Justice minister, DGA chief discuss partnership to boost digital judicial services    Netanyahu does not rule out further strikes on Hamas leaders    US farmers are being squeezed – and it's testing their deep loyalty to Trump    Romania condemns 'irresponsible' Moscow after Russian drone breaches its airspace    Kirk's assassination is forcing US politicians to make difficult choices about their safety    India players refused handshakes, says Pakistan coach    Final stage of Spanish Vuelta cycling race abandoned after disruption by pro-Palestine protesters    Mané fires Al Nassr past Al Kholood to keep perfect start as Ronaldo honored    Lacazette brace earns NEOM SC first Saudi Pro League win    Adolescence star Owen Cooper makes Emmys history at 15    Saudi liquidity grows 8.4%, reaching SR3.1 trillion in July 2025    Over 434,000 people acquire first aid skills during nationwide health campaign    Saudi Arabia's legislative advancement highlighted at International Conference on Judicial Training    Sudden swerving among 3 major causes of accidents in Riyadh in 2024    Princess Haifa emphasizes pivotal Saudi role in shaping future of tourism    Sahm Capital names Saudi Olympian Fayik Abdi as brand ambassador    SR9000 fine for copyright infringement using AI    King Charles and Prince Harry finally reunite after 19 months apart    Anastacia: Arnold Schwarzenegger made me sing Whatta Man 12 times    Thousands pay their last respects to Giorgio Armani, private funeral on Monday    The key to happiness    Sholay: Bollywood epic roars back to big screen after 50 years with new ending    Ministry launches online booking for slaughterhouses on eve of Eid Al-Adha    Shah Rukh Khan makes Met Gala debut in Sabyasachi    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Saudi banks see higher gains in Q2
Published in The Saudi Gazette on 06 - 07 - 2008

Saudi Arabian banks may report higher second-quarter profit this week as industrial expansion and infrastructure spending in the biggest Arab economy raises earnings from corporate loans and project financing.
Net income at the 10 biggest Saudi banks probably advanced by an average 16 percent, according to EFG-Hermes Holding SAE, the largest Arab investment bank by market value. Kuwait-based Global Investment House KSCC forecasts profit at eight banks rose an average 12 percent.
“With economic growth and the mega-industrial projects in the kingdom, there is a need for more banking services,'' said Faisal Hasan, Global Investment's head of research. “Fee income should also grow.''
Saudi Arabia's economy will expand 4.9 percent this year as record oil earnings fuel government spending on energy projects, public works and development ventures such as the $120 billion King Abdullah Economic City, according to a Bloomberg survey of economists. Saudi Electricity Corp., the kingdom's largest utility, has said it will borrow to help finance SR26 billion ($6.93 billion) in new power plants.
Saudi British Bank, the country's third largest bank by market value, may report a 30 percent jump in second-quarter earnings to 824.3 million riyals, according to a mean average of estimates at Shuaa Capital PSC, EFG-Hermes and Global Investment. Al-Rajhi Bank, the largest lender by market value, may say net income climbed 8.7 percent, according to Global Investment.
“Over the short and medium term, loans are going to be the key driver for Saudi banking growth,'' said Murad Ansari, a Riyadh-based analyst with EFG-Hermes. “If you look at Saudi Aramco and Sabic, they are both expanding.''
Even so, profit growth at some banks may be constrained by rising inflation, weaker demand for consumer loans and losses on investments.
Samba Financial Group, the second-largest bank, may report second-quarter net income of SR1.34 billion, a 3.1 percent increase over the previous year, according to a mean average of estimates from Shuaa, EFG-Hermes and Global Investment. Saudi Investment Bank, whose shareholders include JPMorgan Chase & Co., may extend net losses by 13 percent in the second quarter, according to Global Investment.
Banks are unlikely to report strong growth in retail lending because consumers are already burdened with repaying loans previously secured to buy stocks, according to the EFG-Hermes report.
The capacity to take on more debt was “constrained by the weak performance of the stock market,'' Layla Al-Ammar, analyst at Kuwait Financial Center, Markaz, said in an interview.
Saudi Arabia's Tadawul All-Share Index has declined 12 percent this year while the All-Share Bank Index lost 24 percent.
Al-Rajhi has gained 0.6 percent since June 29 when it said it will pay SR1.88 billion, or SR1.25 a share, in first-half dividends. It has declined 21 percent so far this year.


Clic here to read the story from its source.