Statement of Income: JD '000 Notes 2020 2019 1141 265 35 462 421 1177051 602140 774911 14667 REVENUE ARAB BANK PLC interest income Les interest Net Interest income Net commission income Net Interest and Commission Income Foreign exchange differences Gain from financial assets at far value through profit or loss Dividends from financial assets at fair value through other comprehensive come Dividends from subsidiaries and anociates Other revenue TOTAL INCOME 7 13 404 307 248 43300 2617 50411 22 4100 11 30 52142 121 253 39 19730 928790 15 1116 723 10 710010 232255 1642 11 563 13 EXPENSES Employees expenses other expenses Depreciation and amortization Provision for impairmont-ECL Other provisions TOTAL EXPENSES 40470 10 169 360 122 12385 soo sos 68 621 556 220 PROFIT FOR THE YEAR BEFORE INCOME TAX Les Income tax expense PROFIT FOR THE YEAR 22 46321 21 00 132660 423560 JD 000 2019 2020 21800 423 560 31 38 431 (8191) ARAB BANK PLC Notes Profit for the year Add: Other comprehensive income items after tax Items that will be subsequently transferred to the statement of income Exchange differences arising on the translation of foreign operations Items that will not be subsequently transferred to the statement of Income Change in fair value of financial assets at fair value through other comprehansice income 32 Net change in fait value of financial assets at fair value through other comprehensive income (Loss) from sale of finacial assets at fair value through the statement of comprehansive Income Total Other Comprehensive Income Items - After Tax TOAL COMPREHENSIVE INCOME FOR THE YEAR (2904) 41 (1022) 241 (1 882 (2001 35 527 (8150) 57327 415 410 ARAB BANK PLC Notes 7 B 9 10 12 Cash and balances with central bankes Balances with banks and financial institutions Deposits with banks and financal institutions Financial assets at fair value through profit or loss Financial derivatives positive fair value Direct credit facilities at amortized cost Financial assets at fair value through other comprehensive income Other financial assets at amortized cost Investments in subsidiaries and associates Fixed assets Others Deferred tax assets TOTAL ASSETS 31 December 2020 2019 4833 256 3752594 3498 702 3254458 3 451 154609 18657 169 020 3227 23 497 11649 462 11 926 366 154564 157 764 5078 701 5 183 740 1074381 921524 225 022 228 723 381058 440 321 138 612 96 069 27 189 093 26 328 685 ASSETS 11 13 14 15 16 17 18 19 20 1980 915 17425837 2081 052 2031064 18 483 736 1672.994 53 063 352 203 108031 42 Banks and financial institutions' deposits Customer deposits Cashmangen Financial derivatives negative fair value Borrowed funds Provision for income tax Other provisions Other abilities Deferred tax liabilities Total Liabilities 21 22 23 24 25 145 503 487 307 2 123 23 336 524 19854 181 582 157562 142582 542 562 1197 22533 443 LIABILITIES AND OWNERS' EQUITY 9 26 27 640 800 859 625 640 800 28 Share capital Share premium Statutory reserve Voluntary reserve General reserve General banking risks reserve Foreign currency translation reserve Investment revaluation reserve Retained earnings Total Shareholders' Equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 540 300 859626 640 300 614 920 583 695 108494 (159966 (2159581 29 614920 583 695 108 795 30 31 32 33 780 168 3 852 569 (198397 214946 759 949 3795 242 26 328 685 27 189 093 Question No. Eight: The Capital Asset Pricing Model (CAPM) is a tool that can be used in not only the pricing of stocks, but also in calculating the cost of equity capital. Explain the "rationale" of this model and how can one use it in in real life