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Deloitte.

Report on Review of Interim Condensed Consolidated Financial Statements To the Shareholders of Arab National Bank (A Saudi Joint Stock Company)

Introduction We have reviewed the accompanying interim consolidated statement of financial position of Arab National Bank (the "Bank") and its subsidiaries (collectively referred to as "the Group") as at September 30, 2012, the related interim consolidated statements of income 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 (12) for the nine month period then ended. The Bank's management is responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with applicable Accounting Standards for Financial Institutions, certain capital adequacy disclosure requirements issued by the Saudi Arabian Monetary Agency ("SAMA") 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 the Kingdom of Saudi Arabia applicable to review engagements and with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed 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 matters, and applying analytical and other review procedures. 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 matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with applicable Accounting Standards for Financial Institutions issued by SAMA and with International Accounting Standard No. 34.

Other Regulatory Matters As required by SAMA, certain capital adequacy information has been disclosed in note (12) of the accompanying interim condensed consolidated financial statements. As part of our review, we compared the information in note (12) to the relevant analysis prepared by the Bank for submission to SAMA and found no material inconsistencies.

Deloitte and Touche Bakr Abulkhair & Co

Ernst & Young POBox 2732 Riyadh 11461 Kingdom of Saudi Arabia

P. O. Box 213 Riyadh 11411 Kingdom of Saudi Arabia

Ehsan A. Makhdoum Certified Public Accountant Registration No. 358

ahad M. Al Toaimi Certified Public Accountant Registration No. 354 23 Dhul-Qadah 1433H (9 October 2012)

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

(Unaudited) SAR'OOO

December 31, 2011 (Audited) SAR'OOO

cash and balances with SAMA

8,751,791

13,352,854

11,960,044

Due from banks and other financial institutions

2,901,679

1,572,239

1,916,957

4

26,466,625

26,082,198

26,813,874

5

83,653,091

72,843,770

71,692,973

Investment in associates

420,658

349,417

341,369

Other real estate

319,174

168,009

127,095

Property and equipment, net

1,332,429

1,283,565

1,192,048

Other assets

1,502,574

1,922,253

2,622,810

125,348,021

117,574,305

116,667,170

5,414,216

8,824,461

9,989,686

98,272,808

87,858,815

85,771,092

Other liabilities

2,100,207

2,474,004

2,545,164

Debt securities in issue

1,687,500

1,687,500

1,687,500

107,474,731

100,844,780

99,993,442

8,500,000

8,500,000

8,500,000

6,030,000

6,030,000

5,480,000

224,971

177,620

78,420

3,012,636

1,066,440

2,508,893

September 30, 2012

Note

September 30, 2011 (Unaudited) SAR'OOO

ASSETS

Investments,

net

Loans and advances, net

Total assets

LIABILITIES 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 Non-controlling

17,767,607

16,624,060

16,567,313

105,683

105,465

106,415

17,873,290

16,729,525

16,673,728

125,348,021

117,574,305

116,667,170

interest

Total equity Total liabilities and equity

The accompanying notes 1 to 12 form an integral part of these interim condensed consolidated financial statements.

=

Abdullah AI-Khalifa

: Chief Financial Officer<

Robert Eid

: Managing Director

Hesham A. Aljabr

: Authorized Board Member

1

~.l

ARAB NATIONAL BANK - Saudi Joint Stock Company INTERIM CONSOLIDATED INCOME STATEMENT (Unaudited) For the three months ended September 30, 2012 Note

September 30, 2011

SAR'OOO

SAR'OOO

For the nine months ended September 30, 2012 SAR'OOO

September 30, 2011 SAR'OOO

Special commission income

954,519

840,935

2,772,264

2,590,386

Special commission expense

108,770

58,649

310,988

208,679

Net special commission income

845,749

782,286

2,461,276

2,381,707

Fees and commission income, net

218,753

186,386

693,831

549,538

63,797

86,170

168,971

243,843

295

(820)

