Saudi Arabia’s Riyad bank reported a 81 per cent jump in full-year profit due to a higher operating income and a rise in total revenue from special commissions.
Full year net profit for the period ending December 31, 2019 climbed to 5.60 billion riyals (Dh5.48bn), missing the average estimate of Bloomberg analysts. Operating income for the full-year rose to 10.72bn riyals, a 19.5 per cent rise from the year earlier period, the lender said in a regulatory statement to the Tadawul stock exchange, where its shares trade.
Total revenue from special commissions increased 24.4 per cent year-on-year to 10.37bn riyals during the period, the lender said on Monday.
The lender's Zakat tax expense was also lower compared to the previous year by 61.2 per cent as 2018 included zakat settlement amounts relating to earlier years till 2017, Riyad Bank said.
The total operating expenses rose 7.8 per cent, mainly due to increase in impairment charge for credit losses and other financial assets, salaries and employee related expenses. Other general and administrative expense and other operating expenses were partially offset by a drop in impairment charge for investments.
Customer deposits increased 14.5 per cent to 194.5bn riyals while assets surged 15.61 per cent to 265.7bn riyals.
Last month, Riyad Bank ended merger talks with National Commercial Bank, the biggest lender by assets in the kingdom, without giving a reason. The merger could have created a banking giant with $200bn (Dh734bn) in combined assets.
The Public Investment Fund, Saudi Arabia’s sovereign wealth fund that holds stakes in some of the biggest lenders, owns 44 per cent of NCB and about 22 per cent of Riyad Bank.
