(

CONSOL

AL(A Saudi J

LIDATED(

FOR TH DEC

1 

LINMA BAJoint Stock

D FINANC

(AUDITEHE YEAR

CEMBER 3

ANK k Compan

CIAL STAED) R ENDED31, 2014

ny)

ATEMENT

D

TS

 

ALINMA(A Saudi CONSOAs at De

ASSETS

Cash and Due fromInvestmenFinancingProperty aOther asseTOTAL A LIABILI LIABILIDue to baCustomerOther liabTOTAL L SHAREH

Share capStatutory Net changOther reseRetained eProposed Treasury TOTAL S TOTAL L The accom

A BANK i Joint Stock

LIDATED ecember 31

balances withm banks and ot

nts g, net and equipmenets ASSETS

ITIES AND S

ITIES anks and otherrs’ deposits bilities LIABILITIE

HOLDERS’ E

pital reserve

ge in fair valuerves earnings dividend shares SHAREHOL

LIABILITIE

mpanying not

 

k Company

STATEME

h Saudi Arabither financial

nt, net

SHAREHOL

r financial ins

ES

EQUITY

ue of available

LDERS’ EQU

ES AND SHA

tes from 1 to 3

y)

ENT OF FIN

ian Monetaryinstitutions

LDERS’ EQU

stitutions

e for sale inve

UITY

AREHOLDE

38 form an in

4 

NANCIAL P

y Agency

UITY

estments

ERS’ EQUIT

ntegral part of

POSITION

Note

4 5 6 7 8 9

101112

1314

2115

TY

f these consol

s 2014 SAR’00

6,06510,317

8,03653,636

1,5431,261

80,861

3259,427

3,46262,922

15,0001,013

(21,23

1,268810

(154,17,939

80,861

lidated financ

00 SA

5,881 47,854 46,151 56,981 443,578 11,414 11,859 63

2,657 7,825 422,145 32,627 46

0,000 153,556 ,094) 3,006 8,285 10,100 ,621) (9,232 16

1,859 63

cial statement

2013

AR’000

4,972,4674,972,1815,399,4664,923,6231,474,9121,258,5833,001,232

200,7362,762,6233,205,9426,169,301

5,000,000697,448

80,86210,250

1,197,992-

(154,621)6,831,931

3,001,232

ts.

 

ALINMA(A Saudi CONSOFor the y

Income frReturn on

Income fr Fees fromExchangeIncome/ (Gain on sDividend Other ope

Total ope Salaries aRent and pDepreciatOther genCharge foTotal ope

Net operaShare of l

Net incom

Basic and The accom

A BANK i Joint Stock

LIDATED year ended

rom investmen time investm

rom investm

m banking serve income, net loss) from FVale of availabincome

erating incom

erating incom

and employee premises relation and amorneral and admor impairmenterating expen

ating incomeloss from asso

me for the ye

d diluted ear

mpanying not

 

k Company

STATEMEDecember 3

nts and finanments

ments and fina

vices, net

VSI financial ble for sale inv

e

me

related expenated expenses rtization

ministrative ext of financial nses

e ociate

ear

nings per sha

tes from 1 to 3

y)

ENT OF INC31

cing

ancing activi

instruments,vestments, ne

nses

xpenses assets

are (SAR)

38 form an in

5 

COME

ities, net

net et

ntegral part of

Not

1717

17

18

19

8

6.3

20

f these consol

tes 201SAR’

7 2,2857 (210

7 2,074

8 39657(37517

2,619

9 63710815328516

1,346

1,2733 (8

1,264

0

lidated financ

14 000 S

5,724 0,776)

4,948

6,213

7,487

3,084)

5,152

7,531

1,592

9,839

7,027 8,492 3,552 5,866 1,673 6,610

3,229 8,798)

4,431

0.85

cial statement

2013 SAR’000

2,020,699(185,864)

1,834,835

272,59830,82916,73494,95121,707

7,4212,279,075

492,59192,083

154,141250,843274,224

1,263,882

1,015,193(10,436)

1,004,757

0.68

ts.

 

ALINMA(A Saudi CONSOFor the y

Net incomOther costatemen

Net chan

Net gain

Total com The accom

A BANK i Joint Stock

LIDATED year ended

me for the yemprehensive

nts of income

nge in fair val

n realized on '

mprehensive

mpanying notes

 

k Company

STATEMEDecember 3

ear e income to bin subseque

lue of availab

available for

income for t

s from 1 to 38 f

y)

ENT OF CO31

be reclassifiednt periods:

ble for sale inv

sale' investm

the year

form an integra

6 

OMPREHEN

d to consolid

vestments

ments

al part of these

NSIVE INC

dated

consolidated f

COME

201SAR’

1,26

(2

(7

1,16

financial statem

14 ’000

64,431

6,804)

5,152)

62,475

ments.

2013 SAR’000

1,004,757

142,029

(94,951)

1,051,835

ALIN(A SaCONFor t

2014 Balanthe ye

Net in

Net ch availaNet am ‘avaiinvest

Total

Trans

Zakat

PropoEmploreserv

Balan

2013 Balanthe ye

Net in

Net ch availaNet am ‘avaiinvest

Total

Trans

ZakatEmploreserv

Balan

 

NMA BANKaudi Joint S

NSOLIDATEhe year end

(SAR ‘000)

nce at the beginnear

ncome for the ye

hange in fair valable for sale invmount realized olable for sale’ tments

comprehensive

sfer to statutory r

t

osed dividend oyee share basedve

nce at the end o

(SAR ‘000)

nce at the beginnear

ncome for the ye

hange in fair valable for sale invmount realized olable for sale’ tments

comprehensive

sfer to statutory r

t oyee share basedve

nce at the end o

The accom

K Stock CompED STATEMded Decemb

No

ning of

ear

lue of estments on

income

reserve 1

2

2d plan

f the year

No

ning of

ear

lue of estments on

income

reserve 1

2d plan

f the year

mpanying notes

 

any) MENT OF

ber 31

otes Sharecapita

15,000,

14

21

21

15,000,

otes Sharecapita

15,000,

14

21

15,000,

s from 1 to 38 f

CHANGES

e al

Statutorreserve

,000 697,44

-

-

-

-

- 316,10

-

-

-

,000 1,013,55

e al

Statutorreserve

,000 446,25

-

-

-

-

- 251,18

-

-

,000 697,44

form an integra

7 

S IN SHARE

ry e

Net changin fair

value ofavailablefor sale

investmen

48 80,86

-

- (26,804

- (75,152

- (101,956

08

-

-

-

56 (21,094

ry e

Net changin fair valuof availab

for sale investmen

59 33,7

-

- 142,0

- (94,95

- 47,0

89

-

-

48 80,8

al part of these

EHOLDER

ge

e

nts Other

reserves

62 10,250

- -

4) -

2) -

6) -

- -

- -

- -

- 12,756

4) 23,006

ge ue

ble

nts Other

reserves

784 -

- -

029 -

51) -

078 -

- -

- -

- 10,250

862 10,250

consolidated f

RS’ EQUITY

Retained earnings

Pd

1,197,992

1,264,431

-

-

1,264,431

(316,108)

(67,930)

(810,100)

-

1,268,285

Retained earnings

Pd

1,338,775

1,004,757

-

-

1,004,757

(251,189)

(894,351)

-

1,197,992

financial statem

Y

Proposed dividend

Tresh

- (15

-

-

-

-

-

-

810,100

810,100 (15

Proposed dividend

Tresh

- (15

-

-

-

-

-

-

-

- (15

ments.

easury hares Tot

54,621) 16,831

- 1,264

- (26

- (75

- 1,162

-

- (67

-

- 12

54,621) 17,939

easury hares Tot

4,621) 16,664

- 1,004

- 142

- (94

- 1,051

-

(894

- 10

54,621) 16,831

tal

1,931

4,431

,804)

,152)

2,475

-

,930)

-

2,756

9,232

tal

4,197

4,757

2,029

,951)

1,835

-

,351)

0,250

1,931

 

ALINMA(A Saudi CONSOFor the y OPERATNet incomAdjustmeactivities: Depreciati(Gain)/lossUnrealisedDividend iCharge forEmployeesShare of lo Net (increStatutory dDue from b than nineInvestmenFinancing Other asse

Net increaDue to banCustomersOther liabiNet cash f INVESTINAcquisitioProceeds fDividends Net cash u FINANCI Zakat paidNet cash uNet increaCash and c

Cash and

Income rec

Return paiSupplemeNet change The accom

A BANK i Joint Stock

LIDATED year ended

ING ACTIVIme for the year ents to reconci

on and amortizs on disposal od loss /(gain) frincome r impairment os share based poss from associ

ease)/decreasedeposit with SAbanks and othe

ety days nts

ets

ase/(decrease) nks and other fs’ deposits ilities from /(used) in

NG ACTIVITn of property a

from disposal oreceived

used in investi

ING ACTIVITd used in financiase/(decrease) cash equivalen

cash equivale

ceived from inv

id on time inveental non-cashes in fair value

mpanying notes

 

k Company

STATEMEDecember 3

ITIES

ile net income

zation of property androm FVSI finan

f financial asseplan reserve iate

in operating AMA er financial ins

in operating lfinancial institu

n operating ac

TIES and equipment of property and

ing activities

TY

ing activity in cash and cts at beginning

ents at end of t

vestments and

estments h information:e of ‘available f

s from 1 to 38 f

y)

ENT OF CA31

to net cash fr

d equipment, nencial instrumen

ets

assets:

titutions with o

liabilities: utions

ctivities

d equipment

cash equivaleng of the year

the year

financing

for sale’ invest

form an integra

8 

ASH FLOW

om / (used in)

et nts, net

original maturi

nts

tments

al part of these

WS

) operating

ity of more

consolidated f

Notes SA

1

8

6.3 1

4 (

(1, (2, (8,

( 16 4

( (

4 6

22 10 2

financial statem

2014 AR’ 000

1,264,431

153,552 (455) 1,908

(17,531) 161,673

12,756 8,798

1,585,132

(721,122)

,692,594)

,749,346) ,857,957)

(762)

(168,079) 6,648,128

256,203 4,299,603

(225,437) 3,674

17,531 (204,232)

(70,000) (70,000)

4,025,371 6,040,732

0,066,103

2,357,735

180,357

(26,804)

ments.

2013 SAR’ 000

1,004,757

154,1413,932

(14,826)(21,707)274,224

10,25010,436

1,421,207

(503,389)

1,506,340(3,387,755)(7,970,143)

(450,389)

(2,213,796)10,554,420

481,789(561,716)

(219,120)33,95921,707

(163,454)

(100,000)(100,000)(825,170)6,865,902

6,040,732

1,917,476

147,456

142,029

 

ALINMA(A Saudi NOTES For the y

1. Gen

a)

b)

A BANK i Joint Stock

TO THE Cyears ended

neral

Incorporatio

Alinma Bank,28 Safar 142742 dated 27 Sand Commercprovides bankBank’s head o Alinma Bank Head Office King Fahad RP.O. Box 666Riyadh 11586Kingdom of S

The consolidsubsidiaries (t Subsidiary Alinma Inves

Al-Tanweer Company

Alinma Insurance Ag

The Bank proaccordance wapplicable to b

Shariah Boar The Bank hasLaws. Shariah

 

k Company

CONSOLIDAd December

n

, a Saudi Joint 7H (correspondSafar 1427H (ccial Registratioking services thoffice is as foll

Road 74

6 Saudi Arabia

ated financial the Bank):

stment Compan

Real Esta

Cooperativency

ovides a full ranwith Shariah, banks in the ki

rd

s established a h Board ascerta

y)

ATED FINA31, 2014 an

Stock Companding to March 2corresponding on No.101025hrough 58 branows:

statements co

Bank owny 100%

ate 100%

ve 100%

nge of bankingits Articles o

ingdom of Sau

Shariah Board ains that all the

9 

ANCIAL STnd 2013

ny, was formed28, 2006), in ato March 27, 0808 both datnches (2013: 5

omprise the fi

nership Es07(c20

24(c20

29(c30

g and investmeof Association di Arabia.

in accordancee Bank’s activi

TATEMEN

d and licensedaccordance with

2006). It operted 21/05/142955) in the King

inancial statem

stablishment d7 Jumada II 14corresponding t009)

4 Sha’aban 14corresponding t009)

9 Rabi Awaal 1corresponding t0,2014)

ent services thr and within t

e with its commities are subject

NTS

d pursuant to Rh the Council orates under Mi9H (correspongdom of Saud

ments of Alinm

date 430H to May 31,

430H to August 15,

1435H to January

rough productsthe provisions

mitment to comt to its review

Royal Decree Nof Ministers’ Rinisterial Reso

nding to May 2i Arabia. The

ma Bank and

Main ActivAsset manacustodianshunderwritinbrokerage s Formed prihold legal tproperties fthe Bank. Insurance aAlinma To(an associa

and instrumens of laws and

mply with Islamand approval.

