SNB announced a net income after zakat and income tax of SAR 4.5 billion by the end of Q1 2022, representing an increase of approximately 32% compared to SAR 3.4 billion of the same period last year. The announcement followed today's release of the consolidated financial statements for the period ending March 31, 2022.
The Bank explained in a statement to Tadawul on Wednesday that the reason for the income increase during the first quarter of 2022 compared to the same quarter of 2021 is an increase of 41% in total operating income as a result of an increase in net special commission income and fees from banking services, as well as foreign exchange income and a decrease in other expenses. During Q1, total operating income amounted to SAR 8.1 billion, up from SAR 5.7 billion in the same period last year. The net income attributable to shareholders' equity increased by 32% as total operating income increased.
The Bank's assets increased in the current period by 54% to SAR 921.6 billion, up from SAR 599.6 billion at the end of the same period last year. Current earnings per share amounted to SAR 0.98, down from SAR 1.1 in the same period last year. In addition, total operating expenses increased by 52%, including the net impairment charge for expected credit losses.
The Bank attributed the increase in net profit during the first quarter of this year compared to the previous quarter to an increase in net income of 34% due to an increase in total operating income and a decrease in operating expenses, including the net impairment charge for expected credit losses, and an increase in total operating income of 11% due to an increase in banking service fees, increased investment income*, and a decrease in operating expenses.
The Bank also noted a 13% decrease in total operating expenses, including the net impairment charge for expected credit losses, indicating that this is primarily due to lower employee salaries and expenses, reduced rent and premises costs, and other general and administrative expenses.
The current period's net impairment charge for expected credit losses increased by 34% to SAR 385 million, compared to SAR 286 million in the same period last year. Earnings per share for the current and previous years were calculated by dividing the current year net income attributable to equity holders of the Bank (adjusted for Tier 1 Sukuk costs) by the weighted average number of shares outstanding during the period (4,437,948 thousand, compared to 2,992,891 thousand in 2021).