Preliminary reports form investment banks and analysts suggest commercial bank profits in the kingdom rose by 8.5 per cent to 21.7 billion Saudi riyals (Dh21.24 billion) in the first half of the current year compared to
"For the seven banks we cover, net income was 5 per cent above consensus on aggregate. Net income growth accelerated to 7 per cent year on year versus 4 per cent in the first quarter of 2014," Suha Urgan, an analyst with
Among the Saudi banks,
Al Rajhi's second quarter earnings fell 8.2 per cent year-on-year, hit again by higher provisioning. The bank said it made
The NCB said the growth was driven by an 8.3 per cent year-on-year increase in net special commissions income, as well as gains of 3.9 per cent and 11.2 per cent in banking and foreign exchange income respectively.
"We expected net interest margin [NIM] pressures to persist this quarter on the back of low asset yields and limited room for improvement in cost of funding. The second quarter 2014 results surprised us positively as the banks' NIMs [on average assets] were flat to +12 basis points quarter on quarter," said a report from
SABB, which had more stable NIMs compared to peers over the last two years, led the pack with 12bps quarter on quarter improvement in the second quarter of 2014 Samba, which preferred NIM resilience over net interest income growth over the last two years, also delivered 10bps quarter on quarter NIM improvement.
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