Al Rajhi, Riyad Bank Q4 profits up
Riyadh, January 17, 2012
Two major Saudi lenders, Al Rajhi Bank and Riyad Bank, posted higher fourth-quarter results on Tuesday, but missed analyst expectations.
The kingdom's biggest Islamic lender, Al Rajhi, posted a 13.9 per cent rise in its fourth-quarter net profit, as it made 1.899 billion riyals ($506.3 million) in the three months ending December 31.
Seven analysts surveyed by Reuters expected Al Rajhi to post an average of 1.914 billion riyals for the fourth-quarter.
"The reason for the rise in profits for the 12 months ending December 31 is the increase in returns from operating income," Al Rajhi said in a bourse statement.
Operating income for the fourth-quarter rose by 16 percent to 3.3 billion riyals, while earnings from financing investments during the quarter increased 3.4 percent to 2.29 billion riyals.
Riyad Bank posted a 1.8 percent higher quarterly net profit of 778 million riyals, it said in a bourse statement. Analysts surveyed by Reuters expected the bank to post an average of 801.6 million riyals.
"The increase in income for the fourth-quarter ... is mainly attributed to the rise in the bank's gross operating income," the lender said in a bourse statement.
Operating income increased 11.2 percent to 1.65 million riyals compared to a year earlier. Net income from special commissions for the period increased 3.9 percent to 1.1 billion riyals.-Reuters