Download Financial Statements PDF

TitleFinancial Statements
LanguageEnglish
File Size3.1 MB
Total Pages220
Table of Contents
                            Cover
IBRD Financial Statements
	IBRD Financial Statements: June 30, 2015
	IBRD Management's Discussion and Analysis
	IBRD Financial Statements and Internal Control Reports
IDA Financial Statments
	IDA Financial Statments: June 30, 2015
	IDA Management's Discussion and Analysis
	IDA Financial Statements and Internal Control Reports
                        
Document Text Contents
Page 1

Annual Report 2015










The International Bank For Reconstruction and Development (IBRD) and
The International Development Association (IDA)

Management's Discussion & Analysis and
Financial Statements (Fiscal Year 2015)


June 30, 2015

Page 2

Letter of Transmittal

The Annual Report, which covers the period from July 1, 2014, to June 30, 2015, has been prepared by the
Executive Directors of both the International Bank for Reconstruction and Development (IBRD) and the
International Development Association (IDA)—collectively known as the World Bank—in accordance
with the respective bylaws of the two institutions. Dr. Jim Yong Kim, President of IBRD and IDA, and
Chairman of the Board of Executive Directors, has submitted this report, together with the accompanying
administrative budgets and audited financial statements, to the Board of Governors.

Annual Reports for the International Finance Corporation, the Multilateral Investment Guarantee Agency,
and the International Centre for Settlement of Investment Disputes are published separately.



Board of Executive Directors and Alternates for
The International Bank for Reconstruction and Development (IBRD)

and The International Development Association (IDA)


Executive Directors Alternates
Khalid Alkhudairy Turki Dhaifallah Almutairi
Shixin Chen Jinadi Ye
Hervé de Villeroché Arnaud Delaunay
Sung-Soo Eun Jason Allford
Alejandro Foxley Daniel Kostzer
Jorg G. Frieden Wieslaw Leonard Szczuka
Subhash Garg Mohammad Tareque
Franciscus Godts Gulsum Yazganarikan
Merza Hasan Karim Wissa
Frank Heemskerk Roman Zhukovskyi
Gwen Hines Clare Roberts
Masahiro Kan Daiho Fujii
Mohamed Kayad Seydou Bouda
Nasir Mahmood Khosa Omar Bougara
Peter Larose Andrew Bvumbe
Ana Lourenco Bongi Kunene
Andrei Lushin Eugene B. Miagkov
Matthew McGuire (vacant)
Ursula Mueller Wilhelm Rissmann
Patrizio Pagano Nuno Mota Pinto
Jose Rojas Beatriz de Guindos
Satu-Leena Santala Sanita Bajare
Rionald Silaban Pornwasa Sirinupongs
Antonio Silveira Rosalia de Leon
Alister Smith Janet Harris

As of June 30, 2015

Page 110

106 IBRD FINANCIAL STATEMENTS: JUNE 30, 2015

received collateral totaling $4,958 million as of June 30, 2015 ($6,019 million—June 30, 2014) in relation to swap
transactions (see Note C—Investments).

The following table provides information on unrealized mark-to-market gains and losses on non-trading derivatives
during the fiscal years ended June 30, 2015, June 30, 2014 and June 30, 2013, and their location on the Statement of
Income:
In millions of U.S. dollars

Derivatives not designated as hedging Income Statement location Unrealized mark-to-market (losses) gains


instruments, and not held in a trading
portfolioa 2015 2014 2013



Interest rate swaps

Equity management, Loans
Borrowings and Other, net

$ (684) $ (772) $ (1,416)
Currency swaps (including currency
forward contracts and structured swaps) 454 190 148

Total $ (230) $ (582) $ (1,268)


a. For alternative disclosures about trading derivatives see the following table.

All of the instruments in IBRD's investment portfolio are held for trading purposes. Within the investment portfolio,
IBRD holds highly rated fixed income securities, equity securities as well as derivatives.

The following table provides information on the location and amount of gains and (losses) on the net investment-
trading portfolio and their location on the Statement of Income during the fiscal years ended June 30, 2015, June 30,
2014 and June 30, 2013:
In millions of U.S. dollars
Statement of Income line Unrealized mark-to-market (losses) gains on Investments-Trading, net

a


2015 2014 2013

Type of instrument

  Fixed income (including associated derivatives) $ (146) $ (202) $ 36

  Equity  4 26 13

$ (142) $ (176) $ 49

a. Amounts associated with each type of instrument include gains and losses on both derivative instruments and
  non-derivative instruments.      
Offsetting assets and liabilities

IBRD enters into International Swaps and Derivatives Association, Inc. (ISDA) master netting agreements with
substantially all of its derivative counterparties. These legally enforceable master netting agreements give IBRD the
right to liquidate securities held as collateral and to offset receivables and payables with the same counterparty, in
the event of default by the counterparty.

