financial-statements

Consolidated Statement of Financial Position

As at December 31, 2023 and 2022

Note

2023

SAR'000

2022

SAR'000

ASSETS

Cash and balances with Saudi Central Bank (SAMA), net

4

26,175,226

33,366,652

Due from banks and other financial institutions, net

5

15,433,725

20,613,232

Positive fair value of derivatives

6

3,668,130

3,790,841

Investments, net

7

58,108,824

52,196,120

- Investment at fair value through income statement (FVIS)

7 a)

2,322,845

1,363,419

- Investment at amortised cost, net

7 a)

34,618,204

33,366,959

- Investments at fair value through other comprehensive income(FVOCI)

7 a)

21,167,775

17,465,742

Loans and advances, net

8

274,398,246

242,364,947

Other assets

11

2,547,120

3,175,946

Investment in associates

9

379,941

371,215

Other real estate

670,470

465,249

Property, equipment and right of use assets, net

10

5,467,247

3,308,655

Total assets

386,848,929

359,652,857

LIABILITIES AND EQUITY

Liabilities

Due to banks and other financial institutions

12

42,464,026

38,760,068

Negative fair value of derivatives

6

3,428,575

2,854,285

Customer deposits

13

254,907,624

240,007,085

Debt securities in issue and term loan

14 a)

13,372,622

8,758,419

Other liabilities

15

12,418,011

13,099,651

Total liabilities

326,590,858

303,479,508

Shareholders’ equity

Share capital

16

30,000,000

30,000,000

Treasury shares

17

(165,912)

Statutory reserve

18

12,953,515

10,942,054

Other reserves

19

(369,203)

(790,260)

Retained earnings

11,277,171

7,500,430

Proposed dividends

29

1,950,000

Equity attributable to the shareholders of the Bank

53,695,571

49,602,224

Tier 1 Sukuk

14 b)

6,562,500

6,571,125

Total equity

60,258,071

56,173,349

Total liabilities and equity

386,848,929

359,652,857

Consolidated Statement of Income

For the years ended December 31, 2023 and 2022

Note

2023

SAR'000

2022

SAR'000

Special commission income

21

20,606,115

12,907,561

Special commission expense

21

8,191,837

2,855,116

Net special commission income

12,414,278

10,052,445

Fee and commission income

22

3,730,796

3,559,071

Fee and commission expense

22

1,346,175

1,130,404

Fee and commission income, net

2,384,621

2,428,667

Exchange income, net

608,106

633,379

Trading income, net

23

419,944

219,029

Dividend income

40,801

79,861

(Losses)/ gains on disposal of non-trading investments, net

24

(43,630)

121,775

Other operating income

25

74,718

64,210

Total operating income, net

15,898,838

13,599,366

Salaries and employee-related expenses

26

2,542,164

2,257,505

Rent and premises-related expenses

219,979

195,409

Depreciation of property, equipment and right of use assets

10

695,356

540,532

Other general and administrative expenses

27

1,463,518

1,336,308

Other operating expenses

47,607

80,423

Total operating expenses before impairment charge

4,968,624

4,410,177

Impairment charge for credit losses and other financial assets, net

8e)

1,875,464

1,027,400

Impairment charge for investments, net

96,224

253,115

Total operating expenses, net

6,940,312

5,690,692

Net operating income

8,958,526

7,908,674

Share in income (losses) of associates, net

12,273

(80,238)

Income before zakat

8,970,799

7,828,436

Zakat

30

924,955

809,114

Net income

8,045,844

7,019,322

Basic and diluted earnings per share (in SAR)

28

2.58

2.32

Consolidated Statement of Comprehensive Income

For the years ended December 31, 2023 and 2022

2023

SAR'000

2022

SAR'000

Net income

8,045,844

7,019,322

Other comprehensive income (OCI):

a) Items that will be reclassified to consolidated statement of income in subsequent periods

- Fair value through other comprehensive income (FVOCI- debt instruments)

- Net change in fair value

211,552

(1,988,932)

- Net amounts transferred to consolidated statement of income

43,630

(86,145)

