According to the bank’s financial statements on Tadawul today, its net profit amounted to about 2.83 billion riyals, compared to 2.77 billion riyals for the same quarter of 2019.
The bank attributed the reason for the increase in net profit during the first quarter of 2020 to an increase in total operating income and a decrease in Zakat and income tax expense.
Total operating income increased by 7.2% as a result of an increase in net special commission income, investment income *, income from banking services fees, and foreign exchange income, and in contrast, other operating expenses increased.
The bank also attributed the increase in its net profits to the increase in total operating expenses, including provisions by 18.5%, due to the decrease in the provision for expected credit losses, other general and administrative expenses, depreciation / amortization of property, equipment, programs, and the right to use the assets, as well as salary and employee expenses, which Partially offset by a decrease in rents and building expenses.
On a quarterly basis, the bank recorded a decrease in its net profit by 16.40%, as it recorded in the fourth quarter a net profit of about 3.4 billion riyals.