Deloitte

Deloitte. I{eport on Review of Interim Condensed Consolidated Financial Stalements ..... to takeover and manage the Bank's investment services and ass...

0 downloads 16 Views 2MB Size

Recommend Documents


Deloitte
Deloitte. Report on Review ofInterim Condensed Consolidated Financial Statements ..... to takeover and manage the Bank's investment services and asset ...

Deloitte
Mar 31, 2011 - We have reviewed the accompanying interim consolidated statement of financial pOSitIOn of Arab National Bank. (the "Bank") and its ...

Deloitte
Jul 15, 2014 - Introduction. We have reviewed the accompanying interim consolidated statement of financial position of Arab National. Bank (the "Bank") and ...

Deloitte
Oct 9, 2012 - Deloitte. Report on Review ofInterim Condensed Consolidated Financial Statements. To the Shareholders of Arab National Bank. (A Saudi ...

Blockchain - Deloitte
Streamlining the vehicle buying and leasing process with less documentation and ... in their risk management strategy and governance ... Business Wire, “$16.3 billion global blockchain technology market analysis & trends—industry ... Primavera De

Deloitte Pest Analysis
Deloitte Pest Analysis (PDF) credit by Keskinen K Niko archived 22 September 2018. ID ae534ed73f eBook. PDF File: Deloitte Pest Analysis. 1/1. DELOITTE ...

Deloitte. - CafeF
ddnh gid lai s6 du cu6i nam tai chinh cua cac khoan cong ng phai tra dai hp c6 goc ngoai to cua cac ...... TOng COng ty Dung dich khoan va H6a phim Diu khi -.

Deloitte Case Solutions
Deloitte Case Solutions (PDF) credit by Rosberg M Kalevi archived 17 September 2017. ID 324ad890cc eBook. PDF File: Deloitte Case Solutions. 1/1.

Millennials and beyond - Deloitte
products, and organic foods. Not enthusiastic—somewhat complacent with status quo. Least buying power and likely living on a tight budget. Least interested in ...

Millennials and beyond - Deloitte
Least buying power and likely living on a tight budget. Least interested in ... products; and give price more important for household care products. Aspirationalists.

Deloitte & Touche Bakr Abulkhair & Co. I 111111111111111111111111111111111111"""'"' '

Deloitte.

EJ ERNST & YOUNG

I{eport on Review of Interim Condensed

Consolidated

Financial Stalements

To the Shareholders of Arab National Dank (A Saudi Joint Stock Company) Introduction We have revicwed the accompanying interim consolidated statement of financial position of Arab National Bank (the "Bank") and its subsidiaries (collcctively referrcd to as "the Group") as at September 30,2013, the related interim consolidated statements of incomc and comprehensive income for the three month and nine month periods then ended, the related interim consolidated statements of changes in equity and cash flows for the nine month period then ended and the notes from (I) to (14) for the nine month period then ended. We have not reviewed note (15), nor the information related to "Basel III Capital Structure Disclosures" cross referenced therein, which is not required to be within the scope of our review. Thc Dank's management is responsiblc for the preparation and prcsentation of these interim condensed consolidated financial statements in accordance with applicable Accounting Standards for Financial Institutions, certain capital adequacy disclosure requiremcnts issued by the Saudi Arabian Monetary Agency ("SAM A") and International Accounting Standard No. 34 "Interim Financial Reporting". Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review. Scope of Review We conducted our review in accordance with generally accepted standards in thc Kingdom of Saudi Arabia applicable to review engagements and with International Standard on Review Engagements 2410, "Review of Intcrim Financial Inlormation Pcrlormed by the Independent Auditor of the Entity". A review of interim condensed consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting malleI's, and applying analytical and other review proccdures. A review is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards in the Kingdom of Saudi Arabia and International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant malleI's that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion [lased on our review, nothing has come to our attention that causes us to believe that the accompanying

intcrim condensed consolidated financial statcmcnts arc not preparcd, in all material respects, in accordance with applicable Accounting Standards for Financial Institutions issued by SAMA and with International Accounting Standard No. 34. Other RegulatOlj' MatteI'S As requircd by SAMA, certain capital adequacy information has been disclosed in note (13) of the accompanying interim condensed consolidatcd financial statements. As part of our review, we compared the information in note (13) to the relevant analysis prepared by the Dank for submission to SAMA and found no material inconsistencies.

