SABB launched the first mobile ATM vehicle in KSA with dual self-service machines. Three vehicles were deployed in Mecca area, to serve Hajj pilgrims in this season. These vehicles operate by communicating with SPAN network through satellites.
In this occasion Mr. Adel Al-Nasser, SABB’s Deputy Managing Director, said: “This initiative comes in conformity with our strategy to be closer to our customers, and our desire to provide them with the state-of-the-art banking services. SABB has adopted a layered approach to the security of the mobile ATMs, with many levels of logical and physical security. The vehicles are fitted with a servicing counter, air-conditioning and 2 modern ATMs.
Mr. Al-Nasser also commended the unlimited cooperation received by SABB from Mecca municipal authorities, and their unrelenting efforts to provide the best possible services to the huge number of pilgrims. Its also worth mentioning that SABB has provided amble electronic services, that help customers to access banking transactions with comfort and ease, i.e. internet banking services, SABBNET, SABBTadawul, Telephone banking services, SABB Direct, and the SABB’s vast network of ATM machines.
26 December 2006
SABB honoured at KFUPM’s Employment Day
SABB received a commemorative plaque from Dr. Khaled S. Al-Sultan, Rector of KFUPM. It was in appreciation of the bank’s support to the saudisation program, which has benefited King Fahd University of Petroleum and Minerals’s (KFUPM) graduates.
The presentation was made on the occasion of “The Employment Day” organized by KFUPM on December 11 2006.
Mr. Tarek Abdulrahman Al-Shubaily, General Manager Human Resources at SABB, said: “SABB’s initiative in sponsoring and supporting such programmes underlines the bank’s firm commitment towards its national and social duties, and are in conformity with directives that call for the participation of national companies and establishments, in hiring Saudi youth to contribute to the different aspects of development currently witnessed in the country.”
In this context, he disclosed that there are “a number of vacant positions at SABB, in a variety of specialties, for Saudi graduates. We normally employ up to 50 graduates per year, who join us through the “Future Managers Program”. Applications for jobs will be received via the SABB website after the Eid Al-Adha holidays.
Engineer Tarek Al-Kahily, Head of Recruitment at SABB, spoke on “Personal Interview Skills”, to help candidates prepare for personal interviews. He also gave tips on the best practices to apply for jobs. A representative from SABB’s Recruitment Section briefed the graduates on the recruitment procedures at SABB. He also spelled out the details of the training and employee development programmes available at SABB.
SABB is the official sponsor of KFUPM’s Chair-in-Finance, and currently employs 77 graduates of KFUPM in a number of roles across the bank.
24 December 2006
SABB Signed SAR916M Financing Deal with The United Installment Co. Ltd.
SABB has signed an SAR 916 million car financing deal with the United Installment Co., an affiliate of Abdullatif Jameel Group. The deal, considered to be a strategic initiative between two of the biggest commercial institutions in the Kingdom, is expected to contribute in a big way to developing the company’s activities in the field of financial services.
The deal was signed at the company’s offices in the presence of Dr. Saad Al-Ghamdi, Senior Vice President, and Mr. Saeed Bahazeg, General Manager of Finance, on behalf of the Abdullatif Jameel Group. SABB was represented by Mr. Alaa Al-Jabri, Regional Manager - Western Province, and Mr. Ghassan Al-Amoudi, Senior Relationship Manager, Commercial and Institutional Banking.
SABB is considered one of the pioneering Saudi banks in supporting projects in socio-economic fields that are Shariah compliant. It has many achievements to its credit during recent years, which qualified the bank to win the award of “Best bank in the Kingdom of Saudi Arabia” for many years by Euromoney International Magazine; it also won an outstanding rating by the international credit rating agency “Standards and Poor”.
19 December 2006
Focus on human development key to our success,
Al Nasser tells Premium Customers
SABB recently hosted a number of parties in honor of premium customers throughout the Kingdom. These included receptions in Jeddah, Medina and Khamis Mushait in the Western/ Southern region; Riyadh and Buraidah in the central province; Dammam and Al-Ahsa in the Eastern Province. Among those present were: Adel Al-Nasser, SABB Deputy Managing Director; Nabil Al-Hoshan, General Manager, Financial Banking; Ahmed Al-Ameer, Area General Manager Central Province; Alaa Al-Jabri, Area General Manager, Western Province, and Zaki Abu Al-Saud, Area General Manager, Eastern Province.
Speaking on the occasion, Adel Al-Nasser said: “SABB believes that the human element is the base of development and success in terms of the Bank’s social mission and the development of Saudi cadres. At the social/charitable level, the bank donated Eid gift packs consisting of food, consumer products, clothing and other items to needy families and school bags for orphans with the help of some SABB volunteer staff. On the Saudi cadre development side, a large number of male and female graduates have been sent on scholarships to obtain MBA degrees from the UK. Also, a program has been set up to groom 2,500 trainees for a career in the banking industry.
Regarding financial, banking and operational achievements, Al-Nasser added: “The most important achievement is the growth in profits by 31% over last year to SAR2,455 million for the third quarter of the year. During the past year, SABB contributed its share as a principal manager and underwriter of a number of successful IPOs, including Emaar Economic City and Al-Drees Petroleum and Transportation Services. The Bank has also been honored with many awards such as: “Best Bank in the Kingdom in Foreign Exchange” by Euromoney Magazine, “Best Fund Manager”, by SAMA Investment Products Committee and “Best Internet Investment Services Bank”.
A number of economists delivered lectures on the occasion. Dr. Abdul Aziz Bin Mohammed Al-Dakheel spoke on “Saudi Economy – The present and Future Prospects” at the Central Province party. Mr. Rashid Al-Fawzan delivered a lecture at the Eastern Province party titled “The present and future of the equity market”. The theme of Dr. Ali Bin Mohammed AL-Daqqaq’s speech at the Western Province party was “Economical Variables and Capital Market”. The audience gave a thumbs-up to all the presentations.
