Riyad Bank’s profit rises 12 percent first quarter 2002
The Riyad Bank has recently announced that its profit for the first quarter of 2002 was 365 million Saudi riyals ($97.3 million), an increase of 12 percent over the profit for the corresponding period last year.
This growth in the Bank’s profitability will support the Bank’s commitment to increase the shareholders’ return, stated a bank press release. The return on assets increased to 2.17 percent against 1.95 percent in the corresponding period of last year, while the return on equity increased to 16.93 percent against 15.09 percent.
Bank Chairman Rashed Abdulaziz Al-Rashed attributed the growth in profit to the increase in operating income which posted a rise of SR41 million, equivalent to a six percent rise. There has been improvement in domestic and international market conditions during the ensuing period. Consequently, loans and advances increased to SR22.1 billion, an increase of SR1.7 billion or eight percent, and the investment portfolio grew to SR29.6 billion, an increase of two percent.
Customer deposits rose to SR40.8 billion, an increase of two billion SR or five percent over the corresponding period of 2001. The income generated from domestic services increased by 21 percent.
RB was established in 1957, with an initial capital of SR50 million, as a full service commercial bank. The Saudi private sector owns 71 percent of the bank and the balance is held by Saudi government agencies. Its main activity is providing commercial banking services through its network of 193 branches in Saudi Arabia, in addition to its overseas branches and subsidiaries in London, Houston and Singapore.
Riyad bank is one of the largest banks in the sector. Its long-term performance is one of consistency, though the growth rate has fallen in the last three years. However, the net profit grows at a healthy 15.95 percent rate per annum, according to the Consulting Center for Finance and Investment. Over the 10-year period ending in 2000, RB has grown the size of its balance sheet from SR 48 billion to SR 65.5 billion, representing a 36 percent increase. — (menareport.com)
© 2002 Mena Report (www.menareport.com)