Saudi Hollandi Beats Forecasts With 37% Profit Jump

The Kingdom’s banks are benefiting from a robust economic backdrop.

Saudi Hollandi Bank beat forecasts with a 37 per cent rise in third-quarter net profit, joining rivals in benefiting from rising lending, deposits and dealmaking in an economy buoyed by years of high oil prices.

Saudi Arabia’s eighth-largest listed bank said on Monday it made SAR433.3 million ($115.5 million) in the three months to Sept. 30, topping the average forecast of SAR398.9 million in a Reuters poll of five analysts.

Operating income climbed 16 per cent to SAR667 million, while profit from special commissions grew 20 per cent to SAR433 million, it said, without elaborating.

Saudi companies issue brief earnings statements early in the reporting period before publishing more detailed filings later.

The Kingdom’s banks are benefiting from a robust economic backdrop, with years of high oil prices and government surpluses pushing state spending to record levels.

Earlier on Monday, Riyad Bank, Saudi Arabia’s third-largest listed lender, registered a 18.8 per cent rise in quarterly profit.

Meanwhile, Alinma Bank said on Monday its third-quarter net profit advanced 33.7 per cent year-on-year.

Saudi Hollandi’s loans portfolio stood at SAR53.67 billion at the end of September, 23 per cent higher than the same point of 2012.

While at a nine-month low in August, bank lending to private companies still grew at a rate of 15 per cent, according to central bank data.

Saudi Hollandi’s deposit base gained 16 per cent year-on-year to SAR61.4 billion.