Mubasher TV
Contact Us Advertising   العربية

Alinma Bank announces its Annual Financial Results for the Period Ending on 2019-12-31

Default Company 1150.O 0.00% 0.00 0.00

Element List Current Year Previous Year %Change
Total Revenue from Special Commissions/Financing & Investments 5,609 4,894 14.609
Net Income from Special Commissions/Financing & Investments 4,394 3,798 15.692
Total Operation Profit (Loss) 5,610 4,845 15.789
Net Profit (Loss) before Zakat and Income Tax 2,816 2,517 11.879
Net Profit (Loss) 2,535 2,857 -11.27
Total Comprehensive Income 2,627 2,873 -8.562
Total Share Holders Equity (after Deducting Minority Equity) 22,445 21,298 5.385
Assets 131,839 121,538 8.475
Investments 23,478 18,399 27.604
Loans and Advances Portfolio (Financing & Investment) 94,801 83,889 13.007
Customer Deposits 102,063 90,128 13.242
Profit (Loss) per Share 1.7 1.92
All figures are in (Millions) Saudi Arabia, Riyals
Element List Explanation
Increase (Decrease) in Net Profit for Current Year Compared to Last Year is Attributed to Net income after zakat decreased by 11%, as a result of restating the net profit for year 2018 announced at that point of time, by adding SAR 556 million to it to reflect the impact of the settlement agreement between the bank and the General Authority for Zakat and Income, whereby all zakat claims were settled for the prior years up to 2017. This restatement of the net profit for the comparative year was due to the change in an accounting policy during 2019 to recognize the Zakat and income tax in the income statement for the year instead of recognizing it the statement of changes in shareholders' equity as per the previous policy. Accordingly the previously reported net income for the year 2018 has been restated from SAR 2,517 million to SAR 2,857 million as well as the earning per share for year 2018 from SAR 1.69 to 1.92, in addition to the charge of SAR 282 million as Zakat expenses for year 2019.

Accordingly, the net income before Zakat gives a more realistic comparison, as it has increased by 12% as a result of a 16% increase in total operating income, mainly due to the higher income from financing and investment, in addition to higher income from banking fees, and exchange income, and FVIS investment income. On the other hand, total operating expenses increased by 20% as a result of higher provision, salaries, and general and administrative expenses.

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 Certain previous year figures has been reclassified in order to conform with current year classifications and some items have been re-classified.
Additional Information For calculation of earning per share, 10 million treasury shares have been excluded.

Starting from the quarter ended June 2019, and in accordance with International Financial Reporting Standards (IFRS) and other standards and pronouncements endorsed by SOCPA, the Bank changed its accounting policy for reporting zakat. Accordingly, the Bank has reported zakat through the statement of income for the year-ended 2019 and restated the year-ended 2018. Previously zakat was reported in the statement of changes in equity.

In Q4 2018, the Bank entered into a settlement of zakat claims agreement with GAZT for periods up to and including 2017. The amount of the settlement was a net refund to Alinma of SAR 263 million.

The restated 2018 statement of income includes the impact of the aforesaid change in accounting policy together with the settlement agreement between the Bank and GAZT as explained above.

Comments