RIYADH, 24 January 2007 — SABB recorded a net profit of SR3.04 billion ($811 million) for the year ended Dec. 31, 2006. This represents an increase of 21.4 percent over the SR2.504 billion ($668 million) earned during the same period in 2005, the bank announced yesterday.
Declaring the result of its balance sheet last year, it said earnings per share of SR8.11 ($2.16) for the year were up 21.4 percent from SR6.68 ($1.78) over the same period in 2005. Earnings per share for the year ended Dec. 31, 2005 have been adjusted to reflect a 1:2 bonus issue approved at the annual general meeting held on March 21, 2006 and a 5:1 share split effective April 8, 2006, the bank said.
The operating income stood at SR4.617 billion last year-up SR797 million, or 20.9 percent, over the same period in 2005, while the cost base increased by 16.2 percent, reflecting SABB’s continuing investment in customer service, technology and in its staff. The total operating expenses went up by 23.7 per cent, the bank said.
The net profit for the three months ended Dec. 31, 2006 was SR585 million-compared to SR630 million for the same period in 2005.
Customer deposits surged by SR10.8 billion (22.3 percent up) to reach SR59.3 billion ($15.8 billion) during the reporting period as against SR48.5 billion in the previous year.
Loans and advances to customers shot up by SR1.7 billion to reach SR 42.5 billion from SR40.8 billion at Dec. 31, 2005. This represented an increase of 4.2 percent during the reporting period.
The bank’s investment portfolio totaled SR21.7 billion, an increase from SR16.4 billion for the corresponding in 2005.The total assets reached SR77.2 billion - up SR11.3 billion, or 17.1 percent, over Dec. 31, 2005.
Commenting on the bank’s performance, John Coverdale, managing director of SABB, said: “SABB has successfully managed to attain remarkable results in 2006, achieving a 21.4 percent growth in net profits for its shareholders”.
“The SABB board of directors has recommended a final net dividend of SR2.25 per share for the second half of 2006. This follows the payment earlier in 2006 of an interim dividend of SR1.5 net per share,” he added.
