SABB likely to post profit growth in Q1 2023

In this report, Argaam highlights the expected financial results of Saudi British Bank (SABB) for Q1 2023, which will be announced in the next few days, as well as its key events, earnings, and performance indicators.

The bank reported growth in Q4 2022 net profit, backed by higher operating income and lower provisions.

Key events in Q1 2023

SABB board proposed a 7.4% cash dividend, or SAR 0.74 per share, for the second half of 2022.

Banking Sector Data

The banks operating in Saudi Arabia reported a 17% jump in aggregate net profit before Zakat and tax to nearly SAR 19.02 billion from January-March 2023, compared to SAR 16.26 billion a year earlier, recent data from the Saudi Central Bank (SAMA) showed.

Aggregate assets grew by 11.2% year-on-year (YoY). Loans and deposits also increased by 10.3% and 10.8% YoY, respectively, in the same period. 

Saudi Arabian Interbank Offered Rate (SAIBOR) rose to 5.69% at the end of Q1 2023, from 5.34% in Q4 2022 and 2.45% in Q1 2022.

Balance Sheet

The bank's assets grew by 15.4% YoY in Q4 2022. Deposits and net loans rose 14.7% and 9.3% YoY, respectively, in the same period. 

Average Forecasts

SABB is forecast to post a profit leap of 50% YoY to SAR 1.51 billion in the first quarter of 2023, according to average estimates of four research houses.