Riyadh, Saudi Arabia — Saudi Awwal Bank has reported a net profit of SAR 3.314 billion ($883 million) for the first half of 2023, a 58.87 percent increase over the same period last year.
In a Tadawul disclosure, the bank said the net profit was higher by SAR 1.228 billion largely due to higher total operating income. This was offset by an increase in provision for Zakat and income tax including previous years Zakat provisions, total operating expenses, and provision for expected credit losses, the bank said.
Total operating income increased mainly due to an increase in net special commission income (up 61.59 percent), income from FVSI financial instruments, exchange income and net fee and commission income. This was partially offset by an increase in net losses on non-FVSI investment and decreased in other operating income.
The bank’s second quarter profit was SAR 1.55 billion in Q2 2023, a rise of 43 percent from SAR 1.08 billion in Q2 2022, backed by higher total operating income.
This was offset by a surge in provision for Zakat and income tax, including previous years Zakat provisions, total operating expenses, and provision for expected credit losses.Â
SAB’s net profit dropped by 12.2 percent from SAR 1.76 billion in Q1 2023. Total shareholders’ equity, no minority interest, increased to SAR 56.69 billion as of June 30, 2023, from SAR 53.80 billion a year earlier.
SAB Alawwal came into being after the merger of Saudi British Bank (SABB) and Alawwal Bank two years ago. It is one of the five largest banks by deposits in Saudi Arabia.