SABB records profits

This represents an increase of 52.2 per cent over the SAR1,646 million (US$439 million) earned in 2004. Earnings per share increased to SAR50.09 (US$13.36) compared to SAR32.92 (US$8.78) for the previous year. (Net profit and earnings per share for the year ended 31 December 2004 have been restated to reflect the adoption of the revised International Accounting Standard 39 - Financial Instruments: Recognition and Measurement.)

Customer deposits increased to SAR48.5 billion (US$12.9 billion) at 31 December 2005 from SAR44.7 billion (US$11.9 billion) at 31 December 2004 - up SAR3.8 billion (US$1.0 billion) or 8.5 per cent over 31 December 2004.

Loans and advances to customers increased to SAR40.8 billion (US$10.9 billion) at 31 December 2005 from SAR31.6 billion (US$8.4 billion) at 31 December 2004 - up SAR9.2 billion (US$2.5 billion) or 29.1 per cent over 31 December 2004.

Total assets of SAR65.9 billion (US$17.6 billion) at 31 December 2005 - up SAR8.0 billion (US$2.1 billion) or 13.8 per cent over 31 December 2004.

The bank's investment portfolio totalled SAR16.4 billion (US$4.4 billion) at 31 December 2005, an increase from SAR14.7 billion (US$3.9 billion) at 31 December 2004.

John Coverdale, Managing Director of The Saudi British Bank, said:

" SABB has achieved excellent results for 2005 as it was well-positioned to serve its customers during a year of strong economic expansion and stock market performance in Saudi Arabia.

"All our business and product segments have performed well and carry good momentum into 2006. Credit and investment portfolios are sound and prudently managed. Capital and liquidity remain strong, and we plan to utilise some of our 2005 earnings to further increase our paid-up capital via a bonus share issue.

"Notable among many highlights of 2005 was a credit ratings upgrade from Fitch Ratings, and approval for establishing the first full-service, independent investment bank in Saudi Arabia as a joint venture between SABB and the HSBC Group.

"The Directors have recommended a final net dividend of SAR5 per share. The total net dividend for 2005 will amount to SAR15 per share as an interim net dividend of SAR10 per share was paid in July 2005.