Saudi banks posted an increase of 10 percent in net profits during the first half of 2011, reaching SR16 billion against SR14.4 billion during the same period last year. All Saudi local banks, except Samba, have registered an increase in net profits during the period. Samba's net profit fell by 8 percent. The Saudi Investment Bank recorded the highest growth reaching 867 percent while the lowest growth registered by Saudi Fransi Bank, with one percent. The increase in net profit was attributed to a number of factors, such as increase in revenues from banking services and investments as well as from diversification of income sources, in addition to decrease in operational expense and a rise in revenues from banking service charges. Samba's net profit dropped mainly because of the decrease in the special commissions in the second quarter of the year. National Commercial Bank (NCB) posted a 16 percent rise in its second-quarter net profit. NCB made a net profit of SR1.4 billion in the three months ending June, compared with SR1.2 billion in the same period a year earlier, it said in a statement. Saudi economist Abdul Hamid Al Amri said there have been tremendous positive changes in the banks' financial situations during the first half of the year. This is reflected in their performance and resulted in an increase in net profit. "The local banks were much cautious in their lending transactions during the first half of last year. They were also engaged in restructuring their loan portfolio and this was obvious.”
