Frequency : SA Location : W Particulars 3. Subsidiary 3 4. Subsidiary n TABLE 1: SCOPE OF APPLICATION Capital Deficiencies (Table 1, (e)) The aggregate amount of capital deficiencies in subsidiaries not included in the consolidation i.e. that are deducted: 1. Subsidiary 1 2. Subsidiary 2 Amount - 40 -
Pillar 3 Quantitative Disclosures 31 December 2015 Prepared By: Aamer Saeed Reviewed By: Hani Noori (Chief Accounting Officer) Reviewed By: Venkatesh Kallur (Vice President - Head of Enterprise Risk Strategy & Architecture) Approved By: Shahid Amin (Group CFO) Co-approved By: Osama Al Ibrahim (CRO)
Pillar 3 Quantitative Disclosures 31 December 2015
All figures are in SAR'000 TABLE 2: CAPITAL STRUCTURE Balance sheet - Step 1 (Table 2(b)) Balance sheet in Published financial statements Adjustment of banking associates / other entities (*) Under regulatory scope of consolidation ( C ) ( D ) ( E ) Assets Cash and balances at central banks 3,728,044-3,728,044 Due from banks and other financial institutions 4,691,538-4,691,538 Investments, net 11,201,821-11,201,821 Loans and advances, net 41,863,473-41,863,473 Investment in associates 128,334-128,334 Other Real Estate, net 44,126-44,126 Property and equipment, net 679,087-679,087 Other assets 927,711-927,711 Total assets 63,264,134-63,264,134 Liabilities Due to Banks and other financial institutions 4,054,511-4,054,511 Customer deposits 49,673,599-49,673,599 Debt securities in issue 1,000,000-1,000,000 Other liabilities 1,122,554-1,122,554 Subtotal 55,850,664-55,850,664 Paid up share capital 4,000,000-4,000,000 Statutory reserves 1,727,119-1,727,119 General reserves 68,000-68,000 Other reserves (172,656) - (172,656) Retained earnings 1,791,006-1,791,006 Minority Interest - - - Proposed dividends - - - Total liabilities and equity 63,264,133-63,264,133 Page Basel 4 III- P 3 Quantitative Disclosures - December 31, 2015_SAMA
All figures are in SAR'000 TABLE 2: CAPITAL STRUCTURE Balance sheet - Step 2 (Table 2(c)) Balance sheet in Published financial statements Adjustment of banking associates / other entities Under regulatory scope of consolidation Reference ( C ) ( D ) ( E ) Assets Cash and balances at central banks 3,728,044-3,728,044 Due from banks and other financial institutions 4,691,538-4,691,538 Investments, net 11,201,821-11,201,821 of which Investments in the capital of banking, financial and insurance entities that where the bank does not own more than 10% of the issued 636,188-636,188 common share capital of the entity A Loans and advances, net 41,863,473-41,863,473 of which Collective provisions 450,969-450,969 B Investment in associates 128,334-128,334 of which Significant investments in the capital of banking, financial and insurance entities that are outside the scope 128,334-128,334 of regulatory consolidation C Other Real Estate, net 44,126-44,126 Property and equipment, net 679,087-679,087 Other assets 927,711-927,711 Total assets 63,264,134-63,264,134 Liabilities Due to Banks and other financial institutions 4,054,511-4,054,511 Customer deposits 49,673,599-49,673,599 Debt securities in issue 1,000,000-1,000,000 of which Tier 2 capital instruments subject to phase-out 1,000,000-1,000,000 D Other liabilities 1,122,554-1,122,554 Subtotal 55,850,664-55,850,664 Paid up share capital 4,000,000-4,000,000 of which amount eligible for CET1 4,000,000-4,000,000 E of which amount eligible for AT1 - - - F Statutory reserves 1,727,119-1,727,119 G General reserves 68,000-68,000 H Other reserves (172,656) - (172,656) I of which cash flow hedge reserve (165,237) - (165,237) J Retained earnings 1,791,006-1,791,006 K Minority Interest - - - Proposed dividends - - - Total liabilities and equity 63,264,133-63,264,133 Page 5
TABLE 2: CAPITAL STRUCTURE Common template (transition) - Step 3 (Table 2(d)) i (From January 2013 to 2018 identical to post 2018) With amount subject to Pre- Basel III Treatment All figures are in SAR'000 Components of regulatory capital reported by the bank Amounts subject to Pre - Basel III treatment Source based on reference numbers / letters of the balance sheet under the regulatory scope of consolidation from step 2 (2) Common Equity Tier 1 capital: Instruments and reserves 1 Directly issued qualifying common share capital (and equivalent for non-joint stock companies) plus related stock surplus 4,000,000 E 2 Retained earnings 1,791,006 K 3 Accumulated other comprehensive income (and other reserves) 1,622,463 G + H + I 4 Directly issued capital subject to phase out from CET1 (only applicable to non-joint stock companies) - 5 Common share capital isued by subsidiaries and held by third parties (amount allowed in group CET1) - - 6 Common Equity Tier 1 capital before regulatory adjustments 7,413,469 Common Equity Tier 1 capital: Regulatory adjustments 7 Prudential valuation adjustments - - 8 Goodwill (net of related tax liability) - - 9 Other intangibles other than mortgage-servicing rights (net of related tax liability) - - 