The profits of the National Commercial Bank in Saudi Arabia decreased by 22.3% to reach 2.088 billion riyals in the second quarter of 2020, compared to 2.686 billion riyals in the same quarter last year. p>
According to Arabiya Net, the bank attributed the statement in the statement of declining quarterly profits to a decrease in total operating income and an increase in total operating expenses.
Total operating income decreased by 5.6% as a result of a decrease in net special commission income and investment income, which was partially offset by a rise in banking service income and foreign exchange income and expenses decreased Other operations.
The bank recorded an increase in total operating expenses including credit losses of 18.4%, due to an increase in the net provision for decrease in expected credit losses, offset in part by a decrease in salaries and employee expenses, Rents, building expenses, depreciation / amortization of property, equipment, programs, and right to use assets and other general and administrative expenses.
In his interview with Al-Arabiya, Hisham Abu Jameh, CEO of Wealth Management, in a document on financial services, Hisham Abu Jameh, said that looking at the allocations of Saudi banks requires waiting to be explored by the results of the third semester. And the fourth, and that will be more accurate in knowing the impact of the strong support programs that came from the state and the monetary institution for borrowers.
Abu Jamea added that some banks may have postponed the actual impact of the borrowing situation until the end of the year, and the results for the second quarter of this year may be seen as a temporary indication of profitability Banks, as they include a decline in the results of operations, due to the closure period to face the Corona pandemic.
He predicted that loan growth will increase due to companies being affected and needing more money to improve their situation after the pandemic, and there will be a variation in the impact of the pandemic between one customer and another, and the interest will affect Zero to senior borrowers, but some other borrowers will have variations in the impacts and behavior of obtaining financing in the future. He referred to the growth of Fintech's financial technology operations, which the Kingdom seeks to expand through many legislations and facilities.
At the level of the first six months of this year, the National Commercial Bank recorded a decline in profits for the period by 9.9% to 4.922 billion riyals, compared to 5.461 billion riyals in the first six months From last year.
