The Saudi Investment Bank declared today that it has achieved the highest profits in its history up to SR 587.1 Million by the end of the Year 2004 (2003: SR 463.9 Million), with an increase of SR 123.2 Million representing 26.6% higher than the last year. The earnings per share were recorded at SR 21.35 compared with SR 16.87 over the same period during the last year. The Income Statement witnessed increase in all of its categories. The income from banking services rose to SR 335 Million with an increase of 105.2% higher than the last year.
The Bank continued to follow its conservative policy towards setting aside provisions for possible loan losses, that a provision of SR 130 Million has been made during this year compared with SR 81 Million in the last year, as the possible loan loss provisions balance has reached SR 596 Million, whereas the non-performing loans balance as of 31December 2004 did not exceed SR 218 Million.
The Bank also continued to maintain its high efficiency ratio up to 29.24%, which is considered the highest among the Saudi Banks. The above positive results were reflected in the return on the shareholders’ equity which rose to 19.12% and return on average assets that reached to 2.34%.
The above record results, being the largest in the history of the Bank, reflect the growth of the Bank's business activities and increase in volume of its assets by SR 6,835 Million reaching SR 28,544 Million at the end of this year compared with SR 21,708 Million for the same period during the last year, with an increase of 31.5%. The Bank continued to support the production sectors of our national economy and, thus, could be able to increase its loans portfolio up to SR 13,031 Million at the end of this year compared with SR 10,232 Million during the last year, i.e. with an increase of 27.4%. The total shareholders' equity rose to SR 3,509 Million by the end of this year compared with SR 2,632 Million at the beginning of the same year.
The Board of Directors has approved the recommendation for distribution of net cash dividend at SR 3 per share in addition to share dividend by issuing one new share for each 4 outstanding shares, and this will be presented to the General Assembly Meeting for approval. Accordingly, the Bank’s capital will increase to SR 1,718.7 Million from SR1,375 Million.
On the liabilities side, the Bank, by the end of the Year 2004, was able to increase the customers' deposits, which exceeded SR 20,285 Million with an increase of 40.8% compared with SR 14,404 Million last year.
Dr. Abdul Aziz Al-Abdullah Al-Ohali, Chairman of the Saudi Investment Bank, expressed his and other Board members' happiness with the distinguished results achieved by the Bank, its substantial business growth, its carving out a market share with excellent capability and distinct professionalism as well as its greater efficiency in managing its resources.
On the other hand, Mr. Saud Al-Saleh, the General Manager of the Bank, said that the business pattern and strategy pursued by the Bank has enabled it to continue achieving business growth and ever increasing results whereby it has acquired flexibility to succeed in all business activities and services it has selected to provide to its customers. He explained that many goals have been achieved during the Year 2004, as four new modernly designed branches were inaugurated during the year, which are capable of coping with great developments occurring in the banking sector. There were also 37 Automated Teller Machines (ATMs) added that now the total number of ATMs of the Bank has reached 143. Moreover, five new investment portfolios were introduced which have become very popular among the customers, and their invested funds under the Bank’s management have exceeded SR 2,500 Million. The Bank has also introduced E-Banking services and an array of the services to be provided through the internet will be completed during the Year 2005.
