Saudi Awwal Bank
(formerly known as The Saudi British Bank) Interim Condensed Consolidated Financial Information
For the three month period ended
31 March 2024
(Unaudited)
Saudi Awwal Bank (formerly known as The Saudi British Bank)
CONTENTS OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION | ||
Page No. | ||
Independent auditors' review report on the interim condensed consolidated financial information | 1 | |
Interim condensed consolidated statement of financial position - Unaudited | ||
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 | |
4. | Material accounting policies and impact of changes due to adoption of new standards | 9 |
5. | Cash and balances with SAMA | 10 |
6. | Due from banks and other financial institutions, net | 10 |
7. | Investments, net | 12 |
8. | Loans and advances, net | 13 |
9. | Investment in an associate | 15 |
10. | Goodwill and other intangibles | 15 |
11. | Derivatives | 16 |
12. | Customers' deposits | 16 |
13. | Debt securities in issue | 16 |
14. | Commitments and contingencies | 17 |
15. | Additional Tier 1 Sukuk | 18 |
16. | Zakat and income tax | 18 |
17. | Basic and diluted earnings per share | 18 |
18. | Cash and cash equivalents | 19 |
19. | Operating segments | 19 |
20. | Financial risk management | 21 |
21. | Fair values of financial instruments | 22 |
22. | Capital adequacy | 24 |
23. | Proposed Dividends | 25 |
24. | Government grant | 25 |
25. | Board of Directors' approval | 25 |
KPMG Professional Services
Roshn Front, Airport Road
P.O. Box 92876
Riyadh 11663
Kingdom of Saudi Arabia
Commercial Registration No 1010425494
Headquarters in Riyadh
INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION
To: The shareholders of Saudi Awwal Bank (formerly known as The Saudi British Bank) (A Saudi Joint Stock Company)
Introduction
We have reviewed the accompanying interim condensed consolidated statement of financial position of Saudi Awwal
ensed consolidated statements of income and comprehensive income, changes in equity and cash flows for the three month period then ended, and other explanatory notes Management is responsible for the preparation and presentation of this interim condensed consolidated financial information in accordance with the International Accounting Standard 34: Interim Financial Reporting Saudi Arabia. Our responsibility is to express a conclusion on this interim condensed consolidated financial information based on our review.
Scope of review
We conducted our review in accordance with the International Standard on Review Engagements 2410: Review of Interim Financial Information Performed by the Independent Auditor of the Entity as endorsed in the Kingdom of Saudi Arabia. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the International Standards on Auditing as endorsed in the Kingdom of Saudi Arabia, and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial information is not prepared, in all material respects, in accordance with IAS 34 as endorsed in the Kingdom of Saudi Arabia.
Other regulatory matters
22 to the accompanying interim condensed consolidated financial information. As part of our review, we compared the information in note 22 to the relevant analysis prepared by the Bank for its submission to SAMA and found no material inconsistencies.
PricewaterhouseCoopers | KPMG Professional Services |
Mufaddal A. Ali
Certified Public Accountant License number: 447
1 Dhul Qadah 1445H
(9 May 2024)
Fahad Mubark Aldossari Certified Public Accountant License number:
PricewaterhouseCoopers, License No. 25
Kingdom Tower, P.O. Box 8282, Riyadh 11482
Kingdom of Saudi Arabia
- +966 (11) 211-0400 F: +966 (11) 211-0401www.pwc.com/middle-east
KPMG Professional (Professional Closed Paid-up capital SR C.R. No. 1010425494 kpmg.com/sa
Saudi Awwal Bank (formerly known as The Saudi British Bank)
Interim condensed consolidated statement of financial position - Unaudited
As at | As at | As at | ||
