SAIB Profits Increase to SR287 mln during 1Q, by 34%

The net profit after zakat and tax for the Saudi Investment Bank (SAIB) increased to SR287 million during the first quarter, compared to SR214 million during the same quarter of the previous year, at a rate of 34%.

This came after SAIB announcement on Wednesday of the consolidated preliminary financial results for the period ending on March 31, 2022 (3 months).

The gross operational profit amounted to SR721 million during the first quarter, compared to SR635 million during the same quarter of the previous year, an increase of 14%.

Assets amounted to SR109 million during the current period, compared to SR96 million during the same period of the previous year, an increase of 13%.

Profits per share during the current period amounted to SR0.27, compared to SR0.21 during the same period of the previous year.

Net profit increased by 34.4% due to an increase in gross operational income.

The gross operational income increased by 13.6% primarily due to an increase in net special commission income, fair value through profit and loss, gains on disposals of FVOCI debt securities, fee income from banking services and exchange income, which was offset by a decrease in other income.

The gross operational expenses increased by 3.8% primarily due to an increase in other general and administrative expenses, salaries and employee-related expenses, rent and premises related expenses and depreciation and amortization, which was offset by a decrease in provisions for credit and other losses.

Net profit increased by 0.3% due to a decrease in gross operational expenses.

The gross operational income decreased by 0.9% primarily due to a decrease in net special commission income, gains on disposals of FVOCI debt securities, exchange income and other income, which was offset by an increase in fair value through profit and loss and fee income from banking services.

The gross operational expenses decreased by 5.6% primarily due to a decrease in salaries and employee-related expenses, other general and administrative expenses and depreciation and amortization, which was offset by an increase in rent and premises related expenses.

Profits per share for the three month period ended March 31, 2022 and March 31, 2021 was SR 0.27 and 0.21 respectively, which was calculated by dividing net income adjusted for Tier I Sukuk costs by 1,000 million shares and 939 million shares respectively representing the weighted average of the issued and outstanding shares after giving effect to the purchase and issuance of 74.9 million treasury shares.

The weighted average number of outstanding shares have been retrospectively adjusted for prior period to reflect the effect of the changes in number of shares due to bonus element included in the treasury shares and bonus shares issued.