Bank Albilad records SAR 643.1 million profit in Q1, marking 15% increase

Bank Albilad reported a net profit of SAR 643.1 million in the first quarter of 2024, marking a 15% increase from SAR 559.9 million recorded in the same period last year. The announcement of these estimated financial results on Monday underscores the bank’s robust performance in the three-month period ending March 31, 2024.

Operating profit for the quarter amounted to SAR 1.34 billion, slightly up from SAR 1.33 billion in the corresponding quarter of the previous year, reflecting a marginal increase of 0.4%. Meanwhile, the earnings per share for the current period reached SAR 0.65, compared to SAR 0.56 in the same period last year.

The bank’s net income from investing and financing assets saw a 1% increase, primarily driven by a 21% surge in income from these assets, offset by a 54% rise in return on deposits and financial liabilities.

The uptick in net income can be attributed to the rise in total operating income, fueled by increased dividend income, other operating income, net fee and commission income, and net income from investing and financing assets. However, net gain on fair value through profit or loss (FVPL) instruments and net exchange income witnessed a decline.

Total operating expenses before net impairment charges decreased by 2%, driven by reductions in other general and administrative expenses and depreciation & amortization, although salaries and employee-related benefits increased. Furthermore, the net impairment charge for expected credit losses decreased by 60%, mainly due to improvements in the quality and composition of the portfolio.

Net income from investing and financing assets increased by 4%, driven by a 1% increase in income from these assets and a 1% decrease in return on deposits and financial liabilities.

The increase in net income was bolstered by a rise in total operating income, primarily fueled by higher net income from investing and financing assets, dividends, and other operating income. However, net exchange income, net gain on FVPL instruments, and net fee and commission income experienced declines.

Total operating expenses before net impairment charges decreased by 7%, attributed to reductions in other general and administrative expenses, depreciation & amortization, and salaries and employee-related benefits.

Earnings per share were calculated by dividing the net income after zakat for the three-month periods ended March 31, 2024, and March 31, 2023, by the weighted average outstanding number of shares adjusted for treasury shares, totaling 993 million shares.