Saudi Arabia's Al Jazira Bank reports 21 increase in profits in 2024

(MENAFN) Saudi Arabia's Al Jazira bank reported a 21 percent increase in profits last year, reaching 1.2 billion riyals ($327 million), according to a disclosure published on the Saudi Stock Exchange (Tadawul) website on Sunday. The bank attributed this growth to a 13 percent rise in operating income, driven by higher net financing and investment income, increased banking service fees, gains from financial instruments at fair value, other operating income, dividend income, and net currency exchange income. However, this was partially offset by a decline in net gains from the sale of financial assets at amortized cost.

Net special commission income from financing grew by 18 percent to 2.11 billion riyals, while net income from financing and investment saw an 11 percent increase. This was supported by a 27 percent rise in income from investments and financing, which was further strengthened by higher earnings from financing activities and balances with banks and other financial institutions.

Despite the overall increase in profits, the bank experienced a 39 percent rise in net provisions for credit losses, primarily due to higher provision requirements in the corporate finance sector. However, this was partially mitigated by a reversal of the provision for impairment of other properties, amounting to approximately 42.6 million riyals.

The bank's financial performance highlights steady growth in key income streams, supported by robust investment and financing activities. However, the increase in credit loss provisions reflects the challenges in the corporate finance sector, signaling the need for continued risk management efforts.

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