Saudi National Bank, the largest lender in Saudi Arabia by assets, reported a nearly 12 per cent increase in its net profit for the first quarter of 2023, driven by higher operating income, as the kingdom's economy continues to post strong growth.
Net profit for the three months to the end of March reached five billion Saudi riyals ($1.33 billion), from 4.5 billion riyals in the same period last year, the lender said in a filing on Monday to the Tadawul Stock Exchange, where its shares are traded.
Total operating income improved by eight per cent to 8.7 billion riyals, driven by an increase in net income from special commissions and financing, and investments driven by margin and balance sheet expansion, SNB said.
Reflecting on the impact on its first-quarter earnings from SNB’s investment in Credit Suisse from the merger with UBS, the Saudi Arabian lender said its shareholding in Credit Suisse of 9.88 per cent will “convert into a shareholding in UBS of approximately 0.5 per cent upon completion of the merger”.
SNB had acquired a 9.88 per cent stake in Credit Suisse in October 2022 for 5.5 billion riyals as a financial investment allocation within the Saudi bank's investments portfolio.
As of December 31, SNB’s investment in the Swiss lender had declined by approximately 20 per cent, with a further drop recorded in the January to March period.
“The financial impact on SNB’s balance sheet was a decline in the Credit Suisse investment carrying value by approximately 70 per cent during the first quarter (the carrying value of the Credit Suisse investment as at March 31, 2023 was 1.3 billion riyals),” it said.
However, SNB last month said its growth plans and profitability were unaffected by the lower valuation of its investment in Credit Suisse.
The disclosure followed UBS’s announcement on March 20 to buy Credit Suisse in an all-share deal for $3.2 billion as part of a state-backed rescue deal.
Also last month, SNB appointed Saeed Al Ghamdi as its new chairman, following the resignation of Ammar Al Khudairy due to “personal reasons”.
Total operating expenses before provisions for credit and other losses were stable at 2.4 billion riyals in the first three months of this year. Hence, cost-to-income ratio improved year-on-year, SNB said.
The lender’s overall balance sheet expanded by 3 per cent in the first quarter, compared to December 31.
This was mainly driven by a 4 per cent growth in financing, 3 per cent growth in retail principally from 4 per cent mortgages growth and 4 per cent wholesale financing growth, it said.
The bank has also “maintained healthy capitalisation levels and a strong liquidity position”, it said.
However, SNB’s net impairment charge for expected credit losses increased by 28 per cent annually to 493 million riyals for the January to March period.
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
Crazy Rich Asians
Director: Jon M Chu
Starring: Constance Wu, Henry Golding, Michelle Yeon, Gemma Chan
Four stars
PSG's line up
GK: Alphonse Areola (youth academy)
Defence - RB: Dani Alves (free transfer); CB: Marquinhos (€31.4 million); CB: Thiago Silva (€42m); LB: Layvin Kurzawa (€23m)
Midfield - Angel di Maria (€47m); Adrien Rabiot (youth academy); Marco Verratti (€12m)
Forwards - Neymar (€222m); Edinson Cavani (€63m); Kylian Mbappe (initial: loan; to buy: €180m)
Total cost: €440.4m (€620.4m if Mbappe makes permanent move)
GOLF’S RAHMBO
- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
Ruwais timeline
1971 Abu Dhabi National Oil Company established
1980 Ruwais Housing Complex built, located 10 kilometres away from industrial plants
1982 120,000 bpd capacity Ruwais refinery complex officially inaugurated by the founder of the UAE Sheikh Zayed
1984 Second phase of Ruwais Housing Complex built. Today the 7,000-unit complex houses some 24,000 people.
1985 The refinery is expanded with the commissioning of a 27,000 b/d hydro cracker complex
2009 Plans announced to build $1.2 billion fertilizer plant in Ruwais, producing urea
2010 Adnoc awards $10bn contracts for expansion of Ruwais refinery, to double capacity from 415,000 bpd
2014 Ruwais 261-outlet shopping mall opens
2014 Production starts at newly expanded Ruwais refinery, providing jet fuel and diesel and allowing the UAE to be self-sufficient for petrol supplies
2014 Etihad Rail begins transportation of sulphur from Shah and Habshan to Ruwais for export
2017 Aldar Academies to operate Adnoc’s schools including in Ruwais from September. Eight schools operate in total within the housing complex.
2018 Adnoc announces plans to invest $3.1 billion on upgrading its Ruwais refinery
2018 NMC Healthcare selected to manage operations of Ruwais Hospital
2018 Adnoc announces new downstream strategy at event in Abu Dhabi on May 13
Source: The National
UAE currency: the story behind the money in your pockets
Things Heard & Seen
Directed by: Shari Springer Berman, Robert Pulcini
Starring: Amanda Seyfried, James Norton
2/5
Farage on Muslim Brotherhood
Nigel Farage told Reform's annual conference that the party will proscribe the Muslim Brotherhood if he becomes Prime Minister.
"We will stop dangerous organisations with links to terrorism operating in our country," he said. "Quite why we've been so gutless about this – both Labour and Conservative – I don't know.
“All across the Middle East, countries have banned and proscribed the Muslim Brotherhood as a dangerous organisation. We will do the very same.”
It is 10 years since a ground-breaking report into the Muslim Brotherhood by Sir John Jenkins.
Among the former diplomat's findings was an assessment that “the use of extreme violence in the pursuit of the perfect Islamic society” has “never been institutionally disowned” by the movement.
The prime minister at the time, David Cameron, who commissioned the report, said membership or association with the Muslim Brotherhood was a "possible indicator of extremism" but it would not be banned.
MATCH INFO
France 3
Umtiti (8'), Griezmann (29' pen), Dembele (63')
Italy 1
Bonucci (36')
Iraq negotiating over Iran sanctions impact
- US sanctions on Iran’s energy industry and exports took effect on Monday, November 5.
- Washington issued formal waivers to eight buyers of Iranian oil, allowing them to continue limited imports. Iraq did not receive a waiver.
- Iraq’s government is cooperating with the US to contain Iranian influence in the country, and increased Iraqi oil production is helping to make up for Iranian crude that sanctions are blocking from markets, US officials say.
- Iraq, the second-biggest producer in the Organization of Petroleum Exporting Countries, pumped last month at a record 4.78 million barrels a day, former Oil Minister Jabbar Al-Luaibi said on Oct. 20. Iraq exported 3.83 million barrels a day last month, according to tanker tracking and data from port agents.
- Iraq has been working to restore production at its northern Kirkuk oil field. Kirkuk could add 200,000 barrels a day of oil to Iraq’s total output, Hook said.
- The country stopped trucking Kirkuk oil to Iran about three weeks ago, in line with U.S. sanctions, according to four people with knowledge of the matter who asked not to be identified because they aren’t allowed to speak to media.
- Oil exports from Iran, OPEC’s third-largest supplier, have slumped since President Donald Trump announced in May that he’d reimpose sanctions. Iran shipped about 1.76 million barrels a day in October out of 3.42 million in total production, data compiled by Bloomberg show.
- Benchmark Brent crude fell 47 cents to $72.70 a barrel in London trading at 7:26 a.m. local time. U.S. West Texas Intermediate was 25 cents lower at $62.85 a barrel in New York. WTI held near the lowest level in seven months as concerns of a tightening market eased after the U.S. granted its waivers to buyers of Iranian crude.
The%20specs
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