The Saudi Investment Bank Announces the 1st Quarter 2010 Results

1. The first quarter net income was SAR 21 million compared to SAR 241 million for the same quarter last year with a decrease of 91%, and compared to a net loss of SAR 109 million for the previous quarter.
2. Operating income for the first quarter reached SAR 451 million compared to SAR 318 million for the same quarter last year, an increase of 42%.
3. Net special commission income for the first quarter reached SAR 312 million compared to SAR 241 million for the same quarter last year, an increase of 29%.
4. Earnings per share reached SAR 0.05 compared to SAR 0.53 for the same period last year.
5. Assets as of 31/03/2010 reached to SAR 49,492 million compared to SAR 50,284 million for the same period last year with a decrease of 2%. Investments reached SAR 11,077 million compared to SAR 12,432 million for the same period last year with a decrease of 11%. Loans and advances reached SAR 30,654 million compared to SAR 30,110 for the same period last year with an increase of 2%. Customers’ deposits reached SAR 36,511 million compared to SAR 38,042 for the same period last year with a decrease of 4%.
6. The decrease in net income, despite the increase in the operating income and the significant improvement in the net special commission income, was mainly due to the provisions taken during the period to continue supporting the bank’s financial position.

The Saudi Investment Bank Announces the 2009 Year-End Results

The Saudi Investment Bank announces its annual financial results for the year ending 31 December, 2009 as follows:

1. The fourth quarter net loss was SAR 109 million compared to a loss of SAR 91 million for the same quarter last year with an increase of 20%, and compared to a net income of SAR 203 million for the previous quarter.
2. Operating income for the fourth quarter reached SAR 468 million compared to SAR 427 million for the same quarter last year, an increase of 10%.
3. Net special commission income for the fourth quarter reached SAR 271 million compared to SAR 200 million for the same quarter last year, an increase of 36%.
4. Net income for the year reached SAR 522 million compared to SAR 513 million for last year, an increase of 2%.
5. Earnings per share reached SAR 1.16 compared to SAR 1.14 for the same period last year.
6. Operating income for the year reached SAR 1,517 million compared to SAR 1,938 million for last year, a decrease of 22%.
7. Net special commission income for the year reached SAR 1,014 million compared to SAR 1,026 million for last year, a decrease of 1%.
8. Assets reached to SAR 50,148 million compared to SAR 53,596 million for the same period last year with a decrease of 6%. Investments reached SAR 11,554 million compared to SAR 13,450 million for the same period last year with a decrease of 14%. Loans and advances reached SAR 29,785 million compared to SAR 29,556 for the same period last year with an increase of 1%. Customers’ deposits reached SAR 38,247 million compared to SAR 40,702 for the same period last year with a decrease of 6%.
9. The decrease in the fourth quarter net income was due to the amount of provisions taken to continue supporting the bank’s financial position.

The Saudi Investment Bank Announces the Appointment of the General Manager

The Saudi Investment Bank announced that it has appointed Mr. Musaed Bin Mohammed Al-Mineefi as the General Manager of The Saudi Investment Bank.

Mr. Musaed Bin Mohammed Al-Mineefi joined SAIB in 1992 and worked in different positions, recently holding the position of Deputy General Manager.

Dr. Abdulaziz Abdullah Al O’hali, the Chairman of the Bank, and members of the Board of Directors expressed their confidence in the expertise of Mr. Musaed Bin Mohammed Al-Mineefi and the current management team to lead the Bank towards the path of progress and achievement of its goals, wishing him all success in his new position.

The Saudi Investment Bank Announces the Third Quarter 2009 Net Income of SR 631 Million

The Saudi Investment Bank announced the achievement of net income of 631 Million for the nine months period ended 30 September 2009, compared with SR 604 Million for the corresponding period last year, an increase of 4%.

The net special commission income for the current period declined by 10% to reach SR 744 Million compared with SR 827 Million for the corresponding period last year due to the general decline in the local and international interest rates. The total operating income reached to SR 1,049 Million compared with SR 1,511 Million for the corresponding period last year, a decrease of 31% which was due to the decrease in the gains on non-trading investments which reached SR 86 Million compared to SR 136 Million for the corresponding period last year, in addition to the decrease in the fees from banking services by SR 199 Million to reach SR 176 Million due to the decrease in the volumes of trading in the local and international markets. Earnings per share reached SR 1.40 compared to SR 1.34 for the corresponding period last year.

The Bank booked SR 120 Million in loan loss provision for the nine-month period ending 30 September 2009, to continue to pursue its conservative policy of setting aside additional sufficient provisions in order to enable it to expand its lending activities and to increase its participation in the development of the national economy and the support of its productive sectors.

The Balance Sheet highlighted the growth in the loans portfolio by 2% to reach SR 30,526 Million compared with SR 29,874 Million for the same period last year. The decline in the total assets was due to the decline in the Due From Banks and Financial Institutions from its level at year-end 2008, which came alongside with the decrease in the Due to Banks and Financial Institutions and Customer Deposits in the current year.

The Chairman Dr. Abdulaziz Al-Abdullah Al Ohali, and members of the Board of Directors, expressed their satisfaction with these results which reflect the bank’s strong financial position, stressing at the same time that the Bank is pursuing a clear and well studied path of development and expansion through which it has acquired a prominent place among the financial institutions in the region. This success is of great significance as it was achieved by a national, qualified, and specialized team of young Saudis, of whom the Bank’s management and shareholders are proud.

The Saudi Investment Bank announces the half-yearly net income of SR 428 Million

The Saudi Investment Bank announced it’s achievement of net income of 428 Million for the six months period ending 30 June 2009 compared with SR 538 Million for the corresponding period last year, a decrease of 20%.

The net special commission income for the current period declined by 17% to reach SR 504 Million compared with SR 605 Million for the corresponding period last year due to the general decline in the local and international interest rates. The total operating income reached to SR 679 Million compared with SR 1,096 Million for the corresponding period last year, a decrease of 38% which was due to the decrease in the gains on no-trading investments from 166 Million to 27 Million, in addition to the decrease in the volumes of trading in the local and international markets. Earnings per share reached SR 0.95 compared to SR 1.20 (according to number of shares after the addition) for the corresponding period last year.

The Bank continued to pursue its conservative policy of setting aside additional sufficient provisions in order to enable it to expand its lending activities and to increase its participation in the development of the national economy and the support of its productive sectors. The Bank increased its possible loan loss provision by 200%, from SR 20 Million to SR 60 Million.

The Balance Sheet highlighted the growth in the loans portfolio by 7% to reach SR 30,153 Million compared with SR 28,140 Million for the same period last year. Total deposits declined by 1% to reach SR 36,364 Million. Total assets reached SR 50,731 as of 30 June 2009 compared with SR 51,934 Million for the corresponding period last year.

The Chairman Dr. Abdulaziz Al-Abdullah Al Ohali, and members of the Board of Directors, expressed their satisfaction with these results which reflect the bank’s ability to withstand the effects of the global financial crisis, stressing at the same time that the Bank is pursuing a clear and well studied path of development and expansion through which it has acquired a prominent place among the financial institutions in the region. This success is of great significance as it was achieved by a national, qualified and specialized team of young Saudis, who the Bank’s management and shareholders are proud of.

The Saudi Investment Bank announces its quarterly interim financial results for the period ended March 31, 2009

The Saudi Investment Bank announces its quarterly interim results for the period ended March 31, 2009 as follows:

1. The net income for the first quarter reached SAR 241 million comparing to SAR 258 million for the corresponding quarter of 2008 with a 6.6% decrease and a net loss of SAR 91 million for the previous quarter of 2008,
2. The total operating income for the first quarter reached SAR 318 million comparing to SAR 483 million for the corresponding quarter of 2008 with a 34% decrease,
3. The net commission income for the first quarter reached SAR 241 million comparing to SAR 255 million for the corresponding quarter of 2008 with a 5% decrease,
4. The earning per share reached SAR 0.53 comparing to SAR 0.57 million for the corresponding quarter of 2008,
5. The total assets as of March 31, 2009 reached SAR 50,284 million comparing to SAR 46,123 million as of the corresponding date of 2008 with an increase of 9%. Total investments amounted to SAR 12,432 million comparing to SAR 15,106 million as of the corresponding date of 2008 with a decrease of 18%. The loans portfolio as of March 31, 2009 reached SAR 30,110 million comparing to SAR 24,563 million as of the corresponding date of 2008 with an increase of 23%. Customer deposits as of March 31, 2009 reached SAR 38,042 million comparing to SAR 33,079 million as of the corresponding date of 2008 with an increase of 15%.
6. The decrease in the net income is due to the decrease in the banking services fee. It is worth noting that some items were re-classified from last year presentation.

SAIB Reports Net Profit Increase for the First Half of 2008

The Saudi Investment Bank reported a net profit of SR 538 million as of 30 June 2008, a 1.3% increase compared to SR 531 million for the same period last year.

SAIB’s Net Commission Income increased by 13.5% to SR 605 million compared to SR 533 million last year. Fees on banking services also increased to SR 289 million or 42% compared to SR 203 million of last year. Total Operating Income reached SR 794 million, up by 3% over the SR 773 million in 2007. Net Income for the 2nd Quarter 2008 totalled SR 280 million, a 24% increase as opposed to SR 225 million of 2007. As of 30 June 2008, earnings per share stood at SR 1.20 compared to last year’s SR 1.18.

Despite the sustained expansion witnessed by the opening of new branches and increased business volume, the Bank succeeded to continue controlling expenses. The Total Operating Expenses increased only by 2%.

The Bank’s balance sheet for the period showed an increase in loans and advances by SR 8,412 million or 43% to SR 28,140 million over the same period in 2007, while the liability side showed increased customer deposits of SR 36,863 million, up by 33% from SR 27,695 in 2007. Shareholders equity was up by 10% or SR 667 million, to reach SR 7,115 million.

The Chairman, Dr. Abdulaziz O’Hali, and the members of the Board of Directors, had expressed full satisfaction with the continuous increase in SAIB’s performance and sustained growth particularly in its main activities.

The General Manager, Mr. Saud Saleh AlSaleh, added that the bank’s results reflect the determination of the bank to pursue the best of business opportunities, focusing on primary activities that would translate into substantially good results, as well as the employees’ commendable endeavors to offer the best services to customers. In addition, the ability of the bank to manage operating expenses while continually improving/innovating services had also augmented its capability to efficiently meet customers’ banking needs. With the recent opening of 4 new branches, SAIB’s network Kingdom-wide had reached to 30 today with 16 more to open soon.

Announcement of 2008 First Quarter Financial Results

The Saudi Investment Bank has announced that the Bank’s Net Income for 2008 first quarter was SAR 258 million, a decline of 16% down from SAR 306 million in the first quarter 2007. This decline is due to a non-recurrent investment portfolio losses of SAR 55.4 million. The income fees from banking services increased by 33.8% to reach 160.7 million compared to 120.1 millions last year. Income from FX trading increased by 92% to reach SAR 12.5 million from SAR 6.5 million last year. Total operating income declined to SAR 390 million from SAR 425 million.

The balance sheet revealed that loans and advances increased by SAR 6,748 million to SAR 24,563 million, 38% over the same period in 2007. In the liabilities, customer deposits increased by 20% to SAR 33,079 million from SR 27,601 for the same period in 2007.

It is important to note that the Extraordinary General Assembly has adopted in its meeting dated 09/03/2008 the Board of Directors recommendation to increase the capital from SR 3,910 million to SR 4,500 million with the distribution of one bonus share for each 6.63 shares outstanding.

