RIYADH, Feb 1: Al-Rajhi Banking and Investment Corp. (ARABIC), one of the largest expanding banking units in Saudi Arabia, said on Saturday its profits last year dropped 8.4 per cent.

ARABIC posted net profits of $376.8 million at the end of 2002 compared to $411.2 million the previous year, the bank said in a statement.

The bank’s profits also dropped in 2001, diving 16.7 per cent over net profit income of $493.8 million posted in 2000.

Total assets of the bank rose to $15.2 billion on December 31, last year, up 8.6 per cent on their level at the end of 2001.

ARABIC has the second largest market capitalization of $7.5 billion among the nine listed Saudi banks.

General Manager Abdullah al-Rajhi attributed the drop in profits to unfavourable conditions in world markets and sharp fluctuations in the global economy and investments.

ARABIC has 391 branches and 800 ATMs in Saudi Arabia, making it the largest banking network in the kingdom. —AFP