July 13 (Bloomberg) -- Al Rajhi Bank, Saudi Arabia’s largest lender by market value, posted an 8 percent decline in second-quarter profit, falling below analyst estimates.
Net income dropped to 1.95 billion riyals ($520 million), from 2.09 billion riyals in the year-earlier period, as operating expenses rose, according to a statement to the Saudi bourse today. The mean estimate of 10 analysts was for profit of 1.97 billion riyals, according to data compiled by Bloomberg.
Profit at the Riyadh-based bank slowed for the third consecutive quarter even as the Saudi economy is poised to grow 4.2 percent this year. Earnings per share dropped to 2.25 riyals from 2.57 riyals in the year-earlier period.
The shares fell 1.9 percent to 68 riyals as of 12:08 p.m. in Riyadh and are little changed this year, compared with a 14 percent increase for the Tadawul All Share Index.
To contact the reporter on this story: Deema Almashabi in Riyadh at firstname.lastname@example.org