Riyad Bank — Earnings Release 2006

Jul 5, 2006

Riyad Bank reports net income of SAR 1554 million for the six months ended June 2006

1010 · 05/07/2006 15:33:54 · Announcement #9135 · View on Saudi Exchange

Riyad Bank reports net income of SAR 1554 million for the six months ended June 2006

Rashed Abdulaziz Al-Rashed, Chairman of Riyad Bank, announced that the Bank achieved SAR 1554 million Net Income for the six months ended 30 June 2006. This represents an increase of 33.5% compared to the first six months of 2005, excluding the non-recurring capital gains included in the 2005 results.

Al-Rashed highlighted the consistent growth in revenue from the core banking services of the Bank. Total Operating Income of the Bank reached SAR 2478 million, an increase of 28.5% over of the same period last year. Net special commission income increased to SAR 1494 million, up by 16.1% from SAR 1287 million of the same period last year. Net Fees from banking services increased by 69.2% to reach SAR 806 million, compared to SAR 477 million for the corresponding period of 2005.

Key performance ratios of the Bank continued to improve, including Return on Equity that reached 29.5% compared to 23.9% for the same period last year. Returns on Average Assets also grow to 3.5% compared to 3.1% of the corresponding period last year.

Al-Rashed mentioned that total assets of the Bank amounted to SAR 92413 million at 30 June 2006; an increase of 19.6% over the same period last year. Net Loans and Advances continued its significant growth to reach SAR 50082 million; an increase of 25.4% over the same period last year. Total Customer Deposits reached SAR 68580 million, an increase of 30.3% over the same period last year.

Al-Rashed added that the Bank?s performance ratios reflect the continued progress toward the Bank's ambitious strategic goals with a primary focus on customer services, refereeing to the bank?s additions of range of automated and convenient tools to its delivery channels.

Al-Rashed pointed out that the Bank again generated excellent returns for shareholders, as reflected by the payment of the SAR 1000 million Riyals interim dividend for the first six months of 2006.

He also added that the success of the EMTN issued recently, confirmed the excellent reputation of Riyad Bank in the international markets. The solid credit ratings issued by Standard & Poor, awarding the Bank the highest credit rating for Banks in Saudi Arabia, evidenced the strength of the Bank?s financial position. In addition to the Bank collecting several of the best asset management awards over the past eight years, the organization of Middle East Banks and Financial Institutions issued an award to the Bank for the best electronic banking provider.

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