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SABB 1Q profit SAR 854 millionThe Saudi British Bank - SABB recorded a net profit of SAR 854 million for the quarter ended 31 March 2012. This is an increase of SAR 103 million or 13.7% compared to SAR 751 million for the same period in 2011, and an increase of SAR 199 million or 30.4% as compared to the three months ended 31 December 2011, which amounted to SAR 655 million.
Operating income of SAR 1,235 million for the quarter ended 31 March 2012 – an increase of SAR 15 million, or 1.2 %, compared with SAR 1,220 million for the same period in 2011.
Customer deposits of SAR 111.6 billion at 31 March 2012 – an increase of SAR 14.7 billion, or 15.2 %, compared with SAR 96.9 billion at 31 March 2011.
Loans and advances to customers of SAR 91.2 billion at 31 March 2012 – an increase of SAR 15.0 billion, or 19.7 %, from SAR 76.2 billion at 31 March 2011.
The bank’s investment portfolio totalled SAR 23.6 billion at 31 March 2012, a decrease of 3.7 % compared with SAR 24.5 billion at 31 March 2011.
Total assets were SAR 144.0 billion at 31 March 2012, compared with SAR 126.0 billion at 31 March 2011, an increase of 14.3 % or SAR 18.0 billion.
Earning per share is SAR 0.85 against SAR 0.75 (adjusted to bonus share issue 1 to 3 shares) for the corresponding quarter of the previous year.
Sheikh Khaled Olayan, Chairman of SABB, said: “SABB's diversified income streams, ongoing cost controls and emphasis on booking quality assets ensured another strong financial performance for the quarter ended 31 March 2012. Our commitment to supporting our customers enabled us to record significant balance sheet growth while maintaining strong capital and liquidity ratios, further supported by our successful Sukuk issuance in March.”
Date: 04-10-2012
The Saudi British Bank “SABB” has published the results of the headline SABB HSBC Saudi Arabia Purchasing Managers’ Index™ (PMI™) for March 2012 – a monthly report issued by the bank and HSBC. It reflects the economic performance of Saudi Arabian non-oil producing private sector companies through the monitoring of a number of variables, including output, orders, prices, stocks and employment. Saudi Arabian non-oil private sector companies continued to benefit from favourable business conditions in March. Solid market demand boosted new order levels and led to another strong rise in output. Panellists indicated that budget stimulus measures had, in part, strengthened domestic demand while the rising oil prices had the knock-on impact of increased spending across the GCC economies. Registering 58.7 in March, the headline PMI was down on February’s reading of 59.6. Nevertheless, the latest figure was consistent with a strong improvement in operating conditions across the Saudi Arabian non-oil private sector. Favourable economic conditions across the GCC region were a key reason for stronger market demand in March, according to panellists. Overall incoming new work rose at a sharp pace, albeit the slowest for three months. Foreign demand was solid, but anecdotal evidence indicated a divergence between new export business growth from clients in the Middle East and weaker spending from European customers. Rising levels of new business put pressure on capacity during March. Despite another increase in employment, backlogs accumulated at a solid pace. Reports indicated that a number of firms had delayed production due to preparation for new work. Strong current inflows of new work, and an anticipation of further improvements in demand, meant that KSA non-oil private sector firms raised buying activity at a marked rate in March. This in turn led to higher input stocks. Despite stronger demand for inputs, suppliers’ delivery times continued to shorten during March. The rate of improvement in vendor performance was the weakest for six months, however. Panellists cited efficient service and competition amongst suppliers as the principal reasons for faster deliveries. Overall input price inflation faced by Saudi Arabian non-oil private sector companies eased during March, falling notably from February’s nine-month high. Rising purchase prices continued to provide the main impetus to total input cost inflation. Purchasing prices were pushed up by higher prices for fuel, raw material and foodstuffs on the month. Staff costs meanwhile rose at a slower pace over the survey period. Saudi Arabian non-oil private sector firms raised their charges in March. Output price inflation was the strongest for eight months, as reports indicated that firms sought to pass on increased cost burdens amid favourable underlying demand conditions.
