Page 337 - ACCESS BANK ANNUAL REPORTS_eBook

Directors
and other key man-
agement personnel
year ended 31 December 2017
(and close family
In thousands of Naira members) Subsidiaries Total
Balance, beginning of year 1,030,899 92,014,601 93,045,500
Net movement during the year 2,998,509 15,919,197 18,917,706

Balance, end of year 4,029,408 107,933,798 111,963,206

Interest income earned 275,232 1,310,286 1,585,518

Bad or doubtful debts due from related parties expense - - -

The loans used to directors and other key management personnel (and close family members) as at 31
December 2017of N4.03Bn are repayable in various cycles ranging from monthly to annually over the tenor.
The transactions were carried out at arms length and have an average tenor of 4 years. The loans are collateralised
by a combination of lien on shares of quoted companies, fixed and floating debentures, corporate guarantee,
negative pledge, domiciliation of proceeds of company’s receivables, legal mortgages and cash.

The loan to subsidiaries relates to a foreign interbank placements of USD302M granted during the year. It is a
non-collateralised placement advanced at an average interest rate of 1.49% and a tenor less than 12 months.
This loan has been eliminated on consolidation and does not form part of the reported Group loans and advances
balance.

No impairment losses have been recorded against balances outstanding during the year with key management
personnel, and no specific allowance has been made for impairment losses on balances with key management
personnel and their immediate relatives at year end.

(b) Deposits from related parties

Directors (and
close family mem-
year ended 31 December 2017
bers and related
In thousands of Naira entities) Subsidiaries Total
Balance, beginning of year 2,038,024 109,626,264 111,664,288
Net movement during the year 1,062,274 67,025,939 68,088,213

Balance, end of year 3,100,298 176,652,203 179,752,501

Interest expenses on deposits 215,665 5,609,001 5,824,666

The deposits are majorly term deposit with an average interest rate and tenor of approximately 8.37% and 5months for
directors and 3.18% and 3.5 months for subsidiaries.

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Annual Report & Accounts 2017