RIYADH: Banque Saudi Fransi (BSF) has announced its financial results for the full year 2009, recording a net income of SR2.47 billion compared with SR2.81 billion earned over the same period in 2008. Although the bank’s fundamentals remain sound, the decrease was primarily due to the combination of market conditions, lack of volatility and slow activity on the stock market, the bank said in a statement. Moreover, the board of director, taking into account these factors moved on with a prudent provisioning policy which explains why the net income during the last quarter of 2009 was SR324 million against SR571 million for the corresponding quarter of the previous year.
Earnings per share were at SR3.42 for the full year 2009 against SR3.88 for 2008.
The continued focus on core banking activities resulted in an increase of net special commission income to SR3.05 billion during 2009 compared to SR2.82 billion in 2008. This represents an increase of 8.12 percent over the same period of last year. During the last quarter of 2009, net special commission income fell by 6.11 percent to SR768 million compared to SR818 million for the same period in 2008.
BSF recorded total operating income of SR4.30 billion in the 2009 financial year against SR4.39 billion in 2008, representing a small reduction of 2.2 percent only.
During the 4th quarter of 2009 the total operating income was SR1.06 billion, down 7.16 percent from SR1.15 billion in the corresponding 2008 quarter.
The total operating expenses including provisions of the bank rose to SR1.80 billion in 2009 from SR1.60 billion in 2008.
At the end of December 2009, BSF reported a balance sheet with total assets at SR121 billion, compared to SR126 billion in last year. Customer deposits as at Dec. 31, 2009, stood at SR91 billion compared to SR93 billion as at Dec. 31, 2008. Loan and advances portfolio at end of Dec. 31, 2009 stood at SR78 billion against SR81 billion for the same period last year.
Commenting on the results, BSF’s Chairman Ibrahim Al-Touq, said: “Market conditions throughout 2009 have been extremely challenging, notably because of the level of prevailing interest rates which affect directly a universal bank as BSF. However, we are pleased to say that our core businesses have been preserved thanks to proactive management of balance sheet. I am also happy to report that the board of directors has taken wise decisions in terms of cautious provisioning. By raising our level of provisions, we accepted to sacrifice elements of immediate profitability to the benefit of an enhanced creditworthiness and strong future perspective in the interest of clients, investors and shareholders.”