Riyad Bank — Earnings Release 2005

Jul 6, 2005

Riyad Bank achieves SAR 1,460 Million Net Income for the First Half

1010 · 06/07/2005 16:10:24 · Announcement #7012 · View on Saudi Exchange

Riyad Bank achieves SAR 1,460 Million Net Income for the First Half

The Chairman of Riyad Bank, Mr. Rashed Abdulaziz Al? Rashed, announced that the Bank recorded a Net Profit of SAR 1,460 Million for the first six months of 2005. This profit includes SAR 296 Million gains 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 1,164 Million, an increase of 26% compared to the same period last year.

Mr. Al-Rashed mentioned that the increase in income reflects the Bank?s commitment to maintaining continuous and balanced growth. Excluding the gains from the sale of land, the Bank?s Return on Equity has increased to 23.9% compared to 21.1% for the same period last year. Return on Average Assets has increased to 3.11% compared to 2.58% for the same period last year. The Bank?s efficiency ratios reached 35%.

Mr. Al-Rashed pointed out that Total Operating Income reached SAR 1,928 Million. The Net Special Commission Income reached to SAR 1,287, compared to SAR 1,187Million for the same period last year. The Bank also maintained continuous growth in Fees from Banking Services to reach SAR 477 Million, an increase of 58% over the same period last year.

Mr. Al-Rashed pointed out that the Bank has been working towards improving and expanding its banking services for its customers, such as, shares trading and other banking activities through the Internet and other E-banking services provided by the bank.

He also mentioned that the Bank has made significant growth in the major items of its Balance Sheet. The Balance Sheet reached SAR 77,294 Million, an increase of SAR 4,547 Million compared to the same period last year, or an increase of 6.3%. Loans and Advances - net, have increased by 31% to reach SAR 39,927 Million. Customer Deposits have increased to reach SAR 54,551 Million, compared to SAR 46,338 Million, an increase of 18% over the same period last year.

Mr. Al-Rashed has emphasized the outstanding success the bank has shown in managing its Mutual Funds. The award of Best Fund Manager for the seventh consecutive year reflects the continued success of the Bank . The Bank was awarded 7 out of 22 awards for first position, which represents 32% of the total awards.

Mr. Al-Rashed expressed his great appreciation to the Bank?s staff for their commendable efforts and hard work to improve the Bank?s financial performance.

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