10 Deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of related tax liability) - - 11 Cash-flow hedge reserve 165,237 - J 12 Shortfall of provisions to expected losses - - 13 Securitisation gain on sale (as set out in paragraph 562 of Basel II framework) - - 14 Gains and losses due to changes in own credit risk on fair valued liabilities - - 15 Defined-benefit pension fund net assets - - 16 Investments in own shares (if not already netted off paid-in capital on reported balance sheet) - - 17 Reciprocal cross-holdings in common equity - - 18 Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, A net of eligible short positions, where the bank does not own more than 10% of the issued share capital (amount above 10% threshold) - - 19 Significant investments in the common stock of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions (amount above 10% threshold) - - 20 Mortgage servicing rights (amount above 10% threshold) - - 21 Deferred tax assets arising from temporary differences (amount above 10% threshold, net of related tax liability) - - 22 Amount exceeding the 15% threshold - 23 of which: significant investments in the common stock of financials - - 24 of which: mortgage servicing rights - - 25 of which: deferred tax assets arising from temporary differences - 26 National specific regulatory adjustments - - REGULATORY ADJUSTMENTS APPLIED TO COMMON EQUITY TIER 1 IN RESPECT OF AMOUNTS SUBJECT TO PRE-BASEL III TREATMENT OF WHICH: [INSERT NAME OF ADJUSTMENT] - OF WHICH: - 27 Regulatory adjustments applied to Common Equity Tier 1 due to insufficient Additional Tier 1 and Tier 2 to cover deductions - 28 Total regulatory adjustments to Common equity Tier 1 165,237 29 Common Equity Tier 1 capital (CET1) 7,578,706 Additional Tier 1 capital: instruments 30 Directly issued qualifying Additional Tier 1 instruments plus related stock surplus - 31 of which: classified as equity under applicable accounting standards - 32 of which: classified as liabilities under applicable accounting standards - 33 Directly issued capital instruments subject to phase out from Additional Tier 1-34 Additional Tier 1 instruments (and CET1 instruments not included in row 5) issued by subsidiaries and held by third parties (amount allowed in group AT1) - 35 of which: instruments issued by subsidiaries subject to phase out - 36 Additional Tier 1 capital before regulatory adjustments - Additional Tier 1 capital: regulatory adjustments 37 Investments in own Additional Tier 1 instruments - - 38 Reciprocal cross-holdings in Additional Tier 1 instruments - - 39 Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the bank does not own more than 10% of the issued common share capital of the entity (amount above 10% threshold) - - 40 Significant investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation (net of eligible short positions) - - 41 National specific regulatory adjustments - REGULATORY ADJUSTMENTS APPLIED TO ADDITIONAL TIER 1 IN RESPECT OF AMOUNTS SUBJECT TO PRE- BASEL III TREATMENT - OF WHICH: [INSERT NAME OF ADJUSTMENT] - OF WHICH: - 42 Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover deductions - 43 Total regulatory adjustments to Additional Tier 1 capital - 44 Additional Tier 1 capital (AT1) - 45 Tier 1 capital (T1 = CET1 + AT1) 7,578,706 Page 6
TABLE 2: CAPITAL STRUCTURE Common template (transition) - Step 3 (Table 2(d)) ii (From January 2013 to 2018 identical to post 2018) With amount subject to Pre- Basel III Treatment All figures are in SAR'000 Components 1 of regulatory capital reported by the bank Amounts 1 subject to Pre - Basel III treatment Source based on reference numbers / letters of the balance sheet under the regulatory scope of consolidation from step 2 Tier 2 capital: instruments and provisions 46 Directly issued qualifying Tier 2 instruments plus related stock surplus - 47 Directly issued capital instruments subject to phase out from Tier 2 700,000 D 48 Tier 2 instruments (and CET1 and AT1 instruments not included in rows 5 or 34) issued by subsidiaries and held by third parties (amount allowed in group Tier 2) - 49 of which: instruments issued by subsidiaries subject to phase out - 50 Provisions 421,227 B 51 Tier 2 capital before regulatory adjustments 1,121,227 Tier 2 capital: regulatory adjustments 52 Investments in own Tier 2 instruments - - 53 Reciprocal cross-holdings in Tier 2 instruments - - 54 Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the bank does not own more than 10% of the issued common share capital of the entity (amount above the 10% threshold) - - A 55 Significant investments in the capital banking, financial and insurance entities that are outside the scope of regulatory consolidation (net of eligible short positions) - - 56 National specific regulatory adjustments - REGULATORY ADJUSTMENTS APPLIED TO TIER 2 IN RESPECT OF AMOUNTS SUBJECT TO PRE- BASEL III TREATMENT - OF WHICH: [INSERT NAME OF ADJUSTMENT] - OF WHICH: - 57 Total