31 March 2024 | 31 December 2023 | 31 March 2023 | ||
Notes | Unaudited | Audited | Unaudited | |
SAR' 000 | SAR' 000 | SAR' 000 | ||
ASSETS | ||||
Cash and balances with Saudi Central Bank ("SAMA") | 5 | 18,339,418 | 16,741,235 | 21,908,075 |
Due from banks and other financial institutions, net | 6 | 9,205,509 | 7,407,481 | 6,040,552 |
Investments, net | 7 | 91,956,640 | 96,566,836 | 90,978,616 |
Positive fair value derivatives, net | 11 | 2,648,785 | 2,368,382 | 2,116,844 |
Loans and advances, net | 8 | 228,539,158 | 215,935,845 | 191,001,016 |
Investment in an associate | 9 | 497,448 | 462,046 | 629,004 |
Other assets | 3,776,760 | 2,758,518 | 1,832,217 | |
Property, equipment and right of use assets, net | 4,099,020 | 3,844,926 | 3,606,790 | |
Goodwill and other intangibles, net | 10 | 10,549,088 | 10,556,367 | 10,771,480 |
Total assets | 369,611,826 | 356,641,636 | 328,884,594 | |
LIABILITIES AND EQUITY | ||||
Liabilities | ||||
Due to banks and other financial institutions | 31,169,731 | 32,196,102 | 26,353,867 | |
Customers' deposits | 12 | 251,760,141 | 240,940,306 | 225,983,336 |
Negative fair value derivatives, net | 11 | 2,477,642 | 2,231,470 | 1,686,387 |
Debt securities in issue | 13 | 5,076,207 | 5,177,862 | 5,070,852 |
Other liabilities | 16,108,399 | 14,196,333 | 12,756,246 | |
Total liabilities | 306,592,120 | 294,742,073 | 271,850,688 | |
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 | (2,260,085) | (1,414,343) | (596,216) | |
Retained earnings | 9,660,320 | 9,708,134 | 6,488,802 | |
Proposed dividend | 23 | 2,013,699 | - | 1,520,548 |
Total equity attributable to equity holders of the Bank | 59,034,706 | 57,914,563 | 57,033,906 | |
Additional Tier 1 Sukuk | 15 | 3,985,000 | 3,985,000 | - |
Total equity | 63,019,706 | 61,899,563 | 57,033,906 | |
Total liabilities and equity | 369,611,826 | 356,641,636 | 328,884,594 |
The accompanying notes 1 to 25 form an integral part of this interim condensed consolidated financial information.
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 Information
2
Saudi Awwal Bank (formerly known as The Saudi British Bank)
Interim condensed consolidated statement of income - Unaudited
For the three month period ended
31 March 2024 | 31 March 2023 | ||
Notes | SAR'000 | SAR'000 | |
Special commission income | 4,866,703 | 3,801,114 | |
Special commission expense | (2,157,951) | (1,267,078) | |
Net special commission income | 2,708,752 | 2,534,036 | |
Fee and commission income | 995,042 | 776,905 | |
Fee and commission expense | (637,666) | (493,203) | |
Net fee and commission income | 357,376 | 283,702 | |
Exchange income, net | 250,604 | 205,567 | |
Gain from FVSI financial instruments, net | 195,838 | 220,751 | |
Dividend income | 897 | - | |
Losses on FVOCI debt instruments, net | (7,934) | (4,892) | |
Losses on amortised cost investments, net | (40,117) | (15,043) | |
Other operating expenses, net | (17,994) | (6,547) | |
Total operating income | 3,447,422 | 3,217,574 | |
Provision for expected credit losses, net | 19 (a) | (80,656) | (228,964) |
Operating expenses | |||
Salaries and employee related expenses | (550,813) | (509,560) | |
Rent and premises related expenses | (18,178) | (17,814) | |
Depreciation and amortization | (133,436) | (116,882) | |
General and administrative expenses | (348,815) | (361,852) | |
Total operating expenses | (1,051,242) | (1,006,108) | |
Income from operating activities | 2,315,524 | 1,982,502 | |
Share in earnings of an associate | 9 | 35,402 | 29,715 |
Net income for the period before Zakat and income tax | 2,350,926 | 2,012,217 | |
Provision for Zakat and income tax | 16 | (307,907) | (247,647) |
Net income for the period after Zakat and income tax | 2,043,019 | 1,764,570 | |
Basic and diluted earnings per share (in SAR) | 17 | 0.96 | 0.86 |
The accompanying notes 1 to 25 form an integral part of this interim condensed consolidated financial information.
