The Saudi Investment Bank reports First Half Results, with profits exceeding SR 293.9 Million

The Saudi Investment Bank announced that during the First Half of 2004. It has achieved net profits exceeding SR 293.9 Million compared with SR 221.8 Million for the same period a year earlier, with an increase of more than 32.5%. The profit for each share has also increased from SR 8.06 to SR 10.69.

The Income Statement highlighted growth in all aspects. The income fees for banking services has increased at a rate of 121.6% from their levels a year earlier to reach SR 149.6 Million. The Bank has also taken advantage of the growth in the local and international Money Markets in order to make substantial profits reaching SR 61 Million from the sale of investments. The overall operational income for the period has reached SR 517.8 Million. This has been achieved in spite of the increase in general expenses due to the Bank’s expansion in services and new staff recruitment in addition to the expenses due to employee benefit schemes, especially designed to retain qualified and experienced Saudis and to attract the best in the market.

Pursuing its conservative policy, the Bank has continued to apply a policy of setting aside additional and sufficient provisions in order to expand its lending activities. In this respect, the Bank has allocated SR 80 Million for its possible bad loans provision. This is an increase of more than SR 43 Million from the SR 37 Million allocated a year earlier. Consequently, the Bank’s provision for bad credit has reached SR 546 Million, even though the total outstanding of all non-operative loans is less than SR 214 Million. Additionally, the bank has maintained its leadership among Saudi Banks with an efficiency rate of 27.8%. All of this has reflected favourably on the shareholders’ equity, which rose to 21.04% from 19.58% and the return on the assets that reached 2.69% from 2.26%.

The Balance Sheet highlighted growth in loans that reached SR 10,835 Million compared to SR 10,244 Million a year earlier. This is an increase of SR 591 Million. The investment portfolio has also rose to SR 7,017 Million.

On the Liabilities side, customers’ deposits in the Bank reached SR 14,442 Million while liabilities to other banks reached SR 4,244 Million.

Dr. Abdul Aziz Al-Abdullah Al-Ohali and other members of the Board of Directors expressed their happiness with these positive results and the substantial business growth.

On the other hand, Mr. Saud Saleh Al Saleh, the General Manager of the Bank, said that the Bank’s success was a result of the Bank taking advantage of emerging business opportunities and the sincere efforts of its staff. He added that the Bank has succeeded to introduce new banking products and has established 5 new mutual funds. The Bank has also launched its eBanking Services and intends to expand its functionality in the coming few months. He added that the Bank would open new branches in Riyadh, Al Ahsa and Buraida in order to reach out for its customers. More branches covering other regions of the Kingdom are in the planning phase.