No. M/15 datedResolution No.olution No.17326, 2008) andaddress of the

its following

vities agement, hip, advisory, ng and services

incipally to title of financed by

agent for kio Marine

ated company)

nts that are in d regulations

mic Shariah

 

2. Bas

a)

i

b)

 

c)

d)

e)

is of preparat

Statement of These consoli i) in acc

Mone

ii) in comKingd

Basis of meas

The consolidmeasurement available for s

Functional an These consolifunctional curnearest thousa

Critical accou The preparatioaccounting jurequires manajudgments, esfactors, inclureasonable unexercised juddepreciation/ainvestees (3v) Going concer The Bank’s msatisfied that management icontinue as a

 

tion

f compliance

idated financia

cordance with ttary Agency (“

mpliance with dom of Saudi A

surement and

dated financialat fair value o

sale (AFS) inve

nd presentatio

idated financiarrency. Exceptands.

unting judgm

on of consoliddgments, estimagement to exestimates and asuding obtainingnder the circumdgments are amortization of).

rn

management hathe Bank has

is not aware ofgoing concern

l statements ha

the Accounting“SAMA”) and

the provisionsArabia and the

presentation

l statements aof the financialestments and e

on currency

al statements at as indicated,

ments, estimate

dated financial mates and assumercise its judgmssumptions are g professionalmstances. Sign

valuation off property and

as made an asthe resources

f any material .

10 

ave been prepa

g Standards forInternational F

s of the BankiArticles of Ass

are prepared l instruments hemployees shar

are presentedfinancial info

es and assump

statements in mptions that afment in the prcontinually ev advices and

nificant areas wf investmentsequipment (3i

ssessment of th to continue iuncertainties th

ared:

r Financial InstFinancial Repo

ing Control Lasociation of the

under the hiheld at fair valure based progra

in Saudi Arabormation presen

ptions

conformity wiffect the reportrocess of applyvaluated and ar

expectations where manages (note 3f), i), actuarial val

he Bank’s abilin business forhat may cast s

titutions promuorting Standard

aw, the Regulae Bank.

istorical cost ue through staams.

bian Riyals (“Snted in SAR h

ith IFRS requirted amounts ofying the Bankre based on hisof future even

ement has useimpairment

luation (3s) and

lity to continur the foreseeabignificant doub

ulgated by the ds (“IFRS”); an

ations for Com

convention exatement of inco

SAR”) which has been roun

res the use of cf assets and lia’s accounting storical experients that are bd estimates, aof financial

d assessment o

e as a going cble future. Furbt upon the Ba

Saudi Arabiannd

mpanies in the

xcept for theome (“FVSI”),

is the Bank’sded off to the

certain criticalabilities. It alsopolicies. Suchence and otherbelieved to bessumptions or

assets (3h),of control over

concern and isrthermore, theank’s ability to

 

3. Su

Thfoam

S A“ “e A“P

A“

Thdi

ThStbe

ummary of sig

he accounting or the year endemendments to t

Standards and

Amendments t“Consolidated Statements”

“Disclosure ofentities”

Amendments t“Financial Presentation”

Amendment to“ Impairment o

hese adoptionsisclosures.

he Bank has ctandards whicheginning on or

 

gnificant acco

policies adopteed December 3the existing sta

d amendment

to IFRS 10 Financial and IFRS

f interest in oth

to IAS 32 Instrumen

o IAS 36 of assets”

s have no mat

chosen not to h have been pafter January

ounting policie

ed are consiste31, 2013, excepandards that ar

s Effective

12 her

January201

nts: January

201

January201

terial impact o

early adopt thpublished and 1, 2015 (note 3

11 

es

ent with those dpt for the adope applicable to

e date

y 01, 4

Theseinves

y 01, 4

It claa) anset ifenforeventall cob) groif theor resreceivcycle

y 01, 4

It rerecov

on the consoli

he amendmentsare mandatory36).

described in thption of the follo the Bank duri

Brie

e amendmenstment funds if

arifies: n entity currentf that right isrceable both int of default, inounterparties; aoss settlement

e gross settlemesult in insignifvables and pa

e.

equires certainverable amount

idated financia

s and revisiony for complian

he annual consolowing relevaning 2014:

ef description

nts provide f they fulfill cer

tly has a legals not contingen the normal consolvency or baand is equivalent tent mechanismficant credit anayables in a si

n disclosure ot of impaired a

al statements o

ns to the Internnce by the ban

olidated financnt new standard

of changes

consolidation rtain specified

ly enforceableent on a futurourse of busineankruptcy of th

to net settlemenm has features tnd liquidity riskingle settlemen

of informationassets.

other than cert

national Financnks for the acc

ial statements ds and

relief for conditions.

e right to off-re event and ess and in the he entity and

nt if and only that eliminate k and process nt process or

n about the

tain additional

cial Reportingcounting years

 

Thbe a)

b)

c)

he significant aelow.

) Basis of co

The consofinancial sconsistent

Subsidiarieover the inand has the When the relevant fa- The- Rig- Ban

The Bank there are c

Subsidiarieconsolidatacquired othe effectiv

The consomethods fothe subsidfinancial s Since the s

Inter-grouppreparing t

) Trade dat

All regulardate (i.e. thway purchestablished

All other becomes a

) Foreign cu

Transactioprevailing are translaunrealized

 

accounting pol

onsolidation

olidated financistatements of taccounting po

es are the entitnvestee entity, e ability to affe

Bank has less tacts and circume contractual arghts arising fromnk’s current an

re-assesses whchanges to one

es are consolited from the dor disposed of ve date of acqu

olidated financfor like transaciaries are constatements of th

subsidiaries are

p balances andthese consolida

te accounting

r way purchasehe date on whihases or sales d by regulation

financial asseta party to the co

urrencies

ons in foreign at transaction

ated into Saudid gains or losse

licies adopted i

ial statements cthe subsidiarie

olicies.

ties that are coit is exposed,

ect those return

than a majoritymstances in asserrangement witm other contrad potential vot

hether or not it or more eleme

idated from thdate on which during the peruisition or up to

ial statements tions and othe

sistent with thahe subsidiaries

e fully owned b

d any income ated financial s

es and sales ofich the Bank bof financial as

n or convention

ts and liabilitiontractual prov

currencies ardates. Moneta

i Arabian Riyas on exchange

12 

in the preparati

comprise the fs are prepared

ontrolled by thor has a right,

ns through its p

y of the voting essing whetherth the other votctual arrangemting rights gran

controls an invents of control.

he date on whthe control is

riod, if any, areo the effective

have been preer events in simat of Bank’s acto align with t

by the Bank, th

and expenses statements.

f financial asseecomes a partyssets require dn in the market

es are also invision of the in

re translated iary assets and lals at the excha

are recognized

ion of these co

financial statemd for the same

he Bank. The B, to variable repower over tha

or similar righr it has power oters of the inve

ments nted by equity i

vestee entity if

hich control is s transferred fre included in tdate of dispos

epared using umilar circumstaccounting polithe Bank’s fina

here is no non-

arising from i

ets are initiallyy to the contradelivery of thot place.

nitially recogninstrument.

into Saudi Arliabilities at yeange rates prevd in the consol

onsolidated fina

ments of the Bareporting yea

Bank controls aeturns from its at entity.

hts of an investover the entity,estee entity

instruments su

f facts and circu

transferred torom the Bank.the consolidatesal, as appropri

uniform accouances. The accicies. Adjustmeancial statemen

-controlling int

inter-group tra

y recognized anctual provision

ose assets with

ized on the tra

rabian Riyals ear-end, denomvailing at the rlidated stateme

ancial statemen

ank and its subar as that of th

an entity wheninvolvement w

tee entity , it co, including:

uch as shares

umstances indi

o the Bank an. The results oed statement ofiate.

unting policies counting policients, if any, arnts.

terest to be disc

ansactions, are

nd derecognizen of the instrumhin the time fra

ade date at wh

at the spot eminated in forei

reporting date.ent of income.

nts are set out

bsidiaries. Thehe Bank, using

n, it has powerwith the entity

onsiders

icate that

nd cease to beof subsidiariesf income from

and valuationies adopted byre made to the

closed.

eliminated in

ed on the tradement). Regularame generally

hich the Bank

xchange ratesign currencies,. Realized and

 

d)

e)

) Offsetting

Financial awhen therintends to Income anaccounting

) Revenue/e

Income fr Revenue astatement estimated short perioflows consof the effethat are dir

The carryior receipts

Exchange

Exchange

Fees from

Fees fromassets are Arrangeme

Fees and transaction

Dividend i

Dividend investmen

Income / (

Net incomall realized

 

g

assets and liabre is a currentlsettle on a net

nd expenses ag standard.

expenses recog

om investment

and expenses of income on future cash flood) to its carrysidering all conective yield butrectly attributa

ing amount of ts. The change i

e income/loss

income/loss is

m banking servi

m banking servrecognized w

ent fees are rec

commission en is completed

income

income is rects are reflected

(Loss) from FV

me/(loss) from Fd and unrealize

bilities are offsly legally enfobasis, or to rea

are not offset

gnition

ts and financin

related to prothe effective

ows through theying amount.ntractual termst does not inclu

able to the acqu

the financial asn carrying amo

s recognized wh

ices, net

ices that are nwhen the relatcognized based

expense relateor the services

cognized whend as a compone

VSI financial i

FVSI financialed fair value ch

13 

set and reporteorceable right alize the asset a

t in the conso

ng

ofit bearing finyield basis. T

e expected life When calcula

s including all ude the future uisition, issue o

sset or liabilityount is recorde

hen earned/inc

not an integraled service is

d on the applica

mainly to tras are received.

n the right to ent of income f

instruments, n

l instruments rehanges, profit,

ed net in the coto set off the

and to settle th

olidated statem

nancial instrumThe effective y

of the financiaating the effectfees, transactiofinancing loss

or disposal of f

y is adjusted if ed as income/ex

curred.

l part of the eprovided. Maable service co

ansaction and

receive incomfrom FVSI fina

net

elates to financdividends and

onsolidated starecognized am

he liability simu

ment of incom

ments are recoyield is the ratal asset or liabitive yield the on costs, discoes. Transaction

financial asset o

the Bank revisxpense.

effective yield anagement, Adontracts as and

d service fees,

me is establisancial instrume

cial assets desiforeign exchan

atement of finamounts and wultaneously.

me unless req

ognized in thete that exactly ility (or where Bank estimate

ounts that are an costs are incror liability.

ses its estimate

calculation ondministration, when services

and are expe

shed. Dividendents, net.

ignated as FVSnge difference

ancial positionwhen the Bank

quired by any

e consolidateddiscounts theappropriate, a

es future cashan integral partremental costs

es of payments

n the financialAdvisory and

s are rendered.

ensed as the

ds from FVSI

SI and includes.

 

f)

Investmen

All investmon their clExcept forinvestmenbasis and c For securitmarket bidin mutual f

For securitreference texpected cdeterminedthese modjudgment i Followingonly if cerare determ Held as F Investmenon initial rshort term Investmenthe fair vacosts, if anexpensed reflected a

Available f

These are held for anrates or chUnrealized(OCI). Onthe consol

Investmen

These are associatedat amortize

 

nts

ment securitieslassification asr investments t upon initial rcharged to con

ties traded in od prices at the cfunds are deter

ties where therto the current mcash flows of td using a varie

dels is taken fris required in e

initial recognirtain condition

mined on the ba

FVSI

nts in this categrecognition. In.

nts at FVSI are lue are recognny, are not addthrough conso

as “Income from

for sale

investments nn unspecified phanges in equid gain or loss an de-recognitionidated statemen

nts held at amo

commodity M acquisition ched cost net of i

s are initially rs either held asheld as FVSI,recognition. Prsolidated statem

organized financlose of businermined by refe

re is no quotedmarket value othe security. W

ety of valuationrom observablestablishing fai

ition, subsequens are met. Theasis as set out in

gory are classinvestments clas

recorded in thized in the con

ded to the fair olidated statemm FVSI financ

neither classifieperiod of time, ity prices. Avaarising from a n, any cumulatnt of income.

ortized cost

Murabahas heldharges represenimpairment, if

14 

recognized at fs FVSI, availab incremental d

remiums are amment of incom

ncial markets, fess on the reporence to declar

d market price,f another instru

Where the fair n techniques the markets wheir values.

ent transfers bee subsequent pn the following

fied as either issified as tradi

he consolidatednsolidated incovalue measure

ment of incomecial instruments

ed as Held to mwhich may beailable for salchange in its

tive gain or los

d at amortizednting the fair vany.

fair value and ble for sale ordirect transactimortised and d

me.

fair value is deorting date. Faired net asset va

, a reasonable ument which ivalues cannot

hat include theere possible, b

etween the variperiod-end repg paragraphs.

investment heling are acquire

d statement of ome statement ement at initiale. Dividend ins, net” in the co

maturity nor de sold in respone investments fair value is rss previously r

d cost. These value of amoun

are subsequenr other investmion cost is alsodiscounts accre

etermined by reir value of manalues.

estimate of theis substantiallyt be derived fre use of mathembut where this

ious classes oforting values f

ld for trading oed principally

financial positfor the year inl recognition o

ncome on finanonsolidated inc

designated as Fnse to needs foare subsequen

ecognized in orecognized in O

are initially rents paid. Subse

ntly accounted ments held at ao added to theeted using the e

eference to excnaged assets an

e fair value is dy the same, or irom active marmatical modelsis not feasible

f investments afor each class

or those designfor the purpos

tion at fair valun which it ariseof FVSI investncial assets hecome statemen

FVSI and are ior liquidity, chantly measured other compreheOCI is charged

ecognized at cequently these

for dependingamortised cost.e fair value ofeffective yield

change quoted nd investments

determined byis based on therkets, they ares. The input toe, a degree of

are permissibleof investment

nated as FVSIse of selling in

ue. Changes ines. Transactiontments and areeld as FVSI isnt.

