Arab National Bank reported a net profit of USD 281.3 million for the first six months of 2021, compared to USD 301.3 million for the same period last year, a decrease of 6.6%.
Total operating income for the first six months of 2021 amounted to USD 783.4 million compared to USD 789.2 million for the same period last year, a decrease of 0.7%.
Total assets as of June 30, 2021 amounted to USD 48.5 billion, investments to USD 11.7 billion, the loan portfolio to USD 31.4 billion and customer deposits to USD 34.7 billion.
Riyadh, Kingdom of Saudi Arabia; 29 June 2021: The Saudi Real Estate Refinance Company (SRC), a wholly owned company of the Public Investment Fund (PIF), today signed a partnership agreement with Arab National Bank (ANB). The partnership agreement is aimed at providing long-term liquidity in the housing financing market to boost the rate of Saudi homeownership to 70% by 2030, in line with the objectives of the Vision 2030 housing programme.
The agreement with ANB, the latest among several partnerships with banks and real estate finance companies operating in the Kingdom, further testifies SRC’s strategic objectives of finding innovative ways to enable home financing originators to effectively manage risks, liquidity and capital adequacy requirements. SRC aims to promote the growth and stability of the real estate finance market by facilitating the provision of more affordable home financing options for Saudi citizens.
The partnership agreement was signed by SRC’s CEO Fabrice Susini and Obaid Abdullah Al-Rasheed, Managing Director and CEO of ANB. As per the terms of the agreement, SRC will purchase a significant portion of ANB’s housing finance portfolio and provide liquidity to ANB, which in turn provides greater homeownership opportunities for over two million of the bank’s customers.
Commenting on the partnership, His Excellency Majid Al-Hogail, Minister of Municipal and Rural Affairs and Housing, Kingdom of Saudi Arabia, and Chairman of SRC said: “This agreement is the latest in a series of cooperative partnerships between the financing parties in the housing ecosystem that provide the necessary liquidity to home financing originators in the Kingdom. SRC will continue its efforts in facilitating home ownership of Saudi families by acquiring more housing finance portfolios and will work tirelessly to reduce the cost of home financing for Saudi citizens.”
Fabrice Susini, CEO of SRC said: “Today’s agreement is a testament to SRC’s continuous efforts in supporting the housing market in the Kingdom by providing capital and risk management for banks. SRC will continue to cultivate partnerships to help realise the objectives of the housing programme, one of the Kingdom’s Vision 2030 programs, through facilitation of liquidity provision to originators and enabling affordability of home financing to Saudi families. Fostering such partnerships with real estate finance companies is a key pillar of SRC’s strategy which aims to increase sustainable financing opportunities to promote affordable housing and diversify financing options for Saudi families. Increasing the proportion of home ownership is in line with SRC’s goal of building a strong secondary market in the Kingdom.”
Engineer Salah Bin Rashid AlRashid, Chairman of the Board of Directors at ANB said: “We are proud of our partnership with SRC which will enable the bank to recycle the liquidity resulting from the sale process and inject it back into the real estate financing market. This will also stimulate the bank’s refinancing activity through capital and risk management tools and will expand the ever-growing base of beneficiaries who stand to gain from the bank’s financing solutions, enabling them to realise the dream of owning a first home. I am confident that our partnership with SRC will strengthen the bank’s position as an active member of the housing ecosystem striving to realize the homeownership goal of 70 percent in accordance with the Vision 2030.”
Earlier this year, SRC issued its largest government-backed sukuk worth SAR 4 billion and was oversubscribed by 2.15 times. In April, SRC received an ‘A2’ long term issuer credit rating from Moody’s and ‘A’ long term issuer credit rating from Fitch Ratings, highlighting its highly effective business model and a growing housing market in the Kingdom.
About Saudi Real Estate Refinance Company (SRC):
Fully owned by the Public Investment fund (PIF), the Saudi Real Estate Refinance Company (SRC) was established in 2017, after obtaining a license to operate in the secondary real estate market by the Saudi Central Bank, with the goal of transforming the local housing market.
SRC enables individuals and entities interested in direct or indirect real estate financing to increase and diversify origination of long-term fixed-rate (LTFR) products.
