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.

View the release as

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’ e