Bank Annual Disclosure Measuring Instrument

Part A:Bank Demographical Data

Name of Company------

Research Code------

Bank Attributes

Company size / Market capitalization
Total assets
The external auditor / Numbers of external auditor
International auditor
National auditor
Ownership structure / Proportion of insider holding
Affiliation of MNC
Ownership classification / Private Public
Profitability / Return on Turnover (%)
Return on Capital Employed (%)
Liquidity / Liquid
Illiquid

PartB

Bank Disclosures Checklist
Required SAMA Disclosures
2004 / 2003 / 2002
Investment and Trading Securities / Y / N / NA / Y / N / NA / Y / N / NA
Trading Securities separately disclosed:
1. Disclosed domestic trading securities
2. Disclosed foreign trading securities
3. Disclosed that domestic and foreign securities are valued at market
4. Disclosed inclusion of gains and losses from trading securities in income
Investment Securities separately disclosed
5. Disclosed domestic investment securities
6. Disclosed foreign investment securities
7. Disclosed nature of domestic and foreign investment securities in the notes:
(major categories eg, equity, fixed rate;
(cost;
(current market value
8. Disclosed method of amortizing discount or premium on acquired investment securities
9. Disclosed inclusion of realized Gain/loss from trading securities in other income
Other
10.Disclosed transfers between all securities
Loans
11. Disclosed domestic loans
12. Disclosed International loans
13.Disclosed beneficiaries of domestic loans:
(businesses, government agencies, etc)
14. Disclosed beneficiaries of international loans (businesses, govt. agencies etc)
15. Disclosed Allowance for loan losses
16. Disclosed unearned fees collected or added to loan principal
17. Disclosed delinquent loans
18. Disclosed related party loans (DR/CR)
19. Disclosed the accounting policy on earned special commission and other fees
20. Disclosed the book value of assets acquired but not disposed by the bank in payment for loans or associated special commission.
2004 / 2003 / 2002
Y / N / NA / Y / N / NA / Y / N / NA
Deposits (by customers – liabilities)
Disclosed Deposits under:
21. Call deposits
22. Savings account deposits
23 Time Deposits
24. Disclosed the balance of special commission deposits
25. Disclosed the balance on non-special commission deposits
26. Disclosed deposit by public sector under call, time and savings
27. Disclosed foreign currency deposits under call, time and savings
28. Disclosed total special commission accrued
29. Disclosed deposits of other domestic and international banks as call, time and savings
30. Disclosed and described deposits with special conditions
Foreign Currency Translation
31. Disclosed gains or losses from foreign currency exchange differences in income
Disclosed foreign currency futures at balance sheet date as follows:
32. type of currency
33. spot rate at balance sheet date
34. forward price
35. maturity date
36. method of amortizing discount or
premium on currency futures
37. Disclosed changes in accumulated
translation adjustments
Fixed Assets and Other Real Estate
38. Disclosed fixed assets (FA) for bank use
39. Disclosed depreciation- FA used by bank
40.Disclosed gains/losses from FA disposal
41. Disclosed changes in FA, and
Changes in FA accumulated depreciation
42. Disclosed other real estate separately
Disclosed changes in other real estate
43. Disclosed losses from assignment of past due loans in lieu of acquiring other real estate during the period.
44.Disclosed gains/losses from the sale of
other real estate or revaluations
2004 / 2003 / 2002
Y / N / NA / Y / N / NA / Y / N / NA
Consolidated Financial Statements and Investment in Subsidiaries
45.Disclosed method for accounting for
subsidiaries, affiliates and joint ventures
Consolidated Statements:
46. Disclosed minority interest separately from liabilities and shareholders equity
47. Disclosed (separate line) minority interest in net income
48. Disclosed, for consolidated subsidiaries,
Name, country, percentage of ownership, nature of business
49. Disclosed subsidiaries not consolidated
50. Disclosed reasons for not consolidating
51. Disclosed the nature of the bank’s relationship with unconsolidated subsidiaries
52. Disclosed method for accounting for
subsidiaries, affiliates and joint ventures
Accounting Changes & Error Correction
Provided for changes in accounting policy:
53.Description of change
54. Justification for change
55. Effect of change on the current period’s
financial statements
56. Disclosed effects of policy change on prior period financial statements if change is applied with retroactive effect and prior financial statements are adjusted accordingly.
57. Disclosed change in accounting policy applied without prior period F/S adjustments
58. Disclosed the cumulative effect of change in accounting policy on beginning retained earnings
59.Disclosed nature of changes in accounting estimates and their effects on income before extraordinary items in the notes
60.Disclosed nature and reason for change in the structure of the accounting entity
