- Net income grows 12.3% y-o-y
- Financial statement comprises SNB's results for H1 2021 and Samba's results for 3 months following merger completion
- SNB starts realizing efficiency gains and cost and revenue synergies following its creation from the merger of two leading Saudi banks
- Migration of SpeedCash customer accounts to SNB complete; migration of Samba customer accounts on track
04 August 2021, Riyadh – Saudi National Bank (SNB) (ISIN: SA13L050IE10) (SYMBOL: 1180), the new Saudi banking champion created by the historic merger of two leading Saudi banks, announced today its financial results for the first half of 2021; the first announcement since the formal completion of the merger on 1st April 2021.
SNB's net income after Zakat and income tax grew by 12.3% to SAR5,526 million compared to SAR4,922 million in the same period last year. Net income after Zakat and income tax in Q2 2021 grew 1.4% year on year from SAR2,088 million to SAR2,117 million.
Total assets recorded SAR897 billion compared to SAR557 billion in the same period last year, while shareholder equity excluding minority shareholders grew 120% from SAR73 billion to SAR159 billion. In addition, the bank's loan portfolio grew to SAR 503 billion compared to SAR316 billion, while customer deposits recorded SAR588 billion compared to SAR380 billion at the end of the same period last year.
SNB's Q2 financial results cover the results of National Commercial Bank in H1 2021 and Samba Financial Group's results for only the three months following merger completion on 1st April 2021, taking into account losses incurred from credit allocations related to the merger, which are non-recurring and for one time only. Although the standard period for allocating goodwill and valuing assets is 12 months, the initial allocation of goodwill and intangible assets has been completed. We do not expect any fundamental change in the future, and this process will be completed by the end of this year.
Commenting on the results, Ammar A. Al-Khudairy, Chairman of SNB said: "Our first financial results following merger completion reflect the strength of the banking powerhouse we set out to create. We are pleased to see Saudi National Bank already starting to realize efficiency gains and reaping the benefits of the merger's cost and revenue synergies, and that is testament to the management team's success in the ongoing integration of the two banks. As the Saudi economy continues its path towards recovery, we are confident that the coming period will see us go from strength to strength and create even more value for our customers, employees and shareholders.
"We believe that we have barely scratched the surface of the new banking champion's potential. As we press ahead with post-merger integration and roll out our new brand identity across the Kingdom, we are certain that the new brand coupled with our advanced digital banking infrastructure will deliver unique customer experiences propelling the bank into its next phase of growth," Al-Khudairy added.
Post-merger integration milestones continue to be met. SNB has completed the migration of all employee accounts as well as 100% of Samba's SpeedCash customers to NCB's Quick Pay. Additionally, 53% of wholesale banking customers have been successfully migrated, while retail banking accounts have been fully setup in preparation for imminent customer migration.
SNB recently launched its new brand identity bearing the slogan "Let's Shape Tomorrow" which reflects the bank's ambitious vision. The new identity is being rolled out across all customer materials and branches in the Kingdom.