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MIRA
INFORM REPORT
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Report No. : |
494351 |
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Report Date : |
28.02.2018 |
IDENTIFICATION DETAILS
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Name : |
SAMBA FINANCIAL GROUP |
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Registered Office : |
Airport Road, Olaya District, PO Box 833, Riyadh 11421 |
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Country : |
Saudi Arabia |
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Financials (as on) : |
30.09.2017 |
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Date of Incorporation : |
12.02.1980 |
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Com. Reg. No.: |
1010035319, Riyadh |
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Legal Form : |
Public Joint Stock Company |
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Line of Business : |
Subject engaged in the provision of corporate, investment and private
banking services. |
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No. of Employees : |
3,500 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Saudi Arabia |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
SAUDI ARABIA - ECONOMIC OVERVIEW
Saudi Arabia has an oil-based economy with strong government controls
over major economic activities. It possesses about 16% of the world's proven
petroleum reserves, ranks as the largest exporter of petroleum, and plays a
leading role in OPEC. The petroleum sector accounts for roughly 87% of budget
revenues, 42% of GDP, and 90% of export earnings.
Saudi Arabia is encouraging the growth of the private sector in order to
diversify its economy and to employ more Saudi nationals. Over 6 million
foreign workers play an important role in the Saudi economy, particularly in
the oil and service sectors; at the same time, however, Riyadh is struggling to
reduce unemployment among its own nationals. Saudi officials are particularly
focused on employing its large youth population, which generally lacks the
education and technical skills the private sector needs.
In 2017, the Kingdom incurred a budget deficit estimated at 8.3% of GDP,
which was financed by bond sales and drawing down reserves. Although the
Kingdom can finance high deficits for several years by drawing down its
considerable foreign assets or by borrowing, it has cut capital spending and
reduced subsidies on electricity, water, and petroleum products and plans to
introduce a value-added tax. In January 2016, Crown Prince and Deputy Prime
Minister MUHAMMAD BIN SALMAN announced that Saudi Arabia intends to list shares
of its state-owned petroleum company, ARAMCO - another move to increase revenue
and outside investment. The government has also looked at privatization and
diversification of the economy more closely in the wake of a diminished oil
market. Historically, Saudi Arabia has focused diversification efforts on power
generation, telecommunications, natural gas exploration, and petrochemical
sectors. More recently, the government has approached investors about expanding
the role of the private sector in the health care, education and tourism
industries. While Saudi Arabia has emphasized their goals of diversification
for some time, current low oil prices may force the government to make more
drastic changes ahead of their long-run timeline.
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Source
: CIA |
SUMMARY
Company Name :
SAMBA FINANCIAL GROUP
Also Known As :
SAMBA FINANCIAL BANK
Country of Origin :
Saudi Arabia
Legal Form :
Public Joint Stock Company
Registration Date :
12th February 1980
Commercial Registration Number :
1010035319, Riyadh
Issued Capital :
SR 20,000,000,000
Paid up Capital :
SR 20,000,000,000
Total Workforce :
3,500
Activities :
Providers of banking services
Financial Condition :
Good
Payments :
Regular
Operating Trend :
Steady
COMPANY NAME
SAMBA FINANCIAL GROUP
ALSO KNOWN AS
SAMBA FINANCIAL BANK
ADDRESS
Registered &
Physical Address
Street : Airport Road
Area : Olaya
District
PO Box : 833
Town : Riyadh 11421
Country : Saudi Arabia
Telephone : (966-11)
4774770
Facsimile : (966-11)
4774770
Email : contactus@sambaonline.com
Premises
Subject operates from a large suite of offices that are owned and
located in the Central Business Area of Riyadh.
Branch Office (s)
Location Description
PO Box: 842 Office
premises
Al Khobar 31952
Tel: (966-13) 8658000
Fax: (966-13) 8658555
Subject operates 72 branches in Saudi Arabia.
