Al-Rajhi Bank, the largest Gulf Arab bank, has fallen 70% so far this year. The concern is that last years record profitablity will suffer the same fate as happened to its net profit in December 2006. At that time the bank had a run of negative results on the back of a 2006 regional stock market crash which slashed its brokerage and fund management revenue.
Although the bank continues to develop its investment and banking side, unfortunately(market rumours are that) its subsidiary, Bakheet Financial Services, boosted lending when interest rates were low and there were record oil receipts. In other words, they may face the same problem again.
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