SABB reports 7.6% drop in Q1 profit at $272m

Lubna Suliman Olayan
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The Saudi British Bank (SABB) recorded a net profit after zakat and income tax of SR1,022 million ($272 million) for the three months ending March 31, 2020. This is a decrease of SR84 million or 7.6 percent compared to SR1,106 million for the same period in 2019.

SABB and Alawwal Bank legally merged on June 16 last year and SABB’s financial results include the financial results of Alawwal Bank from the merger date onwards. Reported periods prior to the merger do not include the financial results of Alawwal Bank.

SR2,435 million has been reported as the operating income for the first quarter of 2020, an increase of SR465 million or 23.6 percent, compared to SR1,970 million for the same period in 2019.

The loans and advances stood at SR157.8 billion on March 31, 2020, an increase of SR47.4 billion or 42.9 percent, from SR110.4 billion on March 31, 2019.

The customers’ deposits amounted to SR188.3 billion on March 31, 2020, an increase of SR61.1 billion or 48 percent, compared to SR127.2 billion on March 31, 2019.

The investments stood at SR60.5 billion on March 31, 2020, an increase of SR21.1 billion or 53.6 percent, from SR39.4 billion on March 31, 2019.

The total assets amounted to SR265.2 billion on March 31 this year, an increase of SR91.4 billion or 52.6 percent from SR173.8 billion on March 31, 2019.

The earnings per share are SR0.50 compared to SR0.74 for the corresponding period of the previous year.

Lubna Suliman Olayan, chair of SABB, said: “SABB had a solid start to the year, with the first three months of 2020 representing our second consecutive quarter of loan growth, underpinning robust operating income in challenging circumstances. We continued to make steady progress integrating the bank following the legal merger last year, with a number of milestones met. Financial returns improved, capital stayed strong, with funding and liquidity remaining abundant and stable.”

She added: “As the board and management look beyond the first quarter, it is clear that the outbreak of the COVID-19 virus has posed several challenges to businesses and the economy as a whole, as well as having a very real impact on people’s lives. The bank has made every effort to ensure that it maintains critical banking services throughout, whilst protecting the safety of both our customers and staff.”

“While the crisis poses a number of unique challenges, SABB is in a healthy state to deal with the potential stresses ahead, with a strong capital base, a stable funding base, and ample reserves of liquidity ... The promise of the national economic growth agenda under Vision 2030 is still very much alive, and represents a significant opportunity ahead.”