RIYADH, 11 October 2006 — The Saudi British Bank (SABB) recorded a net profit of SR2.46 billion ($655 million) for the nine months ended Sept. 30, 2006. This represents an increase of 31 percent over the SR1.87 billion ($500 million) earned during the same period last year.

In a statement released here, it said earnings per share increased to SR6.55 compared to SR5 for the same period last year. Earnings per share for the nine months ended Sept. 30, 2005 have been adjusted to reflect a 1:2 bonus issue approved at the annual general meeting held on March 21, 2006 and a 5:1 share split effective April 8, 2006.

Customer deposits surged to SR 59.7 billion on Sept. 30 this year from SR45.6 billion for the same period last year.

Loans and advances to customers shot up to SR41.2 billion on Sept. 30 this year from SR39.6 billion for the same period last year. Total assets stood at SR77.5 billion on Sept. 30 this year - up SR10.1 billion, or 15 percent over the same period last year.

The bank’s investment portfolio totaled SR16.6 billion, down from SR16.9 billion.

John Coverdale, managing director of SABB, said: “SABB’s focus on its core banking businesses has continued to deliver robust growth and results for its shareholders. The expected impact on income resulting from a turbulent stock market in the first half of the year has been absorbed, and SABB is well placed for future growth.

“Operating revenues have grown by 30.1 percent compared to the same period in 2005, while our cost base has increased 34.1 per cent. SABB continues to invest in strategic technology and service delivery channels in order to enhance customer service and grow the business.

“The credit quality of our various portfolios remains sound and delinquencies are in line with anticipated increases due to growth in our cards and personal loan businesses. Deposit growth has been strong over the past few months as investors have rebalanced their portfolios and several corporate clients have mobilized funds for significant projects. Capital and liquidity positions remain very strong.

“The third quarter of 2006 saw the formal establishment of our investment banking affiliate, HSBC Saudi Arabia Ltd., a key milestone in SABB’s evolution from a traditional bank to a diversified financial services group,” he added.