X hits on this document

PDF document

BANQUE SAUDI FRANSI CONSOLIDATED BALANCE SHEET As at December 31, 2008 and 2007 - page 50 / 51

140 views

0 shares

0 downloads

0 comments

50 / 51

BANQUE SAUDI FRANSI

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2008 and 2007 _______________________________________________________________________________________________

36

Capital adequacy

The Bank’s objectives when managing capital are, to comply with the capital requirements set by SAMA; to safeguard the Bank’s ability to continue as a going concern; and to maintain a strong capital base. Capital adequacy and the use of regulatory capital are monitored daily by the Bank’s management.

The Bank monitors the adequacy of its capital using ratios established by SAMA. These ratios measure capital adequacy by comparing the Bank’s eligible capital with its balance sheet assets, commitments and notional amount of derivatives at a weighted amount to reflect their relative risk. SAMA requires holding the minimum level of the regulatory capital of and maintaining a ratio of total regulatory capital to the risk-weighted asset (RWA) at or above the agreed minimum of 8%.

2008

SAR’ 000

Credit Risk RWA Operational Risk RWA Market Risk RWA

113,238,990 7,250,000 3,164,425

Total RWA

123,653,415

Tier I Capital Tier II Capital

13,565,104 722,564

Total Tier I & II Capital

Capital Adequacy Ratio % Tier I ratio Tier I + Tier II ratio

14,287,668

    • 10.97

      %

    • 11.55

      %

37 Investment management and brokerage services

The Bank offers investment services to its customers through its subsidiary, which include management of certain investment funds in consultation with professional investment advisors.

Incomes from the subsidiaries are included in the consolidated statement of income under fee from banking services.

The financial statements of these funds are not consolidated with the financial statements of the Bank. However, the Bank’s share of these funds is included in the available for sale investments and fees earned are disclosed under related party transactions.

The Bank through its subsidiary offers Islamic investment management services to its customers, which include management of certain investment funds in consultation with professional investment advisors, having net asset values totalling SAR 2,064 million (2007: SAR 2,257 million).

50

Document info
Document views140
Page views140
Page last viewedFri Dec 09 13:51:47 UTC 2016
Pages51
Paragraphs3745
Words20632

Comments