Sohar International Bank SAOG : Q2 Capital disclosureQ1 Capital disclosure

Basel III common disclosure template to be used during the transition of regulatory adjustments

		RO '000
	Common Equity Tier 1 capital: instruments and reserves
1	Directly issued qualifying common share capital (and equivalent for non-joint stock	263,393
	companies) plus related stock surplus
2	Retained earnings	5,892
3	Accumulated other comprehensive income (and other reserves)	52,508
4	Directly issued capital subject to phase out from CET1 (only applicable to non-joint stock	-
	companies)
	Public sector capital injections grandfathered until 1 January 2018	-
5	Common share capital issued by subsidiaries and held by third parties (amount allowed in	-
	group CET1)
6	Common Equity Tier 1 capital before regulatory adjustments	321,793
	Common Equity Tier 1 capital: regulatory adjustments
7	Prudential valuation adjustments	2,156
8	Goodwill (net of related tax liability)	-
9	Other intangibles other than mortgage-servicing rights (net of related tax liability)	-
10	Deferred tax assets that rely on future profitability excluding those arising from temporary	-
	differences (net of related tax liability)
11	Cash-flow hedge reserve	-
12	Shortfall of provisions to expected losses	-
13	Securitisation gain on sale (as set out in paragraph 14.9 of CP-1)	-
14	Gains and losses due to changes in own credit risk on fair valued liabilities.	-
15	Defined-benefit pension fund net assets	-
16	Investments in own shares (if not already netted off paid-in capital on reported balance	-
	sheet)
17	Reciprocal cross-holdings in common equity	-
18	Investments in the capital of banking, financial, insurance and takaful entities that are	-
	outside the scope of regulatory consolidation, net of eligible short positions, where the bank
	does not own more than 10% of the issued share capital (amount above 10% threshold)
19	Significant investments in the common stock of banking, financial, insurance and takaful	-
	entities that are outside the scope of regulatory consolidation, net of eligible short positions
	(amount above 10% threshold)
20	Mortgage Servicing rights (amount above 10% threshold)	-
21	Deferred tax assets arising from temporary differences (amount above 10% threshold, net	-
	of related tax liability)
22	Amount exceeding the 15% threshold	-
23	of which: significant investments in the common stock of financials	-
24	of which: mortgage servicing rights	-
25	of which: deferred tax assets arising from temporary differences	-
26	National specific regulatory adjustments	-
	REGULATORY ADJUSTMENTS APPLIED TO COMMON EQUITY TIER 1 IN RESPECT
	OF AMOUNTS SUBJECT TO PRE-BASEL III TREATMENT
	Of which: [INSERT NAME OF ADJUSTMENT]	-
	Of which: [INSERT NAME OF ADJUSTMENT]	-
	Of which: [INSERT NAME OF ADJUSTMENT]	-
27	Regulatory adjustments applied to Common Equity Tier 1 due to insufficient Additional Tier	-
	1 and Tier 2 to cover deductions
28	Total regulatory adjustments to Common equity Tier 1	2,156
29	Common Equity Tier 1 capital (CET1)	319,637
	Additional Tier 1 capital: instruments
30	Directly issued qualifying Additional Tier 1 instruments plus related stock surplus	200,000
31	of which: classified as equity under applicable accounting standards 5	200,000
32	of which: classified as liabilities under applicable accounting standards 6	-
33	Directly issued capital instruments subject to phase out from Additional Tier 1	-
34	Additional Tier 1 instruments (and CET1 instruments not included in row 5) issued by	-
	subsidiaries and held by third parties (amount allowed in group AT1)
35	of which: instruments issued by subsidiaries subject to phase out	-
36	Additional Tier 1 capital before regulatory adjustments	200,000
	Additional Tier 1 capital: regulatory adjustments
37	Investments in own Additional Tier 1 instruments	-
38	Reciprocal cross-holdings in Additional Tier 1 instruments	-
39	Investments in the capital of banking, financial, insurance and takaful entities that are	-
	outside the scope of regulatory consolidation, net of eligible short positions, where the bank
	does not own more than 10% of the issued common share capital of the entity (amount
	above 10% threshold)
40	Significant investments in the capital of banking, financial, insurance and takaful entities	-
	that are outside the scope of regulatory consolidation (net of eligible short positions)
41
National specific regulatory adjustments	-
	REGULATORY ADJUSTMENTS APPLIED TO ADDITIONAL TIER 1 IN RESPECT OF
	AMOUNTS SUBJECT TO PRE-BASEL III TREATMENT
	Of which: [INSERT NAME OF ADJUSTMENT]	-
	Of which: [INSERT NAME OF ADJUSTMENT]	-
	Of which: [INSERT NAME OF ADJUSTMENT]	-
42	Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover	-
	deductions
43	Total regulatory adjustments to Additional Tier 1 capital	-
44	Additional Tier 1 capital (AT1)	200,000
45	Tier 1 capital (T1 = CET1 + AT1)	519,637
	Tier 2 capital: instruments and provisions

