Saudi Holland Bank
The article chose is “HRM Context: Saudi Culture, “Wasta” and Employee Recruitment Post-Positivist Methodological Approach, the Case of Saudi Arabia”. It discusses issue of nepotism and its likely influence on the recruitment of professionals in the Saudi Arabian banking industries, among the mentioned banks during study is the Saudi Holland bank .it showed that nepotism does not affect hiring in the banking sector.
The services offered by Saudi Holland bank include
- Personal banking
- Credit cards, savings and investments, home finance, personal finance and E-banking
- Business banking
- Shari’ah accounts, business accounts, business finance, cash management, business credit cards, treasury solutions, trade finance solutions and electronic banking
- Corporate banking
- Corporate products: Shari’ah compliant, structured finance, structured solutions, central treasury division, murabaha investment and correspondent banking
- Corporate E-banking, structured finance, global trade services and insurance
Bupa offers health insurance to large and small companies, expatriate residents, families and other financial products for home citizens. The two companies in that they both offer financial products which are aimed at helping customer during the time of need. The two companies target individuals and business, this is evidence by the attractive products and plans to suit both the businesses and individual person.
The only similarity is that both the products deal with the benefit of investing or saving for the uncertainties in future. Another similarity is that they both target companies and individuals. The difference comes in their different industries; Saudi Holland bank is in the banking industry and Bupa in insurance industry. The bank has a subsidiary insurance company called Wetania insurance company and has the full ownership of Saudi Holland insurance agency. Through this company, Saudi Holland bank offer services which rivals the services offered by Bupa in Saudi Arabia.
Although Saudi Holland owns other companies, it also offers services to customers and therefore it cannot be term as a holding company. It however qualifies as a branching organization because it is associated with other companies.
C + S + L + MA = D + NDB + EC
Where by C=cash assets (96,619,000)
S= Security holdings (18,783,967)
L=Loans (65,147,828)
MA= Miscellaneous Assets (2,085,990)
D= Deposits (76,813,386)
NDP=No deposit borrowing (3,054,640)
EC=Equity capital (21,007,936)
The bank’s interest income considers the savings, deposit by customers and other institutions. Customers’ deposits include SAR 967 million (2013: SAR 713 million) of margins held for irrevocable commitments and non commission based deposits amounting to SAR 31 billion (2013: SAR 25 billion). The interest income was accrued from the special commission available for sale, commissions available for sale, advances and loans, money due to other banks and financial institutions.
The total income commission was 952,230,000 for the year 2014 and it included income earner from credit card products, trade finance, corporate finance and advisory as well as the fund management and brokerage. The bank had income of 166,168,000 whereby foreign exchange was 96, 292, 000, derivatives was 69,649,000 and others 236,000. This therefore means that the bank made a total interest income of 20, 062,000 for the year 2014.
Interest expenses includes the debt the company owes other businesses, customer deposits, subordinated debt and negative value of the derivatives.
SAUDI HOLLANDI BANK ANNUAL REPORT
14. SUBORDINATED DEBT
Subordinated debt represents the following debt securities:
Issued on December 12, 2013:
The Group issued SAR 2,500 million unsecured subordinated Tier II Sukuk which are due in 2023. The Group has the option, subject to the prior written approval of SAMA, to redeem these Sukuk at their redemption amount in December 2018 or in the event of certain changes affecting the taxation and regulatory capital treatment of these Sukuk. The commission rate paid on the above averaged 6 months SIBOR plus 155 basis points (2013: 6 months SIBOR plus 155 basis points).
Issued on November 26, 2012:
The Group issued SAR 1,400 million unsecured subordinated Tier II Sukuk which are due in 2019. The Group has the option, subject to the prior written approval of SAMA, to redeem these Sukuk at their redemption amount in November 2017 or in the event of certain changes affecting the taxation and regulatory capital treatment of these Sukuk. The commission rate paid on the above averaged 6 months SIBOR plus 115 basis points (2013: 6 months SIBOR plus 115 basis point).
Issued on December 30, 2009:
The Group issued SAR 725 million unsecured subordinated Sukuk”Mudaraba Certificates”, which were due in 2019 with an option to call at the end of five years (2014). The Group exercised the option of early redemption of these certificates at their redemption amount in December 2014. The commission rate paid on the above averaged 6 months SIBOR plus 190 basis points (2013: 6 months SIBOR plus 190 basis points). All the required approvals from regulatory authorities were obtained for the purpose of redemptions. The Group has not defaulted on any principal or commission repayments and there have been no breaches with regard to any of these liabilities during 2014 or 2013
My Role as an Individual
Role is to discuss the Saudi Holland bank and a competing company, Bupa. Next is to look at the financial statement and draw the attention of other class members to specific areas in the statement. I should also work close with other group members to come up with relevant questions and answers which might help the group and class advance their knowledge on the topic.