Page 67 - Annual Report 2022

5 Banka Kombëtare Tregtare Annual Report 2022 5

Banka Kombëtare Tregtare Sh.a.
Consolidated statement of cash flows for the year ended 31 December 2022
(Amounts in USD)

Year ended Year ended
Notes
31 December 2022 31 December 2021
Cash flows from operating activities:
Profit before taxes 121,248,974 107,839,968
Adjustments to reconcile change in net assets to net cash provided by operating
activities:
Interest expense 25 29,597,962 21,987,259
Interest income 24 (172,784,025) (168,827,452)
Depreciation and amortization 13,14,15 9,378,577 9,700,992
Gain on sale of property and equipment (143,467) -
Gain on sale of investment securities (53,476,297) (2,788,953)
Gain on sale of non-current assets (348,875) (489,057)
Gain on recovery of written-off loans to customers (1,151,425) (4,464,043)
Write-off of loans to customers 894,256 4,423,578
Write off of fixed assets and repossessed assets 14,061 127,422
Provision on other debtors 6,778,236 6,197,533
Reversal of other debtors (1,142,328) (1,045,313)
Movement in the fair value reserve and impairment of FVOCI (72,636,653) (24,286,153)
Dividend income from securities (2,795,904) (3,685,663)
Impairment of loans to customers 11 (7,284,287) 4,020,610
Impairment of financial instruments, other than loans 31 36,098,059 1,017,690
Cash flows from operating profits before changes in operating assets and liabilities (107,753,136) (50,271,582)
(Increase)/decrease in operating assets:
Restricted balances with central banks (37,480,820) (17,706,513)
Placements and balances with banks (36,722,712) (34,122,079)
Loans to banks (7,555,470) 111,421,741
Loans to customers (67,669,581) (30,515,391)
Other assets (38,996,619) (16,990,031)
(188,425,202) 12,087,727
Increase/(decrease) in operating liabilities:
Customer deposits 402,222,496 424,315,280
Due to third parties 2,235,834 44,834
Accruals and other liabilities (4,066,353) 12,678,124
400,391,977 437,038,238
Dividend payment (45,000,000) (40,000,000)
Interest paid (25,000,907) (21,456,079)
Interest received 165,492,165 164,027,091
Income taxes paid (15,307,100) (13,881,115)
Net cash flows from operating activities 184,397,797 487,544,280
Cash flows from investing activities
Purchases of investment securities (618,864,483) (978,218,403)
Purchases of treasury bills (112,063,026) (482,013)
Investment in associates (152,889) 48,334
Purchases of property and equipment (5,735,824) (12,896,856)
Proceeds from sale of investment securities 414,471,037 458,745,777
Proceeds from sale of treasury bills 30,745,318 25,517,377
Net cash flows used in investing activities (291,599,867) (507,285,784)

Cash flows from financing activities
Proceeds from short term borrowings 18 (62,173,825) 76,153,062
Subordinated debt 20,789,259 (710,076)
Net cash from financing activities (41,384,566) 75,442,986

Net change in cash and cash equivalents (148,586,636) 55,701,482
Effects of exchange rate changes on the balance of cash held in foreign currencies
/ (Translation difference) (1,239,942) (4,827,199)
Cash and cash equivalents at the beginning of the year 7 722,862,568 671,988,285
Cash and cash equivalents at the end of the period 7 573,035,990 722,862,568
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 89.