Saudi-based Riyad Bank said Monday its annual net profit for 2022 soared 17% year-on-year to $1.9 billion (SAR 7 billion), driven by a surge in total operating income, offsetting an increase in expenses.
Full-year earnings Riyad Bank's total comprehensive income, including all equity changes over the last year, declined by 7.7% year-on-year to $1.5 billion (SAR 5.5 billion).
The bank posted a sharp rise in total operating income by 41.7% to $3.4 billion (SAR 12.9 billion) for last year, offsetting a gain of 11.2% in total operating expenses, which hit $1.2 billion (SAR 4.4 billion). Net operating income also increased by 21.2% to $2.7 billion (SAR 10.1 billion).
Last year, the growth in total operating income was led by high net special commission income, fee and commission income, and exchange income. However, the rise was partially offset by a drop in gains on the disposal of non-trading investments and dividend income.
On the other hand, the increase in total operating expenses was driven by an impairment charge for investments, an impairment charge for credit losses and other financial assets, other general and administrative expenses, and salaries and employee-related expenses, the bank added.
The Saudi bank's total assets grew last year by 10.4% year-on-year to $95.8 billion (SAR 359.6 billion), while investments dropped by about 11% year-on-year to $1.4 billion (SAR 5.2 billion).
Total loans rose 11.5% from a year earlier to $64.6 billion (SAR 242.4 billion), while deposits increased by 13.4% to approximately $64 billion (SAR 240 billion). Additionally, the total provisions for expected credit and other losses surged 50.2% to $341.1 million (SAR 1.3 billion) last year.
