Bank Albilad CEO says no restriction imposed by SAMA on dividends distribution

Bank Albilad CEO Abdulaziz Al-Onaizan

Abdulaziz Al-Onaizan, chief executive officer (CEO) of Bank Albilad, said there are no restrictions imposed by the Saudi Central Bank (SAMA) on the process of distributing dividends to shareholders.

In an interview with Al Arabiya, Al-Onaizan said that dividends are usually discussed with shareholders.

"What is more important for us in Bank Albilad is the increase in earnings per share and the return on equity. Any dividends will be discussed with the bank's board of directors, the general assembly, and SAMA," he stated.

Bank Albilad boosted its provisions by 28% in Q4 2020, in line with its conservative policy. Coverage ratio of non-performing loans exceeded 250%.

Despite the COVID-19 pandemic, the bank posted strong growth in its financial results in 2020. It also registered growth in funding corporates and small and medium enterprises (SMEs), in cooperation with Kafala and Monsha’at programs.

The bank also saw growth in the value of its real estate mortgage portfolio and rolled out new investment and financing products, Al-Onaizan pointed out.

He also noted that the pandemic has had varying impact on sectors, reiterating that the stimulus programs launched by SAMA helped the banking sector overcome challenges.

The CEO expects conditions to further improve, following the expiry of such stimulus programs, denying the existence of any issues that might raise concerns.

Bank Albilad earlier reported a net profit of SAR 1.348 billion for 2020, up 8%, compared to SAR 1.243 billion in the previous year. Q4 2020 profit stood at SAR 377.8 million, according to Argaam's data.