HSBC Holdings Regulatory News (HSBA)

23 Jan 2007 14:32

HSBC Holdings PLC23 January 2007 The following news release was issued today by SABB - The Saudi British Bank, a40 per cent indirectly-held associate of HSBC Holdings plc. THE SAUDI BRITISH BANK 2006 ANNUAL RESULTS - HIGHLIGHTS - Net profit of SAR3,040 million (US$811 million) for the year ended 31 December 2006 - up SAR536 million (US$143 million), or 21.4 per cent, over the same period in 2005. - Net profit of SAR585 million (US$156 million) for the three months ended 31 December 2006, compared to SAR630 million (US$168 million) over the same period in 2005. - Operating income of SAR4,617 million (US$1,231 million) for the year ended 31 December 2006 - up SAR797 million (US$213 million), or 20.9 per cent, over the same period in 2005. - Customer deposits of SAR59.3 billion (US$15.8 billion) at 31 December 2006 - up SAR10.8 billion (US$2.9 billion), or 22.3 per cent, over 31 December 2005. - Loans and advances to customers of SAR42.5 billion (US$11.3 billion) at 31 December 2006 - up SAR1.7 billion (US$0.5 billion), or 4.2 per cent, over 31 December 2005. - Total assets of SAR77.2 billion (US$20.6 billion) at 31 December 2006 - up SAR11.3 billion (US$3.0 billion), or 17.1 per cent, over 31 December 2005. - Earnings per share of SAR8.11 (US$2.16) for the year ended 31 December 2006 - up 21.4 per cent from SAR6.68 (US$1.78) over the same period in 2005^. ^Earnings per share for the year ended 31 December 2005 have been adjusted toreflect a 1:2 bonus issue approved at the Annual General Meeting held on 21March 2006 and a 5:1 share split effective 8 April 2006. Commentary SABB recorded a net profit of SAR3,040 million (US$811 million) for the yearended 31 December 2006. This represents an increase of 21.4 per cent over theSAR2,504 million (US$668 million) earned in the same period in 2005. Customer deposits increased to SAR59.3 billion (US$15.8 billion) at 31 December2006 from SAR48.5 billion (US$12.9 billion) at 31 December 2005. Loans and advances to customers increased to SAR42.5 billion (US$11.3 billion)at 31 December 2006 from SAR40.8 billion (US$10.9 billion) at 31 December 2005. The bank's investment portfolio totalled SAR21.7 billion (US$5.8 billion) at 31December 2006, an increase from SAR16.4 billion (US$4.4 billion) at 31 December2005. John Coverdale, managing director of SABB, said: "SABB has successfully managedto attain remarkable results in 2006, achieving a 21.4 per cent growth in netprofits for its shareholders. These results were achieved due to our increasedfocus on and diversification of core banking products and services, which positions the bank well for future growth. "Operating income of SAR4,617 million (US$1,231 million) for the year ended 31December 2006 is up SAR797 million (US$213 million), or 20.9 per cent, over thesame period in 2005, while the cost base has increased by 16.2 per centreflecting SABB's continuing investment in customer service, technology and inits staff. Total operating expenses have increased by 23.7 per cent. "Credit quality remains sound. Increased levels of provision against card andconsumer loans relate to business growth and expansion into new market sectors.Deposit levels remain high due to increased market liquidity and significantcorporate balances relating to major projects in progress. The bank's capitaland liquidity positions are very strong. "Following the formal establishment of our investment banking affiliate, HSBCSaudi Arabia Ltd, in the third quarter of 2006, SABB has now been awarded aninsurance operating licence for its SABB Takaful company allowing it to offer acomprehensive range of Shariah-compliant Takaful products for personal andcorporate customers. "The SABB Board of Directors has recommended a final net dividend of SAR2.25(US$0.60) per share for the second half of 2006. This follows the paymentearlier in 2006 of an interim dividend of SAR1.5 (US$0.40) net per share. "We thank our customers for their continued support, and our staff for theircommitment and contribution to the bank's success." This information is provided by RNS The company news service from the London Stock Exchange