RIYADH, 19 January 2005 — Arab National Bank has announced that its net profit for 2004 was SR1,167 million ($ 311 million), an increase of 52 percent over the previous year.
Return on equity also increased from 20.4 percent in 2003 to 26.6 percent in 2004.
Net interest income increased by 24 percent and fee income rose by 61 percent while expenses increased by 11 percent.
General provisions of SR321 million were taken, similar to the level of the previous year, thereby increasing the coverage ratio of non-performing loans to 182 percent.
Net operating income before provisions reached SR1,488 million, an increase of 37 percent over the previous year. Loans were SR28.5 billion and customer deposits increased to SR46.3 billion.
Nemeh Sabbagh, managing director and chief executive officer, said that the record results came thanks to buoyant economic conditions in the local markets as well as a focused strategy which allowed the bank to take advantage of this favorable environment.
The board of directors is recommending that the general assembly distribute cash dividends of SR4 per share in addition to the SR5 semi-annual cash dividend already paid as well as giving shareholders one bonus share for every four shares held.
During the past two years ANB has received several international performance awards and for the past two years has won the award for Best Overall Fund Manager among Saudi banks.
The bank has achieved an impressive growth record over the past five years.
Net profit has increased almost three times and return on equity has more than doubled from 12.7 percent to 26.6 percent.
