Saudi British Bank's net profit edges up 1.2pc

Saudi British Bank ( SABB), the kingdom's fifthlargest bank by assets, posted a 1.2 per cent increase in its second- quarter net profit today, in line with analyst forecasts as earnings from special commissions rose.

The bank, an affiliate of HSBC Holdings, said it made 1.15 billion riyals ($ 306.6 million; Dh1.13 billion) in the three months ending June 30, compared with 1.14 billion riyals in the same period a year earlier, according to a bourse filing.

Four analysts surveyed by Reuters on average expected the bank to post a net profit of 1.11 billion riyals for the quarter.

The main driver for the earnings gain was a 10.8 per cent increase in profits from special commissions to 1.18 billion riyals, which helped boost total operating income by 5.1 per cent.

This helped to offset a 7.1 per cent jump in total operating expenses, where a reduction in impairments for bad loans was overshadowed by higher salaries.

Saudi companies issue brief earnings statements early in the reporting period before publishing more detailed results later.