Richard Melson

April 2006

Riyad Bank

http://www.riyadbank.com/English/index.jsp

Riyad Bank is a modern financial services company with a strong and growing retail and corporate banking franchise in Saudi Arabia. It is one of the largest financial institutions in the Middle East.

Operational performance

Our retail customers are attracted to the Bank's innovative approach to consumer finance products and investment products alike. For example, we offer the best deal on credit cards in the Kingdom as a result of an industry-leading initiative. We are also proud of the continuing recognition given to the performance of our full suite of mutual fund products.

This resulted in the Bank winning, for the 6th consecutive year, the highest number of investment awards, including "Best Manager". Our full service approach is delivered through an accessible network of nearly 200 branches and 618 Automated Teller Machines (ATMs). Customers who demand more convenience are offered our recently enhanced telephone, internet and mobile banking services. Our business customers are offered a comprehensive range of corporate banking services through a highly-trained team of relationship managers based in the major conurbations. Recent innovations in this business include an industry-leading electronic trade finance product, Riyad TradeFinance' accessible via a secure internet site. The Bank is also an acknowledged leader in the area of corporate banking & finance in the region for the Oil, Gas and Petrochemical sector. The Bank's substantial capital base has enabled us to play a primary role in syndicated loans totaling more than SR 80 billion during the last six years. The international banking needs of our clients are supported by branches and offices in London, Houston and Singapore.

Financial performance

Riyad Bank's continuing focus on understanding customers' needs and delivering against them has resulted in improving financial results year-on-year. Net income for the year ended 31/12/2004 rose to SR 2,006 million, compared to SAR 1,592 million in 2003. This increase of approximately 26%, shows steady growth in profits and returns to shareholders. Consequently, the Return on Equity grew from 18.6% to 22.2% and return on Assets, from 2.23% to 2.70%.

Financial Strength

Total assets for the end of December 2004 exceed SR 74.2 billion and shareholder's equity is over SR 9 billion. The customer deposit have risen again to SR 49.7 billion and loans have grown to almost SR 34 billion with excellent asset quality.

Queries should be addressed to:

Dr. Khan H. Zahid

Chief Economist, Riyad Bank,

Head Office:

P O Box 22622, Riyadh 11416, Saudi Arabia.

Fax: 404 1255

With compliments and best regards.

Khan H. Zahid, Ph.D.

Chief Economist and Vice President

Riyad Bank

Riyadh, Saudi Arabia

(9661) 4013030 Ext. 2534

khan.zahid@riyadbank.com

Riyad Bank Weekly Economic Briefing

Attachment: WEEKLY20060408.pdf (0.04 MB)

Economics economics@riyadbank.com

Saturday, April 8, 2006