Saudi banks’ profit seen flat in Q2, says Riyad Cap

Saudi Arabia’s banks under Riyad Capital’s coverage are forecast to see a flat total net profit of SAR 7.34 billion in Q2 2017, compared to net profit of SAR 7.33 billion in the same period last year.

The brokerage firm attributed the flat net income to a several factors. Fee-based, exchange and other income are likely to decline.

“Salary and other operating expenses have been kept in check by banks given the economic environment but we believe provisions for credit losses and impairment charge on investments will be elevated versus historical average,” Riyad Capital added.

Al Rajhi Bank is projected to post the biggest profit growth at 10 percent year-on-year (YoY) to SAR 2.26 billion.

Meanwhile, Alawwal Bank would report the steepest decline in Q2 earnings at 18 percent YoY.