intended to beanges in profit at fair value.ensive incomed to income in

cost, includinge are measured

f

f

 

g

h

Investmen

An associaoperating accounted thereafter the value o The Bankstatement When the other unseobligation

g) Financing

Financing recognizedwritten off

All financthese are m

Financing products is

MurabahaBank has profit marg Ijarah: is the customIjarah couamount or Musharakenterprise customer. Bei Ajel: iprice.

h) Impairme

A financiaimpairmengroup of fifinancial amade on re

 

nts in associate

ate is an entitypolicies and for under the efor the post-acof investments

k’s share of itof income, an

Bank’s share oecured receivabs or made paym

g

assets are orid upon actual df, or upon trans

ing are initiallmeasured at am

primarily inclus as follows:

a: is an agreeminitially purchgin.

an agreement mer (lessee) requld conclude e

by termination

ka: is an agreor property anThe profit or l

is an agreemen

ent of financia

al asset or grount as a result ofinancial assets asset or group egular basis.

es

y where the Bwhich is neithequity method cquisition chan

if any.

ts associate’s d its share of m

of losses in anbles (if applicaments on behal

iginated or acqdisbursements.sfer of substant

ly measured atmortized cost le

udes Murabaha

ment whereby thased on behal

whereby the Bquest, based oneither by transn of lease and r

ement betweend concludes boss is shared a

nt whereby the

al assets

up of financial f one or more eand that eventof financial a

15 

Bank has signiher a subsidiawhereby inves

nge in the Bank

post-acquisitiomovements in o

n associate equable), the Banklf of the associ

quired by the . Financing astially all risk an

t fair value incess impairment

a, Ijarah, Mush

the Bank sells f of the custom

Bank, acting an his promise toferring the owre-possessmen

en the Bank aby transferrings per the terms

Bank sells to a

assets is classevents that occt (s) (loss eventssets that can

ificant influencary nor a joinstment is initiak’s share of net

on profits orother comprehe

uals or exceedsk does not recoiate.

Bank with fixssets are derecnd rewards of

cluding the asst (if any).

haraka and Bei

to a customermer. The sellin

as a lessor, puro lease the assewnership of thnt of underlying

and the customg the full ownes of the agreem

a customer cert

sified as impaircurred after thet) has an impacbe reliably est

ce (but not connt venture. Invally recognizedt assets in the a

losses is recoensive income

s its interest in ognize further l

xed or determcognized upon ownership.

sociated acquis

i Ajel products

r certain commng price comp

rchases or conset for an agreed

he leased assetg asset.

mer to contribership of the u

ment.

tain commodit

red when theree initial recognict on the estimtimated. An as

ntrol) over itsvestments in

d at cost and adjassociate, less

ognized in theis recognized

the associate, losses, unless i

minable paymenrepayment, or

sition charges.

. A brief descr

modity or an asprises of cost p

structs an assed rent over a spt to the lessee

ute to a certaunderlying inve

ty or an asset o

e is an objectivition of the fin

mated future casssessment for

financial andassociates are

djusted impairment in

e consolidatedin reserves.

including anyit has incurred

nts. These arer when sold or

Subsequently

ription of these

sset, which theplus an agreed

et according topecific period.

e at an agreed

ain investmentestment to the

on a negotiated

ve evidence ofnancial asset orsh flows of theimpairment is

f

 

i)

Impairmen A specific cost is recfall due. Trecoverablincluding original ef In additionmade on areporting probability When a fidirectly byin circumsloss has be If, in a suobjectivelyobligor’s caccount. Timpairmen Impairmen For equitycost represconsolidatstatement been recorequity is tr For sukukwhether thamortized difference previously If, in a subrelated to impairmen Property

Property aimpairmenamortized

BuildingsFurnitureLeasehol

 

nt of financial

provision for ognized if ther

The amount of tle amount. Theamounts estim

ffective yield ra

n to a specifica portfolio basdate. The pro

y of default, str

financial asset y a charge to instances where eeen determined

ubsequent periy to an event credit rating),

The amount of nt on financial

nt of available

y investments sents objectiveed statement oas long as the

rded can only bransferred to co

ks and like inhere is objectiv

cost. Howevebetween the a

y recognized in

bsequent periocredit event o

nt loss is revers

and equipmen

and equipment nt loss if any. Lon the straight

s e, equipment ld improvemen

l assets held at

losses due to imre is objective the specific proe estimated remated to be reate.

c provision forsis for losses wovision is estructural weakn

is uncollectibncome in the ceffectively all pd.

od, the amounoccurring aftthe previouslythe reversal isassets.

e for sale finan

held as availabe evidence of iof income. Thasset continue

be recognized onsolidated sta

nstruments havve evidence ofer, the amoun

amortized cost n the consolidat

od, the fair valoccurring aftesed through the

nt

are measured aLand is not dept-line method o

nts

16 

t amortised cos

mpairment of evidence that

ovision is the dcoverable amoecoverable fro

r losses, an addwhere there is timated based nesses and /or d

le, it is writteconsolidated stpossible means

nt of the impater the impairmy recognized is recognized in

ncial assets

ble-for-sale, a impairment. If he impairmentes to be recognin equity. On d

atement of inco

ving fixed or df impairment b

nt recorded foand the currented income stat

lue of these inr the impairme consolidated

at cost and prespreciated. The over the estima

st

a financing or the Bank will

difference betwount is the preom guarantees

ditional portfo objective evidon various f

deterioration in

en off against tatement of incs of recovery h

airment loss dment was recoimpairment losn the consolida

significant orf such evidencet loss cannot bnized i.e. any ide-recognitionome for the yea

determinable mbased on the s

or impairment nt fair value, letement.

nstruments incrment loss was

income statem

sented net of acost of other p

ated useful live

33 years 5-10 years the shorter o

any other final not be able to

ween the carryinesent value of s and collatera

olio provision dence that unifactors includin cash flows.

the related alcome. Financiahave been exha

decreases and ognized (such ss is reversed ated statement

r prolonged dee exists, an imbe reversed thincrease in fair

n, any gain or lar.

maturities, thesame criteria ais the cumul

ess any impairm

reases and the recognized in

ment.

accumulated deproperty and ees of the assets

f lease period o

ancial asset helo collect all amng amount andexpected futur

al, discounted

for collective identified losseing obligor’s

llowance for ial assets are wausted, and the

the decrease cas an improvby adjusting of income, un

cline in fair vmpairment loss hrough consolir value after imoss previously

Bank assesseas financial aslative loss mement loss on th

increase can bn the income

epreciation/ amequipment is de

as follows:

or 10 years

d at amortizedmounts as theyd the estimatedre cash flows,based on the

impairment ises exist at thecredit rating,

impairment orwritten off only

amount of the

can be relatedvement in thethe allowance

nder charge for

alue below itsis recorded inidated incomempairment hasy recognised in

es individuallysets carried at

easured as thehat investment

be objectivelystatement, the

mortization andepreciated and

 

j)

k)

l)

m)

The assetseach repordisposal. Gains andincluded in All assets indicate thto its recov Other rea

The Bankfinancing. realisable depreciatio Subsequenconsolidatassets to statement Financial

All customvalue.

Subsequencalculated on an effec Financial

In ordinarystandby lefinancial srecognitionthe best esAny increfinancial a

The commservices, n

) Provisions

Provisionsconstructivembodying

 ’ residual valurting date. Dep

d losses on din the consolida

are reviewed hat the carryingverable amoun

al estate

, in the ordinaSuch properti

value of due fion is charged o

nt to initial reted statement othe extent thiof income. Ga

Liabilities

mer deposits an

ntly, all profitby taking into

ctive yield basi

guarantees

y course of buetter of creditsstatements at n, the Bank's listimate of expease in the liab

assets”, in the c

mission receivenet" on a straigh

s

s are recognizve obligation ag economic be

ues, depreciatiopreciation is c

isposals are deated statement

for impairmeng amount may nt if the asset’s

ary course of ies are considefinancing and thon such propert

ecognition, anof income. Anys does not ex

ains or losses o

nd amount due

t-bearing finano account any is to maturity a

usiness, the Ban and acceptanfair value be

iability under eenditure requir

bility relating tconsolidated sta

ed is recogniseht line basis ov

zed when a reas a result of pnefit will be re

17 

on methods andcharged from t

etermined by of income.

nt at each reponot be recovercarrying amou

business, acquered as assets he current fair ties.

ny write downy subsequent rexceed the cumon disposal are

to banks and

ncial liabilitiesdiscount or prand charged to

nk gives financnces. Financial eing the valueeach guaranteered to settle anto the financiaatement of inco

d in the consover the life of th

eliable estimapast events andequired to settle

d useful lives athe month of

comparing pr

rting date wherable. The carrunt is greater th

uires certain rheld for sale avalue of the re

n to fair valueevaluation gain

mulative write recognised in

other financial

s are measureremium. Premi

consolidated s

cial guarantees guarantees are of the preme is measured any financial obal guarantee is ome.

olidated statemhe guarantee.

ate can be mad it is more like the obligation

are reviewed, anaddition and u

roceeds with c

enever events orying amount ihan its estimate

real estate propand are initiallelated properti

e, less costs n in the fair va

down is recothe consolidate

l institutions ar

ed at amortizeiums are amortstatement of in

s, consisting ore initially rec

mium receivedat the higher ofbligations arisin

recognized as

ment of income

ade by the Bkely than not tn.

nd adjusted if aup till the mo

carrying amou

or changes in is written downed recoverable

perties in settlly stated at theies, less any co

to sell, are chalue less costs tognised in theed statement o

re initially reco

ed cost. Amotized and disco

ncome.

f letter of credognized in the

d. Subsequent f the amortizedng as a result s “charge for i

under "Fees f

ank for a prethat an outflow

appropriate, atonth preceding

unt. These are

circumstancesn immediatelyamount.

lement of duee lower of netosts to sell. No

harged to theto sell of thesee consolidatedf income.

ognized at fair

ortized cost isounts accreted

dit, guarantees,e consolidatedto the initial

d premium andof guarantees.impairment of

from banking

esent legal orw of resources

f

 

n)

o)

p)

q)

r)

Accountin

Where the

When asseand disclobasis, usin Where the

Payments basis over When an obe made is Cash and

For the puamounts infinancial in De-recogn

A financiawhen contthe transfe

In instanceBank has transferredderecognizas assets o A financiawhen the o Short term

Short termservices arbonus or sresult of pa

Share bas

The Bank approved b

Employee

Under the grant date.

 

ng for Ijarah (

e Bank is the le

ets are leased uosed under “Finng the effective

e Bank is the le

made under opthe period of t

operating leases recognized as

cash equivale

urpose of the ncluded in casnstitutions with

nition of finan

al asset (or a patractual rights ter qualifies for

es where the Btransferred su

d nor retainedzed only if the

or liabilities any

al liability (or pobligation spec

m employee be

m employee bre provided. Ashare based plaast service pro

sed payments

offers its eligby SAMA is as

Share Particip

terms of ESP. Deductions ar

(leases)

essor

under (Ijarah),nancing”. Lea

e yield method,

essee

perating leasesthe lease.

e is terminated s an expense in

ents

consolidated sh, balances wih an original m

ncial instrumen

art of a financiato receive the cde-recognition

Bank is assesseubstantially alld substantiallyBank has not

y rights and ob

part of a financcified in the con

enefits

enefits are meA liability is reans if the Bankvided to the Ba

gible employees follows:

pation Scheme

PS, the eligiblere made on a m

18 

the present vase income is r, which reflects

s are charged to

before the leasn the period in w

statement of cith SAMA exc

maturity of nine

nts

al asset, or a pacash flows fromn.

ed to have tranl the risks andy all the riskretained contr

bligations creat

cial liability) cntract is either

easured on anecognized for tk has a present ank and the ob

es two types o

e (ESPS)

e employees armonthly basis f

alue of the learecognized oves a constant pe

o the consolida

se period has ewhich termina

cash flows, “ccluding statutorety days or less

art of a group om the financial

nsferred a finand rewards of

ks and rewardrol of the finanted or retained

can only be dedischarged, ca

n undiscountedthe amount exlegal or constr

bligation can be

of plans (the “

re offered sharfrom the emplo

ase payments ier the term of eriodic rate of r

ated statement

expired, any adation takes plac

ash and cash ry deposits, ans from the date

of similar finanl asset expire o

ncial asset, theownership. W

ds of ownersncial asset. The

in the process.

erecognized whancelled or exp

d basis and arxpected to be pructive obligate estimated reli

“Plans”). Brief

res at a pre-deoyee salary ove

s recognised athe lease on n

return.

of income on

dditional paymece.

equivalents” and due from bae of acquisition

ncial assets) is or the asset is tr

e asset is derecWhere the Banship, the finane Bank recogni.

hen it is extingpired.

re expensed apaid under shotion to pay thisiably.

f description o

etermined striker the vesting p

as a receivablenet investment

a straight-line

ent required to

are defined asanks and othern.

