income,the full fair valuechangein debt securitiesdesignatedas FVTPLis recognisedin net income.
To makethat determination, the Bankassesseswhetherto expectthat the effectsof changesin the liability's
creditriskwill be offsetin profitor lossby a changein the fair valueof anotherfinancialinstrumentmeasured
at FWPL. Suchan expeetationis basedon an economicrelationshipbetweenthe characteristics of the
liabilityand the characteristicsof the otherfinancialinstrument.The determination is madeat initial
recognitionand is not reassessed.To determinethe fair valueadjustmentson debt instrumentsdesignatedat
FWPL, the Bankcalculatesthe presentvalueof the instrumentsbasedon the contractualcashflowsoverthe
term of the arrangementby usingour effectivefundingratea! the beginningand end of the period.
Financialassetsare reclassifiedwhen and onlywhenthe businessmodelformanagingthoseassetschanges.

The reclassification
takes placefrom the startof the first reportingperiodfollowingthe change.Suchchanges
are expectedto be very infrequentand noneoccurredduringthe period.
b) Financialliabilities
The Bank recognisesfinancialliabilitieswhen it first becomesa partyto the contractualrightsand obligations

in relevantcontracts.
Under IFRS 9, financialliabilitiesare either classifiedas financialliabilitiesat amortisedcost or financial

liabilitiesat FWPL. The Bankclassifiesits financialliabilitiesas measuredat amortisedcost,exceptfor:
Financialliabilities is appliedto derivatives,financialliabilitiesheldfor trading(e.9.

at FVTPL:this classification
shortpositionsin the tradingbooking)and otherfinancialliabilitiesdesignatedas such at initialrecognition. A
financialliabilityis classifiedas heldfor tradingif it is a partof a portfolioof specificfinancialinstrumentsthat
are managedtogetherand for whichthere is evidenceof a recentactualpatternof short-termprofiGtaking.
Gainsor lossbsfrom financialliabilitiesdesignatedat fair valuethroughprofitor loss are presentedpartiallyin
othercomprehensive income(theamountof changein the fair valueof the financialliabilitythat is attributable
to changesin the Bank'sown creditrisk,whichis determinedas the amountthat is not attributableto changes
in marketconditionsthat give riseto marketrisk)and partiallyprofitor loss(the remainingamountof changein
the fair value of the liability).This is unless such a presentationwould create, or enlarge;an accounting
mismatch,in whichcasethe gainsand lossesattributable to changesin the Bank'screditriskare alsopresented
in profitor loss.
Financialliabilitiesthat are not classifiedat fair value throughprofitor loss are measuredat amortisedcost
usingthe effectiveinterestratemethod.Financialliabilitiesmeasuredat amortisedcostare depositsfrom banks
or customers,bonowings,and otherfinancialliabilities.
20
NOTES(continued)

(c) Modificationsof financial assets
The credit risk of a financialasset will not necessarilydecreasemerelyas a resultof a modificationof the
contractualcashflows.-lfthe contractualcashflows on a financialassethave been renegotiatedor modified
andthefinancialassetwas notde-recognised, the Bankassesseswhethertherehasbeena significantincrease
in the creditriskof the financialassetby comparing:
. the riskof a defaultoccurringat the reportingdate (basedon the_modified contractualterms);and

. the riskof a defaultoccurringat initialrecognition(basedon the original,unmodifiedcontractualterms).
A modification will howeverleadto de-recognition

of existingloanand recognitionof a new loan i.e.substantial
modificationif the discountedpresentvalueof the cashflows,underthe newterms,includingany fees received
net of any fees paid and discountedusingthe originaleffectiveihterestrate, is at leastten per cent different
from the discountedpresentvalueof the remainingcashflowsof the originalfinancialasset.
The followingwill be applicableto modifiedfinancialassets:.
o the modificationof a distressedassetis treatedas an originatedcredit-impaired

assetrequiringrecognition
of lifetimeECL aftermodification.
e the cumulativechangesin lifetimeexpectedcreditlossessince initialrecognitionis recognisedas a loss
allowancefor purchaseor originatedcredit-impaired financialassetat the reportingdate.
e the generalimpairmentmodeldoes not applyto purchasedor originatedcredit-impaired assets.
The followingsituations(qualitative)
may however,not leadto a de-recognition
of the loan:
. Changein financialasset'stenor(increaseor decrease).
. Changein installmentamountto higheror loweramount.
. Changein the annuityrepaymentpattern,for example,from monthlyto quarterly,half-yearlyor yearly.
. Changein the applicablefinancialassetfee.
gain or loss is includedas partof allowancefor creditlossfor eachfinancialasset.

Modification
(d) De-recognitionof financial instruments
The Bankderecognises a financialassetonlywhenthe contractualrightsto the cashflowsfromthe assetexpire

or whenthe Banktransfersthe rightto receivethe contractualcashfiowson the financialassetin a transaction
in which substantiallyall the risks and rewardsof ownershipof the financialassetsare transferred,or has
assumedan obligationto pay thosecashflowsto one or morerecipients,subjectto certaincriteria.Any interest
in transferredfinancialassetsthat is createdor retainedby the Bank is recognisedas a separateasset or
liability.
The Bankmay enter intotransactionswherebyit transfersassets,but retainseitherall risksor rewardsof the
transferredassets or a portionof them. lf all or substantiallyall risks and rewardsare retained,then the
transferredassets are not de-recognised.ln transactionswhere the Bank neither retains nor transfers
substantially all the risksand rewardsof ownershipof a financialasset,it de-recognises
the assetif controlover
the asset is lost.
The rights and obligationsretainedin the transferare recognisedseparatelyas assets and liabilitiesas
appropriate.In transferswherecontroloverthe assetis retained,the Bankcontinuesto recognisethe assetto
the extentof its continuinginvolvement,
determinedby the extentto whichit is exposedto changesin the value
of the transferredasset.
The Bankde-recognises
a financialliabilitywhen its contractualobligationsare dischargedor cancelledor
expire.
21
NOTES(continued)
e) Offsetting financial instruments
Financialassets and liabilitiesare offsetand.thenetarnount reportedin the statementof financialpositionwhen

thereis a currentlylegallyenforceablerightto offsetthe recognisedamountsand
thereis an intentionto setfle
on a net basisor realisethe assetand settlethe liabilitysimuitaneously.The legallyentoiceaoterightmust not
be contingenton future events and must be enforceible in the normalcourse
of businessand in event of
default,insolvencyor bankruptcyof the companyor the counterparty
Income-andexpensesare presentedon a netbasis only when permitteounder

IFRSor for gainsand losses
arisingfrom a groupof similartransactionssuchas in the Bank'stradingactivity.
f) lmpairment of financial assets : ,

ln linewith IFRS9, the Bankassessesthe underlistedfinancialinstrumentsfor
impairmentusingExpected
CreditLoss(ECL)approach:
r Financialassetsat amortisedcost:
o Debtsecuritiesclassifiedas at FVOCI;
. Off-balancesheetloancommitments;
and _
o Financialguaranteecontracts.
Equity instrumentsand financialassets measuredat FWPL are not subjected

to impairmentunder the
standard.
g) Financialguarantees
Financialguaranteesare contractsthat requirethe Bankto makespecifiedpayments

to reimbursethe holders
for lossesincurbecausespecifieddebtorsfail to makep"yr"ni" vrlhenOue,
in accordancewith the termsof a
debt instrument.
All financialguaranteeliabilitiesare disclosed.by way of notesin the financialstatementsand are only included
in otherliabilitiesif the liabilityhas crystallizedor becomesprouaot-that it
wi1 crystalliie.-
2.9 Loans
Loansare debt instrumentsrecognisedinitiallyat fair valueand are subsequenily

measuredin accordancewith
the classificationof financialassets policy providedabove. Loans are carrie-d
at amortisedcost using the
effectiveinterestmethod,which representstne grosscarryingamountless
allowancefor creditlosses.
Intereston loansis recognisedin interestincomeusingthe effectiveinterest
method.Theestimatedfuturecash
flowsused in this calculationincludethosedetermineJuy the contiactualterm
of the assetand all feesthat are
consideredto.be integraltothe effectiveinterestrate.Also includedin this
amountare transactioncosts and
all otherpremiumsor discounts.
Fees that relate to activitiessuch.as originating,restructuringor renegotiating

loans are deferred and
recognisedas Interestincomeoverthe expeltedteim of suchloais using
the effectiveinterestmethod.where
there is a reasonableexpectationthat a loan will be originaGd,comhitment
and standby fees are also
recognisedas interestincomeoverthe expectedterm of the-resultingloansusingtne erlJive interestmethod.
otherwise,such fees are recordedas oiher liabilitiesand amortisedinto
other operatingincomeover.the
commitmentor standbyperiod.
22
NOTES(continued)
2.10 Gash and cash equivalents
Cashand cash equivalentsincludenotesand coinson hand,balanceswith otherbanks,unrestrictedbalances

heldwiththe CentralBankof Liberiaand highlyliquidfinancialassetswith originalmaturitiesof lessthan three
months,which are subjectto insignificantrisk of changesin their values and are used by the Bank in the
managementof its shprt-termcommitments.
2.11 Propertyand equipment
Recognition and measurement
Itemsof propertyand equipmentare carriedat cost lessaccumulated depreciationand impairmentlosses.Cost

includesexpendituresthat are directlyattributableto the acquisitionof the asset.When parts of an item of
property and equipment have different useful lives, they are accountedfor as separpte items (major
components)of propertyand equipment.
Subsequenfcosfs
The costof replacingpa-rtof an itemof propertyand equipmentis recognisedin the carryingamountof the item
if it is probablethat the futureeconomicbenefitsembodiedwithinthe partwill flow to the Bankand its cost can
be measuredreliably.The costsof the dayto-dayservicingof propertyand equipmentare recognisedin profit
or lossas incurred.
Depreciation
Depreciationis recognisedin profitor losson a straight-linebasisover the estimatedusefullivesof each part

of an item of propertyand equipmentsincethis most closelyreflectsthe expectedpaftemof consumptionof
the future economic benefitsembodied in the asset. teasbd assets are depreciatedover the shortei of the
leaseterm and their usefullives.Depreciationbeginswhen an asset is availablefor use and ceasesat the
earlierof the datethat the assetis de-recognised
or classifiedas heldfor sale in accordancewith IFRS5 No*
current AssetsHeld for Saleand DiscontinuedOperations.
The estimatedusefullivesfor the currentand corresponding

periodsare as follows:
Leaseholdimprovement Leasedtermson a straight-line

basis
Motorvehicles 20%
Equipment andfurniture 20%
Depreciationmethods,usefullivesand residualvaluesare reassessedat each reportingdate and adjustedif
appropriate.Changesin the expecteduseful life are accountedfor by changingthe amortisationperiodor
methodology, as appropriate,and treatedas changesin accountingestimates.
De-recognition
An item of propertyand equipmentis derecognisedon disposalor when no future economicbenefitsare

expectedfrom its use or disposal.Any gain or loss arisingon de-recognition
of the asset (calculatedas the
differencebetweenthe net disposalproceedsand the carryingamountof the asset)is includedin profitor loss
in the yearthe assetis derecognised.
2.12 Intangibleassets
Softwareacquiredby the Bankis statedat cost lessaccumulatedamortisationand accumulatedimpairment

losses.Expenditureon internallydevelopedsoftwareis recognisedas an assetwhenthe Bankis ableto :
demonstrateits intentionand abilityto completethe developmentand usethe softwarein a mannerthat will
generatefutureeconomicbenefits,and can reliablymeasurethe coststo completethe development. The
capitalisedcostsof intemallydevelopedsoftwareincludeall costsdirectlyaftributableto developingthe
sofhvare,and are amortisedover its useful life. Internallydevelopedsoftwareis stated at capitaiise-dcost less
accumulatedamortisationand impairment.
23
NOTES(continued)
2.12 Intangibleassets (continued)
Subsequentexpenditureon softwareassetsis capitalizedonlywhen it increasesthe future

