SABB Bank records net profit of SR3.2 billion at end of 2021

The Saudi British Bank “SABB” recorded a net profit of SR3.2 billion during the year 2021, compared to a loss of SR4.16 billion riyals during the year before last.

This came after SABB announces its annual financial results for the period ending on 2021-12-31.

The total operating profit during the current period amounted to 7.9 billion riyals, compared to 8.8 billion riyals during the same period last year, down 11%.

As for the net income of special commissions / financing and investments during the current period, it amounted to 5.7 billion riyals, compared to 6.8 billion riyals during the same period of the previous year, a decrease of 17%.

Earnings per share during the current period amounted to 1.56 riyals, compared to a loss of 2.02 riyals during the same period last year.

The net income before Zakat and income tax for the year ended 31 December 2021, was higher by SAR 787 million, after setting aside the one-off impact of the Goodwill impairment (SAR 7,418 million) recorded last year, primarily driven by lower provision for expected credit losses and total operating expenses and further contributed by an increase in share in earnings of associates. This was partially offset by a decrease in total operating income mainly driven by lower net special income by 17%.

Total operating income decreased during the year due to lower net special commission income, fee and commission income and dividend income, partially offset by higher other operating income, exchange income, gain on non-FVSI financial instruments and gain on FVOCI debt instruments. Special commission income was lower during the year largely due to decreases in the benchmark rate in 1Q20. Strong volume growth during the year 2021 helped to offset the impact of the margin compression.

Total operating expenses decreased from continued success in efficiency creation in terms of cost reduction.