Sunday 23, July 2017 by Nabilah Annuar

Arab National Bank reports a profit of SAR 1,617.1 million for the first half of 2017

Arab National Bank announces the interim financial results for the period ending on 30 June 2017.

According to a statement on Tadawul, Arab National Bank (ANB) recorded a net profit of SAR 1,617.1 million for the first six months of 2017, up 3.18 per cent from the corresponding period last year. The bank posted a 10.55 per cent increase quarter on quarter from SAR 768 million in Q1 2017 to SAR 849 million in Q2 2017.

ANB recorded an increase of 2.67 per cent in total assets from SAR 166,578 million in the first half of last year to SAR 171,032 million in the first six months of this year.

Net profit for the quarter increased due to the increase in total operating income by 7.8 per cent resulting mainly from the increases in net special commission income, dividend income and gains on non-trading investments in addition to decrease in net unrealized losses from FVIS financial instruments; offset by decreases in net exchange income, net banking fees and commission income, net trading income, and other operating income. Furthermore, total operating expenses increased by 12.3 per cent resulting mainly from the increases in impairment charges for credit losses and rent and premises related expenses; offset by the decreases in salaries and employees related expenses, impairment charges for investments and depreciation expenses.

Net profit for the period increased due to the increase in total operating income by 5.1 per cent resulting mainly from the increases in net special commission income, net trading income in addition to the decrease in net unrealized losses from FVIS financial instruments; offset by decreases in net banking fees and commission income, net exchange income, gains on non-trading investments, and other operating income. Furthermore, total operating expenses increased by 7.1 per cent resulting mainly from the increases in impairment charges for credit losses, and rent and premises related expenses; offset by decreases in salaries and employees related expenses, general and administrative expenses, impairment charges for investments and depreciation expenses.

The net profit for the quarter increased due to the increase in total operating income by 10.5 per cent resulting mainly from the increase in net special commission income, in addition to the increases in dividends income, gains from non-trading investments and other operating income, offset by decreases in net exchange income, net banking fees and commission income, and net trading income. Furthermore, total operating expenses increased by 10.6 per cent due to the increase in impairment charges for credit losses and other general and administrative expenses; offset by decreases in rent and premises related expenses, salaries and employee related expenses, and depreciation expenses.

The total special commission / financing and investment income for the current quarter reached SAR 1,530.9 million, against SAR 1,426.1 million for the same quarter last year, an increase of 7.3 per cent. - The total comprehensive income for the six-month period ended 30 June 2017 reached SAR 1,658 million, against SAR 1,413.7 million for the same period last year; an increase of 17.3 per cent. The total comprehensive income for the three-month period ended 30 June 2017 reached SAR 971 million, against SAR 806.8 million for the same quarter last year; an increase of 20.3 per cent.

The total shareholders equity (excluding the minority interest) for the current period reached SAR 23,591 million, against SAR 21,989 million for same period last year, an increase of 7.3 per cent.

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