SABB Releases 2008 Annual Results

The Saudi British Bank ("SABB") recorded a net profit of SAR2,920 million (US$779 million) for the year ended 31 December 2008. This represents a 12.0% increase compared with 2007. Net special commission income for the year increased by SAR148 million

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The Saudi British Bank (“SABB”) recorded a net profit of SAR2,920 million (US$779 million) for the year ended 31 December 2008. This represents a 12.0% increase compared with 2007. Net special commission income for the year increased by SAR148 million (US$39 million), or 4.8%, driven by higher volumes. Non-funds income grew by SAR390 million (US$104 million), or 29.6%, in 2008 reflecting strong performance from SABB’s card, account management and trade-related businesses.

Operating expenses less provision for possible credit losses and less impairment of other financial assets, increased by SAR213 million (US$57 million) in the year to 31 December 2008, or 14.9% compared with 2007, mainly due to branch network expansion, increased investment in technology and higher performance-related compensation. Provisions for possible credit losses reduced by SAR25 million (US$7 million) in the year to 31 December 2008, or 6.3% compared with 2007, with increased recoveries and lower specific provisions offsetting higher volume-driven collective impairment charges.

“Despite 2008 being a difficult year for the financial services industry, I am pleased to report that SABB has delivered a 12.0% increase in net profit over 2007,” says John Coverdale, managing director of SABB. “This sustained performance has been achieved by SABB’s continued focus on core banking activities, supported by the underlying fundamental strength of the Saudi economy. The quality of our asset book remains strong, with loan growth being fully funded by increased customer deposits. Surplus deposits raised have been invested in accordance with our conservative investment policy. We thank our customers for their continued support and our staff for their commitment and contribution to the bank’s success.”

D.C.

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