RIYADH, 30 January 2005 — Saudi Hollandi Bank (SHB) achieved a net profit of SR742.7 million in 2004, up 24% from SR600.8 million in 2003, according to SHB Managing Director Peter Baltussen. He also said that the continuing improvement in profitability resulted from solid growth across all the main segments of the bank.

Return on average equity increased by 10% to 27.30%, return on average assets increased from 2.19% to 2.42% while net earnings per share increased from SR23.84 in 2003 to SR29.47 in 2004 (as adjusted for the one for 3 bonus issue in March 2004).

Loans and advances at the end of 2004 amounted to SR16.6 billion, a 19% increase over the previous year’s SR14.0 billion. The total of all assets at the end of 2004 amounted to SR33.4 billion compared to SR28.0 billion at the end of 2003. Customer deposits increased by 21% from SR19.7 billion at the end of 2003 to SR23.9 billion at the end of 2004.

“Our achievements for 2004 have put the bank on track for a solid performance for the years to come. We are well-positioned to further grow the bank as we increased our paid-up capital from SR945 million to SR1,260 million in March 2004 and increased our Tier 11 capital by successfully issuing subordinated notes of SR700 million in December 2004, a transaction which was a first in the Saudi market,” Baltussen said.

He further acknowledged the continuing success of the Strategic Change Program initiated in 2002 by the Board of Directors. “Our offering to the ‘Van Gogh’ preferred banking segment, which includes the wealth management account and various innovative investment products has been well received by our valued customers. On the structured finance side we have seen an increasing deal flow resulting in advisory mandates in Saudi Arabia’s key economic sectors,” he said.

He said that on the structured finance side “we have seen an increasing deal flow resulting in advisory mandates in Saudi Arabia’s key economic sectors.”

“In doing so, SHB has been involved as Mandated Lead Arranger and Documentation Bank in a number of the landmark deals in the country during 2004,” he added. He expressed his appreciation to SHB customers for their dedication, hard work and continued support and the employees for their contribution to the bank’s success.