Page 89 - Annual Report 2022

27 Banka Kombëtare Tregtare Annual Report 2022

Banka Kombëtare Tregtare Sh.a.
Notes to the Consolidated Financial Statements for the year ended
31 December 2022 (Amounts in USD, unless otherwise stated)

4. Use of estimates and judgements (continued)
Fair values

The table below sets out the carrying amounts and fair values of the financial assets and liabilities and analyses financial
instruments measured at fair value at the end of the reporting period, by the level in the fair value hierarchy into which the fair
value measurement is categorised:

31 December 2022 Note Carrying Amount Fair Value
Level 1 Level 2 Level 3 Total
Placement and balances
with banks 8 473,902,012 - 473,902,012 - 473,902,012
Investment securities 9 2,911,791,378 1,552,499,212 1,246,014,375 - 2,798,513,587
Loans to banks 10 145,894,324 - 145,894,324 - 145,894,324
Loans to customers 11 1,383,681,949 - - 1,383,681,949 1,383,681,949
Total financial assets 4,915,269,663 1,552,499,212 1,865,810,711 1,383,681,949 4,801,991,872
Customer deposits 17 4,591,435,866 - - 4,591,435,866 4,591,435,866
Due to banks and 18 305,784,334 - 305,784,334 - 305,784,334
financial institutions
Subordinated debt 22 50,319,179 - 50,319,179 - 50,319,179

Total financial liabilities 4,947,539,379 - 356,103,513 4,591,435,866 4,947,539,379
31 December 2021 Note Carrying Amount Level 1 Level 2 Level 3 Total
Placement and balances 8 557,373,773 - 557,373,773 - 557,373,773
with banks
Investment securities 9 2,558,621,973 1,238,871,309 1,318,523,621 - 2,557,394,930
Loans to banks 10 138,246,339 - 138,246,339 - 138,246,339
Loans to customers 11 1,310,598,335 - - 1,310,598,335 1,310,598,335
Total financial assets 4,564,840,420 1,238,871,309 2,014,143,733 1,310,598,335 4,563,613,377
Customer deposits 17 4,182,176,123 - - 4,182,176,123 4,182,176,123
Due to banks and
financial institutions 18 372,945,259 - 372,945,259 - 372,945,259
Subordinated debt 22 28,405,688 - 28,405,688 - 28,405,688
Total financial liabilities 4,583,527,070 - 401,350,947 4,182,176,123 4,583,527,070
The fair value of foreign exchange contracts approximates their carrying amount, which is disclosed in Notes 16 and 21. The Fair
value of loan to customers and customer deposits approximates to their carrying value either due to interest rates approximating
the market rates or due to short term maturities.