The Saudi Investment Bank announced that during the First Half of 2003, it has achieved net profits exceeding SR 221 Million compared with SR 200 Million for the same period a year earlier, with an increase of 10.5%.
The Income Statement has shown a significant growth in most income categories from operations such that the fees from banking services has increased to SR. 67.5 Million compared with the same period during the last year, i.e. with an increase of 31%. Availing the improved situation in the local and international markets, the Bank sold a part of its investments by which it achieved gains totaling SR. 52.8 Million. As a result, the Bank's operating income rose to SR. 358.7 Million.
On the expenses side, the Bank continued to follow its conservative policy towards setting aside additional sufficient provisions in order to enable it to expand its lending activities, that a provision of SR. 37 Million was made compared with SR 20 Million for the same period during the last year i.e. with in increase of SR. 17 Million . The Bank also continued to maintain its efficiency ratio increasing to 27.9% and which is considered the highest among the Saudi Banks. The above positive results are reflected in return on the shareholders' equity which rose to 19.58% and return on the assets that reached to 2.26%.
The Balance Sheet highlighted the growth in loans portfolio which increased to SR. 10,244 Million compared with SR. 9,372 Million for the same period a year earlier, with an increase of SR. 872 Million.
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.
Dr. Abdul Aziz Al- Abdullah Al Ohali, expressed his happiness with these positive results achieved by the Bank and its substantial business growth.
On the other hand, Mr. Saud 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.
