Banque Saudi Fransi Profits Jump 172% during the 3Q to SR907 Million

The net profit after zakat and tax for Banque Saudi Fransi jumped to SR907 million during the 3Q, compared to SR333 million during the same quarter of the year by 172%.

This came after Banque Saudi Fransi announced on Wednesday its interim financial results for the period ended September 30, 2021 (Nine Months)

The gross operational profit amounted to SR1.9 billion during the 3Q, compared to SR1.7 billion during the same quarter of the previous year, a growth of 9%.

The net profit after zakat and tax during the current period amounted to SR2.4 billion, compared to SR1.4 billion during the same period of the previous year, an increase of 69%.

Profits per share during the current period amounted to SR1.92, compared to SR1.21 during the same period of the previous year.

Net income increased mainly due to reduction in gross operational expenses by 32.4% and also due to increase in gross operational income by 9.3%.

This decrease in gross operational expenses was primarily due to lower Impairment charge for credit losses, which was partially offset by reduction in Impairment reversal for other financial assets and increase in other operational and general and administrative expenses.

Gross operational income increased mainly due to higher trading income, net special commission income as well as net fee and commission income.

Net income increased mainly due to increase in gross operational income by 9.1% while operational expenses remained flat.

This increase in gross operational income was mainly due to net special commission income and trading income.

Net income increased mainly due to reduction in gross operational expenses by 23.1% as well as increase in gross operational income by 3.7%.

This decrease in gross operational expenses was driven by lower Impairment charge for credit losses, which was partially offset by impairment charge for other financial assets and other operational and general and administrative expenses.

This increase in gross operational income was driven by higher net fee and commission income, net special commission income as well as trading income, which was partially offset by decrease in other operational income and exchange income.

Some items have been re-classified to conform to current period presentation.

EPS for the current and the previous periods are calculated by dividing the net income after zakat and income tax for the period (adjusted for Tier 1 Sukuk costs) by the weighted average number of shares outstanding after excluding treasury shares.

During Q4 2020, the Bank issued Tier 1 Sukuk amounting to SR5 billion which is included as part of gross equity.

Impairment charge for credit losses for the three months period ended 30 September 2021 was SR296 million, as compared to SR930 million in the corresponding period of last year and compared to SR 267 million for the three months ended 30 June 2021.

Impairment charge for credit losses for the nine months period ended 30 September 2021 was SR853 million, as compared to SR1,962 million in the corresponding period of last year.