Dcloitte and Touche Bakr Ahulkhair & Co POBox213 Riyadh 1141 I

Ernst & Young POBox 2732 Riyadh 11461 Kingdom of Saudi Arabia

~'b;'

SakI' A. Abulkhair

Abdulaziz A. AI-Sowailim Certified Public Accountant Registration No. 277

ic Accountant

16 Dhul Hijjah 143411 (21 Octobcr 2013)

ARAB NATIONAL BANK - Saudi Joint Stock Company INTERIM CONSOLIDATED STATEMENT OF FINANCIAL PosmON As at

September 30, 2013

(Unaudited) SAR'OOO

Note

December 31, 2012 (Audited) 5AR'000

September 30, 2012 (Unaudited) SAR'OOO

ASSETS cash and balances with 5AMA Due from banks and other financial institutions

14,557,186

20,334,429

8,751,791

4,899,116

2,240,924

2,901,679

Investments, net

4

28,349,974

24,323,047

26,466,625

Loans and advances, net

5

86,113,740

86,328,608

83,653,091

Investment in associates

456,487

430,046

420,658

Other real estate

136,634

319,006

319,174

Property and equipment, net

1,594,880

1,506,311

1,516,888

Other assets

1,779,349

1,318,115

137,887 ,366

1,156,905 136,639,276

125,348,021

9,190,421

6,549,924

5,414,216

105,205,544

107,560,443

98,272,808

Other liabilities

2,746,322

2,931,822

2,100,207

Debt securities in issue

1,687,500

1,687,500

1,687,500

118,829,787

118,729,689

107,474,731

8,500,000

8,500,000

8,500,000

6,630,000

6,630,000

6,030,000

254,695

244,618

224,971

3,565,523

1,579,657

3,012,636

Total assets

LIABILmES

AND EQUITY

Liabilities Due to banks and other financial institutions Customers' deposits

6

Total liabilities

Equity attributed to equity holders of the Bank Share capital

11

Statutory reserve Other reserves Retained earnings Proposed dividend

850,000

Total equity attributed to equity holders of the Bank

18,950,218

17,804,275

17,767,607

107,361

105,312

105,683

19,057,579

17,909,587

17,873,290

137,887,366

136,639,276

125,348,021

Non-controlling interest Total equity Total liabilities

and equity

The accompanying notes 1 to 15 form an integral part of these interim condensed consolidated financial statements. Abdullah AI-Khalifa

: Chief Finandal OffiC~

Robert Eid

: Managmg Director

Hesham A. Aljabr

: Authorized Board Member

C5) ~ .... 1

ARAB NATIONAL BANK - saudi Joint Stock Company INTERIM CONSOUDATED STATEMENT of INCOME (Unaudited) For the three months ended September 30, 2013 Note

SAR'OOO

September30, 2012

for the njne months ended

September 30, 2013

SAR'OOO

SAR'OOO

September30, 2012 SAR'OOO

Specialcommission income

988,691

954,519

2,925,509

2,772,264

Specialcommission expense

111,882

108,770

436,594

310,988

Net special commission

876,809

845,749

2,488,915

2,461,276

241,270

227,606

804,871

720,624

94,018

63,797

261,981

168,971

240

295

5,211

(1,189)

12,405

5,539

46,034

55,502

2,717

20,641

26,648

75,782

Dividend income

15,476

14,190

50,854

34,815

Other operating income

21,852

9,919

111,950

122,699

1,264,787

1,187,736

3,796,464

3,638,480

292,580

277,919

890,830

805,032

Rent and premises related expenses

37,263

33,077

105,933

95,772

Depreciation and amortization

46,249

47,197

140,395

145,591

Other general and administrative expenses

126,451

112,422

343,527

338,844

Impairment charges for credit losses, net

182,502

151,805

354,305

325,568

Total operating expenses

685,045

622,420

1,834,990

1,710,807

Net operating income

579,742

565,316

1,961,474

1,927,673

9,337

7,337

26,441

18,741

589,079

572,653

1,987,915

1,946,414

48

(2,049)

(218)

