Deloitte
Deloitte & Touche Bakr Abulkhair & Co.
'11111111111111111111111111111111111'11'' ' ' ' ' '
Ell ERNST & YOUNG
Report on Review of Interim Condensed Consolidated
Deloitte. Financial Statements
To the Shareholders of Arab National Bank (A Saudi Joint Stock Company) Introduction We have reviewed the accompanying interim consolidated statement of financial position of Arab National Bank (the "Bank") and its subsidiaries (collectively referred to as "the Group") as at March 31, 2013 and the related interim consolidated statements of income, comprehensive income, changes in equity and cash !lows for the three-month period then ended and the notes from (1) to (14). The Bank's management is responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with applicable Accounting Standards for Financial Institutions and certain capital adequacy disclosure requirements issued by the Saudi Arabian Monetary Agency ("SAMA") and with International Accounting Standard No. 34 "Interim Financial Reporting". Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review. Scope of Review We conducted our review in accordance with generally accepted standards in the Kingdom of Saudi Arabia applicable to review engagements and with International Standard on Review Engagements 2410, "Review of Interim Financial Infonllation Performed by the Independent Auditor of the Entity". A review of interim condensed consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting mailers, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards in the Kingdom of Saudi Arabia and International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant mailers that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our allention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with applicable Accounting Standards for Financial Institutions issued by SAMA and with International Accounting Standard No. 34. Other Regulntory Mnlters As required by SAMA, certain capital adcquacy information has been disclosed in note (13) of the accompanying interim condensed consolidated financial statements. As part of our review, we compared the infonnation in note (13) to the relevant analysis prepared by the Bank for submission to SAMA and found no material inconsistencies. Deloilte nnd Touche Bakr Ahllikhair & Co P. O. Box 213 Riyadh 11411 Kingdom of Saudi Arabia
Ernst & Young POBox 2732 Riyadh 11461 Kingdom of Saudi Arabia
~
Abdulaziz A. AI-Sowailim Certificd Public Accountant Registration No. 277
Certificd Public Accountant Registration No. 101 4 Jumad Thani 1434H (14 April 2013)
.:'
ARAB NATIONAL BANK - saudi Joint Stock Company INTERIMCONSOUDATED STATEMENT OF FINANCIAL POSITION March 31,2013 (Unaudited) SAR'OOO
As at
Note
ASSETS cash and balances with SAMA Due from banks and other financial institutions Investments, net Loans and advances, net Investment in associates Other real estate Property and equipment, net Other assets
4 5
Total assets UABIUTIES
March 31,2012 (Unaudited) SAR'OOO
20,818,093 1,365,244 21,745,411 85,968,385 438,484 288,006 1,533,315 1,514,320
20,334,429 2,240,924 24,323,047 86,328,608 430,046 319,006 1,506,311 1,156,905
11,073,243 2,785,859 32,403,705 75,570,162 406,243 319,209 1,528,206 1,329,527
133,671,258
136,639,276
125,416,154
1,485,717 109,088,926 3,650,902 1,687,500
6,549,924 107,560,443 2,931,822 1,687,500
13,123,597 90,692,626 3,185,026 1,687,500
115913045
118,729,689
108,688,749
8,500,000 6,630,000 244,618 1,579,657
8,500,000 6,030,000 369,675 1,721,952
AND EQUITY
liabilities Due to banks and other financial institutions Customers' deposits Other Iiabilities Debt securities in issue Total
December 31, 2012 (Audited) SAR'OOO
6
liabilities
Equity attributed to equity holders of the Bank Share capital 11 Statutory reserve Other reserves Retained earnings Proposed dividends
8,500,000 6,630,000 264,023 2,258,352
850,000
Total equity attributed to equity holders of the Bank Non-controlling interest
17,652,375 105838
Total equity
-!Z/758,213
Total liabilities and equity
133,671,258
17,804,275 105312
16,621,627 105778
17909587
16,727,405
136,639,276
125,416,154
The accompanying notes 1 to 14 form an integral part of these interim condensed consolidated financial statements.
