RIYADH, 9 April 2004 — National Commercial Bank, Saudi Arabia’s largest, said on Wednesday its net income rose 23.8 percent to SR3.01 billion ($803 million) in 2003. The mainly state-owned bank said in a statement that earnings per share rose to SR25.1 from SR20.3 the year before. It also said NCB maintained the highest return on average shareholders’ equity in the banking sector, with a return of 31.3 percent.
Saudi banks posted strong performances last year as high oil prices and production levels pumped cash into the economy of the world’s biggest oil exporter. NCB’s 2003 gains were slightly below the 26 percent rise in 2002 profits.
The bank said it recovered SR620 million of doubtful loans in 2003, bringing a major drop in the expense for possible credit losses. It also registered 11.3 percent growth in net special income as a result of expanded lending. Total assets grew 10.1 percent to SR11.74 billion, driven mainly by an increase in loans and advances which rose 17.4 percent to SR4.97 billion.