derecognized,ransferred and

cognized if thenk has neitherncial asset isizes separately

guished, that is

s the related ort term cash s amount as a

f the Plans as

ke price on theperiod of three

 

s)

t)

u)

v)

years. On they will b Employee

Under the maturity o The cost manageme The cost oending on The cumuextent to instrumentreporting pthat period End of ser Benefits pvaluation consolidat Zakat Zakat is cArabia andividends paid. Treasury These are dividends amount eq Investmen The Bank managemeusually depits investmManager. As a resulcases, andincome. Tconsolidat

 the completio

be entitled to re

Share Grant S

terms of ESGf the vesting p

of shares in ent is of the vie

of the schemethe date on w

lative expense which the vets that will ultperiod represend.

rvice benefits

payable to the in accordance

ted statement o

alculated in acnd is considere

and hence no

Shares

recorded at coand gains or l

qual to consider

nt managemen

provides inveent of certain pends on the a

ments, any carri

lt of the aboved therefore has The Bank’s shted statement o

on of the vestineceive their con

Scheme (ESGS

GS, eligible emeriod, the Bank

the schemes ew that the fair

es is recognizewhich the relev

recognized fosting period htimately vest. nts the movem

employees of e with Saudi of financial pos

ccordance withed as a liabilitt charged to th

ost and presentosses on sale oration paid.

nt services

stment managemutual funds

assessment of thied profit and e

e assessment, thnot consolidathare of inves

of financial pos

19 

ng period, shontribution alon

S)

mployees are grk delivers the u

is measured br value at grant

ed over the peant employees

or the schemes has expired anThe charge o

ment in cumula

f the Bank at tArabian Labo

sition.

h the Zakat rulty of the sharhe consolidate

ted as a deductof such shares.

ement servicess. Determininghe aggregate eexpected mana

he Bank has cted these fundstments is incsition.

ould the emplong with any pro

ranted shares wunderlying allo

by reference tt date approxim

eriod during ws become fully

at each reportnd the Bank’s

or credit to theative expense r

the end of theior laws. These

ules and regulareholders to bed statement o

tion from the e. Subsequent t

s to its customg whether the economic intereagement fees) a

concluded that ds. Fee earned cluded under

oyees decide nofit earned ther

with a vesting otted shares to

to the fair vamates its marke

which the servy entitled to theting date until s best estimate consolidatedrecognized as

ir services aree are included

ations applicabbe deducted frof income. Zak

equity as adjusto their acquisi

mers, through itBank control

ests of the Banand the investo

it acts as an aare disclosed i‘available for

not to exercise reon.

period of 3-5the employee.

alue at the gret value.

vice conditionse shares (‘the vthe vesting da

te of the numd statement of

at the beginni

e accrued based in other liab

ble in the Kingom retained e

kat is recorded

sted for any traition, these are

ts subsidiary wls such an invnk in the fund (ors rights to rem

agent for the inin consolidatedr sale’ invest

their options,

5 years. At the

rant date. The

s are fulfilled,vesting date’).

ate, reflects thember of equityf income for ang and end of

ed on actuarialbilities in the

gdom of Saudiearnings/futured as and when

ansaction cost,e carried at the

which includesvestment fund(comprising ofmove the Fund

nvestors in alld statement oftments in the

f

f

f

 

4. C

CashStatCashCurrOth

Tot

In astatumonpart

5. Due

CurrMurTot

6. Inve

MurAvaHeldInveTot

6.1 Ava

SukEquOthTot

The

SAR 6.2 Hel

The

Cash and balan

h in hand tutory deposit h managementrent accounts ers

al

accordance witutory deposit wnth. The statutot of cash and ca

e from banks a

rent accounts rabahas with bal

estments

rabahas with Sailable for sale d as FVSI inveestment in assoal

ailable for sale

kuks uities ers al

above investmR 261.7 million

d as FVSI inv

se are held for

 nces with Saud

t account with

th the Bankingwith SAMA aory deposit is nash equivalents

and other fina

anks and other

AMA, (at amoinvestments

estments ociate

e investments

ments are mainln) in funds ope

vestments

trading invest

di Arabian M

SAMA

g Control Law at stipulated penot available tos.

ancial instituti

r financial insti

ortized cost)

ly in quoted seerating outside

tments in quote

20 

onetary Agen

and regulationercentages of io finance the B

ions

itutions

ecurities and inthe Kingdom o

ed equities of d

ncy (SAMA)

ns issued by Sits customers’

Bank’s day to d

N

nclude investmeof Saudi Arabi

domestic mark

2SA

1,2,1,

6,

SAMA, the Badeposits as ca

day operations

2SA

10,10,

Notes 2SA

6,

6.1 1,6.2 6.3 6.4 8,

2SA

1, 1,

ent amounting ia.

ket.

2014 R’000

287,943 896,734 734,000

221 146,983

065,881

ank is required alculated at thand therefore

2014 R’000

114,661 203,193 317,854

2014 AR’000

,000,000 ,897,758 113,640

24,753 ,036,151

2014 AR’000

,087,086 534,937 275,735 ,897,758

to SAR 38.2 m

2013 SAR’000

987,697

2,175,612 1,700,000

1,944 107,214

4,972,467

to maintain ahe end of each

does not form

2013 SAR’000

151,080 4,821,101 4,972,181

2013 SAR’000

3,550,000 1,708,007

107,908 33,551

5,399,466

2013 SAR’000

1,087,117

228,783 392,107

1,708,007

million (2013:

 

6.3 Inve

InveinsuCom

OpeShar

6.4 Ana

FixeFloaEquOthTot

6.5 Ana

GovCorpTot

6.6 Ana

InveEquTot

The

estment in ass

estment in assourance companmmercial Regis

ening balance re of loss for t

alysis of invest

ed-rate investmating-rate invesuities ers al

alysis of invest

vernment and qporate al

alysis of invest

estment Grade uities and otheral

above classifi

 

sociate

ociate represenny). The compstration No.101

the year

tments by typ

ments stments

tments by cou

quasi governme

tments by cred

rs

cation reflects

nts the Bank’s any has a paid10342537 date

e

unter-parties

ent

dit quality

the implicit ra

21 

share of invesd up share capd 28 Rajab 143

ating of the secu

stment (28.75%pital of SAR 233H (correspon

urities issued b

%) in Alinma T200 million. Itnding to June

2SA

2SA

6,1,

8,

2SA

6,1,8,

2SA

7,

8,

by the counterp

Tokio Marine t has been esta18, 2012).

2014 AR’000

33,551 (8,798) 24,753

2014 R’000

000,000 087,086 648,576 300,489 036,151

2014 R’000

234,884 801,267 036,151

2014 R’000

087,086 949,065 036,151

parties.

(a cooperativeablished under

2013 SAR’000

43,987

(10,436) 33,551

2013 SAR’000

3,550,000 1,087,117

315,155 447,194

5,399,466

2013 SAR’000

3,661,440 1,738,026 5,399,466

2013 SAR’000

4,637,117 762,349

5,399,466

 

7. Fin

201 RetaCorpTotCollFina

2013 RetaCorpTotCollFina

7.1 Mov

201 BalaProvBadRevBalaCollTota

2013 BalaProvBadRevBalaCollTota

 

ancing, net (a

4

ail porate al lective provisioancing, net

3

ail porate al lective provisioancing, net

vement in allo

4

ance at the begvided during th

d debts written versals/recoveriance at the endlective provisioal

3

ance at the begvided during th

d debts written versals/recoveriance at the endlective provisioal

 

t amortized co

on

on

owance for im

ginning of the yhe year off ies of amounts

d of the year on

ginning of the yhe year off ies of amounts

d of the year on

ost)

Perform

11,942,053,9

Perform

9,335,745,

pairment of fi

year

previously pro

year

previously pro

22 

ming N

perf

907,369 038,020 945,389

ming N

perf

386,549 748,812 135,361

inancing:

ovided

ovided

Non-forming

238,146 12112,174 42350,320 54

Non-forming

190,653 9111,829 35302,482 45

R

R

Total Alim

2,145,515 2,150,194 4,295,709

Total Alim

9,577,202 5,860,641 5,437,843

Retail C

129,818 38,625

(91) (1,947)

166,405 46,863

213,268

Retail C

77,985 55,128

(339) (2,956)

129,818 46,863

176,681

llowance for mpairment

(166,405) (112,174) (278,579)

llowance for mpairment

(129,818)

(55,915) (185,733)

Corporate

55,915 56,259

- -

112,174 333,286 445,460

Corporate

- 55,915

- -

55,915 281,624 337,539

SAR’000

Net

11,979,110 42,038,020 54,017,130

(380,149) 53,636,981

SAR’000

Net

9,447,384 35,804,726 45,252,110

(328,487) 44,923,623

SAR’000

Total

185,733 94,884

(91) (1,947)

278,579 380,149 658,728

SAR’000

Total

77,985 111,043

(339) (2,956)

185,733 328,487 514,220

 

7.2 Cre

Thecred

For MRassidefasubj

Thefinaand PDs

7.2.1 Neit

Banratin

1 - 45 - 67 Tota

Rati

RatiRati

7.2.2 Agi

201 FromFromFromMorTot

2013 FromFromFromMorTot

edit quality of

Bank followsdit review/appr

the purpose oRATool, which

gn internal riskault (PDs). Creject to the MRA

Credit Risk Pancing policy, o

validated the Ms.

ther past due

nk’s internal ring scale

4 6

al

ng Scale (1 – 4

ng Scale (5 – 6ng Scale (7) re

ng of Financin

4

m 1 day to 30 dm 31 days to 9m 91 days to 1re than 180 dayal

3

m 1 day to 30 dm 31 days to 9m 91 days to 1re than 180 dayal

 financing por

s robust credit roval process c

f the internal ris also being

k ratings to indedit risks of theA tool rating.

Policy definesonly obligors wMRA rating sy

nor impaired

isk Cre

Inv Bel Wa Unr

4) represents:

6) represents: epresents:

ng (Past due b

days 0 days 80 days ys

days 0 days 80 days ys

rtfolio:

evaluation proombined with

risk rating, theused by seve

dividual obligoe Retail portfo

s a 10 point rawith risk ratingystem; and as a

:

edit risk quali

estment Gradeow Investment

atch list

rated exposure

Substa

Exce Good Watch

but not impair

23 

ocess anchoredstringent credi

e Bank has impral leading baors. The internolio is estimate

ating scale wig of 1 to 6 arean outcome, cal

ty rating defin

e t Grade

(Retail)

antially credit rellent credit risto Satisfactory

h list category.

red):

d on strong crit administratio

plemented the anks globally anal risk rating ied based on pe

ith 1 (best) thconsidered as

librated the sco

nition

risk free, Excepsk quality, Very credit quality

Retail

9,116,25

15,37

Retail

7,541,80

9,34

redit policies, on and limit mo

Moody’s Riskand in the Kinindicates the oersonal credit w

hrough 10 (wos eligible for fiore range with

201SAR’0

23,83017,950

41,78111,89153,673

ptionally stronry good credit r.

Corpor

12 2358 1

- -

70 25

Corpor

44 700

- -

44 7

extensive due onitoring.

k Analyst Toongdom, enableone year probabworthiness scor

orst). As part onancing. Bankrating grades a

4 000

2SA

0,755 17,0,459 18,5

- 1,214 35,61,999 9,33,213 45,0

g credit qualityrisk quality.

