The Saudi Investment Bank (SAIB) announced today its highest earnings to date with a net income of SR 1,064.2 million for the year ended 2005, compared to SR 587.1 million reported in 2004, an increase of SR 477.1 million, or a growth rate of 81.3% compared to the previous year. Earnings per share were SR 30.96, compared to SR 17.08 in the previous year.
Net commission income, namely commission income and investment placements revenue, less special commission expenses, increased to SR 785.7 million compared to SR 587.8 million in 2004.
SAIB’s income statement showed an increase in most operating income items, with fees from banking services totalling 655.7 million for 2005, or an increase of 95.7% over the same period of the previous year.
SAIB continued its conservative policy of maintaining loan loss reserves, with a provision for loan losses this year of SR 100 million, thus making the provision for credit losses SR 688 million, while the balance of non-operating loans did not exceed SR 189 million.
SAIB also continued to maintain its efficiency ratio, which reached 23.21%, which is the best among Saudi banks. These positive results have reflected on SAIB’s return on average equity (ROE) of 24.14%, and return on average assets (ROA) of 3.12%.
These record results, which are considered the highest in the history of the Bank, reflect the growth of SAIB’s business and the increase in its total assets by SR 11,037 million to reach SR 39,581 million at year-end, compared to SR 28,544 million for the same period of the previous year, or an increase of 38.7%. SAIB continued its support of the production sectors of the national economy and increased its balance of loans and advances by 51.9% to SR 19,794 million at year-end, compared to SR 13,031 million the previous year. SAIB’s investment portfolio also increased to SR 11.3 billion, compared to SR 8.5 billion the previous year. This balance includes an investment portfolio in local shares with SR 1.3 billion in unrealized earnings as at 31.12.2005. Moreover, total shareholders’ equity at the end of 2005, stood at SR 5,307 million compared with SR 3,607 million at the beginning of the same year, an increase of 47%.
On the liabilities side of the balance sheet at the end of 2005, SAIB achieved an increase of 37.3% in its customer deposits to more than SR 27,858 million, compared to SR 20,285 million, the previous year.
SAIB’s Board of Directors approved a proposed cash dividend of SR 3.00 per share, and a bonus share distribution of one share for each two-and-a-half shares outstanding. This proposal will be presented to the general assembly for approval, thus raising SAIB’s capital from SR 1,718 million to SR 2,406 million.
Dr. Abdul-Aziz Al-Abdullah Al-Ohali, SAIB’s Chairman of the Board and SAIB’s directors expressed their happiness with SAIB’s outstanding results and the high growth in SAIB’s business, and the Bank’s ability to carve its market share with outstanding capabilities, clear professionalism, and high efficiency in the management of its resources.
Mr. Saud Saleh Al-Saleh, SAIB’s General Manager, emphasized that SAIB’s business model and strategy have allowed its continued growth and progressive success in all the activities and services it has elected to provide to its clients. This strategy is focused on the continued diversification of SAIB’s sources of income, qualification of its workforce, consolidating its leverage, and strengthening its financial resources.
