RIYADH, 12 October 2005 — The Saudi British Bank’s (SABB) nine-month net profit rose 50.8 percent to SR1.87 billion ($500 million) compared to SR1.24 billion ($331 million) in the same period in 2004, the bank said yesterday.
Earnings per share increased to SR37.48 ($9.99) from SR24.85 ($6.63), up 50.8 percent. Customer deposits have continued to grow to SR45.6 billion ($12.2 billion) from SR39.4 billion ($10.5 billion) in 2004, while loans and advances to customers rose to SR39.6 billion ($10.6 billion) from SR29.5 billion ($7.9 billion). Assets totaled SR67.4 billion ($18 billion), up SR15 billion ($4 billion) or 28.7 percent over 2004. The bank’s investment portfolio totaled SR16.9 billion ($4.5 billion), an increase from SR14.9 billion ($4 billion).
“SABB has registered a record performance over the first three quarters of 2005. Business growth in Saudi Arabia remains strong, and banking sector revenues have received a significant boost from very strong investor participation in a buoyant stock market. In addition to these exceptional earnings, it is important to note that we have also achieved strong growth in other areas. We’ll continue to maintain close focus on the core fundamentals of our business in order to maintain a balanced earnings and growth momentum,” said SABB Chairman Abdullah Al-Hugail.
Operating revenues have continued to strongly outperform 2004. Despite ongoing investment in technology, staff, and product development, the bank’s cost to income ratio remains well within expected parameters. Customer deposits have continued to grow, and good macro-economic conditions have fuelled strong customer asset growth. Asset quality remains sound, with a relatively low level of provisions for credit losses. Despite the strong asset growth, SABB remains well capitalized and liquid.
During the third quarter of 2005, the SABB became the first bank in the Kingdom to be awarded an ‘A’ credit rating by the Fitch Ratings agency. This upgrade acknowledged the bank’s continuing strong profitability, improving asset quality, and sound capitalization, funding, and risk management profile.
“We’ve good business momentum, and are well positioned to develop new products in response to the needs of our customers in an environment where we expect strong growth and rapid change. We deeply appreciate the continuing support of our customers and the sustained effort of our staff in delivering these excellent results,” he said.