RIYADH - Newly launched Saudi bank Alinma made a SR75 million ($20 million) net loss due to increased operational costs and a decline in revenues, according to figures released on Wednesday.
The bank, which opened its first retail banking branches in July, made a net profit of SR109 million in the first quarter of 2009.
“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,” it said in a results statement posted on the bourse website.
Operating profit fell by more than half in the first-quarter to SR82 million, the bank said.
Meanwhile, Saudi Hollandi Bank posted a 19 percent drop in net profit during the first-quarter after a decline in both its lending income and loans portfolio.
The bank made a net profit of SR230 million Saudi ($61.33 million) in the three months to end-March, down from SR284.4 million in the year-earlier period, the bank said in a statement on the bourse website.