Saudi National Bank: First-Quarter Profit Edges Up 0.4% To $1.3B

Saudi National Bank (SNB), the largest bank in Saudi Arabia, reported Monday a marginal 0.4% year-on-year rise in its net profit to $1.3 billion (SAR 5 billion) during the first quarter of 2024, driven by an increase in operating revenue, which offset the uptick in operating expenses.

SNB financial performance:

The growth in quarterly profit was partially offset by higher operating expenses, including net impairment charges for expected credit losses, the lender said in a regulatory filing on the Saudi bourse. Total income from special commissions of financing for the January-March period rose to $2.8 billion (SAR 10.6 billion), marking a significant growth of 26.2% compared to the same period a year earlier when it was $2.2 billion (SAR 8.4 billion). The bank's total operating profit rose to $2.4 billion (SAR 8.9 billion) during the quarter, registering a 2.4% growth from its $2.3 billion (SAR 8.7 billion) in the year-ago period. SNB said its net impairment charges for expected credit losses for the quarter increased by 32.8% year-on-year to $174.6 million (SAR 655 million). The regulatory filing showed that the SNB's total assets rose by 3.4% quarter-on-quarter to $285.9 billion (SAR 1.1 trillion), mainly driven by a 3.9% growth in financing, which resulted from a 2.5% growth in retail business. Similarly, customer deposits rose by 11.2% during the period compared to December 2023. In February, the bank said it completed the sale of its five-year, US dollar-denominated sustainable sukuk under its international sukuk program to raise $850 million. The Saudi bank ranks second on Forbes Middle East’s 30 Most Valuable Banks 2024 list and fourth on Forbes Middle East's Top 100 Listed Companies 2023 list. Big number

Saudi-listed SNB shares edged up 0.8% to $10.07 (SAR 37.75) as of 12:05 pm GST on Monday, taking its market capitalization to $59.9 billion (SAR 224.7 billion).

SNB plans to conduct an extraordinary general meeting (EGM) on May 1, 2024.

Operations:

SNB was formed by the merger of the National Commercial Bank and Samba Financial Group in April 2021.

Currently, the bank has more than 7.4 million customers, according to its website.