Date: 04-03-2012
SABB has marked "Earth Hour 2012" in Saudi Arabia, by turning off non-essential lights in the Bank’s main premises around the Kingdom. The Bank’s initiative comes in line with the intent of the government of Saudi Arabia to combat the phenomenon of "Global Warming”, which has been announced by supporting the campaign run by "World Wide Fund for Nature" (WWF). Earth Hour is a world initiative launched to help reduce the carbon dioxide emissions and global warming.
SABB’s initiative also reiterates the Bank’s role in the community and its contribution to environmental awareness, and the development of the sense of responsibility among individuals and their role towards the conservation of the environment highlighting the leading role of the Bank as a friend of the environment.
It is worth mentioning that "SABB" is taking part in this initiative for the fifth year in a row, and is one of the initiators among top companies and institutions in Saudi Arabia to participate in "Earth Hour". The Bank has also urged staff members to participate in this global campaign, with the aim of sending a strong message that highlights the need for effective measures to reduce the phenomenon of "global warming".
Date: 04-01-2012
The Saudi British Bank (SABB) has organized professional forums on international trade in Riyadh and Dammam, exclusively held to enhance SABB clients’ knowledge on contemporary trends, issues and various aspects of international trade, in particular documentation risks relating to their businesses.
The customer-oriented forums are in line with the Bank’s strategy of reiterating its continued thought leadership in trade finance in the Kingdom. The purpose of the events was to shed the light on technical issues related to international trade dealt by client representatives and decision-makers who are interacting with the Bank’s Trade and Supply Chains department on a daily basis on documentary collections, credits and finance.
Gary Collyer, a globally recognised trade expert and an associate of the London-based International Chamber of Commerce (ICC), addressed large gatherings of SABB clients on international trade practices and the latest Uniform Customs and Practice for documentary credits. Collyer provided comprehensive insight and practical guidelines to clients’ representatives who attended the forums.
Since 1996, Collyer has been the Technical Adviser to the ICC, where he has been responsible for providing numerous opinions related to the application and interpretation of ICC rules. He has been chair of the ICC Working Group for the development of the ISP98, the strategy for the revision of UCP500 and a member for the development and revision of URR525, URC522 and e-UCP, and more recently chair of the ICC Working Group, for drafting UCP600 and the updating of other relating rules and practices.
Over the years, SABB has come to be recognized as Saudi Arabia's leading trade and commercial bank, offering businesses a comprehensive suite of conventional and Shariah-compliant trade products with the ability to structure and implement bespoke solutions to meet complex requirements of local and multinational customers.
The Bank aims to continuously educate and inform Saudi customers about emerging trends in international trade through unique initiatives like the “Trade Confidence Index”, sponsorship of the “Guide to Cash, Treasury and Supply Chain Management in the Middle East” and the SABB Trade Academy which is aimed at educating customers on the concepts, procedures and rules related to international trade and ways to mitigate the associated risk.
In 2011, the Bank won a number of major awards from world renowned magazines and international organizations for being the Best Trade Finance Provider; Best Sub-Custodian Bank; Best Islamic Project Finance Provider, and the Best Cash Management Bank.
Date: 03-31-2012
The Saudi British Bank – SABB has been named ‘Best Commercial Bank Saudi Arabia 2012 by Global and Banking Finance Review, one of the most reputable online portal for news on global banking and finance industry. SABB was chosen for the award after a series of assessments by a panel of financial industry analysts. The process involved detailed research on quality assurance, performance and the professional capability of the Bank.
Some of the criteria used by the Judging panel of Global Banking and Finance Review to arrive at their decision are trade volume, commercial financial products and compliance to a full range of services in conventional and Islamic areas of commerce and business, innovation, customer services, customer experience and service accessibility. SABB Business Direct facility allows commercial customers to have telephone access to banking services 7 days a week.
Commenting on this success, David Dew, Managing Director of SABB, said: “We are delighted to accept this award, which recognises SABB as the commercial banking partner of choice for prominent companies in Saudi Arabia. Our innovative solutions are designed to fit the diverse needs of our customers. In SABB, we combine the best elements of both conventional banking services, the Sharia compliant products and banking state-of-the-art technology to customise our solutions, offering our partners highly reliable and cost effective products and services.”
