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Banque Saudi Fransi second quarter profit down 2 percent on operating costs

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The bank made second-quarter net profit of 757 million riyals ($201.9 million) in the three months to June 30, down from 773 million riyals in the same period a year earlier.

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July 10, 2012 10:56 by



Banque Saudi Fransi , the lender part-owned by Credit Agricole, reported a 2-percent decline in quarterly profits on Monday, missing forecasts, due to higher operational costs.

The bank made second-quarter net profit of 757 million riyals ($201.9 million) in the three months to June 30, down from 773 million riyals in the same period a year earlier.

Analysts surveyed by Reuters had forecast, on average, profit of 806.50 million riyals.

“The reason for the decline in net income during the second quarter compared to the year earlier is the higher operating costs,” the bank said in a statement to the Saudi bourse.

Total operating profit for the period rose 10.3 percent to 1.28 billion riyals from 1.16 billion a year-ago, it said.

Profits from special commissions were up 7 percent to 844 million riyals in the quarter, from 789 million riyals last year.

Loans and advances increased 18.8 percent to 101 billion riyals, from 85 billion riyals a year earlier, while customer deposits advanced 9 percent to 109 billion riyals.

Saudi Fransi, the kingdom’s fifth largest bank by market capitalization priced a $750 million five-year Islamic bond in May, attracting orders worth $4 billion.

Dollar-denominated bonds from Saudi Arabia, the world’s top oil exporter, come to market relatively infrequently, and attract substantial demand when they do. Saudi Electricity’s $1.75 billion sukuk earlier this year received orders in excess of $15 billion.

(Reporting by Asma Alsharif; Editing by Amran Abocar)



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