RIYADH, 12 April 2006 — SABB recorded a net profit of SR986 million ($263 million) for the first quarter of 2006, up 116.3 percent from SR456 million ($122 million) earned during the same period last year, according to John Coverdale, SABB managing director.
Coverdale added that earnings per share increased to SR2.63 ($0.70), up 116.3 percent from SR1.22 (US$0.32) for the same period last year.
Earnings per share have been diluted to reflect a 1:2 bonus issue approved at the annual general meeting last March 21 and a 5:1 share split effective April 8, 2006.
Customer deposits increased to SR54.5 billion (US$14.5 billion), up 28.8 percent from SR42.3 billion ($11.3 billion) for the same period last year.
Loans and advances to customers increased to SR39.5 billion ($10.5 billion), up 22.3 percent from SR32.3 billion ($8.6 billion) during the same period last year.
Total assets totaled SR73.7 billion ($19.7 billion), up SR16.0 billion ($4.3 billion) or 27.7 percent over the same period last year.
The bank’s investment portfolio totaled SR18.3 billion ($4.9 billion), up from SR16.4 billion ($4.4 billion) over the same period last year.
“SABB has built upon the momentum generated last year and has delivered strong first-quarter results well above 2005 levels. Despite recent volatility in the local equity market, our financial performance remains strong and retains good growth momentum, not least due to our close focus on the core fundamentals of our business,” Coverdale said.
He said that operating revenues have benefited from the exceptional growth seen in the local equity market in the first two months of the year, and robust contributions from our core banking activities. The bank’s cost-income ratio has continued to reduce despite incurring higher overheads to support business growth, and the loan portfolio remains sound as reflected in the low provision for credit losses.
“In early March, SABB’s credit rating was upgraded from A- to A by Standard & Poor’s and currently equals the highest ranking for any Saudi bank,” he said.
He said that on Feb. 11, The Saudi British Bank re-branded as SABB and adopted the HSBC Hexagon logo demonstrating the close relationship that exists between SABB and its global partner.
“We thank our customers for their continued support, and our staff for their commitment and contribution to the bank’s success,” Coverdale added.
