The Arab National Bank announced that its profit for the first six months of 2004 rose by 53% to reach SR576 million ($153.6 million), compared to the same period last year.
Operating revenues increased by 28%, thanks to a 21% increase in net interest income and a 78% increase in fee income, while expenses rose by 10%. General loan provisions amounted to SR131 million, similar to last year’s level. The investment portfolio was maintained at the same level as last year, at SR21.5 billion.
Loans increased by 39% to SR24.5 billion, and customer deposits increased by 20% to SR37.8 billion, thereby achieving a conservative loan to deposit ratio of 65%. Return on equity rose from 18.8% last year to 26.6% this year. The bank is paying its shareholders a semi-annual dividend of SR5 per share, amounting to a total of SR200 million.
The Jeddah-based Arab News quoted Nemeh Sabbagh, the bank’s Chief Executive Officer, as saying that the results continued the trend of strong growth in core earnings over recent years. He added that the bank’s aim was to achieve solid growth in quality earnings on a consistent and sustainable basis. During this period the bank introduced a number of new services to its clients, among which was a new Shariah-compliant Tawarruq consumer financing program giving clients the ability to buy and sell local commodities.
Source: SPA
