RIYADH: Saudi Arabia’s Alinma Bank has recorded a 37.8 percent surge in 2021 profits, propelled by higher operating income.
The bank’s net profit reached SR2.7 billion ($722 million), against SR1.97 billion a year earlier, according to a bourse filing.
Despite an increase of 4.2 percent in expenses, operating income went up by 17.3 percent due to higher income from financing and investment activities, the bank said in a statement.
The rise in expenses was partly capped by a lower impairment charge for expected losses, reaching SR1.27 billion during 2021, compared to SR1.42 billion a year earlier, it added.
The bank’s assets rose by 10.6 percent year-on-year to SR173 billion, and the profit per share went up from SR0.99 to SR1.31.
Further to the results, the bank had earlier announced the establishment of a special purpose vehicle company, called Alinma SPV Limited, in the Cayman Islands.
With a capital of SR187,500 the newly established unit will manage and execute financial derivatives transactions as well as repurchase agreements with international banks.
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