Saudi Awwal Bank
(formerly known as The Saudi British Bank)
Interim Condensed Consolidated Financial Statements
For the nine month period ended
30 September 2023
(Unaudited)
Saudi Awwal Bank (formerly known as The Saudi British Bank)
CONTENTS OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Page No. | |||
Independent auditors' review report on the interim condended consolidated financial statements | 1 | ||
Interim condensed consolidated statement of financial position | |||
Interim condensed consolidated statement of income - Unaudited | |||
Interim condensed consolidated statement of comprehensive income - Unaudited | |||
Interim condensed consolidated statement of changes in equity - Unaudited | 5 | ||
Interim condensed consolidated statement of cash flows - Unaudited | 6 | ||
Notes to the interm condensed consolidated financial statements | |||
Accounting policies and impact of changes due to adoption of new standards | |||
5. | Cash and balances with SAMA | 10 | |
6. | Due from banks and other financial institutions, net | 10 | |
7. | Investments, net | 11 | |
8. | Loans and advances, net | 13 | |
9. | Investment in an associate | 14 | |
10. | Goodwill and other intangibles | 15 | |
11. | Derivatives | 15 | |
12. | Customers' deposits | 16 | |
13. | Debt securities in issue | 16 | |
14. | Commitments and contingencies | 16 | |
15. | Basic and diluted earnings per share | 17 | |
16. | Zakat and income tax | 17 | |
17. | Cash and cash equivalents | 18 | |
18. | Operating segments | 18 | |
19. | Financial risk management | 20 | |
20. | Fair values of financial instruments | 21 | |
21. | Capital adequacy | 23 | |
22. | Dividend | 24 | |
23. | IBOR Transition (Interest Rate Benchmark Reforms) | 24 | |
24. | Discontinued operations | 24 | |
25. | Business Combination | 24 | |
26. | Comparative figures | 26 | |
27. | Subsequent event | 26 | |
28. | Board of Directors' approvals | 26 |
Saudi Awwal Bank (formerly known as The Saudi British Bank)
Interim condensed consolidated statement of financial position
As at 30 | As at 31 | As at 30 | ||
September 2023 | December 2022 | September 2022 | ||
Unaudited | Audited | Unaudited | ||
(Restated) | (Restated) | |||
Notes | SAR' 000 | SAR' 000 | SAR' 000 | |
ASSETS | ||||
Cash and balances with Saudi Central Bank ("SAMA") | 5 | 16,162,634 | 19,258,717 | 15,144,242 |
Due from banks and other financial institutions, net | 6 | 3,144,734 | 5,871,533 | 2,085,021 |
Assets classified as held for sale | - | - | 954,699 | |
Positive fair value derivatives, net | 11 | 3,821,349 | 2,538,074 | 2,624,196 |
Investments, net | 7 | 88,796,497 | 86,363,159 | 78,785,835 |
Loans and advances, net | 8 | 211,403,997 | 183,132,249 | 183,159,517 |
Investment in an associate | 9 | 482,996 | 599,289 | 594,698 |
Other assets | 2,320,382 | 2,228,977 | 2,378,130 | |
Property, equipment and right of use assets, net | 3,667,944 | 3,621,644 | 3,500,354 | |
Goodwill and other intangibles, net | 10, 25 | 10,677,584 | 10,790,482 | 10,872,355 |
Total assets | 340,478,117 | 314,404,124 | 300,099,047 | |
LIABILITIES AND EQUITY | ||||
Liabilities | ||||
Due to banks and other financial institutions | 32,477,883 | 25,517,303 | 23,041,114 | |
Customers' deposits | 12 | 228,052,849 | 214,278,851 | 202,864,399 |
Negative fair value derivatives, net | 11 | 3,293,823 | 1,907,436 | 1,825,581 |
Liabilities directly associated with assets classified | ||||
as held for sale | - | - | 763,317 | |
Debt securities in issue | 13 | 5,073,832 | 5,114,836 | 5,048,727 |
Other liabilities | 16,040,500 | 12,949,047 | 13,013,070 | |
Total liabilities | 284,938,887 | 259,767,473 | 246,556,208 | |
Equity | ||||
Equity attributable to equity holders of the Bank | ||||
Share capital | 20,547,945 | 20,547,945 | 20,547,945 | |
Share premium | 8,524,882 | 8,524,882 | 8,524,882 | |
Statutory reserve | 20,547,945 | 20,547,945 | 20,547,945 | |
Other reserves | (1,949,005) | (1,182,348) | (1,142,828) | |
Retained earnings | 25 | 7,867,463 | 6,198,227 | 4,964,052 |
Total equity attributable to equity holders of the Bank | 55,539,230 | 54,636,651 | 53,441,996 | |
Total equity attributable to non-controlling interest | - | - | 100,843 | |
Total equity | 55,539,230 | 54,636,651 | 53,542,839 | |
Total liabilities and equity | 340,478,117 | 314,404,124 | 300,099,047 |
The accompanying notes 1 to 28 form an integral part of these interim condensed consolidated financial statements.
