JEDDAH, 17 October — Saudi Hollandi Bank (SHB) reported a net profit of SR371.6 million for the period ending Sept. 30, a 24 percent increase over the same period of last year. Customer deposits, demand for loans and excellent fee commission income were the primary factors behind the improvement during this period, according to a bank press release yesterday.

Another contributing element to this positive achievement, the statement added, was the bank’s well-positioned treasury operations, notwithstanding the latest decline in the international interest rate.

The major growth indicators as shown in the bank’s financial report are: Customer deposits up by 23 percent from SR14 billion to SR17.3 billion, customer loans up by 14 percent from SR9.6 billion to SR11 billion and operating income up by 17 percent from SR637 million to SR743.5 million. The total balance sheet shows a growth of 13 percent from SR21.6 billion to SR24.3 billion and a 24 percent growth in the net income from SR299.9 million to SR371.6 million.

SHB Managing Director Henk Mulder said: "Such good results have come in harmony with the management expectations despite the competitive banking environment in the Kingdom. The bank’s performance for this period has put it on a track for a modest increase in the net profit for the fourth quarter of 2001. This realized real growth has reflected the bank’s solid position in the local financial market."

Despite the general slowdown in the global economy and the prevailing uncertainty, Mulder expressed his moderate optimism toward the Saudi economy generally, and particularly the banking sector. This is reflected by increased liquidity and improvement in the direct and indirect foreign investment flows into the Saudi market. "The continuous growth in the bank’s performance over the last decade reflects the prudent strategies formulated and implemented by the board of directors. This prosperous trend is expected to continue as a result of the ongoing commitment from all levels of the bank to serve its customer base with the highest level of quality financial products and services. The dedication of the bank’s management and staff places SHB as one of the foremost performers among Saudi banks and will prove to be instrumental in maintaining this upward momentum for future success," he added.

The SHB is quoted on the Saudi Stock Exchange with 39 branches and 106 ATMs in the Kingdom. It has 1,103 employees with a Saudization ratio exceeding 70 percent.