Saudi Arabia’s National Commercial Bank (NCB) reported that net Income for the first quarter of 2003 was 742.6 million Saudi riyals ($198 million), compared to SR722.8 million during the first quarter of 2002, an increase of 2.7 percent.
Net Income excluding gains from sales of investments rose by 25.8 percent to reach SR741.5 million compared to SR589.3 million during the same period of last year, an increase of SR152.2 million.
Gains from sales of investments declined by SR132.4 to reach SR1.1 million compared to SR133.5 million for the same period last year. As a result, return on average assets amounted to 2.7 percent, while equity increased to SR9.8 billion with return on average equity at 31.8 percent.
All segment and product groups contributed to the growth in profits reflecting a surge in commission and fee income. Operating expenses, net of provisions for loan loss, increased by 7.7 percent to reach SR413 million compared to the same period last year.
Salaries and staff related expenses accounted for 61.6 percent of such increase as 82 new Saudi staff were hired bringing the Saudization ratio in the bank to 80 percent. Total assets were SR110.7 billion at the end of this year first quarter, with an increase of SR10.7 billion or 10.7 percent.
Customer deposits increased by SR9.1 billion or 11.5 percent to reach SR88 billion while loans and advances to customers grew by SR5.9 billion or 15.4 percent to reach SR44.2 billion by the end of the first quarter 2003.
Dring the first quarter of this year, the bank has also introduced several new and innovative products and services to its customers such as Alahli Auto Finance Fund as well as updating the bank operating system for 168 branches. NCB has also been presented with the Euromoney award for Best Islamic Fund Manager of the year. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