economicbenefits
embodiedin the specificassetto which it relates.All otherexienditureis expensed
as incurred.
Amortizationis recognisedin profitor losson a straight-linebasisover the estimated
usefullife not exceeding
five years,from the datethat it is availablefor use.The amortizationperiodand
the amortizationmethodfor an
intangibleassetwith a finiteusefullifeare reviewedat each reportingdate.Changes
in the expectedusefullife,
or the expectedpatternof consumptionof futurqeconomicbenefitsembodiedin the
asset,are accountedfor
by changingthe amortisationperiodor methodology,as appropriate,which are
then treatedas changesin
accountingestimates.
2.13 lmpairmentof non-financialassets
Thecarryingamountsof the Bank'snon-financial assetsand defered tax assetsare reviewedat eachreporting

dateto determinewhether.thereis any indicationof impairment.lf any such indication
exists,then the asset,s
recoverableamountis estimated.An impairmentloss'is recognisedir tre carrying
of an asset or its
cash-generating unit exceedsits recoverableamount.A cash-leneratingunit iitn6 smattest
"ilunt identifiableasset
groupthat generatescash.flows.that largelyare independentfrdm otherissets gioup.. lmpairmentlosses
are recognisedin profitor loss. lmpairmentlossesrecognisedin respectof cash-geieraiing
"no unitsare allocated
firstto reducethe carryingamountof any goodwillallocalted
to the unitsand thent6 reducethe carryingamount
of the otherassetsin the uniton a pro riti Oasis.
The recoverableamountof an asset-orcash-generating unit is the greaterof its value in use and its fair value
less costs to sell. In assessingvalue in use, the estimiteo future cash flows are
discountedto their present
value usinga pre-taxdiscountrate that reflectscurrentmarketassessments
of the time value or moneyanJ
the risksspecificto the asset.
lmpairmentlossesrecognisedin priorperiodsare assessedat each reporting

datefor any indicationsthat the
loss has decreasedor no longerexists.An impairmentloss is reversedif
ihere has been a change in the
estimatesusedto determinethe recoverable amount.An impairmentlossis reverseoonryto tne extentthatthe
asset's.carryingamount does not exceed the carryingamount that would have
been determined,net of
depreciationor amortization,
if no impairmentloss ha'dbien recognised.
2.14 Deposits
Depositsare initiallymeasuredat fair value,withfair valueplus transactioncosts,

and subsequenlymeasured
at theiramortisedcost usingthe effectiveinterestmethod.
2.15 Provisions
A provisionis recogniseg.i! a resultof a pastevent,the Bankhas a present

.". legalor constructiveobligation
that can be estimatedreliably, and it is probablethat an outflowof economicbenlRtswill be requiredto setle
the obligaticin.
Provisionsare determineooy oiscountingtheLxfcied futurecash flows
at a pretax rate that
reflectscurrentmarketassessmentsof the time value 6f money *h"r" appropriate,the risksspecificto
the liability. "nd,
A provisionfor restructuringis recognisedwhen.the Bank has approveda detailed

plan,and the restructuring and formal restructuring
eitherhascommencedor has beenannouncedpublicly.Futureoperatingcosts
not providedfor. are
A provisionfor onerousc9.ntl?ctsis recognisedwhen the expectedbenefitsto be

derivedby the Bank from
are lowerthanthe unavoidablecost of meetingits obligationsunderthe contract.
in" p.ui.ion is measured
at the presentvalue of the lower-ofthe expected.cost df terminatingthe contract
and the expectednet cost of
continuingwith the contract' Beforea prwision is established,the-Bankrecognises
any lmpairmentlosson
the assetsassociatedwith that contract.
24
NOTES(continued)
2.16 Employeebenefits
Short-term benefits
Shorttermemployeebenefitobligationsare measuredon an undiscounted

basisand expensedas the related
servicesare provided.-
A provisionis recognisedfor the amountexpectedto be paid under short term cash bonus or profitsharing
plansif the Bank has a presentlegaland constructiveobligationto pay this amountas a resultoi past service
providedby the employee,and the obligationcan be reliablyestimated.
Definedcontibution plans
The Bank pays contributionsto the NationalSocial Securityand WelfareCorporation(NASSCORP)on a

mandatorybasis.The Bank has no furtherpaymentobligationsonce the contributionshave been paid. The
contributionsare recognisedas employeebenefitexpensewhen they are due. Prepaidcontributionsare
recognisedas assetsto the extentthat a cash refundor a reductionin the futurepaymentsis avaibble.
Terminationbenefits
Terminationbenefitsare payablewhen employmentis terminatedby the Bank beforethe normalretirement
date, or wheneveran employeeacceptsvoluntaryredundancyin exchangefor these benefits.The Bank
recognisesterminationbenefitswhen it is demonstrablycommittedto either:terminatingthe employmentof
currentemployeesaccordingto a detailedformalplanwithoutpossibilityof withdrawal;or providingtermination
benefitsas a resultof an offer madeto encouragevoluntaryredundancy.Benefitsfallingdue morethantwelve
monthsafterthe balancesheetdateare discountedto presentvalue.
Provident fund
The Bankalso operatesa providentfund scheme(StaffInvestmentFundAccount- SIFA),which by its nature
is a definedcontributionschemeto which it contributes2% of employeesbasic salaryin additionto the2o/o
contributionmadeby the employeethemselves.The providentfund is administeredby the Trusteesto the fund
underthe rulesof the fund. Employeesreceivetheircontributedbenefitsplus a portionor all of Management's
contribution(basedon the lengthof time they staywith the Bank)when they leavethe servicesof the Bank.
2.17Sharecapitaland reserves
Ordinaryshares
Ordinarysharesare classifiedas'share capital'in equity.
Sharelssue cosfs
Incrementalcosts directly aftributableto the issue of an equity instrumentare deductedfrom the initial
measurementof the equityinstrument.
Dividendon the Bank'sordinary shares
Dividendson the Bank's ordinaryshares are recognisedin equity when approvedby the Bank's Boardof
Directors.
2.18Earningsper share
The Bank presentsbasic and dilutedearningsper share (EPS) data for its ordinaryshares.Basic EpS is
calculatedby dividingthe profitor lossattributableto ordinaryshareholders
of the Bankby the weightedaverage
numberof ordinarysharesoutstandingduringthe period.DilutedEPS is determinedby adjustingthe profit-or
lossaftributable to ordinaryshareholders and the weightedaveragenumberof ordinarysharesoutstandingfor
the effectsof all dilutivepotentialordinaryshares.
25
NOTES(continued)
2.19 Leases
The Bankleasedvariousoffices,branchesand otherpremisesundernon-cancellable The

leasearrangements.
leasetypicallyran for a periodof up to five yearswith an optionto renewthe leaseafterthat date.
Leasetermsare negotjatedon an individualbasisand containa wide rangeof differenttermsand conditions.

The leaseagreementsdo not imposeany covenantsotherthan the securityinterestsin the leasedassetsthat
are held by the lessor.Leasedassetsmay not be usedas securityfor borrowingpurposes.
liabilityat the dateat whichthe leasedasset
assetand a corresponding
Leasesare recognisedas a right-of-use
is availablefor use by the Bank.
Assetsand liabilitiesarisingfroma leaseare initiallymeasuredon a presentvaluebasis.Leaseliabilitiesinclude

the net presentvalueof the followingleasepayments:
. fixed payments(includingin-substancefixed payments),lessany leaseincentivesreceivable;
. variableleasepaymentthat are basedon a rate,initiallymeasuredas at the commencement date;
" amountsexpectedto be payableby the Bankunderresidualvalueguarantees;
. the exercisepriceof a purchaseoptionif the Bankis reasonablycertainto exercisethat option;and
. paymentsof penaltiesfor terminatingthe lease, if the lease term reflectsthe Bank exercisingthat
option.
Leasepaymentsto be madeunderreasonablycertainextensionoptionsare also includedin the measurement
of the liability.
The leasepaymentsare discountedusingthe interestrate implicitin the lease.lf that rate cannotbe r€daf
determined, which is generallythe casefor leasesin the Bank,the lessee'sincrementalbonowingrateis used,
beingthe ratethat the individuallesseewouldhaveto pay to borrowthe fundsnecessaryto obtainan assel d
similarvalue to the right-of-useasset in a similar economicenvironmentwith similarterms, securityand
conditions.To determinethe incrementalborrowingrate,the Bank:
. where possible,uses recentthird-partyfinancingreceivedby the individuallesseeas a startingpoint,
adjustedto reflectchangesin financingconditionssincethird partyfinancingwas received,and
. makesadjustmentsspecificto the lease,eg term,country,currencyand security.
Leasepaymentsare allocatedbetweenprincipaland financecost.The financecost is chargedto profftor loss
over the lease periodso as to producea constantperiodicrate of intereston the remainingbalanceof the
for eachperiod
liability
Right-of-useassetsare measuredat cost comprisingthe following:

. the amountof the initialmeasurementof leaseliability
. any leasepaymentsmadeat or beforethe commencement date lessany leaseincentivesreceived
. any initialdirectcosts,and
. restorationcosts.
Right-of-use assetsare generallydepreciatedoverthe shorterof the asset'susefullifeand the leaseterm on a

straight-linebasis. lf the Bank is reasonablycertainto exercisea purchaseoption,the right-of-useasset is
depreciatedoverthe underlyingasset'susefullife. Right-of-usebuildingsheld by the Bank underIFRS 16 are
not revalued.
Paymentsassociatedwith short-termleasesof equipmentand vehiclesand all leasesof low-valueassetsare

recognisedon a straightJinebasisas an expensein profitor loss.Short-termleasesare leaseswith a lease
term of 12 monthsor less.Low-valueassetscompriseresidentialpremisesfor management.
26
t Summary of significant accounting policies (continued)
2.19 Leases (continued)
The Bank's leasingactivitiesand how theseare accountedfor under IFRS 16 (continued)

l Extensionand terminationoptionsare includedin a numberof propertyand equipmentleasesacrossthe Bank.
These are used to maximiseoperationalflexibilityin terms of managingthe assets used in the Bank's
l operations.The majorityof extensionand terminationoptionsheldare exercisableonly by the Bankand not by

the respectivelessor.
l 3. FINANCIALRISKMANAGEMENT
3.1 Introduction
l The Bank's business involves taking on risk in a targeted manner and managingthe consequences
professionally.
The core functionsof the Bank's risk managementare to identifyall key risks for the Bank,
measurethese risks,managethe risk positionsand determinecapitalallocations.The Bank regularlyreviews
its riskmanagementpoliciesand systemsto reflectchangesin market,productsand bestmarketpractice.
t The Bank'saim is to achievean appropriatebalancebetweenrisk and returnand minimisepotentialadverse
effectson the Bank'sfinancialperformance.
The Bankd6finesriskas the possibililyof lossesor profitsforgone,
whichmay be causedby internalor externalfactors,
l ,
The Bankhas exposureto the followingformsof riskfrom its use of financialinstruments:
l .
.
o
Creditrisk
Liquidityrisk
Marketrisk
t This note presentsinformationaboutthe Bank'sexposureto each of the risks above,the Bank'sobjectives,

policiesand processesfor measuringand managingrisk,and the Bank'smanagementof capital.
3.2 Risk managementframework

I.
I The Board of Directorshas overall responsibilityfor the establishmentand oversightof the Bank's risk
managementframework.
t The Board of Directorsis responsiblefor articulatingthe risk managementpoliciesof the Bank to enable
informed decision making and approval, and establish/maintainan appropriateenvironmentfor risk
|r managementin the Bank.All UBA employeesinvolvedin the creationand managementof risk exposuresare
requiredto complyat alltimeswith the risk managementpolicies,and proceduresas approved.Complianceis
monitored on an on-goingbasisby the Bank'sInternalAudit Unit.
The Bank'srisk managementpoliciesare establishedto identifyand analysethe risksfacedby the Bank,to

