SABB records SR1,55m for the first half of 2008

Net profit of SR795m for the three months ended 30 June 2008 - up SR160m, or 25.2%, compared with SR635m for the same period in 2007, and up SR38m, or 5.0 % compared with the first three month period of 2008.

Earnings per share of SR2.59 for the six months ended 30 June 2008 - up 24.0% from SR2.09 for the same period in 2007.

Earnings per share for the six months period ended 30 June 2007 have been adjusted to reflect a 3:5 bonus issue approved at an Extra Ordinary General Meeting held on 27 April 2008.

Operating income of SR2,522m for the six months ended 30 June 2008 - up SR467m, or 22.7%, compared with SR2,055m for the same period in 2007.

Customer deposits of SR89.1bn at 30 June 2008 - up SR23.9bn, or 36.7%, compared with SR65.2bn at 30 June 2007.

Loans and advances to customers of SR77.5bn at 30 June 2008 - up SR28.9bn, or 59.5%, from SR48.6bn at 30 June 2007.

The bank's investment portfolio totalled SR30.1bn at 30 June 2008 compared with SR16.4bn at 30 June 2007.

Total assets of SR126.2bn at 30 June 2008 - up SR41.1bn, or 48.3%, over 30 June 2007.

John Coverdale, managing director of SABB, said:

"I am pleased to announce that SABB's strategy of building long term customer relationships supported by a broad range of financial products and services has delivered profit growth in each of the last six quarters. The strength of our balance sheet has allowed us to respond to the increasing demand for funding within the Kingdom as reflected by the 59.5% growth in our loans and advances book over the last twelve months. This asset growth has more than offset the impact of falling rates. In addition, strong performance from our Cards, Trade, Mutual Fund, Treasury and IPO related businesses, together with a modest increase in brokerage income, has delivered well balanced income streams from our funds and non-funds activities. Our costs have increased by SAR151m or 23.4% over the first half of 2007 mainly due to an increase in headcount and performance related compensation. Provisions for bad debts in the first half of 2008 have reduced by SR4m or 1.8% from the same period in 2007 with increased recoveries offsetting higher volume driven general impairment charges."

"Despite strong loan growth, SABB's capital and liquidity ratios remain strong. SABB is acutely aware of the importance of well managed capital and liquidity positions. Senior management monitor the situation on a daily basis and have robust capital and liquidity maintenance policies in place to ensure that balance sheet strength is not compromised during periods of accelerated growth.

"We are pleased to announce the formation of SABB Insurance Services Limited which will complement our SABB Takaful insurance business by providing comprehensive insurance solutions to our Corporate, Global Banking and Markets and Private Banking customers. This new company represents a further step towards our goal of becoming a leading provider of financial services in the Kingdom.

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