Banque Saudi Fransi : Basel III Disclosure – Capital Structure Q3 2022

TABLE 2: CAPITAL STRUCTURE - SEP 2022

Balance sheet - Step 1 (Table 2(b)) (Figures in SAR 000's)

	Balance sheet in	Adjustment of banking	Under regulatory
	Published financial	associates / other	scope of
	statements	entities (*)	consolidation
	( C )	( D )	( E )
Assets
Cash and balances at central banks	12,427,738		12,427,738
Due from banks and other financial institutions	4,507,303		4,507,303
Investments, net	43,341,480		43,341,480
Positive fair value derivative	6,743,596		6,743,596
Loans and advances, net	158,481,354		158,481,354
Investment in associates	9,695		9,695
Property and equipment, net	1,720,117		1,720,117
Other assets	4,427,416		4,427,416
Total assets	231,658,699	0	231,658,699

Liabilities

Due to SAMA & Banks and other financial institutions

Customer deposits

Negative fair value derivative Debt securities in issue Other liabilities

Total liabilities

Equity

20,094,160		20,094,160
157,820,917		157,820,917
7,463,672		7,463,672
0		0
8,475,240		8,475,240
193,853,989	0	193,853,989

Paid up share capital	12,053,572		12,053,572
Statutory reserves	12,053,572		12,053,572
General reserve	982,857		982,857
Other reserves	(2,194,487)		(2,194,487)
Retained earnings	10,001,114		10,001,114
Minority Interest	0		0
Treasury shares	(91,918)		(91,918)
Proposed dividend	0		0
Tier 1 Sukuk	5,000,000		5,000,000
Total liabilities and equity	231,658,699	0	231,658,699

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TABLE 2: CAPITAL STRUCTURE - SEP 2022

Balance sheet - Step 2 (Table 2(c)) (Figures in SAR 000's)

	Balance sheet in	Adjustment of	Under regulatory
	Published financial	banking associates /	scope of
	statements	other entities	consolidation	Reference
	( C )	( D )	( E )
Assets
Cash and balances at central banks	12,427,738		12,427,738
Due from banks and other financial institutions	4,507,303		4,507,303
of which eligible provisions	1,355		1,355	A
Investments, net	43,341,480		43,341,480
of which eligible provisions	23,926		23,926	A
Positive fair value derivative	6,743,596		6,743,596
Loans and advances, net	158,481,354		158,481,354
of which eligible provisions	2,229,090		2,229,090	A
Investment in associates	9,695		9,695
Property and equipment, net	1,720,117		1,720,117
Other assets	4,427,416		4,427,416
of which eligible provisions	289		289	A
Total assets	231,658,699	0	231,658,699
Liabilities
Due to Banks and other financial institutions	20,094,160		20,094,160
Customer deposits	157,820,917		157,820,917
Negative fair value derivative	7,463,672		7,463,672
Debt securities in issue	0		0
of which Tier 2 capital instruments	0		0	B
Other liabilities	8,475,240		8,475,240
of which eligible provisions	23,915		23,915	A
Total liabilities	193,853,989	0	193,853,989
Equity
Paid up share capital	12,053,572		12,053,572
of which amount eligible for CET1	12,053,572		12,053,572	C
of which amount eligible for AT1	0		0
Statutory reserves	12,053,572		12,053,572	D
General reserve	982,857		982,857	E
Other reserves	(2,194,487)		(2,194,487)	F
Retained earnings	10,001,114		10,001,114	G
SAMA supervisory provision adjustment	575,250		575,250	H
Minority Interest	0		0
Treasury shares	(91,918)		(91,918)
Proposed dividends	0		0	I
Tier 1 Sukuk	5,000,000		5,000,000	J
Total liabilities and equity	231,658,699	0	231,658,699

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TABLE 2: CAPITAL STRUCTURE - SEP 2022

Common template (transition) - Step 3 (Table 2(d)) I (Figures in SAR 000's)

(From January 2013 to 2018 identical to post 2018) With amount subject to Pre- Basel III Treatment

