SABB turns to profit of SAR 1.889 bln in H1 2021

Saudi British Bank (SABB) turned to a net profit of SAR 1.889 billion in H1 2021, against a net loss of SAR 5.896 billion in the year-earlier period. 

The earnings were primarily driven by lower provision for expected credit losses and total operating expenses, as the bank set aside the one-off impact of the goodwill impairment of SAR 7.418 billion recorded in the same period last year. However, this was partially offset by a decrease in total operating income due to a 22% decline in net special income. 

Total operating expenses fell on lower salaries and employee-related costs, as well as general and administrative expenses. The bank also recorded an increase in depreciation and amortization expenses. 

The bank swung to a net profit of SAR 919 million in Q2 2021, against a net loss of SAR 6.867 billion in Q2 2020, due to lower provision for expected credit losses and total operating expenses. 

On a sequential basis, SABB’s net profit declined 5.3% on the back of lower total operating income, decline in earnings from associates and higher provision for expected credit losses.