RIYADH, 13 July 2003 — Saudi Hollandi Bank (SHB) has reported a net profit of SR293.5 million for the first half of 2003, which is marginally more than the SR290.8 million for the corresponding period of last year. However, fees from banking services increased 22 percent, from SR75.1 million in 2002 to SR92.1 in 2003.

Shareholders’ equity as at June 30, 2003, was SR2.4 billion, 10 percent more than the SR2.2 billion reported on the same date last year and earnings per share were SR15.53 compared to SR15.39 for the last corresponding period.

Assets at June 30, 2003, amounted to SR27 billion representing a four percent increase over the SR26 billion as at the same date in 2002.

Loans and advances increased from SR11.5 billion in the first half of last year to SR12.4 billion at June 30, 2003.

Liabilities were SR24.6 billion, 3.5 percent higher than its previous year of SR23.7 billion, including customer deposits which increased from SR17.7 billion to SR18.5 billion.

SHB Managing Director Peter Baltussen said the moderate increase in the bank’s net profit came in line with the management’s expectations. He expressed his optimism for the bank’s performance during this period, which reflected the bank’s strong standing in the local financial market.

“The bank is undergoing a major enhancement initiative in all its main business lines to reinforce its position in the local market. These changes include the already adopted ‘Strategic change program’ supported by the latest technologies in banking automation and extensive training for the SHB’s existing work force and the new management training program for its new entrants who will acquire new positions within the bank at mid-management levels after their graduation,” he said.

Recently, the bank launched the Kingdom’s first chip card under the name “SMART Card” which came in line with the bank’s continuous drive to enhance its product mix ensuring that its best products and services rare rendered to its customers.

The bank announced the distribution of an interim dividend of SR7.5 per share.