S

rate T

37,355 19,451

- -

56,806

S

rate T

71,917 - - -

71,917

diligence and

ol (MRA). Thees the Bank tobility of creditres, and is not

of the Bank’sk has reviewedand associated

2013 AR’000

124,721 552,174

- 676,895 377,205 054,100

y,

AR’000

Total

246,467 25,709

- -

272,176

AR’000

Total

79,461 1,800

- -

81,261

 

7.3 Eco

201 GovManElecBuiServConComOth ColFin

201 GovManElecBuiServConComOth ColFin

7.4 Collat The Bincludof SAR

 

onomic sectors

4

vernment and qnufacturing ctricity, water, lding, construcvices nsumer financinmmerce hers

llective provisiancing, net

3

vernment and qnufacturing ctricity, water, lding, construcvices nsumer financinmmerce hers

llective provisiancing, net

teral

Bank, in the orddes customers’ R 53,616 milli

 

s risk concentr

quasi governme

gas & health sction and real e

ng

ion

quasi governme

gas & health sction and real e

ng

ion

dinary course odeposits, finanon (2013: SAR

ration for fina

Pe

ent

services estate 1

1

5

Pe

ent

services estate 1

4

of business holncial guaranteeR 39,012 millio

24 

ancing and all

erforming

9,657,454 5,817,486

108,510 15,696,933

807,494 11,907,369 6,242,422 3,707,721

53,945,389

erforming

9,608,615 4,744,659

958,723 11,917,266 1,878,354 9,386,549 4,317,700 2,323,495

45,135,361

lds collateral aes, equities, reaon) against its s

lowance for im

Non-performing

238,146112,174

350,320

Non-performing

190,653111,829

302,482

as security to mal estate and osecured financ

mpairment are

g

Allowfor

impair

- - - - - 6 (1664 (112

0 (278

g

Allowfor

impair

- - - - - 3 (1299 (55- 2 (185

mitigate credit rother fixed assecing.

e as follows:

wance r

rment Fin

- - - - -

6,405) 2,174)

8,579)

wance r

rment Fin

- - - - -

9,818) 5,915)

- 5,733)

risk. These colets. The Bank

SAR’000

nancing, net

9,657,454 5,817,486

108,510 15,696,933

807,494 11,979,110 6,242,422 3,707,721

54,017,130 (380,149)

53,636,981

SAR’000

nancing, net

9,608,615 4,744,659

958,723 11,917,266 1,878,354 9,447,384 4,373,614 2,323,495

45,252,110 (328,487)

44,923,623

llateral mostlyheld collateral

 

7.5 Fina

Less1 toOve

Gro

Une

SpeNet

8. Pro

Cos

Bala

Add

Disp

Bal

Acc

Bala

Cha

Disp

Bala

Net Net

PropSAR Furn

Info CosAcc

Net

Net

ancing includes

s than 1 year 5 years

er 5 years

ss receivables

earned future fi

cific provisionreceivables fr

perty and equ

st:

ance at beginn

ditions

posals

ance at end of

cumulated depr

ance at beginn

arge for the yea

posals

ance at end of

t book value-a

book value-as

perty and equiR 93 million).

niture and equi

ormation tech

st cumulated depr

t book value-a

t book value-as

 

s Ijarah as follo

from Ijarah inance income

n rom Ijarah

uipment, net

ing of the year

f the year

reciation:

ing of the year

ar

the year

as at December

s at December 3

pment include

ipment include

hnology related

reciation/amort

as at December

s at December 3

ows:

on Ijarah

r

r

r 31, 2014

31, 2013

es work in prog

es information t

d assets:

tization

r 31, 2014

31, 2013

25 

Land and

buildings im

713,888

111,416

-

825,304

22,644

9,987

-

32,631

792,673

691,244

gress as at Dec

technology-rel

Leasehold mprovements

255,228

24,979

-

280,207

81,583

25,921

-

107,504

172,703

173,645

cember 31, 20

lated assets as

Ta

(2

SA

16

17

25

(6,

19

Furniture and

equipment

1,074,199

89,042

(4,934)

1,158,307

464,176

117,644

(1,715)

580,105

578,202

610,023

014 amounting

follows:

angible InS

437,148 207,157)

229,991

231,928

2014 AR’000

1,356,279

6,825,126 7,409,870

5,591,275

,435,237)

(609)

9,155,429

SAR

Total 2014

9 2,043,315

2 225,437

) (4,934)

7 2,263,818

6 568,403

4 153,552

) (1,715)

5 720,240

2 1,543,578

3

g to SAR 103 m

ntangible SAR’000

600,428 (279,939)

320,489

337,370

2013 SAR’000

730,7976,535,945

13,460,079

20,726,821

(4,880,848)

(608)15,845,365

R’000

Total 2013

1,878,350

219,120

(54,155)

2,043,315

430,526

154,141

(16,264)

568,403

1,474,912

million (2013:

Total

1,037,576 (487,096)

550,480

569,298

 

9. Othe

Acc- - - TotaPrepAdvOthOthOthTot

9.1. This r 10. Due

TimOthTot

10.1 It re 11. Cus

i) Cus

DemCusOthTot

11.1 It re

11.2 Oth

er assets

crued income rDue from banInvestments Financing

al paid rental vances to supplher real estate her prepaymenthers tal

represents the p

e to banks and

me investments hers tal

epresents Mura

stomers’ depo

tomers’ deposi

mand tomers’ time iners al

epresents Mura

ers represent c

 

eceivable on: nks and financi

liers

ts

properties held

d other financi

from banks an

abaha, Mudarab

osits

its include the

nvestments

abaha and Mud

ash margins fo

al institutions

d for sale which

ial institutions

nd other financ

ba and Wakala

following:

daraba with cus

or letters of cre

26 

h were acquired

s

cial institutions

a with banks.

stomers.

edit and guaran

N

9

d in settlement

N

s

N

ntees.

Note 2

SA

9.1 1,

t of financing d

Note 2SA

10.1

Note 2SA

32,

11.1 26,11.2

59,

2014

AR’000

24,159 18,365

440,031 482,555

32,283 7,947

80,300 41,026

617,303 ,261,414

due from a cus

2014 AR’000

29,959 2,698

32,657

2014 R’000

013,183 822,730 591,912 ,427,825

2013

SAR’000

36,37415,523

502,669554,566

32,4062,368

90,00040,022

539,2211,258,583

tomer.

2013 SAR’000

200,000736

200,736

2013 SAR’000

21,999,08520,488,205

275,33342,762,623

 

ii) The

DemCusOthTot

12. Oth

Acc- C- TTotaAccOutwAccAdvOthTot

13. Sha

Theshar The

PubPubGenGenTot

14. Stat

In aincoAccto st

 

 

 

15. Tre

above include

mand tomers’ time iner al

her liabilities

crued profit payCustomers’ timTime investmeal crued expenses ward drafts pay

counts payable vance rentals ers al

are capital

authorized, isres) of SAR 10

ownership of

lic Pension Aglic Investment

neral Organizatneral public andal

tutory reserve

accordance withome is requiredcordingly, SARtatutory reserv

asury shares

 

es foreign curre

nvestments

yable on: me investmentsents from banks

yable

sued and fully0 each.

the Bank’s sha

gency (“PPA”) Fund (“PIF”)

tion for Social d others

e

h the Banking d to be transfe

R 316.1 millione. The statutor

ency deposits a

s s and other fina

y paid share cap

are capital is as

Insurance (“G

Control Law ierred to a statun (2013: SAR ry reserve is no

27 

as follows:

ancial institutio

pital of the Ba

s follows:

OSI”)

in the Kingdomutory reserve u251.19 millioot available for

ons

ank consists of

m of Saudi Arauntil this reservon) has been trar distribution. 

2SA

2,4,

6,

2SA

2,

3,

f 1,500 million

2

abia, a minimuve equals the pansferred from

2014 R’000

339,091 078,346 168,574 ,586,011

2014 R’000

98,641

3 98,644

217,137 333,072 221,443 559,965

31,884 462,145

n shares (2013:

2014 Percenta

10.71 10.00 10.00 69.29

100.00

um of 25% of paid up capita

m the net incom

2013 SAR’000

1,339,464 4,796,824

47,879 6,184,167

2013 SAR’000

68,186 39

68,225 133,226

2,450,592 92,589

448,117 13,193

3,205,942

1,500 million

2013 age

10.7110.0010.0069.29

100.00

the annual netal of the Bank.me for the year

 

The

16. Com a) Leg

As b) Cap

Asrel

c) Cr

Creunuensrepoblguadoe

Dohav

Acmo Coguacrestaas

i) Th

20

Le

Le

Ac

Irr to

To

se shares have

mmitments an

gal proceeding

at December 3

pital commitm

at December 3ating to proper

redit related co

edit related coused irrevocabsure that fundspresent irrevocligations to tharantees and stes not generall

ocumentary lettve significantly

cceptances comost acceptances

ommitments to arantees and leedit risk as mandards. The tomany of these

he contractual m

14

etters of credit

etters of guaran

cceptances

revocable commo extend credit

otal

 

been acquired

nd contingenci

gs

31, 2014 there

ments

31, 2014, the Brty and equipm

ommitments a

ommitments anble commitmens are availablecable assurancehird parties, catandby letters oy expect the th

ters of credit ay lower risk.

mprise undertaks to be presente

extend credit etters of credit.

most commitmotal outstanding

commitments

maturity structu

ntee

mitments

d, after due app

ies

were no signif

Bank had capitament.

and contingen

nd contingencnts to extend

e to customers es that the Banarry the same of credit are co

hird party to inv

are generally co

kings by the Bed before being

represent the u With respect tents to extendg commitmentscould expire o

ure of the Bank

Within 3 months

892,421

471,747

309,664

1,948,122

3,621,954

28 

provals, for disc

ficant legal pro

al commitment

ncies

cies comprise financing facias required. L

nk will make credit risk as

onsiderably lesvoke such com

ollaterised by

Bank to pay big reimbursed b

unused portionto these commd credit are cs to extend credor terminate wit

k’s commitmen

3-12 month

605,80

1,026,38

9,97

1,642,16

charging the ob

oceedings outst

ts of SAR 88.6

letters of guailities. The pr

Letters of guarpayments in t

s investments ss than the am

mmitments.

the underlying

ills of exchangby the customer

n of approved cmitments, the Bacontingent upodit do not neceithout being fun

nts and conting

hs 1-5 ye

05 22

83 2,867

76

-

64 2,889

bligations of em

tanding agains

6 million (2013

arantee, letters rimary purposerantee and stanthe event that and financing

ount of the com

g assets to whi

ge drawn on curs.

credit, principaank is exposedon customers essarily represended.

gencies is as fo

ears O

2,636

7,323

-

-

9,959

mployees shar

t the Bank.  

3: SAR 84.5 m

of credit, acce of these instndby letters ofa customer ca

g. Cash requirmmitment bec

ich they relate,

ustomers. The

ally in the formd to an insignif

maintaining sent future cash

ollows:

Over 5 years

-

21,579

-

-

21,579

re based plans.

million)

ceptances andtruments is tof credit, whichannot meet itsrements undercause the Bank

, and therefore

Bank expects

m of financing,ficant potentialspecific credit

h requirements,

SAR’000

Total

1,520,862

4,387,032

319,640

1,948,122

8,175,656

 

20

Le

Le

AcIrr to

To

ii) Th

GovCorpBan

Tot

iii) Th

tim d) Ope

The

LeOnOv

To

13

etters of credit

etters of guaran

cceptances revocable commo extend credit

otal

he analysis of c

vernment and qporate

nks and other fi

al

he outstanding ume by the Bank

erating lease c

future minimu

ess than one yene year to five ver five years

otal

 

ntee

mitments

ommitments an

quasi governme

inancial institu

unused portionk, amounts to S

commitments

um lease paym

ar years

Within 3 months

961,931

412,543

221,980

3,145,333

4,741,787

nd contingenci

ent

utions

n of commitmeAR 16,425 mi

ments under non

29 

3-12 month

851,13

1,612,66

14,38

2,478,18

ies by counter-

ents as at Decemllion (2013: SA

n-cancellable o

hs 1-5 ye

38 5

62 550

86

-

86 556

-party is as foll

mber 31, 2014AR 9,426 milli

operating leases

ears O

5,953

0,578

-

-

6,531

lows:

SA

151

8

, which can beion).

s where the Ba

SA

Over 5 years

-

16,468

-

-

16,468

2014 AR’000

1,901,210

5,196,058

1,078,388

8,175,656

e revoked unila

ank is lessee ar

2014 AR’000

101 153,877 212,427

366,405

SAR’000

Total

1,819,022

2,592,251

236,366

3,145,333

7,792,972

2013 SAR’000

713,0356,427,098

652,839

7,792,972

aterally at any

re as follows:

2013 SAR’000

556172,620197,690

370,866

6 0 0

6

 

17. Inco

In In In M FTo Re Cu TiTo

18. Fee

In

C T C F Ex C O

ome from inve

come from invnvestments (Mnvestments in S

Murabaha with Financing otal

eturn on time ustomers’ timeime investmenotal

s from bankin

come on:

Corporate finanTrade services Card services Fund managem

xpense on: Card services Other fees

 

estments and f

vestments andMurabaha with S

Sukuk banks and othe

investments: e investments ts from banks

ng services, ne

nce and advisor

ent and other b

financing acti

d financing: SAMA)

er financial ins

and other finan

et

ry

banking service

30 

ivities, net

stitutions

ncial institution

es

ns

SA 2 2 ( ( 2

SA

2014 AR’000

29,142 21,374 46,916

2,188,292 2,285,724

(209,074) (1,702)

(210,776)2,074,948

2014 AR’000

157,571 49,196

154,352 113,242 474,361

(74,405) (3,743) 396,213

2013 SAR’000

25,19317,55259,410

1,918,5442,020,699

(179,217(6,647

(185,8641,834,83

2013 SAR’000

149,69224,333

120,59237,864

332,481

(57,600(2,283272,59

3 2 0 4 9

) )

4)5

2 3 2 4 1

) ) 8

 

19. Sala

Thecom

Categ

Senior SAMEmplo takinEmplo contr

Other Outso (enga activ Variab accru

Other bene

Total

19.1 Sali

As athe “Co

Therevi

Whicapi

Thewithrelevnece

20. Ear

Basoutsacco

aries and empl

following tabmpensation prac

gories of emplo

r executives reMA no objectiooyees engaged ng activities oyees engaged rol functions

employees ourcing employaged in risk takvities)

ble compensatiued

employee relaefits

ient features o

an integral partSAMA guide

ompensation &

Bank has alsoiew and recomm

ile developing ital, liquidity an

Bank has adoh the aforesaid vant job functessary revision

rnings per sha

ic and diluted standing shareounting for trea

 

loyee related e

ble summarizectices.

