SABB reports SR1bln in 1Q, 3.5% advance

Saudi British Bank announced that its profits after zakat and tax rose 3.5% to SR 1 billion during the first quarter of the year 2022 compared to SR 970 million during the same period of 2021.

This came after Saudi British Bank announcement on Tuesday of the preliminary financial results for the period ending on 31.03.2022 (three months).

Total Operation Profit of the bank surged 4.4% to SR 2.11 billion during the (January – March) period compared to SR 2.02 billion in the same period of the last year.

Moreover, the bank’s profit per share (EPS) rose to SR 0.49 from SR 0.47.

The net income before Zakat and income tax for the period ended 31 March 2022, was higher by SAR 27 million, primarily driven by higher total operating income and further contributed by an increase in share in earnings of associates. This was partially offset by an increase in provision for expected credit losses and total operating expenses.

Total operating income increased mainly due to an increase in exchange income, income from FVSI financial instruments, fee and commission income and gains on non-FVSI financial instruments, partially offset by a decrease in other operating income and gains on FVOCI debt instruments.

Total operating expenses increased largely due to an increase in general and administrative expenses and salaries and employee related expenses, partially offset by a decrease in depreciation and amortization expenses and rent and premises related expenses.

Increase in net profit was primarily driven by a lower provision for expected credit losses, total operating expenses and an increase in total operating income and share in earnings of associates. This was partially offset by a marginal decrease in net special commission income.

Total operating income increased mainly due an increase in fee and commission income, income from FVSI financial instruments, other operating income and exchange income. This was partially offset by a decrease in gains on non-FVSI financial instruments and lower net special income.

Total operating expenses decreased mainly due to lower salaries and employee related expenses, depreciation and amortization expenses and rent and premises related expenses, partially offset by an increase in general and administrative expenses.

Additional Information:

Total operating expenses for the three month period ended 31 March 2022 were SAR 940 million, as compared to SAR 907 million in the corresponding period of last year, and as compared to SAR 1,026 million in the previous quarter.

Provision for expected credit losses for the three month period ended 31 March 2022 was SAR 60 million, as compared to SAR 2 million in the corresponding period of last year, and as compared to SAR 414 million in the previous quarter.

Provision for Zakat and income tax for the three month period ended 31 March 2022 amounted to SAR 163 million, as compared to SAR 167 million in the corresponding period of last year, and as compared to SAR 168 million in the previous quarter.

Earnings per share for the three month period ended 31 March 2022 and 31 March 2021 are calculated by dividing the net income after Zakat and income tax attributable to equity holders of the Bank by 2,055 million weighted average number of shares outstanding during the three month period ended 31 March 2022 and 31 March 2021.