SABB reports net income of $280m for Q3 2020
The Saudi British Bank ( SABB) recorded a net profit after zakat and income tax of SR1,049 million ($280 million) for the three months ending on Sept. 30. This is a decrease of SR122 million or 10 percent compared to the equivalent period from 2019.
For the nine months that ended on Sept. 30, SABB recorded a loss after zakat and income tax of SR4,847 million, which included a SR7,418 million impairment of goodwill in the second quarter of 2020 relating to the goodwill created following the merger with Alawwal Bank. The total operating income was SR2,141 million for the three months ending on Sept. 30, a decrease of 20 percent compared with the equivalent period of 2019; and SR6,828 million for the nine months that ended on Sept. 30, an increase of three percent.
The gross loans and advances as of Sept. 30 stood at SR159.4 billion, an increase of SR3.6 billion compared with the same period last year, and a decrease of SR1 billion compared with June 30, 2020.
The customers’ deposits as of Sept. 30 stood at SR180.2 billion, a decrease of SR3.2 billion compared with Sept. 30, 2019 and a decrease of SR8.2 billion compared with June 30, 2020
Investments as of Sept. 30 amounted to SR64.1 billion, an increase of SAR 5.3 billion compared with Sept. 30, 2019. The value was broadly unchanged compared with June 30, 2020.
The total assets as of Sept. 30 amounted to SR264 billion, an increase of SR5.4 billion compared with Sept. 30, 2019 and a decrease of SR2 billion compared with June 30, 2020
The earnings per share of SR0.51 for the three months which ended Sept. 30 fell SR0.06 compared with the equivalent period of 2019. Lubna Suliman Olayan, chairman of SABB, said: “As the third quarter ended, we drew closer to our goal of attaining a full and seamless integration of the merged bank. We completed the migration of the majority of our wholesale business and we are on target with our plan to complete the full integration of the bank in the first half of next year. We are working as a single team throughout the bank, we seek out opportunities and manage risk as one bank, and we are delivering on the promised synergies. So SABB’s future looks bright, even through the lens of these challenging times.”
Olayan said the operating performance of the bank reflects the challenges of the macro economic environment, caused by the persistence of the COVID-19 pandemic and the resulting strong competition for customer business.
“Although operating margins across the sector are compressed, SABB remains well capitalized and highly liquid, and we saw our cost of credit risk decrease significantly in the third quarter, reflecting the adequacy of the bank’s credit provisions to date. As we look forward over the horizon of the next few years, the board and the management team are optimistic for a return to growth, albeit at a modest pace, and we are confident that the bank is well positioned to attain that growth. The board is currently reviewing the medium-term strategy of the bank and, once finalized, I look forward to discussing what promises to be an exciting future in more depth.”
The board and the management team are optimistic for a return to growth, albeit at a modest pace, and we are confident that the bank is well positioned to attain that growth. Lubna Suliman Olayan
Chairman of SABB