RIYADH: Banque Saudi Fransi (BSF) has announced a net profit of SR2.81 billion, thereby delivering an increased return of 3.5 percent over last year. The earnings per share stand at SR4.99 as compared to SR4.82 last year. This performance has to be viewed in perspective with the worldwide turmoil the financial sector went through during 2008.
The net special commission income rose to SR2.821 billion from SR2.289 billion in 2007, an increase of 23.2 percent. This achievement was possible thanks to a significant growth in the banks’ loans and advances portfolio and the maintenance of a funding cost at a low level. While the marked total operating income of SR4.392 billion is 19 percent higher compared to 2007, the total operating expenses growth other than provisions, have increased by 15.6 percent (SR148 million).
This has left some room for the bank to do a prudent provisioning of SR94 million for credit losses (SR52 million higher as compared to 2007) and SR410 million for impairment charges on investments, owing to the international economic slump.
The bank’s balance sheet registered a growth where loans portfolio stands at SR80.9 billion and total assets at SR125.9 billion at the end of 2008, representing a growth of 35.1 percent and 26.1 percent, respectively. Also, the customer deposits of the bank stands at SR92.8 billion compared to SR74 billion last year, an increase of 25 percent.
Commenting on the excellent results and strong financial standings of the bank, BSF’s Chairman Ibrahim Al-Touq said the bank sustained a steady growth in profits despite arduous times in the financial sector internationally and adverse conditions vis-a-vis asset valuations and falling interest rates. “This rewards the cautious approach on risk taking and bears testimony to the fact that BSF as an entity and as a team is highly committed toward ensuring that the shareholders’ wealth is enhanced and financial strength of the bank is truly displayed and utilized,” he added.