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 Information
3
Saudi Awwal Bank (formerly known as The Saudi British Bank)
Interim condensed consolidated statement of comprehensive income - Unaudited For the three month period ended
31 March 2024 | 31 March 2023 | |
SAR'000 | SAR'000 | |
Net income for the period after Zakat and income tax | 2,043,019 | 1,764,570 |
Other comprehensive income / (loss) for the period | ||
Items that will not be reclassified to interim condensed consolidated | ||
statement of income in subsequent periods | ||
Net changes in fair value of FVOCI equity instruments | 138,826 | (18,259) |
Items that will be reclassified to interim condensed consolidated statement | ||
of income in subsequent periods | ||
Debt instrument at FVOCI: | ||
Net changes in fair value | (937,042) | 539,246 |
Transfer to interim condensed consolidated statement of income, net | 7,934 | 4,892 |
Cash flow hedges: | ||
Net changes in fair value | 58,889 | 141,640 |
Transfer to interim condensed consolidated statement of income, net | (123,627) | (90,664) |
Total other comprehensive (loss) / income for the period | (855,020) | 576,855 |
Total comprehensive income for the period | 1,187,999 | 2,341,425 |
The accompanying notes 1 to 25 form an integral part of this interim condensed consolidated financial information.
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 Information
4
Saudi Awwal Bank (formerly known as The Saudi British Bank)
Interim condensed consolidated statement of changes in equity - Unaudited
For the three month period
Attributable to equity holders of the Bank | Additional | |||||||||||||
Share | Share | Statutory | Other | Retained | Proposed | Tier 1 | Total equity | |||||||
Note | capital | premium | reserve | reserves | earnings | dividends | Total | Sukuk | ||||||
SAR'000 | SAR'000 | SAR'000 | SAR'000 | SAR'000 | SAR'000 | SAR'000 | SAR'000 | SAR'000 | ||||||
31 March 2024 | ||||||||||||||
Balance at the beginning of the period | 20,547,945 | 8,524,882 | 20,547,945 | (1,414,343) | 9,708,134 | - | 57,914,563 | 3,985,000 | 61,899,563 | |||||
Total comprehensive income / (loss) for the period | ||||||||||||||
Net income for the period after Zakat and income tax | - | - | - | - | 2,043,019 | - | 2,043,019 | - | 2,043,019 | |||||
Net changes in fair value of cash flow hedges | - | - | - | 58,889 | - | - | 58,889 | - | 58,889 | |||||
Net changes in fair value of FVOCI equity instruments | - | - | - | 138,826 | - | - | 138,826 | - | 138,826 | |||||
Net changes in fair value of FVOCI debt instruments | - | - | - | (937,042) | - | - | (937,042) | - | (937,042) | |||||
Transfer to interim condensed consolidated statement of income | - | - | - | (115,693) | - | - | (115,693) | - | (115,693) | |||||
- | - | - | (855,020) | 2,043,019 | - | 1,187,999 | - | 1,187,999 | ||||||
Employee share plan reserve net charge and shares vested | - | - | - | 9,278 | - | - | 9,278 | - | 9,278 | |||||
Profit paid on additional Tier 1 Sukuk | - | - | - | - | (77,134) | - | (77,134) | - | (77,134) | |||||
2023 proposed dividend, net of Zakat and income tax | 23 | - | - | - | - | (2,013,699) | 2,013,699 | - | - | - | ||||
Balance at the end of the period | 20,547,945 | 8,524,882 | 20,547,945 | (2,260,085) | 9,660,320 | 2,013,699 | 59,034,706 | 3,985,000 | 63,019,706 | |||||
Attributable to equity holders of the Bank | Additional | |||||||||||||
Share | Share | Statutory | Other | Retained | Proposed | Tier 1 | Total equity | |||||||
Note | capital | premium | reserve | reserves | earnings | dividends | Total | Sukuk | ||||||
SAR'000 | SAR'000 | SAR'000 | SAR'000 | SAR'000 | SAR'000 | SAR'000 | SAR'000 | SAR'000 | ||||||
31 March 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 | ||||||
Total comprehensive income / (loss) for the period | ||||||||||||||
Net income for the period after Zakat and income tax | - | - | - | - | 1,764,570 | - | 1,764,570 | - | 1,764,570 | |||||
Net changes in fair value of cash flow hedges | - | - | - | 141,640 | - | - | 141,640 | - | 141,640 | |||||
Net changes in fair value of FVOCI equity instruments | - | - | - | (18,259) | - | - | (18,259) | - | (18,259) | |||||
Net changes in fair value of FVOCI debt instruments | - | - | - | 539,246 | - | - | 539,246 | - | 539,246 | |||||
Transfer to interim condensed consolidated statement of income | - | - | - | (85,772) | - | - | (85,772) | - | (85,772) | |||||
- | - | - | 576,855 | 1,764,570 | - | 2,341,425 | - | 2,341,425 | ||||||
Employee share plan reserve net charge and shares vested | - | - | - | 9,277 | - | - | 9,277 | - | 9,277 | |||||
2022 final dividend, net of Zakat and income tax | 23 | - | - | - | - | (1,520,548) | 1,520,548 | - | - | - | ||||
Balance at the end of the period | 20,547,945 | 8,524,882 | 20,547,945 | (596,216) | 6,488,802 | 1,520,548 | 57,033,906 | - | 57,033,906 |
The accompanying notes 1 to 25 form an integral part of this interim condensed consolidated financial information.