Dr. Abdulaziz AL-Abdullah Al-Ohali and other members of the Board of Directors have expressed their satisfaction for the Bank’s results and the sustained growth of its main activities.

The Saudi Investment Bank announced net profits of SR 822.2 million for the year ending December 31, 2007

The Saudi Investment Bank announced net profits of SR 822.2 million for the year ending December 31, 2007 compared to net profit of SR 2,006.2 million reported in 2006, representing a decrease of 59%. Earnings per share also decreased to SR 2.10 in 2007, compared with SR 5.13 in 2006. Profits for the year 2007 were below the record results achieved last year primarily due to high revenue related to gains on non-trading investments of SR 672.6 million in 2006, and to the decrease in the fees from banking services. Fees from banking services, primarily share trading and fund management fees, declined by 59% to SR 344.3 million in 2007 compared to SR 831.3 million a year earlier.

For the fourth quarter 2007 the Bank reported a net loss of SR 45.6 million compared to a profit of SR 301.4 million for the same period last year. This decline was due to realized losses in the investment portfolio and to the increase in the loan loss provision by SR 51.7 million. It should be noted that the investment portfolio had a positive increase in value at year-end as reflected in the Shareholders’ Equity accounts. Exchange income increased by 27.6% to reach SR 44.4 million, and special commission income also increased by 2.5% to SR 1,056 million. Operating income for the fourth quarter was SR 1,403 million compared to SR 2,556 million in the prior year, a decrease of 45%.

On the expense side, the Bank continued to apply a policy of setting aside sufficient provisions for loan losses. The provision for 2007 was SR 96.7 million, bringing the total provision for possible loan losses to SR 722.1 million, while the non-performing loans were SR 297 million. The Bank’s efficiency ratio reached 34.51%.

These results are reflected in the Return on Shareholders’ Equity, which was 12.88%, and the Return on Average Assets, which was 1.88%.

It should also be noted that income from operations, without taking into consideration the effect of non-recurring items, achieved a 12.5% growth over 2006.

Net loans outstanding were SR 23,129 million compared to SR 20,691 million in the prior year, an increase of 11.8%.

On the liabilities side, customer deposits increased to SR 32,768 million compared to SR 27,931 million in the prior year, an increase of 17.3%.

Total assets increased to SR 46,542 million as of December 31, 2007 compared to SR 40,845 million for in the prior year, an increase of 13.9%.

Dr. Abdulaziz O’Hali and members of the Board of Directors expressed satisfaction with the achievement of these results. The continued strong business growth and the special situation in the banking sector during 2007 does not reflect on the Bank’s potential and ability to grow according to the plan approved by the Board.

Finally, the Board of Directors recommended an increase in the Bank’s capital from SR 3,910 million to SR 4,500 million by issuing one new share for every 6.63 shares outstanding. Eligibility will be based on the registered shareholders in the Tadawul system at the end of trading on the date of approval by the extra-ordinary general assembly meeting.

Capital Increase Recommended by The Saudi Investment Bank Board of Directors

The Saudi Investment Bank declared that it’s Board of Directors has approved the recommendation to the Extraordinary General Assembly, subject to the approval of the regulatory authorities, to increase it’s capital from SAR 3,910 million (391,016,000 shares) to SAR 4,500 million (450,000,000 shares) being an increase of 15.1% , by issuing one new share for every 6.63 outstanding shares. This will increase the total number of outstanding shares by 58,984,000. This increase coincides with the Bank’s business expansion and it’s future plans. The date of the Extraordinary General Assembly meeting and the eligibility for the new shares will be announced soon after obtaining the approval of the regulatory authorities.

SAIB GCC Equity Funds report stellar year to date performance

The Saudi Investment Bank has announced that GCC Industrial Companies Fund, GCC Companies Fund, and GCC Equity Fund recorded stellar performance year-to-date returns of 33%, 20%, and 17% respectively up to October 20, 2007.

The Saudi Investment Bank was the first Saudi bank to launch mutual funds that invest in the GCC region and the only bank managing an investment in the GCC industrial sector which is a Shariaa compliant fund.

In addition, the bank launched a capital protected fund (GCC Himaya Fund) which offers full protection of the invested capital and a monthly liquidity to investors.

Mr. Saud Al Saleh, CEO of the Saudi Investment Bank, commended these results achieved by the funds especially following fluctuations in the region's equity markets during last year. In addition, he showed confidence about the future prospects of the funds.

Investment Services and Financial Planning Group General Manager Mr. Radi Al Haddad commented that the excellent performance is a result of professionalism of our team and investment decisions that are based on sound research and thorough financial analysis.

The Saudi Investment Bank declares its Financial Results for the Period ending 30/09/2007 with Net Profits of SR 867.8 million

The Saudi Investment Bank announced net profits of SR 867.8 million for the nine-month period ending September 30, 2007 compared to net profits of SR 1,704.9 million for the same period of last year. This represents a decrease of 49.1%. Also the net profit for the current quarter reached to SR 336.3 million compared to SR 326.3 million for the same quarter last year, representing an increase of 3%.

Total operating profits for third quarter were SR 491.2 million compared to SR 453.9 million for the same period last year, an increase of 8.2%. Therefore, the total operating income for the nine month period ending September 30, 2007 reached SR 1,264.2 million compared to SR 2,131.4 million for the same period last year, a decrease of 40.7%. The reason for this decrease is attributed to the decrease in the gains from sale of investments, which are at SR 99.9 million compared to SR 671 million for the same period last year, in addition to the decrease in the fees from banking services.

Net commission income rose to SR 817.9 million compared to SR 747.5 million for the same period of last year, an increase of 9.4%. This increase is a result of restructuring the Bank’s balance sheet and increasing its activity in the main banking activities. The earnings per share reached SR 2.22 compared to SR 4.36 (according to the current number of shares after the increase) for the same period last year.

On the Balance Sheet side, the net loans outstanding increased by 7.8% to reach SR 21,746 million compared to SR 20,180 million for the same period last year.

Customer deposits have increased by 17.9% reaching SR 30,538 million.

Total assets were SR 45,127 million as of September 30, 2007 compared to SR 38,318 million for the same period last year.

Dr. Abdulaziz O’Hali and members of the Board of Directors expressed their satisfaction with the achievement of these positive results, and by the continued substantial business growth.

At the same time, Mr. Saud AlSaleh, General Manager of the Bank, said that the Bank was able to achieve these results by making good use of available opportunities and by the concerted efforts of its employees towards rendering the best possible services to customers.

The Saudi Investment Bank buy 50% of Albaraka Banking Group (“ABG”) from Dallah

The Saudi Investment Bank (“SAIB”) and Dallah Albaraka Holding Company (“Dallah”) announced today that they have signed a memorandum of understanding according to which, SAIB will buy 50% of Bahrain-based Albaraka Banking Group (“ABG”) from Dallah. In return, Dallah will take shares in SAIB for a price that the two parties will agree upon after the conclusion of a full financial and legal due diligence and obtaining the necessary approval from the regulatory authorities in Saudi Arabia and Bahrain as well as the approval of the extraordinary general assembly of SAIB.

SAIB and Dallah have been engaged in exclusive talks during the past six months to finalize the transaction. During the same period, SAIB conducted a review of ABG’s subsidiaries in Bahrain, Jordan, Lebanon, Turkey, Egypt, Tunisia, Algeria, South Africa, Pakistan and Sudan. These countries are among the key trading partners of the Kingdom and the leading importers of Saudi exports in the Arab and Islamic Worlds.

This transaction is an important step towards leveraging the two parties’ vast and long experience and provides a competitive advantage to SAIB since it will achieve diversified sources of income and banking services to cater for the rapidly growing needs in the banking sector.

The Saudi Investment Bank and BNP Paribas Asset Management agree to pursue a strategic cooperation to create a major player in asset management in the Kingdom of Saudi Arabia

The Saudi Investment Bank (“SAIB”) and BNP Paribas Asset Management (“BNPP AM”) announced today that they have signed a protocol establishing the principles of a strategic cooperation in asset management in the Kingdom of Saudi Arabia (“the Kingdom”). SAIB and BNPP AM have been engaged in exclusive talks to finalize the transaction, which will be subject to the drafting and execution of definitive agreements and regulatory approvals. This protocol contemplates that BNPP AM will make an equity investment in a company to be incorporated under the laws of the Kingdom, following the transfer of SAIB's asset management operations to this company.

This strategic cooperation would combine SAIB's established record in asset management in the Kingdom and its thorough knowledge of local and regional markets and BNPP AM's global experience, management style and reach as a major world player in this domain. With this alliance, SAIB and BNPP AM will be well-positioned to leverage their respective expertise, and to capitalize on the significant potential of the asset management market in the Kingdom and in the region. Both institutions have outstanding experience in managing and developing successful joint-ventures.

SAIB has successfully developed a significant presence in asset management in the Kingdom. With 14 mutual funds currently managed and portfolio management services, it offers a wide range of products and services to its clients. The new company will continue to benefit from SAIB's expansion in its banking activities and product offerings for individuals, institutions and corporates, supported by the ambitious development plans for its branch network and distribution channels.

BNPP AM’s contribution and involvement as a shareholder of the new company will include in-depth advice, assistance, and tools to manage its operations. BNPP AM will also provide support and expertise in product development, as well as access to its worldwide distribution capabilities in institutional and retail money management.

Dr. Abdulaziz O’Hali, Chairman of SAIB, expressed his confidence that the new company will take a leading role in the asset management market in the Kingdom and the region. “We are convinced that this alliance will synergize the strengths, capabilities and expertise of both parties to introduce products and services of unparalleled quality and diversity.”

Mr. Gilles Glicenstein, Chairman and Chief Executive Officer of BNPP AM, stated: “We are very excited to join with SAIB in creating a top-class player in this key market. This alliance will bring a new dimension to BNPP AM in the region, where we have been present for more than five years now. It will also bring additional investment opportunities for our clients worldwide”. The new alliance represents a key step in BNPP AM’s strategy. It reinforces its position as a leader in the new markets, with operations and JVs in Argentina, Brazil, China, India, Korea, Morocco, Turkey, representing more than USD 33 billion of assets under management.

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SAIB Extraordinary General Assembly Meeting Resolutions

The Saudi Investment Bank is pleased to announce the concurrence of the Extraordinary General Assembly Meeting held on Wednesday February 28, 2007 to all the items in the agenda as follows:

1. Approval of Board of Directors report to the shareholders on SAIB's results for the year ending December 31, 2006.
2. Approval on SAIB's financial statements for the year ending December 31, 2006.
3. Releasing the Board of Directors for their actions during the period from 01/01/2006 to 31/12/2006.
4. To approve an increase of the Bank’s capital with an amount of SR 1,503,910,000 by capitalizing a part of the Retained Earnings Account, and issuing 150,391,000 bonus shares and distributing them on the basis of one share for each 1.6 outstanding shares among the Bank’s shareholders as of the end of the trading on Wednesday, 10/02/1428H corresponding to 28/02/2007G.
5. Amendment of Article (8A) of SAIB's Article of Association in respect of capital increase from SR 2,406,250,000 to become SR 3,910,160,000.
6. Approval of the Board's proposal to select external auditors for the year 2007, and establishing relevant fees.

