The increase in expenses leads Riyadh Bank's profits to drop 26% in the second quarter

Riyad Bank posted a 26% drop in profits in the second quarter ended June 30, 2017.

The bank posted a net profit of 848 million rials compared to a net profit of 1.146 billion riyals for the second quarter of 2016, according to a statement on the market website.

The bank achieved a net profit of SR 1.473 billion compared to SR 1.360 billion during the same period of 2016, an increase of 8.31%.

The bank said second-quarter earnings decline in 2017 was due to a 28.2% increase in total operating expenses, mainly due to an increase in provision for credit losses partially offset by lower provision for impairment of investments.

Total operating income decreased by 2.1% mainly due to a decrease in net commission and commission income, foreign exchange gains and net non-trading investments, offset by a partial increase in net special commission income.

Similarly, the bank posted a net profit of 1.895 billion riyals compared to a net profit of 2.320 billion riyals for the second quarter of 2016. A decrease of 18.32%.

The bank achieved a net profit of SR 2.899 billion during the first half of 2017 compared to SR 2.627 billion during the same period of 2016, an increase of 10.35%.

Net profit for the first quarter of 2017 reached SR 1.047 billion compared to a net profit of SR 1.174 billion for the first quarter of 2016.