RIYADH, 16 April 2006 — Saudi Hollandi Bank (SHB) reported a record net profit of SR313.8 million for the quarter ended March 31, 2006, a 55 percent increase over the same quarter last year.
Total assets rose to SR42.8 billion, an increase of 26 percent, mainly attributable to loans and advances to customers that grew by 47 percent from SR17.3 billion to SR25.4 billion.
Customer deposits grew by almost 27 percent reaching SR30.4 billion at March 31, 2006, compared with SR24.1 billion over the same period in 2005.
The bank’s investment portfolio, consisting mainly of financial instruments denominated in Saudi riyals and US dollars, increased by 19.6 percent from SR9.12 billion to SR10.9 billion.
Giel-Jan van der Tol, SHB’s managing director, said of the bank’s performance for this quarter, “The significant growth in the adjusted net earnings per share from SR0.92 to SR1.42, return on equity from 27.3 percent to 33.8 percent and return on assets from 2.4 percent to 3.0 percent demonstrate the bank’s continued commitment to providing competitive returns to its shareholders.
“The bank’s results for the first quarter are solid in absolute terms. SHB is well positioned to significantly enhance its relative stand in the Saudi banking sector in the years to come in terms of profit and shareholder value growth,” he said.
The managing director added that SHB continued to be a leader in the corporate banking segment.
During the first quarter, its structured finance team concluded several major transactions in various vital sectors.
“The corporate finance team also continues to play an increasingly important role in growing the bank’s revenue base as SHB has won several mandates as financial adviser and arranger in relation to forthcoming initial public offerings (IPOs) that will reinforce the bank’s resolve to be a key player in the capital markets in Saudi Arabia.”
The investment banking team, which included Saudi and international experts, continued to provide top class consultation and advisory services.
“With the quality of people on board, state-of-the-art technology and improved processes, SHB will continue to provide our valued clients with high standards of service and more competitive banking products.”
Founded in 1926, SHB is one of the leading banks in Saudi Arabia operating 40 branches and 158 ATMs distributed over the Kingdom. SHB is listed on the Saudi stock exchange and has 1,341 employees of which 83 percent are Saudi nationals. The Dutch bank, ABN Amro Bank N. V., owns 40 percent of its stock with the remainder owned by Saudi investors.
