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Mon 5 Oct 2009 09:37 PM

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Saudi banks profits 6.2% in Jul-Aug - cbank

SAMA data shows cumulative profit of 8.25bn riyals in Q1, 7.92 bn in Q2.

Profits generated by Saudi commercial banks, including the 11 listed ones, fell 6.2 percent in the July-August period, central bank data showed on Monday.Excluding branches abroad, Saudi banks made a profit of 5.33 billion riyals during ($1.42 billion) in the period, according to the Saudi Arabian Monetary Agency's (SAMA) website.

SAMA did not indicate if the data related to net profit and described it only as cumulative profit. Saudi-listed firms were due to start publishing third-quarter earnings this month.

The SAMA data showed that cumulative profit of Saudi banks stood at 8.25 billion riyals in the first quarter of 2009, 7.92 billion in the second quarter.

For the third quarter of last year, Saudi banks - including non-listed National Commercial Bank - made a net profit of about 6.9 billion riyals, according to Reuters calculations.

Many Saudi banks posted lower net profit during the second quarter, mainly due to exposure to troubled conglomerates Saad Group and Ahmad Hamad Algosaibi and Bros Co.

Morgan Stanley said last week that Saudi Arabian banks' third-quarter net income would be under pressure due to the higher amount of money banks set aside to cover bad loans and on subdued fee income. (Reuters)

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