The Saudi British Bank’s (SABB) net profit after Zakat and income tax rose 177% to SR3.20 billion ($850 million) for the full year (FY) ended December 31, 2021. 

 

This is an increase of SR7.37 billion compared to the loss of SR4.17 billion for the same period in 2020. 

 

Operating income was SR7.94 billion for the year ended December 31, 2021, a decrease of SR940 million, or 10.6%, compared to SR8.88 billion for the same period in 2020.

 

Loans and advances totalled SR167.6 billion at December 31, 2021, an increase of SR14.3 billion, or 9.3%, from SR153.2 billion at December 31, 2020.

 

Customers’ deposits were SR186.8 billion at December 31, 2021, a decrease of SR2.3 billion, or 1.2% compared with SR189.1 billion at December 31, 2020.

 

Investments were SR64.9 billion at December 31, 2021, an increase of SR4.1 billion, or 6.7%, from SR60.8 billion at December 31, 2020.

 

Total assets were SR272.4 billion at December 31, 2021, a decrease of SR4.1 billion, or 1.5% from SR276.5 billion at December 31, 2020.

 

Earnings per share is SR1.56 compared to SR(2.02) for the corresponding period of the previous year.

 

Commenting on the 2021 results, Lubna Suliman Olayan, Board Chair of SABB said: “During 2021, we have had to deal with the additional challenges and uncertainties posed by the global Covid-19 pandemic and the related starts and stops of the global economy. However, the Saudi economy, and in particular the banking sector, has demonstrated resilience in dealing with these hurdles, and SABB took on those challenges from a position of financial and strategic strength, and has now pivoted back to growth mode.

 

“Early in 2021, we concluded the final elements of the integration of SABB and Alawwal banks. The importance of the transaction – the first banking merger transaction in the kingdom – was the culmination of over three years of hard work and effort from dedicated individuals across the organisation and beyond, and has resulted in SABB being a stronger entity with a single shared culture and a stronger balance sheet, better enabling us to meet the growing needs of our customers and demands of the kingdom’s Vision 2030 transformation programme. 

 

“During the year, we also committed to our long-term strategic goals and the steps we will take to achieve them. 2021 marked the start of the investment phase and it was pleasing to see solid progress in developing some of the key enablers for our longer-term goals, from setting up an in-house digital office to making more operational and tactical enhancements, such as expanding our mortgage offering. While doing that, we also seized the opportunity to participate in some key landmark transactions, including acting as one of the lead arrangers on the SR14 billion financing to fund the Red Sea Development project.” 

 

SABB’s financial performance during 2021 includes a return to profitability, continued loan growth, stabilising revenue trends and improvements in asset quality. It generated SR3.9 billion of net income before Zakat and income tax for the year, SR7.9 billion of revenue, and grew its customer lending portfolio by 9% to SR174 billion. Its financial results are robust proof of its resilience and progress made in 2021. 

 

With ESG woven into both its strategy and the long-term transformation goals of Vision 2030, during the year SABB focused on formulating its ESG strategy. This initiative marks a critical transition for SABB and its customers, because the bank believes that a firm commitment to ESG is absolutely necessary to achieve sustainable growth.

 

“I am especially grateful for the diligence and professionalism of my board colleagues and our senior management committee, and I would also like to extend a sincere note of gratitude to our staff at all levels, who are the driving force behind the accomplishments of the bank during 2021. And, finally, I extend our gratitude for the guidance and support of the Saudi government, especially our regulators at the Saudi Central Bank and the CMA,” she added.-- TradeArabia News Service