RIYADH, 12 July — The Saudi British Bank (SABB) has announced a record net profit of SR422 million ($113 million) for the six months ended June 30, an increase of 17.1 percent over the SR361 million ($96 million) registered during the same period last year.
In a press release issued here, it said customer deposits shot up to SR30.5 billion during the reporting period — up from SR28.1 billion as on June 30,2000, reflecting increased liquidity in the national economy.
Loans and advances to customers surged to SR16.1 billion from SR15.1 billion on June 30 last year. The bank’s personal lending portfolio showed positive growth.
During the first six months of this year, it is pointed out, the bank continued to deploy available liquidity in a diversified investment portfolio to exploit the market opportunities. As a result, the total value of the bank’s investment portfolio snowballed to SR21.4 billion on June 30 this year from SR16 billion during the same period last year.
SABB also announced that the board of directors has approved the payment of an interim net dividend of SR5 per share (gross dividend SR5.27 per share). However, it noted that the amount of interim dividend distributed for the first half does not necessarily reflect the year-end dividend.
Commenting on the bank’s performance, David Hodgkinson, managing director, said: “We have seen several positive developments in the Saudi economy during the first half of the year. Strong oil prices coupled with gas development initiatives have contributed to increased economic confidence.
“Our results for the first six months are encouraging as our operating revenues are holding up despite the low interest rate environment. Investment portfolio disposals have resulted in gains. Our capital and liquidity ratios remain strong, and the bank has continued its prudent loan loss provisioning policy.”
The managing director continued: “The growth in customer deposits is also positive, especially as we seek to offer our customers enhanced products and superior service. We have launched Al Amanah Home Lease, a unique product which provides Saudi nationals the opportunity to acquire homes.”
Describing it as the first of its kind in the Kingdom, Hodgkinson said it is fully Shariah-compliant. SABBNET, their internet banking product, he pointed out, has also been well received.
“Our aim is to provide customer with a full range of products and services delivered efficiently through traditional distributional channels as well as by electronic means,” he observed.