589,197

572,701

1,985,866

1,946,196

0.69

0.67

income

Feesand commission income, net Exchangeincome, net Income (loss) from FVIS financial instruments, net Trading income, net Gainsand impairment of non -trading investments, net

Total operating

income

salaries and employee related expenses

Share in earnings of an associate Net income for the period Loss(income) attributed to noncontrolling interest

118

Net income for the period attributable to equity holders of the Bank Basic and fully diluted earnings (in SAR per share)

The accompanying notes 1 to

11

Qeg!,:;

of :ese interim conden:ed co

2.34

2.29

idatedftnancial statements.

x<:L

: •••••••••.. >

ARAB NATIONAL BANK - saudi Joint Stock Company INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE (Unaudited)

INCOME

for the three months ended

Sept 30, 2013

sept 30, 2012

SAR'OOO Net income for the period

For the njne months ended

sept 30, 2012

Sept 30, 2013

5AR'OOO

SAR'OOO

5AR'OOO

589,079

572,653

1,987,915

1,946,414

117,262

48,761

60,421

159,435

(2,658)

(32,566)

(26,475)

(85,157)

Other comprehensive income: Available for sale investments: - Net changes in fair value - Transfers to interim consolidated income statement Cash flows hedges: - Net changes in fair value

22,342

340

(14,318)

(2,456)

- Transfers to interim consolidated income statement

(4,178)

(5,137)

(9,551)

(24,471)

132,768

11,398

10,077

47,351

721,847

584,051

1,997,992

1,993,765

721,965

584,099

1,995,943

1,993,547

(118)

(48)

2,049

218

721,847

584,051

1,997,992

1,993,765

Total comprehensive income for the period

Attributable

to:

Equity holders of the bank Non-controlling

interest

Total comprehensive income for the period

The accompanying notes 1 to 15 form an integral part of these interim condensed consolida

3

c

mancial statements.

ARAB NATIONAL BANK - saudi Joint Stock Company INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the nine months ended September 30, 2013 and 2012 (Unaudited) Attributable to equity holders of the Bank Non

M

2013

Share

Note Balance at beginning of the period Net changes in fair value of cash now hedges Net changes in fair value of available for sale investments Transfers to interim consolidated statement

Statutory

Other

Retained

Proposed

reserve

reserves

earnings

dividends

SAR'OOO

SAR'OOO

capital 5AR'OOO 8,500,000

5AR'OOO 6,630,000

of income Net comprehensive income for the period Net income

244,618

850,000

1,579,657

17,804,275

105,312

5AR'OOO 17,909,587

(14,318)

(14,318)

60,421

60,421

60,421

(36,026)

(36,026)

(36,026) 10,077

10,077

10,077

1,98S,866

1,985,866

2,049

1,987,915

1,985,866

1,995,943

2,049

1,997,992

2012 dividends

(850,000)

of

Total equity

controllin9 Interest 5AR'OOO

(14,318)

for the period

end

5AR'OOO

10,077

Total comprehensive income for the period

Balance at Deriod

Total SAR'OOO

(850,000)

(850,000)

the 8,500,000

6,630,000

254,695

18,950,218

3,565,523

107,361

19,057,579

NonShare capital

2.QU Note Balance at beginning of the period Net changes in fair value of cash now hedges Net changes in fair value

SAR'OOO 8,500,000

Statutory

Other reserve reserves SAR'OOO SAR'OOO

6,030,000

of available for sale investments Transfers to interim consolidated statement of income Net comprehensive income for the period Net income

177,620

1,066,440

dividends SAR'OOO 850,000

notes

6,030,000

1 to 15 form an integral

c?

~

105,465

16,729,525

159,435

159,435

159,435

(109,628)

(109,628)

(109,628)

47,351

47,351

47,351

1,946,196

1,946,196

218

1,946,414

1,946,196

1,993,547

218

1,993,765

(850,000)

8,500,000

16,624,060

(2,456)

47,351

Balance at end of the oeriod

controlling Total equity Total interest SAR'OOO SAR'OOO SAR'OOO

(2,456)

2011 dividends

The accompanying

Proposed

(2,456)

for the period

Total comprehensive income for the period

Retained earnings SAR'OOO

224,971

part of these

4

17,767,607

3,012,636

interim

condensed

(850,000)