The Board of Directors of the Saudi Investment Bank is pleased to invite the shareholders to the Extraordinary General Assembly Meeting to be held at 06:30 p.m. on Wednesday, February 28, 2007

Agenda

1. Approval of Board of Directors report to the shareholders on SAIB's results for the year ending December 31, 2006.
2. Approval on SAIB's financial statements for the year ending December 31, 2006.
3. Releasing the Board of Directors from further responsibility for the period from January 01, 2006 to December 31, 2006.
4. To approve an increase in the Bank’s capital by an amount of SR 1,503,910,000 through capitalizing a part of the Retained Earnings Account by issuing 150,391,000 bonus shares on the basis of 1 share for each 1.6 outstanding shares. The bonus shares to be distributed among the Bank’s shareholders as of the end of the trading on Wednesday, 10/02/1428 H corresponding to February 28, 2007 G.
5. Amendment of Article (8A) of SAIB's Article of Association in respect of a capital increase of SR 1,503,910,000 to become SR 3,910,160,000.
6. Approval of the board's proposal to select external auditors for the year 2007, and establishing relevant fees.

The Saudi Investment Bank Announces Financial Results for the Year Ending December 31, 2006

The Saudi Investment Bank announced record profits of SR 2,006 million for the year ending December 31, 2006.This represents an increase of 88.5% compared to the SR 1,064 million reported in the prior year.Earnings per share for 2006 reached SR 8.34 compared with SR 4.42 in 2005. Total operating profits for the year were SR 2,556 million compared to SR 1,516 million in 2005, an increase of 68.6%. Profits for the Fourth Quarter of 2006 were SR 301.4 million against SR 287.7 million in 2005, an increase of 4.8%.

The above growth is primarily due to increases in most income categories. Net commission income for the current year rose to SR 1,030 million, an increase of 31.1% over the same period last year. Fees from banking services increased to SR 783.9 million, a 19.6% increase, while profits from foreign exchange trading rose by 26.9% to SR 34.8 million, and profits from sale of investments were SR 672.6 million.

On the expense side, the Bank continued to apply a policy of setting aside sufficient provisions for loan losses.The provision for 2006 was SR 96.5 million, bringing the total provision for possible loan losses to SR 777.3 million.This compares to the non-performing loan balance of only SR 217.3 million. The Bank also improved its efficiency ratio to 17.74%.This is among the highest of all the Saudi Banks, and compares with a ratio of 23.21% in the prior year.

The strong results for 2006 are reflected in the Return on Shareholders’ Equity, which rose to 35.48%, and Return on Average Assets, which reached 4.99% compared to 24.14% and 3.12% in the prior year, respectively.

Balance Sheet growth was highlighted by the net loans outstanding, which increased to SR 20,691 million compared with SR 19,794 million for the same period last year. Total assets were SR 40,845 million as of December 31, 2006. On the liability side, customers' deposits remained at last year’s level of SR 27,931 million. Shareholders’ Equity stood at SR 6,001 million compared with SR 5,307 million a year earlier, an increase of 13.1%.

Dr. Abdulaziz O’Hali and members of the Board of Directors expressed their satisfaction with the achievement of these positive results, and by the continued substantial business growth.

The Board of Directors also recommended an increase of the Bank’s capital from SR 2,406 million to SR 3,910 million through the issuance of one bonus share for every 1.6 shares outstanding.

At the same time, Mr. Saud AlSaleh, General Manager of the Bank, said that the Bank was able to achieve these results by making good use of available opportunities and by the concerted efforts of its employees towards rendering the best possible services to customers.

He also added that the Bank opened ten new branches throughout the year: Ghurnatah, Alrayyan, Alsuwaidi, and Alghadeer in Riyadh; Buraidah in Quaseem; Alazziziah in Makkah; and Alrayyan in Dammam. In addition, three Riyadh branches – Prince Salman St., Malaz, and Badiah – were relocated to new offices.

The Bank also launched an Internet share trading service, “Aswaqnet,” to add to the existing internet retail banking services.

In addition, The Bank launched two new close-ended mutual funds, the Global Protected Fund and the Gulf Protected Fund. This brings the number of successful funds managed by the Bank to thirteen.

During the year the Bank launched the new ALASALAH Islamic Banking Program with addition of ten new branches. These Islamic branches work in accordance with Sharia guidelines, and this program will be applied to all new branches. The ALASALAH Islamic Banking services are distinguished by innovation, state-of-the art technology and quality.

The Bank announced its joint venture alliance with Emaar and Amlak, both from the U.A.E., and with Asir joint stock company and Albarakah Investment and Development Co. to establish the first closed Joint Stock Company for real estate financing. The new company will be located in Riyadh and have a capital of SR 1,000 million.

Finally, the Bank also announced it has received approval to establish The Mediterranean & Gulf Insurance & Reinsurance Co. In terms of capital it will be the largest insurance company in Saudi Arabia. The Bank owns 19% of the company, and 25% of the company will be offered to the public in February 2007.

During the year, and for the first time in the Bank’s history, Standard and Poor’s and Fitch – considered to be among the best international rating agencies – both granted the Bank a long term “A-“ ratings.

The Saudi Investment Bank declares its Financial Results for the period ending on 30/09/2006 with profits surging to more than SR 1.705 Billion

The Saudi Investment Bank announced that by the end of the Period ending on 30/09/2006 G, it has achieved net profits up to SR 1.705 Billion compared with SR 776.5 Million for the corresponding Period during the last year, with an increase of 119.6%. The earning per share reached SR 7.09 compared with SR 3.23 for the same period during the last year. The total operating income for the nine months reached SR 2.13 Billion, including SR 671 Million as gains from sale of investments achieved during the First Half of this Year against SR. 1.08 Billion for the same period of the last year, with increase of 96.8%. The profits for the Third Quarter of this Year reached SR 326.3 Million against SR 286.1 Million with an increase of 14.1%.

The above growth is primarily due to increase in most the income categories as the net income from commissions for the current period rose to SR 747.5 Million with an increase of 29.5% over the same period in the last year. Fees from banking services rose to SR 653 Million with 47.4% increase, and profits from foreign exchange trading rose to SR 26.2 Million with 55.8% increase, and profits from sale of investments reached SR 671 Million with an increase of 2686.7 %.

On the expenses side, the Bank continued in applying a policy of setting aside additional sufficient provisions in order to expand its lending activities, that a provision of SR 80 Million has been made, as the possible loan loss provisions balance has now reached SR 763 Million; whereas the non-performing loans balance did not exceed SR 217.1 Million. The Bank also continued to increase its efficiency ratio up to 16.26% considered the highest among the Saudi Banks, compared with 21.36% for the same period during the last year. The above positive results were reflected in the return on the shareholders’ equity that rose to 40.86% and return on the average assets that reached to 5.85% in comparison with 24.61% and 3.21% respectively during the past year.

The Balance Sheet highlighted the growth in net loans portfolio, which increased to SR. 20.180 Billion compared with SR. 19.151 Billion for the same period a year earlier i.e. with an increase of 5.4%.

On the liabilities side, customers' deposits in the Bank rose to SR 25,892 Million compared with SR 24.797 Billion, with the increase of 4.4% over the balance for the same period in the last year.

The Bank’s assets thereby reached to SR 38.318 Billion as on 30/09/2006 compared with SR 36.214 Billion, with the increase of 5.8%.

The Shareholders’ Equity increased SR 5.850 Billion compared with SR 4.929 Billion, with the increase of 18.7%.

Dr. Abdul Aziz Al- Abdullah Al Ohali, and members of the Board of Directors, expressed their happiness with these positive results achieved by the Bank and its substantial business growth.

On the other hand, Mr. Saud Al Saleh, the General Manager of the Bank, said that the Bank could be able to achieve these results due to making good use of available opportunities and due to concerted efforts of its employees towards rendering the best services possible to the customers. The diversification and expansion by the Bank of its services have helped it respond to the needs of its corporate as well retail clients. He added that there has been inauguration of a number of new branches in the Third Quarter of this Year as well as launching of AL ASALA Islamic Banking Program with addition of ten new branches working in accordance with the Sharia guidelines and this pattern has been applied on all new branches. Al Asala is a new product for offering Islamic Banking services distinguished with innovation, state-of-the art technology and quality.

FitchRating agency has assigned The Saudi Investment Bank (A-)

FitchRating agency has assigned The Saudi Investment Bank (A-) for Long Term and (F2) for Short Term with a Stable Outlook. The rating reflects SAIB’s track record of performance, strong profitability, sound asset quality, comfortable liquidity, and satisfactory capitalization.

Mr. Saud Al Saleh has expressed his pleasure for the rating which affirms The Saudi Investment Bank’s financial position.

Standard and Poor’s rating agency have assigned The Saudi Investment Bank (A-)

Standard and Poor’s rating agency have assigned The Saudi Investment Bank (A-) for Long Term and (A-2) for Short Term with a stable Outlook. The rating of SAIB reflects its robust financial performance, good asset quality supported by a conservative strategy, satisfactory liquidity profile, and good capitalization.

Mr. Saud Al Saleh has expressed his pleasure for the rating which affirms The Saudi Investment Bank’s financial position.

With a 156% increase, The Saudi Investment Bank achieves record profits exceeding SR 540 Million for the First Quarter ending on 31/03/2006

The Saudi Investment Bank announced that by the end of the First Quarter of the current year, it has achieved net profits of 540 Million compared with SR 211 Million for the corresponding period last year, an increase of 156%.

The net income from commissions for the current period rose by SR 53.5 Million to reach SR 224.8 Million, an increase of 31.2% over the same period last year. The income from banking services rose to SR 265.9 Million, an increase of 172%. Dividend income from the investment portfolio and gains from the sale of investments reached SR 168.6 Million.

The Bank continued to pursue its conservative policy of setting aside additional sufficient provisions in order to enable it to expand its lending activities and to increase its participation in the development of the national economy and the support of its productive sectors. The Bank increased its possible loan loss provision by 100%, from SR 20 Million to SR 40 Million.

The Balance Sheet highlighted the growth in the Bank's total assets for this year which increased by SR 9.4 Billion reaching SR 41.8 Billion as of 31 March 2006, an increase of 29%. Meanwhile, the Bank’s investment portfolio grew to SR 11.1 Billion (up 36.5%) compared with SR 8.1 Billion for the same period last year. The loans portfolio reached SR 19.8 Billion (up 30.1%) compared with SR 15.2 Billion for the same period last year.

On the liabilities side, customers' deposits in the Bank increased by SR 5.3 Billion to reach SR 29.3 Billion, an increase of 22.3% over the balance for the same period last year.

The Bank also continued to maintain its distinguished efficiency ratio of 13.35% which is considered the best among the Saudi Banks. The above positive results have reflected positively on the return on the average shareholders’ equity which reached 40.1% and the return on the average assets which reached 5.39%.

The Chairman Dr. Abdul Aziz Al- Abdullah Al Ohali, and members of the Board of Directors, expressed their happiness with the positive results which were achieved by the Bank and its substantial business growth, stressing at the same time that the Bank is pursuing a clear and well studied path of development and expansion through which it has acquired a prominent place among the financial institutions in the region. This success is of great significance as it was achieved by a national, qualified and specialized team of young Saudis, who the Bank’s management and shareholders are proud of.

On the other hand, Mr. Saud Saleh Al Saleh, the General Manager of the Bank, said that these results were achieved in spite of the ever changing international and local economic factors. He added that the Bank had recently launched “Aswaqnet”, the Bank’s Internet local share trading service. Aswaqnet will enhance the interaction between the bank and its customers all over the Kingdom. Moreover, ten new branches have been constructed in the Central, Eastern and Western Regions and will be opened during the second quarter of the current Year. The Bank has also launched two new capital-protected funds “Global Protection” and “Gulf Protection”, which will bring the number of funds managed by the Bank to 12 investment funds.

