The profits thus achieved are a manifestation of the sustained growth of the Bank's business, its capability to compete and achieve success in carving out a substantial market share despite the tough competition among the banks of this region. The figures of the Balance Sheet and Income Statement were characterized with a significant growth at all levels of the Bank's activities.
The figures of the Income Statement has shown a significant increase in the profits achieved from services fees, which had reached SR 42.2 Million compared with SR 26.5 Million during the Year 1999 out of the Bank's overall net profits, and which constitute 30% compared with 21% in the Year 1999. The profits from the Bank's investment portfolio have reached 27 % representing SR 146.9 Million compared with SR 115.8 Million during the same period in the last year.
On the expenses side, the Bank continued to keep its expenses under control, which enabled it to achieve the best efficiency ratio among all Saudi, and regional Banks, which reached 29% or in other BodyEnglish, it, achieved SR 3.44 as net profits for each one Riyal out of the expenses. Following its conservative approach, the Bank also continued to set aside further provisions, despite arrangement of sufficient provisions to meet any possible losses in its loans portfolio. The coverage ratio for the non-performing loans portfolio provision has reached more than 176% which is considered as the highest coverage ratio among the Saudi banks.
The Balance Sheet demonstrated significant growth in all of its items that total assets of the Bank by the end of the First Half of 2000 has increased to SR 13.3 Billion compared with SR 13 Billion in the last year. The investment portfolio rose to SR 4.2 Billion, with a growth of 26%, compared with SR 3.3 Billion. The Bank continued its active participation in financing different economic sectors that its loan portfolio increased, by 6%, to SR 7.2 Billion at the end of the First Half of 2000 in comparison with SR 6.8 Billion at the end of the First Half of 1999.
The customers' deposits increased by SR 1.5 Billion approximately totaling SR 10.1 Billion compared with the SR. 1.6 Billion during the last year.
Due to those positive results, the Bank could be able to increase the shareholders' equity to SR. 1.8 Billion compared with SR1.6 Billion during the Year of 1999.
In his comment, Dr. Abdul Aziz Abdullah Al Ohali, Chairman of the Board of The Saudi Investment Bank, expressed his complete satisfaction with these remarkable results which are considered the highest in the Bank's history. He said that the Bank has been rigorously striving to develop its business through utilizing its available resources and rely on its own resources to support its capital base.
On the other hand, the General Manager of the Saudi Investment Bank, Mr. Saud Al Saleh stated , "The efficiency in managing the Bank's resources has positively affected its results and enabled it to increase the volume of its business and diversify its services to a wider client base.
The Bank has also recently finalized two strategic initiatives i.e. agreement on formation of American Express Saudi Arabia Ltd and Saudi Orix Leasing Co. Ltd. By this step, the Bank has succeeded in targeting some new investment products and services as part of its goals set forth in its Fifth Strategic Plan which was adopted by the Board of Directors back in 1997, in order to boost its leading role in providing corporate banking services and widen retail banking scope".
It is worthy to mention that the Bank has, over the past ten years (1989-2000), increased its capital from SR 90 Million to SR 1000 Million, total shareholders' equity from SR 221 Million to about SR 1,800 Million, its assets from SR 5,000 Million to more than SR 13,300 Million, its deposits from SR 3,000 Million to SR 10,100 Million and its loan portfolio from SR 621 Million to more than SR 7,200 Million. The compound growth during the last ten years has reached 38% per annum.
