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[2007-07-16] Al Jazira's profit nosedives 69% after market crash
Riyadh: Al Jazira Bank's second-quarter profit plunged almost 69 per cent after a stock market crash in Saudi Arabia slashed fee income at the kingdom's largest broker.
Net profit in the three months to June 30 was 207.3 million riyals ($55.3 million), compared with 664 million riyals in the year-earlier period and 302 million riyals in the first quarter of this year, the bank said in a statement on the Saudi bourse's website yesterday.
The second-quarter earnings were below analysts forecasts in a Reuters survey last month, which ranged from 224.7 to 249.9 million riyals.
Brokerage commissions netted 362.2 million riyals in the six months to June 30, down 71 per cent per cent from the first half of 2006, the bank said.
Al Jazira makes about 70 per cent of its income from brokerage commission, excluding interest payments, research firm KSB Capital Group said.
The bank controls approximately 26 per cent of the country's market for brokerage fees.
