Saudi bank NCB Q1 net profit edges 1 per cent higher, beats forecasts
Saudi Arabia’s National Commercial Bank (NCB), the kingdom’s largest lender, reported a 1 per cent rise in first-quarter net profit on Tuesday, ahead of the forecasts by two analysts.
The bank made a net profit of SAR2.63 billion in the three months to Mar. 31, up from SAR2.61bn in the same period of 2015, it said in a bourse statement.
SICO Bahrain forecast NCB would make a quarterly profit of SAR2.30bn, while Deutsche Bank expected earnings of SAR2.23bn for the period.
NCB attributed its earnings performance in the first quarter to a 5.5 per cent increase in operating income to SAR4.69bn, which in turn was aided by a 9.9 per cent jump to SAR3.34bn in income from special commissions.
Saudi companies issue brief earnings statements early in the reporting period before publishing more detailed results later.
The kingdom’s banks are feeling some fallout from a sluggishness in the kingdom’s economy as a result of lower oil prices.
Deposits at the bank, which has perhaps the closest links to the government, sank 4.9 per cent year on year to SAR326.1bn at the end of March, continuing the decline in levels seen in the final three months of 2015.
It is in contrast to recent years when Saudi banks were able to build up significant deposits as revenues garnered by the government from high oil prices were placed with local lenders.
Loans and advances at the end of March stood at SAR265.34bn, up 16.8 per cent on a year earlier. ($1 = 3.7489 riyals)