												Source based on
												reference
					Amounts1	numbers / letters
		Components1 of			of the balance
				subject to	sheet under the
		regulatory			Pre - Basel	regulatory scope
		capital reported			III	of consolidation
		by the bank			treatment	from step 2
	Common Equity Tier 1 capital: Instruments and reserves
1	Directly issued qualifying common share capital (and equivalent for non-joint stock companies) plus	12,053,572
	related stock surplus										C
2	Retained earnings (including Statutory and General reserves)	23,612,793										D+E+G+I+H
3	Accumulated other comprehensive income (and other reserves)	(2,194,487)										F
4	Directly issued capital subject to phase out from CET1 (only applicable to non-joint stock companies)	-
5	Common share capital isued by subsidiaries and held by third parties (amount allowed in group CET1)	-			-
6	Common Equity Tier 1 capital before regulatory adjustments	33,471,878
	Common Equity Tier 1 capital: Regulatory adjustments
7	Prudential valuation adjustments	-									-
8	Goodwill (net of related tax liability)	-									-
9	Other intangibles other than mortgage-servicing rights (net of related tax liability)	-			-
10	Deferred tax assets that rely on future profitability excluding those arising from temporary differences	-
	(net of related tax liability)									-
11	Cash-flow hedge reserve	1,195,787									-
12	Shortfall of provisions to expected losses	-									-
13	Securitisation gain on sale (as set out in paragraph 562 of Basel II framework)	-									-
14	Gains and losses due to changes in own credit risk on fair valued liabilities	-									-
15	Defined-benefit pension fund net assets	-									-
16	Investments in own shares (if not already netted off paid-in capital on reported balance sheet)	(91,918)									-
17	Reciprocal cross-holdings in common equity	-			-
18	Investments in the capital of banking, financial and insurance entities that are outside the scope of
	regulatory consolidation, net of eligible short positions, where the bank does not own more than 10% of	-
	the issued share capital (amount above 10% threshold)				-
19	Significant investments in the common stock of banking, financial and insurance entities that are
	outside the scope of regulatory consolidation, net of eligible short positions (amount above 10%	-
	threshold)										-
20	Mortgage servicing rights (amount above 10% threshold)	-			-
21	Deferred tax assets arising from temporary differences (amount above 10% threshold, net of related tax	-
	liability)									-
22	Amount exceeding the 15% threshold	-									-
23	of which: significant investments in the common stock of financials	-									-
24	of which: mortgage servicing rights	-									-
25	of which: deferred tax assets arising from temporary differences	-									-
26	National specific regulatory adjustments	-			-
	REGULATORY ADJUSTMENTS APPLIED TO COMMON EQUITY TIER 1 IN RESPECT OF
	AMOUNTS SUBJECT TO PRE-BASEL III TREATMENT	-
	OF WHICH: [INSERT NAME OF ADJUSTMENT]	-
	OF WHICH:…	-
27	Regulatory adjustments applied to Common Equity Tier 1 due to insufficient Additional Tier 1 and Tier 2	-
	to cover deductions
28	Total regulatory adjustments to Common equity Tier 1	1,103,869
29	Common Equity Tier 1 capital (CET1)	34,575,747
	Additional Tier 1 capital: instruments
30	Directly issued qualifying Additional Tier 1 instruments plus related stock surplus	5,000,000										J
31	of which: classified as equity under applicable accounting standards	-
32	of which: classified as liabilities under applicable accounting standards	-
33	Directly issued capital instruments subject to phase out from Additional Tier 1	-
34	Additional Tier 1 instruments (and CET1 instruments not included in row 5) issued by subsidiaries and	-
	held by third parties (amount allowed in group AT1)
35	of which: instruments issued by subsidiaries subject to phase out	-
36	Additional Tier 1 capital before regulatory adjustments	5,000,000
	Additional Tier 1 capital: regulatory adjustments
37	Investments in own Additional Tier 1 instruments	-									-
38	Reciprocal cross-holdings in Additional Tier 1 instruments	-			-
39	Investments in the capital of banking, financial and insurance entities that are outside the scope of
	regulatory consolidation, net of eligible short positions, where the bank does not own more than 10% of
	the issued common share capital of the entity (amount above 10% threshold)	-			-
40	Significant investments in the capital of banking, financial and insurance entities that are outside the
	scope of regulatory consolidation (net of eligible short positions)	-			-
41	National specific regulatory adjustments	-
	REGULATORY ADJUSTMENTS APPLIED TO ADDITIONAL TIER 1 IN RESPECT OF AMOUNTS
	SUBJECT TO PRE-BASEL III TREATMENT	-
	OF WHICH: [INSERT NAME OF ADJUSTMENT]	-
	OF WHICH: …	-
42	Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover deductions	-
43	Total regulatory adjustments to Additional Tier 1 capital	-
44	Additional Tier 1 capital (AT1)	5,000,000
45	Tier 1 capital (T1 = CET1 + AT1)	39,575,747

