Highlights
Commentary
The Saudi British Bank ("SABB") recorded a net profit of SAR1,552 million (US$414 million) for the six months ended 30 June 2008. This represents a 24.0 per cent increase over the first half of 2007. Net profit of SAR795 million (US$212 million) for the three months ended 30 June 2008 increased by SAR38 million (USD10 million) or 5.0 per cent compared with the first three months of 2008.
John Coverdale, managing director of SABB, said: “I am pleased to announce that SABB's strategy of building long term customer relationships supported by a broad range of financial products and services has delivered profit growth in each of the last six quarters. The strength of our balance sheet has allowed us to respond to the increasing demand for funding within the Kingdom as reflected by the 59.5 per cent growth in our loans and advances book over the last twelve months. This asset growth has more than offset the impact of falling rates. In addition, strong performance from our Cards, Trade, Mutual Fund, Treasury and IPO related businesses, together with a modest increase in brokerage income, has delivered well balanced income streams from our funds and non-funds activities.
“Our costs have increased by SAR151 million (USD40 million) or 23.4 per cent over the first half of 2007 mainly due to an increase in headcount and performance related compensation. Provisions for bad debts in the first half of 2008 have reduced by SAR 4 million (USD1 million) or 1.8 per cent from the same period in 2007 with increased recoveries offsetting higher volume driven general impairment charges.
“Despite strong loan growth, SABB's capital and liquidity ratios remain strong. SABB is acutely aware of the importance of well managed capital and liquidity positions. Senior management monitor the situation on a daily basis and have robust capital and liquidity maintenance policies in place to ensure that balance sheet strength is not compromised during periods of accelerated growth.
“We are pleased to announce the formation of SABB Insurance Services Limited which will complement our SABB Takaful insurance business by providing comprehensive insurance solutions to our Corporate, Global Banking and Markets and Private Banking customers. This new company represents a further step towards our goal of becoming a leading provider of financial services in the Kingdom.
“We thank our customers for their continued support, and our staff for their commitment and contribution to the bank’s success.”
14 July 2008
SABB contributed to the graduation day celebration for the disabled and orphanage children at the Fouad Centre in the Eastern Region, where a group of SABB employees headed by Mr. Saeed Al-Mahoudi, Area General Manager, Eastern Province, along with his team took part with the students from different disabled and orphanages association to celebrate graduation day at the Fouad Centre, in a gesture that highlights the bank's care for this dear group.
Mr. Ibrahim S. Abo-Mouti, Head of Corporate Communications at SABB, said: "SABB pays a great attention to its responsibility towards the community, and this contribution comes as a part of the programmes offered by the bank in this regard, and an attempt to enhance the existing collaboration with charitable societies in the country, and emphasis our support to the programmes carried out by these associations, which care for special needs children in the Kingdom.
It is worth mentioning that SABB – during the last few years – developed and promoted many new community service programmes in addition to the ongoing and existing ones i.e. the Bank's annual scheme to obtain an MBA degree from Britain, and the sponsorship of KFUPM Chair-in-finance, and the Bank's continued support to charitable societies, like the sponsorship of the school bag programme supervised by Riyadh Orphans' Charitable Society (INSAN), in addition to SABB's annual "Blood Donation Campaign", and the participation of SABB staff and their children in Riyadh Municipality programme "One million Cleanup Campaign", that aimed to clean a one million square meters at Al-Thumamah area in Riyadh."
30 June 2008
SABB has recently participated in the 21st 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, Head of 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.
21 June 2008
A group of SABB employees headed by Mr. Alaa Al-Jabri, Area General Manager, Western Province, paid a visit to Jeddah Autism Centre, where they met with the Centre students, and distributed gift items among them, in a gesture that highlights the bank's care for this dear group in our country.
Mr. Ibrahim S. Abo-Mouti, Head of Corporate Communications at SABB, said: "SABB is paying great attention to its responsibility towards the community, and this visit comes as part of the programmes offered by the bank in this regard, and an attempt to enhance the existing collaboration with charitable societies in the country, and emphasis our support to the programmes carried out by these societies, which care for special needs children in the Kingdom. Mr. Abo-Mouti also expressed his thanks and appreciation to the staff of Jeddah Autism Centre, who offered all the necessary help to make this visit a success, and to the bank's representatives who initiated this visit."