46	Directly issued qualifying Tier 2 instruments plus related stock surplus
47	Directly issued capital instruments subject to phase out from Tier 2	14,000
48	Tier 2 instruments (and CET1 and AT1 instruments not included in rows 5 or 34) issued by	-
	subsidiaries and held by third parties (amount allowed in group Tier 2)
49	of which: instruments issued by subsidiaries subject to phase out	-
50	Provisions	17,204
51	Tier 2 capital before regulatory adjustments	31,204
	Tier 2 capital: regulatory adjustments
52	Investments in own Tier 2 instruments	-
53	Reciprocal cross-holdings in Tier 2 instruments	-

54 Investments in the capital of banking, financial, insurance and takaful entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the bank

does not own more than 10% of the issued common share capital of the entity (amount	-
above the 10% threshold)
55 Significant investments in the capital banking, financial, insurance and takaful entities that
are outside the scope of regulatory consolidation (net of eligible short positions)	-

56 National specific regulatory adjustments

REGULATORY ADJUSTMENTS APPLIED TO TIER 2 IN RESPECT OF AMOUNTS

	SUBJECT TO PRE-BASEL III TREATMENT	-
	Of which: [INSERT NAME OF ADJUSTMENT]
	Of which: [INSERT NAME OF ADJUSTMENT]
	Of which: [INSERT NAME OF ADJUSTMENT]
57	Total regulatory adjustments to Tier 2 capital	-
58	Tier 2 capital (T2)	31,204
59	Total capital (TC = T1 + T2)	550,841
	Risk Weighted Assets
	RISK WEIGHTED ASSETS IN RESPECT OF AMOUNTS SUBJECT TO PRE-BASEL III		-
	TREATMENT
	Of which: [INSERT NAME OF ADJUSTMENT]
	Of which: [INSERT NAME OF ADJUSTMENT]
	Of which: [INSERT NAME OF ADJUSTMENT]
60	Total risk weighted assets (60a+60b+60c)	3,049,310
60a	Of which: Credit risk weighted assets		2,700,850
60b	Of which: Market risk weighted assets		156,573
60c	Of which: Operational risk weighted assets		191,888
	Capital Ratios
61	Common Equity Tier 1 (as a percentage of risk weighted assets)		10.48
62	Tier 1 (as a percentage of risk weighted assets)		17.04
63	Total capital (as a percentage of risk weighted assets)		18.06
64	Institution specific buffer requirement (minimum CET1 requirement plus capital		8.25%
	conservation buffer plus countercyclical buffer requirements plus G-SIB/D-SIB buffer
	requirement expressed as a percentage of risk weighted assets)
65	of which: capital conservation buffer requirement		1.25%
66	of which: bank specific countercyclical buffer requirement
67	of which: D-SIB/G-SIB buffer requirement
68	Common Equity Tier 1 available to meet buffers (as a percentage of risk weighted assets		2.21
	National minima (if different from Basel III)
69	National Common Equity Tier 1 minimum ratio (if different from Basel 3 minimum)		8.250
70	National Tier 1 minimum ratio (if different from Basel 3 minimum)		10.250
71	National total capital minimum ratio (if different from Basel 3 minimum)		12.250
	Amounts below the thresholds for deduction (before risk weighting)
72	Non-significant investments in the capital of other financials		-
73	Significant investments in the common stock of financials		-
74	Mortgage servicing rights (net of related tax liability)		-
75	Deferred tax assets arising from temporary differences (net of related tax liability)		-
	Applicable caps on the inclusion of provisions in Tier 2
76	Provisions eligible for inclusion in Tier 2 in respect of exposures subject to standardised		17,204
	approach (prior to application of cap)
77	Cap on inclusion of provisions in Tier 2 under standardised approach		33,761
78	Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal ratings-		-
	based approach (prior to application of cap)
79	Cap for inclusion of provisions in Tier 2 under internal ratings-based approach		-
	Capital instruments subject to phase-out arrangements (only applicable between 1 Jan 2018 and 1 Jan 2022)
80	Current cap on CET1 instruments subject to phase out arrangements		-
81	Amount excluded from CET1 due to cap (excess over cap after redemptions and		-
	maturities)
82	Current cap on AT1 instruments subject to phase out arrangements		-
83	Amount excluded from AT1 due to cap (excess over cap after redemptions and maturities)		-
84	Current cap on T2 instruments subject to phase out arrangements		-
85	Amount excluded from T2 due to cap (excess over cap after redemptions and maturities)		-

SOHAR INTERNATIONAL SAOG

RECONCILIATION TEMPLATE - AS OF Jun'21

Step 1 :	( RO '000 )
Balance sheet as in	Under regulatory
published financial	scope of consolidation
statements

