Saudi Awwal Bank : BASEL III Pillar 3 Disclosures at 30 June 2023

Saudi Awwal Bank

Pillar 3 Disclosures - 30 June 2023

Saudi Awwal Bank

Pillar 3 Disclosures 30 June 2023

KM1 - Key metrics (at consolidated group level)

CCA - Main features of regulatory capital instruments and of other TLAC- eligible instruments CC1 - Composition of regulatory capital

CC2 - Reconciliation of regulatory capital to balance sheet ENC: Asset encumbrance

OV1 - Overview of RWA CR1 - Credit quality of assets

CR2 - Changes in stock of defaulted loans and debt securities CR3 - Credit risk mitigation techniques - overview

CR4 - Standardised approach - credit risk exposure and Credit Risk Mitigation (CRM) effects CR5 - Standardised approach - exposures by asset classes and risk weights

CCR1 - Analysis of counterparty credit risk (CCR) exposure by approach

CCR3 - Standardised approach of CCR exposures by regulatory portfolio and risk weights CCR5 - Composition of Collateral for CCR Exposure

CCR8 - Exposures to central counterparties MR1 - Market risk under standardised approach CVA1: The reduced basic approach for CVA (BA-CVA) CVA2: The full basic approach for CVA (BA-CVA)

LR1 - Summary comparison of accounting assets vs leverage ratio exposure measure LR2 - Leverage ratio common disclosure template

CCyB1 - Geographical distribution of credit exposures used in the countercyclical buffer LIQ1 - Liquidity Coverage Ratio (LCR)

LIQ2 - Net Stable Funding Ratio (NSFR)

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Saudi Awwal Bank

Pillar 3 Disclosures 30 June 2023

KM1: Key metrics (at consolidated group level) (Figures in SAR 000's)

Available capital (amounts)

1	Common Equity Tier 1 (CET1)
1a	Fully loaded ECL accounting model
2	Tier 1
2a	Fully loaded ECL accounting model Tier 1
3	Total capital
3a	Fully loaded ECL accounting model total capital
Risk-weighted assets (amounts)
4	Total risk-weighted assets (RWA)
4a	Total risk-weighted assets (pre-floor)
Risk-based capital ratios as a percentage of RWA
5	CET1 ratio (%)
5a	Fully loaded ECL accounting model CET1 (%)
5b	CET1 ratio (%) (pre-floor ratio)
6	Tier 1 ratio (%)
6a	Fully loaded ECL accounting model Tier 1 ratio (%)
6b	Tier 1 ratio (%) (pre-floor ratio)
7	Total capital ratio (%)
7a	Fully loaded ECL accounting model total capital ratio (%)
7b	Total capital ratio (%) (pre-floor ratio)

Additional CET1 buffer requirements as a percentage of RWA

• Capital conservation buffer requirement (2.5% from 2019) (%)
  9 Countercyclical buffer requirement (%)

1. Bank G-SIB and/or D-SIB additional requirements (%)
2. Total of bank CET1 specific buffer requirements (%) (row 8 + row 9 + row 10)
3. CET1 available after meeting the bank's minimum capital requirements (%) Basel III leverage ratio
4. Total Basel III leverage ratio exposure measure
5. Basel III leverage ratio (%) (including the impact of any applicable temporary exemption of central bank reserves)

14a Fully loaded ECL accounting model Basel III leverage ratio (including the impact of any applicable temporary exemption of central bank reserves) (%)

14b Basel III leverage ratio (%) (excluding the impact of any applicable temporary exemption of central bank reserves)

14c Basel III leverage ratio (%) (including the impact of any applicable temporary exemption of central bank reserves) incorporating mean values for SFT assets

14d Basel III leverage ratio (%) (excluding the impact of any applicable temporary exemption of central bank reserves) incorporating mean values for SFT assets

Liquidity Coverage Ratio (LCR)

1. Total high-quality liquid assets (HQLA)
2. Total net cash outflow
3. LCR ratio (%)

Net Stable Funding Ratio (NSFR)

1. Total available stable funding
2. Total required stable funding
3. NSFR ratio

a	b	c	d	e
Jun-23	Mar-23	Dec-22	Sep-22	Jun-22
47,033,351	47,479,334	45,236,926	44,117,150	44,847,812
45,990,286	46,262,422	43,846,169	42,552,549	43,109,367
47,033,351	47,479,334	45,236,926	44,117,150	44,847,812
45,990,286	46,262,422	43,846,169	42,552,549	43,109,367
52,877,981	53,240,890	51,032,068	49,770,293	50,538,135
51,834,797	52,023,978	49,641,312	48,205,693	48,799,690
284,628,078	276,097,045	256,252,391	245,627,470	244,067,818
284,628,078	276,097,045	256,252,391	245,627,470	244,067,818
16.52%	17.20%	17.65%	17.96%	18.38%
16.16%	16.76%	17.11%	17.32%	17.66%
16.52%	17.20%	17.65%	17.96%	18.38%
16.52%	17.20%	17.65%	17.96%	18.38%
16.16%	16.76%	17.11%	17.32%	17.66%
16.52%	17.20%	17.65%	17.96%	18.38%
18.58%	19.28%	19.91%	20.26%	20.71%
18.21%	18.84%	19.37%	19.63%	19.99%
18.58%	19.28%	19.91%	20.26%	20.71%
2.50%	2.50%	2.50%	2.50%	2.50%
0.036%	0.01%	0.01%	0.03%	0.01%
0.50%	0.50%	0.50%	0.50%	0.50%
3.04%	3.01%	3.01%	3.03%	3.01%
13.49%	14.19%	14.64%	14.93%	15.36%
410,117,874	402,342,673	439,898,722	417,332,704	369,852,938
11.47%	11.80%	10.28%	10.57%	12.13%
11.21%	11.50%	9.97%	10.20%	11.66%
11.21%	11.50%	9.97%	10.20%	11.66%
11.21%	11.50%	9.97%	10.20%	11.66%
11.21%	11.50%	9.97%	10.20%	11.66%
96,006,267	94,357,438	87,322,535	84,144,949	73,765,644
53,580,021	45,575,840	50,793,513	46,968,532	46,747,709
179.18%	207.03%	171.92%	179.15%	157.80%
211,852,483	211,485,333	203,404,980	200,745,200	205,608,674
167,580,458	161,679,701	158,908,356	158,411,135	153,855,597
126.42%	130.81%	128.00%	126.72%	133.64%

