Saudi Awwal Bank records $1.09bln net profit after zakat and income tax for 1H24

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Saudi Awwal Bank (SAB) announced on Monday the Bank’s financial results for the period ending on June 30, 2024.

In the first half of 2024, SAB demonstrated robust financial performance, with a net profit of SR4,061 million after Zakat and Income Tax, marking a 23% year-on-year increase. The bank's total operating income also grew year-on-year by 10%, reaching SR6,939 million.

Lubna Olayan, Chair of SAB, commented: "I am delighted to report another period of strong financial performance for SAB. Our H1 2024 results demonstrate the success of our transformation strategy and our ability to deliver sustainable growth."

She further added: “Our loan growth has been remarkable, outpacing the market with substantial increases in our corporate and retail sectors. Our corporate portfolio has grown across all major sectors, with growth driven by our strengths in serving the interests of our institutional clients, multinationals, and large domestic corporates. Our mortgage portfolio has remained a key driver, reflecting our focus on diversifying our business mix. Additionally, our trade-related business shows sustained and strong momentum, further solidifying our position as a leading provider of trade finance solutions."

In alignment with the Bank's digital transformation strategy, SAB continues to implement cutting-edge digital solutions that improve customer satisfaction and increase digital penetration, leading Euromoney to name SAB the "Best Digital Bank" in Saudi Arabia for 2024.

SAB’s net loans and advances stood at SR242 billion, an increase of 22%, while customer deposits grew by 19%, reaching SR264 billion compared to 1H23. Total equity also increased by 11%, reaching SR63 billion. These positive results highlight Saudi Awwal Bank's continued financial strength and ability to deliver value to its stakeholders.

SAB also made significant progress on its environmental, social, and governance (ESG) agenda, recognized through prestigious awards including Global Finance's 'Best Bank for Sustainable Finance in Saudi Arabia,’ which highlighted SAB’s commitment to operating as a responsible corporate citizen and to driving positive change.

Olayan added: “We remain focused on executing our strategy to further enhance SAB’s standing as a future-ready institution, a leader in digital innovation and sustainable finance, and a trusted partner to our customers across Corporate Banking, Treasury, and Wealth and Personal Banking.

Our strong financial position and strategic partnership with HSBC position us well to capitalise on the opportunities ahead. The Board of Saudi Awwal Bank is proud of its colleagues and senior management team for their hard work and commitment to delivering these strong results. The Board is also grateful to the Saudi Central Bank and the CMA, and extends a special note of thanks to the Ministry of Finance for its unwavering support of our economy."