INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR .

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SAMBA FINANCIAL GROUPINTERIM CONDENSED CONSOLIDATEDFINANCIAL STATEMENTSFOR THE NINE MONTH PERIOD ENDEDSeptember 30, 2020Public

SAMBA FINANCIAL GROUPSTATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME(Unaudited)Three months endedNine months endedSep 30, 2020(SR '000)Sep 30, 2019(SR '000)Sep 30, 2020(SR '000)Sep 30, 2019(SR '000)1,230,6581,225,8253,459,5083,226,091- Change in fair values and realised during the period275,956(674,137)(727,693)144,541Changes due to remeasurements of defined employeebenefit 409,9653,169,6955,626,858Net income for the periodsOther comprehensive income for the periods - itemsthat will not be reclassified subsequently to thestatements of consolidated income:FVOCI financial assets - equities:Other comprehensive income for the periods - itemsthat will be reclassified subsequently tothe statements of consolidated income:Exchange differences on translation of foreign operationsFVOCI financial assets – debt, net of related ECL :- Change in fair values- Transfers to statements of consolidated incomeCash flow hedges:- Change in fair values- Transfers to statements of consolidated incomeOther comprehensive (loss) / income for the periodsTotal comprehensive income for the periodsAttributable to:Equity holders of the BankNon-controlling interestTotalThe accompanying notes 1 to 23 form an integral part of the interim condensed consolidated financial statements.Public5

SAMBA FINANCIAL GROUPSTATEMENT OF CONSOLIDATED CHANGES IN EQUITY(Unaudited)Attributable to equity holders of the BankFair value and other reserves(SR ‘000)For the nine months period ended 098(11,723)Net changes in treasury stocks------2019 final dividend paid-----Balance at the beginning of the losses)on definedbenefit 111130,000(307,021)3,186,098(11,723)Net income for the period-------3,456,411-Other comprehensive income / (loss) for the 66)(3,147)(289,813)Total comprehensive income / (loss) for 96,093)42,213,13392,80242,305,935Net changes in treasury stocks-------47,056-32,29779,353-79,3532019 Interim (963,796)38,856,986--Balance at end of the periodFor the nine months period ended September30, 2019Balance at the beginning of the period2018 final dividend paidSubtotalNet income for the (307,684)2,864,44567,583--Total comprehensive income / (loss) for 582)Other comprehensive income / (loss)for the periodBalance at end of the 4,576,646The accompanying notes 1 to 23 form an integral part of the interim condensed consolidated financial statements.Public92,802

