Saudi Fransi Drops Most Since 2011 as Profit Falls: Riyadh Mover

Banque Saudi Fransi (BSFR) tumbled the most since March 2011 after the lender partly owned by Credit Agricole SA (ACA) reported a 13 percent decline in first-quarter profit, missing analysts’ estimates.

The shares declined 7.2 percent to 29.60 riyals at 12:05 a.m. in Riyadh, valuing the lender at 26.8 billion riyals ($7.1 billion). The benchmark Tadawul All Share Index (SASEIDX) retreated 0.7 percent.

Net income declined to 684 million riyals, the bank said in a statement today. Net special commission income fell to 799 million riyals from 802 million riyals. The mean estimate of eight analysts was for a profit of 772.5 million riyals, data compiled by Bloomberg show.

Banque Saudi Fransi “reported a set of weak results” due to an increase in provisions, NCB Capital’s analyst Mahmood Akbar wrote in an e-mailed report. “We believe the weak result should affect the short-term sentiment.”

Provision charges increased 2.5 times year-on-year in the first quarter and doubled on a quarterly basis to 155 million Riyals, NCB Capital wrote in the report. Eight analysts have a buy rating on the stock, six say hold and none recommends selling, according to data compiled by Bloomberg.

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