National Commercial Bank SJSC : Earnings Release
Jeddah, 13 August 2017 - In 2Q 2017, NCB delivered a solid set of results with net income stable at SAR 2,451 million. Total operating income declined by SAR 182 million to SAR 4,478 million compared to the same quarter last year. Domestically, operating income was stable as healthy net special commission margin and income were offset by lower fee and investment income. Total operating income from International operations declined by 33%, this was principally driven by around 20% depreciation in the Turkish Lira. Total operating expenses improved by SAR 301 million (-17%) year-on-year to SAR 1,521 million. The cost base improvement was relatively broad-based and benefited from the cessation of intangible assets amortisation as well as currency depreciation in the Turkish subsidiary. The cost to income ratio stood at 34% at the end of June 2017.
Total assets increased by SAR 8,646 million from 31 December 2016 to SAR 449,776 million, which was in line with the more subdued economic environment. Financing and advances grew to SAR 256,901 million as at 30 June 2017. Domestically, financing and advances increased for the Corporate (+3%) and Consumer (+2%) segments, whilst International advances decreased (-6%) due to both organic decline and the weakened Turkish Lira. The NPL ratio stood at 1.64% at the end of the second quarter 2017, with the NPL coverage ratio maintained at 150% and the NCL ratio at 0.7%. Customers' deposits, which represented 81% of NCB's total liabilities mix, were stable at SAR 314,690 million during the first half of 2017. Current and savings accounts, which represented 79% of customers' deposits, grew by 11% since the beginning of the year.
NCB maintained its strong financial position, with a core equity tier 1 capital ratio of 14.1% and a liquidity coverage ratio of 166.1%. Equity attributable to the equity holders of the bank, inclusive of the Tier 1 Sukuk, rose by SAR 1,139 million to SAR 59,876 million from 31 December 2016. Risk-weighted assets increased to SAR 379.5 billion since the beginning of the year.
Mansour S. Al Maiman, Chairman of the Board of NCB Group:
'This quarter's performance was achieved against economic headwinds. As a result, client activity was slightly lower than in the first quarter and dampened the growth momentum of our financing activities. We continue to navigate the current environment by working very closely with our clients, actively managing our expense base and enhancing group-wide efficiency. Our strategy, which we have been executing for the past three years, is geared towards strengthening our domestic leadership position, maintaining our fundamental earnings power and the ability to grow in target sectors where NCB has competitiveness and scale.'
For more information please contact NCB Group:
Institutional investor contact
Mr. Abdulbadie Alyafi
Head, Investor Relations
T: +966 12 646 3988
Mr. Faisal Alayyoubi
Head, Marketing & Communication
T: +966 12 646 2272
National Commercial Bank
P.O. Box 3555
21481 Jeddah, Kingdom of Saudi Arabia