RIYADH, 7 July 2006 — Three Saudi banks are planning to distribute more than SR2.6 billion ($700 million) among the shareholders for the first half of this year.
This was announced by the Capital Market Authority (CMA) yesterday, which named the Samba Financial Group, Riyad Bank and Banque Saudi Fransi (BSF) as the three banks.
In another development, Al-Rajhi Bank achieved a milestone in banking history by providing more than 1,000 job opportunities for new men and women postgraduates for the first half of this year. Young Saudis with no previous experience were recruited in a trailblazing move by the bank.
Eissa Al-Eissa, Samba Financial Group’s managing director, said the board of directors decided to distribute the first-half profits among the shareholders at the rate of SR1.70 for each share after getting the approval of CMA. This would take the total profit distributed among the shareholders for the last six months to $285.3 million. It was the highest profit disbursed in CMA’s history.
Rashid Al-Rashid, chairman of Riyad Bank, pointed out that the bank intends to pay out $266.6 million to its shareholders during the same period. The bank netted a profit of SR1.554 billion for the first half of this year, posting a 33.5 percent growth rate compared to the corresponding period of last year.
According to BSF’s Chairman Ibrahim Al-Touq, the bank decided to give shareholders half-yearly profit at the rate of SR1.50 for each share. This would amount to a cumulative figure of SR506.25 million.
Al-Rajhi Bank announced yesterday that its profit for the first half of this year rose to SR3.5 billion, up from SR2.2 billion for the corresponding period last year.
According to Abdullah Al-Sulaiman Al-Rajhi, the bank’s managing director, the sharp increase in the profit was the result of the bank’s various activities in terms of its products and services as well as new investment opportunities for their customers, especially in providing personal loans. He said the result also reflected the efforts of their employees and the customer’s trust placed in the bank.
Al-Rajhi pointed out that the total operating income rose to SR4.6 billion, while deposits soared to SR75.5 billion
He said the bank’s brand recognition drive covered many of its branches. The bank also launched many projects and services for its customers, such as special financing for car leases without the need for a sponsor. The scheme is open to both Saudis and non-Saudis.
He also pointed out that the bank decided to delay the distribution of profits for the first half in spite of posting impressive results. This was done with the consent of the shareholders as part of its comprehensive plan to expand its customer-service and investment activities.