17 December 2007
SABB Participates in Fighting Money Laundering, Terrorism Financing And Economic Crimes In The Kingdom
SABB has recently participated in the 16th training course organized by SAMA to their honor the judges of The Ministry of Justice and The Bureau of Grievances about money laundering, and financing economic crimes.
SABB participation in this course underlines its commitment to the community and its extensive efforts to fight money-laundering crime, which adversely affects national and global economies.
SABB was represented in this activity by Mohammed Bin Ibrahim Al-Obaid and Ahmed Bin Nasser Al-Otaibi from Compliance Department. A comprehensive presentation about money laundering in the Kingdom was given to the judges to acquaint them with specialized scientific knowledge on money laundering and combating economic crimes. The judges were advised of the most important systems, instructions and practices to develop their skills in this field on the national and global levels.
Their honor the judges were acquainted with the procedures, controls and systems adopted by commercial banks to uncover laundering of money realized from illegal sources as followed by money launderers to this effect.
SABB advised their honor the judges of the roles and duties of commercial banks and their staff as provided for in the Money Laundering Control Rules, which has been put into effect and the rules for control of money laundering and combating economic crimes financing as issued by SAMA in the year 2003.
06 December 2006
SABB holds Transaction Banking Seminar
SABB hosted a customer seminar at the Intercontinental Hotel, in Riyadh on 8 November 2006, to highlight the latest developments in Cash Management and Trade Finance. Senior executives from HSBC Group were invited to speak about the fast changing developments in areas such as global internet banking and invoice financing.
Participants were informed that while Saudi Arabia leads other GCC countries in awareness and infrastructure for effective cash management, local businesses are not widely using the products and services that are available. Efficient use of working capital is a priority for any corporate treasurer and banks can provide them the tools to better manage their liquidity and balance sheet. An example given was the use of Direct Debits instead of checks for collection of funds. Direct Debits offer a fast and automated method of collection as opposed to the manual process involved with checks.
“The objective of this seminar was to inform customers about hidden value in their balance sheets that could be unlocked with the right products,” explained Faisal Ansari, Head of Transaction Banking at SABB.
The speakers also encouraged the participants to adopt best practices from around the world. As an associate of HSBC Group, one of the largest banking groups in the world, SABB has access to a worldwide pool of expertise that can benefit Saudi-based customers. Regionally, HSBC is represented in all the GCC countries and can provide trade and electronic banking services to customers who are expanding beyond the Kingdom.
20 November 2006
As Part of “SABB in the Community”
Eid Gift for poor families
With the countdown to Eid al-Fitr underway, SABB has come out with “Eid Gifts” for poor and needy families in Riyadh.
The Bank’s humanitarian gesture, which is part of its social responsibility, involved distribution of gift packs consisting of food, consumer products, clothing and other items required during Eid festivities.
A group of SABB employees volunteered in this program, which was implemented within the framework of the Bank’s firm commitment to serve the community.
Commenting on SABB’s initiative, Mr. Ibrahim Abo-Mouti, Head of Corporate Communication, at SABB said: “The bank’s objective is to stress its commitment to provide charitable activities, and reflect our keenness to promote social programmes, that serve the community. “Eid Gifts” is one of those projects that underline the Bank’s commitment to social responsibility in helping needy families. He lauded the initiative by SABB’s team, which comprised employees from different departments.
The latest initiative by SABB is part of its community outreach programmes which include SABB’s Scholarship Programme for a Master’s degree from the U.K., and SABB’s sponsorship of the Chair of Finance at King Fahad University of Petroleum and Minerals, as well as continuing support to and sponsorship of “The School Bag Project”, initiated by the Riyadh Orphans Charitable Society “INSAN”.
16 October 2006
SABBTakaful Awarded Insurance License In The Kingdom Of Saudi Arabia
SABB Takaful Company has been awarded a license to operate in the insurance industry in the Kingdom of Saudi Arabia, allowing it to offer a comprehensive range of Shariah-compliant Takaful products for personal and corporate customers.
SABB Takaful will offer both Family and General Takaful products. The Family Takaful product range will consist of life-wrapped unit-linked savings plans, single contribution plans and protection products, aiming to meet clients’ protection needs such as for children’s education. The initial range of General Takaful plans will cover home and contents, travel and personal accident for the personal market. The corporate and commercial range will offer packaged solutions for Small and Medium Enterprises (SME), marine and cargo risk, and commercial fire protections.
John Coverdale, SABB’s Managing Director, said: “This exciting development will allow SABB to expand its product range and meet its customers’ needs in the Kingdom’s insurance industry which is set to experience significant growth. SABB Takaful will combine HSBC’s global expertise in insurance and Takaful with SABB’s local knowledge and presence, offering our customers a clear choice of Takaful products for their protection needs.”
SABB has a network of 75 branches, including 12 ladies’ branches. These already offer a comprehensive range of Islamic banking services to personal customers. Through HSBC Amanah, the global Islamic banking division of the HSBC Group established in 1988, SABB Takaful will be able to take advantage of the Group’s experience in providing high quality, Shariah-compliant Takaful products. The Group already provides Takaful products in Singapore, Malaysia and the UK.
Takaful is an alternative to conventional insurance products. It is based on mutual co-operation in the sharing of risk and addresses key features associated with conventional insurance that do not comply with the Shariah law.
SABB Takaful Company will be a public joint stock company to be incorporated in Saudi Arabia with a start-up capital of SAR100 million. It will be 32.5 per cent owned by SABB and 32.5 per cent owned by subsidiaries of the HSBC Group. The balance will be floated to the public by way of an initial public offering (IPO).