61. Disclosed the effect of change in the structure of the Accounting Entity on income before extraordinary items and on net income for all periods presented
2004 / 2003 / 2002
Y / N / NA / Y / N / NA / Y / N / NA
Error Correction
Disclosed for correction of prior period errors:
62. Description of the error
63. Effect of the error on current and prior
period financial statements
64. Adjustment of prior period financial
statements affected by the error
Presentation and General Disclosure
General Requirements:
65. Presented Balance Sheet
66. Presented Income Statement
67. Presented Statement of Changes in
Shareholders Equity
67. Presented Statement of Cash Flows (Socpa)
68. Presented Notes to the F / Statements
69. Indicated notes are integral part of F/S
Each Statement contained:
70. Full Name of the Bank
71. Legal Status of the Bank
72. Date of the (period covered by) statement
Balance Sheet:
Items Presented in the following order:
73. Assets, Liabilities, Shareholders Equity
Total Assets presented to include:
74. Cash and balances with SAMA & other
banks
75. Trading Securities portfolio
76. Net Loans
77. Investment Securities portfolio
78. Net Fixed Assets
79 Other real estate
80 Other Assets
Minimum B/S Presentation of Liabilities
81. Deposits
82. Other borrowed funds
83. Other liabilities
Other borrowed funds presented as follows:
84. Nature of the lending area
85. Amount Borrowed
86. General conditions of credit
87. Disclosed liabilities secured bank asset
collateral
2004 / 2003 / 2002
Y / N / NA / Y / N / NA / Y / N / NA
Minimum presentation of Stockholders Equity
88. Paid in Capital
89. Statutory Reserves
90. Other Reserves
91. Retained Earnings
92. Accumulated exchange differences
93. Total stockholders equity
94. Presented Memorandum(Contingent) Accounts after TA & TLSHE. Amounts shown in the middle of B/S in a singular column
Presentation in the Income Statement
95. Income presented in a multi-staged statement
96. Comparative figures for at least one year
Presented the following group of items:
97. Income from major operations
98. Other gain (loss) revenue (expense)
99. Net Income before Extraordinary Items
100. Extraordinary Items
101 Net Income
102. Earnings per share (SOCPA)
Disclosed Components of net income from major operations as follows:
103. Special commissions income on loans
and Other credit facilities
104. Gains (loss) on trading portfolio
105. Return on investment portfolio
106. Gain (loss) on other real estate
107. Fees and income from other services
108. Special commission expense
109. Allowance for loan loss (including
loans written off or written back)
110. General and administrative expenses
Material other gain (loss) revenue (expense) disclosed as follows:
111. Gain (loss) on investment portfolio
112. Gain (loss) on sale of fixed assets
113. Return on trading portfolio
114. Material components of
extraordinary items disclosed
2004 / 2003 / 2002
Y / N / NA / Y / N / NA / Y / N / NA
Statement of Changes in Stockholders Equity
115. Statement covers at least two periods
Statement consists of following components:
116. Beginning balance of paid-in capital
117. Beginning balance of reserves
118. Beginning balance of retained earnings
119. Changes in paid in capital in period
120. Adjustment of reserves in period
121. Net Income during the period
122. Dividends
123. Other changes in retained earnings in
year
124. Closing balance of paid up capital
125. Closing balance of reserves
126. Closing balance of retained earnings
127. Changes in accumulated differences (if
any) from the translation of financial
statements
General Disclosure
Notes to financial statements contains information on bank covering:
128. Legal form, articles, and memorandum
of association license
129. Saudi, non- Saudi, ownership
percentages In joint venture banks
130 Geographical distribution of activities
131. Brief description of bank’s services
132. Disclosed Extraordinary Supervisory
Control imposed on the bank by
regulatory authorities, if any.
Disclosure covered:
133. Date, validity and nature of controls
134. Types of decisions affected by those
controls
2004 / 2003 / 2002
Y / N / NA / Y / N / NA / Y / N / NA
Zakat and Income Tax Disclosure
135. Disclosed Zakat separately in the notes
136. Zakat due for the current period and the accounting treatment of its recording and reduction from dividends payable
137. If bank made a loss, disclosed the zakat due for the current period and its accounting treatment
137. The zakat paid in previous loss years and which was not recovered from the Saudi shareholders, its future liquidation and in which asset caption it is included in the B/S
138. Amount of income tax payable (in mixed banks) on the results of operation of the current period and the accounting treatment for its deduction from the dividends payable to the foreign shareholder
Complimentary SOCPA Disclosures
139. Disclosed amounts due to BOD, top officers, shareholders
140. Disclosed amounts due to non- consolidated subsidiaries
141. Disclosed amounts due to parent and other affiliates
