Riyad Bank — Earnings Release 2001

Oct 12, 2001

Riyad Bank?s Profit at the end of the Third Quarter 2001 is 1,008 Milion Riyal

1010 · 12/10/2001 13:40:00 · Announcement #3991 · View on Saudi Exchange

Riyad Bank?s Profit at the end of the Third Quarter 2001 is 1,008 Milion Riyal

Riyad Bank announced its financial results for the third quarter 2001. The continued improvements in the Bank?s products and customer services coupled with efficient business processes enabled the Bank to post significant growth in its income. The Bank earned a profit of SR 1,008 million for the first nine months of 2001, up by 17.8 % from the comparative period of last year. Net interest income increased to SR 1,656 million, up by 16.2 % from the comparative period?s net interest income. Total operating income grew to SR 2,029 million, up by 15.3 % over the comparative period. Growth in income positively impacted the financial ratios. Return on Equity increased to 14.6 % against 13 % last period. Return on Assets increased to 2.0 % against 1.8 % last period. The Balance Sheet size grew to SR 66.2 billion, an increase of 6.2 % over last year. Investment and trading portfolios collectively grew to SR 27.7 billion against SR 26.7 billion last year. The Bank continued to maintain the high quality of its loan portfolio, which reached SR 20.5 billion on September 30, 2001. Shareholders? Equity increased to SR 9.2 billion from SR 8.8 billion. The events of 11th September have not had an adverse material impact on the Bank?s business in the third quarter. Riyad Bank maintains high levels of liquidity in order to service its customers? needs and to meet any contingencies. The decline in the world?s stock and bonds market, which was caused by these events, had a negative impact on the Bank?s trading portfolio and the investment funds it manages for its clients; but it had limited impact on other activities of the Bank. Increased tensions due to recent events have heightened market uncertainties and may have pushed global economies towards recession in the coming months. Riyad Bank is positioning itself to meet these challenges in the months ahead. However, given market conditions, it looks at this stage that sustaining the earnings pattern of the first three quarters will be difficult and therefore, we expect lower earnings growth in the fourth quarter of this year.

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