15 October 2006
SABB Third Quarter 2006 Results
Highlights
Commentary
SABB recorded a net profit of SAR2,455 million (US$655 million) for the nine months ended 30 September 2006. This represents an increase of 31.0 per cent over the SAR1,874 million (US$500 million) earned in the same period in 2005. Earnings per share increased to SAR6.55 (US$1.75) compared to SAR5.00 (US$1.33) for the same period last year.
Customer deposits increased to SAR59.7 billion (US$15.9 billion) at 30 September 2006 from SAR45.6 billion (US$12.2 billion) at 30 September 2005.
Loans and advances to customers increased to SAR41.2 billion (US$11.0 billion) at 30 September 2006 from SAR39.6 billion (US$10.6 billion) at 30 September 2005.
The bank’s investment portfolio totalled SAR16.6 billion (US$4.4 billion) at 30 September 2006, down from SAR16.9 billion (US$4.5 billion) at 30 September 2005.
John Coverdale, managing director of SABB, said: “SABB’s focus on its core banking businesses has continued to deliver robust growth and results for its shareholders. The expected impact on income resulting from a turbulent stock market in the first half of the year has been absorbed, and SABB is well placed for future growth.
“Operating revenues have grown by 30.1 per cent compared to the same period in 2005, while our cost base has increased 34.1 per cent. SABB continues to invest in strategic technology, sales and service delivery channels in order to enhance customer service and grow the business.
“The credit quality of our various portfolios remains sound and delinquencies are in line with anticipated increases due to growth in our cards and personal loan businesses. Deposit growth has been strong over the past few months as investors have rebalanced their portfolios and several corporate clients have mobilised funds for significant projects. Capital and liquidity positions remain very strong.
“The third quarter of 2006 saw the formal establishment of our investment banking affiliate, HSBC Saudi Arabia Ltd, a key milestone in SABB’s evolution from a traditional bank to a diversified financial services group.
“We thank our customers for their continued support, and our staff for their commitment and contribution to the bank’s success.”
10 October 2006
SABB wins the 1st place in the “Basic Investment Essentials Certificate” Programme
SABB has won the 1st place among Saudi banks in the number of employees who have acquired “The Basic Investment Essentials Certificate”, offered by the Institute of Banking, an affiliate of Saudi Monetary Agency “SAMA”. According to the latest statistics issued by the institute (end of July 2006), 448 employees of SABB have acquired this certificate.
In this occasion Mr. Adel Al-Nasser, SABB’s Deputy Managing Director said, “SABB has paid great attention to this programme, in accordance with the policy of SAMA that aims at increasing investment awareness among the employees of the banking sector in the Kingdom of Saudi Arabia, and to create a solid ground to cope with the obvious expansion in stocks markets, which has witnessed a noticeable increase in the privatization of major Saudi companies, where SABB has endeavored to train any employee who has a direct relation with the provision of financial or business services, by acquiring ‘The Basic Investment Essentials Certificate’, after passing the required examination prepared by the Banking Institute”.
It is worth mentioning that SABB has won the award of “Best Investment Fund Manager”, for 2005. This award is offered by the “Investment Products Committee”, under the supervision of the Saudi Monetary Agency “SAMA. It has been awarded to SABB in a ceremony organized by the said Committee, which consists of representatives from the different Saudi banks. SABB Investment Fund diverse categories has won 26 awards, thanks to SABB’s outstanding performance in management of investment funds, within a time span that ranged between one, three, and five years.
18 September 2006
SABIC Set To Launch Its First Sukuk In Saudi Market Lead Managed By HSBC Saudi Arabia Limited
SABIC mandated HSBC Saudi Arabia Limited as sole lead manager and bookrunner for its new Sukuk (Sharia-based capital market instrument), which is set to be the first Sukuk to be launched in the Kingdom under the new Capital Market Law, with an issuance size of SAR 3 Billion. Monday, 17 July 2006 is the last date for investors to put in orders, but the order book has shown strong momentum given significant interest in this new instrument.
“This will be a first for SABIC and a proud first for HSBC in the Kingdom,” says Rajiv Shukla, from, HSBC Saudi Arabia Limited. “The SABIC Sukuk intends to harness SABIC’s renowned financial strength inject further depth into the domestic capital markets. We are thankful particularly to the CMA as well as to various government departments and SABIC itself for their support in launching this new breed issue that adds a valuable component to the domestic capital market which itself is facilitating innovation and economic growth in the Kingdom.”
To be issued directly by SABIC, the Sukuk will be the first to be approved by a Shariah Committee of a Saudi Arabian Bank, the respected SABB Amanah Shariah Supervisory Committee. “This Sukuk structure is unique in many ways says Hissam Kamal of HSBC Amanah from HSBC Saudi Arabia Limited. “The Sukuk is directly underpinned by a real business activity, is fully tradable and provides for structured returns satisfying the institutional need for this important Shariah-based asset class, hopefully paving the way for more such issuances from other leading companies”, adds Mr Kamal. The issue is also set to be the first to be admitted to CMA’s Official List and to be settled/cleared through Tadawul.
Together, HSBC Saudi Arabia Limited and SABIC will ensure that the issuance and offering meets the highest international standards of capital market practices and is compliant with local capital markets requirements.
Mr Shukla also highlights how the SABIC Sukuk, while tailored for institutional investors, will ultimately benefit the broader community: “This innovative issue will positively impact the capital markets, as it will provide an ideal opportunity for investment institutions to diversify their portfolios and offer sound investment options to their retail clients”
HSBC Saudi Arabia Limited with an authorised and paid-up share capital of SAR50 million, is a joint venture investment bank owned 40% by SABB and 60% by a wholly-owned subsidiary of the HSBC Group.
