Saudi British Bank announces its Interim Financial Results for the Period Ending on 2019-09-30 ( Nine Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Total Revenue from Special Commissions/Financing & Investments | 2,499 | 1,710 | 46.14 | 1,953 | 27.956 |
| Net Income from Special Commissions/Financing & Investments | 1,992 | 1,414 | 40.876 | 1,583 | 25.837 |
| Total Operation Profit (Loss) | 2,577 | 1,861 | 38.473 | 1,983 | 29.954 |
| Net Profit (Loss) | 1,061 | 1,062 | -0.094 | -254 | - |
| Total Comprehensive Income | 777 | 1,132 | -31.36 | -395 | - |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Total Revenue from Special Commissions/Financing & Investments | 6,248 | 4,885 | 27.901 |
| Net Income from Special Commissions/Financing & Investments | 5,061 | 4,127 | 22.631 |
| Total Operation Profit (Loss) | 6,530 | 5,492 | 18.9 |
| Net Profit (Loss) | 1,913 | 2,867 | -33.275 |
| Total Comprehensive Income | 1,908 | 3,262 | -41.508 |
| Total Share Holders Equity (after Deducting Minority Equity) | 54,919 | 32,836 | 67.252 |
| Assets | 257,864 | 175,048 | 47.31 |
| Investments | 58,720 | 33,958 | 72.919 |
| Loans and Advances Portfolio (Financing & Investment) | 152,529 | 112,128 | 36.031 |
| Customer Deposits | 183,417 | 129,328 | 41.823 |
| Profit (Loss) per Share | 1.12 | 1.91 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| Increase (Decrease) in Net Profit for Current Quarter Compared to Same Quarter Last Year is Attributed to | Net profit was relatively flat primarily driven by an increase in total operating expenses and provision for expected credit losses as a result of the merger with Alawwal Bank, partially offset by an increase in total operating income mainly contributed by net special commission income by 40.9%. The increase in total operating expenses incorporated SAR 137 million of integration, execution and transaction costs in the current quarter (same quarter of previous year: SAR 1 million). |
| Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to | The increase in net profit was primarily driven by a decrease in provision for expected credit losses coupled with an increase in total operating income, partially offset by an increase in total operating expenses mainly on account of full quarter financial impact of merger with Alawwal Bank and an increase in Zakat and income tax expense as a result of losses reported in 2nd quarter. Total operating expenses increased due to merger related costs and other operating expense items that incorporated SAR 137 million of integration, execution and transaction costs in the current quarter (previous quarter: SAR 75 million). |
| Increase (Decrease) in Net Profit for Current Period Compared to the Same Period Last Year is Attributed to | The decrease in net profit was primarily driven by an increase in provision for expected credit losses coupled with an increase in total operating expenses mainly on account of financial impact of merger with Alawwal Bank, partially offset by an increase in total operating income mainly contributed by an increase in net special commission income and a decrease in provision for Zakat and income tax expense as a result of higher Zakat expense for comparative period on account of potential Zakat Settlement Agreement with General Authority for Zakat and Income Tax. Total operating expenses increased due to merger related costs and other operating expense items that incorporated SAR 270 million of merger-related integration and transaction costs in the current period (similar period of last year: SAR 1 million). |
| Basis of the External Auditor's Opinion | Unmodified opinion |
| Reclassification of Comparison Items | In pursuance of complying with International Financial Reporting Standards (IFRS) that are endorsed in the Kingdom of Saudi Arabia (KSA), the bank has changed the accounting for Zakat and income tax and restated the interim consolidated statement of financial position, the interim consolidated statement of income, the interim consolidated statement of comprehensive income and the interim consolidated statement of changes in equity to reflect the change in accounting policy to record Zakat and income tax through the interim consolidated statement of income, and to recognise deferred tax asset. Previously, Zakat and income tax was charged directly to the interim consolidated statement of changes in equity. Additionally, some numbers have been re-classified in order to align with the current period presentation. |
| Additional Information | Net profit before Zakat and income tax for the nine months period ended 30 September 2019 was SAR 2,281 million as compared to SAR 3,718 million in the corresponding period of last year. Net profit before Zakat and income tax for the three months period ended 30 September 2019 was SAR 1,313 million, as compared to SAR 1,247 million in the corresponding period of last year, and as compared to a net loss before Zakat and income tax of SAR 318 million in the previous quarter.
Net profit after Zakat and income tax for the nine months period ended 30 September 2019 was SAR 1,913 million as compared to SAR 2,867 million in the corresponding period of last year. Net profit after Zakat and income tax for the three months period ended 30 September 2019 was SAR 1,061 million, as compared to SAR 1,062 million in the corresponding period of last year, and as compared to a net loss after Zakat and income tax of SAR 254 million in the previous quarter.
Total operating expenses (exclude provision for expected credit losses) for the nine months period ended 30 September 2019 was SAR 2,389 million, as compared to SAR 1,597 million in the corresponding period of last year. Total operating expenses (exclude provision for expected credit losses) for the three months period ended 30 September 2019 was SAR 1,057 million, as compared to SAR 537 million in the corresponding period of last year and as compared to SAR 722 million in the previous quarter.
Provision for expected credit losses for the nine months period ended 30 September 2019 was SAR 1,955 million, as compared to SAR 203 million in the corresponding period of last year. Provision for expected credit losses for the three months period ended 30 September 2019 was SAR 236 million, as compared to SAR 87 million in the corresponding period of last year, and as compared to SAR 1,628 million in the previous quarter.
Provision for Zakat and income tax for the nine months period ended 30 September 2019 was SAR 369 million as compared to SAR 852 million in the corresponding period of last year. Provision for Zakat and income tax for the three months period ended 30 September 2019 amounted to SAR 252 million, as compared to provision for Zakat and income tax of SAR 185 million in the corresponding period of last year, and as compared to a provision for Zakat and income tax reversal of SAR 64 million in the previous quarter.
Further to receipt of regulatory approvals, on 16 June 2019, SABB completed a statutory merger with Alawwal bank. On this date, the net assets and business activities of Alawwal bank were transferred to SABB in exchange for newly issued shares of SABB.
Earnings per share for the period ended 30 September 2019 and 30 September 2018 are calculated by dividing the net income after Zakat and income tax attributable to equity holders of the bank for the periods by 1,717 million weighted average number of shares outstanding during the period ended 30 September 2019 and 1,500 million weighted average number of shares outstanding during the period ended 30 September 2018.
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 interim consolidated statement of income with a corresponding liability recognized in the interim consolidated statement of financial position in accordance with IFRS as endorsed in the KSA and other standards and pronouncements endorsed by SOCPA. |
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