SAB’s 9M 2024 net profit rises 16% to SAR 5.9B; Q3 at SAR 1.9B

Saudi Awwal Bank (SAB) reported a net profit of SAR 5.9 billion for the first nine months of 2024, a jump of 16% from SAR 5.1 billion in the year-earlier period.

Gross special commission income rose by 24% year-on-year (YoY) during the nine-month period, primarily on the impact of interest rate hikes and loan portfolio growth. Similarly, net special commission income rose by 7%, as special commission expenses reflected the higher interest rate environment.

Total operating income grew YoY for the same period. This was mainly due to a SAR 563 million increase in net special commission income; a jump of SAR 220 million in net fee and commission income; and a SAR 152 million rise in the foreign exchange (FX) income.

However, the annual profit growth was partly offset by the increased total operating expenses (opex), primarily spurred by higher salaries and employee-related expenses.

Q3 2024 net profit stood at SAR 1.9 billion, up 3% from SAR 1.83 billion a year earlier.

During the third quarter of this year, gross special commission income advanced by 19% YoY, thanks to interest rate hikes and loan portfolio growth.

This was partly offset by an increase in credit loss provisions, provisions for Zakat and income tax, and opex for the three-month period.

Additionally, the increase in the third-quarter total operating income was driven by rising net special commission income, FX income, net fee and commission income, and gains from FVSI financial instruments.

On a sequential basis, net earnings decreased by 6.7% from SAR 2.02 billion.

Total shareholders’ equity (no minority interest and excluding Sukuk) stood at SAR 60.17 billion by Sept. 30, 2024, compared to SAR 55.53 billion a year earlier.

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