17 July 2006
The Saudi British Bank First Half 2006 Results – Highlights
Commentary
SABB recorded a net profit of SAR1,809 million (US$482 million) for the six months ended 30 June 2006, an increase of 50.8 per cent over the SAR1,200 million (US$320 million) earned in the first half of 2005. Earnings per share increased to SAR4.82 (US$1.29) compared to SAR3.20 (US$0.85) for the same period last yearW.
Customer deposits increased to SAR55.1 billion (US$14.7 billion) at 30 June 2006 from SAR44.5 billion (US$11.9 billion) at 30 June 2005.
Loans and advances to customers increased to SAR39.1 billion (US$10.4 billion) at 30 June 2006 from SAR35.4 billion (US$9.4 billion) at 30 June 2005.
The bank’s investment portfolio totalled SAR15.3 billion (US$4.1 billion) at 30 June 2006, against SAR17.0 billion (US$4.5 billion) at 30 June 2005.
John Coverdale, managing director of SABB, said: “We are pleased with SABB’s performance for the first half of 2006. The bank continues to deliver consistently superior returns for its shareholders. These very robust half-year results demonstrate the strength of its core and well-diversified banking businesses.
“This underlying strength has enabled the bank to weather the volatile stock market conditions of the last few months and places it on a solid footing for future growth. Operating revenues, excluding gains on non-trading investments, have grown by over 52 per cent compared to the comparable period in 2005, and customer deposit growth accelerated during the year. SABB continues to build on its high standards of customer service and invest in product delivery systems. Credit quality remains sound and our capital and liquidity positions remain very strong.
“In April, SABB issued a EUR325 million five year Floating Rate Note (FRN) under its US$1 billion Euro Medium Term Note (EMTN) programme. This was the first ever euro denominated international bond by a Middle Eastern issuer.
“In the recent Euromoney awards, SABB’s investment banking joint venture with HSBC was named ‘Best Investment Bank in Saudi Arabia’. This was the first such award by Euromoney and highlights the value to our customers of SABB’s investment with HSBC in this fast developing and key market sector.
“The Directors have approved the payment of a net interim dividend of SAR1.5 per share to SABB shareholders (gross dividend of SAR1.625 per share). This amounts to a total gross interim dividend payment of SAR609 million and represents 33.7 per cent of net profits achieved for the first half of 2006.
“We thank our customers for their continued support and our staff for their commitment and contribution to the bank’s success.”
Click to view 2006 First Quarter Financial Statements
11 July 2006
SABB Distributes SAR609.4 Million As Interim Dividend For The First Half Of 2006
The Chairman of The Saudi British Bank (SABB), Sheikh Abdullah Bin Mohammed Al-Hugail, has announced that the bank’s Board of Directors has approved the distribution of a net interim dividend of SAR1.5 per share (after deduction of Zakat) subject to obtaining official approvals from local regulatory authorities. This will result in a total gross interim dividend payment of SAR609.4 million before deduction of Zakat, representing an increase of 15.9 per cent over the same period last year.
Dividends will be credited on 23 July 2006 to shareholders with accounts linked to their investment portfolios and who are on the bank’s share registry on 15 July 2006, who maintain accounts with SABB and whose details are available at the share registry.
Shareholders who have share certificates which have not been deposited in investment portfolios should contact the Saudi Share Registration Company with proof of their investment portfolio numbers before 15 July 2006, to enable the bank to transfer the dividends to their accounts.
Al-Hugail commented that the Board’s decision to approve the dividend distribution is in line with the bank’s aim to consistently reward its shareholders.
4 July 2006
SABB Best Local Bank in Saudi Riyal Foreign Exchange
SABB has been classified as Best Local Bank of Saudi Riyal Foreign Exchange provider in Euromoney’s 2006 foreign Exchange Awards.
The Euromoney Awards for Excellence are regarded as the benchmark awards for financial services globally. A research team and awards panel has been dedicated to rate all the submissions on both quantitative and qualitative factors over the past 12 months period to decide the award winners.
Mr. Al-Tuwaijri SABB Treasurer quoted “The award has been won by SABB as a result of the bank’s efforts and excellent performance backed by a team of experienced and professional staff. This enabled SABB Treasury Division to offer an unparalleled portfolio of products, ranging from foreign exchange and interest rate protection to money market operations, precious metals, fixed income vehicles and Islamic solutions”.
SABB have recorded many achievements in the past years most of which was the “Best Bank in the Kingdom for 2004” award by Euromoney International for the second year in a row. It was also given a distinct rating by the prestigious Standard & Poor’s Credit Rating Agency.
2 July 2006
SABB receives Mutual Funds subscription applications via the Internet
SABB recently launched the management of Mutual Funds through the Internet through its web site.
The new service enables SABB customers to manage all operations relating to Mutual Funds through SABBNET. This includes subscription and redemption processes as well as account reporting. All these services are made through the Internet without the necessity to visit SABB branches. In addition, SABB is also offering up to 50% discount on management fees for new on-line subscriptions.
Commenting on the event, John Richards, Executive Director and Chief Operating Officer said “ this initiative is part of a wider program which aims to facilitate access by customers to the services offered by SABB through the internet”.
SABB was rated “ Best Mutual Fund Manager For 2005” by the Investment Products Committee, which operates under SAMA supervision.
20 June 2006
As part of SABB commitment to the community:
As a part of its ongoing commitment to the community, SABB held a gathering on the occasion of offering scholarships to pursue MBA courses in the UK, which was attended by the candidates and a number of SABB’s senior executives.
SABB was the first Saudi company to introduce such an educational program in 1997 enabling Saudis to obtain higher education abroad. Until this year, 45 students benefited from this program and joined recognized universities in the UK. SABB provides the tuition fees, travel allowance and a daily allowance for the selected candidates and does not stipulate that the graduate should work with SABB after completion of the course.
