In 2007 NCB increased Tier 1 capital by 23% to $7.9bn, boosted assets by 34% to $55.7bn and recorded net profits of $1.6bn, 4% down on the previous year but in line with overall Saudi results. NCB posted a return on equity of a creditable 22.5% and achieved net profits of $1.2bn for the first three quarters, again slightly down as a result of fluctuations in global financial markets.
In terms of developments, NCB established a separate capital markets subsidiary, NCB Capital, signing a strategic alliance with US bank Goldman Sachs International. NCB also entered the insurance market through AlAhli Takaful, in partnership with the International Finance Corporation and Germany’s FWU Group. Also, through its Oryx Regional private equity fund it acquired 30% of Egypt’s HC Securities & Investment and 20% of Dubai-based HBG. In addition to this, the bank acquired a 60% stake in Turkey-based Turkiye Finans Katilim Bankasi.
“NCB continues to forge ahead to achieve these key milestones, customer service, innovation and regional expansion, notwithstanding the challenges such as the present global financial crisis. It is a great honour to be the recipient of the Bank of the Year Award 2008 and in an increasingly competitive market we are delighted at this acknowledgement of the bank’s success”, says Abdullah S Bahamdan, chairman of NCB.
