RIYADH, 21 April — Saudi Hollandi Bank (SHB) has reported a net profit of SR139 million for the first quarter of 2002, a 24 percent increase over the corresponding period of last year.
This increase, according to an SHB press release, has reflected the continuous growth in the balance sheet where the total assets registered 17 percent increase over the same period of last year.
Despite the growth in the total operating income, SHB continued in applying a control policy over the operating expenses. The increase in the total operating income came basically from the fee commission income despite the general drop in the interest rates in the international market. This is referred to the growth of the demand for loans, banking, the inve stment portfolio and the reduction in the cost of financing these portfolios.
Following are the major growth indicators as shown in the financial statements of the bank: Investments (net) up by 20 percent, from SR5.8 billion on March 31, 2001, to SR6.96 billion on March 31, 2002; customer loans up by 14 percent, from SR10.08 billion to SR11.51 billion; customer deposits up by nine percent, from SR15.71 billion to SR18.07 billion; total operating income up by 14 percent, from SR241 million to SR274 million; total operating expenses up by five percent, from SR129 million to SR135 million; and earning per share up by 24 percent, from SR5.9 to SR7.3.
SHB Managing Director Henk Mulder pointed out that such good results reflected the bank’s solid position in the local financial market.
“This good performance continues to place the bank on a track for a good increase in the net profit for the remainder of the year and coming years,” Mulder added.
According to him, SHB will soon launch its Internet banking for the corporate clients under ‘SHB online’ where clients can follow up and execute their banking requirements through the Internet. Also, the bank recently launched two additional Morabahah funds to its Castle Group of Mutual Funds.
The Saudi Riyal (minimum investment SR5,000) and US dollar ($3,000 minimum investment) Morabahah funds effectively broaden the low-risk end of the banks investment portfolio having been designed to achieve maximum possible preservation of capital and steady growth while offering SHB’s clientele superior liquidity.
SHB is embarking on a new initiative to expand its already successful retail business banking. This is in addition to its strong position in the corporate market.” Mulder said: “The latest strategies formulated and implemented by SHB board of directors — concluded in introduction of new products and investment opportunities, serving the customer base with the highest level of quality financial products and services, and providing a practical solution for SHB clients together with the dedication of SHB staff — will continue to be the driving force to the future success of the bank.”