By Mohammed Abu Meleeh

Riyadh-Mubasher: The provisions set aside by Saudi banks in the third quarter of 2015 reached SAR 1.92 billion ($512.6 million), falling 1% compared with SAR 1.94 billion ($517.7 million) in the same period of 2014.

The provisions, however, are 7.7% higher compared with SAR 1.78 billion ($476 million) in Q2-15.

Riyad Bank and National Commercial Bank (NCB) recorded the largest portion of the total provisions, dominating SAR 140.7 million and SAR 312.26 million, respectively.

The rise in Riyad and NCB’s provisions was due to their hedge against the loans offered to retail clients. NCB raised its provisions for retail loans by 146.87% in Q3, while Riyad increased its provisions for retail loans by 348% in nine months.

Al-Rajhi Bank dominated 21.8% of the total provisions, while NCB accounted for 37.1%. Meanwhile, Riyad’s provisions represented 18.6% of the total.

Translated by Abdul Maguid Aboshahla