""'"If,h•. ,"" •• "h"'''.IM"",' 0ffIm ~
~
~-~--:J ~"
Robert Eid
: Managing Director ~
Hesham A. Aljabr
: Authorized Board Member (...•• (~
~=_ t;7
ARABNATIONAL BANK- saudi Joint Stock Company INTERIM CONSOLIDATEDSTATEMENTOFINCOME For the three months ended (Unaudited)
Note
March 31, 2013 SAR'OOO
March 31, 2012 SAR'OOO
Special commission income
964,577
886,516
Special commission expense
189,369
113,780
Net special commission income
775,208
772,736
Fees and commission income, net
287,790
245,587
81,059
51,997
4,969
(1,980)
Trading income, net
33,040
42,424
Dividend income
26,271
12,971
22,898
48,912
37,053
23,039
1,268,288
1,195,686
297,249
259,464
Rent and premises related expenses
33,141
31,042
Depreciation and amortization
47,800
50,387
113,049
113,373
Impairment charges for credit losses, net
106,266
89,921
Total operating expenses
597,505
544,187
Net operating income
670,783
651,499
8,438
4,326
679,221
655,825
Exchange income, net Income (loss) from FVIS financial instruments,
Gainsand impairment of non-trading
net
investments, net
Other operating income
Total operating income
salaries and employee related expenses
Other general and administrative
expenses
Share in earnings of an associate
Net income for the period Income attributed to non-controlling
(526)
interest
Net income attributed to equity holders of the Bank Basicand fully diluted earnings (in SAR per share)
11
The accompanying notes 1 to 14 form an integral part of these in
nden
(313)
678,695
655,512
0.80
0.77
olidated financial statements.
'go , 2
~
ARAB NATIONAL BANK - saudi Joint Stock Company INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the three months ended (Unaudited)
March 31, 2013 SAR'OOO
Net income for the period
March 31, 2012 SAR' 000
679,221
655,825
40,080
237,474
(22,898)
(46,362)
Other comprehensive income: Available for sale investments - Net changes in fair value • Transfers to interim consolidatedstatement
of income
Cash flows hedges - Net changes in fair value • Transfers to interim consolidatedstatement
of income
Total comprehensive income for the period
4,611
10,625
(2,388)
(9,682)
19,405
192,055
698,626
847,880
698,100
847,567
Attributable to:
Equity holders of the Bank Non-controlling
526
interest
313
698,626
Total comprehensive income for the period
------cC ')~
The accompanying notes 1 to 14 form an integral part of these interim co
847,880
consolidated financial statements.
.- -',
c
s~
3
----=--
ARAB
:
NATIONAL
BANK
- saudi
Joint
Stock
INTERIM CONSOLIDATED STATEMENT For the three months ended March 31, (Unaudited)
Attributable
12.U tm1c Balance at the beginning of the period Net changes in fair value of cash flow hedges Net changes in fair values of available for sale investments Transfers to interim consolidated statement of income
Share capital SAR' 000 JI,500,OOO
Company
OF CHANGES INEQUITY 2013 and 2012
Statutory reserve SAR' 000 6,630000
to equity
holders
Bank
Non.
