After all, we achieved a good overall performance in 2005. This makes us proud of BSI's claim to fame for its non-bureaucratic procedures and for its offering many different financial solutions that create added values for its clients. Our customer services are further enhanced by competitive pricing and professional specialties also.

Our mission for 2005 was almost accomplished; however there is yet to be done for the promising future. So, we will concentrate all our efforts on preparing BSI for the upcoming privatization process, next year.

On the eve of another year of success, I would like to extend my thankfulness to all our clients, correspondent banks and the Central Bank of Iran for their continuous loyal support. I would like to thank my colleagues on the Board of Directors for their true sense of direction.

Many thanks are also to my senior management colleagues and to all the staff of BSI, whose commitment, professional manners and dedication define and determine BSI's success.

Dr. Hamid Borhani
Chairman and Managing Director

I am pleased to present you, on behalf of the Board of Directors, with the annual report of Bank Saderat Iran (BSI) for the fiscal year ended on March, 20, 2006.
Ending another year of success, we met our financial and strategic objectives. We even made steady progress in enhancing the performance of the whole system.
Those achievements are even more remarkable if we observe the environment in which BSI operates.

Benefiting from a strong organized growth, BSI developed operations in accordance with its strategically–defined business plans. A new-record net profit underlines the financial health of the bank. Our consolidated balance sheet reached US$27.8 billion, revealing a 35% growth in 2005 against the year before. Consolidated net profit increased up to US$296 million, revealing a solid 45% rise.

The year 2005 has also been a very important year for BSI in terms of improving our equity base from US$1.7 billion to US$3.3 billion. This, in combination with our continuous operational improvements provides solid foundations for future developments, thanks to the diligence, self denial and ingenuity of the staff. BSI increased customers' deposits by 29% to US$17.3 billion, while loans granted to the applicants witnessed a 33% increase to US$13.6 billion. It means 17% of the market, and we are determined to gain the lion share of 20% within next three years.

Our New Technologies Department worked relentlessly in 2005 to improve the efficiency of the bank's IT base with main focus on the expansion of the highly–acclaimed–for SEPEHR ( in Persian stands for ' Simultaneous Electronic Payment System') which gives customers a real time access to their accounts from every single branch of BSI. So far, 55% of the branches were equipped with this new system and we expect that the rest of the branches of BSI will be equipped until end of 2007.

Globalized financial services industry can't do without the virtual world in which the real-time access plus security are the most asked-for elements. Debit Cards, ATM and POS (Point of Sale)systems are some of the technologies that are fit for the new market in Iran. The number of POS systems installed by BSI will jump in 2006 and 2007 from the current level of 2,000 to 30,000 to meet the growing need for electronic banking.