SIB Reports 2003 Quarter Results With Profits Increasing To More Than SR 100 Million

The Saudi Investment Bank (SIB) reported net income of SR 100.8 million compared with SR 95.7 million for the same period last year, an increase of 5.2%

The Bank's total income increased to SR 158.6 million in the first quarter compared to SR 148.5 million during the same period last year. Revenue growth was achieved across most categories in spite of lower commission rates worldwide and the impact of recent events in the region.

On the expense side, the Bank continued its conservative policy of setting aside sufficient provisions to expand its lending activities and increase its participation in the development of the national economy. The Bank also continued to control its operating expenses by maintaining its Efficiency Ratio at 28.3%. This level is considered to be the best among all Saudi banks. These positive factors are reflected in our key performance rations, including a return on assets of 2.03% and a return on shareholder's equity 18.66%.

At March 31, 2003 total assets were SR 20,381 million, an increase of 18.3% compared to the SR 17,232 million at the end of the first quarter 2002. Included in these figures were a 16% increase in the loan portfolio to SR 9,405 million, compared to SR 8,080 million in the prior period.

On the liability side, customer deposits increased by SR 3,355 million, from SR 11,870 million to SR 15,223 million. This reflects growth of more than 28% compared to 2002 results.

Chairman of the Bank, Dr. Abdulaziz O'Hali, expressed his pleasure with the first quarter results. Mr. Suad AlSaleh, General Manager, commented that the Bank has succeeded in expanding and diversifying its activities and has entered new fields which will enable SIB to continue its profit growth under challenging international conditions.