The kingdom's biggest bank by assets benefitted from lower expenses
Saudi Arabia's NCB third quarter operating profit beats forecasts,
National Commercial Bank, Saudi Arabia’s biggest bank by assets, said on Tuesday its third quarter operating profit rose 5.3 per cent to 4.7 billion Saudi riyals (Dh4.6bn) from a year earlier period, beating analysts’ forecast.
The increase was “mainly due to the increase in net special commission income, fees from banking services, foreign exchange income, as well as lower other operating (expenses), which was offset by a decrease in investments related income,” it said in a statement to the Saudi stock exchange, where its shares are traded.
Two analysts polled by Bloomberg had forecast a quarterly operating profit of 4.66bn riyals.
Net profit rose 15.4 per cent to 2.45bn riyals from a year earlier.
“Total operating expenses decreased by 3.3 per cent mainly due to lower net impairment charges for financing and advances and rent and premises related expenses which was offset by higher other general and administrative expenses and salaries and employee-related expenses,” the bank said.
Net impairment charge for financing and advances fell 13.7 per cent to 610 million riyals for the current quarter against 707m riyals in the similar quarter of the previous year.
Net impairment charge for financing and advances plunged 41.3 per cent to 943m riyals for the current period against 1.6bn in the similar period of the previous year.