August 2022

Ms. Lubna Sulaiman Olayan, Chair of the Board of Directors of Saudi British Bank, announced that performance in the second quarter of 2022 continued to build upon the achievements of 2021 and the start of 2022. The Bank generated a net income of SAR 2,086 million for the six-month period ended 30 June 2022, compared to a net income of SAR 1,889 million for the same period in 2021, an increase of 10% driven mainly by higher net special commission income. For the three-month period ended 30 June 2022 the Bank generated a net income of SAR 1,082 million, compared to a net income of SAR 919 million for the same period in 2021, an increase of 18%. She also noted that total operating income reached SAR 4,402 million for the six-month period ended on 30 June 2022, representing an increase of 12% over the same period in 2021. Net special commission income of SAR 3,132 million over that same period represented an 8% increase, with fees from banking services of SAR 651 million representing a 13% increase. Additionally, exchange income grew by 34%, reaching SAR 359 million.

We expect to build on this performance through the remainder of 2022, and expect further improvements in our revenue base, considering the current rate environment.

Despite an increase in second quarter credit impairment charges, our overall year-to-date cost-of-risk remains within the expected range. All of this combined with continued strong cost management has led to a return on tangible equity of 10% in the second quarter.

The Bank’s Chair further explained that shareholders’ equity reached SAR 54 billion, compared to SAR 53 billion for the same period in 2021, an increase of 2%. Moreover, total assets surpassed SAR 300 billion for the first time in our history, reaching SAR 303 billion, an increase of 11%. The Bank's net financing portfolio amounted to SAR 176 million, an increase of 9% compared to the same period in 2021. Customer deposits rose to SAR 207 billion, an increase of 11%.

Ms. Olayan highlighted that the Bank’s underlying growth continues and sentiment remains strong, evidencing the fact that, despite a turbulent macro-economic backdrop, the Saudi banking sector has weathered the second quarter with remarkable resilience. Progress on the large scale projects in the Kingdom has continued, including NEOM-related activities and those focused on the energy sector. Underlying corporate originations in the quarter remained healthy, while retail performance remained robust with continued growth in our home finance portfolio. We also maintained strong performance in our personal finance and cards products.

During the second quarter, we were named ‘Saudi Arabia’s Best Bank 2022’ by Global Finance Magazine, an award that encompasses a wide range of criteria, including profitability, geographical scope, strategic relations, business development and product innovation – as ever, it is pleasing to receive external recognition for our developments, innovation and financial performance.

Ms. Olayan thanked SABB’s customers for their confidence and loyalty in SABB, and its staff, senior management and Board members for their dedication in delivering on the promises and challenging commitments set for the Bank. And finally, she expressed the Bank’s gratitude to the Central Bank and other government entities for their continued vision, guidance and support.