It is worth mentioning that SABB – during the last few years – developed and promoted many new community service programmes in addition to the ongoing and existing ones i.e. the Bank's annual scheme to obtain an MBA degree from Britain, and the sponsorship of KFUPM Chair-in-finance, and the Bank's continued support to charitable societies, like the sponsorship of the school bag programme supervised by Riyadh Orphans' Charitable Society (INSAN), in addition to SABB's annual "Blood Donation Campaign", and the participation of SABB staff and their children in Riyadh Municipality programme "One million Cleanup Campaign", that aimed to clean a one million square meters at Al-Thumamah area in Riyadh."
10 June 2008
As part of SABB in the Community Programmes, SABB participated in the "World Environment Day", for this year, under the theme "Be Part of the Solution".
SABB participation in this initiative included the distribution of mini in-door plants, the distribution of water preservation kits, and the display of an environmental movie on plasma screens. The bank has also placed environmental awareness advertisements in the press, to raise the awareness of environmental issues, among the Saudi community.
Mr. Ibrahim S. Abo-Mouti, Head of Corporate Communications at SABB, said: "SABB participation in this initiative comes as part of its "SABB in the Community Programme", and an attempt on our side to promote environmental awareness among our employees and the community at large, and their role towards preserving the environment, and also help in enhancing their roles as friends of the environment."
It is worth mentioning that SABB has paid great intention – during the last few years – to develop and promote new community service programmes in addition to the ongoing and existing ones i.e. the Bank's participation in Riyadh Municipality "One million Cleanup Campaign", that aimed at cleaning a one million square meters in Al-Thumamah Area in Riyadh, and the bank's annual "Blood Donation Campaign", in addition to other educational and social programmes."
04 June 2998
SABB has recently participated in the 20th training course held by SAMA to their honor the judges of The Ministry of Justice and The Bureau of Grievances in the Kingdom, 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, Head of 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.
1 June 2008
SABB has announced the completion of sale of share fractions resulting from the capital increase. Due shares have been deposited in shareholders portfolios on Saturday 27.04.1429H (03.05.2008) after the Extra-Ordinary General Meeting held on 21.04.1429H (27.04.2008) has approved the capital increase from SAR 3750 Million to SAR 6000 Million by issuing 3 bonus shares for each 5 shares held for shareholders registered in the bank’s registers as at the end of Sunday 21.04.1429H (27.04.2008).
7 May 2008
The SABB Extra Ordinary General Meeting held at the Bank’s head office in Riyadh yesterday, Sunday 27 April 2008, has approved the agenda of the meeting including the increase of SABB capital from SAR 3.750 to SAR 6.000 Million by way of capitalization of retained earnings and issue of 3 bonus shares for each 5 shares held for shareholders registered in the bank’s records as at the end of trading on Sunday 21 Rabi II 1429H (27 April 2008). After the increase, SABB Capital will be SAR 6.000 Million divided into 600 Million shares of equal nominal value of SAR 10 each.
The extra ordinary meeting was attended by a large number of shareholders which indicates an excellent interaction between the Board of Directors and shareholders that would lead to the achievement of bank’s objectives.
28 April 2008
SABB employees participated in "Cleaning One Million Square Meters" drive, initiated by Riyadh Municipality, in an attempt to maintain a clean environment. This drive comes under "SABB in the community Programme" to clean one million square meters at Al-Thumamah area in Riyadh.
Mr. Ibrahim Abo-Mouti, Head of Corporate Communications at SABB, said: "SABB always pays great attention to its responsibility towards the community. The Bank's participation in this drive, comes from its deep rooted believe in the aims of such campaigns, that goes along with our strategy to improve and enhance the environment in which we live. It also highlights the Bank's role as a friend of the environment, and to support the efforts exerted in this regard, in addition to participating in community awareness programme to highlight the importance of caring for the environment.
Abo-Mouti added: "The Bank always endeavors to have its employees to take part in such drives, that aim to serve the community at large, and to instill the concept of community service, and its importance on both individual and community levels. He also pointed out the enormous success of the drive, which witnessed huge participation from SABB employees, and praised the efforts of Riyadh Municipality, and other participating companies, headed by Al-Foadia Commercial and General Contracting Company.