Since its inception in 1978, SABB has become Saudi Arabia's leading provider of financial services and commercial banking. In 2011, the Bank won a number of major awards from world renowned magazines and international organizations for being the Best Trade Finance Provider; Best Sub-Custodian Bank; Best Islamic Project Finance Provider; Best Corporate and Institutional Internet Bank; Best Cash Management Bank in the Middle East, Bank of the Year and Best Trade Finance Provider, and for being the Most Active Confirming Bank and Supporter of SME Trade in MENA
Date: 03-20-2012
The Saudi British Bank “SABB” has published the results of the headline SABB HSBC Saudi Arabia Purchasing Managers’ Index™ (PMI™) for February2012, a monthly report issued by the bank and HSBC. It reflects the economic performance of Saudi Arabian non-oil producing private sector companies and establishments through the monitoring of a number of variables, including output, new orders, exports, input prices, output prices, quantity of purchases, stocks and employment.
Business conditions in the KSA non-oil private sector continued to improve in February, support by further marked expansions in new orders and activity, as well as accelerated growth of both employment and stocks of purchases. As a result, the headline PMI registered 59.6 in February, marginally below January’s reading of 60.0. However, the improvement in the health of the economy was accompanied by faster input price inflation as demand for inputs strengthened.
Receipts of new work continued to grow in February, and at a marked rate, as respondents reported further improvements to market conditions. The latest data indicated that demand from domestic clients remained a key driver of sales. Nevertheless, new export orders rose at the strongest rate for seven months, with a number of panellists attributing the increase to targeted marketing strategies.
Date: 03-04-2012
SABB PMI in February Purchases rise to 13-month high Non-oil private firms raise wages Export Orders quickest since July 2011
The Saudi British Bank “SABB” has published the results of the headline SABB HSBC Saudi Arabia Purchasing Managers’ Index™ (PMI™) for February 2012, a monthly report issued by the bank and HSBC. It reflects the economic performance of Saudi Arabian non-oil producing private sector companies and establishments through the monitoring of a number of variables, including output, new orders, exports, input prices, output prices, quantity of purchases, stocks and employment.
Business conditions in the KSA non-oil private sector continued to improve in February, support by further marked expansions in new orders and activity, as well as accelerated growth of both employment and stocks of purchases. As a result, the headline PMI registered 59.6 in February, marginally below January’s reading of 60.0. However, the improvement in the health of the economy was accompanied by faster input price inflation as demand for inputs strengthened.
Receipts of new work continued to grow in February, and at a marked rate, as respondents reported further improvements to market conditions. The latest data indicated that demand from domestic clients remained a key driver of sales. Nevertheless, new export orders rose at the strongest rate for seven months, with a number of panellists attributing the increase to targeted marketing strategies.
New business growth encouraged Saudi Arabian non-oil private sector companies to increases their output in February. The rate of expansion was sharp and only slightly slower than January’s seven-month high. Backlogs of work were accumulated over the month, however, as the rate of new order growth exceeded that of activity.
To keep up with rising new order levels, KSA non-oil private sector companies increased purchasing, built up stocks and took on additional staff in February. The rate of job creation was solid and quickened to an eight-survey period high, as many panellists also noted the impact of Saudization policies. With buying activity increasing at its fastest pace for just over a year, stocks of purchases were accumulated at the strongest rate for seven-months.
Stronger demand did have implications for cost pressures, however, as overall input price inflation accelerated to a near series record-high. Data showed that escalating purchasing costs remained the principal force behind the rise in input prices, with panellists noting higher costs from fuel to food stuffs. In contrast, salary inflation slowed to a four month-low, signalling only a modest increase in wage costs. To compensate partially for the rise in total costs, output prices were increased modestly over the survey period
Despite growing demands, vendor performance continued to improve in February. The latest shortening in lead times was the sharpest for just over two years, with panellists citing greater competition and spare capacity as the key causes.
