RIYADH, 15 January 2007 — Arab National Bank (ANB) has announced a net profit of $668 million for 2006 compared to $487 million in 2005, an increase of 37 percent. This increase came as a result of a 23 percent rise in operating income to reach $1.028 billion due to an increase of 15 percent in net interest income to $673 million and an increase of 42 percent in fees from banking services to reach $263 million, while operating expenses increased by only 3 percent to $360 compared to $350 for 2005.
Loans and advances rose by 28 percent to reach $13.3 billion, while customer deposits grew by 27 percent to $16.5 billion. Total assets rose to $20.8 billion and shareholders’ equity reached $2.1 billion. The annualized return on equity reached 35 percent.
Dr. Robert Eid, managing director and CEO, said: “The bank achieved a steady growth balancing the retail and the corporate sectors, against the backdrop of a conservative risk management culture.”
In 2006, ANB was awarded an ‘A’ rating by Standard & Poor’s. This rating reflects the bank’s strong financial position, robust asset quality, satisfactory liquidity as well as its continued business growth, effective risk management and low levels of non-performing loans.