SABB records SAR760m for first quarter 2009

This represents a SAR3m, or 0.4% increase compared with the first quarter of 2008 and a SAR 103m or 15.7% increase compared with the fourth quarter of 2008.

Net special commission income has grown by SAR27m or 3.1% compared to the first quarter of 2008 reflecting corporate asset growth and lower funding costs.

Despite a fall in income from the brokerage and mutual funds businesses, total non funds income grew by SAR68m or 20.2% compared to the first quarter of 2008 reflecting strong foreign exchange and trade-related business.

Earnings per share of SAR1.0133 for the three months ended 31 March 2009 - up 0.4% from SAR1.0093 for the same period in 2008.

Earnings per share for the three months ended 31 March 2008 have been adjusted to reflect a 3:5 bonus issue approved at an Extraordinary General Meeting held on 27 April 2008 and a 1:4 bonus issue approved at an Extraordinary General Meeting held on 10 March 2009.

Operating income of SAR1,286m for the three months ended 31 March 2009 - up SAR95m, or 8.0%, compared with SAR1,191m for the same period in 2008.

Customer deposits of SAR96.6bn at 31 March 2009 - up SAR18.2bn, or 23.2%, compared with SAR78.4bn at 31 March 2008.

Loans and advances to customers of SAR79.3bn at 31 March 2009 - up SAR12.7bn, or 19.1%, from SAR66.6bn at 31 March 2008.

The bank's investment portfolio totalled SAR25.9bn at 31 March 2009, up 9.3% compared with SAR23.7bn at 31 March 2008.

Total assets of SAR132.6bn at 31 March 2009 - up SAR26.2bn, or 24.6%, compared with 31 March 2008.

Overheads increased by SAR56m or 15.6%, compared to the first quarter of 2008 mainly due to continued investment in branch network expansion and in technology infrastructure.

Higher volume-driven card, personal loan and collective impairment charges have increased provisions for possible credit losses by SAR41m or 54.6%, compared to the first quarter of 2008 which benefited from higher levels of corporate recoveries.

Richard Groves, Managing Director of SABB, said:

"The first quarter 2009 performance reported by the bank is encouraging and demonstrates our continuing commitment to delivering sustainable results from our core banking businesses. The quality of our balance sheet remains strong based on long-term relationship lending, with surplus deposits invested predominantly in Saudi government instruments or with the Saudi Monetary Agency (SAMA)."

The SAR12.7bn or 19.1% increase in loans and advances compared to 31 March 2008 has been more than covered by the SAR18.2bn or 23.2% increase in customer deposits. This has allowed SABB to maintain a strong liquidity position which, together with a capital ratio strengthened by our recent bonus issues, will ensure that funding remains available to our valued clients." he added.

Groves added: "SABB continues to invest for the future and to ensure that any cost increase is supported by business growth, enhanced customer service and efficiency improvements."

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