With an 81.3% Increase, The Saudi Investment Bank announces record earnings in 2005

The Saudi Investment Bank (SAIB) announced today its highest earnings to date with a net income of SR 1,064.2 million for the year ended 2005, compared to SR 587.1 million reported in 2004, an increase of SR 477.1 million, or a growth rate of 81.3% compared to the previous year. Earnings per share were SR 30.96, compared to SR 17.08 in the previous year.

Net commission income, namely commission income and investment placements revenue, less special commission expenses, increased to SR 785.7 million compared to SR 587.8 million in 2004.

SAIB’s income statement showed an increase in most operating income items, with fees from banking services totalling 655.7 million for 2005, or an increase of 95.7% over the same period of the previous year.

SAIB continued its conservative policy of maintaining loan loss reserves, with a provision for loan losses this year of SR 100 million, thus making the provision for credit losses SR 688 million, while the balance of non-operating loans did not exceed SR 189 million.

SAIB also continued to maintain its efficiency ratio, which reached 23.21%, which is the best among Saudi banks. These positive results have reflected on SAIB’s return on average equity (ROE) of 24.14%, and return on average assets (ROA) of 3.12%.

These record results, which are considered the highest in the history of the Bank, reflect the growth of SAIB’s business and the increase in its total assets by SR 11,037 million to reach SR 39,581 million at year-end, compared to SR 28,544 million for the same period of the previous year, or an increase of 38.7%. SAIB continued its support of the production sectors of the national economy and increased its balance of loans and advances by 51.9% to SR 19,794 million at year-end, compared to SR 13,031 million the previous year. SAIB’s investment portfolio also increased to SR 11.3 billion, compared to SR 8.5 billion the previous year. This balance includes an investment portfolio in local shares with SR 1.3 billion in unrealized earnings as at 31.12.2005. Moreover, total shareholders’ equity at the end of 2005, stood at SR 5,307 million compared with SR 3,607 million at the beginning of the same year, an increase of 47%.

On the liabilities side of the balance sheet at the end of 2005, SAIB achieved an increase of 37.3% in its customer deposits to more than SR 27,858 million, compared to SR 20,285 million, the previous year.

SAIB’s Board of Directors approved a proposed cash dividend of SR 3.00 per share, and a bonus share distribution of one share for each two-and-a-half shares outstanding. This proposal will be presented to the general assembly for approval, thus raising SAIB’s capital from SR 1,718 million to SR 2,406 million.

Dr. Abdul-Aziz Al-Abdullah Al-Ohali, SAIB’s Chairman of the Board and SAIB’s directors expressed their happiness with SAIB’s outstanding results and the high growth in SAIB’s business, and the Bank’s ability to carve its market share with outstanding capabilities, clear professionalism, and high efficiency in the management of its resources.

Mr. Saud Saleh Al-Saleh, SAIB’s General Manager, emphasized that SAIB’s business model and strategy have allowed its continued growth and progressive success in all the activities and services it has elected to provide to its clients. This strategy is focused on the continued diversification of SAIB’s sources of income, qualification of its workforce, consolidating its leverage, and strengthening its financial resources.

The Saudi Investment Bank increases its capital by 40%

The Saudi Investment Bank declared today that its Board of Directors has approved the recommendation to the Extraordinary General Assembly, and after obtaining the official approval of the regulatory authorities, to increase its capital from SAR 1,718 million to SAR 2,406 million by issuing one new share for every 2.5 outstanding shares. This will increase the total number of outstanding shares by 13.75 million. Additionally, the Bank will also distribute cash dividend at SAR 3 per share for all outstanding shares prior to the capital increase. The date of the General Assembly meeting and the eligibility for the new shares and cash dividend will be announced soon.

With a growth rate reaching 78%, The Saudi Investment Bank achieves record profits up to SR 776.5 Million for the Third Quarter ending on 30/09/2005

The Saudi Investment Bank announced that by the end of the Third Quarter of the current year, it has achieved net profits of 776.5 Million compared with SR 435.9 Million for the corresponding period last year, with an increase of 78%.

The net income from commissions for the current period rose to SR 577.4 Million with an increase of 33.8% over the same period last year. Other income for this period, representing fees from banking services and profits from the investment portfolio and gains from the sale of investments, witnessed substantial growth reaching SR 505.3 Million compared with SR 328.6 Million, with an increase of 53.8%, over what was achieved during the same period a year earlier.

On the expenses side, the Bank continued to apply its policy of setting aside additional sufficient provisions in order to expand its lending activities. A provision of SR 75 Million has been made to raise the loan loss provisions balance to reach SR 664.6 Million although the non-performing loans balance did not exceed SR 189 Million.

The Balance Sheet highlighted substantial growth in the Bank's total assets at the Quarter’s end which increased by SR 10,382 Million reaching to SR 36,214 Million, with an increase of 40.2% compared with the same period last year. Meanwhile, the Bank’s investment portfolio and loans portfolio grew to SR 11,125 Million (up 26.7%) and SR 19,151 Million (up 65.9%) respectively.

On the liabilities side, customers' deposits in the Bank increased by SR 6,900 Million, reaching SR 24,797 Million, with an increase of 38.6% over the balance for the same period in the last year.

The Bank also continued to maintain its distinguished efficiency ratio of 21.36% which is considered the best among the Saudi Banks. The above positive results are reflected positively on the return on the average shareholders’ equity which rose to 24.61% compared with 19.77% last year, and the return on the average assets that reached 3.21% from 2.45% last year.

Dr. Abdul Aziz Al- Abdullah Al Ohali, and members of the Board of Directors, expressed their happiness with these positive results which were achieved by the Bank and its substantial business growth, stressing at the same time that the Bank is pursuing a clear and well studied path of development and expansion through which it has acquired a prominent place among the financial institutions in the region contributed in this great success by a national qualified and specialized team of young Saudi cadres the Bank’s management and shareholders are proud of.

Mr. Saud Saleh Al Saleh, the General Manager of the Bank, said that the Bank had been able to achieve great success on different levels, as it has increased its business in the retail sector and introduced new credit and investment products. In the Third Quarter of this year, SAIB announced the launch of the Opportunities-IPO Closed Fund which joint the other successful investment funds launched by SAIB over the last two years and which have achieved returns beyond expectations. SAIB is at present managing the largest GCC equity fund in the region which has achieved returns of more than 126.55% since its inception on 24/7/2004 and 77.48% returns during the last nine months. He added that the IPO Fund comes as part of the Bank’s plan to utilize its expertise in providing the opportunity for an important sector of investors to benefit from medium and long term investments through IPO markets in order to achieve returns higher than those achieved in the secondary markets. The fund is the first one of its kind to be introduced in the Saudi market. Moreover, SAIB has been able to cover all markets in the neighboring GCC and Arab countries to provide instant brokerage services to its customers. Furthermore, a syndicated loan agreement for US$ 380 Million was executed with a group of international, regional and local banks. The loan was arranged by Citibank, Commerzbank Aktiengesellschaft, Mizuho Corporate Bank Ltd, Raffeisen Zentralbank of Austria, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation, and 18 other banks. The response to this syndication was so high that the coverage ratio reached 190% , which prompted SAIB to increase the loan amount from US$ 200 Million to US$ 380 Million.

The Saudi Investment Bank (“SAIB”) signs USD 380 Million Joint Loan Agreement with International Banks

SAIB announced today the signing of a US $380 million joint loan agreement with a group of international, regional and local banks. The Lead Banks in this joint loan agreement were the US CITIBank, Deutsche CommerzBank, Japanese Mizuho Corporate Bank, Austrian RZB Bank, British Standard Chartered Bank and Japanese Sumitomo Mitsui Bank, among other 18 other local, regional and international consortium.

Given the overwhelming participation, SAIB has agreed to raise the loan from originally 200 millions to 380 million US Dollars.

This huge participation by leading banks reflects SAIB’s distinguished market position and credit worthiness as well as the result of the positive achievements of SAIB over the past years. It is also reflective of their trust in SAIB’s policies and future strategies.

It is worth mentioning that SAIB had a significant growth in its income as of June 30, 2005 to reach over Saudi Riyals 490 millions which is 67% over same period in 2004 and the bank’s liabilities has increased by 53.4%, to exceed Saudi Riyals 34 billions.

With an increase of 66.9%, The Saudi Investment Bank declares its Semi Annual Results, with profits surging to more than SR 490.4 Million

The Saudi Investment Bank announced that it has achieved a net profit exceeding SR 490.5 Million during the First Half of 2005, compared with SR 293.9 Million for the same period the last year. This represents an increase of 66.9%. The earning per share reached SR 14.27 compared with SR 8.55 over the same period last year.

The Income Statement has witnessed significant growth in most of the income categories. Fees from banking services have increased by 83% over the same period last year to reach SR. 274.4 Million. Profit from foreign exchange trading rose to SR 10.5 Million while profit realized from the sale of investments decreased to SR 23.6 Million compared with SR 60.9 Million for the same period last year. The Bank’s total operating income rose to SR. 689.8 Million, in spite of the increase in general expenses that came as a result of the expansion in the Bank’s business and its services, increase in the number of staff and the decrease in the profits realized from sale of investments.

On the expenses side, the Bank continued to follow its conservative policy towards setting aside provisions in order to enable it to expand its lending activities. With a further provision of SR 50 Million, the balance of the credit losses provision stood at SR 642 Million; whereas the non-performing loans balance has not exceed SR 190 Million. The Bank also continued to increase its efficiency ratio which reached 21.7%, considered the best among the Saudi Banks, compared with 27.8% for the same period last year. The above positive results were reflected in the return on the shareholders’ average equity, which rose to 24.69%, and the return on average assets, which rose to 3.16%, in comparison with 21.04% and 2.69% respectively during the past year.

The Balance Sheet highlights the growth in net loans portfolio, which increased to SR. 17,194 Million, compared with SR. 10,835 Million for the same period a year earlier i.e. an increase of 58.7%. At the same time, the Bank’s total investment portfolio grew by 40.9% to reach SR 9,890 Million compared with SR 7,017 Million for the same period last year.

On the liabilities side, customers' deposits in the Bank reached SR 24,465 Million compared with SR 22,201 Million i.e. an increase of 69.4%. As a result, the Bank’s total assets as of 30/06/2005 rose to SR 34,053 Million compared with SR 22,201 Million. In other words, the Bank has succeeded to increase its size by 53.4% in a single year.

The shareholders' equity rose to SR 4,500 Million with an increase of SR 1,515 Million over the same period last year, representing an increase of 50.7%.

Dr. Abdul Aziz Al-Abdullah Al Ohali, and on behalf of the other members of the board, expressed his pleasure with the Bank’s positive results and its continuing substantial business growth.

Mr. Saud Al Saleh, the General Manager of the Bank, said that the Bank has been able to achieve these results by taking advantage of the emerging opportunities and due to the concerted efforts of its employees that are geared towards rendering the best services possible to the customers. The Bank’s diversification and expansion of its services have allowed it to respond to the needs of its corporate and retail clients. The General Manager also noted that the award received by SAIB as the best in Corporate Banking in the Kingdom, as this award has highlighted the Bank’s focus to maintain its leadership in providing services to the corporate sector in the fields of industry, trade, contracting and services, in spite of the diversified services provided to its retail customer base. In the investment services field, the Bank launched 4 new investment funds during the second quarter of 2005, out of which three funds are Shariah compliant and have been approved by the Bank’s Shariah Committee. Accordingly, the Bank offers ten funds to its customers as investment options. The Investment Portfolios Management Group has been created within the organizational structure of the Bank. As a result, a complete team specialized in investment portfolios management has become part of the SAIB organization. This step highlights the importance of supporting the capabilities and the potential of the Bank towards achieving its goal of providing the best investment products, especially in the field of investment portfolio management. Before joining SAIB, the team had been managing a number of investment portfolios in the stock markets and had managed to carve out a big share of the private investment portfolio management market.