Numemoyees

2014equiring ons 15

in risk 450

in 114

1,199yees king

1,778ion

ated

1,778

of Compensati

t of the compenelines and Fin

Allowances” p

o established amend sound co

and implemennd sustainabili

opted fixed as wrisks but also

tion. The Banns as and when

re

earnings per ss which were asury shares.

expenses

es the Bank’s

mber of mployees

4 2013

5 15

0 348 1

4 112

9 1,190 2

- - 8 1,665 4

1

8 1,665 6

ion Policy

nsation governancial Stabilitpolicy approve

a Nomination ompensation po

nting such polity as well as ti

well as variablwith the overak consistently required.

share are calcu(Basic:1,485

31 

employee cat

Fixed compensatio

2014 2

30,284 26,

35,261 109,

40,328 54,

56,545 226,

- 462,418 417,

19,339 45,

55,270 29,

637,027 492,

nance, the Bankty Board (FSBed by the Board

and Compensaolicies for adop

licies, the Bankiming of revenu

le compensatioall performance

evaluates its

ulated by dividmillion, dilut

tegories define

on C

2013 2014

,229 10,470

,396 22,880

,972 6,389,916 31,628

- -,513 71,367

,471

,607

,591 71,367

k follows approB) Principles/Sd of Directors

ation Committption by the Ba

k has sought tue streams.

on schemes. The of the Bank a

compensation

ding the net inted 1,490 mill

ed in accordan

Variable C

Cash

2013 20

9,569

17,655

7,522

25,740

- 60,486

60,486

opriate compenStandards. The(the “Board”).

tee. It has beenank.

to align the sa

he variable coand the individun policies agai

ncome by the wlion) shares at

nce with SAM

Compensation

Shares

014 2013

- -

- -

- -

- -

- - - -

- -

nsation practice Bank has im

n mandated by

ame with the ri

mponent is aliual, and risk ininst the indust

weighted averat the end of t

MA’s rules on

SAR’0n paid

Total

2014 20

10,470 9,5

22,880 17,6

6,389 7,5

31,628 25,7

- 71,367 60,4

71,367 60,4

ces in line withmplemented a

y the Board to

isks related to

igned not onlynvolved in thetry and makes

age number ofthe year, after

000

013

569

655

522

740

- 486

486

f

 

21. Pro

Pro

Es

Pro

TheZakfina31, 2

22. Cas

Cash

CashBalaDue ninTot

23. Ope

Opereviallo Thetermliab

The

a)

b)

c)

posed dividen

oposed net of z

timated zakat f

oposed gross d

Bank has filedkat and Incomeancial year 2012014 amountin

sh and cash eq

h and cash equ

h in hand ances with SAMe from banks annety days of acal

erating segme

erating segmeniewed by the kcate resources

Bank’s primams as approvedilities.

e Bank’s report

Retail bankin

Financing, dep

Corporate ba

Financing, dep Treasury

Murabahas wi

 nd and zakat

zakat dividend

for the year

dividend (5.4%

d its Zakat retue Tax (DZIT).3 have been se

ng to SAR 64.9

quivalents

uivalents includ

MA excluding nd other financ

cquisition

nts

nts are identifikey decision m

to the segment

ary business isd by the manag

table segments

ng

posit and other

anking

posit and other

ith banks, inve

(5%)

%)

urns for the ye. Zakat amounet-off with reta95 million has

ded in the cons

statutory depocial institutions

ied on the basmakers includin

ts and to assess

s conducted ingement. Major

are as follows

r products/serv

r products and

estments and tr

32 

2SAR

7

8

ars up to and inting to SAR ained earningsbeen deducted

solidated statem

osit s maturing with

sis of internal ng CEO and ths their perform

n Saudi Arabiarity of the segm

s:

vices for individ

services for co

easury services

2014 R’000

745,148

64,952

810,100

including the f962.3 million

s while the estid from the prop

ment of cash flo

hin

reports abouthe Assets and Lmance.

a. Transactionment assets an

duals and smal

orporate and in

s.

2013 SAR’000

-

-

-

financial year 2related to the

imated zakat foposed gross div

ows comprise

20SAR

1,2 1,8

6,8

10,0

t activities of Liabilities Com

ns between thend liabilities co

ll businesses.

nstitutional cust

2014

SAR

0.50

0.04

0.54

2013 with the De years up to for the year endvidend for the y

the following:

014 R’000

287,943 881,204

896,956 066,103

the Bank thatmmittee (ALCO

e operating segomprise operat

tomers.

2013

R per share

-

-

-

Department ofand includingded Decemberyear.

2013 SAR’000

987,697 1,809,158

3,243,877 6,040,732

t are regularlyO), in order to

gments are onting assets and

f

 

d)

Profwhi

Follo

201

TotTotInco anFee anTotChaDepOthTotNetShaNet

201

TotaTotaInco anFee anTotaChaDepOthTotaNetShaNet

Investment a

Investment marranging, adv

fit is charged ch approximat

owing is an ana 4

tal assets tal liabilities ome from inved financing, nes from bankingd other income

tal operating iarge for impairpreciation and aher operating extal operating et operating incare of loss fromt income

3

al assets al liabilities ome from inved financing, nes from bankingd other incomeal operating inarge for impairpreciation and aher operating exal operating ext operating incoare of loss fromt income

 

and brokerage

management, bvising and cust

or credited to e the marginal

alysis of the Ba

stments et g services e ncome ment of assets amortization xpenses expenses come

m associate

stments et g services e come ment of assets amortization xpenses xpenses ome

m associate

e

brokerage servtody of securiti

operating segcost of funds.

ank’s assets, lia

Retail13,550,737,451,6

740,4

99,9840,3

36,677,1

567,5681,3158,9

158,9

Retail11,182,425,238,6

555,3

76,0631,4

52,76,

466,0594,4

36,9

36,9

33 

vices and asseties.

gments using i

abilities, incom

Corpor763 42,998,678 6,874,

407 969,

915 225,322 1,194,

678 124,104 48,560 271,342 444,980 750,

- 980 750,

Corpor470 36,953662 6,464

322 946

094 178416 1,125173 222178 55098 239449 517967 607

- 967 607

t management

internally deve

me and results b

SAR

rate Treas,935 23,42,566 17,96

,924 36

,057 13,981 49

,995 ,767 2,042 14,804 16,177 32

- (,177 31

SAR

rate Trea3,160 14,364,671 14,15

6,927 32

8,309 155,236 482,051 5,687 29,669 97,407 17,829 36

- (17,829 35

t activities rel

eloped Fund T

by operating se

’000

sury

Inve

bro28,187 64,879

61,851

33,482 95,333

- 26,681 40,240 66,921 28,412 (8,798) 19,614

R ’000

asury

Inve

bro60,520 55,670

29,874

51,511 81,385

- 21,355 93,604 14,959 66,426 0,436) 55,990

lated to dealin

Transfer Pricin

egments:

estment &

kerage 883,974 8631,504 6

2,766

86,437 89,203

- 1,000

52,543 53,543 35,660

- 35,660

estment &

kerage 505,082 6310,298 4

2,712

38,326 41,038

- 921

36,146 37,067 3,971

- 3,971

ng, managing,

ng (FTP) rates

Total 0,861,859 2,922,627

2,074,948

544,891 2,619,839

161,673 153,552

1,031,385 1,346,610 1,273,229

(8,798) 1,264,431

Total 63,001,232 46,169,301

1,834,835

444,240 2,279,075

274,224 154,141 835,517

1,263,882 1,015,193

(10,436) 1,004,757

 

The B

201

On Com coTota

201

On Com coTota

Credothe

24. Cre

Credmeearisesuch

Thewhicustday Testand

To eRiskrevi

Anacom

Bank’s credit e

4

balance sheet ammitments andntingencies al

3

balance sheet ammitments andntingencies al

dit exposure cer assets. The c

edit risk

dit risk is the met its obligatione principally fh as letters of c

Bank activelych provide gutomers, standa

to day accouting process, ucapital allocat

ensure proper k Managementiewing and safe

alysis of invesmmitments and

 

exposure by op

assets d

assets d

omprises the ccredit equivalen

most significanns to the Bankfrom financingcredit/acceptan

y manages its cuidance, amonrd due diligen

unt managemenused to evaluattions.

check and balat Group (RMGeguarding the C

stments is provcontingencies

perating segmen

Retail11,932,2

11,932,2

Retail9,400,5

9,400,5

carrying value nt value of com

nt risk for the Bk and, thereforeg and investmeces, letters of g

credit risk expong others, on nce process, rent and problemte the potential

ance of generaG) led by a ChieCredit and othe

vided in note refer note (16)

34 

nts is as follow

Corpor247 41,704,

- 8,175,247 49,880,

Corpor520 35,523

- 7,792520 43,316

of balance shmmitments and

Bank’s businese, could result ent, there is alsguarantee, and

osure through ttarget marke

eview and apprm recognition/l impact of ne

ating business ef Risk Officerer Risk Policie

(6). For detai).

ws:

SAR

rate Treas,734 17,38

,656 ,390 17,38

SAR

rate Trea3,102 9,59

2,972 6,074 9,5

eet assets, excd contingencies

ss. It is definedin a financial

so credit risk iother forms of

the establishmet, risk acceptroval process,/remedial actioegative factors

and taking on r (CRO), taske

es.

ils of the com

R ‘000

sury

Inve

bro87,211

- 87,211

R ‘000

asury Inve

& br91,650

- 591650

cluding cash, ps are included i

d as the risk thloss for the B

in off-balance f financial com

ment of Credit Rtance criteria,

documentatioon. Bank has on asset quali

credit risks, thed with the resp

mposition of fi

estment &

kerage 166,052 7

- 166,052 7

estment rokerage

182,324

- 182,324

property and eqin credit expos

at a counterparBank. While cre

sheet financiammitments.

Risk Policies aminimum dis

on, concentratia robust Credity, risk rating

he Bank has aponsibility of i

inancing refer

Total 71,190,244

8,175,656 79,365,900

Total 54,697,596

7,792,972 62,490,568

quipment, andsure.

rty may fail toedit exposuresal instruments,

and proceduressclosure fromon limits, and

dit Risk Stresss, profitability

an independentimplementing,

note (7). For

 

24.1 Geoand

201FinCasDueInveFinaOthTotFinDueCusOthTotComMa eq co

201FinaCasDueInve

FinaOthTotaFinaDueCusOthTotaComMax eq co

ographical cond contingencies

4 ancial assets

sh and balancese from banks anestments ancing, net

her assets tal financial asancial liabilitie to banks and stomers’ deposher liabilities tal financial liammitments anximum credit

quivalent amountingencies

3 ancial assets sh and balancese from banks anestments

ancing, net her assets al financial assancial liabilitiee to banks and stomers’ deposher liabilities al financial liabmmitments andximum credit e

quivalent amounntingencies

 

ncentration ofs.

s with SAMA nd other financ

ssets ies other financialits

abilities nd contingencit exposure (staunts) of comm

s with SAMA nd other financ

sets es other financialits

bilities d contingenciesexposure (statents) of commit

f financial asse

cial institutions

l institutions

ies ated at credit

mitments and

cial institutions

l institutions

s ed at credit tments and

35 

ets with credit

Kingdom oSaudi Arab

6,065,8s 4,397,9

7,997,953,636,91,180,1

73,278,8

2,659,427,82,902,1

62,332,78,175,6

3,206,9

Kingdom oSaudi Arab

4,972,4s 3,081,6

5,137,7

44,923,61,183,7

59,299,2

200,042,762,62,757,8

45,720,47,792,9

3,468,9

t risk exposur

of bia

Other GCMiddle

881903 4,44901981158824 4,44

698 2825180703 2656

953

of bia

Other GCMiddle

467639 1,18775

623787291 1,18

000623825448972

963

re, financial lia

SAR’000 CC and

East Euro

-43,967 1,452

- 13--

43,967 1,466

29,959--

29,959-

-

SAR’000 CC and

East Euro

-87,489 580

- 261

-87,489 842

--

--

-

abilities, comm

ope Other

countri

- 2,876 23,13,200 25,0

- -

6,076 48,1

- - -

-

-

ope Other

countrie

- 0,594 122,41,691

- 2,285 122,4

- 7- - - 7-

-

mitments

r es Total

- 6,065,88108 10,317,85050 8,036,15

- 53,636,98- 1,180,15

158 79,237,02

- 32,65- 59,427,82- 2,902,18

62,362,66- 8,175,65

- 3,206,95

r es Total

- 4,972,46459 4,972,18

- 5,399,46

44,923,62- 1,183,78

459 61,451,52

736 200,73- 42,762,62- 2,757,82

736 45,721,18- 7,792,97

- 3,468,96

815451815825

5725806256

53

678166

238724

3623258472

63

 

24.2 The

fina

20

NoAl

20

NoAl

25. Ma

i.

ii.

a)

e distributionsancing are as f

14

on performing lowances for im

13

on performing lowances for im

rket risk

Market risk ischanges in mThe Bank clas

Market risk – The Bank holregularly marincome. Market risk –

Market risks orisks. It also f

Profit rate ri

It arises fromfinancial instradjusted to ac Given the assthan profit ramaterial adver Yield sensitiv

The Bank manmarket profit for USD lendrepresentativecharges profiton marginal c

The table belfinancial instr

 

s by geograpfollows:

financing, netmpairment on

financing, netmpairment on

s the risk that tmarket variables

ssifies exposur

– trading book

lds an insignifked to market

– non trading

on its non-tradfaces price risk

sk

m changes in pruments. Treas

ccount for liqui

set and liabilitiate sensitive liarse impact on t

vity of assets, l

nages exposurerates on its fin

ding as a bence of the actual t rates based on

costs of funds.

