Page 262 - Capricorn IAR 2020

GLOSSARY OF TERMS ANNUAL FINANCIAL GLOSSARY OF TERMS STATEMENTS
NOTES TO THE CONSOLIDATED AND SEPARATE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended 30 June 2020
41. ASSETS UNDER CUSTODY
As at year-end, the Group has no assets under custody (2019: nil).
42. CONSOLIDATED STRUCTURED ENTITIES
The Group assesses whether it has control over structured entities in terms of IFRS 10. Where the Group has control over a structured entity it is consolidated in terms of IFRS 10. The Group’s structured entities are the Capricorn Group Employee Share Ownership Trust and Capricorn Group Employee Share Benefit Trust.
The Group has control over these structured entities, as the trustees are appointed by the Group’s board of directors. The structured entities are therefore consolidated.
No contractual obligation exists for the Group to provide any financial or other support to the consolidated structured entities. The Group will provide financial support from time to time for the purchase of shares for the share incentive schemes. As at the end of the 2019 financial year, the Group was providing financial support of N$11.8 million (2018: N$17.1 million) to the Capricorn Group Employee Share Ownership Trust.
43. SEGMENT INFORMATION
The Group considers its banking operations in Namibia and Botswana as major operating segments; the other major operating segment is the microlending activities in Namibia. Other components include property development, asset management, unit trust management and the Zambian banking operations. However, these components each contribute less than 10% to the Group’s revenue, assets and profit for the year. Therefore, the Group has no significant components other than banking and microlending in Namibia and banking in Botswana. This is in a manner consistent with the internal reporting provided to the chief operating decision- maker, identified as the chief executive officer of the Group. The chief operating decision-maker is the person that allocates resources to and assesses the performance of the operating segment(s) of an entity.
In assessing the performance of the banking operations, the Group chief executive officer reviews the various aggregated revenue streams, the total costs and the assets and liabilities related to the banking activities. The financial information included below is based on the banks’ audited annual financial statements which complies with IFRS measurement and recognition criteria. In order to reconcile to the statement of comprehensive income and statement of financial position all entities that do not qualify as separate segments, as well as consolidation journal entries, are included in the ‘other’ column.
The banking operations in Zambia were classified as a discontinued operation for the current financial year. A term sheet has been signed with a third-party bank for the sale of the subsidiary. Information about this discontinued segment is provided in note 44.
43.1 Entity-wide disclosures
43.1.1 Products and services
Operating segments
Banking operations – Namibia
Microlending and related activities – Namibia Banking operations – Botswana
Brand
Bank Windhoek Ltd (“BW”) Entrepo Holdings (Pty) Ltd Bank Gaborone Ltd (“BG”)
Description
BW & BG – Corporate and executive banking, retail banking services and specialist finance. Entrepo – Microlending and life insurance services.
Product and services
Bank Windhoek Ltd and Bank Gaborone Ltd conduct business as registered banks and provide comprehensive banking services. Clients include both individuals and corporate clients.
Entrepo is an investment holding company, its subsidiaries are engaged in life insurance and financial services in Namibia.
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