Banque Saudi Fransi profit down 1.9 per cent

11 October 2009

Brokerage activities slow at one of Saudi Arabia’s largest lenders

Banque Saudi Fransi profit’s fell 1.9 per cent in third quarter to SR714m ($190.4m) from SR728.6m in the same period of 2008.

The bank said that total operating profit for the period was SR1.06bn, a 7 per cent fall from 2008. The bank also reported SR120m of provisions and total asset growth of 1 per cent to SR122bn from SR121bn. It did not disclose whether these provisions were specifically related to defaults of Saudi conglomerates Saad Group and Ahmad Hamad al-Gosaibi & Brothers.

“The decline [in profit] is due to the important decrease in management fees despite an increase in deposits, and also the decrease in trading operations on local shares,” the bank said in a statement.

Net lending income rose 10.8 per cent to SR758m and net non-lending income fell 33.4 per cent to SR299m. The bank also said its loan and advances rose 2.5 per cent to SR81bn and its total deposits rose 7.1 per cent to SR90bn. Fransi is an affiliate of France’s Calyon.

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