<a href="https://www.thenationalnews.com/business/banking/2022/04/27/saudi-national-bank-reports-32-surge-in-first-quarter-net-profit/" target="_blank">Saudi National Bank</a>, the largest lender in Saudi Arabia by assets, almost doubled second-quarter net profit, driven by a sharp rise in operating income as the economic momentum in the kingdom continues to gather pace. Net profit for the three months to the end of June rose to 4.59 billion Saudi riyals ($1.22bn) from 2.32bn riyals in the same period a year earlier, the lender said in a <a href="https://www.saudiexchange.sa/wps/portal/tadawul/home/announcement-details/!ut/p/z1/pdDLDoIwFATQb_ELOlyeLmtB2vBIMILQjWFlmii6MH6_lbghUdR4dzc5s5hhmrVMD_3NHPqrOQ_90f6dDvalzIVERFmabF3wIC7EplQEgO1GQCQiZ-khRx46FqRQVeG5qFymf8qnqgzBKy6bdWNpRP_l4X2Xx5vj-JzXUwJJsSVJlsXCJ6z8J5ibaApebDALHiVHMNPicqrruoVRhi_ux9XmIw!!/dz/d5/L0lDU0lKQ2dwUkNTQ2lDbEVLSUtVUUEhIS9vTG9RQUFJUXhCQUlFb3lqQ1VSemdoU0ZMZ2xLMHJYRkFBISEvNEpDaWpzWXBNaFRqVUU1bEVtdDJVdHROUXpXN0tXMW1vNUEhL1o3X05ITENIMDgySzBUTkYwQVFWT0NCTUVLVTIyL1o2X05ITENIMDgySzBUTkYwQVFWT0NCTUVLVUs2L0FOTk9VTkNFTUVOVF9OVU1CRVIvNjkzODQvZ2xvYmFsL2h0dHA6JTAlMHRhZGF3dWwlMC9hbm5DYXQvMS9jb21wYW55U3ltYm9sLzExODA!/">statement</a> on Wednesday to the Tadawul Stock Exchange, where its shares are traded. SNB’s total operating income for the April-June period jumped more than 10 per cent to 8.37bn riyals owing “to higher net special commission income and fees from banking services”, the lender said. Net income from special commissions and investments rose almost 16 per cent to 6.8bn riyals. Banks in the kingdom, like their GCC peers, are recording improved operating conditions and increased profitability as Gulf economies continue to bounce back from the Covid-19 pandemic-driven slowdown. Saudi Arabia's economy, the Arab world's largest, grew 9.9 per cent in the first quarter of 2022 to record the highest rate of growth in the past decade, the latest government data shows. After strong expansion in 2020 and 2021, driven by mortgages, consumer loans and lending to small and medium enterprises, Saudi banks' credit growth is expected to stay strong at about 12 per cent in 2022, <a href="https://www.thenationalnews.com/business/2022/04/11/saudi-arabias-banks-to-benefit-from-expected-rise-in-interest-rates-says-sp/">according to S&P Global Ratings</a>. Lenders in the kingdom are also expected to benefit from <a href="https://www.thenationalnews.com/business/economy/2022/03/17/gulf-central-banks-raise-interest-rates-following-us-federal-reserve-hike/">interest rate increases </a>this year. For every increase in the benchmark <a href="https://www.thenationalnews.com/business/markets/2022/04/09/interest-rate-worries-drag-wall-street-to-first-losing-week-in-a-month/">interest rate</a> of 100 basis points, banks in the country are anticipated to record a rise in net profit of 13 per cent and return on equity of 1.5 percentage points, S&P said in April. <a href="https://www.thenationalnews.com/business/banking/2022/06/29/saudi-central-banks-13bn-support-to-ease-lenders-near-term-liquidity-needs-sp-says/">Last month</a>, the rating agency said that the Saudi Central Bank’s 50bn-riyal support package for the kingdom’s lenders is expected to ease their near-term liquidity needs and help boost lending. Saudi lenders require private and public sector deposits to further grow their lending book, it said. SNB, which was created by the merger of National Commercial Bank with smaller rival Samba Financial Group last year, said its profit for the first six months of the year rose almost 59 per cent to 9.1bn riyals, driven by higher operating income and lower provisions for bad loans. Net impairment charge for expected credit losses declined by almost 64 per cent on an annual basis to 978m riyals. Total assets of the bank grew nearly 9 per cent to 958bn riyals. Loans and advances rose almost 7 per cent to 536.18bn riyals, while customer deposits stayed flat at 593bn riyals during the period, SNB said.