RIYADH, 12 February 2006 — State-owned National Commercial Bank (NCB), Saudi Arabia’s largest bank, said yesterday its net profit increased 41.9 percent to SR5.01 billion ($1.34 billion) in 2005. The profit growth was less than that of many banks listed on the booming Saudi stock market.
The bank, which is expected to float shares publicly this year or in 2007, said in a statement that operating income rose 25.5 percent to SR7.49 billion. Total assets grew by 11.8 percent to SR145.79 billion and earnings per share rose to SR41.8 from SR29.4 in 2004.
NCB Chairman Abdalla Bahamdan announced the bank continued to maintain its high profitability ratios as the return on assets (ROA) increased to 3.6 percent, the return on equity (ROE) was 28.3 percent, while earnings per share (EPS) improved from SR29.4 in 2004 to SR41.8 in 2005.
Reflecting NCB’s commitment to recruit and develop young Saudis, the bank’s Saudization ratio increased from 84.2 percent in 2004 to 86.1 percent in 2005.
The board recommended to pay out cash dividends of SR10 per share for the year 2005. The board has also recommended increasing the paid-in capital from SR6 billion to SR9 billion by transferring SR3 billion from general reserve through issuance of one bonus share for every two outstanding shares.