RIYADH, 4 February 2003 — The Saudi Hollandi Bank has reported a net profit of SR555.2 million last year, representing a 12.5 percent increase over 2001.
Peter Baltussen, managing director of the bank, said the return on average equity was 25.46 percent, while the return on average assets was 21.4 percent, with a slight improvement in both categories over 2001.
“Such good results,” the managing director said, “came in accordance with management’s expectations despite the increased competitiveness in the Saudi banking environment.” He added that this steady growth “reflects the bank’s solid position in the local financial market.” In the light of the bank’s performance last year, the board of directors has decided to recommend to the next general assembly of the shareholders to be held in March, a payment of SR9 net per share, being half-yearly dividend on the second half profit of 2002. The total dividends distributed for the whole year thus worked out to SR16 net per share, up 20 percent over the distributed dividend for 2001.
Baltussen also announced the launch of a new Strategic Change Program approved earlier by SHB board of directors to further enhance products and services, while making use of innovative sales management process. A corporate and consumer Sales Productivity Program will be the centerpiece of this program.
SHB has recently concluded a contract with Temenos for its Temenos Globus platform. The new system with full functionality, including retail and corporate banking modules, will enable SHB to streamline its operational efficiency and also enable SHB to meet the new challenges as a leading local bank, the managing director said.
“It will also improve the bank’s customer services capabilities and support its growth ambitions in all its client segments. The new software incorporates multi-bank, multi-currency and multi-language capabilities that will allow SHB to have an overview of its business relationship and enable the bank to maintain its leading edge,” he added.