SABB records SR2,006m for 3rd quarter of 2009

Net special commission income increased by SR201m, or 8.3%, compared with the same period in 2008 reflecting higher average asset balances and improved margins. Total other operating income grew by SR73.5m, or 5.8%, with higher foreign exchange and trade-related income compensating for lower levels of share brokerage and mutual fund fees.

Cost growth has been contained to SR27.3m, or 2.3%, compared with the first nine months of 2008. This equates to a cost:income ratio of 30.6% for the first nine months of 2009 compared with 32.2% for the same period in 2008. Provision for possible credit losses increased by SR505m compared with the same period in 2008 reflecting SABB's conservative credit policy in the current economic environment. Income from associates fell by SR59m, or 64.8%, reflecting the challenging market conditions experienced in 2009 compared with the same period in 2008.

Earnings per share of SR2.68 for the nine months ended 30 September 2009 - down 11.3% from SR3.02 for the same period in 2008. Earnings per share for the nine months ended 30 September 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 SR570m for the three months ended 30 September 2009 - down SR141m, or 19.8%, compared with SR711m for the same period in 2008 and down SR106m, or 15.7%, compared with SR676m for the three months ended 30 June 2009.

Operating income of SR3,974m for the nine months ended 30 September 2009 - up SR275m, or 7.4%, as compared with SR3,699m for the same period in 2008.

Customer deposits of SR89.2bn at 30 September 2009 - down SR6.5bn, or 6.8%, as compared with SR95.7bn at 30 September 2008.

Loans and advances to customers of SR78.8bn at 30 September 2009 - down SR4.8, or 5.7%, from SR83.6bn at 30 September 2008.

The bank's investment portfolio totalled SR24.1bn at 30 September 2009, as compared with SR36.0bn at 30 September 2008.

Total assets of SR123.9bn at 30 September 2009 - down SR8.7bn, or 6.6%, from 30 September 2008.

Richard Groves, Managing Director of SABB, said:

"SABB's strong operating income streams and cost containment have allowed the bank to report encouraging profits for the nine months ended 30 September 2009. This is despite a SR505m increase in provisions for possible credit losses compared with the same period in 2008 in accordance with our conservative credit policy."

Groves added, "SABB's capital and liquidity ratios both remain strong as does the overall quality of our 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.