95HX Gfh Sukuk 25

 

1    Reporting entity

 

GFH Financial Group BSC ("the Bank") was incorporated in 1999 in the Kingdom of Bahrain under Commercial Registration No. 44136 and operates under an Islamic Wholesale Investment Banking license issued by the Central Bank of Bahrain ("CBB"). The Bank's shares are listed on the Bahrain, Kuwait, Dubai and Abu Dhabi Financial Market Stock Exchanges. The Bank's sukuk certificates are listed on London Stock Exchange. The Bank's activities are regulated by the CBB. The principal activities of the Bank include investment advisory services and investment transactions which comply with Islamic rules and principles determined by the Bank's Shari'a Supervisory Board.

 

The condensed consolidated interim financial information for the nine months ended 30 September 2024 comprise the financial information of GFH Financial Group BSC (GFH or the "Bank") and its subsidiaries (together referred to as "the Group"). 

 

The following are the principal subsidiaries consolidated in the condensed consolidated interim financial information.

 

Investee name	Country of incorporation	Effective ownership interests as at 30 September 2024	Activities
GFH Partners Limited	United Arab Emirates	100%	Investment management
GFH Capital S.A.	Saudi Arabia	100%	Investment management
Al Areen Hotels W.L.L.	Kingdom of Bahrain	100%	Hospitality management services
Khaleeji Bank BSC ('KHALEEJI')*		82.95%	Islamic retail bank
GFH Equities BSC (c)**		76.63%	Investment management

 

*During the previous quarter ended 30 June 2024, the Group's effective ownership was diluted to 57.95% as compared to effective ownership as on 31 December 2023 of 85.41% due to capital increase.

 

*During the current quarter, the Group has purchased the additional stake resulting increase in effective ownership to 82.95% as compared to 57.95% as on 30 June 2024.

 

** During quarter ended 30 June 2024, the Group acquired additional stake in GFH Equities BSC (c) which resulted in increase in effective ownership as on 30 June 2024 to 76.63% (31 December 2023: 62.91%).

 

The Bank has other investment holding companies, SPV's and subsidiaries, which are set up to supplement the activities of the Bank and its principal subsidiaries.

      

 

2          Basis of preparation

 

The condensed consolidated interim financial information of the Group has been prepared in accordance with Financial Accounting Standard FAS 41, Interim Financial Reporting ("FAS 41") issued by the Accounting and Auditing Organisation of Islamic Financial Institutions ("AAOIFI"). In line with the requirements of AAOIFI and the Central Bank of Bahrain (CBB) rule book, for matters not covered under AAOIFI standards the group uses guidance from the relevant IFRS Accounting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards").

 

These condensed consolidated interim financial information are reviewed and not audited. The condensed consolidated interim financial information of the Group does not contain all information and disclosures required for the annual consolidated financial statements and should be read in conjunction with the Group's audited annual consolidated financial statements for the year ended 31 December 2023. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual consolidated financial statements as at and for the year ended 31 December 2023.

 

 

3          Significant accounting policies

 

The accounting policies and methods of computation applied by the Group in the preparation of the condensed consolidated interim financial information are the same as those used in the preparation of the Group's last audited consolidated financial statements as at and for the year ended 31 December 2023, except those arising from certain changes due to adoption of the following standards and amendments to standards effective from 1 January 2024. The impact of adoption of these standards and amendments is set out below.

 

a.   New standards, amendments and interpretations issued and effective for annual periods beginning on or after 1 January 2024:

 

1)   FAS 1 General Presentation and Disclosures in the Financial Statements

 

AAOIFI has issued the revised FAS 1 General Presentation and Disclosures in the Financial Statements in 2021. This standard describes and improves the overall presentation and disclosure requirements prescribed in line with the global best practices and supersedes the earlier FAS 1. It is applicable to all the Islamic Financial Institutions and other institutions following AAOIFI FAS's. This standard is effective for the financial reporting periods beginning on or after 1 January 2024 with an option to early adopt.