Date: 02-21-2012
The Saudi British Bank-SABB together with The British Council in iyadh have developed and organized a number of growth and development workshops for SABB female staff. The workshops aim to empower female staff for better career path and development opportunities. As a programme of the collaboration agreement between SABB and the Council, the workshops, structured and implemented by female lecturers and training specialists certified by the Council, have been attended by a large number of SABB female employees.
The workshops covered a number of subjects such as assertiveness, setting personal and professional goals, building self-confidence, work-life balance, communication skills, and time management. The guest speakers shared their experiences and success stories with SABB female employees, which enriched the workshop content and recap. More than 350 female employees from various departments at SABB attended the workshops in Riyadh, Jeddah and Dammam.
The participants’ positive feedback reflects their satisfaction of the enriched experiences shared in the workshops. The agreement between SABB and the British Council reflects the bank’s strategy to create new developmental opportunities for its employees of both genders. It also aims to develop its human resources and provide a professional environment which reflects positively on the bank and its employees.
Date: 02-27-2012
HSBC Saudi Arabia has launched its new HSBC Amanah Sukuk Fund. The open-end Shariah compliant fund aims to provide investors with income stabilizing and potential growth over the medium-to-long term by investing in local and international Sukuks. The Fund also invests in Shariah compliant money market funds, term deposits and certificates. The performance of the Fund is measured against a composite benchmark which includes HSBC/NASDAQ Dubai Amanah US Dollar Sukuk Index. One of the main features of the fund is the income distribution, whereby earned income will be distributed to customers on a quarterly basis. Osamah Shaker, MD Head of Financial Markets at HSBC Saudi Arabia said "Among our broad spectrum of investment products, we are pleased to offer customers the ability to invest in local and international Sukuks through our new fund. We believe investment in Sukuks is essential for any comprehensive Shariah compliant investment portfolio. Date: 02-19-2012
The Saudi British Bank (SABB) has been named the "Best Trade Finance Bank" in Saudi Arabia for 2012 by Global Finance magazine, one of the best known international publications in banking and finance. Each year Global Finance selects the best financial institutions around the world. These awards have become a recognized and acknowledged standard of excellence.
Global Finance editors with input from industry analysts, corporate executives and technology experts selected the best trade finance banks in 78 countries and regions. Criteria for choosing the winners included transaction volume, scope of global coverage, customer service, competitive pricing and innovative technologies. While the award is for 2012, it is based on performance during 2011. This is the fourth consecutive year that SABB has won this coveted award, highlighting yet again the market leading position that SABB enjoys among trade finance banks in the Kingdom.
SABB offers a comprehensive suite of conventional and Shariah-compliant trade products with the ability to structure and implement bespoke solutions to meet complex requirements of local and multinational customers, using local expertise and resources backed by HSBC’s global presence. The Bank continuously educates and informs Saudi customers about emerging trends in international trade through unique initiatives like the “Trade Confidence Index”, sponsorship of the “Guide to Cash, Treasury and Supply Chain Management in the Middle East”, various customer engagements events (both locally and overseas) and the SABB Trade Academy which is aimed at educating customers on the concepts, procedures and rules related to international trade and ways to mitigate the associated risk.
Commenting on the award David Dew, Managing Director of SABB said: "Customer care is a priority for us and we will continue to provide the highest service quality and respond to client needs through innovative products and solutions. Trade and Supply Chain remains a key focus area for SABB and we remain committed to meeting the domestic as well as international trade requirements of our clients as they seek to expand their businesses. We are delighted with the appreciation that we have received from Global Finance magazine for the fourth consecutive year in recognition of our leading role in financing trade in the Kingdom”.
Date: 02-12-2012
Fitch Ratings, one of the world’s leading rating agencies said it has affirmed Saudi British Bank's (SABB) Long-term local and foreign currencies Issuer Default Ratings (IDRs) at 'A' respectively with Stable Outlooks. Fitch has simultaneously affirmed SABB's Short-term IDR at 'F1', Individual Rating at 'B/C', Support Rating at '1' and Support Rating Floor at 'A'. In its report, Fitch states that SABB's profitability remained sound with lower impairment charges, adequate and improving capitalization, and comfortable liquidity position. The IDRs and Individual rating also consider SABB's strong franchise and the benefits derived from being an associate bank of HSBC Holdings plc, Fitch’s report added.Commenting on the affirmation, David Dew, Managing Director of SABB, said: “We are pleased with Fitch’s rating affirmation and the stable outlook. The affirmation from Fitch is an indication of SABB’s financial strength, strong profitability in a low interest rate environment, prudent risk management and adequate capitalisation".
