Saudi brokerage firms’ aggregate profit rises 31% in Q1

28/05/2018 Argaam Special

The combined earnings of Saudi brokerage firms jumped 31 percent year-on-year (YoY) to SAR 463.3 million in Q1 2018, data from the Capital Market Authority (CMA), the Kingdom’s market regulator, showed.

 

The higher revenue was backed by a YoY increase of 8 percent in revenue to SAR 1.4 billion in the same period.

 

The number of brokerage firms operating in the Kingdom rose to 84 in Q1 2018 from 83 a year earlier.

 

Income Statement (SAR mln)

Period

 Q1 2017

Q1 2018

Variation

Revenue

1,278.2

1,381.8

+8%

Opex

895.0

876.7

(2%)

Operating income

383.2

505.1

+32%

Other income

5.8

(8.8)

(252%)

Profit/loss of minority interest

13.1

0.5

(97%)

Net profit

352.3

463.3

+31%

 

Revenue from asset management jumped 25 percent YoY to SAR 636.3 million in the first quarter. Trading revenue, however, declined 3 percent YoY to SAR 311.9 million.

 

Revenue by Activity (SAR mln)

Period

 Q1 2017

Q1 2018

Variation

Dealing

322.4

311.9

(3%)

Asset management

509.7

636.3

+25%

Investment banking

163.3

190.2

+17%

Consultations/research

1.2

0.4

(71%)

Custody

30.5

39.6

+30%

Investment

112.5

136.4

+21%

Other revenue

150.2

58.2

(61%)

 

Combined assets grew by 6 percent YoY to SAR 30.7 billion. Shareholders’ equity remained unchanged at SAR 22 billion during Q1.

 

Balance Sheet (SAR mln)

Period

Q1 2017

Q1 2018

Variation

Assets

28,867.9

30,711.1

+6%

Liabilities

6,581.0

8,693.9

+32%

Capital

16,513.6

15,566.4

(6%)

Shareholders’ equity

22,048.4

22,004.1

--

 

Brokerage firms completed SAR 487.6 billion worth of transactions in different equity markets in Q1 2018, a drop of 5 percent YoY.

 

The firms’ transactions accounted for 97.4 percent of total trading activity on the Saudi market.

               

Labor force in brokerage firms slipped 1 percent YoY to 4,385 persons in the first quarter, with the Saudization rate rising to 75 percent from 70 percent in Q1 2017.

 

Trading Value by Region (SAR mln)

Market

Trading Value

Percent to total trading value

Local Market

474,768

97.36%

GCC

764

0.16%

Arab countries

80

0.02%

Asia

6

0.00%

US

11,785

2.42%

Europe

91

0.02%

Others

127

0.03%

Total

487,622

100.00%

Comments {{getCommentCount()}}

Be the first to comment

loader Train
Sorry: the validity period has ended to comment on this news
Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.