I set appropriaterisk limitsand controls,and to monitorrisksand adherenceto marketconditions,productsand
servicesoffered.
t 3.3 Credit risk
Credit risk is the risk of financialloss to the Bank if a customeror counterpartyfails to meet its contractual
obligations, and arisesprincipallyfromthe Bank'sloansand advancesto customersand investmentsecurities.
t For risk managementreportingpurposes,the Bank considersand consolidatedall elementsof credit risk

exposures(suchas individualobligordefaultrisk,countryand sectorrisk).
t The Board of Directorshas delegatedresponsibilityfor the managementof credit risk to its Board Credit
Commifteeand ManagementCreditCommiftee.
t 27
t
NOTES(continued)
FINANCIALRISKMANAGEMENT
(continued)
3.3 Credit risk (continued)
3.3.1 Managementof credit risk
The BoardCreditcommitteeunderdelegatedauthorityis responsiblefor the following:
r facilitatingthe effqctivemanagementof creditrisk by the Bank;
' approvingcredit risk managementpolicies, underwritingguidelinesand standard proposals
recommendation on the
of the ManagementCreditCommittee;
' approvingdefinitionof riskand returnpreferencesand targetrisk portfolio;
approvingthe bank'screditratingmethodologyand ensureits properimplementation;
. approvingcreditappetiteand portfoliostrategy;
. approvinglendingdecisionsand limitsetting;
. approvingnew creditproductsand processes;
r
lPProvjngassignmentof credit approvalauthorityon the recommendation of the ManagementCredit
Committee:
' approvingcreditfacilityrequestsand proposalswithinlimitsdefinedby UBA Bankplc,s
creditauthorities;
. recommending creditfacilityrequestsabovestipulatedlimitto the board:
o reviewingcreditrisk reportson a periodicbasis:
. approvingcreditexceptionsin linewith Boardapproval;and
' makingrecommendations to the Boardon creditpolicyand strategywhere appropriate.
The ManagementCreditCommitteeis responsiblefor managingcreditrisksin
the Bank.The membersof the
committeeincludeall group headsand Headof credit Risk.ihL Committeeis
responsible
for the folowing:
o reviewingcredit Poricyrecommendations for Boardapprovar;
. approvingindividualcreditexposurein linewith its approvallimits;
. agreeingon portfolioplan/strategy
for the Bank;
o reviewingmonthlycreditrisk reportsand remedialactionplan;and
' coordinating
the Bank'sresponseto materialeventsthat may havean impacton the creditportfolio.
The Bank is requiredto implementcreditpoliciesand procedures,with credit
approvalauthoritiesdelegated
from the BoardCreditCommittee,
3.3.2 Allowance for credit losses
An allowancefor creditlosses("ACL")is establishedfor all financialassets,except
for financialassetsclassified
or designatedas FWPL and equitysecurities,yh-1ch notsubjectto impairment
to impairmentassessmentincludeloans,overdrafts,debtsecuritiesand accrued "rr"r.rent. Assetssubject
9re
interestreceivable.Theseare
carriedat amortisedcost and presentednet of ACL on the statementof financialporiti-n.
presentedin allowancefor creditlosses- loansand advances. ACL on loans is
ACL on debt securitiesmeasuredat FVoCI is
presentedin profitor losswith the corresponding entryto othercomprehensive income.
off-balancesheet items sub199tto impairmentassessmentincludefinancialguarantees
and undrawnloan
commitments'For all other off-balancesheetproductssubjectto impairment
assessment,AcL is separately
calculatedand includedin otherliabilitiesprovisions.
The CreditConversionFactor('ccF) is used to determinethe creditexposure
equivalentof the off balance
sheetexposureincludingthe openor undrawnlimits.The undrawn of the
fortion lirit thatwouldhave
been drawnat the time of defaultare convertedto exposureat deLuft (EAD,),"pprou"o
thiais i; to the other
off-balancesheetexposureslike bondsand guarantees,lettersof creditetc. "ooition
In determining the ccF, the Bankconsidersthe behavioralcash flows,collateraltype and the collateralvalue
securingthe facility,time to.discoverand preventfurtherdrawingduringthe
time di inct"as"o creditrisk,time
lag to convertthe collateralto cash,the recoverystrategyand cist are also
considered.ccF is appliedon the
off-balancesheetsexposuresto determinetne eRo anlinen subsequenfly the expectedcreditloss (*ECL').
28
NOTES(continued)
FINANCIALRISK MANAGEMENT(continued)
3.3 Gredit risk (continued)
3.3.2 Allowance for credit losses (continued)
TheACL is measuredat each reportingdateaccordingto a three-stageexpectedcreditlossimpairmentmodel

which is basedon changesin creditriskof financialassetssinceinitialrecognition.
Stagelfertorming fiiancial assef$; From initialrecognitionof a financialasset to the reportingdate,where
the asset has not experienceda significantincreasein credit risk relativeto its initial recognition,a loss
allowanceis recognisedequaltothe creditlossesexpectedto resultfromdefaultsoccurringoverthe 12 months
followingthe reportingdate.Interestincomeis calculatedon the grosscarryingamountof thesefinancialassets.
Stage2 (Underperformingfinancialassefs);Followinga significantincreasein credit risk relativeto the initial

recognitionof the financialasset,a loss allowanceis recognisedequalto the creditlossesexpectedover the
remaininglifetimeof the asset. Interestincomeis calculatedon the gross carryingamountof those financial
assets.
Sfage3 (lmpairedfinancialassefs);Whena financialassetis consideredto be credit-impaired,

a lossallowance
is recognisedequalto creditlossesexpectedover the remaininglifetimeof the asset.The Stage3 expected
creditloss impairmentmodelis basedon changesin credit'qualitysinceinitialrecognition.Interestrevenueis
calculatedbasedon the carryingamountof the asset,netof the lossallowance,ratherthanon its grosscarrying
amount.
The ACL is a discountedprobability-weighted

estimateof the cash shortfallsexpectedto resultfrom defaults
over the relevanttime horizon.For loan commitments,credit loss estimatesconsiderthe portion of the
commitmentthat is expectedto be drawnover the relevant'timeperiod.For financialguarantees,creditloss
estimatesare basedon the expectedpaymentsrequiredunderthe guaranteecontract.
Increasesor decreasesin the requiredACL attributableto purchasesand new originations, de-recognitions

or
maturities,and re-measurements due to changesin loss expectationsor,stage migrationsare recordedin
Provisionfor credit losses. Write-offsand recoveriesof amounts previouslywritten off are recordedagainst
ACL.
TheACL representsan unbiasedestimateof expectedcreditlosseson financialassetsas at the balancesheel
date. Judgmentis requiredin making assumptionsand estimationswhen calculatingthe ACL, including
movementsbetweenthe three stages and the applicationof forward looking information.The underlying
assumptionsand estimatesmay resultin changesto the provisionsfrom periodto periodthat significantly
affect
our resultsof operations
3.3.3 Measurementof expected credit losses
Expectedcreditlossesare basedon a rangeof possibleoutcomesand considerall availablereasonableand

supportableinformationincluding internal and external ratings, historical credit loss experience,and
expectationsaboutfuture cash flows.The measurementof expectedcredit lossesis based primarilyon the
productof the instrument'sprobabilityof default('PD'), loss given default('LGD') and exposureat default
('EAD') discountedto the reportingdate.Stage1 estimatesprojectPD, LGD and EADover a maximumperiod
of twelve months while Stage 2 estimatesproject PD, LGD and EAD over the remaininglifetimeof the
instrument.Expectedcreditlossesare discountedto the'reportingperioddate usingthe effectiveinterestrate.
PD is an estimateof the likelihoodof defaultovera giventime horizon,whichare calculatedba5edon statistical

models,and assessedusing ratingtools tailoredto the variouscategoriesof counterparties and exposures.
These statisticalmodelsare based on internallycompileddata comprisingboth quantitativeand qualitative
factors.Whereit is available,marketdata mayalso be usedto derivethe PD for largecorporatecounterparties.
lf a counterpartyor exposuremigratesbetweenratingclasses,then thiswill leadto a changein the estimateof
the associatedPD. PDs are estimatedconsideringthe contractualmaturitiesof exposuresand estimated
prepaymentrates.
29
NOTES(continued)
(continued)
3.3.3 Measurementof expectedcredit losses (continued)

LGD is the magnitudeof the likelyloss if thereis a default.The BankestimatesLGD parametersbasedon the
historyof recoveryratesof claimsagainstdefaultedcounterparties. The LGD modelsconsiderthe structure,
collateral,seniorityof the claim,counterpartyindustryand recoverycostsof any collateralthat is integralto the
financialasset. LGD estimatesare recalibratedfor differenteconomicscenariosand, for lending,to reflect
possiblechangesin the economies.They are calculatedon a discountedcash flow basis usingthe effective
interestrate as the discount.
EAD representsthe expectedexposurein the eventof a default.ifre gank derivesthe EAD from the current
exposureto the counterpartyand potentialchangesto the currentamountallowedunderthe contractincluding
amortisation.The EAD of a financialasset is its gross carryingamountat the time of default.For lending
commitments,the EAD includesthe amountdrawn,as well as_potentialfuture amountsthat may be drawn
underthe contract,which are estimatedbased on historicalobservationsand fonryard-lookingforecasts.For
financialguarantees,the EAD representsthe amountof the guaranteedexposurewhenthe financialguarantee
becomespayable.For somefinancialassets,EAD is determinedby modellingthe rangeof possibleexposure
outcomesat variouspointsin time usingscenarioand statisticaltechniques.
As describedabove,and subjectto usinga maximumof a twelvemonthPD for financialassetsfor whichcredit
risk has not significantly
increased,the BankmeasuresECL consideringthe riskof defaultoverthe maximum
contractualperiod(includingany borrower'sextensionoptions)overwhich it is exposedto creditrisk,even if,
for riskmanagementpurposes,the Bankconsidersa longerperiod.The maximumcontractualperiodextends
to the dateat whichthe Bankhasthe rightto requirerepaymentof an advanceor terminatea loancommitment
or guarantee.
However,for overdraftsand revolvingfacilitiesthat include both a loan and an undrawn commitrnent

component,the Bank measuresECL over a periodlongerthan the maximumcontractualperiodif the BanKs
contractualability to demand repaymentand cancel the undrawncommitmentdoes not limit the BanKs
exposureto credit lossesto the contractualnoticeperiod.Thesefacilitiesdo not havea fixed term or repayment
structureand are managedon a collectivebasis.The Bank can cancelthem with immediateeffect but thb
contractualrightis notenforcedin the normaldayto-daymanagement, butonlywhenthe Bankbecomesa$rare
of an increasein creditriskat the facilitylevet.This longerperiodis estimatedtakingintoaccguntthe creditrisk
managementactionsthat the Bankexpectsto take and that serveto mitigatefCL. Tneseincludea reduction
in limits,cancellationof the facilityand/orturningthe outstandingbalanceinto a loan with fixed repayment
terms.
\A/heremodellingof parametersare carriedout on a collectivebasis,the financialinstrumentsare groupedon

the basis of shared risk characteristics
that include instrumenttype, date of initial recognition,credit risk
gradings,industrycategorization,
collateraltype,remainingterm to maturityand pastdue information.
Significant increase in credit risk

