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28-03-23

Saudi National Bank Appoints New Chairman, Acting CEO as Net Profit Surges in 2022

(MENAFN) Saudi National Bank (SNB) has announced the appointment of Saeed Mohammed Al-Ghamdi as its new chairman, following the resignation of Abdul Wahed Al-Khudairy from his post due to personal reasons. The bank has also appointed Talal Ahmed Al Khereiji as the new acting CEO, effective from March 27. These changes come as SNB recorded a 46.7 percent increase in net profit in 2022, reaching SR18.6 billion (USD4.96 billion), driven by higher operating income and a decline in provisions for expected credit losses.

The appointment of Al-Ghamdi as the new chairman marks a significant development for SNB, as he brings a wealth of experience and expertise to the role. He has previously served as the CEO of the Saudi Electricity Company and as the deputy governor for planning and development at the Saudi Arabian Monetary Authority. Meanwhile, Al Khereiji's appointment as the new acting CEO is also a positive development for the bank, as he has held various leadership positions at SNB over the past 20 years.

SNB's strong financial performance in 2022 is a testament to the bank's resilience amid the challenging economic conditions brought about by the coronavirus pandemic. The 61 percent surge in net profit in the fourth quarter of 2022 to SR4.8 billion from SR2.96 billion during the same period in 2021 also exceeded the average analyst estimate of SR18.2 billion, according to Refinitiv data.

SNB's investment in Credit Suisse had caused concerns about the bank's balance sheet, especially after the fall in share value of the Swiss bank. However, SNB moved to play down any risk to its balance sheet, stating that changes in the valuation of its investment in Credit Suisse have no impact on its growth plans and forward-looking 2023 guidance. The Saudi bank had bought almost 9.9 percent of Credit Suisse for SR5.5 billion in November 2022. SNB later clarified that the investment represented just 0.5 percent of its total assets and approximately 1.7 percent of its overall investment portfolio.

In conclusion, SNB's appointment of a new chairman and acting CEO is a positive development for the bank, as it continues to deliver strong financial results and expand its presence in the global financial sector. The bank's investment in Credit Suisse had initially caused concerns about its balance sheet, but SNB has moved to reassure investors and stakeholders about its growth plans and forward-looking 2023 guidance. The appointment of experienced and capable leaders to key positions is expected to contribute to SNB's continued success in the years to come.

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