Banque Saudi Fransi's 2007 annual income stands at SR2.7bn

Net profits observed during the last quarter of 2007 total SR640.5m which represents a 10% increase when compared with the 4th quarter of 2006 (SR582.1m).

Whereas the yearly figures show a reduction of 9.8% compared to 2006 net result and 6% in the operating income (SR3.939m in 2006 versus SR3.701m in 2007), it is worth mentioning that this situation is entirely attributable to the slow activity in the local stock market.

Low volumes and mechanical reduction in the value traded throughout the year 2007 created a lack of revenue for BSF compared to 2006 where the Bank generated outstanding income.

Excluding the reduced contribution from brokerage business, the operating income in all aspects of the core activities of the Bank shows a +16% increase. Where special commission revenue increased by 14%, other components (Forex, dividend income, gains on non trading investment aggregated SR508m reflecting a 45% increase compared to 2006 (SR350m).

This is illustrated by the growth in customers' deposits which reached SR74bn at the end of 2007 (+19.3%) and the growth in the loan portfolio from SR51.1bn to SR59.8bn (+17%)

Operating expenses have just increased by 6%. BSF could maintain a cost to income ratio of 26.7% thanks to a stringent and permanent control over operating expenses and a proactive management of provisions without impairing its provision to NPL ratio.

Jean Marion, the Managing Director of BSF declared "In a context of worldwide financial turmoil, where Credit spreads, Interest Rates and Forex market have been submitted to dramatic volatility and uncertainties, BSF proved the robustness of its business model. The growth of the loan portfolio has been achieved without compromising on our asset quality and risk management standards, while the drop in the revenues derived from the lackluster Brokerage Market could be almost overcome in other segments of our Business Franchise.

With a growth in the Balance sheet of 25.4%, a strong Capital base and a range of products and services enlarged thanks to the creation of specialized subsidiaries and joint-venture companies (Fransi Tadawul CAAM Saudi Fransi, Allianz Saudi Fransi, Calyon Saudi Fransi and Sofinco Saudi Fransi) which will fully operational next year, BSF is ready to meet the 2008 challenges in order to satisfy the demands from its customers in all areas of their financial needs."

Mr. Marion thanked the regulatory authorities for their help and fruitful support in the creation of these specialized companies.

Ibrahim al Touq, chairman of the Board of BSF added, "The Business model of BSF is sound. It paves the way for recurring growth in all aspect of the business of BSF .In the context where it was foreseeable than BSF would suffer lower revenues from its brokerage business, it is worth mentioning that the bank could deliver to its shareholders a 27% return on Equity and reward them by a global dividend of SR1.75 per share (1.25 in July and proposed final dividend of SR0.50) which represents a 45.8% increase compared to 2006 (based on a diluted number of share following the increase of Capital performed in March 2007)."

Ibrahim al Touq finally addressed his personal thanks to the growing number of loyal BSF customers who, by expressing more sophisticated demands and requirements helped their Bank to develop and expand in new segments of the financial sector.