2023-07-24 06:27:54
Arab National Bank profits increased to 2.054 billion riyals (about 550 million dollars) by the end of the first half of 2023, a growth rate of 51 percent, compared to profits of 1.358 billion riyals achieved during the same period of 2022.
The bank, which is 40 percent owned by Jordan Arab Bank, attributed the rise mainly to an increase in net special commission income, net gains/(losses) from selling investments held for non-trading purposes, net fee and commission income, net foreign currency exchange gains, net income from other operations, and a decrease in rent and building expenses.
This was offset by an increase in the net provision for expected credit losses, other provisions, other general and administrative expenses, salaries, personnel related expenses, depreciation and amortization, and a decrease in net gains / (losses) from financial instruments listed at fair value in the income statement, dividends and net trading income.
In the second quarter, the financial results showed an increase in net profits by 39 percent, to reach 986 million riyals (about 263 million dollars) compared to the same quarter of the previous year at 708 million riyals.
The bank attributed this rise mainly to:
Net income before zakat and income tax increased by 38.6 percent compared to the same quarter of last year. The increase was mainly due to the increase in net special commission income, net fee and commission income, net other operating income, net foreign exchange earnings, and a decrease in net expected credit losses and other provisions.
This was offset by an increase in other general and administrative expenses, salaries and expenses related to employees, depreciation, amortization, rent and building expenses, along with a decrease in dividends, net gains / (losses) from financial instruments listed at fair value in the income statement, net trading income and net gains / (losses) from selling investments held for non-trading purposes.
Tadawul group profits are declining
In addition, the Saudi Tadawul Group Holding Company achieved a net profit of 196 million riyals ($52.2 million) during the first half of this year, a decrease of 29.6 percent year-on-year, compared to 278.3 million riyals ($74.2 million) in the same half of 2022.
The financial results for the second quarter of this year showed that the company also achieved a net profit of 105.2 million riyals ($28.5 million) during the second quarter of this year, a decrease of 23.6 percent on an annual basis, compared to 137.7 million riyals ($36.7 million) in the same quarter of 2022.
According to the results issued on Sunday, operating revenues decreased by 15.5 percent on an annual basis, to reach 252 million riyals ($67.2 million), compared to 298.1 million riyals ($79.4 million) in the same period of the previous year.
The decline is mainly due to a decline in trading revenues due to a decrease in trading value by 28.4 percent.
Operating expenses increased by 5.2 percent on an annual basis, to reach 168.1 million riyals ($44.8 million) during the second quarter of 2023, compared to 159.8 million riyals ($42.6 million) in the same quarter of the previous year.
The group said that the increase is mainly due to the consolidation of the financial statements of Mubasher Financial Network last May, after acquiring 51 percent of the issued capital.
Profits from non-operating activities increased by 113.8 percent on an annual basis, to reach 33.4 million riyals ($8.9 million) in the second quarter of this year, compared to 15.6 million riyals ($4.1 million) in the same period of 2021, due to the increase in investment income.
Earnings before interest, taxes, depreciation and amortization fell 34.4 percent year-on-year to 102.3 million riyals ($27.2 million), compared to 156 million riyals ($41.6 million) in the second quarter of the previous year.
The group attributed the decrease in profits to the decline in operating revenues in exchange for the growth in operating expenses.
The results revealed a decrease in total profit by 22.9 percent on an annual basis, to reach 152.5 million riyals ($40.6 million) in the second quarter of 2023, compared to 197.7 million riyals ($52.7 million) in the same period last year.
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