Saudi banks second-quarter profits seen falling

Saudi Arabian banks may report declines in second-quarter profit after they tightened lending rules and increased provisions for bad loans.

Net income at the 10 biggest Saudi banks probably dropped by an average of 19%, according to EFG-Hermes Holding, the largest Egyptian investment bank by market value. Dubai-based Al Mal Capital forecasts that profit at the five Banks it tracks declined an average of 11%.

Saudi banks have been hurt by falling oil prices, which slowed growth in the biggest Arab economy and forced some of the kingdom’s biggest family-owned companies to restructure debts.