(850,000)

consolidated

105,683

financial

17,873,290

statements,


ARAB NATIONAL BANK - Saudi Joint Stock Company INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS For the nine months ended (Unaudited) Note

sept 30, 2013 SAR'OOO

Sept 30, 2012 SAR'OOO

OPERATING ACTIVITIES

Net income for the period Adjustments to reconcile net income for the period to net cash from (used in) operating activities: Accretion of discounts on non-trading investments, net Gainsand impairment on non-trading investments, net Depreciation and amortization Losseson disposal of property and equipment, net Share in earnings of an associate Impairment charges for credit losses, net Net (increase) decrease in operating assets: Statutory deposit with SAMA Due from banks and other financial institutions maturing after ninety days of the acquisition date Investments held at FVIS Loansand advances Other real estate Other assets Net increase (decrease) in operating liabilities: Due to banks and other financial institutions Customers' deposits Other liabilities Net cash from (used in) operating activities INVESTING ACTIVIUES Proceedsfrom sales of and matured non-trading investments Purchaseof non-trading investments Investment in associates Purchaseof property and equipment Proceedsfrom disposal of property and equipment Net cash used in investing activities FINANCING ACTIVIUES Dividends paid Net cash used in financing

1,987,915

1,946,414

(36,232) (26,648) 140,395 822 (26,441) 354,305 2,394,116

(26,909) (75,782) 145,591 36 (18,741) 325,568 2,296,177

(307,590)

(622,551)

53,858 (170,280) 182,372 (584,548)

37,500 (275,310) (11,143,193) (151,165) 311,854

2,640,497 (2,354,899) (378,748) 1,474,778

(3,410,245) 10,413,993 (311,505) (2,854,445)

25,608,068 (29,436,892)

54,495,166 (54,422,177) (52,500) (180,023) 251 (159,283)

(230,022) 236 (4,058,610) (842,808) (842,808)

(842,946) (842,946)

Decrease in cash and cash equivalents

(3,426,640)

(3,856,674)

cash and cash equivalents at the beginning of the period

17,304,744

10,241,180

13,878,104 2,873,261 (434,133)

6,384,506 2,698,700 (307,902)

46,103

156,979

activities

Cash and cash equivalents at the end of the period Specialcommission received during the period

9

Specialcommission paid during the period Supplemental non-cash information Net changes in fair value

The accompanying notes 1 to 15 form an Integral part of these interim condensed consolidated financial statements.

5

ARAB NATIONAL BANK – Saudi Joint Stock Company Notes To The Interim Condensed Consolidated Financial Statements For the nine months ended September 30, 2013 and 2012 (Unaudited) )SAR’000( 1. General Arab National Bank (a Saudi Joint Stock Company, the Bank) was formed pursuant to Royal Decree No. M/38 dated Rajab 18,1399H (June 13, 1979). The Bank commenced business on February 2, 1980 by taking over the operations of Arab Bank Limited in the Kingdom of Saudi Arabia. The Bank operates under Commercial Registration No. 1010027912 dated Rabi Awal 1, 1400H (January 19, 1980) through 148 branches (2012: 143 branches) in the Kingdom of Saudi Arabia and one branch in the United Kingdom. The address of the Bank’s head office is as follows: Arab National Bank P.O. Box 56921 Riyadh 11564 Kingdom of Saudi Arabia The objective of the Bank is to provide a full range of banking services. The Bank also provides its customers noncommission based banking products which are approved and supervised by an independent Shariah Board established by the Bank. The interim condensed consolidated financial statements comprise the financial statements of the Bank and the following subsidiaries: Arab National Bank Investment Company (ANB Invest) In accordance with the Capital Market Authority directives, the Bank has established a wholly owned subsidiary (directly and indirectly) “ANB Invest”, a Saudi limited liability company, registered in the Kingdom of Saudi Arabia under commercial registration No. 1010239908 issued on 26 Shawal 1428H (corresponding to November 7, 2007), to takeover and manage the Bank's investment services and asset management activities related to dealing, managing, arranging, advising and custody of securities regulated by the Capital Market Authority. The subsidiary commenced its operations effective on Muharram 3, 1429H (corresponding to January 12, 2008). Accordingly, the Bank started consolidating the financial statements of the above mentioned subsidiary effective January 12, 2008. Arabian Heavy Equipment Leasing Company (AHEL) A 62.5% owned subsidiary incorporated in the Kingdom of Saudi Arabia, as a Saudi closed joint stock company, under commercial registration No. 1010267489 issued in Riyadh dated 15 Jumada Awal, 1430H (corresponding to May 10, 2009). The company is engaged in leasing of heavy equipments and operating in compliance with Shariah principles. The Bank started consolidating the subsidiary’s financial statements effective May 10, 2009, the date the subsidiary started its operations. 2. Basis of preparation These interim condensed consolidated financial statements are prepared in accordance with the Accounting Standards for Financial Institutions promulgated by the Saudi Arabian Monetary Agency (SAMA) and IAS 34 – Interim Financial Reporting as issued by the international standards accounting board. The Bank also prepares its interim condensed consolidated financial statements to comply with the Banking Control Law, provisions of the Regulations for Companies in the Kingdom of Saudi Arabia and the Bank’s by laws. The interim condensed consolidated financial statements do not include all information and disclosures required in the annual consolidated financial statements and should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2012. These interim condensed consolidated financial statements are expressed in Saudi Arabian Riyals (SAR) and are rounded off to the nearest thousands.

