Page 267 - Capricorn IAR 2020

2020 INTEGRATED ANNUAL REPORT
GLOSSARY OF TERMS
Basel II
The capital adequacy framework issued by the Bank for International Settlements aimed at aligning banks’ capital requirements with relevant risk profile and risk practices.
Capital adequacy requirement (“CAR”)
The minimum amount of capital required to be held, as determined by the Bank of Namibia.
Cost to income ratio (%)
Operating expenses, divided by total operating income.
Earnings per share (cents)
The Group profit for the year attributable to the equity holders of the parent entity divided by the weighted average number of ordinary shares in issue during the year.
Fair value
Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.
Headline earnings
Profit for the year attributable to the equity holders of the parent entity from trading operations, excluding goodwill gain or losses, capital profits and losses and recycled profits or losses on available- for-sale financial instruments. Headline earnings do not measure sustainable earnings.
Headline earnings per share (cents)
Headline earnings divided by the weighted average number of ordinary shares in issue during the year.
Net asset value per share (cents)
Net assets excluding non-controlling interest (“NCI”) divided by the weighted average number of ordinary shares in issue during the year.
Price earnings ratio
Closing share price (cents) divided by earnings per share (cents).
Price to book ratio
Closing share price (cents) divided by net asset value per share (cents).
Return on average assets (“ROA”) (%)
Group profit for the year attributable to the equity holders of the parent entity divided by average total assets.
Return on average shareholders’ equity (“ROE”) (%)
Group profit for the year divided by average total shareholders’ equity.
Tier I capital ratio
Net total Tier I capital (after deduction of goodwill and 50% of
cost of investments in affiliates) divided by total risk-weighted assets.
Tier II capital ratio
Net total Tier II capital (after deduction of 50% of cost of investments in affiliates) divided by total risk-weighted assets.
Total risk-based capital ratio
Total regulatory capital (Tier I, II and III capital) divided by total risk-weighted assets.
Tier I leverage ratio
Net total Tier I capital (after deduction of goodwill and 50% of
cost of investments in affiliates) divided by gross assets (total assets plus specific and general impairment).
The central bank
The Bank of Namibia (“BoN”).
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