Lama Ghazzaoui | Tony Cripps |
Chief Financial Officer | Managing Director & Authorized Member |
Saudi Awwal Bank (formerly known as The Saudi British Bank) Interim Condensed Consolidated Financial Statements
2
Saudi Awwal Bank (formerly known as The Saudi British Bank)
Interim condensed consolidated statement of income - Unaudited
For three month ended | For nine month ended | ||||
30 September | 30 September | 30 September | 30 September | ||
2023 | 2022 | 2023 | 2022 | ||
(Restated) | (Restated) | ||||
Notes | SAR'000 | SAR'000 | SAR'000 | SAR'000 | |
Continuing operations | |||||
Special commission income | 4,458,330 | 2,521,263 | 12,348,371 | 6,123,706 | |
Special commission expense | (1,879,772) | (536,427) | (4,708,438) | (1,006,957) | |
Net special commission income | 2,578,558 | 1,984,836 | 7,639,933 | 5,116,749 | |
Fee and commission income | 865,749 | 693,760 | 2,424,349 | 2,072,538 | |
Fee and commission expense | 26 | (514,764) | (473,054) | (1,520,401) | (1,348,460) |
Net fee and commission income | 350,985 | 220,706 | 903,948 | 724,078 | |
Exchange income, net | 257,229 | 207,269 | 671,203 | 566,640 | |
Income from FVSI financial instruments | 74,337 | 104,026 | 349,472 | 300,314 | |
Dividend income | 1,704 | - | 2,409 | - | |
Losses on FVOCI debt instruments, net | - | - | (4,892) | - | |
Gains / (losses) on amortised cost investments, net | 114 | - | (14,929) | 30,505 | |
Other operating (expense) / income, net | 25 | (15,652) | 98,336 | (15,554) | 131,349 |
Total operating income | 3,247,275 | 2,615,173 | 9,531,590 | 6,869,635 | |
Provision for expected credit losses, net | 19 (a) | (144,379) | (37,514) | (511,867) | (233,192) |
Operating expenses | |||||
Salaries and employee related expenses | (502,172) | (448,726) | (1,540,486) | (1,294,972) | |
Rent and premises related expenses | (19,540) | (10,163) | (51,018) | (32,387) | |
Depreciation and amortization | (192,122) | (116,332) | (419,295) | (347,889) | |
General and administrative expenses | 26 | (330,731) | (305,973) | (1,035,861) | (909,849) |
Total operating expenses | (1,044,565) | (881,194) | (3,046,660) | (2,585,097) | |
Income from operating activities | 2,058,331 | 1,696,465 | 5,973,063 | 4,051,346 | |
Share in earnings of an associate | 9 | 59,203 | 46,668 | 135,665 | 167,553 |
Net income for the period before Zakat and | 2,117,534 | 1,743,133 | 6,108,728 | 4,218,899 | |
income tax | |||||
Provision for Zakat and income tax | 16 | (287,206) | (231,042) | (963,982) | (597,232) |
Net income for the period after Zakat and income | 1,830,328 | 1,512,091 | 5,144,746 | 3,621,667 | |
tax from continuing operations | |||||
Net loss from discontinued operations | 24 | - | (5,927) | - | (29,580) |
Net income for the period after Zakat and income | 1,830,328 | 1,506,164 | 5,144,746 | 3,592,087 | |
tax | |||||
Attributable to: | |||||
Equity holders of the Bank | 1,830,328 | 1,504,537 | 5,144,746 | 3,593,430 | |
