Riyad Bank — Earnings Release 2005

Oct 5, 2005

Riyad Bank reports net income of SAR 2,127 million for the nine months ended 30 September 2005

1010 · 05/10/2005 20:14:23 · Announcement #7324 · View on Saudi Exchange

Riyad Bank reports net income of SAR 2,127 million for the nine months ended 30 September 2005

Rashed Abdulaziz Al-Rashed, The Chairman of Riyad Bank, announced that the Bank has achieved Net Income of SAR 2,127 million for the nine months ending September 30th 2005, an increase of 50.1% compared to the same period last year. This profit includes a SAR 296 million gain from the sale of land owned by the Bank that was announced on 16/04/1426, corresponding to 24/05/2005. Mr. Al-Rashed added that the Bank?s net income from Banking and Operating activities reached SAR 1,831 million, an increase of 29.2% compared to the same period last year

Al-Rashed pointed out that this performance reflects the Banks commitment to maintaining continuous growth and enhancing shareholders value. Mr. Al-Rashed mentioned that the total Operating Income reached SAR 3,038 million, recording a growth of 21.6% over the same period last year. Fees from Banking Services increased to SAR 750 million, an increase of 61% over the same period last year, which had recorded SAR 466 million. Net Special Commission Income increased by 11.8% reaching SAR 1,974 million, compared to SAR 1,766 million for the same period last year.

Al-Rashed also mentioned that the Bank?s Total Assets reached SAR 78,257 million, recording a growth of 6.9% over the same period last year. Loans and Advances, net recorded a growth of 28.7 % over the same period last year, to reach SAR 41,150 million by the end of the third quarter. Total Customer Deposits reached SAR 55,002 million compared to SAR 47,480 million for the same period last year. Also, the Bank has improved its performance ratios. Return on Equity reached 23.49 %, from 20.24 % of the same period last year, Return on Average Assets up to 3.21% compared to 2.65% for the same period last year, which indicates good quality assets and effective risk management.

Al-Rashed added that, Fitch Ratings, the International Rating Agency, has awarded Riyad Bank ?A? for Long-term rating and ?F1? for Short-term rating. These ratings have been the highest rating for banks in Saudi Arabia.

Al-Rashed said that the Bank is working towards improving and expanding its banking services and introducing a variety of convenient tools to use, such as, shares trading through the internet and other E-banking services.

Al-Rashed thanked the Bank?s Shareholders and customers 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.

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