It is worth mentioning that SABB, during the last few years, has paid great intention to develop and nurture new community service programmes in addition to the ongoing ones, for instance the annual programme to obtain an MBA degree from U.K., and the sponsorship of the Chair-in-Finance at KFUPM, in addition the banks continued efforts to support the various causes instigated by various charitable societies, for example 'The School Bag Programme, supervised by “Riyadh Orphans Charitable Society - INSAN”, in addition to the bank's annual "Blood Donation Campaign."
26 April 2008
SABB won the Prince Naif Saudization award at the 6th award distribution event organized by the Ministry of Labor at King Fahd Cultural Centre in Riyadh.
The award was handed over by HRH Prince Naif Bin Abdulaziz Al-Saud, Minister of Interior and sponsor of the event, to Mr. Adel Bin Marzooq Al-Nasser, Deputy Managing Director at SABB. The prize crowns the efforts and contributions of SABB to the implementation of the national Saudization plan and for achieving a high ratio of job Saudization.
Commenting on the event, Mr. Al-Nasser said “HRH Prince Naif Award, stands as a badge of honor for SABB and reflects our sincere efforts and effective contributions towards the successful implementation of the national Saudization plan. It also reflects our belief in the national and community services that we are proud to undertake. The sponsorship of the event and distribution of awards to winning institutions by HRH Prince Naif, Minister of Interior, represents the Leadership appreciation of the efforts of those organizations which achieve high ratios of job Saudization and a sign of support to such organizations in fulfillment of their national and social commitments”.
He emphasized that the award is the outcome of continuous efforts and strategic planning by SABB to invest in the human element by attracting, recruiting, training and developing human resources through a set of training programs that form part of SABB ongoing Saudization strategy”.
SABB had won many awards in appreciation of its efforts and continuous support of Saudization schemes, recruitment, attraction and training of Saudi cadres. Most prominent awards were Prince Naif Saudization Trophy, IPA Saudization Trophy for 3 consecutive years. SABB focused throughout the past years on the establishment of an effective long-term Saudization strategy.
21 April 2008
Highlights
SABB recorded a net profit of SAR757 million (US$202 million) for the three months ended 31 March 2008. This represents a 22.8 per cent increase compared with the first quarter of 2007 and a 7.4 per cent increase compared with the fourth quarter of 2007. SABB has achieved profit growth in each of the last five quarters.
John Coverdale, Managing Director of SABB, said: “SABB's first quarter 2008 results are very encouraging and continue to build upon the strong core business foundations that we have established. Robust deposit inflows during the quarter have been more than sufficient to support the quality loan growth and expansion of our investment portfolio. Our investment strategy continues to focus on Saudi Government bonds, Treasury bills and investment grade instruments which has largely protected our shareholders from the global problems surrounding Structured Investment Vehicles (SIVs) and sub-primeCollateralised Mortgage Obligations (CMOs).
“The SAR23.9 billion (US$6.4 billion) increase in loans and advances compared to 31 March 2007 reflects the underlying strength of the Saudi economy and increased project funding requirements from the corporate sector. This asset growth has contributed to a 20.1 per cent increase in net special commission compared to the same period in 2007. Excluding the higher contribution from the brokerage and mutual funds businesses, core banking non-funds income has grown by SAR105 million (US$28 million), or 63.2 per cent, compared to the first quarter of 2007.
“Cost growth of SAR35 million (US$9 million) or 10.9 per cent compared to the first quarter of 2007 is due to an increase in headcount of 379 or 13.6 per cent. The first quarter 2008 charge for bad debts is SAR25 million (US$7 million) lower than the same period last year due to lower consumer finance defaults and higher recoveries. The bank’s capital and liquidity positions remain strong.
“In conjunction with our joint venture investment bank, HSBC Saudi Arabia Limited, and our insurance associate, SABB Takaful, SABB is able to offer a comprehensive range of financial services within Saudi Arabia. This local ability is complemented by our close relationship with HSBC with whom we can deliver joined-up global financial solutions for our valued customers.
