RIYADH, 13 July 2005 — The Saudi British Bank (SABB) recorded a net profit of SR1.2 billion ($320 million) for the first six months of this year, up 44 percent from SR834 million ($222 million) during the same period last year, according to Managing Director Geoff Calvert.
Earnings per share increased to SR24.00 ($6.40), up 44.0 percent from SR16.67 ($4.45) for the same period last year.
Customer deposits increased to SR44.5 billion ($11.9 billion) as of June 30, 2005 from SR39.3 billion ($10.5 billion), up 13.2 percent over the same period last year.
Loans and advances to customers increased to SR35.4 billion ($9.4 billion), up 26.6 percent over the same period last year.
The bank’s investment portfolio totaled SR17.0 billion ($4.5 billion, up from SR15.4 billion ($4.1 billion) for the same period last year.
Assets totaled SR60.5 billion ($16.1 billion), up SR10.5 billion ($2.8 billion) or 21.0 percent over the same period last year.
Calvert said, “First-half results have been very strong. Operating revenues continue well above 2004 levels. While non-funds income continues to benefit from a buoyant local equity market, growth has been strong across all areas. The bank’s cost-income ratio has continued to improve due to successful management.”
He added that loan and deposit growth has been strong, in part reflecting good macroeconomic conditions in the Saudi economy. Credit quality remains sound with a continued low level of provisions for credit losses. Capital and liquidity positions remain strong.
“Following the success of the first eurobond issued by a Saudi company in the first quarter of 2005, SABB completed another first with the closing of a funding deal with the International Finance Corporation to support SABB’s Shariah-compliant “Al Amanah Islamic Personal Home Loan Financing product,” Calvert said.
He added that SABB has been chosen as “Best Equities House in the Kingdom of Saudi Arabia for 2005” by Euromoney magazine. The award recognizes the bank’s leading position in the banking sector.
“All areas of the bank are performing well. We continue to look for new opportunities and develop new products and services for our customers in the Kingdom,” he said.
The directors have approved the payment of a net interim dividend of SR10.00 per share (gross dividend of SR10.52 per share). This represents a total gross interim dividend payment of SR526 million, an increase of 11.8 percent compared to the same period last year.
“We thank our customers for their continued support, and our staff for their commitment and contribution to the bank’s success,” Calvert said.