Dr. Kasib AlRashidy, Senior Manager Career Development said: “SABB scholarship scheme underlines the Bank’s commitment to the development of the Kingdom and its community and in line with the directions for national companies and institutions to participate in the development of national cadres who have the capability to effectively involve themselves in the different aspects of the Kingdom’s development “. AlRashidy emphasized that human element is crucial for the success of every development experience.
It is worth mentioning that SABB scheme is open to all Saudi male and female graduates with degrees from recognized universities who wish to pursue their higher studies to improve their long-term career positions.
17 June 2006
HSBC Saudi Arabia named Best Investment Bank
HSBC Saudi Arabia has been named “Best Investment Bank in Saudi Arabia” by pre-eminent international finance magazine Euromoney. The award were presented at the 2006 Euromoney Awards for Excellence Middle East Dinner in association with QFC in Doha. This is the first time that Euromoney has awarded an institution in this category. The category has been introduced as Euromoney sees, for the first time, a true investment banking market emerge in the country with more and more major transactions, both debt and equity, taking place.
“We are delighted by this important award as it clearly recognises the value to our customers of SABB’s investment in this joint venture with its largest share holder HSBC” said: John Coverdale, SABB’s Managing Director.
In awarding HSBC Saudi Arabia the award for “Best Investment Bank in Saudi Arabia” Euromoney highlighted that, “HSBC is invariably the bank of choice when there is an extremely complex or ground breaking transaction that has to be implemented, including for example its appointment as lead manager for the first domestic sukkuk in Saudi Arabia which will be issued for the industrial giant SABIC”.
Euromoney was particularly impressed with HSBC’s breadth of coverage noting that it “……leads the local banking sector in the breadth and depth of its offerings to the petrochemical, oil and gas, telecoms, power and financial sectors.”
10 June 2006
SABB wins Best Investment Funds Manager Award
SABB has been awarded the Best Investment Funds Manager for the year 2005 by the SAMA Investment Products Committee.
The announcement was made at a party held by the Committee, which consists of Saudi banks’ representatives.
SABB Investment Funds have so far won 26 prizes on the basis of the Bank’s excellent performance in managing the Investment Funds over different periods ranging from one, three to five years.
SABB has also scooped the first prize for its management of a group of investments, such as the Amanah Saudi Equity Fund, which has bagged the first prize for 2005 and the Saudi Equity Trading Fund which took the first prize for the same year and the Best Performance Award in the three and five years category.
The awards, it is pointed out, reflect the high caliber of the SABB team in managing all categories of Mutual Funds, which lead to increased demand for SABB investment products owing to the customer’s confidence in the quality of the product and service.
The Investment Funds awards covered 20 categories including Trading Funds of the Capital Markets, Local and International Equity and Bonds Markets.
5 June 2006
While participating in the 10th Graduate and Career Day as a Platinum Sponsor:
At the occasion of the 10th Graduate and Career Day held at IPA, His Royal Highness Prince Salman Bin Abdul Aziz Al-Saud, Governor of Riyadh and Chairman of the Higher Committee For Saudisation handed over to Mr. Tareq Al-Shubaily, General Manager Human Resources of SABB a certificate of thanks and appreciation for SABB efforts in supporting and encouraging Saudisation and employment programs.
The award has been offered in appreciation of SABB support of the event as a platinum sponsor and continued support of Saudisation and employment programs, as well as for its distinguished efforts in attracting Saudi qualified cadres, employment and training of IPA graduates. This qualified the Bank to win the IPA award for 3 consecutive years.
Commenting on the event, Mr. Tareq Al-Shubaily, General Manger Human Resources of SABB said the presence by HRH Prince Salman Bin Abdul Aziz Governor of Riyadh and Chairman of the Higher Committee For Saudisation at the event and extension of award to SABB reflects the Leadership keenness to appreciate the Bank’ s efforts and those of all other institutions who achieve higher Saudisation percentages which constituting an encouragement and support for these sectors.
SABB has focused during the last three years on establishing a long-term effective strategy for effective Saudisation by attracting Saudi graduates from universities, colleges, institutes and higher schools to join them to the continuous training programs, which have been specially designed to develop the skills of staff. To this effect SABB has established 3 training centers, which are the best equipped among other banks. Such centers assume the preparing of annual training plans for all different sectors including the new staff in addition to continued training of present staff each according to his requirements. Training courses range between 6 months and one year to qualify newly joined staff.
30 May 2006
SABB Opens A New Branch In Najran
SABB has recently opened a new branch in Najran as a step for strengthening its presence near to its customers. The new branch includes an area for Premier customers and self-service centre in addition to ample of car parking area.
Mr. Atef Mufti, SABB Senior Manager Network – Western Province, speaking on the occasion said “ The opening of this branch is a part of the Bank’s plan for geographical expansion Kingdom-wide for our services to be accessible by all our customers as well as for creating the most convenient environment for serving our customers; in addition to alleviating the pressure on other nearest branches in the area. He added “ the new branch is designed in line with other SABB branches Kingdom-wide on a structured basis that would help customers perform their transactions smoothly and efficiently. Najran branch has been provided with the necessary channels to satisfy customers’ requirements in this area and to reflect SABB theme “ local vision, international expertise”
6 May 2006
SABB Participates in Fighting Money Laundering, Terrorism Financing And Economic Crimes In The Kingdom
SABB has recently participated in the 15th training course organized by SAMA to their honor the judges of The Ministry of Justice and The Bureau of Grievances about money laundering, terrorism financing and economic crimes.
SABB participation in this course underlines its commitment to the community and its extensive efforts to fight money-laundering crime, which adversely affects national and global economies.
SABB was represented in this activity by Mohammed Bin Ibrahim Al-Obaid and Ahmed Bin Nasser Al-Otaibi from Compliance Department. A comprehensive presentation about money laundering in the Kingdom was given to the judges to acquaint them with specialized scientific knowledge on money laundering and terrorism financing activities as well as on combating economic crimes. The judges were advised of the most important systems, instructions and practices to develop their skills in this field on the national and global levels.
