RIYADH, 11 April 2007 — The Saudi British Bank (SABB) recorded a net profit of SR616 million for the three months ended March 31,2007, a decline of 37.5 percent compared to SR986 million for the same period of 2006.

Operating income amounted to SR1.028 billion for the three months, down SR393 million, or 27.7 percent, compared with SR1.421 billion for the same period in 2006. The cost base was SR62 million, or 16.0 percent, lower than the first quarter of 2006.

Customer deposits increased to SR59.8 billion in the first quarter of this year, up SR5.3 billion, or 9.7 percent, compared with SR54.5 billion in the same period of last year.

Loans and advances to customers also increased to SR42.7 billion, up SR3.2 billion, or 8.1 percent, from SR39.5 billion in the period under review.

The bank’s investment portfolio totaled SR17.6 billion compared with SR18.3 billion in the same period a year ago.

The bank’s total assets boosted to SR79.5 billion, up SR5.8 billion, or 7.9 percent in the compared periods.

John Coverdale, managing director of SABB, said: “During the first quarter of 2007, SABB has successfully concentrated on strengthening its core banking businesses and customer service infrastructure. Although we have not been able to match the high levels of profits seen in the first three months of 2006, the bank achieved an increase of SR31 million in profits compared to the fourth quarter of 2006. This growth demonstrates the underlying momentum that SABB has maintained and will build upon during the rest of 2007.” “Operating income for the quarter, compared with the same period in 2006, was down 27.7 percent as a result of significantly lower fees from brokerage and mutual fund business, although this was offset by improved balance sheet driven income, including higher levels of loans and deposits. We have continued to grow our card and consumer loan book, and loan provisions have increased commensurately.”

However, overall credit quality remains sound. The very liquid market conditions have kept deposit levels high and SABB’s challenge for 2007 will be to ensure that these funds are channeled towards further quality asset growth.

“The bank’s capital and liquidity positions remain strong,” he pointed out.

“Following the grant of an insurance operating license in 2006, we are pleased that the SABB Takaful initial public offering has been so well received. Once fully operational, the company will offer a comprehensive range of Shariah-compliant Takaful products for personal and corporate customers and will represent a key step in SABB’s evolution into a financial services group.

“We thank our customers for their continued support, and our staff for their commitment and contribution to the bank’s success,” Coverdale added.