Bank Al-Jazira's stock recorded a decline of 2% in the Saudi market, affected by the results announced by the bank in the fourth quarter of 2021, which came less than analysts' expectations.
According to Arabiya Net, the bank’s annual financial results showed an increase in its net profit after zakat and tax, by 2876.6% to about 1.01 billion riyals in 2021, compared to about 33.8 million riyals in 2020.
The bank said that net income rose by about 972 million riyals in 2021, which is mainly due to the decrease in the net provision for credit losses by about 951 million riyals and an increase in operating income by 8%.
Bank Al-Jazira added that the operating income increased due to the increase in net financing and investment income, net profit from selling financial assets measured at amortized cost, net income from banking services fees and net profit from selling financial assets measured at fair value through other comprehensive income, offset by a decrease in net transfer income. Foreign exchange and net profit of financial instruments at fair value through the income statement and income from other operations.
Bank Al-Jazira indicated an increase in operating expenses without provision for credit losses by 4%, and this is mainly due to the increase in other general and administrative expenses and other operating expenses, offset by a decrease in depreciation and amortization expenses, employee salaries and the like.
According to Al Arabiya.net’s calculations, Bank Al Jazira’s net profit amounted to 228.8 million riyals in the fourth quarter of 2021, compared to losses of about 495 million riyals in the same quarter of 2020.
The bank's profits came in the fourth quarter of 2021, less than the average expectations of analysts.
