Riyad Bank — Earnings Release 2003

Jan 13, 2004

Riyad Bank Net Profit SAR 1,592 Million, for 2003.

1010 · 13/01/2004 14:55:10 · Announcement #5126 · View on Saudi Exchange

Riyad Bank Net Profit SAR 1,592 Million, for 2003.

The Chairman of Riyad Bank, Rashed Abdulaziz Al? Rashed, announced that the Bank achieved a Net Profit of SAR 1,592 million in 2003, compared to SAR 1,416 million in 2002. This increase of approximately 12.4%, shows a steady growth in profits and returns to shareholders. Consequently, the Return on Equity grew from 16.89% to 18.63% and Return on Assets, from 2.11% to 2.23%. The stability and strength of the financial position of Riyad Bank is evidenced by the Banks? Capital Adequacy ratio, which stands at 20%. Al-Rashed added that the growth in profits reflects the Bank?s continuous efforts to enhance its market position and meet its customer needs. Gross Operating Income reached SAR 3,196 million, an increase of SAR 2,826 above last year, an increase of 13%. The performance of the Trading Portfolio has been outstanding, achieving gains of SAR 447 million compared to SAR 90 million for last year. This has been achieved despite volatile and uncertain market conditions. The Bank?s Foreign Exchange Income has also significantly increased from SAR 57 million to SAR 92 million or by 61%. Al-Rashed pointed out that the Bank is continuously working on improving and expanding its banking services to its Customers, in areas such as Trading Services, Investment Services and Mutual Funds. As a result fee income has increased to SAR 380 million or by 11 % over last year. The award of Best Fund Manager for the fifth consecutive year reflects the continued success of the Bank in managing its Mutual Funds. He stated that the growth in Bank?s profit was also due to the balanced growth in assets and focus on good yielding products combined with prudent risk management. Total assets reached SAR 71,507 million, an increase of SAR 4,298 million or 6.4% above last year. Total Deposits increased to SAR 45,879 million, SAR 2,880 million above last year, an increase of 6.7%. Net Loans and Advances increased to SAR 27,952 million, an increase of SAR 4,103 million or 17%. This is in addition to the increase in the Investment Portfolio, which has reached SAR 33,898 million, an increase of 5.4% compared to last year. The Bank?s Efficiency Ratio has improved to 44.3%.

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