JEDDAH – Samba Financial Group posted a 5.1 percent rise in second-quarter net profit on the back of an increase in operating income, Eisa Mohammed Al-Eisa, the Group’s Managing Director and CEO, said in a statement Tuesday.
The Kingdom’s second-largest listed lender by market value said that its second quarter net profit increased to SR1. 158 billion ($309.3 million) versus SR1.1 billion in the corresponding period last year.
Net profit for the first six months of 2012 was SR2.303 billion, up 2.3 percent from the SR2.2 billion reported in the first half of last year, he added.
Total operating income for the three months to June 30 was SR1.745 billion, a 7 percent increase on the same period last year.
Profit from special commissions dropped by 3 percent in the second quarter compared with the same period last year, while loans and advances at the end of the quarter stood at SR96 billion, up from SR82 billion a year earlier.
He said Samba, following controlled investment and banking policies, has contributed in boosting confidence in the bank’s performance and resulted in a 22 percent increase in income from foreign currency remittances.
Moreover, he said Samba’s commitment to provide innovated financial and investment products and solutions has led to achieving a 17 percent rise in the loans and credits portfolio during Q1 of 2012 to reach SR96 billion compared to the same period last year.
The ratio of loans to deposits reached 68 percent, while the bank was able to achieve a growth in deposits to reach SR94.3 billion compared to SR78.9 billion for the same period in 2011, with a growth of 20 percent.
Meanwhile, shareholders’ rights increased by 10 percent, reaching SR29.3 billion compared to SR26.7 billion for the same period in 2011.
The bank has a high international reputation as confirmed by the advanced credit rankings issued by international rating agencies, which have granted Samba high marks – the highest among Saudi banks.
These include Capital Intelligence that granted Samba AA-, Standard and Poors gave the bank an A+, Moody’s Aa3, Fitch A+, while four agencies maintained a stable future view for the bank.Loan growth continues to be strong in the Kingdom, with credit growth up 14.7 percent year-on-year in May, according to figures from the Saudi Arabian Monetary Agency. – SG