The Saudi Investment Bank announced that during the First Quarter of the Year 2005, it has achieved net profits exceeding SR 211 Million compared with SR 125.6 Million for the same period a year earlier, with an increase of more than 68%. The earnings per share were recorded at SR 6.14 compared with SR 3.65 over the same period during last year.
The income from banking services rose to SR 97.74 Million with an increase of 61%. Profits from investment portfolio and gains from sale of investments witnessed a substantial growth reaching SR 30.4 Million. With its resources and means, the Bank has been able to avail the improved situation in the share market to achieve higher service fees. The net income from commissions for the current period rose to SR 171.33 Million with an increase of 37.4% over the same period in the last year.
The Balance Sheet highlighted growth of the Bank's assets for this year which increased by SR 8.8 Billion reaching SR 32.4 Billion as of 31 March 2005, with an increase of 37.3% compared with last year. At the same time, the Bank’s investment and loans portfolios increased at 24.5% and 30.6% respectively.
On the liabilities side, customer deposits in the Bank increased by SR 7.5 Billion, reaching SR 23.9 Billion, with an increase of 45.7% over the balance for the same period last year.
The Bank also continued to maintain an efficiency ratio of 23.72% which is considered the best among the Saudi Banks.
The above positive results were reflected in the return on the average shareholders’ equity which rose to 22.82% compared with 18.36%, and return on average assets that reached to 2.81% compared with 2.23% for the same period last year.
The Chairman, Dr. Abdul Aziz Al-Abdullah Al O’hali, and members of the Board of Directors, expressed their happiness with the positive results 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. The significance of this success is that it has been achieved by a qualified and specialized team of young Saudis who have earned the trust and pride of the management and the shareholders.
On the other hand, Mr. Saud Saleh Al Saleh, the General Manager of the Bank, said that the Bank’s success in diversifying its services, its products and its business scope provided it the opportunity to increase its profits and to balance their sources in order to keep up its business growth and to continue the expansion of its client base. The Bank is at present increasing the number and the standard of its branches, as several new branches are currently being constructed which were designed in accordance with higher standards to offer an environment suitable to the clients’ expectations and the Bank’s plans to expand its retail banking services, as well as provide it an opportunity to enter new areas such as Al Ahsa, Al Qasim and Makkah Al Mukarramah. He said that the Bank would soon launch Internet banking services which would include share trading, utility bill payment, account transfers, external money transfer etc. The General Manager added that the Bank has recently opened 6 new lounges for local share trading- 4 in Riyadh, and 1 each in Al Ahsa and Jeddah. These lounges have been furnished with all the facilities and designed to provide a luxurious and comfortable atmosphere in which the market can be tracked and watched with ease and tranquility
