Riyadh – Mubasher: Alawwal Bank posted a 23.3% year-on-year fall in its profits for the first quarter of 2019, recording SAR 219.5 million.

The decline in Q1-19 profit was attributed to higher cost of risk, up by 31.4% compared to Q1-18, according to the bank’s recent statement.

Operating income of the Saudi-based lender increased by 4.6% year-on-year to SAR 899.6 million during the three-month period ended 31 March.

Cost to income ratio reached 36% in Q1-19, versus 37.5% in the same period of the previous year, according to the statement.

“This is an exciting time for Alawwal bank as we are working to finalise the proposed merger with Saudi British Bank (SABB),” Mubarak Al-Khafra, chairman of Alawwal Bank, commented.

Alawwal bank’s Tier 1 capital ratio reached 20.3% during the first three months of 2019, the highest level ever recorded for the bank.

The total capital adequacy ratio stood at 21.3% in Q1-19, compared to 21.7% in Q1-18.

“The slight drop is mainly due to the redemption of the bank’s SAR 2.5 billion Tier 2 Sukuk in December 2018,” the statement highlighted.

By the end of March, Alawwal bank’s total assets amounted to SAR 79.6 billion.