The Saudi Investment Bank announced that its net profits until the end of the Third Quarter of 2000 have reached SR 213.4 Million compared to SR 188.4 Million during the same period last year. An increase of 13.3%. The net profits for the third quarter have reached SR 71.9 Million compared to SR 61.1 Million during the same quarter last year. This is an increase of 17.7%.
The results come as a clear manifestation of the Bank's continued growth in all levels. The figures of the Income Statement has shown a significant increase in the profits achieved from bank services fees, which had reached SR 65.5 Million compared to SR 42.9 Million during the same period last year. This is an increase of more than 52%. Service Fees now represent 30% of the Bank's overall net profit. The profits from the Bank's investment portfolio have reached SR 221.3 Million compared to SR 176.6 Million during the same period last year.
On the expenses side, the Bank continues to manage its expenses to achieve the best Profit/Expenses ratio amongst Saudi and regional banks. The ratio stands now at less than 30%, which means that the Bank realises a profit of SR 3.30 for each Riyal spent. The Bank has also continued to avoid setting aside further provisions despite the availability of sufficient reserves to cope with any adverse situation, which might affect the Bank's loans portfolio. In this regard, the non-performing loans portfolio provision has reached more than 180% which is considered the highest coverage ratio amongst the Saudi banks.
The Balance Sheet has also increased by 9.7% to reach a total of SR 13,600 Million compared to SR 12,400 Million during of the same period last year. The Bank's loans portfolio has increased by 7% which amounted to SR 7,311 Million. The investment portfolio has increased by 30% which amounted to SR 4,350 Million compared to SR 3,345 Million during the same period last year. The Bank deposits have also reached SR 10,000 Million compared to SR 8,900 Million.
Dr. Abdul Aziz Abdullah Al Ohali, Chairman of the Board of The Saudi Investment Bank, expressed his optimism in the Bank's future. Dr. Ohali also expressed his confidence in the Bank's continued growth in its activities and profits. He affirmed that the Bank will continue to achieve remarkable results and will continue to be a major player in the local market.
It is noteworthy to mention that the Bank has succeeded to increase its Capital from SR 90 Million to SR 1,000 Million during the period 1990-2000. During the same period, the Shareholders Equity, Assets, Deposits and Loans have also increased from SR 234 Million to SR 1,900 Million, SR 4,600 Million to SR 13,600 Million, SR 3,000 Million to SR 10,000 Million and SR 1,100 Million to SR 7,300 Million respectively. The compound growth during the last ten years has reached 35.1% per annum.