The criteriafpr determiningwhether credit risk has increasedsignificantlyvary by portfolioand include
quantitativechangesin PDs,days past due informationand a rangeof qualitativefactors.
The credit risk of a particularexposureis deemedto have increasedsignificantlysince initialrecognitionif,
basedon the Bank'squantitativemodelling,the lifetimePD is determinedto have increasedby moie than a
predeterminedpercentage/range. Using its expertcreditjudgementand, where possible,relevanthistorical
experience,the Bankmay determinethat an exposurehas undergonea significantincreasein creditriskbased
on particularqualitative indicatorsthat it considersare indicativeof suchandwherethe effectmay nototherwise
be fully reflectedin its quantitativeanalysison a timelybasis.
The Bank considersthat a significantincreasein creditdsk occursno laterthan when an asset is more than
thirty(30)days past due. Days past due are determinedby countingthe numberof days since the earliest
elapseddue date in respectof which full paymenthas not been received.Due datesare determinedwithout
consideringany graceperiodthat mightbe availableto the borrower.
30
NOTES(continued)
3.3.3 Measurementof expected credit losses (continued)
Significant increase in credit risk (continued)
lf thereis evidencethat there is no longera significantincreasein creditrisk relativeto initialrecognition,
then
the loss allowanceon an instrumentreturnsto being measuredas twelve month ECL. SomS qualitative
indicatorsof an increasein creditrisk,such as delinquencyor forbearance,may be indicativeof an increased
riskof defaultthat persistsafterthe indicatoritselfhas cea-sedto exist.In these-cases, the Bankdeterminesa
probationperiodduringwhichthe financialassetis requiredto demonstrategood Oetravior provide
to evidence
that its creditriskhas declinedsufficiently.
Whencontractualterms of a loaniave beenmodified,evidencethat
the criteriafor recognisinglifetimeECLare no longermet includesa historyof up-to-datepaymentperformance
againstthe modifiedcontractualterms.
Generally,facilitieswith loss allowancesbeing measuredas.lifefime ECL not creditimpaired(Stage2)
are
mo-nitoredfor a probationaryperiodof ninety_(90) days to confirmif the creditrisk has decreasedslfficienily
beforethey can be migratedfrom LifetimeECL not creditimpaired(Stage2) to twelv- monthECL (Stage
1l
whilecredit-impaired facilities{S]age3) are monitoredfgr.a probationary-period of 180 days beforehig;tioi
from Stage3 to twelvemonthECL (Stage1). The decreasein riskof oeriun is a criticalinputtor 6e
stailng of
financialassets.
The Bankmonitorsthe effectiveness
of the criteriausedto identifusignificantincreasesin creditrisk by regular
reviewsto confirmthat:
o the criteriaare capableof identifyingsignificantincreasesin creditriskbeforean exposureis in defauft;
r the criteriado not alignwith the pointin time when an assetbecomesthirty(30)days pastdue;and
o there is no unwarrantedvolatilityin loss allowancefrom transfersbetweentwelve monthpD (stage 1)
and lifetimePD (Stage2).
Assessrnenf of significant increasein credit isk
The assessmentof significantincreasein credit risk requiressignificantjudgment.The Bank's process
to
assesschangesin creditrisk is basedon the use quantitativeand
[ualitativeinlicators.lnstrumentswhir:trare
morethan thirtydays past due may be credit-impaired.Thereis a rebuttablepresumptionthat the creditrisk
has..increasedsignificantlyif contractualpaymentsare more than thirty-dayspast du"; tf,i. presumptionb
appliedunlessthe Bankhas reasonableand supportableinformationOemonstraiing that the creditrisk has nd
increasedsignificantly
sinceinitialrecognition.
The assessmentis generallyperformedat the instrumentleveland it is performedat least on quarterly

basis.
lf any of the factorsaboveindicatethata significantincreasein creditriskhas occurred,the instrument
is moved
from.Stage 1 to Stage2. The assessmentlfor significantincreasesin creditrisk since initialrecognition
and
credit-impairment are performedindependently a[each reportingperiod.Assets can move in both directions
throughthe stagesof the impairmentmodel.After a financialasiet has migratedto Stage2, if
it is no longer
consideredthat credit risk has sig.nifrcantly
increasedrelativeto initialrec6gnitionin a iuosequentreporting
period,it will movebackto Stage1 afterninety(90) days.Similarly,an asselthat
is in Stageg witt mov'eoaci
to Stage2 if it is no longerconsideredto be credit-impaired afterninety(90)days.Rn asseiwill not moveback
from Stage3 to Stage1 untilaftera minimumof 180 days,if it is no tongerconiideredto
be creditimpaired.
For certaininstrumentswith low credit risk as at the reportingdate, it is presumedthat credit
risk has not
increasedsignificantlyrelativeto initialrecognition.Creditriskis consideredto be low if the instrument
has a
low riskof default,and the borrowerhas the abilityto fulfiltheircontractualobligationsboth in
the nearterm
and in the longerterm, includingperiodsof adversechangesin the economicor businessenvironment.
31
NOTES(continued)
Expected life
For instrumentsin Stage 2 or Stage 3, loss allowancesreflectexpectedcredit lossesover the expected

remaininglifetimeof the instruments.For most instruments,the expectedlife is limitedto the remaining
contractuallife.An exemptionis providedfor certaininstrumentswith the followingcharacteristics:
' the instrumentincludesbotha loanand undrawncommitmentcomponent;

' the Bankhas the contractualabilityto demandrepaymentand cancelthe undrawncommitment;and
' the Bank'sexposureto creditlossesis not limitedto the contractualnoticeperiod.
For productsin scopeof this exemption,the expectedlife may exceedthe remainingcontractuallifeand is the
periodover which exposureto creditlossesis not mitigatedby normalcredit risk managementactions.This
periodvaries by productand risk categoryand is estimatedbased on the historicalexperiencewith similar
exposuresand considerationof credit risk managemenlagtions taken as part of regularcreditreviewcycle.
Productsin scopeof this exemptionincludeoverdraftbalancesand certainrevolvinglinesof credit.Determining
the instrumentsin scope_forthis
exemptionand estimatingthe appropriateremaininglifebasedon our historical
experienceand creditrisk mitigationpracticesrequiressignificant
judgment.
Use of fonrard-looking information
The measurementof expectedcreditlossesfor eachstageand the assessmentof significantincreasein credit

risk considersinformationabout past eventsand currentconditionsas well as reasonableand supportable
projectionsof future events and economicconditions.The estimationand applicationof fonrvard-looking
informationrequiressignificantjudgment.
The PD, LGD and EAD inputsusedto estimateStage1 and Stage2 creditlossallowancesare modelledbased
on the macroeconomic variables(or changesin macroeconomic
variables)thatare mostcloselycorrelatedwith
creditlossesin the relevantportfolio.Eachmacroeconomicscenariousedin the expectedcreditlosscalculation
includesa projectionof all relevantmacroeconomicvariablesapplyingscenarioweights.Macroeconomic
variablesused in the expectedcreditloss modelsincludeGDP growthrate,foreignexchangerates,inflation
and rate.
The estimationof expectedcreditlossesin Stage1 and Stage2 are discountedprobability-weightedestimates

that considersa minimumof three future macroeconomicscenarios.The base case scenariois based on
macroeconomic forecastspublishedby relevantgovernmentagencies.Upsideand downsidescenariosvary
relativeto our base case scenariobased on reasonablypossiblealternativemacroeconomicconditions.
Additionalandmoreseveredownsidescenariosare designedto capturematerialnon-linear.ity of potentialcredit
lossesin portfolios.Scenariodesign,includingthe identification
of additionaldownsidescenarios,occursat
leaston an annualbasisand morefrequentlyif conditionswarrant.
Scenariosare designedto capturea wide range of possibleoutcomesand weightedaccordingto the best

estimateof the relativelikelihoodof the rangeof outcomesthat each scenariorepresents.Scenarioweights
take into accounthistoricalfrequency,currenttrends,and forwardlookingconditionsand are updatedon a
quarterlybasis.All scenariosconsideredare appliedto all portfoliossubjectto expectedcreditlosseswith the
sameprobabilities.
The assessmentof signfficantincreasesin creditrisk is basedon changesin probability-weighted

forward-
lookinglifetimePD as at the reportingdate and days pastdue, usingthe same macroeconomicscenariosas
the calculationof expectedcredit losses
32
NOTES(continued)
3. FINANCIALRISKMANAGEMENT
(continued)
Macroeconomicfabtors
The Bank relieson abroad rangeof forward-lookinginformationas economicinputs,such as: GDP groMh
rate, foreign exchangerates, inflationrate, and risk free-rate.The inputs and models used for calculating
expectedcredit lossesmay not always captureall characteristics of the marketat the date of the financial
statements.To reflectthis, qualitativeadjustmentsor overlaysmay be madeas temporaryadjustmentsusing
expertcreditjudgment.
The most significantperiodend assumptionsusedfor the ECL estimateas at 31 December2020 are set out
below:
Scenario Weight GDP Growth lnflation Exchangerate
Base Case 50% 8.24t% 9.5% 178.60

Upside 20% e.92t% 8.55% 160.74
Downside 30o/o (3.56)% 10.45o/o 196.46
ln 2020,weightingof any upside,downsideand base case economicscenarioshave been updatedto refecl
the adverseimpactof COVID-19on the economy,ascribingmoreweightto the downsidescenario.Econornic
variableforecastshave also been updatedin responseto COVID-19;with key indicatorsbeing adjustedto
reflectthe impactof COVID-19on the economy.
Sensitivityto macroeconomicfactors
The changesto the expectedcredit loss allowanceat 31 December2020 that would result from reasonably
possiblechangesin these parametersfrom the actualassumptionsused in the Bank'sassumptionsare set
out below.
At 31 December2020,an increase/decrease of 100 basis pointson the estimatedGDP growthrate would

in post-taxprofitof LRD66,827(2019:LRD 32,902).
haveresultedin a decrease/increase
At 31 December2020,an increase/decrease of 100 basispointson the estimatedinflationrate would have

in posttax profitof LRD 52,831(2019:
resuftedin a decrease/increase LRD 97,145).
At 31 December2020, an increase/decrease of 100 basis pointson the estimatedpolicy rate would have
in post-taxprofitof LRD 959,970(2019:LRD 647,346).
resultedin a decrease/increase
Definition of default
A defaultis consideredto have occurredwith regardto a particularobligorwhen eitheror all of the following
eventshavetakenplace.
o The Bankconsidersthat the obligoris unlikelyto pay its creditobligationsin full,withoutrecourseby the
Bankto actionssuch as realizingsecurity(if held).
o The obligor is past due more than 90 days on any materialcredit obligationto the Bank (principalor
interest).Overdraftswill be consideredas being past due once the customerhas breachedan advised
limitor beenadvisedof a limitsmallerthan currentoutstanding.
o Interestpaymentsequalto 90 days or more have been capitalised,rescheduled,rolledover into a Rew
loan(exceptwherefacilitieshavebeen reclassified).
33
NOTES(continued)
3. FINANCIALRISK MANAGEMENT(continued)
Definition of default (continued)
to pay include:
The elementsto be takenas indicationsof unlikeliness
- The Banksellsthe creditobligationat a materialcredit-relatedeconomicloss;
- The Bank consentsto a distressedrestructuring of the creditobligationwherethis is likelyto resultin a
diminishedfinancialobligationcausedby the materialforgiveness, or postponement, of principal,interest
or (whererelevant)fees; and
- The Bankhasfiledfor the obligor'sbankruptcyor a similarorderin respectof the obligor'screditobligation
to the Bank.
Credit-impairedfinancial assets (Stage3)
Financialassets are assessedfor credit-impairment at each balancesheet date and more frequentlywhen
circumstanceswarrantfurther assessment.Evidenceof credit-impairment may includeindicationsthat the
borrower is experiencing significant financial difficulty, probability of bankruptcy or other financial
reorganisation,
as well as a measurabledecreasein the estimatedfuturecashflowsevidencedby the adverse
changesin the paymentsstatusof the borroweror economicconditionsthat correlatewith defaults.
A loan is consideredfor transferfrom stage2 to stage 1 wherethere is significantimprovementin creditrisk
and from stage 3 to stage 2 (declassifie_d)where the facility is no longerin default. Factorsthat are consilered
in such backwardtransitioningincludethe following:i) Declassification of the exposureby all the lbensed
privatecreditbureauor the creditrisk managementsystem;ii) lmprovementof relevantcreditrisk drirrersfor
an individualobligor(or pool of obligors);iii) Evidenceof full repaymentof principalor interest.
When a financialasset has been identifiedas credit-impaired, expectedcredit lossesare measuredas the
differencebetweenthe asset'sgross carryingamountand the presentvalue of estimatedfuture cash flona,
discountedat the instrument'soriginaleffectiveinterestrate. For impairedfinancialassetswith drarrn and
undrawncomponents,expectedcredit losses also reflect any credit losses related to the portion of the loan
commitmentthat is expectedto be drawndown overthe remaininglife of the instrument.
\Nhena financialassetis credit-impaired, interestceasesto be recognisedon the regularaccrualbasis,which

accruesincomebased on the gross carryingamountof the asset. Rather,interes[incomeis calculatedby
applyingthe originaleffectiveinterestrateto the amortisedcostof the asset,whichis the grosscarryingamount
less the relatedACL. Followingimpairment,interestincomeis recognisedon the unwindingof the discount
fromthe initialrecognitionof impairment.
34
NOTES(continued)
(All amountsare in thousandsof LiberiandollarsunlessotherwisesJated) ' ..

