Saudi Bank Al Jazira 2Q Net Pft Soars To SAR65M On Commissions

Monday, Jul 18, 2011

(This item was originally published Sunday.)

RIYADH (Zawya Dow Jones)--Saudi-based Bank Al Jazira (1020.SA) said Sunday its second-quarter net profit soared to 65 million Saudi riyals ($17.3 million) from SAR22 million a year earlier due to higher special commissions.

Analysts at Cairo-based EFG-Hermes had expected the bank to post a second-quarter net profit of SAR46 million.

"The increase in the net income in the current period is due to the higher special commission, fees and commission from banking services, and trading income, and in addition due to a decrease in the operating expenses," the lender said in a statement posted on the Saudi bourse website.

First-half earnings per share dropped to SAR0.42 from SAR0.11, while second-quarter operating income rose 4% to SAR308 million, the bank said.

Al Jazira said net lending income, or special fee net income, inched up 2% to SAR192 million in the three months to June.

The bank's loans and advances portfolio rose 27% by the end of the quarter compared with the year earlier period, to stand at SAR22.03 billion, while customer deposits increased 28% to SAR29.1 billion.

Total assets at the end of June were up 28% at SAR37 billion.

-By Summer Said, Dow Jones Newswires; +966-546-842373; summer.said@dowjones.com

(END) Dow Jones Newswires

18-07-11 0350GMT