Al Eisa: Samba realized net Profits SR 1,270 million for first quarter 2007
Samba Financial Group (Samba) has announced its results for the first quarter ended March 31, 2007. Mr. Eisa Al-Eisa, Samba's MD & CEO, released the following commentary on the results and operations for the quarter.
Our net profits of SR 1,270 million were increased by 35% over last quarter of 2006 and lower by 11% compared to SR 1,428 million in first quarter 2006. Total revenues also increased by 15% over last quarter 2006. Net Special Commission for the 1Q07 at SR 1.2 billion was higher 4% compared to SR 1.1 billion in 4Q06 and was higher 14% compared to SR 1.0 billion in 1Q06. As a result of this excellent performance, our annualized ROA and ROE were 4% and 33% respectively whereas we were consistently successful in maintaining our Revenue to Expense ratio above 4.0. We were also able to keep expenses down 16% compared to 4Q06.
Samba's excellent performance came in the wake of the drop in the local & regional stock markets which started last year and impacted the brokerage and asset management businesses across all the banking and investment industry.
We were, however, able to increase our core revenues and successfully increase the cross sell across major business segments which contributed positively to our net income. The overall performance of the Bank continues to be strong with significant growth in consumer, corporate and treasury businesses. Total investments at SR 39 billion were up by 9% compared to SR 36 billion in March 2006. Total assets were at SR 130 billion compared to SR 115 billion in March 2006, a strong growth of 13%. Total deposits were SR 98 billion, up 5% since March 2006. This strong growth is reflective of the increasing confidence our customers have in us. Samba continues to enjoy strong capitalization and balance sheet with shareholders' equity of SR 15.5 billion supporting total assets of SR 130 billion. The broad based growth in the consumer and corporate businesses is adding diversity and quality of our core revenues from customers. We expect this to continue and with the bright prospects in the macro-economic indicators, we are hopeful to achieve better results in current year.
I am also pleased to announce that we have successfully completed the acquisition of the 68% shareholding of Crescent Commercial Bank Limited in Pakistan (CCBL) by meeting all related official requirements during a short period of time.
CCBL board of directors now stands re-constituted to properly reflect Samba's 68% ownership in the Bank. This acquisition comes in line with Samba's expansion plans, which are based on Samba's long term strategies. We had earlier won this deal because of our long established expertise, solid financial base and long term strategic vision. It is a remarkable achievement that adds to our ongoing success and a fruitful result for our endless efforts. The financial position of CCBL at March 31, 2007 has now been consolidated with Samba's financial statements.