SAIB Receives the Saudi Achievement Award 2005 as the Best in Corporate Banking

The Saudi Investment Bank Received the Arabian Business Saudi Achievement Award 2005 as the Best in Corporate Banking. The award was received on Sunday 24 April 2005, at a large business gathering organized by Information & Technology Publishing Co. Ltd. (ITP) and held under the patronage of HRH Prince Sattam Bin Abdulaziz Al-Saud, Deputy Governor of Riyadh. This award is in recognition of the Saudi Investment Bank’s excellence and leadership in providing innovative financial services that are especially suited to the needs of the business and corporate sector. The award is an affirmation of the Saudi Investment Bank’s capability to design and formulate flexible finance programs for the corporate sector and introduce innovative solutions tailor-made to suit the financial needs of corporates of all sizes, which have had a profound impact on vital sectors of the Saudi national economy. Mr. Saud S. Al-Saleh, General Manager of the Saudi Investment Bank, stated that the Bank’s success in diversifying services and products and expanding the scope of its business and operations has awarded it a unique opportunity to assume a distinguished role in the region. He added that the Saudi Achievement Award has come as an acknowledgment of the Bank’s efforts and vast investments in human resources and systems to ensure quality services and superior and flexible products.

With 68% increase, The Saudi Investment Bank reports First Quarter Results, with record profits exceeding SR 211 Million

The Saudi Investment Bank announced that during the First Quarter of the Year 2005, it has achieved net profits exceeding SR 211 Million compared with SR 125.6 Million for the same period a year earlier, with an increase of more than 68%. The earnings per share were recorded at SR 6.14 compared with SR 3.65 over the same period during last year.

The income from banking services rose to SR 97.74 Million with an increase of 61%. Profits from investment portfolio and gains from sale of investments witnessed a substantial growth reaching SR 30.4 Million. With its resources and means, the Bank has been able to avail the improved situation in the share market to achieve higher service fees. The net income from commissions for the current period rose to SR 171.33 Million with an increase of 37.4% over the same period in the last year.

The Balance Sheet highlighted growth of the Bank's assets for this year which increased by SR 8.8 Billion reaching SR 32.4 Billion as of 31 March 2005, with an increase of 37.3% compared with last year. At the same time, the Bank’s investment and loans portfolios increased at 24.5% and 30.6% respectively.

On the liabilities side, customer deposits in the Bank increased by SR 7.5 Billion, reaching SR 23.9 Billion, with an increase of 45.7% over the balance for the same period last year.

The Bank also continued to maintain an efficiency ratio of 23.72% which is considered the best among the Saudi Banks.

The above positive results were reflected in the return on the average shareholders’ equity which rose to 22.82% compared with 18.36%, and return on average assets that reached to 2.81% compared with 2.23% for the same period last year.

The Chairman, Dr. Abdul Aziz Al-Abdullah Al O’hali, and members of the Board of Directors, expressed their happiness with the positive results achieved by the Bank and its substantial business growth, stressing at the same time that the Bank is pursuing a clear and well studied path of development and expansion through which it has acquired a prominent place among the financial institutions in the region. The significance of this success is that it has been achieved by a qualified and specialized team of young Saudis who have earned the trust and pride of the management and the shareholders.

On the other hand, Mr. Saud Saleh Al Saleh, the General Manager of the Bank, said that the Bank’s success in diversifying its services, its products and its business scope provided it the opportunity to increase its profits and to balance their sources in order to keep up its business growth and to continue the expansion of its client base. The Bank is at present increasing the number and the standard of its branches, as several new branches are currently being constructed which were designed in accordance with higher standards to offer an environment suitable to the clients’ expectations and the Bank’s plans to expand its retail banking services, as well as provide it an opportunity to enter new areas such as Al Ahsa, Al Qasim and Makkah Al Mukarramah. He said that the Bank would soon launch Internet banking services which would include share trading, utility bill payment, account transfers, external money transfer etc. The General Manager added that the Bank has recently opened 6 new lounges for local share trading- 4 in Riyadh, and 1 each in Al Ahsa and Jeddah. These lounges have been furnished with all the facilities and designed to provide a luxurious and comfortable atmosphere in which the market can be tracked and watched with ease and tranquility.

With 26.6% increase, The Saudi Investment Bank reports record profits for the Year 2004

The Saudi Investment Bank declared today that it has achieved the highest profits in its history up to SR 587.1 Million by the end of the Year 2004 (2003: SR 463.9 Million), with an increase of SR 123.2 Million representing 26.6% higher than the last year. The earnings per share were recorded at SR 21.35 compared with SR 16.87 over the same period during the last year. The Income Statement witnessed increase in all of its categories. The income from banking services rose to SR 335 Million with an increase of 105.2% higher than the last year.

The Bank continued to follow its conservative policy towards setting aside provisions for possible loan losses, that a provision of SR 130 Million has been made during this year compared with SR 81 Million in the last year, as the possible loan loss provisions balance has reached SR 596 Million, whereas the non-performing loans balance as of 31December 2004 did not exceed SR 218 Million.

The Bank also continued to maintain its high efficiency ratio up to 29.24%, which is considered the highest among the Saudi Banks. The above positive results were reflected in the return on the shareholders’ equity which rose to 19.12% and return on average assets that reached to 2.34%.

The above record results, being the largest in the history of the Bank, reflect the growth of the Bank's business activities and increase in volume of its assets by SR 6,835 Million reaching SR 28,544 Million at the end of this year compared with SR 21,708 Million for the same period during the last year, with an increase of 31.5%. The Bank continued to support the production sectors of our national economy and, thus, could be able to increase its loans portfolio up to SR 13,031 Million at the end of this year compared with SR 10,232 Million during the last year, i.e. with an increase of 27.4%. The total shareholders' equity rose to SR 3,509 Million by the end of this year compared with SR 2,632 Million at the beginning of the same year.

The Board of Directors has approved the recommendation for distribution of net cash dividend at SR 3 per share in addition to share dividend by issuing one new share for each 4 outstanding shares, and this will be presented to the General Assembly Meeting for approval. Accordingly, the Bank’s capital will increase to SR 1,718.7 Million from SR1,375 Million.

On the liabilities side, the Bank, by the end of the Year 2004, was able to increase the customers' deposits, which exceeded SR 20,285 Million with an increase of 40.8% compared with SR 14,404 Million last year.

Dr. Abdul Aziz Al-Abdullah Al-Ohali, Chairman of the Saudi Investment Bank, expressed his and other Board members' happiness with the distinguished results achieved by the Bank, its substantial business growth, its carving out a market share with excellent capability and distinct professionalism as well as its greater efficiency in managing its resources.

On the other hand, Mr. Saud Al-Saleh, the General Manager of the Bank, said that the business pattern and strategy pursued by the Bank has enabled it to continue achieving business growth and ever increasing results whereby it has acquired flexibility to succeed in all business activities and services it has selected to provide to its customers. He explained that many goals have been achieved during the Year 2004, as four new modernly designed branches were inaugurated during the year, which are capable of coping with great developments occurring in the banking sector. There were also 37 Automated Teller Machines (ATMs) added that now the total number of ATMs of the Bank has reached 143. Moreover, five new investment portfolios were introduced which have become very popular among the customers, and their invested funds under the Bank’s management have exceeded SR 2,500 Million. The Bank has also introduced E-Banking services and an array of the services to be provided through the internet will be completed during the Year 2005.

The Saudi Investment Bank Increases its Capital By 25%

The Saudi Investment Bank declared today that it intends to increase its capital by 25%, from SAR 1.375 billion to SAR 1.718 billion by issuing one new share for every four outstanding shares. This will increase the total number of outstanding shares from 27.5 million to 34.3 million. Additionally, the Bank will also distribute cash dividend at SAR 3 per share for all outstanding shares (27.5 million shares) prior to the capital increase. The Board of Directors has approved the recommendation to be submitted to the General Assembly of the bank.

The date of the General Assembly meeting and the eligibility for the new shares and cash dividend will be announced soon.

The Saudi Investment Bank achieves up to SR 435.9 Million for the Third Quarter ending on 30 September 2004

The Saudi Investment Bank announced that up to the end of the Third Quarter of the current year, it has achieved net profits up to SR 435.9 Million compared with SR 347.2 Million for the same period a year earlier, with an increase of 25.5%.

The net income from commissions for the current period rose to SR 431.4 Million with an increase of 18.8% over the same period in the last year. Other income for this period, representing fees from banking services and profits from investment portfolio and gains from sale of investments, witnessed substantial growth reaching SR 328.6 Million , with an increase of 46% over what was achieved during the same period a year earlier, as the Bank could be able to avail the opportunities available in the market for structuring the investment portfolio and achieve prominent investment gains. With its resources and means, the Bank could be able to avail the improved situation in the share market to achieve higher service fees, whereas operating expenses increased due to the bank’s expanding business.

Pursuing its conservative policy, the Bank continued in applying a policy of setting aside additional sufficient provisions in order to enable it to expand its lending activities, increase its participation in development of the national economy and support the production sectors of the economy, as the Bank increased its possible credit loss provision at 52.2%, from SR 69 Million to SR 105 Million, as the possible loan loss balance has reached SR 570.8 Million; whereas the non-operating loans balance as of 31 December 2003 was SR. 195.6 Million only.

The Balance Sheet highlighted growth of the Bank's assets for this year which increased by SR 4,376 Million reaching to SR 25,833 Million as of 30 September 2004, with an increase of 20.4% compared with the same period in the last year. At the same time, the Bank’s investment portfolio grew up to SR 8,781 Million by 24.3% whereas the loans portfolios increased to SR 11,541 Million by an increase of 6.3%.

On the liabilities side, customers' deposits in the Bank increased by SR 3,108 Million, reaching to SR 17,897 Million, with the increase of 21% over the balance for the same period in the last year.

The Bank also continued to maintain its efficiency ratio increasing to 29% which is considered the highest among the Saudi Banks. The above positive results are reflected in return on the average shareholders’ equity which rose to 19.8% and return on the assets that reached to 2.5%.

Dr. Abdul Aziz Al- Abdullah Al Ohali, and members of the Board of Directors, expressed their happiness with these positive results achieved by the Bank and its substantial business growth, stressing at the same time that the Bank is pursuing a clear and well studied path of development and expansion through which it has acquired a significant place among the financial institutions in the region, contributed in this great success by a national qualified and specialized team of young Saudi cadres the Bank’s management and shareholders are proud of.

On the other hand, Mr. Saud Saleh Al Saleh, the General Manager of the Bank, said that the Bank could be able to achieve great success on different levels, as it has increased its business in retail sector, introduced new credit and investment products and successfully launched six new investment funds which are achieving competitive returns. He added that the Bank has, in a short period, built and furnished four new branches. Al Nuzha Branch, north of Riyadh (located at Abu Bakr Al Siddiq Street) has already been inaugurated; and within a week, Al Shifa Branch in Riyadh will be opened which will be followed by the inauguration of Al Hofuf Branch in Al Ahsa Province as well as Al Malik Road Branch in Jeddah. Further, the Bank is currently planning to build and furnish a number of other branches in different regions of the Kingdom under the policy of its business expansion in order to serve the Bank’s customers.

The Saudi Investment Bank reports First Half Results, with profits exceeding SR 293.9 Million

The Saudi Investment Bank announced that during the First Half of 2004. It has achieved net profits exceeding SR 293.9 Million compared with SR 221.8 Million for the same period a year earlier, with an increase of more than 32.5%. The profit for each share has also increased from SR 8.06 to SR 10.69.