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TABLE 2: CAPITAL STRUCTURE - SEP 2022

Common template (transition) - Step 3 (Table 2(d)) ii (Figures in SAR 000's)

(From January 2013 to 2018 identical to post 2018) With amount subject to Pre- Basel III Treatment

					Amounts1			Source based on reference
		Components1 of regulatory				numbers / letters of the
			subject to			balance sheet under the
		capital reported by the		Pre - Basel			regulatory scope of
		bank			III treatment consolidation from step 2
	Tier 2 capital: instruments and provisions
46	Directly issued qualifying Tier 2 instruments plus related stock surplus		0										B
47	Directly issued capital instruments subject to phase out from Tier 2		0
48	Tier 2 instruments (and CET1 and AT1 instruments not included in rows 5 or 34) issued by subsidiaries		-
	and held by third parties (amount allowed in group Tier 2)
49	of which: instruments issued by subsidiaries subject to phase out		-
50	Provisions		2,278,575										A
51	Tier 2 capital before regulatory adjustments		2,278,575
	Tier 2 capital: regulatory adjustments
52	Investments in own Tier 2 instruments		-								-
53	Reciprocal cross-holdings in Tier 2 instruments		-								-
54	Investments in the capital of banking, financial and insurance entities that are outside the scope of
	regulatory consolidation, net of eligible short positions, where the bank does not own more than 10% of		-
	the issued common share capital of the entity (amount above the 10% threshold)										-
55	Significant investments in the capital banking, financial and insurance entities that are outside the scope		-
	of regulatory consolidation (net of eligible short positions)									-
56	National specific regulatory adjustments
	REGULATORY ADJUSTMENTS APPLIED TO TIER 2 IN RESPECT OF AMOUNTS SUBJECT TO	-
	PRE-BASEL III TREATMENT
	OF WHICH: [INSERT NAME OF ADJUSTMENT]	-
	OF WHICH: …	-
57	Total regulatory adjustments to Tier 2 capital		0
58	Tier 2 capital (T2)		2,278,575
59	Total capital (TC = T1 + T2)		41,854,322
	RISK WEIGHTED ASSETS IN REPECT OF AMOUNTS SUBJECT TO PRE-BASEL III TREATMENT	-
	OF WHICH: [INSERT NAME OF ADJUSTMENT]	-
	OF WHICH: …	-
60	Total risk weighted assets		211,807,224
	Capital ratios
61	Common Equity Tier 1 (as a percentage of risk weighted assets)		16.32%
62	Tier 1 (as a percentage of risk weighted assets)		18.68%
63	Total capital (as a percentage of risk weighted assets)		19.76%
64	Institution specific buffer requirement (minimum CET1 requirement plus capital conservation buffer plus
	countercyclical buffer requirements plus G-SIB buffer requirement expressed as a percentage of risk
	weighted assets)		7.558%
65	of which: capital conservation buffer requirement		2.500%
66	of which: bank specific countercyclical buffer requirement		0.058%
67	of which: G-SIB/D-SIB buffer requirement		0.500%
68	Common Equity Tier 1 available to meet buffers (as a percentage of risk weighted assets)		14.185%
	National minima (if different from Basel 3)
69	National Common Equity Tier 1 minimum ratio (if different from Basel 3 minimum)		n/a
70	National Tier 1 minimum ratio (if different from Basel 3 minimum)		n/a
71	National total capital minimum ratio (if different from Basel 3 minimum)		n/a
	Amounts below the thresholds for deduction (before risk weighting)
72	Non-significant investments in the capital of other financials		-
73	Significant investments in the common stock of financials		-
74	Mortgage servicing rights (net of related tax liability)		-
75	Deferred tax assets arising from temporary differences (net of related tax liability)		-
	Applicable caps on the inclusion of provisions in Tier 2
76	Provisions eligible for inclusion in Tier 2 in respect of exposures subject to standardised approach (prior
	to application of cap)		2,278,575										A
77	Cap on inclusion of provisions in Tier 2 under standardised approach		2,449,210
78	Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal ratings-based
	approach (prior to application of cap)		n/a
79	Cap for inclusion of provisions in Tier 2 under internal ratings-based approach		n/a
	Capital instruments subject to phase-out arrangements (only applicable between 1 Jan 2018
	and 1 Jan 2022)
80	Current cap on CET1 instruments subject to phase out arrangements		-
81	Amount excluded from CET1 due to cap (excess over cap after redemptions and maturities)		-
82	Current cap on AT1 instruments subject to phase out arrangements		-
83	Amount excluded from AT1 due to cap (excess over cap after redemptions and maturities)		-
84	Current cap on T2 instruments subject to phase out arrangements		-
85	Amount excluded from T2 due to cap (excess over cap after redemptions and maturities)		-

