SAR2,607million SABB profits for 2007

However, net profit for the three months ended 31 December 2007, amounted to SAR705m up SAR120m or 20.5%, compared with SAR585m for the same period in 2006. Earnings per share of SAR6.95 for the year ended 31 December 2007 - down 14.2% from SAR8.11 in 2006.

Operating income of SAR4,374m for the year ended 31 December 2007 - down SAR243m or 5.3%, compared with SAR4,617m in 2006.

Customer deposits of SAR71.8bn at 31 December 2007 - up SAR12.5bn, or 21.1%, compared with SAR59.3bn at 31 December 2006.

Loans and advances to customers of SAR62.0bn at 31 December 2007 - up SAR19.5bn, or 45.9%, from SAR42.5bn at 31 December 2006.

The bank's investment portfolio totalled SAR14.9bn at 31 December 2007 compared with SAR21.7bn at 31 December 2006.

Total assets of SAR98.2bn at 31 December 2007 - up SAR21.0bn or 27.2%, over 31 December 2006.

John Coverdale, Managing Director of SABB, said:

"SABB has had a strong final three months of 2007 and has now delivered profit growth in the last four successive quarters. This robust performance reflects the strength of our core business model, the exceptional quality of our balance sheet and the close relationships that we maintain with our clients. Our strategy ensures that SABB is not excessively exposed to fluctuating economic cycles and maintains the flexibility to respond to evolving customer needs while sustaining superior returns to our shareholders."

"The SAR19.5bn increase in loans and advances compared to 31 December 2006 is particularly encouraging and reflects the continuing strength of the corporate market together with good retail product growth. This loan growth has been supported by a SAR12.5bn increase in customer deposits and the utilization of SAR6.8bn of funds from maturing investments generating an additional SAR475m of special commission income compared to 2006. Excluding the lower contribution from the brokerage and mutual funds businesses, core banking non-funds income has grown by SAR180m, or 22.0%, compared to 2006.

Coverdale added: "Cost growth has been restricted to 1.8% over the prior year which experienced accelerated investment in rebranding, recruitment and systems enhancements. 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 continues to benefit from the strong underlying Saudi economy. The bank's capital and liquidity positions remain strong.

"SABB has made significant progress during 2007 towards its goal of becoming a comprehensive provider of financial services within Saudi Arabia. Products developed by our insurance company, SABB Takaful, which began trading on 1 July 2007, have been very well received by our clients and successfully complement our traditional bank offerings. Our joint venture investment bank, HSBC Saudi Arabia Limited, is also an important contributor to SABB's results and demonstrates the mutual benefits obtained by joining up with HSBC and gaining access to its global expertise in providing complete financial solutions for our customers.

"We thank our customers for their continued support, and our staff for their commitment and contribution to the bank's success."