Saudi Hollandi Bank, partly owned by ABN Amro Holding, said its first quarter profit declined 19 percent on lower commission and operational income.
Net income dropped to $61.3 million, or $0.18 a share, from $75.8 million, or $0.22 a share, in the year earlier period, the Riyadh based bank said today in a statement on the Saudi bourse Web site.
Commission income fell 27 percent to $82.3 million.
Tightened lending and increased provisions for bad loans have crimped earnings at Saudi banks since the onset of the global credit crisis and as the economy slowed.
Saudi British Bank, a lender 40 percent owned by HSBC Holdings, reported in February that bad loans surged to $941.2 million last year from $51.6 million in 2008.
Saudi Hollandi’s loan book shrank 7.4 percent in the quarter to $9.7 million, while its investments for the period fell 15.8 percent to $3.54 billion, the bank said.
Saudi Hollandi shares advanced 0.3 percent to $8.90 in Riyadh before the release of the earnings, valuing the company at $2.93 billion.
The stock has advanced 11 percent this year.