As one of its primary roles, SRC provides banks and real estate finance companies with liquidity or capital relief, enabling growth in the home financing sector to increase home ownership rates among Saudi citizens. SRC will subsequently aggregate and packages home financing portfolios into mortgage-backed securities to be sold to domestic and international investors.
With a world class management team drawing from international best practice, SRC is uniquely positioned to become the partner of choice for banks and non-bank lenders in the Kingdom.
For more information please visit: http://srco.com.sa/
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Saudi Real Estate Refinance Company (SRC)
About the Public Investment Fund (PIF):
The Public Investment Fund is one of the largest and most impactful sovereign wealth funds in the world, driving the economic transformation of Saudi Arabia for the benefit of its people while helping shape the future global economy. PIF is building a world-class portfolio through investments in attractive, long-term opportunities across diverse industries and asset classes internationally, while unlocking new sectors at home. PIF works alongside global strategic partners and renowned investment managers, and acts as the Kingdom of Saudi Arabia’s primary investment arm aiming toward generating long-term value for the Kingdom of Saudi Arabia in line with Vision 2030.
More information can be found at www.pif.gov.sa
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The Board of Directors of Arab National Bank has recommended on 24/06/2021 the distribution of an interim cash dividend to the shareholders against the first half of 2021 as follows:
We would like to draw the attention of the non-resident foreign investors that the cash dividend distributed, which is transferred by the resident financial broker, is subject (when transferred or credited to the non-resident foreign investor’s bank account) to a withholding tax of 5%, in accordance with the provisions of Article 68 of the Income Tax Law and Article 63 of its Implementing Regulations.
On this occasion, the bank calls upon its shareholders to ensure that their dividends against previous years are received. Shareholders holding share certificates must deposit these in their investment portfolios. They can communicate with the Shareholders Affairs Department or approach the nearest ANB branch to update their addresses, and ensure their profits from previous years are collected. For inquiries, kindly contact the Shareholders Affairs Department by telephone at 011 402 9000 Ext 7757/7358/2606/8778 during official working hours of the bank, or by fax to 011 407 9500 Ext. 2604.
Arab National Bank has renewed its cooperation agreement with Microsoft Arabia to support both the bank's digital transformation and technical development process, particularly in the field of interactive reporting, strengthening the remote work system, enabling bank employees to use smart applications, and using technical tools to both increase their operational efficiency and stimulate their job performance.
The agreement was signed by the Bank's Chief Operating Officer, Mr. Ayed Al Zahrani, Microsoft Arabia's Vice President of Customer Success, Mr. Osama Al Sulaiman, in the presence of Arab National Bank CEO, Mr. Obaid Abdullah Al Rasheed, and the President of Microsoft Arabia Eng Thamer Alharbi.
"The partnership with Microsoft Arabia, a company that is leading in the technology industry, will support and enable the Bank's strategic directions in the field of digital transformation on more than one level, including strengthening its infrastructure, enabling its employees to apply best technical practices in their functional processes, thereby enriching the customer experience, improving the quality and level of banking services and solutions provided to them, and meeting their growing needs at any time and place effectively and flexibly," said Ayed Al Zahrani after the signing ceremony.
In turn, Mr. Osama Al Sulaiman, Microsoft’s Vice President of Customer Success, appreciated this step, pointing out that the relationship with Arab National Bank, as one of the most prominent Saudi banks, is an extension of the enablement that Microsoft provides to integrate digital transformation and enhance its financial digital infrastructure and operational efficiency, while stressing the importance of this partnership, which is to invest, develop and modernize the technological structure and digital transformation, in accordance with the highest standards and specifications, to facilitate access to financial services, provide the right environment for the requirements of this transformation and enhance financial inclusion, and diversify digital financial services."
The fruitful partnership between Arab National Bank and Microsoft Arabia has enabled the Bank's journey in developing many business sectors under the umbrella of its digital transformation strategy towards Arab National bank (ANB)’s digital transformation journey which includes information and cyber security, artificial intelligence in customer services, and enhancing customer experience, as the Bank moves towards accelerating the completion of its transactions. It has also raised the efficiency of its digital operations to about 50% during the coming period, after it was able to record a 30% growth in its performance rate during the previous period.