 

The revision of FAS 1 is in line with the modifications made to the AAOIFI conceptual framework for financial reporting. Significant changes relevant to the Group are a) Definition of Quasi-equity is introduced; b) Concept of comprehensive income has been introduced; and c) Disclosure of movement in Zakah and Charity have been relocated disclosed into the notes to the condensed consolidated financial information.

 

During the period, the Group has adopted FAS 1 revised. As a result of this adoption following changes were made to the primary statements of the Group. Below is a summary of the new primary statements:

 

Primary statements introduced

Statement of total comprehensive income

Statement of income and attribution related to quasi-equity

Statement of changes in off-balance-sheet assets under management

 

 

 

 

 

 

 

 

 

3    SIGNIFICANT ACCOUNTING POLICIES (continued)

 

New standards, amendments and interpretations issued and effective for annual periods beginning on or after 1 January 2024: (continued)

 

Primary statements discontinued

 

Statement of sources and uses of zakah and charity fund

 

As a result of the adoption of FAS 1 revised certain prior year figures have been represented and regrouped to be consistent with the current year presentation. Such grouping did not affect previously reported net profit, total assets, total liabilities and total equity of the Group. Further, the Group has elected to present statement of income and a statement of other comprehensive income as two separate statements.

 

b.   New standards, amendments, and interpretations issued but not yet effective

 

(i) FAS 45: Quasi-Equity (Including Investment Accounts)

AAOIFI has issued Financial Accounting Standard (FAS) 45 "Quasi-Equity (Including Investment Accounts)" during 2023. The objective of this standard is to establish the principles for identifying, measuring, and presenting "quasi-equity" instruments in the financial statements of Islamic Financial Institutions "IFIs".

 

The standard prescribes the principles of financial reporting to participatory investment instruments (including investment accounts) in which an IFI controls underlying assets (mostly, as working partner), on behalf of the stakeholders other than owner's equity. This standard provides the overall criteria for on-balance sheet accounting for participatory investment instruments and quasi-equity, as well as, pooling, recognition, derecognition, measurement, presentation and disclosure for quasi-equity.

 

This standard shall be effective for the financial reporting periods beginning on or after 1 January 2026 with an option to early adopt.

 

The Group does not expect any significant impact on the adoption of this standard.

 

(ii) FAS 46: Off-Balance-Sheet Assets Under Management

AAOIFI has issued Financial Accounting Standard ("FAS") 46 "Off-Balance-Sheet Assets Under Management" during 2023. The objective of this standard is to establish principles and rules for recognition, measurement, disclosure, and derecognition of off-balance-sheet assets under management, based on Shari'a and international best practices. The standard aims to improve transparency, comparability, accountability, and governance of financial reporting related to off-balance-sheet assets under management.

 

This standard is applicable to all IFIs with fiduciary responsibilities over asset(s) without control, except for the following:

• The participants' Takaful fund and / or participants' investment fund of a Takaful institution; and

• An investment fund managed by an institution, being a separate legal entity, which is subject to financial reporting in line with the requirements of the respective AAOIFI FAS.

 

This standard shall be effective for the financial reporting periods beginning on or after 1 January 2026 with an option to early adopt.

 

This standard shall be effective for the financial periods beginning on or after 1 January 2026 with an option to early adopt. This standard shall be adopted at the same time as adoption of FAS 45 "Quasi-Equity (Including Investment Accounts)".

 

The Group does not expect any significant impact on the adoption of this standard.

 

 

 

 

3    SIGNIFICANT ACCOUNTING POLICIES (continued)

 

(iii) FAS 47: Transfer of Assets Between Investment Pools

AAOIFI has issued Financial Accounting Standard ("FAS") 47 "Transfer of Assets Between Investment Pools" during 2023.  The objective of this standard is to establish guidance on the accounting treatment and disclosures for transfers of assets between investment pools that are managed by the same institution or its related parties. The standard applies to transfers of assets that are not part of a business combination, a disposal of a business, or a restructuring of an institution.