regulatory adjustments to Tier 2 capital - 58 Tier 2 capital (T2) 1,121,227 59 Total capital (TC = T1 + T2) 8,699,933 RISK WEIGHTED ASSETS IN REPECT OF AMOUNTS SUBJECT TO PRE-BASEL III TREATMENT - OF WHICH: [INSERT NAME OF ADJUSTMENT] - OF WHICH: - 60 Total risk weighted assets 54,974,551 Capital ratios 61 Common Equity Tier 1 (as a percentage of risk weighted assets) 13.79% 62 Tier 1 (as a percentage of risk weighted assets) 13.79% 63 Total capital (as a percentage of risk weighted assets) 15.83% 64 Institution specific buffer requirement (minimum CET1 requirement plus capital conservation buffer plus countercyclical buffer requirements plus G-SIB buffer requirement expressed as a percentage of risk weighted assets) 0% 65 of which: capital conservation buffer requirement 66 of which: bank specific countercyclical buffer requirement 0% 67 of which: G-SIB buffer requirement 0% 68 Common Equity Tier 1 available to meet buffers (as a percentage of risk weighted assets) 13.79% National minima (if different from Basel 3) 69 National Common Equity Tier 1 minimum ratio (if different from Basel 3 minimum) n/a 70 National Tier 1 minimum ratio (if different from Basel 3 minimum) n/a 71 National total capital minimum ratio (if different from Basel 3 minimum) n/a Amounts below the thresholds for deduction (before risk weighting) 72 Non-significant investments in the capital of other financials 757,871 73 Significant investments in the common stock of financials 128,334 74 Mortgage servicing rights (net of related tax liability) - 75 Deferred tax assets arising from temporary differences (net of related tax liability) - Applicable caps on the inclusion of provisions in Tier 2 76 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to standardised approach (prior to application of cap) 421,227 B 77 Cap on inclusion of provisions in Tier 2 under standardised approach 622,590 78 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal ratings-based approach (prior to application of cap) n/a 79 Cap for inclusion of provisions in Tier 2 under internal ratings-based approach n/a Capital instruments subject to phase-out arrangements (only applicable between 1 Jan 2018 and 1 Jan 2022) 80 Current cap on CET1 instruments subject to phase out arrangements - 81 Amount excluded from CET1 due to cap (excess over cap after redemptions and maturities) - 82 Current cap on AT1 instruments subject to phase out arrangements - 83 Amount excluded from AT1 due to cap (excess over cap after redemptions and maturities) - 84 Current cap on T2 instruments subject to phase out arrangements 700,000 D 85 Amount excluded from T2 due to cap (excess over cap after redemptions and maturities) 300,000 D Page 7
TABLE 2: CAPITAL STRUCTURE Main features template of regulatory capital instruments - (Table 2(e)) 1 Issuer Bank Aljazira Bank Aljazira 2 Unique identifier (e.g. CUSPIN, ISIN or Bloomberg identifier for private placement) SA0007879055 Bank Aljazira Sukuk 3 Governing law(s) of the instrument Law of the Kingdom of Saudi Arabia Law of the Kingdom of Saudi Arabia Regulatory treatment 4 Transitional Basel III rules Common Equity Tier 1 Tier 2 Capital 5 Post-transitional Basel III rules Common Equity Tier 1 Ineligible 6 Eligible at solo/lgroup/group&solo Group & Solo Group & Solo 7 Instrument type Paid-up Share Capital Subordinated Sukuk 8 Amount recognied in regulatory capital (Currency in mil, as of most recent reporting date) SAR 4,000 million SAR 700 million 9 Par value of instrument SAR 4,000 million SAR 1,000 million 10 Accounting classification Shareholders equity Liability amortised cost 11 Original date of issuance 27-Jul-1976 29-Mar-2011 12 Perpetual or dated Perpetual Dated 13 Original maturity date No maturity 29 March 2021 14 Issuer call subject to prior supervisory approval No Yes 15 Option call date, contingent call dates and redemption amount Not Applicable 29-Mar-2016 16 Subsequent call dates if applicable Not Applicable Anytime after above date Coupons / dividends 17 Fixed or Floating dividend/coupon Not Applicable Floating 18 Coupon rate and any related index Not Applicable SIBOR + 170 bps 19 Existence of a dividend stopper Not Applicable No 20 Fully discretionary, partially discretionary or mandatory Fully discretionary Mandatory 21 Existence of step up or other incentive to redeem No Yes 22 Non cumulative or cumulative Non-Cumulative Non-Cumulative 23 Convertible or non-convertible Nonconvertible Nonconvertible 24 If convertible, conversion trigger (s) Not Applicable Not Applicable 25 If convertible, fully or partially Not Applicable Not Applicable 26 If convertible, conversion rate Not Applicable Not Applicable 27 If convertible, mandatory or optional conversion Not Applicable Not Applicable 28 If convertible, specify instrument type convertible into Not Applicable Not Applicable 29 If convertible, specify issuer of instrument it converts into Not Applicable Not Applicable 30 Write-down feature No No 31 If write-down, write-down trigger (s) Not Applicable Not Applicable 32 If write-down, full or partial Not Applicable Not Applicable 33 If write-down, permanent or temporary Not Applicable Not Applicable 34 If temporary writedown, description of the write-up mechansim Not Applicable Not Applicable 35 Position in subordination hierarchy in liquidation (specify instrument type immediately senior to instrument) None Paid-up Share Capital 36 Non-compliant transitioned features No Yes 37 If yes, specify non-compliant features Not Applicable Presence of call option with step-up margin of 550 bps Page 8
