Arab National 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 | 1,954 | 1,642.2 | 18.986 | 1,936.9 | 0.882 |
| Net Income for Special Commissions/Investments | 1,437.5 | 1,271.7 | 13.037 | 1,364.8 | 5.326 |
| Total operation Profit (Loss) | 1,733.9 | 1,646.2 | 5.327 | 1,633.2 | 6.165 |
| Net Profit (Loss) | 894.2 | 747.2 | 19.673 | 779 | 14.788 |
| Total Comprehensive Income | 887.9 | 822.6 | 7.938 | 912.7 | -2.717 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Total Revenue for Special Commissions/Investments | 3,890.8 | 3,173 | 22.622 |
| Net Income for Special Commissions/Investments | 2,802.3 | 2,465.8 | 13.646 |
| Total operation Profit (Loss) | 3,367.1 | 3,179.4 | 5.903 |
| Net Profit (Loss) | 1,673.2 | 1,411.6 | 18.532 |
| Total Comprehensive Income | 1,800.6 | 1,562.8 | 15.216 |
| Total Share Holders Equity (after deducting minority equity) | 27,394 | 24,717 | 10.83 |
| Assets | 170,901 | 167,849 | 1.818 |
| Investments | 32,452 | 26,943 | 20.446 |
| Loans and advances portfolio | 119,746 | 117,486 | 1.923 |
| Customer deposits | 131,912 | 129,334 | 1.993 |
| Profit (Loss) per Share | 1.11 | 0.94 | |
| All figures are in (Millions) 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 | Net profit for the quarter increased due to the increase in total operating income by 5.3% resulting mainly from the increases in net special commission income and dividend income, offset by decreases in net fee and commission income, net exchange income, net trading income and other operating income, in addition to the increase of share in earnings of associates. Total operating expenses also decreased by 1.5% resulting mainly from the decrease in rent and related expenses (resulting mainly from the adoption of IFRS 16) and impairment charges for credit losses offset by increase in salaries and employees related expenses, depreciation expenses (resulting mainly from the adoption of IFRS 16), other general and administrative expenses and impairment charges for other financial assets. |
| Reason for increase (decrease) in net profit for current quarter compared to the previous quarter | The net profit for the quarter increased due to the increase in total operating income by 6.2% resulting mainly from the increase in net special commission income, fee and commission income, unrealised gain on FVTPL financial instruments, dividend income and other operating income, in addition to the increase of share in earnings of associates. Total operating expenses increase by 0.1% resulting mainly from increase in impairment charges for credit losses offset by decrease in salaries and employees related expenses, depreciation expenses other general and administrative expenses and reversal of impairment charges for other financial assets. |
| Reason for increase (decrease) in net profit for current period compared to the similar period of the previous year | Net profit for the period increased due to the increased in total operating income by 5.9% resulting mainly from the increases in net special commission income and dividend income, offset by decreases in net fee and commission income, net exchange income, net trading income and other operating income, in addition to the increase of share in earnings of associates. Total operating expenses remained unchanged however, decrease is noticed in rent and related expenses (resulting mainly from the adoption of IFRS 16) and impairment charges for credit losses offset by increase in salaries and employees related expenses, depreciation expenses (resulting mainly from the adoption of IFRS 16), other general and administrative expenses and impairment charges for other financial assets. |
| Type of the external auditor's opinion | Unmodified opinion |
| External auditor's report containing reservation | None |
| 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 reason |
| Additional Information | "Net income before zakat and income tax reached to SAR 1,025 Million for the current quarter against SAR 921 Million in the similar quarter of the previous year with an increase of SAR 104 Million. Moreover, net income after zakat and income tax attributable to common equity holders of the bank reached to SAR 894 Million for the current quarter against SAR 747 Million in the similar quarter of the previous year with an increase of SAR 147 Million.
Net income before zakat and income tax reached to SAR 1,025 Million for the current quarter against SAR 920 Million in the previous quarter of the current year with an increase of SAR 105 Million. Moreover, net income after zakat and income tax attributable to common equity holders of the bank reached to SAR 894 Million for the current quarter against SAR 779 Million in the previous quarter of the current year with an increase of SAR 115 Million. Net income before zakat and income tax reached to 1,944 Million for the current period against 1,739 Million in the similar period of the previous year with an increase of 205 Million. Moreover. net income after zakat and income tax attributable to common equity holders of the bank reached to 1,673 Million for the current period against 1,412 Million in the similar period of the previous year with an increase of 261 Million. Further, the shareholders' extraordinary general assembly in their meeting held on March 27, 2019 approved a bonus issue of 500 million shares of SAR 10 each, through transfer of SAR 3 billion and SAR 2 billion from statutory reserves and retained earnings, respectively. Accordingly, earning per share is calculated by dividing the net income after zakat and income tax attributable to the equity holders of the Bank for the period ended June 30, 2018 by 1,500 million shares to give a retroactive effect of change in the number of shares increased as a result of the bonus share issue.
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. |
| Attached Documents |
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