Saudi Awwal Bank
(formerly known as The Saudi British Bank)
Interim Condensed Consolidated Financial Statements
For the six month period ended
30 June 2023
(Unaudited)
Saudi Awwal Bank (formerly known as The Saudi British Bank)
CONTENTS OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Page No. | |||
Independent auditors' review report on the interim condended consolidated financial statements | 1 | ||
Interim condensed consolidated statement of financial position | |||
Interim condensed consolidated statement of income - Unaudited | |||
Interim condensed consolidated statement of comprehensive income - Unaudited | 4 | ||
Interim condensed consolidated statement of changes in equity - Unaudited | 5 | ||
Interim condensed consolidated statement of cash flows - Unaudited | 6 | ||
Notes to the interm condensed consolidated financial statements | |||
1. | General | 7 | |
2. | Basis of preparation | 8 | |
3. | Basis of consolidation | 8 | |
4. | Accounting policies and impact of changes due to adoption of new standards | 8 | |
5. | Cash and balances with SAMA | 10 | |
6. | Due from banks and other financial institutions, net | 10 | |
7. | Investments, net | 11 | |
8. | Loans and advances, net | 13 | |
9. | Investment in an associate | 14 | |
10. | Goodwill and other intangibles | 15 | |
11. | Derivatives | 15 | |
12. | Customers' deposits | 16 | |
13. | Debt securities in issue | 16 | |
14. | Commitments and contingencies | 16 | |
15. | Basic and diluted earnings per share | 17 | |
16. | Zakat and income tax | 17 | |
17. | Cash and cash equivalents | 18 | |
18. | Operating segments | 18 | |
19. | Financial risk management | 20 | |
20. | Fair values of financial instruments | 21 | |
21. | Capital adequacy | 23 | |
22. | Dividend | 24 | |
23. | IBOR Transition (Interest Rate Benchmark Reforms) | 24 | |
24. | Discontinued operations | 24 | |
25. | Business Combination | 24 | |
26. | Comparative figures | 25 | |
27. | Subsequent event | 25 | |
28. | Board of Directors' approvals | 25 |
KPMG Professional Services
Riyadh Front, Airport Road
P.O. Box 92876
Riyadh 11663
Kingdom of Saudi Arabia
INDEPENDENT AUDITORS' REVIEW REPORT ON THE
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
To: The shareholders of Saudi Awwal Bank (formerly known as The Saudi British Bank) (A Saudi Joint Stock Company)
Introduction
We have reviewed the accompanying interim condensed consolidated statement of financial position of Saudi Awwal Bank (formerly known as The Saudi British Bank) ("the Bank") and its subsidiaries (collectively referred to as "the Group") as at 30 June 2023, and the interim condensed consolidated statements of income and comprehensive income for the three-month and six-month periods then ended, and the interim condensed consolidated statements of changes in equity and cash flows for the six-month period then ended, and other explanatory notes (collectively referred to as "the interim condensed consolidated financial statements"). The Board of Directors are responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with the International Accounting Standard 34: Interim Financial Reporting ("IAS 34") as endorsed in the Kingdom of Saudi Arabia. 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 the International Standard on Review Engagements 2410: Review of Interim Financial Information Performed by the Independent Auditor of the Entity as endorsed in the Kingdom of Saudi Arabia. A review of interim financial information 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 the International Standards on Auditing as endorsed in the Kingdom of Saudi Arabia, 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 IAS 34 as endorsed in the Kingdom of Saudi Arabia.
Other regulatory matters
As required by the Saudi Central Bank ("SAMA"), certain capital adequacy information has been disclosed in note 21 to the accompanying interim condensed consolidated financial statements. As part of our review, we compared the information in note 21 to the relevant analysis prepared by the Bank for its submission to SAMA and found no material inconsistencies.
