Al-Rajhi Bank, the country’s biggest Islamic lender, posted a 3.6 percent rise in second-quarter profit. The bank credited higher special commissions, or net interest income, and banking fees income and a decline in expenses for the rise in profits.
Al Rajhi had net profit of SR1.84 billion ($491 million) in the three months to end-June, compared with SR1.78 billion in the prior-year period.
Analysts had forecast average quarterly profit to be flat at SR1.78 billion.
Al-Rajhi Bank said its board recommended a dividend of SR1.25 for the first half of 2011.
Meanwhile, Riyad Bank’s profits surged nine percent to SR836 million in the second quarter, up from 766 million last year, topping forecasts for profit of SR789.86 million.
“Riyad Bank blew away estimates — if this sparks a (market) rally tomorrow, it will negate the affect of the seasonality affect,” said a Riyadh-based fund manager.
“People are a lot more confident on banks, they will see better buyers now.”
A massive government spending plan, which includes building 500,000 new homes, has helped lift sentiment in the Kingdom’s banks.
Saudi Hollandi Bank reported a 5.1 percent rise in quarterly profit, beating forecasts, to SR263.6 million.
Saudi Hollandi’s operational profit for the second-quarter climbed 3.4 percent to SR495.2 million.
Bucking the upward trend, Samba Financial Group posted a 9.7 percent drop on profits but still met estimates.
The country’s second-largest lender by market value blamed lower special commissions income for the decline in quarterly profit.
Samba reported net profit SR1.102 billion for the period ended June 30, compared with SR1.22 billion a year earlier.
Analysts had forecast an average profit of SR1.11 billion, according to a Reuters survey.
The banks reported results after the Saudi index closed.
