Al Rajhi raises loan provisions by 24.5% in Q1

Al Rajhi Bank, the biggest Saudi-based lender by market value, raised provisions against loan losses by 24.5 per cent during the first quarter, though these were still at their lowest level in four quarters.

Bourse data showed that Rajhi set aside SR358.9 million (Dh351.50m) in impairment charges for loan losses during the three months to March 31, against SR288.4m a year earlier.

The Saudi bourse's website did not explain what these provisions were for.

On Wednesday, bourse data showed that Samba Financial Group and Sabb, two of Saudi Arabia's biggest lenders, booked additional provisions against loan losses during the first quarter following a surge in bad loans last year.

Profits at most Saudi banks declined during the first quarter due mainly to a decline in lending income.

Saudi Arabia's banks will report stronger growth with the resolution of the Saad Group and Ahmad Hamad Algosaibi & Brothers Co debt problems, Asharq Al Awsat said, citing Nomura Holdings' Chief Executive Officer Kenichi Watanabe.

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