HSBC Saudi Arabia Limited
Petro Rabigh Offering Price Has Been Set at SR 21 per Share
HSBC Saudi Arabia Limited, the Financial Advisor and Lead Manager for the initial public offering (“IPO”) of Rabigh Refining and Petrochemical Company (“Petro Rabigh”), has announced that the preparation work for Petro Rabigh IPO is proceeding smoothly. Timothy Gray, the Chief Executive Officer of HSBC Saudi Arabia, has confirmed that all receiving banks’ branches will be ready to receive investors’ applications for 219 million shares between Saturday 5/1/2008 until the last day of subscription on Saturday 12/1/2008.
Mr. Gray mentioned that the share price has been determined based on the institutional bookbuilding process at SR 21 representing SR 10 par value and SR 11 premium, with a total offering size of SR 4,599 million. 50% of the IPO shares will be offered to Saudi individuals and the remaining 50% will be offered to selected institutional investors. The Lead Manager reserves the right to reduce the institutional allocation from 50% to 25% in the event that retail demand is sufficient and upon approval of the CMA. The minimum subscription is 10 shares and the maximum is one million shares.
With regard to the allocation of shares, Mr. Gray mentioned that a maximum of SAR 37.5 million worth of shares will be allocated to Petro Rabigh employees. The allocation to retail subscribers will be performed in two stages: in the first stage, each subscriber will get a minimum of 10 shares. During the second stage, and in the event there is a sufficient demand by retail subscribers, each subscriber for 50 shares or less will get full allocation of what he applied for provided that total shares allocated do not exceed total shares offered to retail subscribers (162,464,286 shares). The balance of the Offer Shares (if available) will be allocated on a pro-rata basis.
The Company has appointed all local banks as receiving banks in order to facilitate the participation of all Saudi citizens in this Offering, as Mr. Gray mentioned.
Mr. Gray also said that the reason behind the delay in announcing the above information is the need to coordinate with the Japanese partner (Sumitomo Chemical) which is a publicly listed company in Japan that has certain disclosure requirements towards its shareholders and the regulators of the stock market in Japan.
Petro Rabigh, launched in September 2005 as a 50:50 joint venture between Saudi Aramco and Sumitomo Chemical, is one of the largest combined oil refinery and petrochemical production facility ever to be built at one time. Saudi Aramco will supply Petro Rabigh with the feedstock necessary to operate the plant, including ethane, on a long-term, fixed-price basis and will market the refined products produced by Petro Rabigh. Sumitomo Chemical will provide petrochemical international sales and marketing expertise, as well as technology licensing.
Petro Rabigh’s mission is to inspire its employees to ensure that it is the global leader in its industry. Through its strong ethics, human talent, best practices and diversified products, the company will meet the needs of its clients and add value for its partners, customers, shareholders, employees and communities. Petro Rabigh is committed to environmentally sustainable development.
25 December 2007
As Part Of Its Commitment To Environment Preservation
SABB Launches Eid E-Greeting Cards To Replace Traditional Paper Cards
As part of "SABB in the Community" programme and in line with the bank's commitment to preserve the environment, SABB has designed Eid e-greeting cards to be used by different bank's departments/areas, to replace the traditional paper cards, and consequently assist in preserving the environment.
Mr. Ibrahim Abo-Mouti, Head of Corporate Communication at SABB, said: "The bank's aim is to develop a sense of responsibility among individuals, and remind them of their role towards environment preservation. SABB is currently applying a number of initiatives related to this cause, which emanate from its pioneering role of "Friend of the Environment", and to convey the importance of preserving it to staff, some of these initiatives - which are already in place – are; water & electricity conservation plan, and the recycling of paper used in the bank's daily routine work."
10 December 2007
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 2007), 739 employees of SABB have acquired this certificate.
On this occasion Mr Adel AlNasser, 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.
14 November 2007
SABB Appoints Abdulaziz Al-Helaissi Area General Manager, Central Province
SABB has recently appointed Mr. Abdulaziz Bin Abdulrahman Al-Helaissi as the Area General Manager of its Central Province Management, with responsibility for the bank’s overall activities in the Central Province.
Al-Halaissi has 18 years of banking experience including 8 years in senior managerial positions. Of this period, Abdulaziz most recently spent 11 successful years with a local Saudi bank where he assumed various managerial positions last, of which was Head of Merchant Banking Group and Deputy General Manager Corporate Banking.
Commenting on his appointment, Al-Helaissi said: “SABB is one of the leading financial institutions in the Kingdom, and I shall endeavor to nurture and develop the bank’s businesses in order to boost the contributions in the Central Province Management as a means to achieve the bank’s objectives based on their defined strategy."
10 November 2007
SABB Securities Limited has opened for business as SABB’s equity brokerage and financial securities service. It is the latest addition to the rapidly growing SABB/HSBC group of companies operating in Saudi Arabia,
This follows the granting of an operational license by the Kingdom’s Capital Market Authority (CMA) in June.
SABB Securities is now the official operating company for all SABB’s equity brokerage and securities services businesses formerly offered by SABB itself. It was established in compliance with the CMA’s requirements for banks to separate certain businesses into independent entities.
Jehaan Ismail, Chief Executive Officer of SABB Securities commented: “The formation of the new company dedicated to brokerage and securities services enables us to focus even more closely on the needs of our customers, thus further enhancing the quality of service we give them. But clients will also continue to benefit from SABB Securities’ close association with both SABB and the HSBC Group which have a preeminent position in the financial services industry in Saudi Arabia.”
SABB Securities offers the full range of brokerage services including domestic, GCC and international equity brokerage. Trading is offered through a variety of channels including on-line services, toll-free phone call centres and investment centres.
In addition, SABB Securities offers custody and clearing services to both local and foreign corporate and institutional investors, including the safekeeping of securities, receipt and delivery of securities, conversion of share certificates, portfolio reporting, corporate action reporting and payments collection. It will also be involved in the floatation management of IPO’s, rights issues, dematerialization of shares, promotion of institutional fund services products to external fund managers, fund administration services and back office support to newly formed non-bank financial institutions.
6 November 2007
Best-selling Futurist Reveals His Vision Of The Future To SABB Clients
Dr Michio Kaku, world-renowned theoretical physicist and futurist, brought his vision of the world in the near future to an exclusive gathering of SABB clients in Riyadh and Jeddah.
Dr Kaku, whose visit to Saudi Arabia coincides with the launch of a three-part series on BBC TV documenting his Visions of the Future, spoke about the results of his interviews with around 150 of the world's top scientists, including Nobel laureates and directors of the major science laboratories, to give the most authentic, authoritative glimpse into the world of 2020. These are the scientists who are actually inventing the future in their labs.
In his address to SABB clients, Dr Kaku painted a compelling picture of the future of computers, telecommunications, biotechnology, nanotechnology, and energy, and how this will affect business and our lives. With graphic illustrations, he demonstrated that in 2020, we will:-
He also addressed issues such as the potential of artificial intelligence replacing humans, the work and living space of the future, how jobs will evolve and the outlook for energy.
Earlier, Dr Kaku joined senior management of SABB at a lunch to mark his visit to Saudi Arabia.
Dr Kaku is Professor of Theoretical Physics at the City University of New York and author of the best-selling books, “Parallel Worlds” and “Hyperspace”. In academic circles, he is well known for continuing to develop Einstein's goal of a 'theory of everything', uniting the four fundamental forces of nature into one theory. He hosted the BBC series on “Time” and contributes frequently worldwide to TV science documentaries, radio programmes and to both academic and consumer publications.
5 November 2007
HSBC and SABB deepen their Commitment to Saudi Arabia
During a visit to Riyadh today Clive Bannister, Group Managing Director, Insurance, HSBC Holdings Ltd, highlighted HSBC’s commitment to SABB’s insurance activities, as well as to the development of insurance in the Kingdom.
The visit to the Kingdom by Mr Bannister, who is responsible for HSBC’s global insurance business and one of the industry’s leading executives, highlighted the significant potential of the KSA insurance sector, as well as the investments being made by HSBC in support of SABB.
Mr Bannister outlined several key developments during the last four months:
Commenting on HSBC’s involvement in insurance in KSA, Clive Bannister said: “HSBC recognizes the strategic importance of the insurance market within Saudi Arabia, and HSBC is committed to expanding our range of products and services following the launch of SABB Takaful earlier this year.”
John Coverdale, Managing Director of SABB, said: “These new joint venture investments by SABB and HSBC demonstrate our confidence in the fundamental strength of the Saudi economy and the long-term development of the insurance sector.”
Mr Bannister continued: “HSBC and SABB believe Takaful is a growing market with massive potential, as a result of low market penetration rates and a large, untapped market; a strong economy that is planning for the future; a growing population that is defying the demographic trends affecting other regions; and increasing wealth leading to a focus on protection and investing for the future.”
