London, (Business News Report)|| The Saudi British Bank (SABB) turned profitable in 2021, after losses in the year 2020.
SABB said that the annual financial results for the year 2021 showed the bank’s shift to profitability.
The bank stated that it achieved a net profit of 3.2 billion riyals during the past year, compared to losses of 4.168 billion riyals during 2020.
This comes despite a decline in the bank’s revenues by 18% to reach 6.4 billion riyals, compared to 7.8 billion riyals during the same period last year, according to the Tadawul.
In terms of the results of the last quarter, profits fell by 35% to reach 425 million riyals. The results were less than analysts’ expectations of 815 million riyals.
The net income before zakat and income tax for the year ended December 31, 2021 increased by about 787 million riyals. This is after excluding the decrease in the value of goodwill 7,418 million riyals recorded in the same period last year.
This is due to a decrease in the provision for expected credit losses and total operating expenses, driven by an increase in profits in associates.
This was partially offset by a decrease in total operating income, mainly due to a 17% decrease in net special commission income.
The decrease in total operating income came as a result of a decrease in net special commission income, fee and commission income and dividend income.
This was partially offset by an increase in other operations income, currency conversion profits and gains from financial instruments not listed at fair value in the income statement and gains from debt instruments listed at fair value from through other comprehensive income.
The decrease in special commission income during the year is also attributed to the decrease in interest rates in the first quarter of 2020.
The strong growth in the loan portfolio during the year 2021 helped to offset the effects resulting from this decline.
The net income before zakat and income tax for the three-month period ending on December 31, 2021 amounted to about 595 million riyals, compared to 801 million riyals for the same period last year, and compared to 1,038 million riyals for the previous quarter.
While the total operating expenses for the year ended December 31, 2021 amounted to about 3,713 million riyals, compared to 4,213 million riyals for the same period last year.