:
Write-off of loans
Loans and the relatedACL are written-off,either partiallyor in full, when there is no realisticprospectof
recovery. \A/hereloans are secured, they are gengrally wr:itten-offafter receipt of any proceed from the
realizationof collateral.In circumstances
wherethe net realizablevafueof any collateralhas beendetermined
and there is no reasonableexpectationof furtherrecovery,write-offsmay occur earlier.Written-offloansare
derecognisedfrom the Bank's books.However,the Bank continuesenforcementactivitieson all written-off
loansuntilfull recoveryis achievedor suchtimewhen it is objectivelyevidentthat recoveryis no longerfeasible.
3.3.4 Credit risk exposures

The maximumexposureto creditrisk beforecollateralheld and othercreditenhancementsin respectof loans
and advancesto customersare:
(i) Credit risk exposures relating to On-Balance Sheef
Creditriskexposuresrelatingto on-balancesheetassetsare as follows: :
MaximumExposure 2020 2019

Classification
Cashand bank balances:
- Balanceswith the CentralBankof Liberia 3,6/,5,472 3,s25,938
- Balancesheldwith otherbanks 6,975,659 4,313,218
Investmentsecuritiesat amortisedcost 5,365,863 4,493,743
Loansand advancesto customers 4,913,101 5,040,697
Otherassets(Lessprepayments) 2,629,451 1.737.128
Totaf 29,429.545 19.110.724
(ii) Credit risk exposures relating to Off-Balance Sheef
Creditrisk exposuresrelatingto off-balancesheetitemsare as follows:
Maximum exposure 2020 2019

Financialguarantees 250,169 1,528,493
Lettersof credit 1,081,988
250169 2,610,481
35
NOTES(continued)
(Allamountsare in thousandsof Liberiandollarsunlessotherwisestated).
(continued)
3.3.4 Credit risk exposures (continued)
The creditqualityof financialassetis managedby the Bankusinginternalcreditratings.The Bank'scredit
exposureswere categorisedunderIFRSI as follows:
' Stage1 - At initialrecognitionand no significantincreasein creditriskafter initialrecognition
. Stage2 - Significantincreasein creditrisksinceinitialrecognition
. Stage3 - Creditimpaired
The tablesbelowshowthe creditqualityby classof financialassetssubjectto impairmentand the allowance
for impairmentlossesheld by the Bankagainstthoseassets
2020 Stage I Stage 2 Stage 3 Total

Bankbalances 10,621,130 10,621,130
Loansand advancesto customers 2,802,526 851,626 1,158,949 4,913,1O1
Investmentsecurities 5,291,648 74,215 5,365,863
Otherassets(lessprepayments) 2.571.054 J 58.397 2.629.451
Gross balances 21,286,359 851,626 1,291,561 23,429,ils
Expectedcreditloss provision /178,652\ (97.324\ (375.976)
Carryingamount 21.107.706 851.626 1.094.237 23.053.569
2019 Stage1 Stage2 Stage 3 Tel

Bankbalances 7,839,156 - 7,839,156
Loansand advancesto customers 4,753,688 287,009 5,040,697
Investmentsecurities 4,493,743 - 4,493,743
Otherassets(lessprepayments) 1.737.128 1.737.128
Gross balances 18,823,715 287,OOg 19,110,724
Expectedcreditlossprovision n27.569\ (36,160) (63.729\
Carryingamount 18,696,146 250.849 18.946,995

Country analysis
The followingnote incorporates
the Banks'creditrisk exposuresper geographicalconcentrations
of assets
(i) Credit risk exposures relating to On-Balance Sheef
December31,2020 In Liberia Outside Liberia Total

Assets
Cashand bank balances 3,682,498 6.938.632 10,621,130
Loansand advancesto customers 4,813,101 - 4,913,101
Investmentsecurities 5,36s,863 - 5,365,963
Otherassets(lessprepayments) 2.629.451 - 2.629.451
Gross balances 16,490,913 6.938.632 23,429,545
16,1',|4,937 6,938,632 23.053.569
36
NOTES(continued)
(All amountsare in thousandsof Liberiandollarsunlessotherwisestated)
3. FINANCIALRISKMANAGEMENT
(continued)
3.3.4 Credit risk exposures (continued)
Countryanalysis(continued)
(i) Credit risk exposqres relating to On-BalanceSheet (continued)
December31.2019 In Liberia OutsideLiberia Total

Assets
Cashandbankbalances 3,52_5,,938 4,313,218 7,839,156
Loansandadvances to customers 5,040,697 5,040,697
Investment
securities 4,493,743 4,493,743
Otherassets 1,737,128 1,737J28
Grossbalances 14,797,506 4,313,218_ 19,110,724
Expectedcreditlossprovision (163,729\ n63.729)
14,633,777 4,313.218 18.946.995
(ii) Credit riskexposures relating to Off-BalanceSheet
Creditrisk exposurerelatingto off-balancesheetitemsare as follows:
At December31 2020 Liberia Outside Africa To'tal
Financialguarantees 250,169 - 25{l.169
At December31 2019 Liberia OutsideAfrica Tdd
Financialguarantees 1.528.493 1,528,493

Lettersof credit 1,081.988 1.081.988
2.610.481 2.610.481
3.3.5 Loans and advancesto customers
Loansand advancesare summarisedas follows:
Analysis per loan type 2020 2019

Loans g,i4O,M6 2,504,155
Overdrafts 1.622.655 2,536,542
Gross loans and advances 4,919,101 5,040,697
4,575,157 4,976,969
37
NOTES(continued)
(continued)
3.3.5Loans and advances (continued)
Additionaldisclosuresof loansand advancesas per the central Bank of Liberiaprudentialregulations

are as
follows:
Gross loans and advances to customers:
Analysis by: 2020 2019
TYPE
Term loans 2,184,253 2,504,155
Overdrafts 1,469,ggg 2,235,802
Pastdue loans 1,158,949 300.740
TotalGross Loans
697
RISKGRADE
Current 2,802,526 4,739,957
OLEM 851,627
Substandard 14,565 2U.516
Doubtful 682,951 23,624
Loss 46'l 1
TotalGross Loans 4,g13,101 5,0140,697
CUSTOMER
Individual 662,769 928,55
PrivateCorporation& Business 2,905,310 4,418
Centraland otherlevelof Government 1,245,023 4,063,6g3
TotalGross Loans
SECTOR
Agriculture,Fishery& Forestry 155,096 178,635
Construction 14,911 16,905
Communication 775,54 992,751
Transportation 2,053 3,390
Oil&Gas 855,246 1,007,326
GovernmeniofLiberia 1,265,955 625,746
Others 1,744,496 15
TotalGross Loans 13.101 697
38
NOTES(continued)
of LiberiandollarsunlessotherwiseStated)
(Allamountsare in t'housands
3.4 Liquidity risk

its financial
Liquidityrisk is the riskthat the Bankwill encounterdifficultyin meetingobligationsassociatedwith
settledby deliveringcashor otherfinancialassets'
tiaUitities
Managementof liquiditY risk

sufficient
The Bank'sapproachto managingliquidityriskis to.ensure,as far as possible,that it will alwayshave
normal and stressed conditions, without incurring
liquidityto miet its tiabilitieJwfren oub, under both
to the Bank's reputation. Management Center (cMc) receives
unacceptablelosses or risk damage _Cash
from the various branchLs regardingthe liquidity profileof their assets
financial and and
liabilities
information
CMC then maintains a portfolioof
detailsof otherprojectedcashftowsarisiig rrori proleitediuture business.
liquid investment securities,loans and advances to
short-termliquid assets,largelymade up of short-term
to ensure that sufficientliquidityis maintained within the bank as a whole-
banksand otherinter-bankfacilities,
variety of
The daily liquiditypositionis monitoredand regularliquiditystress testing is conductedunder a
policies and procedures are
scenarioi coverihg both normal and severe market conditions.All liquidity
by ALCO.The Bank relies on deposits from customers and other Banks, as
subjectedto revieri
"nd "pprou"l
its primarysourcesof funding.
Exposureto liquiditY risk

from
The key measureused by the Bankfor managingliquidityrisk is the ratioof net liquidassetsto deposits
as includingcash and cash equivalentsincluding
customers.For this purpose,liquidassetsar6 c6nsidered
percentage
investmentsecuritiesfor whichthere is an activeand liquidmarket. Detailsof the reportedBank
period were 'ls
of net liquidassetsto depositsfrom customersat the reportingdate and duringthe reporting
follows:
2020 20'19
% %
At December31 65 83
Averagefor the Period 75 87
Maximumfor the Period 88 95
Minimumfor the period 72 79
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(continued)
3.5 Market risk
Marketrisk is the risk that changesin marketprices,such as interestrates,equityprices,foreignexchange

ratesand creditspreads(not relatingto changesin the obligor's/issuer'screditstanding)will affectthe bank's
incomeor the value of fts holdingsof financialinstruments.The objectiveof market risk managementis to
manageand controlmarketriskexposureswithinacceptableparameters,whileoptimisingthe returnon risk.
Managementof market risk
The Bankseparatesits exposureto marketrisk betweentradingand non-tradingportfolios.Tradingportfolios

are mainlyheld by the TreasuryUnit,and includepositionsarisingfrom marketmakingand proprietaryposition
taking,togetherwith financialassetsand liabilitiesthat are managedon a fair value basis.Accordingly,the
foreignexchangepositionis treatedas partof the Bank'stradingportfoliosfor risk managementpurposes.
The Banktakeson exposureto marketrisks,whichis the riskthatthe fairvalueor futurecashflowsof a f inancial

instrumentwill fluctuatebecauseof changesin marketprices.Marketrisksarisefrom openpositionsin interest
rate,currencyand equityproducts,all of which are exposdd'togeneraland specificmarketmovementsand
changesin the levelofvolatilityof marketratesor pricessuchas interestrates,creditspreads,foreignexchange
ratesand equityprices.
for managementof marketrisk restswiththe Assetsand LiaUitityCommiftee(ALCO).The