Recent estimates value the Saudi insurance market at SR8 billion, with anticipated growth of 125% to SR18 billion by 2012.
Said Mr Bannister: “Insurance is valuable and significant to SABB and HSBC for other reasons. Notably, because it deepens customer relationships, enabling SABB to provide customers with greater choice and better service, as well as expanding the range of commercial opportunities.
“SABB Takaful’s future is closely-linked with the priorities of SABB and HSBC, two businesses with strong track records in Islamic finance. One of the clear benefits of this investment for SABB Takaful is their ability to use HSBC’s experience and Takaful know-how and expertise worldwide, to provide Shariah-compliant Takaful products in the Kingdom. SABB Takaful also benefits from Saudisation, with more than 50% of employees from KSA.
““Taking a lead from the HSBC Group strategy, SABB demonstrates the power of ‘joining up’. HSBC Insurance’s 1000 Day Strategy is focused on ‘Banc assurance’, which is what is at the heart of SABB Takaful.”
David Hunt, Managing Director of SABB Takaful commented: “The opportunity for Takaful in the Kingdom is significant, exciting and proven. We are well placed to develop our business at a time of considerable growth. While our stock market rise has been encouraging, we are absolutely clear about the challenge that lies ahead: persuading people to buy our Family and General Takaful plans because they are practical, valuable and ethical.”
2 November 2007
SABB Plans to Launch Insurance Brokerage Company
SABB, one of Saudi Arabia’s leading financial institutions, today announced that the bank is planning to launch SABB Insurance Services Limited (SISL), an insurance brokerage service aimed at assisting corporations and commercial concerns to manage risk.
The company will be a joint venture between SABB and HSBC Insurance Brokers. Through a dedicated team of professionals, it will provide risk assessment and insurance advice for companies operating in the Kingdom. The company is expected to be operational soon.
The new brokerage will complement the activities of SABB Takaful, the bank’s Islamic insurance company, another joint venture with HSBC, which was launched earlier this year. Together, the two organizations will enable SABB to offer a full range of insurance products to all types of customers in Saudi Arabia, from individuals to major corporations.
John Coverdale, Managing Director of SABB, commented: “The market potential in Saudi Arabia for both Islamic and conventional products is both enormous and exciting. We are determined to be among the leaders in bringing the benefits of insurance to the widest possible audience in the Kingdom.”
Estimates value the current Saudi insurance market at SR 8-billion with an anticipated growth of 125% to SR 18-billion by 2012.
SABB’s partner in the brokerage venture, HSBC Insurance Brokers, brings over 30 years experience of operating in the Gulf and is recognised as a leading international insurance broker, with offices in United Arab Emirates, Oman, Sweden, UK, China, Taiwan, Philippines, India, Korea, Singapore, Bermuda and Italy.
Clive Bannister, Group Managing Director, HSBC Insurance, said: “Saudi Arabia is an important market for HSBC Insurance – dynamic, with great potential for growth, and with customers who value innovative, ethical products and world-class service. We are delighted to show HSBC’s continuing commitment to the Kingdom by investing and participating in the venture with SABB”.
Located in Riyadh initially, SABB Insurance Services will open branch operations in Jeddah and Al Khobar. These will provide local services to companies across the Kingdom and, through the HSBC network, internationally.
1 November 2003
SABB Board Recommends Increase Of SABB Capital To SAR 6000 Millions By Issuing 3 Bonus Shares For Each 5 Shares Held.
The Board of Directors, in line with the bank’s policy to strengthen its capital base has decided to recommend to the Extra-Ordinary General Meeting scheduled to be held in the first half of 2008, after having obtained the necessary regulatory approvals, the increase of SABB paid capital from SAR 3750 Million (USD 1000 Million) to SAR 6000 Million (USD1600 Million) by adding 225 Million shares to the bank’s shares before the increase (375 Million shares) so that the total shares of the bank will be 600 Million shares by way of issue of 3 bonus shares for each 5 shares held (60%).
Sheikh Abdullah Mohammed Al-Hugail said the recommendations for the increase of capital have been made in line with the success achieved by the bank in recent years, which have enhanced the confidence of the bank’s customers in the bank and added to the strong support by the shareholders of all bank activities.
Al-Hugail said this achievement would not have been recorded without the commitment and effort of the Bank’s staff and expressed his thanks for the support from SABB’s shareholders, customers and staff. Upon obtaining of the regulatory approvals for the increase of the bank’s capital, entitlement to the bonus shares to the bank shareholders shall be by the end of trading on the day the Extra-Ordinary general meeting is held for increase of bank’s capital in 2008.
The capital increase represents a continuation of the policy followed by the Bank to grow its capital and annual profitability, particularly in the present environment that dictates faster growth to meet the banking requirements of the local market.
30 October 2007
The Saudi British Bank
Third Quarter 2007 Results
Highlights
John Coverdale, Managing Director of SABB, said: “ I am pleased to report that SABB’s financial performance has shown consistent growth during the first three quarters of 2007. Despite the reduction in brokerage and mutual funds income for the nine months of 2007, compared to 2006, SABB delivered third quarter 2007 profits that match those generated in the same 3 months of last year. This achievement demonstrates the success of our increased focus on core banking activities and our investment in staff and systems designed to support those activities. “The 31.6 per cent increase in loans and advances compared to 30 September 2006 reflects the strength of our corporate relationships and has been assisted by encouraging growth within our retail business, especially our cards and mortgage offerings. This loan growth has been supported by a 17.8 per cent increase in customer deposits that has contributed to the SAR341 million, or 18.0 per cent, increase in net interest income. Excluding the lower contribution from the brokerage and mutual funds businesses, core banking non-funds income has grown by SAR214 million, or 15.0 per cent, compared to the first nine months of 2006.
“We have successfully managed cost growth this year following the significant investment in rebranding, recruitment and systems during 2006. Bad debt levels are in line with asset growth and increased card and consumer finance market penetration. General credit quality is sound especially within the corporate sector which is benefiting from the strong underlying Saudi economy and major construction and infrastructure development projects. The bank’s capital and liquidity positions remain strong.
“Our insurance company, SABB Takaful, which began trading on 1 July 2007, has had a very good first three months of business delivering a comprehensive range of insurance products to both our retail and corporate clients. Together with our joint venture investment bank, HSBC Saudi Arabia Limited, SABB is well positioned to deliver a full range of financial services within the Kingdom. As an affiliate of HSBC, SABB is joining up with the Group’s product and distribution capabilities worldwide to provide global solutions to our clients’ needs.
“We thank our customers for their continued support, and our staff for their commitment and contribution to the bank’s success.”
23 October 2007
SABB Launches The World’s First Truly Global Banking Service In Saudi Arabia
SABB, one of Saudi Arabia’s leading banks, has inaugurated the first SABB Premier Centre in Riyadh, bringing the world’s first truly global banking service to the Kingdom. SABB’s Chairman, Sheikh Abdullah Al-Hugail, and SABB’s senior management attended the inauguration ceremony.
With two further SABB Premier Centres scheduled for this year, and another 10 in 2008, SABB’s high net worth customers will be able to benefit from a joined-up, seamless approach to cross-border banking.
Saudi Arabia is one of the first 35 countries and territories to roll out the new service created by SABB’s associate HSBC Group. It is the most comprehensive global banking and wealth management service ever devised. Breaking down international barriers, SABB Premier offers the promise that customers can, for the first time, take their accounts, credit history and banking relationships with them wherever they choose to travel.
The new SABB Premier Centre in Riyadh is located at SABB’s Super Branch in north Olaya. The next two Centres will be opened in Jeddah and Dammam over the next three months.
SABB Premier customers have access to 250 international HSBC Premier Centres, sited in major cities around the world, and more than 6,000 branches worldwide with Premier service points. Each location will have access to all the information needed to serve customers and provide local advisory services.
John Coverdale, Managing Directior of SABB, said: “SABB Premier dramatically demonstrates our unique ability to offer local vision and international expertise. It combines SABB’s and HSBC's unique distribution network, cutting-edge technology and the dedication of our people in KSA and worldwide to offer an unrivalled customer experience.
“We are proud to be one of the first countries in the world to be linked into this global HSBC initiative that enables our SABB Premier customers to receive top quality service wherever they travel.”
Along with the new SABB Premier Centres, SABB Premier customers in Saudi Arabia can make use of the SABB Premier toll free number – 800 124 5557 – and the SABB Premier hotline - +966 1 406 6679. Abroad, they have access to the Worldwide Premier service number on +1 908 773 6437. And the service has its own website – www.premier.sabb.com.
15 September 2007
The recent SABBTadawul marketing campaign was extraordinarily successful for SABB – and had a spectacular result in raising the number of new SABBTadawul customers.
