Saudi Arabia’s biggest bank NCB posts 20.3% rise in quarterly profit

Saudi Arabia’s biggest bank by assets, National Commercial Bank, posted a 20.3% increase in third-quarter profit on Thursday, supported by higher operating income.

Shariah-compliant NCB reported 2.55 billion Saudi riyals ($680 million) in net profit for the three months ending September 30 versus 2.12 billion riyals for the same quarter last year.

“Total operating income increased by 5.9% mainly due to the increase in net special commission income, investment related income and lower other operating (expense), which partially offsets by a decrease in fee income from banking services and exchange income,” the bank said in an exchange filing.

Its assets rose 8.1% to 498.05 billion riyals from the end of last year.

The bank’s customer deposits and financing books each grew at the same rate – 4.6% for the nine months ending September 30.

Deposits reached 340.38 billion riyals and financing grew to 280.53 billion riyals.

NCB announced in December it was negotiating a potential merger with smaller rival Riyad Bank that posted assets of 246.12 billion riyals at June 30.

Saudi-based news provider Argaam.com reported on October 21 that Riyad Bank CEO Tariq Al Sadhan told Al-Arabiya TV the proposed merger is still “under study”.

($1 = 3.75 Saudi riyals)

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