RIYADH, 18 July 2005 — Saudi Hollandi Bank (SHB) reported a net profit of SR252.8 million for the second quarter of 2005 representing a 32 percent increase over the previous year and a significant improvement over the first quarter’s growth of 24 percent. This brings the net profit for the half-year ended June 30 to SR455.8 million, representing a 28 percent increase over the SR355.7 million for the first half of 2004, according to a press note received here yesterday.
Commenting on the bank’s performance, Managing Director Giel-Jan van der Tol said: “Our performance was healthy as we witnessed encouraging income growth across all our main business activities: corporate banking, consumer banking, treasury and investments.
We are particularly pleased with our continued strong performance in the corporate banking sector, whereby our newly built structured finance expertise plays an important role in growing our revenue base. I am also impressed by the performance of our Van Gogh Preferred Banking concept aimed at affluent individuals, where we are seeing client growth rates in excess of 40 percent since this program’s inception in 2003.”
As of June 30, SHB’s total assets increased by 12 percent reaching SR35.0 billion compared to SR31.3 billion as of June 30, 2004. Shareholders’ equity grew by 15 percent to reach SR3.33 billion compared to SR2.9 billion as of June 30, 2004, where the earnings per share amounted to SR18 compared to SR14 for the first half of 2004. Customer deposits increased by 8.4 percent to SR24.3 billion compared to SR22.4 billion as of June 30, 2004 and loans and advances reached SR18.8 compared to SR15.7 billion as of June 30, 2004, a 20 percent increase. The bank’s investment portfolio grew by 22 percent and amounted to SR9.7 billion compared to SR7.9 billion as at the same date last year.
Van der Tol further highlighted the recent banking services and delivery channels introduced by Saudi Hollandi Bank. “All our newly initiated products namely “Van Gogh” Preferred Banking, Structured Finance & Syndications, Tele Sales and Corporate Finance were favorably received by our valued clients. The introduction of our new core banking system, which will be implemented soon, will greatly enhance our capabilities to continue to provide our valued clients with high standards of service”, he said.
As a result of the bank’s good performance, the board of directors has approved the distribution of a net interim dividend of SR7.5 per share after the payment of Zakat. This will result in a net interim dividend payment of SR189.0 million for the first half of 2005 (compared to an interim dividend of SR6.5 per share last year).
Founded in 1926, Saudi Hollandi Bank is one of the leading banks in Saudi Arabia operating 40 branches and 150 ATMs distributed over the Kingdom. SHB is listed on the Saudi Stock Exchange and employs more than 1,260 employees of which 82 percent Saudi nationals. The Dutch bank ABN Amro owns 40 percent of its stock with the remainder being owned by Saudi investors.