Saudi Hollandi Bank should continue to post strong profit growth for the rest of 2015, its managing director told Reuters, albeit at levels below first-quarter earnings which were boosted by government gifts to state workers.

The kingdom's oldest lender reported a 29 per cent annual jump in first-quarter net profit, the strongest earnings growth among the eight largest Saudi banks for the period, said a statement.

"We will be showing good growth this year," Bernd van Linder said in an interview on Thursday.

"The environment is supportive. I will not be able to tell you that we will do 30 per cent growth," he added.

A hefty government budget for 2015 was helping provide support for banks, while liquidity in the banking system was also boosted by the gift of two-months extra salary for state employees announced to celebrate the royal succession in January, said van Linder.

The bank was aiming for faster loan growth during the year than the 11 to 12 per cent growth he estimated the entire banking sector would average, he said.

Its year-on-year loan growth in the first quarter was 17 per cent, with expansion faster in its retail and smaller and medium sized-business (SME) than its broader corporate book.

Founded in 1926 as the first bank in Saudi Arabia, the lender was originally part of the Netherlands Trading Society. It has been focusing on growing its retail and SME divisions in recent years to help diversify its income stream.

Retail and SMEs accounted for more than 20 per cent of its loan book at the end of last year, up from less than 14 per cent in December 2012, Linder said.

"If you have a good retail book, it gives you a sustainable source of income that's less susceptible to changes in the economy," he said.

The impact of lower oil prices on the kingdom has so far appeared to be largely contained to energy and petrochemical companies, with some reporting lower earnings and stalling projects.

Growth in the kingdom's non-oil private sector climbed to a six-month high in March, the latest SABB HSBC Saudi Arabia Purchasing Managers' Index showed.

Saudi Hollandi planned to add a further 10 to 12 branches to its network last year, the same number as last year, he said. It currently has around 56 branches, Linder said. - Reuters