Saudi Hollandi Bank posted a 2.3 percent fall in fourth-quarter net profit on Sunday due to higher staffing costs and provisions for bad loans Saudi Arabia's oldest lender made a profit of 451.3 million riyals ($120.3 million) in the three months to December 31, down from 461.9 million riyals in the same quarter of 2014, according to a bourse filing.
Four analysts polled by Reuters had forecast on average Hollandi would make a quarterly profit of 487.4 million riyals. The bank said total operating expenses rose 19.4 percent year on year in the final three months of 2015, driven by "higher salaries and employee related expenses and higher impairment charges for credit losses". It did not elaborate. Saudi companies issue brief earnings statements early in the reporting period before publishing more detailed results later.
Fitch Ratings said in a December 15 note the operating environment for Saudi banks was becoming tougher due to the effect of lower oil prices on government spending and the knock-on effect on the rest of the economy, which would feed through into asset quality in the next two years.
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