Saudi National Bank 2021 net profit jumps 11% to SAR 12.7 bln; Q4 profit at SAR 3.4 bln

Saudi National Bank (SNB) reported a net profit of SAR 12.7 billion for 2021, a rise of 11% from SAR 11.44 billion in the year-ago period.

After the merger with Samba Financial Group on April 1, 2021, the bank recorded 10.7% higher net income due to an increase in operating income.

This was partially offset by higher operating expenses, including net impairment charge for expected credit losses.

Total operating income increased by 32.6% from higher net special commission income, investment related income, fee income from banking services, and foreign exchange income. This was partially offset by higher other operating expenses.

Total operating expenses, including impairments, were higher by 63.2% due to a rise in net impairment charge for expected credit losses pertaining to the day 1 of the merger as per IFRS requirements; other general and administrative expenses; salaries and employee expenses; depreciation/amortisation of property, equipment & software; right of use assets; amortization of intangible assets; and higher rent and premises expenses.

In Q4 2021, the bank reported a net profit of SAR 3.4 billion, a marginal increase by 0.1% year-on-year (YoY).

Shareholders’ equity, after minority interest, increased to SAR 162.2 billion by the end of the current period from SAR 79.4 billion a year earlier.

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