JEDDAH: The National Commercial Bank (NCB) achieved net profits of SR2.03 billion in 2008, 66 percent below the results of 2007.
The bank attributed the drop in income mainly to provisions for its investment portfolio which were set aside to address the decline in the current value of these investments and are intended as a prudent measure to safeguard the strength of the bank’s assets.
The bank’s core activities recorded robust growth, with net special commission income rising by 19.8 percent and fees from banking services by 16.6 percent.
Loans and advances increased by 22.8 percent to SR107.91 billion, customer deposits by 20.3 percent to SR171.82 billion and total assets by 6.3 percent to SR221.80 billion. Shareholders’ equity amounted to SR26.116 billion at year-end.
“Despite turmoil in international financial markets, the bank focused in 2008 on expanding its core banking activities and leveraging its strong asset base,” NCB Chairman Abdullah Bahamdan said commenting on the bank’s results. Bahamdan further stated that he is optimistic regarding the economic conditions in Saudi Arabia and believes that the bank continues to enjoy ample growth opportunities in its core banking activities