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