Overallresponsibility
risk departmentis responsiblefor the developmentof detailedmarketrisk managementpolicies(sut{ec{to
review and approvalby ALCO) and for the day to day implementationof those policies.The Board Sub-
Committeeon Risk Managementhas oversightresponsibility for marketrisk management.
Interest rate risk
Cashflow interestrate risk is the riskthat the futurecashflowsof a financialinstrumentwill fluctuatebecause

of changesin marketinterestrates.Fairvalueinterestrateriskis the riskthatthe valueof a financialinstrument
will fluctuatebecauseof changes in market interestrates. The Bank takes on exposureto the effectsof
fluctuationsin the prevailinglevelsof marketinterestrateson both its fair value and cash flow risks.Interest
marginsmay increaseas a result of such changes but may reduce losses in the event that unexpected
movementsarise.The Boardsets limitson the levelof mismatchof interestraterepricingand valueat riskthat
may be undertaken,which is monitoreddailyby the Bank'sTreasury.
Interestrates on advancesto customersand other risk assetsare basedon the individualrisk profileof the
customer,takingintoaccountthe Bank'scost of fund.
The Asset and LiabilityCommitteecloselymonitorsthe interestrate trendsto minimisethe potentialadverse

impactof interestratechanges.
42
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NOTES(continued)
(All amountsare in thousandsof LiberiandollarsunlessotherwisesJated)
(continued)
3.6 Operationalrisks
Operationalriskis the riskof director indirectlossarisingfroma widevarietyof causesassociatedwiththe Bank's
processes,personnel,technologyand infrastructure, and from externalfactorsother than credit,market and
iiquidityriskssuch as thgsearising from legal and requirements
regulatory and generallyacceptedstandardsof
corporatebehavior.
The Bank'sobjectiveis to manageoperationalriskso as to balancethe avoidanceof financiallossesand damage
and to avoidcontrolproceduresthat restrictinitiativeand
to the Bank'sreputationwith overallcost effectiveness
creativity.
for the developmentand implementation
The primaryresponsibility of controlsto addressoperationalrisk is
assignedto seniormanagementwithinthe Bank. This responsibility is supportedby the developmentof overall
areas:
Bankstandardsfor the managementof operationalrisk in the,following
. requirements of transactions;
for appropriatesegregationof duties,includingthe independentauthorisation
requirements and monitoringof transactions;
for the reconciliation
. compliancewith regulatoryand otherlegalrequiremerds; and
. documentation of controlsand procedures;
o requirementsfor the periodicassessmentof operationalrisks faced, and the adequacyof controlsand
proceduresto addressthe risk identified;
. requirementsfor the reportingof operationallossesand proposedremedialaction;
r developmentof contingencyplans;
o trainingandprofessionaldevelopment;
r ethicalandbusinessstandards; and
r risk mitigation,includinginsurancewherethis is effective.
Compliancewith Bankstandardsis supportedby a programof periodicreviewsundertakenby intemalaudit.The

resultsof the internalauditreviewsare discussedwith the managementof the Bank.
3.7 Capital management
Regulatorycapitat
The Bank'sRegulator,CentralBankof Liberiasets and monitorscapitalrequirements for the Bankas a whole.

In implementing CBL requiresthe
currentcapitalrequirements, Bank to maintain a prescribedratioof totalcapital
to total assets.
risk-weighted The Bank'sregulatory
capitalis analysed intotwo tiers
. Tier 1 capital, which includesordinaryshare capital,share premium,retainedearnings,statutoryreserves
and otherdistributable and legalreserve.
. Tier 2 capital, includesthe fair value reserverelatingto unrealizedgainson equityinstrumentsclassifiedas

available-for-sale.
Bankingoperationsare categorizedas either trading book or Bankingbook, and risk-weightedassets are

that seek to reflectthe varyinglevelsof risk attachedto assets
determinedaccordingto specifiedrequirements
and sheet
off-balance exposures.
The Bank'spolicyis to maintaina strongcapitalbaseso as to maintaininvestor,creditorand marketconfidence
and sustainfuturedevelopmentof the business.The impactof the levelof capitalon shareholders'returnis also
recognised.The Bank recognisesthe need to maintaina balancebetweenthe higher returnsthat might be
possiblewith greatergearingand the advantagesand securityaffordedby a soundcapitalposition.
45
NOTES(continued)
(Allamountsare in thousandsof Liberiandollarsunlessotherwise.stated)
(continued)
3.7 Gapitalmanagement(continued)
Capitaladequacyratio
The capital adequacy ratio is the quotient of the capital base of the Bank and the Bank,s
risk weightedasset base. ln accordancewith section15 of the New FinancialInstitutionsAct (FlA) 1999,the
Bankmustmaintaina minimumratioof 10%.
At December31 2020
ASSETS Weight AMOUNT VALUE
Cash 0% 7,383,509
Due from CBL Oo/o 3,645,472
PerformingGOL securities 0o/o 5,286,228
Fullysecuredclaims 0%
Eligibleclaimson public 0%
Eligibleclaimson banks 50o/o
Eligibleclaimson banks 10oo/o
Retailexposures 75o/o 2,098,512 1,573,884
Eligibleclaimson corporates 1O0o/o 1,382,524 1,382,524
Eligiblepast due exposure 100o/o 1,094,121 1,094,121
Otherexposures 100o/o 2,594,119 2,59/+,119
Fixedassets 100o/o 357,126 357.126
Off balancesheet exposures

Performancebonds,bid bondsand warranties 50o/o 250,169 125,085
20o/o
Core capital
Sharecapital 1,128,769
Statutoryreserves 312,602
Retainedearnings 734,178
Otherdistributable
and 724.424
Totalcore
Deductionsfrom Tier One (1) Capitat:

Intangibleassets (478)
Total qualifying Tier one (t) Gapital 2,899,495
Total Tier Two (2) Capital
Total Tier I + 5
CAPITALADEQUACYRANO 40.69%
46
NOTES(continued)
(continued)
3.7 Capital management(continued)

Capital adequacy ratio (continued)
At December31 2019
ASSETS Weight AMOUNT VALUE
Cash ' 0 % 5,133,438
Duefrom CBL Ao/o 3,525,937
PerformingGOL securities 0% 4,493,743
Fullysecuredclaims 0%
Eligibleclaimson pubtic 0e/o
Eligibleclaimson banks 50%
Eligibleclaimson banks 100Yo.
Retailexposures 75% 654,675 491,006
Eligibleclaimson corporates 1oo% 3,971,444 3,971,444
Eligiblepastdue exposure 100% 250,849 250,849
Otherexposures 100o/o 1,892,658 1,892,658
Fixedassets 100% 234.099 2v
20.1
Off balancesheet exposures
Performancebonds,bid bondsand warranties 1.528.493 7U,247
1.081.988 216.398
Core capital
Sharecapital 1,128,769
Statutoryreserves 184,936
Retainedearnings
351,8
10
Other 724
Totalcore
Deductionsfrom Tier One (1) Capitat:

Intangibleassets (2,275)
Total qualifoingTier one (i) Capital 2,529,334
Total Tier Two (2) Capital
CAPITALADEQUACYRATIO 32%
47
NOTES(continued)
(continued)
3.7 Capitalmanagement(continued)
Capital adequacyratio(continued)
Althoughmaximisation oi the returnon risk-adjusted capitalis the principalbasisused in determininghow capital

is allocatedwithinthe Bankto particularoperationsor activities,it is not the sole basisusedfor decisionmaking.
Accountalso is taken of synergieswith otheroperationsand activities,the availabilityof managementand other
resources,and the fit of the activitywith the Bank'slongerterm strategicobjectives.The Bank'spoliciesin respect
of capitalmanagementand allocationare reviewedregularlyby the Boardof Directors.
3.10 Fairvalues of financialinstruments

The fair valuesof financialassetsand financialliabilitiesthatraretraded in activemarketsare'basedon quoted
marketpricesor dealerpricequotations.For all otherfinancialinstruments, the Bankdeterminesfair valuesusing
othervaluationtechniques.
For financialinstrumentsthat tradeinfrequentlyand have littlepricetransparency,
fair valueis lessobjective,and
requiresvaryingdegreesof judgmentdependingon liquidity,concentration, uncertaintyof marketfaciors,piicing
assumptionsand otherrisksaffectingthe specificinstrument.
(a) Valuationmodels
The Bankmeasuresfair valuesusingthe followingfair valuehierarchy,whichreflectsthe significanceof the inputs

usedin makingthe measurements.
Level1: inputsthat are quotedmarketprices(unadjusted)in activemarketsfor identicalinstruments.

Level2: inputsother than quotedpricesincludedwithin Level 1 that ard observableeitherdirecly (i.e. as
prices)or indirectly(i.e.derivedfrom prices).This categoryincludesinstruments
valuedusing:quotedmarket
pricesin activemarketsfor similarinstruments;quotedpricesfor identicalor similarinstrumentsin markets
that are consideredless than active;or othervaluationtechniquesin which all significantinputsare direcly
or indirectlyobservablefrom marketdata.
Level3: inputsthat are unobservable.Thiscategoryincludesall instruments
forwhichthe valuationtechnique
includesinputsnot basedon observabledata and the unobservableinputshave a significanteffecton ihe
instrument'svaluation.This categoryincludesinstrumentsthat are valuedbasedon qu-oteOpricesfor similar
instrumentsforwhichsignificantunobservable adjustmentsor assumptionsare requiredto reflectdifferences
betweenthe instruments.
Valuationtechniquesinclude net present value and discountedcash flow models, comparisonwith similar
instrumentsfor whichmarketobservablepricesexistand othervaluationmodels.Assumptionsand inputsused in
valuationtechniquesincluderisk free and benchmarkinterestrates,creditspr:eadsand other premiumused in
estimatingdiscountratesand foreigncurrencyexchangeratesand expectedpricevolatilitiesand correlations.
The objectiveof valuationtechniquesis to arriveat a fair valuemeasurementthat reflectsthe pricethat wouldbe

receivedto sell the assetor paid to transferthe liabilityin an orderlytransactionbetweenmarketparticipantsat
the measurementdate. The Bank uses widely recognisedvaluationmodelsfor determiningthe fair value of
commonand moresimplefinancialinstruments, suchas interestrateand currencyswapsthat use onlyobservable
marketdataand requirelittlemanagement judgmentand estimation.
Availabilityof observablemarket prices and model inputs reducesthe need for managementjudgment and
estimationand also reducesthe uncertaintyassociatedwith determiningfair values.nviitaOilty of 6bservable
marketpricesand inputsvariesdependingon the productsand marketsand is proneto changesbised on specific
eventsand generalconditionsin the financialmarkets,
48
NOTES(continued)
(All amountsare in thousandsof Liberiandollarsunlessothenrvise
stated)
(continued)
3.8 Fair values of financialinstruments(continued)
(b) Financial instruments measuredat fair value - fair value hierarchy
At the reportingdate,therdwere no financialassetsmeasuredat fair value.
(c) Financial instruments not measuredat fair value
The tablebelowsets out the fair valuesof financialinstrumentsnot measuredat fair valueand analysesthem by
the levelin the fair value hierarchyintowhicheachfair value measurementis categorised.
Note
Level 2 Level3 Level 2 Level 3
2020 2020 2019 2019
Assets
Cashand cashequivalents 14 11,028,981 8,659,375
Loansand advancesto customers 15 4,247,976 4,600,913
Investmentsecurities 16 4,987,008 4,239,380
Otherassets 17 2,574,824 - 1,890,383 :
22,838,789 . 19,390,051
Liabilities
Depositsfrom customers 21 20,278,800 - 16,167,121
Otherliabilities 22 290,717 -' 1,194,816
Critical accounting estimatesand judgments
The Bank makesestimatesand assumptionsthat affectthe reportedamountsof assetsand liabilitieswithin

the
next financialyear. Estimatesand judgementsare evaluatedon a continuousbaSis,and are based on past
experienceand other-factors, includingexpectationswith regard to future events. Accountingpoliciesand
directors'judgementsfor certainitemsare especiallycriticalfoitne Bank'sresultsand financialsituationdue to
their materiality.
(i) Expectedcredit loss measurement
The measurementof the expectedcreditlossallowancefor financialassetsmeasuredat amortisedcost

and Fair
valuethroughOtherComprehensiveIncomeis an area that requiresthe use of complexmodelsand
significant
assumptionsaboutfuture economicconditionsand credit behaviour(e.g.the likelihoodof customersJEf"rfti"g
and the resultinglosses).
A numberof significantjudgementsare also requiredin applyingthe accountingrequirements

for measuringECL,
suchas:
Determiningcriteriafor significantincreasein creditrisk;
chooglngappropriatemodelsand assumptionsfor the measurementof ECL;
Establishing the numberand relativeweightingsof forward-lookingscenariosand the associatedECL.
Referto Note3.3.2for furtherdetailson theseestimatesandjudgments.
49
NOTES(continued)
(Al1amountsare in thousandsof Liberiandollarsunlessotherwisestated)
4. Gritical accounting estimatesand judgments (continued)
(ii) Hold to collect financial assets
The Bankclassifiessome non-derivative financialassetswith fixed or determinablepaymentsand fixed maturity

