Riyad Bank’s net profits up 6.4 percent
The Riyad Bank recorded a 6.4 percent increase in net profits in the first nine months of 2002 reaching 107.2 million Saudi riyals compared to SR 64 million during the same period in 2001. Consequently, return on shareholders’ equity increased from 14.6 percent to 16.37 percent and return on assets increased from 2.04 percent to 2.1 percent from January to September of this year.
According to Chairman Riyad Bank, Rashed Abdulaziz Al–Rashed, the increase in income was not only due to the growth in income from traditional banking activities, where a SR 23 million or 1.4 percent increase in net commission income from loans and investment was achieved but more so from the growth in fee income from banking services.
The Bank has improved its profitability from trading activities, investment services, and mutual funds. This resulted in an increase of SR 62 million or 33.2 percent in fee income and a SR 50 million or 159 percent increase in trading Income.
Al-Rashed added that the quality and diversity of services being offered has attracted more customer deposits. These have increased by SR 5.3 billion or 13.9 percent to reach SR 43.2 billion.
The Bank has also focused on building quality assets in addition to financing productive sectors of the Saudi economy. Thus, net loans and advances grew to SR 23.5 billion, an increase of 13.3 percent compared with the same period in 2001. The Bank has also increased its investment portfolio by 17.3 percent to reach SR 32.5 billion. — (menareport.com)
© 2002 Mena Report (www.menareport.com)