Head of Asset Management at Rasana Financial, Thamer Al-Saeed, said in an interview with Al-Arabiya channel that the results announced by Saudi companies do not reflect a significant growth in profits, but rather a slight growth or decline in profits, and this means that we have reached the ceiling of returning to business. In Saudi Arabia, our normal economic performance, and this is a good situation.
Regarding the results Banque Saudi Fransi Al-Saeed said, “There is a greater increase in credit provisions than the increase in the lending portfolio compared to the same period last year, and this gives us an explanation that it largely hedges once morest doubtful loans.”
He added that Banque Saudi Fransi chose the best option, which is hedging and safety, by enhancing the volume of provisions. Therefore, in general, the results are back to normal, and it is reasonable to tend to enhance provisions, especially as they are linked to the lending portfolio and other financial assets.
Banque Saudi Fransi had announced a 12.2% quarterly profit growth in the first quarter of 2022 to 875 million riyals, compared to 780 million riyals in the first quarter of 2021.
On a quarterly basis, profits decreased by 11.9%, as the profits of the previous quarter were 993 million riyals.
Banque Saudi Fransi attributed the first-quarter profit rise on an annual basis to an increase in total operating income by 3.06%.
The rise in total operating income supported the growth of net special commission income, foreign exchange income and other operating income, which was offset by a partial decrease in net fee and commission income and trading income.
At the same time, this decrease in total operating expenses is mainly due to a decrease in the provision for credit losses and other financial assets, in addition to employee salaries and expenses, which was offset by a partial increase in other operating, general and administrative expenses.
Suleiman Al Habib’s results
Commenting on the results of the Sulaiman Al Habib Group, the Head of Asset Management at Rasana Financial, Thamer Al-Saeed, said in an interview with Al-Arabiya channel, “What we expect from the Sulaiman Al-Habib Group is hospital admission, bed capacity and expansions to be reflected in the group’s revenues.”
He said, “There are multiple hospitals in different cities as a new model, and it will be twice the current bed capacity, and we have noticed that the group has increased distributions, and this is a good sign, as the distributions are high compared to its market value, and we must not forget that the company has moved significantly, and it is the highest in terms of evaluation compared to the rest sector companies.