Non-controlling interest | - | 1,627 | - | (1,343) | |
Net income for the period after Zakat and income | 1,830,328 | 1,506,164 | 5,144,746 | 3,592,087 | |
tax | |||||
Basic and diluted earnings per share (in SAR) | |||||
from continuing operations attributable to equity | 0.89 | 0.74 | 2.50 | 1.76 | |
holders of the Bank | 15 | ||||
Basic and diluted losses per share (in SAR) from | |||||
discontinued operations attributable to equity | - | (0.01) | - | (0.01) | |
holders of the Bank | 15 | ||||
Basic and diluted earnings per share (in SAR) | 15 | 0.89 | 0.73 | 2.50 | 1.75 |
The accompanying notes 1 to 28 form an integral part of these interim condensed consolidated financial statements.
Lama Ghazzaoui | Tony Cripps |
Chief Financial Officer | Managing Director & Authorized Member |
Saudi Awwal Bank (formerly known as The Saudi British Bank) Interim Condensed Consolidated Financial Statements
3
Saudi Awwal Bank (formerly known as The Saudi British Bank)
Interim condensed consolidated statement of comprehensive income - Unaudited
For three month ended | For nine month ended | |||
30 September | 30 September | 30 September | 30 September | |
2023 | 2022 | 2023 | 2022 | |
(Restated) | (Restated) | |||
SAR'000 | SAR'000 | SAR'000 | SAR'000 | |
Net income for the period after Zakat and income tax | 1,830,328 | 1,506,164 | 5,144,746 | 3,592,087 |
Other comprehensive (loss) / income for the period | ||||
Items that will not be reclassified to interim condensed | ||||
consolidated statement of income in subsequent periods | ||||
Net changes in fair value (FVOCI equity instruments) | (8,171) | - | 37,750 | - |
Re-measurement of defined benefit liability | - | (7,094) | (26,726) | (39,157) |
Items that will be reclassified to interim condensed consolidated | ||||
statement of income in subsequent periods | ||||
Debt instrument at FVOCI: | ||||
Net changes in fair value | (880,927) | (601,186) | (709,572) | (1,114,846) |
Transfer to interim condensed consolidated statement of | ||||
income, net | - | - | 4,892 | - |
Cash flow hedges: | ||||
Net changes in fair value | (48,904) | (14,274) | 58,554 | 8,150 |
Transfer to interim condensed consolidated statement of | (15,737) | (1,357) | (121,968) | (12,168) |
income, net | ||||
Total other comprehensive loss for the period | (953,739) | (623,911) | (757,070) | (1,158,021) |
Total comprehensive income for the period | 876,589 | 882,253 | 4,387,676 | 2,434,066 |
Attributable to: | ||||
Equity holders of the Bank: | ||||
Continuing operations | 876,589 | 886,553 | 4,387,676 | 2,464,989 |
Discontinued operations | - | (5,927) | - | (29,580) |
Non-controlling interest - discontinued operations | - | 1,627 | - | (1,343) |
Total | 876,589 | 882,253 | 4,387,676 | 2,434,066 |
The accompanying notes 1 to 28 form an integral part of these interim condensed consolidated financial statements.
