12th Jul 2005 10:01
HSBC Holdings PLC12 July 2005 The following news release was issued today by The Saudi British Bank, a 40 percent indirectly-held associate of HSBC Holdings plc. THE SAUDI BRITISH BANK FIRST HALF 2005 RESULTS - HIGHLIGHTS *Net profit of SAR1,200 million (US$320 million) for the six months ended 30 June 2005 - up SAR366 million (US$98 million) or 44.0 per cent over the same period in 2004^. *Customer deposits of SAR44.5 billion (US$11.9 billion) at 30 June 2005 - up SAR5.2 billion (US$1.4 billion) or 13.2 per cent over 30 June 2004. *Loans and advances to customers of SAR35.4 billion (US$9.4 billion) at 30 June 2005 - up SAR7.4 billion (US$1.9 billion) or 26.6 per cent over 30 June 2004. \* Total assets of SAR60.5 billion (US$16.1 billion) at 30 June 2005 - up SAR10.5 billion (US$2.8 billion) or 21.0 per cent over 30 June 2004. *Earnings per share of SAR24.00 (US$6.40) for the six months ended 30 June 2005 - up 44.0 per cent from SAR16.67 (US$4.45) over the same period in 2004^. ^ Net profit and earnings per share for the six months ended 30 June 2004 havebeen restated to reflect the adoption of the revised International AccountingStandard 39 - Financial Instruments: Recognition and Measurement. Commentary The Saudi British Bank (SABB) recorded a net profit of SAR1,200 million (US$320million) for the six months ended 30 June 2005. This represents an increase of44.0 per cent over the SAR834 million (US$222 million) earned in the same period in 2004. Earnings per share increased to SAR24.00 (US$6.40) compared toSAR16.67 (US$4.45) for the same period last year^. Customer deposits increased to SAR44.5 billion (US$11.9 billion) at 30 June 2005 from SAR39.3 billion (US$10.5 billion) at 30 June 2004. Loans and advances to customers increased to SAR35.4 billion (US$9.4 billion) at 30 June 2005 from SAR28.0 billion (US$7.5 billion) at 30 June 2004. The bank's investment portfolio totalled SAR17.0 billion (US$4.5 billion) at 30June 2005, an increase from SAR15.4 billion (US$4.1 billion) at 30 June 2004. Geoff Calvert, managing director of The Saudi British Bank, said: "First halfresults have been very strong. Operating revenues continue to trend well above2004 levels. While non-funds income continues to benefit from a buoyant localequity market, growth has been strong across all areas. The bank's cost:incomeratio has continued to improve due to successful management of the cost basewhile investing in new growth opportunities. Our loan and deposit growth hasbeen strong, in part reflecting good macro-economic conditions in the Saudieconomy. Credit quality remains sound with a continued low level of provisionsfor credit losses. Capital and liquidity positions remain strong. "Following the success of the first eurobond issued by a Saudi company in thefirst quarter of 2005, SABB completed another first with the closing of afunding deal with the International Finance Corporation to support SABB's Sharia compliant Al Amanah Islamic Personal Home Loan Financing product. "The Saudi British Bank has been chosen as 'Best Equities House in the Kingdomof Saudi Arabia for 2005' by Euromoney magazine. The award recognises the bank's leading position in the banking sector. "All areas of the bank are performing well. We continue to look for newopportunities and develop new products and services for our customers in theKingdom. "The Directors have approved the payment of a net interim dividend of SAR10.00per share (gross dividend of SAR10.52 per share). This represents a total grossinterim dividend payment of SAR526 million, an increase of 11.8 per centcompared to the same period last year. "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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