Outstanding growth of 56.4% Samba Announces Record Net Income of SAR 2,830 million for six months ended June 2006
Samba Financial Group (Samba) announced its six months ended June 2006 net income, which reached a record SAR 2,830 million (2005: SAR 1810 million) an increase of 56.4% over the same period last year. Mr. Eisa AI-Eisa, the Managing Director & CEO released the following commentary on the financial results
"The net income for the first six months of 2006 at SR 2,830 million is up by 56.4% and the operating income higher by 45% over the same period last year. The strong net income growth demonstrates the consistent quality of the franchise's excellent performance in generating shareholders' value achieved through timely investment in growth businesses, prudent balance sheet growth, and improved asset quality resulting in higher operating income.
We have launched a number of successful innovative initiatives and are confident that our franchise will continue to grow and build further momentum across all its businesses by leveraging our brand and competitive position. As always our objective, we will play a dominant and responsible role in the financial services industry in the Kingdom and endeavor to deliver sustainable quality earnings and shareholders' value.
We continue to enjoy strong capitalization and strategically manage our balance sheet with a long-term perspective keeping in mind our goals and objectives. Total loans and advances (net) were at SR 66.3 billion, up by 15.7% at the end of the same period last year. Demand deposits were at SR 34.30 billion, up nearly 12.5% for the same period. The performance indicators for the six-month period ended 30 June 2006 is the final confirmation of this outstanding performance over the same period last year. Annualized ROA has gone up to 5.1% from 3.6%, ROE at 42.6% compared to 34.5%, Core Revenue to Expense ratio improved to 4.5 compared to 3.7 and Earnings Per Share grew to SAR 9.4 compared to SAR 6.
Our performance has been remarkably rewarded and recognized by several reputable world-wide institutions. We have been named "Best Bank in Saudi Arabia 2006" and "Best Investment Bank in Middle East & Africa 2006" by Global Finance Magazine; "Best Bank in Saudi Arabia 2006" and "Best Treasury Bank in the Middle East 2006" by Euromoney; as well as granted the Banker Technology Award 2006 from the Banker Magazine.
We are extremely grateful to our staff for their continued dedication and commitment, the shareholders for their loyalty and support, and our customers for their unstinted confidence in choosing to partner with Samba in managing their investments.