Saudi Arabia’s National Commercial Bank (NCB) reported a 24 per cent year-on-year increase in net profit for the second quarter of the year on the back of growth in operating profit and a reduction in costs as loan impairments declined.
The Jeddah bank reported a net profit of 2.69 billion Saudi riyals (Dh2.63bn) in the three months ending in June, largely in line with analysts’ estimates. Total revenue for special commissions and investments increased by about 8 per cent to 4.78bn Saudi riyals.
“Higher net income derived from higher total operating income and lower operating expenses,” the lender said in a statement to the Tadawul stock exchange, where its shares trade.
NCB, which is Saudi Arabia’s biggest bank by assets, said operating income increased 8.5 per cent because of the rise in net special commission income, as well as higher income from banking services fees and from foreign exchange services.
Operating expenses, meanwhile, dropped 1.9 per cent due to a fall in impairment charges on loans, as well as a decline in “rent and premises-related expenses and salaries and employee-related expenses”.
During the six-month period to June 30, net profit increased by about 15 per cent year-on-year to 5.46bn riyals, as total revenue for special commissions and investments rose 11 per cent to 9.65bn riyals.
Loans and advances made by the bank increased by about 4 per cent to 276.27bn riyals, while customer deposits rose 3 per cent to 327.44bn riyals.
"We estimate that [interest rate] spreads had widened sequentially on lower cost of funds, likely due to the decline in Saibor [Saudi interbank offer rates]," said EFG Hermes banking analyst Shabbir Malik about NCB's results.
“Deposit growth outpaced loan growth, which helped improve balance sheet liquidity,” he added, stating that the bank’s loan-to-deposit ratio improved to 84.4 per cent, up from 86.8 per cent at the end of the first quarter.
NCB’s shares were up 0.37 per cent by 12.02pm UAE time on Wednesday, to 54.7 riyals per share, and are up 14 per cent since the start of this year,
The bank is in merger talks with Riyad Bank, which on Tuesday announced a 78 per cent increase in its second-quarter profit as impairments fell.
ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
Stamp duty timeline
December 2014: Former UK finance minister George Osbourne reforms stamp duty, replacing the slab system with a blended rate scheme, with the top rate increasing to 12 per cent from 10 per cent:
Up to £125,000 - 0%; £125,000 to £250,000 – 2%; £250,000 to £925,000 – 5%; £925,000 to £1.5m: 10%; Over £1.5m – 12%
April 2016: New 3% surcharge applied to any buy-to-let properties or additional homes purchased.
July 2020: Rishi Sunak unveils SDLT holiday, with no tax to pay on the first £500,000, with buyers saving up to £15,000.
March 2021: Mr Sunak decides the fate of SDLT holiday at his March 3 budget, with expectations he will extend the perk unti June.
April 2021: 2% SDLT surcharge added to property transactions made by overseas buyers.
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
3%20Body%20Problem
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More from Janine di Giovanni
The specs: 2018 Volkswagen Teramont
Price, base / as tested Dh137,000 / Dh189,950
Engine 3.6-litre V6
Gearbox Eight-speed automatic
Power 280hp @ 6,200rpm
Torque 360Nm @ 2,750rpm
Fuel economy, combined 11.7L / 100km
6 UNDERGROUND
Director: Michael Bay
Stars: Ryan Reynolds, Adria Arjona, Dave Franco
2.5 / 5 stars
Company profile
Name: Back to Games and Boardgame Space
Started: Back to Games (2015); Boardgame Space (Mark Azzam became co-founder in 2017)
Founder: Back to Games (Mr Azzam); Boardgame Space (Mr Azzam and Feras Al Bastaki)
Based: Dubai and Abu Dhabi
Industry: Back to Games (retail); Boardgame Space (wholesale and distribution)
Funding: Back to Games: self-funded by Mr Azzam with Dh1.3 million; Mr Azzam invested Dh250,000 in Boardgame Space
Growth: Back to Games: from 300 products in 2015 to 7,000 in 2019; Boardgame Space: from 34 games in 2017 to 3,500 in 2019
The details
Heard It in a Past Life
Maggie Rogers
(Capital Records)
3/5
Essentials
The flights
Etihad and Emirates fly direct from the UAE to Delhi from about Dh950 return including taxes.
The hotels
Double rooms at Tijara Fort-Palace cost from 6,670 rupees (Dh377), including breakfast.
Doubles at Fort Bishangarh cost from 29,030 rupees (Dh1,641), including breakfast. Doubles at Narendra Bhawan cost from 15,360 rupees (Dh869). Doubles at Chanoud Garh cost from 19,840 rupees (Dh1,122), full board. Doubles at Fort Begu cost from 10,000 rupees (Dh565), including breakfast.
The tours
Amar Grover travelled with Wild Frontiers. A tailor-made, nine-day itinerary via New Delhi, with one night in Tijara and two nights in each of the remaining properties, including car/driver, costs from £1,445 (Dh6,968) per person.
