RIYADH — Saudi Hollandi Bank (SHB) reported a net profit of SR111.5 million, a 27.1 percent increase over the first quarter of 2000.
The total balance sheet as of March 31, 2001 grew by SR2.2 billion (11.1 percent) to SR22.1 billion in comparison with March 31, 2000.
Customer deposits increased by 16 percent reaching SR15.7 billion compared to SR13.5 billion for the first quarter of 2000.
Customer loans increased by 5 percent to reach SR10 billion compared to SR9.5 billion, while the total shareholders equity for the first quarter of 2001 improved by 13.3 percent compared to the same period of last year.
Henk Mulder, managing director of SHB, expressed his gratification with this result, which puts the bank on track for an increased net profit for the remainder of the year.
Customer deposits, demand on loans, excellent fee commission income were the primary factors behind the improved performance during the first quarter of 2001. Another contributing element to this positive achievement was the bank’s well-positioned treasury operation, notwithstanding the latest decline in the international interest rate.
“Despite the slowdown in the global economy and the subsequent sluggish growth in the capital market, we foresee a good year for SHB with real growth in all major income sectors of the bank. Outstanding service and quality products will continue to be the driving force for the bank. New products and delivery initiatives are under way,” Mulder added.
“The relative stability in current oil prices has contributed to creating a very optimistic outlook toward the local economy. We anticipated a further increase in loan demand on account of new infrastructure projects and the many recent measures taken to improve upon the direct and indirect foreign investment flows into the Kingdom. All these, in conjunction with careful expense control, should enable SHB to continue its upward trend in profits, return on average equity and return on average assets,” Mulder added.
This quarterly result comes in full compliance with the International Accounting Standard (IAS 39).