(SR 000's) TABLE 3: CAPITAL ADEQUACY Amount of Exposures Subject To Standardized Approach of Credit Risk and related Capital Requirements (TABLE 3, (b)) Portfolios Amount of exposure* RWA Capital requirements Sovereigns and central banks: SAMA and Saudi Government 8,066,932 - - Others 7,948 - - Multilateral Development Banks - - - Public Sector Entities 2,742,938 548,588 43,887 Banks and securities firms 6,432,933 2,485,521 198,842 Corporates 24,723,423 24,722,909 1,977,833 Retail non-mortgages 14,132,546 11,189,192 895,135 Small Business Facilities Enterprises 8,983 6,737 539 Mortgages Residential 4,637,275 4,637,207 370,977 Commercial - - - Securitized assets - - - Equity 139,955 332,456 26,596 Others 3,235,835 1,908,715 152,697 Total 64,128,768 45,831,325 3,666,506 *The above table includes the on-balance sheets exposure after deducting the provisions, without adjusting the collaterals. Page Basel 9 III- P 3 Quantitative Disclosures - December 31, 2015_SAMA
TABLE 3: CAPITAL ADEQUACY Capital Requirements For Market Risk (822, Table 3, (d)) Interest rate risk Equity position risk Foreign exchange risk Commodity risk (SR 000's) Total Standardized approach - 57,769 39,451-97,220 Internal models approach n/a n/a n/a n/a - The market risk capital requirements is determined under the Standardized Approach for Market Risk as per the related SAMA guidelines. Page Basel 10III- P 3 Quantitative Disclosures - December 31, 2015_SAMA
TABLE 3: CAPITAL ADEQUACY Capital Requirements for Operational Risk (Table 3, (e)) Particulars (SR 000's) Capital requirement* Basic indicator approach*; 316,167 Standardized approach; - Alternate standardized approach; - Advanced measurement approach (AMA). - Total 316,167 * Bank Aljazira is currently using the Basic Indicator Approach to determine its capital requirements for operational risk. Page Basel 11III- P 3 Quantitative Disclosures - December 31, 2015_SAMA
TABLE 3: CAPITAL ADEQUACY Capital Adequacy Ratios (TABLE 3, (f)) Particulars Tier 1 capital ratio Total capital ratio Top consolidated level 13.79% 15.83% Page Basel 12III- P 3 Quantitative Disclosures - December 31, 2015_SAMA
(SR 000's) TABLE 4 (STA): CREDIT RISK: GENERAL DISCLOSURES Credit Risk Exposure (Table 4, (b)) Sovereigns and central banks: Portfolios Total credit risk exposure * Average gross credit risk exposure over the period Ω SAMA and Saudi Government 8,076,952 11,316,356 Others 7,948 73,158 Multilateral Development Banks (MDBs) 420 13,170 Public Sector Entities 2,742,938 2,855,438 Banks & Securities Firm Exposure 6,986,257 6,662,394 Corporates 27,980,854 27,455,468 Retail Non-Mortgages 14,262,023 13,934,327 Small Business Facilities Enterprises (SBFE's) 19,662 21,816 Mortgages: Residential Mortgages 4,637,325 4,114,330 Commercial - - Securitized assets - - Equities 139,955 104,678 Others 3,258,266 3,556,114 Gross Credit Exposure 68,112,600 70,107,248 *Total gross credit risk exposures equals on-balance sheet, off-balance sheet after application of credit conversion factor and derivatives at their credit equivalent values. Ω Average gross credit risk exposure over the period represents quarterly average of credit exposures of current and previous three quarters. Page Basel 13III- P 3 Quantitative Disclosures - December 31, 2015_SAMA
TABLE 4 (STA): CREDIT RISK: GENERAL DISCLOSURES (SR 000's) Sovereigns and central banks: Saudi Arabia Other GCC & Middle East Europe North America South East Asia Other countries Total SAMA and Saudi Governm 8,076,952 - - - - - 8,076,952 Others - 7,948 - - - - 7,948 Multilateral Development B 420 - - - - - 420 Public Sector Entities 2,742,938 - - - - - 2,742,938 Banks & Securities Firm E 4,723,983 1,680,666 396,526 145,500 803 38,779 6,986,257 Corporate 27,911,062 200 - - - 69,592 27,980,854 Retail Non-Mortgages 14,262,023 - - - - - 14,262,023 Small Business Facilities E 19,662 - - - - - 19,662 Mortgages Portfolios Geographic Breakdown (Table 4, (c)) Geographic area Residential 4,634,259-3,066 - - - 4,637,325 Commercial - - - - - - - Securitized assets - - - - - - - Equities 131,584 188-8,183 - - 139,955 Others 3,255,152 3,114 - - - - 3,258,266 TOTAL 65,758,035 1,692,116 399,592 153,683 803 108,371 68,112,600 It can be observed from the above table that 97% of the BAJ Portfolio is concentrated in Saudi Arabia. This is the result of the BAJ overall business strategy.
