RIYADH, 17 July — A leading joint-venture bank of the Kingdom, AlBank AlSaudi AlFransi (BSF), has announced here today a net profit of SR404.4 million during the first half of the current year. This represents a substantial 24 percent increase in profits compared to the first half of year 2000.
The BSF’s major financial indicators witnessed double-digit growth during the first half of the current year with assets increasing by 19 percent to SR40.5 billion, deposits rising by 22 percent to SR32.4 billion and loans registering a healthy 20 percent increase to reach SR16.8 billion, said a press statement released by the bank here today.
Commenting on the bank’s performance, Ibrahim Al-Touq, BSF chairman, said that “we were able to register noticeable growth although interest rates showed constant downtrends while demand for loans remained somehow stagnant Kingdomwide. This shows that our staff responded proactively to the changing business environment and kept focus on clients’ needs”.
“Further, banking and electronic initiatives are due to be implemented in coming months, thus enhancing BSF’s position in an increasingly competitive field”, said Al-Touq, while adding that a clear business focus and an efficient utilization of existing resources as part of a long-term BSF strategy, have reflected in improved returns and strengthened overall footage, while keeping a tight control over expenditures.
Meanwhile, the Arab National Bank has announced that its total operating income for the first half of this year amounted to SR745 million, 21.5 percent up over SR613.5 million earned during the same period last year.
The net income before the provision of loan losses grew by 34 percent to SR391.8 million as against SR194.2 million last year, according to a press release issued by the bank. It said a total of SR157.7 million was added to the loan loss provision during the first half of this year compared with SR99 million for the same period of the previous year. As a result, the net profit rose 21 percent to reach SR234.1 million during the reporting period.
Commenting on the ANB result, Abdullatif Al-Jabr, chairman of the board, stated: “These results are attributed to the efficient and prudent management of the bank’s assets and liabilities. ANB is progressing according to a clear strategic plan focused on developing and diversifying income sources on one end, and reforming operating processes to improving productivity on the other end, in addition to building healthy reserves for the credit portfolio.”