“We thank our customers for their continued support, and our staff for their commitment and contribution to the bank’s success.”
15 April 2008
SABB's credit card marketing campaign entitled "Million Riyals Cash Prizes", was a major success in all aspects. The bank held a ceremony to distribute the campaign prizes to winners of the campaign grand prizes, at SABB's head office, attended by Mr. Nabil Al-Hoshan, General Manager, Personal Financial Services at SABB, in addition to a representative from Riyadh Chamber of Commerce and Industry.
The prize winners are: Mr. Ammar A Sindy who won SAR 500,000, Mr. Ziad S. Sharafaddeen SAR 200,000, Mr. Ali Hussain Al-Yami, SAR 150,000, Mr. Ibrahim Al-Zahrani SAR 100,000, and Mr. Mohamed M Qussai SAR 50,000.
Mr. Al-Hoshan commented on the occasion, saying: "We are very pleased with the results of this campaign, which exceeded our expectations, and I would like to congratulate our winning customers, for these valuable prizes." He also added: "This success is attributed in the first place to the efforts exerted by all SABB employees, who worked hard to develop and manage this campaign, in addition to the outstanding quality of services offered to our valued customers, who deserve our sincere thanks."
12 April 2008
As part of "SABB in the Community" Programmes
SABB Participates in an Anti-drugs Awareness Campaign
SABB has participated in an anti-drug awareness campaign, named "A Family without Drugs", carried out by "The Security Forces Hospital" in Riyadh, in collaboration with the Anti-Narcotics General Administration.
Mr. Ibrahim S. Abo-Mouti, Head of Corporate Communications at SABB, said: "The bank has chosen to sponsor this event, to highlight our firm belief on its objectives, and to support the efforts exerted by the Anti-Narcotics General Administration, to halt the spread of this fatal poison, which poses a real threat to societies and communities all over the world." Mr. Abo-Mouti added: "We also aim to alert the public of the damaging consequences of drugs, and its health and social impact on the individual and society as a whole."
It is worth mentioning that SABB has paid great intention – during the last few years – to develop and nurture new community service programmes in addition to the ongoing and existing ones i.e. the annual programme to obtain an MBA degree from U.K., and the sponsorship of the Chair-in-Finance at KFUPM, in addition the banks continued efforts to support the various causes instigated by various charitable societies, for example 'The School Bag Programme, supervised by “Riyadh Orphans Charitable Society - INSAN”, in addition to the bank's annual "Blood Donation Campaign."
5 April 2008
SABB has participated in the "Earth Hour 2008", run by the World Wildlife Fund "WWF", the conservation organization. Earth Hour, is a global climate change initiative to combat global warming.
The campaign calls on individuals and establishments to turn off the non-essential lights for 1 hour - between 8 pm and 9 pm, , to deliver a powerful message about the need for action on global warming.
Mr. Ibrahim S. Abo-Mouti, Head of Corporate Communications at SABB, said: "The aim of the campaign is to express that individual action on a mass scale can help change our planet for the better. SABB's participation in this campaign comes as part of its "SABB in the Community Programme", and an attempt on our side to promote environmental awareness among individuals and their role towards preserving the environment, and also help in enhancing their roles as friends of the environment."
Mr. Abo-Mouti, added: "SABB is one of the first Saudi establishments and companies to participate in the "Earth Hour", and that SABB has called on its employees to join this international campaign, and help in sending a strong message to express the need to take efficient measures to combat global warming."
It is worth mentioning that more than 195,000 individuals and more than 11,000 businesses from all over the world participated this year.
30March 2008
The Annual General Meeting of The Saudi British Bank (SABB), held at its head office in Riyadh, approved the agenda of the meeting including approval of Directors report for the year ending 31 December 2007.
Approval was also given to pay the 2007 final dividends of SAR2.22 per share for the second half of the fiscal year 2007, beginning from Saturday 28 Rabi I, 1429 corresponding to 05 April 2008. Considering the dividend of SAR1.535 paid for the first half of the year, the total net dividend per share for the year ending on 31 December 2007 will amount to SAR3.755 per share.
