RIYADH, 16 October 2005 — Saudi Hollandi Bank (SHB) reported net profit of SR276.6 million for the third quarter ending Sept. 30, 2005 against SR195 million for the same period last year, a 42 percent increase. The net profit for the first nine months increased by 33 percent from SR550.8 million compared to SR732.4 million for the same period last year.

Giel-Jan van der Tol, SHB managing director, commented on the continuing expansion in profitability resulting from real growth across all core business activities of the bank: “Return on equity increased further to 31.3 percent and the earnings per share stood at SR29.06 compared to SR21.86 for the corresponding period last year. Assets at Sept. 30, 2005 amounted to SR37.4 billion representing a 21 percent increase over the corresponding SR31.0 billion as at Sept. 30, 2004. On the loans and advances side, the bank has been successful in achieving a significant increase of its portfolio by 32 percent from SR15.6 billion at Sept. 30, 2004 to SR20.6 billion at Sept. 30, 2005, while customer deposits grew by 15 percent and reached SR25.3 billion compared to SR22.1 billion as at Sept. 30, 2004.”

Van der Tol added that the enlarged focus on the bank’s consumer banking activities is progressively delivering increased dividends. “We are pleased to see that our consumer lending activity has shown record expansion in the last quarter, while credit cards sales are showing considerable acceleration as well. We are also continuing to experience impressive growth in the “Van Gogh Preferred Banking” customer base, in line with our expectations.”

“Saudi Hollandi Bank is a corporate banking power house. Within that context, our corporate finance team will play an important role in growing our revenue base. Earlier this year, we have signed an agreement with Al-Obeikan Industrial Investment Group appointing Saudi Hollandi Bank as its financial adviser and arranger in relation to the initial public offering (IPO) of Al-Obeikan’s shares on the Saudi stock exchange. This mandate reinforces our drive to be a key player in the capital markets in Saudi Arabia. We have considerably expanded our investment banking team with the appointment of Saudi and international experts, who provide our customers with top class consultation and advisory services,” Van der Tol said.

“The imminent implementation of our new core banking system is expected to greatly enhance our capabilities to provide our valued clients with high standards of service,” the bank’s managing director added. Van der Tol further expressed his appreciation to the SHB customers for their continued support and SHB employees for their contribution to the bank’s success.

Founded in 1926, Saudi Hollandi Bank is one of the leading banks in Saudi Arabia operating 40 branches and 155 ATMs distributed over the Kingdom. SHB is listed on the Saudi stock exchange and has more than 1,300 employees of which 82 percent are Saudi nationals. The Dutch bank ABN Amro owns 40 percent of its stock with the remainder being owned by Saudi investors.