TABLE 4 (STA): CREDIT RISK: GENERAL DISCLOSURES Industry Sector Breakdown (Table 4, (d)) Industry sector (SR 000's) Portfolios Government and quasi government Banks and other financial Institutions Agriculture and fishing Manufacturin g Mining and quarrying Electricity, water, gas and health services Building and construction Commerce Transportati on and communicati on Services Consumer loans and credit cards Sovereigns and central banks: SAMA and Saudi Government 5,302,000 25,019 - - - - - - - - - 2,749,933 8,076,952 Others - 4,151-3,797 - - - - - - - - 7,948 Multilateral Development Banks - 420 - - - - - - - - - - 420 Public Sector Entities 2,742,938 - - - - - - - - - - - 2,742,938 Banks & Securities Firm Exposure - 6,985,457 - - - - - - - - - 800 6,986,257 Corporates 417,999 1,698,802 664 7,065,412 546,750 2,466 2,612,384 9,201,791 191,389 1,222,747 619 5,019,831 27,980,854 Retail Non-Mortgages - 40-55 - 2 15,985 671,874 839 14,418 2,517,943 11,040,867 14,262,023 Small Business Facilities Enterprises (SBFE's) - - - - - - 14,358 5,242 - - - 62 19,662 Morgages Residential - - - - - - - 464 - - 22,717 4,614,144 4,637,325 Commercial - - - - - - - - - - - - - Securitized assets - - - - - - - - - - - - - Equities - - - - - - - - - - - 139,955 139,955 Others - - 12,021 - - 11,935 57,124-62,270 288,519 2,826,397 3,258,266 TOTAL 8,462,937 8,713,889 664 7,081,285 546,750 2,468 2,654,662 9,936,495 192,228 1,299,435 2,829,798 26,391,989 68,112,600 Others Total
Portfolios TABLE 4 (STA): CREDIT RISK: GENERAL DISCLOSURES Residual Contractual Maturity Breakdown (Table 4, (e)) Maturity breakdown (SR 000's) Less than 8 days 8-30 days 30-90 days 90-180 days 180-360 days 1-3 years 3-5 years Over 5 years Total Sovereigns and central banks: SAMA and Saudi Government 2,774,952 - - - - - - 5,302,000 8,076,952 Others 4,151 - - - - 3,797 - - 7,948 Multilateral Development Banks 420 - - - - - - - 420 Public Sector Entities - - - - - - 530,000 2,212,938 2,742,938 Banks & Securities Firm Exposure 3,015,569 556,250-800,000 343,750 425,000 265,688 1,580,000 6,986,257 Corporate 4,654,721 1,344,949 868 5,796,379 7,093,484 4,271,712 1,448,938 3,369,803 27,980,854 Retail Non-Mortgages 825,114 69,273 37 531,229 628,317 1,171,656 1,539,260 9,497,137 14,262,023 Small Business Facilities Enterprises (SBFE's) 15,662 1,000-2,000 1,000 - - - 19,662 Mortgages Residential 3,108 137-2,466 164 3,879 67,279 4,560,292 4,637,325 Commercial - - - - - - - - - Securitized assets - - - - - - - - - Equities 139,955 - - - - - - - 139,955 Other Assets 3,167,003 - - 89 29 726 16,376 74,043 3,258,266 TOTAL 14,600,655 1,971,609 905 7,132,163 8,066,744 5,876,770 3,867,541 26,596,213 68,112,600
TABLE 4 (STA): CREDIT RISK: GENERAL DISCLOSURES Impaired Loans, Past Due Loans and Allowances (Table 4, (f)) (SR 000's) Aging of Past Due Loans (days) Specific allowances Industry sector Impaired loans Defaulted * Less than 90 ** 90-180 180-360 Over 360 Gross charges during the Charge-offs during the period Balance at the end of the period General allowances period Government and quasi government - - - - - - - - - 12,735 Banks and other financial institutions - - - - - - - - - 8,613 Agriculture and fishing - - - - - - - - - - Manufacturing 1,831-1,831 - - 458-458 68,003 Mining and quarrying - - - - - - - - - - Electricity, water, gas and health services - - - - - - - - - 0 Building and construction - 8,940-3,020 5,932-3,605-3,605 16,198 Commerce 111,277-46,654 32,828 107,665 12,080 1,000 57,653 99,797 Transportation and communication - - - - - - - - - 1,868 Services 60,575 - - - - - - 12,103 Consumer loans and credit cards 157,359 63,256 50,675 39,680 67,040 119,050 43,675 97,438 172,116 Others 15,346-723 4,480 59,537 TOTAL - 355,327 63,256 102,180 78,440 174,705 135,916 44,675 163,634 450,969 * Defaulted loans represent all loans which are 90 days or more past due and includes impaired loans. ** Loans overdue for 90 days or less are neither considered as impaired nor defaulted and therefore are part of performing portfolio.
(SR 000's) TABLE 4 (STA): CREDIT RISK GENERAL DISCLOSURES Geographic area Impaired Loans, Past Due Loans And Allowances (Table 4, (g)) Aging of Past Due Loans (days) Impaired loans Less than 90 90-180 180-360 Over 360 Specific allowances General allowances Saudi Arabia - 63,256 102,180 78,440 174,705 163,634 450,969 Other GCC & Middle East - - - - - - - Europe - - - - - - - North America - - - - - - - South East Asia - - - - - - - Other countries - - - - - - - TOTAL - 63,256 102,180 78,440 174,705 163,634 450,969
(SR 000's) RECONCILIATION OF CHANGES IN THE ALLOWANCES FOR LOANS IMPAIRMENT TABLE (4 (h)) Specific General allowances allowances Balance, beginning of the period 223,116 415,381 Charge-offs taken against the allowances during the period 111,269 153,385 Amounts set aside (or reversed) during the period (44,674) (117,797) Other adjustments: - - - exchange rate differences - - - business combinations - - - acquisitions and disposals of subsidiaries, etc - - written off (126,076) Transfers between allowances - - Balance, end of the period 163,635 450,969 *recoveries that have been recorded directly to the income statement are SAR 49.12 Million. These recoveries belongs to recoveries made from written off Customers
TABLE 5 (STA): CREDIT RISK: DISCLOSURES FOR PORTFOLIOS SUBJECT TO THE STANDARDIZED APPROACH (SR 000's) Allocation Of Exposures To Risk Buckets (Table 5, (b)) Particulars Risk buckets 0% 20% 35% 50% 75% 100% 150% Other risk Deducted Unrated weights Sovereigns and central banks: - - - - - - - - SAMA and Saudi Government 8,076,952 - - - - - - - 5,316,999 - Others 7,948 - - - - - - - - - Multilateral Development Banks (MDBs) - - - 420 - - - - 420 - Public Sector Entities (PSEs) - 2,742,938 - - - - - - - - Banks and securities firms - 2,244,434-4,585,944-153,933 1,945-102,616 - Corporates - - - - - 27,980,854 - - 27,721,446 - Retail non-mortgages - - - - 11,776,114 2,485,909 - - 14,254,251 - Small Business Facilities Enterprises (SBFE's) - - - - 19,662 - - - 19,662 - Mortgages - Residential - - - - - 4,637,325 - - 4,636,964 - Commercial - - - - - - - - - - Securitized assets - - - - - - - - - - Equity - - - - - 139,955 - - - - Others 787,299 - - - - 2,470,967 - - - - TOTAL 8,872,199 4,987,372-4,586,364 11,795,776 37,868,943 1,945-52,052,359 - * Amounts reported above are net of Credit Risk Mitigation where applicable.
