Saudi Investment Bank (SAIB) made a net profit of SR238 million ($63.5 million) in the fourth quarter after posting a loss a year earlier, the latest upbeat bank earnings in the biggest Arab economy.

Profit from special commissions or lending income rose 20 per cent to SR324 million in the fourth quarter compared to a year earlier, the bank said statement on the bourse website on Saturday.

The bank had suffered a net loss of SR109 million in the fourth quarter of 2009, it said. The lender did not say whether it booked provisions for the fourth quarter.

Fourth-quarter operational income reached SR412 million, down 12 per cent from a year earlier. Saudi Investment Bank had booked SR434.6 million in provisions for loan losses in the fourth quarter of 2009.

The majority of Saudi banks had to book higher provisions all of last year to cover possible loan losses linked to debt defaults by some troubled family-owned Saudi firms.

But three lenders posted fourth-quarter results above forecasts on Wednesday. They made no reference to provisions but analysts said they had put aside enough in previous quarters.-Reuters