RIYADH, 30 January 2006 — Banque Saudi Fransi (BSF) said yesterday its net profit reached SR2.2 billion in 2005, up 44 percent from 2004, mainly after a 139 percent surge in retail banking income. While earning per share rose nearly 45 percent to SR49.2 in 2005, the bank said it would distribute a second-half dividend of SR5 per share, taking total 2005 dividends to SR13 against SR20 in 2004. But it plans to offer shareholders one bonus share for each two they hold.
Al-Rajhi Bank to Launch 2 Funds
RIYADH, 30 January 2006 — Saudi Arabia’s largest listed bank Al-Rajhi will soon launch two equity investment funds for emerging markets, it said on Saturday. The two funds, one for India and China and the other for unspecified emerging markets, will be dollar-denominated and focus on long-term investment in firms that “post record economic growths”, the bank said. It provided no further details on the amount of cash that will be injected into the funds. “We will launch next month subscriptions for the fund,” a bank spokesman said. Al-Rajhi already has 14 funds for local, Gulf and foreign stock markets. Analysts said the move may be motivated by abundant liquidity and stellar valuation ratios the local bourse reached after a strong rally that has lasted for more than three years.