Saudi Investment Bank surged the most in more than two years after a 48 percent jump in first-quarter profit surpassed analysts’ estimates.
The shares soared 8.4 percent, the most since March 2011, to 19.35 riyals at the close in Riyadh. The stock was the second-biggest gainer on the benchmark Tadawul All Share Index, which rose 0.7 percent.
About 1.2 million Saudi Investment shares were traded, 7.5 times the three-month daily average, according to data compiled by Bloomberg. The bank’s profit surged to 314 million riyals ($84 million) from 212 million a year earlier, as loans and advanced climbed. That beat the 261 million-riyal median estimate of three analysts, data compiled by Bloomberg show.
“The market anticipated a drop” in earnings after central bank data showed profits of the kingdom’s lenders were declining, Mohammed Al-Omran, a Riyadh-based financial analyst and president of the Gulf Center for Financial Consultancy, said by e-mail.
Cumulative profit of Saudi banks fell to 6.25 billion riyals in the first two months of this year from 6.74 billion riyals in the same period a year earlier, according to data of the Saudi Arabian Monetary Agency.