Banque Saudi Fransi Q2 profit down 2pc
Jeddah, July 9, 2012
Banque Saudi Fransi, the lender part-owned by Credit Agricole, reported a 2-per cent decline in quarterly profits on Monday, missing forecasts, due to higher operational costs.
The bank made second-quarter net profit of SR757 million ($201.9 million) in the three months to June 30, down from SR773 million in the same period a year earlier.
Analysts surveyed by Reuters had forecast, on average, profit of SR806.50 million.
'The reason for the decline in net income during the second quarter compared to the year earlier is the higher operating costs,' the bank said in a statement to the Saudi bourse.
Total operating profit for the period rose 10.3 per cent to SR1.28 billion from SR1.16 billion a year-ago, it said.
Profits from special commissions were up 7 per cent to SR844 million in the quarter, from SR789 million last year.
Loans and advances increased 18.8 per cent to SR101 billion, from SR85 billion a year earlier, while customer deposits advanced 9 per cent to SR109 billion.
Saudi Fransi, the kingdom's fifth largest bank by market capitalization priced a $750 million five-year Islamic bond in May, attracting orders worth $4 billion.
Dollar-denominated bonds from Saudi Arabia, the world's top oil exporter, come to market relatively infrequently, and attract substantial demand when they do. Saudi Electricity's $1.75 billion sukuk earlier this year received orders in excess of $15 billion.-Reuters