Riyad Bank increased its net profits by 6.55 percent year on year and 3.73 percent on a quarterly basis during the second quarter of 2022.
According to the bank’s financial data, net profit after zakat and tax was approximately 1.61 billion riyals, compared to 1.51 billion riyals in the previous quarter of 2021.
The increase in net profit was attributed by the bank to an increase in total operating income, which was partially offset by an increase in total operating expenses.
Total operating income increased primarily as a result of increases in net special commission income, net fee and commission income, and net foreign exchange income. On the other hand, net gains from the sale of non-trading investments, net trading income, and income from other operations all fell.
The increase in total operating expenses was primarily due to an increase in the provision for impairment in the value of investments, employee salaries and other similar expenses, and other operating expenses, which was offset in part by a decrease in other general and administrative expenses.
On the level of semi-annual profits, the bank recorded an increase of 10.44 percent, bringing the net profit to 3.16 billion riyals, compared to 2.87 billion riyals in the first half of 2021.
The net provision for credit losses for the second quarter of 2022 was approximately 353 million riyals, up from 248 million riyals in the same period last year (a 42.3 percent increase) and 255 million riyals in the first quarter of 2022. (an increase of 38.7 percent).
The net provision for credit losses for the six-month period ending June 30, 2022, was approximately 608 million riyals, up 10.5 percent from 550 million riyals for the same period last year.
Moreover, Riyad Bank announced that its net profit increased by 14.7 percent year on year during the first quarter of 2022, reaching 1.55 billion riyals after zakat and tax, up from 1.35 billion riyals in the first quarter of 2021.
