Wednesday 25 May 2022

Saudi NCB's net profit up 3.2pc in Q2

RIYADH, July 17, 2016

Saudi Arabia's National Commercial Bank (NCB), the kingdom's listed largest lender, reported a 3.2 per cent rise in second-quarter net profit on Sunday, at the low end of analysts' forecasts.

The bank made a net profit of SR2.44 billion ($665 million) in the three months to June 30, up from SR2.36 billion in the same period of 2015, it said in a bourse statement.

Four analysts had forecast on average that NCB would make a quarterly profit of SR2.54 billion.

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

Deposits at the bank, which has close links to the government, shrank 12.8 per cent year-on-year to SR314.71 billion at the end of June, continuing a decline seen in the first three months of 2016.

Lower oil prices are forcing Saudi lenders to adjust to tighter liquidity as the government uses revenues previously placed as deposits with banks to help plug its budget deficit.

The trend contrasts with previous years when Saudi banks were able to build up hefty deposits from revenues earned by the government from high oil prices.

Loans and advances at the end of June stood at SR264.77 billion, up 13 per cent on a year earlier.

Quarterly operating income rose 6.8 per cent to SR9.32 billion, while profits from special commissions increased 9.1 per cent to SR6.72 billion.

The bank plans to expand overseas, growing its Turkey franchise while exploring new markets including Malaysia, Indonesia and Egypt, its chairman Mansour al-Maiman told Reuters in May.-Reuters

Tags: Saudi Arabia | NCB | Net Profit |

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