Saudi Hol­landi Bank re­ports flat 2Q net profit

The Pak Banker - - FRONT PAGE -

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.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.