The Income Statement highlighted growth in all aspects. The income fees for banking services has increased at a rate of 121.6% from their levels a year earlier to reach SR 149.6 Million. The Bank has also taken advantage of the growth in the local and international Money Markets in order to make substantial profits reaching SR 61 Million from the sale of investments. The overall operational income for the period has reached SR 517.8 Million. This has been achieved in spite of the increase in general expenses due to the Bank’s expansion in services and new staff recruitment in addition to the expenses due to employee benefit schemes, especially designed to retain qualified and experienced Saudis and to attract the best in the market.

Pursuing its conservative policy, the Bank has continued to apply a policy of setting aside additional and sufficient provisions in order to expand its lending activities. In this respect, the Bank has allocated SR 80 Million for its possible bad loans provision. This is an increase of more than SR 43 Million from the SR 37 Million allocated a year earlier. Consequently, the Bank’s provision for bad credit has reached SR 546 Million, even though the total outstanding of all non-operative loans is less than SR 214 Million. Additionally, the bank has maintained its leadership among Saudi Banks with an efficiency rate of 27.8%. All of this has reflected favourably on the shareholders’ equity, which rose to 21.04% from 19.58% and the return on the assets that reached 2.69% from 2.26%.

The Balance Sheet highlighted growth in loans that reached SR 10,835 Million compared to SR 10,244 Million a year earlier. This is an increase of SR 591 Million. The investment portfolio has also rose to SR 7,017 Million.

On the Liabilities side, customers’ deposits in the Bank reached SR 14,442 Million while liabilities to other banks reached SR 4,244 Million.

Dr. Abdul Aziz Al-Abdullah Al-Ohali and other members of the Board of Directors expressed their happiness with these positive results and the substantial business growth.

On the other hand, Mr. Saud Saleh Al Saleh, the General Manager of the Bank, said that the Bank’s success was a result of the Bank taking advantage of emerging business opportunities and the sincere efforts of its staff. He added that the Bank has succeeded to introduce new banking products and has established 5 new mutual funds. The Bank has also launched its eBanking Services and intends to expand its functionality in the coming few months. He added that the Bank would open new branches in Riyadh, Al Ahsa and Buraida in order to reach out for its customers. More branches covering other regions of the Kingdom are in the planning phase.

The Saudi Investment Bank reports First Quarter Results, with record profits exceeding SR 125.6 Million

The Saudi Investment Bank announced that during the First Quarter of 2004, it has achieved net profits exceeding SR 125.6 Million compared with SR 100.8 Million for the same period a year earlier, with an increase of more than 24%.

The net income from commissions for the current period rose to SR 133.9 Million i.e. with an increase of SR 27.9 Million over the same period in the last year. Other income for this period, representing fees from banking services and profits from investment portfolio and gains from sale of investments, witnessed a substantial growth reaching SR 65 Million representing 51% of the net profits, and with an increase of 23% over what was achieved during the same period a year earlier. With its resources and means, the Bank could be able to avail the improved situation in the share market to achieve higher service fees.

Pursuing its conservative policy, the Bank continued in applying a policy of setting aside additional sufficient provisions in order to enable it to expand its lending activities, increase its participation in development of the national economy and support the production sectors, as the Bank increased its possible loan loss provision at 53.9%, from SR 13 Million to SR 20 Million.

The Balance Sheet highlighted growth of the Bank's assets for this year which increased by SR 3,180 Million reaching to SR 23,561 Million as of 31 March 2004, with an increase of 15.6% compared with the same period in the last year. At the same time, the Bank’s investment and loans portfolios increased at 20.8% and 23.6% respectively.

On the liabilities side, customers' deposits in the Bank increased by SR 1,227 Million, reaching to SR 16,450 Million, with the increase of 8% over the balance for the same period in the last year.

The Bank also continued to maintain its efficiency ratio increasing to 27%, which is considered the highest among the Saudi Banks. The above positive results are reflected in return on the average shareholders’ equity, which rose to 18.4% and return on the assets that reached 2.2%.

Dr. Abdul Aziz Al- Abdullah Al Ohali, and members of the Board of Directors, expressed their happiness with these positive results achieved by the Bank and its substantial business growth, stressing at the same that the Bank is pursuing a clear and well studied path of development and expansion through which is has acquired a significant place among the financial institutions in the region, contributed in this great success by a national qualified and specialized team of young Saudi cadres the Bank’s management and shareholders are proud of.

On the other hand, Mr. Saud Saleh Al Saleh, the General Manager of the Bank, said that the Bank’s success in diversifying its services, its products and its business scope provided it an opportunity to balance and increase its profits sources to keep up its business growth and expansion of its client base. He highlighted the Bank’s efforts to upgrade its potentials by introducing internet banking services soon, as well as improving the standard of telephone banking services. The Bank is at present increasing the number and standard of the branches, as a number of new branches are currently being constructed which were designed in accordance with the highest standards to provide an environment suitable for the clients’ expectations and in accordance with the Bank’s plans to expand retail banking services, as well as providing an opportunity to expand to new regions such as Al Ahsa and Al Qaseem..

The Saudi Investment Bank reports increase in its profits by 22%   

The Saudi Investment Bank declared today that its net profits by the end of Year 2003 has reached SR 463.9 Million compared with SR 380.4 Million at the end of Year 2002 with an increase of 22%. The Statement of Income showed increase in most of its categories. The gross income witnessed a growth ratio of 29%, surging to SR 782 Million with an increase exceeding SR 174 Million higher than the last year.

The Bank continued to follow its conservative policy towards setting aside provisions for possible loan losses, that a provision of SR 81 Million has been made during this year compared with SR 52.2 Million in the last year, despite the balance of such provision has significantly exceeded the balance of the non-operating loans.

The Board of Directors has approved the recommendation for distribution of net cash dividend at SR. 3 per share in addition to share dividend by issuing one new share for each four shares, and this will be presented to the Extra-Ordinary General Assembly Meeting for approval.

The above record results being the largest in the history of the Bank, reflect the growth of the Bank's business activities and increase in volume of its assets which rose to SR 21,708 Million at the end of this year compared with SR 19,957 Million for the same period during the last year with an increase of 9%. The Bank continued to support the production sectors of our national economy, and thus could be able to increase its loans portfolio up to SR 10,232 Million at the end of this year compared with SR 8,891 Million during the last year i.e. with an increase of 15%.

On the liabilities side, the Bank, by the end of the Year 2003, could be able to maintain level of the customers' deposits up to SR 14,404 Million compared with SR 14,065 Million a year earlier.

Dr. Abdul Aziz Al- Abdullah Al Ohali, Chairman of the Saudi Investment Bank, expressed his and other Board members' happiness with the distinguished results achieved by the Bank, its substantial business growth, its carving out a market share with excellent capability and distinct professionalism as well as its greater efficiency in managing its resources.

On the other hand, Mr. Saud Al Saleh, the General Manager of the Bank, said that the business pattern and strategy pursued by the Bank has enabled it to continue achieving business growth and ever increasing results whereby it has acquired flexibility to succeed in all business activities and services it has selected to provide to its customers.

The Saudi Investment Bank announced that during the Third Quarter of 2003, it has achieved net profits up to SR 347 Million compared with SR 301 Million for the same period a year earlier, with an increase of 15%.   

Despite decreasing commission rates, the net income from commissions for the current period rose to SR 363 Million with an increase of 5% over the same period in the last year. Other income for this period, representing fees from banking services and profits from investment portfolio and gains from sale of investments, witnessed substantial growth reaching SR 225 Million , with an increase of 79% over what was achieved during the same period a year earlier. The Bank could be able to avail the opportunities available in the market for structuring the investment portfolio and achieve prominent investment gains. With its resources and means, the Bank could be able to avail the improved situation in the share market to achieve higher service fees, whereas operating expenses increased due to the bank’s expanding business.

Pursuing its conservative policy, the Bank continued in applying a policy of setting aside additional sufficient provisions in order to enable it to expand its lending activities, increase its participation in development of the national economy and support its production sectors, as the Bank increased its possible loan loss provision at 63%, from SR 42,266 Million to SR 69,000 Million.

The Balance Sheet highlighted growth of the Bank's assets for this year which increased by SR 2,604 Million reaching to SR 21,457 Million as of 30 September 2003, with an increase of 14% compared with the same period in the last year. At the same time, the Bank’s investment and loans portfolios increased at 18% and 16% respectively.

On the liabilities side, customers' deposits in the Bank increased to SR 14,341 Million by 21% over its balance during the same period a year earlier. 

On the liabilities side, customers' deposits in the Bank increased by SR 2,298 Million, reaching to SR 14,489 Million, with the increase of 18% over the balance for the same period in the last year.

The Bank also continued to maintain its efficiency ratio increasing to 29% which is considered the highest among the Saudi Banks. The above positive results are reflected in return on the average shareholders’ equity which rose to 19.6% and return on the assets that reached to 2.2%.

Dr. Abdul Aziz Al- Abdullah Al Ohali, and members of the Board of Directors, expressed their happiness with these positive results achieved by the Bank and its substantial business growth, stressing at the same that the Bank is pursuing a clear and well studied path of development and expansion through which is has acquired a significant place among the financial institutions in the region, contributed in this great success by a national qualified and specialized team of young Saudi cadres the Bank’s management and shareholders are proud of.

On the other hand, Mr. Saud Saleh Al Saleh, the General Manager of the Bank, said that the Bank could be able to achieve these results despite changing international economic scenario, low commission rates and slow growth of the major international economies.

The Saudi Investment Bank declares its semi-annual results, with profits surging to more than SR 221 Million  

The Saudi Investment Bank announced that during the First Half of 2003, it has achieved net profits exceeding SR 221 Million compared with SR 200 Million for the same period a year earlier, with an increase of 10.5%.
The Income Statement has shown a significant growth in most income categories from operations such that the fees from banking services has increased to SR. 67.5 Million compared with the same period during the last year, i.e. with an increase of 31%. Availing the improved situation in the local and international markets, the Bank sold a part of its investments by which it achieved gains totaling SR. 52.8 Million. As a result, the Bank’s operating income rose to SR. 358.7 Million. 

On the expenses side, the Bank continued to follow its conservative policy towards setting aside additional sufficient provisions in order to enable it to expand its lending activities, that a provision of SR. 37 Million was made compared with SR 20 Million for the same period during the last year i.e. with in increase of SR. 17 Million . The Bank also continued to maintain its efficiency ratio increasing to 27.9% and which is considered the highest among the Saudi Banks. The above positive results are reflected in return on the shareholders’ equity which rose to 19.58% and return on the assets that reached to 2.26%. 

The Balance Sheet highlighted the growth in loans portfolio which increased to SR. 10,244 Million compared with SR. 9,372 Million for the same period a year earlier, with an increase of SR. 872 Million. 

On the liabilities side, customers' deposits in the Bank increased to SR 14,341 Million by 21% over its balance during the same period a year earlier. 

Dr. Abdul Aziz Al- Abdullah Al Ohali, expressed his happiness with these positive results achieved by the Bank and its substantial business growth. 

On the other hand, Mr. Saud Al Saleh, the General Manager of the Bank, said that the Bank could be able to achieve these results despite changing international economic scenario, low commission rates and slow growth of the major international economies.

Saib Reports 2003 Quarter Results With Profits Increasing To More Than SR 100 Million

The Saudi Investment Bank (SAIB) reported net income of SR 100.8 million compared with SR 95.7 million for the same period last year, an increase of 5.2%

The Bank's total income increased to SR 158.6 million in the first quarter compared to SR 148.5 million during the same period last year. Revenue growth was achieved across most categories in spite of lower commission rates worldwide and the impact of recent events in the region.

