Bank Albilad’s net profit edges down 0.3% to SAR 588.1 mln in H1 2020

Bank Albilad reported a marginal decline year-on-year (YoY) in net profit to SAR 588.1 million for the six months of 2020, as compared to SAR 590 million for the same period last year.

The decline in net profit is attributed to due to higher operating expenses as a result of higher net impairment charge for expected credit losses, salaries and employee related benefits, depreciation & amortization, despite lower general and administrative (G&As) expenses.

In Q2, the bank reported net profit of SAR 318.1 million, a 4% increase compared to net profit of SAR 304.9 million in the same quarter a year ago, driven by higher operating income as a result of higher net income from investment and financing activities, and net exchange income.

This is despite lower gains from investments, fee and commission income, other operating income and dividend income.

Total operating expenses increased by 4%, due to higher payouts in salaries and employee related benefits, net impairment charge for expected credit losses, depreciation & amortization, despite lower general and administrative (G&A) expenses.

On a sequential basis, net profit increased by 17.8%, driven by 8% lower operating expenses as a result of lower net impairment charge for expected credit losses, G&A expenses, despite higher payouts in salaries and employee related benefits and higher depreciation & amortization.