Saudi's Samba Posts 2 Percent Increase in Q1 Net Profit

Saudi's Samba Posts 2 Percent Increase in Q1 Net Profit

The kingdom's second largest listed lender by market value said that its first quarter net profit increased by 2 percent year-on-year, due to a jump in operating income.

April 22, 2012 10:28 by kippreport

Saudi’s Samba Financial Group posted first-quarter net profit of 1.145 billion Saudi riyals ($305.32 million), it said on Saturday, nearly matching analysts’ forecasts.

The kingdom’s second largest listed lender by market value said that its first quarter net profit increased by 2 percent year-on-year, due to a jump in operating income.

Eight analysts surveyed by Reuters had forecast the bank’s net profits would be, on average, 1.17 billion riyals.

Total operating profit for the quarter rose by 5.6 percent on the year to 1.79 billion riyals.

Profit from special commissions dropped by 0.5 percent in the first quarter compared with the same period last year, while loans and advances at the end of the quarter stood at 93 billion riyals, up from 81 billion a year earlier.

Bank lending to businesses has surged in the Saudi market in recent months, government figures showed in February.

A long process of provisioning by all banks was ordered by the Saudi Arabian Monetary Authority after the collapse of a major conglomerate in 2009 prompted concerns over bad loans in the kingdom.
($1 = 3.7501 Saudi riyals)
(Reporting by Amena Bakr)