Lama Ghazzaoui | Tony Cripps |
Chief Financial Officer | Managing Director & Authorized Member |
Saudi Awwal Bank (formerly known as The Saudi British Bank) Interim Condensed Consolidated Financial Statements
4
Saudi Awwal Bank (formerly known as The Saudi British Bank)
Interim condensed consolidated statement of changes in equity - Unaudited
For the nine month period ended
Attributable to equity holders of the Bank | Non- | |||||||||||||
Share | Share | Statutory | Other | Retained | controlling | Total equity | ||||||||
Note | capital | premium | reserve | reserves | earnings | Total | interest | |||||||
SAR'000 | SAR'000 | SAR'000 | SAR'000 | SAR'000 | SAR'000 | SAR'000 | SAR'000 | |||||||
30 September 2023 | ||||||||||||||
Balance at the beginning of the period | 20,547,945 | 8,524,882 | 20,547,945 | (1,182,348) | 6,244,780 | 54,683,204 | - | 54,683,204 | ||||||
Effect of restatement | 25 | - | - | - | - | (46,553) | (46,553) | - | (46,553) | |||||
Restated balance at the beginning of the period | 20,547,945 | 8,524,882 | 20,547,945 | (1,182,348) | 6,198,227 | 54,636,651 | - | 54,636,651 | ||||||
Total comprehensive income / (loss) for the period | ||||||||||||||
Net income for the period after Zakat and income tax | - | - | - | - | 5,144,746 | 5,144,746 | - | 5,144,746 | ||||||
Net changes in fair value of cash flow hedges | - | - | - | 58,554 | - | 58,554 | - | 58,554 | ||||||
Net changes in fair value of FVOCI equity instruments | - | - | - | 37,750 | - | 37,750 | - | 37,750 | ||||||
Net changes in fair value of FVOCI debt instruments | - | - | - | (709,572) | - | (709,572) | - | (709,572) | ||||||
Re-measurement of defined benefit liability | - | - | - | (26,726) | - | (26,726) | - | (26,726) | ||||||
Transfer to interim condensed consolidated statement of income | - | - | - | (117,076) | - | (117,076) | - | (117,076) | ||||||
- | - | - | (757,070) | 5,144,746 | 4,387,676 | - | 4,387,676 | |||||||
Purchase of treasury shares | - | - | - | (37,414) | - | (37,414) | - | (37,414) | ||||||
Employee share plan reserve net charge and shares vested | - | - | - | 27,827 | - | 27,827 | - | 27,827 | ||||||
2023 interim dividend, net of Zakat and income tax | 22 | - | - | - | - | (1,992,689) | (1,992,689) | - | (1,992,689) | |||||
2022 final dividend, net of Zakat and income tax | 22 | - | - | - | - | (1,482,821) | (1,482,821) | - | (1,482,821) | |||||
Balance at the end of the period | 20,547,945 | 8,524,882 | 20,547,945 | (1,949,005) | 7,867,463 | 55,539,230 | - | 55,539,230 | ||||||
Attributable to equity holders of the Bank | Non- | |||||||||||||
Share | Share | Statutory | Other | Retained | controlling | Total equity | ||||||||
Note | capital | premium | reserve | reserves | earnings | Total | interest | |||||||
SAR'000 | SAR'000 | SAR'000 | SAR'000 | SAR'000 | SAR'000 | SAR'000 | SAR'000 | |||||||
30 September 2022 | ||||||||||||||
Balance at the beginning of the period | 20,547,945 | 8,524,882 | 20,547,945 | (29,939) | 3,335,498 | 52,926,331 | 102,186 | 53,028,517 | ||||||
Total comprehensive income / (loss) for the period (restated) | ||||||||||||||
Net income / (loss) for the period after Zakat and income tax | - | - | - | - | 3,593,430 | 3,593,430 | (1,343) | 3,592,087 | ||||||
Net changes in fair value of cash flow hedges | - | - | - | 8,150 | - | 8,150 | - | 8,150 | ||||||
Net changes in fair value of FVOCI debt instruments | - | - | - | (1,114,846) | - | (1,114,846) | - | (1,114,846) | ||||||
Re-measurement of defined benefit liability | - | - | - | (39,157) | - | (39,157) | - | (39,157) | ||||||
Transfer to interim condensed consolidated statement of income | - | - | - | (12,168) | - | (12,168) | - | (12,168) | ||||||
- | - | - | (1,158,021) | 3,593,430 | 2,435,409 | (1,343) | 2,434,066 | |||||||
Employee share plan reserve net charge and shares vested | - | - | - | 45,132 | - | 45,132 | - | 45,132 | ||||||
2022 interim dividend, net of Zakat and income tax | 22 | - | - | - | - | (1,262,501) | (1,262,501) | - | (1,262,501) | |||||
2021 final dividend, net of Zakat and income tax | - | - | - | - | (702,375) | (702,375) | - | (702,375) | ||||||
Balance at the end of the period | 20,547,945 | 8,524,882 | 20,547,945 (1,142,828) | 4,964,052 | 53,441,996 | 100,843 | 53,542,839 |
The accompanying notes 1 to 28 form an integral part of these interim condensed consolidated financial statements.