Other reserves SAR'OOO 244,618
of the
Retained earnings SAR'OOO 1,579,657
Proposed dividend SAR'OOO 850000
Total SAR'OOO ~7,804,275
4,611
105,312
Total equity SAR'OOO 17909587
4,611
40,080
4,611
40,080
(25,286)
Net comprehensive income for the period
controlling Interest SAR'OOO
40,080
(~,286
19,405
25286L
19,405
19,405
Net income for the period Total comprehensive income for the period
19,405
678,695
678,695
526
679,221
678,695
698,100
526
698,626
105,838
17,758,213
2012 final Dividend
(850,000)_(850,000
Balance at the end of the period
8,500,000
6,630,000
Attributable
2012 tjlllo Balance at the beginning of the period Net changes In fair value of cash flow hedges Net changes in fair values of available for sale investments Transfers to interim consolidated statement of income
Share capital 5AR' 000 8500000
Statutory reserve SAR'000 6030000
Net comprehensive income for the period
264,023
to equity
2,258,352
holders
of the Bank
Other reserves SAR'000 177 620
Retained earnings SAR'000 1066,440
'11111111111111111111111111111111111'11'' ' ' ' ' '
Ell ERNST & YOUNG
Report on Review of Interim Condensed Consolidated
Deloitte. Financial Statements
To the Shareholders of Arab National Bank (A Saudi Joint Stock Company) Introduction We have reviewed the accompanying interim consolidated statement of financial position of Arab National Bank (the "Bank") and its subsidiaries (collectively referred to as "the Group") as at March 31, 2013 and the related interim consolidated statements of income, comprehensive income, changes in equity and cash !lows for the three-month period then ended and the notes from (1) to (14). The Bank's management is responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with applicable Accounting Standards for Financial Institutions and certain capital adequacy disclosure requirements issued by the Saudi Arabian Monetary Agency ("SAMA") and with International Accounting Standard No. 34 "Interim Financial Reporting". Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review. Scope of Review We conducted our review in accordance with generally accepted standards in the Kingdom of Saudi Arabia applicable to review engagements and with International Standard on Review Engagements 2410, "Review of Interim Financial Infonllation Performed by the Independent Auditor of the Entity". A review of interim condensed consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting mailers, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards in the Kingdom of Saudi Arabia and International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant mailers that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our allention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with applicable Accounting Standards for Financial Institutions issued by SAMA and with International Accounting Standard No. 34. Other Regulntory Mnlters As required by SAMA, certain capital adcquacy information has been disclosed in note (13) of the accompanying interim condensed consolidated financial statements. As part of our review, we compared the infonnation in note (13) to the relevant analysis prepared by the Bank for submission to SAMA and found no material inconsistencies. Deloilte nnd Touche Bakr Ahllikhair & Co P. O. Box 213 Riyadh 11411 Kingdom of Saudi Arabia
Ernst & Young POBox 2732 Riyadh 11461 Kingdom of Saudi Arabia
~
Abdulaziz A. AI-Sowailim Certificd Public Accountant Registration No. 277
Certificd Public Accountant Registration No. 101 4 Jumad Thani 1434H (14 April 2013)
.:'
ARAB NATIONAL BANK - saudi Joint Stock Company INTERIMCONSOUDATED STATEMENT OF FINANCIAL POSITION March 31,2013 (Unaudited) SAR'OOO
As at
Note
ASSETS cash and balances with SAMA Due from banks and other financial institutions Investments, net Loans and advances, net Investment in associates Other real estate Property and equipment, net Other assets
4 5
Total assets UABIUTIES
March 31,2012 (Unaudited) SAR'OOO
20,818,093 1,365,244 21,745,411 85,968,385 438,484 288,006 1,533,315 1,514,320
20,334,429 2,240,924 24,323,047 86,328,608 430,046 319,006 1,506,311 1,156,905
11,073,243 2,785,859 32,403,705 75,570,162 406,243 319,209 1,528,206 1,329,527
133,671,258
136,639,276
125,416,154
1,485,717 109,088,926 3,650,902 1,687,500
6,549,924 107,560,443 2,931,822 1,687,500
13,123,597 90,692,626 3,185,026 1,687,500
115913045
118,729,689
108,688,749
8,500,000 6,630,000 244,618 1,579,657
8,500,000 6,030,000 369,675 1,721,952
AND EQUITY
liabilities Due to banks and other financial institutions Customers' deposits Other Iiabilities Debt securities in issue Total
December 31, 2012 (Audited) SAR'OOO
6
liabilities
Equity attributed to equity holders of the Bank Share capital 11 Statutory reserve Other reserves Retained earnings Proposed dividends
8,500,000 6,630,000 264,023 2,258,352
850,000
Total equity attributed to equity holders of the Bank Non-controlling interest
17,652,375 105838
Total equity
-!Z/758,213
Total liabilities and equity
133,671,258
17,804,275 105312
16,621,627 105778
17909587
16,727,405
136,639,276
125,416,154
The accompanying notes 1 to 14 form an integral part of these interim condensed consolidated financial statements.
