Saudi National Bank’s first-quarter net profit rises 12% on higher operating income

May 02, 2023 – Saudi National Bank, the largest lender in Saudi Arabia by assets, reported a nearly 12 per cent increase in its net profit for the first quarter of 2023, driven by higher operating income, as the kingdom’s economy continues to post strong growth.

Net profit for the three months to the end of March reached five billion Saudi riyals ($1.33 billion), from 4.5 billion riyals in the same period last year, the lender said in a filing on Monday to the Tadawul Stock Exchange, where its shares are traded.

Total operating income improved by eight per cent to 8.7 billion riyals, driven by an increase in net income from special commissions and financing, and investments driven by margin and balance sheet expansion, SNB said.

Reflecting on the impact on its first-quarter earnings from SNB’s investment in Credit Suisse from the merger with UBS, the Saudi Arabian lender said its shareholding in Credit Suisse of 9.88 per cent will “convert into a shareholding in UBS of approximately 0.5 per cent upon completion of the merger”.

SNB had acquired a 9.88 per cent stake in Credit Suisse in October 2022 for 5.5 billion riyals as a financial investment allocation within the Saudi bank’s investments portfolio.

As of December 31, SNB’s investment in the Swiss lender had declined by approximately 20 per cent, with a further drop recorded in the January to March period.

“The financial impact on SNB’s balance sheet was a decline in the Credit Suisse investment carrying value by approximately 70 per cent during the first quarter (the carrying value of the Credit Suisse investment as at March 31, 2023 was 1.3 billion riyals),” it said.

However, SNB last month said its growth plans and profitability were unaffected by the lower valuation of its investment in Credit Suisse.

The disclosure followed UBS’s announcement on March 20 to buy Credit Suisse in an all-share deal for $3.2 billion as part of a state-backed rescue deal.

Also last month, SNB appointed Saeed Al Ghamdi as its new chairman, following the resignation of Ammar Al Khudairy due to “personal reasons”.

Total operating expenses before provisions for credit and other losses were stable at 2.4 billion riyals in the first three months of this year. Hence, cost-to-income ratio improved year-on-year, SNB said.

The lender’s overall balance sheet expanded by 3 per cent in the first quarter, compared to December 31.

This was mainly driven by a 4 per cent growth in financing, 3 per cent growth in retail principally from 4 per cent mortgages growth and 4 per cent wholesale financing growth, it said.

The bank has also “maintained healthy capitalisation levels and a strong liquidity position”, it said.

However, SNB’s net impairment charge for expected credit losses increased by 28 per cent annually to 493 million riyals for the January to March period.

Image by: Reuters

Shopping Cart

Media Kit

    Data Protection

    Personal Data (“Data”) submitted for Media Kit (“Media Kit”), and/or collected in the form of first name, last name, email address and other contact details may be used for the purposes of inviting you to future events and for reaching out to you with content which may be of interest to you. For these purposes, The Digital Banker will share the Data with our associate companies (including event and content sponsors) to promote their products and services. You will also be automatically subscribed as a user on www.thedigitalbanker.com. If you would like to opt-out, email us at [email protected].

    By clicking Submit, you acknowledge that you consent/ have sufficient informed consent to the collection, use and disclosure of Data as set out above.

    The Digital Banker Summit

    Moving on from FTX: is 2023 the year of CBDCs?

    Indonesia, Jakarta

    Thailand, Bangkok

    Philippines, Manila

    Contact Us

      Data Protection

      The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

      Request Nomination Pack

        Data Protection

        The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

        Registration Form

          Data Protection

          The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

          Registration Form

            Data Protection

            The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

            Registration Form

              Data Protection

              The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

              Registration Form

                Data Protection

                The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

                Registration Form

                  Data Protection

                  The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

                  The world’s preeminent Private Banks and Wealth Managers are demonstrating a committed drive in innovation, advisory, new products and services to meet the sophisticated needs of their clients.

                  COVID-19
                  Amid economic activity revival on the back of the Covid-19 vaccine program, organisations moving from business continuity plans to stable working environments, together with the slightest improvement in unemployment numbers, forced the world to adjust to new realities. Coming to terms with the “new normal”, global investors are now on the look-out for attractive and stable investment opportunities.

                  Needs of Private Wealth customers and families worldwide have drastically changed due to the pandemic and banks have had to accelerate efforts to deploy a multi-channel service strategy and safeguard clients’ businesses and wealth against negative impacts of economic uncertainly.

                  The Global Private Banking Innovation Awards will recognise the world’s best private banks, wealth managers and asset managers that are championing innovation across advisory, service, products, customer experience and more.

                  Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. 

                  Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

                  Request Nomination Pack

                  Error: Contact form not found.