The Saudi Investment Bank Reports Record Profits

The Saudi Investment Bank announced that during the First Half of 2001, it has achieved net profits up to SR 165 Million compared with SR 141 Million for the same period in the last year, with an increase of 17%.

The Statement of Income demonstrated the continued growth in profits achieved in all income categories that the operating income in the same period increased to SR 252.1 Million compared with SR 220.6 Million in the last year. The Bank was able to achieve these record profits, which are considered the highest in the Bank's history since its inception in 1976G, by adopting clearly defined policies, availing the opportunities available in the market, providing diversified products to its customers, upgrading the technology in use and following a conservative policy on the expenses side which enabled it to achieve the best efficiency ratio among the Saudi Banks which reached 28.6%; or in other BodyEnglishs, it achieved SR 3.50 as profits for each one Riyal out of the expenses. The Return on the assets reached 2.3% compared with 2.1% in the last year and the Return on shareholders equity rose to 16.5% from 16% during last year.

As regards the Balance Sheet highlights, the Bank continued to increase its business volume. Its total assets increased by SR 1,466 Million, reaching to SR 14,545 Million compared with SR 13,079 Million in the last year. The growth rate for the assets reach 11.2%. The Bank's loan portfolio increased to SR 7,619 Million, with a growth ratio of 5.6%, in comparison with SR 7,216 Million in the last year. The investment portfolio increased to SR 4,753 Million compared with SR 4,215 Million with a growth ratio of 12.8%.

On the liabilities side, customers' deposits in the Bank increased by SR 933 Million to reach SR 11,038 Million. An increase of 9.2% from the same period a year earlier. Total shareholders' equity increased to SR 2,122 Million at the end of the first half of 2001 compared with SR 1,840 Million during the same period a year earlier.

Dr. Abdul Aziz Abdullah Al O'Hali, Chairman of The Saudi Investment Bank expressed his complete satisfaction with the results achieved. He reiterated his confidence in the Bank's potential to pursue more progress and boast ever improving results so that the Bank can play a major role in the local market and to maintain its leadership in achieving the highest efficiency ratios. Dr. A. O'Hali highlighted the significance of the results adding that these have been achieved by the Saudi cadres as the top executive management has been fully saudized through which the Bank shall strive to achieve this important and strategic goal which shall yield positive results in future.