- Net changes in allowance for expected credit losses (ECL) of debt instruments

98,820

261,430

- Effective portion of net change in fair value of cash flow hedge

(13,118)

149,612

b) Items that will not be reclassified to consolidated statement of income in subsequent periods

- Actuarial (losses) gains on defined benefit plans (note 31 d)

(127,711)

201,103

- Net change in fair value of equity instruments at fair value through other comprehensive income (FVOCI- equity instruments)

207,884

(69,264)

Other comprehensive loss

421,057

(1,532,196)

Total comprehensive income

8,466,901

5,487,126

Consolidated Statement of Changes in Equity

For the years ended December 31, 2023 and 2022

SAR'000

Share

capital

Treasury

shares

Statutory reserve

Other reserves

Retained earnings

Proposed dividends

Equity attributable

to the shareholders

Tier 1 sukuk

Total equity

31 December 2023

Balance at the beginning of the year

30,000,000

-

10,942,054

(790,260)

7,500,430

1,950,000

49,602,224

6,571,125

56,173,349

Total comprehensive income

Net changes in fair values of

- FVOCI -equity instruments

-

-

-

207,884

-

-

207,884

-

207,884

- FVOCI -debt instruments

-

-

-

211,552

-

-

211,552

-

211,552

Net amount reclassified to the consolidated statement of income for FVOCI -debt instruments

-

-

-

43,630

-

-

43,630

-

43,630

Net changes in allowance for expected credit losses on FVOCI -debt instruments

-

-

-

98,820

-

-

98,820

-

98,820

Actuarial gains (Note 31 d)

-

-

-

(127,711)

-

-

(127,711)

-

(127,711)

Net change in fair value of cash flow hedge

-

-

-

(13,118)

-

-

(13,118)

-

(13,118)

Net income

-

-

-

-

8,045,844

-

8,045,844

-

8,045,844

Total comprehensive income

-

-

-

421,057

8,045,844

-

8,466,901

-

8,466,901

Final dividends paid - 2022(note 29)

-

-

-

-

-

(1,950,000)

(1,950,000)

-

(1,950,000)

Tier 1 sukuk costs

-

-

-

-

(310,416)

-

(310,416)

(8,625)

(319,041)

Treasury shares (note 17)

-

(165,912)

-

-

-

-

(165,912)

-

(165,912)

Interim dividend 2023 (note29)

-

-

-

-

(1,947,226)

-

(1,947,226)

-

(1,947,226)

Transfer to statutory reserve (note 18)

-

-

2,011,461

(2,011,461)

-

-

-

-

Balance at the end of the year

30,000,000

(165,912)

12,953,515

(369,203)

11,277,171

-

53,695,571

6,562,500

60,258,071

31 December 2022

Balance at the beginning of the year

30,000,000

-

9,187,224

1,637,436

4,855,111

1,620,000

47,299,771

-

47,299,771

Total comrehensive income

Net changes in fair values of

- FVOCI -equity instruments

-

-

-

(69,264)

-

-

(69,264)

-

(69,264)

- FVOCI -debt instruments

-

-

-

(1,988,932)

-

-

(1,988,932)

-

(1,988,932)

Net amount reclassified to the consolidated statement of income for FVOCI -debt instruments

-

-

-

(86,145)

-

-

(86,145)

-

(86,145)

Net changes in allowance for expected credit losses on FVOCI -debt instruments

-

-

-

261,430

-

-

261,430

-

261,430

Actuarial gains( note31 d)

201,103

-

-

201,103

201,103

Net change in fair value of cash flow hedge

-

-

-

149,612

-

-

149,612

-

149,612

Net income

-

-

-

-

7,019,322

-

7,019,322

-

7,019,322

Total comprehensive income

-

-

-

(1,532,196)

7,019,322

-

5,487,126

-

5,487,126

Disposal of FVOCl-equity instruments

-

-

-

(895,500)

895,500

-

-

-

-

Final dividends paid - 2021

-

-

-

-

-

(1,620,000)

(1,620,000)

