Alinma Bank boosts provisions by SAR 360 mln in Q1 2020: CEO

Alinma Bank increased provisions by SAR 360 million to over SAR 3.1 billion in Q1 2020, Al Arabiya TV reported, citing Chief Executive Officer Abdul Mohsen Al Fares.

"Setting aside provisions was not directed by the Saudi Arabian Monetary Authority's (SAMA), but rather, it aimed at hedging the bank against any potential losses and boosting its credit portfolios," said Al Fares.

Alinma's investment portfolio rose by 19% year-on-year (YoY) to a lifetime record of SAR 24.6 billion in Q1 2020, Al Fares indicated.

Al Fares expressed optimism about Q2 2020 financial figures thanks to SAMA’s cash-boosting measures. The central bank's SAR 50 billion worth of incentive package was directed to support the private sector through bank deposits, partially waive the fees related to points of sale (POSs) and eliminate burden on small and medium enterprises (SMEs).

Alinma Bank posted a 42% profit decline YoY to SAR 370 million in Q1 2020, data compiled by Argaam showed.