The Saudi British Bank first half 2002 results

This represents an increase of 15.2 per cent over the SAR422.5 million (US$112.7 million) earned in the same period in 2001.

Earnings per share increased to SAR12.17 (US$3.25) compared to SAR10.56 (US$2.82) for the same period last year.

Customer deposits increased to SAR33.1 billion (US$8.8 billion) at 30 June 2002 from SAR30.5 billion (US$8.1 billion) at 30 June 2001, reflecting increased liquidity in the market.

Loans and advances to customers were higher at SAR18.6 billion (US$5.0 billion) at 30 June 2002 from SAR16.1 billion (US$4.3 billion) at 30 June 2001 as personal credit growth remained robust and growth in corporate credit was achieved.

The bank's investment portfolio totalled SAR21.5 billion (US$5.7 billion) at 30 June 2002, a small increase from SAR21.4 billion (US$5.7 billion) at 30 June 2001.

David Hodgkinson, managing director, said: "Our results for the first six months are encouraging. Operating revenues, excluding gains on investments, continue to grow despite the low interest rate environment. While operating costs were contained, our capital and liquidity ratios remain sound.

"Our Al Amanah range of Islamic banking products has been well-received. We now have three branches dedicated to this area, in addition to 17 outlets which also provide Al Amanah banking services.

"Earlier this year, the bank's mutual funds won 14 awards, including nine first places, at the annual Investment Fund Awards presentation. One of the awards was for Best Overall Fund Manager for the one-year category in 2001. Assets under management at 30 June 2002 amounted to SAR5.4 billion, 40 per cent higher than at 30 June 2001.

"The Directors have approved the payment of a net interim dividend of SAR8.00 per share (gross dividend SAR8.31 per share). This will result in a total gross interim dividend pay out of SAR332.4 million.

"We are grateful for the support of our customers and the contribution of our staff over this period."

Highlights
• Net profit of SAR486.7 million (US$129.8 million) for the six months ended 30 June 2002 - up SAR64.2 million (US$17.1 million) or 15.2 per cent over the same period in 2001.

• Customer deposits of SAR33.1 billion (US$8.8 billion) at 30 June 2002 - up SAR2.6 billion (US$0.7 billion) or 8.5 per cent over 30 June 2001.

• Loans and advances to customers of SAR18.6 billion (US$5.0 billion) at 30 June 2002 - up SAR2.5 billion (US$0.7 billion) or 15.5 per cent over 30 June 2001.

• Total value of investment portfolio stood at SAR21.5 billion (US$5.7 billion) at 30 June 2002 - up SAR0.1 billion (US$0.02 billion) or 0.5 per cent over 30 June 2001.

• Total assets of SAR43.8 billion (US$11.7 billion) at 30 June 2002- up SAR0.4 billion (US$0.1 billion) or 0.9 per cent over 30 June 2001.

• Earnings per share of SAR12.17 (US$3.25) for the six months ended 30 June 2002 - up from SAR10.56 (US$2.82) over the same period in 2001.