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The Palestine Exchange (PEX) received a draft of reviewed interim condensed financial statements from Alrafah Microfinance Bank (AMB). The PEX disclosure rules in place give all of the PEX listed companies a period of 45 days to report their first half interim financial statements as reviewed by their independent external auditor. Their disclosure has been published on the PEX website (www.pex.ps) and emailed to PEX member securities firms in conjunction with this press release.
The disclosed draft financials were not approved by the Palestinian Monetary Authority (PMA) and there may be some material changes. The bank must disclose the reviewed financials by the independent external auditor once approved by the PMA.
The disclosed information includes: an unsigned Independent Accountants" Review Report, the Statement of Financial Position, the Statement of Comprehensive Income, Changes in Equity Ownership, the Statement of Cash Flows and Notes to the interim financial statements (37 notes). The company also provided its interim financial statements via the approved electronic form of disclosure applicable to the Banking & Financial Services Sector. The interim report also includes the additional information required by Article (38/2) of the PEX disclosure rules in place concerning management, issued shares, material changes and significant events that may have affected financial performance during the first half of the year.
According to company data for the first half of this year, net profit before taxes reached 66,185 USD, compared with a net profit before taxes of 1,288,700 USD from the first half of 2010, a net decrease of 94.9%. Total assets of the company have reached 169,244,335 USD as of June 30th, 2011, compared to total assets of 158,139,737 USD as of December 31st, 2010, a net increase of 7.0%. Total liabilities of the company have reached 140,345,029 USD as of June 30, 2011, compared to total liabilities of 129,406,960 USD as of December 31st, 2010, a net increase of 8.5%. Net ownership equity of the company has reached 28,899,306 USD as of June 30th, 2011, compared with a net ownership equity of 28,732,777 USD as of December 31st, 2010, a net increase of 0.6% in the last six months.
Before the conclusion paragraph in the unsigned Independent Auditors’ Review Report (Saba & Co.), the following was conveyed: The bank didn"t comply with the PMA Directives 2009/7 which stated the minimum paid-in capital of $50 million USD. In the conclusion paragraph, the following was conveyed: Based on our limited review, with the exception of not complying with the PMA Directives 2009/7 mentioned in the preceding paragraph, nothing has come to our attention that causes us to believe that the accompanying interim condensed financial statements are not, in all material aspects, representing fairly the financial position of the Alrafah Microfinance Bank as of June 30, 2011 and its financial performance, and cash flows for the six month period then ended in accordance with International Accounting Standard No. (34).