PricewaterhouseCoopers) P.O.Box 2732 P.O.Box 8282 Riyadh 11461

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1 Al Juraid & Company Whinney Murray & Co. (Member firm of (Ernst & Young) PricewaterhouseCoopers) P.O.Box 2732 P.O.Box 8282 Riyadh Riyadh Saudi Arabia Saudi Arabia SPECIAL REVIEW REPORT To the Shareholders of Saudi American Bank: We have reviewed the accompanying interim condensed consolidated balance sheet of Saudi American Bank (the Bank ) as of March 31, 2001 and the related condensed consolidated statement of income for the three month period ended March 31, 2001, and the condensed consolidated statements of cash flows and changes in shareholders equity for the three month period ended March 31, These interim condensed consolidated financial statements are the responsibility of the Bank s management. We conducted our review in accordance with generally accepted auditing standards applicable to review engagements. A review consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the accompanying interim condensed consolidated financial statements for them to be in conformity with Accounting Standards for Commercial Banks issued by the Saudi Arabian Monetary Agency and with International Accounting Standards. We draw attention to the fact that we were not engaged to review the interim condensed consolidated financial statements of the Bank as of March 31, 2000 or for the three month period then ended. Accordingly, we are unable to, and do not, express any opinion on the financial position as of March 31, 2000 or of the results of operations, cash flows or changes in shareholders equity of the Bank for the three month period then ended. Al Juraid & Company Whinney Murray & Co. Abdullah M. Al Juraid Dr. Abdullah A. Baeshen Registration No. 99 Registration No. 66 April 16, Muharram 1422H

2 SAUDI AMERICAN BANK Page 2 SAUDI JOINT STOCK COMPANY CONSOLIDATED BALANCE SHEETS Mar 31, 2001 Dec 31, 2000 Mar 31, 2000 (Audited) Notes (SR '000) (SR '000) (SR '000) ASSETS Cash and balances with SAMA 3,776,463 2,465,658 2,038,816 Due from banks and other financial institutions 9,269,801 9,051,615 8,874,977 Trading securities 87, ,671 - Investments 2 31,273,817 33,818,589 32,773,738 Loans and advances, net 30,018,650 31,528,178 30,381,875 Fixed assets, net 716, , ,243 Other assets 1,977,589 1,912,229 1,493,478 TOTAL ASSETS 77,120,266 79,644,105 76,308,127 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Due to banks and other financial institutions 9,937,327 11,495,546 12,859,013 Customer deposits 56,366,630 56,113,727 52,981,171 Other liabilities 2,046,688 3,431,779 1,739,127 Total liabilities 68,350,645 71,041,052 67,579,311 Shareholders' equity Share capital 4,000,000 4,000,000 4,000,000 Statutory reserves 4,001,998 4,001,998 4,001,905 General reserve 230, , ,000 Retained earnings 419, , ,911 Fair value/cash flow hedges adjustment account 5 118, Total shareholders' equity 8,769,621 8,603,053 8,728,816 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 77,120,266 79,644,105 76,308,127 CONTRA ACCOUNTS 3 86,960,525 63,009,176 69,617,451 The accompanying notes 1 to 5 form an integral part of the interim condensed consolidated financial statements.

3 SAUDI AMERICAN BANK Page 3 SAUDI JOINT STOCK COMPANY CONSOLIDATED STATEMENTS OF INCOME THREE MONTHS ENDED Mar 31, 2001 Mar 31, 2000 (SR '000) (SR '000) Special commission income 1,362,934 1,255,392 Special commission expense 727, ,149 Net special commission income 635, ,243 Fees from banking services 105, ,611 Exchange income 26,775 18,104 Trading income 2, Dividend income 6,438 7,692 Realised gains on investments, net 42,055 27,599 Other operating income Total operating income 819, ,132 Salaries and employee related expenses 167, ,246 Rent and premises related expenses 18,966 22,595 Depreciation and amortisation of fixed assets 22,075 22,875 Other general and administrative expenses 53,960 42,337 Provision for possible credit losses 28,067 5,324 Total operating expenses 290, ,377 NET INCOME 528, ,755 Weighted average number of outstanding shares 80,000,000 80,000,000 Earnings per share for the period SR 6.61 SR 6.01 The accompanying notes 1 to 5 form an integral part of the interim condensed consolidated financial statements.

