Saudi Arabia: - Alawwal bank, posted record operating profit for the financial year ending 31 December 2017 at SAR 2,446 million, up 4.1% year-on-year. Net profit was also up 25.4% year-on-year at SAR 1,336 million.
The bank’s focus on prudent cost management resulted in improved operational efficiency. Operating expenses declined by 5.2% to SAR 1,265 million, excluding impairment charges. Cost of risk reduced year-on-year however remaining above normalised levels.
Commenting on the financial results, Soren Nikolajsen, Managing Director said: “The results shows the strength of the bank’s core businesses. In the face of challenging economic conditions in 2017, lending activity was slower than anticipated but with a more positive industry outlook in 2018 improvements are expected. We continue to diversify our business, supporting customers across the Kingdom and invest in our network and services.”
At the end of 2017, Alawwal bank’s total assets amounted to SAR 99.9 billion, down 4.9% compared to the previous year.
Alawwal bank’s capital strengthened, creating a solid platform for growth in the years ahead. The bank’s tier 1 and total capital ratio increased to 16.2% and 20.3% respectively.
Alawwal bank’s Chairman Eng Mubarak Al-Khafra said: “We are a strong and safe bank with the highest ever capital levels. The bank is well placed to benefit from the opportunities ahead of us and support the Kingdom’s ambitions as part of Vision 2030.”
Alawwal bank expanded its reach across the Kingdom in 2017, growing its total number of branches to 68 and the ATM network to 560. Additional cash deposit machines were also introduced, improving accessibility to a key banking service for many local businesses. Further expansion of the bank’s market leading digital services saw mobile and online transactions grow 51% year-on-year.
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About Alawwal bank
Alawwal bank is engaged in providing a full range of retail and commercial banking services, as well as a range of investment services including asset management and investment funds. The bank also provides brokerage services in the capital markets, locally and internationally, to individuals and institutions through its specialized and wholly owned subsidiary company "Alawwal Invest".
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© Press Release 2018