6

ARAB NATIONAL BANK – Saudi Joint Stock Company Notes To The Interim Condensed Consolidated Financial Statements (continued) For the nine months ended September 30, 2013 and 2012 (Unaudited) )SAR’000( 2.

Basis of preparation (continued)

Basis of consolidation The interim condensed consolidated financial statements comprise the interim condensed financial statements of "Arab National Bank" and its subsidiaries, ANB Invest and AHEL (collectively referred to as the Group). The financial statements of the subsidiaries are prepared for the same reporting period as that of the Bank, using consistent accounting policies. Adjustments have been made to the financial statements of the subsidiaries to align them with the Bank’s financial statements. Subsidiaries are all entities over which the Bank has the power to govern the financial and operating policies, so as to obtain benefits from their activities, generally accompanying an ownership interest of more than one half of the voting rights. Subsidiaries are consolidated from the date on which control is transferred to the Bank and cease to be consolidated from the date on which the control is transferred from the Bank. The results of subsidiaries acquired or disposed of during the period, if any, are included in the interim consolidated statement of income from the effective date of acquisition or up to the effective date of disposal, as appropriate. Non-controlling interests represent the portion of net income and net assets not owned, directly or indirectly, by the Bank in its subsidiary and are presented separately in the interim consolidated statement of income and within equity in the interim consolidated statement of financial position, separately from parent shareholders’ equity. Balances and any unrealised gains and losses arising from transactions between the Bank and its subsidiaries are eliminated in preparing the interim condensed consolidated financial statements. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment. 3. Significant accounting policies The accounting policies used in the preparation of these interim condensed consolidated financial statements are consistent with those used for the year ended December 31, 2012 except for the adoption of the following standards which had no significant financial impact on the interim condensed financial statements of the Group.  IAS 1 Presentation of Items of Other Comprehensive Income – Amendments to IAS 1  IAS 1 Clarification of the requirement for comparative information (Amendment)  IAS 34 Interim financial reporting and segment information for total assets and liabilities (Amendment)  sets and Financial Liabilities (Amendment)  IFRS 10 Consolidated Financial Statements and IAS 27 Separate Financial Statements  IFRS 12 Disclosure of Interests in Other Entities  IFRS 13 Fair Value Measurement The Bank has chosen not to early adopt the following standards, which are effective for the Banks on or after 2014 financial reporting year.  

IFRS 10, IFRS 12 and IAS 27 investment entities (Amendments) IAS 32 offsetting Financial Assets and Financial Liabilities

In addition to the above, the Group has currently chosen not to adopt IFRS 9 (2010) – Financial instruments, which has been published, but will not be effective until January 1, 2015. The Group is currently assessing the implication of the above standards and amendments on the Group and the timing of adoption.

