RIYADH, 28 January 2007 — Banque Saudi Fransi (BSF) has recorded net income of SR3.01 billion for the year ended Dec. 31, 2006. This represents an increase of 35.7 percent over the SR2.22 billion earned in 2005. Earnings per share increased to SR8.91 compared to SR6.56 for the previous year.
The bank achieved total operating income of SR832 million for the fourth quarter, 2006 compared to SR856 million for the same period of 2005. Total expenses increased by 1 percent. Net Income for the period was SR582 million compared to SR608 million for the same period of year 2005.
The notable boost to net income for the year is an across the board growth in income from all business lines. Solid performance in core banking business activity has yielded an unprecedented 18.2 percent gain in net special commission income to SR2.02 billion from SR1.71 billion a year ago.
A combination of prudent management of operating expenses has led to an increase by just 6.1 percent to SR932 million as against operating income that saw a 27.3 percent surge to SR3.94 billion. Sizeable gains were made in fee from banking services too that grew by 41.6 percent to SR1.57 billion.
The balance sheet’s healthy growth was evidenced from the growth in total assets that augmented by SR12.08 billion to SR79.58 billion, a 17.9 percent boost. On the asset’s side loans and advances grew by 18.9 percent to SR51.13 billion. On the liabilities side customer deposits stood at SR62 billion at Dec. 31, 2006 which is a 21.3 percent surge from the previous year.
The board of directors recommended the payment of dividends to Saudi shareholders at SR2 per share (2005: SR1.73 per share) out of which the interim dividend paid was SR1.5 per share (2005: SR1.07 per share).
The net dividend per share is re-calculated retrospectively to give effect for the increase number of shares as a result of bonus issue and share split during 2006. The share dividend of SR0.50 per existing share for the second half of the year will be paid after securing the approval of the authorities and the shareholders.
The managing director of BSF, Jean Marion has termed the financial performance of the bank a clear reflection of the strong fundamentals that the bank has evolved. Announcing the outstanding results, he said “We wanted 2006 to be a defining year for the bank, in an otherwise globally fluid economic environment. We have achieved this by concentrating on the rudiments of customer-focused banking and product deliveries through strong management of costs, without compromising on quality”.
Commenting on the record results, BSF chairman, Ibrahim Al-Touq said: “BSF has been remarkably accurate in its efforts to maximize the shareholder’s value this year again, by adopting the right mix of management, innovation and strategy”. He was also, all praise for Almighty God and for the management and stated that it was the banks staff whose contributions together were the overriding catalyst for success. In 2007 the bank would be celebrating its 30 years of existence and the chairman reiterated the collective resolve of the entire bank’s management and team that the bank will continue to value its partnership with its stakeholders and further improve its financial performance.