The campaign was launched earlier this year to increase SABB’s share of on-line local stock trading, following the upgrading of the bank’s stock trading capacity and capabilities which enabled SABBTadawul to offer new and current customers reduced trading charges and more efficient services.
The marketing campaign was concluded with a grand prize draw at SABB’s head office, where Mr. Adel M. Al-Nasser, Deputy Managing Director at SABB, handed the winner Mr. Mohammad Al-Nashar – a Jeddah resident – the keys for the grand prize a 2007 BMW Z4.
Commenting on the event Mr. Al-Nasser said: “We are very pleased with the results of the campaign which surpassed our most optimistic predictions, and our congratulations go to Mr. Al-Nashar for his win.” He also added: “The success of the campaign is due entirely to the efforts of those involved in the upgrading, running the campaign, and serving our customers. They all deserve our sincere thanks.”
3 September 2007
HSBC Has Issued A Report On Etihad Etisalat (Mobily)
Etihad Etisalat (Mobily(
Fast growing mobile operator in an attractive market; EBITDA margin set to grow by c800bp over the next five years
Focus on monetisation from low broadband penetration in Saudi Arabia; 3.5G internet to boost ARPU
We expect EPS to grow at a CAGR 2006-2009 of 67%; we initiate coverage with an Overweight weighting and a target price of SAR 81.3 per share
A solid growth story…
Etihad Etisalat (operating under the brand name ‘Mobily’) is one of two mobile operators in the Kingdom of Saudi Arabia, enjoying a duopolistic environment that is set to be broken in 2008 with the entrance of MTC (Mobile Telecommunication Company) of Kuwait. It is operating in what we consider to be one of the most attractive markets in the region, with penetration rates (as at end-H1 2006) among the lowest at c82% of the population for mobile, and just 2% for broadband penetration. Saudi Arabia is the largest and richest market in the Gulf Cooperative Council (GCC) region; strong macro economic factors, such as high GDP per capita, rising income levels and a relatively young, fast-growing population should guarantee relatively decent growth in communication spending. A reduction in handset prices and tariff rebalancing as a result of the ongoing liberalisation of the telecoms markets should also further boost usage and demand for services.
Mobily has had an exceptional start since it began operations 2 years ago. It has become EBITDA positive and captured a market share of more than 30% in two years of operations. We expect margin expansion through savings made on infrastructure sharing with STC once it builds its fibre-optic backbone by end-2007. This, coupled with strong subscriber growth, should lead to a surge in the company’s bottom line. Mobily should benefit from asymmetric regulation that favours new entrants on interconnection costs and tariffs. We believe internet on 3.5G would help Mobily maintain blended ARPU, despite a fall in voice average revenue per user (ARPU). We estimate that Mobily’s EPS will grow at a CAGR 2006-09 of 67%, while trading at a PE 2009e of 10.3x against EMEA telcos EPS CAGR 2006-09e of 20.5% and PE 2009e of 11.1x. We initiate coverage on the stock with an Overweight (V) rating and SAR81.3 target price.
20 August 2007
SABB’s call centre operation in Saudi Arabia has won global recognition as being among the world’s best with the granting of two of the highest international awards for its outstanding performance.
Competing against call centres from all over Europe, the Middle East and Africa, SABB won silver medals in both the categories it entered in the 2007 Contact Center World Awards for the Best in EMEA – Best Contact Center among medium sized operations and Best Outbound Campaign.
SABB was the only Saudi Arabian organisation to win any awards at the ceremony held in London and only one other company in the whole of the Middle East, Qtel, was among the other winners. SABB will now be included in Contact Center World’s Top 100 Contact Centers of the World.
Rahn Wood, SABB’s Head of Direct Banking, commented: “We are enormously proud of this achievement particularly since the awards are the result of votes by our peers and competitors from around the whole EMEA region. This is the call centre industry itself acknowledging its global leaders.”
Nabil Al Hoshan, General Manager, Personal Financial Services, added: “The awards give recognition to the extraordinarily high standards achieved by our agents in our call centres in Riyadh and Al Khobar in dealing with customers and the public. Each day, our Agents and Supervisors are the front line contact for many thousands of our customers and potential customers. SABB owes these awards to their dedication and to their caring for every caller.”
6 August 2007
Settlement Of Largest Ever Saudi Arabia Sukuk Completed
“Smooth as silk”. That is how Rajiv Shukla, Director- Debt Capital Markets of HSBC Saudi Arabia today described the completion of the settlement process of the Saudi Electricity Company’s SAR 5 billion debut Sukuk, Saudi Arabia’s largest ever Sukuk or bond issue.
HSBC Saudi Arabia Limited acted as Sole Lead Manager and Sole Bookrunner for the highly successful issue. HSBC also acted as Sukukholders' Agent, while the Saudi British Bank (SABB), acted as Co-Manager and Payments Administrator and SABB Amanah as the Shariah Coordinator for the Sukuk.
“Despite its record-breaking size, the subscription and settlement of the proceeds progressed without a hitch”, Rajiv said.
SEC was able to raise Saudi Riyals from domestic investors at a very competitive rate, just 45 basis points over the benchmark, a figure that represents a substantial saving from the cost of SEC’s existing loans. The Sukuk is due 2027, although investors can exercise their right to oblige SEC to purchase the Sukuk after five years in July 2012.
During a 10-day roadshow across Riyadh, Jeddah and Al Khobar, SEC and HSBC were rapidly able to build a high-quality orderbook amounting to almost SAR 7bn, nearly three times SEC's minimum target, allowing SEC to issue at the SAR 5 billion ceiling established by the CMA for this issue. As well as very competitive pricing, the Sukuk subscription was well diversified as over 26% was placed with pension, mutual and other funds, and over 24% with corporates and institutions (banks’ treasuries comprising the balance). Importantly, several new investors participated for the first time in an offering of this nature, further deepening the Sukuk market in the Kingdom.
"This Sukuk follows the debut Sukuk issued by SABIC last year which was also managed by HSBC on a sole basis. “It firmly establishes the viability of the Sukuk instrument in the Kingdom,” added Hissam Kamal, Director of Islamic Finance. “Together with the clutch of awards from Global Finance, this reinforces HSBC’s position not only as the leading investment bank in Saudi Arabia, but also as the world's pioneering and leading Sukuk house”.
31 July 2007
SABB participates in fighting money laundering, and financial crimes in the Kingdom
SABB has recently participated in the 18th training course held by SAMA to their honor the judges of The Ministry of Justice and The Bureau of Grievances, on money laundering, terrorism funding, and financial crimes.
SABB participation in this course underlines its commitment to the community and its extensive efforts to fight money-laundering crimes, which adversely affect national and global economies.
Mr. Mohammed Bin Ibrahim Al-Obaid, Senior Manager, Compliance Department at SABB represented the bank in this event, where a comprehensive presentation on money laundering in the Kingdom was given to the judges to provide them with specialized knowledge on money laundering and terrorism financing activities as well as on combating financial crimes. The judges were given the latest and essential information, directives and practices to promote their skills and abilities in this field on national and international levels.
Their honor the judges were familiarized with the procedures, controls and systems adopted by commercial banks to disclose and reveal money laundering operations, gained from illegal sources, and the methods adopted by money launderers to carry out such operations.
SABB participation included counseling their honor the judges on the responsibilities and duties of commercial banks and staff as provided for in the Anti-money Laundering Act, dated 25-6-1424-H, and the general rules formulated by SAMA - in 2003 - to combat money laundering and terrorism financing.
23 July 2007
SABB/HSBC dominate Global Finance Regional Consumer Internet Banking Awards
SABB and its associate HSBC Group have won almost every regional consumer-banking prize awarded by the prestigious international publication, Global Finance, in its World’s Best Internet Banks 2007 awards.
SABB won the Best Investment Management Services and Best Online Consumer Credit Site categories while HSBC picked up the Best Bill Payment & Presentment, Best Integrated Consumer Bank Site and Best Online Deposits Acquisition awards. HSBC additionally gained awards for Best Integrated Corporate Bank Site and Best Corporate/Institutional Internet Bank in the UAE.
Adel Al-Nasser, Deputy Managing Director of SABB, commented: “Coming from one of the world’s leading financial publications, these awards give remarkable recognition to SABB and HSBC and to the quality of our products.
“But, above all, they are a tribute to our Information Technology and direct banking (SABB Direct) staff who have brought the delivery of our internet banking (SABBNET) services to a level where they can compare with the best in the world”.
21 July 2007
"SABIC has commenced marketing its second Sukuk issuance, appointing HSBC Saudi Arabia Limited as joint lead manager & bookrunner of the Sukuk and HSBC as the sole regional GCC coordinator
This Sukuk issuance follows a year after SABIC debut offering and has an identical structure but with further innovations: this SAR-denominated issue has a minimum subscription amount of just SAR 50,000 and is open for subscription by eligible GCC investors (in addition to Saudi investors). These two features support both SABIC's and HSBC's endeavour to continually push the boundaries of innovation, and have been introduced to provide SABIC greater access to a broader base of investors and make this issue the first SAR-denominated Sukuk to be available for subscription outside the Kingdom.