-

(1,620,000)

Tier 1 sukuk issued

-

-

-

-

-

-

-

6,571,125

6,571,125

Tier 1 sukuk costs

-

-

-

-

(64,673)

-

(64,673)

-

(64,673)

Interim dividend - 2022 (note 29)

-

-

-

-

(1,500,000)

-

(1,500,000)

-

(1,500,000)

Transfer to statutory reserve(note 18)

-

-

1,754,830

(1,754,830)

-

-

-

-

Final proposed dividend - 2022 (note 29)

-

-

-

-

(1,950,000)

1,950,000

-

-

-

Balance at the end of the year

30,000,000

-

10,942,054

(790,260)

7,500,430

1,950,000

49,602,224

6,571,125

56,173,349

Consolidated Statement of Cash Flows

For the years ended December 31, 2023 and 2022

Note

2023

SAR'000

2022

SAR'000

OPERATING ACTIVITIES

Income before zakat

8,970,799

7,828,436

Adjustments to reconcile net income for the period to net cash from operating activities:

Accretion of discounts and amortisation of premium n non-FVIS instruments, net

(453,673)

(89,042)

Losses/ (gains) on disposal of non-trading investments, net

43,630

(121,775)

Gains on trading investments, net

(68,021)

(37,288)

Losses/ (gains)on sale of property and equipment, net

4,566

(20,833)

Dividend income

(40,801)

(79,861)

Depreciation of property, equipment and right of use assets

695,356

540,532

Share in (income)/ losses of associates, net

(12,273)

80,238

Impairment charge for credit losses and other financial assets, net

8 e)

1,875,464

1,027,400

Interest on lease liabilities

(17,936)

(19,214)

Impairment charge for investments,net

96,224

253,115

11,093,335

9,361,708

Net (increase) decrease in operating assets:

Statutory deposit with SAMA

(824,568)

(2,165,728)

Due from banks and other financial institutions maturing after three months from date of acquisition

-

500,000

Positive fair value of derivatives

122,711

(2,376,326)

Investments at FVIS

(891,405)

(149,518)

Loans and advances, net

(33,867,292)

(26,105,305)

Other real estate

(205,221)

(151,685)

Other assets

628,826

(1,405,255)

Net increase (decrease) in operating liabilities:

Due to banks and other financial institutions

3,703,958

(4,374,072)

Negative fair value of derivatives

574,290

1,394,141

Customer deposits

14,900,539

28,328,788

Principal on lease liabilities

(225,354)

(204,509)

Other liabilities

90,785

514,094

(4,899,396)

3,166,333

Zakat paid

(1,282,325)

(1,168,028)

Net cash (used in) from operating activities

(6,181,721)

1,998,305

INVESTING ACTIVITIES

Proceeds from sales and maturities of investments not held as FVIS instruments

10,011,007

137,722,310

Purchase of investments not held as FVIS instruments

(14,417,241)

(132,916,940)

Purchase of property and equipment

(2,946,789)

(1,297,439)

Proceeds from sale of property and equipment

88,275

175,187

Advance against purchase of property and equipment

-

-

Net cash (used in) from investing activities

(7,264,748)

3,683,118

FINANCING ACTIVITIES

Debt securities in issue and term loan,net

4,614,203

-

Tier 1 sukuk issuance

14

(8,625)

6,571,125

Dividend paid

(3,878,282)

(3,108,480)

Tier 1 sukuk related costs

(310,416)

(64,673)

Purchase of treasury shares

(165,912)

-

Net cash from financing activities

250,968

3,397,972

(Decrease) increase in cash and cash equivalents

(13,195,501)

9,079,395

Cash and cash equivalents at beginning of the year

41,486,081

32,406,686

Cash and cash equivalents at end of the year

32

28,290,580

41,486,081

Special commission received during the year

Special commission paid during the year

Supplemental non-cash information

Net changes in fair value and transfers to consolidated statement of income

449,948

(1,994,729)

Right of use (ROU) assets

(67,514)

(20,743)

Lease liabilities

(75,990)

(11,164)