Saudi Hollandi Bank reports flat 2Q net profit

DUBAI: Saudi Hollandi Bank, the kingdom's oldest lender, reported flat net profit in the second quarter as higher operating income was offset by rising costs.

The lender made a profit of 539.7 million riyals ($143.9 million; Dh528.11 million) in the three months to June 30, compared with 539.2 million riyals in the corresponding quarter of 2015, according to a bourse filing. Three analysts polled by Reuters had forecast on average Saudi Hollandi would make a quarterly profit of 508.3 million riyals. Overall operating income rose by 2.7 per cent in the quarter, offsetting a 6.9 per cent increase in operating expenses due to higher impairments on investments the bank was looking to sell and greater staffing costs. Saudi companies issue brief earnings statements early in the reporting period before publishing detailed results later.

Meanwhile, Samba Financial Group, Saudi Arabia's third-largest bank by assets, reported a 1.4 per cent drop in second-quarter net profit on Monday, in line with analysts' forecasts. The bank made a profit of 1.31 billion riyals (Dh1.28 billion or $349.3 million) in the three months to June 30, down from 1.33 billion riyals in the same period a year earlier, it said in a bourse statement. Six analysts polled by journalists had on average forecast the bank would make a quarterly net profit of 1.30 billion riyals. The bank attributed its drop in net profit to a 6.4 per cent rise in total operating expenses as a result of an increase in salaries and related expenses and higher credit provisions.