#SaudiArabia’s NCB reports drop in second quarter profit on higher operating expenses - The National

Saudi Arabia’s NCB reports drop in second quarter profit on higher operating expenses - The National:

Saudi Arabia’s National Commercial Bank (NCB), the kingdom's biggest lender by assets, reported a 22 per cent drop in its second-quarter profit as total operating expenses including impairments for bad loans climbed and operating income decreased.

Net profit for the three months ending June 30 declined to 2.09 billion Saudi riyals (Dh2.05bn), the lender said in a statement to the Tadawul stock exchange, where its shares trade. Operating income during the period slid 5.6 per cent to 4.76bn riyals.

Total operating expenses iclimbed 18.4 per cent during the period, “mainly due to higher net impairment charge for expected credit losses". They were partially offset by a decrease in salaries and employee-related expenses, rent and premises-related expenses, depreciation or amortisation of property, equipment, software and ROU (right of use) assets, and other general and administrative expenses, the statement said.