142. Disclosed appropriated and unappropriated Retained earnings
Income statement disclosed:
143. Results of discontinued operations
144 Fines imposed by the government
145 Loss from breaches of agreements
customers, suppliers
146 EPS and basis of computation
147. Presented Statement of Cash Flows
148. Cash flow from operating activities
149. Cash flow from investment activities
150. Cash flow from financing activities
151. Disclosed significant a/cg policies
152. Disclosed commitments
153. Disclosed subsequent events.
Voluntary Basel Disclosures / 2004 / 2003 / 2002
Capital Adequacy / Y / N / NA / Y / N / NA / Y / N / NA
201. Disclosed whether the bank has an internal process for assessing capital adequacy and for setting appropriate levels of capital
202. Provided analysis of changes in the bank's capital structure and the impact on key ratios and overall capital position
Internal and External Ratings
203. Discussed the process and methods used to assess credit exposures on both an
individual counterparty and portfolio basis
204. Provided summary information on the
quality of on- and off balance sheet credit
exposures, based on the internal ratings
process or external ratings
Credit Risk Modeling
205. Disclosed quantitative and qualitative information about the credit risk measurement models used, including model parameters (e.g. holding period, observation period, confidence interval), performance over time, and model validation and stress testing
Asset quality
206. Disclosed how the allocated and (any) of the unallocated portions of the allowances are determined
207. Disclosed the types of credit exposures that are evaluated individually for impairment and the types of exposures that are evaluated as a group
208. Discussed practices and procedures used for evaluating the adequacy of credit loss provisions and credit loss allowances
209. Discussed the techniques used to monitor and manage past due or impaired assets/credit relationships
210. Described how the level of allowances compares with historical net loss experience
2004 / 2003 / 2002
Y / N / NA / Y / N / NA / Y / N / NA
211. Disclosed information on the impact of non-accrual and impaired assets on the financial performance of the bank including information on charge-offs and provisions
212. Disclosed information on the impact of non-accrual and impaired assets on the financial performance of the bank including information on charge-offs and provisions
213. Disclosed the amount of any charge-offs and recoveries that have been recorded directly in the income statement
214. Provided information on total credit exposures, including exposures arising from lending, trading, investment, liquidity/funding management and off-balance sheet activities
21 5. Provided information on the amount and nature of derivatives credit risk loss
allowances
Credit derivatives and other credit enhancements
216. Discussed how credit derivatives are used, including strategy and objectives
Derivatives (other than credit derivatives)
217. Discussed the objectives for use of non-trading derivatives
218. Described how derivatives are used to hedge risks (strategies)
219. Discussed the overall business objectives of trading activities and strategies for achieving those objectives
220. Disclosed the quantitative effect of legally enforceable bilateral and multilateral netting agreements
Geographic and business line diversification
221. Disclosed summary information about the geographic distribution of credit exposures,
Including domestic and international
2004 / 2003 / 2002
Y / N / NA / Y / N / NA / Y / N / NA
222. Disclosed credit exposure information by business line
223. Provided a breakdown of impaired assets by geographic area
224. Provided a breakdown of past due assets by asset category
Accounting and presentation policies
225. Disclosed the basis of measurement for assets at initial recognition and subsequent
periods, e.g., fair value or historical cost
226. Disclosed the basis for determining when assets are considered past-due and/or
impaired for accounting and disclosure purposes (number of days where appropriate)
227. Disclosed income and expense information grouped by nature or function within the bank
228. Provided summary information about how trading activities affect earnings, based on internal measurement and accounting systems
229. Distinguished between trading assets and trading liabilities
Other risks (i.e. interest rate risk in the banking book, liquidity risk and operational risk)
230. Disclosed information about the main types of operational risk and identified and
discussed any specific issues considered to be significant
231. Disclosed legal contingencies (including pending legal actions) and discussed possible liabilities
232. Disclosed quantitative and qualitative information and strategies for managing liquidity risk

Part C:Disclosure Score

Maximum possible / Based on disclosure items / +++++
Actual score / Based on the bank underconsideration / +++++
Relative score / Actual score / maximum possible score / +++++