The Saudi Investment Bank reports profit rise of 11% to SR320.7 mln in 2Q

The Saudi Investment Bank announced that its profits after zakat and tax rose 11.4% to SR 320.7 million in the second quarter of 2022 compared to SR 287.8 million during the same period of 2021.

This came after The Saudi Investment Bank announcement on Thursday of the preliminary financial results for the period ending on 30.06.2022 (six months).

The bank’s operational profits rose 7.7% to SR 772.5 million in the 2^nd quarter of the current year from SR 716 million in the same period of the previous year.

The Saudi Investment recorded profit per share at SR 0.56 rising from SR 0.48.

Net profit increased by 11.4% due to an increase in total operating income and a decrease in total operating expenses.

Total operating income increased by 7.8% primarily due to an increase in net special commission income, fair value through profit and loss and exchange income, which was offset by a decrease in gains on disposals of FVOCI debt securities, fee income from banking services and other income.

Total operating expenses decreased by 4.6% primarily due to a decrease in provisions for credit and other losses and rent and premises related expenses, which was offset by an increase in other general and administrative expenses, salaries and employee-related expenses and depreciation and amortization.

Net profit increased by 11.7% due to an increase in total operating income.

Total operating income increased by 7.1% primarily due to an increase in net special commission income, exchange income and fair value through profit and loss, which was offset by a decrease in fee income from banking services and gains on disposals of FVOCI debt securities.

Total operating expenses increased by 1.7% primarily due to an increase in provisions for credit and other losses, other general and administrative expenses and depreciation and amortization, which was offset by a decrease in rent and premises related expenses and salaries and employee-related expenses.

Net profit increased by 21.2% due to an increase in total operating income and a decrease in total operating expenses.

Total operating income increased by 10.4% primarily due to an increase in net special commission income, fair value through profit and loss and exchange income, which was offset by a decrease in gains on disposals of FVOCI debt securities, other income and fee income from banking services.

Total operating expenses decreased by 0.8% primarily due to a decrease in provisions for credit and other losses, which was offset by an increase in other general and administrative expenses, salaries and employee-related expenses, rent and premises related expenses and depreciation and amortization.

Additional Information:

Earnings per share for the six month period ended June 30, 2022 and 2021 was SAR 0.56 and 0.48 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.