The world's local bank
Saudi British Bank 2001 annual results
16 January 2002
The following news release was issued today by The Saudi British Bank, an indirectly-held 40 per cent associate of HSBC Holdings plc.
- Net profit of SAR830 million (US$221 million) for the year ended 31December 2001 - up SAR87 million (US$23 million) or 11.7 per cent over 2000.
- Customer deposits of SAR31.5 billion (US$8.4 billion) at 31 December 2001 - up SAR3.1 billion (US$0.8 billion) or 10.9 per cent over 31 December 2000.
- Loans and advances to customers of SAR16.0 billion (US$4.2 billion) at 31 December 2001 - up SAR0.1 billion (US$0.03 billion) or 0.6 per cent over 31 December 2000.
- Total value of investment portfolio stood at SAR21.8 billion (US$5.8 billion) at 31 December 2001 - up SAR3.4 billion (US$0.9 billion) or 18.5 per cent over 31 December 2000.
- Total assets of SAR41.9 billion (US$11.2 billion) at 31 December 2001 - down SAR1.4 billion (US$0.4 billion) or 3.2 per cent below 31 December 2000.
- Earnings per share of SAR20.75 - up from SAR18.56 (adjusted for increased capital following a 1:4 bonus share issue in March 2001).
Commentary
The Saudi British Bank (SABB) recorded a net profit of SAR830 million (US$221 million) for the year ended 31 December 2001. This represents an increase of 11.7 per cent over the SAR743 million (US$198 million) earned in 2000.
Customer deposits increased to SAR31.5 billion (US$8.4 billion) at 31 December 2001 from SAR28.4 billion (US$7.6 billion) at 31 December 2000, despite the continuing decline in interest rates.
Loans and advances to customers increased to SAR16.0 billion (US$4.2 billion) at 31 December 2001 from SAR15.9 billion (US$4.2 billion) at 31 December 2000. There has been a slow pick up in demand for commercial credit. The bank's personal lending portfolio recorded steady growth.
The bank continued to deploy available liquidity in a diversified investment portfolio during 2001. As a result, the total value of the bank's investment portfolio increased to SAR21.8 billion (US$5.8 billion) at 31 December 2001 from SAR18.4 billion (US$4.9 billion) at 31 December 2000.
The basis of measurement and recognition of financial instruments has changed from the year 2000 as a result of the first implementation of International Accounting Standard - 39 in 2001.
David Hodgkinson, managing director, said: "Our performance for 2001 was in line with our expectations. Despite lower interest rates, an increase in operating revenues was recorded. The increase in net fees and commission was encouraging and 'funds under management' increased by 87 per cent.
"New products launched during the year were well received. Our Al-Amanah range of products allows customers to opt for their preferred method of investment or financing. In particular, the Al-Amanah Home Ownership scheme launched during the year caters to the growing customer demand for housing in Saudi Arabia.
"We aim to provide our customers with improved services through a broad range of delivery channels via traditional and electronic means, and market research indicates that this is proving popular with customers.
"The Board has recommended a final net dividend of SAR9 per share. The total net dividend for 2001 will amount to SAR14 per share as an interim net dividend of SAR5 was paid in August 2001. The net dividend is payable on the bank's enhanced capital which increased by 25 per cent in 2001 after the issue of bonus shares in the ratio 1:4. As a result, the total gross dividend will increase by 34 per cent over 2000.
"We thank our customers for their steadfast support and our staff for their dedicated efforts during the year."
Related links
Useful tools
Increase font
Decrease font