4 SAUDI AMERICAN BANK Page 4 SAUDI JOINT STOCK COMPANY CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY For the three months ended March 31, 2001 Fair Value/ Cash Flow Hedges Share Statutory General Retained Adjustment Capital Reserves Reserve Earnings Account Total Notes SR '000 SR '000 SR '000 SR '000 SR '000 SR '000 Balance at January 1 4,000,000 4,001, , ,055-8,603,053 Effect of implementation of IAS 39 at January 1, (b) (464,705) (464,705) Net income for the period 528, ,398 Fair value/cash flow hedges adjustment for the period (15,550) 118, ,875 Balance at March 31 4,000,000 4,001, , , ,425 8,769,621 For the three months ended March 31, 2000 Balance at January 1 4,000,000 4,001, ,000 16,156-8,248,061 Net income for the period 480, ,755 Balance at March 31 4,000,000 4,001, , ,911-8,728,816 The accompanying notes 1 to 5 form an integral part of the interim condensed consolidated financial statements.

5 SAUDI AMERICAN BANK Page 5 SAUDI JOINT STOCK COMPANY CONSOLIDATED STATEMENTS OF CASH FLOW THREE MONTHS ENDED Mar 31, 2001 Mar 31, 2000 (SR '000) (SR '000) CASH FLOWS FROM OPERATING ACTIVITIES Net income 528, ,755 Adjustments to reconcile net income to net cash from/(used in) operating activities: Depreciation and amortisation of fixed assets 22,075 22,875 Gain on sale of fixed assets, net (528) (71) Provision for possible credit losses 28,067 5,324 Net accretions of discounts and amortisation of premium on investments 7,318 6,503 Realised gains on investments, net (42,055) (27,599) Net decrease/(increase) in operating assets: Due from banks and other financial institutions (218,186) (3,776,579) Trading securities 48,668 - Loans and advances 1,066,873 1,271,557 Other assets (26,813) (39,122) Net increase/(decrease) in operating liabilities: Due to banks and other financial institutions (1,558,219) (505,651) Customer deposits 252,903 1,160,558 Other liabilities 143,225 (8,312) Net Cash From/(Used in) Operating Activities 251,726 (1,409,762) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from matured/sales of investments 4,953,922 2,415,948 Purchases of investments (2,309,780) (955,375) Purchases of fixed assets (15,089) (18,933) Proceeds from sale of fixed assets 8,764 10,121 Net Cash From Investing Activities 2,637,817 1,451,761 CASH FLOWS FROM FINANCING ACTIVITIES Dividends paid (1,578,738) (613,815) Net Cash Used In Financing Activities (1,578,738) (613,815) Net increase/(decrease) in cash and balances with SAMA 1,310,805 (571,816) Cash and balances with SAMA at beginning of the period 2,465,658 2,610,632 CASH AND BALANCES WITH SAMA AT END OF THE PERIOD 3,776,463 2,038,816 Supplemental non-cash information IAS 39 adoption adjustment related to investments, loans and advances, other assets and other liabilities 464,705 - The accompanying notes 1 to 5 form an integral part of the interim condensed consolidated financial statements.

