The Chairman of Riyad Bank, Rashed A. Al–Rashed has announced that the Board of Directors has approved the financial statements for the year ended 31.12.2005 and as previously announced on 3 January 2006 the Bank has achieved a net income of SAR 2,837 million in 2005, compared to SAR 2,006 million in 2004, resulting in a 41.5 % increase for the year. After excluding SAR 296 million from net income representing non-recurring capital gains, the return on equity for 2005 is 23.34% compared to 20.37% in 2004 and the return on average assets is 3.29% in 2005 against 2.79% in 2004. This performance reflects Bank’s commitment to maintaining continuous growth and enhancing shareholders value.
Al-Rashed pointed out that the Bank is continuously working on improving and expanding its banking services to its customers. As a result, total income amounted to SAR 4,491 million compared to SAR 3,458 million in the year ended 2004, resulting in a 30 % increase and fees income has increased from SAR 612 million in 2004 to SAR 1,098 million, or by 79.4 % over last year mainly in respect to investment services and mutual funds. He also stated that the growth in the profits was also due to the balance sheet growth. Total Assets reached SAR 80,079 million, an increase of SAR 5,832 million or 7.9 % over last year. Total Deposits increased to SAR 52,929 million, SAR 3,187 million above last year, an increase of 6.4 %. Net Loans increased to SAR 45,606 million, an increase of SAR 11,662 million or 34.4 %.
He mentioned also that Fitch Ratings has awarded Riyad Bank ‘A’ for Long-term and ‘F1’ for Short-term. This is the highest rating for banks in Saudi Arabia.
Al-Rashed added that the Bank has announced dividends for the second half of 2005 of SAR 8 per share, in addition to SAR 8 per share paid for the first half of 2005. This would total to SAR 1600 million, or SAR 16 per share. Moreover, the bank has announced to apply to the concerned authorities to increase its paid up capital from SAR 5,000 million to SAR 6,250 million by issuing one bonus share for each 4 shares held after approval in next extra-ordinary assembly meeting. In addition the Bank has already issued one share for each 4 shares held at the beginning of 2005.
Finally, Al-Rashed appreciated the Bank’s Shareholders, customers and correspondents for their confidence and support. Also he expressed his gratitude to the Bank’s staff for their commendable and sincere hard work towards achievement of the Bank’s objectives.
