SABB records SR1,436m for first half 2009

Net special commission income has grown by SR102m, or 6.1% compared to the first half of 2008 reflecting higher average asset volumes. Total non-funds income grew by SR45m, or 5.3% with higher foreign exchange and trade related income streams compensating for lower levels of share brokerage and mutual fund fees.

Cost growth has been contained to SR22m, or 2.8% compared to the first half of 2008 delivering a cost income ratio of 30.6% for the first half of 2009 compared to 31.5% for the same period in 2008.

SABB has suffered no impairments of financial assets in the first six months of 2009 compared to a SR61m write down reported for the same period in 2008.

Income from associates has fallen by SR56m or 80.7% reflecting the challenging market conditions experienced in the first half of 2009 as compared with the same period in 2008.

Earnings per share of SR1.91 for the six months ended 30 June 2009 - down 7.5% from SR2.07 for the same period in 2008.

Earnings per share for the six months ended 30 June 2008 have been adjusted to reflect a 1:4 bonus issue approved at an Extraordinary General Meeting held on 10 March 2009 and reflected in the share register as at close of business on the same day.

Net profit of SR676m for the three months ended 30 June 2009 - down SR119m, or 15.0%, as compared with SR795m for the same period in 2008 and down SR84m, or 11.1% as compared with SR760m for the first three months of 2009.

Operating income of SR2,669m for the six months ended 30 June 2009 - up SR147m, or 5.8%, as compared with SR2,522m for the same period in 2008.

Customer deposits of SR91.5bn at 30 June 2009 - up SR2.4bn, or 2.7%, as compared with SR89.1bn at 30 June 2008.

Loans and advances to customers of SR78.7bn at 30 June 2009 - up SR1.2bn, or 1.5%, from SR77.5bn at 30 June 2008.

The bank's investment portfolio totalled SR24.4bn at 30 June 2009 as compared with SR30.1bn at 30 June 2008. Total assets of SR121.9bn at 30 June 2009 - down SR4.2bn, or 3.4%, from 30 June 2008.

Richard Groves, Managing Director of SABB, said:

"I am pleased to announce that SABB's strong operating income streams have allowed the bank to report robust profits for the first half of 2009 despite a SR246m increase in provisions for possible credit losses as compared with the same period in 2008, as a result of conservative credit policy."

"Deposit growth of SR2.4bn, or 2.7% over the last 12 months has been balanced by loans and advances growth of SR1.2bn, or 1.5% with new loans granted being partially offset by scheduled repayments of existing facilities and lower levels of overdraft. Surplus deposits continue to be invested predominantly in Saudi government instruments. SABB's capital and liquidity positions remain strong as does the overall quality of the loan book. We thank our customers for their continued support, and our staff for their commitment and contribution to the bank's success," he added.

SABB's Board of Directors has approved the payment of a gross interim dividend of SR660m for the first half of 2009, equal to that paid in 2008. This represents a net distribution of SR0.83 per share to Saudi shareholders after the deduction of Zakat. Payment of dividends shall commence with effect from Monday 27.07.2009 for shareholders registered in the bank's records as at the end of trading on Monday 20.07.2009