SABB posts net profit of SR1,913m for 9 months

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10/11/19

Lubna Sulaiman Olayan

The Saudi British Bank (SABB) recorded a net profit of SR1,913 million ($510 million) after zakat and taxes for the first nine months ending Sept. 30, 2019. This is a decrease of SR954 million or 33.3 percent compared to SR2,867 million for the same period in 2018. SABB recorded a net profit of SR1,061 million after zakat and taxes for the third quarter of 2019, a decrease of SR1 million or 0.09 percent compared to SR1,062 million for the same period last year.
Lubna Sulaiman Olayan, chairman of SABB, said: “The third quarter of 2019 represents the first full quarter since the legal completion of our groundbreaking merger of SABB and Alawwal banks on June 16, 2019. Since that date the board and the management team have continued the journey to unite the two organizations around a common strategy, customer base, and values set. The new board has met on two occasions to date to discuss strategy, culture, branding, talent development, integration, and maintaining our high standards of customer experience and risk management.”
The operating income was SR6,530 million for the first nine months ending Sept. 30, an increase of SR1,038 million or 18.9 percent, compared to SR5,492 million for the same period in 2018.
Loans and advances to customers were recorded at SR152.5 billion for the nine months ending Sept. 30, 2019, an increase of SR40.4 billion or 36 percent, from SR112.1 billion on Sept. 30, 2018.
Customer deposits amounted to SR183.4 billion for the nine months ending Sept. 30, 2019, an increase of SR54.1 billion or 41.8 percent, compared with SR129.3 billion for the same period last year.
The bank’s investment portfolio of SR58.7 billion for the nine months ending Sept. 30, 2019, showed an increase of SR24.8 billion or 72.9 percent, from SR34 billion for the same period last year.
The total assets of SR257.9 billion for the nine months ending Sept. 30 showed an increase of SR82.8 billion or 47.3 percent from SR175 billion on Sept. 30, 2018.
The earnings per share were SR1.12 compared to SR1.91 for the corresponding period last year.
Olayan said: “Our financial performance in the third quarter was more reflective of the merged bank’s current returns as it included a full quarter of business returns and did not repeat the one off merger-related accounting we reported in the second quarter. Credit losses were lower as expected, the temporary cost of integration increased in line with plan, growth remained challenging in the current economic environment, and the pressure of a declining cycle in interest rates began to be felt. Nevertheless, SABB generated a solid return for the period to support capacity to lend and capacity to distribute dividends. The bank remains strong, profitable, and well-positioned.”
She added: “I would like to thank our customers, shareholders, management team and our longstanding global partner, HSBC, for their continued support and commitment, as well as our regulators and government agencies for their vision and guidance.”

This article was first published in Arab News

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