Saudi Awwal Bank : Financial Statements for the period ended 30 June 2023

Saudi Awwal Bank

(formerly known as The Saudi British Bank)

Interim Condensed Consolidated Financial Statements

For the six month period ended

30 June 2023

(Unaudited)

Saudi Awwal Bank (formerly known as The Saudi British Bank)

CONTENTS OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

			Page No.
Independent auditors' review report on the interim condended consolidated financial statements	1
Interim condensed consolidated statement of financial position	2
Interim condensed consolidated statement of income - Unaudited	3
Interim condensed consolidated statement of comprehensive income - Unaudited	4
Interim condensed consolidated statement of changes in equity - Unaudited	5
Interim condensed consolidated statement of cash flows - Unaudited	6
Notes to the interm condensed consolidated financial statements
1.		General	7
2.		Basis of preparation	8
3.		Basis of consolidation	8
4.	Accounting policies and impact of changes due to adoption of new standards	8
5.		Cash and balances with SAMA	10
6.		Due from banks and other financial institutions, net	10
7.		Investments, net	11
8.		Loans and advances, net	13
9.		Investment in an associate	14
10.	Goodwill and other intangibles	15
11.	Derivatives	15
12.	Customers' deposits	16
13.	Debt securities in issue	16
14.	Commitments and contingencies	16
15.	Basic and diluted earnings per share	17
16.	Zakat and income tax	17
17.	Cash and cash equivalents	18
18.	Operating segments	18
19.	Financial risk management	20
20.	Fair values of financial instruments	21
21.	Capital adequacy	23
22.	Dividend	24
23.	IBOR Transition (Interest Rate Benchmark Reforms)	24
24.	Discontinued operations	24
25.	Business Combination	24
26.	Comparative figures	25
27.	Subsequent event	25
28.	Board of Directors' approvals	25

KPMG Professional Services

Riyadh Front, Airport Road

P.O. Box 92876

Riyadh 11663

Kingdom of Saudi Arabia

INDEPENDENT AUDITORS' REVIEW REPORT ON THE

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

To: The shareholders of Saudi Awwal Bank (formerly known as The Saudi British Bank) (A Saudi Joint Stock Company)

Introduction

We have reviewed the accompanying interim condensed consolidated statement of financial position of Saudi Awwal Bank (formerly known as The Saudi British Bank) ("the Bank") and its subsidiaries (collectively referred to as "the Group") as at 30 June 2023, and the interim condensed consolidated statements of income and comprehensive income for the three-month and six-month periods then ended, and the interim condensed consolidated statements of changes in equity and cash flows for the six-month period then ended, and other explanatory notes (collectively referred to as "the interim condensed consolidated financial statements"). The Board of Directors are responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with the International Accounting Standard 34: Interim Financial Reporting ("IAS 34") as endorsed in the Kingdom of Saudi Arabia. Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review.

Scope of review

We conducted our review in accordance with the International Standard on Review Engagements 2410: Review of Interim Financial Information Performed by the Independent Auditor of the Entity as endorsed in the Kingdom of Saudi Arabia. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the International Standards on Auditing as endorsed in the Kingdom of Saudi Arabia, and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34 as endorsed in the Kingdom of Saudi Arabia.

Other regulatory matters

As required by the Saudi Central Bank ("SAMA"), certain capital adequacy information has been disclosed in note 21 to the accompanying interim condensed consolidated financial statements. As part of our review, we compared the information in note 21 to the relevant analysis prepared by the Bank for its submission to SAMA and found no material inconsistencies.

PricewaterhouseCoopers

KPMG Professional Services

Mufaddal A. Ali
Certified Public Accountant	Certified Public Accountant
License number: 447	License number: 348
	2 August 2023
	(15 Muharram 1445 AH)
PricewaterhouseCoopers, License No. 25	KPMG Professional Services
Kingdom Tower, P.O. Box 8282, Riyadh 11482	(Professional Closed Joint Stock Company)
Kingdom of Saudi Arabia	Paid-up capital SR 40,000,000
T: [phone] F: [phone]	C.R. No. 1010425494
www.pwc.com/middle-east	kpmg.com/sa

Saudi Awwal Bank (formerly known as The Saudi British Bank)

