Page 74 - Annual Report 2023

5 BANKA KOMBËTARE TREGTARE
Consolidated statement of cash flows for the year ended 31 December 2023
(Amounts in USD)

Year ended 31 Year ended 31
Notes
December 2023 December 2022
Cash flows from operating activities:
Profit before taxes 105,650,295 121,248,974
Adjustments to reconcile change in net assets to net cash provided by
operating activities:
Interest expense 26 50,122,934 29,597,962
Interest income 25 (243,107,603) (172,784,025)
Depreciation and amortization 13,14,15 11,318,155 9,378,577
Gain on sale of property and equipment (23,884) (143,467)
Gain on sale of investment securities (34,090) (53,476,297)
Gain on sale of non-current assets (893,540) (348,875)
Gain on recovery of written-off loans to customers (1,592,015) (1,151,425)
Write-off of loans to customers 33,504 894,256
Write off of fixed assets and repossessed assets 66,160 14,061
Provision on other debtors 3,081,750 6,778,236
Reversal of other debtors (560,095) (1,142,328)
Movement in the fair value reserve and impairment of FVOCI 22,022,625 (72,636,653)
Dividend income from securities (468,267) (2,795,904)
Impairment of loans to customers 11 (5,369,981) (7,284,287)
Impairment of financial instruments, other than loans 32 18,405,243 36,098,059
Cash flows from operating profits before changes in operating (41,348,809) (107,753,136)
assets and liabilities
(Increase)/decrease in operating assets:
Restricted balances with central banks (67,413,199) (37,480,820)
Placements and balances with banks 61,985,087 (36,722,712)
Loans to banks 29,520,518 (7,555,470)
Loans to customers (100,528,375) (67,669,581)
Other assets (15,153,950) (38,996,619)
(91,589,919) (188,425,202)
Increase/(decrease) in operating liabilities:
Customer deposits 222,955,222 402,222,496
Due to third parties 3,029,099 2,235,834
Accruals and other liabilities (9,494,283) (4,066,353)
216,490,038 400,391,977
Dividend payment (100,000,000) (45,000,000)
Interest paid (42,620,305) (25,000,907)
Interest received 241,722,066 165,492,165
Income taxes paid (17,235,472) (15,307,100)
Net cash flows from operating activities 165,417,599 184,397,797
Cash flows from investing activities
Purchases of investment securities (511,199,073) (618,864,483)
Purchases of treasury bills (153,235,120) (112,063,026)
Investment in associates 288,188 (152,889)
Purchases of property and equipment (10,464,875) (5,735,824)
Proceeds from sale of investment securities 304,208,453 414,471,037
Proceeds from sale of treasury bills 267,693,004 30,745,318
Net cash flows used in investing activities (102,709,423) (291,599,867)

Cash flows from financing activities
Proceeds from short term borrowings 18 (176,405,093) (62,173,825)
Debt securities issued 31,715,301 -
Subordinated debt (4,834,526) 20,789,259
Net cash from financing activities (149,524,318) (41,384,566)

Net change in cash and cash equivalents (86,816,142) (148,586,636)
Effects of exchange rate changes on the balance of cash held in foreign 36,124,437 (1,239,942)
currencies / (Translation difference)
Cash and cash equivalents at the beginning of the year 7 573,035,990 722,862,568
Cash and cash equivalents at the end of the period 7 522,344,285 573,035,990

The consolidated statement of cash flows is to be read in conjunction with the notes to and forming part of the consolidated financial
statements set out on pages 6 to 76.