HSBC, with its leading position in Sukuk in the Kingdom and the larger Islamic capital markets, was the ideal choice to lead the issuance of this Sukuk. Apart from sole lead managing SABIC’s first sukuk, the HSBC group also lead managed SABIC Europe's debut Eurobond offering (SABIC group's European subsidiary) which was successfully placed in Europe, the Middle East and Asia.
HSBC Saudi Arabia is the sole lead manager and sole bookrunner to the only other Sukuk that have been approved for public offering by the Capital Markets Authority of Saudi Arabia: the Sukuk for the Saudi Electricity Company to be issued shortly and the SAR 3 billion Sukuk issued by SABIC last year.
In just over one year since being licensed in the Kingdom, HSBC has demonstrated its clear market leadership, contributing to the development of the vibrant capital markets and this has been recognised through it being awarded "Best Investment Bank [Saudi Arabia]", "Best Sukuk House [Global]" in 2006 and "Best Debt House [Saudi Arabia]" and "Best M&A House [Saudi Arabia]" in 2007 by Euromoney.
17 July 2007
SABB offers a scholarship programme for MBA degree from U.K.
SABB has carried out a ceremony for the 4 students who were chosen this year for “SABB MBA Scholarship Scheme from U.K.”. Mr. Adel Al-Nasser, Deputy Managing Director at SABB and Dr. Kasib Al-Rashidi, Manager of Training and Development, and Mr. Ibrahim Abo-Mouti, Head of Corporate Communications, attended the event in addition to the 4 selected candidates.
Mr. Adel Al-Nasser, said in a speech during the event: “The SABB Scholarship Scheme is one of the most prominent schemes to serve the community, with efficient and qualified female/male Saudi cadre. It is an initiative that comes under SABB’s commitment to support educational and social programmes, and to allow community members - in both public and private sectors - to benefit from this unique programme. The programme is intended for Saudi graduates from local universities, and graduates of other accredited universities, who are interested in pursuing higher studies, with the intent of enhancing their future career.”
Mr. Al-Nasser, added: “this programme highlights the bank’s commitment to national and social responsibilities, and comes in compliance with the directives that call for the participation of local companies and establishments, to develop Saudi cadre who are able to participate efficiently in different development aspects witnessed in the Kingdom, where the human factor is a necessity for the success of any development effort.”
It is worth mentioning that SABB is the first bank to introduce this pioneering educational programme in Saudi Arabia, in 1997, tailored for all male and female Saudi graduates, to pursue higher education abroad. The number of Saudi students who benefited from this programme - since inception - is 49 students, where the bank sends a group of candidates to accredited universities in U.K, and bears all tuition fees, travel allowance, in addition to a daily allowance, without any obligation on the student’s part to work for SABB after completion of the course.”
15 July 2007
SABB FIRST HALF 2007 RESULTS
Highlights
Commentary
SABB recorded a net profit of SAR1,251 million (US$334 million) for the six months ended 30 June 2007. This represents a 30.8 per cent decline compared with the first half of 2006. However, net profit in the first half of 2007 increased by 1.6 per cent compared with the second half of 2006.
John Coverdale, managing director of SABB, said: “I am greatly encouraged by the progress that SABB has made during the first half of 2007 especially with regard to core banking activities. The 24.3 per cent increase in loans and advances compared to 30 June 2006, together with customer deposit growth, has generated a sustainable SAR221 million, or 17.3 per cent, increase in net interest income and positions SABB well for the future. Brokerage and mutual funds business continues to be subdued, significantly reducing SABB’s first half 2007 profits, but core-banking non-funds income has grown by SAR28 million or 9.2 per cent compared to the first half of 2006.
“Our cost base has reduced by SAR91 million, or 12.4 per cent, due to last year’s one-off cost of re-branding the bank and lower 2007 profit-related bonus accruals. Increased bad debts reflect growth in our card and consumer loan book and our penetration of new market sectors. However, overall credit quality is sound, supported by the strong underlying Saudi economy that is also helping to drive high levels of corporate activity, particularly in the construction and infrastructure development sectors.
“The market remains very liquid but SABB has effectively used the increase in customer deposits over the last year to fund loan growth. The bank’s capital and liquidity positions remain strong.
“We are pleased to announce that our insurance company, SABB Takaful, has obtained all necessary operating authorisations and began trading on 1 July 2007. This, together with the 2006 formation of our joint venture investment bank, HSBC Saudi Arabia Limited, is a major step towards our goal of becoming a comprehensive provider of financial services to our clients within the Kingdom.
“We thank our customers for their continued support, and our staff for their commitment and contribution to the bank’s success.”
SABB’s Board of Directors has recommended an interim dividend of SAR1.50 per share for the first half of 2007, after the deduction of Zakat.
10 July 2007
HSBC Saudi Arabia Wins Two More Prestigious Euromoney Awards
HSBC Saudi Arabia Limited has won two more of the region’s top banking accolades awarded by the judges at the annual Euromoney Awards for Excellence 2007- “Best Debt House” and “Best Mergers & Acquisitions House”, in Saudi Arabia. HSBC Saudi Arabia Limited has won seven so far this year alone and last year – its first operational year - gained Best Investment Bank in Saudi Arabia. And SABB has claimed 9 major awards since 2005.
Timothy Gray, Chief Executive Officer of HSBC Saudi Arabia Limited, commented: “This unique award-winning track record is a testimony to the consistently high level of products, service and innovation delivered by HSBC Group not only in Saudi Arabia but across the Middle East. The awards are also an outstanding tribute to the quality of our staff.
He also added: “The 2007 Euromoney awards demonstrate that we are seen to excel not only in our overall performance but also in important specialist financial services areas. We are delighted and proud that HSBC Saudi Arabia Limited, has been given this high level of recognition in only its second year of operation”.
Euromoney Awards for Excellence are amongst the most respected awards for financial services across the world, and are a benchmark within the industry for class-leading products and services.
HSBC Saudi Arabia Limited was recognized as “Best Debt House” for its achievements, which include: -
The role of Financial Advisor and Lead Arranger on financing the USD1,388 million Shuqaiq Water and Electricity Company. This project was part of the pioneering national strategy to introduce the private sector to the rapid growth in the nation’s power and water requirements.
HSBC Saudi Arabia Limited has been the clear market leader in the emerging and vitally important field of mergers and acquisitions (M&A), breaking new ground within Saudi Arabia. Transactions included the following deals:
The sole Financial Advisor role to Al-Marai Company for the acquisition of Western Bakeries Company Limited, and International Banking Services Company Limited.
Acting as the sole Financial Adviser to the National Titanium Dioxide Company Ltd in its acquisition of the Millennium Inorganic Chemicals business of Lyondell.
HSBC Saudi Arabia Limited is the first full-service, independent investment bank established by a global investment bank in the Kingdom of Saudi Arabia. It is licensed under the Capital Market Law and was incorporated in 2006.
HSBC Saudi Arabia Limited provides a full range of corporate finance services including investment banking advisory, debt and project finance as well as Islamic finance. It also manufactures and manages a total of 26 equity and money market funds, as well as offering discretionary portfolio management. It serves a wide range of clients including but not limited to corporate, non-bank financial institutions and individuals.
HSBC Saudi Arabia Limited also manages the domestic and international equity brokerage services offered by SABB, as well as SABB’s Securities Services Business.
1 July 2007
SABB Appoints Saeed Al-Mahoudi Area Manager Eastern Province
SABB has appointed Saeed Al-Mahoudi, as Area General Manager, Eastern Province, with responsibility for all the Bank’s activities in the region. He succeeds Mr. Zaki Bin Mansour Abualsaud, who retired this month after 24 years with SABB.
Al-Mahoudi comes to SABB with more than 17 years’ experience in the banking industry in Saudi Arabia including 14 years in senior management posts. Most recently, he spent 7 highly successful years in charge of eastern region operations for one of the country’s other leading financial institutions after moving through a variety of management positions from branch manager to a divisional head responsible for the overall business development and management of significant corporate credit portfolios.
Mahoudi said: “ SABB is a key financial institution in the Kingdom. I aim to add to the bank’s development, in Eastern Province, and increase the region’s contribution to the achievement of the bank’s strategic goals.
“A further objective is to help drive forward SABB’s award-winning saudization programme which owes its success in part to SABB’s unique ability among banks in Saudi Arabia to develop its staff through cross-postings with its associate, HSBC.”
