Despite decreasing commission rates, the net income from commissions for the current period rose to SR 363 Million with an increase of 5% 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 225 Million , with an increase of 79% over what was achieved during the same period a year earlier. 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 its production sectors, as the Bank increased its possible loan loss provision at 63%, from SR 42,266 Million to SR 69,000 Million.
The Balance Sheet highlighted growth of the Bank's assets for this year which increased by SR 2,604 Million reaching to SR 21,457 Million as of 30 September 2003, with an increase of 14% compared with the same period in the last year. At the same time, the Bank's investment and loans portfolios increased at 18% and 16% respectively.
On the liabilities side, customers' deposits in the Bank increased to SR 14,341 Million by 21% over its balance during the same period a year earlier.
On the liabilities side, customers' deposits in the Bank increased by SR 2,298 Million, reaching to SR 14,489 Million, with the increase of 18% 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 19.6% and return on the assets that reached to 2.2%.
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 that the Bank is pursuing a clear and well studied path of development and expansion through which is 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 these results despite changing international economic scenario, low commission rates and slow growth of the major international economies.
