RIYADH, 25 January 2006 — The Saudi British Bank (SABB) recorded a net profit of SR2.5 billion ($668 million) last year, up 52.2 percent over the SR1.65 billion ($439 million) in 2004, according to John Coverdale, SABB managing director.
He said earnings per share increased to SR50.09 ($13.36) compared to SR32.92 ($8.78) for the previous year. Net profit and earnings per share in 2004 have been restated to reflect the adoption of the revised International Accounting Standard 39 — Financial Instruments: Recognition and Measurement. Customer deposits increased to SR48.5 billion ($12.9 billion) in 2005 from SR44.7 billion ($11.9 billion) the previous year, up SR3.8 billion ($1.0 billion) from, or 8.5 percent over, 2004.
Loans and advances to customers increased to SR40.8 billion ($10.9 billion) in 2005 from SR31.6 billion ($8.4 billion) in 2004 — up SR9.2 billion ($2.5 billion) or 29.1 percent over 2004. Total assets amounted to SR65.9 billion ($17.6 billion) in 2005 — up SR8.0 billion ($2.1 billion) or 13.8 percent over 2004.
The bank’s investment portfolio totaled SR16.4 billion ($4.4 billion) in 2005, an increase from SR14.7 billion ($3.9 billion) in 2004.
Coverdale said “SABB has achieved excellent results for 2005 as it was well-positioned to serve its customers during a year of strong economic expansion and stock market performance in Saudi Arabia”. He added that SABB’s business and product segments have performed well and carry good momentum into 2006. Credit and investment portfolios are sound and prudently managed. Capital and liquidity remain strong, and we plan to utilize some of our 2005 earnings to further increase our paid-up capital via a bonus share issue.
“Notable among many highlights of 2005 was a credit ratings upgrade from Fitch Ratings, and approval for establishing the first full-service, independent investment bank in Saudi Arabia as a joint venture between SABB and the HSBC Group,” he said. He added that the directors have recommended a final net dividend of SR5 per share. “The total net dividend for 2005 will amount to SR15 per share as an interim net dividend of SR10 per share was paid in July 2005,” he said.