Recent cross-postings have seen SABB’s Saudi staff appointed as HSBC’s Global Head of Islamic Banking and CEO of HSBC in Bahrain. And the bank’s saudization programme has been notably rewarded with the ‘Prince Naif Saudization Trophy’, in addition to wining the Institute of Public Administration (IPA) Saudization Trophy for three consecutive years.
24 June 2007
As Part Of Its “SABB in the Community” Programme
SABB Accepts Student “Summer Training Applications” Electronically
SABB announced the commencement of receiving applications for joining the “Summer Training Programme”, for university, institute, college and high school students, through SABB’s website.
Mr. Tarek Abdulrahman Al-Shubaily, General Manager of Human Resources at SABB, said: “The students summer training programme, comes within the concept of “SABB in the Community” programme, where the bank trains about 200 students each year, from different universities, institutes, colleges and high schools in the Kingdom. The purpose of this programme is to develop the skills of young Saudi cadres, and provide the trainees with the opportunity of getting trained in real life work situations, and enable them to gain valuable experience through their participation in the different activities of the bank. The training process takes place at the head office, regional administrations and branches, and each trainee is paid a motivational bonus that ranges between 1500 and 2000 Saudi Riyals”.
It is worth mentioning that SABB utilizes the best modern and state-of-the-art training equipment and tools, that help in providing on the job training in the best way possible, aiding summer students to benefit from these tools and capabilities in enriching their knowledge and increase their productivity.
18 June 2007
SABB Organizes A Meeting With Media Representatives
John Coverdale, SABB Managing Director emphasized the Bank’s keenness on developing its services and products towards record levels. He indicated that, SABB during the past stage has taken a sequence of initiatives and steps for the purpose of upgrading the standard and quality of its services. In addition to responding to the growing customers’ needs, that goes in line with the best global banking practices. During the gathering which was also attended by a large number of the Bank’s senior officials, Mr. Coverdale added that “SABB partnership with an international banking group in the size of HSBC, gave us the strength to offer a diversity of banking options to our customers as well as the ability to harmonize with the latest global banking models which were developed for customers’ service. Furthermore, the partnership with HSBC is becoming more interactive and improving as evidently seen by the establishment of joint ventures between the two parties such as HSBC Saudi Arabia Ltd. and SABB Takaful.
The meeting between SABB’s senior management and media representatives was organized within the framework of a series of periodic meetings with the journalists and other media representatives for the purposes of highlighting and exchanging views on various issues related to banking and investment business in a step that reflects the methodology adopted by SABB for the enhancement of communication with the different media channels and obtain their feedback on the Bank’s performance and its future plans.
Mr. Coverdale expressed his thanks and appreciation to the guests for accepting the invitation and their continuous communication with the Bank. He commended the active role played by the media in the Kingdom for acquainting the community of banking and investment products, and also the constructive cooperation with Saudi banks in keeping pace with the improvements witnessed by the banking and investment sector, stressing SABB’s endeavor to strengthen such cooperation.
12 June 2007
Princess Adela praises SABB’s efforts in recruiting Saudi Women
HRH Princess Adela Bint Abdullah Bin Abdulaziz Al-Saud, handed Ms. Majda Taher, Senior Manager, Human Resource Relations at SABB, a trophy and an appreciation letter, in recognition of SABB’s efforts in supporting and encouraging Saudization programmes and recruitment of Saudi women, during the first career day, organized by the women section at the Institute of Public Administration, in Riyadh.
This accolade comes in recognition of SABB’s support to this event, and the bank’s continued support for Saudization and recruitment programmes, and its distinguished efforts to recruit qualified Saudi women, in addition to employing and training IPA graduates, which comes within the framework plan of the bank to train Saudi women cadres, and its efforts in creating suitable job opportunities for them to work in the banking sector. It is worth mentioning that women jobs at SABB are 100% saudized, and that women represent 14% of the total number of employees at the bank.
SABB started receiving graduates employment requests, at the bank’s special section situated at the exhibition that accompanied the event, in addition to showing the job and training opportunities available at the bank for the institute’s graduates.
It is also worth mentioning SABB’s concentration during recent years in putting a long range strategy for effective saudization, through attracting University, Colleges and high school graduates, and have them join the on-going training programmes at the bank, which were specifically designed and tailored to develop employee skills, where SABB has established 3 training centers, which are considered among the biggest and equipped with the state-of-the-art among local banks working in Saudi Arabia. The main task of these centers is to prepare annual training plans, for the different sectors of the bank that includes new recruites, in addition to on-going training for the bank’s employees. The duration of the training programmes ranges between 6 months and one year, to train new employees who join the bank’s service.
10 June 2007
SABB stresses continuation of Effective Saudisation Strategy
His Royal Highness Prince Salman Bin Abdul Aziz Al-Saud, Governor of Riyadh and Chairman of the Higher Committee For Saudisation handed over to Dr. Kasib Al Rashidi, Head of Learning and Development of SABB a memento and 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 diamond 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 of 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 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 their requirements. Training courses range between 6 months and one year to qualify newly joined staff.
2 June 2007
In The Presence of Shariah Committee Members:
SABB Approves A Plan For Expanding “SABB Amanah” Branches And Celebrates The Launch Of The Second SABB Amanah Branch In Makkah:
SABB celebrated the conversion of Makkah Main Branch to SABB Amanah Branch being the second branch of the bank, which provide Islamic banking services at the Holy City. Sheikh Abdullah Bin. S. Al Manie, Shk. Dr. Abdullah Bin Mohamed Al Mutlaq and Shk. Dr. Mohammed Al Elgari Bin Eid, members of the Shariah Committee and a number of the bank’s senior management led by Deputy Managing Director Mr. Adel Marzook Al Nasser attended the celebration.
Speaking on the occasion, Mr. Adel M. Al Nasser, Deputy Managing Director, stated that: “This step comes as part of SABB plan to expand the base of our Islamic banking activities in sequence of the achievements accomplished by SABB Amanah branches and the rising demand for our Islamic products in addition to the particular nature of Makkah City as a Holy place which receive pilgrims and visitors every year in several occasions. He confirmed that SABB contentedly completed the conversion of 15 branches to Islamic branches Kingdom wide and approved a plan to convert further 50 branches during 2005-2007 so that the total Islamic branches will be 65. Al Nasser praised the efforts of the Shariah Committee for their positive role and constructive contributions to the development of the Islamic products and the banking solutions.
In conjunction with the launch of the new SABB Amanah branch celebration, SABB held an open seminar for the customers in Makkah on the subject of Islamic banking services. Shariah Committee members delivered speeches in the seminar in which they emphasized that the expansion of the Islamic banking services is an indication of their success and truthfulness and stressed the importance of observing truthfulness in Islamic transactions. The Committee members further pointed out to SABB as one of the leading banks in the Kingdom in the field of Islamic banking. They commended SABB for giving more attention to Islamic banking activities. Finally, the Committee members responded to the queries and issues raised by the presents regarding several banking aspects and presented shariah viewpoints on some investment activities.
28 May 2007
To highlight the important changes in UCP600, SABB organized customer seminars in Riyadh and Jeddah recently. The guest speaker was Mr. Gary Collyer, Chairman of the UCP600 Drafting Committee and the world’s leading expert on this topic. Mr Collyer said that it is important for both importers and exporters to understand the full depth of the UCP600 changes and cover themselves against potential disputes with banks and counterparties. “Globally, about 70% of documents presented under LCs are discrepant. UCP600 is meant to simplify the rules and remove any ambiguities, so that international trade can be facilitated” said Mr. Collyer. Among the major changes are a Definitions article explaining the meaning of commonly used trade terms and a new maximum limit of five working days for banks to check documents under LC.
Responding to questions from the audience, Mr. Collyer emphasized the importance for Saudi companies to check the authenticity of their overseas buyer and seller to avoid fraud. Internationally reputable inspection companies can be used to check the goods before shipment.
Speaking on the customer seminar in Riyadh , Mr. Ahmed Al Ameer, SABB Area General Manager Central Province, thanked customers for their valuable participation and their continued support to SABB and assured customers of arranging similar events in the future for the benefit of customers and their staff. SABB’s officials also mentioned the growing trade between Saudi Arabia’s and Asia, particularly China and India, and the long history of HSBC in that region. As part of the HSBC Group, SABB has access to global expertise in Trade and a branch network across 82 countries.
A presentation was also given on the Marine Cargo policies that will soon be offered by SABB Takaful. This will allow customers using Islamic LC’s to purchase Takaful cargo policies that are Shariah compliant.
21 May 2007
HSBC issues major report recommending STC
Following its recent report in SABIC, HSBC Saudi Arabia has issued a second in-depth company report, on Saudi Telecom Company (STC), the second largest stock on the Saudi market.
