RIYADH, 5 October 2006 — Arab National Bank’s (ANB) net profit for the nine months ending Sept. 30, 2006 increased by 38 percent to $518.67 million compared to $376.54 million for the same period last year, according to an ANB press release yesterday.
Earning per share increased to SR5.98 from SR4.34 for the same period last year. The third quarter profit reached $157.6 million compared to $138.67 million for the same period last year, an increase of 14 percent.
This increase came as a result of a 25 percent rise in operating income for the first nine months of 2006 to reach $780.54 million due to an increase of 12 percent in net special commission income to $489.34 million and an increase of 67 percent in fees from banking services to reach $220.27 million, while operating expenses increased by only 6 percent.
Loans and advances portfolio rose by 33 percent to reach $12.93 billion, while customer deposits grew by 27 percent to $15.57 billion. Total assets rose to $19.52 billion and shareholders’ equity reached $2.03 billion. The annualized return on equity was 37 percent.
Dr. Robert Eid, the bank’s CEO, said: “The bank continues its outstanding performance while focusing on effectiveness of its operating procedures and systems, service quality, effective risk management and cost control. Undoubtedly, the balanced and outstanding growth of the Saudi economy has contributed significantly to the favorable business environment enjoyed by the banking sector.”