Arab National Bank profits increase to SAR 4.07 billion by end of 2023 by 33%

Arab National Bank net profit surged to SAR 4.07 billion for the current year, marking a remarkable 33% increase from the previous year’s figure of SAR 3.07 billion. This notable growth follows Tuesday’s announcement of the annual financial results for the period ending on December 31, 2023.

The bank’s total profit from operations for the current year reached SAR 8.56 billion, showcasing a substantial rise of 25% compared to the preceding year’s total of SAR 6.86 billion.

In terms of net special commission income from financing, the bank recorded a significant increase, reaching SAR 5.44 billion in the current year, compared to SAR 4.63 billion in the previous year, representing a notable uptick of 17.5%.

Moreover, earnings per share for the current year stood at SAR 2.71, demonstrating a considerable improvement from the figure of SAR 2.05 reported in the previous year.

Increase in net special commission income by 26.6% is due to increase in net loans and advances portfolio by 5.8% and increase in net investments portfolio by 13.8% in addition to the increase in interest rates.

Net income before Zakat and Income tax increased by 30.7% compared to the last year. This increase is mainly due to increases in net special commission income, net gains on sale of investments in non-trading instruments, net fees and commission income and other operating income.

Offset by the increases in other general and administrative expenses, salaries and employee related expenses, depreciation and amortisation, premises related expenses, net impairment charge for expected credit losses and other provisions, and decreases in net exchange income, net gains on FVSI financial instruments, dividend income and net trading income.

The notable increase in the total allowance (reverse entry) for expected credit losses and other losses, net, observed during the current year compared to the previous year can be predominantly attributed to the heightened allowance for impairment of other owned real estate.

The auditor’s report for this financial statement is an unmodified opinion.

The Banks stated that certain prior year figures have been reclassified to conform with current year presentation, which are not material in nature to the consolidated financial statements.

Moreover, basic and diluted earnings per share for the years ended December 31, 2023 and 2022 are calculated by dividing the net income for the years attributable to the equity holders of the Bank by 1,500 million shares. The diluted earnings per share is the same as the basic earnings per share.