SHL Profits Increase to SR32.4 mln during 1Q, by 10%

The Saudi Home Loans Company (SHL) announced on Sunday an increase in net profit after zakat and tax to SR32.4 million during the first quarter, compared to SR29.5 million during the same quarter of the previous year by 10%.

This came after SHL announcement on Sunday the consolidated preliminary financial results for the period ending on 31.03.2022 (three months).

Gross operational profit amounted to SR56.9 million during the first quarter, compared to SR57 million during the same quarter of the previous year, down 0.5%.

The gross income from special commissions/financing and investments amounted to SR75.9 million during the first quarter, compared to SR76 million during the same quarter of the previous year, down by 0.07%.

Profits per share during the current period amounted to SR0.32, compared to SR0.29 during the same period of the previous year.

The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is:

Net profit of the company is SR 32.4 million compared to SR 29.5 million for the same period last year with increase of 9.8%, the reason for the increase is due to recognized gain from the increase in the fair value of the financial derivatives (Hedging) against future interest cost changes.

The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is:

Net profit after Zakat for the current quarter increased by SR 12.3 million (61%) compared with last quarter, the main reason of this increase is due recognized gain from the increase in the fair value of the financial derivatives related to the hedging arrangements against future interest cost changes, in addition to the reversal of credit loss provision.

The company did not receive any Deposit taking is this period and therefore it is not applicable.

Expected credit loss provision as end of 31 March 2022 is SR 55 million compared to SR77.9 million for the same period last year with a decrease of 41.6%.

Net income from special commission amount represents the difference between total income from special commission and the finance charge amount.