Saudi's Alawwal Bank swings to Q4 net loss on rising costs
DUBAI, Jan 19 (Reuters) - Alawwal Bank, Saudi Arabia's oldest lender, swung to a net loss in the fourth-quarter as operating expenses climbed.
The lender, previously called Saudi Hollandi Bank, reported a net loss of 249.3 million riyals ($66.5 million) in the three months to Dec (Shanghai: 600875.SS - news) . 31, down from a net profit of 451.3 million riyals in the same quarter of 2015, according to a statement.
Alistithmar Capital and EFG Hermes had forecast Saudi Hollandi would make a quarterly profit of 330.5 million riyals and 438.0 million riyals respectively.
The bank attributed its performance to a 181.5 percent climb in operating expenses due to a rise in impairment charges for credit losses and general and administrative expenses.
Total (LSE: 524773.L - news) operating income rose by 5.2 percent because of an increase in net special commission income and a gain on non-trading investments, although the rise was partially offset by a drop in income from fees and foreign exchange.
Saudi banks are struggling as cheap oil cuts state revenues and forces the government to cut expenditure, hitting consumer spending and business activity, and pushing up bad loans.
The bank, which launched a new corporate identity in November, could undergo a change in shareholder after Royal Bank of Scotland hired Credit Suisse (IOB: 0QP5.IL - news) to sell its 40 percent stake in the lender, sources told Reuters in November.
The bank said certain previous year figures were reclassified in its results to conform to the current period. ($1 = 3.7492 riyals) (Reporting by Tom Arnold; Editing by Alexandra Hudson)