Riyad Bank — Earnings Release 2003

Oct 7, 2003

Riyad Bank Net Profit SAR 1219 Million as of Sept. 2003.

1010 · 07/10/2003 12:46:05 · Announcement #4987 · View on Saudi Exchange

Riyad Bank Net Profit SAR 1219 Million as of Sept. 2003.

The Chairman of Riyad Bank, Mr. Rashed Abdulaziz Al? Rashed, announced that the Bank recorded a Net Profit of SAR 1,219 million in the third quarter of 2003, compared to SAR 1,072 million recorded in the same period last year. This increase of approximately 14%, shows steady growth in profits and return to shareholders. Consequently, the Return on Equity grew from 16.4% to 18.3% and Return on Assets, from 2.10% to 2.32%. The stability and strength of the financial position of Riyad Bank is evidenced by the Banks? Capital Adequacy ratio. Riyad Bank,s ratio is 21% compared to the 8% required by the Basel Committee. Mr. Al-Rashed added that the growth in profits reflects the Bank?s successful strategy to continue improving its Shareholders? value, and also to meet Shareholders expectations in achieving appropriate returns. The performance of the Trading Portfolio has been outstanding, achieving gains of SAR 304 million as compared to SAR 19 million for the same period last year. This has been achieved despite volatile and uncertain Market conditions. The Bank?s Foreign Exchange Income has also significantly increased from SAR 38.8 million to SAR 68.2 million. Mr. Al-Rashed pointed out that the Bank has been working towards improving and expanding its banking services for its customers, for example, trading services, investment services and mutual funds. The Bank recorded SAR 309 million as income from its banking services an increase of 24% compared to the same period last year. The award of Best Performer Fund Manager, for the 5th consecutive year, reflects the continued success of the Bank in managing its mutual funds. He also mentioned that referred the growth in the Bank?s profit was attributable to extending the major banking services, such as deposits, loans and the continuing enhancement of customer services by providing a variety of products and introducing new and sophisticated banking services. The Bank?s deposits increased to SAR 45 billion, SAR 1.7 billion more than last year, an increase of 4%. Loans and Advances - net, have increased to SAR 27.2 billion, an increase of SAR 3.7 billion or 16%. This is in addition to the increase in the investment portfolio, which has increased to SAR 33.5 billion an increase of 3.2% compared to the last year. The Bank?s efficiency ratio has improved to 42.7%.

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