Saudi Arabia’s National Commercial Bank posted a 2.1% rise in profit for the first three months of the year to 2.83 billion riyals ($750 million) compared to 2.78 billion riyals for the same quarter in 2019.
NCB is the Kingdom’s biggest bank by assets.
The bank said in a filing with the Saudi stock exchange on Sunday (May 17) that the higher net income was derived from an increase in total operating income and lower zakat and tax.
“Total operating income increased by 7.2% mainly due to the increase in net special commission income, investment related income, fees from banking and services and foreign exchange income partially offset by higher other operating (expense),” said NCB.
However, total operating expenses, including impairments, were higher by 18.5%.
“Net impairment charge for expected credit losses reached to 396 million riyals for the current period against 145 million riyals in the similar period of the previous year with an increase of 173%,” NCB said.
Customer deposits rose by 21.17% to 375.24 billion riyals and financing and investment hit 305.21 billion riyals, an increase of 14.22%.
The Shariah-compliant bank’s assets rose by 15.1% to 535 billion riyals.
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