SABB records a net profit of SAR1200 million (US$ 320 million) for the six months ended 30 June 2005 up 44 per cent

Net profit and earnings per share for the six months ended 30 June 2004 have been restated to reflect the adoption of the revised International Accounting Standard 39 - Financial Instruments: Recognition and Measurement.

Customer deposits increased to SAR44.5 billion (US$11.9 billion) at 30 June 2005 from SAR39.3 billion (US$10.5 billion) at 30 June 2004 - up 13.2 per cent over 30 June 2004.

Loans and advances to customers increased to SAR35.4 billion (US$9.4 billion) at 30 June 2005 from SAR28.0 billion (US$7.5 billion) at 30 June 2004 - up 26.6 per cent over 30 June 2004.

The bank's investment portfolio totalled SAR17.0 billion (US$4.5 billion) at 30 June 2005, an increase from SAR15.4 billion (US$4.1 billion) at 30 June 2004.

Total assets of SAR60.5 billion (US$16.1 billion) at 30 June 2005 - up SAR10.5 billion (US$2.8 billion) or 21.0 per cent over 30 June 2004.

Geoff Calvert, managing director of The Saudi British Bank, said: "First half results have been very strong. Operating revenues continue to trend well above 2004 levels. While non-funds income continues to benefit from a buoyant local equity market, growth has been strong across all areas. The bank's cost:income ratio has continued to improve due to successful management of the cost base while investing in new growth opportunities. Our loan and deposit growth has been strong, in part reflecting good macro-economic conditions in the Saudi economy. Credit quality remains sound with a continued low level of provisions for credit losses. Capital and liquidity positions remain strong.

"Following the success of the first eurobond issued by a Saudi company in the first quarter of 2005, SABB completed another first with the closing of a funding deal with the International Finance Corporation to support SABB's Sharia compliant Al Amanah Islamic Personal Home Loan Financing product.

"The Saudi British Bank has been chosen as 'Best Equities House in the Kingdom of Saudi Arabia for 2005' by Euromoney magazine. The award recognises the bank's leading position in the banking sector.

"All areas of the bank are performing well. We continue to look for new opportunities and develop new products and services for our customers in the Kingdom.

"The Directors have approved the payment of a net interim dividend of SAR10.00 per share (gross dividend of SAR10.52 per share). This represents a total gross interim dividend payment of SAR526 million, an increase of 11.8 per cent compared to the same period last year.

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