Saturday, 16 October 2021 08:29 GMT

Saudi core operating income increases by 8.4 percent

(MENAFN)Zawya stated while referring to management consulting firm Alvarez & Marsal (A&M)'s KSA Banking Pulse that Saudi Arabia's top 10 banks witnessed strong quarter-on-quarter improvement in financing and deposits in the April-June period of 2021.

In comparison to 1.2 percent in the January-March period of 2021, core operating income rose by 8.4 percent, the fourth increase consecutively, as loans and advances (L&A) rose by 13.1 percent and deposits by 12.6 percent.

The report further showed that L&A and deposit expansion were primarily supported by the merger of National Commercial Bank and SAMBA to form Saudi National Bank (SNB).

Quarter-on-quarter, operating expenses increased by 13.7 percent and impairments rose by 81.6 percent, hitting the second quarter's overall operating efficiency for the banking sector. This affected net profit for the top ten banks in the Kingdom.

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