Bank AlJazira net income soars 47% in 1Q 2024 as transformation plan delivers results

BANK ALJAZIRA-

Bank AlJazira’s net income rose 47.3% y-o-y to SAR 300.4 mn in 1Q 2024 on the back of a 13% rise in operating income, it said in a disclosure to Tadawul. Net financing and investment income rose 11%, reflecting better income from its corporate segment, in line with the trend it posted in 2023.

SOUND SMART- Bank AlJazira is pushing a transformation story (pdf) designed to grow its financing while locking in better-priced feedstock through an improved deposit mix. The corporate segment was important to the bank last year and continues to be in 1Q as it looks to grow selectively in the mid- and large-sized segments and pursue “smart growth” in the SME segment, all with a focus on trade finance and improved risk management. It’s also looking to position itself as the “bank of choice for affluent customers.”

BAHRI-

National shipping company Bahri saw its net income fall 8% y-o-y in 1Q 2024 to SAR 453 mn, down from SAR 492.6 mn a year earlier, it said in a disclosure to Tadawul. Revenues dropped 2.6% y-o-y to reach SAR 2.3 bn.

Driving the plunge: Bahri reported lower revenues from its oil and chemical transport units as well as logistics.

Blame it on the Houthis who have held the Red Sea trade hostage for months, causing "the biggest diversion of international trade in decades," according to Bloomberg. The Houthis are looking to put pressure on Israel, but their actions have started to have an impact on some Gulf markets.

TAWUNIYA-

Tawuniya’s net income more than doubled y-o-y to SAR 197 mn in 1Q 2024 on the back of “significant improvement” in ins. services, it said in a disclosure to Tadawul. Its ins. revenues rose 28.7% y-o-y to SAR 4.4 bn on the back of better results from its health, automotive and general ins. lines of business.