(1,189)

2,755

5,539

34,815

55,502

81,068

Gains and impairment of non -trading investments, net

20,641

16,170

75,782

33,038

Dividend income

14,190

13,943

34,815

30,820

Other operating income

18,772

27,116

149,492

95,556

1,187,736

1,146,066

3,638,480

3,418,325

277,919

244,823

805,032

773,522

Rent and premises related expenses

33,077

32,392

95,772

92,797

Depreciation and amortization

42,290

45,989

130,872

141,531

117,329

111,011

353,563

299,208

Impairment charges for credit losses, net

151,805

198,599

325,568

321,629

Total operating expenses

622,420

632,814

1,710,807

1,628,687

Net operating income

565,316

513,252

1,927,673

1,789,638

7,337

5,726

18,741

14,120

572,653

518,978

1,946,414

1,803,758

48

198

(218)

(502)

572,701

519,176

1,946,196

1,803,256

0.67

0.61

2.29

2.12

Exchange income, net Income (loss) from FVIS financial instruments, net Trading income, net

Total operating income

Salaries and employee related expenses

Other general and administrative

expenses

Share in earnings of an associate

Net income for the period Loss (income) attributed to noncontrolling interest

Net income for the period attributable to equity holders of the Bank Basic and fully diluted earnings (in 11 SAR per share)

The accompanying notes 1 to 12 form an integral

these interim condensed consolidated financial statements.

2 ~

~

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

INCOME

For the three months ended

Sept 30, 2011

Sept 30, 2012

SAR'OOO

SAR'OOO

Net income for the period

For the nine months ended

Sept 30, 2012 SAR'OOO

Sept 30, 2011 SAR'OOO

572,653

518,978

1,946,414

1,803,758

48,761

(69,590)

159,435

179,344

(32,566)

(22,352)

(85,157)

(44,041)

340

(417)

(2,456)

25,843

(5,137)

(2,906)

(24,471)

(37,860)

11,398

(95,265)

47,351

123,286

584,051

423,713

1,993,765

1,927,044

584,099

423,911

1,993,547

1,926,542

(48)

(198)

218

502

584,051

423,713

1,993,765

1,927,044

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

Total comprehensive income for the period

Attributable

to:

Equity holders of the bank Non-controlling

interest

Total comprehensive income for the period

ese interim condensed consolidated financial statements.

The accompanying notes 1 to 12 form an integral pa

3

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

Sept 30, 2012 SAR'OOO

Sept 30, 2011 SAR'OOO

OPERATING ACTIVITIES Net income for the period Adjustments to reconcile net income to net cash used in operating activities:

1,946,414

1,803,758

Accretion of discounts on non-trading Gains and impairment on non-trading Depreciation and amortization Losses (gains) on disposal of property Share in earnings of an associate Impairment charges for credit losses,

(26,909) (75,782) 130,872 36 (18,741) 325,568 2,281,458

(10,770) (33,038) 141,531 (11,962) (14,120) 321,629 2,197,028

(622,551)

(354,073)

investments, net investments, net and equipment, net 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 Loans and advances Other real estate Other assets

37,500 (275,310) (11,143,193) (151,165) 326,573

75,457 1,204,285 (5,830,772) (26,832) (747,295)

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

(2,107,118) 1,572,479 (58,456) (4,075,297)

Net increase (decrease) in operating liabilities: Due to banks and other financial institutions Customers' deposits Other liabilities

Net cash used in operating activities INVESTING ACTIVITIES Proceeds from sales of and matured non-trading investments Purchase of non-trading investments Investment in associates Purchase of property and equipment Proceeds from disposal of property and equipment

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

Net cash (used in) from investing activities

42,004,034 (36,996,356) (95,442) 34,577 4,946,813

FINANCING ACTIVITIES Dividends paid

Net cash used in financing activities (Decrease) increase in cash and cash equivalents Cash and cash equivalents at the beginning of the period

Cash and cash equivalents at the end of the period Special commission received during the period Special commission paid during the period

9

(842,946) (842,946)

(651,192) (651,192)

(3,856,674)

220,324

10,241,180

9,162,764

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

2,602,262

9,383,088 (227,833)

Supplemental non-cash information Net changes in fair value

156,979

205,187

The accompanying notes 1 to 12 form an integral part of these interim condensed consolidated financial statements.