 

The standard defines an investment pool as a group of assets that are managed together to achieve a common investment objective, such as a fund, a portfolio, or a trust. The standard also defines a transfer of assets as a transaction or event that results in a change in the legal ownership or economic substance of the assets, such as a sale, a contribution, a distribution, or a reclassification.

 

The transfer of assets between investment pools should be accounted for based on the substance of the transaction and the terms and conditions of the transfer agreement. The standard classifies transfers of assets into three categories: transfers at fair value, transfers at carrying amount, and transfers at other than fair value or carrying amount. The standard also specifies the disclosure requirements for transfers of assets between investment pools.

 

This standard shall be effective for the financial periods beginning on or after 1 January 2026 with an option to early adopt.

 

The Group does not expect any significant impact on the adoption of this standard.

 

 

4          Estimates and judgements

 

Preparation of condensed consolidated interim financial information requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. The areas of significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were similar to those applied to the audited consolidated financial statements as at and for the year ended 31 December 2023.

 

 

5          Financial risk management

 

The Group's financial risk management objectives and policies are consistent with those disclosed in the audited consolidated financial statements for the year ended 31 December 2023.

 

Regulatory ratios

a.   Net stable funding Ratio (NSFR)

NSFR as a percentage is calculated as "Available stable funding" divided by "Required stable funding".

 

 

 

5         Financial risk management (continued)

 

The Consolidated NSFR calculated as per the requirements of the CBB rulebook, is as follows:                     

 

As at 30 September 2024

 

No.	Item	No Specified Maturity	Less than 6 months	More than 6 months and less than one year	Over one year	Total weighted value
Available Stable Funding (ASF):
1	Capital:
2	Regulatory Capital	976,124	-	-	48,246	1,024,370
3	Other Capital Instruments	-	-	-	-	-
4	Retail deposits and deposits from small business customers:
5	Stable deposits		161,079	42,027	2,502	195,452
6	Less stable deposits	-	2,457,310	597,073	178,413	2,927,358
7	Wholesale funding:
8	Operational deposits
9	Other Wholesale funding	-	4,348,260	768,828	936,588	5,234,436
10	Other liabilities:
11	NSFR Shari'a-compliant hedging contract liabilities		-	-	-
12	All other liabilities not included in the above categories	-	477,763	-	26,536	26,536
13	Total ASF					9,408,152
Required Stable Funding (RSF):
14	Total NSFR high-quality liquid assets (HQLA)	1,998,884.99	-	-	-	98,221
15	Depsoits held at other financial institutions for opetational purposes
16	Performing financing and sukuk/ securities:	-	1,329,396	-	1,239,317	1,252,828
17	Performing financial to financial institutions by level 1 HQLA	-	-	-	-	-
18	Performing financing to financial institutions secured by non-level 1 HQLA and unsecured performing financing to financial institutions	-	145,590	-	1,194,906	1,088,465
19	Performing financing to non- financial corporate clients, financing to retail and small business customers, and financing to sovereigns, central banks and PSEs, of which:	-	113,115	252,442	373,054	425,263
20	With a risk weight of less than or equal to 35% as per the CBB Capital Adequacy Ratio guidelines	-	-	-	-	-
21	Performing residential mortgages, of which:	-	-	-	-	-
22	With a risk weight of less than or equal to 35% under the CBB Capital Adequacy Ratio Guidelines	-	-	-	-	-
23	Securities/sukuk that are not in default and do not qualify as HQLA, including exchange-traded equities	-	905,742	142,866	418,776	943,080
24	Other assets:
25	Physical traded commodities, including gold	-				-
26	Assets posted as initial margin for Shari'a-compliant hedging contracts contracts and contributions to default funds of CCPs		-	-	-	-
27	NSFR Shari'a-compliant hedging assets		-	-	-	2,013
28	NSFR Shari'a-compliant hedging contract liabilities before deduction of variation margin posted		-	-	-	-
29	All other assets not included in the above categories	2,946,497	-	-	-	2,946,497
30	OBS items		-	-	-	74,136
31	Total RSF		2,493,842	395,307	3,226,053	6,830,505
32	NSFR(%)					138%

