Lender SABB’s Q4 up 65 percent on lower operating costs

Lender SABB’s Q4 up 65 percent on lower operating costs

Saudi British Bank posted a 65-percent rise in quarterly profits on Monday, citing lower operating costs for the gains.

January 16, 2012 12:37 by Reuters

The lender, an affiliate of HSBC, said it had net income of 655 million riyals ($174.7 million) in the three months ended Dec. 31, compared with 397 million riyals in the prior-year period.

Analysts had forecast average profit of 691 million riyals, according to a Reuters survey.

“The reason for the higher net profits for the fourth quarter and for the year compared with the same periods a year earlier is the decline in operating costs,” the bank said in a statement.

Total operating profit for the period rose 0.5 percent to 1.12 billion riyals from 1.12 in the same quarter last year.

Profits from special commissions was flat at 730 million riyals. Loans and advances rose 14 percent to 84.8 billion riyals from 74.2 billion riyals a year earlier, it said.

SABB got regulatory approval last week for a 33-percent capital increase. (Reporting by Asma Alsharif; Editing by Amran Abocar)