On the expense side, the Bank continued its conservative policy of setting aside sufficient provisions to expand its lending activities and increase its participation in the development of the national economy. The Bank also continued to control its operating expenses by maintaining its Efficiency Ratio at 28.3%. This level is considered to be the best among all Saudi banks. These positive factors are reflected in our key performance rations, including a return on assets of 2.03% and a return on shareholder's equity 18.66%.

At March 31, 2003 total assets were SR 20,381 million, an increase of 18.3% compared to the SR 17,232 million at the end of the first quarter 2002. Included in these figures were a 16% increase in the loan portfolio to SR 9,405 million, compared to SR 8,080 million in the prior period.

On the liability side, customer deposits increased by SR 3,355 million, from SR 11,870 million to SR 15,223 million. This reflects growth of more than 28% compared to 2002 results.

Chairman of the Bank, Dr. Abdulaziz O'Hali, expressed his pleasure with the first quarter results. Mr. Suad AlSaleh, General Manager, commented that the Bank has succeeded in expanding and diversifying its activities and has entered new fields which will enable SAIB to continue its profit growth under challenging international conditions.

The Saudi Investment Bank reports increase in its profits by 25% and declares dividend distribution by 50%

The Statement of Income showed increase in all of its items. The gross income witnessed a growth ratio of 22%, surging to SR 608 Million with an increase exceeding SR 110 Million higher than the last year.

The Bank continued to follow its conservative policy towards setting aside provisions for possible loan losses, that a provision of SR 52.2 Million has been made during this year compared with SR 40 Million for the last year, despite the balance of such provision has significantly exceeded the balance of non-operating loans.

The Board of Directors has approved the recommendation for distribution of net cash dividend for SR. 12 per share compared with SR 8 in the last year and this will be presented to the General Assembly Meeting for approval.

The above results being the largest in the history of the Bank, reflect the growth of the Bank's business activities and increase in volume of its assets up to SR 19,957 Million at the end of this year compared with SR 15,252 for the same period during the last year with an increase of 31%. The Bank continued to support the production sectors of our national economy, and thus could be able to increase its loans portfolio up to SR 8,891 Million at the end of this year compared with SR. 7,527 Million during the last year i.e. with 18% increase.

On the liabilities side, customers' deposits in the Bank increased by 28.5% to reach SR 14,065 Million compared with SR 10,950 Million a year earlier. Dr. Abdul Aziz Al- Abdullah Al Ohali, Chairman of the Saudi Investment Bank, expressed his and other Board members' happiness with the distinguished results achieved by the Bank and its substantial business growth, carving out a market share with excellent capability and distinct professionalism as well as its greater efficiency in managing its resources. The Chairman commented that achievement of these results is coinciding with an important era of the Bank's history as the Bank is celebrating , in year 2000, 25 years of its formation. On the other hand, Mr. Saud Al Saleh, the General Manager of the Bank, said that the business pattern and strategy pursued by the Bank has enabled it to continue achieving business growth and ever increasing results whereby it has acquired flexibility to succeed in all business activities and services it has been providing to its customers. He explained that a number goals and achievements have been accomplished during the year of 2002 the significant of which was the formation of SAIB Sharia Committee consisting of such scholars who have wide knowledge and rich experience in Sharia treatment of the economic issues and financing methods, as well as offering credit products for individuals and Saudi Riyals Credit Card from American Express in which The Saudi Investment has 50% of shareholding.

The Bank achieves a growth in profits that reached up to more than 18.5%

The Saudi Investment Bank announced that during the First Quarter of 2002, it has achieved net profits up to SR 95.7 Million compared with SR 80.6 Million for the same period in the last year, with an increase of 18.5%.

Total income increased to SR 148.5 Million compared with SR 121.2 Million i.e. with a growth rate of 22.5%. The Return on the assets reached 2.4% and Return on the shareholders equity rose to 18.64%. The Bank’ efficiency ratio reached 29% which the highest among the Saudi banks.

The Balance Sheet as of 31 March 2002 highlighted a growth in assets which was recorded at 18.6% such that the Bank’s assets increased to SR 17,231 Million during the First Quarter of 2002 compared with SR 14,529 Million for the same period during the last year. The Bank’s loan portfolio increased, with a growth ratio of 16.5%, to SR 8,079 Million compared with SR 6,930 Million during the last year, and the investment portfolio increased to SR 6,538 Million compared with SR 5,308 Million with a growth ratio of more than 23%.

On the liabilities side, the customers’ deposits in the Bank rose to SR 11,870 Million in comparison with SR 10,932 Million during 2001, with a growth rate of 8.5%. Total shareholders’ equity continued to increase that reached SR 2,147 Million at the end of the First Quarter of the current year.

Dr. Abdul Aziz Al-Abdallah Al O’hali, Chairman of The Saudi Investment Bank expressed his happiness with the sustained growth of the Bank’s business in spite of slowdown of global economic activities, emphasizing that the Bank’s continued achievement of record profits, while it is celebrating its 25th Anniversary, is the evidence of the success in steering its business and its service rendered to the production sectors of our economy, and tells a story of steady growth of this ambitious bank which started as a small banking company with a capital of not more than SR 30 Million and limited activities. Since then it has transformed itself into a full-service bank. Today, SAIB, with SR 2,147 Million in shareholders’ equity offers a complete range of services, activities and products. Its ongoing transformation powered by its unique culture and style allowed it greater leverage, and the power to expand, innovate, and serve diverse and new sectors.

The Saudi Investment Bank Continues to Report Record Profits

The Saudi Investment Bank announced that during the Third Quarter of 2001, it has achieved net profits of SR 243 Million compared with SR 213 Million achieved during the same period last year. This is an increase of 14%.

The Statement of Income demonstrated a continued growth in profits achieved in all income categories. Operating income increased by 11%, to SR 375.2 Million compared with SR 338.5 Million for the same period last year. On the expenses side, the Bank has continued to keep the expenses well under control. This has enabled the Bank to maintain its leadership in efficiency by achieving the best efficiency ratio of 29% among all Saudi and regional Banks. This reflects the Bank’s continued conservative policy with regard to the expenses.

The Return on assets reached 2.3% compared with 2.1% for the same period last year and the Return on shareholders’ equity rose to 16.1%.

As regards to the Balance Sheet highlights, the assets increased by SR 1,627 Million, reaching to SR 14,921 Million compared with SR 13,294 Million for the same period last year. This is a growth in assets of 12%. The investment portfolio increased by SR 703 Million at a growth ratio of 16%. The Bank’s loan portfolio increased to SR 7,925 Million, with a growth ratio of 8%.

On the liabilities side, the customers’ deposits in the Bank rose to SR 11,310 Million by SR 1,282 Million in comparison with SR 10,028 Million during the same period a year earlier.

Dr. Abdul Aziz Al-Abdallah Al O'hali, Chairman of The Saudi Investment Bank, expressed his complete satisfaction with the results achieved. He reiterated his confidence in the Bank’s potential to pursue more progress and boast ever improving results. He highlighted the significance of the results and added that these have been achieved by a fully saudized executive management.

Mr. Saud Saleh Al Saleh, the General Manager of The Saudi Investment Bank, emphasized the sustained growth of the Bank’s business, its potential to continue to be increasingly competitive, to carve out a larger share of the market, and to introduce new products in Retail Banking following the success achieved in lending on Murabaha basis.

The Saudi Investment Bank Reports Record Profits

The Saudi Investment Bank announced that during the First Half of 2001, it has achieved net profits up to SR 165 Million compared with SR 141 Million for the same period in the last year, with an increase of 17%.

The Statement of Income demonstrated the continued growth in profits achieved in all income categories that the operating income in the same period increased to SR 252.1 Million compared with SR 220.6 Million in the last year. The Bank was able to achieve these record profits, which are considered the highest in the Bank’s history since its inception in 1976G, by adopting clearly defined policies, availing the opportunities available in the market, providing diversified products to its customers, upgrading the technology in use and following a conservative policy on the expenses side which enabled it to achieve the best efficiency ratio among the Saudi Banks which reached 28.6%; or in other BodyEnglishs, it achieved SR 3.50 as profits for each one Riyal out of the expenses. The Return on the assets reached 2.3% compared with 2.1% in the last year and the Return on shareholders equity rose to 16.5% from 16% during last year.

As regards the Balance Sheet highlights, the Bank continued to increase its business volume. Its total assets increased by SR 1,466 Million, reaching to SR 14,545 Million compared with SR 13,079 Million in the last year. The growth rate for the assets reach 11.2%. The Bank’s loan portfolio increased to SR 7,619 Million, with a growth ratio of 5.6%, in comparison with SR 7,216 Million in

the last year. The investment portfolio increased to SR 4,753 Million compared with SR 4,215 Million with a growth ratio of 12.8%.

On the liabilities side, customers’ deposits in the Bank increased by SR 933 Million to reach SR 11,038 Million. An increase of 9.2% from the same period a year earlier. Total shareholders’ equity increased to SR 2,122 Million at the end of the first half of 2001 compared with SR 1,840 Million during the same period a year earlier.

Dr. Abdul Aziz Abdullah Al O'Hali, Chairman of The Saudi Investment Bank expressed his complete satisfaction with the results achieved. He reiterated his confidence in the Bank’s potential to pursue more progress and boast ever improving results so that the Bank can play a major role in the local market and to maintain its leadership in achieving the highest efficiency ratios. Dr. A. O'Hali highlighted the significance of the results adding that these have been achieved by the Saudi cadres as the top executive management has been fully saudized through which the Bank shall strive to achieve this important and strategic goal which shall yield positive results in future.

The Saudi Investment Bank Reports Record Profits

The Saudi Investment Bank announced that its net profits until the end of the Third Quarter of 2000 have reached SR 213.4 Million compared to SR 188.4 Million during the same period last year. An increase of 13.3%. The net profits for the third quarter have reached SR 71.9 Million compared to SR 61.1 Million during the same quarter last year. This is an increase of 17.7%.

The results come as a clear manifestation of the Bank’s continued growth in all levels. The figures of the Income Statement has shown a significant increase in the profits achieved from bank services fees, which had reached SR 65.5 Million compared to SR 42.9 Million during the same period last year. This is an increase of more than 52%. Service Fees now represent 30% of the Bank’s overall net profit. The profits from the Bank’s investment portfolio have reached SR 221.3 Million compared to SR 176.6 Million during the same period last year.

On the expenses side, the Bank continues to manage its expenses to achieve the best Profit/Expenses ratio amongst Saudi and regional banks. The ratio stands now at less than 30%, which means that the Bank realises a profit of SR 3.30 for each Riyal spent. The Bank has also continued to avoid setting aside further provisions despite the availability of sufficient reserves to cope with any adverse situation, which might affect the Bank’s loans portfolio. In this regard, the non-performing loans portfolio provision has reached more than 180% which is considered the highest coverage ratio amongst the Saudi banks.

The Balance Sheet has also increased by 9.7% to reach a total of SR 13,600 Million compared to SR 12,400 Million during of the same period last year. The Bank’s loans portfolio has increased by 7% which amounted to SR 7,311 Million. The investment portfolio has increased by 30% which amounted to SR 4,350 Million compared to SR 3,345 Million during the same period last year. The Bank deposits have also reached SR 10,000 Million compared to SR 8,900 Million.

Dr. Abdul Aziz Abdullah Al Ohali, Chairman of the Board of The Saudi Investment Bank, expressed his optimism in the Bank’s future. Dr. Ohali also expressed his confidence in the Bank’s continued growth in its activities and profits. He affirmed that the Bank will continue to achieve remarkable results and will continue to be a major player in the local market.

