JEDDAH, 14 July 2004 — Saudi Hollandi Bank (SHB) reported a net profit of SR355.7 million for the half-year ended June 30, as a result of solid growth across all the main business lines of the bank. This result reflects a 21 percent increase over the net profit of SR293.5 million reported for the corresponding period of 2003.
Shareholders’ equity increased by 19 percent from SR2.4 billion as at June 30, 2003, to SR2.8 billion as at June 30, 2004, while earnings per share were SR14.12 compared to SR11.65 for the corresponding period last year.
Assets at June 30, 2004, amounted to SR31.3 billion representing a 16 percent increase over the corresponding SR27 billion as at June 30, 2003.
Loans and advances increased by 27 percent from SR12.4 billion at June 30, 2003, to SR15.7 billion at June 30, 2004, while customer deposits increased by 21 percent, from SR18.5 billion to SR22.4 billion. Net commission income increased by 4.6 percent to reach SR445.6 million from SR425.9 million for the same period last year.
Managing Director Peter Baltussen said the results were in accordance with expectations. “We’re pleased with the substantial growth of our operating profit which has increased by 29 percent over the period ended June 30, 2003.”
He acknowledged the favorable development of the strategic change program initiated in 2003 by the board of directors, and notably the success of the ‘Van Gogh’ preferred banking concept which included various innovative investment products that appeal to the bank’s high net worth customers.
“Following this success, we plan to expand this concept to widen its coverage to this specific client segment. Another milestone is our structured finance and syndications business, which has also performed well, marked by several major transactions concluded in the course of this period. The bank has firmly established its presence in this field to match the rapid progress in the Saudi financial market, specially in light of the recent emergence of the capital markets authority,” he added.
Based on the bank’s results, the board of directors has approved the distribution of a net interim dividend of SR6.5 per share after the payment of Zakah. This will result in a net interim dividend payment of SR163.8 million for the first half of 2004, representing an increase of 16 percent over the same period last year.
SHB, a joint stock company quoted on the Saudi stock market, has 40 branches and 136 ATMs covering the Kingdom with a 78 percent Saudi work force.
