1060 · 16/02/2022 08:43:05 · Announcement #66726 · View on Saudi Exchange

Saudi British Bank announces its Annual Financial Results for the Period Ending on 2021-12-31

Element ListCurrent YearPrevious Year%Change
Total income from Special Commissions/Financing & Investments 6,3877,812-18.241
Net Income from Special Commissions/Financing & Investments 5,7266,873-16.688
Total Operation Profit (Loss) 7,9388,878-10.587
Net Profit (Loss) before Zakat and Income Tax 3,903-4,302-
Net Profit (Loss) 3,202-4,168-
Total Comprehensive Income 3,463-4,133-
Total Share Holders Equity (after Deducting Minority Equity) 52,92650,6574.479
Assets 272,396276,452-1.467
Investments 64,90460,8316.695
Loans and Advances Portfolio (Financing & Investment) 167,556153,2439.34
Clients' deposits 186,761189,110-1.242
Profit (Loss) per Share 1.56-2.02
All figures are in (Millions) Saudi Arabia, Riyals
Element ListExplanation
The reason of the increase (decrease) in the net profit during the current year compared to the last year is The net income before Zakat and income tax for the year ended 31 December 2021, was higher by SAR 787 million, after setting aside the one-off impact of the Goodwill impairment (SAR 7,418 million) recorded last year, primarily driven by lower provision for expected credit losses and total operating expenses and further contributed by an increase in share in earnings of associates. This was partially offset by a decrease in total operating income mainly driven by lower net special income by 17%.

Total operating income decreased during the year due to lower net special commission income, fee and commission income and dividend income, partially offset by higher other operating income, exchange income, gain on non-FVSI financial instruments and gain on FVOCI debt instruments. Special commission income was lower during the year largely due to decreases in the benchmark rate in 1Q20. Strong volume growth during the year 2021 helped to offset the impact of the margin compression.

Total operating expenses decreased from continued success in efficiency creation in terms of cost reduction. Statement of the type of external auditor's report Unmodified opinion Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion None Reclassification of Comparison Items Certain prior period figures have been re-classified to be aligned with the presentation in the current period. Additional Information The net income before Zakat and income tax for the 3 month period ended 31 December 2021 was SAR 595 million as compared to SAR 801 million for the same period last year and as compared to SAR 1,038 million for the previous quarter.

Total operating expenses for the year ended 31 December 2021 were SAR 3,713 million, as compared to SAR 4,213 million for the last year as a result of synergy realization. Total operating expenses for the three months period ended 31 December 2021 were SAR 1,026 million, as compared to SAR 1,241 million for the corresponding period of last year, and as compared to SAR 937 million in the previous quarter. The expenses for the fourth quarter included some tail related to integration costs and an acceleration in investment in people and processes via our operating expenses lines.

Provision for expected credit losses for the year ended 31 December 2021 was SAR 454 million, as compared to SAR 1,631 million for the last year. Provision for expected credit losses for the three months period ended 31 December 2021 was SAR 414 million, as compared to SAR 32 million in the corresponding period of last year, and as compared to SAR 13 million in the previous quarter. The current quarter reflected increased charges against certain corporate customers.

Provision for Zakat and income tax for the year ended 31 December 2021 was SAR 701 million as compared to reversal of provision for Zakat and income tax of SAR 134 million in the last year as a result of the goodwill impairment. Provision for Zakat and income tax for the three months period ended 31 December 2021 amounted to SAR 168 million, as compared to provision for Zakat and income tax of SAR 121 million in the corresponding period of last year, and as compared to a provision for Zakat and income tax of SAR 152 million in the previous quarter.

Earnings / (Loss) per share for the year ended 31 December 2021 and 31 December 2020 are calculated by dividing the net income / (loss) after Zakat and income tax attributable to equity holders of the bank by 2,055 million weighted average number of shares outstanding during the year ended 31 December 2021 and 2020.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.