as holdto collect.Thisclassification judgement.In makingthisjudgement,
requiressignificant the Bankusesthe
Businessmodel and Solelyfor Paymentof Principaland Interest(SPPI)modelto assessthat the purposefor
holdingtheseassetswas to collectthe contractualcashflowsassociatedwith the assets. lf the Bankwere to fail
to keep these investmentsto maturityother than for the specific circumstances- for example,selling an
amountcloseto maturity- the Bankis requiredto reclass$ the entirecategoryas holdto collectand
insignificant
sell.Accordingly,the investmentswouldbe measuredat fair valueinsteadof amortisedcost.
(iii) Incometax
The Bank is subjectto incometaxes.Significantestimatesare re(uired in determiningthe provisionfor income

taxes.There are many transactionsand calculationsfor which the ultimatetax determinationis uncertain.The
Bank recognisesliabilitiesfor anticipatedtax audit issuesbasedon estimatesof whetheradditionaltaxeswill be
due.Wherethe finaltax outcomeof these mattersis differentfrom the amountsthat were initiallyrecorded,such
differenceswill impactthe currenttax and deferredtax provisions.
(iv) Leaseterm
In determiningthe lease term, managementconsidersall facts and circumstancesthat create an economic

incentiveto exercisean extensionoption,or not exercisea terminationoption.Extensionoptions(or periodsafter
terminationoptions)are only includedin the leaseterm if the leaseis reasonablycertainto be extended(or not
terminated).generatingunits, remaininguseful lives of assets,projectedcash flows and net realizablevalues.
Management's judgmentis also requiredwhenassessingwhethera previouslyrecognisedimpairmentlossshould
be reversed.
The followingfactorsare normallythe most relevant:

. lf thereare significantpenaltiesto terminate(or not extend),the Bankis typicallyreasonablycertainto extend
(or notterminate).
. lf any leaseholdimprovementsare expectedto have a significantremainingvalue, the Bank is typicalty
reasonablycertainto extend(or not terminate).
Otherwise,the Bank considersother factors includinghistoricallease durationsand the costs and business
disruptionrequiredto replacethe leasedasset.
The leaseterm is reassessedif an optionis actuallyexercised(or not exercised)or the Bankbecomesobligedto

exercise(or not exercise)it. The assessmentof reasonablecertaintyis only revisedif a significantevent or a
significantchange in circumstancesoccurs,which affectsthis assessment,and that is within the controlof the
lessee.
50
NOTES(continued)
(All amountsare in thousandsof Liberiandollarsunlessotherwise.stated)
2020 2019
Interest income
Cashand bank balances 394,010 249,329

Loansand advancest0 customers 496,570 369,607
lnvestmentsecurities 648,697 275,940
1,539,277 894,876
Interestexpense
Depositsfrom customers 210,953 150,972
lntereston leaseliabilities 13.373 1.814
224,326 152,786
Net interestincome 1,314,951 742.090
Feeand commissionincome
Tradefinanceand otherfees 45,655 46,078
Accountservicefees 68,372 56,606
Loan relatedfees 878,929 825,581
992,956 928.265
Net trading (expense/income
Foreignexchanqe(loss)/gain (5,749) 18,403
Otheroperatingincome
Miscellaneous
income 200 62,353
lmpairmentchargeon financialassets
Loansand advancesto customers 74,215 91,359
Otherassets. 58,397
Off-balancesheetexposures 11,016
lnvestmentsecurities 79,635
223,263 91,359
Personnelexpenses
Basicsalaries 454,112 416,550
Pensionscheme 34,608 29,561
Allowances 54,424 42,888
Stafftraining 621 173
543,765 489,172
51
NOTES(continued)
(All amountsare in thousandsof Liberiandollarsunlessothenrvise
staled)
2020 2019
11. Depreciationand amortisation
Propertyand equipment(Note18)
67.861 76,365
Intangibleassets(Note19)
2,275 4.096
Right-of-useassets(Note2Ot 22,2g4 30,161
12. Other operating expenses
Repairand maintenance
30,932 68,969
Audit fees 11,979 7,435
Legaland professionalexpenses
5,291 6,668
Licenses,subscriptionand registration 22,723 11,957
Linkexpensesand computerexpenses
60,962 56,529
Travelcosts 10,579 29,918
Stationeryand publication 8,979 13,197
Businesspromotion,advertisingand marketing 15,005 18,334
Fuel,gas and water 11,037 10,148
Directors'expenses
32,259 29,227
Insurance 29,023 24,943
Bankcharges 39,960 2,230
Expensesrelatingto shortterm leases 19,125 35,801
Others
132
,|3. Income taxes
lncome tax expense

Currentincometax charge 161,877 90,375
Deferredincometax credit
fn finewith the LiberiaRevenueCode2000 (as amended),tax is assessedat the higher

of 2% of revenuesand
25%oof taxableprofit.The tax on the Bank'sprofit beforeincometai differsfrom the-theoretical
amountthat would
arise usingthe statutoryincometax rateas follows:
Reconciliation of effective tax rate
2019
Profit before incometax
636,737 344.480
Tax calcufatedat the statutoryincometax rateof 2so/o(201g:2s%)
159,184 86,120
Tax effects of: i '
Incomenot subjectto tax (30,813)
52
NOTES(continued)
{3. Incometaxes (continued)
Cunent income tax
Year of assessment At January 1 Chargefor the Paymentsduring At December31

year the year
Up to 2019 91,626 91,626
2020 - 161,877 (e3,365) 68,512
Balanceat 31 December 91,626 161,877 (93,365) 160,138
Up to 2018 29,574 29,574

2019 90,37; ew2;\ 62,052
Balanceat 31 December 29.574 90,375 Q8.323\ 91.626
Defened income tax
2020 2019
Balanceat January1 16,987 21,796

to profitor loss
Credited (35,804) (4,80e)
Balanceat 31 December {18.817) 16.987
Deferredtax assetsand liabilitiesare attributable

to the following:
At At
Year ended December31,2020 Charge/(credit)
January
1 December31
Acceleratedcapitalallowance 16,987 (26,035) (9,048)

Unrealisedexchangelosses 1,437 1,437
Leases (11,206) (11,206)
16,987 (35,804) (18,817)
Year endedDecember31.2019
At At
Charge/(credit)
1 January December
31
Acceleratedcapitalallowance 21,796 (4,809) 16,987
53
NOTES(continued)
2020 2019
14. Cash and bank balances
Cashin hand 407,851 820,219

Balanceswith the CentralBankof Liberia 3,645,472 3,525,938
Balanceswith otherbanks
on such monies.
The abovebalancesare availablefor use by the Bankas thereare no withdrawalrestrictions
For the purposeof the statementof cashflows,cash and cash equivalentscomprise;
2020 2019
Cashand bank balances 11,028,981 8,659,375

bills within3 monthsof uisition 2,125,237 4,493,743
13,',154,218 13 , 15 3 , 118
15. Loans and advancesto customers
Individualand privateloans 621,461 928,596

Staffloans 37,655 48,418
Publicenterprises 4,153,985 4,063,683
Grossloansand advances 4,8{3,101 5,040'697
Allowancesfor impairment (237,9214) (163,729)

Net loansand advances 4,575,157 4,q76,968
Current 2,217,466 3,343,633

Non-current 2,357,691 1,533,335
4,575,157 4,87qp08
Allowance for impairment

The movementin impairmentallowanceis as follows:
At January,1 163,729_ 50,920
lmpactof IFRS9 adoption 29,968
Recoveries (8,518)
Charqefor the vear 74,215 91,359
At December.31 237,94 163,729
12 monthsECL 173,116- 82,854

LifetimeECL not creditimpaired 39,667
LifetimeECL creditimpaired 61 ry
237,94 163,729
54
NOTES(continued)
(Allamountsare in thousandsof Liberiandollarsunlessothenruise
$ated)
16. Investmentsecurities
2020 2019
Grossamount
5'365'863 4'493'743
lmpairmentatowance -
Carryinqamount
lnvestmentsecuritiescompriseof:
Treasurybillsmaturingwithin91 days
2,125,237 4,493,743
Treasurybillsmaturingabove91 days
3.160.991
4.493.743
Current 2,926,300 2,162,056

Non-current
928 331
4,493,743
Treasurybillsare debt securitiesissuedby the Governmentof Liberiathroughthe Central
Bankof Liberia.
17. Other assets
2020 2019
Prepaidexpenses 3,770 153,255

Sundryreceivable 2,604,576 1,399,072
Otherreceivable
338,056
Grossamount 2,633,221 1,890,383
lmpairmentallowance
Netcarryingamount
1,890
lnclu.d.ed
in sundryreceivableis an amountof LRD 1,351,578(201g:LRD g56,672)due from
providersin respectof mobilemoneyservicesrenderedto theirsubscribers. tetecommunication
55
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NOTES(continued)
lntangible assets
Cost 2020 2019
At start of year 22,854 22,519

Additions 478 335
At end of year 23.332 22.854
Amortisation
At start of year 20,579 16,493

Chargefor the year 2.275 4.086
At end of year 22.854 20.579

Net book amount 478 2.275
Leases
(i) Amounts recognised in-the balancesheef
The statementof financialpositionshowsthe followingamountsrelationto leases;

Nghtof use assets 2020
Buildings 200.529 4-L83
Lease liabilities
Current 26,977 9,547
Non-current 128J_i29 26.977
15tr200 36-5?9,
Movement on right of use assefs

At January1, 41,093 71,244
Leaseremeasurements 182,230
chargefor the year

Depreciation e2.7841 (30.161)
At December31' 200s29 _41*083
Movement on Lease liabilities

At Januarv1 36,254 34,440
Leaseremeasurements 182,230
Interestexpense 13,373 1,814
Exchangegain (23,7101
Lease paymentsduringthe year |/52.411 J
At December3{ 155J00 3A254
58
NOTES(continued)
(Allamountsare in thousandsof Liberiandollarsunlessotherwisestated)
21. Depositsfrom customerc
2020 2019
Demanddeposits 14,153,556 10,569,883

Savingsdeposits 5,189,897 4,215,281
Termdeoosits 935,347 1,381,957
20,278,800 16.167.121
Current 14,153,556 10.569.883

Non-current 6,125,244 5,597,238
20,278,800 16.167.121
:
22. Other liabilities
Accountpayables 15,043 787,809

Managers'checks 204,330 151,348
Due to relatedparties 34,126 14,904
Accruedliabilities 56,277 119,430
sundrv liabilities 37,218 240,755
346,994 1,314,246
The accountspayableare all currentin nature.The carryingamountsrepresenttheirfair values.
23. Capitalandreserves
Sharecapital
2020 2019
No.of No.of Proceeds
Authorised share capital shares Proceeds shares
of US$ 1 each
20,000,000 20.000.000 20.000.000
Balanceat December31 20,000,000 20,000,000
lssued share capital

Ordinarysharesof US$1each
Paidup sharecapital 1,128,769 1,128,769 1.128.769 1,128,769
Cumulative translation reserve
Translationreserveis a resultof translatingbalancesfromthe functionalcurrency(US Dollars)to the reporting

currency (LiberianDollars)at differentrates i.e. statementof financialposition items and statementof
comprehensive incomeitems.
59
NOTES(continued)
Capital and reserves (continued)
Statutory reserves
Liberianbankingregulationsrequirethe Bank to make an annualappropriationfrom profitfor the year

to a
statutoryreserveas stipulatedby Section15 (1) (a) of the FinancialInstitution
Act of 199Si.The Banktrinsferred
twentyfive percentof the curent year'sprofitafiertax to statutoryreservesat the end of the financialyear.
Retainedearnings
Retainedearningsare the carried forward recognisedincome net of-expensesplus current period profit
attributableto shareholders.
Earnings per share
Basic
Basicearningsper shareare calculatedby dividing.thenet profitathibutableto equityholdersof the Bank

by
the weightedaveragenumberof sharesin issuedulingthe period.
2020 2019
Profitattributableto equityholdersof the Bank 510.664 258.914
Weightedaveragenumbefof ordiharysharedin,issug 1,12g,769 1,129,769