6 SAUDI AMERICAN BANK Page 6 (SAUDI JOINT STOCK COMPANY) NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies adopted in the preparation of these interim condensed consolidated financial statements are set out below: a) Basis of presentation Saudi American Bank (the Bank ) follows Accounting Standards for Commercial Banks issued by the Saudi Arabian Monetary Agency (SAMA) and International Accounting Standards. These interim condensed consolidated financial statements, which have been prepared in compliance with International Accounting Standard No. 34 Interim Financial Reporting, also comply with the Banking Control Law and the Regulations for Companies of the Kingdom of Saudi Arabia. b) Changes in accounting policies With the exception of matters noted below, the accounting policies used in the preparation of these interim condensed consolidated financial statements are consistent with those used in the preparation of the annual consolidated financial statements for the year ended December 31, Implementation of IAS 39 Effective January 1, 2001, the Bank implemented IAS 39 Financial Instruments: Recognition and Measurement. This has resulted in the following principal changes to the accounting policies of the Bank in respect of recognition and measurement of certain financial instruments: i) Derivative financial instruments The Bank has recognised, for the first time, the fair value of all derivative financial instruments in its balance sheet as either assets or liabilities at their fair values. Changes in fair values relating to cash flow hedges have been taken to the fair value/cash flow hedges adjustment account, while all opening fair value adjustments have been made against retained earnings on January 1, ii) Non-derivative financial instruments Effective January 1, 2001, the Bank reclassified its investments as originated debt securities or available for sale securities and re-measured to fair value those classified as available for sale. Changes in fair values relating to available for sale securities and the adjustment relating to the re-measurement of the available for sale securities on January 1, 2001 to fair value have been taken to the fair value/cash flow hedges adjustment account. In addition, impaired loans and advances are now stated at the net present value of estimated future cash flows by reference to their original commission rates. The adjustment relating to impaired loans and advances on January 1, 2001 was taken to retained earnings.

7 SAUDI AMERICAN BANK Page 7 (SAUDI JOINT STOCK COMPANY) NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) iii) Comparative amounts In accordance with the transitional provisions of IAS 39, the Bank has not restated comparative amounts. Customers acceptances The Bank has changed its accounting policy with respect to the recognition of customers acceptances and now includes them in off-balance sheet items. Previously, these were included in other assets and other liabilities. Comparative amounts have been restated to reflect this change in accounting policy. c) Reclassification Certain amounts have been reclassified to conform with current period presentation. 2. INVESTMENTS March 31, 2001 Available for sale securities 12,783,030 Originated debt securities 18,490,787 TOTAL 31,273,817 The fair value of originated debt securities at March 31, 2001 was SR 18,826 million. 3. CONTRA ACCOUNTS The composition of contra accounts is as follows: March 31, 2001 December 31, 2000 (Audited) March 31, 2000 Guarantees, letters of credit & acceptances 13,331,421 13,561,352 12,505,028 Commission rate contracts: - Forward rate agreements 8,545,601 2,666,625 1,563,479 - Commission rate swaps 14,445,254 12,909,496 12,517,252 Foreign exchange contracts: - Forward contracts 46,521,977 30,442,997 39,903,695 - Currency options 2,551,917 1,718,262 1,767,028 Others 1,564,355 1,710,444 1,360,969 TOTAL 86,960,525 63,009,176 69,617,451

8 SAUDI AMERICAN BANK Page 8 (SAUDI JOINT STOCK COMPANY) NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 4. SEGMENT INFORMATION The Bank is organised into the following main business segments: Consumer Banking incorporating individual customer time deposits, current, call and savings accounts, as well as credit cards, retail investment products and consumer loans. Corporate Banking incorporating corporate time deposits, current and call accounts, overdrafts, loans and other credit facilities as well the Bank s investment, trading and derivative portfolios and its corporate finance advisory services. Other comprises overseas operations of the Bank as well as management of fiduciary funds, international and local shares brokerage services. Transactions between the business segments are on normal commercial terms. The Bank s assets and liabilities at March 31, 2001 together with total operating and net income for the period ended on that date, by business segment were as follows: SR Million Consumer Corporate Other Total Total assets 29,782 47, ,120 Total liabilities 25,835 42, ,351 Total operating income Net income FAIR VALUE/CASH FLOW HEDGES ADJUSTMENT ACCOUNT Cash flow hedges Available for sale securities Total Balance at January 1, Net change in fair value during the period 27, , ,823 Transfer to statement of income during the period (7,658) (88,740) (96,398) Net movement in the period 20,066 98, ,425 Balance at March 31, ,066 98, ,425