Commenting on the event, Sheikh Abdullah Al-Hugail said “The year 2007 has seen a very good progress by HSBC Saudi Arabia Ltd., a 40% SABB owned investment company, which excellent activities and services were recognized by seven international awards during the year. The year has also witnessed the launch of SABB Takaful business which provides Islamic Sharia compliant insurance services. The establishment of the affiliate SABB Insurance Services Company Ltd., which will offer insurance brokerage and re-insurance services, has come a long way. SABB Securities Services Ltd. was also established as an affiliate to undertake securities brokerage services through SABB branches across the Kingdom. This company has so far made an impressive progress and improved its market share from the 6th to the 2nd rank”
He added “In spite of the hot competition in the market, the Corporate Banking maintained its leading position in the Islamic loans and finances having contributed to most major transactions in the year for the public and private sectors. This success is mainly attributable to the bank’s ability to offer innovative international solutions to the market. Demand on the personal banking services has also seen substantial growth, particularly the Islamic compliant services. The bank has also maintained its leading position in the community service and sponsored many social and charitable contributions during the year while maintaining its commitment to training and upgrade of the qualifications of Saudi nationals by adopting many training and educational schemes.”
The Annual general Meeting was attended by a large number of shareholders; this indicates an excellent interaction between the bank’s management and shareholders and is hoped to achieve further progress for the bank at all levels.
30 March 2008
SABB employees are currently participating in a "Blood Donation" campaign, organized by the bank, in collaboration with King Faisal Specialist Hospital and Research Centre. Priority to utilize the quantities of donated blood will be given to "Sanad Children's Cancer Support Society", and the campaign comes under "SABB in the Community Programmes".
Mr. Ibrahim S. Abo-Mouti, Head of Corporate Communications at SABB, said: "SABB is paying great attention to its responsibility towards the community, and the initiation of this blood donation campaign, comes as part of the programmes offered by SABB in this regard. The main purpose of the campaign is to expand our social responsibility programmes, in addition to promoting awareness of social services among the bank's employees, through their participation in various charitable and social events carried out by SABB."
Mr. Abo-Mouti, extended his thanks to the organizers from King Faisal Specialist Hospital, and to all SABB employees who participated actively in this campaign. He also pointed out the success of the campaign, which has witnessed large participation from SABB employees who contributed enthusiastically to this humanitarian cause.
It is worth mentioning that SABB - during the last five years - has paid special emphasis to develop and enhance its pioneering programme known as "SABB in the Community", and to introduce and launch new programmes, in addition to the existing and on-going ones set by the bank, i.e. the sponsorship of KFUPM Chair-in-Finance, and the bank's continued efforts to support charitable societies, i.e. "The School Bag Programme", supervised by "Riyadh Orphans Charitable Society - INSAN”.
16 March 2008
HSBC SA Ltd. Provides opportunities to invest in the global emerging markets
HSBC SA Ltd. began receiving subscription applications for its new investment Shariah-compliant Fund “HSBC Global Emerging Markets Fund” subsequent to the success of their other Funds previously launched.
HSBC Global Emerging Markets Equity Fund (GEM) aims to provide long-term capital growth by investing in a diversified portfolio of Shariah-compliant equities with an official listing on a major Stock Exchange or other Regulated Markets of emerging market countries, as well as in equities of companies listed on other Stock Exchanges and Regulated Markets which carry out a substantial part of their economic activities in an emerging market country. The Fund will pursue its objective through active management of a portfolio of Shariah-compliant equities.
The Fund’s investment universe will comprise more than 15 emerging market countries; typical emerging market countries include Brazil, Russia, China, Taiwan, South Korea, Mexico, India and South Africa with a possibility to invest in any geography falling within the scope of emerging markets depending on the emerging opportunities.
Subscription applications will be received during the initial launch period which extends to 05 March 2008 at a price of USD 10 per unit. Investment will be available to the Company’s customers and other non-company investors. The Fund is open-ended and subscription applications will be accepted after the initial launch period. The actual fund investment date will be 06 March 2008. The Fund units will be valued twice a week, and the date for reception of subscription and redemption applications will be before 12:00 PM on Monday in respect of the valuation day of the next Tuesday, and before 12:00 PM on Wednesday in respect of the next Thursday valuation.
