Lubna S. Olayan, chair of the board of directors of Saudi Awwal Bank, announced the bank’s financial results for the period ending March 31.
SAB recorded a net profit after zakat and income tax of SR2.04 billion ($543.9 million) for the period ending March 31, representing an increase of 16 percent compared to the same period of 2023. The total operating income rose 7 percent to SR3.44 billion.
Commenting on the financial results, Olayan said: “I am delighted to share with you the highlights of our achievements in the first quarter of 2024. It has been an exceptional period for SAB, marked by achieving significant milestones and continued success.
“Our loan growth has been remarkable, outpacing the market with a solid 6 percent year-to-date increase. This growth has been primarily driven by institutional and large corporate businesses, showcasing the strength of our offerings in these segments. Notably, our mortgage growth has also been a key component of growth, with a commendable 16 percent origination market share.”
She said SAB’s trade-related business has experienced a similar upward trajectory, rising by 6 percent, with multinational activity continuing to expand, underscoring the bank’s global reach and influence.
Olayan added: “In addition, I am pleased to announce that we have achieved record revenue of SR3.4 billion, representing an impressive 8 percent quarter-on-quarter growth. This exceptional performance has contributed to a return on tangible equity of 16.5 percent, reflecting a 16 percent year-on-year increase in net income.
“Our commitment to excellence underlies these results and has garnered industry recognition, as we were honored with the esteemed ‘Best Trade Finance Provider in Saudi Arabia’ award by Global Finance and the prestigious ‘Best Domestic Private Bank in Saudi Arabia’ award by Euromoney Private Banking Awards. These accolades highlight the strength and diversity of our services and our unwavering dedication to meeting our customers’ needs with efficiency and innovation.”
She said that amidst a challenging global environment, SAB has also experienced success in furthering its sustainability agenda.
“As we look toward the next three years from a business perspective, we have strengthened our ESG governance, sustainable finance practice, and focus on climate change. Our commitment to sustainability has been recognized by Global Finance designating SAB the ‘Best Bank for Sustainable Finance in Saudi Arabia.’“
Olayan said that the bank’s strategy positions it as a future-ready institution, a leader in the digital and ESG realms, and a clear leader outpacing the lending market.
“We also aim to be a formidable player in corporate banking and treasury, while continuing to enhance our reputation as the bank of choice for an even broader range of customers.
“Lastly, our partnership with HSBC remains instrumental to our success and journey, further solidifying our position as one of the leaders in the banking industry in the Kingdom of Saudi Arabia,” she added.
Olayan thanked the bank’s board members, senior management committees, and the entire SAB staff. “I extend my sincerest gratitude to them for their contributions. I would also like to express our appreciation to HSBC for their unwavering support and to the Saudi leadership and our regulators, the Saudi Central Bank and the Capital Market Authority, for their continued guidance and assistance,” she added.