low summarizruments at carr

hical concent

t financing

t financing

the fair value os such as equires to market ri

k

ficant market rand losses or g

book

ding book mainks on those sec

profit rates whsury imputes tidity premium b

ies configuratioabilities, potenthe consolidate

liabilities and

e to the effectsnancial positionchmark rate fotransactions inn the maturity

zes the Bank’srying amounts,

36 

tration of imp

Kingdom of SaArabia

350,3658,7

Kingdom of SaArabia

302,4514,2

or the future caity prices, profisks into either

risk on its tradgains on equity

nly arise from pcurities held as

hich will affecthe funding cobased on the d

on of the Bankntial increases ed statement of

off balance sh

s of various riskn and cash flowor different man the market, m

of loans (long

s exposure to categorized by

paired financi

audi Other Gand Mi

East cou320 728

audi Other Gand Mi

East cou482 220

ash flows of thfit rates, foreigr trading or non

ding book posity prices are tak

profit rate risk“available for

ct either the faosts based on duration of the

k, where the prin profit rates

f income of the

heet items

ks associated wws. The Bank uaturities. At ti

marginal cost-oger term loans

profit rate risy the earlier of

ing and allow

SAR’000 GCC iddle

untries Eur- -

SAR’000 GCC iddle

untries Eur- -

e financial instgn exchange ran-trading (or ba

tion of equitieken directly in

k and to a verysale.”

air values or ththe yield curvfinancing.

rofit rate sensis during the nee Bank.

with fluctuatiouses the SAIBOimes when theof-fund is prov

usually requir

sks. Included if contractual re

wances for im

rope Other

countri- -

rope Other

countri- -

trument will flates, and commanking book).

s in local currnto consolidate

y minor extent

he future cashve and the ma

itive assets areext 12 months

ns in the prevaOR for SAR anese benchmarkvided by Treasure a higher pro

in the table ae-pricing or ma

mpairment on

r ies Total - 350,320- 658,728

r ies Total - 302,482- 514,220

luctuate due tomodity prices.

rency which isd statement of

from currency

h flows of theargins are also

e much greaters will have no

ailing levels ofnd the LIBOR

k rates are notury. The Bank

ofit rate) based

re the Bank’saturity dates.

0 8

2 0

f

f

 

2014 Assets Cash anDue fro instituInvestmFinanciPropertOther aTotal aLiabili equity

Due to instituCustomOther lShareh

Total l equityYield s financYield s financTotal Y

Cumul

nd balances wiom banks and outions ments ing, net ty and equipmeassets assets ities & sharehy

banks and othutions mer deposits iabilities olders’ equity

liabilities & shy sensitivity - Oncial position sensitivity - Ofcial position Yield sensitivity

lative yield sen

 

ith SAMA other financial

ent, net

olders’

er financial

hareholders’

n statement of

ff statement of

y gap

nsitivity gap

Within 3 months

-

8,064,5866,000,000

16,185,304--

30,249,890

29,95912,846,356

-

12,876,315

17,373,575f

3,621,95420,995,529

20,995,529

37 

3-12 months

-

187,587-

18,823,411--

19,010,998

-7,064,567

-

7,064,567

11,946,431

1,642,16413,588,595

34,584,124

SAR

1-5 years

-

1,951,0201,087,086

16,768,896--

19,807,002

-6,911,807

-

6,911,807

12,895,195

2,889,95915,785,154

50,369,278

R’000

Over 5 years

-

- -

1,859,370 - -

1,859,370

- - -

-

1,859,370

21,579 1,880,949

52,250,227

Non-profit bearing

6,065,881

114,661949,065

-1,543,5781,261,4149,934,599

2,69832,605,0953,462,145

17,939,232

54,009,170

(44,074,571)

-

Total

6,065,881

10,317,8548,036,151

53,636,9811,543,5781,261,414

80,861,859

32,65759,427,8253,462,145

17,939,232

80,861,859

8,175,656

 

2013 Assets Cash anDue fro instituInvestmFinanciPropertOther aTotal aLiabili equityDue to instituCustomOther lShareh

Total l equityYield s financYield s financTotal y

Cumul

b) Curre

RepreseAppetitin foreiUnited

nd balances wiom banks and outions ments ing, net ty and equipmeassets assets ities & sharehy banks and oth

utions mer deposits iabilities olders’ equity

liabilities & shy sensitivity - Oncial position sensitivity - Ofcial position yield sensitivity

lative yield sen

ency risk

ents the risks te Framework ign exchange bStates Dollars

 

ith SAMA other financial

ent, net

olders’

er financial

hareholders’

n statement of

ff statement of

y gap

nsitivity gap

of change of vand policies cobecause its ass(USD) or in U

Within 3 months

-

3,689,6411,350,000

10,148,775

15,188,416

200,00011,872,248

--

12,072,248

3,116,168f

4,741,7877,857,955

7,857,955

value of financontain limits foets and liabilit

USD pegged cu

38 

3-12 months

-

943,9372,200,000

11,727,659

14,871,596

-8,610,194

--

8,610,194

6,261,402

2,478,1868,739,588

16,597,543

cial instrumenor positions byties are mainlyurrencies.

SAR

1-5 years

-

187,523-

17,682,148

17,869,671

-5,763

--

5,763

17,863,908

556,53118,420,439

35,017,982

nts due to chany currencies. Hy denominated

R’000

Over 5 years

-

- 1,087,117 5,365,041

6,452,158

- - - -

-

6,452,158

16,468 6,468,626

41,486,608

nges in foreignHowever, the B

in Saudi Riya

Non-profit bearing

4,972,467

151,080762,349

-1,474,9121,258,5838,619,391

73622,274,4183,205,942

16,831,931

42,313,027

(33,693,636)

n exchange ratBank has negligals and to a sm

Total

4,972,467

4,972,1815,399,466

44,923,6231,474,9121,258,583

63,001,232

200,73642,762,6233,205,942

16,831,931

63,001,232

-

7,792,972

tes. The Riskgible exposure

maller extent in

 

The Ba

Assets Cash &Due froInvestmFinanciOther aTotal c

LiabiliDue to CustomOther lTotal c

The tab

USD Euro UAE DBHD QAR Others Total

c) Equ

Equ‘ava

ank has the foll

& balances withom banks and oments ing, net assets currency risk

ities banks and oth

mers’ deposits iabilities

currency risk

ble below show

Dirham

uity price risk

uity price risk ailable for sale

 

owing summar

h SAMA other financial

on assets

er financial ins

on liabilities

ws the currencie

refers to the ’ is regularly m

rized exposure

institutions

stitutions

es to which the

risk of decremarked to mark

39 

e to foreign cur

e Bank has a si

ease in fair vaket and change

rrency exchang

ignificant expo

alues of equities, if any, are ta

ge rate risk as a

20SAR

5,3

1

5,7

6,52

6,8

osure as at Dec

20SAR

(1,49

3

(1,11

ies. The Bankaken into the s

at December 31

14 R’000

84,678 97,833 38,250 83,652 19,518

723,931

30,048 586,013 227,399 843,460

cember 31:

14 R’000

95,403) 1,539 8,416

52,502 1,664

11,753 19,529)

k’s portfolio oshareholder’s e

1:

2013 SAR’000

96,9413,514,530

261,694187,523

35,9264,096,614

43

6,184,167213,829

6,398,039

2013 SAR’000

(3,155,814)(65)

(482)852,367

(363)2,932

(2,301,425)

of investmentsequity.

 

26. Liq

Liquliabdisrriskmaithe In adepo

In aliab

a) Ana

Thebaseon e

As app

2014

LiabilDue to instit

Custo

Other

Total

2013

LiabilDue to instit

Custo

Other

Total

uidity risk

uidity risk is thilities that are

ruptions or credk, managementntaining an adRisk Managem

accordance witosit with SAM

addition to theilities, in the fo

alysis of financ

e table below sed on contractuexpected undis

profit paymenearing in the co

lities o banks and othtutions

mers’ deposits

liabilities

liabilities

lities o banks and othtutions

mers’ deposits

liabilities

liabilities

 

he risk that the settled by ddit downgradest has diversifequate balance

ment Group tha

th Banking CoMA equal to 7%

e statutory deporm of cash an

cial liabilities

summarizes theual undiscountcounted cash i

nts up to contronsolidated sta

her financial

s

her financial

s

e Bank will endelivering cashs, which may cfied funding se of cash and cat regularly mo

ontrol Law an% of total deman

posit, the Band assets, which

by remaining

e maturity proed repayment onflows.

ractual maturitatement of fina

Withmon

3

45,49

45,53

Withmon

20

34,19

34,39

40 

ncounter diffich or other finacause certain sosources and acash equivalentnitors the liqui

nd the regulatind deposits and

k also maintah can be conve

g contractual m

file of the Banobligations wh

ty are includedancial position.

in 3 nths

3 mon12 mo

32,677

99,359 7,13

-

32,036 7,13

in 3 nths

3 mon12 mo

00,098

94,829 8,71

-

94,927 8,71

culty in meetinancial assets. ources of fundiassets are mats. The Bank hidity risk of the

ions issued byd 4% of custom

ains liquid reseerted into cash w

maturities

nk's financial lhereas the Bank

d in the table

Snths to onths

1 toyea

-

36,877 7,27

-

36,877 7,27

Snths to onths

1 toyea

-

11,316

-

11,316

ng obligations Liquidity risk

ing to dry up imanaged with lihas a Market Re bank.

y SAMA, the mers’ time inve

erves of no lewithin a period

liabilities at Dk manages the

, totals do not

SAR’000 o 5 ars

Over years

-

76,809

-

76,809

SAR’000 o 5 ars

Over years

-

6,043

-

6,043

associated witk can be causmmediately. Tiquidity into

Risk Manageme

Bank maintaiestments.

ess than 20% d not exceeding

ecember 31, 2inherent liquid

t match with

5 s

No fixedmaturity

-

-

- 3,462,14

- 3,462,14

5 s

No fixedmaturity

- 73

-

- 3,205,94

- 3,206,67

th its financialsed by marketo mitigate thisconsideration,

ent team under

ins a statutory

of its depositg 30 days.

2014 and 2013dity risk based

the figures as

d y Total

- 32,677

- 59,913,045

45 3,462,145

45 63,407,867

d y Total

36 200,834

- 42,912,188

42 3,205,942

78 46,318,964

7

5

5

7

4

8

2

4

 

b) The t

The mdoes

2014

Assets Cash anDue froinstitutInvestmFinanciPropert

Other a

Total

LiabiliDue to institu

Custom

Other l

Shareh

Total

Commi

2013

Assets Cash anDue froinstitut

Investm

Financi

Propert

Other a

Total

LiabilitDue to institu

Custom

Other l

Shareh

Total

Commi

tables below s

maturities of asnot reflects the

nd balances wiom banks and oions

ments ing, net ty and equipme

assets

ities and sharebanks and oth

utions

mers’ deposits

iabilities

olders’ equity

itments & cont

nd balances wiom banks and oions

ments

ing, net

ty and equipme

assets

ties and sharehbanks and oth

utions

mers’ deposits

iabilities

olders’ equity

itments & cont

 show the matu

ssets and liabile effective mat

ith SAMA other financial

ent, net

eholders’ equier financial

tingencies

ith SAMA other financial

ent, net

holders’ equity er financial

tingencies

urity profile of

lities have beenturities as indic

Within months

6,065,8

8,179,26,113,67,279,0

27,637,8

ity

32,6

45,451,4

45,484,1

3,621,9

Within 3months

4,972,4

3,840,7

1,457,9

5,635,1

15,906,2

200,7

34,146,6

34,347,4

4,741,7

41 

f the assets an

n determined ocated by the his

3 s

3 monthsto 12

months

81

47 187,5839 659,9878 12,556,04

-

-

45 13,403,61

57

51 7,064,56

-

-

08 7,064,56

54 1,642,16

3 s

3 months t12 month

67

21 943,93

08 2,428,78

47 6,467,49

-

-

43 9,840,21

36

66 8,610,19

-

02 8,610,19

87 2,478,18

nd liabilities:

on the basis of storical experie

SAs

1 to 5 years

-

87 1,951,02087 150,67144 22,174,369

-

-

18 24,276,060

-

67 6,911,807

-

67 6,911,807

64 2,889,959

SA

to hs 1 to 5 years

-

37 187,523

84 392,106

94 22,991,198

-

-

15 23,570,827

-

94 5,763

-

94 5,763

86 556,53

f the remainingence.

