Saudi British Bank profits up for first half 2002

The Saudi British Bank, an associate company of the HSBC Group, recorded a net profit of SAR486.7 million (US$129.8 million) for the six months ended 30 June 2002.

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By  Massoud Derhally Published  July 14, 2002

The Saudi British Bank, an associate company of the HSBC Group, recorded a net profit of SAR486.7 million (US$129.8 million) for the six months ended 30 June 2002.

The results represent an increase of 15.2 per cent over the SAR422.5 million (US$112.7 million) earned in the same period in 2001. Earnings per share increased to SAR12.17 (US$3.25) compared to SAR10.56 (US$2.82) for the same period last year.

When asked what he attributed the positive results to, David Hodgkinson, managing director of Saudi British Bank told ITP.net, “The Bank's robust performance was a result of useful contributions from all lines of business. Particular mention must be made of the growth in non-funds income following an increase in assets under management. Operating costs were closely monitored and hence only a marginal increase in costs was recorded.”

The bank’s customer deposits increased to SAR33.1 billion (US$8.8 billion) at 30 June 2002 from SAR30.5 billion compared to (US$8.1 billion) at 30 June 2001, marking an increase of liquidity in the market.

“The Bank's results must be viewed in the light of the current low interest rate environment and I would say that our results are in line with our expectations,” Hodgkinson added. “Our results for the first six months are encouraging. Operating revenues, excluding gains on investments, continue to grow.”

The bank’s investment portfolio totalled SAR21.5 billion (US$5.7 billion) at 30 June 2002, a small increase from SAR21.4 billion (US$5.7 billion) at 30 June 2001.

“Our Al Amanah range of Islamic banking products has been well-received. We now have three branches dedicated to this area, in addition to 17 outlets, which also provide Al Amanah banking services,” added Hodgkinson.

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