JEDDAH: Al-Rajhi Bank has posted a 1.8 percent drop in its fourth-quarter net profit, marking the sixth straight drop in quarterly profit for the sharia-compliant institution.

Al-Rajhi made SR1.52 billion ($405 million) in the three months to Dec. 31 compared with SR1.55 billion in the same period a year earlier, it said in a statement.

Seven analysts surveyed by Reuters had expected the bank to post an average net profit of SR1.70 billion for the quarter.

Al-Rajhi said its board was recommending a SR0.75 per share cash dividend for the second half of 2014, down from the 1 riyal per share which the bank paid for the second half of 2013.

Shares in Al-Rajhi slid 2.7 percent in the opening minutes of trading on the results and the dividend cut.

The profit decrease was attributed to lower total operating income, which fell 12.9 percent to SR3.09 billion, the bank said.

Al-Rajhi had been hard hit by regulations on retail banking fees that were enforced last year, said Naveed Ahmed, senior manager of research at Global Investment House.

It had forecast a fourth quarter net profit of SR1.74 billion for Al-Rajhi.

SAMA published new consumer lending rules in September, giving it the power to cap retail lending at individual banks and limiting fees that banks can charge.

The other Saudi banks to report lower than expected earnings were National Commercial Bank and Saudi British Bank.

Other banks have reported strong earnings growth, including estimate-beating profits from Samba Financial Group, Riyad Bank and Banque Saudi Fransi.