Date: 02-07-2012
The Saudi British Bank “SABB” has published the results of the headline SABB HSBC Saudi Arabia Purchasing Managers’ Index™ (PMI™) for January 2012 – a monthly report issued by the bank and HSBC. It reflects the economic performance of Saudi Arabian non-oil producing private sector companies and establishments through the monitoring of a number of variables, including output, new orders, exports, input prices, output prices, quantity of purchases, stocks and employment. Rising to 60.0 in January, from 57.7 in December, the PMI signalled a robust start to the year for firms operating in Saudi Arabia’s non-oil private sector. The improvement in business conditions was supported by an acceleration of already strong growth rates of both new orders and output over the month. New business received by Saudi Arabian non-oil producing businesses increased at a marked rate during January. Overall new order growth accelerated to a six-month high, while new business from abroad grew at a stronger rate for the second successive survey period. As a result, backlogs of work were accumulated for the fourth month running, and at the fastest pace since April 2011. The improvement in demand and higher backlogs encouraged companies to increase their output levels further in January. The rate of expansion was marked and stronger than in any month in the second half of
Feb-05-2012
The Saudi British Bank (SABB) has recognized the Zamil Group for completing 50 years as a key SABB Commercial Banking customer. At a ceremony held in the bank Sheikh Hamad Al Zamil and Sheikh Adib Al Zamil met with SABB official delegation headed by SABB Chairman Sheikh Khaled Olayan and were presented with a memento in appreciation of this important milestone. The ceremony was attended by senior personnel from SABB, HSBC Saudi Arabia and Al-Zamil Group.
Speaking at the occasion, Sheikh Khaled Olayan stated "SABB and the Zamil Group have established a partnership that can be cited as a role model for bank customer/relationships. The essence of this partnership is for the mutual benefit of both parties to grow together side by side. SABB will support Zamil Group by all possible means to sustain the success of this relationship. We look forward to the next 50 years to further strengthen this partnership."
Thanking SABB for this recognition, Sheikh Hamad Al-Zamil stated: "We as Zamil Group value our relationship with SABB. We have grown together over the years as a result of this partnership. I would like to thank SABB for their contribution to our success over the years and we look forward to the continued success of our relation in the years to come."
SABB's partnership with Zamil Group goes back to the year 1955, when SABB opened a personal current account for the late Sheikh Abdullah Al Hamad Al Zamil. This account was the starting point of one of the largest groups in the Kingdom, and since then the SABB-Zamil relationship has gone from strength to strength."
Date: 02-01-2012
HSBC acted as the sole financial advisor to NBK Capital Private Equity Fund Company B.S.C. in relation to the sale of its 40% stake in ِAl-Tala’a International Transportation Co. Ltd. (Hanco), a Saudi fleet leasing and rental operator.Established in 1976, Hanco is one of the largest fleet leasing and rental companies in Saudi Arabia. The company operates one of the largest car fleets in the Kingdom, with a network of rental outlets and workshop facilities located across the country.The transaction valued Hanco at $140 million, and is one of the first cross-border transactions in Saudi Arabia for this year.
Valery Talma, the Head of HSBC Saudi Arabia Investment Banking Advisory, stated: "We are delighted to be the sole advisers of NBK Capital in this important transaction, which demonstrates our capabilities to execute cross-border transactions in Saudi and the MENA region, based on a strong local expertise combined with the global HSBC platform".The transaction reinforces HSBC's leading investment banking position in Saudi Arabia.
Date: 01-24-2012
HSBC Saudi Arabia Limited led the very successful SAR 15 billion 10-year Sukuk issuance for the General Authority of Civil Aviation (GACA). The funds from the Sukuk issuance will be used for the construction of the new King AbdulAziz International Airport in Jeddah.
