15th Apr 2008 14:29
HSBC Holdings PLC15 April 2008 The following news release was issued today by The Saudi British Bank (SABB), a40 per cent indirectly held associate of HSBC Holdings plc. THE SAUDI BRITISH BANK FIRST QUARTER 2008 RESULTS - HIGHLIGHTS • Net profit of SAR757 million (US$202 million) for the three monthsended 31 March 2008 - up SAR141 million (US$38 million), or 22.8 per cent,compared with SAR616 million (US$164 million) for the same period in 2007. • Operating income of SAR1,191 million (US$318 million) for the threemonths ended 31 March 2008 - up SAR163 million (US$44 million), or 15.9 percent, compared with SAR1,028 million (US$274 million) for the same period in2007. • Customer deposits of SAR78.4 billion (US$20.9 billion) at 31 March2008 - up SAR18.6 billion (US$5.0 billion), or 31.1 per cent, compared withSAR59.8 billion (US$15.9 billion) at 31 March 2007. • Loans and advances to customers of SAR66.6 billion (US$17.8 billion)at 31 March 2008 - up SAR23.9 billion (US$6.4 billion), or 56.0 per cent, fromSAR42.7 billion (US$11.4 billion) at 31 March 2007. • The bank's investment portfolio totalled SAR23.7 billion (US$6.3billion) at 31 March 2008 compared with SAR17.6 billion (US$4.7 billion) at 31March 2007. • Total assets of SAR106.4 billion (US$28.4 billion) at 31 March 2008 -up SAR26.9 billion (US$7.2 billion), or 33.8 per cent, over 31 March 2007. • Earnings per share of SAR2.02 (US$0.54) for the three months ended 31March 2008 - up 22.8 per cent from SAR1.64 (US$0.44) for the same period in2007. Commentary SABB recorded a net profit of SAR757 million (US$202 million) for the threemonths ended 31 March 2008. This represents a 22.8 per cent increase comparedwith the first quarter of 2007 and a 7.4 per cent increase compared with thefourth quarter of 2007. SABB has achieved profit growth in each of the last fivequarters. John Coverdale, Managing Director of SABB, said: "SABB's first quarter 2008results are very encouraging and continue to build upon the strong core businessfoundations that we have established. Robust deposit inflows during the quarterhave been more than sufficient to support the quality loan growth and expansionof our investment portfolio. Our investment strategy continues to focus on SaudiGovernment bonds, Treasury bills and investment grade instruments which haslargely protected our shareholders from the global problems surroundingStructured Investment Vehicles (SIVs) and sub-prime Collateralised MortgageObligations (CMOs). "The SAR23.9 billion (US$6.4 billion) increase in loans and advances compared to31 March 2007 reflects the underlying strength of the Saudi economy andincreased project funding requirements from the corporate sector. This assetgrowth has contributed to a 20.1 per cent increase in net special commissioncompared to the same period in 2007. Excluding the higher contribution from thebrokerage and mutual funds businesses, core banking non-funds income has grownby SAR105 million (US$28 million), or 63.2 per cent, compared to the firstquarter of 2007. "Cost growth of SAR35 million (US$9 million) or 10.9 per cent compared to thefirst quarter of 2007 is due to an increase in headcount of 379 or 13.6 percent. The first quarter 2008 charge for bad debts is SAR25 million (US$7 million) lower than the same period last year due to lower consumer finance defaults andhigher recoveries. The bank's capital and liquidity positions remain strong. "In conjunction with our joint venture investment bank, HSBC Saudi ArabiaLimited, and our insurance associate, SABB Takaful, SABB is able to offer acomprehensive range of financial services within Saudi Arabia. This localability is complemented by our close relationship with HSBC with whom we candeliver joined-up global financial solutions for our valued customers. "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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