Saudi banks' Q3 results improve YOY as provisions fall; Zimbabwe ups rates

Four of the five largest Saudi Arabian banks by assets reported year-over-year increases in third-quarter net income, S&P Global Market Intelligence data shows, aided by the recovering economy and lower provisions for expected credit losses.

The two biggest lenders in the country, The Saudi National Bank and Al Rajhi Banking & Investment Corp., both reported net income of 3.79 billion riyals for the period, compared to 3.16 billion riyals a year ago for SNB and 2.66 billion riyals for Al Rajhi.

SNB attributed the growth to lower provisions as net impairment charges fell to 725 million riyals, down 69.9% from the previous quarter. Al Rajhi, which has seen steady net income growth over the past 12 months, said the result was driven by a rise in its total operating income despite higher impairment charges on an annual basis.

Riyad Bank's net income for the period rose to 1.54 billion riyals from 1.30 billion riyals in the prior year, while Banque Saudi Fransi's net income almost tripled year over year to 907 million riyals from 333 million riyals. Banque Saudi Fransi attributed the rise to a 32.4% decline in total operating expenses, mainly due to lower provisions for credit losses, and a 9.3% increase in total operating income.

Meanwhile, The Saudi British Bank's third-quarter net income declined to 886 million riyals from 1.05 billion riyals despite lower provisions and a drop in total operating expenses. The lender said the fall was driven by a decline in total operating income, as well as higher zakat and income tax charges.

Other news

* First Abu Dhabi Bank PJSC posted a third-quarter profit attributable to shareholders of 3.85 billion United Arab Emirates dirhams, a 53% increase from 2.51 billion dirhams a year ago. Its attributable profit in the first nine months jumped 26% year over year to 9.21 billion dirhams.

* Abu Dhabi Islamic Bank PJSC reported a year-over-year decline in third-quarter profit attributable to equity holders to 492.6 million dirhams from 533.4 million dirhams. For the nine months ended Sept. 30, the bank's attributable profit stood at 1.60 billion dirhams, up from 1.12 billion dirhams in the year-ago period.

* Qatar-based Doha Bank QPSC's third-quarter net profit rose year over year to 277.5 million riyals from 270.8 million riyals.

* Zimbabwe's central bank raised its bank policy rate to 60% from 40% in an effort to stabilize a free-falling currency and curb rising inflation, Bloomberg News reported. The decision also came as a response to issues raised by Parliament in recent pre-budget discussions, according to New Zimbabwe.

* U.S.-based The Bank of New York Mellon Corp. expects its operations in the Middle East to outperform global business growth in the coming five years on the back of growth in Saudi Arabia and the UAE, The National reported, citing Hani Kablawi, chairman of BNY Mellon's international operations.

* The Egyptian central bank maintained its key overnight deposit, overnight lending and main operation rates at 8.25%, 9.25% and 8.75%, respectively.

* Nigerian bank FBN Holdings PLC named Nnamdi Okonkwo new group managing director, replacing U.K. Eke on Jan. 1, 2022.

* Kuwait-based Warba Bank KSCP appointed Dharar Abdullah Dakhil al-Dakhil chief risk officer.

* Saudi Arabia is in discussions with 7,000 global companies with annual revenues of at least $1 billion to encourage them to open regional headquarters in the country, Bloomberg News reported. The government is offering incentives including tax breaks and flexible visa requirements in a bid to better compete as a major financial hub with Dubai in the UAE, according to the report.

* Kenya-based Equity Group Holdings PLC has earmarked 500 billion shillings to lend to companies based locally and in South Africa that are planning to invest in other parts of Africa, Business Daily Africa reported. It is seeking to gain a foothold in South Africa without establishing physical branches there, the report said.