RIYADH, 29 January 2004 — The Saudi Hollandi Bank (SHB) had a record net profit of SR600.9 million last year, up 8 percent from the previous year’s SR555.2 million.
The profits generated a return on average equity consistent with the previous year’s 25 percent and an increase in the return on average assets from 2.12 percent to 2.19 percent, according to Peter Baltussen, managing director.
Loans and advances at the end of 2003 amounted to SR14 billion, a 15 percent increase over the previous year’s SR12.1 billion. Included in loans and advances are those classified as non-performing which decreased from SR385.7 million at the end of 2002 to SR338 million last year, and as a percentage of total loans and advances went from 3.1percent to 2.4 percent.
“Provisions for possible credit losses increased from SR427.4 million at the end of 2002 to SR440.3 million at the end 2003 raising the cover of non-performing loans from 110 percent to 130 percent,” Baltussen said.
SHB’s investment portfolio, mainly composed of financial instruments denominated in Saudi riyals, increased by almost 14 percent from SR6.5 billion at the end of 2002 to SR7.4 billion at the end of 2003. The total of all assets at the end of 2003 was SR28 billion compared to SR26.9 billion at the end of 2002. Customer deposits increased from SR20.3 billion at the end of 2002 to SR21.6 billion at the end of 2003.
Due to SHB’s performance last year, the board of directors decided to recommend at the next shareholders’ general meeting on March 16 a payment of SR9.5 dividend per share for the second half of 2003. This will bring the total distributed dividend to SR17 net per share for the whole year.
The board has also decided to recommend an increase in capital from SR945 million to SR1,260 million. One bonus share will be issued to shareholders for every three currently held shares. Saudi Hollandi is 40 percent owned by ABN AMRO with the remainder held by Saudi nationals.
