JEDDAH, 17 July — Saudi Hollandi Bank (SHB) reported a net profit of SR290.8 million for the first half of 2002, a 17 percent increase over the same period last year.
Increased loan demand from corporate and retail customers, a rise in the deposit base, excellent performance of treasury, Islamic banking and the investment portfolio contributed to its improved performance.
The bank’s financial statements show the following major growth indicators: Customer deposits increased to SR17.81 billion during the first half of 2002 from SR16.84 billion in the corresponding period of 2001, 5.7 percent year on year increase; customer loans SR11.50 billion (SR10.56 billion, plus 9 percent); total balance sheet SR25.96 billion (SR23.65 billion, plus 9.8 percent); total operating income SR550 million (SR503 million, plus 9.3 percent); net income SR291 million (SR248 million, plus 17.1 percent); and earnings per share SR15.39 (SR13.14, plus 17.1 percent).
SHB Managing Director Peter Baltussen expressed his satisfaction with the performance of the bank during the period.
He attributed the performance to more focused marketing efforts, expanded product range, improved cost efficiencies and good control over the bank’s healthy credit portfolio.
“Such results put the bank on the right track for further growth for the remainder of the year and coming years. Our well-trained staff continue to show professionalism and a high degree of dedication to satisfy our customers,” he said.
The composition of the balance sheet reflects the bank’s commitment to supporting the liquidity needs of the Saudi market.
“Innovative and focused marketing initiatives, combined with enhanced consumer banking products and services, resulted in a healthy general growth in all divisions within the bank. New product initiatives are under way, and outstanding service and quality products will continue to be the driving force for progress of the bank,” he added.
“SHB On Line,” introduced by the bank in May, is its comprehensive corporate Internet banking product.
“For this new service, and also for other e-banking initiatives, we’ve been awarded the Saudi e-banking award for the best corporate e-banking initiative. Moreover the SHB Castle Group of Mutual Funds has won eight awards for the year 2001.
The SHB Saudi Equity Trading Fund has been a star performer since its inception in 1995 while the US Equity Fund won the first prize in both one-year and three-year categories.