Saudi Investment Bank (SAIB)

Saudi Investment Bank or SAIB is a public joint-stock company that operates in the investment banking sector. He trades stocks, manages assets and leasing, issues mortgages, credit cards, and insurance. The company was founded in 1976, with headquarters in Riyadh.

SAIB provides financing in the quasi-public sector and private industry. It pays attention to the field of trade subsidies for improving imports and increasing exports of Saudi Arabia.

Among the shareholders of the Saudi investment bank, there are companies such as the General Organization for Social Insurance and the State Pension Agency.

The bank is an active participant in the Committee on Financial Crimes, attends frequent meetings of the Saudi Arabian Monetary Authority. The company has particular branches that study the identity of each client. This is part of a program to combat money laundering and the financing of terrorism.

AML rules, money laundering, are designed to prevent fraudsters from hiding illicit money as legitimate income. Saudi Investment Bank is one of those financial institutions that provides guarantees that it does not issue loans and does not open deposits to criminals. In addition to units for the calculation of criminal customers, there are departments for monitoring the implementation of this project.

As a working principle, the company adheres to 10 UN rules in the field of human rights, environment, and anti-corruption. SAIB fully supports the protection of human rights and engages in activities that do not violate them. The company solves business issues through free collective bargaining.

The organization does not have forced labor, and there is no discrimination in the world of work. SAIB prudently addresses environmental issues, takes responsibility for the environment, and encourages the development of environmentally friendly technologies.

Finance and rating of the Saudi Investment Bank

The company’s financial statements for the six months that ended June 30, 2019, show that net profit, compared to the same period last year, decreased by 104%.

The bank’s executive director associates the indicators with an increase in operating expenses, an increase in loan and salary reserves, costs related to employees, depreciation, and amortization.

At the same time, total operating income rose 0.6%. The statements state that this is due to an increase in net special fee and commission income, exchange income, and unrealized fair value through profit or loss.

After deducting zakat and income tax, net profit for six months reached the level of 285 million riyals, and the loss amounted to 3 million riyals. Earnings per share for the same period are equal to SAR 0.86.

Despite declining profits and losses, Fitch Ratings notes that Saudi Investment Bank’s operating profit, liquidity, and capital adequacy ratios are high and exceed established requirements.

Fitch Ratings affirms the issuer’s long-term default rating of “VVV+” with a stable outlook, bank viability rating, and bank support rating of “BBB-” and “VVV +.” The agency’s assessment is based on the experience of supporting Saudi banks by the Saudi government. The kingdom is often ready to maintain stability in the domestic financial system.

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