Net profit at the London-based consortium bank Saudi International Bank (SIB) more than doubled in 1993 to £17.4 million ($25.7 million). Executive director Peter de Roos says the higher profits are due to an improved performance in all the bank’s activities, particularly fee income from fund management and merchant banking services, and to large cuts in provisions.

SIB created a new corporate advisory subsidiary in early 1993, SIB Financial Advisory Services. The new subsidiary made a significant contribution to the 78 per cent increase in non-interest income to £32.3 million ($47.8 million), says general manager Christopher Parker. The company, which has a core team of about 12, advises Saudi clients in the public and private sectors, and international companies seeking to set up joint ventures in Saudi Arabia.

SIB is proposing to increase the dividend to shareholders to £5 million ($7.4 million) from £2 million ($2.9 million) in 1992.

Bank deposits and debt securities make up more than 80 per cent of SIB’s total assets of £3,069.8 million ($4,543.3 million). Loans have continued to decline and now account for just 8 per cent of assets. They fell by 35 per cent in 1993 to £253.4 million ($375 million). Loan provisions were cut by 88 per cent to £1.5 million ($2.2 million).

SIB is 50 per cent owned by the Saudi Arabian Monetary Agency (SAMA – central bank) and 20 per cent by the Morgan Guaranty Trust Company of New York. The remainder is held by a group of international banks. It has offices in London, New York and Tokyo, and was one of several banks which had to move to new premises in London following the Bishopsgate bombing in April 1993.