​Saudi banks reveal IFRS9 impact on balance sheets​

Six Saudi-listed banks have filed a preliminary assessment of the potential impact of the introduction of IFRS9 Standard on their balance sheets.

The application of the new standard will have an impact on shareholders' equity. Argaam has compiled a list of disclosures from listed banks below:

The National Commercial Bank (NCB)

The National Commercial Bank (NCB), the Kingdom’s largest lender by assets, expected a net decrease of shareholders’ equity by 1 to 1.4 percent from the date of enactment of the standard.

The reduction will range between SAR 560 million and 785 million, from a total equity of SAR 56 billion as at the end of 2017.

Al Rajhi Bank

Al Rajhi Bank assessed a 5.2 percent (SAR 2.9 billion) drop in shareholders’ equity. While the bank's shareholders’ equity stood at SAR 55.8 billion by end of 2017.

Alinma Bank

Alinma Bank anticipated a 3 percent decrease in shareholders’ equity -- accounting for roughly SAR 618 million, of a total equity of SAR 20.6 million as at the end of 2017.

Bank Albilad

Bank Albilad estimated 1 to 2.3 percent decrease in shareholders’ equity (SAR 76 million and SAR 175 million); given a total equity of SAR 7.6 billion.

Riyad Bank

Riyad Bank expected shareholders’ equity to drop by 3.6 to 4.1 percent (SAR 1.38 to SAR 1.58 billion); given a total equity of SAR 38.6 billion at the end of 2017.

Bank AlJazira

Bank AlJazira’s equity is likely to contract by SAR 450 million-- a 5.1 percent decrease.  

** The assessments above imply a point in time estimate rather than forecasts. Actual effect of the implementation of the standard could vary significantly from this estimate, the disclosing banks said.