| Element List |
Explanation |
| Increase (Decrease) in Net Profit for Current Quarter Compared to Same Quarter Last Year is Attributed to |
Net profit for the quarter increased due to the increase in total operating income by 3.1% resulting mainly from the increases in net special commission income, net fee and commission income and unrealized gains on FVTPL financial instruments offset by decreases in net exchange income, net trading income, dividend income and other operating income. Total operating expenses also decreased by 3.7% resulting mainly from the decrease in rent and premises related expenses (resulting mainly from the adoption of IFRS 16), other general and administrative expenses 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), and impairment charges for other financial assets in addition to the decrease of share in earnings of associates. |
| Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to |
The net profit for the quarter decreased due to the increase in in total operating expenses by 6.5% resulting mainly from the increase in impairment charges for credit losses, Impairment charge of other financial assets and salaries and employees related expenses offset by decrease in depreciation expenses and rent and premises related expenses in addition to the decrease of share in earnings of associates. Total operating income increase by 0.2% resulting mainly from increase in fee and commission income, exchange income, unrealised gain on FVTPL financial instruments, trading income and other operating income offset by decrease in net special commission income and dividend income. |
| Increase (Decrease) in Net Profit for Current Period Compared to the Same Period Last Year is Attributed to |
Net profit for the period increased due to the increased in total operating income by 4.9% 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, unrealized gains on FVTPL financial instruments, net trading income and other operating income in addition to the decrease of share in earnings of associates. Total operating expenses decreased by 1.3% resulting mainly from the decrease in rent and premises 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. |
| Basis of the External Auditor's Opinion |
Unmodified opinion |
| Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion |
None |
| Reclassification of Comparison Items |
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 952 Million for the current quarter against SAR 889 Million in the similar quarter of the previous year with an increase of SAR 63 Million. Moreover, net income after zakat and income tax attributable to common equity holders of the bank reached to SAR 835 Million for the current quarter against SAR 731 Million in the similar quarter of the previous year with an increase of SAR 104 Million.Net income before zakat and income tax reached to SAR 952 Million for the current quarter against SAR 1,025 Million in the previous quarter of the current year with decrease of SAR 73 Million. Moreover, net income after zakat and income tax attributable to common equity holders of the bank reached to SAR 835 Million for the current quarter against SAR 894 Million in the previous quarter of the current year with decrease of SAR 59 Million.Net income before zakat and income tax reached to 2,896 Million for the current period against 2,628 Million in the similar period of the previous year with an increase of 268 Million. Moreover, net income after zakat and income tax attributable to common equity holders of the bank reached to 2,508 Million for the current period against 2,143 Million in the similar period of the previous year with an increase of 365 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 September 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.” |
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