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DUBAI, July 24 (Reuters) - Al Rajhi Bank
The bank made 2.18 billion riyals ($581.3 million) in the three months to June 30, up from 2.05 billion riyals in the same period a year earlier, it said in a bourse statement.
Five analysts surveyed by Reuters had on average forecast the bank's quarterly profit would be 2.15 billion riyals.
Al Rajhi, which had reported rising profit growth in the previous six quarters, attributed the performance in the second quarter to a 6.3 percent rise in net special commission income and a 41.3 percent climb in other operating income from the year earlier quarter. The result was also boosted by a 9.4 percent drop in impairment charges for financing and a drop in salary expenses.
Saudi bank earnings for the second quarter have so far been generally mixed because banks are having to adjust to more sluggish economic conditions prompted by lower state spending in response to lower oil prices. Of the four other major banks to report earnings so far, two have reported flat profit growth, while the other two reported a rise and a fall in profit, respectively.
Al Rajhi on July 12 said its board was recommending a dividend per share of 1.5 riyals for the first half of 2017, up from 0.75 riyals per share in the same period of 2016.
($1 = 3.7501 riyals)
(Reporting By Tom Arnold. Editing Jane Merriman) ((Tom.Arnold@thomsonreuters.com; +97144536265; Reuters Messaging: tom.arnold.thomsonreuters.com@reuters.net))
The bank made 2.18 billion riyals ($581.3 million) in the three months to June 30, up from 2.05 billion riyals in the same period a year earlier, it said in a bourse statement.
Five analysts surveyed by Reuters had on average forecast the bank's quarterly profit would be 2.15 billion riyals.
Al Rajhi, which had reported rising profit growth in the previous six quarters, attributed the performance in the second quarter to a 6.3 percent rise in net special commission income and a 41.3 percent climb in other operating income from the year earlier quarter. The result was also boosted by a 9.4 percent drop in impairment charges for financing and a drop in salary expenses.
Saudi bank earnings for the second quarter have so far been generally mixed because banks are having to adjust to more sluggish economic conditions prompted by lower state spending in response to lower oil prices. Of the four other major banks to report earnings so far, two have reported flat profit growth, while the other two reported a rise and a fall in profit, respectively.
Al Rajhi on July 12 said its board was recommending a dividend per share of 1.5 riyals for the first half of 2017, up from 0.75 riyals per share in the same period of 2016.
($1 = 3.7501 riyals)
(Reporting By Tom Arnold. Editing Jane Merriman) ((Tom.Arnold@thomsonreuters.com; +97144536265; Reuters Messaging: tom.arnold.thomsonreuters.com@reuters.net))
