Saudi National Bank profit up 6% on higher income

Reuters/Faisal Al Nasser

Saudi National Bank (SNB) reported a six percent year on year rise in net profit for the third quarter of 2023, driven by higher operating income and lower impairment charges.

The kingdom’s biggest lender by assets made a net profit of SAR5.01 billion ($1.34 billion) in the third quarter.

Total operating income improved by three percent to SAR8.7 billion, driven by higher net special commission income, fees from banking services, and foreign exchange income, the lender said in a stock exchange filing on Tuesday.

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Operating expenses declined 10 percent in the quarter to SAR2.7 billion, mainly from a decrease in net impairment charges for expected credit losses.

Total operating expenses before provisions were SAR2.76 billion, up 13.6 percent from the previous year.

Net income for the first nine months rose nine percent to SAR15.04 billion on higher operating income and lower expenses.

SNB in May said its 9.88 percent shareholding in investment bank Credit Suisse will convert to nearly 0.5 percent of UBS following the merger of the two Switzerland-based lenders.

The Saudi bank, a top shareholder in Credit Suisse, said the Swiss lender’s investment carrying value declined 70 percent to SAR1.3 billion as of March 31, 2023.