RIYADH, 14 January 2004 — The chairman of Riyad Bank, Rashed Abdulaziz Al-Rashed, announced that the bank achieved a net profit of SR1.59 billion in 2003, compared to SR1.42 billion in 2002. This 12.4 percent increase shows a steady growth in profits and returns to shareholders. Consequently, the return on equity grew 1.74 percent to reach 18.63 percent while the return on assets increased from 2.11 percent to 2.23 percent. The stability and strength of Riyad Bank’s financial position is evidenced by the banks capital adequacy ratio, which now stands at 20 percent.
Al-Rashed added that the growth in profits reflects the bank’s continued efforts to enhance its market position and meet customer needs.
Gross operating income reached SR3.20 billion, an increase of 13 percent over last year.
The trading portfolio performance has been outstanding, achieving gains of SR447 million compared to only SR90 million last year.
This has been achieved despite volatile and uncertain market conditions. The bank’s foreign exchange income has also significantly increased from SR57 million to SR92 million, or 61 percent.
Al-Rashed pointed out that the bank is continuously working on improving and expanding its banking services to its customers in areas such as training services, investment services and mutual funds. As a result, fee income has increased to SR380 million or by 11 percent.
He stated that the growth in the bank’s profit was also due to the balanced growth in assets and focus on high yielding products combined with prudent risk management. Total assets reached SR71.51 billion, an increase of SR4.30 billion while total deposits increased to SR45.88 billion, SR2.88 billion above last year.
Net loans and advances increased to SR27.95 billion, up SR4.10 billion or 17 percent. This is in addition to the increase in the investment portfolio, which has reached SR33.90 billion, 5.4 percent higher than last year.
The bank’s efficiency ratio has improved to 44.3 percent.