Saudi British Bank’s profits fall

14 April 2010

Profits down by 18.3 per cent in 2010

Saudi Arabia’s Saudi British Bank (SABB) recorded a first quarter profit of SR621m ($165.6m), an 18.3 per cent fall from SR760m a year earlier, on the back of a decline in loans and deposits.  

SABB, 40 per cent owned by HSBC Holdings, said its lending income fell 12.6 per cent to SR770m after loans slid 4.5 per cent to SR75.7bn, and deposits dropped 6.8 per cent to SR90bn, according to a statement posted on the website of Saudi Arabia’s bourse, the Tadawul, on 13 April.

The bank’s operating income stood at SR1,205m, a 6.3 per cent decline compared with SR1,286m for the same period in 2009.

Earnings per share were valued at SR0.83, a reduction of 17.8 per cent from SR1.01 in the first quarter of 2009. Shares in SABB have gained 10.6 per cent this year, underperforming by about 15 per cent both the Tadawul’s all share index and the banking stocks index.

Total assets declined by 9.1 per cent to stand at SR120.5bn, from SR132.6bn at 31 March 2009.

SABB has been one of the worst hit Saudi banks during the downturn – its non-performing loans soared more than 16 times to SR3.53bn in 2009 from SR193.7m in 2008.

On 11 April, Riyad Bank posted a 55 per cent rise in first quarter profit to SR648m.

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