10th Oct 2006 13:04
HSBC Holdings PLC10 October 2006 The following news release was issued today by SABB - The Saudi British Bank, a40 per cent indirectly-held associate of HSBC Holdings plc. THE SAUDI BRITISH BANK THIRD QUARTER 2006 RESULTS - HIGHLIGHTS • Net profit of SAR2,455 million (US$655 million) for the nine months ended 30 September 2006 - up SAR581 million (US$155 million) or 31.0 per cent over the same period in 2005. • Customer deposits of SAR59.7 billion (US$15.9 billion) at 30 September 2006 - up SAR14.1 billion (US$3.8 billion) or 30.9 per cent over 30 September 2005. • Loans and advances to customers of SAR41.2 billion (US$11.0 billion) at 30 September 2006 - up SAR1.6 billion (US$0.4 billion) or 4.0 per cent over 30 September 2005. • Total assets of SAR77.5 billion (US$20.7 billion) at 30 September 2006 - up SAR10.1 billion (US$2.7 billion) or 15.0 per cent over 30 September 2005. • Earnings per share of SAR6.55 (US$1.75) for the nine months ended 30 September 2006 - up 31.0 per cent from SAR5.00 (US$1.33) over the same period in 2005(^). (^) Earnings per share for the nine months ended 30 September 2005 have beenadjusted to reflect a 1:2 bonus issue approved at the Annual General Meetingheld on 21 March 2006 and a 5:1 share split effective 8 April 2006. Commentary SABB recorded a net profit of SAR2,455 million (US$655 million) for the ninemonths ended 30 September 2006. This represents an increase of 31.0 per centover the SAR1,874 million (US$500 million) earned in the same period in 2005.Earnings per share increased to SAR6.55 (US$1.75) compared to SAR5.00 (US$1.33)for the same period last year(^). Customer deposits increased to SAR59.7 billion (US$15.9 billion) at 30 September2006 from SAR45.6 billion (US$12.2 billion) at 30 September 2005. Loans and advances to customers increased to SAR41.2 billion (US$11.0 billion)at 30 September 2006 from SAR39.6 billion (US$10.6 billion) at 30 September2005. The bank's investment portfolio totalled SAR16.6 billion (US$4.4 billion) at 30September 2006, down from SAR16.9 billion (US$4.5 billion) at 30 September 2005. John Coverdale, managing director of SABB, said: "SABB's focus on its corebanking businesses has continued to deliver robust growth and results for itsshareholders. The expected impact on income resulting from a turbulent stockmarket in the first half of the year has been absorbed, and SABB is well placedfor future growth. "Operating revenues have grown by 30.1 per cent compared to the same period in2005, while our cost base has increased 34.1 per cent. SABB continues to investin strategic technology, sales and service delivery channels in order to enhancecustomer service and grow the business. "The credit quality of our various portfolios remains sound and delinquenciesare in line with anticipated increases due to growth in our cards and personalloan businesses. Deposit growth has been strong over the past few months asinvestors have rebalanced their portfolios and several corporate clients havemobilised funds for significant projects. Capital and liquidity positions remainvery strong. "The third quarter of 2006 saw the formal establishment of our investmentbanking affiliate, HSBC Saudi Arabia Ltd, a key milestone in SABB's evolutionfrom a traditional bank to a diversified financial services group. "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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