Saudi British Bank 9-month net profit jumps 26% to $927mln

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Saudi British Bank (SABB) net profit jumped 26% to SR3.48 billion ($927 million) for the nine-month period ended September 2022, compared to SR2.78 billion for the corresponding period in 2021.

Total operating profit grew 19% to SR6.97 billion and net special commission income grew 19% to SR5.12 billion, the strong performance reflecting the increases in benchmark rates earlier in the year, which have subsequently continued. Net fee profit grew 5% to SR929 million and exchange profit also grew 32% to SR567 million. Impairment charges remained low, and its year-to-date cost of risk remains below its through-the-cycle guidance.

“Our cost management remains disciplined, and together with the aforementioned comments, leads to a return on tangible equity of 11% which has continued to expand throughout 2022,” said Lubna S Olayan, Chair of the Board of Directors of (SABB).

Shareholders equity

SABB’s Chair added that shareholders’ equity remained stable at SR53 billion with total assets of SR300 billion. The bank’s loan portfolio grew to SR189 billion, an increase of 4% during the third quarter and 9% year-to-date.

Customer deposits of SR203 billion grew in line with lending during the first nine months of the year with 9% growth. Olayan emphasised the bank’s growth in financing in the quarter following the 4% quarterly increase, with growth in both corporate and retail segments, and the strength of the entire Saudi banking sector, which continues to perform well compared with other markets.

SABB also announced its Environmental, Social and Governance strategy earlier in September, which aims to lead through product development, allocating capital to green and sustainable businesses, working with the industry to develop the appropriate taxonomy, and finally educating the community in this area.

Awards

SABB was also the winner of Global Finance Magazine’s ‘Best Bank for Sustainable Finance in the Kingdom’ award for 2022 earlier in this quarter.

Finally, Olayan thanked SABB’s customers and clients for their continued support, and its staff, management and board members for their continued delivery and achievement of SABB’s ambitions following the merger. She also reiterated the bank’s gratitude to the Central Bank and other government entities for their continued guidance and vision.