SABB achieved a profit growth for the fifth consecutive quarter as its net profit jumped by 22.8 percent or SR141 million to SR757 million for the three months ended March 31, 2008, compared with SR616 million for the same period in 2007, and a 7.4 percent increase compared with the fourth quarter of 2007, the bank said in a statement on Tuesday. Earnings per share posted SR2.02, up 22.8 percent from SR1.64 in the period under review. Operating income hit SR1,191 million compared with SR1,028 million, up SR163 million, or 15.9 percent in the covered periods. Customer deposits jumped to SR78.4 billion, an increase of 31.1 percent or SR18.6 billion, from SR59.8 billion in the first quarter of last year. Loans and advances surged SR23.9 billion, or 56.0 percent to SR66.6 billion from SR42.7 billion in the comparable periods. The bank's investment portfolio totaled SR23.7 billion as of March 31 this year compared with SR17.6 billion in the year-ago period. Total assets also witnessed a hefty increase of SR26.9 billion or 33.8 percent to SR106.4 billion in the first quarter of 2008. John Coverdale, managing director of SABB, said: “SABB's first quarter 2008 results are very encouraging and continue to build upon the strong core business foundations that we have established. Robust deposit inflows during the quarter have been more than sufficient to support the quality loan growth and expansion of our investment portfolio." "Our investment strategy continues to focus on Saudi government bonds, Treasury bills and investment grade instruments which has largely protected our shareholders from the global problems surrounding structured investment vehicles (SIVs) and subprime collateralized mortgage obligations (CMOs)," he said. “The SR23.9 billion increase in loans and advances compared to March 31, 2007 reflects the underlying strength of the Saudi economy and increased project funding requirements from the corporate sector. This asset growth has contributed to a 20.1 percent increase in net special commission compared to the same period in 2007. Excluding the higher contribution from the brokerage and mutual funds businesses, core banking non-funds income has grown by SR105 million, or 63.2 percent, compared to the first quarter of 2007.” Coverdale further said: “Cost growth of SR35 million or 10.9 percent compared to the first quarter of 2007 is due to an increase in headcount of 379 or 13.6 percent. The first quarter 2008 charge for bad debts is SR25 million lower than the same period last year due to lower consumer finance defaults and higher recoveries. The bank's capital and liquidity positions remain strong.” “In conjunction with our joint venture investment bank, HSBC Saudi Arabia Limited, and our insurance associate, SABB Takaful, SABB is able to offer a comprehensive range of financial services within Saudi Arabia. This local ability is complemented by our close relationship with HSBC with whom we can deliver joined-up global financial solutions for our valued customers,” he added. __
