ELEMENT LIST

Current YEAR

PREVIOUS YEAR

% Change

Total Revenue from Special Commissions/Financing & Investments

3,902

3,633

7.404

Net Income from Special Commissions/Financing & Investments

2,278

2,288

-0.437

Total Operation Profit (Loss)

2,818

2,713

3.870

Net Profit (Loss) before Zakat and Income Tax

330

1,444

-77.147

Net Profit (Loss)

239

576

-58.507

Total Comprehensive Income

761

202

276.733

Total Share Holders Equity (after deducting minority equity)

12,007

11,621

3.322

Assets

100,815

96,070

4.939

Investments

26,175

24,638

6.238

Loans and Advances Portfolio (Financing & Investment)

57,113

59,413

-3.871

Customer Deposits

69,058

63,690

8.428

Profit (Loss) per Share

0.17

0.65

Element

Explanation

Increase (Decrease) in Net Profit for Current Year Compared to Last Year is Attributed to

Net profit decreased by 58.5% primarily due to an increase in total operating expenses which was due to an increase in provisions for credit and other losses, salaries and employee-related expenses, depreciation and amortization, and other general and administrative expenses which was offset by a decrease in rent and premises-related expenses, and provisions for Zakat and Income Tax.

Total operating income increased by 3.9% primarily due to an increase in fee income from banking services, exchange income, fair value through profit and loss, gains on FVOCI debt securities, and other income which was offset by a decrease in net special commission income, and dividend income.

Basis of the External Auditor's Opinion

Unmodified opinion.

Reclassification of Comparison Items

The previous period numbers have been reclassified/adjusted to conform to the current period presentation.

Additional Information

Starting from the quarter ended June 2019, and in accordance with International Financial Reporting Standards (IFRS) and other standards and pronouncements endorsed by SOCPA, the Bank changed its accounting policy for reporting provisions for Zakat and Income Taxes. Accordingly, the Bank has reported provisions for Zakat and Income Tax through the statement of income for the year ending 2019 and restated the year ended 2018. Previously, provisions for Zakat and Income Tax were reported in the statement of changes in equity.

In Q4 2018, the Bank entered into a settlement agreement with the GAZT for zakat claims for periods up to and including 2017. The amount of the settlement was SAR 775.5 million for 2006 to 2017 and SAR 38.9 million for 2005. The restated 2018 statement of income includes the discounted impact of this settlement of SAR 750.5 million.

The restated 2018 statement of income, including the impact of the settlement agreement and other adjustments resulted in a SAR 883 million decrease of previously reported net income resulting in a decrease in earnings per share from SAR 1.86 to SAR 0.65.

Earnings per share for the year ended December 31, 2019 was 0.17 SAR, which was calculated by dividing net income adjusted for Tier I Sukuk costs by 683 million shares representing the weighted average of the issued and outstanding shares after giving effect to the purchase of 56.2 million and 18.7 million Treasury shares on September 27, 2018 and May 28, 2019 respectively.

Earnings per share for the year ended December 31, 2018 was SAR 0.65, which was calculated by dividing net income adjusted for Tier I Sukuk costs by 735 million shares representing the weighted average of the issued and outstanding shares after giving effect to the purchase of 56.2 million Treasury shares on September 27, 2018.