Basel III Disclosure – Capital Structure Q3 2022

Balance sheet in

Adjustment of banking

Under regulatory

Published financial

associates / other

scope of

statements

entities (*)

consolidation

( C )

( D )

( E )

Assets

Cash and balances at central banks

12,427,738

12,427,738

Due from banks and other financial institutions

4,507,303

4,507,303

Investments, net

43,341,480

43,341,480

Positive fair value derivative

6,743,596

6,743,596

Loans and advances, net

158,481,354

158,481,354

Investment in associates

9,695

9,695

Property and equipment, net

1,720,117

1,720,117

Other assets

4,427,416

4,427,416

Total assets

231,658,699

0

231,658,699

Paid up share capital

12,053,572

12,053,572

Statutory reserves

12,053,572

12,053,572

General reserve

982,857

982,857

Other reserves

(2,194,487)

(2,194,487)

Retained earnings

10,001,114

10,001,114

Minority Interest

0

0

Treasury shares

(91,918)

(91,918)

Proposed dividend

0

0

Tier 1 Sukuk

5,000,000

5,000,000

Total liabilities and equity

231,658,699

0

231,658,699

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Balance sheet in

Adjustment of

Under regulatory

Published financial

banking associates /

scope of

statements

other entities

consolidation

Reference

( C )

( D )

( E )

Assets

Cash and balances at central banks

12,427,738

12,427,738

Due from banks and other financial institutions

4,507,303

4,507,303

of which eligible provisions

1,355

1,355

A

Investments, net

43,341,480

43,341,480

of which eligible provisions

23,926

23,926

A

Positive fair value derivative

6,743,596

6,743,596

Loans and advances, net

158,481,354

158,481,354

of which eligible provisions

2,229,090

2,229,090

A

Investment in associates

9,695

9,695

Property and equipment, net

1,720,117

1,720,117

Other assets

4,427,416

4,427,416

of which eligible provisions

289

289

A

Total assets

231,658,699

0

231,658,699

Liabilities

Due to Banks and other financial institutions

20,094,160

20,094,160

Customer deposits

157,820,917

157,820,917

Negative fair value derivative

7,463,672

7,463,672

Debt securities in issue

0

0

of which Tier 2 capital instruments

0

0

B

Other liabilities

8,475,240

8,475,240

of which eligible provisions

23,915

23,915

A

Total liabilities

193,853,989

0

193,853,989

Equity

Paid up share capital

12,053,572

12,053,572

of which amount eligible for CET1

12,053,572

12,053,572

C

of which amount eligible for AT1

0

0

Statutory reserves

12,053,572

12,053,572

D

General reserve

982,857

982,857

E

Other reserves

(2,194,487)

(2,194,487)

F

Retained earnings

10,001,114

10,001,114

G

SAMA supervisory provision adjustment

575,250

575,250

H

Minority Interest

0

0

Treasury shares

(91,918)

(91,918)

Proposed dividends

0

0

I

Tier 1 Sukuk

5,000,000

5,000,000

J

Total liabilities and equity

231,658,699

0

231,658,699

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Source based on

reference

Amounts1

numbers / letters

Components1 of

of the balance

subject to

sheet under the

regulatory

Pre - Basel

regulatory scope

capital reported

III

of consolidation

by the bank

treatment

from step 2

Common Equity Tier 1 capital: Instruments and reserves

1

Directly issued qualifying common share capital (and equivalent for non-joint stock companies) plus

12,053,572

related stock surplus

C

2

Retained earnings (including Statutory and General reserves)

23,612,793

D+E+G+I+H

3

Accumulated other comprehensive income (and other reserves)

(2,194,487)

F

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

33,471,878

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

1,195,787

-

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)

(91,918)

-

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, 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

1,103,869

29

Common Equity Tier 1 capital (CET1)

34,575,747

Additional Tier 1 capital: instruments

30

Directly issued qualifying Additional Tier 1 instruments plus related stock surplus

5,000,000

J

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

5,000,000

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)