 

 

 

 

 

 

 

5         Financial risk management (continued)

 

As at 31 December 2023

 

No.	Item		No Specified Maturity	Less than 6 months	More than 6 months and less than one year	Over one year	Total weighted value
Available Stable Funding (ASF):
1		Capital:
2		Regulatory Capital	1,023,275	-	-	64,133	1,087,409
3		Other Capital Instruments	-	-	-	-	-
4		Retail deposits and deposits from small business customers:
5		Stable deposits	-	159,304	36,446	3,763	189,725
6		Less stable deposits	-	1,964,119	518,381	503,663	2,737,913
7		Wholesale funding:
8		Operational deposits	-	-	-	-	-
9		Other Wholesale funding	-	4,157,571	544,672	1,438,472	5,452,622
10		Other liabilities:
11		NSFR Shari'a-compliant hedging contract liabilities		-	-	-
12		All other liabilities not included in the above categories	-	481,509	-	36,139	36,139
13		Total ASF					9,503,808
Required Stable Funding (RSF):
14		Total NSFR high-quality liquid assets (HQLA)	1,761,766				97,918
15		Depsoits held at other financial institutions for opetational purposes
16		Performing financing and sukuk/ securities:		1,841,985		791,830	949,354
17		Performing financial to financial institutions by level 1 HQLA	-	-	-	-	-
18		Performing financing to financial institutions secured by non-level 1 HQLA and unsecured performing financing to financial institutions	-	19,610	934	1,041,445	895,500
19		Performing financing to non- financial corporate clients, financing to retail and small business customers, and financing to sovereigns, central banks and PSEs, of which:	-	254,059	76,796	364,685	402,473
20		With a risk weight of less than or equal to 35% as per the CBB Capital Adequacy Ratio guidelines	-	-	-	-	-
21		Performing residential mortgages, of which:	-	-	-	-	-
22		With a risk weight of less than or equal to 35% under the CBB Capital Adequacy Ratio Guidelines	-	-	-	-	-

 

 

 

 

 

 

 

 

 

 

5      FINANCIAL RISK MANAGEMENT (continued)

 

No.	Item	No Specified Maturity	Less than 6 months	More than 6 months and less than one year	Over one year	Total weighted value
23	Securities/sukuk that are not in default and do not qualify as HQLA, including exchange-traded equities	-	1,048,701	25,995	578,308	1,115,656
24	Other assets:	-	-	-	-	-
25	Physical traded commodities, including gold	-				-
26	Assets posted as initial margin for Shari'a-compliant hedging contracts contracts and contributions to default funds of CCPs		-	-	-	-
27	NSFR Shari'a-compliant hedging assets		-	-	-	2,195
28	NSFR Shari'a-compliant hedging contract liabilities before deduction of variation margin posted		-	-	-	-
29	All other assets not included in the above categories	2,908,175	-	-	-	2,908,175
30	OBS items		-	-	-	62,381
31	Total RSF		3,164,354	103,726	2,776,269	6,433,652
32	NSFR(%)					148%

 

 

b.      Liquidity Coverage Ratio (LCR)

 

LCR is computed as a ratio of Stock of High-Quality Liquid Assets (HQLA) over the Net cash outflows over the next 30 calendar days.

