Riyad Bank profits drop 16% for year 2020

Riyad Bank profits drop 16% for year 2020
(Reuters)
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Updated 24 February 2021

Riyad Bank profits drop 16% for year 2020

Riyad Bank profits drop 16% for year 2020

RIYADH: Riyad Bank recorded a 15.8 percent drop in profit for 2020 to SR 4.7 billion ($1.25 billion), compared to SR 5.6 billion in the previous year, the company stated on the Saudi Stock Exchange (Tadawul) today.

The net income decrease is attributed to an increase in total operating expenses by 23.8 percent, resulting from a higher net impairment charge for credit losses and other financial assets and investments.

This was partially offset by an increase in total operating income by 4.6 percent, due to the rise in net special commission income, trading, exchange income, net income from other operations and net gains on non-trading investments.

The impairment charge for credit losses for the year ended 31 Dec. 2020 was SR 1,987 million, as compared to SR 970 million for the previous year.

The impairment charge for credit losses for the three-month period ended 31 Dec. 2020 was SR 648 million, as compared to SR 335 million in the corresponding period of the previous year and to SR 466 million for the three-month period up to 30 Sept. 2020.

The zakat charge for the three-month period ended 31 Dec. 2020 was SR 277 million, as compared to SR 130 million in corresponding period of the previous year and to SR 177 million for the three-month period ended 30 Sept. 2020.