PricewaterhouseCoopers | KPMG Professional Services |
Mufaddal A. Ali | |
Certified Public Accountant | Certified Public Accountant |
License number: 447 | License number: 348 |
2 August 2023 | |
(15 Muharram 1445 AH) | |
PricewaterhouseCoopers, License No. 25 | KPMG Professional Services |
Kingdom Tower, P.O. Box 8282, Riyadh 11482 | (Professional Closed Joint Stock Company) |
Kingdom of Saudi Arabia | Paid-up capital SR 40,000,000 |
T: +966 (11) 211-0400 F: +966 (11) 211-0401 | C.R. No. 1010425494 |
www.pwc.com/middle-east | kpmg.com/sa |
Saudi Awwal Bank (formerly known as The Saudi British Bank)
Interim condensed consolidated statement of financial position
As at 30 | As at 31 | As at 30 | ||
June 2023 | December 2022 | June 2022 | ||
Unaudited | Audited | Unaudited | ||
Notes | SAR' 000 | SAR' 000 | SAR' 000 | |
ASSETS | ||||
Cash and balances with Saudi Central Bank ("SAMA") | 5 | 15,937,530 | 19,258,717 | 24,716,348 |
Due from banks and other financial institutions, net | 6 | 6,018,502 | 5,871,533 | 9,140,612 |
Assets classified as held for sale | - | - | 1,305,454 | |
Positive fair value derivatives, net | 11 | 2,490,654 | 2,538,074 | 1,554,439 |
Investments, net | 7 | 93,529,882 | 86,363,159 | 73,063,646 |
Loans and advances, net | 8 | 198,671,023 | 183,132,249 | 176,214,326 |
Investment in an associate | 9 | 423,793 | 599,289 | 548,030 |
Other assets | 3,451,384 | 2,228,977 | 1,896,306 | |
Property, equipment and right of use assets, net | 3,687,844 | 3,621,644 | 3,419,524 | |
Goodwill and other intangibles, net | 10 | 10,702,327 | 10,837,035 | 10,680,387 |
Total assets | 334,912,939 | 314,450,677 | 302,539,072 | |
LIABILITIES AND EQUITY | ||||
Liabilities | ||||
Due to banks and other financial institutions | 32,957,105 | 25,517,303 | 22,627,082 | |
Customers' deposits | 12 | 222,733,814 | 214,278,851 | 207,451,005 |
Negative fair value derivatives, net | 11 | 2,137,416 | 1,907,436 | 1,165,074 |
Liabilities directly associated with assets classified | ||||
as held for sale | - | - | 805,178 | |
Debt securities in issue | 13 | 5,167,354 | 5,114,836 | 5,065,915 |
Other liabilities | 15,224,639 | 12,949,047 | 11,518,101 | |
Total liabilities | 278,220,328 | 259,767,473 | 248,632,355 | |
Equity | ||||
Equity attributable to equity holders of the Bank | ||||
Share capital | 20,547,945 | 20,547,945 | 20,547,945 | |
Share premium | 8,524,882 | 8,524,882 | 8,524,882 | |
Statutory reserve | 20,547,945 | 20,547,945 | 20,547,945 | |
Other reserves | (1,004,538) | (1,182,348) | (535,287) | |
Retained earnings | 8,076,377 | 6,244,780 | 4,722,016 | |
Total equity attributable to equity holders of the Bank | 56,692,611 | 54,683,204 | 53,807,501 | |
Total equity attributable to non-controlling interest | - | - | 99,216 | |
Total equity | 56,692,611 | 54,683,204 | 53,906,717 | |
Total liabilities and equity | 334,912,939 | 314,450,677 | 302,539,072 |
The accompanying notes 1 to 28 form an integral part of these interim condensed consolidated financial statements.
