Chief executive Nabil al-Hawshan says he expects this year to be good 'by all measures'
Saudi Arabia's Bank Aljazira
expects 2011 to be good "by all measures" and sees
first quarter earnings beating that of the fourth quarter, its
chief executive said on Wednesday.
The bank's SR1bn ($266.7m) Islamic bond, or
sukuk, will help raise its lending ratio to 10 percent from five
percent over the coming year, Nabil al-Hawshan told Al Arabiya
"The success of the (bond) issue beat expectations. Demand
was very big from the private and public sector, banks,
insurance companies and investment funds," he said.
The bank on Tuesday said the 10-year sukuk was four times
Hawshan said first-quarter results were expected to be
better than those of the fourth quarter of 2010, when the bank
narrowed its loss its loss to SR27m from SR266m a year earlier.
Analysts had forecast an average loss of SR18.1m
for the fourth quarter in a Reuters poll.
The sukuk will not be listed on the Saudi bourse and the
board will meet at the end of 2011 to decide on future sukuk
issues, Hawshan said.
Pricing for the first five years will be 1.7 percent over
six-month LIBOR and can be returned in five years, the bank said
Earlier in March, the bank had announced it planned to issue
a local currency-denominated sukuk and said that the local units
of HSBC and J.P. Morgan chase & Co will be
managing the bond sale.
The bank made a net profit of SR29m in 2010. Its shares closed 0.5 percent higher earlier on Wednesday,
in line with the bourse index which rose 0.7 percent.