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)For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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