Saudi Awwal Bank profits surges by 45% at end of 2023, to SAR 7 billion

Saudi Awwal Bank’s profits surged by 45% to reach SAR 7 billion by the conclusion of 2023. This increase was announced on Thursday alongside the release of the annual financial results for the period ended on December 31, 2023.

Total profits from operations for the year reached SAR 12.7 billion, marking a 32% increase from the previous year’s SAR 9.6 billion.

The net special commission income from financing saw a notable rise to SAR 8.96 billion in the current year, up by 41% from the previous year’s SAR 6.37 billion.

Earnings per share for the year amounted to SAR 3.4, compared to SAR 2.35 in the preceding year.

The gross special commission income was higher by 83%, primarily driven by interest rate hikes and volume growth mainly contributed from loans, as a result the net special commission income increased by 40%.

The net profit was higher by 45%, primarily driven by an increase in total operating income. This was partially offset by an increase in total operating expenses, provision for Zakat and income tax and provision for expected credit losses.

Total operating income increased mainly due to an increase in net special commission income, net fee and commission income and exchange income.

Total operating expenses increased mainly due to an increase in salaries and employee related expenses, depreciation and amortization and general and administrative expenses.

Provision for expected credit losses was higher by 26% due to growth in the loan portfolio in addition to lower loan portfolio recoveries as compared to the last year.

The bank stated that certain prior year figures have been reclassified to be aligned with the presentation in the current year.

Moreover, earnings per share for the year ended 31 December 2023 and 31 December 2022 are calculated by dividing the net income after Zakat and income tax attributable to equity holders of the Bank by 2,055 million weighted average number of shares outstanding during year ended 31 December 2023 and 31 December 2022.