Consolidated Statement of Cash Flows
For the years ended December 31, 2019 and 2018
| Notes | 2019 SAR ’000 |
2018 Restated SAR ’000 |
|
| Operating Activities | |||
| Net income | 41 (a) | 239,461 | 575,897 |
| Adjustments to reconcile net income to net cash provided from operating activities | |||
| Net accretion of discounts and net amortization of premiums on investments, net | 36,428 | 46,095 | |
| Net change in accrued special commission income | 193,514 | (24,243) | |
| Net change in accrued special commission expense | (33,611) | 85,364 | |
| Net change in deferred loan fees | 27,031 | (10,300) | |
| (Gains) losses on FVOCI debt securities, net | 23 | (43,518) | 59 |
| Unrealized fair value through profit and loss | (7,350) | 20,464 | |
| Realized fair value through profit and loss | (3,275) | (4,528) | |
| Depreciation and amortization | 9 | 143,517 | 103,239 |
| Loss on sales of property, equipment, and intangibles | 2,629 | 30 | |
| Gain on sale of other real estate | (33,886) | – | |
| Provisions for credit and other losses | 40 (a) | 1,342,637 | 246,972 |
| Share in earnings of associates | 8 (b) | (88,156) | (111,195) |
| Share based provisions | 37 (b) | – | 5,400 |
| 1,775,421 | 933,254 | ||
| Net (increase) decrease in operating assets: | |||
| Statutory deposit with SAMA | (221,996) | 114,975 | |
| Due from banks and other financial institutions maturing after three months from acquisition date | (128,566) | (53,578) | |
| Loans and advances | 800,384 | (88,742) | |
| Positive fair values of derivatives | (60,822) | (545,360) | |
| Other real estate | 228,525 | – | |
| Other assets | (258,546) | 114,278 | |
| Net increase (decrease) in operating liabilities: | |||
| Due to banks and other financial institutions | 1,177,687 | 4,971,376 | |
| Customers’ deposits | 5,385,416 | (3,251,040) | |
| Negative fair values of derivatives | (203,539) | 354,885 | |
| Other liabilities | 221,110 | 115,491 | |
| 8,715,074 | 2,665,539 | ||
| Zakat and Income Tax payments | (476,080) | (49,840) | |
| Net cash provided from operating activities | 8,238,994 | 2,615,699 | |
| Investing Activities | |||
| Proceeds from sales and maturities of investments | 1,939,699 | 1,820,969 | |
| Purchases of investments | (2,857,924) | (5,072,207) | |
| Dividends received from associates | 8 (b) | 105,709 | 93,323 |
| Investments in associates | 8 (b) | – | (1,876) |
| Acquisitions of property, equipment, and intangibles | 9 | (163,646) | (118,707) |
| Proceeds from sales of property, equipment, and intangibles | 7,705 | 1,236 | |
| Net cash used in investing activities | (968,457) | (3,277,262) | |
| Financing Activities | |||
| Sale of shares for employee options, net | 37 (b) | – | 16,651 |
| Dividends paid | 26 | – | (450,000) |
| Vesting of employee share options, net | 37 (b) | – | 36,218 |
| Treasury shares purchased | 39 | (253,531) | (787,536) |
| Proceeds from Tier I Sukuk | 38 | 215,000 | 1,000,000 |
| Redemption of Subordinated debt | 15 | (2,000,000) | – |
| Tier I Sukuk costs | (122,024) | (94,904) | |
| Net cash used in financing activities | (2,160,555) | (279,571) | |
| Net increase/(decrease) in cash and cash equivalents | 5,109,982 | (941,134) | |
| Cash and cash equivalents | |||
| Cash and cash equivalents at the beginning of the year | 4 (b) | 4,503,172 | 5,444,306 |
| Net increase/(decrease) in cash and cash equivalents | 5,109,982 | (941,134) | |
| Cash and cash equivalents at the end of the year | 4 (b) | 9,613,154 | 4,503,172 |
| Supplemental special commission information | |||
| Special commission received | 4,096,002 | 3,609,173 | |
| Special commission paid | 1,661,263 | 1,263,479 | |
| Supplemental non-cash information | |||
| Total other comprehensive income (loss) | 522,033 | (373,735) | |
| Adoption of IFRS 9 on January 1, 2018 | – | (822,556) | |
| Adoption of IFRS 16 on January 1, 2019 | 3 (a) (ii) | 246,601 | – |
| Other real estate | 32 (b) | 121,285 | – |
| Zakat settlement from 2006 to 2017, net of fair value adjustment | 27 (b) | – | 711,807 |
The accompanying Notes 1 to 44 form an integral part of these Consolidated Financial Statements.