SABB bank, HSBC's Saudi affiliate, said on Tuesday it has raised by 505 million riyals ($134.7 million) provisions for possible loan losses during the first nine months of 2009.

The bank has booked provisions for possible loan losses of 276.8 million riyals during the January-September period of last year and 430.7 million riyals for the same purpose during the first half of 2009, according to its financial statements.

SABB reported earlier on Tuesday a near-20 percent fall in its net profit during the third-quarter and attributed the drop to the bank's "conservative policy".

In a statement emailed to Reuters, SABB said: "Provision for possible credit losses increased by 505 million riyals compared with the (January-September) period in 2008 reflecting SABB's conservative credit policy in the current economic environment". - Reuters