KEY PRINCIPALS
Name Position
Eisa M Al Eisa Chairman
Ali H Alireza Director
Khaled A Al Abdulkareem Director
Fahad I Al Mufarraj Director
Ahmed Al Omran Director
Fahad H Al Sedairy Director
Dr Hamad S Al Qasoumi Director
Abdullah A Al Rowais Director
Mousa A Al Rubaian Director
Alaa M Al Harthi Director
LEGAL FORM & OWNERS
Date of Establishment : 26/03/1400 Hijri
(corresponding to 12th February 1980)
Legal Form : Public Joint Stock Company
Commercial Reg. No. : 1010035319,
Riyadh
Issued Capital : SR 20,000,000,000
Paid up Capital : SR 20,000,000,000
Name of Major
Shareholder (s) Percentage
Public Investment Fund 22.91%
Public Pension Agency 15.04%
General Organisation for Social Insurance 11.76%
Saudi businessmen & private investors 50.29%
AFFILIATED COMPANIES
Samba Fund Management Limited (Guernsey)
United Kingdom
Samba Capital and Investment Management Company
Riyadh
CR No. 1010237159
Samba Bank Ltd
Pakistan
Co-Invest Offshore Capital Ltd
Cayman Islands
Samba Real Estate Company
Riyadh
CR No. 1010234757
Samba Global Markets Ltd
Cayman Islands
OPERATIONS
Activities: Engaged in the provision of corporate, investment and private banking
services.
Operating Trend: Steady
Subject has a workforce of approximately 3,500 employees.
FINANCIAL DATA
Financial
highlights provided by local sources are given below:
Currency: Saudi
Riyals (SR’000)
Balance Sheet 31/12/15
31/12/16 30/09/17
ASSETS
Cash and balances with Central Banks 15,299,930 37,344,514 21,354,017
Due from banks and other financial
institutions 14,396,550 9,599,656 13,265,892
Investments, net 69,705,054 51,392,810 63,411,221
Loans and advances, net 129,818,882 125,234,330 120,677,986
Property and equipment, net 2,267,212 2,510,180 2,554,923
Other assets 3,755,051 965,038 613,827
Derivatives - 4,442,059 6,995,197
Total Assets 235,242,679 231,488,587 228,873,063
LIABILITIES AND
EQUITY
LIABILITIES
Due to banks and other financial institutions
19,191,178 10,880,778 10,408,941
Customer deposits 171,395,618 172,075,716 166,736,345
Other liabilities 4,296,026 4,265,449 4,070,874
Derivatives - 1,485,629 4,002,514
Total Liabilities 194,882,822 188,707,572 185,218,674
EQUITY
Equity attributable
to equity holders of the Bank
Share capital 20,000,000 20,000,000 20,000,000
Statutory reserve 13,303,555 14,554,971 14,554,971
General reserve 130,000 130,000 130,000
Other reserves 205,507 (78,428) 125,750
Retained earnings 6,523,875 7,884,606 9,763,900
Proposed dividend 1,134,000 1,234,000 -
Treasury stocks (1,046,336) (1,045,623) (1,022,914)
Total equity
attributable to equity holders of the Bank
40,250,601 42,679,526 43,551,707
Non-controlling interest 109,256 101,489 102,682
Total Equity 40,359,857 42,781,015 43,654,389
Total Liabilities
and Equity 235,242,679 231,488,587 228,873,063
Statement of Income
Special commission income 5,163,685 6,691,752 5,106,115
Special commission expense 500,847 1,309,468 914,760
Special commission
income, net 4,662,838 5,382,284 4,191,355
Fees and commission income, net 1,683,071 1,584,807 1,121,298
Exchange income, net 509,773 563,920 218,184
Income from investments held at FVIS, net 50,458 49,396 129,932
Trading (loss)/income, net 55,803 (14,538) 143,137
Gains on non-trading investments, net 426,381 35,767 34,821
Other operating income, net 366,254 158,821 149,827
Total operating
income 7,754,578
7,760,457 5,988,554
Salaries and employee related expenses 1,363,055 1,339,059 990,767
Rent and premises related expenses 306,311 350,504 271,127
Depreciation 126,111 121,341 92,329
Other general and administrative expenses 602,725 743,744 582,202
Provision for credit losses, net of
recoveries 142,156 200,146 242,016
Total operating
expenses 2,540,358 2,754,794 2,178,441
Net income for the
year 5,214,220 5,005,663 3,810,113
Local sources consider subject’s financial condition to be Good.
PAYMENT HISTORY
Regular
GENERAL COMMENTS
The subject and its shareholders/owners have been searched in the
following databases; Office of Foreign Assets Control (OFAC), United Nations
Security Council Sanctions, Australian Sanctions List, US Consolidated
Sanctions List, EU Financial Sanctions List and UK Financial Sanctions List and
nothing adverse could be found on the exact names listed within the report.
During the course of this investigation nothing detrimental was
uncovered regarding subject’s operating history or the manner in which payments
are fulfilled. As such the company is considered to be a fair trade risk.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 64.85 |
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1 |
INR 90.58 |
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Euro |
1 |
INR 79.97 |
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SAR |
1 |
INR 17.38 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors are as follows:
·
Financial
condition covering various ratios
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Company
background and operations size
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
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Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.