Their honor the judges were acquainted with the procedures, controls and systems adopted by commercial banks to uncover laundering of money realized from illegal sources as followed by money launderers to this effect.
SABB advised their honor the judges of the roles and duties of commercial banks and their staff as provided for in the Money Laundering Control Rules which has been put into effect and the Rules for control of money laundering and combating terrorism financing as issued by SAMA in the year 2003G.
19 April 2006
SABB Issues First Ever EURO currency International Bond By A Middle Eastern Issuer
SABB recently closed the issuance of a EUR 325 million 5 year Floating Rate Note (FRN) under its newly increased US$1 billion Euro Medium Term Note (EMTN) Programme. This is SABB’s second FRN issue, and the first ever EURO currency denominated international bond issue by any Middle Eastern issuer. With this issuance, SABB has maintained its position as a pioneer for Saudi banks, having last year been the first in the Kingdom to set up an EMTN Programme.
Ahead of issuance a senior level delegation representing SABB undertook a roadshow in major financial centres in Europe. The response was very positive, attracting and diversifying the investor base to those investors whose natural currency was the EURO, in addition to other investors who continue to be attracted by SABB’s strong credit fundamentals. SABB was able to achieve its strategic objective of regional investor diversification, with two-thirds of the deal placed in Europe and a further 16% placed in Asia, with the balance consisting of Middle Eastern institutions. This is the highest non-Middle Eastern investor distribution by any GCC financial institution, and the highest distribution into Europe. SABB successfully widened its European investor base, with orders coming in from France, Germany, Austria, Switzerland, Luxembourg, Cyprus, Malta and the UK, including a number of investors who had never previously purchased Middle Eastern bonds.
The key messages that were presented to investors were SABB’s strong creditworthiness, excellent credit ratings (“A” by both, Standard & Poor’s and Fitch), 40% ownership by the HSBC Group, and the 20% risk weighting that SABB, as a Saudi entity carries. The combination of these factors enabled the deal to be competitively priced to pay a coupon of 30bps, and at inside where the bank could have priced on direct US$ FRN issuance.
John Coverdale, Managing Director of SABB, said, “We are delighted to have again led the market in capital markets innovation, with the first ever EURO denominated issuance out of the region by any issuer. SABB’s success in this issuance is testimony to its credit fundamentals, forward-looking and proactive liquidity management, and a desire to constantly innovate. With its second issuance in as many years, SABB has demonstrated its intent to be an active player in the international debt capital markets, and looks forward to maintaining existing investor relationships and to fostering new ones.”
The arranger of the Programme and sole lead manager of the bond issue is HSBC. Representing the lead manager, an official from HSBC said, “With this transaction HSBC has consolidated its leading position in GCC bond issuance, opening up a market sector which is expected to become increasingly accessed in the coming months.” HSBC is the first bank to have lead managed Eurobonds out of each of the GCC countries.
17 April 2006
SABB First Quarter 2006 Results – Highlights
Commentary
SABB recorded a net profit of SAR986 million (US$263 million) for the quarter ended 31 March 2006. This represents an increase of 116.3 per cent over the SAR456 million (US$122 million) earned in the quarter ended 31 March 2005. Earnings per share increased to SAR2.63 (US$0.70) compared to SAR1.22 (US$0.32) for the first quarter in 2005.W
Customer deposits increased to SAR54.5 billion (US$14.5 billion) at 31 March 2006 from SAR42.3 billion (US$11.3 billion) at 31 March 2005.
Loans and advances to customers increased to SAR39.5 billion (US$10.5 billion) at 31 March 2006 from SAR32.3 billion (US$8.6 billion) at 31 March 2005.
The bank’s investment portfolio totalled SAR18.3 billion (US$4.9 billion) at 31 March 2006, an increase from SAR16.4 billion (US$4.4 billion) at 31 March 2005.
John Coverdale, managing director, said: “SABB has built upon the momentum generated last year and has delivered strong first quarter results well above 2005 levels.
“Operating revenues have benefited from the exceptional growth seen in the local equity market in the first two months of the year, and robust contributions from our core banking activities. The bank’s cost:income ratio has continued to reduce despite incurring higher overheads to support business growth, and the loan portfolio remains sound as reflected in the low provision for credit losses.
“On 11 February 2006 The Saudi British Bank re-branded as SABB and adopted the HSBC Hexagon logo demonstrating the close relationship that exists between SABB and our global partner.
“In early March, SABB’s credit rating was upgraded from A- to A by Standard & Poor’s and currently equals the highest ranking for any Saudi bank.
“Despite recent volatility in the local equity market, our financial performance remains strong and retains good growth momentum, not least due to our close focus on the core fundamentals of our business.
“We thank our customers for their continued support, and our staff for their commitment and contribution to the bank’s success.”
Click to view 2006 First Quarter Financial Statements
11 April 2006
SABB finalized sale of fractional shares
A SABB official said that further to the approval given by the Extra-Ordinary General Meeting held on 21.2.1427 (21.3.2006) for increase of SABB capital from SAR 2500 Million to SAR 3750 Million by issue of one bonus share for each two shares held to shareholders registered in SABB registers as at the end of Tuesday 21.2.1427 (21.3.2006), the fractional shares resulting from the capital increase have been sold through TADAWUL system. Effective Thursday 08.03.1427 (06.04.2006) the fractional shares sale proceeds shall be credited to shareholders accounts for those who have provided the Share Registry with their accounts details. Those whose account details are not available with Share Registry or incomplete may contact the nearest SABB branch to receive their dues.
04 April 2006
SABB Held Workshop on Basel 2
SABB held a Basel 2 Senior Leader’s workshop recently to brief its Board of Directors regarding the requirements of the new Capital adequacy regulations that are being introduced by SAMA to the Saudi banking system as part of a Global initiative by the worlds Central Banks. The workshop was lead by Chris Konstan a Basel 2 specialist from SABB’s associate bank HSBC.
