Riyadh – Mubasher: Alinma Bank reported an 11.27% decline in annual profits last year, to around SAR 2.54 billion, compared with SAR 2.86 billion for 2018, according to a statement to the Saudi Stock Exchange (Tadawul).

The decline in profits was attributed to a decrease in net income by 11%, as a result of restating the net 2018 profit by adding SAR 556 million to reflect the impact of a settlement agreement between the bank and the General Authority for Zakat and Tax (GAZT).

Accordingly, the previously reported net income for 2018 has been restated from SAR 2.52 billion to SAR 2.857 billion, while earnings per share for the year 2018 were increased from SAR 1.69 to SAR 1.92, in addition to the charge of SAR 282 million as Zakat expenses for the year 2019.

Alinma further noted that net income before Zakat provides a more realistic indicator, with a 12% increase that resulted from a 16% growth in total operating income, mainly due to the higher income from financing and investment, in addition to higher income from banking fees, and exchange income, and FVIS investment income.

On the other hand, total operating expenses increased by 20% as a result of higher provisions, salaries, and general and administrative expenses.