Saudi's SABB bank makes H1 provisions for loan losses

RIYADH, July 15 (Reuters) - SABB Bank 1060.SE, HSBC's (HSBA.L) Saudi affiliate, made provisions of 246 million riyals ($65.6 million) in the first half for possible credit losses, its managing director said on Wednesday.

"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," 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.

The bank said earlier its second-quarter profit fell 15 percent citing its conservative policy, but did not elaborate. (Reporting by Souhail Karam)