7

ARAB NATIONAL BANK – Saudi Joint Stock Company

Notes To The Interim Condensed Consolidated Financial Statements (continued) For the nine months ended September 30, 2013 and 2012 (Unaudited) )SAR’000( 4. Investments, net Investments are classified as follows: September 30, 2013 (Unaudited)

December 31, 2012 (Audited)

24,320

78,178

359,632

Available for sale

12,171,981

9,284,603

10,617,871

Held at amortized cost, net

16,153,673

14,960,266

15,489,122

Total

28,349,974

24,323,047

26,466,625

Held at fair value through income statement (FVIS)

September 30, 2012 (Unaudited)

5. Loans and advances, net Loans and advances (all held at amortized cost) comprise the following: September 30, 2013 (Unaudited)

December 31, 2012 (Audited)

Commercial loans and overdrafts

64,354,509

65,479,763

62,782,391

Consumer loans

22,893,698

21,839,949

21,708,635

371,701

392,840

415,065

87,619,908

87,712,552

84,906,091

1,388,402

1,314,784

1,383,334

Gross loans and advances

89,008,310

89,027,336

86,289,425

Impairment charges for credit losses, net

(2,894,570)

(2,698,728)

(2,636,334)

Loans and advances, net

86,113,740

86,328,608

83,653,091

September 30, 2013 (Unaudited)

December 31, 2012 (Audited)

September 30, 2012 (Unaudited)

Demand

55,718,098

52,349,494

51,793,107

Time

46,648,309

51,248,571

43,277,769

Saving

103,048

103,598

100,752

Others

2,736,089

3,858,780

3,101,180

105,205,544

107,560,443

98,272,808

Credit cards Performing loans and advances Non-performing loans and advances, net

September 30, 2012 (Unaudited)

6. Customers’ deposits

Total

8

ARAB NATIONAL BANK – Saudi Joint Stock Company

Notes To The Interim Condensed Consolidated Financial Statements (continued) For the nine months ended September 30, 2013 and 2012 (Unaudited) )SAR’000( 7. Derivatives The table below sets out the positive and negative fair values of derivative financial instruments, together with their notional amounts. The notional amounts, which provide an indication of the volumes of the transactions outstanding at the end of the period, do not necessarily reflect the amounts of future cash flows involved. These notional amounts, therefore, are neither indicative of the Bank’s exposure to credit risk, which is generally limited to the positive fair value of the derivatives, nor to market risk. September 30, 2013 (Unaudited)

Derivatives held for trading: Commission rate swaps Commission rate futures and options Forward foreign exchange contracts Currency options Derivatives held as fair value hedges: Commission rate swaps Derivatives held as cash flow hedges: Commission rate swaps Total

December 31, 2012 (Audited)

Positive Negative fair value fair value

Notional amount

Positive fair value

Negative fair value

128,975 124,521

6,865,578

70,566

September 30, 2012 (Unaudited)

Notional amount

Positive fair value

Negative fair value

Notional Amount

63,595

6,941,399

70,373

65,135

5,032,830

-

703

-

1,993,975

15,493,676 90,138

58,546

15,882,247

-

-

7,480,129

-

-

63,652

35,371

7,454,226

82,169

56,295

30,038

30,018

9,989,099

6,632

492

5,896,813

5,893

1,537

6,224,073

4,457

97,827

1,426,475

5,990

136,934

3,514,880

2,576

147,510

3,735,003

-

25,762

1,725,000

-

-

-

-

356

712,500

227,122 313,499

34,940,507

31,846,768 169,683

273,084

33,580,628

165,357

257,316

8. Credit related commitments and contingencies The Group’s consolidated credit related commitments and contingencies are as follows: September 30, December 31, 2013 (Unaudited) 2012 (Audited)

September 30, 2012 (Unaudited)

Letters of credit Letters of guarantee Acceptances Irrevocable commitments to extend credit Other

5,888,762 25,243,238 1,772,555 2,533,019 155,112

8,067,242 25,035,170 2,471,696 1,327,141 166,375

6,745,850 23,193,075 1,976,151 1,869,918 174,572

Total

35,592,686

37,067,624

33,959,566

9. Cash and cash equivalents Cash and cash equivalents included in the interim consolidated statement of cash flows comprise the following: September 30, 2013 (Unaudited)

December 31, 2012 (Audited)

September 30, 2012 (Unaudited)

Cash and balances with SAMA excluding statutory deposit

8,978,988

15,063,820

3,482,827

Due from banks and other financial institutions maturing within ninety days of the acquisition date

