Saudi British Bank : Financial Statements for the period ended 31 March 2023

The Saudi British Bank

Interim Condensed Consolidated Financial Statements

For the three month period ended

31 March 2023

(Unaudited)

The Saudi British Bank

CONTENTS OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

			Page No.
Independent auditors' review report on the interim condended consilidated financial statements
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 statement
	1.	General	7
	2.	Basis of preparation	8
	3.	Basis of consolidation	8
	4.	Significant 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	12
	9.	Investment in an associate	14
	10.	Goodwill and other intangibles	14
	11.	Derivatives	15
	12.	Customers' deposits	15
	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 cashequivalents	18
	18.	Operating segments	18
	19.	Financial risk management	20
	20.	Fair values of financial instruments	21
	21.	Capital adequacy	23
	22.	Dividends	24
	23.	IBOR Transition (Interest Rate Benchmark Reforms)	24
	24.	Discontinued operations	24
	25.	Business Combination	24
	26.	Comparative figures	24
	27.	Board of Directors' approvals	24

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 The Saudi British Bank (A Saudi Joint Stock Company)

Introduction

We have reviewed the accompanying interim consolidated statement offinancial positionofThe SaudiBritish Bank ("the Banlc") and its subsidiaries (collectively referred to as "the Group") as at 31 March 2023, and the related interim consolidated statements of income, comprehensive income, changes in equity and cash flows for the three month period then ended, and other explanatory notes (collectively referred to as "the interim condensed consolidated financial statements"). Management is 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 24l 0: Review of Interim Financial Information Performed by the Independent Auditor of the Entity as endorsed in the Kingdom of Saudi Arabia.

A review ofinterim financial information consists ofmaking inquiries, primarily ofpersons 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 ofall 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 ofSaudi Arabia

Other regulatory matters

As required by the Saudi Central Banlc("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

Bader I. Benmohareb
Certified Public Accountant	License.:;nu�...._•-.o:,;:::'.:
License number: 471
	::::
		I
	20 Shawwal 1444 AH
	(10 May 2023)
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
[phone] F: [phone]		C.R No. 1010425494
www.owc.com/middlHast		Headquarters in Riyadh
		www.kpmg com/sa

The Saudi British Bank

Interim condensed consolidated statement of financial position

		As at 31	As at 31	As at 31
		March 2023	December 2022	March 2022
	Notes	Unaudited	Audited	Unaudited
		SAR' 000	SAR' 000	SAR' 000
ASSETS
Cash and balances with Saudi Central Bank ("SAMA")	5	21,908,075	19,258,717	14,161,870
Due from banks and other financial institutions, net	6	6,040,552	5,871,533	7,404,934
Assets classified as held for sale		-	-	941,652
Positive fair value derivatives, net	11	2,116,844	2,538,074	1,165,163
Investments, net	7	90,978,616	86,363,159	65,588,362
Loans and advances, net	8	191,001,016	183,132,249	176,147,793
Investment in an associate	9	629,004	599,289	650,902
Other assets		1,832,217	2,228,977	2,592,154
Property, equipment and right of use assets, net		3,606,790	3,621,644	3,317,208
Goodwill and other intangibles, net	10	10,771,480	10,837,035	10,721,699
Total assets		328,884,594	314,450,677	282,691,737
LIABILITIES AND EQUITY
Liabilities
Due to banks and other financial institutions		26,353,867	25,517,303	17,135,352
Customers' deposits	12	225,983,336	214,278,851	193,889,489
Negative fair value derivatives, net	11	1,686,387	1,907,436	1,046,553
Liabilities directly associated with assets classified
as held for sale		-	-	736,228
Debt securities in issue	13	5,070,852	5,114,836	5,028,016
Other liabilities		12,756,246	12,949,047	11,079,049
Total liabilities		271,850,688	259,767,473	228,914,687
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		(596,216)	(1,182,348)	(285,604)
Retained earnings		6,488,802	6,244,780	3,639,346
Proposed dividends	22	1,520,548	-	702,375
Total equity attributable to equity holders of the Bank		57,033,906	54,683,204	53,676,889
Total equity attributable to Non-controlling interest		-	-	100,161
Total equity		57,033,906	54,683,204	53,777,050
Total liabilities and equity		328,884,594	314,450,677	282,691,737

The accompanying notes 1 to 27 form an integral part of these interim condensed consolidated financial statements.

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

The Saudi British Bank Interim Condensed Consolidated Financial Statements 2

The Saudi British Bank

Interim condensed consolidated statement of income - Unaudited

For the three month period ended

		31 March 2023	31 March 2022
	Notes	SAR'000	SAR'000
Continuing operations
Special commission income		3,801,114	1,589,576
Special commission expense		(1,267,078)	(175,923)
Net special commission income		2,534,036	1,413,653
Fee and commission income		776,905	673,225
Fee and commission expense	26	(493,203)	(412,369)
Net fee and commission income		283,702	260,856
Exchange income, net		205,567	178,606
Income from FVSI financial instruments		220,751	104,146
Losses on FVOCI debt instruments, net		(4,892)	-
(Losses) / gains on non- FVSI investments, net		(15,043)	30,505
Other operating (expenses) / income, net	26	(6,547)	24,759
Total operating income		3,217,574	2,012,525
Provision for expected credit losses, net	19 (a)	(228,964)	(59,782)
Operating expenses
Salaries and employee related expenses		(509,560)	(411,399)
Rent and premises related expenses		(17,814)	(12,302)
Depreciation and amortization		(116,882)	(115,797)
General and administrative expenses	26	(361,852)	(301,584)
Total operating expenses		(1,006,108)	(841,082)
Income from operating activities		1,982,502	1,111,661
Share in earnings of an associate	9	29,715	67,543
Net income for the period before Zakat and income tax		2,012,217	1,179,204
Provision for Zakat and income tax	16	(247,647)	(163,267)
Net income for the period after Zakat and income tax from continuing
operations		1,764,570	1,015,937
Net loss from discontinued operations	24	-	(11,739)
Net income for the period after Zakat and income tax		1,764,570	1,004,198
Attributable to:
Equity holders of the Bank		1,764,570	1,006,223
Non-controlling interest		-	(2,025)
Net income for the period after Zakat and income tax		1,764,570	1,004,198
Basic and diluted earnings per share (in SAR) from continuing
operations attributable to equity holders of the Bank	15	0.86	0.50
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	0.86	0.49

The accompanying notes 1 to 27 form an integral part of these interim condensed consolidated financial statements.

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

The Saudi British Bank Interim Condensed Consolidated Financial Statements 3