Samba’s net profit rises 20% to SAR 1.274 bln in Q1 2020

Samba Financial Group reported a net profit of SAR 1.274 billion for the first quarter of 2020, a 20% year-on-year (YoY) increase, compared to a profit of SAR 1.065 billion for the same period last year.

The company attributed the profit increase to higher IOUs at fair value through other comprehensive income (FVOCI), apart from higher exchange income and other income. However, this was partially offset by higher Zakat and tax expenses.

On the other hand, total operating expenses increased due to higher salaries and employee-related expenses, depreciation and other general and administrative (G&A) expenses.

This was however offset by decrease in credit impairment provision.

On a sequential basis, net profit increased by 66.6% driven by higher income on FVOCI debt, income from investment held at fair value through income statement (FVIS), other operating income and decline in Zakat and tax expenses.

On the other hand, total operating expenses declined by 7% due to lower rent, depreciation, credit impairment provision and salaries and employee related expenses, despite higher G&A expenses.