As at Jun'21		As at Jun'21
Assets
Cash and balances with Central Bank of Oman	118,408	180,774
Certificates of deposit	-	-
Due from banks	154,392	92,022
Loans and advances	2,525,829	2,525,829
Investments in securities	1,020,539	1,020,539
Loans and advances to banks	-	-
Property and equipment	49,626	49,626
Deferred tax assets	-	-
Other assets	162,311	162,315
Total assets	4,031,105	4,031,105
Liabilities
Due to banks	969,869	969,869
Customer deposits	2,304,001	2,304,001
Certificates of deposit	509	509
Current and deferred tax liabilities	-	-
Other liabilities	181,037	181,037
Subordinated Debts	35,385	35,385
Compulsory Convertible bonds	-	-
Total liabilities	3,490,801	3,490,801
Shareholders' Equity
Paid-up share capital	245,355	245,355
Share premium	18,038	18,038
Legal reserve	30,520	30,520
General reserve	988	988
Retained earnings	21,095	21,095
Cumulative changes in fair value of investments	(2,156)	(2,156)
Subordinated debt reserve	21,000	21,000
Impairment reserve	5,464	5,464
Special Reserve	-	-
Perpetual Tier 1 Capital Securities	200,000	200,000
Total shareholders' equity	540,304	540,304
Total liability and shareholders' funds	4,031,105	4,031,105

SOHAR INTERNATIONAL SAOG

RECONCILIATION TEMPLATE - AS OF Jun'21

Step 2 :

		( RO '000 )
	Balance sheet as in	Under regulatory	Reference
	published financial	scope
	statements	of consolidation
	As at Jun'21	As at Jun'21
Assets
Cash and balances with CBO	118,408	180,774
Balance with banks and money at call and short notice	154,392	92,022
Investments :	1,020,539	1,020,539
Of which Held to Maturity	336,912	336,912
Out of investments in Held to
Maturity:
Investments in subsidiaries	NA	NA
Investments in Associates and	NA	NA
Joint Ventures
Of which Available for Sale	589,494	589,494
	NA	NA
Out of investments in Available for Sale :
Investments in Subsidiaries
Investments in Associates and	NA	NA
Joint Ventures
Held for Trading	94,133	94,133
Loans and advances	2,525,829	2,525,829
Of which :
Loans and advances to domestic	-	-
banks
Loans and advances to non-resident	-	-
banks
Loans and advances to domestic	2,134,655	2,134,655
customers
Loans and advances to non-resident		-
Customers for domestic operations
Loans and advances to non-resident	5,604	5,604
Customers for operations abroad
Loans and advances to SMEs	103,574	103,574
Financing from Islamic banking window	281,996	281,996
Fixed assets	49,626	49,626
Other assets	162,311	162,315
of which:
Goodwill and intangible assets
Out of which:
goodwill	-	-
Other intangibles (excluding	-	-
MSRs)
Deferred tax assets	-	-
Goodwill on consolidation	-	-
Debit balance in Profit & Loss	-	-
account
Total Assets	4,031,105	4,031,105
Capital & Liabilities
Paid-up Capital	263,393	263,393
Of which:
Amount eligible for CET1	263,393	263,393
Amount eligible for AT1	200,000	200,000
Reserves & Surplus	76,911	76,911
Out of which
Retained earnings*	21,095	21,095	b
Other Reserves	57,972	57,972
Cumulative changes in fair value of investments	(2,156)	(2,156)
Out of which :
Losses from fair value of investments		-	a
Gains from fair value of investments		-
Haircut of 55% on Gains		-
Total Capital	340,304	340,304
Deposits :	2,304,001	2,304,001
Of which:
Deposits from banks	-	-
Customer deposits	2,004,399	2,004,399
Deposits of Islamic Banking window	299,602	299,602
Other deposits(please specify)	-	-
Borrowings	970,378	970,378
Of which: From CBO	-	-
From banks	969,869	969,869
From other institutions &	509	509
agencies
Borrowings in the form of bonds, Debentures and sukuks	-	-
Others (Subordinated debt)	35,385	35,385
Other liabilities & provisions**	181,037	181,037
Of which:
Out of which : DTLs related to Investments		-
Out of which : DTAs related to Investments		-
Out of which : DTLs related to Fixed Assets		-
DTLs related to goodwill	-	-
DTLs related to intangible assets	-	-
TOTAL	3,831,105	3,831,105

SOHAR INTERNATIONAL SAOG

RECONCILIATION TEMPLATE - AS OF Jun'21

Step 3 :

Common Equity Tier 1 capital: instruments and reserves
		Component of regulatory	Source based on reference
		capital reported by bank	numbers/letters of the balance
			sheet under the regulatory scope of
			consolidation from step 2
1	Directly issued	263,393
	qualifying common share (and equivalent
	for non- joint stock companies) capital plus
	related stock surplus	5,894
2	Retained earnings	b
3	Accumulated other comprehensive income	52,508
	(and other reserves)
4	Directly issued capital subject to phase out	-
	from
	CET1 (only applicable to non-joint stock
	companies)
5	Common share capital issued by subsidiaries	-
	and held by third parties (amount allowed in
	group CET1)	321,795
6	Common Equity Tier 1
	capital before regulatory adjustments
7	Prudential valuation	-
	adjustments
8	Goodwill (net of related tax liability)	-
9	Losses from fair value of investments	(2,156)	a
10	DTA related to Investments	-
11	Common Equity Tier 1	319,639
	capital (CET1)