National Commercial Bank announces its interim financial results for the period ending on 2019-06-30 ( Six Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Total Revenue for Special Commissions/Investments | 4,782,870 | 4,442,130 | 7.67 | 4,863,416 | -1.656 |
| Net Income for Special Commissions/Investments | 3,668,914 | 3,573,432 | 2.671 | 3,561,669 | 3.011 |
| Total operation Profit (Loss) | 5,054,952 | 4,660,554 | 8.462 | 4,952,758 | 2.063 |
| Net Profit (Loss) | 2,685,587 | 2,166,351 | 23.968 | 2,775,543 | -3.241 |
| Total Comprehensive Income | 3,004,126 | 1,429,996 | 110.079 | 3,520,306 | -14.662 |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Total Revenue for Special Commissions/Investments | 9,646,286 | 8,669,652 | 11.264 |
| Net Income for Special Commissions/Investments | 7,230,583 | 6,992,005 | 3.412 |
| Total operation Profit (Loss) | 10,007,710 | 9,439,795 | 6.016 |
| Net Profit (Loss) | 5,461,130 | 4,768,006 | 14.536 |
| Total Comprehensive Income | 6,524,432 | 3,504,155 | 86.191 |
| Total Share Holders Equity (after deducting minority equity) | 67,425,108 | 64,006,760 | 5.34 |
| Assets | 478,643,294 | 455,734,109 | 5.026 |
| Investments | 126,629,790 | 114,977,772 | 10.134 |
| Loans and advances portfolio | 276,267,211 | 266,043,128 | 3.843 |
| Customer deposits | 327,437,090 | 317,652,668 | 3.08 |
| Profit (Loss) per Share | 1.76 | 1.53 | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| Reason for increase (decrease) in net profit for current quarter compared to the same quarter of the previous year | Higher net income derived from higher total operating income and lower operating expenses.
Total operating income increased by 8.5% mainly due to the increase in net special commission income, fees income from banking services, foreign exchange income, investment related income and lower other operating (expense).
Total operating expenses were lower by 1.9% mainly due to the decrease in net impairment charges for financing and advances, net impairment charges on investments, rent and premises-related expenses and salaries and employee-related expenses, while depreciation/amortisation of property, equipment and software, and other general and other administrative expenses increased. |
| Reason for increase (decrease) in net profit for current quarter compared to the previous quarter | Lower net income derived from higher total operating expenses partially offset by an increase in higher total operating income.
Total operating income increased by 2.1% mainly due to the increase in net special commission income, fees income from banking services and foreign exchange income, while investment related income decreased and other operating expenses increased.
Total operating expenses were higher by 13.1% mainly due to higher net impairment charge for financing and advances losses, and higher other general and other administrative expenses, partially offset by decreases in salaries and employee-related expenses, rent and premises-related expenses and net impairment charges on investments. |
| Reason for increase (decrease) in net profit for current period compared to the similar period of the previous year | Higher net income derived from higher total operating income and lower operating expenses.
Total operating income increased by 6.0% mainly due to the increase in net special commission income, investment related income and lower other operating (expense), while fees income from banking services and foreign exchange income decreased.
Total operating expenses were lower by 0.7% mainly due to the decrease in rent and premises related expenses, salaries and employee-related expenses and lower impairment charges on investments, while net impairment charges for financing and advances net, depreciation/amortisation of property, equipment and software, and other general and other administrative expenses increased. |
| Type of the external auditor's opinion | Unmodified opinion |
| Reclassifications in quarter financial result | In pursuance of complying with IFRSs that are endorsed in KSA, the Bank has amended its accounting policy to charge the zakat and income tax expense for the period to the consolidated statement of income whereas the corresponding liability will continue to be recognized in the consolidated statement of financial position. Previously, zakat and income tax was charged directly to the consolidated statement of changes in equity.
Additionally, Some numbers have been re-classified for comparative reasons. |
| Additional Information | Net income before zakat and income tax reached to SAR 3,047Mn for the current quarter against SAR 2,624Mn in the similar quarter of the previous year with an increase of SAR 422Mn. Moreover, net income after zakat and income tax attributable to common equity holders of the bank reached to SAR 2,686Mn for the current quarter against SAR 2,166Mn in the similar quarter of the previous year with an increase of SAR 519Mn.
Net income before zakat and income tax reached to SAR 3,047Mn for the current quarter against SAR 3,192Mn in the previous quarter of the current year with a decrease of SAR 145Mn. Moreover, net income after zakat and income tax attributable to common equity holders of the bank reached to SAR 2,686Mn for the current quarter against SAR 2,776Mn in the previous quarter of the current year with a decrease of SAR 90Mn
Net income before zakat and income tax reached to SAR 6,239Mn for the current period against SAR 5,653Mn in the similar period of the previous year with an increase of SAR 585Mn. Moreover. net income after zakat and income tax attributable to common equity holders of the bank reached to SAR 5,461Mn for the current period against SAR 4,768Mn in the similar period of the previous year with an increase of SAR 693Mn.
Net impairment charge for financing and advances reached to SAR 328Mn for the current quarter against SAR 335Mn in the similar quarter of the previous year with a decrease of SAR 7Mn.
Net impairment charge for financing and advances reached to SAR 472Mn for the current period against SAR 333Mn in the similar period of the previous year with an increase of SAR 139Mn.
EPS for the current and the previous years are calculated by dividing the net income after Zakat and income tax attributable to common equity holders of the bank (adjusted for Tier 1 Sukuk costs) for the periods by the weighted average number of shares outstanding 2,991,988k (2018: 2,990,029k).
Starting from the quarter ended 30 June 2019, Zakat and income tax are to be accrued at end of each financial reporting period and recognized in consolidated statement of income with a corresponding liability recognized in the consolidated statement of financial position in accordance with International Financial Reporting Standards (IFRS) and other standards and pronouncements endorsed by SOCPA.”
*Investment related income includes Income from FVIS instruments, Dividend Income and Gains on non-FVIS financial instruments. |
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