Basicearningsper share(expressedin Lg per share) O.ISZ O.ZZ}
Diluted earnings per share
Diluted earningsper share are calculatedby adjustingthe weightedaverage number of ordinaryshares

outstandingto assumeconversionof all dilutMepotentialordinaryshares.
The Bank had no categoryof dilutivepotentialordinarysharesas at December31, 2020 (2019:Nil).
Regulatorydisclosure
(i) Impaiment as perCBLprudentiat guidetines
At December 2020
Gross amount % Yo Provision

Performing-Current 2,902,526 58.23o/o 1o/o 27,240
OLEM 851 17.69% 5% 42.581
Total 153 75.92%
Substandard 14,565 0.30% 20o/o 2,913
Doubtful 682,851 14.19% 50% 341,426
Loss 461 9.59% 100o/o 461,533
Total non- 1.1 24.08%
TOTAL 100%
60
NOTES(continued)
Regulatoryd isclosure(continued)
(i) lmpairment as per CBL prudential guidelines (continued)
As at December2019
Cateqory Grossamount o/o % Provision
Performing-Current 4,739,957 94.03% 1% 47,400
OLEM 5o/o
Totalperforming 4,739,957 94.03% 47,400
Substandard 264,516 5.25o/o 20o/o 52,903
Doubtful 23,624 0.47% 50o/o 11,812
Loss 12,600 0.25% 100o/o 12,600
Totalnon-performing 300,740 6% 77,315
TOTAL 5,040,697 100o/o 124.715
Non-performinq
loan ratio 6%
(ii) Comparison between IFRS and regulatory provisions
In accordance withsections8.02and 8.03of the Guidelines ConcerningAccounting,and FinancialReporting

for banks(2016)issuedby the CentralBankof Liberia,if the amountof the allowancefor impairmentlosses
on financialassets exceedsthe total amount of provisioncalculatedin accordancewith the Regulation
CBURSD/O0512014, no complementary actionmust be taken.The Bankshouldonly disclosethat impairment
lossesunder IFRSexceedprovisionscalculatedin accordancewith the Regulation.Similar[, when the total
amountof provisioncalculatedin accordancewith RegulationCBL/RSD/005/2014 exceedsthe amountof the
allowancefor impairmentlosseson financialassets,the Bank mustdisclosethe differenceand its impacton
the Bank'sprofitand capitalfor the period.
Given the above,the practiceof using the credit risk reserveas a prudentialfilter to housethe difference
between IFRS impairmentand provisionscalculatedusing RegulationCBURSD/005/2014is no longer
required.
(iii) lmpact of differencebetween the provisionsbased on CBL guidelinesand impairmenfas per IFRS on
profit and equity
2020 2019
IFRSimpairment 237,94 163,729

CBLprovision 875.693 124.715
Excess of CBL provisions over IFRSimpairment rc37.7491 39,014
Profit before tax 636,737 344.480
(Loss)/Profitbefore tax after CBL provisions (1,0121 383.494
Totalequity 2,ggg,g73 2,530,609

lmpactof prudentialprovisionon equitv (478.3111 29.261
Total equitv after GBL provisions 2.421.662 2,559,870
61
NOTES (continued)
Contingent liabilities and commitments
Legalproceedings
at December31' 2020
There are legat proceedingsagainstthe Bank. There are no contingentliabilitiesas
*"professionaladviceindicatesthat it is that
unlikely any losswill arise
significant
associatedwith legal
(2019:Nil). ""tion"r
Capital commitments
and contractedprojects
At December312020,the Bank had no capitalcommitmentsin respectof authorised
(2019:Nil).
Related parties
partiesare consideredto be relatedif one party has the abilityto controlthe other partyor exerciseinfluence
overthe otherpartyin makingfinancialand'operational decisions,or ohe otherpartycontrolsboth'
The Bankhas a relatedpartyrelationshipwith its parentcompanyin the group.The parentcompanyowns 100%

of the Bank.A numberof businesstrandaitionsare enteredintowith the Group.These
of the totalshareholding
paymentof certain
includethe maintenanceof the variousaccountson which interestsare earnedand the
operatingand capitalexpenditureon behalfof the Bank'
2020 2019
Due to related Parties
UnitedBankfor AfricaPlc al2g 14.994
Transactionswith related parties
Technicalassistancefees-UnitedBankfor AfricaPlc' 145.090 65219
ExecutiveDirectors and key managementperconnel

for
Key managementpersonnelare definedas those personshavingauthorityand responsibility Planning,
(Liberia)Limited (directlyor and
indirectlY)
directingand controllingthe activitiesof United Bank of Africa
comprisethe Directorsand SeniorManagementof the Bank'
and benefitsof ExecutiveDirectorsand key managementpersonnelare as follows:

Remuneration
2020 2019
Short-termemPloYeebenefits ?J6.99t2 239J93
lnterestincomeon loansand advances 402J90 339*090
Directors and key management personnel balances
Deposits _3492!15 __2t2e61
Loansand advances 7$4iA28 rc.6Arc!9
62
NOTES (continued)
28. Events after the post financial position date
Followingthe outbreakof the COVID-19pandemic,the boardhas takena numberof measuresto monitorand

mitigatethe effectsof the pandemicon the Bank'soperations,suchas safetyand healthmeasuresfor our people
(eg.socialdistancingand workingfrom homeas and when required).At this stage,the impactof the pandemic
affectedthe Bank'sabilityto continue
and the actionstakenby the Governmentto containit has not significantly
as a goingconcern.
The directorsare not awareof any othermaterialeventsthat have occurredbetweenthe date of the statement
of financialpositionand the date of approvalof the financialstatementsby the directorsthat may require
adjustmentof, or disclosurein, the financialstatements.
63
BRANCHAND ATM LOCATIONS
Appendix
BRANCHES/ CASH CENTERSWITH CONTACTDETAILS
Nameof Branches/ Gash Location Contacts

Gentres
Broad Street Broad& NelsonStreets,Monrovia,Liberia, Mobile:+231-777-909-246
Liberia Mobile: +231-884-280-21O
Bushrod Branch Freeport,Bushrodlsland,Monrovia,Liberia Mobile:+231-886-956-1 94
PaynesvilleBranch Red light,Paynesville,Monrovia,,Liberia Mobile:+231-886-300-323
Gongo Town CongoTown,Liberia.

TubmanBoulevard, Mobile:+231-886-102-314
ELWA Branch ELWAJunction,Paynesville,

Monrovia, Mobile:+231-770-395-023
Liberia .
SINKORBranch SINKOR,5ft Street,Monrovia,Liberia Mobile:+231-777-909-246
Ganta GantaCity,NimbaCounty,Moprovia, Mobile:+231-886-492476

Liberia.Liberia.
UNMIL/ PAP - UnitedNationsMissionin Liberia Mobile: +231-886422463
PineAfricanPlaza,Sinkor,Monrovia,
Liberia
United Methodist University AshmumStreet, Monrovia,Liberia Mobile:+231-886-27O-165
CUG Cash Centre University
Cuttington MainCampus, Mobile:+23 1-886-102-314
Gbarnga,BongCounty,Liberia
ATM LOCATIONS
'- -
SiN.'."ADTtCESSES
I UBA PaynesvilleBranch- Red light,Paynesville,Monrovia,Liberia
2 LCCBC- Coca-Cola,PlazaPaynesville
3 UBA CongoTown branch- TubmanBoulevard,CongoTown,Liberia

:
4 RoyalHotel-RoyalHotel,15frStreet,Sinkor,Monrovia,Liberia
5 Liberia
MurexPlaza,lOthStreet,Sinkor,Monrovia,
6 OrangePlaza,CapitalBye-Pass,Monrovia
7 Liberia
UMU.AshmunStreet.Monrovia.
8 UBA BroadStreetbranch- Broad& NelsonStreets,Monrovia,Liberia,Liberia
9 UBA Bushrodbranch- Free port,Bushrodlsland,Monrovia,Liberia
lO UN PAP,Sinkor,Monrovia,Liberia
11 UN Starbase,BushrodlslandMonrovia
12 UBAGantabranch- GantaCity,NimbaCounty,Monrovia,
Liberia,Liberia
13 UBA CUC- Cuttington MainCampus,Gbarnga,BongCounty,Liberia

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I

I FORTHE YEAR ENDEDDECEMBER31, 2O2O

Reportof Directors 2-3

Statementof changesin equity 12

t Board of Directors Dr. EugeneShannon

t Registered Office UnitedBankfor Africa(Liberia)Limited

I Solicitor Pierre,Tweh & Associates

I Bankers UnitedBankforAfrica (PLC)

The Directorshavepleasurein submittingtheirreportto the shareholders,

The Directors'responsibilityinctudesdesigning,implementing and maintaininginternalcontrolsrelevantto the

The Bank'sprincipalactivitiescomprisecorporate,commercialand consumerbanking.Therewas no change

leavinga balanceto be carriedforwardon the retainedearningsof

The namesof the presentdirectorsare detailedon page 1.

Approval of the financial statements

Name Designation Numberof Meetihgs Attendance

At leastoncea year,the Boardis requiredto reviewthe UBALiberia'slong-termplansandthe principalissues

The BASFCcommitteeis mandatedto;

Name Designation Number of Meetings Attendance

. reviewand overseethe overalllendingpolicyof the Bank;

Name Designation Number of Meetings Attendance

Dr. Wede Brownell Chairman 4 4

The BoardAudit Committeeis mandatedto;

. reviewthe integrityof the Bank'sfinancialreportingand overseethe independence and objectivityof the

BOARD AUDIT GOMMITTEE(BAC) (con$nued)

l and resultsof operations

I assistthe Boardin discharging itsresponsibilities technology(lT) as it relatesto financial

I implementation and monitorperformancei t

I riskfevefsto the Boardfor approval;

t . Reviewthe sensitivityof the Bank'searningsto volatilityin equity,credit,treasuryand foreignexchange

F REPORTON THE AUDITOF THE FINANCIALSTATETENTS

of UnitedBankfor AfricaLiberiaLimitedfor the yearended

F incomefor the yearthenended;

F Basis for opinion

We conductedour audit in accordancewith lnternationalStandardson Auditing (lSAs). Our

Our opinionon the financialstatementsdoes not coverthe otherinformation

I any formof assuranceconclusion thereon.

I lf, basedon theworkwe haveperformed on the otherinformation,we concludethatthereis a material

Act of 1999,and for such internalcontrolas the directorsdetermineis necessaryto enablethe

the directorsare responsible

t ceaseoperations, butto do so.

l Auditor's responsibilitiesfor the audit of the financialstatements

Our objectivesareto obtainreasonable assuranceaboutwhetherthefinancialstatements as a whole

I As part of an audit in accordancewith lSAs, we exerciseprofessional

. ldentifyand assessthe risksof materialmisstatement whetherdue

t error,as fraudmay involvecollusion,

. Obtain an understanding of internalcontrolrelevantto the audit in order to design audit

. Evaluatethe appropriateness of accountingpolicies used and the reasonablenessof

audit of the financial statements (continued)

t . Evaluatethe overallpresentation, structureand contentof the financialstatements,including

I We communicatewith the directorsregarding,amongother matters,the

r i) we have obtainedall the informationand explanationswhich to the best of our

Year ended December31

Feesand commission income 992,956 928,265

lmpairmentchargeon financialassets 9 1223,2631 (91,35e)

Basicearninqsper share 24 0.452 0.229

The noteson pages14 to 63 are an integralpartof thesefinancialstatements.

The noteson pages14 to 63 are an integralpartof thesefinancialstatements.

At January1 ^ 1.128.769 865.724 351,8

Profitfor the year 510,664 510,664