RIYADH, 16 October 2004 — Saudi Hollandi Bank (SHB) registered a net profit of SR550.8 million ($146.9 million) for the nine months ending Sept. 30, 2004, up 24 percent from the same period last year, according to SHB Managing Director Peter Baltussen.

“Return on equity increased further to 27 percent and earnings per share stood at SR21.86 compared to SR17.68 for the corresponding period last year (as adjusted for the 1 for 3 bonus issue in March 2004),” he said.

Assets as of Sept. 30, 2004 amounted to SR31.0 billion representing a 15 percent increase over the corresponding figure of SR26.9 billion as of Sept. 30, 2003. On the loans and advances side, the bank has been successful in achieving a significant year-to-date increase of its portfolio by 20.4 percent from SR13 billion as of Sept. 30, 2003 to SR15.6 billion on Sept. 30, 2004, while customer deposits increased around 20 percent from SR18.5 billion to SR22.1 billion.

“We are pleased with the substantial growth of our operating profit of 32 percent before provisions for the period ending Sept. 30, 2004. I am particularly pleased with the very significant increase of our bank’s fee income with 77 percent, which resulted from solid growth of both consumer and corporate banking activities,” he said.

Baltussen acknowledged the favorable development of the Strategic Change Program initiated in 2002 by the directors’ board and notably the results from the “Van Goh” preferred banking segment which included the wealth management accounts and various innovative investment products that have been well-received by customers.

“On the structured finance side, we have seen a sound and growing deal flow resulting in remunerative finance and advisory mandates in Saudi Arabia’s key economic sectors. In doing so, SHB has been involved as mandated lead arranger and documentation bank in many of the landmark deals in the country this year,” he added.

He expressed his appreciation to the SHB customers for their continued support and SHB employees for their contribution to the bank’s success.