Saudi British Bank (SABB), the kingdom’s fifth-largest bank by assets, posted a 7.7% rise in third-quarter net profit yesterday, in line with analyst forecasts.
The bank, an affiliate of HSBC Holdings, made a net profit of 1.14bn riyals ($304.02mn) in the three months ending September 30, up from 1.06bn riyals in the same period a year earlier.
Five analysts surveyed by Reuters expected the bank to post an average net profit of 1.08bn riyals for the quarter.
The bank attributed its net profit rise to increased operating 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% year-on-year to 1.69bn riyals, while profits from special commissions increased 4.9% over the same timeframe to 1.08bn riyals.
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 128.9bn riyals, up 10.5% on the same point of 2014. Deposits rose 8.3% to 155.6bn riyals over the same period.