*Majed Al-Khalidi from Riyadh
Consolidated revenues of financial institutions (Persons authorized by the Capital Market Authority) by the end of 2018 reached about 5.66 billion riyals, registering growth of 10.5 per cent, which is equivalent to SR 537 million compared to SR 5.12 billion for the year 2017.
According to the analysis of the reports' unit in the newspaper "AlEqtisadiah" that based on the data of the Capital Market Authority, the higher revenues of licensed financial institutions were supported by growth in asset management income, which increased by 9.6% with revenues of about 2.5 billion riyals in 2018, compared to 2.28 billion riyals in 2017.
The asset management revenues accounted for 44.2 per cent of the total revenue of licensed financial institutions in 2018.
Licensed financial institutions posted a net profit of 1,888 billion riyals in 2018, compared to a net profit of 2018 billion riyals and a growth of 19 per cent.
Net profit accounted for about 33 per cent of revenues in 2018.
Financial institutions or authorized persons are those who engage in securities business from dealing (as an agent, undertaking coverage) or management (investment funds, portfolios) or arrange or provide advice or custody from financial institutions authorized by the SMA.
While revenues accounted for about 21 per cent of the total revenue of about 1.19 billion riyals, as the second highest source of revenue for financial institutions, growing by about 10 per cent year-on-year.
Revenues from investments grew by 17.6% to reach SR 739 million, while investment banking accounted for 12.3 percent of revenues at 693.7 million riyals and an annual growth of 3.4 percent.
At the end of the fourth quarter of 2018, the number of authorized persons rose to 87, compared with 82 authorized in the same quarter of 2017.
In terms of the consolidated financial position of authorized persons, the value of the consolidated assets increased by 11.3 per cent to reach 31.55 billion riyals at the end of 2018 compared to 28.34 billion riyals at the end of 2017.
The shareholders' equity item increased by the end of 2018 by 5.3 per cent, which amounted to about 22.6 billion riyals compared to 21.45 billion riyals for the year 2017.
On the other hand, the number of the licensed workforce at the end of the fourth quarter of 2018 reached 4325 employees, slightly down 0.4 per cent from 4342 at the end of the same period of 2017.
* Economic Reports Unit