JEDDAH, 16 July — The National Commercial Bank (NCB), which has been recognized as the best retail E-bank in Saudi Arabia for the second consecutive year, announced that it posted higher operating profits for the first half of 2002.

Its net operating profits increased during the first six months of the year. They were up to SR1.4 billion, compared to SR944 million for the same period last year, a rise of SR459 million, or 49 percent. Of these, exceptional capital gains reached SR229 million, according to a NCB statement.

As a result, the return on average assets increased from two percent during the first half of 2001 to 2.8 percent during the first half of this year. As well, the return on shareholders’ equity reached SR31.2 percent for the first half of this year, compared to 29.9 percent for the corresponding period last year.

Declaring the results, NCB Chairman and Managing Director Abdullah Bahamdan said yesterday that the total assets of the bank reached SR101.9 billion during the first half of this year, compared to SR96 billion last year, recording an increase of SR6 billion (6.1 percent). The growth in customer deposits was SR3.4 billion (4.5 percent), bringing customer deposits to SR79.2 billion on June 30 this year, compared to SR75.8 billion last year.

Net loans and advances increased by SR3.6 billion (9.6 percent) to SR41.4 billion by June 30 this year, compared to SR37.8 billion last year. “The increase is due to a general expansion of the various financing activities of the bank through its innovative products,” Bahamdan said.

On June 30, the bank’s investments portfolio increased to SR41.8 billion, compared to SR36 billion last year, recording an increase of SR5.8 billion (16 percent).

Bahamdan indicated that NCB had introduced a number of new products to its customers during the first quarter of this year, including the Alahli Euro Murabbaha Fund, the first of its kind in the market, and the Commercial Tayseer, an innovative financial product for the customers of the corporate sector.

Bahamdan referred to the significant efforts made by the bank’s management and staff in modernizing the whole range of customer services and developing products to cater for their perceived requirements and expectations, and thanked customers shareholders, management and staff for their continuing support to the bank.