JEDDAH, 20 October 2005 — The combined third quarter profits of Saudi commercial banks rose by 57.38 percent to SR19.6 billion compared to last year’s results of SR12.48 billion for the same period.
Al-Rajhi Banking & Investment Corp. posted the highest third quarter (3Q) profit of SR3.8 billion, followed by National Commercial Bank with SR3.7 billion and Samba Financial Group SR3 billion.
Bank AlJazira registered the highest growth rate of 307 percent during the last nine months while Al-Rajhi bank achieved a growth of 82 percent. Saudi-Hollandi Bank posted the lowest growth rate of 33 percent.
The 3Q profits of Saudi Investment Bank rose by 78 percent, Arab National Bank 57 percent, Riyad Bank 50.1 percent, the Saudi British Bank 50.8 percent and Banque Saudi Fransi 38 percent.
The remarkably good performance Saudi commercial banks reflected the strength of the economy and their growing role in financing economic and commercial projects.
Saudi banks have received higher ratings from well- known international rating agencies. Financial analysts attributed the banks’ good performance to growing oil prices and their financing of stock market deals.
The financial statements of the 10 banks have indicated steady growth in deposits of clients, reflecting high liquidity of Saudis. They were also successful in reducing their expenditures, despite their efforts to modernize services and train Saudi manpower.