Walid Khoury, CEO of HSBC Saudi Arabia Limited, said: "We are extremely proud and honoured to be part of this historic transaction, that is globally the largest single-tranche Sukuk ever issued. Moreover, the transaction is fully Shari'ah compliant, guaranteed by the Ministry of Finance and approved by Saudi Arabian Monetary Agency (SAMA) for repo-ability. Our dedicated team worked closely with the General Authority of Civil Aviation to meet all of their requirements and helped in setting another benchmark in Sukuk issuance in the Kingdom".
Fahad Al-Saif, Director and Head of Debt Capital Markets at HSBC Saudi Arabia Limited said: "The GACA Sukuk issuance has conceptually set the new risk-free rate for the Saudi Arabian markets. We are always keen to help lead the development of Islamic financing industry and Saudi capital markets through innovative solutions such as this issuance. This transaction stresses our integrated Islamic and innovative financing solutions capabilities which HSBC is committed to deliver in Saudi Arabia".
Date: 01-23-2012
HSBC Emerging Markets Index reflects little change with only marginal increase to 52.2 in Q4 2011. Decline in inflation across emerging markets but eurozone crisis casts shadow on growth prospects. Manufacturing slowdown sharpest since Q1 2009 led by emerging Asia, including China, although India outperformed Slowdown in world trade growth throughout 2011 since peaking at the beginning of the year. Emerging market growth remained lacklustre in Q4 as an improved rate of expansion in service activity only marginally outweighed a further decline in output from manufacturers, the HSBC Emerging Markets Index (EMI) shows.
The EMI edged slightly higher to 52.2, from 52.0 in Q3, reflecting a subdued rate of economic expansion as world trade declined during 2011, following its peak earlier in the year. The risk of further economic contagion from the US, the UK and even the emerging nations themselves weighed heavily on sentiment.
Consistent with a trend identified in the previous EMI, service activity outperformed manufacturing, as the divergence between each sub-index reached its widest in 11 quarters. Emerging market manufacturing output fell for a second successive quarter and at the sharpest pace since Q1 2009, driven by a reduction in factory output across emerging Asia. In contrast, service providers saw business activity growth accelerate in Q4 from the nine-quarter low seen in Q3, and the services sector expressed continued optimism in its one-year business outlook, although the degree of positive sentiment was muted relative to previous indices.
Price pressures eased to a ten-quarter low as manufacturers and service providers felt the benefits of ongoing quantitative tightening by central banks across the emerging world in response to inflationary pressures identified by previous HSBC EMIs. The Q4 EMI signalled that the index monitoring manufacturing input price trends was more than 19 points lower than one year earlier.
Stephen King, HSBC’s Chief Economist, said: “Emerging markets finished 2011 with only a marginal improvement in economic expansion for the final quarter, emphasising a decline in world trade growth over the year after peaking at the beginning of 2011. Although not recording the previous lows at the height of the recession in late 2008 and early 2009, this quarter’s EMI is far from those levels reached in the early months of recovery during late 2009 and early 2010.
“While some have blamed a reduction in emerging market activity on factors beyond their own control, namely the eurozone crisis, and weakness both in the US and UK, the emerging economies themselves have also contributed to a lack of momentum. Additionally, as events in the Middle East increased economic and political uncertainty in the region and also led to elevated oil prices, inevitably emerging nations had to adopt policies to inhibit growth and ease price pressures to avoid inflation.
“These ‘quantitative tightening’ policies have had some success, replacing the inflationary concerns of policymakers in the emerging markets with new growth fears which are expected to continue during 2012 as the full impact of the eurozone crisis is felt. Although the emerging markets will have much to contend with over the next twelve months, they have retained some firepower to deal with the fallout, with room to cut interest rates and provide fiscal stimulus to provide some ‘bounceback-ability’ across the region.”