4,899,116

2,240,924

2,901,679

13,878,104

17,304,744

6,384,506

Total

9

ARAB NATIONAL BANK – Saudi Joint Stock Company Notes To The Interim Condensed Consolidated Financial Statements (continued) For the nine months ended September 30, 2013 and 2012 (Unaudited) )SAR’000( 10. Operating segments The Group’s primary business is conducted in the Kingdom of Saudi Arabia with one international branch located in London, UK (the “branch”). However, the total assets, liabilities, commitments and results of operations of the branch are not material to the Group’s overall interim condensed consolidated financial statements. All operating segments used by the Group meet the definition of reportable segments under IFRS 8. Transactions between the business segments are reported as recorded in the Bank’s transfer pricing system. Segment assets and liabilities comprise operating assets and liabilities, being the majority of the balances. For management purposes the Group is organized into the following major operating segments: Retail banking Deposit, credit and investment products for individuals. Corporate banking Loans, deposits and other credit products for corporate and institutional customers, small to medium sized businesses, and the Bank’s London Branch. Treasury banking Manages the Bank’s trading and investment portfolios and the Bank’s funding, liquidity, currency and commission risks. Investment and brokerage services Investment management services and asset management activities related to dealing, managing, arranging, advising and custody of securities. Other Includes income on capital and unallocated costs, assets and liabilities pertaining to the Head office and other supporting departments. The Group’s total consolidated assets and liabilities as at September 30, 2013 and 2012, its total interim consolidated operating income, expenses and net income and other related information for the nine months period then ended, by operating segments, as reported to senior management, are as follows:

10

ARAB NATIONAL BANK – Saudi Joint Stock Company Notes To The Interim Condensed Consolidated Financial Statements (continued) For the nine months ended September 30, 2013 and 2012 (Unaudited) )SAR’000( 10

Operating segments (continued) September 30, 2013 (Unaudited) Retail banking

Corporate banking

Treasury banking

Investment and brokerage services

Other

Total

Total assets

32,331,854

58,675,683

44,154,751

54,935

2,670,143

137,887,366

Total liabilities

54,783,946

52,884,277

11,023,375

37,077

101,112

118,829,787

1,584,384

1,321,767

679,604

89,424

121,285

3,796,464

1,157,188

531,972

70,409

57,088

18,333

1,834,990

-

-

-

-

26,441

26,441

-

-

-

-

(2,049)

(2,049)

154,541

199,764

-

-

-

354,305

102,938

2,240

2,707

4,708

27,802

140,395

427,196

789,795

609,195

32,336

127,344

1,985,866

Treasury Investment banking and brokerage services 34,772,208 56,936

Other

Total

2,808,869

125,348,021

Total operating income Total operating expenses Share in earnings of an associate Income attributed to non-controlling interest Impairment charges for credit losses, net Depreciation and amortization Net income for the period

September 30, 2012 (Unaudited) Retail banking

Corporate banking

Total assets

30,531,285

57,178,723

Total liabilities

50,182,170

50,128,510

7,038,078

38,299

87,674

107,474,731

1,613,296

1,138,250

688,979

117,042

80,913

3,638,480

1,048,483

468,777

59,028

67,464

67,055

1,710,807

-

-

-

-

18,741

18,741

-

-

-

-

(218)

(218)

130,436

195,132

-

-

-

325,568

117,956

2,511

3,121

5,411

16,592

145,591

564,813

669,473

629,951

49,578

32,381

1,946,196

Total operating income Total operating expenses Share in earnings of an associate Income attributed to non-controlling interest Impairment charges for credit losses, net Depreciation and amortization Net income for the period

11

ARAB NATIONAL BANK – Saudi Joint Stock Company Notes To The Interim Condensed Consolidated Financial Statements (continued) For the nine months ended September 30, 2013 and 2012 (Unaudited) )SAR’000( 11. Share capital and earnings per share At September 30, 2013, the Bank has 850 million shares of SAR 10 each (September 30, 2012: 850 million shares) issued and outstanding. Basic and diluted earnings per share for the periods ended September 30, 2013 and 2012 are calculated by dividing the net income for the periods by 850 million shares.

