RIYADH: SABB recorded a net profit of SR760 million for the first quarter ended March 31, 2009. It represents a SR3 million, or 0.4 percent increase compared with the first quarter of 2008 and a SR103 million or 15.7 percent increase compared with the fourth quarter of 2008.
Net special commission income has grown by SR27 million or 3.1 percent compared to the first quarter of 2008 reflecting corporate asset growth and lower funding costs.
Despite a fall in income from the brokerage and mutual funds businesses, total non funds income grew by SR68 million or 20.2 percent compared to the first quarter of 2008 reflecting strong foreign exchange and trade-related business. Earnings per share of SR1.013 for the three months ended March 31, 2009 — up 0.4 percent from SR1.009 for the same period in 2008. Earnings per share for the three months ended March 31, 2008 have been adjusted to reflect a 3:5 bonus issue approved at an extraordinary general meeting held on April 27, 2008 and a 1:4 bonus issue approved at a meeting held on March 10, 2009.
Operating income of SR1.286 billion for the three months ended March 31, 2009 — up SR95 million, or 8.0 percent, compared with SR1.191 billion for the same period in 2008.
Customer deposits of SR96.6 billion at March 31, 2009 — up SR18.2 billion, or 23.2 percent, compared with SR78.4 billion at March 31, 2008.
Loans and advances to customers of SR79.3 billion at March 31, 2009 — up SR12.7 billion, or 19.1 percent, from SR66.6 billion at March 31, 2008.
The bank’s investment portfolio totaled SR25.9 billion at March 31, 2009, up 9.3 percent compared with SR23.7 billion at March 31, 2008.
Total assets of SR132.6 billion at March 31, 2009 — up SR26.2 billion, or 24.6 percent, compared with March 31, 2008.
Overheads increased by SR56 million or 15.6 percent, compared to the first quarter of 2008 mainly due to continued investment in branch network expansion and in technology infrastructure. Higher volume-driven card, personal loan and collective impairment charges have increased provisions for possible credit losses by SR41 million or 54.6 percent, compared to the first quarter of 2008 which benefited from higher levels of corporate recoveries.
“The first quarter 2009 performance reported by the bank is encouraging and demonstrates our continuing commitment to delivering sustainable results from our core banking businesses. The quality of our balance sheet remains strong based on long-term relationship lending, with surplus deposits invested predominantly in Saudi government instruments or with the Saudi Arabian Monetary Agency (SAMA). The SR12.7 billion or 19.1 percent increase in loans and advances compared to March 31, 2008 has been more than covered by the SR18.2 billion or 23.2 percent increase in customer deposits.
This has allowed SABB to maintain a strong liquidity position which, together with a capital ratio strengthened by our recent bonus issues, will ensure that funding remains available to our valued clients,” Richard Groves, managing director of SABB, said.
Groves added that the bank continues to invest for the future and to ensure that any cost increase is supported by business growth, enhanced customer service and efficiency improvements.
