Saudi Arabia's Al Rajhi Bank reports 40% increase in Q1

Saudi Arabia's biggest Islamic lender said net profit in the three months ended March 31 to $890.60mln

  
Image used for illustrative purpose. A trader monitors stocks at a Saudi Bank in Dammam October 26, 2008.

Image used for illustrative purpose. A trader monitors stocks at a Saudi Bank in Dammam October 26, 2008.

REUTERS/Stringer

DUBAI - Al Rajhi Bank, Saudi Arabia's second-largest lender by assets, reported a 40.1 % rise in net profit, boosted by an increase in financing and investment income.

Saudi Arabia's biggest Islamic lender said net profit in the three months ended March 31 to 3.34 billion riyals ($890.60 million). It made net profit of 2.38 billion riyals in the same period year earlier.

Al Rajhi, which has traditionally focused on consumer banking, said that profit was also helped by an increase from fees for banking services and income from other operations.

Net income from special commissions, financing and investments grew 2.9% to 4.77 billion riyals.

Total operating expenses decreased by 3.7% in the quarter, while impairment charges declined 16.7% to 577 million riyals.

($1 = 3.7503 riyals)

(Reporting by Hadeel Al Sayegh, editing by Louise Heavens) ((Hadeel.AlSayegh@thomsonreuters.com; +971566883310;))

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