AR’000

Over 5 years

-

01 1,087,089 11,627,49-

-

0 12,714,57

-

7

-

7

9 21,57

AR’000

s Over 5 year

-

3

6 1,087,11

8 9,829,78

-

-

7 10,916,90

-

3

-

3

1 16,46

g period at repo

No fixed maturity

- -

- -86 24,76890 -

- 1,543,578

- 1,261,414

76 2,829,760

- -

- -

- 3,462,145

17,939,232

- 21,401,377

79 -

rs No fixed maturity

- -

- -

7 33,551

4 -

- 1,474,912

- 1,258,583

01 2,767,046

- -

- -

3,205,942

- 16,831,931

- 20,037,873

68 -

orting date and

Total

- 6,065,881

- 10,317,8548 8,036,151- 53,636,9818 1,543,578

4 1,261,414

0 80,861,859

- 32,657

- 59,427,825

5 3,462,145

2 17,939,232

7 80,861,859

- 8,175,656

Total

- 4,972,467

- 4,972,181

1 5,399,466

- 44,923,623

2 1,474,912

3 1,258,583

6 63,001,232

- 200,736

- 42,762,623

2 3,205,942

1 16,831,931

3 63,001,232

- 7,792,972

1

4118

4

9

7

5

5

2

9

6

7

1

6

3

2

3

2

6

3

2

1

2

2

 

27. Ope

Opeexte ThecontFramInteestamondocu

28. Sha BeinSharCom

29. Rep

Repserv As anegaBansuchManrepu

30. Fair

Fairtranpres - -

Theinclu

The Lev Lev

sign

Lev

erational risk

erational risk isernal events. Op

Bank has an Otrolling the Opmework. To rnal Control

ablishing Key nitored by Opeumented busin

aria’h non-com

ng an Islamic bria’h Policies

mpliance Audit

putational risk

putational risk vices, competen

an Islamic banative publicity

nk’s financial ch risks. Currennagement grouutational risk in

r values of fin

r value is the nsaction betwesumption that t

In the accessIn the absenc

fair values ofuded in the con

Bank uses fol

vel 1: quoted pr

vel 2: quoted pnificant inputs a

vel 3: valuation

 

s the risk of losperational risk

Operational Riperational Risksystematize thFramework iRisk Indicato

erational Risk ness continuity mpliance risk

bank, the Bankand procedure

t Unit to monit

k

covers the potnce, integrity a

nk, one of the mcould be majo

condition. The ntly, the Bankup compiles tndicators.

ancial assets a

price that woen market par

the transaction

sible principal mce of a principa

f on-balance snsolidated fina

lowing hierarc

rices in active m

prices in activeare based on ob

n techniques for

ss resulting fromk arises through

isk Team as a ks of the Bank.he assessment is established rs (KRIs) for department onplan and opera

k is exposed toes are in placetor such risk.

tential adverseand reliability.

major sourcesor frauds, custoBank has put

k measures thethe results of

and liabilities

uld be receiverticipants at thtakes place eit

market for the al market, in th

heet financial ancial statemen

chy for determi

market for the

e market for sibservable mark

r which any sig

42 

m inadequate ohout the Bank a

part of Risk M. Functions of

and mitigatiothrough Riskall Business

n a regular baational disaster

o the risk of She. Further the

e effects result

of Reputationaomer complaintin place contro

e Reputational f assessments

ed on sale of he measuremether:

asset or liabilihe most advant

instruments arnts.

ining and disclo

same instrume

milar assets anket data: and

gnificant input

or failed internand from almo

Management Gf this unit are gon of operatiok Control anand support u

asis. In additionr recovery site.

haria’h non-coBank has esta

ting from nega

al risk is Sharints, regulatory aols around reprisk through made by bus

an asset or pent date. The

ity, or tageous accessi

are not signific

osing the fair v

ent (i.e. withou

nd liabilities o

is not based on

nal processes, pst any activity.

Group which is guided by the nal risks, the

nd Self-Assessunits. These rn, the Bank h.

mpliance. To mablished a Sha

ative publicity

ia’h non-compactions and ne

putation risk ina Scorecard b

siness heads t

paid to discharfair value me

ible market for

cantly different

value of financ

ut modification

or other valuati

n observable m

people and syst.

tasked with mOperational RiBusiness Env

sment (RCSArisk metrics aras a successfu

mitigate such raira’h Board a

about the Ban

pliance. The otegative perceptn order to mitigbased approachto derive the

rge a liability easurement is

r the asset or li

t from their ca

cial instruments

or repacking):

ion techniques

market data.

tems or from

monitoring andisk Policy andvironment and

A) along withre proactively

ully tested and

risk, extensiveand a Sharia’h

nk’s products,

ther sources oftions about thegate and avoidh, where RiskBank overall

in an orderlybased on the

ability

arrying values

s:

:

s for which all

f

 

Thehier

201 FinaFinaTot

2013 FinaFinaTot

In thmill

31. Emp

Sign Nat

No. GraMatNumVesValuStrikFairVes

MetValuWei Theas fo

BeGrFoExEn Ex

following tabrarchy:

4

ancial assets heancial assets heal

3

ancial assets heancial assets heal

he absence of alion has been re

ployees share

nificant feature

ture of scheme

of outstandingant date turity date mber of shares sting period ue of shares grke price per shr value per sharsting conditions

thod of settlemuation model uighted average

movement in ollows:

eginning of theranted during torfeited xercised/expirend of the year

xercisable at ye

 

ble shows an

eld as FVSI eld as ‘availabl

eld as FVSI eld as ‘availabl

active market, eclassified from

based plans

es of the emplo

e

g Schemes

granted

ranted (SAR) hare at grant dare at grant dates

ment used remaining con

weighted avera

e year the year

ed

ear end

analysis of fin

le for sale’

le for sale’

during the yearm Level 1 to L

oyee share base

ate (SAR) e (SAR)

ntractual life

age price and i

W

43 

nancial instrum

Level

113,64710,67824,31

Level

107,901,708,001,815,91

r certain availaLevel 2.

ed schemes out

ESPS

One June 01, 2May 31, 22,414,2883 years 33,800,0311.5 14.0 Employeand meetperformaEquity Market V1.42 year

in the number o

Weighted aveprice (

2014 11.5

---

11.5 -

ments recorded

1

40 72 1,012 1,0

1

08 07 15

able for sale inv

tstanding at the

2013 2016 8

32

e remains in sets prescribed ance criteria

Value rs

of shares in the

erage exercise (SAR)

2013 -

11.5--

11.5 -

d at fair value

Level 2

- 087,086 087,086

Level 2

- - -

nvestments amo

e end of the ye

ESG

OnApMa2,83-537,- 13

ervice EmandperEqMa3.2

e employees sh

Numbe

2014 2,580 (166 2,414

e by level of

Level 3

- 100,000 100,000

Level 3

- - -

ounting to SAR

ar are as follow

GS

ne pril 01, 2013 arch 31, 2018 863,000 5 years ,648,450

.15 mployee remaind meets prescrirformance crite

quity arket Value 25 years

hare participati

er of shares in

0,654 -

,366) -

4,288

-

the fair value

SAR ‘000Total

113,6401,897,7582,011,398

SAR ‘000Total

107,9081,708,0071,815,915

R 1,087

ws:

ns in service ibed eria

ion scheme is

scheme

2013 -

2,580,654 - -

2,580,654 -

 

TheTotasche

32. Rel

In thgov

(i) Thestat

Dir shFinCusEndInvFin

Dep

(ii) Incoinco

IncRetFeeDir

The (iii) The

ShoEnd

se rights are gral amount of exemes was SAR

ated party bal

he ordinary couerned by limits

e balances as atements are as

rectors, key mhareholders annancing stomers’ deposd of service be

vestments in asnancing and inv

posits from Mu

ome and expeome are as foll

ome on financturn on time ine from bankingrectors’ remune

advances and

e total amount

ort-term emplod of service be

 

ranted only undxpense recogni

R 12.8 million.

lances and tra

urse of its activs set by the Ban

at December 3s follows:

management pend affiliates

sits nefit sociates vestments in M

utual funds

nses pertaininlows:

ing nvestments g services, net eration

expenses relat

t of compensat

oyees benefits nefit

der a service/pized during the(2013: 10.3 mi

ansactions

vities, the Banknking Control

31, resulting fr

ersonnel, Bank

Mutual funds

ng to transacti

ted to executive

tion to key ma

44 

erformance coe year in these illion).

k transacts busLaw and regul

rom such tran

k’s mutual fun

ions with relat

es are in line w

anagement pe

ondition with nconsolidated fi

iness with relalations issued b

nsactions inclu

nds, major

ted parties inc

with the normal

ersonnel durin

no market condfinancial statem

ated parties. Reby SAMA.

uded in the con

cluded in the c

l employment

ng the year is a

dition associatements in respec

elated party tran

nsolidated fin

2014 SAR’000

15,0267,881,848

11,31024,753

1,271,457

487,240

consolidated s

2014 SAR’000

13,73678,73765,5132,798

terms.

as follow:

2014 SAR’000

44,0642,347

d with it. t of these

nsactions are

ancial

2013 SAR’000

5,9565,107,447

8,96233,55188,895

11,668

statement of

2013 SAR’000

35570,8231,8642,651

2013 SAR’000

42,6522,111

 

33. Cap

Thesafe Capand 8%. Theadeqa we SAMeffeusin

Par

Cre

Ope

Mar

Tot

Tier

Tier

TotCap

34. BAS

CertmadSuch

35. Inve The

of fu

pital adequacy

Bank’s objeceguard the Bank

pital adequacy amaintain ratio

Bank monitoquacy by compeighted amoun

MA has issuedctive from Jan

ng Basel III fra

rticulars

dit Risk Weigh

erational Risk W

rket Risk Weig

tal Pillar-I Ris

r I Capital

r II Capital

tal Tier I & II pital AdequacyTier I ratio Tier I + Tier II

SEL III Pillar

tain additionalde available to h disclosures a

estment mana

Bank offers inunds with total

 

y

ctives when mk’s ability to c

and the use of o of total regula

ors the adequaparing the Bannt to reflect thei

d the framewonuary 01, 2013mework.

hted Assets

Weighted Asse

ghted Assets

sk Weighted A

Capital y Ratio %

I ratio

r 3 and Capita

l quantitative athe public on t

are not subject

agement and b

nvestment manl assets under m

managing capitontinue as a go

regulatory capatory capital to

acy of its capik’s eligible capir relative risk.

ork and guidan. Accordingly,

ets

Assets

al Structure di

and qualitativethe Bank’s webto audit by the

brokerage serv

nagement servimanagement of

45 

tal are, to comoing concern; a

pital are monitoo the risk-weig

tal using ratiopital with its st

nce for implem, the risk weigh

isclosures

e disclosures absite (www.ali

e external audit

vices

ces to its custof SAR 4,216 m

mply with theand to maintain

ored by the Banghted assets at o

os established tatement of fin

mentation of chted assets, tot

are required uinma.com) wittors of the Ban

omers through million (2013:

e capital requn a strong capit

nk’s managemor above the B

by SAMA. Tnancial position

apital reformstal capital and

S

6

7

1

1

under Basel IIIthin prescribednk.

its subsidiary wSAR 247.7 mi

irements set btal base.

ment. SAMA reBasel prescribed

These ratios mn assets and co

s under Basel d related ratios

2014 SAR’000

60,266,168

4,203,105

5,670,815

70,140,088

7,939,232

380,149

8,319,381

26% 26%

I. These disclod time as requir

which include illion).

by SAMA; to

equires to holdd minimum of

measure capitalommitments at

III, which areare calculated

2013 SAR’000

50,231,214

3,433,374

6,830,683

60,495,271

16,831,931

328,487

17,160,418

28%28%

osures will bered by SAMA.

management

f

 

36. Pro

ThepubJanu Stan IFR

IFRwith

Am“Acinte Othstatecour

37. Com

Figusign

38. App The

(cor

spective chan

e Bank has cholished and areuary 1, 2015.

ndard, and am

RS 9 “Financial

RS 15 “ Revenuh customers

endments to IFccounting for rests in joint op

er than IFRS 9ements except rse.

mparative figu

ures have beennificant rearran

proval of the c

se consolidatedrresponding to

 

ges in the Inte

osen not to eare mandatory fo

mendments

l Instruments”

ue from contra

FRS 11 acquisitions

perations”

9, the amendmfor certain ad

ures

n rearranged orngements or rec

consolidated fi

d financial stat26 January, 20

ernational Fin

rly adopt the aor compliance

Effectiv January 2018

acts January

2017

of January 2016

ments are not likdditional disclo

r reclassified wclassifications h

inancial statem

tements were a015).

46 

nancial Report

amendments anby the Banks

e date Brie

01, IFRSestabassetclasscontralso loss t

01, IFRSon refinanfinan

01, Thesacqua bus

kely to have aosures. The Ba

wherever necesshave been mad

ments

approved by the

ting Standard

nd revisions toeffective from

ef description o

S 9 retains bublishes two primts: amortised sification depenractual cash flochanges the imto expected los

S 15 is a conveevenue recognincial reporting ncial statement

se amendmentsuisition of an insiness.

any material imank will be ass

sary for the pude in these con

e Board of Dir

ds

o the followingm accounting p

of changes

ut simplifies thmary measurem

cost and fnds on the entiow characteris

mpairment of fiss model.

erged standard ition. The standand comparab

ts.

s provide guidanterest in a join

mpact on the Bsessing the im

urpose of betternsolidated finan

rectors of the B

g standards whperiod beginnin

he measuremement categoriefair value. Tity’s business mstics of the finafinancial assets

from the IASBdard will impro

bility of revenu

ance to accounnt operation tha

Bank’s consolidmplications of I

r presentation, ncial statement

Bank on 06 Ra

hich have beenng on or after

ent model andes for financialThe basis ofmodel and theancial asset. Itfrom incurred

B and FASB ove the

ue in the

nt for the at constitutes

dated financialIFRS 9 in due

however, no ts.

abi II, 1436H

f