Kuwait City: National Commercial Bank (NCB), Saudi Arabia's largest lender by assets, booked 587.8 million Saudi riyals (Dh575.09 million) in provisions for credit losses in the third quarter of 2010, down from 769.7 million riyals in the year-ago period and 613 million riyals in the last quarter.

Total provisions booked by the lender for loan losses last year more than tripled to 2.47 billion riyals versus 729.4 million in 2008, according to data posted on its website.

Last month, the unlisted lender said its third quarter net profit dropped 20.1 per cent to 833.3 million riyals, but did not explain the fall.

Several Saudi banks hiked provisions in 2009 amid ongoing concerns over the state of the world economy and exposure to financially troubled Saudi conglomerates Saad Group and Ahmad Hamad Algosaibi and Brothers.

Last month, Saudi central bank governor Mohammad Al Jasser said banks should be even more conservative and make provisions to cover more than 100 per cent of their non-performing loans.

  • 833.3m profit reported by firm in third quarter in riyals
  • 2.47b provisions booked for loan losses last year in riyals