 

	Average balance
	30 September 2024 (reviewed)	31 December 2023 (audited)
Stock of HQLA	555,734	444,865
Net cashflows	210,207	196,313
LCR %	261%	233%
Minimum required by CBB	100%	100%

 

 

5          FINANCIAL RISK MANAGEMENT (continued)

 

c.   Capital Adequacy Ratio

 

	30 September 2024 (reviewed)	31 December 2023 (audited)
CET 1 Capital before regulatory adjustments	993,297	1,023,275
Less: regulatory adjustments	-	-
CET 1 Capital after regulatory adjustments	993,297	1,023,275
AT1 Capital	3,434	-
T 2 Capital adjustments	48,246	64,133
Regulatory Capital	1,044,977	1,087,408
Risk weighted exposure:
Credit Risk Weighted Assets	5,338,249	4,585,950
Market Risk Weighted Assets	118,762	90,135
Operational Risk Weighted Assets	511,093	506,408
Total Regulatory Risk Weighted Assets	5,968,104	5,182,493
Investment risk reserve (30% only)	2	2
Profit equalization reserve (30% only)	3	3
Total Adjusted Risk Weighted Exposures	5,968,099	5,182,488
Capital Adequacy Ratio (CAR)	17.51%	20.98%
Tier 1 Capital Adequacy Ratio	16.70%	19.74%
Minimum CAR required by CBB	12.50%	12.50%

 

 

6          Seasonality

 

Due to the inherent nature of the Group's business (investment banking, commercial banking and treasury  and proprietary), the nine-months results reported in this condensed consolidated interim financial information may not represent a proportionate share of the overall annual results.   

 

 

7          Comparatives

 

Comparative figures have been regrouped to conform with the presentation for current period. Such regrouping did not affect previously reported profit for the period or total equity. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8    Treasury portfolio

 

	30 September 2024		31 December 2023		30 September 2023
	(reviewed)		(audited)		(reviewed)
Placements with financial institutions	892,566		1,458,368		1,233,133
Derivatives
At fair value through statement of income	2,031		2,195		4,412
Equity type investments
At fair value through OCI
-     Quoted sukuk	31,460		33,326		32,471
At fair value through statement of income
-     Structured notes*	370,306		404,839		429,273
-     Quoted fund	30,145		27,099		27,742
Debt type investments
At fair value through OCI
-     Quoted sukuk*	736,908		784,300		818,146
At amortised cost
-     Quoted sukuk*	2,490,723		2,447,489		2,450,455
-     Unquoted sukuk	4,546		3,494		3,494
Less: Impairment allowances	(26,062)		(26,078)		(28,984)
	4,532,623		5,135,032		4,970,142

 

*Short-term and medium-term facilities of US$ 1,710,365 thousand (31 December 2023: US$ 1,857,388 thousand) are secured by quoted sukuk of US$ 2,715,738 thousand (31 December 2023: US$ 2,762,506 thousand) and structured notes of US$ 370,306 thousand (31 December 2023: US$ 404,839 thousand).

 

 

9          Financing CONTRACTS

	30 September 2024		31 December 2023		30 September 2023
	(reviewed)		(audited)		(reviewed)
Murabaha*	1,424,697		1,029,324		1,052,176
Mudharaba	21,138		20,564		20,877
Ijarah assets	658,026		559,200		553,093
	2,103,861		1,609,088		1,626,146
Less: Impairment allowances	(68,735)		(64,278)		(67,344)
	2,035,126		1,544,810		1,558,802

*Murabaha financing receivables are net of deferred profits of US$ 38,103 thousands                                                           (31 December 2023: US$ 41,727 thousands).

 

 

9    Financing Contracts (continued)

 

The movement on financing contracts and impairment allowances is as follows:

 

Financing contracts	Stage 1	Stage 2	Stage 3	Total
Financing contracts (gross)	1,747,116	195,668	161,077	2,103,861
Expected credit loss	(6,139)	(11,507)	(51,089)	(68,735)
Financing contracts (net)	1,740,977	184,161	109,988	2,035,126

 