"STC has been an unpopular stock which has strongly under-performed the TASI (Tadawul All Share Index) over the past two years. Investors see their market opening to competition and are worried about STC's ability to hold its ground. But experience from other countries suggests that they are underestimating the potential in the Saudi telecoms market. What's more, unloved stocks often represent the greatest value for investors" commented Peter Hutton, Head of Research for HSBC based in Riyadh.
Kunal Bajaj, a specialist telecoms analyst for HSBC, wrote the 40-page report. It examines the impact of competition in other countries on the regional incumbents to determine the effects on market shares but also market growth. "Over the past few years, the market has constantly underestimated mobile growth in emerging markets: for instance, Russia, Kuwait and UAE have seen growth well in excess of expectations and reported mobile penetration in these markets is comfortably above 100%", writes Kunal. Furthermore, demand for fixed line services has been shown to be highly elastic, with increased usage offsetting unit price declines, helping to maintain revenues especially for those such as STC able to offer bundled services.
STC has opportunities for growth from 3.50, which were launched last year, and from broadband which has a penetration at only 1% of the population. STC has missed previous opportunities to build from its domestic base to expand abroad, but has a strong balance sheet, which gives it access to lower cost debt than other telecom operators. With a present dividend yield of 9%, the market is already discounting a risk to the dividend by acquisition, but not the growth, which would be achieved.
"We believe that the recent price weakness is not supported by fundamentals, markets have overestimated the impact of competition and cash flow generation is more sustainable than generally thought,” concludes the report. STC is valued at SAR 80, offering a 44% upside for investors, and is recommended as ”Overweight".
15 May 2007
Global Finance Magazine named “SABB” the best Sub-Custodian Bank in the Kingdom for 2007. The magazine in its fifth annual survey, which included major banks and global financial institutions, has chosen SABB for this prestigious award. SABB will be presented the award at a special ceremony during the annual conference of the IMF and World Bank, which will take place in Washington in October.
The magazine reporters, correspondents and editors, along with a panel of consultants, and experts in the financial sector, have chosen SABB for this ranking, amongst all securities services companies in Saudi Arabia. The global ratings included key banking and financial institutions operating in nine major regions in the world covering 44 countries, and involve a series of advanced evaluation criteria addressing the volume of equities operations, market share, extent of coverage, customer service excellence, and the quality of technology used to provide the service.
John Coverdale, Managing Director of SABB said: “This rating reflects the excellent reputation and standing enjoyed by SABB, it also highlights the bank’s leadership and key role in the Saudi banking and financial sector, and confirms that the services provided by SABB, are in accordance with top international standards”.
He also added: “SABB has been providing sub-custody services for some time now. The service is considered of significant importance in the banking industry, and it requires thorough understanding of the market, and the bank's commitment to train qualified and dedicated employees capable of providing equity services in an outstanding manner".
13 May 2007
Al-Hoshan: the seminars aim to increase customer awareness on investment
SABB holds Investment Seminars for high net worth customers
SABB recently conducted a series of investment seminars for high net worth customers composed of SABB Premier & Private banking customers. A total of three seminars took place in Riyadh, Jeddah, and Al-Khobar. The investment seminars aimed at increasing customers’ awareness on international investment markets and longer-term perspectives on local markets, plus promote sales of SABB local and international mutual funds. The seminars were attended by; Mr. Nabil Al-Hoshan, General Manager, Personal Financial Services at SABB, Mr. Ahmed Al-Ameer, Area General Manager, Central Province, Mr. Alaa Al-Jabry, Area General Manager, Western Province, and Mr. Zaki Abualsaud, Area General Manager, Eastern Province.
Mr. Al-Hoshan, said: “These seminars come under SABB’s efforts to enhance customer international investment awareness, and to assist them in taking the right investment decision, that will assist them in developing their investments and savings, through the exploration of suitable investment opportunities, and to enable them study the potential of local and international financial markets”.
A series of presentations were conducted by an expert panel representing SABB's Treasury department & HSBC Investment Saudi Arabia, i.e. Mr. Osama Shaker (Head of Asset Management), Mr. Fahad Al-Saif (Head of Global Markets Risk Advisory), and Mr. Salah Al-Allaf (Head of Business Development), where each seminar covered the local & global economy, SABB & HSBC Investment Saudi Arabia's investment philosophy, SABB's local & international mutual funds, and was concluded by a question & answer session that provided attendees with the opportunity to participate and interact with the speakers.
5 May 2007
Within the framework of its Community Service Programme:
SABB sponsors a fun festival for “Children with Special Needs”
As part of its community service programmes, SABB has carried on projects of humanitarian nature, through its participation and sponsorship of the 3rd educational festival, for “Children with Special Needs”, organized by the General Directorate of Special Education, last Thursday, at Al-Marsa Resort in Riyadh.
During the event Mr. Ibrahim Abo-Mouti, Head of Corporate Communications at SABB received an appreciation plaque, from Dr. Nasser Bin Ali Al-Mousa, Director of Special Education at the Ministry of Education, for the sponsorship of this charity festival.
Mr. Abo-Mouti, said: “As the bank is an integral part of the community, we are very keen in supporting all humanitarian and social programmes, that help in serving the community in all aspects. SABB has introduced new channels to support and finance; educational, humanitarian, developmental and economic programmes, under the umbrella of “SABB in the Community”, to further these activities, which are beneficial to the whole community. He also added: “SABB has elected to sponsor this event for its superior goals, that aim at merging special needs-children in a friendly atmosphere through various entertainment programmes”.
In addition to SABB’s sponsorship of the event, a number of SABB employees - who volunteer to participate in such charitable events – were present.
It is worth mentioning that, during previous years, SABB has developed and introduced new programmes, in addition to the existing ones i.e. SABB’s annual MBA Programme, which enables Saudis to obtain an MBA degree from U.K., SABB’s sponsorship of the “Chair-in-Finance”, at King Fahad University of Petroleum and Minerals, in addition to SABB’s support to charitable societies programmes, such as “the School Bag Programme”, at Riyadh Orphans Charitable Society “Insan”.
22 April 2007
As part of its Community Service Programmes:
SABB sponsors the “Career Day”, at KFUPM, and offers jobs to graduates
SABB has received an appreciation certificate from HRH Prince Mohamed Bin Fahad Bin Abdulaziz, Governor of Eastern Province, in the presence of H.E. Rector of KFUPM, Dr. Khalid Al-Sultan, for the bank’s participation in sponsoring the “24th Career Day”, organized by the university during the period of 8 – 11 April 2007, under the patronage of HRH Prince Mohamed Bin Fahad Bin Abdulaziz, Governor of Eastern Province.
This appreciation comes in recognition of the bank’s continued efforts in supporting and encouraging recruitment programmes and saudization, and its programmes in developing and training the promising Saudi cadres, in addition to its efforts in training KFUPM graduates. SABB has also participated in the accompanying exhibition, which is considered the first recruitment exhibition in the Kingdom, where employment and training opportunities were offered to graduates. Recruitment forms were filled electronically, in addition to applications for joining the future manager programme, and the cooperative training programme, for university graduates in the disciplines of Finance, Administration, and Computer Science.
Mr. Tarek Abdulrahman Al-Shubaily, General Manager of Human Resources at SABB, said: “SABB’s initiatives in supporting and sponsoring such events, comes as an assurance of the bank’s commitment to its national and social duty, and in compliance with the directives that call for the participation of national companies and establishments, in supporting Saudi cadres, who are capable of participating and contributing to the different aspects of development that are witnessed in the Kingdom, since human cadres are considered the first and real backer of any successful task.
It is worth mentioning that SABB is the official sponsor of the Chair in Finance at KFUPM, also SABB is currently employing 83 graduates from KFUPM.
14 April 2007
SABB First Quarter 2007 Results
Highlights
Commentary
SABB recorded a net profit of SAR616 million (US$164 million) for the three months ended 31 March 2007. This represents a 37.5 per cent decline compared with the first quarter of 2006. Compared with the fourth quarter of 2006, however, net profit in the first quarter of 2007 increased 5.3 per cent.
John Coverdale, managing director of SABB, said: “During the first quarter of 2007, SABB has successfully concentrated on strengthening its core banking businesses and customer service infrastructure. Although we have not been able to match the high levels of profits seen in the first three months of 2006, the bank achieved a SAR31 million increase in profits compared to the fourth quarter of 2006. This growth demonstrates the underlying momentum that SABB has maintained and will build upon during the rest of 2007.
“Operating income for the quarter, compared with the same period in 2006, was down 27.7 per cent as a result of significantly lower fees from brokerage and mutual fund business, although this was offset by improved balance sheet driven income, including higher levels of loans and deposits. SABB’s cost base was SAR62 million, or 16.0 per cent, lower than the first quarter of 2006, reflecting last year’s investment in the SABB/Hexagon re-branding, systems improvements and staffing initiatives which are now helping to generate growth momentum.
