RIYADH: The Saudi British Bank (SABB) recorded a net profit of SR1.436 billion for the six months ended June 30, 2009 — down SR116 million, or 7.5 percent, as compared with SR1.552 billion for the same period in 2008, according to the results announced on Wednesday.
Net special commission income has grown by SR102 million, or 6.1 percent compared to the first half of 2008 reflecting higher average asset volumes. Total non-funds income grew by SR45 million, or 5.3 percent with higher foreign exchange and trade related income streams compensating for lower levels of share brokerage and mutual fund fees.
Cost growth has been contained to SR22 million, or 2.8 percent compared to the first half of 2008 delivering a cost income ratio of 30.6 percent for the first half of 2009 compared to 31.5 percent for the same period in 2008. SABB has suffered no impairments of financial assets in the first six months of 2009 compared to a SR61 million write down reported for the same period in 2008. Income from associates has fallen by SR56 million or 80.7 percent reflecting the challenging market conditions experienced in the first half of 2009 as compared with the same period in 2008. Earnings per share of SR1.91 for the six months ended June 30, 2009 — down 7.5 percent from SR2.07 for the same period in 2008.
Net profit of SR676 million for the three months ended June 30, 2009 — down SR119 million, or 15 percent, as compared with SR795 million for the same period in 2008 and down SR84 million, or 11.1 percent as compared with SR760 million for the first three months of 2009.
Operating income of SR2.669 billion for the six months ended June 30, 2009 — up SR147 million, or 5.8 percent, as compared with SR2.522 billion for the same period in 2008.
Customer deposits of SR91.5 billion at June 30, 2009 — up SR2.4 billion, or 2.7 percent, as compared with SR89.1 billion at June 30, 2008.
Loans and advances to customers of SR78.7 billion at June 30, 2009 — up SR1.2 billion, or 1.5 percent, from SR77.5 billion at June 30, 2008.
The bank’s investment portfolio totaled SR24.4 billion at June 30, 2009 as compared with SR30.1 billion at June 30, 2008.
Total assets of SR121.9 billion at June 30, 2009 — down SR4.2 billion, or 3.4 percent, from June 30, 2008.
Richard Groves, managing director of SABB, said: “I am pleased to announce that SABB’s strong operating income streams have allowed the bank to report robust profits for the first half of 2009 despite a SR246 million increase in provisions for possible credit losses as compared with the same period in 2008, as a result of conservative credit policy.”
He said “SABB’s board of directors has approved the payment of a gross interim dividend of SR660 million for the first half of 2009, equal to that paid in 2008.