UPDATE 2-Saudi SABB Q2 net falls 15 pct on provisions

* SABB doubles provisions for loans

* Deposits up yr/yr, but down qtr/qtr (Recasts, adds details throughout on second-quarter results)

RIYADH, July 15 (Reuters) - HSBC's (HSBA.L) Saudi affiliate SABB bank 1060.SE said second-quarter profit fell 15 percent after it doubled provisions for possible credit losses amid concerns over the solvency of some debt-laden family businesses.

SABB, in which HSBC holds a 39.9 percent stake, made a net profit of 676 million riyals ($180.3 million) in the three months to June 30 against 795 million riyals a year earlier, it said in a statement on the Saudi bourse website.

The average forecast of three analysts surveyed by Reuters was 697 million riyals. [ID:nL5593096]

SABB attributed the fall to "the bank's conservative policy."

"SABB's strong operating income streams have allowed the bank to report robust profits for the first half of 2009 despite a 246 million riyals increase in provisions for possible credit losses," managing director Richard Groves said in a statement.

According to its audited report, SABB made a provision for possible credit losses of 116.3 million riyals in the first quarter. Based on Groves statement, the bank increased this provision by 129.7 million riyals in the second quarter.

Like other Saudi lenders, the bank did not say whether it was exposed to troubled Saudi family firms Ahmad Hamad Algosaibi and Bros Group (AHAB) and Saad Group [SAADG.UL].