Finance & Capital Market

SABB H1 net income rises 10% to $555.92m

The Saudi British Bank’s (SABB) net income rose 10% to SR2.08 billion for first half (H1), compared to SR1.89 billion for the corresponding period in 2021, driven mainly by higher net special commission income.
Lubna Sulaiman Olayan, Chair of the Board of Directors of SABB, said the performance in the second quarter of 2022 continued to build upon the achievements of 2021 and the start of 2022. 
For the three-month period ended June 30, 2022 the bank generated a net income of SR1.082 billion, compared to a net income of SR919 million for the same period in 2021, an increase of 18%. 
Total operating income
She also noted that total operating income reached SR4.40 billion for the six-month period ending June 30, 2022, representing an increase of 12% over the same period in 2021. Net special commission income of SR3.13 billion over that same period represented  an 8% increase, with  fees from banking services of SR651 million representing a  13% increase. Additionally, exchange income grew by 34%, reaching SR359 million. 
“We expect to build on this performance through the remainder of 2022, and expect further improvements in our revenue base, considering the current rate environment. Despite an increase in second quarter credit impairment charges, our overall year-to-date cost-of-risk remains within the expected range. All of this combined with continued strong cost management has led to a return on tangible equity of 10% in the second quarter,” she said.
The bank’s Chair further explained that shareholders’ equity reached SR54 billion, compared to SR53 billion for the same period in 2021, an increase of 2%. Moreover, total assets surpassed SR300 billion for the first time in our history, reaching SR303 billion, an increase of 11%. The bank's net financing portfolio amounted to SR176 million, an increase of 9% compared to the same period in 2021. Customer deposits rose to SR207 billion, an increase of 11%. 
Underlying growth
Olayan highlighted that the bank’s underlying growth continues and sentiment remains strong, evidencing the fact that, despite a turbulent macro-economic backdrop, the Saudi banking sector has weathered the second quarter with remarkable resilience. 
Progress on the large-scale projects in the kingdom has continued, including Neom-related activities and those focused on the energy sector. Underlying corporate originations in the quarter remained healthy, while retail performance remained robust with continued growth in our home finance portfolio. We also maintained strong performance in our personal finance and cards products. 
During the second quarter, we were named ‘Saudi Arabia’s Best Bank 2022’ by Global Finance Magazine, an award that encompasses a wide range of criteria, including profitability, geographical scope, strategic relations, business development and product innovation – as ever, it is pleasing to receive external recognition for our developments, innovation and financial performance.-- TradeArabia News Service