Sabb Takaful Achieve Net Profit of Sr1.7 mln during the 3Q

SABB Takaful Company achieved a net profit before zakat of SR1.77 million during the third quarter, compared to a loss of SR5.58 million during the same quarter of the previous year.

This came after SABB Takaful Co. announced on Wednesday its interim financial results for the period ending on 2021-09-30 (nine months).

As for the net profit from investments of shareholders’ funds, it amounted to SR1.68 million during the third quarter, compared to SR1.26 million during the same quarter of the previous year, an increase of 33.44%.

The net profit before zakat during the current period amounted to SR7.09 million riyals, compared to losses of SR17.49 million riyals during the same period of the previous year.

Profits per share during the current period amounted to 0.06 riyals, compared to losses of 0.63 riyals during the same period of the previous year.

The reason for net profit before Zakat/Tax for current quarter compared to the net loss for same quarter of the previous year is following:

1- An increase by SR1 million in fee and commission income in the current quarter comparing to same quarter of previous year. The fee and commission income is SR2.5 Million in current quarter comparing to SR1.5 million in same quarter of previous year.

2- A decrease in the change in unexpired risk reserve and non-unit reserve by SR11.3 million in the current quarter compared to same quarter of previous year. The change of unexpired risk reserve and non-unit reserve is SR3.8 (Reversal) million compared to SR2.5 (Reversal) million in same quarter of previous year.

3- A decrease of SR2.6 million in general and admin expenses in the current quarter comparing to same quarter of previous year. The general and admin expenses for current quarter is SR8.4 million comparing to SR11 million in same quarter of previous year

The reason for decrease in net profit before Zakat/Tax for current quarter compared to the net profit for previous quarter is following:

1- An increase by 4 million in changes in reserve for Takaful activities in the current quarter comparing to previous quarter. The changes in reserve for Takaful activities is SR5.4 million in current quarter comparing to 1.4 million in previous quarter.

2- A decrease in the change in unexpired risk reserve and non-unit reserve by SR0.6 million in the current quarter compared to previous quarter. The change of unexpired risk reserve and non-unit reserve is SR3.8 (Reversal) million compared to SR4.4 (Reversal) million in previous quarter.

The reason for net profit before Zakat/Tax for current period compared to the net loss for same period of the previous year is following:

1- An increase by SR14.2 million in net contributions earned in the current period comparing to same period of previous year. The net contributions earned are SR106.9 million in current period comparing to SR92.7 million in same period of previous year.

2- A decrease in the change in unexpired risk reserve and non-unit reserve by SR12.1 million in the current period compared to same period of previous year. The change of unexpired risk reserve and non-unit reserve is SR13.1 (Reversal) million compared to SR1 (Reversal) million in same period of previous year.

3- A decrease of SR10.5 million in general and admin expenses in the current period comparing to same period of previous year. The general and admin expenses for current period is SR26.3 million comparing to SR36.8 million in same period of previous year

“Certain of the prior year amounts have been reclassified to conform with the presentation in the current period. These changes were made for better presentation of balances and transactions in the annual/Interim financial statements of the Company.’ the company concluded.