Bank AlJazira Q1 2024 profit up 47% to SAR 300.4M

Bank AlJazira’s net profit rose 47% to SAR 300.4 million in Q1 2024, from SAR 204 million a year earlier.

Net financing and investment income increased by 11% year-on-year (YoY) due higher income from investments and financing by 38% YoY, driven a rise in income from corporate financing and dues from banks and other financial institutions that edged up on portfolio growth and higher rates.

Operating income grew by 13% YoY mainly due to a rise in net financing and investment income, net gains on FVIS financial instruments, net fees from banking services and dividend income against a decrease in other operating income and net gains on derecognition of financial assets at FVOCI.

Net impairment charge for financing and other financial assets decreased by 8% YoY mainly due to lower provisioning requirements for commercial financing.

The surge in net income was also supported by an increase in share in net income of an associate.

On the other hand, total operating expenses have increased by 2% mainly due to higher other general and administrative expenses and salaries and employee-related expenses against a reduction in net impairment charge for financing and other financial assets.

Return on deposits and financial liabilities increased by 58% YoY.

Sequentially, the bank’s net profit grew 7.6% from SAR 279.29 million in Q4 2023.

Total shareholders’ equity, no minority interest and excluding sukuk, stood at SAR 12.56 billion as of March 31, 2024, compared to SAR 12.09 billion a year earlier.

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