SABB turns to SAR 4.168 bln loss in 2020

Saudi British Bank (SABB) incurred net loss of SAR 4.168 billion in 2020, versus net profit of SAR 2.736 billion a year earlier.

The loss was driven primarily by SAR 7.418 billion in goodwill impairment – a one-time accounting loss that does not affect the bank's capital, liquidity, or funding, the lender said, adding that its credit portfolio, products and services remain unaffected.

The goodwill was recognised following the merger of SABB and Alawwal Bank in June 2019.

Aside from the one-off impact goodwill impairment, the net income after Zakat and tax increased by SAR 514 million in 2020 due to lower credit loss provisions.

Total operating expenses increased due to higher general and administrative expenses, depreciation and amortisation, and employee-related expenses pertaining to the merger.

Q4 2020 net profit dropped 15% year-on-year (YoY) to SAR 652.3 million.