Banque Saudi Fransi posts SR1,433m net income for the first half of 2009

This is SR74m (-4.91%) less than the net income for the first six months of 2008, where income posted was SR1,507m.

The decrease is mainly due to the prudent provisioning policy adopted by BSF, taking into consideration the prevailing market conditions.

The Bank's Net special commission income for the first half of 2009 reached SR1,525m compared to SR1,318m for the same period last year.

This represents an increase of SR207m (16%) and reflects the robust growth in the core operations of the Bank. Net special commission income of SR757m was recorded for the 2nd Quarter 2009 compared to SR616m for the same period in 2008. This represents an increase of 23% (+141m) over the same quarter of last year. The earnings per share stood at SR1.98 against SR2.08 for the same period last year.

Total operating income increased by SR65m (+3%), reaching SR2,175m during the first half of the year compared to SR2,110m over the same period of 2008.In the second quarter of 2009, the Bank has achieved total operating income of SR1,096m compared to SR1,076m during the 2nd quarter of 2008 (+2%). Net income of SR812m excluding provisions, was recorded for the 2nd Quarter of 2009 compared to SR803m for the same period in 2008.

Total assets of the Bank have increased from end of 2nd Quarter 2008 to end of 2nd Quarter 2009 by SR8bn (+7%), reaching SR123bn compared to SR115bn at the end of same period last year.

Accordingly, total loans and advances have reached SR81bn compared to SR76bn at the end of June 2008. Customer deposits too have shown a positive growth of 6% to SR90bn, from SR85bn for the same period last year, improving the Bank's liquidity position and demonstrating the continued confidence placed by the Bank's clientele.

BSF Chairman, Sheikh Ibrahim Al-Touq was pleased with the results, stating that BSF has managed to deliver positive growth across all its core business activities while maintaining its focus on customer satisfaction and managing its risk with the utmost diligence despite the volatile and challenging market conditions.

He thanked the customers of the Bank for their continued loyalty and support, and the BSF staff for their commitment and effort in achieving these results, while remaining confident that they would take the Bank to greater success based on the momentum generated during the first half of the year.

He emphasized the ability of BSF to expand its income during the second half of the year by offering innovative products and services efficiently and through continued focus on the evolving environment with the goal of maximizing customer satisfaction. He added that the Bank would remain on track to achieve its strategic priorities, while ensuring the proactive management of key risks.

Sheikh Ibrahim Al-Touq concluded by assuring that BSF will remain dedicated to growth and continue in its efforts to expand its business performance.