SAMBA FINANCIAL GROUPNOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)GeneralSamba Financial Group ("the Bank"), a Joint Stock Company incorporated in the Kingdom of Saudi Arabia (‘KSA”), wasformed pursuant to Royal Decree No. M/3 dated 26 Rabie Al-Awal 1400H (February 12, 1980). The Bank commencedbusiness on 29 Shaa’ban 1400H (July 12, 1980) when it took over the operations of Citibank in the Kingdom of Saudi Arabia.The Bank operates under commercial registration no. 1010035319 dated 6 Safar 1401H (December 13,1980). The Bank'shead office is located at King Abdul Aziz Road, P.O. Box 833, Riyadh 11421, Kingdom of Saudi Arabia.The objective of the Bank is to provide a full range of banking and related services. The Bank also provides its customersShariah approved Islamic banking products, which are approved and supervised by an Independent Shariah Board.1.The interim condensed consolidated financial statements include financial statements of the Bank and its followingsubsidiaries, hereinafter collectively referred to as "the Group".Samba Capital and Investment Management Company (Samba Capital)In accordance with the securities business regulations issued by the Capital Market Authority (CMA), the Bank hasestablished a wholly owned subsidiary, Samba Capital and Investment Management Company under commercialregistration number 1010237159 issued in Riyadh dated 6 Shaa’ban 1428H (August 19, 2007), to manage the Bank’sinvestment services and asset management activities related to dealing, arranging, managing, advising and custodybusinesses. The company is licensed by the CMA and commenced its business effective January 19, 2008. Samba Capitalwas converted from a limited liability company to a closed joint stock company on 28 Rajab 1438H (April 25, 2017), whichis the date of commercial registration of the closed joint stock company.Samba Capital has also formed a wholly owned subsidiary “Samba Investment Real Estate Company” which is incorporatedin the Kingdom of Saudi Arabia under commercial registration number 1010715022 issued in Riyadh dated 23 Shawaal1438H (July 17, 2017). The company has been formed as a limited liability company (sole ownership) and is engaged inmanaging real estate projects for and on behalf of a mutual fund managed by Samba Capital.During 2020, Samba Capital formed two special purpose entities namely Samba US Logistics Fund L.P., an exemptedlimited partnership, registered on 9 September 2020, and Samba US Logistics Fund G.P. an exempted company,incorporated on 7 July 2020. These entities are governed under the laws of Cayman Island and are formed for the purposeof holding and managing principal investments,Samba Bank Limited, Pakistan (SBL)An 84.51% owned subsidiary incorporated as a banking company in Pakistan and is engaged in commercial banking andrelated services, and is listed on the Pakistan Stock Exchange.Co-Invest Offshore Capital Limited (COCL)A wholly owned company incorporated under the laws of Cayman Islands for the purpose of managing certain overseasinvestments through an entity; Investment Capital (Cayman) Limited (ICCL) which is fully owned by COCL. ICCL hasinvested in approximately 41.2% of the share capital of Access Co-Invest Limited, also a Cayman Island limited liabilitycompany, which manages these overseas investments.Samba Real Estate CompanyA wholly owned subsidiary incorporated in Saudi Arabia under commercial registration no. 1010234757, issued in Riyadh,dated 9 Jumada II, 1428H (June 24, 2007). The company has been formed with the approval of Saudi Arabian MonetaryAuthority (“SAMA”) for the purpose of managing real estate projects on behalf of the Bank.Samba Global Markets LimitedA wholly owned company incorporated as limited liability company under the laws of Cayman Islands on February 1, 2016,with the objective of managing certain treasury related transactions. The company started its commercial operations duringthe fourth quarter of 2016.Samba Funding LimitedA 100% owned subsidiary incorporated as a limited liability company under the laws of Cayman Islands on June 19, 2019,with the main objective of generating liquidity for the Bank through issuance of bonds. The company started its commercialoperations during the third quarter of 2019.Public8

