RIYADH, 23 October 2007 — SABB recorded a net profit of SR1.902 billion ($507 million) for the nine months ended Sept. 30, 2007, down SR553 million ($147 million) or 22.5 percent compared with SR2,455 million ($655 million) for the same period in 2006.
The bank said however that net profit reached SR651 million ($174 million) for the three months ended Sept. 30, up SR5 million or 0.8 percent compared with SR646 million ($172 million) for the same period in 2006.
John Coverdale, managing director of SABB, said in a statement yesterday that “we have successfully managed cost growth this year following the significant investment in rebranding, recruitment and systems during 2006. Bad debt levels are in line with asset growth and increased card and consumer finance market penetration. General credit quality is sound especially within the corporate sector which is benefiting from the strong underlying Saudi economy and major construction and infrastructure development projects. The bank’s capital and liquidity positions remain strong.”
Earnings per share for the nine months dropped 22.5 percent to SR5.07 ($1.35) from SR6.55 ($1.75) for the same period in 2006.
Operating income fell SR450 million ($120 million) or 12.5 percent to SR3.155 billion ($841 million) for the nine months as against SR3.605 billion ($961 million) for the same period in 2006.
Customer deposits posted 17.8 percent or SR10.6 billion ($2.8 billion) to SR70.3 billion ($18.7 billion) compared with SR59.7 billion ($15.9 billion) in the period under review.
Loans and advances to customers marked a 31.6 percent increase or SR13.0 billion ($3.5 billion) SR54.2 billion ($14.5 billion) from SR41.2 billion ($11.0 billion) in the said period.
The bank’s investment portfolio totaled SR17.0 billion ($4.5 billion) as of Sept. 30 this year compared with SR16.6 billion ($4.4 billion) in the year ago period.
SABB’s total assets increased by SR12.3 billion ($3.3 billion) or 15.9 percent to SR89.6 billion ($23.9 billion) in the first nine months of this year compared with the previous period in 2006.
“Our insurance company, SABB Takaful, which began trading on July 1, 2007, has had a very good first three months of business delivering a comprehensive range of insurance products to both our retail and corporate clients. Together with our joint venture investment bank, HSBC Saudi Arabia Limited, SABB is well positioned to deliver a full range of financial services within the Kingdom. As an affiliate of HSBC, SABB is joining up with the group’s product and distribution capabilities worldwide to provide global solutions to our clients’ needs,” he said.
“SABB’s financial performance has shown consistent growth during the first three quarters of 2007,” Coverdale said.
