The Saudi Investment Bank announced that by the end of the First Quarter of the current year, it has achieved net profits of 540 Million compared with SR 211 Million for the corresponding period last year, an increase of 156%.
The net income from commissions for the current period rose by SR 53.5 Million to reach SR 224.8 Million, an increase of 31.2% over the same period last year. The income from banking services rose to SR 265.9 Million, an increase of 172%. Dividend income from the investment portfolio and gains from the sale of investments reached SR 168.6 Million.
The Bank continued to pursue its conservative policy of setting aside additional sufficient provisions in order to enable it to expand its lending activities and to increase its participation in the development of the national economy and the support of its productive sectors. The Bank increased its possible loan loss provision by 100%, from SR 20 Million to SR 40 Million.
The Balance Sheet highlighted the growth in the Bank's total assets for this year which increased by SR 9.4 Billion reaching SR 41.8 Billion as of 31 March 2006, an increase of 29%. Meanwhile, the Bank’s investment portfolio grew to SR 11.1 Billion (up 36.5%) compared with SR 8.1 Billion for the same period last year. The loans portfolio reached SR 19.8 Billion (up 30.1%) compared with SR 15.2 Billion for the same period last year.
On the liabilities side, customers' deposits in the Bank increased by SR 5.3 Billion to reach SR 29.3 Billion, an increase of 22.3% over the balance for the same period last year.
The Bank also continued to maintain its distinguished efficiency ratio of 13.35% which is considered the best among the Saudi Banks. The above positive results have reflected positively on the return on the average shareholders’ equity which reached 40.1% and the return on the average assets which reached 5.39%.
The Chairman Dr. Abdul Aziz Al- Abdullah Al Ohali, and members of the Board of Directors, expressed their happiness with the positive results which were achieved by the Bank and its substantial business growth, stressing at the same time that the Bank is pursuing a clear and well studied path of development and expansion through which it has acquired a prominent place among the financial institutions in the region. This success is of great significance as it was achieved by a national, qualified and specialized team of young Saudis, who the Bank’s management and shareholders are proud of.
On the other hand, Mr. Saud Saleh Al Saleh, the General Manager of the Bank, said that these results were achieved in spite of the ever changing international and local economic factors. He added that the Bank had recently launched “Aswaqnet”, the Bank’s Internet local share trading service. Aswaqnet will enhance the interaction between the bank and its customers all over the Kingdom. Moreover, ten new branches have been constructed in the Central, Eastern and Western Regions and will be opened during the second quarter of the current Year. The Bank has also launched two new capital-protected funds “Global Protection” and “Gulf Protection”, which will bring the number of funds managed by the Bank to 12 investment funds.
