Saudi banks post mixed profits in second quarter

Photo: Saudi banks post mixed profits in second quarter
 / Arab World

Saudi banks recorded mixed net incomes in the second quarter of this year as reflected in their recent financial statements, Saudi Gazette reported.

Saudi Arabia's largest listed lender Al Rajhi Bank posted a fourth successive quarterly profit decline as its second-quarter earnings fell 8.2 percent year-on-year, hit again by higher provisioning.

The bank said it made SR1.95 billion ($520 million) in the three months ending June 30, compared with SR2.12 billion in the same period a year earlier, citing an increase in total operating expenses for the drop without elaborating.

Operating income for the quarter rose by 6.6 percent on the corresponding period of 2013 to SR3.66 billion, while profits from special commissions increased 4.9 percent over the same timeframe to SR2.51 billion.

Loans and advances at the end of June stood at SR200.9 billion, gaining 8.7 percent on the same point of 2013, while deposits climbed 7.9 percent to SR245.4 billion over the same period.

Meanwhile, National Commercial Bank posted a 22 percent jump in second-quarter net profit on Sunday.

The Kingdom's biggest bank by assets made SR2.425 billion ($647 million) in the three months to June 30, compared with SR1.99 billion in the corresponding period of 2013, it said in a statement.

NCB said the growth was driven by an 8.3 percent year-on-year increase in net special commissions income, as well as gains of 3.9 percent and 11.2 percent in banking and foreign exchange income respectively.

Loans and advances at the end of June stood at SR206 billion, climbing 15.7 percent from a year earlier, while deposits gained 20 percent to SR346 billion.

NCB plans to sell a 15 percent stake to the public by the end of the year in an IPO expected to be worth between SR15 billion and SR20 billion. The bank made SR1.26 billion ($336 million) in the three months ending June 30, compared with SR1.18 billion in the same period a year earlier.

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