The Saudi British Bank (SABB) profits decreased by 10.5% to reach 1.05 billion riyals during the third quarter of this year, compared to 1.17 billion riyals in the same quarter of the year The past.
According to Arabiya Net, the bank attributed the decline in profit, during the third quarter on an annual basis, to the decrease in total operating income; This was partly offset by lower total operating expenses and provision for zakat and income tax.
and continued: The decrease in total operating income is due to the decrease in net special commission income as a result of lower reference interest rates, currency exchange earnings, dividend income, fee and commission income and trading income. .
total operating income reached 2.14 billion riyals during the third quarter of 2020, compared to 2.67 billion riyals during the same quarter of 2019, a decline of 19.8%.
and SABB bank transferred the loss during the first nine months of this year, about 4.85 billion riyals, compared to a net profit of 2.08 billion riyals during the same period of 2019.
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The bank attributed recording a net loss mainly to proving the decline in the value of goodwill during the current period by about 7.418 billion riyals.
He explained that the decline in the value of goodwill is a one-time accounting event and will not affect the capital, the liquidity of the bank, the degree of financing, the strategic strength, the competitive advantages of the bank, or our ability to Lending and support to customers, service standards, products, or any of our employees.
and the goodwill was proven after the merger between SABB and Alawwal Bank in June 2019. The decline in the goodwill value was for the following two reasons:
1 - The significant and temporary rise in the bank's share price on the date of the merger, due to Saudi Arabia joining the MSCI EM Index.
2- The unprecedented Covid-19 pandemic and its unexpected appearance, and its impact on the economy, have contributed to the outcome of future returns expectations related to the decline in value.