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Saudi Awwal Bank

Pillar 3 Disclosures 30 June 2023

CCA: Main features of regulatory capital instruments and of other TLAC-eligible instruments (Figures in SAR 000's)

		a
		Quan ta ve / qualita veinforma on
1	Issuer	Saudi Awwal Bank(SAB)
	Unique identifier (eg Committee on Uniform Security Identification Procedures (CUSIP),
2	International	ISIN No.SA153VK0GKJ8
	Securities Identification Number (ISIN) or Bloomberg identifier for private placement)
3	Governing law(s) of the instrument	The instrument is governed by the laws of the Kingdom of SaudiArabia
	Means by which enforceability requirement of Section 13 of the TLAC Term Sheet is
3a	achieved (for other	NA
	TLAC-eligible instruments governed by foreign law)
4	Transitional Basel III rules	Tier 2
5	Post-transitional Basel III rules	Eligible
6	Eligible at solo/group/group and solo	Solo
7	Instrument type (refer to SACAP)	Subordinated Sukuk
8	Amount recognised in regulatory capital (currency in millions, as of most recent reporting	SAR 5,000mil
	date)
9	Par value of instrument	SAR 5,000mil
10	Accounting classification	Liability - amortised cost
11	Original date of issuance	22 July 2020
12	Perpetual or dated	Dated
13	Original maturity date	22 July 2030
14	Issuer call subject to prior SAMA approval	Yes
		Call option only available after 5 years or for a regulatory or tax
		event, 22 July 2025 as the date for redemption, SAB shall be
15	Optional call date, contingent call dates and redemption amount	entitled to redeem in whole, but not in part, by giving not less than
		thirty (30) days' not more than sixty (60) days' notice to the
		Sukukholders
16	Subsequent call dates, if applicable	As above
	Coupons / dividends
17	Fixed or floating dividend/coupon	Floating
18	Coupon rate and any related index	6 months SIBOR + 195bps
19	Existence of a dividend stopper	No
20	Fully discretionary, partially discretionary or mandatory	Mandatory
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	Writedown feature	Yes
31	If writedown, writedown trigger(s)	Terms of contract of the instrument provide the legal basis forSAMA to trigger write-down (a contractual approach)
32	If writedown, full or partial	Written down fully or partial
33	If writedown, permanent or temporary	Permanent
34	If temporary write-down, description of writeup mechanism	N/A
34a	Type of subordination	N/A
	Position in subordination hierarchy in liquidation (specify instrument type immediately
35	senior to	Subordinated. Senior bondholders are immediately senior to thisinstrument.
	instrument in the insolvency creditor hierarchy of the legal entity concerned).
36	Non-compliant transitioned features	N/A
37	If yes, specify non-compliant features	N/A

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Saudi Awwal Bank

Pillar 3 Disclosures 30 June 2023

CC1: Composition of regulatory capital (Figures in SAR 000's)

Common Equity Tier 1 capital: instruments and reserves

• Directly issued qualifying common share (and equivalent for non-joint stock companies) capital plus related stock surplus

• Retained earnings

• Accumulated other comprehensive income (and other reserves)

• Directly issued capital subject to phase-out from CET1 capital (only applicable to non- joint stock companies)

• Common share capital issued by subsidiaries and held by third parties (amount allowed in group CET1 capital)

• Common Equity Tier 1 capital before regulatory adjustments Common Equity Tier 1 capital: regulatory adjustments
  7 Prudent valuation adjustments

8	Goodwill (net of related tax liability)	-
9	Other intangibles other than mortgage servicing rights (MSR) (net of related tax	-
liability)

1. Deferred tax assets (DTA) that rely on future profitability, excluding those arising from temporary differences (net of related tax liability)
2. Cash flow hedge reserve
3. Shortfall of provisions to expected losses
4. Securitisation gain on sale (as set out in SACAP4.1.4)
5. Gains and losses due to changes in own credit risk on fair valued liabilities
6. Defined benefit pension fund net assets
7. Investments in own shares (if not already subtracted from paid-in capital on reported balance sheet)
8. Reciprocal cross-holdings in common equity
   Investments in the capital of banking, financial and insurance entities that are outside
9. the scope of regulatory consolidation, where the bank does not own more than 10% of the issued share capital (amount above 10% threshold)
   Significant investments in the common stock of banking, financial and insurance
10. entities that are outside the scope of regulatory consolidation (amount above 10% threshold)
11. MSR (amount above 10% threshold)

a

Amounts

20,547,945

9,119,444

28,068,289

-

-

57,735,679

-

9,035,605

1,666,722

-

-

-

-

-

-

-

-

-

-

-

b

Source based on reference

numbers/letters of the balance

sheet under the regulatory

scope of consolidation

Commentary to explain any significant changes over the reporting period and the key drivers of such change

No material change

No material change

No material change

No material change

No material change

No material change

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