‎“SAB” profits jumped 43% during Q2, to 1.55 billion riyals‎

Net profit after zakat and tax for Saudi Alawwal Bank jumped to 1.55 billion riyals during the second quarter, compared to 1.08 billion riyals in the same quarter of last year, by 43%. This came after today’s announcement of the preliminary financial results for the period ending on June 30, 2023. (6 months).

The total operating profit amounted to 3.06 billion riyals in the second quarter, compared to 2.24 billion riyals in the same quarter of the previous year, an increase of 37%.

As for net income from special commissions / financing and investments, it amounted to 2.52 billion riyals in the second quarter, compared to 1.7 billion riyals in the same quarter of the previous year, an increase of 47%.

The net profit amounted to 3.3 billion riyals in the current period, compared to 2.08 billion riyals in the same quarter of the previous year, an increase of 59%.

Earnings per share in the current period amounted to 1.61 riyals, compared to 1.02 riyals in the same period last year.

The reason for the increase in net profit during the current quarter compared to the same quarter of the previous year is due to the increase in net income by about 468 million Saudi riyals, mainly due to the increase in total operating income. This was partly offset by an increase in the provision for zakat and income tax, including zakat provisions for previous years and total operating expenses.

The reason for the increase in total operating income is due to the increase in net special commission income, currency exchange income, and net fee and commission income. This was partly offset by a decrease in the income of financial instruments listed at fair value through income statement and net income from other operations.

Total operating expenses increased, mainly due to the increase in employee salaries and expenses, in addition to general and administrative expenses.

The reason for the (decrease) in the net profit during the current quarter compared to the previous quarter is due to the decrease in net income by about 215 million riyals, mainly due to the increase in the provision for zakat and income tax, which includes a provision for zakat related to previous years, in addition to the decrease in total operating income. This was partly offset by a decrease in the expected credit losses provision and total operating expenses.

Total operating income decreased, mainly due to lower income from financial instruments listed at fair value through income statement.

Total operating expenses decreased, mainly due to a decrease in general and administrative expenses.

The reason for the increase in net profit during the current period compared to the same period of the previous year is due to an increase in net income by about 1,228 million Saudi riyals, mainly due to the increase in total operating income, and this was offset by an increase in the provision for zakat and income tax that includes a provision for zakat Relates to previous years, total operating expenses, and provision for expected credit losses

The reason for the increase in total operating income is mainly due to the increase in net special commission income, income from financial instruments listed at fair value through income statement, currency exchange income and net fee and commission income. This was offset by a partial increase in the losses of investments not held at fair value through the income statement and a decrease in net income from other operations.

Total operating expenses increased mainly as a result of the increase in employee salaries and expenses, general and administrative expenses, rent and buildings expenses, partially offset by a decrease in depreciation and amortization expenses.

The bank’s management said that some of the previous period’s numbers have been reclassified to conform to the current period’s numbers

Earnings per share for the six-month periods ending on June 30, 2023 and June 30, 2022 are calculated by dividing the net income after zakat and income tax attributable to the bank’s shareholders by 2.055 million, the weighted average number of outstanding shares during the three and six-month period ending on June 30, 2023 and 30 June 2022.