SABB records SR2,263m for third quarter 2008

Net profit of SR711m ($190m) for the three months ended 30 September 2008 - up SR60m ($16m), or 9.2%, compared with SR651m ($174m) for the same period in 2007.

Earnings per share of SR3.77 ($1.01) for the nine months ended 30 September 2008 - up 19.0% from SR3.17 ($0.85) for the same period in 2007. Earnings per share for the nine months ended 30 September 2007 have been adjusted to reflect a 3:5 bonus issue approved at an Extraordinary General Meeting held on 27 April 2008.

Operating income of SR3,699m ($986m) for the nine months ended 30 September 2008 - up SR544m ($145m), or 17.2%, compared with SR3,155m ($841m) for the same period in 2007.

Customer deposits of SR95.7bn ($25.5bn) at 30 September 2008 - up SR25.4bn ($6.8bn), or 36.1%, compared with SR70.3bn ($18.7bn) at 30 September 2007.

Loans and advances to customers of SR83.6bn ($22.3bn) at 30 September 2008 - up SR29.4bn ($7.8bn), or 54.2%, from SR54.2bn ($14.5bn) at 30 September 2007.

The bank's investment portfolio totalled SR36.0bn ($9.6bn) at 30 September 2008 compared with SR17.0bn ($4.5bn) at 30 September 2007.

Total assets of SR132.6bn ($35.4bn) at 30 September 2008 - up SR43.0bn ($11.5bn), or 48.0%, over 30 September 2007.

Overheads increased by SR184m ($49m) in the nine months to 30 September 2008, or 18.3% compared with the same period in 2007, mainly due to an increase in headcount and performance related compensation. Provisions for bad debts have reduced by SR15m ($4m) in the nine months to 30 September 2008, or 5.1% compared with the same period in 2007, with increased recoveries offsetting higher volume driven general impairment charges.

John Coverdale, managing director of SABB, said:

"These results demonstrate SABB's commitment to providing consistent and sustainable results by carefully balancing our risk and growth appetite. Furthermore we advise that we have no significant exposure to the US sub-prime mortgage market which would have an adverse impact on these results." He added: "We thank our customers for their continued support, and our staff for their commitment and contribution to the bank's success."