The decrease in manufacturing production was led by Taiwan and South Korea but the trend was mirrored across Asia, with China and Hong Kong easing and Singapore output stagnant. In contrast, Indian manufacturers registered a solid expansion in production levels, although the index was at the third-lowest level in the series history. Russia and Turkey recorded stronger rates of activity growth, with the rise in the latter the fastest in three quarters, while the Czech Republic and Poland registered expansion at markedly weaker rates than one year earlier.
Emerging market manufacturers reported fractionally lower volumes of new export business during Q4, although the pace of decline slowed compared with the previous quarter. China, India and Russia all experienced renewed export growth but Brazil saw a third successive quarterly decline. Of the other emerging markets surveyed, Turkey, Saudi Arabia and the UAE also recorded growth in the fourth quarter while all other markets declined. Service sector activity growth edged upwards from the nine-quarter low seen in Q3 2011, with Brazil and China both recording faster rates of expansion during Q4 even as India and Russia both saw growth ease. When questioned about the prospects for activity over the coming year, emerging market service providers demonstrated muted optimism, with Chinese confidence touching a series-low, closely followed by India and Russia who posted 11- and 12-quarter lows respectively. Brazil bucked this trend, with service providers the most optimistic in four years.
Publish date: 01-17-2012
The Saudi British Bank (SABB) recorded a net profit of SAR2,888 million for the year ended 31 December 2011 - an increase of SAR1,005 million or 53.4% as compared with SAR1,883 million for the same period in 2010.
Operating income of SAR4,899 million for the year ended 31 December 2011 – an increase of SAR60 million or 1.2 per cent, compared with SAR4,839 million for the same period in 2010.
Customer deposits of SAR105.6 billion at 31 December 2011 – an increase of SAR10.9 billion or 11.5 per cent, compared with SAR94.7 billion at 31 December 2010.
Loans and advances to customers of SAR84.8 billion at 31 December 2011 – an increase of SAR10.6 billion or 14.3 per cent, from SAR74.2 billion at 31 December 2010.
The bank’s investment portfolio totalled SAR22.2 billion at 31 December 2011, a decrease of SAR2.8 billion, or 11.2 per cent compared with SAR25 billion at 31 December 2010.
Total assets were SAR138.7 billion at 31 December 2011, compared with SAR125.4 billion at 31 December 2010, an increase of 10.6 per cent or SAR13.3 billion.
Earnings per share of SAR3.85 for the year ended 31 December 2011 – an increase of 53.4 per cent from SAR2.51 for the same period in 2010.
Sheikh Khaled Olayan, Chairman of SABB, said: “SABB has achieved strong profit growth with its robust and diversified operating income streams and cost containment measures. SABB has steadily grown its balance sheet during the year with ongoing drive to book quality business and continues to take a prudent view on provisioning. We are committed to supporting our customers and seeking new opportunities for business growth.
“We thank our customers for their continued support and our staff for their commitment and contribution to the bank's success.”
The Saudi British Bank “SABB” has published the results of the headline SABB HSBC Saudi Arabia Purchasing Managers’ Index™ (PMI™) for December 2011 – a monthly report issued by the bank and HSBC. It reflects the economic performance of Saudi Arabian non-oil producing private sector companies and establishments through the monitoring of a number of variables, including output, new orders, exports, input prices, output prices, quantity of purchases, stocks and employment.
The PMI slipped slightly to 57.7 at the end of the fourth quarter, from 58.1 in November. The fall in the index signalled a weaker improvement in business conditions across Saudi Arabia’s non-oil private sector. Moreover, the headline index remained below its long-run average (59.9).
Behind the weaker PMI reading were slower expansions in its two largest components -- output and total new work. Employment and input stocks, two of its other components, rose at slightly faster rates.
Incoming new work to the Saudi Arabian non-oil private sector continued to rise during the latest survey period, bolstered by a sharper expansion in new export business. However, the overall rate of growth of total new business moderated since November. This was reflected by a slower increase in activity. Where new business and output rose in December, panel members commented on strong economic conditions, good demand, competitive selling prices and favourable exchange rates. Large firms saw the most pronounced increase in new work.
Further growth of new orders, alongside expectations of improved demand, led companies to build input stocks and take on additional staff in December. Both buying activity and input holdings rose at sharper rates, although the rise in input stocks remained weak in relation to its historic trend. Employment rose at the fastest pace since August. Large firms recruited new personnel at a faster rate than SMEs.
