Riyad Bank writes off SR919.9 mln non-performing loans in a ‎year

Riyad Bank revealed that the provisions set aside by the bank for non-performing loans (non-performing) last year increased to 1027.4 million riyals, a rate of 20.8% from what was set aside by the end of the year 2021, which amounted to 850.8 million riyals.

According to the bank’s financial statements, which are published on “Tadawul”, the debts that the bank wrote off against non-performing loans during the past year amounted to 919.9 million riyals, an increase of 34.7%, compared to the amounts that the bank executed in 2021, which were 683.2 million riyals.

The increase in provisions set aside by Riyad Bank during the year 2022, compared to levels in 2021, is mainly due to setting aside provisions for the individual sector at a value of 295.2 million riyals, compared to recovering 65.8 million riyals from provisions set aside for the sector in the previous year, while provisions for the corporate sector declined. To 727.7 million riyals, or 20.8%, for the sector’s allocations for the year 2021, which were SR 919.3 million.

According to the bank’s annual results, the bank’s net loan portfolio increased during the year 2022 to about 242.4 billion riyals, by 11.5%, compared to 2021, which was 217.3 billion riyals.

On the other hand, the balance of the bank’s cumulative credit provision amounted to 4.75 billion riyals by the end of 2022, and non-performing loans (non-performing) amounted to 4.244 billion riyals, so that the coverage rate for non-performing loans reached 112%.

It is noteworthy that the bank’s profits rose to 7 billion riyals by the end of the year 2022, by 16.5% over the previous year’s profits, which were 6 billion riyals.

The bank attributed the increase in net income by 16.5% mainly to the growth of total operating income, partially offset by an increase in total operating expenses.

The increase in total operating income is mainly due to the increase in net special commission income, net fee and commission income, and net foreign exchange income, partially offset by a decrease in net gains from selling investments held for non-trading purposes, and dividends.

The increase in total operating expenses is mainly due to the increase in the net provision for impairment in the value of investments, the net provision for impairment of credit losses and other financial assets, other general and administrative expenses, employee salaries and the like.