Saudi SABB coffer books $94 mln for Q3 accommodation losses

RIYADH – SABB coffer (1060.SE), HSBC's Saudi affiliate, appointed 351.5 actor riyal ($93.7 million) in accoutrement for accommodation losses during the third quarter, bourse abstracts showed on Saturday.

SABB appear a worse-than-expected 19.8 percent bead in third-quarter net profit, hit by an access in accoutrement for bad loans.


The abstracts additionally showed that Aljazira Coffer (1020.SE) fabricated accoutrement for accommodation losses of 115.7 actor riyals during the third quarter, the lender's accomplished in at atomic one year, while Saudi Investment Coffer (SAIB) (1030.SE) appointed 60 actor riyals for the aforementioned purpose, its the accomplished this year.

Aljazira appear a 14 percent access in third-quarter net accumulation [ID:nLE169399] while SAIB tripled its net accumulation during the aforementioned period.

The accoutrement accept been broadly accepted amidst apropos over the solvency levels of heavily accountable Saudi conglomerates Saad Group (SAADG.UL) and Ahmad Hamad Algosaibi & Bros (AHAB).

Unlike their aeon in the Gulf Arab region, Saudi banks accept not appear the akin of their acknowledgment to these two firms and this keeps analysts apprehensive whether any anew appointed sums would be aerial abundant to absolutely beanbag them adjoin advancing losses.

A Saudi government console has brokered a accord amid Saad Group and Saudi lenders but neither affair appear the capacity of the agreement.

Saudi axial coffer governor Muhammad al-Jasser said aftermost anniversary that Saudi banks would accomplish abiding they accept abundant accoutrement for ambiguous debts. Jasser has already in the accomplished encouraged Saudi banks to accumulate the akin of their acknowledgment to the two groups secret.

Saad and AHAB are at the centermost of an estimated $22 billion debt implosion. The two firms are aggressive in cloister over declared banking irregularities in the deathwatch of a debt restructuring.


Standard & Poor's has said it begin banks in Saudi Arabia and the United Arab Emirates accounted for about two-thirds of the absolute net acknowledgment to the conglomerates of the 30 bartering banks it ante in the Gulf.

(Reporting by Souhail Karam; Editing by Sugita Katyal)