The Saudi Investment Bank announced that during the First Quarter of 2004, it has achieved net profits exceeding SR 125.6 Million compared with SR 100.8 Million for the same period a year earlier, with an increase of more than 24%.
The net income from commissions for the current period rose to SR 133.9 Million i.e. with an increase of SR 27.9 Million 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 a substantial growth reaching SR 65 Million representing 51% of the net profits, and with an increase of 23% over what was achieved during the same period a year earlier. With its resources and means, the Bank could be able to avail the improved situation in the share market to achieve higher service fees.
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, as the Bank increased its possible loan loss provision at 53.9%, from SR 13 Million to SR 20 Million.
The Balance Sheet highlighted growth of the Bank's assets for this year which increased by SR 3,180 Million reaching to SR 23,561 Million as of 31 March 2004, with an increase of 15.6% compared with the same period in the last year. At the same time, the Bank’s investment and loans portfolios increased at 20.8% and 23.6% respectively.
On the liabilities side, customers' deposits in the Bank increased by SR 1,227 Million, reaching to SR 16,450 Million, with the increase of 8% over the balance for the same period in the last year.
The Bank also continued to maintain its efficiency ratio increasing to 27%, 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 18.4% and return on the assets that reached 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’s success in diversifying its services, its products and its business scope provided it an opportunity to balance and increase its profits sources to keep up its business growth and expansion of its client base. He highlighted the Bank’s efforts to upgrade its potentials by introducing internet banking services soon, as well as improving the standard of telephone banking services. The Bank is at present increasing the number and standard of the branches, as a number of new branches are currently being constructed which were designed in accordance with the highest standards to provide an environment suitable for the clients’ expectations and in accordance with the Bank’s plans to expand retail banking services, as well as providing an opportunity to expand to new regions such as Al Ahsa and Al Qaseem..