01 March 2008
SABB and HSBC Bank Middle East (HBME) have signed an agreement, where SABB will operate a call centre in Riyadh for HBME, to handle calls from Arabic-speaking customers related to cards and various banking services across the Middle East.
The agreement was signed by Richard Groves, Executive Director and Chief Operating Officer, at SABB and Ken Matheson, Regional Chief Operating Officer, HSBC in Dubai, at a ceremony attended by SABB and HSBC senior managers.
The new SABB unit will be phased in during the second half of this year and by December will be handling around 3,000 calls a day covering a full range of credit cards and banking services, as well as dealing with marketing, new product campaigns and contact with prospective customers.
Richard Groves commented: “The project is highly significant for SABB. It demonstrates the confidence that HSBC Group has in SABB’s ability to deliver an essential service to a world class standard. This is an enormous compliment to SABB and its staff. The co-operation between SABB and HSBC is already at a high level and we strongly believe that our close relationship will continue to create frequent opportunities for strengthening our working partnership.”
“This strategic alliance with SABB is very much about being “Joined Up” and a true demonstration of what we can do together and how we can make our businesses more efficient through the use of technology.,” said Ken Matheson.
SABB’s current call centre operations have won global recognition as being among the world’s best. At the "2007 World Call Centres Awards", SABB won the silver medal for best call centre in Europe, the Middle East and Africa, and the silver medal for "Best Call Centre" among medium sized operations, in addition to "Best Outbound Campaign".
27 February 2008
SABB has appointed Saeed Al-Khuraimi, one of Saudi Arabia’s best known financial services professionals, as General Manager, SABB Amanah Islamic Services where he will head up the Bank's comprehensive Islamic financial services activities.
Mr. Al-Khuraimi comes to SABB with more than 25 years’ experience in financial services in the Kingdom, where he has held many senior positions in the local financial sector. He had also worked for SABB from 1982 to 1995, in several roles, last of which was Manager Private Banking, WPM.
Commenting on his appointment, Mr. Al-Khuraimi said: “SABB is one of the most prominent financial institutions in the Kingdom. My task is to further develop the Bank’s Shariah-compliant business, grow the portfolio of Islamic financial services offered by ‘SABB Amanah’, and help the Bank substantially in achieving its strategic goals.”
Mr. Adel Marzook Al-Nasser, Deputy Managing Director at SABB, said: “Our aim is to ensure we have the strongest possible team of Saudi nationals running our core businesses. In Saeed, we have secured one of the Kingdom’s outstanding financial services experts with an extraordinary track record. We are delighted to welcome him.”
12 February 2008
SABB has recently participated in the 19th 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 highlights 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.
January 25, 2008
Richard Groves has been appointed Executive Director and Chief Operating Officer of SABB (The Saudi British Bank). He also takes over as Chairman of SABB Securities Limited.
Mr Groves has been with the HSBC Group, which includes SABB as an associate member, since April 1981. Immediately before moving to SABB he was Chief Executive Officer of HSBC Bank Middle East Limited, Sultanate of Oman, from June 2004.
Previously, Mr Groves was Regional Head Northern India for HSBC India after working in Malaysia, Hong Kong, the Philippines, Australia, Indonesia, and the United Kingdom in various roles.
Said Mr Groves. “In the intensifying competitive environment in Saudi Arabia, SABB must maintain and expand its reputation as one of the Kingdom’s top financial institutions. I very much look forward to taking up that challenge in my new post.”
John Coverdale, Managing Director of SABB, commented: “Richard has exactly the kind of experience that will help us to further leverage our relationship with HSBC, ensuring that our branch network, communications, systems and support services are operating at the highest level delivered by the Group worldwide. This is essential to enable us to continue to offer to our customers a full range of products and services that meet their increasingly sophisticated needs.
“We welcome Richard's arrival as a key member of SABB’s top management team.”
19 January 2008
Highlights
Commentary
SABB recorded a net profit of SAR2,607 million (US$695 million) for the year ended 31 December 2007. This represents a 14.2 per cent decline compared with 2006. However, net profit for the three months ended 31 December 2007 increased by 20.5 per cent compared with the same period in 2006.
