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Lubna Sulaiman Olayan

SABB reports 9-month net profit of $514m

RIYADH, November 4, 2019

The Saudi British Bank (SABB) recorded a net profit after zakat and taxes of SR1,913 million ($514 million) for the nine months ended September 30, 2019.

This is a decrease of SR954 million or 33.3 per cent compared to SR2,867 million for the same period in 2018. SABB recorded a net profit after zakat and taxes of SR1,061 million for the three months ended 30 September 2019, a decrease of SR1 million or 0.09 per cent compared to the three months ended 30 September 2018 of SR1,062 million.

Operating income of SR6,530 million for the nine months ended 30 September 2019, an increase of SR1,038 million, or 18.9 per cent, compared to SR5,492 million for the same period in 2018.

Loans and advances to customers of SR152.5 billion at 30 September 2019, an increase of SR40.4 billion, or 36.0 per cent, from SR112.1 billion at 30 September 2018.

Customers’ deposits of SR183.4 billion at 30 September 2019, an increase of SR54.1 billion, or 41.8 per cent, compared with SR129.3 billion at 30 September 2018.

The bank’s investment portfolio of SR58.7 billion at 30 September 2019, an increase of SR24.8 billion, or 72.9 per cent, from SR34.0 billion at 30 September 2018.

Total assets of SR257.9 billion at 30 September 2019, an increase of SR82.8 billion, or 47.3 per cent from SR175.0 billion at 30 September 2018.

Earnings per share is SR1.12 compared to SR1.91 for the corresponding period of the previous year.

Lubna Sulaiman Olayan, chairman of SABB, said: “The third quarter of 2019 represents the first full quarter since the legal completion of our ground-breaking merger of SABB and Alawwal banks on 16th June 2019. Since that date the Board and the management team have continued the journey to unite the two organisations around a common strategy, customer base, and values set.”

“The new Board has met on two occasions to date to discuss strategy, culture, branding, talent development, integration, and maintaining our high standards of customer experience and risk management. I am enthused by the level of commitment and focus amongst the Board and the management team. We clearly have appropriately high aspirations for the future.

“Our financial performance in the third quarter was more reflective of the merged Bank’s current returns as it included a full quarter of business returns and did not repeat the one off merger-related accounting we reported in the second quarter.

“Credit losses were lower as expected, the temporary cost of integration increased in line with plan, growth remained challenging in the current economic environment, and the pressure of a declining cycle in interest rates began to be felt. Nevertheless, SABB generated a solid return for the period to support capacity to lend and capacity to distribute dividends. The Bank remains strong, profitable, and well positioned.

“I would like to thank our customers, shareholders, management team and our longstanding global partner, HSBC, for their continued support and commitment; as well as our regulators and government agencies for their vision and guidance,” she added. – TradeArabia News Service




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