My first Publication ocbc_ar17_fullreport_english | Page 213

33. ASSOCIATES
GROUP
BANK
2017
$’000 2016
$’000 1,357,689
84,183
–
1,441,872 1,357,689
224,280
–
1,581,969 Share of post-acquisition reserves 766,567 812,664 – –
Amounts due from associates (unsecured) 143,185 20,835 131 –
2,351,624 2,415,468 482,823 594,532
Quoted equity security, at cost
Unquoted equity securities, at cost
Allowance for impairment (Note 32)
Net carrying value
Investments in and amounts due from associates
2017
$’000
433,197
61,527
(12,032)
482,692
2016
$’000
433,197
163,534
(2,199)
594,532
33.1 LIST OF PRINCIPAL ASSOCIATES
The Group applied equity method for all its investments in associates.
The Group’s principal associates are as follows:
Name of associates
Quoted
Bank of Ningbo Co., Ltd (1)
Unquoted
AVIC Trust Co., Ltd (2)
(Note 33.2)
Network for Electronic Transfers
(Singapore) Pte Ltd (1)

(3)

(1)
(2)
Country of
incorporation/
Principal place
of business
Effective % interest held (3)
Nature of the relationship with the Group
People’s Republic
of China A commercial bank, which enables the Group
to expand its bilateral business in offshore
financing, trade finance and private banking.
People’s Republic
of China Provides professional financial and asset
management services, which enable the Group
to enhance its Greater China presence.
Singapore
Provides electronic payment services, which
enables the Group to extend funds transfer
services to its broad customer base.
2017 2016
20 20
– 20
33 33
Audited by Ernst & Young.
Audited by Grant Thornton.
Rounded to the nearest percentage.
As at 31 December 2017, the fair value (Level 1 of the fair value hierarchy) of the investments in Bank of Ningbo was $3,707.2 million
(2016: $2,700.5 million), and the carrying amount of the Group’s interests was $2,070.3 million (2016: $1,892.6 million).
As Bank of Ningbo is a listed bank on the Shenzhen Stock Exchange, the entity’s ability to transfer funds to the Group is subject to local
listing and statutory regulations.
33.2 DILUTION OF INTEREST IN AN ASSOCIATE
In November 2017, AVIC Trust Co., Ltd (“AVICT”) increased its registered capital by issuing shares via a private placement. As a result, the
Group’s interest in AVICT was diluted from 20% to 17%. With the dilution of interest, AVICT is no longer an associated company of the
Group, and has been reclassified as an available-for-sale (“AFS”) equity security.
BUILDING ON OUR CORPORATE STRATEGY FOR SUSTAINABLE GROWTH
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