Saudi Gazette report JEDDAH – Saudi banks are showing strength and resilience despite generally weak global economic conditions as shown by their positive returns in the first quarter of this year. On Wednesday, Al Rajhi Bank, Samba Financial Group, and Bank AlJazira announced buoyant earnings for the first quarter of 2013. Al Rajhi Bank Al Rajhi Bank, Saudi Arabia's largest listed lender, posted a 2 percent increase in its first-quarter net profit Wednesday, helped by a jump in both lending and customer deposits portfolio. The bank made a net profit of SR2.05 billion ($546.6 million) in the three months ending March 31, compared with SR2.01 billion in the same period a year earlier, it said in a statement to the Saudi bourse. Two other Saudi lenders, Saudi Hollandi Bank and Saudi British Bank (SABB) beat estimates for first-quarter net profit Monday. Al Rajhi attributed its profit growth to higher operating income, without giving more details. Saudi banks typically do not comment on their performance until they publish more detailed results later in the quarter. Operating income for the quarter rose by 3 percent to SR3.53 billion. Total financing at the end of the first quarter stood at SR180 billion, gaining 18.4 percent on the same point of 2012, although it added that its figures for financing, assets and customer deposits had been reclassified. In a March 26 research note, Dubai-based Arqaam Capital said loan growth at Al Rajhi should be around 17 percent in 2013, with deposits increasing by around 16 percent over the course of the year. Customer deposits stood at SR232 billion on March 31, up 20.8 percent on the same point last year. Al Rajhi's total assets were worth SR276 billion at the end of the first quarter, up 18 percent on the same point of 2012. Samba Financial Group Samba Financial Group, Saudi Arabia's second-largest listed bank, posted a marginal rise in its first quarter net profit Wednesday, but the results still beat analysts' forecasts. Samba said it made SR1.159 billion ($309.1 million) in the first three months of 2013, up 1.2 percent over the 1.145 billion riyals recorded in the same period of last year. It attributed the slight rise in the quarterly profit to higher operating income. Saudi banks have enjoyed successive years of expansionary government budgets, ample liquidity and improving corporate loan demand. Bank lending in Saudi Arabia dipped from December's 14-month high in the first two months of 2013 but growth was still 13.4 percent and 12 percent year-on-year in January and February, respectively. Samba's loans portfolio climbed 15 percent to SR107 billion, while deposits grew 9 percent to SR152 billion. Total operating income for the quarter rose 6 percent to SR1.897 billion, profit from special commissions grew 3 percent to SR1.082 billion. Samba's A+ rating from Fitch was affirmed in March, with the agency stating that a resumption of loan growth, stable loan impairment charges and good cost containment should support earnings in 2013. Bank AlJazira Bank AlJazira posted a 1 percent increase in net profit for the first quarter amounting to SR144 million, compared with net profit of SR143 million for the same quarter last year. It posted a net income of SR98 million the previous quarter, reflecting an increase of 47 percent. The increase in the net income during the first quarter of 2013 compared with the same period in the previous year is mainly due to the increase in operating income. The total operating income during the first quarter was SR443 million, compared with SR427 million for the same quarter in the previous year, reflecting an increase of 4 percent. Net special commission income during the first quarter was SR266 million, compared with SR219 million for the same quarter in the previous year, reflecting an increase of 22 percent. Earnings per share during the three months were SR0.48 per share versus SR0.48 per share for the same period in the previous year. Total assets as of were SR54.12 billion against SR43.26 billion for the same period in the previous year, which reflects an increase of 25 percent. Total investments were SR9.17 billion compared to SR7.44 billion for the same period in last year, which reflects an increase of 23 percent. Total loans and advances portfolio amounted to SR32.41 billion against SR25.07 billion for the same period the in previous year, which reflects an increase of 29 percent. Total customer deposits amounted to SR41.42 billion compared to SR34.60 billion for the same period the previous year, which reflects an increase of 20 percent. The increase in the net income during the first quarter of 2013 compared with the last quarter is mainly due to the increase in operating income.
