SAMBA enjoys strong financial position, booked sufficient provisions: CEO

Samba Financial Group’s (SAMBA) performance during Q1 2020 is a reflection of the diversified business model, which holds strong prospects even in difficult circumstances, in light of the challenges of the Coronavirus outbreak, Rania Nashar, the bank’s CEO said.

The group achieved its goals early 2020, she added in an interview with Al Arabiya TV, noting that the treasury management group topped the bank’s departments amid lower interest, followed by the corporate and retail services sectors, as well as the growth in mortgage and construction financing.

She also said that deposits increased and Samba Capital recorded a positive performance.

Nashar further explained that the group’s financial position is very strong on the back of a diversified investment book. The bank was able to manage liquidity and increase fixed income gains during the past quarters due to lower interest rates.

The group has booked provisions in accordance with international standards, and has taken additional precautionary measures to ensure that the provisions are sufficient, Nashar said commenting on the bank’s provision status.

She also noted that the bank’s current assets are satisfactory and hoped to maintain them despite the virus outbreak challenges, emphasizing that SAMBA is closely monitoring the credit environment.

The Saudi government has announced a list of banks-related measures to confront the pandemic crisis including loan repayment facilities, fees exemption and liquidity support, she stated, adding that the bank will intervene at the right time.

Nashar indicated that SAMBA enjoys lowest loan-to-deposit ratios among peers and supports granting loans while being conservative.

She also drew attention to the group's aspiration to support the small to medium enterprises SMEs sector, while ensure stable growth to preserve the bank’s financial position.

SAMBA reported a net profit of SAR 1.274 billion for the first quarter of 2020, a 20% year-on-year (YoY) increase, compared to a profit of SAR 1.065 billion for the same period last year, according to data compiled by Argaam.