For the years ended December 31, 2018 and 2017
| Notes | 2018
SAR ’000 |
2017
SAR ’000 |
|
| Operating Activities | |||
| Net income | 1,458,718 | 1,410,798 | |
| Adjustments to reconcile net income to net cash from (used in) operating activities | |||
| Net accretion of discounts and net amortization of premiums on investments not held as FVTPL | 46,095 | 56,903 | |
| Net change in accrued special commission income | (24,243) | (84,713) | |
| Net change in accrued special commission expense | 85,364 | (85,487) | |
| Net change in deferred loan fees | (10,300) | 11,038 | |
| Losses on FVOCI debt securities | 23 | 59 | – |
| Gains on investments, net | 23 | – | (49,130) |
| Loss (gain) on sales of property, equipment, and intangibles | 30 | (15) | |
| FVTPL unrealized losses | 20,464 | – | |
| FVTPL realized gains | (4,528) | – | |
| Depreciation and amortization | 9 | 103,239 | 92,559 |
| Provisions for credit losses | 246,972 | 213,000 | |
| Impairment charge for equity investments | 6 | – | 108,622 |
| Share in earnings of associates | 8 | (126,145) | (131,851) |
| Share based provisions | 38 | 5,400 | 9,948 |
| 1,801,125 | 1,551,672 | ||
| Net (increase) decrease in operating assets: | |||
| Statutory deposit with SAMA | 114,975 | 243,558 | |
| Due from banks and other financial institutions maturing after ninety days from acquisition date | (53,578) | 25,663 | |
| Loans and advances, net | (88,742) | 545,068 | |
| Positive fair values of derivatives | (545,360) | 6,357 | |
| Other assets | 114,278 | (357,024) | |
| Net increase (decrease) in operating liabilities: | |||
| Due to banks and other financial institutions | 4,971,376 | (1,425,465) | |
| Customer deposits | (3,251,040) | 1,381,361 | |
| Negative fair values of derivatives | 354,885 | (29,708) | |
| Other liabilities | (723,251) | (60,178) | |
| Net cash provided from operating activities | 2,694,668 | 1,881,304 | |
| Investing Activities | |||
| Proceeds from sales and maturities of investments | 1,820,969 | 3,894,435 | |
| Purchases of investments | (5,072,207) | (4,561,311) | |
| Dividends received from associates | 8 | 108,273 | 98,815 |
| Investments in associates | 8 | (1,876) | – |
| Acquisitions of property, equipment, and intangibles | 9 | (161,556) | (107,880) |
| Proceeds from sales of property, equipment, and intangibles | 6 | 15 | |
| Net cash used in investing activities | (3,306,391) | (675,926) | |
| Financing Activities | |||
| Zakat and Income Tax payments, net | (49,840) | (35,144) | |
| Treasury shares purchased | 40 | (787,536) | – |
| Sales (purchases) of shares for employee options | 38 | 16,651 | (17,574) |
| Vesting of employee share options, net | 38 | 36,218 | 12,241 |
| Dividends paid | 26 | (450,000) | (350,000) |
| Repayment of term loans | 14 | – | (1,000,000) |
| Proceeds from term loans | 14 | – | 1,000,000 |
| Proceeds from Tier 1 Sukuk | 39 | 1,000,000 | 285,000 |
| Tier 1 Sukuk costs | (94,904) | (38,247) | |
| Net cash used in financing activities | (329,411) | (143,724) | |
| Net (decrease) increase in cash and cash equivalents | (941,134) | 1,061,654 | |
| Cash and cash equivalents | |||
| Cash and cash equivalents at the beginning of the year | 5,444,306 | 4,382,652 | |
| Net (decrease) increase in cash and cash equivalents | (941,134) | 1,061,654 | |
| Cash and cash equivalents at the end of the year | 28 | 4,503,172 | 5,444,306 |
| Supplemental special commission information | |||
| Special commission received | 3,609,173 | 3,448,376 | |
| Special commission paid | 1,263,479 | 1,573,746 | |
| Supplemental non-cash information | |||
| Total other comprehensive loss | (373,735) | (305,173) | |
| Other real estate | – | 300,000 | |
| Bonus shares issued | 26 | – | 500,000 |
| Adoption of IFRS 9 on January 1, 2018 | 822,556 | – | |
| Zakat settlement from 2006 to 2017, net of fair value adjustment | 27 | 711,807 | – |
The accompanying Notes 1 to 43 form an integral part of these Consolidated Financial Statements.