SAMBA FINANCIAL GROUPNOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)(Unaudited)Basis of PreparationThe interim condensed consolidated financial statements of the Group as at and for the period ended September 30, 2020and September 30, 2019, have been prepared in accordance with International Accounting Standard 34 Interim FinancialReporting (“IAS 34”) as endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements endorsed bythe Saudi Organisation for Certified Public Accountants (“SOCPA”). The consolidated financial statements of the Group asat and for the year ended December 31, 2019, have been prepared in accordance with International Financial ReportingStandards as endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements endorsed by the SOCPA.2.These interim condensed consolidated financial statements do not include all information and disclosures required in theannual consolidated financial statements and should be read in conjunction with the annual consolidated financialstatements of the Group for the year ended December 31, 2019.The preparation of interim condensed consolidated financial statements requires management to make judgments,estimates and assumptions that affect the application of accounting policies and the reported amounts of assets andliabilities, income and expense. Actual results may differ from these estimates.In preparing these interim condensed consolidated financial statements, the significant judgments made by management inapplying the Bank’s accounting policies and the key sources of estimation uncertainty were the same as those that appliedto the annual consolidated financial statements as at and for the year ended December 31, 2019.Financial assets and financial liabilities are offset and the net amount reported in the statement of consolidated financialposition only when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle ona net basis, or to realize the asset and settle the liability simultaneously. Income and expenses are not offset in the statementof consolidated income unless required or permitted by any accounting standard or interpretation, and as specificallydisclosed in the accounting policies of the Bank.The interim condensed consolidated financial statements are expressed in Saudi Arabian Riyals (SR) and amounts arerounded to the nearest thousand.3.ConsolidationThese interim condensed consolidated financial statements include the financial position and results of Samba FinancialGroup and its subsidiary companies. The financial statements of subsidiaries are prepared for the same reporting period asthat of the Bank except for COCL whose financial statements are made up to the latest available period for consolidationpurposes to meet the Group reporting timetable. Wherever necessary, adjustments have been made to the financialstatements of the subsidiaries to align with the Bank's financial statements. Significant inter-group balances and transactionsare eliminated upon consolidation.Subsidiaries are the entities that are controlled by the Bank. The Bank controls an entity when it is exposed, or has a right,to variable returns from its involvement with the entity and has the ability to affect those returns through its power over thatentity. Subsidiaries are consolidated from the date on which control is transferred to the Bank and cease to be consolidatedfrom the date on which control is transferred from the Bank. The results of subsidiaries acquired or disposed-off during theperiod are included in the statements of consolidated income from the date of the acquisition or up to the date of disposal,as appropriate.Non-controlling interest represent the portion of net income or loss and net assets not owned, directly or indirectly, by theBank in subsidiaries and are presented in the statement of consolidated income and within equity in the statement ofconsolidated financial position, separately from the equity holders of the Bank.The purchase method of accounting is used to account for the acquisition of subsidiaries by the Bank. The cost of acquisitionis measured at the fair value of the consideration given at the date of exchange. The acquired identifiable assets, liabilitiesand contingent liabilities are measured at their fair value at the date of acquisition. The excess of the cost of acquisition overthe fair value of the Bank’s share of identifiable net assets acquired is recorded as intangible asset – goodwill.In addition to the subsidiaries stated above under note 1, the Bank is also a party to special purpose entities namely RasAs Zawar Asset Leasing Company and Saudi Kayan Asset Leasing Company having 50% share in each entity. These areformed with the approval of SAMA solely to facilitate certain Shariah compliant financing arrangements. The Bank hasconcluded that these entities cannot be consolidated as it does not control these entities. However, the exposures to theseentities are included in the Bank’s loans and advances portfolio.Public9

SAMBA FINANCIAL GROUPNOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)(Unaudited)Significant Accounting Policies4.The accounting policies used in the preparation of these interim condensed consolidated financial statements are consistentwith those used in the Group's annual consolidated financial statements for the year ended December 31, 2019. Based onthe adoption of new standard and in consideration of current economic environment, the following accounting policies areapplicable effective January 1, 2020 replacing, amending or adding to the corresponding accounting policies set out in 2019annual consolidated financial statements.4.1 Government grantThe Bank recognizes a government grant related to income, if there is a reasonable assurance that it will be receivedand the Bank will comply with the conditions associated with the grant. The benefit of a government deposit at a belowmarket rate of interest is treated as a government grant related to income. The below-market rate deposit is recognisedand measured in accordance with IFRS 9 Financial Instruments. The benefit of the below-market rate of interest ismeasured as the difference between the initial carrying value of the deposit determined in accordance with IFRS 9 andthe proceeds received. The benefit is accounted for in accordance with IAS 20. Government grant is recognised instatement of consolidated income on a systematic basis over the periods in which the bank recognises as expensesthe related costs for which the grant is intended to compensate. The grant income is only recognised when the ultimatebeneficiary is the Bank. Where the customer is the ultimate beneficiary, the Bank only records the respective receivableand payable amounts.4.2 New standards, interpretations and amendments adopted by the GroupBelow amendments to accounting standards and interpretations became applicable for annual reporting periodscommencing on or after January 1, 2020. The management has assessed that the amendments have no significantimpact on the Group’s interim condensed consolidated financial statements. Amendments to IFRS 3: Definition of a BusinessAmendments to IAS 1 and IAS 8: Definition of MaterialAmendments to References to the Conceptual Framework in IFRS Standards.Amendments to IFRS 16: Leases for COVID-19 rent related concessions.Amendments to IFRS 9, IAS 39 and IFRS 7: Interest Rate Benchmark ReformAmendments to IFRS 4: Insurance contracts4.3 Accounting Standards issued but not yet effectiveThe accounting standards, amendments and revisions which have been published and are mandatory for compliancefor the Group’s accounting year beginning January 1 ,2021 are listed below. The Group has opted not to early adoptthese pronouncements and they do not have a significant impact on the interim condensed consolidated financialstatements. IFRS 17 – “Insurance contracts”, applicable for the period beginning on or after January 1, 2023. Amendments to IAS 1 – “Classification of Liabilities as Current or Non-current”, applicable for the period beginning onor after January,1, 2022Public10

