SABB profits increase to SR1.39 bln during Q3, by 58%

The Saudi British Bank “SABB” announced an increase in net profit before zakat and tax during the third quarter to SR1.39 billion, compared to SR886 million in the same quarter of last year, by 58%,
This came after today’s announcement of the preliminary financial results for the period ending in 2022-09 -30 (nine months).
Gross operational profit in the third quarter amounted to SR2.5 billion, compared to SR1.9 billion in the same quarter of the previous year, an increase of 32.5%.
The bank’s net profit during the 9-month period amounted to SR4.1 billion, compared to SR3.3 billion in the same period of the previous year, a growth of 23.5%.
The gross equity “without minority rights” amounted to SR53.3 billion in the current period, compared to SR52.4 billion in the same period last year, an increase of 1.5%.
Profits per share in the current period reached SR1.7, compared to SR1.35 in the same period last year.
The net profit was higher by SR512 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 Zakat and income tax, total operating expenses and provision for expected credit losses.
Gross operational income increased mainly due to an increase in net special commission income. In addition but to a lesser extent, exchange income and income from FVSI financial instruments also drove an increase. These factors were, partially offset by a decrease in net fee and commission income; gain on FVOCI debt instruments and other operating income / (loss).
Gross operational expenses increased due to an increase in general and administrative expenses partially offset by a decrease in depreciation and amortization expenses, salaries and employee related expenses and rent and premises related expenses.
Net profit was higher by SR316 million driven mainly due to higher total operating income coupled with lower provision for expected credit losses, partially offset by an increase in provision for Zakat and income tax, total operating expenses and lower share in earnings of associate.
Gross operational income increased mainly due to an increase in net special commission income. In addition but to a lesser extent, net exchange income and income from FVSI financial instruments also contributed to an increase. These factors were, partially offset by a decrease in net fee and commission income, other operating income / (loss).
Gross operational expenses increased slightly due to an increase in salaries and employee related expenses and depreciation and amortization expenses, partially offset by a decrease in general and administrative expenses.
The net profit was higher by SR709 million compare to similar period last year, largely 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 total operating expenses, provision for expected credit losses and provision for Zakat and income tax.
Gross operational income increased mainly due to an increase in net special commission income. In addition but to a lesser extent, income from FVSI financial instruments, exchange income, net fee and commission income and gains on non-FVSI financial instruments also contributed to an increase. This was partially offset by a decrease in gains on FVOCI debt instruments, other operating income / (loss) and dividend income.
Gross operational 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.
Certain prior period figures have been re-classified to be aligned with the presentation in the current period.
Gross operational expenses for the nine month period ended 30 September 2022 were SR 2,790 million, as compared to SR 2,588 million in the same period of last year. Total operating expenses for the three month period ended 30 September 2022 were SR 938 million, as compared to SR 902 million in the same quarter of the last year, and as compared to SR 932 million in the previous quarter.
Provision for expected credit losses for the nine month period ended 30 September 2022 was SR 233 million, as compared to SR 40 million in the same period of last year. Provision for expected credit losses for the three month period ended 30 September 2022 was SR 38 million, as compared to SR 13 million in the same period of last year, and as compared to SR 136 million in the previous quarter.
Provision for Zakat and income tax for the nine month period ended 30 September 2022 amounted to SR 597 million, as compared to SR 529 million in the same period of last year. Provision for Zakat and income tax for the three month period ended 30 September 2022 amounted to SR 231 million, as compared to SR 150 million in the corresponding period of last year, and as compared to SR 203 million in the previous quarter.
Profits per share for the nine month period ended 30 September 2022 and 30 September 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 and nine month period ended 30 September 2022 and 30 September 2021.