Saudi Investment Bank announces the interim financial results for the period ending on 30-09-2018 (nine months)

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23/10/2018
Element
Current quarter
Similar quarter for previous year
% Change Current
Previous quarter
% Change Previous
TOTAL REVENUE FOR SPECIAL COMMISSIONS/INVESTMENTS
1,032
869
18.757
937
10.139
NET INCOME FOR SPECIAL COMMISSIONS/INVESTMENTS
570
509
11.984
546
4.396
TOTAL OPERATION PROFIT (LOSS)
701
702
-0.142
671
4.471
NET PROFIT (LOSS)
362
358
1.117
362
0.000
TOTAL COMPREHENSIVE INCOME
554
152
264.474
369
50.136

 

Element
Current period
similar period for previous year
% Change
TOTAL REVENUE FOR SPECIAL COMMISSIONS/INVESTMENTS
2,859
2,591
10.343
NET INCOME FOR SPECIAL COMMISSIONS/INVESTMENTS
1,642
1,458
12.620
TOTAL OPERATION PROFIT (LOSS)
2,058
1,982
3.835
Net profit (loss)
1,084
1,059
2.361
TOTAL COMPREHENSIVE INCOME
1,121
764
46.728
TOTAL SHARE HOLDERS EQUITY (AFTER DEDUCTING MINORITY EQUITY)
12,500
13,190
-5.231
ASSETS
95,450
98,333
-2.932
INVESTMENTS
24,694
21,840
13.068
LOANS AND ADVANCES PORTFOLIO
59,541
61,069
-2.502
CUSTOMER DEPOSIT
64,019
71,065
-9.915
PROFIT (LOSS) PER SHARE
1.45
1.41

All figures are in (Millions) Saudi Arabia, Riyals

ELEMENT
EXPLANATION
REASON FOR INCREASE (DECREASE) IN NET PROFIT FOR CURRENT QUARTER COMPARED TO THE SAME QUARTER OF THE PREVIOUS YEAR
NET INCOME INCREASED DUE TO A DECREASE IN TOTAL OPERATING EXPENSES BY 2.4% RESULTING FROM A DECREASE IN IMPAIRMENT CHARGE FOR EQUITY INVESTMENTS, AND OTHER GENERAL AND ADMINISTRATIVE EXPENSES. THIS WAS OFFSET BY AN INCREASE IN PROVISIONS FOR CREDIT LOSSES, SALARIES AND EMPLOYEE RELATED EXPENSES, RENT AND PREMISES RELATED EXPENSES, AND DEPRECIATION AND AMORTIZATION. ON THE OTHER HAND, OPERATING INCOME DECREASED 0.1% PRIMARILY DUE TO A DECREASE IN GAINS ON INVESTMENTS, DIVIDEND INCOME, AND FAIR VALUE THROUGH PROFIT AND LOSS (FVTPL). THIS WAS OFFSET PRIMARILY BY AN INCREASE IN NET SPECIAL COMMISSION INCOME, AND FEE INCOME FROM BANKING SERVICES.
REASON FOR INCREASE (DECREASE) IN NET PROFIT FOR CURRENT QUARTER COMPARED TO THE PREVIOUS QUARTER
NET INCOME SLIGHTLY INCREASED DUE TO AN INCREASE IN TOTAL OPERATING INCOME BY 4.4% RESULTING FROM AN INCREASE IN NET SPECIAL COMMISSION INCOME, FAIR VALUE THROUGH PROFIT AND LOSS (FVTPL), AND EXCHANGE INCOME. THIS WAS OFFSET PRIMARILY BY A DECREASE IN FEE INCOME FROM BANKING SERVICES, AND DIVIDEND INCOME. ON THE OTHER HAND, TOTAL OPERATING EXPENSES INCREASED 10.7% PRIMARILY DUE TO AN INCREASE IN PROVISIONS FOR CREDIT LOSSES, SALARIES AND EMPLOYEE RELATED EXPENSES, AND RENT AND PREMISES RELATED EXPENSES. THIS WAS OFFSET BY A DECREASE IN OTHER GENERAL AND ADMINISTRATIVE EXPENSES.
REASON FOR INCREASE (DECREASE) IN NET PROFIT FOR CURRENT PERIOD COMPARED TO THE SIMILAR PERIOD OF THE PREVIOUS YEAR
NET INCOME INCREASED DUE TO AN INCREASE IN TOTAL OPERATING INCOME BY 3.8% RESULTING FROM AN INCREASE IN NET SPECIAL COMMISSIONS INCOME, FEE INCOME FROM BANKING SERVICES, AND EXCHANGE INCOME. THIS WAS PARTIALLY OFFSET BY A DECREASE IN GAINS ON INVESTMENTS, FAIR VALUE THROUGH PROFIT AND LOSS (FVTPL), AND DIVIDEND INCOME. ON THE OTHER HAND, TOTAL OPERATING EXPENSES INCREASED BY 4.1% RESULTING FROM AN INCREASE IN PROVISIONS FOR CREDIT LOSSES, SALARIES AND EMPLOYEE RELATED EXPENSES, RENT AND PREMISES RELATED EXPENSES, DEPRECIATION AND AMORTIZATION, AND OTHER GENERAL AND ADMINISTRATIVE EXPENSES.
TYPE OF THE EXTERNAL AUDITOR'S OPINION
UNMODIFIED OPINION.
EXTERNAL AUDITOR'S REPORT CONTAINING RESERVATION
NONE.
RECLASSIFICATIONS IN QUARTER FINANCIAL RESULTS
THE PREVIOUS PERIOD NUMBERS HAVE BEEN RECLASSIFIED/ ADJUSTED TO CONFORM TO THE CURRENT PERIOD PRESENTATION.
ADDITIONAL INFORMATION
SON SEPTEMBER 27, 2018, THE BANK COMPLETED THE PURCHASE OF 56,245,350 SHARES OF THE BANK OWNED BY J.P. MORGAN INTERNATIONAL FINANCE LIMITED FOR SAR 13.50 PER SHARE PLUS TRANSACTION COSTS FOR A TOTAL PRICE OF SAR 760.5 MILLION. THE SHARE CAPITAL OF THE BANK HAS NOT BEEN REDUCED AS A RESULT OF THE TRANSACTION WITH THE COST OF THE SHARES PURCHASED PRESENTED AS A REDUCTION OF SHAREHOLDERS’ EQUITY.

EARNINGS PER SHARE FOR THE NINE MONTHS OF 2018 WAS SAR 1.45, WHICH WAS CALCULATED BY DIVIDING NET INCOME FOR THE PERIOD BY 748.9 MILLION SHARES REPRESENTING THE AVERAGE OF THE ISSUED AND OUTSTANDING SHARES AFTER GIVING EFFECT TO THE PURCHASE OF 56,245,350 TREASURY SHARES ON SEPTEMBER 27, 2018.

TOTAL EQUITY (NO MINORITY INTEREST) INCREASED BY 2.1% TO REACH SAR 14.3 BILLION AS OF SEPTEMBER 30, 2018 COMPARED TO SAR 14.0 BILLION AS OF SEPTEMBER 30, 2017. TOTAL EQUITY AS OF SEPTEMBER 30, 2018 INCLUDES SAR 1,785 MILLION IN TIER 1 SUKUK, SAR 500 MILLION ISSUED IN THE FOURTH QUARTER OF 2016, SAR 285 MILLION ISSUED IN THE SECOND QUARTER OF 2017, AND SAR 1,000 MILLION ISSUED IN THE FIRST QUARTER OF 2018.