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TABLE 2: CAPITAL STRUCTURE - SEP 2022

Main features template of regulatory capital instrument - (Table 2(e))

		Components1 of regulatory
		capital reported by the bank
1	Issuer	Banque Saudi Fransi
2	Unique identifier	N/A
3	Governing law(s) of the instrument	Saudi Arabian law
	Regulatory treatment
4	Transitional Basel III rules	Additional Tier I
5	Post-transitional Basel III rules	Eligible
6	Eligible at solo/group/group & solo	Group & Solo
7	Instrument type	Subordinated sukuk
8	Amount recognied in regulatory capital (in SAR 000' s)	SAR 5,000,000
9	Par value of instrument (in SAR 000' s)	SAR 5,000,000
10	Accounting classification	Equity
11	Original date of issuance	04 November 2020
12	Perpetual or dated	Perpetual
13	Original maturity date	N/A
14	Issuer call subject to prior supervisory approval	Yes
		In compliance with Basel III, call
		date is equal to or greater than 5
		years and the Sukuk may be
		redeemed early due to a capital
		event, tax event or at the option
		of the Bank as described in the
		terms and conditions of the
15	Option call date, contingent call dates and redemption amount	Sukuk
16	Subsequent call dates if applicable	As above
	Coupons / dividends
17	Fixed or Floating dividend/coupon	Fixed
18	Coupon rate and any related index	4.5% p.a.
19	Existence of a dividend stopper	Yes
20	Fully discretionary, partially discretionary or mandatory	Fully discretionary
21	Existence of step up or other incentive to redeem	No
22	Non cumulative or cumulative	Non Cumulative
23	Convertible or non-convertible	Non Convertible
24	If convertible, conversion trigger (s)	N/A
25	If convertible, fully or partially	N/A
26	If convertible, conversion rate	N/A
27	If convertible, mandatory or optional conversion	N/A
28	If convertible, specify instrument type convertible into	N/A
29	If convertible, specify issuer of instrument it converts into	N/A
30	Write-down feature	Yes
		Terms of contract of the
		instrument provide the
		legal basis for SAMA to trigger
		write-down (a
31	If write-down,write-down trigger (s)	contractual approach)
32	If write-down, full or partial	Write-down fully or partial
33	If write-down, permanent or temporary	Permanent
34	If temporary writedown, description of the write-up mechansim	N/A
	Position in subordination hierarchy in liquidation (specify instrument type
35	immediately senior to instrument)	Subordinated
36	Non-compliant transitioned features	N/A
37	If yes, specify non-compliant features	N/A

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