Lama Ghazzaoui | Tony Cripps |
Chief Financial Officer | Managing Director & Authorized Member |
Saudi Awwal Bank (formerly known as The Saudi British Bank) Interim Condensed Consolidated Financial Statements
5
Saudi Awwal Bank (formerly known as The Saudi British Bank) Interim condensed consolidated statement of cash flows - Unaudited For the nine month period ended
Notes | 30 September | 30 September | |
2023 | 2022 | ||
SAR'000 | SAR'000 | ||
(Restated) | |||
OPERATING ACTIVITIES | |||
Net income for the period before Zakat and income tax, after loss from discontinued operations | 6,108,728 | 4,192,939 | |
Adjustments to reconcile net income before Zakat and income | |||
tax to net cash from operating activities: | |||
Amortisation of premium on investments not held as FVSI investments, net | (282,977) | 20,042 | |
Depreciation and amortization | 419,295 | 347,889 | |
Special commission expense on debt securities in issue | 282,999 | 136,068 | |
Special commission expense on lease liabilities | 12,091 | 14,537 | |
Losses / (gains) on amortised cost investments | 14,929 | (30,505) | |
Bargain purchase on acquisition of business | 25 | - | (108,600) |
Income transferred to interim condensed consolidated statement of income | (117,076) | (12,168) | |
Share in earnings of an associate | 9 | (135,665) | (167,553) |
Provision for expected credit losses, net | 19 (a) | 511,867 | 233,192 |
Employee share plan reserve | 27,827 | 45,132 | |
6,842,018 | 4,670,973 | ||
Change in operating assets: | |||
Statutory deposit with SAMA | (50,314) | (983,590) | |
Due from banks and other financial institutions | (118,662) | 297,660 | |
Investments held as FVSI | 201,811 | 257,706 | |
Loans and advances | (28,724,969) | (14,622,602) | |
Positive fair value derivatives | (1,224,721) | (1,514,351) | |
Other assets | (151,462) | 36,217 | |
Change in operating liabilities: | |||
Due to banks and other financial institutions | 6,960,580 | 8,377,448 | |
Customers' deposits | 13,773,998 | 16,103,787 | |
Negative fair value derivatives | 1,386,387 | 310,989 | |
Other liabilities | 3,013,088 | 2,226,389 | |
1,907,754 | 15,160,626 | ||
Zakat and income tax paid | (844,189) | (548,689) | |
Net cash generated from operating activities | 1,063,565 | 14,611,937 | |
INVESTING ACTIVITIES | |||
Proceeds from sale and maturity of investments not held as FVSI | 33,033,822 | 3,437,385 | |
Purchase of investments not held as FVSI | (36,075,218) | (18,676,830) | |
Dividend received from an associate | 9 | 251,958 | 156,214 |
Purchase of property, equipment and intangibles, net | (352,696) | (491,429) | |
Acquisition of business | 25 | - | (1,216,800) |
Net cash used in investing activities | (3,142,134) | (16,791,460) | |
FINANCING ACTIVITIES | |||
Special commission paid on debt securities in issue | (324,003) | (148,874) | |
Payment of lease liabilities | (91,104) | (67,808) | |
Dividends paid | (3,460,437) | (1,962,349) | |
Purchase of treasury shares | (37,414) | - | |
Net cash used in financing activities | (3,912,958) | (2,179,031) | |
Net change in cash and cash equivalents | (5,991,527) | (4,358,554) | |
Cash and cash equivalents at beginning of the period | 17 | 11,808,078 | 8,543,548 |
Cash and cash equivalents at end of the period | 17 | 5,816,551 | 4,184,994 |
Supplemental non cash information | |||
Right of use assets | 417,118 | 525,981 | |
Lease liabilities | 502,070 | 599,223 | |
Assets classified as held for sale | - | 954,699 | |
Liabilities directly associated with assets classified as held for sale | - | 763,317 | |
Net changes in fair value and transfers to interim condensed consolidated statement of income | (757,070) | (1,158,021) |
The accompanying notes 1 to 28 form an integral part of these interim condensed consolidated financial statements.
