Saudi’s largest lender NCB posts 3.5% rise in Q4 profit

Saudi Arabia’s National Commercial Bank (NCB), the country’s largest lender, saw a 3.5 per cent rise in fourth-quarter net profit, according to Reuters calculations, while its annual profit met analysts’ forecasts.

The bank, which is in merger talks with Riyad Bank, made a net profit of SAR2.65bn ($706.6m) in the three months to Dec. 31, up from SAR2.56bn in the same period of 2017, Reuters calculated from financial statements in the absence of a quarterly breakdown.

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It is the second Saudi bank to report earnings results after Samba Financial Group, which made a net profit of SAR1.41bn in the period, up from SAR1.21bn in the same period of last year, Reuters calculated from financial statements in the absence of a quarterly breakdown.

Saudi banks are expected to report modest lending growth in the coming months as net interest margins improve as result of higher interest rates and more robust economic growth due to expansion in the oil sector.

NCB reported an 8.8 per cent rise in annual profit for 2018 to SAR10.67bn, from SAR9.80bn in the year earlier as a result of higher total operating income and lower operating expenses.

That was in line with the average forecast of eight analysts who expected the bank to make a profit of SAR10.86bn, according to Refinitiv data.