The Saudi Investment Bank announced that its net profits until the end of the Third Quarter of 1999 have climbed to SR 188 Million compared with SR 182 Million during the same period last year. An increase of 3.5%. The results thus achieved are a further manifestation of the sustained growth of the Bank's business, its capability to compete and succeed 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 highlights of the Income Statement demonstrate that the profits achieved from bank services fees and foreign exchange have soared by 30% or SR 60 Million compared to SR 52 Million or 28% of the profits achieved during the same period last year. The profits from the Bank's investment portfolio have increased by 18% amounting to SR 177 Million compared to SR 150 during the same period last year.
On the expenses side, the Bank continues to keep the administrative expenses under control and has been able to reduce operating expenses. The Bank also continues to setting aside further provisions following the conservative approach adopted some years back, despite continuous decrease in the non-performing loans portfolio. The coverage ratio for the non-performing loans portfolio provision has reached more than 250% which is considered as the highest coverage ratio among the Saudi banks.
As regards to the Balance Sheet highlights, the customers' current, saving and term deposits increased by SR 833 Million (i.e. 12%), reaching SR 7,836 Million in total compared to SR 7,003 Million last year.
The Bank continues to expand its lending activities. The Bank's loans portfolio has increased by 7% which amounted to SR 6,831 Million compared to SR 6,383 Million during the same period last year. The total shareholders' equity rose by 10% to reach SR 1,704 Million as compared with the SR 1,552 Million in 1998.
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 in terms of profits and balance sheets figures. He confirmed that the Bank continues to show sustained growth in its activities. He considered the results as a clear indication of the Bank's capability and potential to utilize its available resources and its operational efficiency which he considered as the highest among the banks in the region.
Mr. Saud Saleh Al Saleh, the General Manager of the Bank, said that the Bank has succeeded in implementing its strategy that focuses on the quality of its services and products and the expansion of its customer base. This strategy will enable the Bank to become ever more actively engaed in the market thus increasing its returns.
As regards the Bank's activities to address the Year 2000 Problem, the General Manager confirmed that the Bank has successfully completed its Project to replace and improve its automation systems in preparation for the Year 2000. This project had always been a top priority for the Bank management since its beginning throughout its different stages until it was successfully completed in June 1999, when the Bank achieved Y2K readiness. Recently, the Bank has confirmed to all of its customers its successful completion of this important Project.
