BSF achieved Net Profit of SR 3,510 million for the year ended December 31, 2016, compared to SR 4,036 million for 2015 representing a decrease of 13%.
Net Profit for the fourth quarter of 2016 has reached SR 374 million against SR 950 million for the same period of the previous year.
This decrease is due to a one-off credit event which has been fully provisioned at the end of 2016.
On the other hand, Revenues were solid across 2016 reaching SR 6,400 million compared to SR 6,291 million for 2015, an increase of 1.7%. Revenues were supported by Special Commission Income amounting to SR 4,256 million, compared to SR 4,055 million in 2015, a robust increase of 5%.
Loans and advances portfolio reduced over fourth quarter 2016 as need for Corporate lending slowed down but still grew by a sound 4.6% reaching SR 129,458 million at the end of 2016.
Customer deposits grew meaningfully standing at SR 158,458 million at the end of 2016, an strong increase of 11.7% compared to 2015 as BSF maintained solid liquidity profile.
BSF simultaneously announces that its Board of Director has recommended a distribution of a final dividend of SR 0.50 per share. After factoring in the interim dividend of SR 0.55 per share already paid in August, it represents a total dividend of SR 1.05 per share for the year 2016, in line with the level distributed in 2015.
The Managing Director Mr. Patrice Couvegnes said, “BSF has taken the position to fully clean-up a one-off credit event over 4th quarter. This conservative and protective measure has dented an otherwise solid set of results for 2016 achieved in a more challenging environment. This momentum coupled with strong fundamentals built progressively over the past years allowed BSF Board to recommend full year dividend equal to the record level distributed in 2015. In 2017, BSF will continue moving forward opening up a new Medium Term Plan in tune with the transformation at play, embracing the kingdom’s 2030 vision and digital bank opportunities. The successful launching of “Jana” Loyalty Program, the most innovative and complete banking reward program in KSA, is an example of our efforts to offer the best standards to our clients.” He concluded “BSF will continue to play its key financial role in the local economy standing close to its corporate and individual clients and uphold its position as the bank of excellence”