(SR 000's) TABLE 7 (STA): CREDIT RISK MITIGATION (CRM): DISCLOSURES FOR STANDARDIZED APPROACH Sovereigns and central banks: Eligible financial collateral Guarantees / credit derivatives SAMA and Saudi Government - - Others - - Multilateral Development Banks - - Public Sector Entities - - Banks & Securities Firm Exposure - - Corporate 179,239 - Retail Non-Mortgages 84,414 - Small Business Facilities Enterprises 182 - Mortgages Credit Risk Exposure Covered By CRM (Table 7, (b) and (c)) Portfolios Covered by Residential 118 - Commercial - - Securitized assets - - Equities - - Other 3,255 - TOTAL 267,208 -
TABLE 8: GENERAL DISCLOSURES FOR EXPOSURES RELATED TO COUNTERPARTY CREDIT RISK (CCR) General Disclosures (Table 8, (b) and (d)) Particulars Amount Gross positive fair value of contracts 198,109 Netting Benefits* - Netted Current Credit Exposure* - Collateral held: -Cash - -Government securities - -Others - Exposure amount (under the applicable method) -Internal Models Method (IMM) n/a -Current Exposure Method (CEM) 607,370 Notional value of credit derivative hedges - Current credit exposure (by type of credit exposure): -Interest rate contracts 207,637 -FX contracts 191,713 -Equity contracts - -Credit derivatives - -Commodity/other contracts 208,020
TABLE 8: GENERAL DISCLOSURES FOR EXPOSURES RELATED TO COUNTERPARTY CREDIT RISK (CCR) Credit Derivative Transactions (Table 8, (c)) Credit derivative transactions Proprietary activities Intermediation activities Protection bought Protection sold Protection bought Protection sold Total return swaps - - - - Credit default swaps - - - - Credit options - - - - Credit linked notes - - - - Collateralized debt obligations - - - - Collateralized bond obligations - - - - Collateralized loan obligations - - - - Others - - - - Total - - - -
TABLE 9 (g)(sta): SECURITIZATION: DISCLOSURES FOR STA APPROACH Outstanding exposures securitized by the bank as an originator or purchaser Exposure type Outstanding exposures Traditional Synthetic Credit cards - - Home equity loans - - Commercial loans - - Automobile loans - - Small business loans - - Equipment leases - - Others - - TABLE 9 (g)(sta): SECURITIZATION: DISCLOSURES FOR STA APPROACH Outstanding exposures securitized by the bank as a sponsor Exposure type Outstanding exposures Traditional Synthetic Credit cards - - Home equity loans - - Commercial loans - - Automobile loans - - Small business loans - - Equipment leases - - Others - -
TABLE 9 (h)(sta): SECURITIZATION: DISCLOSURES FOR STA APPROACH Outstanding exposures securitized by the bank as an originator or purchaser Exposure type Impaired / Past due assets Losses recognized by the securitized bank during the current Credit cards - - Home equity loans - - Commercial loans - - Automobile loans - - Small business loans - - Equipment leases - - Others - - TABLE 9 (h)(sta): SECURITIZATION: DISCLOSURES FOR STA APPROACH Outstanding exposures securitized by the bank as a sponsor Exposure type Impaired / Past due assets securitized Losses recognized by the bank during the current Credit cards - period - Home equity loans - - Commercial loans - - Automobile loans - - Small business loans - - Equipment leases - - Others - -
TABLE 9 (i)(sta): SECURITIZATION: DISCLOSURES FOR STA APPROACH Outstanding exposures securitized by the bank Exposure type Securitization exposures retained or purchased Credit cards - Home equity loans - Commercial loans - Automobile loans - Small business loans - Equipment leases - Others -
TABLE 9 (j)(sta): SECURITIZATION: DISCLOSURES FOR STA APPROACH Summary of current year's securitization activity of the bank as an originator or purchaser Exposure types Amount of exposures securitized Recognized gain or loss on sale Credit cards - - Home equity loans - - Commercial loans - - Automobile loans - - Small business loans - - Equipment leases - - Others - - TABLE 9 (j)(sta): SECURITIZATION: DISCLOSURES FOR STA APPROACH Summary of current year's securitization activity of the bank as a sponsor Exposure types Amount of exposures securitized Recognized gain or loss on sale Credit cards - - Home equity loans - - Commercial loans - - Automobile loans - - Small business loans - - Equipment leases - - Others - -
TABLE 9 (k)(sta): SECURITIZATION: DISCLOSURES FOR STA APPROACH Securitized Exposures Exposure type On balance sheet aggregate exposure retained or purchased Off balance sheet aggregate exposure Credit cards - - Home equity loans - - Commercial loans - - Automobile loans - - Small business loans - - Equipment leases - - Others - -
TABLE 9 (l)(sta): SECURITIZATION: DISCLOSURES FOR STA APPROACH Exposures By Risk Weight Bands Securitization Re-Securitization Risk weight bands Exposures retained or purchased Associated capital charges Exposures retained or purchased Associated capital charges 0% to 20% - - - - Above 20% to 40% - - - - Above 40% to 60% - - - - Above 60% to 80% - - - - Above 80% to 100% - - - - Above 100% - - - - Type of underlying assets TABLE 9 (l)(sta): SECURITIZATION: DISCLOSURES FOR STA APPROACH Deductions from capital Exposures deducted from Tier 1 capital Credit enhancing I/Os deducted from total capital Other exposures deducted from total capital Credit cards - - - Home equity loans - - - Commercial loans - - - Automobile loans - - - Small business loans - - - Equipment leases - - - Others - - -
