RIYADH, 8 July 2007 — Arab National Bank’s net profit for the six months ending June 30, 2007 increased by 1 percent to $365 million compared to $361 million for the same period last year. Earning per share increased to SR3.01 from SR2.98 for the same period last year, according to a press release received yesterday.
This increase came as a result of a 5 percent rise in operating income for the first six months of 2007 to reach $560 million compared to $532 for the same period of 2006 due to an increase of 18 percent in net special commission income to $378 million and a drop of 30 percent in fees from banking services to $114 million. ANB’s operating expenses increased by 14 percent to $196 million compared to $171 million for the same period of 2006, the bank’s statement said.
The increase in net interest income is primarily attributable to balanced growth in the financial position, effective asset and liability management, growth of loans and diversified financing and customer deposits.
Loans and advances portfolio rose by 22 percent to $14.1 billion, while customer deposits grew by 18 percent to $17.1 billion. Total assets rose to $22 billion and shareholders’ equity reached $2.5 billion. The annualized return on equity was 32 percent.
Dr. Robert Eid, the bank’s managing director and chief executive officer, commented on these results saying, “The bank continues its outstanding performance while focusing on effectiveness of its operating procedures and systems, service quality, effective risk management and cost control”.
He added: “Our performance was driven by the successful execution of growth initiatives, improved sales culture and continued expansion activities, including the opening of new branches.”
