RIYADH, 15 October — Saudi Hollandi Bank (SHB) reported a net profit of SR429.7 million ($114.43 million) for the 9 months ended on Sept. 30, a 16 percent increase over the same period last year. Increased loan demand from corporate and retail customers, an increase of the deposit base, excellent performance of treasury, Islamic banking and the investment portfolio, all contributed to the improved performance.
SHB said customers loans increased to SR11.72 billion in the first nine months of the year compared to SR10.98 billion during the same period of last year, customers deposits rose to SR18.31 billion compared to SR17.28 billion, total balance sheet shot up to SR26.26 billion against SR24.32 billion, operating income jumped to SR815.3 million against SR743.4 million and earning per share (EPS) increased to SR22.7 compared to SR19.6.
Peter Baltussen, managing director of Saudi Hollandi Bank, indicated that such good results came in accordance with the management expectations despite the current challenging banking environment. He stated that the bank’s performance for this period has put the bank on a track to meet the projected increase for the remainder of this year. "This noticeable real growth reflected the bank’s solid position in the local financial market", Baltussen added.
Despite the general slowdown in the global economy and the current prevailing uncertainty, Baltussen expressed his moderate optimism toward the Saudi economy, and particularly the banking sector. This is reflected by increased liquidity and improvement in the direct and indirect foreign investment flows into the Saudi market.
SHB board of directors has recently adopted a new strategy built on the following three cornerstones:
— Clear customer-focused segment strategies.
— Dedicated product management.
— Effective sales and service delivery.
The implementation of the new strategy will require SHB to launch a strategic change program. A corporate and consumer sales productivity program will be the center piece of this program. This will be supported by selective product channels and process redesign initiatives. The objective for SHB management will be to prepare the program during the fall and to launch some of the new initiatives at the beginning of next year.
The continuous growth in the bank’s performance over the last decade has reflected the balanced strategies formulated and implemented by the board of directors.
The prosperous trend will continue as a result of the ongoing commitment from all levels of the bank to serve the customer base with the highest level of quality financial products and services. The dedication of the bank’s staff places SHB one of the foremost performers among Saudi banks and will prove to be instrumental in maintaining this upward momentum for the future success.
Saudi Hollandi Bank is a Saudi bank quoted on the Saudi Stock Exchange with 39 branches and 123 ATMs in the Kingdom. The bank has 1,158 employees with a Saudization ratio exceeding 70 percent. ABN Amro Bank owns 40 percent of the shares with the remainder being held by Saudi nationals.