TABLE 9 (m)(sta): SECURITIZATION: DISCLOSURES FOR STA APPROACH Type of underlying assets Aggregate drawn exposures attributed to the seller's and investor's interests Securitizations Subject To Early Amortization Treatment Aggregate capital charges incurred by the bank against its retained shares of the drawn the investor's shares of drawn balances and undrawn lines balances and undrawn lines Credit cards - - - Home equity loans - - - Commercial loans - - - Automobile loans - - - Small business loans - - - Equipment leases - - - Others - - -
TABLE 9 (n)(sta): SECURITIZATION: DISCLOSURES FOR STA APPROACH Re-Securitization Exposures Retained or Purchased Securitization Exposure Credit Risk Mitigation Applied Not Applied Loans - - Commitments - - Asset-backed securities - - Mortgage-backed securities - - Corporate bonds - - Equity securities - - Private equity investments - - Others - - TABLE 9 (n)(sta): SECURITIZATION: DISCLOSURES FOR STA APPROACH Re-Securitisation Exposures Retained or Purchased Guarantor Credit Worthiness (Grade 1 being the highest) Aggregate Exposure Grade 1 - Grade 2 - Grade 3 - Grade 4 - Grade 5 - Grade 6 - Grade 7 -
TABLE 9 (o)(sta): SECURITIZATION: DISCLOSURES FOR STA APPROACH Outstanding exposures securitized by the bank as an originator or purchaser Exposure type Outstanding exposures Traditional Synthetic Credit cards - - Home equity loans - - Commercial loans - - Automobile loans - - Small business loans - - Equipment leases - - Others - - TABLE 9 (o)(sta): SECURITIZATION: DISCLOSURES FOR STA APPROACH Outstanding exposures securitized by the bank as a sponsor Exposure type Outstanding exposures Traditional Synthetic Credit cards - - Home equity loans - - Commercial loans - - Automobile loans - - Small business loans - - Equipment leases - - Others - -
TABLE 9 (p)(sta): SECURITIZATION: DISCLOSURES FOR STA APPROACH Outstanding exposures securitized by the bank Exposure type Securitization exposures retained or purchased Credit cards - Home equity loans - Commercial loans - Automobile loans - Small business loans - Equipment leases - Others -
TABLE 9 (q)(sta): SECURITIZATION: DISCLOSURES FOR STA APPROACH Summary of current year's securitization activity of the bank as an originator or purchaser Exposure types Amount of exposures securitized Recognized gain or loss on sale Credit cards - - Home equity loans - - Commercial loans - - Automobile loans - - Small business loans - - Equipment leases - - Others - - TABLE 9 (q)(sta): SECURITIZATION: DISCLOSURES FOR STA APPROACH Summary of current year's securitization activity of the bank as a sponsor Exposure types Amount of exposures securitized Recognized gain or loss on sale Credit cards - - Home equity loans - - Commercial loans - - Automobile loans - - Small business loans - - Equipment leases - - Others - -
TABLE 9 (r)(sta): SECURITIZATION: DISCLOSURES FOR STA APPROACH Securitization exposure retained subject to market risk approach where bank is an originator or Exposure type Outstanding exposures Traditional Synthetic Credit cards - - Home equity loans - - Commercial loans - - Automobile loans - - Small business loans - - Equipment leases - - Others - - TABLE 9 (r)(sta): SECURITIZATION: DISCLOSURES FOR STA APPROACH Securitization exposure retained subject to market risk approach where bank is a sponsor Exposure type Outstanding exposures Traditional Synthetic Credit cards - - Home equity loans - - Commercial loans - - Automobile loans - - Small business loans - - Equipment leases - - Others - -
TABLE 9 (s)(sta): SECURITIZATION: DISCLOSURES FOR STA APPROACH Securitized Exposures Exposure type On balance sheet Off Balance Sheet aggregate exposure Aggregate Exposure Credit cards - - Home equity loans - - Commercial loans - - Automobile loans - - Small business loans - - Equipment leases - - Others - -
TABLE 9 (t)(sta): SECURITIZATION: DISCLOSURES FOR STA APPROACH Securitization exposures retained or purchased Securitization Exposure Subject to Comprehensive Risk Measure for specific risk Loans - Commitments - Asset-backed securities - Mortgage-backed securities - Corporate bonds - Equity securities - Private equity investments - Others - TABLE 9 (t)(sta): SECURITIZATION: DISCLOSURES FOR STA APPROACH Exposures By Risk Weight Bands Securitization Risk weight bands exposures retained or purchased subject to specific risk 0% to 20% - Above 20% to 40% - Above 40% to 60% - Above 60% to 80% - Above 80% to 100% - Above 100% -
