Alinma Bank allocated SAR 1 bln provisions in Q1, says CEO

Alinma Bank’s general provisions increased to SAR 1.1 billion by the end of Q1-2017, from nearly SAR 946 million by the end of 2016, chief executive Abdulmohsen Al Fares told Al-Arabiya TV on Tuesday.

The higher provisions came due to an increase in the bank’s lending portfolio to SAR 73 billion in Q1-2017 from SAR 60 billion in the first quarter of 2016.

The coverage ratio for non-performing loans (NPLs) stood at 158 percent.

Al Fares said that corporates dominated the largest share in Alinma’s credit portfolio, adding: “The quality of the bank’s assets and loan portfolio is very strong.”

Meanwhile, Alinma’s first-quarter profit rise was driven by offering new products in 2016, expanding protection and savings options and increasing the branch network, he added.

Alinma Bank posted a rise in Q1 net profit of 8 percent year-on-year to SAR 421 million.