SABB declares third quarter 2001 results

This represents an increase of 14.1 per cent over the SAR560 million (US$149 million) earned in the same period in 2000.

Customer deposits increased to SAR29.8 billion (US$7.9 billion) at 30 September 2001 from SAR27.6 billion (US$7.3 billion) at 30 September 2000, despite the continuing decline in interest rates.

Loans and advances to customers increased to SAR16.5 billion (US$4.4 billion) at 30 September 2001 from SAR15.7 billion (US$4.2 billion) at 30 September 2000. There has been a slow pick-up in demand for commercial credit while the bank's personal lending portfolio recorded steady growth.

During the first nine months of 2001, the bank continued to deploy available liquidity in a diversified investment portfolio. As a result, the total value of the bank's investment portfolio increased to SAR22.0 billion (US$5.9 billion) at 30 September 2001 from SAR17.8 billion (US$4.7 billion) at 30 September 2000.

David Hodgkinson, managing director, said: "Recent events have made the immediate economic outlook less certain, although the future prospects for Saudi Arabia remain positive. The bank's business outlook also remains positive and our capital and liquidity ratios are strong.

"We have been encouraged by the success of our increased range of products and services, including the recently launched Home Purchase Finance. These are designed to meet the more sophisticated needs of customers, and are delivered efficiently through traditional distribution channels as well as by electronic means.

"We would like to thank our customers for their continuing support, and our staff for their vital contribution to the bank's success."