Riyad Bank — Earnings Release 2004

Jan 12, 2005

Riyad Bank?s Net Profit for 2004 exceeds SAR 2 Billion

1010 · 12/01/2005 12:34:53 · Announcement #6175 · View on Saudi Exchange

Riyad Bank?s Net Profit for 2004 exceeds SAR 2 Billion

The Chairman of Riyad Bank, Mr. Rashed Abdulaziz Al?Rashed, announced that the Bank achieved a Net Profit of SAR 2,006 million in 2004, compared to SAR 1,592 million in 2003. This increase of 26% shows a steady growth in profits and returns to shareholders. Consequently, the Return on Equity grew from 18.6% to 22.2% and Return on Assets, from 2.2% to 2.7%. Mr. 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 3,458 million, compared to SAR 3,196 last year, an increase of 8% Mr. Al-Rashed pointed out that the Bank is steadily 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 612 million, or by 61 % over last year. He stated that the growth in Bank?s profit was also due to the balanced growth in assets and a focus on high yielding products combined with prudent risk management. Total Assets reached SAR 74,247 million, an increase of SAR 2,740 million or 4% over last year. Total Deposits increased to SAR 49,742 million, SAR 3,863 million above last year, an increase of 8%. Net Loans and Advances increased to SAR 33,944 million, an increase of SAR 5,992 million or 21%. The Bank?s Efficiency Ratio has also improved to 39%. Mr. Al-Rashed added that the Bank has announced a dividend for the second half of 2004 of SAR 10 per share. This is in addition to the dividend of SAR 8 per share that was distributed for the first half of 2004. Total dividends for 2004 are SAR 1,440 million, or SAR 18 per share. Mr. Al-Rashed said that in order for the Bank to address the expansion in its banking services and products, the Board of Directors will recommend to the general assembly at its forthcoming meeting on 12/01/1426, corresponding to 21/02/2005, an increase of the Bank?s capital from SAR 4 billion to SAR 5 billion. This will be achieved by granting one additional share for every four shares held, by means of a transfer from the statutory reserve. Bonus Shares are not subject to the recommended 2004 dividend. The stability and strength of the financial position of Riyad Bank is evidenced by the Banks? Capital Adequacy ratio, which stands at 20%.

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