Bank AlJazira profit dips 27% to SAR 464.6 mln in H1 2023; Q2 at SAR 260.6 mln

Bank AlJazira reported a 27% decline in H1 2023 net profit to SAR 464.6 million from SAR 632.7 million in the year-earlier period.

The six-month profit was hurt by an 11% drop year-on-year (YoY) in operating income. This was mainly attributed to lower net financing and investment income, other operating income, net gains on derecognition of financial assets at amortized cost and net gains on fair value through income statement (FVIS) financial instruments. On the other hand, Bank AlJazira reported an increase in dividend income, net foreign exchange income and net fees from banking services.

Operating expenses also decreased by 3% YoY, mainly due to a decrease in net impairment charge for financing and other financial assets, other operating expenses, depreciation and amortization expenses, other general and administrative expenses, as well as rent and premises-related expenses against an increase in salaries and employee-related benefits.

The net provisions for expected credit and other losses stood at SAR 112.2 million, down from SAR 133.6 million in H1 2022.

The bank earned SAR 260.6 million in Q2 2023, a marginal rise of 1.1% from SAR 257.8 million in Q2 2022, thanks to a marginal rise of 0.1% YoY in operating income.

The net profit also jumped by 27.7% from SAR 204 million in Q1 2023, as operating income grew by 3%.

Total shareholders’ equity, including sukuk, increased to SAR 16.26 billion as of June 30, 2023, from SAR 13.85 billion a year earlier.

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