Moody’s confirms SABB’s Aa3 long-term deposit ratings

Moody's Investors Service, one of the world's major rating agencies, has confirmed the Saudi British Bank's (SABB) "Aa3 long-term deposit ratings" with a stable outlook.
According to Moody's report, "SABB's strong corporate franchise, beneficial association with HSBC Holdings and good funding and liquidity profile position the bank well to sustain its financial fundamentals in the context of benign operating conditions in Saudi Arabia, including high infrastructure spending and a rapidly growing population."
Moody's decision to confirm the ratings of Saudi British Bank at their current level was driven by the rating agency's observation of improvement in the bank's asset quality and profitability metrics, which are consistent with global and regional peers that have the same standalone credit strength.
Commenting on the affirmation, David Dew, MD, SABB, said: "We are pleased with Moody's rating confirmation and the stable outlook. It is an indication of SABB's continuous prudent risk management and the scale and diversity of our operations, which have enabled the bank to deliver sound and strong performance."
In 2011, SABB recorded a net profit of SR 2,888 million, an increase of SR 1,005 million or 53.4 percent better than 2010. This is primarily attributable to SABB's diversified income streams, ongoing cost controls and emphasis on booking quality assets while maintaining strong capital and liquidity ratios.