‎“SHL” profits decreased to SR96 mln during 2022, by 7%‎

The net profit after zakat and tax of Saudi Home Loans Co. (SHL) decreased to 96 million riyals during the year 2022 AD, compared to 103 million riyals in the year 2021 AD, by 7%. This came after today’s announcement of the annual financial results ending on 12-31-2022.

Net income from special commissions / financing and investments amounted to 168 million riyals during the year ending in 2022, compared to 190 million riyals in the previous year, a decline of 12%.

As for the total operational expenses before provision for credit losses and other losses, it amounted to 223 million riyals in the current year, compared to 181 million riyals in the previous year, an increase of 23%.

Earnings per share in the current year amounted to 0.96 riyals, compared to 1.03 riyals in the previous year.

The company achieved a net profit of 95.9 million riyals for the year 2022, compared to 103.2 million riyals for the previous year 2021, a decrease of 7%. The main reason for this is the decrease in financing revenues and the high cost of borrowing. This decrease was offset by an increase in other operating income as a result of the profit realized from financial derivatives, in addition to the reversal of the provision for expected credit losses and the income tax recovered from previous years.

The company said that some of the comparative figures for some of the balances of the previous year were reclassified in accordance with the requirements of International Accounting Standard No. 1 and International Accounting Standard No. 8, where the payments made to real estate owners, the income tax paid in advance, and the cash withheld by banks in the balance sheet were reclassified. Classification of insurance expenses on the portfolio and evaluation expenses from general and administrative expenses to direct costs in the income statement and contract construction expenses from general and administrative expenses to total revenues in the income statement.

The company confirmed that it is not currently engaged in any activity to receive deposits, and therefore customer deposits do not apply.

The amount of net special commission income represents the difference between total commission income (total operating income), borrowing costs, and direct costs.