ARAB NATIONAL BANK – Saudi Joint Stock Company

Notes To The Interim Condensed Consolidated Financial Statements For the nine months ended September 30, 2012 and 2011 (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 143 branches (2011: 142 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 commission 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. The Bank also prepares its interim condensed consolidated financial statements to comply with the Banking Control Law and the Regulations for Companies in the Kingdom of Saudi Arabia. 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, 2011. 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, 2012 and 2011 (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 income statement 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 income statement 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. 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, 2011 except for the adoption of amendments to “IFRS 7 - Financial instruments disclosure: Transfers of financial assets” which had no significant financial impact on the interim condensed financial statements of the Group. The Bank has chosen not to early adopt the following standards, which are effective for the Banks 2013 financial reporting year. · · · · · · · · ·

IAS 1 Amendments IFRS 10 IFRS 12 IFRS 13 IAS 19 Revised 2011 IAS 28 Revised 2011 IAS 27 IAS 24 Amendments to IAS 32 and IFRS 7

-

Presentation of items of other comprehensive income Consolidated financial statements Disclosure of interests in other entities Fair value measurement Employee benefits Investments in associates and joint ventures Separate financial statements Related party disclosure Financial instruments on asset and liability offsetting

In addition to the above, the Group has currently chosen not to early 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, 2012 and 2011 (Unaudited) (SAR’000) 4. Investments, net Investments are classified as follows: September 30, 2012 (Unaudited)

December 31, 2011 (Audited)

359,632

84,322

82,445

Available for sale

10,617,871

10,972,464

11,199,958

Held at amortized cost, net

15,489,122

15,025,412

15,531,471

Total

26,466,625

26,082,198

26,813,874

September 30, 2012 (Unaudited)

December 31, 2011 (Audited)

September 30, 2011 (Unaudited)

Commercial loans and overdrafts

62,782,391

53,195,837

52,306,356

Consumer loans

21,708,635

19,974,729

19,393,230

415,065

493,625

529,815

84,906,091

73,664,191

72,229,401

1,383,334

1,784,476

1,882,420

Gross loans and advances

86,289,425

75,448,667

74,111,821

Impairment charges for credit losses, net

(2,636,334)

(2,604,897)

(2,418,848)

Loans and advances, net

83,653,091

72,843,770

71,692,973

September 30, 2012 (Unaudited)

December 31, 2011 (Audited)

Demand

51,793,107

46,524,569

46,622,667

Time

43,277,769

38,032,054

36,426,860

Saving

100,752

105,533

120,107

Others

3,101,180

3,196,659

2,601,458

98,272,808

87,858,815

85,771,092

Held at fair value through income statement (FVIS)

September 30, 2011 (Unaudited)

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

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

6. Customers’ deposits

Total

8

September 30, 2011 (Unaudited)

ARAB NATIONAL BANK – Saudi Joint Stock Company

Notes To The Interim Condensed Consolidated Financial Statements (continued) For the nine months ended September 30, 2012 and 2011 (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, 2012 (Unaudited) Positive Negative fair value fair value

Notional amount

December 31, 2011 (Audited) Positive fair value

Negative fair value

September 30, 2011 (Unaudited)

