Saudi Investment Bank (SAIB) said on Monday its second-quarter net profit dropped by 88 per cent due to provisions, sending its shares lower in early trading.

The bank made SR22 million ($5.87 million) in the three months to end-June, down from SR188 million in the same period a year earlier, the bank said in a statement on the Saudi bourse website.

The bank's shares were down 3.3 per cent at 19.1 riyals a share at 0809 GMT, underperforming the kingdom's index which fell 0.5 per cent.

'The reason for the decline in net profit despite a surge in operational income and noticeable improvement in special commissions profits is due to the bank taking provisions during the period,' SAIB said in the statement.

Operational income for the second quarter rose by 24 per cent to SR449 million compared to SR361 million in the year earlier period.

Profit from special commissions for the second quarter increased by 25 per cent to SR328 million compared to SR263 million in the same period a year earlier. The bank did not give more details on the size of the provisions taken or on their purpose.
-Reuters