Latest news with #SaudiNationalBank
The National
a day ago
- Business
- The National
Saudi National Bank reports 17% rise in second quarter profit on investment income boost
Saudi National Bank, the biggest lender in Saudi Arabia by assets, reported a 17 per cent jump in its second-quarter net profit as provisions for bad loans fell and income from financing portfolio rose amid continued economic momentum. Net income for the three months to the end of June climbed to 6.13 billion Saudi riyals ($1.6 billion), the bank said in a regulatory filing on Monday to the Tadawul bourse, where its shares are traded. Total income from commissions at the end of the period jumped 4 per cent to 11.57 billion riyals. The rise in quarterly income was also supported by a '10.4 per cent increase in special commission income from investments portfolio', SNB said. Total operating profit climbed 6.6 per cent to 9.51 billion riyals during the reporting period. Banks in Saudi Arabia, the Arab world's biggest economy, are benefiting from robust economic momentum despite global headwinds and geopolitical turbulence in the wider Middle East. The economy of the world's leading oil producer is forecast to grow 3.5 per cent this year, and 3.9 per cent in 2026, amid the rapid unwinding of crude production caps, the International Monetary Fund said in June. 'Saudi Arabia's economy has demonstrated strong resilience to shocks, with non-oil economic activities expanding, inflation contained, and unemployment reaching record-low levels,' the IMF said at the time. The kingdom has been diversifying its economy away from oil with an emphasis on the development of sectors including financial services, capital markets technology, health, education, infrastructure and tourism as part of Vision 2030. The higher interest rate regime for longer is also supporting profitability of regional lenders. Currencies of most Gulf economies, with the exception of Kuwait, are pegged to the US dollar and Gulf central banks mostly mimic the Federal Reserve moves on interest rates. The Fed has kept the interest rates steady over the past few quarters, despite pressure from the White House to reduce the policy rate. SNB said the kingdom's economic growth has been reflected in its six-month performance as well. The lender's net profit for the January-June period rose by more than 18 per cent to 12.16 billion riyals while total comprehensive income jumped by about 50 per cent on an annual basis to 13 billion riyals. Assets at the end of the reporting period rose by 10.4 per cent on an annual basis to 1.2 trillion riyals. SNB's loans and advances portfolio increased by more than 12 per cent annually to 714.83 billion riyals.
Reuters
a day ago
- Business
- Reuters
Gulf stocks steady as strong earnings offset US tariff jitters
July 21 (Reuters) - Gulf stocks held their ground as investors weighed upbeat corporate earnings against lingering uncertainty over U.S. trade policy, after reports that Washington is pushing for a minimum 15% to 20% tariff in any deal with the European Union. Despite global jitters, strong results from regional heavyweights and steady oil prices helped offset external headwinds. Saudi Arabia's benchmark index (.TASI), opens new tab edged 0.2% higher, on course to snap its longest downturn in nearly two years, with financials driving the gains. Saudi National Bank ( opens new tab - the country's biggest lender by assets - gained 1.5% and Al Rajhi Bank ( opens new tab, the largest sharia-compliant bank, jumped over 1% after their strong second-quarter results lifted sentiment across the banking sector. However, the petrochemical giant SIPCHEM ( opens new tab fell 3.7% after posting a rare loss, breaking a five-year streak of profitability. Dubai's benchmark index (.DFMGI), opens new tab eased 0.1%, pressured by broad-based declines as investors locked in gains after a recent multi-year rally. Meanwhile, Air Arabia ( opens new tab surged 5.1% to a fresh record high after securing a bid to operate a new Saudi low-cost national airline, set to launch by 2030. Abu Dhabi Index (.FTFADGI), opens new tab posted a decline ahead of key upcoming earnings as investors looked for cues on the market's next direction. Qatar's stock index (.QSI), opens new tab added 0.1%, nearing a two-year peak, led by a 1.5% rise in Commercial Bank ( opens new tab. Among other gainers, Qatar International Islamic Bank ( opens new tab advanced 1.4% on a year-on-year rise of 5.2% in its six-month profit.
Asharq Al-Awsat
a day ago
- Business
- Asharq Al-Awsat
Saudi Arabian Bank SNB Reports 17% Jump in Second-quarter Profit
Saudi National Bank (SNB) reported a 17.3% jump in second-quarter net profit on Monday, driven by higher income and lower net impairment charges. SNB's shares jumped 1.8% at market open after the results, and have risen just over 10% since January. The Kingdom's biggest lender by assets said it made a net profit of 6.1 billion riyals ($1.63 billion) in the quarter ended June 30, higher than the 5.6 billion riyals analysts were expecting, and compared with 5.2 billion riyals in the year-earlier period. SNB said the results were driven by higher net special commission income and operating income, in addition to lower net impairment charges for expected credit losses. According to Reuters, SNB said pre-provision credit was driven by strong credit quality and higher recoveries. SNB will pay a first-half dividend after zakat, an Islamic tax, worth 1 riyal per share to 6 billion eligible shares, according to a separate bourse disclosure that followed the results.
Zawya
a day ago
- Business
- Zawya
Saudi Solutions renews $400mln Islamic financing facility with SNB
Arabian Internet and Communications Services Company (solutions) has renewed its Islamic Shariah-complaint credit facilities agreement for a total of 1.5 billion riyals ($400 million) with Saudi National Bank (SNB). The renewed agreement includes: Short-term banking facilities amounting to SAR 1 billion, with a one-year tenor, designated for issuing letters of credit (LC) and letters of guarantee (LG), and to support the company's working capital needs. Medium-term financing of SAR 500 million, with a five-year maturity originally utilised on June 27, 2022, to fund the strategic acquisition of Giza Systems Company. The facilities are secured by a promissory note, a filing on Riyadh bourse showed on Monday. (Writing by Brinda Darasha; editing by Daniel Luiz)
Zawya
a day ago
- Business
- Zawya
Saudi Arabian lender SNB reports more than 17% jump in second-quarter profit
DUBAI: Saudi National Bank (SNB) reported a 17.3% jump in second-quarter net profit on Monday, driven by higher income and lower net impairment charges. SNB's shares jumped 1.8% at market open after the results, and have risen just over 10% since January. The kingdom's biggest lender by assets said it made a net profit of 6.1 billion riyals ($1.63 billion) in the quarter ended June 30, higher than the 5.6 billion riyals analysts were expecting, and compared with 5.2 billion riyals in the year-earlier period. SNB said the results were driven by higher net special commission income and operating income, in addition to lower net impairment charges for expected credit losses. SNB said pre-provision credit was driven by strong credit quality and higher recoveries. Citi had expected SNB to report provisions. "While SNB's results were largely ahead vs our (and Street) expectations, we see this as poor quality beat – driven largely by provision writebacks," Citi said in a note to clients. On a pre-provision basis, results were slightly below Citi's estimates, Citi said in the note, adding that the second-quarter results also showed weak net interest margins and muted loan volumes. SNB will pay a first-half dividend after zakat, an Islamic tax, worth 1 riyal per share to 6 billion eligible shares, according to a separate bourse disclosure that followed the results.