12. Fair values of financial assets and liabilities The Bank uses the following hierarchy for determining and disclosing the fair value of financial instruments: Level 1: quoted prices in active markets for the same instrument (i.e., without modification or repacking): Level 2: quoted prices in active markets for similar assets and liabilities or other valuation techniques for which all significant inputs are based on observable market data: and Level 3: valuation techniques for which any significant input is not based on observable market data. 2013

Level 1

Level 2

Level 3

Total

Financial assets Financial assets designated at FVIS

-

24,320

-

24,320

10,196,034

1,910,264

65,683

12,171,981

63,652

163,470

-

227,122

10,259,686

2,098,054

65,683

12,423,423

Financial Liabilities Derivative financial instruments

35,371

278,128

-

313,499

Total

35,371

278,128

-

313,499

Financial investments available for sale Derivative financial instruments Total

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair values of on-interim consolidated statement of financial position financial instruments, except for other investments held at amortized cost, held-to-maturity investments which are carried at amortized cost, are not significantly different from the carrying values included in the interim condensed consolidated financial statements. The fair values of loans and advances, commission bearing customers’ deposits, debts securities in issue, due from and due to banks which are carried at amortized cost, are not significantly different from the carrying values included in the interim condensed consolidated financial statements, since the current market commission rates for similar financial instruments are not significantly different from the contracted rates, and for the short duration of due from and due to banks. The estimated fair values of investments held at amortized cost are based on quoted market prices when available or pricing models when used in the case of certain fixed rate bonds. The fair value of these investments was estimated to be SAR 16.2 billion at 30 September 2013.

12

ARAB NATIONAL BANK – Saudi Joint Stock Company Notes To The Interim Condensed Consolidated Financial Statements (continued) For the nine months ended September 30, 2013 and 2012 (Unaudited) )SAR’000( 12. Fair values of financial assets and liabilities (continued) The fair values of derivatives and other off-interim consolidated statement of financial position financial instruments are based on the quoted market prices when available or by using the appropriate valuation technique. The total amount of the changes in fair value recognized in the interim consolidated statement of income, which was estimated using valuation technique at 30 September 2013, is SAR 70 million (30 September 2012: SAR 134 million). 13. Capital adequacy The Group’s objectives when managing capital are, to comply with the capital requirements set by SAMA; to safeguard the Group’s ability to continue as a going concern; and to maintain a strong capital base. The Group monitors the adequacy of its capital using ratios established by SAMA. These ratios measure capital adequacy by comparing the Group’s eligible capital with its statement of financial position assets, commitments and notional amount of derivatives at a weighted amount to reflect their relative risk. SAMA has issued the framework and guidance regarding implementation of the capital reforms under Basel III – which are effective starting January 1, 2013. Accordingly, the Group’s pillar I consolidated Risk Weighted Assets (RWA), total capital and related ratios on a consolidated group basis, are as follows: September 30,2013 (Unaudited)

September 30, 2012 (Unaudited)

114,387,626

107,450,482

9,579,842

8,612,275

793,364

2,887,290

124,760,832

118,950,047

18,950,218

15,685,278

1,382,385

3,525,513

20,332,603

19,210,791

Tier I ratio

15.19%

13.19%

Tier I + Tier II ratio

16.30%

16.15%

Credit Risk RWA Operational Risk RWA Market Risk RWA Total Pillar-I RWA Tier I Capital Tier II Capital Total Tier I & II Capital Capital Adequacy Ratio %

The Group maintains an actively managed capital base to cover risks inherent in the business. The adequacy of the Group's capital is monitored using, among other measures, the rules and ratios established by the Basel Committee on Banking Supervision and adopted by the Saudi Arabian Monetary Agency in supervising the Bank. For the purposes of presentation, the RWAs, total capital and related ratios as at September 30, 2013 are calculated using the framework methodologies defined under the Basel III framework. The comparative balances and ratios as at September 30, 2012 are calculated under Basel II and have not been restated. 14. Comparative figures Certain prior period figures have been reclassified to conform with current period presentation. 15. BASEL III capital structure disclosures Certain quantitative disclosures on the Bank’s capital structure are required to be published on Bank’s website. These disclosures will be made available on the Bank’s website www.anb.com.sa as required by the Saudi Arabian Monetary Agency. Such disclosures are not subject to review or audit by the external auditors.

13

Life Enjoy

" Life is not a problem to be solved but a reality to be experienced! "

Get in touch

Social

© Copyright 2013 - 2019 DOKUMENTIX.COM - All rights reserved.