TABLE 9 (u)(sta): SECURITIZATION: DISCLOSURES FOR STA APPROACH Capital Requirements subject to Comprehensive Risk Measures Risk Types Securitization Exposure Correlation Default Risk Migration Risk Risk Loans - - - Commitments - - - Asset-backed securities - - - Mortgage-backed securities - - - Corporate bonds - - - Equity securities - - - Private equity investments - - - Others - - - TABLE 9 (u)(sta): SECURITIZATION: DISCLOSURES FOR STA APPROACH Capital Requirement Risk Weight Bands Risk weight bands Capital Charges Securitisation Re-Securitisation 0% to 20% - - Above 20% to 40% - - Above 40% to 60% - - Above 60% to 80% - - Above 80% to 100% - - Above 100% - - TABLE 9 (u)(sta): SECURITIZATION: DISCLOSURES FOR STA APPROACH Deductions from capital Type of underlying assets Exposures deducted from Tier 1 capital Credit enhancing I/Os deducted from total capital Other exposures deducted from total capital Credit cards - - - Home equity loans - - - Commercial loans - - - Automobile loans - - - Small business loans - - - Equipment leases - - - Others - - -
TABLE 9 (v)(sta): SECURITIZATION: DISCLOSURES FOR STA APPROACH Type of underlying assets Aggregate drawn exposures attributed to the seller's and investor's interests Securitizations Subject To Early Amortization Treatment Aggregate capital charges incurred by the bank against its retained shares of the drawn the investor's shares of drawn balances and undrawn lines balances and undrawn lines Credit cards - - - Home equity loans - - - Commercial loans - - - Automobile loans - - - Small business loans - - - Equipment leases - - - Others - - -
TABLE 9 (w)(sta): SECURITIZATION: DISCLOSURES FOR STA APPROACH Re-Securitization Exposures Retained or Purchased Securitization Exposure Credit Risk Mitigation Applied Not Applied Loans - - Commitments - - Asset-backed securities - - Mortgage-backed securities - - Corporate bonds - - Equity securities - - Private equity investments - - Others - - TABLE 9 (w)(sta): SECURITIZATION: DISCLOSURES FOR STA APPROACH Re-Securitization Exposures Retained or Purchased Guarantor Credit Worthiness (Grade 1 being the highest) Aggregate Exposure Grade 1 - Grade 2 - Grade 3 - Grade 4 - Grade 5 - Grade 6 - Grade 7 -
(SR 000's) TABLE 10: MARKET RISK: DISCLOSURES FOR BANKS USING THE STANDARDIZED APPROACH Risk types Level Of Market Risks In Terms Of Capital Requirements (Table 10, (b)) Interest rate risk Equity position risk Foreign exchange risk Commodity risk Total Capital requirements - 57,769 39,451-97,220
TABLE 13: EQUITIES: DISCLOSURES FOR BANKING BOOK POSITIONS Value Of Investments (Table 13, (b)) Un-quoted investments Value disclosed Fair value in Financial Statements Value disclosed in Financial Statements (SR 000's) Quoted investments Fair value Publicly quoted share values (if materially different from fair value) Equity investments - FVTOCI 3,438 3,438 8,182 8,182 -
Investments TABLE 13: EQUITIES: DISCLOSURES FOR BANKING BOOK POSITIONS Types And Nature of Investments (Table 13, (c)) Publicly traded (SR 000's) Privately held Government and quasi government - - Banks and other financial institutions 128,334 188 Agriculture and fishing - - Manufacturing - - Mining and quarrying - - Electricity, water, gas and health services - - Building and construction - - Commerce - - Transportation and communication - - Services - - Others 8,183 3,250 Total 136,517 3,438
TABLE 13: EQUITIES: DISCLOSURES FOR BANKING BOOK POSITIONS (SR 000's) Gains/Losses (Table 13, (d) and (e)) Particulars Amount Cumulative realized gains (losses) arising from sales and liquidations in the reporting period 4,726 Total unrealized gains (losses) (2,610) Total latent revaluation gains (losses)* Unrealized gains (losses) included in Capital 1,189 Latent revaluation gains (losses) included in Capital* *Not applicable to KSA as of to-date n/a n/a
TABLE 13: EQUITIES: DISCLOSURES FOR BANKING BOOK POSITIONS (SR 000's) Capital Requirements (Table 13, (f)) Equity grouping Capital requirements Government and quasi government - Banks and other financial institutions 25,682 Agriculture and fishing - Manufacturing - Mining and quarrying - Electricity, water, gas and health services - Building and construction - Commerce - Transportation and communication - Services - Others 914 Total 26,596
(SR 000's) TABLE 13: EQUITIES: DISCLOSURES FOR BANKING BOOK POSITIONS Equity Investments Subject To Supervisory Transition Or Grandfathering Provisions (Table 13, (f)) Equity grouping Capital requirements Government and quasi government - Banks and other financial institutions - Agriculture and fishing - Manufacturing - Mining and quarrying - Electricity, water, gas and health services - Building and construction - Commerce - Transportation and communication - Services - Others - Total -
TABLE 14: INTEREST RATE RISK IN THE BANKING BOOK (IRRBB) 200bp Interest Rate Shocks for currencies with more than 5% of Assets or Liabilities 14, (b)) (Table Rate Shocks Change in earnings Upward rate shocks: Saudi Riyal 80,715 Dollar 26,083 Downward rate shocks: Saudi Riyal (80,715) Dollar (26,083)