""'"If,h•. ,"" •• "h"'''.IM"",' 0ffIm ~
~
~-~--:J ~"
Robert Eid
: Managing Director ~
Hesham A. Aljabr
: Authorized Board Member (...•• (~
~=_ t;7
ARABNATIONAL BANK- saudi Joint Stock Company INTERIM CONSOLIDATEDSTATEMENTOFINCOME For the three months ended (Unaudited)
Note
March 31, 2013 SAR'OOO
March 31, 2012 SAR'OOO
Special commission income
964,577
886,516
Special commission expense
189,369
113,780
Net special commission income
775,208
772,736
Fees and commission income, net
287,790
245,587
81,059
51,997
4,969
(1,980)
Trading income, net
33,040
42,424
Dividend income
26,271
12,971
22,898
48,912
37,053
23,039
1,268,288
1,195,686
297,249
259,464
Rent and premises related expenses
33,141
31,042
Depreciation and amortization
47,800
50,387
113,049
113,373
Impairment charges for credit losses, net
106,266
89,921
Total operating expenses
597,505
544,187
Net operating income
670,783
651,499
8,438
4,326
679,221
655,825
Exchange income, net Income (loss) from FVIS financial instruments,
Gainsand impairment of non-trading
net
investments, net
Other operating income
Total operating income
salaries and employee related expenses
Other general and administrative
expenses
Share in earnings of an associate
Net income for the period Income attributed to non-controlling
(526)
interest
Net income attributed to equity holders of the Bank Basicand fully diluted earnings (in SAR per share)
11
The accompanying notes 1 to 14 form an integral part of these in
nden
(313)
678,695
655,512
0.80
0.77
olidated financial statements.
'go , 2
~
ARAB NATIONAL BANK - saudi Joint Stock Company INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the three months ended (Unaudited)
March 31, 2013 SAR'OOO
Net income for the period
March 31, 2012 SAR' 000
679,221
655,825
40,080
237,474
(22,898)
(46,362)
Other comprehensive income: Available for sale investments - Net changes in fair value • Transfers to interim consolidatedstatement
of income
Cash flows hedges - Net changes in fair value • Transfers to interim consolidatedstatement
of income
Total comprehensive income for the period
4,611
10,625
(2,388)
(9,682)
19,405
192,055
698,626
847,880
698,100
847,567
Attributable to:
Equity holders of the Bank Non-controlling
526
interest
313
698,626
Total comprehensive income for the period
------cC ')~
The accompanying notes 1 to 14 form an integral part of these interim co
847,880
consolidated financial statements.
.- -',
c
s~
3
----=--
ARAB
:
NATIONAL
BANK
- saudi
Joint
Stock
INTERIM CONSOLIDATED STATEMENT For the three months ended March 31, (Unaudited)
Attributable
12.U tm1c Balance at the beginning of the period Net changes in fair value of cash flow hedges Net changes in fair values of available for sale investments Transfers to interim consolidated statement of income
Share capital SAR' 000 JI,500,OOO
Company
OF CHANGES INEQUITY 2013 and 2012
Statutory reserve SAR' 000 6,630000
to equity
holders
Bank
Non.
Other reserves SAR'OOO 244,618
of the
Retained earnings SAR'OOO 1,579,657
Proposed dividend SAR'OOO 850000
Total SAR'OOO ~7,804,275
4,611
105,312
Total equity SAR'OOO 17909587
4,611
40,080
4,611
40,080
(25,286)
Net comprehensive income for the period
controlling Interest SAR'OOO
40,080
(~,286
19,405
25286L
19,405
19,405
Net income for the period Total comprehensive income for the period
19,405
678,695
678,695
526
679,221
678,695
698,100
526
698,626
105,838
17,758,213
2012 final Dividend
(850,000)_(850,000
Balance at the end of the period
8,500,000
6,630,000
Attributable
2012 tjlllo Balance at the beginning of the period Net changes In fair value of cash flow hedges Net changes in fair values of available for sale investments Transfers to interim consolidated statement of income
Share capital 5AR' 000 8500000
Statutory reserve SAR'000 6030000
Net comprehensive income for the period
264,023
to equity
2,258,352
holders
of the Bank
Other reserves SAR'000 177 620
Retained earnings SAR'000 1066,440