It is noteworthy to mention that the Bank has succeeded to increase its Capital from SR 90 Million to SR 1,000 Million during the period 1990-2000. During the same period, the Shareholders Equity, Assets, Deposits and Loans have also increased from SR 234 Million to SR 1,900 Million, SR 4,600 Million to SR 13,600 Million, SR 3,000 Million to SR 10,000 Million and SR 1,100 Million to SR 7,300 Million respectively. The compound growth during the last ten years has reached 35.1% per annum.

The Saudi Investment Bank Continues to Report Record Profits

The profits thus achieved are a manifestation of the sustained growth of the Bank's business, its capability to compete and achieve success in carving out a substantial market share despite the tough competition among the banks of this region. The figures of the Balance Sheet and Income Statement were characterized with a significant growth at all levels of the Bank's activities.

The figures of the Income Statement has shown a significant increase in the profits achieved from services fees, which had reached SR 42.2 Million compared with SR 26.5 Million during the Year 1999 out of the Bank's overall net profits, and which constitute 30% compared with 21% in the Year 1999. The profits from the Bank’s investment portfolio have reached 27 % representing SR 146.9 Million compared with SR 115.8 Million during the same period in the last year.

On the expenses side, the Bank continued to keep its expenses under control, which enabled it to achieve the best efficiency ratio among all Saudi, and regional Banks, which reached 29% or in other BodyEnglish, it, achieved SR 3.44 as net profits for each one Riyal out of the expenses. Following its conservative approach, the Bank also continued to set aside further provisions, despite arrangement of sufficient provisions to meet any possible losses in its loans portfolio. The coverage ratio for the non-performing loans portfolio provision has reached more than 176% which is considered as the highest coverage ratio among the Saudi banks.

The Balance Sheet demonstrated significant growth in all of its items that total assets of the Bank by the end of the First Half of 2000 has increased to SR 13.3 Billion compared with SR 13 Billion in the last year. The investment portfolio rose to SR 4.2 Billion, with a growth of 26%, compared with SR 3.3 Billion. The Bank continued its active participation in financing different economic sectors that its loan portfolio increased, by 6%, to SR 7.2 Billion at the end of the First Half of 2000 in comparison with SR 6.8 Billion at the end of the First Half of 1999.

The customers’ deposits increased by SR 1.5 Billion approximately totaling SR 10.1 Billion compared with the SR. 1.6 Billion during the last year.

Due to those positive results, the Bank could be able to increase the shareholders’ equity to SR. 1.8 Billion compared with SR1.6 Billion during the Year of 1999.

In his comment, Dr. Abdul Aziz Abdullah Al Ohali, Chairman of the Board of The Saudi Investment Bank, expressed his complete satisfaction with these remarkable results which are considered the highest in the Bank's history. He said that the Bank has been rigorously striving to develop its business through utilizing its available resources and rely on its own resources to support its capital base.

On the other hand, the General Manager of the Saudi Investment Bank, Mr. Saud Al Saleh stated , "The efficiency in managing the Bank's resources has positively affected its results and enabled it to increase the volume of its business and diversify its services to a wider client base.

The Bank has also recently finalized two strategic initiatives i.e. agreement on formation of American Express Saudi Arabia Ltd and Saudi Orix Leasing Co. Ltd. By this step, the Bank has succeeded in targeting some new investment products and services as part of its goals set forth in its Fifth Strategic Plan which was adopted by the Board of Directors back in 1997, in order to boost its leading role in providing corporate banking services and widen retail banking scope".

It is worthy to mention that the Bank has, over the past ten years (1989-2000), increased its capital from SR 90 Million to SR 1000 Million, total shareholders' equity from SR 221 Million to about SR 1,800 Million, its assets from SR 5,000 Million to more than SR 13,300 Million, its deposits from SR 3,000 Million to SR 10,100 Million and its loan portfolio from SR 621 Million to more than SR 7,200 Million. The compound growth during the last ten years has reached 38% per annum.

The Saudi Investment Bank declares sustained growth of its profits and business

The Saudi Investment Bank announced that with an increase of 5.2 %, it has achieved profits more than SR 70 Million at the end of the First Quarter of 2000 compared with SR 66.6 Million for the same period a year earlier.

The profits thus achieved are a manifestation of the sustained growth of the Bank's business, its capability to compete and achieve success in carving out a new market share despite the tough competition among the banks of this region. The figures of the Balance Sheet and Income Statement were characterized with a significant growth at all levels of the Bank's activities.

The Balance Sheet does highlight the growth of the Bank's assets which reached to SR 13256 Million compared with SR 12564 Million during the same period in the last year and the Bank could be aptly able to increase its share in the market of the customers' deposits which rose to SR 1132 Million or with increase of 14%. At the same time, the Bank was able to increase its loan portfolio to SR 6761 Million i.e. with an increase of 7%.

The investment portfolio rose to SR 4210 Million with an increase of 18%, and the shareholders' equity continued to increase until it reached SR 1770 Million compared with SR 1582 Million during the same period in the last year. The capital increased from SR 858 Million to SR 1000 Million.

On the expenses side, the Bank continued to keep its expenses well under control, while at the same time, it could achieve increase in its revenues. The Bank is concerned with increasing its efficiency by managing its available resources and achieve the best possible return. Through implementation of this policy, the Bank achieved the best efficiency ratio among all Saudi and regional Banks.

Dr. Abdul Aziz Abdullah Al Ohali, expressed his complete satisfaction with the results and development achieved by the Bank and its business growth in the market looking forward to the Bank's achieving distinguished results during the Year 2000 in line with the previous years, stressing at the same time that the Bank shall be continuing to invest in the operating systems, technology and qualified work force.

Saudi banking enters the new millennium by successfully meeting the Y2K challenge

SAMA Head Office - Riyadh, Saudi Arabia
Saturday - 24 Ramadan 1420H - 1 January 2000

The Saudi Arabian Monetary Agency (SAMA) has announced that all Saudi banks have overcome the Y2K computer-related challenge with complete success. This has been confirmed by His Excellency Governor Mr. Hamad Al-Sayyari, following the presentation of a status report by the Y2K Task Force of SAMA and the Saudi Banks.

He re-affirmed that all financial and payment systems in SAMA and the Saudi banks have continued to function in a smooth manner, without any glitches. Mr. Al-Sayyari noted that while contingency plans had been fully developed and were ready for launch, they were not needed.

Mr. Al-Sayyari praised the close cooperation between SAMA and the banks, and other concerned national and international organizations.

He indicated the Y2K problem had been recognized at a very early stage by the national authorities, and as a result, the National Y2K Committee was formed by a Royal Decree.

All Y2K-rollover activities of the banks have now been completed without any disruption. All bank branches in addition to the Saudi payment and settlement systems have continued normal operations. Bank customers did not observe any deterioration in level and quality of service, thus making it a very successful transition.

The Saudi Investment Bank declares sustained growth of its profits and business

The Saudi Investment Bank announced that, based on the optimistic projections of the financials results for 1999, its Board of Directors has decided to recommend raising the bank's capital up to SR 1,000 Million (One Thousand Million Saudi Riyals) by issuing one new share for each six shares outstanding in addition to a cash dividend of SR 3.00 per share. The eligibility for share dividend and cash dividend will be decided later following the declaration of the audited financial results of the bank. This will result in the increase of the shareholders' equity to approximately SR 1,700 Million.

Commenting on the above, Dr. Abdul Aziz Abdullah Al Ohali, The Chairman of the Board of The Saudi Investment Bank, expressed his own and the Board Members' satisfaction with the distinguished results brought about by the bank's activities, and with its continued record of achieving higher profits and constantly improving results year after year. He confirmed his confidence in the Bank's potential to achieve further progress and demonstrate ever improving results. The Chairman said that the proposed increase in the Bank's capital is in line with the significant growth in its business activities. This broader capital base will help us implement new business expansion plans that will continue to give the Bank a competitive edge in the local and international money markets.

The Chairman explained that the Bank has consistently developed its services though effective utilisation of its available resources and has depended on its own resources to strengthen its equity base. He further mentioned that the Bank' efficiency ratio for resources management is the highest among the local and regional banks. He added that over the past ten years (1989-1999) the Bank has been able to increase its capital from SR 90 Million to SR 1000 Million; total shareholders' equity from SR 221 Million to about SR 1,700 Million; assets from SR 5,000 Million to more than SR 13,000 Million; deposits from SR 3,000 Million to more than SR 9,000 Million; loans portfolio from SR 621 Million to more than 7,000 Million and profits from SR 11 Million to the tune of SR 240 Million.

Dr. Abdul Aziz Abdullah Al Ohali also explained that the above figures are particularly noteworthy as they have been achieved by the skill and dedication of a highly trained and motivated management team of Saudi Nationals, Their efforts have allowed the Bank to place itself in this very advanced and competitive position in local and regional markets.

The Saudi Investment Bank Reports Record Profits Soaring To SR 188 Million

The Saudi Investment Bank announced that its net profits until the end of the Third Quarter of 1999 have climbed to SR 188 Million compared with SR 182 Million during the same period last year. An increase of 3.5%. The results thus achieved are a further manifestation of the sustained growth of the Bank's business, its capability to compete and succeed in carving out a substantial market share despite the tough competition among the banks of this region. The figures of the Balance Sheet and Income Statement were characterized with a significant growth at all levels of the Bank's activities. The highlights of the Income Statement demonstrate that the profits achieved from bank services fees and foreign exchange have soared by 30% or SR 60 Million compared to SR 52 Million or 28% of the profits achieved during the same period last year. The profits from the Bank's investment portfolio have increased by 18% amounting to SR 177 Million compared to SR 150 during the same period last year.

On the expenses side, the Bank continues to keep the administrative expenses under control and has been able to reduce operating expenses. The Bank also continues to setting aside further provisions following the conservative approach adopted some years back, despite continuous decrease in the non-performing loans portfolio. The coverage ratio for the non-performing loans portfolio provision has reached more than 250% which is considered as the highest coverage ratio among the Saudi banks.

As regards to the Balance Sheet highlights, the customers' current, saving and term deposits increased by SR 833 Million (i.e. 12%), reaching SR 7,836 Million in total compared to SR 7,003 Million last year.

The Bank continues to expand its lending activities. The Bank's loans portfolio has increased by 7% which amounted to SR 6,831 Million compared to SR 6,383 Million during the same period last year. The total shareholders' equity rose by 10% to reach SR 1,704 Million as compared with the SR 1,552 Million in 1998.

Dr. Abdul Aziz Abdullah Al Ohali, Chairman of the Board of The Saudi Investment Bank, expressed his complete satisfaction with these remarkable results which are considered the highest in the Bank's history in terms of profits and balance sheets figures. He confirmed that the Bank continues to show sustained growth in its activities. He considered the results as a clear indication of the Bank's capability and potential to utilize its available resources and its operational efficiency which he considered as the highest among the banks in the region.

Mr. Saud Saleh Al Saleh, the General Manager of the Bank, said that the Bank has succeeded in implementing its strategy that focuses on the quality of its services and products and the expansion of its customer base. This strategy will enable the Bank to become ever more actively engaed in the market thus increasing its returns.

As regards the Bank's activities to address the Year 2000 Problem, the General Manager confirmed that the Bank has successfully completed its Project to replace and improve its automation systems in preparation for the Year 2000. This project had always been a top priority for the Bank management since its beginning throughout its different stages until it was successfully completed in June 1999, when the Bank achieved Y2K readiness. Recently, the Bank has confirmed to all of its customers its successful completion of this important Project.