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Saudi banks’ provisions down 22% to SR1.6bn in Q3

Provisions for credit losses allocated by 11 listed Saudi banks fell by 22 percent to SR1.6 billion in the third quarter (2013) compared to SR2.1 billion for the same period in 2012, according to a financial report.
Similarly, provisions of the banks fell by 12 percent to SR4.2 billion during the past nine months of the year compared to SR4.7 billion of the same period last year, the report, filed by Al-Eqtisadaiah daily, said.
Based on data and financial statements released by the banks, Riyad Bank has the largest drop of its provisions for credit losses, which stood at SR139.6 million in Q3, 2013 compared to SR327.3 million in Q3, 2012, or a decrease of 57.3 percent, the report said.
Al-Rajhi Bank, meanwhile, has its provisions dropped to SR739.5 million in Q3, 2013 compared to SR829.7 million in Q3, 2012 whereas provisions of Saudi British Bank (SABB) fell by 25 percent to SR216.2 million against SR288.2 million in the comparable periods, the report said.
Provisions of Al-Bilad Bank (BB) also dropped by 53.6 percent to SR40.1 million compared to SR86.4 million in Q3, 2012 whereas provisions of Saudi Holland Bank (SHB) fell by 77.9 percent to SR12 million in Q3, 2013 compared to SR54.2 million in the equivalent period last year, the report said.
Meanwhile, Bank Aljazira has its provisions dropped to SR2.9 million in Q3, 2013 against SR35.7 million in Q3, 2012 and similarly Al-Inma Bank has its provisions dropped to SR28.3 million compared to SR44.1 million in the comparable periods.
Despite the overall reductions of provisions for the majority of Saudi banks in Q3, 2013 compared to last year‘s figures, provisions of the Arab National Bank (ANB) and Samba Financial Group (SFG) grew by 20 percent and 73 percent respectively, the report said.
Al-Rajhi Bank was the biggest bank to have allocated provisions for credit losses in Q3, 2013 which captured 46 percent of SR1.6 billion worth of provisions, followed by SABB (13 percent), ANB (11 percent), and Saudi Fransi Bank (SFB) at 10 percent, the report said.