Notional amount

Positive fair value

Negative fair value

Notional Amount

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

70,373

65,135

5,032,830

111,409

102,394

7,044,639

159,212

148,831

8,380,940

703

-

1,993,975

-

-

37,500

-

-

-

90,138

58,546

15,882,247

90,713

60,122

10,161,226

103,839

78,017

10,757,579

5,893

1,537

6,224,073

10,058

5,115

3,618,975

7,005

4,279

3,356,917

2,576

147,510

3,735,003

653

147,672

4,183,646

-

189,168

6,017,040

-

356

712,500

23,031

5,798

1,957,500

22,608

3,634

1,113,750

169,683

273,084

33,580,628

235,864

321,101

27,003,486

292,664

423,929

29,626,226

8. Credit related commitments and contingencies The Group’s consolidated credit related commitments and contingencies are as follows: September 30, December 31, 2012(Unaudited) 2011 (Audited)

September 30, 2011 (Unaudited)

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

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

5,509,306 19,609,187 2,962,509 1,663,043 275,084

6,524,528 19,134,731 2,180,253 1,989,234 275,085

Total

33,959,566

30,019,129

30,103,831

9. Cash and cash equivalents Cash and cash equivalents included in the interim consolidated statement of cash flows comprise the following: September 30, 2012 (Unaudited)

December 31, 2011 (Audited)

September 30, 2011 (Unaudited)

Cash and balances with SAMA excluding statutory deposit

3,482,827

8,706,441

7,466,131

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

2,901,679

1,534,739

1,916,957

Total

6,384,506

10,241,180

9,383,088

9

ARAB NATIONAL BANK – Saudi Joint Stock Company

Notes To The Interim Condensed Consolidated Financial Statements (continued) For the nine months ended September 30, 2012 and 2011 (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, 2012 and 2011, 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, 2012 and 2011 (Unaudited) (SAR’000) 10

Operating segments (continued)

Total assets

30,531,285

September 30, 2012 (Unaudited) Corporate Treasury Investment banking banking and brokerage services 57,178,723 34,772,208 56,936

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

1,873

130,872

669,473 629,951 49,578 September 30, 2011 (Unaudited)

32,381

1,946,196

Retail banking

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

564,813

Total

2,808,869

125,348,021

Other

Total

37,882,782

Investment and brokerage services 47,856

2,838,982

116,667,170

42,146,627

11,691,179

33,318

377,641

99,993,442

1,641,599

1,078,525

304,294

96,988

296,919

3,418,325

1,018,765

461,037

62,251

63,082

23,552

1,628,687

-

-

-

-

14,120

14,120

-

-

-

-

(502)

(502)

119,618

202,011

-

-

-

321,629

126,980

2,633

3,136

7,217

1,565

141,531

622,834

617,488

242,043

33,906

286,985

1,803,256

Retail banking

Corporate banking

Treasury banking

Total assets

26,639,841

49,257,709

Total liabilities

45,744,677

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

Other

11

ARAB NATIONAL BANK – Saudi Joint Stock Company

Notes To The Interim Condensed Consolidated Financial Statements (continued) For the nine months ended September 30, 2012 and 2011 (Unaudited) (SAR’000) 11. Share capital and earnings per share At September 30, 2012, the Bank has 850 million shares of SAR 10 each (September 30, 2011: 850 million shares) issued and outstanding. During the nine months period ended September 30, 2011: 200 million bonus shares of SAR 10 each were issued after approval of the shareholders at their extraordinary general assembly meeting held at March 27, 2011. Basic and diluted earnings per share for the periods ended September 30, 2012 and 2011 are calculated by dividing the net income for the periods by 850 million. 12. 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. The following table showing for the Bank’s pillar I Risk Weighted Assets, Tier I and Tier II Capital adequacy Ratios

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 % Tier I ratio Tier I + Tier II ratio

September 30,2012 (Unaudited)

September 30, 2011 (Unaudited)

107,450,482

93,017,350

8,612,275

8,251,238

2,887,290

762,018

118,950,047

102,030,606

15,685,278

14,667,839

3,525,513

3,648,053

19,210,791

18,315,892

13.19%

14.38%

16.15%

17.95%

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.

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