Lama Ghazzaoui | Tony Cripps |
Chief Financial Officer | Managing Director & Authorized Member |
Saudi Awwal Bank (formerly known as The Saudi British Bank) Interim Condensed Consolidated Financial Statements
6
Saudi Awwal Bank (formerly known as The Saudi British Bank) Notes to the interim condensed consolidated financial statements
For the nine month period ended 30 September 2023
1. General
Saudi Awwal Bank (formerly known as The Saudi British Bank) ('SAB') is a Saudi joint stock company incorporated in the Kingdom of Saudi Arabia and was established by a Royal Decree No. M/4 dated 12 Safar 1398H (21 January 1978). SAB formally commenced business on 26 Rajab 1398H (1 July 1978) by taking over of the operations of The British Bank of the Middle East in the Kingdom of Saudi Arabia. SAB operates under Commercial Registration No. 1010025779 dated 22 Dhul Qadah 1399H (13 October 1979) as a commercial bank through a network of 104 branches
(31 December 2022: 109 branches) in the Kingdom of Saudi Arabia. The address of SAB's head office is as follows:
Saudi Awwal Bank
7206 Prince Abdul Aziz Bin Musaid Bin Jalawi
4065 Al Murabba District.
12613 Riyadh
Kingdom of Saudi Arabia
During the period, the Group has changed its commercial name from "The Saudi British Bank" to "Saudi Awwal Bank" effective from 11 June 2023.
The objectives of SAB are to provide a range of banking services. SAB also provides Shariah-compliant products, which are approved and supervised by an independent Shari'ah Committee established by SAB.
SAB has 100% (31 December 2022: 100%) ownership interest in a subsidiary, Arabian Real Estate Company Limited ("ARECO"), a limited liability company incorporated in the Kingdom of Saudi Arabia under commercial registration No. 1010188350 dated 12 Jumada I 1424H (12 July 2003). ARECO is engaged in the real estate activities with own and leased property.
SAB has 100% (31 December 2022: 100%) directly held ownership interest in a subsidiary, SAB Markets Limited (formerly known as SABB Markets Limited) ("SAB Markets"), a limited liability company incorporated in the Cayman Islands under commercial registration No 323083 dated 21 Shaban 1438H (17 May 2017). SAB Markets is engaged in derivatives trading and repo activities.
SAB has 100% (31 December 2022: 100%) directly held ownership interest in a subsidiary, Alawwal Invest Company ("SAB Invest"), a closed joint stock company incorporated in the Kingdom of Saudi Arabia under commercial registration No.1010242378 dated 30 Dhul Hijjah 1428H (9 January 2008). SAB Invest was formed and licensed as a capital market institution in accordance with the CMA's Resolution No. 1 39 2007. SAB Invest's principal activity is to engage in security activities regulated by the CMA related to dealing, managing, arranging, advising, and taking custody of securities (see also note 25).
SAB has 100% (31 December 2022: 100%) directly held ownership interest in a subsidiary, Alawwal Real Estate Company ("AREC"), a limited liability company incorporated in the Kingdom of Saudi Arabia under commercial registration No. 1010250772 dated 21 Jumada I 1429H (26 May 2008). AREC is engaged in the real estate activities with own and leased property.
