Saudi British Bank net profit up 50.8 pct in H1

RIYADH - Saudi British Bank (SABB), which is 40 percent owned by HSBC, said on Tuesday its first-half net profit rose 50.8 percent to 1.809 billion riyals ($482 million) on the same period a year ago.

By (Reuters)

  • Follow us on
  • google-news
  • whatsapp
  • telegram

Published: Tue 11 Jul 2006, 7:57 PM

Last updated: Sat 4 Apr 2015, 3:08 PM

But on a quarterly basis, the announcement means SABB’s net profit in the second quarter of 2006 rose by less than 11 percent to 823 million riyals, against 744 million riyals for the same period last year.

Net profit in the first quarter rose more than 116 percent from its level up to the end of March 2005.

SABB said deposits reached 55.1 billion riyals at the end of June, up 23.8 percent from June 2005, while loans rose 10.5 percent to 39.1 billion riyals.

Total assets rose 20.3 percent to 72.8 billion riyals, it added.

“Operating revenues, excluding gains on non-trading investments, have grown by over 52 percent compared to the comparable period in 2005, and customer deposit growth accelerated during the year,” John Coverdale, managing director of SABB, said in a statement issued in London by HSBC.

“Credit quality remains sound and our capital and liquidity positions remain very strong,” he added.

The first-half results showed the strength of SABB’s core and well-diversified banking businesses, it added.

“This underlying strength has enabled the bank to weather the volatile stock market conditions of the last few months and places it on a solid footing for future growth,” Coverdale added.

Analysts fear a recent downturn in the stock market could hit Saudi bank earnings this year, although first quarter results have proven to be strong.

Around 40 percent of Saudi banks’ income in 2005 came from non-lending operations, such as brokerage activity, asset management and fees from share offerings.

Saudi bank lending to consumers for purposes other than purchases of real estate or other assets surged more than 1,500 percent between 2002 and July last year. Much of that is expected to have poured into the stock market.

More news from