Net profits at Saudi American Bank (Samba)fell by more than 22 per cent to SR 1,437 million ($383 million) in 2003. It is the second consecutive year in which Samba's profits have retreated, after a record SR 2,251 million ($600 million) was generated in 2001. The main brake on the bank's earnings was a substantial increase in credit cost provisioning, which rose to SR 622 million ($166 million) last year from SR 101 million ($27 million) in 2002. The provisioning hike has brought Samba in line with the rest of the Saudi banking sector, which traditionally has maintained a conservative non-performing loan (NPL) coverage ratio (Saudi Banking, MEED Special Report, 9:5:03, pages 32-33). Negative provisioning at Samba in 2001 and 2002 had boosted profits, but its NPL coverage ratio had dropped to just over 70 per cent, one of the lowest in the sector. The bank's operating income grew 6.4 per cent last year, driven by growth in both interest income and fee income. Citigroup, which holds a 20 per cent stake in Samba, relinquished its technical management agreement on 31 October (MEED 19:9:03).