The Saudi British Bank (SABB) records a net profit of SAR2,455 million (US$655 million) for the nine months ended 30 September 2006 - up 31.0 per cent

This represents an increase of 31.0 per cent over the SAR1,874 million (US$500 million) earned in the same period in 2005. Earnings per share increased to SAR6.55 (US$1.75) compared to SAR5.00 (US$1.33) for the same period last year. Earnings per share for the nine months ended 30 September 2005 have been adjusted 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 SAR59.7 billion (US$15.9 billion) at 30 September 2006 from SAR45.6 billion (US$12.2 billion) at 30 September 2005.

Loans and advances to customers increased to SAR41.2 billion (US$11.0 billion) at 30 September 2006 from SAR39.6 billion (US$10.6 billion) at 30 September 2005.

Total assets of SAR77.5 billion (US$20.7 billion) at 30 September 2006 - up SAR10.1 billion (US$2.7 billion) or 15.0 per cent over 30 September 2005.

The bank's investment portfolio totalled SAR16.6 billion (US$4.4 billion) at 30 September 2006, down from SAR16.9 billion (US$4.5 billion) at 30 September 2005.

John Coverdale, managing director of SABB, said:

"SABB's focus on its core banking businesses has continued to deliver robust growth and results for its shareholders. The expected impact on income resulting from a turbulent stock market in the first half of the year has been absorbed, and SABB is well placed for future growth."

"Operating revenues have grown by 30.1 per cent compared to the same period in 2005, while our cost base has increased 34.1 per cent. SABB continues to invest in strategic technology and service delivery channels in order to enhance customer service and grow the business.

""The credit quality of our various portfolios remains sound and delinquencies are in line with anticipated increases due to growth in our cards and personal loan businesses. Deposit growth has been strong over the past few months as investors have rebalanced their portfolios and several corporate clients have mobilised funds for significant projects. Capital and liquidity positions remain very strong.

"The third quarter of 2006 saw the formal establishment of our investment banking affiliate, HSBC Saudi Arabia Ltd, a key milestone in SABB's evolution from a traditional bank to a diversified financial services group.

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