News 2006

Feb 2006


Record-breaking 60% growth for the 2nd year in a row
Al-Eisa: Samba crowns 2005 with record net income of SR4 billion

Samba Financial Group announced another record-breaking year as it posted the highest net profits ever in its history for 2005. Samba's net profits for 2005 hit SR4.018 billion, an increase of 60% versus 2004 net profits of SR2.506 billion.

Says Mr.Eisa Al-Eisa, Samba Managing Director and CEO: "Since transitioning to local management, Samba has achieved record-breaking growth for the second year in a row. Net profits grew by 60% to over SR4 billion. Total assets rose to SR108.3 billion in 2005 versus SR94.7 billion in 2004. Total loans and advances also grew by 29% to SR62.4 billion, versus SR48.2 billion the previous year while demand deposit grew by 27% to SR85.2 billion versus SR67 billion in 2004. Meanwhile, return-on-equity rose by 34.9% compared to 25.7% in 2004, Return on Assets 4.0% compared to 2.9% in 2004, Revenue to Expense ratio improved to 3.9 compared to 3.1 , while earnings-per-share grew by 61% to SR33.5 versus SR20.8 in the previous year. Samba had announced a proposed net dividend of SR14 per share for 2005. This raises the total net profits distributed in 2005 to SR1.78 billion compared to SR1.74 billion in 2004.

This is in addition to the stock dividend distributed in 2005: one extra share for every two shares, raising Samba's capital to SR6 billion. Samba's strong 2005 performance was due to several factors, mainly its broad revenue base, the introduction of new investment offerings which fulfilled market needs, and the restructuring of our priorities. All these have boosted our financial strength and market reputation, as always."

Samba also managed the most important IPOs of the year including the hugely successful Al Bilad IPO early in the year, the giant Etihad Etisalat IPO and the recent Yansab IPO which broke all records. With its continuing efforts to strengthen the bank's position and capacity for growth, Samba has built a solid capital base with which to grow its asset value and achieve long-term growth.

Al-Eisa remarked that rating upgrades from various international ratings organizations reflects Samba's strong reputation and position. Standard & Poors, Moody's International and Fitch Ratings—the world's most reputable ratings agencies—have evaluated Samba's strong financial position and robust performance, upgrading Samba to an A rating and ranking it as one of the strongest financial institutions in the Kingdom. Samba's success was also echoed by the latest Financial Times rankings which saw Samba jump to number 200 (from 361 the previous year) among the world's top 500 companies, overtaking 161 international companies in the list.

Looking back at another successful year, Eisa Al-Eisa expressed his sincere appreciation to Samba customers for their continuous support and loyalty. He also thanked Samba employees for their dedication and hard work which has allowed Samba to achieve record-breaking results that they can be proud of.