RIYADH, 26 January 2005 — Six of Saudi Arabia’s nine leading banks have announced their financial results for 2004. The total profits of the six banks exceed SR9.2 billion. The banks’ aggregate profits for 2004 compared with profits in 2003 are:
Al Jazira SR187.7 million compared with SR93.5 million in 2003, an increase of 101%. Saudi Hollandi Bank SR742.7 million compared with SR600.8 million in 2003, an increase of 24%. Arab National Bank SR1.167 billion compared with SR767 million in 2003, an increase of 52%. Saudi British Bank SR1.6 billion compared with SR1.2 billion in 2003, an increase of 30%. Riyad Bank SR2 billion compared with SR1.6 billion in 2003, an increase of 26%. National Commercial Bank which is not listed on the stock market earned SR3.5 billion in profits, an increase of 25% over 2003.
As required by the Saudi Arabian Monetary Agency, four other banks will announce their results within the next two months.
The four banks are: Saudi Investment Bank, Al Bank Al Saudi Al Faransi, Samba Financial Group (SAMBA) and Al Rajhi Banking and Investment Corporation (Al Rajhi). SAMBA is expected to announce profits in the region of SR2.5 billion compared with SR1.4 billion in 2003. Al Rajhi’s profits are expected to be about SR2.7 billion compared with SR2.038 in 2003.
The performance of Saudi banks has benefited considerably from the business and investment climate during the last three years. Low interest rates, an increase in consumers’ loans and borrowings, enormous cash flows through banks to finance IPO’s and real estate projects have all contributed to healthier and stronger banking results.