National Commercial Bankâ€™s net profit registers a 2.74 per cent hike in the first quarter
NCB’s net profit rose to SAR 2.70 billion in the first three months of 2017.
National Commercial Bank (NCB) in a statement on Tadawul has reported a 2.74 per cent increase in net profits to SAR 2.70 billion for the first quarter, an increase from SAR 2.63 billion in the corresponding period of 2016, also up from SAR 2.28 billion in December 2016.
Net income increased this quarter compared to the first quarter of 2016 due to the rise in total operating income by 2.9 per cent during the quarter as a result of higher Trading Income, Income from FVIS investment and Gains on non-trading investment and a decline on net special commission income and Fees from banking services. On the other hand, total operating expenses increased by 3.2 per cent mainly driven from the increase in Impairment charges for Credit Losses and the increase in Deprecation of property and equipment which was slightly offset by the decrease in amortisation of intangible assets in addition to the decrease in salaries and employee-related expenses.
From the end of December 2016, net income increased due to the hike in total operating income by 5.6 per cent during the quarter as a result of higher Gains on non-trading investment, Exchange income, Fee income from banking services and Income from FVIS investment. This was offset by a decrease in Trading income. While total operating expenses decreased by 6.4 per cent as a result of the decrease in Other general and administrative expenses and Impairment charge on investment which was slightly offset by the increase in Impairment charge for credit losses.
Special commission income Investments, reached SAR 4.22 billion for the current quarter against 4,397mn in the similar quarter of the previous year with a change of 4.0 per cent. Equity attributable to equity holders of the Bank, reached SAR 60.67 billion in the current period, against SAR 56.97 billion similar period for previous year with a change of 6.5 per cent.