By Mohammed Abu Meleeh
Riyadh-Mubasher: Saudi banks' total net earnings rose 5.4% and 3.8% in FY15 and Q4-15, respectively. This indicates that the sector managed to weather the negative impacts of falling oil prices and geopolitical conditions in the region.
However, the sector's Q4 total earnings reached SAR 10.1 billion, rising 3.8% year-on-year from SAR 9.7 billion but falling 4% quarter-on-quarter from SAR 10.5 billion. The full-year combined net profits also increased 5.4% to SAR 43.7 billion, compared with SAR 41.5 billion in 2014.
S&P forecasted the bank's earnings to decline in 2016 on credit rating downgrade and rise in financing costs and credit losses.
The local lenders generated SAR 13.7 billion in operating profits during the fourth quarter, up 4% year-on-year from SAR 13.2 billion and 1.2% quarter-on-quarter from SAR 13.5 billion.
Total assets reached SAR 2.2 trillion at the end of 2015, a rise of 3.4% over SAR 2.1 trillion a year earlier. Meanwhile, the bank's investments dropped 10% to SAR 444.8 billion, compared with SAR 494.4 billion in 2014.
The loan portfolio grew 8.2% year-on-year from SAR 1265 billion to SAR 1369 billion. Customers' deposits also increased 1.5% to SAR 1.66 trillion from SAR 1.63 trillion.
Translated by Abdul Maguid Aboshahla
