Samba Financial Group reported a 19.6 per cent jump in first-quarter net profit to SR1.27 billion. - Reuters
Dubai - Moody's said this month that Saudi government spending cuts stemming from lower oil prices would weigh on the non-oil sector of the economy.
Published: Tue 19 May 2020, 12:33 AM
National Commercial Bank, Saudi Arabia's biggest lender, on Sunday posted a 2.1 per cent rise in quarterly profit despite higher provisions while Samba Financial Group surprised with lower provisions.
Net profit rose to SR2.83 billion ($745.5 million) for the quarter to March 31.
That topped the SR2.4 billion expected by EFG Hermes analysts but fell short of the SR3.28 billion forecast by FAB Securities.
NCB said operating income rose by 7.2 per cent mainly on higher net special commission income which for Islamic lenders is comparable to net interest income.
Its net impairment charges for expected credit losses rose to SR396 million from SR145 million a year earlier.
NCB's investment-related income, fees from banking and services and foreign exchange income also rose.
Samba profit jump
Samba Financial Group reported a 19.6 per cent jump in first-quarter net profit to SR1.27 billion. That topped the SR889 million forecast by EFG Hermes analysts who noted Samba lowered its provisions to SR225 million from SR321 million a year earlier. EFG had estimated Samba's provisions at SR328 million.
"Provisioning surprised positively," EFG said in a note.
Samba said the rise was mainly due to an increase in gains on fair value through other comprehensive income debt, exchange income and other operating income.
"On the other hand total operating expenses increased mainly due to an increase in salaries and employee-related expenses, depreciation and other general and administrative expenses," it said in a bourse filing.
Rating agency Moody's said this month that Saudi government spending cuts stemming from lower oil prices would weigh on the non-oil sector of the economy where banks do most of their business. - Reuters