SAB 9M 2023 profit up 43% to SAR 5.14 bln; Q3 at SAR 1.83 bln

Saudi Awwal Bank (SAB) reported a 43% rise in net profit to SAR 5.14 bln for the first nine months of 2023, compared to SAR 3.59 bln in the prior-year period.

The bank reported a year-on-year (YoY) increase in gross operating income during the nine-month period. This was mainly due to higher net special commission income, net fee and commission income, foreign exchange (forex) trading income and income from fair value through statement of income (FVSI) financial instruments.

This was offset by a YoY jump in gross operating expenses as a result of a rise in employee salaries and expenses, depreciation and amortization expenses, general and administrative expenses, and rent and building expenses.

This was in addition to a higher provision for Zakat and income tax as well as that for expected credit losses during the first nine months of this year.

The third-quarter net profit grew 21.5% to SAR 1.83 billion from SAR 1.50 billion in Q3 2022, on higher gross operating income and lower income from FVSI financial instruments.

Sequentially, the Q3 bottom line grew by 18.1% from SAR 1.54 billion as the provision for Zakat and income tax contracted on a quarterly basis.

Shareholders’ equity, with no minority interest, stood at SAR 55.53 billion by the end of Sept. 30, 2023, compared to SAR 53.34 billion in the year-earlier period.

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