Riyad Bank, Saudi Arabia's third-largest lender by market value, posted its slowest profit growth in a year as revenue from operations stagnated.
Net income in the three months to March 31 rose 5.5 per cent to SAR691 million ($184.3 million; Dh676.38 million), or SAR1.11 per share, compared with SAR655 million, or SAR1.05 per share, in the year earlier period, it said in a statement on the bourse website.
Operating income was SAR1.21 billion, almost unchanged compared with the year-earlier period.
The earnings missed KSB Capital's SAR823 million forecast in a Reuters profit survey last month.
Net lending income – the largest component of operating income – rose 27 per cent and net banking services fees were up 15 per cent, the bank said. It made no mention of non-trading investments, net exchange income and net trading income.
"The bank's costs recorded relative stability," the bank said, without giving details.
Loans rose 34 per cent and deposits 36 per cent, it said.
Shares of Riyad Bank are down 11 per cent so far this year, compared with a 16.2 per cent decline for the main index. In contrast, shares of rival Al Rajhi and Samba Financial Group are down 34 per cent and 38 per cent, respectively. (Reuters)
Riyad Bank income stagnates