JEDDAH, 11 July 2004 — Arab National Bank announced that net profit for the first six months of 2004 rose by 53 percent to reach SR576 million ($153.6 million) compared to the same period last year. Operating revenues increased by 28 percent, thanks to a 21 percent increase in net interest income and a 78 percent increase in fee income, while expenses rose by 10 percent. General loan provisions amounted to SR131 million, similar to the level made last year. The investment portfolio was maintained at the same level as last year at SR21.5 billion.
Loans increased by 39 percent to SR24.5 billion and customer deposits went up by 20 percent to SR37.8 billion, thereby achieving a conservative loan to deposit ratio of 65 percent. Return on equity rose from 18.8 percent last year to 26.6 percent this year. The bank is paying its shareholders a semi-annual dividend of SR5 per share amounting to SR200 million in total.
Nemeh Sabbagh, the bank’s CEO, said the results continued the strong growth trend in core earnings in recent years. He added that the bank’s aim was to achieve solid growth in quality earnings on a consistent and sustainable basis. During this period the bank introduced a number of new services to its clients among them a new Shariah-compliant Tawarruq consumer financing program giving clients the ability to buy and sell local commodities.
