Saudi's Samba tumbles as Q4 misses estimates

Samba Financial Group made its largest drop in seven months after its quarterly profit missed estimates, while other Saudi banks also fell as initial relief over lower provisions gave way to fears for balance sheet growth. Samba dropped 3.2 per cent, its biggest decline since June 5. The lender reported a 7.9 per cent rise in quarterly profit to 901 million riyals, but fell shy of the average analyst forecast of 1.04 billion riyals.

"Some disappointment in bank numbers has put some pressure on the market today. Banking continues to weigh on the Saudi market. Balance sheet expansion has not come through and in the case of Samba there has been balance sheet contraction. Key revenue drivers continue to show negative signs. Lower provisions are the primary drivers of beat on the bottom line, but people are more concerned about a return to balance sheet growth," says Walid Shihabi, Shuaa Securities chief executive. Sabb falls 0.5 per cent and Al-Rajhi Bank drops 1.5 per cent. Saudi Arabia's index slips 0.3 per cent to 6,768 points, its first decline in five sessions.