SABB recorded a net profit of SAR986 million for the quarter ended 31 March 2006 - up 116.3 per cent

This represents an increase of 116.3 per cent over the SAR456 million (US$122 million) earned in the quarter ended 31 March 2005. Earnings per share increased to SAR2.63 (US$0.70) compared to SAR1.22 (US$0.32) for the first quarter in 2005 up 116.3 per cent. Earnings per share for the quarter ended 31 March 2005 have been diluted to reflect a 1:2 bonus issue approved at the Annual General Meeting held on 21 March 2006 and a 5:1 share split effective 8 April 2006.

Customer deposits increased to SAR54.5 billion (US$14.5 billion) at 31 March 2006 from SAR42.3 billion (US$11.3 billion) at 31 March 2005 or 28.8 per cent, over 31 March 2005.

Loans and advances to customers increased to SAR39.5 billion (US$10.5 billion) at 31 March 2006 from SAR32.3 billion (US$8.6 billion) at 31 March 2005 or 22.3 per cent, over 31 March 2005.

Total assets of SAR73.7 billion (US$19.7 billion) at 31 March 2006 - up SAR16.0 billion (US$4.3 billion), or 27.7 per cent, over 31 March 2005.

The bank's investment portfolio totalled SAR18.3 billion (US$4.9 billion) at 31 March 2006, an increase from SAR16.4 billion (US$4.4 billion) at 31 March 2005.

John Coverdale, managing director, said: "SABB has built upon the momentum generated last year and has delivered strong first quarter results well above 2005 levels. Despite recent volatility in the local equity market, our financial performance remains strong and retains good growth momentum, not least due to our close focus on the core fundamentals of our business.

"Operating revenues have benefited from the exceptional growth seen in the local equity market in the first two months of the year, and robust contributions from our core banking activities. The bank's cost:income ratio has continued to reduce despite incurring higher overheads to support business growth, and the loan portfolio remains sound as reflected in the low provision for credit losses. In early March, SABB's credit rating was upgraded from A- to A by Standard & Poor's and currently equals the highest ranking for any Saudi bank.

"On 11 February 2006 The Saudi British Bank re-branded as SABB and adopted the HSBC Hexagon logo demonstrating the close relationship that exists between SABB and our global partner.

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