RIYADH: SABB has recorded a net profit of SR1.552 billion for the six months ended June 30, 2008 — up SR301 million, or 24 percent, compared with SR1.251 billion for the same period in 2007.

Its net profit for the three months ended June 30, 2008, was SR795 million — up SR160 million, or 25.2 percent, compared with SR635 million for the same period in 2007, and up SR38 million, or 5 percent compared with the first three-month period of 2008.

Earnings per share of SR2.59 for the six months ended June 30, 2008 — up 24.0 percent from SR2.09 for the same period in 2007. Earnings per share for the six months period ended June 30, 2007 have been adjusted to reflect a 3:5 bonus issue approved at an extraordinary general meeting held on April 27, 2008.

Operating income of SR2.522 billion for the six months ended June 30, 2008 — up SR467 million, or 22.7 percent, compared with SR2,055 million for the same period in 2007.

Customer deposits of SR89.1 billion at June 30, 2008 — up SR23.9 billion, or 36.7 percent, compared with SR65.2 billion at June 30, 2007.

Loans and advances to customers of SR77.5 billion at 30 June 2008 — up SR28.9 billion, or 59.5 percent, from SR48.6 billion at 30 June 2007.

The bank’s investment portfolio totaled SR30.1 billion at June 30, 2008, compared with SR16.4 billion at June 30, 2007.

Total assets of SR126.2 billion at June 30 — up SR41.1 billion, or 48.3 percent, over June 30, 2007.

“I am pleased to announce that SABB’s strategy of building long-term customer relationships supported by a broad range of financial products and services has delivered profit growth in each of the last six quarters,” John Coverdale, managing director of SABB, said. “The strength of our balance sheet has allowed us to respond to the increasing demand for funding within the Kingdom as reflected by the 59.5 percent growth in our loans and advances book over the last twelve months. This asset growth has more than offset the impact of falling rates. In addition, strong performance from our cards, trade, mutual fund, treasury and IPO related businesses, together with a modest increase in brokerage income, has delivered well balanced income streams from our funds and non-funds activities,” he said.

“Our costs have increased by SR151 million or 23.4 percent over the first half of 2007 mainly due to an increase in headcount and performance related compensation. Provisions for bad debts in the first half of 2008 have reduced by SR4 million or 1.8 percent from the same period in 2007 with increased recoveries offsetting higher volume driven general impairment charges,” Coverdale added.

“Despite strong loan growth, SABB’s capital and liquidity ratios remain strong. SABB is acutely aware of the importance of well-managed capital and liquidity positions. Senior management executives monitor the situation on a daily basis and have robust capital and liquidity maintenance policies in place to ensure that balance sheet strength is not compromised during periods of accelerated growth,” he said.

“We are pleased to announce the formation of SABB Insurance Services Ltd., which will complement our SABB Takaful insurance business by providing comprehensive insurance solutions to our corporate, global banking and markets and private banking customers. This new company represents a further step toward our goal of becoming a leading provider of financial services in the Kingdom.

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