Saudi banks’ combined profit up 6% in nine-months 2015

The combined profit of Saudi-listed banks rose six percent year-on-year (YOY) in the first nine months of 2015 to SAR 33.6 billion, market data compiled by Argaam showed.

National Commercial Bank (NCB) had the highest earnings for the period of SAR 6.9 billion, followed by Al-Rajhi Bank, which reported SAR 5.2 billion in net income. The two banks accounted for 15 percent of the sector’s total combined profit.

Meanwhile, the combined profit of the Saudi British Bank (SABB) and Riyad Bank accounted for ten percent of bank earnings.

Bank Aljazira topped the list in the category of profit growth with a 200 percent gain supported by a land sale worth SAR 573 million in Q2-2015. Saudi Hollandi Bank and Alinma Bank each saw profit growth of 16 percent.

SABB and NCB posted the lowest profit growth of three percent and two percent, respectively. Bank Albilad posted a profit decline of five percent for the nine-month period, while Riyad Bank and Al-Rajhi Bank both witnessed a three percent drop in net income.

Combined bank profit for Q3-2015 declined six percent when compared to the second quarter and 12 percent from the first quarter.

Total loan growth rose by seven percent to SAR 1.34 trillion, while bank deposits rose seven percent YOY to SAR 1.7 trillion.

NCB claimed the biggest market share of deposits, controlling 21 percent of deposits, followed by Al-Rajhi bank with 16 percent.

Assets held by Saudi banks grew by seven percent to SAR 2.19 trillion in the first nine months of 2015 when compared to the same period last year.