“This is an important initiative for SABB, which is well placed to manage its Capital requirements effectively so as to compete aggressively when pricing top tier credits for major Saudi Corporates.” Said Adel Al-Nasser, General Manager Credit and Risk.
2 April 2006
The Board of Directors of SABB issued a resolution appointing Mr. Adel Marzook Al-Nasser, General Manager Credit and Risk as Deputy Managing Director with effect from June 2006 in place of Mr. Sulaiman Al-Hamdan who resigned from the Bank’s services to attend to his own business.
The Board thanked Mr.Al- Hamdan for his loyalty and dedication during his 22 years with the bank and wished Al-Nasser good luck and success in his new role.
22 March 2006
SABB Obtains The First Guarantee Of Finance For Small And Medium Enterprises.
Minister of Finance Dr. Ibrahim ALAssaf has signed the SME Financing Scheme Guarantee for SABB during the ceremony for signing of guarantees issued to local banks providing finances to small and medium enterprises, in presence of Sheikh Abdullah Al-Hugail SABB Chairman
SABB has recently obtained the first guarantee by SIDF, which manages (SME Finance) scheme in consideration of financing a national enterprise which is involved in recycling of industrial remains by way of Murabaha, a product of SABB Amanah Islamic Banking Services for corporations.
The guarantee is the first of its kind under the SME Finance Scheme, which has been established by the Ministry of Finance and local banks. The scheme guarantees to local banks a share of the finance extended to small and medium enterprises. It also aims at enabling small and medium enterprises to obtain the necessary finance in line with Sharia principles to develop and expand their activities as well as to encourage banks to finance this category after ascertaining their economic feasibility.
Commenting on this event, Sheikh Abdullah Al-Hugail, the Chairman said “ this represents a precedent in the economy of the Kingdom and adds to the achievements of SABB at the level of Saudi Banking sector. SABB contributed to this program based on its belief in the program objectives and on the anticipated benefits to citizens and the economic and business environment as a whole. The program contributes to the upgrading of local enterprises competition capabilities and positively reflects on the Saudi economy in view of the job opportunities provided, training and recruitment of nationals as well as substitution of imported commodities with local products. This is in addition to increasing the capabilities of financed enterprises to produce innovative products and services of high quality”.
It is worth mentioning that the SME Finance Scheme management has agreed to issue a guarantee favoring SABB guaranteeing 50% of the value of finance provided by SABB to a firm active in the environment protection fields.
18 March 2006
S&P raises SABB’s Credit Rating to (A)
Standard & Poor’s Rating Agency, a leading international rating agency, has raised SABB’s long term counter party credit ratings from (A-) to (A). This upgrade reflects the bank’s strong position and ability to meet its international financial liabilities.
The Agency stressed that the upgrade of SABB’s rating reflects the bank’s strengthening financial profile partly driven by the very robust economic environment and the quality of SABB’s assets. S&P said this rating is based on the strong financial performance and the quality of assets, which exceed those of most Middle Eastern banks; it also reflects the technical support provided by the HSBC Group. “SABB is expected to maintain its solid earnings stream and good market position”, said S&P.
John Coverdale, SABB Managing Director said “The rating emphasises the solid financial position of SABB in the market; it also reflects the bank’s ability to provide a full set of quality services aimed at meeting the requirements of its customers.”
He added that the rating would further reinforce SABB’s slogan “Local vision, international expertise”.
14 March 2006
Albabtain & Co And SABB Sign An Islamic Deal For Hedging Of Lending Rates.
AlBabtain Energy & Telecom Services Co entered into an Islamic deal under which the Bank will protect the company against fluctuation of lending rates.
Commenting on this event, Mohammed Al-Tuwaijri, SABB Treasurer, said “ SABB is a pioneer in creating Islamic banking services that suit the market requirements. This deal is one of the products SABB developed to meet the requirements of companies wishing to conduct Islamic deals. This emphasizes SABB ability and success in managing the projects it is involved in and to provide best financial products and solutions to cope with the modern requirements and caters for the special needs of investors and borrowers.
He added that Al-Babtain Company, represented by its management are distinguished for their ability to understand the facts and various requirements of the market as well as to seek effective solutions for drawing the future financial requirements of the company; this is in addition to their keenness to benefit from the Islamic banking services.
The hedging against the fluctuation of financing costs is a product of SABB Amanah, and the deal was liaised and followed up by Ahmed Al-Omair, Area General Manager Financial Services and Corporate Department.
4 March 2006
The First Of Its Kind Globally,
Fawaz Al-Hokair & Co And SABB Sign A Deal For Islamic Hedging Of Lending Rates.
Fawaz Al-Hokair & Co entered into a deal under which the Bank will protect the company against rise of lending rates. The deal, being the first of its kind globally is purely Islamic; reflecting the ability and flexibility of Islamic banking to respond quickly to the modern financial requirements and the tailoring thereof to meet the needs of borrowers and lenders.
Commenting on this event, Mohammed Al-Tuwaijri, SABB Treasurer, said “ This is a precedent event for international financial markets and adds to the achievements of SABB. This emphasises SABB ability and success in managing the projects it is involved in and to provide best financial products and solutions to cope with the modern requirements and caters for the special needs of investors and borrowers.
He added that Al-Hokair Co, represented by its management are distinguished for their ability to understand the facts and various requirements of the market as well as to seek effective solutions for drawing the future financial requirements of the company; this is in addition to their keenness to benefit from the Islamic banking services thereby enabling the company to achieve precedence by the conclusion of this special deal for shifting the company’s loan to be purely Islamic.
SABB has recently launched many Islamic financial derivatives that suit all requirements of investors and borrowers in liaison with its foreign partner, HSBC.