SAMBA FINANCIAL GROUPNOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)(Unaudited)5. Investments, netInvestment securities are classified as follows:Sep 30, 2020(Unaudited)(SR'000)Dec 31, 2019(Audited)(SR '000)Sep 30, 2019(Unaudited)(SR'000)Held at FVIS6,046,8066,100,1125,956,060Held at FVOCI - Equity2,823,7223,651,2733,321,319Held at FVOCI - Debt77,028,60461,640,75861,146,339Held at amortized ,25382,972,359Sub-totalCredit impairment provisionTotal investments, net6. Loans and advances, neta) The total loans and advances which are held at amortized cost, are as follows:Sep 30, 2020(Unaudited)(SR'000)Credit cards1,256,827Consumer loansDec 31, 2019(Audited)(SR '000)1,429,127Sep 30, 39Commercial loans and 7Performing loans and 1,924,2081,921,087Gross loans and advances157,850,933144,694,873128,371,294Credit impairment 732141,595,245125,494,808Non-performing loans and advancesTotal loans and advances, netPublic11

SAMBA FINANCIAL GROUPNOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)(Unaudited)b) Movement in credit impairment provision for loans and advances for the period is as follows:Sep 30, 2020 (Unaudited)SR (‘000)Balance as at beginning of the periodTransfer to 12 months ECLTransfer to life time ECL not credit impairedTransfer to life time ECL credit impairedNet measurement of loss allowanceNew financial assets originated or purchased orrenewedFinancial asset that have been derecognisedBalance as at the end of the periodLife time ECL notcredit impairedLife time ECLcredit 60)58,72412 Month ECLSep 4,951)732,639771,2342,140,3283,644,2012,876,4867. Customer DepositsCustomer deposits comprise of the following:DemandSep 30, 2020Dec 31, 2019Sep 30, 2019(Unaudited)(Audited)(Unaudited)(SR '000)(SR '000)(SR 65,680165,489,581SavingIncluded in time deposits are market linked customer deposits amounting to SR 451.5 million (December 2019: SR 700 million, Sep2019: SR 958.4 million) which are designated FVIS liabilities.8. Term LoanThe Bank has entered into a syndicated unsecured floating rate loan arrangement on July 17, 2019 amounting to USD 575million with a tenor of 3 years for general corporate purposes. The term loan bears commission at market based variablerates and is held at amortised cost.9. Debt securities in issueThe Bank, through a special purpose vehicle has completed the drawdown of its USD 1 billion denominated notes on October2, 2019 under a USD 5 billion Euro Medium Term Note program. A second drawdown of USD 500 million was completed onJanuary 29, 2020. The notes are unsecured and have been issued under this program for a period upto seven years andmay be subject to early redemption at the option of the Bank subject to the terms and conditions of the issue. The not

The interim condensed consolidated financial statements are expressed in Saudi Arabian Riyals (SR) and amounts are rounded to the nearest thousand. 3. Consolidation These interim condensed consolidated financial statements include the financial position and results of Samba Financial Group and its subsidiary companies.

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