Saudi Hollandi Q2 net drops 72pc
Riyadh, July 18, 2009
Saudi Hollandi Bank, the first operating bank in Saudi Arabia, has registered a 72.2 per cent drop in second-quarter net profit, far below two analysts' forecasts.
Saudi Hollandi made 90.6 million riyals ($24.16 million) in the three months to June 30, compared to a SR326.3 million profit a year earlier, the lender said in a statement on the bourse website.
Two analysts surveyed by Reuters had estimated that Hollandi would post net profit between SR261 million and SR331 million in the period.
The statement did not give a reason for the decline in the second quarter but said that a 38 percent fall in the first half was mainly due to the bank's "conservative policy". It did not explain, but Saudi lenders have used these terms to indicate provisions.
Saudi Hollandi, in which a consortium led by Royal Bank of Scotland is a key shareholder, did not say whether it had booked provisions or was exposed to troubled family conglomerates such as the Saad Group.
Saudi Hollandi's operational profit rose 0.79 percent to 552.5 million riyals in the second quarter. Assets rose 17.9 per cent to SR69 billion in the first six months, investments gained 19.3 per cent to SR16.1 billion. The loan portfolio rose 16.9 per cent to SR39.6 billion. It gave no quarterly data.
Saudi Hollandi's stock closed up 1.6 percent on Saturday before the results were announced.-Reuters