Bank AlJazira 2022 net profit up 10% to SAR 1.10 bln; Q4 at SAR 243.8 mln

Bank AlJazira reported a rise of 10% in 2022 net profit to SAR 1.10 billion, compared to SAR 1 billion in 2021.

The growth was spurred by a 10% decline year-on-year (YoY) in total operating expenses (OpEx). The lower OpEx came primarily due to a decrease in net impairment charge for financing and other financial assets, impairment charge for other real estate, rent and premises related expenses and depreciation and amortization expenses.

The bank reported an increase in net gain on fair value through income statement (FVIS) financial instruments, other operating income, dividend income and net exchange income.

This came despite an increase in other general and administrative expenses, salaries and employee-related expenses and other OpEx.

Bank AlJazira’s operating income also decreased by 1% YoY. The decline was attributed to a drop in net financing and investment income, net gains on derecognition of financial assets at amortized cost, net fees from banking services and net gains on derecognition of financial assets at fair value through other comprehensive income (FVOCI).

The bank recorded higher Zakat charges and zero one-time gains on deemed disposal of an associate.

In Q4 2022, net profit rose 7% to SAR 243.8 million from SAR 228.8 million a year earlier.

On a sequential basis, net profit saw a 4.8% increase from SAR 232.67 million.

Total shareholders’ equity, with no minority interest after excluding sukuk, stood at SAR 11.73 billion as of Dec. 31, 2022, down from SAR 12.02 billion a year earlier.

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