Impairment allowances	Stage 1	Stage 2	Stage 3	Total
At 1 January 2024	4,788	18,310	41,180	64,278
Net movement between stages	8,192	(12,053)	3,861	-
Net charge for the period	(6,841)	5,250	7,391	5,800
Write-offs	-	-	(1,343)	(1,343)
At 30 September 2024 (reviewed)	6,139	11,507	51,089	68,735

 

31 December 2023	Stage 1	Stage 2	Stage 3	Total
Financing contracts (gross)	1,192,539	284,047	132,502	1,609,088
Expected credit loss	(4,788)	(18,310)	(41,180)	(64,278)
Financing contracts (net)	1,187,751	265,737	91,322	1,544,810

 

Impairment allowances	Stage 1	Stage 2	Stage 3	Total
Balance at 1 January 2023	18,046	11,990	34,336	64,372
Net transfers	(6,879)	(1,920)	8,799	-
Net charge for the year	(6,379)	8,240	644	2,505
Write-off	-	-	(2,599)	(2,599)
At 31 December 2023 (audited)	4,788	18,310	41,180	64,278

 

30 September 2023	Stage 1	Stage 2	Stage 3	Total
Financing assets (gross)	1,171,407	316,177	138,562	1,626,146
Expected credit loss	(4,846)	(21,579)	(40,919)	(67,344)
Financing assets (net)	1,166,561	294,598	97,643	1,558,802

 

Impairment allowances	Stage 1	Stage 2	Stage 3	Total
At 1 January 2023	18,046	11,990	34,336	64,372
Net movement between stages	(4,515)	1,032	3,483	-
Net charge for the period	(8,685)	8,557	3,339	3,211
Write-offs	-	-	(239)	(239)
At 30 September 2023 (reviewed)	4,846	21,579	40,919	67,344

 

 

 

10    Investment in real estate

	30 September 2024		31 December 2023		30 September 2023
	(reviewed)		(audited)		(reviewed)
Investment Property
-     Land	400,984		483,685		581,836
-     Building	123,847		141,471		196,252
	524,831		625,156		778,088
Development Property
-     Land	169,128		165,565		154,183
-     Building	505,921		581,211		401,102
	675,049		746,776		555,285
	1,199,880		1,371,932		1,333,373

 

11    Co-investments

	30 September 2024		31 December 2023		30 September 2023
	(reviewed)		(audited)		(reviewed)
At fair value through OCI
-     Unquoted securities	293,600		247,048		173,195
At fair value through statement of income
-     Unquoted securities	9,393		9,168		8,939
Impairment allowance	(1,606)		(1,606)		-
	301,387		254,610		182,134

 

 

12       Proprietary investments

	30 September 2024		31 December 2023		30 September 2023
	(reviewed)		(audited)		(reviewed)
Equity type investments
At fair value through statement of income
-     Unquoted securities	17,449		2,942		2,942
-     Listed securities	27,214		14,252		11,442
	44,663		17,194		14,384
At fair value through OCI
-     Listed securities (at fair value)	18,077		-		-
-     Equity type Sukuk	886,781		827,012		828,759
-     Unquoted securities	63,271		64,045		58,413
	968,129		891,057		887,172
Equity-accounted investees	155,764		137,390		116,489
Impairment allowance	(2,513)		(914)		(12)
	1,166,043		1,044,727		1,018,033

 

 

 

13    RECEIVABLES AND OTHER ASSETS

 

               

	30 September 2024		31 December 2023		30 September 2023
	(reviewed)		(audited)		(reviewed)
Investment banking receivables*	211,149		307,597		273,860
Receivable from equity-accounted investees	164,789		93,318		90,123
Financing to projects, net	5,827		7,281		5,827
Receivable on sale of real estate	147,263		16,376		14,057
Advances and deposits	72,287		62,416		66,417
Employee receivables	20,857		7,443		7,579
Profit on sukuk receivable	21,865		19,948		23,817
Lease rentals receivable	3,282		4,025		4,788
Goodwill and intangibles	73,459		45,187		61,694
Receivable from sale of investments	78,127		71,281		29,147
Prepayments and other receivables	262,683		198,407		247,897
Less: Impairment allowance	(23,281)		(7,948)		(7,709)
	1,038,307		825,331		817,497

 

 

* Subsequent to the period, the amounts due were significantly settled from subscriptions collected in  

client money accounts.

