Investment Bank profits increased to SAR 1.76 bln by the end of 2023 by 16.8%

The Saudi Investment Bank announced today, February 2024, an increase in net profit during the year ending on December 31, 2023, to SAR 1.76 bln, compared to SAR 1.50 bln last year, by 16.8%. This came after today’s announcement of the annual financial results ending on December 31, 2023.

The total profit from operations in the year ending December 31, 2023 reached 3.96 billion riyals, compared to 3.27 billion riyals in the previous year, an increase of 21%.

Total ownership rights (after excluding non-controlling interests) amounted to SAR 14.5 bln in the current year, compared to SAR 13.5 bln last year, an increase of 6.9%.

Earnings per share in the current year reached SAR 1.59, compared to SAR 1.37 last year.

– Net special commission income from financing and investment increased by 20%, mainly thanks to an increase in total income from financing and investment.

– Net profit increased by 16.8% resulting from the increase in total operating income.

Total operating income increased by 21%, resulting primarily from increases in net special commission income, fair value through profit and loss, gains on debt securities at fair value through other comprehensive income, foreign currency translation gains, and banking service fee income.

Total operating expenses increased by 23%, resulting primarily from increases in provisions for credit and other losses, other general and administrative expenses, depreciation and amortization, rent and building expenses, and salaries and employee expenses.

The net provision for expected credit losses and other losses increased due to the increase in additions for this period and the decrease in recoveries from financings written off during the year.

Earnings per share for the years ending December 31, 2023 and 2022 were SAR 1.59 and 1.37, respectively, which was calculated by dividing the adjusted net profit after the cost of the first tranche sukuk by 1,000 mln shares.