5,000,000

45

Tier 1 capital (T1 = CET1 + AT1)

39,575,747

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Amounts1

Source based on reference

Components1 of regulatory

numbers / letters of the

subject to

balance sheet under the

capital reported by the

Pre - Basel

regulatory scope of

bank

III treatment consolidation from step 2

Tier 2 capital: instruments and provisions

46

Directly issued qualifying Tier 2 instruments plus related stock surplus

0

B

47

Directly issued capital instruments subject to phase out from Tier 2

0

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

2,278,575

A

51

Tier 2 capital before regulatory adjustments

2,278,575

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)

-

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

0

58

Tier 2 capital (T2)

2,278,575

59

Total capital (TC = T1 + T2)

41,854,322

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

211,807,224

Capital ratios

61

Common Equity Tier 1 (as a percentage of risk weighted assets)

16.32%

62

Tier 1 (as a percentage of risk weighted assets)

18.68%

63

Total capital (as a percentage of risk weighted assets)

19.76%

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)

7.558%

65

of which: capital conservation buffer requirement

2.500%

66

of which: bank specific countercyclical buffer requirement

0.058%

67

of which: G-SIB/D-SIB buffer requirement

0.500%

68

Common Equity Tier 1 available to meet buffers (as a percentage of risk weighted assets)

14.185%

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

-

73

Significant investments in the common stock of financials

-

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)

2,278,575

A

77

Cap on inclusion of provisions in Tier 2 under standardised approach

2,449,210

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

-

85

Amount excluded from T2 due to cap (excess over cap after redemptions and maturities)

-

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Components1 of regulatory

capital reported by the bank

1

Issuer

Banque Saudi Fransi

2

Unique identifier

N/A

3

Governing law(s) of the instrument

Saudi Arabian law

Regulatory treatment

4

Transitional Basel III rules

Additional Tier I

5

Post-transitional Basel III rules

Eligible

6

Eligible at solo/group/group & solo

Group & Solo

7

Instrument type

Subordinated sukuk

8

Amount recognied in regulatory capital (in SAR 000' s)

SAR 5,000,000

9

Par value of instrument (in SAR 000' s)

SAR 5,000,000

10

Accounting classification

Equity

11

Original date of issuance

04 November 2020

12

Perpetual or dated

Perpetual

13

Original maturity date

N/A

14

Issuer call subject to prior supervisory approval

Yes

In compliance with Basel III, call

date is equal to or greater than 5

years and the Sukuk may be

redeemed early due to a capital

event, tax event or at the option

of the Bank as described in the

terms and conditions of the

15

Option call date, contingent call dates and redemption amount

Sukuk

16

Subsequent call dates if applicable

As above

Coupons / dividends

17

Fixed or Floating dividend/coupon

Fixed

18

Coupon rate and any related index

4.5% p.a.

19

Existence of a dividend stopper

Yes

20

Fully discretionary, partially discretionary or mandatory

Fully discretionary

21

Existence of step up or other incentive to redeem

No

22

Non cumulative or cumulative

Non Cumulative

23

Convertible or non-convertible

Non Convertible

24

If convertible, conversion trigger (s)

N/A

25

If convertible, fully or partially

N/A

26

If convertible, conversion rate

N/A

27

If convertible, mandatory or optional conversion

N/A

28

If convertible, specify instrument type convertible into

N/A

29

If convertible, specify issuer of instrument it converts into

N/A

30

Write-down feature

Yes

Terms of contract of the

instrument provide the

legal basis for SAMA to trigger

write-down (a

31

If write-down,write-down trigger (s)

contractual approach)

32

If write-down, full or partial

Write-down fully or partial

33

If write-down, permanent or temporary

Permanent

34

If temporary writedown, description of the write-up mechansim

N/A

Position in subordination hierarchy in liquidation (specify instrument type

35

immediately senior to instrument)

Subordinated

36

Non-compliant transitioned features

N/A

37

If yes, specify non-compliant features

N/A

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