National Commercial Bank 2011 Net Surges 27% to $1.6 Billion

National Commercial Bank, Saudi Arabia’s largest bank by assets, posted a 27 percent increase in profit for last year.

Net income for 2011 rose to 6.012 billion riyals ($1.6 billion) compared with 4.724 billion a year earlier, the state-owned bank said in an e-mailed statement.

Profit gained as “income from core operations increased and operating costs decreased,” Sheikh Abdullah Bahamdan, the bank’s chairman, said in the statement. Operating costs declined 13 percent, it said.

Total assets rose 6.7 percent to 301.2 billion riyals, while deposits expanded 4.5 percent to 239.5 billion riyals, the bank said in the statement. The loan book grew 7.7 percent to 135.3 billion riyals.

Saudi Arabian banks’ lending to the private sector rose to a record of 810.2 billion riyals in October, an increase of 10 percent from the same period last year, according to data on the central bank’s website. National Commercial Bank (NCB) isn’t publicly traded.

To contact the reporters on this story: Mourad Haroutunian in Riyadh at mharoutunian@bloomberg.net

To contact the editors responsible for this story: Shaji Mathew at shajimathew@bloomberg.net;

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