John Coverdale, Managing Director of SABB, said: “SABB has had a strong final three months of 2007 and has now delivered profit growth in the last four successive quarters. This robust performance reflects the strength of our core business model, the exceptional quality of our balance sheet and the close relationships that we maintain with our clients. Our strategy ensures that SABB is not excessively exposed to fluctuating economic cycles and maintains the flexibility to respond to evolving customer needs while sustaining superior returns to our shareholders.
“The SAR19.5 billion (US$5.2 billion) increase in loans and advances compared to 31 December 2006 is particularly encouraging and reflects the continuing strength of the corporate market together with good retail product growth. This loan growth has been supported by a SAR12.5 billion (US$3.3 billion) increase in customer deposits and the utilisation of SAR6.8 billion (US$1.8 billion) of funds from maturing investments generating an additional SAR475 million (US$127 million) of special commission income compared to 2006. Excluding the lower contribution from the brokerage and mutual funds businesses, core banking non-funds income has grown by SAR180 million (US$48 million), or 22.0 per cent, compared to 2006.
“Cost growth has been restricted to 1.8 per cent over the prior year which experienced accelerated investment in rebranding, recruitment and systems enhancements. 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 continues to benefit from the strong underlying Saudi economy. The bank’s capital and liquidity positions remain strong.
“SABB has made significant progress during 2007 towards its goal of becoming a comprehensive provider of financial services within Saudi Arabia. Products developed by our insurance company, SABB Takaful, which began trading on 1 July 2007, have been very well received by our clients and successfully complement our traditional bank offerings. Our joint venture investment bank, HSBC Saudi Arabia Limited, is also an important contributor to SABB’s results and demonstrates the mutual benefits obtained by joining up with HSBC and gaining access to its global expertise in providing complete financial solutions for our customers.
“We thank our customers for their continued support, and our staff for their commitment and contribution to the bank’s success.”
15 January 2008
The Saudi British Bank has been recognized as the Best Private Bank in Saudi Arabia in the Euromoney Private Banking and Wealth Management Survey 2008 which is regarded as the benchmark for the wealth management sector.
Commenting on the survey results, Adel Marzook Al-Nasser, Deputy Managing Director of SABB said: "This is the reward for the distinguished efforts and excellent performance by SABB’s highly skilled private banking and support teams backed by the global expertise of HSBC. Together, they have enabled us to develop and provide distinctive and innovative products and services, which the survey appears to show are meeting our customer’s demands and expectations. We are particularly proud of this accolade since the Euromoney awards are considered the most prestigious and important reference for global financial services”.
Saudi Arabia is one of the fastest growing wealth management markets in the world. The value of assets under management by the wealth management arms of the Kingdom’s banks has been growing at an average of 135% over the past 3 years. The survey results – which began last September - reflect increasing competition in the Saudi banking sector, and the private banking segment of the market will see some of the fiercest competition over the coming years with both local and international banks playing a prominent role.
14 January 2008
SABB and Dnata Saudi Travel Agency have entered into a strategic alliance to offer exclusive privileges and special offers to SABB customers.
As part of this initiative, SABB Premier, Al-Imtiaz, and credit card customers will have access to express service counters at all Dnata Travel offices across the Kingdom. Dnata Travel will also offer a dedicated 24 hours call centre service for SABB customers, who will enjoy tailor made, exclusive travel services with priority handling.
Nabil Al-Hoshan, SABB's General Manager Personal Financial Services, commented: “The customer always comes first at SABB and we believe strongly that our responsibilities towards them go beyond providing them with first class banking services.
“Travel for business or pleasure is an important part of many customers’ lives and our alliance with Dnata Travel aims make the whole travel experience easier, faster and more convenient for them.
“As one of Saudi Arabia’s top travel agencies, Dnata Travel is uniquely positioned with its wealth of experience and expertise to provide the same standard of customer care and service that our customers expect from SABB. We are pleased to welcome Dnata Travel as our partners in this initiative.”
Mohammed Mosaid, General Manager Dnata Saudi Travel Agency, added: “Like SABB, Dnata Travel’s growth and reputation has been built on delivering world class service to our customers. We are delighted to be allied with an organization which shares and mirrors our vision.”
5 January 2008
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