Saudi Arabia’s Banks Q1 Profit Reports SR9.6 Bln

Saudi Arabia’s 12 major banks reported a total profit of SR9.6 billion in Q1, 2012, reflecting a year-on-year growth of 24 percent. Al-Rajhi Bank and National Commercial Bank represented nearly 41 percent of the consolidated net profit.

Among other players in the sector, Bank Albilad’s bottom line grew exceptionally by 821.6 percent from the SR55.5 million recorded in the year-earlier period.

It reported a net income of SR511.5 million for Q1, 2012. The main reason for the growth in net profit for Q1, 2012 compared to same quarter last year is the increase in the income from investing and financing assets, fees and commission income and the bank gained SR373 million as non-operating income (extraordinary) from selling its land.

Net special commission income of three banks – Saudi Investment Bank, Arab National Bank and Samba Financial Group – reduced slightly, while all other banks showed a positive growth of 3 to 51 percent.

Alinma Bank showed a solid growth of 50.7 percent in its income from investing and financing activities.

Al-Rajhi Bank managed to retain a healthy level of income from investing and financing activities. At the end of Q1, 2012, its top line climbed to SR2.3 billion, Arab News reported.