Saudi banks’ combined H1 profit rises 7% to SAR 23 bln

Saudi banks’ combined profit for the first half of 2015 rose seven percent year-on-year (y-o-y) to SAR 23.1 billion, data compiled by Argaam showed.

The banks’ combined assets increased eight percent y-o-y to SAR 2.17 trillion in second quarter. Combined deposits grew eight percent to 1.7 trillion, while loans logged a nine percent increase y-o-y.

Bank Aljazira led the sector with a 195 percent profit surge in H1-2015. The increase was attributed to a one-off gain which resulted from the sale of a land plot. However, excluding non-recurring profit, the bank would have reported an increase of only 20 percent for the period.

Saudi Hollandi Bank (SHB) saw its profit jump 20 percent in the first six months of 2015, followed by Banque Saudi Fransi (BSF) at 19 percent and Alinma Bank at 18 percent.

Meanwhile, Al Rajhi Bank’s H1 profit declined five percent y-o-y due to lower operating income and higher operating expenses.

During Q2-2015, most Saudi banks recorded profit growth, with the exception of National Commercial Bank (NCB), Riyad Bank and Banque Saudi Fransi (BSF).