Al Rajhi Bank profits decrease to SAR 4.1 billion in Q2 by 2.5%

Al Rajhi Bank announced a decline in net profit during the second quarter to SAR 4.1 billion, compared to SAR 4.2 billion in the same quarter of last year, by 2.5%. This came after Monday’s announcement of the interim financial results for the period ending on 30.06.2023 (six months).

Total Operation Profit in the second quarter amounted to SAR 6.8 billion, compared to SAR 7.1 billion in the same quarter of the previous year, a decrease of 4.4%.

The net profit of the bank during the 6-month period amounted to SAR 8.29 billion, compared to SAR 8.39 billion in the same period of the previous year, a decline of 1.16%.

Total Share Holders’ Equity “excluding Non-Controlling Interest” amounted to SAR 103.1 billion in the current period, compared to SAR 81.9 billion in the same period last year, a growth of 26%.

Profit per share in the current period reached SAR 1.97, compared to SAR 2.08 in the same period last year.

Net income decreased due to a decrease in total operating income by 4.5 %, caused by a decrease in net financing and investment income, fees from banking services, and exchange income, while there was an increase in other operating income.

In contrast, the total operating expenses, including impairment charges for financing, decreased by 8.4% due to a decrease in other general and administrative expenses, while there was an increased in salaries and employees’ related benefits and depreciation expense. In addition, there was a decrease in impairment charge for financing from SAR 580 million to SAR 360 million by 37.9%.

Net income increased due to an increase in total operating income by 0.7% caused by an increase in net financing and investment income and other operating income, while there was a decrease in fees from banking services and income from foreign currency exchange.

In contrast, the total operating expenses including impairment charges for financing Increased by 1.9% due to Increase in depreciation expense, salaries and employees’ related benefits and other general and administrative expenses.

In addition, there was an increase in impairment charge for financing from SAR 359 million to SAR 360 million by 0.3%.

Net income decreased due to a decrease in total operating income by 3.5% caused by a decrease in net financing and investment income, while there was an increase in exchange income, fees from banking services, and other operating income.

In contrast, the total operating expenses including impairment charges for financing decreased by 8.2% due to a decrease in other general and administrative expenses, while there was an increase in salaries and employees’ related benefits, and depreciation expense, in addition, there was a decrease in impairment charge for financing from SAR 1,159 million to SAR 719 million by 38.0%.