SABB recorded a net profit of SR1,552 million for the six months ended June 30, - up SR301 million, or 24 percent, compared with SR1,251 million for the same period in 2007. Net profit of SR795 million for the three months ended June 30 - up SR160 million, or 25.2 percent, compared with SR635 million for the same period in 2007, and up SR38 million, or 5.0 percent compared with the first three month period of 2008. Earnings per share of SR2.59 for the six months - up 24.0 percent from SR2.09 for the same period in 2007. Earnings per share for the six-month period have been adjusted to reflect a 3:5 bonus issue approved earlier. Operating income rose SR2,522 million in the period under review, up SR467 million, or 22.7 percent, compared with SR2,055 million for the same period in 2007. Customer deposits at SR89.1 billion - up SR23.9 billion, or 36.7 percent, compared with SR65.2 billion from a year ago period. Loans and advances to customers reached SR77.5 billion 08 - up SR28.9 billion, or 59.5 percent, from SR48.6 billion. The bank's investment portfolio totaled SR30.1 billion compared with SR16.4 billion on June 30, 2007. Total assets surged to SR126.2 billion - up SR41.1 billion, or 48.3 percent. John Coverdale, managing director of SABB, said: “I am pleased to announce that SABB's strategy of building long term customer relationships supported by a broad range of financial products and services has delivered profit growth in each of the last six quarters. The strength of our balance sheet has allowed us to respond to the increasing demand for funding within the Kingdom as reflected by the 59.5 percent growth in our loans and advances book over the last twelve months. This asset growth has more than offset the impact of falling rates. In addition, strong performance from our cards, trade, mutual fund, Treasury and IPO related businesses, together with a modest increase in brokerage income, has delivered well balanced income streams from our funds and non-funds activities.” “Our costs have increased by SR151 million or 23.4 percent over the first half of 2007 mainly due to an increase in headcount and performance related compensation. Provisions for bad debts in the first half of 2008 have reduced by SR4 million or 1.8 percent from the same period in 2007 with increased recoveries offsetting higher volume driven general impairment charges. “Despite strong loan growth, SABB's capital and liquidity ratios remain strong.”
