The Saudi Investment Bank announced that by the end of the Period ending on 30/09/2006 G, it has achieved net profits up to SR 1.705 Billion compared with SR 776.5 Million for the corresponding Period during the last year, with an increase of 119.6%. The earning per share reached SR 7.09 compared with SR 3.23 for the same period during the last year. The total operating income for the nine months reached SR 2.13 Billion, including SR 671 Million as gains from sale of investments achieved during the First Half of this Year against SR. 1.08 Billion for the same period of the last year, with increase of 96.8%. The profits for the Third Quarter of this Year reached SR 326.3 Million against SR 286.1 Million with an increase of 14.1%.
The above growth is primarily due to increase in most the income categories as the net income from commissions for the current period rose to SR 747.5 Million with an increase of 29.5% over the same period in the last year. Fees from banking services rose to SR 653 Million with 47.4% increase, and profits from foreign exchange trading rose to SR 26.2 Million with 55.8% increase, and profits from sale of investments reached SR 671 Million with an increase of 2686.7 %.
On the expenses side, the Bank continued in applying a policy of setting aside additional sufficient provisions in order to expand its lending activities, that a provision of SR 80 Million has been made, as the possible loan loss provisions balance has now reached SR 763 Million; whereas the non-performing loans balance did not exceed SR 217.1 Million. The Bank also continued to increase its efficiency ratio up to 16.26% considered the highest among the Saudi Banks, compared with 21.36% for the same period during the last year. The above positive results were reflected in the return on the shareholders’ equity that rose to 40.86% and return on the average assets that reached to 5.85% in comparison with 24.61% and 3.21% respectively during the past year.
The Balance Sheet highlighted the growth in net loans portfolio, which increased to SR. 20.180 Billion compared with SR. 19.151 Billion for the same period a year earlier i.e. with an increase of 5.4%.
On the liabilities side, customers' deposits in the Bank rose to SR 25,892 Million compared with SR 24.797 Billion, with the increase of 4.4% over the balance for the same period in the last year.
The Bank’s assets thereby reached to SR 38.318 Billion as on 30/09/2006 compared with SR 36.214 Billion, with the increase of 5.8%.
The Shareholders’ Equity increased SR 5.850 Billion compared with SR 4.929 Billion, with the increase of 18.7%.
Dr. Abdul Aziz Al- Abdullah Al Ohali, and members of the Board of Directors, expressed their happiness with these positive results achieved by the Bank and its substantial business growth.
On the other hand, Mr. Saud Al Saleh, the General Manager of the Bank, said that the Bank could be able to achieve these results due to making good use of available opportunities and due to concerted efforts of its employees towards rendering the best services possible to the customers. The diversification and expansion by the Bank of its services have helped it respond to the needs of its corporate as well retail clients. He added that there has been inauguration of a number of new branches in the Third Quarter of this Year as well as launching of AL ASALA Islamic Banking Program with addition of ten new branches working in accordance with the Sharia guidelines and this pattern has been applied on all new branches. Al Asala is a new product for offering Islamic Banking services distinguished with innovation, state-of-the art technology and quality.
