Bank Aljazira net profit rises 65% to SAR 572.8 mln in H1 2021

Bank Aljazira reported a net profit of SAR 572.8 million for the first half of 2021, a 65% rise from SAR 347.4 million a year earlier.

The profit rise was fueled by a 14% rise year-on-year (YoY) in operating income and booking gains on deemed disposal of an associated company. The increase in operating income iwas mainly attributed to higher net financing and investment income, net fees from banking services and net gains on derecognition of financial assets measured at amortised cost against a decrease in net exchange income, other operating incom

In Q2 2021, net profit after Zakat and tax jumped 52% YoY to SAR 251.2 million. The rise was backed by a 5% YoY increase in operating income and the booking of gains on deemed disposal of an associated company.

The increase in operating income is mainly due to an increase in net fees from banking services, net financing and investment income and net gains on derecognition of financial assets measured at fair value through other comprehensive income (FVOCI) against a decrease in net exchange income, other operating income and net gain on FVIS financial instruments.

On a sequential basis, net profit dropped 21.9% from SAR 321.6 million amid a 12% decrease in operating income along with lower net gains on the derecognition of financial assets measured at amortised cost, net fees from banking services, net financing and investment income, net gain on FVIS financial instruments and net exchange income against an increase in net gains on derecognition of financial assets measured at FVOCI.