 

 

14   Term financing

	30 September 2024		31 December 2023		30 September 2023
	(reviewed)		(audited)		(reviewed)
Murabaha financing* (note 8)	1,719,360		1,880,910		1,593,075
Sukuk **	236,903		241,777		237,253
Ijarah financing	-		-		15,632
Other borrowings	1,798		1,620		1,568
	1,958,061		2,124,307		1,847,528

*Murabaha financing comprise:

 

Short-term and medium-term facilities of US$ 1,710,365 thousand (31 December 2023: US$ 1,857,388 thousand) are secured by quoted sukuk of US$ 2,715,738 thousand (31 December 2023: US$ 2,762,506 thousand) and structured notes of US$ 370,306 thousand (31 December 2023: US$ 404,839 thousand).

 

** Sukuk

Represents outstanding unsecured sukuk certificates with a profit rate of 7.5% p.a. repayable by 2025. The outstanding sukuk also includes accrued profit of US$ 3,604 thousand.

 

 

 

 

15   OTHER LIABILITIES

	30 September 2024		31 December 2023		30 September 2023
	(reviewed)		(audited)		(reviewed)
Investment banking payables*	118,622		173,297		319,720
Accounts Payables	78,748		46,091		58,967
Unclaimed dividends	3,630		2,312		2,615
Payables to equity-accounted investees	22,435		107,466		68,388
Other accrued expenses and payables	57,395		67,292		55,665
Deferred Income	9,897		32,240		19,431
Payables towards purchase of investments	50,239		63,068		25,000
Zakah and Charity Fund	10,435		6,331		6,715
Advance received from customers**	2,049		2,106		7,756
Employee related accruals	20,003		25,039		14,038
Mudaraba profit accrual	13,929		22,814		17,794
Payable related to acquisition of additional stake in subsidiary	101,220		-		-
Payable related to buy-back of treasury shares	37,869		-		-
	526,471		548,056		596,089

 

*Represents amounts payable against assets acquired as part of investment banking deals along with payable for ongoing project related costs of the said SPVs. These payables on receipt of funds from investment banking receivables and underlying SPV's are usually settled within 12 months.

 

**Represents amount received in advance from the customers on account of real estate assets to be delivered by the Group.

 

 

16   QUASI EQUITY

 

30 September 2024		31 December 2023		30 September 2023
(reviewed)		(audited)		(reviewed)
1,806,102		2,312,153		1,800,918
1,317,287		1,138,853		1,299,619
3,123,389		3,451,006		3,100,537

 

 

 

 

Financial institutions

Non-financial institutions and individuals

 

 

 

 

30 September 2024		31 December 2023		30 September 2023
(reviewed)		(audited)		(reviewed)
146,234		50,266		78,135
82,703		75,310		75,310
1,830,578		2,202,334		1,810,705
987,708		1,006,144		1,018,101
31,979		71,334		71,334
44,187		45,618		46,952
3,123,389		3,451,006		3,100,537

 

 

 

 

Balances with banks

CBB reserve account

Treasury portfolio

Financing contracts

Proprietary Investments

Investment in real estate

           

 

 

 

 

 

 

17   Impairment allowances, net

 

	Nine months ended			Three months ended
	30 September 2024 (reviewed)	30 September 2023 (reviewed)		30 September 2024 (reviewed)	30 September 2023 (reviewed)
Expected credit loss on:
Bank balances	(24)	8		15	(12)
Treasury portfolio (note 8)	(16)	12,021		1,327	9,909
Financing assets, net (note 9)	5,800	3,211		1,934	(3,546)
Commitments and financial guarantees	-	(6)		-	(6)
	5,760	15,234		3,276	6,345
Impairment on proprietary investment (note 12)	1,599	(28)		547	3
Impairment on other receivables (note 13)	15,333	(1,599)		264	307
	22,692	13,607		4,087	6,655

 

 

18   EARNINGS PER SHARE

 

The calculation of basic earnings per share has been based on the following profit attributable to the ordinary shareholders and weighted-average number of ordinary shares outstanding. The Group does not have any diluted potentially ordinary shares as of the reporting dates. Hence, the basic and diluted earnings per share is similar.

