Riyad Bank — Earnings Release 2019

Jan 26, 2020

Riyad Bank announces its Annual Financial Results for the Period Ending on 2019-12-31

1010 · 26/01/2020 15:40:52 · Announcement #57368 · View on Saudi Exchange

Riyad Bank announces its Annual Financial Results for the Period Ending on 2019-12-31

Element List	Current Year	Previous Year	%Change
Total Revenue from Special Commissions/Financing & Investments	10,371	8,332	24.471
Net Income from Special Commissions/Financing & Investments	7,837	6,628	18.24
Total Operation Profit (Loss)	10,717	8,967	19.516
Net Profit (Loss)	5,602	3,092	81.177
Total Comprehensive Income	6,557	2,526	159.58
Total Share Holders Equity (after Deducting Minority Equity)	40,571	36,774	10.325
Assets	265,789	229,900	15.61
Investments	53,361	47,993	11.184
Loans and Advances Portfolio (Financing & Investment)	173,982	151,025	15.2
Customer Deposits	194,518	169,822	14.542
Profit (Loss) per Share	1.87	1.03
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
Increase (Decrease) in Net Profit for Current Year Compared to Last Year is Attributed to	Net profit increased because of higher total operating income by 19.5 % mainly due to increase in net special commission income, fee and commission income, net and gains on non- trading investments, net. Zakat expense was also lower compared to last year by 61.2% as, 2018 included zakat settlement amounts relating to earlier years till 2017. The total operating expenses rose by 7.8%, mainly due to increase in impairment charge for credit losses and other financial assets, net, salaries and employee related expenses, other general and administrative expense and other operating expenses, partially offset by a drop in impairment charge for investments, net.
Basis of the External Auditor's Opinion	Unmodified opinion
Reclassification of Comparison Items	Certain previous year figures has been reclassified in order to conform with current year classifications and some items have been re-classified.
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 zakat. Accordingly, the Bank has reported zakat through the statement of income for the year-ended 2019 and restated the year-ended 2018. Previously zakat was reported in the statement of changes in equity.

In Q4 2018, the Bank entered into a settlement of zakat claims agreement with GAZT for periods up to and including 2017. The amount of the settlement was SAR 2,970 million and the restated 2018 statement of income includes the impact of this settlement.

The restated 2018 statement of income, including the impact of the settlement agreement, resulted in a SAR 1,624 million decrease of previously reported net income for 2018 and commensurately a decrease of earnings per share from SAR 1.57 to SAR 1.03.

The net income before zakat for the 3 month and 12 month period ended 31 December 2019 was SAR 1,241 million ( 31 December 2018: SAR 1,352 million) and SAR 6,232 million (31 December 2018: SAR 4,716 million) respectively. The net income before zakat for the 3 month period ended 30 September 2019 was SAR 1,676 million.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.