Al Rajhi cut to ‘Hold’ after drop in Q1 earnings

April 14, 2014 2:12 am

Saudi Arabia’s biggest listed lender, Al Rajhi Bank has said first-quarter profit fell to SR1.71bn ($456m) from SR2.05bn a year earlier, as expenses increased, Bloomberg has reported. Al Rajhi has reported three consecutive quarters of lower profit growth, as demand for credit among businesses in the Arab world’s biggest economy eased. The bank was cut to ‘hold’ from buy last month by Riyad Capital, which said the “advantage Rajhi enjoyed over peers in asset yields and net interest margins is shrinking.”