| For the years ended December 31, 2012 and 2011 | 2012 | 2011 |
| (SR '000) | (SR '000) | |
CASH FLOWS FROM OPERATING ACTIVITIES |
||
| Net income | 7,884,706 | 7,378,268 |
Adjustments to reconcile net income to net cash provided by operating activities: |
||
| Depreciation and amortization | 401,699 | 407,815 |
| Gain on disposal of property and equipment | (4,392) | (6,444) |
| Impairment charge for financing and other | 2,319,167 | 1,645,142 |
| Expenses of employees' share plan | 5,011 | - |
Net (increase) decrease in operating assets: |
||
| Statutory deposit with SAMA (Note 4) | (1,596,695) | (1,317,189) |
| Due from banks and other financial institutions | (2,952,816) | (4,711,939) |
| Financing | (33,925,076) | (21,925,999) |
| Investments held as FVIS | 651,607 | (659,262) |
| Customer debit current accounts | 83,803 | (83,879) |
| Other assets, net | (493,010) | (366,882) |
Net increase (decrease) in operating liabilities: |
||
| Due to banks and other financial institutions | (482,379) | (1,636,894) |
| Customer deposits | 43,609,964 | 33,608,922 |
| Other liabilities | 509,175 | 747,206 |
Net cash provided by operating activities |
16,010,764 | 13,078,865 |
CASH FLOWS FROM INVESTING ACTIVITIES |
||
| Purchase of property and equipment | (600,391) | (643,196) |
| Investments recorded at amortized cost | (2,751,453) | (9,926,444) |
| Proceeds from disposal of property and equipment | 8,626 | 13,166 |
Net cash used in investing activities |
(3,343,218) | (10,556,474) |
CASH FLOWS FROM FINANCING ACTIVITIES |
||
| Dividends paid | (4,875,000) | (4,125,000) |
Net cash used in financing activities |
(4,875,000) | (4,125,000) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
7,792,546 | (1,602,609) |
| Cash and cash equivalents at the beginning of year | 18,622,071 | 20,224,680 |
CASH AND CASH EQUIVALENTS AT THE END OF YEAR (Note 23) |
26,414,617 | 18,622,071 |
The accompanying notes from 1 to 37 form an integral part of these consolidated financial statements.