Lama Ghazzaoui | Tony Cripps |
Chief Financial Officer | Managing Director & Authorized Member |
Saudi Awwal Bank (formerly known as The Saudi British Bank) Interim Condensed Consolidated Financial Statements
2
Saudi Awwal Bank (formerly known as The Saudi British Bank)
Interim condensed consolidated statement of income - Unaudited
For three month ended | For six month ended | ||||
30 June 2023 | 30 June 2022 | 30 June 2023 | 30 June 2022 | ||
Notes | SAR'000 | SAR'000 | SAR'000 | SAR'000 | |
Continuing operations | |||||
Special commission income | 4,088,927 | 2,012,867 | 7,890,041 | 3,602,443 | |
Special commission expense | (1,561,588) | (294,607) | (2,828,666) | (470,530) | |
Net special commission income | 2,527,339 | 1,718,260 | 5,061,375 | 3,131,913 | |
Fee and commission income | 781,695 | 705,553 | 1,558,600 | 1,378,778 | |
Fee and commission expense | 26 | (512,434) | (463,037) | (1,005,637) | (875,406) |
Net fee and commission income | 269,261 | 242,516 | 552,963 | 503,372 | |
Exchange income, net | 208,407 | 180,765 | 413,974 | 359,371 | |
Income from FVSI financial instruments | 54,384 | 92,142 | 275,135 | 196,288 | |
Dividend income | 705 | - | 705 | - | |
Losses on FVOCI debt instruments, net | - | - | (4,892) | - | |
(Losses) / gains on amortised cost investments, net | - | - | (15,043) | 30,505 | |
Other operating income, net | 6,645 | 8,254 | 98 | 33,013 | |
Total operating income | 3,066,741 | 2,241,937 | 6,284,315 | 4,254,462 | |
Provision for expected credit losses, net | 19 (a) | (138,524) | (135,896) | (367,488) | (195,678) |
Operating expenses | |||||
Salaries and employee related expenses | (528,754) | (434,847) | (1,038,314) | (846,246) | |
Rent and premises related expenses | (13,664) | (9,922) | (31,478) | (22,224) | |
Depreciation and amortization | (110,291) | (115,760) | (227,173) | (231,557) | |
General and administrative expenses | 26 | (343,278) | (302,292) | (705,130) | (603,876) |
Total operating expenses | (995,987) | (862,821) | (2,002,095) | (1,703,903) | |
Income from operating activities | 1,932,230 | 1,243,220 | 3,914,732 | 2,354,881 | |
Share in earnings of an associate | 9 | 46,747 | 53,342 | 76,462 | 120,885 |
Net income for the period before Zakat and income tax | 1,978,977 | 1,296,562 | 3,991,194 | 2,475,766 | |
Provision for Zakat and income tax | 16 | (429,129) | (202,923) | (676,776) | (366,190) |
Net income for the period after Zakat and income tax | |||||
from continuing operations | 1,549,848 | 1,093,639 | 3,314,418 | 2,109,576 | |
Net loss from discontinued operations | 24 | - | (11,914) | - | (23,653) |
Net income for the period after Zakat and income tax | 1,549,848 | 1,081,725 | 3,314,418 | 2,085,923 | |
Attributable to: | |||||
Equity holders of the Bank | 1,549,848 | 1,082,670 | 3,314,418 | 2,088,893 | |
Non-controlling interest | - | (945) | - | (2,970) | |
Net income for the period after Zakat and income tax | 1,549,848 | 1,081,725 | 3,314,418 | 2,085,923 | |
Basic and diluted earnings per share (in SAR) from | |||||
continuing operations attributable to equity holders of | |||||
the Bank | 15 | 0.75 | 0.53 | 1.61 | 1.03 |
Basic and diluted losses per share (in SAR) from | |||||
discontinued operations attributable to equity holders | |||||
of the Bank | 15 | - | - | - | (0.01) |
Basic and diluted earnings per share (in SAR) | 15 | 0.75 | 0.53 | 1.61 | 1.02 |
The accompanying notes 1 to 28 form an integral part of these interim condensed consolidated financial statements.
Lama Ghazzaoui | Tony Cripps |
Chief Financial Officer | Managing Director & Authorized Member |
Saudi Awwal Bank (formerly known as The Saudi British Bank) Interim Condensed Consolidated Financial Statements
3
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The Saudi British Bank SJSC published this content on 03 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2023 06:54:14 UTC.