The Saudi British Bank “SABB” recorded a net profit of SAR 1,286 million for the quarter ended 31 March 2019. This is an increase of SAR 247 million or 23.8 % compared to SAR 1,039 million for the same period in 2018 and an increase of SAR 75 million or 6.2 % compared to SAR 1,211 million for the three months ended 31 December 2018.
Operating income of SAR 1,970 million for the quarter ended 31 March 2019, an increase of SAR 208 million, or 11.8%, compared to SAR 1,762 million for the same period in 2018.
Loans and advances to customers of SAR 110.4 billion at 31 March 2019, a decrease of SAR 6.1 billion, or 5.2%, from SAR 116.5 billion at 31 March 2018.
Customers’ deposits of SAR 127.2 billion at 31 March 2019, a decrease of SAR 8.2 billion, or 6.0 %, compared with SAR 135.4 billion at 31 March 2018.
The bank’s investment portfolio of SAR 39.4 billion at 31 March 2019, an increase of SAR 7.6 billion, or 23.9 %, from SAR 31.8 billion at 31 March 2018.
Total assets of SAR 173.7 billion at 31 March 2019, a decrease of SAR 8.9 billion, or 4.9 % from SAR 182.6 billion at 31 March 2018.
Earnings per share is SAR 0.86 compared to SAR 0.69 for the corresponding quarter of the previous year.
Commenting on the results, Sheikh Khaled Olayan, Chairman of SABB, said “SABB accomplished a strong financial performance in the first quarter of 2019, growing revenue and managing underlying cost inflation. The Board and the management team are focused on navigating through a challenging economic environment to ensure long-term sustainable value creation for our shareholders, whilst also preparing for the anticipated merger with Alawwal bank. The commencement of the merger planning activities led to an increase in operating costs in the first quarter. Over time the benefits from the transaction will yield positive net return to shareholders, and offer our customers and people an exciting place to bank and work respectively. We have received approvals from regulators and our shareholders will have the opportunity to vote on the transaction at the upcoming Extraordinary General Meeting. I anticipate we will complete the transaction in June, subject to approvals.
Sheikh Khaled further added, “I would like to thank our customers, staff and shareholders for their support and commitment. I would also like to express my sincere thanks and appreciation to our regulators and government ministries for their continued guidance and vision.”