SAB has 49% (31 December 2022: 49%) directly held ownership interest in HSBC Saudi Arabia, an associate, a closed joint stock company incorporated in the Kingdom of Saudi Arabia under commercial registration No. 1010221555 dated 27 Jumada Al-Akhirah 1427H (23 July 2006). HSBC Saudi Arabia was formed and licensed as a capital market institution in accordance with the Resolution No. 37-05008 of the CMA dated 5 Dhul Hijjah 1426H corresponding to (5 January 2006). HSBC Saudi Arabia's principal activity is to engage in the full range of securities activities regulated by the CMA related to dealing, managing, arranging, advising, and taking custody of securities.
Saudi Awwal Bank (formerly known as The Saudi British Bank) Interim Condensed Consolidated Financial Statements
7
Saudi Awwal Bank (formerly known as The Saudi British Bank)
Notes to the interim condensed consolidated financial statements (continued)
For the nine month period ended 30 September 2023
SAB has participated in the following two structured entities for the purpose of effecting syndicated loan transactions in the Kingdom of Saudi Arabia and securing collateral rights over specific assets of the borrowers of those facilities under Islamic financing structures. These entities have no other business operations.
- Saudi Kayan Assets Leasing Company.
- Rabigh Asset Leasing Company.
SAB directly owns a 50% (31 December 2022: 50%) share in Saudi Kayan Assets Leasing Company and Rabigh Asset Leasing Company (the Company is currently under liquidation). Yanbu Asset Leasing Company was liquidated during the period where SAB was directly owning a 100% share. SAB does not consolidate these entities as it does not have the right to variable returns from its involvement with the entities or ability to affect those returns through its power over the entities excluding Yanbu Asset Leasing Company. The related underlying funding to the relevant borrowers is recorded on SAB's consolidated statement of financial position.
2. Basis of preparation
These interim condensed consolidated financial statements of the Group as at and for the period ended 30 September 2023 have been prepared in accordance with International Accounting Standard (IAS) 34 "Interim Financial Reporting" as endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements issued by the Saudi Organisation for Chartered and Professional Accountants ("SOCPA"). The interim condensed consolidated financial statements do not include all the statements and disclosures required in the annual consolidated financial statements and should be read in conjunction with Group's annual consolidated financial statements for the year ended 31 December 2022.
SAB presents its interim condensed consolidated statements of financial position in the order of liquidity.
These interim condensed consolidated financial statements are expressed in Saudi Arabian Riyals (SAR) and are rounded off to the nearest thousands, except where otherwise indicated.
3. Basis of consolidation
These interim condensed consolidated financial statements comprise the financial statements of SAB and its subsidiaries, as mentioned in note 1 (collectively referred to as "the Group"). The financial statements of the subsidiaries are prepared for the same reporting period as that of SAB, using consistent accounting policies.
Subsidiaries are entities which are directly or indirectly controlled by SAB. SAB controls an entity ("the Investee") over which it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Subsidiaries are consolidated from the date on which control is transferred to SAB and cease to be consolidated from the date on which the control is transferred from SAB.
Intra-group transactions and balances have been eliminated in preparing these interim condensed consolidated financial statements.
The Group acts as a Fund Manager to a number of investment funds. Determining whether the Group controls such an investment fund usually focuses on the assessment of the aggregate economic interests of the Group in the Fund (comprising any carried interests and expected management fees) and the investors' rights to remove the Fund Manager. As a result, the Group has concluded that it acts as an agent for the investors in all cases, and therefore has not consolidated these funds.
4. Accounting policies and impact of changes due to adoption of new standards
The accounting policies used in the preparation of these interim condensed consolidated financial statements are consistent with those used in the preparation of the annual consolidated financial statements for the year ended 31 December 2022 unless otherwise stated.
Saudi Awwal Bank (formerly known as The Saudi British Bank) Interim Condensed Consolidated Financial Statements
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The Saudi British Bank SJSC published this content on 01 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 November 2023 13:40:45 UTC.