Saudi British Bank (SABB), the kingdom's fifth-largest bank by assets, posted a 7.7 per cent rise in third-quarter net profit on Thursday, in line with analyst forecasts.

The bank, an affiliate of HSBC Holdings, made a net profit of SR1.14 billion ($304.02 million) in the three months ending September 30, up from SR1.06 billion in the same period a year earlier.

Five analysts surveyed by Reuters expected the bank to post an average net profit of SR1.08 billion for the quarter.

The bank attributed its net profit rise to increased operatng income and lower expenses, but did not elaborate.

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

Quarterly operating income rose 2.1 per cent year-on-year to SR1.69 billion, while profits from special commissions increased 4.9 percent over the same timeframe to SR1.08 billion.

Saudi lenders' net interest income has weakened due to subdued loan growth and fierce competition, especially in the retail market.

Loans and advances at the end of September stood at SR128.9 billion, up 10.5 per cent on the same point of 2014. Deposits rose 8.3 percent to SR155.6 billion over the same period.

Saudi Arabia banks' financial cushion and the government's commitment to keep spending should enable them to weather a prolonged slump in oil prices, SABB's managing director, David Dew told Reuters in an interview in September. - Reuters