11th Apr 2006 10:00
HSBC Holdings PLC11 April 2006 The following news release was issued today by SABB - The Saudi British Bank - a40 per cent indirectly-held associate of HSBC Holdings plc. SABB FIRST QUARTER 2006 RESULTS - HIGHLIGHTS • Net profit of SAR986 million (US$263 million) for the quarter ended 31 March 2006 - up SAR530 million (US$141 million), or 116.3 per cent, over the same period in 2005. • Customer deposits of SAR54.5 billion (US$14.5 billion) at 31 March 2006 - up SAR12.2 billion (US$3.3 billion), or 28.8 per cent, over 31 March 2005. • Loans and advances to customers of SAR39.5 billion (US$10.5 billion) at 31 March 2006 - up SAR7.2 billion (US$1.9 billion), or 22.3 per cent, over 31 March 2005. • Total assets of SAR73.7 billion (US$19.7 billion) at 31 March 2006 - up SAR16.0 billion (US$4.3 billion), or 27.7 per cent, over 31 March 2005. • Earnings per share of SAR2.63 (US$0.70) for the quarter ended 31 March 2006 - up 116.3 per cent from SAR1.22 (US$0.32) over the same period in 2005.^ ^ Earnings per share for the quarter ended 31 March 2005 have been diluted to reflect a 1:2 bonus issue approved at the Annual General Meeting held on 21 March 2006 and a 5:1 share split effective 8 April 2006. Commentary SABB recorded a net profit of SAR986 million (US$263 million) for the quarterended 31 March 2006. This represents an increase of 116.3 per cent over theSAR456 million (US$122 million) earned in the quarter ended 31 March 2005.Earnings per share increased to SAR2.63 (US$0.70) compared to SAR1.22 (US$0.32)for the first quarter in 2005.^ Customer deposits increased to SAR54.5 billion (US$14.5 billion) at 31 March2006 from SAR42.3 billion (US$11.3 billion) at 31 March 2005. Loans and advances to customers increased to SAR39.5 billion (US$10.5 billion)at 31 March 2006 from SAR32.3 billion (US$8.6 billion) at 31 March 2005. The bank's investment portfolio totalled SAR18.3 billion (US$4.9 billion) at 31March 2006, an increase from SAR16.4 billion (US$4.4 billion) at 31 March 2005. John Coverdale, managing director, said: "SABB has built upon the momentumgenerated last year and has delivered strong first quarter results well above2005 levels. "Operating revenues have benefited from the exceptional growth seen in the localequity market in the first two months of the year, and robust contributions fromour core banking activities. The bank's cost:income ratio has continued toreduce despite incurring higher overheads to support business growth, and theloan portfolio remains sound as reflected in the low provision for creditlosses. "On 11 February 2006 The Saudi British Bank re-branded as SABB and adopted theHSBC Hexagon logo demonstrating the close relationship that exists between SABBand our global partner. "In early March, SABB's credit rating was upgraded from A- to A by Standard &Poor's and currently equals the highest ranking for any Saudi bank. "Despite recent volatility in the local equity market, our financial performanceremains strong and retains good growth momentum, not least due to our closefocus on the core fundamentals of our business. "We thank our customers for their continued support, and our staff for theircommitment and contribution to the bank's success." This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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