“We have continued to grow our card and consumer loan book, and loan provisions have increased commensurately. However, overall credit quality remains sound. The very liquid market conditions have kept deposit levels high and SABB’s challenge for 2007 will be to ensure that these funds are channelled towards further quality asset growth. The bank’s capital and liquidity positions remain strong.
“Following the grant of an insurance operating licence in 2006, we are pleased that the SABB Takaful initial public offering has been so well received. Once fully operational, the company will offer a comprehensive range of Shariah-compliant Takaful products for personal and corporate customers and will represent a key step in SABB’s evolution into a 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 April 2007
SABB attracts 100,000 Customers for “Al Ruwaad Account Package”
Recently SABB attracted its 100,000th customer for “Al Ruwaad Account Package”. A ceremony was held at SABB's Head Office in Riyadh to celebrate this event. John Coverdale, SABB’s managing director, and Adel Al-Nasser, deputy-managing director, in addition to a number of senior SABB managers, attended the ceremony, where the accomplishments related to this event were reviewed.
In line with this, John Coverdale stressed that “Al Ruwaad Account Package” has nearly doubled its customer base in 2006, he also added that SABB will aim at further improving service quality to SABB's customer base, and that the package, has become more than just a suite of products, it has transformed into a mechanism that meets the needs and expectations of targeted customers. The package has also surpassed the quality offered to competitors in terms of product range and added value benefits and features, all for free."
The “Al Ruwaad Account Package”, was introduced in 2005 and is one of several packages offered by SABB, including the Premier, Imtiaz and the Al Mustaqbal student package. Eight benefits are now part of “Al Ruwaad Account Package”, including, the newly introduced free remittance service via SABBNET after an initial payment of SAR 50 fee per beneficiary account.
The “Al Ruwaad Account Package” is aimed at middle market customers with average balances in current and/or savings accounts that range between SAR 3,000 and SAR 100,000. New eligibility criteria for new non-bank customers were introduced this year. These criteria were opening a current/ savings account with a minimum total balance of SAR 10,000 or transferring a minimum monthly salary of SAR 6,000.
8 April 2007
SABB has recently participated in the 17th 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.
Mohammed Bin Ibrahim Al-Obaid, senior manager at the Compliance Department and Adel Bin Yousef Al-Mehemeed, from Training and Development, represented SABB in this activity. 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 May 2003.
3 April 2007
Britain’s Prince Andrew Tours SABB’s New Head Office
Visit Marks HSBC’s Commitment to Saudi Arabia
British investment in Saudi Arabia was given a fresh royal seal of approval today with the visit of Britain’s Prince Andrew, Duke of York, to the new head office of SABB in Riyadh.
The hour-long visit by the second son of Queen Elizabeth II follows the announcement of a significant further commitment to Saudi Arabia’s developing economy by HSBC, a 40 per cent shareholder in SABB and Britain’s and Europe’s largest financial services organization.
HSBC is to invest SAR32.5 million in SABB Takaful, the Islamic insurance company which is now in formation and will be the subject of an IPO this month. The new commitment brings the value of HSBC’s current total investment in ventures in Saudi Arabia to in excess of SAR 17.5 billion.
The Duke of York, who has long shown a particular interest in Islamic methods of financing, was given a presentation on the new company and the Takaful concept by SABB management and spoke to SABB Takaful staff about the preparations for the company’s launch expected in April.
Adel Al Nasser, deputy managing director of SABB and a SABB Takaful board member, said: “Prince Andrew’s visit highlights the importance of the commercial links between Saudi Arabia and Britain and is a demonstration of international confidence in the continuing growth of the Saudi economy.
“His visit also marks HSBC’s commitment to Saudi Arabia. HSBC was a pioneer in British investment in Saudi Arabia and has a history of commitment to the Kingdom dating back well over half a century. We are proud to be part of the HSBC network and equally proud that Prince Andrew should have chosen to spend time with us to hear about new developments at SABB.”
HSBC’s investment portfolio in Saudi Arabia includes not only its stake in SABB and in the SABB Takaful joint venture with SABB but also a 60 per cent holding in investment bankers, HSBC Saudi Arabia.Ltd, of which SABB owns 40 per cent.
SABB is one of the largest financial institutions in Saudi Arabia with 73 branches nationwide employing more than 2800 staff , 85 per cent of them Saudi nationals. The Bank recently reported record profits for 2006 of SAR 3,040-million.
7 March 2007
SABB Takaful Goes Public
The Saudi Arabian Capital Market Authority (CMA) has approved SABB Takaful’s Initial Public Offering (IPO). SABB Takaful is raising SAR35 million through the public share offering, which is scheduled to commence on 17 March 2007.
HSBC Saudi Arabia Limited is the financial advisor to SABB Takaful and SABB will act as the subscription manager. Subscriptions can be made through branches of SABB, Riyad Bank and Arab National Bank. The IPO subscription will open for public from Saturday, 17 March till 26 March 2007. The initial offer price per share will be SAR 10, with a minimum of 50 shares and a maximum of 100,000 per subscriber.
In addition to the 35% public offering, the HSBC Group and SABB will each own 32.5% of SABB Takaful Company.
SABB Takaful Company will offer a comprehensive range of Shariah-compliant Takaful products for both personal and corporate customers. These will include savings and protection products to meet individual needs for financial planning and business solutions for business risks.
Dr. Abdulrahman A. Al-Jafary, Chairman of SABB Takaful Constituents Committee, said, “This is an important development for the Kingdom’s financial services industry as SABB Takaful will be one of the first Islamic Takaful companies. The joint investment by HSBC Group and SABB underlines their confidence in the insurance market operating under the Islamic principles. “We expect the demand for the IPO to be healthy given the deep experience of the company’s founders”, he added.
Subscription will be available through electronic channels such as ATMs, Internet and telephone banking in addition to the branches of SABB, Riyad Bank and Arab National Bank.
6 March 2007
SABB has recently celebrated the graduation of 17 SABB staff who obtained Financial Planning and Fortune Management Accreditation from SAMA Banking Institute.
Commenting on the occasion, Dr. Kaseb AL-Rasheedi, Manager Training and Development said “ SABB pays great attention to development and training programs for its staff as in line with SAMA policy which aims at raising the investment awareness of the employees of the banking sector in the Kingdom. This is also in line with the policy of SABB which aims at enhancing the academic and practical experience of staff and which help to provide the best solutions for the management of businesses and enable us to maintain the confidence and loyalty of customer”.
He said “ SABB strategy for development of staff has proved successful as the bank continues to obtain local and international awards in all fields including the quality of service and investments and to occupy a leading position among Saudi banks”.
SABB has achieved the first position among local banks in terms of the number of staff who obtained “Basic Investment Principles” Accreditation from SAMA Banking Institute. 448 SABB staff so far have obtained this accreditation as the Banking Institute statistics of July 2006. SABB has also been awarded “Best Mutual Fund Manager” award fro 2005 by the Investment Products Committee under SAMA supervision.
28 February 2007
HSBC Saudi Arabia Ltd. – of which SABB owns 40% - has been ranked the Number 1 and “Top Rated” Agent Bank in Saudi Arabia in Global Custodian magazine’s 2006 Agent Banks in Emerging Markets Survey. HSBC has also been named the “Top Rated” Agent Bank in the Middle East and North Africa regions in the same survey.
Timothy Gray, Chief Executive Officer, HSBC Saudi Arabia Ltd., said: “We are extremely proud that our clients have rated us the Number 1 Agent Bank in Saudi Arabia. We will continue to invest in the business and work closely with the local regulators and exchanges to contribute to the further development of the Saudi market.”
HSBC Saudi Arabia Ltd. has been providing sub-custody services to local and cross-border institutional clients in the Middle East for more than 10 years, and our network is now covering 10 countries in the region.
Zafar Khan, Head of Securities Services, said: “The award recognises HSBC Saudi Arabia’s commitment to delivering the highest level of service to our clients, who have rated us in the survey. Our clients will continue to benefit from the comprehensive range of sub-custody and securities clearing services including settlement, safekeeping and corporate actions that we provide.”
The Global Custodian Agent Banks in Emerging Markets Survey measures the perceptions of both domestic and cross-border respondents including banks, broker-dealers, fund managers and others, who rated their agent banks on the quality of the sub-custody, clearing and settlement services provided across 68 emerging markets.
27 February 2007
SABB has appointing Mr. Mohammed Bin Abdullah Al-Yahya as General Manager Credit & Risk with effect from 21 December 2006 in place of Chris Murray.
The appointment is in consideration of Al-Yahya’s high qualifications, devotion at work, and academic and practical qualifications and in line with SABB strategy for development of Saudi cadres to assume leading positions at the bank. Al-Yahya has completed his secondment to HSBC Lebanon as CEO.