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 Information
5
Saudi Awwal Bank (formerly known as The Saudi British Bank)
Interim condensed consolidated statement of cash flows - Unaudited
For the three month period
Notes | 31 March 2024 | 31 March 2023 | |
SAR'000 | SAR'000 | ||
OPERATING ACTIVITIES | |||
Net income for the period before Zakat and income tax | 2,350,926 | 2,012,217 | |
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 | (81,943) | (67,129) | |
Depreciation and amortization | 133,436 | 116,882 | |
Special commission expense on debt securities in issue | 99,841 | 88,673 | |
Special commission expense on lease liabilities | 3,518 | 4,175 | |
Losses on amortised cost financial instruments | 40,117 | 15,043 | |
Income transferred to interim condensed consolidated statement of income | (115,693) | (85,772) | |
Share in earnings of an associate | 9 | (35,402) | (29,715) |
Provision for expected credit losses, net | 19 (a) | 80,656 | 228,964 |
Employee share plan reserve | 9,278 | 9,277 | |
2,484,734 | 2,292,615 | ||
Change in operating assets: | |||
Statutory deposit with SAMA | (521,852) | 18,168 | |
Due from banks and other financial institutions | 42,501 | (42,218) | |
Investments held as FVSI | 94,197 | 292,649 | |
Loans and advances | (12,729,373) | (8,058,517) | |
Positive fair value derivatives | (221,514) | 562,870 | |
Other assets | (1,018,242) | 396,760 | |
Change in operating liabilities: | |||
Due to banks and other financial institutions | (1,026,371) | 836,564 | |
Customers' deposits | 10,819,835 | 11,704,485 | |
Negative fair value derivatives | 246,172 | (221,049) | |
Other liabilities | 1,689,913 | (414,783) | |
(140,000) | 7,367,544 | ||
Zakat and income tax paid | - | (39,623) | |
Net cash (used in) / generated from operating activities | (140,000) | 7,327,921 | |
INVESTING ACTIVITIES | |||
Proceeds from sale and maturity of investments not held as FVSI | 7,268,944 | 3,184,825 | |
Purchase of investments not held as FVSI | (3,511,360) | (7,521,092) | |
Purchase of property, equipment and intangibles, net | (380,251) | (36,473) | |
Net cash generated from / (used in) investing activities | 3,377,333 | (4,372,740) | |
FINANCING ACTIVITIES | |||
Special commission paid on debt securities in issue | (201,496) | (132,657) | |
Payment of lease liabilities | (31,416) | (27,524) | |
Profit paid on additional Tier 1 Sukuk | (77,134) | - | |
Dividends paid | (9,759) | (180) | |
Net cash used in financing activities | (319,805) | (160,361) | |
Net change in cash and cash equivalents | 2,917,528 | 2,794,820 | |
Cash and cash equivalents at beginning of the period | 18 | 10,198,684 | 11,808,078 |
Cash and cash equivalents at end of the period | 18 | 13,116,212 | 14,602,898 |
Special commission income received | 4,961,626 | 3,740,012 | |
Special commission income paid | 2,159,730 | 1,091,735 | |
Supplemental non cash information | |||
Net changes in fair value and transfers to interim condensed consolidated statement of income | (855,020) | 576,855 | |
The accompanying notes 1 to 25 form an integral part of this interim condensed consolidated financial information.
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 Information
6
Notesto the interim condensed consolidated financial information
For the three month period ended 31 March 2024
All amounts in thousands of Saudi Riyals unless otherwise stated
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 103 branches (31 December 2023: 104 branches) in the Kingdom of Saudi Arabia. The address of SAB's head office is as follows:
Saudi Awwal Bank
7287 King Fahad Branch Rd
2383 Al Yasmeen Dist.
13325 Riyadh
Kingdom of Saudi Arabia
The shareholders of the Saudi British Bank and Alawwal Bank ("AAB") approved the merger of the two banks at
Extraordinary General Meetings held on 15 May 2019 pursuant to Articles 191-193 of the Companies Law issued under Royal Decree No. M3 dated 28/1/1437H (corresponding to 10/11/2015G) (the "Companies Law"), and Article 49 (a) (1) of the Merger and Acquisitions Regulations issued by the Capital Markets Authority of the Kingdom of Saudi Arabia (the
"CMA").
