Bank AlJazira profit grows to SAR 950.7M in 9M 2024; Q3 at SAR 332.7M

Bank AlJazira reported a net profit of SAR 950.7 million for the first nine months of 2024, an increase from SAR 740.7 million a year earlier.

Net financing and investment income surged by 10% year-on-year (YoY) in 9M 2024. This was due to the 29% hike in income from investments and financing, mainly due to higher income from financing with banks and other financial institutions as well as Shariah-compliant derivatives, which soared as a result of portfolio growth and higher interest rates.

Further, the bank’s 28% YoY profit rise was fueled by the 15% uptick in operating income, primarily driven by higher net financing and investment income, net gains on FVIS financial instruments, net fees from banking services, other operating income, dividend income and net exchange income.

On the other hand, the yield on deposits and financial liabilities expanded by 41% during the nine-month period. This was mainly due to the increased return on customer deposits, besides dues to banks and other financial institutions as well as Shariah-compliant derivatives.

The annual profit growth was also capped by the 10% YoY leap in total operating expenses amid an uptick other general and administrative expenses, net impairment charges for financing and other financial assets, salaries and employee-related expenses, depreciation and amortization expenses, and rent and premises-related expenses.

In Q3 2024, net profit rose 20.5% to SAR 332.7 million, from SAR 276.04 million a year earlier, mainly due to a 7% YoY increase in net financing and investment income.

On a sequential basis, net profit rose 4.8% from SAR 317.55 million.

Total shareholders’ equity, no minority interest and after excluding sukuk, stood at SAR 13.51 billion as of Sept. 30, 2024, compared with SAR 12.45 billion a year earlier.

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