The Saudi Investment Bank announced that up to the end of the Third Quarter of the current year, it has achieved net profits up to SR 435.9 Million compared with SR 347.2 Million for the same period a year earlier, with an increase of 25.5%.
The net income from commissions for the current period rose to SR 431.4 Million with an increase of 18.8% over the same period in the last year. Other income for this period, representing fees from banking services and profits from investment portfolio and gains from sale of investments, witnessed substantial growth reaching SR 328.6 Million , with an increase of 46% over what was achieved during the same period a year earlier, as the Bank could be able to avail the opportunities available in the market for structuring the investment portfolio and achieve prominent investment gains. With its resources and means, the Bank could be able to avail the improved situation in the share market to achieve higher service fees, whereas operating expenses increased due to the bank’s expanding business.
Pursuing its conservative policy, the Bank continued in applying a policy of setting aside additional sufficient provisions in order to enable it to expand its lending activities, increase its participation in development of the national economy and support the production sectors of the economy, as the Bank increased its possible credit loss provision at 52.2%, from SR 69 Million to SR 105 Million, as the possible loan loss balance has reached SR 570.8 Million; whereas the non-operating loans balance as of 31 December 2003 was SR. 195.6 Million only.
The Balance Sheet highlighted growth of the Bank's assets for this year which increased by SR 4,376 Million reaching to SR 25,833 Million as of 30 September 2004, with an increase of 20.4% compared with the same period in the last year. At the same time, the Bank’s investment portfolio grew up to SR 8,781 Million by 24.3% whereas the loans portfolios increased to SR 11,541 Million by an increase of 6.3%.
On the liabilities side, customers' deposits in the Bank increased by SR 3,108 Million, reaching to SR 17,897 Million, with the increase of 21% over the balance for the same period in the last year.
The Bank also continued to maintain its efficiency ratio increasing to 29% which is considered the highest among the Saudi Banks. The above positive results are reflected in return on the average shareholders’ equity which rose to 19.8% and return on the assets that reached to 2.5%.
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, 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 significant place among the financial institutions in the region, contributed in this great success by a national qualified and specialized team of young Saudi cadres 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 the Bank could be able to achieve great success on different levels, as it has increased its business in retail sector, introduced new credit and investment products and successfully launched six new investment funds which are achieving competitive returns. He added that the Bank has, in a short period, built and furnished four new branches. Al Nuzha Branch, north of Riyadh (located at Abu Bakr Al Siddiq Street) has already been inaugurated; and within a week, Al Shifa Branch in Riyadh will be opened which will be followed by the inauguration of Al Hofuf Branch in Al Ahsa Province as well as Al Malik Road Branch in Jeddah. Further, the Bank is currently planning to build and furnish a number of other branches in different regions of the Kingdom under the policy of its business expansion in order to serve the Bank’s customers.