Respondents noted faster input deliveries in December. However, these improvements in vendor performance did not prevent further backlog accumulation in the non-oil private sector. Outstanding business rose for the third month running and at a sharper pace. Panellists attributed more work-in-hand to new order gains.
Price pressures cooled in December, with both purchase prices and staff costs rising at weaker rates, as well as charge inflation easing to near-stagnation.
The Saudi British Bank "SABB" announced that its Board of Directors has decided to recommend to the Extra-Ordinary General Meeting, subject to the approval of official authorities, the increase of SABB capital by 33% from SAR 7.5 billion to SAR 10 billion by issuing of bonus shares to its shareholders at the rate of one bonus share for each 3 shares held to the shareholders registered in the Bank's shareholders register as of the end of trading on the Extra-Ordinary General Meeting day which is scheduled for the first quarter of 2012 and which shall be announced in due course.
The Capital increase of SAR 2.5 billion represents 33% of the Bank's capital so that the Bank's new capital will become SAR 10 billion compared to SAR 7.5 billion. As a result of the intended increase, the number of shares issued will increase from 750 million shares to 1000 million shares, as the additional increase will be used to enhance the bank’s capital base and grow its profits and consequently strengthening the shareholders returns.
The Board of Directors has also decided to recommend to the Bank's General Meeting the payment of annual cash dividends for 2011 of SAR 562.5 million at the rate of SAR 0.65, which represents 6.5% of the share's nominal value per share after deduction of Zakat, taking into consideration that the Cash Dividends shall not accrue to the bonus shares. Eligibility for these distributions will be to shareholders registered in the Bank's share register as of the end of trading on the Extra-Ordinary General Meeting day scheduled for the first quarter of 2012 and which will be announced in due course after having obtained the necessary approvals.
The Saudi British Bank- SABB has announced the launch of a comprehensive Renminbi (RMB) proposition for its corporate customers who will now be able to open RMB accounts at selected SABB branches in Saudi Arabia. SABB’s RMB proposition was launched by David Dew, Managing Director, SABB in a ceremony at the SABB Head Office in the presence of His Excellency Mr. Y Wang, Economic & Commercial Counselor at the Chinese Embassy in Riyadh and over 50 distinguished clients.
This will allow SABB customers to trade with China, subject to People’s Bank of China rules, and receive as well as pay in RMB without having to convert their currency exposure. This proposition will provide greater flexibility for KSA Corporates to manage their RMB working capital needs and foreign exchange risk. The ability to make payments and settle trade transactions directly in RMB should also enable Saudi Corporates to secure better trade terms from their Chinese suppliers.
Last year, China's total trade volume was just over RMB 20 trillion, of which RMB 506 billion was settled in RMB. In the first half of this year alone, RMB 950 billion of China’s total trade was settled in RMB. Given the rate of trade growth with China, it is predicted that more than half of the trade between China and emerging markets will be settled in RMB in the next 2-4 years. China remains the Kingdom's fastest growing trading partner and the launch of SABB’s RMB proposition marks an important milestone in ensuring that SABB customers are and will be ready to take advantage of this emerging scenario.
HSBC, SABB's global partner, has had a continuous presence in mainland China for 146 years. It is one of the largest investors amongst foreign banks in mainland China, having invested over US$5 billion in select mainland financial services entities. The network in mainland China comprises over 100 outlets including 24 branches. Apart from this, HSBC has significant presence in Asia Pacific where RMB is increasingly emerging as one of the major trading currencies.
Speaking on the occasion, David Dew, Managing Director of SABB, said: “The Kingdom of Saudi Arabia and the People’s Republic of China are key players in the emerging global economy and trade between our two countries is set to expand at a rapid pace. Leveraging the strength of our partner, SABB has put together a comprehensive RMB proposition keeping in mind the existing and future requirements of our customers. With our strong presence at both ends, SABB / HSBC are ideally placed to assist businesses in the KSA as they seek to expand their trade with the Far East in general and China in particular.”
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