 

	Nine months ended			Three months ended
	30 September 2024 (reviewed)	30 September 2023 (reviewed)		30 September 2024 (reviewed)	30 September 2023 (reviewed)
Profit attributable to shareholders of the Bank	87,947	78,921		27,200	24,305
Weighted Average number of shares outstanding during the period	3,613,569	3,499,368		3,722,969	3,431,369
Earnings per share
Basic and diluted earnings per share (US cents)	2.43	2.26		0.73	0.71

 

 

 

 

 

 

 

 

 

 

 

 

               

 

19   Related party transactions

 

The significant related party balances and transactions as at 30 September 2024 are given below:

 

	Related parties as per FAS 1			Assets under management (including special purpose and other entities)	Total
30 September 2024 (reviewed)	Equity-accounted investees	Key management personnel	Significant shareholders / entities in which directors are interested
Assets
Treasury portfolio	-	-	-	60,482	60,482
Financing contracts	-	10,528	230,167	17,932	258,627
Proprietary investments	886,781	-	6,058	9,865	902,704
Co-investments	-	-	-	301,387	301,387
Receivables and other assets	164,789	6,996	25,175	211,149	408,109
Liabilities
Placements from financial, non-financial institutions and individuals	-	4,501	3,931	-	8,432
Current accounts	6,480	501	39,358	19,099	65,438
Other liabilities	22,435	7,420	-	118,622	148,477
Quasi equity	6,249	8,568	100,954	19,040	134,811
Income
Investment banking	-	-	-	133,190	133,190
Commercial banking
-   Income from financing	-	451	1,732	-	2,183
Treasury and proprietary investments	35,215	-	-	69,777	104,992
Expenses
Operating expenses	-	(493)	-	(284)	(777)
Staff Cost	-	(11,602)	-	-	(11,602)
Finance Cost	(37)	(379)	(11,171)	(13)	(11,600)

 

 

 

19   Related party transactions (continued)

 

	Related parties as per FAS 1			Assets under management (including special purpose and other entities)	Total
31 December 2023 (audited)	Equity-accounted investees	Key management personnel	Significant shareholders / entities in which directors are interested
Assets
Treasury portfolio	-	-	-	70,546	70,546
Financing contracts	-	11,202	85,055	19,489	115,746
Proprietary investments	827,161	-	7,686	13,667	848,514
Co-investments	-	-	-	254,610	254,610
Receivables and prepayments	93,318	6,731	1,507	307,597	409,153
Liabilities
Placements from financial, non-financial institutions and individuals	-	5,602	8,622	-	14,224
Current accounts	2,971	16	29,233	19,122	51,342
Payables and accruals	107,466	7,196	-	173,297	287,959
Quasi equity	2,485	5,027	44,145	14,422	66,079
30 September 2023 (reviewed)
Income
Investment banking	-	-	-	150,023	150,023
Commercial banking
-   Income from financing	-	477	4,759	-	5,236
-   Less: Return to quasi equity	(37)	(172)	(8,520)	(13)	(8,742)
-   Less: Finance expense	-	(194)	(8,565)	-	(8,759)
Treasury and proprietary investments	28,351	-	9,347	2,065	39,763
Expenses
Operating expenses	-	(878)	-	-	(878)
Staff Cost	-	(6,750)	-	-	(6,750)
Finance Cost	-	-	-	(2,345)	(2,345)