15 February 2006
SABB Gains Global Brand Equity
SABB launched its new logo marking the beginning of a new era in its long history in the Kingdom. The unique HSBC-linked logo in black, red and white hexagonal shape was disclosed last week in the SABB’s model branch in north Riyadh. The event for the occasion was held in honor of Lord Mayor of London Alderman David Brewer, and British Ambassador in Saudi Arabia Sir Sherard Cowper-Coles, and attended by many executives working in the banking and financial markets industry.
Abdullah Mohamed Al-Hugail, SABB chairman, in his speech welcoming the guests and the dignitaries said: “the new image is culminating over thirty years of great partnership with HSBC during which SABB successfully contributed to the establishment of solid banking industry.” The Lord Mayor Brewer said: “For HSBC is headquartered in London, the City of London is committed to support its business partners, we are happy to promote the brand of the City of London and the new logo of SABB and HSBC as well.”
Earlier in a speech relating to SABB’s new logo and its link to HSBC, John Coverdale, SABB managing director, said, “What we are linking with is a powerful, established global brand, the fastest growing brand in the world, now worth over $10 billion.”
“Although we are only 40 percent owned by HSBC we were formally licensed to use it. We will definitely use it to benefit from HSBC advertising and we will increase our brand equity in the Kingdom,” Coverdale added. “The new logo is a renewal of our pledge to our clients toward continuing success and quality services and products.”
HSBC is one of the largest banking and financial services organizations in the world with international network comprising over 9,700 offices in 77 countries.
14 February 2006
SABB Unveils Today Its New Image
With the unveiling of its new image, “SABB” under the concept “Local Vision… International Expertise”, The Saudi British Bank starts today a new era of banking business. Its aim is to continue its mission under a new look and innovative concept which will enhance its banking and investment performance in the Kingdom and strengthen its capability to face future challenges as well as to meet the requirements of its widening customer base.
The new logo highlights the depth of strategic association between SABB and HSBC which reflects its quest to utilise the international expertise of its staff and their capability to remain apace with the latest banking techniques for the service of the local community taking into consideration the community’s particularities and observing its traditions and habits.
10 February 2006
SABB To Relaunch Its New Image Soon
Al-Hamdan: The new image reflects future trends and the bank's endeavor to secure an ideal banking environment
The Saudi British Bank has announced its intention to come out with a new logo, which reflects the Bank's future vision to enhance its role in the Saudi banking sector.
Mr. Sulaiman Al-Hamdan, Deputy Managing Director, said the new logo implies an innovative and advanced concept, which the Bank seeks to adopt. It also relies on the international experience SABB has acquired over the past years in the banking field for serving the local community. Another objective is to prepare for the challenges of the 21st century which entail dramatic changes and developments requiring the bank to provide tailored solutions to meet the expectations of its customers.
He said "the new logo will further enable SABB to continue its commitment to the new concepts which have been adopted by the bank, and which are based on the provision of unique customer services as well as making available to them the latest international banking services to meet their expectations whilst maintaining excellent performance in terms of community commitment and social responsibility.
As for the reasons that prompted SABB to redesign its logo, Al-Hamdan stated that the basis of successful operation requires periodic review and assessment of the plans and visions in place to cope with the new developments for maintaining progress. We hope that these measures would contribute to creating a harmonious working environment that would enable us to realize our customers' expectations in line with the highest standards. This does not mean that we shall give up or dilute our commitment to past strategies for which we have retained the confidence of our customers and reached very high levels of growth.
04 Fbruary 2006
The Saudi British Bank 2005 Annual Results
Highlights
Commentary
The Saudi British Bank (SABB) recorded a net profit of SAR2,504 million (US$668 million) for the year ended 31 December 2005. This represents an increase of 52.2 per cent over the SAR1,646 million (US$439 million) earned in 2004. Earnings per share increased to SAR50.09 (US$13.36) compared to SAR32.92 (US$8.78) for the previous year.
Customer deposits increased to SAR48.5 billion (US$12.9 billion) at 31 December 2005 from SAR44.7 billion (US$11.9 billion) at 31 December 2004.
Loans and advances to customers increased to SAR40.8 billion (US$10.9 billion) at 31 December 2005 from SAR31.6 billion (US$8.4 billion) at 31 December 2004.
The bank’s investment portfolio totalled SAR16.4 billion (US$4.4 billion) at 31 December 2005, an increase from SAR14.7 billion (US$3.9 billion) at 31 December 2004.
John Coverdale, Managing Director of The Saudi British Bank, said: “ SABB has achieved excellent results for 2005 as it was well-positioned to serve its customers during a year of strong economic expansion and stock market performance in Saudi Arabia. In addition to the momentum provided by new product and revenue streams, the bank has maintained a close focus on the core fundamentals of our business and product range to ensure balanced growth.
“All our business and product segments have performed well and carry good momentum into 2006. Credit and investment portfolios are sound and prudently managed. Capital and liquidity remain strong, and we plan to utilise some of our 2005 earnings to further increase our paid-up capital via a bonus share issue. During 2005, the bank has also invested in staffing, technology infrastructure and the improvement of facilities and operational processes to enhance capacity and service levels for future growth.
“Notable among many highlights of 2005 was a credit ratings upgrade from Fitch Ratings, and approval for establishing the first full-service, independent investment bank in Saudi Arabia as a joint venture between SABB and the HSBC Group. I am confident that bank is now very well placed to serve the growing domestic and global needs of our customers.
“The Directors have recommended a final net dividend of SAR5 per share. The total net dividend for 2005 will amount to SAR15 per share as an interim net dividend of SAR10 per share was paid in July 2005.
“The Directors and management of The Saudi British Bank would like to thank our customers for their continued loyalty and support, and our staff for their dedication and effort in achieving these excellent results.”
24 January 2006
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