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Saudi's SABB, Samba bank Q4 profit rises - ASHARQ AL-AWSAT English Archive
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JEDDAH, (Reuters) – Two more Saudi banks including Samba Financial Group 1090.SE posted higher fourth-quarter profit on Sunday as banks recover from provisions booked against bad loans.

Provisions for bad loans and lacklustre loan growth hit profits at lenders in the biggest Arab economy in previous quarters.

Profits at SABB, 40 percent owned by HSBC Holdings Plc, rebounded strongly to 397 million riyals ($106 million) in the fourth quarter, compared with 26 million in the year-earlier period when it booked high bad loan provisions.

This was above expectations of analysts surveyed by Reuters who forecast, on average, a net profit of 365 million riyals.

Samba Financial Group also posted on Sunday a 7.9 percent increase in fourth-quarter net profit to 901 million riyals from 835 million in the year-earlier period.

This fell slightly short of analysts expectations of 1.04 billion

Neither bank disclosed the provisions they booked against bad loans, but analysts have said that lower provisions would help Saudi banks to boost profit in 2011.

SABB said its loan portfolio declined by 2.9 percent to 74.2 billion riyals compared with 76.4 billion in the same period a year earlier as loan growth has not yet kicked in again.

Analysts say Saudi banks are yet to feel the full impact of a $400 billion stimulus programme set up by the top oil exporter, as the government transfers funds directly to corporates who will seek more additional financing from banks later on.

Three Saudi lenders including Banque Saudi France posted fourth-quarter earnings above forecast on Saturday.

Asharq Al-Awsat

Asharq Al-Awsat

Asharq Al-Awsat is the world’s premier pan-Arab daily newspaper, printed simultaneously each day on four continents in 14 cities. Launched in London in 1978, Asharq Al-Awsat has established itself as the decisive publication on pan-Arab and international affairs, offering its readers in-depth analysis and exclusive editorials, as well as the most comprehensive coverage of the entire Arab world.

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