‎“Saudi Investment Bank” profits jumped 42.5% during Q1, to SR ‎‎409 mln

The net profit after zakat and tax of The Saudi Investment Bank jumped to 409 million riyals during the first quarter, compared to 287 million riyals in the same quarter of last year, by 42.5%. This came after today’s announcement of the preliminary financial results for the period ending on 03-31-2023. (3 months).

Operational profit amounted to 959.6 million riyals in the first quarter, compared to 717 million riyals in the same quarter of the previous year, with a growth of 34%.

As for the net income from special commissions / financing and investments, it amounted to 842 million riyals in the first quarter, compared to 589.2 million riyals in the same quarter of the previous year, an increase of 43%.

Earnings per share in the current period amounted to 0.39 riyals, compared to 0.27 riyals in the same period last year.

Net profit increased by 42.5% as a result of the increase in total operating income.

Total operational income increased by 33.8%, mainly due to the increase in net special commission income, foreign currency exchange gains, fair value through profit and loss and gains on disposal of debt securities, which are listed at their fair value through other comprehensive income items, offset by a decrease in Fee income from banking services

Total operating expenses increased by 31.3%, mainly as a result of the increase in other general and administrative expenses, provisions for credit and other losses, salaries and expenses for employees, and depreciation and amortization, offset by a decrease in rent and building expenses.

Net profit increased by 16.8% as a result of the increase in total operating income and the decrease in total operating expenses.

Total operating income increased by 4.6%, mainly due to the increase in net special commission income, fee income from banking services, and gains on disposal of debt securities which are stated at their fair value through other comprehensive income items, offset by a decrease in foreign exchange earnings.

Total operational expenses decreased by 20.7%, mainly as a result of the decrease in provisions for credit losses and other losses, salaries and expenses of employees, offset by an increase in other general and administrative expenses, depreciation and amortization, rent and building expenses.

The management said that some comparative period figures have been reclassified to conform with the current period’s classifications.

The earnings per share for the three months ended March 31, 2023 and 2022, were 0.39 and 0.27 Saudi riyals, respectively, which was calculated by dividing the adjusted net profit after the cost of the first tranche sukuk by 1,000 million shares, which represents the average of the issued and outstanding shares.

Average shares outstanding has been adjusted retrospectively for the prior period to reflect the effect of changes in the number of shares due to bonus shares issued.