RIYADH, July 18 (Reuters) - Saudi Hollandi Bank posted a 72.2 percent drop in second-quarter net profit, far below two analysts' forecasts.
Saudi Hollandi made 90.6 million riyals ($24.16 million) in the three months to June 30, compared to a 326.3 million riyal profit a year earlier, the lender said in a statement on the bourse website.
Two analysts surveyed by Reuters had estimated that Hollandi would post net profit between 261 million and 331 million riyals in the period.
The statement did not give a reason for the decline in the second quarter but said that a 38 percent fall in the first half was mainly due to the bank's 'conservative policy'. It did not explain, but Saudi lenders have used these terms to indicate provisions.
Saudi Hollandi, in which a consortium led by Royal Bank of Scotland is a key shareholder, did not say whether it had booked provisions or was exposed to troubled family conglomerates such as the Saad Group.
Saudi Hollandi's operational profit rose 0.79 percent to 552.5 million riyals in the second quarter.
Assets rose 17.9 percent to 69 billion riyals in the first six months, investments gained 19.3 percent to 16.1 billion riyals. The loan portfolio rose 16.9 percent to 39.6 billion riyals. It gave no quarterly data.
Saudi Hollandi's stock closed up 1.6 percent on Saturday before the results were announced.
(Reporting by Asma Alsharif; Editing by Ulf Laessing/Victoria Main) ($1=3.750 Saudi riyals) Keywords: SAUDIHOLLANDI EARNINGS (Riyadh newsroom, +966 1 463 2603, asma.alsharif@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Saudi Hollandi made 90.6 million riyals ($24.16 million) in the three months to June 30, compared to a 326.3 million riyal profit a year earlier, the lender said in a statement on the bourse website.
Two analysts surveyed by Reuters had estimated that Hollandi would post net profit between 261 million and 331 million riyals in the period.
The statement did not give a reason for the decline in the second quarter but said that a 38 percent fall in the first half was mainly due to the bank's 'conservative policy'. It did not explain, but Saudi lenders have used these terms to indicate provisions.
Saudi Hollandi, in which a consortium led by Royal Bank of Scotland is a key shareholder, did not say whether it had booked provisions or was exposed to troubled family conglomerates such as the Saad Group.
Saudi Hollandi's operational profit rose 0.79 percent to 552.5 million riyals in the second quarter.
Assets rose 17.9 percent to 69 billion riyals in the first six months, investments gained 19.3 percent to 16.1 billion riyals. The loan portfolio rose 16.9 percent to 39.6 billion riyals. It gave no quarterly data.
Saudi Hollandi's stock closed up 1.6 percent on Saturday before the results were announced.
(Reporting by Asma Alsharif; Editing by Ulf Laessing/Victoria Main) ($1=3.750 Saudi riyals) Keywords: SAUDIHOLLANDI EARNINGS (Riyadh newsroom, +966 1 463 2603, asma.alsharif@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.