Al-Yahya expressed his thanks and appreciation to the Bank’s management for the confidence they have placed in him and for appointing him Head of Credit Risk at SABB; he hopes to be up to the management’s expectations, continue the development process and achieve the strategic objectives of the bank.
SABB won a number of appreciation awards for its ongoing efforts and support of Saudization plans and for the extensive attraction and training of Saudi cadres, most prominent of which was Prince Naif Saudization trophy in addition to the Institute of Public Administration 3-year Saudization award.
24 February 2007
SABB hosts Hong Kong Financial and Real Estate Services Delegation
SABB (The Saudi British Bank) recently hosted the Hong Kong Financial and Real Estate Services delegation during their visit to Saudi Arabia. The delegation was sponsored by the Hong Kong Trade Development Council, with whom SABB has had close ties for many years, as an Associate of the HSBC Group, which was established in Hong Kong and Shanghai in 1865.
The high level delegation, many of whom were visiting the Kingdom for the first time, was led by The Honorable Frederick Ma Si-Hang, JP, Secretary for Financial Services and the Treasury, and was seeking to explore investment opportunities in the Finance and Real Estate sectors.
As part of their visit, the Senior Management of SABB hosted a function which included a presentation by SABB’s Chief Economist, who briefed the delegates on the current state and prospects for the Saudi Economy.
The visit, and the event hosted by SABB, reflects the existing strong economic ties between the Kingdom of Saudi Arabia, and the Hong Kong Special Administrative Region.
19 February 2007
HSBC Group Chairman Visits Saudi Arabia
Top-Level Talks With Government Deepen The Bank’s Long-Term Commitment To KSA
Mr. Stephen Green, Chairman of HSBC Group, one of the world’s largest financial institutions, spoke today of the Group’s increasing long-term commitment to Saudi Arabia. He was speaking after concluding a three-day visit to the Kingdom where he had a series of top level discussions with senior government officials.
“HSBC has been in Saudi for 55 years, and we hope to be here for at least 55 more,” said Mr Green. “That is why we continue to invest in our business here, both directly as HSBC and through our partner, SABB which has become one of the most significant contributors to the growth of the banking sector in Saudi Arabia and one of the most important links in HSBC’s worldwide operations.
“Last year, we set up HSBC Saudi Arabia Limited, an investment banking joint venture. This year, we hope to create a SABB Takaful joint venture company, although this remains subject to an IPO later in the year. And we have further ambitious plans for our business here.
“It is significant that last year SABB adopted the HSBC logo. It is the only minority-owned company in the HSBC Group to use our Group logo which demonstrates the depth of our confidence in the development of our business alongside the expansion of the Saudi economy.”
Mr. Green’s meetings with Saudi officials and representatives of the Kingdon’s banking sector ranged over banking activities in the Kingdom, the promotion of innovative banking and investment initiatives and an exchange of views on the future direction of Saudi Arabia’s financial sector.
He added: “The discussions further strengthened our belief in the economic outlook for Saudi Arabia. There is a clear vision which is fuelling a determined implementation of measures which will continue to encourage increasing investment, both local and international, in the country’s economy.”
Mr. Green’s visit also focused on enhancing the partnership between the HSBC Group and SABB, in which HSBC has a 40 per cent stake and which recently reported record profits of over SAR 3-billion for 2006.
Speaking on behalf of the SABB Board of Directors, Sheikh Khalid Sulaiman Olayan said: “Mr. Green’s visit shows the importance HSBC attaches to the Saudi Arabia market and to the major role being played by the Saudi economy in the international arena, in GCC economic integration and in developing regional and international trade.
“SABB’s strategic alliance with the HSBC Group gives our customers immediate and consistent access to markets across the globe while enabling SABB to enhance its operations through exposure and training of its personnel to the highest international standards.”
10 February 2003
SABB Receives A Plaque From Dar Al-Hekma College In Jeddah
SABB has received a complimentary plaque from Dar Al-Hekma College for girls in Jeddah, during the inauguration of its “Banking and Finance Section”. The emblem was given as a token of appreciation for the bank’s role in sponsoring and supporting the first programme in the Kingdom to train Saudi women in the field of financial management and banking, which falls within the framework of SABB’s community service programmes.
On this occasion, Mr. Adel Al-Nasser, SABB’s Deputy Managing Director, said: “The bank’s initiatives in sponsoring and supporting these programmes ensure its commitment toward its national and social duties. These efforts are in compliance with the directives that call for the participation of national companies and establishments to support the training of Saudi nationals, to enable them contribute positively to different developmental projects all over the country.”
Mr. Al-Nasser added: “The inauguration of the banking and finance programme for women, at Dar Al-Hekma College, is a crucial necessity to train top notch graduates in the fields of banking and finance, which will also contribute to satisfying the needs of the local job market, and fill the gap in this important economic sector.”
It is worth mentioning that during the recent years, SABB has shown keen interest in developing its community service programmes, initiated new programmes, in addition to the previous ones, sponsored by the bank. They include SABB’s Scholarship Programme to obtain an MBA degree from Britain, and the sponsorship of KFUPM Chair-in-Finance, as well as the continuous support to charitable societies i.e. The School Bag Programme for the Riyadh Orphans Charitable Society “INSAN”.
4 February 2007
The Saudi British Bank 2006 Annual Results
Highlights
Commentary
SABB recorded a net profit of SAR3,040 million (US$811 million) for the year ended 31 December 2006. This represents an increase of 21.4 per cent over the SAR2,504 million (US$668 million) earned in the same period in 2005.
Customer deposits increased to SAR59.3 billion (US$15.8 billion) at 31 December 2006 from SAR48.5 billion (US$12.9 billion) at 31 December 2005.
Loans and advances to customers increased to SAR42.5 billion (US$11.3 billion) at 31 December 2006 from SAR40.8 billion (US$10.9 billion) at 31 December 2005.
The bank’s investment portfolio totalled SAR21.7 billion (US$5.8 billion) at 31 December 2006, an increase from SAR16.4 billion (US$4.4 billion) at 31 December 2005.
John Coverdale, managing director of SABB, said: “SABB has successfully managed to attain remarkable results in 2006, achieving a 21.4 per cent growth in net profits for its shareholders. These results were achieved due to our increased focus on and diversification of core banking products and services, which positions the bank well for future growth.
“Operating income of SAR4,617 million (US$1,231 million) for the year ended 31 December 2006 is up SAR797 million (US$213 million), or 20.9 per cent, over the same period in 2005, while the cost base has increased by 16.2 per cent reflecting SABB’s continuing investment in customer service, technology and in its staff. Total operating expenses have increased by 23.7 per cent.
“Credit quality remains sound. Increased levels of provision against card and consumer loans relate to business growth and expansion into new market sectors. Deposit levels remain high due to increased market liquidity and significant corporate balances relating to major projects in progress. The bank’s capital and liquidity positions are very strong.
“Following the formal establishment of our investment banking affiliate, HSBC Saudi Arabia Ltd, in the third quarter of 2006, SABB has now been awarded an insurance operating licence for its SABB Takaful company allowing it to offer a comprehensive range of Shariah-compliant Takaful products for personal and corporate customers.
“The SABB Board of Directors has recommended a final net dividend of SAR2.25 (US$0.60) per share for the second half of 2006. This follows the payment earlier in 2006 of an interim dividend of SAR1.5 (US$0.40) net per share.
“We thank our customers for their continued support, and our staff for their commitment and contribution to the bank’s success.”
23 January 2007
The housing market in the Kingdom will be shaped by demand from the new generation of middle class Saudis rather than led by investment, Dr John Sfakianakis, Chief Economist of SABB told delegates to the groundbreaking Euromoney Saudi Arabia Housing Finance Conference in Riyadh today.
“We are now seeing an escalating demand from young, middle income Saudis,” Dr Sfakianakis said in a keynote address to the Conference. “If we are to meet that demand, Saudi Arabia will need to build 1.5 million new homes by 2015, and it will be up to the financial institutions in the private sector to provide the finance that makes this huge expansion possible.”
SABB’s Managing Director, John Coverdale, added: “The banking sector in particular will need to introduce innovative financial solutions which will, on the one hand, enable developers to build these homes, and, on the other, ensure that Saudis are financially empowered to buy them.
“We need to create opportunities for young Saudis to get on the ‘housing ladder’ and to trade upwards as their incomes increase.”
The Conference, partnering Euromoney, the King Abdullah Foundation for Social Housing and the International Finance Corporation, and sponsored by SABB, has brought together delegates from government ministries and agencies.
“It has proved most valuable in raising the issues that vitally needed to be discussed while also demonstrating that there is a definite will among the Kingdom’s financial institutions to solve those issues,” Mr Coverdale commented.
“Coupled with the Government’s policy concerning low cost housing, we are optimistic about the future for home ownership in Saudi Arabia”.
16 January 2007
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