Newly launched Saudi bank Alinma made a $20 million net loss due to increased operational costs and a decline in revenues, according to figures issued on Wednesday.
The bank, which opened its first retail banking branches in July, made a net profit of $29 million in the first quarter of 2009.
In a results statement posted on the bourse website, the bank said: "The decline in first-quarter earnings compared to the same quarter in the previous year stemmed from lower return on investments and an increase in operating costs as a result of the effective start of the bank's operations."
Operating profit fell by more than half in the first quarter to $21.8 million, the bank said.
This corresponds to a rise in operating costs to $41.8 million in the first quarter of from $18.3 million a year earlier, according to Reuters calculations. (Reuters)