Monday, 12 July 2010 at 12:32, Reuters, Jeddah
Saudi Investment Bank (SAIB) said on Monday its second-quarter net profit dropped by 88 per cent due to provisions, sending its shares lower in early trading.
The bank made 22m riyals ($5.87m) in the three months to end-June, down from 188m riyals in the same period a year earlier, the bank said in a statement on the Saudi bourse website.
The bank's shares were down 3.3 per cent at 19.1 riyals a share at 0809 GMT, underperforming the kingdom's index which fell 0.5 per cent.
"The reason for the decline in net profit despite a surge in operational income and noticeable improvement in special commissions profits is due to the bank taking provisions during the period," SAIB said in the statement.
Operational income for the second quarter rose by 24 per cent to 449mn riyals compared to 361m riyals in the year earlier period.
Profit from special commissions for the second quarter increased by 25 per cent to 328m riyals compared to 263 million riyals in the same period a year earlier.
The bank did not give more details on the size of the provisions taken or on their purpose.
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