Interim condensed consolidated statement of financial position

		As at 30	As at 31	As at 30
		June 2023	December 2022	June 2022
		Unaudited	Audited	Unaudited
	Notes	SAR' 000	SAR' 000	SAR' 000
ASSETS
Cash and balances with Saudi Central Bank ("SAMA")	5	15,937,530	19,258,717	24,716,348
Due from banks and other financial institutions, net	6	6,018,502	5,871,533	9,140,612
Assets classified as held for sale		-	-	1,305,454
Positive fair value derivatives, net	11	2,490,654	2,538,074	1,554,439
Investments, net	7	93,529,882	86,363,159	73,063,646
Loans and advances, net	8	198,671,023	183,132,249	176,214,326
Investment in an associate	9	423,793	599,289	548,030
Other assets		3,451,384	2,228,977	1,896,306
Property, equipment and right of use assets, net		3,687,844	3,621,644	3,419,524
Goodwill and other intangibles, net	10	10,702,327	10,837,035	10,680,387
Total assets		334,912,939	314,450,677	302,539,072
LIABILITIES AND EQUITY
Liabilities
Due to banks and other financial institutions		32,957,105	25,517,303	22,627,082
Customers' deposits	12	222,733,814	214,278,851	207,451,005
Negative fair value derivatives, net	11	2,137,416	1,907,436	1,165,074
Liabilities directly associated with assets classified
as held for sale		-	-	805,178
Debt securities in issue	13	5,167,354	5,114,836	5,065,915
Other liabilities		15,224,639	12,949,047	11,518,101
Total liabilities		278,220,328	259,767,473	248,632,355
Equity
Equity attributable to equity holders of the Bank
Share capital		20,547,945	20,547,945	20,547,945
Share premium		8,524,882	8,524,882	8,524,882
Statutory reserve		20,547,945	20,547,945	20,547,945
Other reserves		(1,004,538)	(1,182,348)	(535,287)
Retained earnings		8,076,377	6,244,780	4,722,016
Total equity attributable to equity holders of the Bank		56,692,611	54,683,204	53,807,501
Total equity attributable to non-controlling interest		-	-	99,216
Total equity		56,692,611	54,683,204	53,906,717
Total liabilities and equity		334,912,939	314,450,677	302,539,072

The accompanying notes 1 to 28 form an integral part of these interim condensed consolidated financial statements.

Lama Ghazzaoui	Tony Cripps
Chief Financial Officer	Managing Director & Authorized Member

Saudi Awwal Bank (formerly known as The Saudi British Bank) Interim Condensed Consolidated Financial Statements

2

Saudi Awwal Bank (formerly known as The Saudi British Bank)

Interim condensed consolidated statement of income - Unaudited

		For three month ended	For six month ended
		30 June 2023	30 June 2022	30 June 2023	30 June 2022
	Notes	SAR'000	SAR'000	SAR'000	SAR'000
Continuing operations
Special commission income		4,088,927	2,012,867	7,890,041	3,602,443
Special commission expense		(1,561,588)	(294,607)	(2,828,666)	(470,530)
Net special commission income		2,527,339	1,718,260	5,061,375	3,131,913
Fee and commission income		781,695	705,553	1,558,600	1,378,778
Fee and commission expense	26	(512,434)	(463,037)	(1,005,637)	(875,406)
Net fee and commission income		269,261	242,516	552,963	503,372
Exchange income, net		208,407	180,765	413,974	359,371
Income from FVSI financial instruments		54,384	92,142	275,135	196,288
Dividend income		705	-	705	-
Losses on FVOCI debt instruments, net		-	-	(4,892)	-
(Losses) / gains on amortised cost investments, net		-	-	(15,043)	30,505
Other operating income, net		6,645	8,254	98	33,013
Total operating income		3,066,741	2,241,937	6,284,315	4,254,462
Provision for expected credit losses, net	19 (a)	(138,524)	(135,896)	(367,488)	(195,678)
Operating expenses
Salaries and employee related expenses		(528,754)	(434,847)	(1,038,314)	(846,246)
Rent and premises related expenses		(13,664)	(9,922)	(31,478)	(22,224)
Depreciation and amortization		(110,291)	(115,760)	(227,173)	(231,557)
General and administrative expenses	26	(343,278)	(302,292)	(705,130)	(603,876)
Total operating expenses		(995,987)	(862,821)	(2,002,095)	(1,703,903)
Income from operating activities		1,932,230	1,243,220	3,914,732	2,354,881
Share in earnings of an associate	9	46,747	53,342	76,462	120,885
Net income for the period before Zakat and income tax		1,978,977	1,296,562	3,991,194	2,475,766
Provision for Zakat and income tax	16	(429,129)	(202,923)	(676,776)	(366,190)
Net income for the period after Zakat and income tax
from continuing operations		1,549,848	1,093,639	3,314,418	2,109,576
Net loss from discontinued operations	24	-	(11,914)	-	(23,653)
Net income for the period after Zakat and income tax		1,549,848	1,081,725	3,314,418	2,085,923
Attributable to:
Equity holders of the Bank		1,549,848	1,082,670	3,314,418	2,088,893
Non-controlling interest		-	(945)	-	(2,970)
Net income for the period after Zakat and income tax		1,549,848	1,081,725	3,314,418	2,085,923
Basic and diluted earnings per share (in SAR) from
continuing operations attributable to equity holders of
the Bank	15	0.75	0.53	1.61	1.03
Basic and diluted losses per share (in SAR) from
discontinued operations attributable to equity holders
of the Bank	15	-	-	-	(0.01)
Basic and diluted earnings per share (in SAR)	15	0.75	0.53	1.61	1.02

The accompanying notes 1 to 28 form an integral part of these interim condensed consolidated financial statements.

Lama Ghazzaoui	Tony Cripps
Chief Financial Officer	Managing Director & Authorized Member

Saudi Awwal Bank (formerly known as The Saudi British Bank) Interim Condensed Consolidated Financial Statements

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