Saudi Al-Rajhi Bank’s Q3 profit down 9 pct
Quarterly net profit was 1.64 billion riyals compared to 1.795 billion riyals in the same period last year.
October 13, 2010 8:32 by Reuters
Saudi-based Al-Rajhi Bank, the Gulf’s biggest Islamic lender by market value, posted an 8.6-percent fall in third-quarter earnings after it booked more provisions for loans.
Quarterly net profit was 1.64 billion riyals ($437.3 million) compared to 1.795 billion riyals in the same period a year ago, the bank said in a statement.
The results were below analysts’ average forecasts for 1.8 billion riyals, in a Reuters survey this month.
Rajhi attributed the decline to its “conservative policy in boosting loan provisions.”
Earlier on Tuesday, Saudi central bank Governor Muhammad al-Jasser urged banks to be conservative and make provisions covering more than 100 percent of their non-perfoming loans.
(Reporting by Souhail Karam; Editing by Amran Abocar)