Subsequent to the above merger, 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 Shariah Committee established by SAB.
The details of the Group's subsidiaries and associate are as follows:
Name of subsidiaries / | Ownership % | Description | |||
associate | |||||
2024 | 2023 | ||||
Arabian Real Estate | A limited liability company incorporated in the Kingdom of Saudi Arabia under | ||||
Company Limited | 100% | 100% | commercial registration No. 1010188350 dated 12 Jumada I 1424H (12 July | ||
("ARECO") | 2003). ARECO is engaged in the real estate activities. | ||||
SAB Markets Limited | A limited liability company incorporated in the Cayman Islands under | ||||
(formerly known as | |||||
100% | 100% | commercial registration No 323083 dated 21 Shaban 1438H (17 May 2017). | |||
SABB Markets Limited) | |||||
SAB Markets is engaged in derivatives trading and repo activities. | |||||
("SAB Markets") | |||||
A closed joint stock company incorporated in the Kingdom of Saudi Arabia | |||||
under commercial registration No.1010242378 dated 30 Thul-Hijjah 1428H | |||||
Alawwal Invest | (9 January 2008). Alawwal Invest was formed and licensed as a capital | ||||
Company ("SAB | 100% | 100% | market institution in accordance with the CMA's Resolution No. 1 39 2007. | ||
Invest") | 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. | |||||
Alawwal Real Estate | A limited liability company incorporated in the Kingdom of Saudi Arabia under | ||||
100% | 100% | commercial registration No. 1010250772 dated 21 Jumada I 1429H (26 May | |||
Company ("AREC") | |||||
2008). AREC is engaged in the real estate activities. | |||||
A closed joint stock company incorporated in the Kingdom of Saudi Arabia | |||||
under commercial registration No. 1010221555 dated 27 Jumada II 1427H | |||||
(23 July 2006). HSBC Saudi Arabia was formed and licensed as a capital | |||||
49% | market institution in accordance with the Resolution No. 37-05008 of the | ||||
HSBC Saudi Arabia | 49% | ||||
CMA dated 05 Thul-Hijjah 1426H corresponding to 05 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 Information
7
Notes to the interim condensed consolidated financial information (continued)
For the three month period ended 31 March 2024
All amounts in thousands of Saudi Riyals unless otherwise stated
SAB has participated in the following two structured entities for the purpose of effecting syndicated loan transactions in the Kingdom of Saudi Arabia. These entities have no other business operations. The details of the entities are as follows:
Name of Entity | Ownership % | Description | |||
2024 | 2023 | ||||
Saudi Kayan Assets | The entity was incorporated for the purpose of effecting syndicated loan | ||||
50% | 50% | transactions and securing collateral rights over specific assets of the borrowers of | |||
Leasing Company | |||||
those facilities under Islamic financing structure. | |||||
Rabigh Asset Leasing | 50% | 50% | (the company is currently under liquidation). | ||
Company | |||||
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. The related underlying funding to the relevant borrowers is recorded on SAB's consolidated statement of financial position.
2. Basis of preparation
This interim condensed consolidated financial information of the Group as at and for the period ended 31 March 2024 has 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 statements information does not include all the information and disclosures required in the annual consolidated financial statements and should be read in conjunction with Group's annual consolidated financial statements as at 31 December 2023.
SAB presents its interim condensed consolidated statement of financial position in the order of liquidity.
This interim condensed consolidated financial information is expressed in Saudi Arabian Riyals (SAR) and is rounded off to the nearest thousands, except where otherwise indicated.
3. Basis of consolidation
This interim condensed consolidated financial information comprises the financial information of SAB and its subsidiaries, as mentioned in note 1 (collectively referred to as "the Group"). The financial information of the subsidiaries is 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. Intragroup transactions and balances have been eliminated in preparing this interim condensed consolidated financial information.
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.
Saudi Awwal Bank (formerly known as The Saudi British Bank) Interim Condensed Consolidated Financial Information
8
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The Saudi British Bank SJSC published this content on 12 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2024 08:33:03 UTC.