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  • SABB reports profit of SAR 1,022 million for the three months period ended 31 March 2020

    May 2020



    SABB and Alawwal Bank legally merged on 16 June 2019. SABB’s financial results include the financial results of Alawwal Bank from the merger date onwards. Reported periods prior to the merger do not include the financial results of Alawwal Bank.

    The Saudi British Bank (“SABB”) recorded a net profit after Zakat and income tax of SAR 1,022 million for the three months ended 31 March 2020. This is a decrease of SAR 84 million or 7.6% compared to SAR 1,106 million for the same period in 2019.

    Operating income of SAR 2,435 million for the three months ended 31 March 2020, an increase of SAR 465 million, or 23.6%, compared to SAR 1,970 million for the same period in 2019.

    Loans and advances of SAR 157.8 billion at 31 March 2020, an increase of SAR 47.4 billion, or 42.9%, from SAR 110.4 billion at 31 March 2019.

    Customers’ deposits of SAR 188.3 billion at 31 March 2020, an increase of SAR 61.1 billion, or 48.0%, compared with SAR 127.2 billion at 31 March 2019.

    Investments of SAR 60.5 billion at 31 March 2020, an increase of SAR 21.1 billion, or 53.6%, from SAR 39.4 billion at 31 March 2019.

    Total assets of SAR 265.2 billion at 31 March 2020, an increase of SAR 91.4 billion, or 52.6% from SAR 173.8 billion at 31 March 2019.

    Earnings per share is SAR 0.50 compared to SAR 0.74 for the corresponding period of the previous year.

    Commenting on the results, Ms Lubna Suliman Olayan, Chair of SABB, said “SABB had a solid start to the year, with the first three months of 2020 representing our second consecutive quarter of loan growth, underpinning robust operating income in challenging circumstances. We continued to make steady progress integrating the Bank following the legal merger last year, with a number of milestones met. Financial returns improved, capital stayed strong, with funding and liquidity remaining abundant and stable.

    As the Board and Management looks beyond the first quarter, it is clear that the outbreak of the COVID-19 virus has posed several challenges to businesses and the economy as a whole, as well as having a very real impact on people’s lives. The Bank has made every effort to ensure that it maintains critical banking services throughout, whilst protecting the safety of both our customers and staff. Although the availability of branches and ATMs has at times been reduced, in accordance with directives from the authorities, I am pleased to see our customers reaping the benefits of the investment we made in our digital platforms. These platforms enabled us to offer all our customers access to core banking services through our online and mobile banking, and our telephone call centers. Not surprisingly, we have seen a significant increase in active digital users recently, and the feedback is very positive.

    While the crisis poses a number of unique challenges, SABB is in a healthy state to deal with the potential stresses ahead, with a strong capital base, a stable funding base, and ample reserves of liquidity. Those stresses should not be underestimated. Viewpoints on the outlook for both the global and domestic economies are consistent in expecting that the impact of the COVID-19 crisis will be negative for the economy in the near-term. With a weak economic outlook and lower benchmark interest rates, there is a reasonable expectation for adverse impacts on financial returns and credit quality, which may in turn require realignment of previously anticipated growth plans. Given the uncertainty in determining when and to what extent the precautionary measures taken will take effect, it is currently difficult to reasonably determine the size and extent of the financial impact. Clearly, the sooner we can return to normality in the economy, the better it will be for our customers and the Bank alike. In the meantime, we are pleased to support our customers during this unprecedented time and look forward to a return to economic growth in the future. The promise of the national economic growth agenda under Vision 2030 is still very much alive, and represents a significant opportunity ahead.

    I would like to make a special note of gratitude to our staff who are working diligently to support our customers and each other during this very challenging time. We are also grateful to the government for its quick and decisive actions in implementing measures to combat the spread of the virus, as well as its economic support packages, and to SAMA for guiding and supporting the banks through these difficult times.”


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