Asharq Al-awsat English Middle-east and International News and Opinion from Asharq Al-awsat Newspaper

Samba Reports 8.3% Rise in Third-Quarter Profit

Samba Reports 8.3% Rise in Third-Quarter Profit

Monday, 22 October, 2018 - 08:00
Riyadh- Asharq Al-Awsat
Samba Financial Group, Saudi Arabia’s third-largest bank by assets, reported an 8.3 percent rise in third-quarter profit as special commissions and other operating income increased.

Net income rose to 1.42 billion Saudi riyals (Dh1.39bn) in the three-month period ending September 30 from 1.3bn riyals in the year-earlier period, the bank said in a statement to the Saudi Tadawul stock exchange on Thursday. It matched the average of three analysts' profit estimates of 1.42bn riyals, according to Bloomberg data. Operating income rose to 2.11bn riyals.

Net income rose mainly due to an increase in net special commission income by 9.8 percent and a 4.4 percent increase in operating income, Samba said in the bourse filing.

CEO of Samba Financial Group Eisa bin Mohammed al-Eisa said that these results reflect Samba's ability to maintain a positive performance and grow rapidly in its various financial, banking and investment sectors.

Eisa highlighted Samba's adopted approach of diversifying sources of income and stimulating revenues to enhance its financial position and support its liquidity base.

Eisa praised the results, describing them as the natural result of Samba's achievements on more than one level, confirming its leadership position within the Saudi banking sector, its standards, and pivotal strategy aimed at achieving growth, and reducing risk rates, and continuously improving the quality of banking services and products.

Samba is one of the first major banks in Saudi Arabia to report third-quarter financial results. The recovery of oil prices, which have breached the $80 a barrel mark after three-year lows, is helping stimulate economic growth in Arabian Gulf countries. That's aiding banks that had felt the pinch from weaker oil prices as governments in the region took measures to reduce fiscal deficits.

Loans and advances dropped 5 percent to 114.7bn riyals in the third quarter from the same period a year ago. Customer deposits rose 1.75 percent to 169.6bn riyals.

Analysts including Moody’s expect the operating conditions in Saudi and the wider Gulf to improve and credit growth to return as governments in the region shift focus from austerity to spending amid the rise in oil prices.

Editor Picks