Page 111

IBRD FINANCIAL STATEMENTS: JUNE 30, 2015 107

The following table summarizes information on derivative assets and liabilities (before and after netting
adjustments) that are reflected on IBRD’s Balance Sheet as of June 30, 2015 and June 30, 2014. Total derivative
assets and liabilities are adjusted on an aggregate basis to take into consideration the effects of legally enforceable
master netting agreements. The net derivative asset positions have been further reduced by the cash and securities
collateral received.
In millions of U.S. dollars
June 30, 2015
Location on Balance Sheet
Derivative Assets Derivative Liabilities


Gross amounts

recognized
Gross amounts

offset
Net amounts

presented
Gross amounts

recognized
Gross amounts

offset
Net amounts

presented
Interest rate swaps $ 24,968 $ (18,458) $ 6,510 $ 16,938 $ (12,488) $ 4,450
Currency swapsa 127,804 - 127,804 127,855 - 127,855
Otherb 11 - 11 22 (3) 19
Total $ 152,783 $ (18,458) $ 134,325 $ 144,815 $ (12,491) $ 132,324



Amounts subject to
legally enforcable
master netting
agreementsc (128,010) (128,010)



Net derivative
positions at
counterparty level
before collateral 6,315 4,314

Less:


Cash collateral
receivedd 2,284


Securities collateral
receivedd 1,609



Net derivative
exposure after
collateral $ 2,422


a. Includes currency forward contracts and structured swaps.
b. These amounts relate to swaptions, exchange traded options, futures contracts and TBA securities.
c. Not offset on the Balance Sheet.
d. Does not include excess collateral received.

In millions of U.S. dollars
June 30, 2014
Location on Balance Sheet
Derivative Assets Derivative Liabilities


Gross amounts

recognized
Gross amounts

offset
Net amounts

presented
Gross amounts

recognized
Gross amounts

offset
Net amounts

presented
Interest rate swaps $ 22,482 $ (14,713) $ 7,769 $ 14,173 $ (10,022) $ 4,151
Currency swapsa 146,298 - 146,298 142,721 - 142,721
Otherb 3 - 3 13 - 13
Total $ 168,783 $ (14,713) $ 154,070 $ 156,907 $ (10,022) $ 146,885



Amounts subject to
legally enforcable
master netting
agreementsc (145,595) (145,595)



Net derivatives
positions at
counterparty level
before collateral 8,475 1,290

Less:


Cash collateral
receivedd 2,840


Securities collateral
receivedd 2,485



Net derivative
exposure after
collateral $ 3,150


a. Includes currency forward contracts and structured swaps.
b. These amounts relate to swaptions, exchange traded options, futures contracts and TBA securities.
c. Not offset on the Balance Sheet.
d. Does not include excess collateral received.

Page 219

88 IDA FINANCIAL STATEMENTS: JUNE 30, 2015

NOTE L—OTHER FAIR VALUE DISCLOSURES
The table below presents IDA’s estimates of fair value of its financial assets and liabilities along with their
respective carrying amounts as of June 30, 2015 and June 30, 2014.

In millions of U.S dollars
June 30, 2015 June 30, 2014

Carrying Value Fair Value Carrying Value Fair Value

Assets

Due from Banks $ 356 $ 356 $ 150 $ 150

Investments (including Securities Purchased Under
Resale Agreements) 33,173 33,173 34,162 34,162

Net Development Credits Outstanding 126,760 94,276 132,010 95,992

Derivative Assets

Investments 6,619 6,619 2,719 2,719

Other Asset-Liability management 8,914 8,914 12,102 12,102

Liabilities

Borrowings 2,150 2,332 - -
Securities sold/lent under repurchase agreements/
securities lending agreements and payable for
cash collateral received 4,904 4,904 5,012 5,012

Derivative Liabilities

Investments 6,507 6,507 2,785 2,785

Other Asset-Liability management 8,963 8,963 12,222 12,222

Valuation Methods and Assumptions

As of June 30, 2015 and June 30, 2014, IDA had no financial assets or liabilities measured at fair value on a non–
recurring basis.

For valuation methods and assumptions of the investments and derivative assets and liabilities refer to Note A –
Summary of Significant Accounting and Related Policies.

For valuation methods and assumptions of borrowings refer to Note D – Borrowings.

For valuation methods and assumptions of the development credits outstanding refer to Note F – Development
credits and other exposures.

For additional fair value disclosures refer to Note C – Investments, Note D – Borrowings, Note E – Derivative
Instruments, and Note F – Development credits and other exposures.

Due from Banks
The carrying amount of unrestricted and restricted cash is considered a reasonable estimate of the fair value of these
positions.

Page 220

IDA FINANCIAL STATEMENTS: JUNE 30, 2015 89

Unrealized Mark-to-Market Gains (Losses) on Non-Trading Portfolios, Net

The following table reflects the components of the unrealized mark-to-market gains or losses on non-trading
portfolios, net, for the fiscal years ended June 30, 2015, June 30, 2014 and June 30, 2013.

In millions of U.S dollars

Unrealized mark-to-market Gains (Losses)

Fiscal Year Ended June 30,

2015 2014 2013

Unrealized mark-to-market gains (losses) on
non-trading portfolios, net

Investment portfolio - Note C $ (19) $ - $ -

Asset-liability management - Note E (160) (35) (102)

Total $ (179) $ (35) $ (102)






NOTE M—CONTINGENCIES
From time to time, IDA may be named as a defendant or co-defendant in legal actions on different grounds in
various jurisdictions. IDA’s Management does not believe the outcome of any existing legal action as of and for the
fiscal year ended June 30, 2015, will have a material adverse effect on IDA's financial position, results of operations
or cash flows.

Similer Documents