RIYADH, 17 January — The Saudi British Bank (SABB) reported a net profit of SR830 million ($221 million) for the year ended Dec. 31, 2001. This represents an increase of 11.7 percent over SR743 million ($198 million) earned in 2000.
In a press release issued here yesterday, SABB said customer deposits jumped to SR31.5 billion as on Dec. 31 last year from SR28.4 billion, despite the continuing decline in interest rates.
Loans and advances to customers went up to SR16 billion from SR15.9 billion during the reporting period. There was a slow pick-up in demand for commercial credit.
The bank’s personal lending portfolio recorded steady growth.
SABB said it continued to deploy available liquidity in a diversified investment portfolio during 2001.
As a result, the total value of the bank’s investment portfolio shot up to SR21.8 billion at Dec. 31 last year, up from SR18.4 billion at the end of the previous year.
Commenting on the results, David Hodginkson, the managing director, said: “Our performance for 2001 was in line with our expectations. Despite lower interest rates, an increase in operating revenues was recorded.
The increase in net fees and commission was encouraging and ‘funds under management’ increased by 87 percent.”
He pointed out that “new products launched during the year were well received.
Our Al-Amanah range of products allows customers to opt for their preferred method of investment or financing. In particular, Al-Amanah Home Ownership scheme launched during the year caters to the growing customer demand for housing in Saudi Arabia.”
Hodginkson said the bank provides its customers with improved services through a broad range of delivery channels via traditional and electronic means, and market research indicates that this is proving popular with customers.
The statement said SABB’s board of directors has recommended a final net dividend of SR9 per share.
The total net dividend for 2001 will amount to SR14 per share as an interim net dividend of SR5 was paid in August 2001. The net dividend is payable on the bank’s enhanced capital which increased by 25 percent last year after the issue of bonus shares in the ratio 1:4. As a result, the total gross dividend will surge by 34 percent over 2000, it adds.
