Bank Al-Jazira executed 27 million non-performing loans within 6 months

The amounts written off by Bank Al-Jazira at the end of the first half of this year decreased to about 27 million riyals of debts, during the six-month period ending in June 2022, compared to writing off SR 105.5 million in the same period of the previous year, while the bank’s non-performing loans amounted to the end of June from This year, SR 1.4 billion, and the cumulative balance of the provision for credit losses amounted to SR 2.77 billion, bringing the bank’s non-performing loans coverage ratio to 196%.

On the other hand, the net financing of Bank Al-Jazira amounted to SR 65.6 billion at the end of the first 6 months of 2022, compared to SR 62.4 billion on December 31, and SR 56.9 billion in the comparable period from 2021.

The provisions set aside by Bank Al-Jazira to face non-performing (non-performing) loans during the first 6 months of this year fell to SR 133.6 million, a decrease of 57% from what was set aside in the same period last year, which was SR 310.8 million.

Moreover, the allocations of Bank Al-Jazira decreased by the end of the second quarter of this year to 39.6 million riyals, and 75% compared to the allocations for the same quarter of the previous year, which were 157.9 million riyals, which was positively reflected on the bank’s profits by 118 million riyals, and contributed to the increase in profits to 257.8 million riyals, compared to 251.2 million riyals, profits made by the bank in the second quarter of the previous year.

According to the bank’s financial statements published on the financial market website “Tadawul”, the provisions set aside for the corporate sector decreased to 126.3 million riyals by the end of the first 6 months of this year, at a rate of 59.7%, compared to the same period in 2021, which amounted to 313.3 million riyals.

It is noteworthy that the profits of Bank Al-Jazira rose to 632.7 million riyals at the end of the 6 months ending in June of this year, a rate of 10.5% over the profits of the same period of the previous year, which was 572.8 billion riyals, and the bank attributed the increase in net income by 10% mainly due to the decrease In operating expenses by 8%, and this is mainly due to the decrease in the net provision for credit losses and other operating expenses, offset by an increase in other general and administrative expenses, employee salaries and the like. As for operating income, the income increased by 1%, mainly due to the increase in other operating income, net financing and investment income, net profit on financial instruments at fair value through the income statement, net currency conversion income and income from dividends, offset by a decrease. In the net profit from the sale of financial assets at amortized cost and net income from banking services fees. This was offset by the lack of gain from partial disposal of an associate and a higher provision for zakat.