Page 143 - 2021 ANNUAL REPORT draft

Reserve after comparing the IFRS 9 provision to the CBG prudential provision. The closing balance in the
credit risk reserve is D42, 023,000.
Credit risk reserve reconciliation

In thousands of Gambian Dalasi Dec.-2021 Dec.-2020
Provision per prudential guideline 53,740 68,936

Loan impairment per IFRS 58,527 73,037

Opening balance 46,810 50,911

CRR adjustment (4,787) (4,101)

Closing Balance 42,023 46,810

Retained earnings

Retained earnings are the carried forward recognised income net of expenses plus current year profit attributable
to shareholders.

29. Contingents

Claims and litigation

The Bank, in its ordinary course of business, is presently involved in 3 cases as a plaintiff, 11 cases as
defendant and 1 appeal case. The total amount claimed in the 3 cases instituted by the Bank is D21,
445,000 whilst a refund of GMD8, 171,252.00 is sought by the Bank in the matter subject of an appeal. The
amount claimed for in the 11 cases against the Bank is D33, 134,477.00.

Based on the advice of the solicitors, the Directors are of the opinion that none of the aforementioned cases
is likely to have a material adverse effect on the Bank and they are not aware of any other pending and or
threatened claims or litigation which may be material to the financial statements.

Contingent liabilities and commitments

In common with other banks, the Bank conducts business involving acceptances, performance bonds and
indemnities. The majority of these facilities are offset by corresponding obligations of third parties.
Contingent liabilities and commitments comprise acceptances, endorsements, guarantees and letters of
credit.

Nature of instruments

An acceptance is an undertaking by a bank to pay a bill of exchange drawn on a customer. The Bank
expects most acceptances to be presented, but reimbursement by the customer is normally immediate.
Endorsements are residual liabilities of the Bank in respect of bills of exchange, which have been paid and
subsequently rediscounted. Guarantees and letters of credit are given as security to support the
performance of a customer to third parties. As the Bank will only be required to meet these obligations in

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Guaranty Trust Bank (Gambia) Limited Financial Statements December 2021